Peoples Financial Corporation Revises Second Quarter Of 2020 Results

BILOXI, Miss., Aug. 10, 2020 /PRNewswire/ — Peoples Financial Corporation (OTCQX Best Market: PFBX), parent of The Peoples Bank, announced a…

BILOXI, Miss., Aug. 10, 2020 /PRNewswire/ — Peoples Financial Corporation (OTCQX Best Market: PFBX), parent of The Peoples Bank, announced a revision to its results for the second quarter ended June 30, 2020, which were previously announced on July 29, 2020.

As a result of receiving new information on one credit, an additional provision for loan losses of $1,135,000 has been recorded for the second quarter of 2020.  This adjustment revised previously reported earnings of $858,000 for the second quarter ended June 30, 2020 to a net loss of $277,000 and previously reported earnings of $1,981,000 for the six months ended June 30, 2020 to earnings of $846,000.

The adjusted loss per weighted average common share for the second quarter of 2020 was $0.06 compared to loss per weighted average common share of $0.06 for the second quarter of 2019. Per share figures are based on weighted average common shares outstanding of 4,883,764 and 4,943,186 for the quarters ended June 30, 2020 and 2019, respectively.

Adjusted earnings per weighted average common share for the six months ended June 30, 2020 were $0.17 compared to earnings per weighted average common share of $0.02 for the six months ended June 30, 2019. Per share figures are based on weighted average common shares outstanding of 4,905,690 and 4,943,186 for the six months ended June 30, 2020 and 2019, respectively.

«Since releasing earnings on July 29, additional information was obtained relating to one credit which is on nonaccrual and in bankruptcy.  While we are disappointed by this event, it is prudent that we recognize this potential loss in a timely manner,» said Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.

Founded in 1896, with $656 million in assets as of June 30, 2020, The Peoples Bank operates 18 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties. In addition to offering a comprehensive range of retail and commercial banking services, the bank also operates a trust and investment services department that has provided customers with financial, estate and retirement planning services since 1936.

The Peoples Bank is a wholly owned subsidiary of Peoples Financial Corporation, listed on the OTCQX Best Market under the symbol PFBX. Additional information is available on the Internet at www.thepeoples.com.

This news release contains forward-looking statements and reflects industry conditions, company performance and financial results. These forward-looking statements are subject to a number of risk factors and uncertainties which could cause the Company’s actual results and experience to differ from the anticipated results and expectation expressed in such forward-looking statements.

PEOPLES FINANCIAL CORPORATION









(In thousands, except per share figures) (Unaudited) (Revised)
















EARNINGS SUMMARY


Three Months Ended June 30,


Six Months Ended June 30,



2020


2019


2020


2019

Net interest income


$               4,449


$               4,340


$               8,845


$               8,960

Provision for loan losses


1,333


56


1,397


110

Non-interest income


1,753


1,599


4,019


3,065

Non-interest expense


5,146


6,211


10,621


11,838

Net income (loss)


(277)


(328)


846


77

Earnings (loss) per share


$                (.06)


$                (.06)


$                   .17


$                   .02










TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES









Three Months Ended June 30,


Six Months Ended June 30,



2020


2019


2020


2019

Allowance for loan losses, beginning of period

$               4,191


$               5,376


$               4,207


$               5,340

Recoveries


59


26


121


84

Charge-offs


(254)


(512)


(396)


(588)

Provision for loan losses


1,333


56


1,397


110

Allowance for loan losses, end of period


$               5,329


$               4,946


$               5,329


$               4,946










ASSET QUALITY


June 30,







2020


2019





Allowance for loan losses as a 









   percentage of loans


1.83%


1.86%





Loans past due 90 days and 









   still accruing


$                    82


$





Nonaccrual loans


8,381


10,143














PERFORMANCE RATIOS (annualized)


June 30,







2020


2019





Return on average assets


.27%


.02%





Return on average equity


1.74%


.17%





Net interest margin


3.07%


3.23%





Efficiency ratio


93%


99%





Primary capital


16.58%


15.66%














BALANCE SHEET SUMMARY


June 30,







2020


2019





Total assets


$           656,450


$           622,422





Securities


252,956


277,138





Loans


290,538


266,097





Other real estate


6,100


9,012





Total deposits


535,848


493,635





Shareholders’ equity


99,197


92,869





Book value per share


20.31


18.79





Weighted average shares


4,905,690


4,943,186





 

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SOURCE Peoples Financial Corporation