Peoples Financial Corporation Reports Results for The Fourth Quarter of 2025

Rhea-AI Summary

Peoples Financial Corporation (OTCQX: PFBX) reported Q4 2025 net income of $716,000 ($0.16 per share), down from $1,528,000 in Q4 2024. For full-year 2025, net income was $3.911 million ($0.85), versus $21.703 million in 2024, driven largely by a 2024 discrete tax benefit. The board extended a stock repurchase program authorizing up to the lesser of $750,000 or 40,000 shares with no expiration. Total assets fell to $727.1 million and deposits declined $116.3 million to $604.4 million at year-end 2025.

Positive

• Board extended buyback program for up to $750,000 or 40,000 shares with no expiration
• Shareholders' equity increased $10.666 million to $100.667 million at December 31, 2025
• Book value per share rose to $21.80 from $19.49, an increase of about 11.8%

Negative

• Yearly net income fell to $3.911 million from $21.703 million, largely due to absence of 2024 discrete tax benefit
• Total deposits decreased $116.301 million (about 16%) to $604.429 million year-over-year
• Total assets declined $104.728 million (about 12.6%) to $727.121 million at December 31, 2025
• Return on average assets dropped from 2.65% to 0.50% for the year ended December 31, 2025

News Market Reaction – PFBX

+1.12%

1 alert

+1.12% News Effect

On the day this news was published, PFBX gained 1.12%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Repurchase authorization: $750,000 or 40,000 shares Q4 2025 net income: $716,000 Q4 2025 EPS: $0.16 +5 more

8 metrics

Repurchase authorization $750,000 or 40,000 shares Stock repurchase program limit with no expiration date

Q4 2025 net income $716,000 Down from $1,528,000 in Q4 2024

Q4 2025 EPS $0.16 Earnings per weighted average share vs $0.33 in Q4 2024

2025 net income $3,911,000 Down from $21,703,000 in 2024, which included a discrete tax benefit

2025 EPS $0.85 Earnings per weighted average share vs $4.66 in 2024

Return on average assets 0.50% For year ended December 31, 2025

Efficiency ratio 83% For year ended December 31, 2025, vs 73% in 2024

Total deposits $604,429,000 As of December 31, 2025 vs $720,730,000 at December 31, 2024

Market Reality Check

Price: $21.25 Vol: Volume 630 is 0.44x the 2...

low vol

$21.25 Last Close

Volume Volume 630 is 0.44x the 20-day average of 1,422, indicating subdued trading interest. low

Technical Price at $20.50 trades above the 200-day MA $18.58, about 9.05% below the 52-week high and 34.87% above the 52-week low.

Peers on Argus

Regional bank peers show mixed, modest moves (e.g., JDVB +0.82%, SLBK +1.73%, UB...

Regional bank peers show mixed, modest moves (e.g., JDVB +0.82%, SLBK +1.73%, UBOH -0.02%), suggesting this earnings release is more stock-specific than sector-driven.

Previous Earnings Reports

2 past events · Latest: Oct 23 (Positive)

Same Type Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Oct 23	Quarterly earnings	Positive	-0.7%	Q3 2024 earnings boosted by large tax allowance reversal despite weaker pre-tax income.
Jul 24	Quarterly earnings	Negative	-1.8%	Q2 2024 earnings fell on lower net interest income and higher efficiency ratio.

Pattern Detected

Recent earnings headlines linked to tax allowance reversal and net interest pressure saw small negative next-day moves, suggesting a tendency for mild downside on earnings updates.

Recent Company History

Recent earnings news for PFBX has focused on tax-related one-time items and pressure on net interest income. In Q2 2024, lower net interest income and higher efficiency ratio coincided with a -1.79% move. In Q3 2024, a large tax benefit drove net income higher but pre-tax income fell, with shares down 0.71%. Today’s 2025 results extend themes of margin and efficiency pressure while lacking the prior tax benefit boost.

Historical Comparison

+1.3% avg move · In the past year, PFBX’s earnings releases led to average moves of about 1.25%, with prior updates s...

earnings

+1.3%

Average Historical Move earnings

In the past year, PFBX’s earnings releases led to average moves of about 1.25%, with prior updates shaped by tax allowance reversal and net interest income volatility.

Earnings updates progressed from 2024 tax allowance reversal–driven results to 2025 figures reflecting lower interest income, higher efficiency ratio, and more normalized tax expense.

