Exhibit 99: Statement Dated October 16, 2003


The following is a statement that I wish to make in response to the USF&G
filing:

This litigation has been filed by an out-of-state multinational insurance
conglomerate trying to reverse a settlement it voluntarily agreed to nearly two
years ago. This company is exploiting a highly publicized federal criminal case
in a cynical attempt to renege on a purely financial matter originally approved
by its most senior officials.

Like most businesses, especially financial institutions, The Peoples Bank is
subject to a variety of litigation, most of which proves to be ill-conceived if
not actually frivolous. The bank will vigorously defend its interest in this
case.

Any allegations or implications that The Peoples Bank has acted in anything less
than a completely ethical manner are baseless and slanderous. For 107 years,
this bank has served South Mississippi on the basis of universal values of
fairness and conduct beyond reproach. We intend to maintain those same standards
of honesty and integrity, as we continue to build South Mississippi in the
future.

October 16, 2003                            Chevis C. Swetman
                                            President