8-K

UNITED STATES
SECURITES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) December 9, 2005

PEOPLES FINANCIAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Mississippi
(State or Other Jurisdiction of Incorporation)

O-30050	64-0709834
(Commission File Number)	(IRS Employer Identification No.)
152 Lameuse Street Biloxi, MS	39530
(Address of Principal Executive Offices)	(Zip Code)

(228) 435-5511
(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously Satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230. 425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act ( 17CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4( c) under the Exchange Act (17 CFR 240.13e-4( c))

Item 8.01. Other Events

On December 9, 2005, Peoples Financial Corporation issued a press release announcing the declaration of a dividend and the extension of a stock repurchase program.

Item 9.01. Financial Statements and Exhibits.

     (c) Exhibits

99.1 Press Release issued by Peoples Financial Corporation dated December 9, 2005, headed “Peoples Financial Corporation Declares Regular Dividend, Extends Stock Repurchase Program.”

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: December 9, 2005

PEOPLES FINANCIAL CORPORATION
By:	/s/ Chevis C. Swetman
	Chevis C. Swetman
	Chairman, President and CEO

EX-99.1

Exhibit 99.1: Peoples Financial Corporation Press Release Dated December 9, 2005

FOR IMMEDIATE RELEASE

For more information, contact:
Investor Relations
228-435-8208
investorrelations@thepeoples.com

PEOPLES FINANCIAL CORPORATION DECLARES REGULAR DIVIDEND, EXTENDS STOCK REPURCHASE PROGRAM

Biloxi, MS (December 9, 2005)—The board of directors of Peoples Financial Corporation (NASDAQ Small Cap: PFBX), parent of The Peoples Bank, declared the holding company’s regular semiannual cash dividend of $.20 per common share, payable January 17, 2006, to stockholders of record January 9, 2006.

In addition, at an earlier meeting the board approved a three-year extension of the stock repurchase plan in effect since November 2002. The plan originally authorized the repurchase of up to 2.5% of the company’s outstanding common shares, totaling some 129,000 shares. The extension allows the company to continue repurchasing shares for another three years until the limit of 129,000 is reached.

When added to the semi-annual dividend of $.20 paid in July, the current dividend of $.20 a share represents about 42% of anticipated earnings for 2005. The increase in the payout ratio is largely due to the anticipated reduction in net income as a result of loan losses caused by Hurricane Katrina, said Chevis C. Swetman, chairman of the board and chief executive officer of the holding company and the bank.

The semiannual dividend was raised 11.1% in June, 2005, which was then the fifth consecutive increase, dating back to the second quarter of 2003. The current annualized dividend of $.38 per share for 2005 is 19% more than dividends paid in 2004 and 46% higher than 2003.

“Although our earnings for third and fourth quarter of 2005 have been impacted by the effects of Hurricane Katrina, our capital position remains well in excess of regulatory minimums, which affords us the capability to continue paying our regular dividend even in these difficult times,” said Swetman. “Our ability to continue paying the dividend to our shareholders is a reflection of our board’ s prudent approach to reserving a portion of our earnings during the last few years of robust growth,” he added.

Peoples Financial Corporation declares dividend—page 2

Founded in 1896, with $769 million in assets as of September 30, 2005, The Peoples Bank currently operates 14 of its 16 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties following Hurricane Katrina and is working to open the closed branches as soon as repairs can be completed. In addition to a comprehensive range of retail and commercial banking services, the bank also operates an asset management 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 Small Cap 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.