Market Pulse Summary

This announcement combines softer 2025 earnings with capital and shareholder-return actions. Net inc...

Analysis

This announcement combines softer 2025 earnings with capital and shareholder-return actions. Net income was $716,000 in Q4 2025 and $3.9M for the year, while the efficiency ratio rose to 83%. Deposits declined to $604.4M, and total assets stood at $727.1M. The board extended a repurchase program for up to $750,000 or 40,000 shares. Investors may watch net interest income, deposit trends, and asset quality metrics in upcoming periods.

Key Terms

stock repurchase program, allowance for credit losses, efficiency ratio, available for sale securities, +4 more

8 terms

stock repurchase program financial

"approved an extension of the Company’s current stock repurchase program, originally set"

A stock repurchase program is when a company buys back its own shares from the market. This can make each remaining share more valuable and shows that the company believes its stock is a good investment. It’s like a business treating its shares like a limited resource, hoping to boost confidence and share prices.

allowance for credit losses financial

"TRANSACTIONS IN THE ALLOWANCE FOR CREDIT LOSSES ON LOANS"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

efficiency ratio financial

"The Company’s efficiency ratio increased 10% to 83% for the year ended"

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

available for sale securities financial

"unrealized losses on the available for sale securities portfolio as of December 31, 2025"

Available-for-sale securities are bonds or stocks a company owns that it does not plan to trade frequently or hold until they mature, but might sell before maturity; their market value is tracked over time and changes are recorded separately from regular profits until they are sold. Investors watch these holdings because swings in their market value affect a company’s reported assets and equity and can signal future cash from sales, much like items in a household that are kept for occasional sale and can change in resale value.

leverage ratio financial

"therefore remained strong at 15.76% as of December 31, 2025. LiquidityThe Company"

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

FDIC insured regulatory

"The majority of the Bank’s deposits are fully FDIC insured."

A U.S. government insurance program that protects money held in eligible bank and savings accounts up to a set limit if the bank fails. It matters to investors because it acts like a safety net for cash — reducing the risk of losing deposits and helping decide where to park short‑term funds — but it does not cover stocks, bonds, mutual funds, or cryptocurrencies.

Form 10-K regulatory

"described under “Management’s Discussion and Analysis of Financial Condition” in the Company’s Annual Report on Form 10-K"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

forward-looking statements regulatory

"This news release reflects industry conditions, Company performance and financial results and contains “forward-looking statements,”"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

BILOXI, Miss., Jan. 29, 2026 (GLOBE NEWSWIRE) -- Peoples Financial Corporation (the “Company”) (OTCQX Best Market: PFBX), parent of The Peoples Bank (the “Bank”), announced earnings for the fourth quarter ending December 31, 2025. Additionally, the board of directors of Peoples Financial Corporation announced that it has approved an extension of the Company’s current stock repurchase program, originally set to expire on December 31, 2025, with no expiration date. The program authorizes the repurchase of up to the lesser of $750,000 or 40,000 shares of the Company’s outstanding and issued common stock. Shares will be repurchased at the discretion of management either on the open market or through privately negotiated transactions, and repurchased shares will be retired. As of December 31, 2025, the Company reported common shares outstanding of 4,617,466. The Company also announced that its 2026 annual meeting of shareholders will take place on April 22, 2026.

Fourth Quarter Earnings
Net income for the fourth quarter of 2025 decreased $812,000 to $716,000 compared to net income of $1,528,000 for the fourth quarter of 2024. The earnings per weighted average common share for the fourth quarter of 2025 were $0.16 compared to earnings per weighted average common share of $0.33 for the fourth quarter of 2024. Per share figures are based on weighted average common shares outstanding of 4,617,466 and 4,640,537 for the fourth quarters of 2025 and 2024, respectively.

The decrease in net income for the fourth quarter of 2025 was due to lower interest income on securities, overnight fed funds and loans caused by a decrease in balances, yields and rates on securities, overnight fed funds and one category of loans. Total interest income decreased by $1,071,000 to $6,569,000 for the fourth quarter of 2025 as compared with $7,640,000 for the fourth quarter of 2024. Total interest expense decreased by $134,000 to $1,930,000 for the fourth quarter of 2025 as compared with $2,064,000 for the fourth quarter of 2024 due to lower balances and interest rates paid on borrowings.

