Exhibit 99.1
For more information, contact:
Investor Relations
228-435-8208
investorrelations@thepeoples.com
PEOPLES FINANCIAL CORPORATION REPORTS
$4.7 MILLION NET INCOME FOR FIRST HALF 2007
BILOXI, MS (July 16, 2007)—Peoples Financial Corporation (NASDAQ Capital Market: PFBX), parent of The Peoples Bank, reported first half 2007 earnings of $4,702,000, announced Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.
Earnings for the first six months of the current year were 7.6% less than the same period in 2006. The lower earnings were primarily the result of a loss of $619,000 ($409,000, net of taxes) from the sale of securities, said Swetman. Proceeds from the sale of securities funded liquidity needs during the quarter, he said.
“Our operating results continue to improve despite challenging conditions here on the Mississippi Gulf Coast due to the constrictions in the rebuilding effort,” said Swetman. “Our loan volume showed a 7.2% increase for the first half of the year, which is less than what we had projected at the beginning of the year but still healthy in the face of the twin constraints of slower than expected recovery funding and insurance increases,” he said.
Earnings per share for the first half of 2007 totaled $.85 per average weighted share, compared to $.92 per share in the period the year before. Earnings per share figures are based on weighted average shares outstanding of 5,541,765 and 5,548,403 on June 30, 2007 and June 30, 2006, respectively.
“Our Board of Directors remains confident that our earnings will continue at these levels, and in June they voted to raise the semi-annual dividend to an annualized rate of $.50 a share, the eighth time the dividend has been increased since 2003,” said Swetman.
“In addition, we are excited to announce the formation of a Mortgage Loan Department to participate directly in the wave of residential financing we foresee in the very near future. Our new Mortgage Loan Department will give us the capability of seamless service, from land acquisition to construction financing to permanent mortgage loans on residential properties up to four-family units,” said Swetman.
Founded in 1896, with $991 million in assets as of June 30, 2007, 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 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 | ||||||||
(Unaudited) | ||||||||
(In thousands, except per share figures) | ||||||||
EARNINGS SUMMARY | ||||||||
| Three Months Ended June 30, | 2007 | 2006 | ||||||
| Net interest income | $ | 7,565 | $ | 7,505 | ||||
| Provision for loan losses | 51 | 42 | ||||||
| Non-interest income | 1,962 | 2,148 | ||||||
| Non-interest expense | 6,280 | 5,635 | ||||||
| Income taxes | 1,210 | 1,420 | ||||||
| Net income | 1,986 | 2,556 | ||||||
| Earnings per share | .36 | .46 | ||||||
| Six Months Ended June 30, | 2007 | 2006 | ||||||
| Net interest income | $ | 14,994 | $ | 15,012 | ||||
| Provision for loan losses | 100 | 77 | ||||||
| Non-interest income | 4,612 | 3,818 | ||||||
| Non-interest expense | 12,306 | 10,954 | ||||||
| Income taxes | 2,498 | 2,710 | ||||||
| Net income | 4,702 | 5,089 | ||||||
| Earnings per share | .85 | .92 | ||||||
PERFORMANCE RATIOS (annualized) | ||||||||
| June 30, | 2007 | 2006 | ||||||
| Return on average assets | .95 | % | 1.17 | % | ||||
| Return on average equity | 9.06 | % | 11.46 | % | ||||
| Net interest margin | 3.41 | % | 3.94 | % | ||||
| Efficiency ratio | 63 | % | 58 | % | ||||
BALANCE SHEET SUMMARY | ||||||||
| Balance at June 30, | 2007 | 2006 | ||||||
| Total assets | $ | 990,620 | $ | 878,582 | ||||
| Loans | 429,853 | 401,010 | ||||||
| Securities | 428,601 | 382,819 | ||||||
| Total deposits | 668,708 | 622,992 | ||||||
| Total federal funds purchased | 197,143 | 148,593 | ||||||
| Shareholders' equity | 98,465 | 90,220 | ||||||
| Book value per share | 17.85 | 16.26 | ||||||
| Weighted average shares | 5,541,765 | 5,548,403 | ||||||
PERIOD END DATA | ||||||||
| Allowance for loan losses as a | ||||||||
| percentage of loans | 2.53 | % | 2.75 | % | ||||
| Loans past due 90 days and | ||||||||
| still accruing | 1,488 | 5,284 | ||||||
| Nonaccrual loans | 3,803 | 451 | ||||||
| Primary capital | 11.06 | % | 11.60 | % | ||||