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) April 16, 2007

PEOPLES FINANCIAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Mississippi

(State or Other Jurisdiction of Incorporation)

0-30050	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 Addresss, 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 2.02. Results of Operations and Financial Condition

On April 16, 2007, Peoples Financial Corporation issued a press release announcing its earnings for the first quarter of 2007.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

99.1 Press Release issued by Peoples Financial Corporation dated April 16, 2007, headed “Peoples Financial Corporation Earnings Increase 7% in First Quarter of 2007.”

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: April 16, 2007

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 April 16, 2007

FOR IMMEDIATE RELEASE

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

PEOPLES FINANCIAL CORPORATION EARNINGS
INCREASE 7% IN FIRST QUARTER OF 2007

BILOXI, MS (April 16, 2007)—Peoples Financial Corporation (NASDAQ Capital Market: PFBX), parent of The Peoples Bank, reported first quarter 2007 earnings increased 7% to $2,715,000 compared to the same period in 2006, announced Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.

Earnings per share for the quarter reached $.49 per average weighted share, compared to $.46 per share in the period the year before. Earnings per share figures are based on weighted average shares outstanding of 5,548,199 and 5,548,609 on March 31, 2007 and March 31, 2006, respectively.

“We opened 2007 with a solid quarter,” said Swetman. “Our loan volume grew 19% over the first quarter of 2006, which we believe indicates that the recovery of the Mississippi Gulf Coast is beginning to accelerate,” he added.

Total interest income rose 31% during the quarter. Net interest income for first quarter 2007 was essentially flat compared to the same period in 2006. Swetman said net interest income was impacted primarily by a 113% increase in total interest expense, which is the result of higher interest costs on certain cash management accounts.

“Our loan portfolio remains solid,” said Swetman. “We are pleased that we have not been forced to make any upward changes to the loan loss provisions that we established in September 2005 in the wake of Hurricane Katrina. As the insurance markets begin to stabilize through the efforts of our state Legislature and the effects of more rational ratemaking, we hope that the recovery of our community will gather momentum in the months ahead.”

Founded in 1896, with $987 million in assets as of March 31, 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.

2 - YEAR FINANCIAL HIGHLIGHTS
(In Thousands, Except Per Share Amounts)
(Unaudited)

For The Quarter Ended March 31,	2007		2006		Change
Earnings: (1)
Net Income	$	2,715	$	2,533		7	%
Earnings Per Share		.49		.46		7	%
Net Interest Income:
Total interest income	$	13,909	$	10,612		31	%
Total interest expense		6,396		2,997		113	%
Net Interest Income	$	7,513	$	7,615		(1	%)

March 31,	2007			2006			Change
Financial Condition:
Total Assets	$	986,762		$	899,821			10	%
Loans — Net of Unearned Discounts		422,702			354,707			19	%
Investment Securities		483,400			416,023			16	%
Total Deposits		622,465			637,959			(2	%)
Shareholders’ Equity		101,160			89,803			13	%
Book Value Per Share		18.23			16.19			13	%
Selected Ratios
Return on average shareholders’ equity		10.89	%		8.85	%
Return on average total assets		1.10	%		1.15	%
Primary capital to average assets		11.36	%		11.41	%
Allowance for loan losses as a % of loans, net of unearned discount		2.57	%		3.09	%

(1) Based on weighted average shares outstanding of 5,548,199 and 5,548,609 at March 31, 2007 and 2006, respectively.