Net income for the year ended 2025 decreased $17,792,000 to $3,911,000 compared to net income of $21,703,000 for the year ended 2024. The earnings per weighted average common share for the year ended 2025 were $0.85 compared to earnings per weighted average common share of $4.66 for the year ended 2024. Per share figures are based on weighted average common shares outstanding of 4,617,466 and 4,656,370 for the year ended 2025 and 2024, respectively.

The decrease in net income for the year ended 2025 was mainly due to a discrete item of $15,194,000 recorded as a tax benefit for the reversal of the Company’s valuation allowance on federal and state deferred tax assets during the third quarter and year ended 2024. Pre-tax income for the year ended 2025 decreased $3,569,000 to $4,811,000 as compared with $8,380,000 for the year ended 2024. Total interest income decreased by $4,592,000 to $28,502,000 for the year ended 2025 as compared with $33,094,000 for the year ended 2024 due to lower balances and yields on investments and overnight fed funds offset slightly by higher interest and fees on loans. Total interest expense decreased by $1,496,000 to $8,147,000 for the year ended 2025 as compared with $9,643,000 for the year ended 2024. The decrease was due to lower balances and interest rates paid on borrowings.

The Company had a valuation allowance on federal and state deferred tax assets totaling $15,617,000 as of December 31, 2023. In the third quarter of 2024, the Company reassessed the valuation allowance in accordance with applicable accounting guidance and determined it was appropriate to reverse substantially all the valuation allowance which resulted in a one-time discrete reduction to income tax expense of $15,194,000 during the third quarter of 2024. Excluding the discrete item, income tax expense for the twelve months ended December 31, 2024, totaled $1,871,000 based upon the expected annual tax rate for 2024 of 22.33% compared to income tax expense of $900,000 for the twelve months ended December 31, 2025, at an effective rate of 18.71%.

Return on average assets for the year ended December 31, 2025, decreased 2.15% from 2.65% to 0.50% (the 2.65%, included the discrete item), with the discrete item excluded from the calculation, return on average assets would be 0.80% for the year ended December 31, 2024. The Company’s efficiency ratio increased 10% to 83% for the year ended December 31, 2025, compared to 73% for the year ended December 31, 2024.

Asset Quality
“The Bank’s leadership remains committed to maintaining high-quality assets. We are closely monitoring economic conditions and staying vigilant for any potential changes in interest rates,” said Chevis C. Swetman, chairman and chief executive officer of the Company and the Bank.

Shareholders’ Equity
Total shareholders’ equity increased by $10,666,000 from $90,001,000 at December 31, 2024, to $100,667,000 at December 31, 2025. The improvement in shareholders’ equity was partially due to the twelve-month earnings of $3,911,000 through December 31, 2025. The Company also experienced a decrease of $9,077,000 in unrealized losses on securities in 2025. The Company reported $28,929,000 and $38,006,000 in unrealized losses on the available for sale securities portfolio as of December 31, 2025, and December 31, 2024, respectively. These unrealized losses are presented in accumulated other comprehensive income for the respective periods. The cause of the unrealized losses has primarily resulted from higher interest rates that have impacted the current market value of available for sale securities. The unrealized losses are not related to any credit deterioration within the portfolio. The Company has maintained strong liquidity and continues to do so; therefore, the Company does not foresee a sale of any affected securities that would cause the realization of these losses by the Company as part of net income in the near future.

The Bank’s leverage ratio has not been impacted by these unrealized losses on available for sale securities due to an opt-out election previously made by the Bank in accordance with current regulatory capital requirements and therefore remained strong at 15.76% as of December 31, 2025.

Liquidity
The Company maintains a well-capitalized balance sheet which includes strong capital and liquidity. The Bank provides a full range of banking, financial and trust services in our local markets. The majority of the Bank’s deposits are fully FDIC insured. The Company evaluates on an ongoing and continuous basis its financial health by preparing for various moderate to severe economic scenarios.

As interest rates have increased and the cost of attracting new deposits and replacing deposit attrition has increased, the Bank experienced a decrease in deposit balances during the twelve months ended December 31, 2025. This decrease was mostly caused by the loss of several large public fund deposits in 2025 following competitive bid processes held in 2025 whereby the public fund deposit accounts were awarded to other local banks. As of December 31, 2025, total deposits have decreased $116,301,000 to $604,429,000 from $720,730,000 as of December 31, 2024.

About the Company
Founded in 1896, with $727 million in total assets as of December 31, 2025, The Peoples Bank operates 18 bank facilities 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.

