The Stilwell Group Sends Letter to Shareholders of Peoples Financial Corporation

Rhea-AI Summary

The Stilwell Group, a major shareholder of Peoples Financial Corporation (PFBX), expressed concerns over the Company’s long-term poor performance in a letter to shareholders. Key issues highlighted include inadequate earnings, poor loan underwriting, excessive expenses, and minimal dividends. In response to these concerns, Stilwell intends to seek a position on PFBX's board and plans to nominate a director at the upcoming annual meeting. The Company has called a special meeting to alter voting procedures, which Stilwell views as an attempt to inhibit their influence.

Positive

• Stilwell Group's intention to nominate a director may bring fresh leadership and accountability.
• Increased shareholder activism could lead to improvements in Company management and financial performance.

Negative

• Company has suffered from long-term poor financial performance.
• Earnings and loan underwriting have been described as subpar.
• Excessive expenses and low dividends negatively impact shareholder returns.

NEW YORK, Feb. 9, 2021 /PRNewswire/ -- The Stilwell Group, one of the largest shareholders of Peoples Financial Corporation (the "Company")(OTCMKTS: PFBX), today announced that it delivered a letter to shareholders of the Company.

The full text of the letter follows:

February 9, 2021

Dear Fellow PFBX Owner,

For a generation, our Company has performed dismally.

Earnings are subpar; loan underwriting is poor; capital allocation is seemingly nonexistent; expenses are bloated; dividends are meager; and the shareholders are the ones who suffer, year-in and year-out.

To address these shortcomings, we announced our intention to seek a position on PFBX's board.  In response, PFBX has…called a special meeting to change how our Company counts votes!

No matter how they change the rules, we intend to nominate a director at this year's annual meeting.  It's time to hold those responsible for our Company to account.

Sincerely,

Megan Parisi
MParisi@StilwellGroup.com
(212) 269-1551

CERTAIN INFORMATION CONCERNING PARTICIPANTS

Stilwell Activist Investments, L.P. ("Stilwell Activist Investments") together with the other participants named herein (collectively, "Stilwell"), intend to file a preliminary proxy statement and accompanying GREEN proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit votes for the election of their director nominee at the 2021 annual meeting of stockholders of Peoples Financial Corporation, a Mississippi corporation (the "Corporation").

STILWELL STRONGLY ADVISES ALL STOCKHOLDERS OF THE CORPORATION TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.  SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV.  IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST.  REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS' PROXY SOLICITOR.

The Participants in the proxy solicitation are anticipated to be Stilwell Activist Investments, Stilwell Activist Fund, L.P. ("Stilwell Activist Fund"), Stilwell Value Partners VII, L.P. ("Stilwell Value Partners VII"), Stilwell Value LLC, and Joseph D. Stilwell.

As of the date hereof, Stilwell Activist Investments directly owned 354,206 shares of Common Stock, par value $1.00 per share, of the Corporation (the "Common Stock"). As of the date hereof, Stilwell Activist Fund directly owned 47,122 shares of Common Stock. As of the date hereof, Stilwell Value Partners VII directly owned 83,317 shares of Common Stock. Stilwell Value LLC, as the general partner of each of Stilwell Activist Investments, Stilwell Activist Fund and Stilwell Value Partners VII, may be deemed the beneficial owner of the 484,645 shares of Common Stock owned in the aggregate by Stilwell Activist Investments, Stilwell Activist Fund and Stilwell Value Partners VII. Mr. Stilwell, as the managing member and sole owner of Stilwell Value LLC, may be deemed the beneficial owner of the 484,645 shares of Common Stock owned in the aggregate by Stilwell Activist Investments, Stilwell Activist Fund and Stilwell Value Partners VII.

Investor Contact:

The Stilwell Group
Megan Parisi
(917) 881-8076
mparisi@stilwellgroup.com

 

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SOURCE The Stilwell Group

FAQ

What are the main concerns raised by the Stilwell Group regarding PFBX?

The Stilwell Group criticized PFBX for subpar earnings, poor loan underwriting, bloated expenses, and meager dividends.

What actions is the Stilwell Group planning to take regarding PFBX?

The Stilwell Group plans to nominate a director at the upcoming annual meeting and seeks to hold current management accountable.

What is the significance of the special meeting called by PFBX?

The special meeting aims to alter how the Company counts votes, which Stilwell interprets as a move to restrict shareholder influence.

How many shares does the Stilwell Group own in PFBX?

As of the date of the letter, Stilwell Activist Investments owns 354,206 shares, while Stilwell Activist Fund owns 47,122 shares and Stilwell Value Partners VII owns 83,317 shares.