EXHIBIT 99.1

                          THE PEOPLES HOLDING COMPANY


Contact: Jim Gray                              Stuart Johnson
         Executive Vice President              Executive Vice President & CFO
         (662) 680-1217                        (662) 680-1001
         jimg@thepeopleplace.com               stuartj@thepeopleplace.com



                           THE PEOPLES HOLDING COMPANY
                 BOARD INCREASES REGULAR QUARTERLY CASH DIVIDEND


TUPELO, Miss. (May 21, 2003) - E. Robinson McGraw, President and Chief Executive
Officer of The Peoples  Holding  Company  (AMEX:PHC),  today  announced that the
Company's  Board of Directors has increased the regular  quarterly cash dividend
to $0.28 from the previous  quarterly rate of $0.27 per share.  This  represents
the 17th consecutive annual increase in the cash payout. The dividend is payable
on July 1, 2003, to shareholders of record on June 13, 2003.

ABOUT THE PEOPLES HOLDING COMPANY

The  Peoples  Holding  Company is the  parent of  Mississippi's  fourth  largest
commercial bank headquartered in the state. Through its wholly owned subsidiary,
The Peoples  Bank & Trust  Company,  the  Company  also is parent of The Peoples
Insurance Agency, Inc. The Peoples Bank has assets of approximately $1.4 billion
and operates 40 community bank offices in 27 north and north-central Mississippi
cities.