Peoples Financial Corporation’s common stock is listed on the OTCQX Best Market under the symbol PFBX. Additional information is available on the Internet at the Company’s website, www.thepeoples.com, and at the website of the Securities and Exchange Commission (“SEC”), www.sec.gov.

This news release reflects industry conditions, Company performance and financial results and contains “forward-looking statements,” which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. 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 materially from the anticipated results and expectation expressed in such forward-looking statements.

Factors that could cause our actual results to differ materially from our forward-looking statements are described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Regulation and Supervision” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and in other documents subsequently filed by the Company with the Securities and Exchange Commission, available at the SEC’s website and the Company’s website, each of which are referenced above. To the extent that statements in this news release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology.

Forward-looking statements represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. All information is as of the date of this news release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

PEOPLES FINANCIAL CORPORATION
(In thousands, except per share figures) (Unaudited)

EARNINGS SUMMARY

		Three Months Ended December 31,							Year Ended December 31,
		2025			2024				2025			2024
Net interest income		$	4,639		$	5,576			$	20,355		$	23,451
Provision for credit losses			8			(114	)			3			(162	)
Non-interest income			1,759			1,760				7,156			7,014
Non-interest expense			5,537			5,550				22,697			22,247
Income tax expense (benefit)			137			372				900			(13,323	)
Net income			716			1,528				3,911			21,703
Earnings per share		$	0.16		$	0.33			$	0.85		$	4.66

TRANSACTIONS IN THE ALLOWANCE FOR CREDIT LOSSES ON LOANS

		Three Months Ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
Allowance for credit losses on loans, beginning of period		$	2,934			$	3,091			$	2,982			$	3,224
Recoveries			23				38				134				227
Charge-offs			(37	)			(47	)			(212	)			(269	)
Provision for (reduction of ) loan losses			19				(100	)			35				(200	)
Allowance for credit losses on loans, end of period		$	2,939			$	2,982			$	2,939			$	2,982

PERFORMANCE RATIOS

December 31,	2025		2024
Return on average assets	0.50	%	2.65	%	*
Return on average equity	4.10	%	27.25	%	*
Net interest margin	2.91	%	3.05	%
Efficiency ratio	83	%	73	%
*-Includes discrete item of $15,194 for the reversal of valuation allowance in Q3 2024.

BALANCE SHEET SUMMARY

December 31,		2025			2024
Total assets		$	727,121		$	831,849
Securities			389,168			431,804
Loans, net			260,767			230,594
Other real estate (ORE)			—			9
Total deposits			604,429			720,730
Shareholders’ equity			100,667			90,001
Book value per share			21.80			19.49
Weighted average shares			4,617,466			4,656,370

PERIOD END DATA

December 31,		2025				2024
Allowance for credit losses on loans as a
percentage of loans			1.11	%			1.28	%
Loans past due 90 days and
still accruing		$	—			$	—
Nonaccrual loans		$	533			$	418
Leverage ratio			15.76	%			13.95	%

For more information, contact:
Chevis C. Swetman, President and CEO
228-435-8205
cswetman@thepeoples.com

FAQ

What were Peoples Financial Corporation (PFBX) fourth quarter 2025 earnings per share?

Earnings per share for Q4 2025 were $0.16. According to the company, that compares with $0.33 per share in Q4 2024, reflecting lower interest income and decreased balances and yields.

How large is the PFBX stock repurchase program approved January 29, 2026?

The program authorizes repurchases up to the lesser of $750,000 or 40,000 shares. According to the company, repurchases may occur on the open market or via private transactions and repurchased shares will be retired.

Why did Peoples Financial Corporation (PFBX) full-year 2025 net income fall versus 2024?

Full-year 2025 net income was $3.911 million, down from $21.703 million in 2024. According to the company, 2024 included a one-time $15.194 million discrete tax benefit from a valuation allowance reversal.

How much did Peoples Financial Corporation (PFBX) deposits change in 2025?

Total deposits declined by $116.301 million to $604.429 million at December 31, 2025. According to the company, the decrease was largely due to loss of several large public fund deposits after competitive bids.

What is Peoples Financial Corporation's (PFBX) capital and liquidity position at year-end 2025?

The company reported strong capitalization with shareholders' equity of $100.667 million and a Bank leverage ratio of 15.76%. According to the company, liquidity remains strong and unrealized securities losses are not expected to be realized.