UNITED STATES
SECURITIES 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) January 29, 2020
PEOPLES FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Mississippi
(State or Other Jurisdiction of Incorporation)
001-12103 (Commission File Number) |
64-0709834 (IRS Employer Identification No.) |
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152 Lameuse Street Biloxi, MS (Address of Principal Executive Offices) |
39530 (Zip Code) |
(228) 435-5511
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | |
None | PFBX | None |
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):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4( c) under the Exchange Act (17 CFR 240.13e-4( c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On January 29, 2020, Peoples Financial Corporation issued a press release announcing its results for the fourth quarter of 2019 and year end 2019.
Item 9.01. Financial Statements and Exhibits.
(d) |
Exhibits |
99.1 |
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: January 29, 2020
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PEOPLES FINANCIAL CORPORATION |
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By: |
/s/ Chevis C. Swetman |
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Chevis C. Swetman |
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Chairman, President and CEO |
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Exhibit 99.1: Peoples Financial Corporation Press Release Dated January 29, 2020
FOR IMMEDIATE RELEASE
For more information, contact:
Paul D. Guichet, Vice President
228-435-8761
pguichet@thepeoples.com
PEOPLES FINANCIAL CORPORATION REPORTS
FOURTH QUARTER AND YEAR-END RESULTS
BILOXI, MS (January 29, 2020)—Peoples Financial Corporation (OTCQX Best Market: PFBX), parent of The Peoples Bank, announced earnings for the fourth quarter and year ended December 31, 2019. The company reported net income of $1,126,000 for the fourth quarter of 2019 compared to net income of $102,000 for the fourth quarter of 2018. Earnings per weighted average common share for the fourth quarter of 2019 were $0.23 compared to earnings of $0.03 for the fourth quarter of 2018. Per share figures are based on weighted average common shares outstanding of 4,943,186 and 4,973,829 for the quarters ended December 31, 2019 and 2018, respectively.
Net income for 2019 was $1,679,000 as compared to $629,000 for 2018. Earnings per weighted average common share for 2019 were $0.34 compared to earnings of $0.13 for 2018. Per share figures are based on weighted average common shares outstanding of 4,943,186 and 5,031,778 for the year ended December 31, 2019 and 2018, respectively.
Impacting the company’s financial performance in 2019 were a $590,000 increase in net interest income, a reduction in the provision for loan losses, a $264,000 increase in non-interest income and a $110,000 reduction in non-interest expense. These positive results are the direct result of on-going efforts by the Company to improve the credit quality of the loan portfolio and to reduce non-performing assets over the last few years. Furthermore, financial results also reflect initiatives implemented during the last twelve months to increase non-interest income and reduce non-interest expenses.
“Our financial results for the fourth quarter and year ended 2019 improved significantly,” said Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank. He further added, “We are pleased that strategies to improve our financial performance have been successful and look forward to continuing this progress in the coming year.”
The company’s primary capital ratio was 16.27% at December 31, 2019, compared to 14.43% at December 31, 2018. The company’s book value per share was $19.24 and $17.59 at December 31, 2019 and 2018, respectively.
Founded in 1896, with $595 million in assets as of December 31, 2019, The Peoples Bank operates 18 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties. In addition to offering 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 OTCQX Best 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.
PEOPLES FINANCIAL CORPORATION
(Unaudited) (In thousands, except weighted average shares and per share figures)
EARNINGS SUMMARY |
Three Months Ended December 31, |
Year Ended December 31, |
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2019 |
2018 |
2019 |
2018 |
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Net interest income |
$ | 4,393 | $ | 4,331 | $ | 17,682 | $ | 17,092 | ||||||||
Provision for loan losses |
(169 | ) | 31 | 122 | ||||||||||||
Non-interest income |
1,579 | 1,259 | 6,367 | 6,103 | ||||||||||||
Non-interest expense |
5,015 | 5,493 | 22,370 | 22,480 | ||||||||||||
Income tax benefit |
(36 | ) | (36 | ) | ||||||||||||
Net income |
1,126 | 102 | 1,679 | 629 | ||||||||||||
Earnings per share |
.23 | .03 | .34 | .13 |
TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES |
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Three Months Ended December 31, |
Year Ended December 31, |
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2019 |
2018 |
2019 |
2018 |
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Allowance for loan losses, beginning of period |
$ | 4,383 | $ | 5,391 | $ | 5,340 | $ | 6,153 | ||||||||
Recoveries |
73 | 24 | 195 | 475 | ||||||||||||
Charge-offs |
(80 | ) | (106 | ) | (1,328 | ) | (1,410 | ) | ||||||||
Provision for loan losses |
(169 | ) | 31 | 122 | ||||||||||||
Allowance for loan losses, end of period |
$ | 4,207 | $ | 5,340 | $ | 4,207 | $ | 5,340 |
ASSET QUALITY | December 31, | |||||||
2019 | 2018 | |||||||
Allowance for loan losses as a percentage of loans |
1.56 | % | 1.95 | % | ||||
Loans past due 90 days and still accruing |
$ | $ | 55 | |||||
Nonaccrual loans |
9,266 | 8,250 |
PERFORMANCE RATIOS |
December 31, |
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2019 |
2018 |
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Return on average assets |
0.28 | % | 0.10 | % | ||||
Return on average equity |
1.84 | % | 0.71 | % | ||||
Net interest margin |
3.23 | % | 3.04 | % | ||||
Efficiency ratio |
93 | % | 97 | % | ||||
Primary capital |
16.27 | % | 14.43 | % |
BALANCE SHEET SUMMARY |
December 31, |
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2019 |
2018 |
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Total assets |
$ | 594,702 | $ | 616,786 | ||||
Loans |
268,949 | 273,346 | ||||||
Securities |
253,314 | 281,588 | ||||||
Other real estate (ORE) |
7,453 | 8,943 | ||||||
Total deposits |
476,143 | 473,506 | ||||||
Shareholders' equity |
95,123 | 86,934 | ||||||
Book value per share |
19.24 | 17.59 | ||||||
Weighted average shares |
4,943,186 | 5,031,778 |