Peoples Financial Corporation Reports Results For Second Quarter Of 2016

Peoples Financial Corporation Reports Results For Second Quarter Of 2016

PR Newswire

BILOXI, Miss., July 27, 2016

BILOXI, Miss., July 27, 2016 /PRNewswire/ -- Peoples Financial Corporation (NASDAQ Capital Market: PFBX), parent of The Peoples Bank, reported net income of $61,000 for the second quarter of 2016, compared to a net loss of $1,605,000 for the second quarter of 2015, announced Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.

Financial results for the second quarter of 2016 reflected the company's continued progress in realizing its strategic objectives for long-term financial performance. The provision for loan losses for the second quarter of 2016 decreased to $24,000 compared to $1,536,000 for the same period the prior year. The significant decrease in the loan loss provision over the prior year was primarily related to the resolution of several commercial real estate development loans and the reduction of non-performing loans. The allowance for loan losses as a percentage of total loans was 2.18% as of June 30, 2016 as compared to 2.64% as of June 30, 2015.

For the second quarter of 2016, loan charge-offs decreased substantially to $666,000 from $1,989,000 for the same period the prior year. As of June 30, 2016, Other Real Estate ("ORE") was $8,737,000 compared to $11,762,000 as of June 30, 2015. 

"We are very pleased with the significant asset quality improvement during the second quarter," said Swetman. "Our financial results illustrate our commitment to enhancing the company's long-term financial success," he added.

Earnings per weighted average share for second quarter of 2016 were $0.01, compared to a loss of $0.32 per weighted average share in the second quarter of 2015. Per share figures are based on weighted average common shares outstanding of 5,123,186 for the three-month periods ended June 30, 2016 and June 30, 2015.

The Company's primary capital ratio increased to 15.36% as of June 30, 2016, compared to 14.90% at the end of the same period in 2015.

Founded in 1896, with $668 million in assets as of June 30, 2016, The Peoples Bank operates 18 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.

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PEOPLES FINANCIAL CORPORATION






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














EARNINGS SUMMARY

Three Months Ended June 30,

Six Months Ended June 30,

2016

2015

2016

2015

Net interest income

$               4,283

$               4,594

$               8,821

$               9,349

Provision for loan losses

24

1,536

137

2,522

Non-interest income

1,528

1,805

3,171

3,746

Non-interest expense

5,648

6,468

11,640

13,329

Income taxes

78


78

Net income (loss)

61

(1,605)

137

(2,756)

Earnings (loss)  per share

.01

(.32)

.02

(.54)







TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES





Three Months Ended June 30,

Six Months Ended June 30,

2016

2015

2016

2015

Allowance for loan losses, beginning of period

$               7,564

$               9,985

$               8,070

$               9,206

Recoveries

187

18

231

75

Charge-offs

(666)

(1,989)

(1,329)

(2,253)

Provision for loan losses

24

1,536

137

2,522

Allowance for loan losses, end of period

$               7,109

$               9,550

$               7,109

$               9,550







ASSET QUALITY

June 30,





2016

2015



Allowance for loan losses as a 







   percentage of loans

2.18%

2.64%



Loans past due 90 days and 







   still accruing

$                  287

$                 305



Nonaccrual loans

14,755

28,989












PERFORMANCE RATIOS (annualized)

June 30,





2016

2015



Return on average assets

.04%

(.81%)



Return on average equity

.29%

(5.89%)



Net interest margin

3.05%

3.12%



Efficiency ratio

98%

126%



Primary capital

15.36%

14.90%












BALANCE SHEET SUMMARY

June 30,





2016

2015



Total assets

$           668,459

$           680,234



Securities

230,414

237,528



Loans

326,425

361,862



Other real estate

8,737

11,762



Total deposits

547,523

537,545



Shareholders' equity

94,615

92,324



Book value per share

18.47

18.02



Weighted average shares

5,123,186

5,123,186



 

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SOURCE Peoples Financial Corporation

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