Peoples Financial Corporation Reports Strong Annual Earnings and Announces Stock Repurchase Program

Peoples Financial Corporation experienced its third-best year of earnings in 2024, with net income increasing substantially to $21.7 million compared to $9.2 million in 2023. The dramatic improvement was primarily attributed to a one-time discrete tax benefit of $15.2 million from reversing a valuation allowance on federal and state deferred tax assets.

The financial institution saw several key financial metrics improve during the year. Return on average assets increased from 1.10% to 2.65%, largely due to the tax benefit. Without this discrete item, the return would have been 0.80%. The company's total shareholders' equity grew by $20.7 million to $90 million, driven by positive pre-tax earnings and a reduction in unrealized losses on securities.

In the fourth quarter, the company reported a slight decrease in net income, dropping from $1.7 million in 2023 to $1.5 million in 2024. This reduction was primarily due to increased noninterest expenses, particularly in employee benefits, and higher interest expenses from increased deposit account rates.

The board of directors also approved a new stock repurchase program for 2025, authorizing the purchase of up to 40,000 shares or shares with an aggregate repurchase price not exceeding $750,000. This program replaces the previous 2024 plan, under which the company repurchased 44,220 shares.

Despite challenges in the banking sector, Peoples Financial Corporation maintained a strong financial position. The bank's leverage ratio remained robust at 13.95%, and total deposits increased by $32.2 million to $720.7 million. The company continues to operate 18 bank facilities along the Mississippi Gulf Coast, offering a comprehensive range of retail and commercial banking services.

Bank leadership, led by Chairman and CEO Chevis C. Swetman, emphasized their commitment to maintaining high-quality assets and closely monitoring economic conditions. The company's strategic approach includes preparing for various economic scenarios and maintaining strong liquidity.

The annual meeting of shareholders is scheduled for April 23, 2025, where investors can expect further insights into the company's financial strategy and performance.