Exhibit 99.1
FOR IMMEDIATE RELEASE
For more information, contact:
Investor Relations
228-435-8208
investorrelations@thepeoples.com
Investor Relations
228-435-8208
investorrelations@thepeoples.com
PEOPLES FINANCIAL CORPORATION EARNS $1.8 MILLION
IN FOURTH QUARTER 2008, $5.0 MILLION FOR YEAR
IN FOURTH QUARTER 2008, $5.0 MILLION FOR YEAR
BILOXI, MS (January 20, 2009)—Peoples Financial Corporation(NASDAQ Capital Market: PFBX), parent of The Peoples Bank, earned $1,820,000 in fourth quarter 2008 and $5,034,000 for the year ended December 31, 2008, announced Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.
Earnings per share were $.34 per average weighted share for the fourth quarter of 2008 and totaled $.94 per average weighted share for the full year. Earnings per share figures are based on average weighted shares outstanding of 5,342,470 for the 12 months ended December 31, 2008 and 5,489,861 for the 12 months ended December 31, 2007.
“Our bank returned to profitability in the fourth quarter of 2008, despite the worst paralysis of the capital markets in my lifetime or even since the Great Depression,” said Swetman. “Our loan volume grew in the fourth quarter, although far more slowly than we would like. We have money to lend, and we are aggressively seeking business in a market largely driven by fear of the unknown and fear of the future,” he added.
Fourth quarter income was 38% lower than earnings for the same period the year before. Full year net income was 54% lower, due mainly to non-cash charges recorded in the third quarter of 2008 for increased loan loss provision and loss on investment in preferred shares of Federal Home Loan Mortgage Company (FHLMC, commonly known as Freddie Mac).
In November, 2008, Peoples Financial announced it had declined to participate in the federal government’s $700 billion rescue fund for financial institutions. “We have plenty of capital,” said Swetman. “In fact, our primary capital as of the end of 2008 rose to 12.91%, despite the meltdown of the financial markets around us. Times like these validate the careful, conservative philosophy that our Board of Directors and senior management team have always followed in operating our bank,” he added.
Founded in 1896, with $896 million in assets as of December 31, 2008, The Peoples Bank operates 16 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties. In addition to 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 bank also operates a mortgage loan department providing residential loans for primary, secondary and multi-family homes up to four units.
The Peoples Bank is a wholly-owned subsidiary of Peoples Financial Corporation, listed on the
NASDAQ Capital 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)
(In thousands, except per share figures) (Unaudited)
EARNINGS SUMMARY
Three Months Ended December 31, | 2008 | 2007 | ||||||
Net interest income | $ | 6,837 | $ | 7,665 | ||||
Provision for loan losses | 252 | 52 | ||||||
Non-interest income | 2,523 | 2,651 | ||||||
Non-interest expense | 6,829 | 6,370 | ||||||
Income taxes | 459 | 964 | ||||||
Net income | 1,820 | 2,930 | ||||||
Earnings per share | 0.34 | 0.54 |
Year Ended December 31, | 2008 | 2007 | ||||||
Net interest income | $ | 28,339 | $ | 30,519 | ||||
Provision for loan losses | 2,347 | (1,045 | ) | |||||
Non-interest income | 7,539 | 9,767 | ||||||
Non-interest expense | 26,520 | 25,263 | ||||||
Income taxes | 1,977 | 5,042 | ||||||
Net income | 5,034 | 11,026 | ||||||
Earnings per share | 0.94 | 2.01 |
PERFORMANCE RATIOS
December 31, | 2008 | 2007 | ||||||
Return on average assets | 0.55 | % | 1.15 | % | ||||
Return on average equity | 4.71 | % | 10.77 | % | ||||
Net interest margin | 3.58 | % | 3.55 | % | ||||
Efficiency ratio | 78 | % | 61 | % |
BALANCE SHEET SUMMARY
December 31, | 2008 | 2007 | ||||||
Total assets | $ | 896,408 | $ | 927,357 | ||||
Loans | 467,377 | 450,992 | ||||||
Securities | 349,816 | 392,595 | ||||||
Total deposits | 510,476 | 569,130 | ||||||
Total federal funds purchased | 226,609 | 231,225 | ||||||
Shareholders’ equity | 107,966 | 106,542 | ||||||
Book value per share | 20.45 | 19.66 | ||||||
Weighted average shares | 5,342,470 | 5,489,861 |
PERIOD END DATA
December 31, | 2008 | 2007 | ||||||
Allowance for loan losses as a percentage of loans | 2.38 | % | 2.08 | % | ||||
Loans past due 90 days and still accruing | 2,340 | 1,234 | ||||||
Nonaccrual loans | 15,553 | 45 | ||||||
Primary capital | 12.91 | % | 12.13 | % |