PEOPLES FINANCIAL CORPORATION REPORTS RESULTS FOR THE SECOND QUARTER OF 2024
Rhea-AI Summary
Peoples Financial (OTCQX: PFBX) reported earnings for Q2 2024. Net income was $2,329,000, down from $2,910,000 in Q2 2023. Earnings per share decreased to $0.50 from $0.62 year-over-year. The decline was primarily due to a decrease in net interest income of $1,299,000 to $5,903,000.
For the first six months of 2024, net income decreased to $4,744,000 from $5,533,000 in the same period of 2023. The company's efficiency ratio increased to 68% from 63%. Despite economic challenges, gross loans increased by $4,460,000 to $238,740,000. Total shareholders' equity rose to $74,200,000, up by $9,674,000 from June 30, 2023.
Positive
- Gross loans increased by $4,460,000 to $238,740,000
- Total shareholders' equity rose by $9,674,000 to $74,200,000
- The Bank's leverage ratio remained strong at 11.84%
- Company plans to utilize $1,033,090 in federal tax credits in 2024
Negative
- Net income decreased to $2,329,000 from $2,910,000 in Q2 2023
- Earnings per share dropped to $0.50 from $0.62 year-over-year
- Net interest income decreased by $1,299,000 to $5,903,000
- Efficiency ratio increased to 68% from 63%
- Total deposits decreased by $13,576,000 to $674,914,000
News Market Reaction 1 Alert
On the day this news was published, PFBX declined 1.79%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Second Quarter Earnings
Net income for the second quarter of 2024 was
The decrease in net income for the second quarter of 2024 was primarily due to a decrease in net interest income of
The Company started recording income tax expense during 2023 after utilizing its remaining net operating loss carryforward during 2022. The income tax expense decreased
Net income for the first six months of 2024 decreased
The federal tax credits to be utilized include rehabilitation tax credits for the recent renovation of the building that houses the asset management and trust department of the Bank as well as the Ellzey building, along with a low-income housing tax credit. The Company plans to use in 2024 these credits of
Return on average assets for the first six months ended June 30, 2024, decreased
Asset Quality
Although the economy has experienced a rising rate environment, gross loans increased
"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. As hurricane season commences, the Company has proactively prioritized hurricane preparedness. Across all 18 bank facilities, we have ensured that resources are available allowing branches to operate even in the event of power outages. The Company has a comprehensive and thorough business continuity and disaster recovery strategy. The plan has been annually updated since 1999 (
Shareholders' Equity
Total shareholders' equity increased to
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
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 six months ended June 30, 2024. This decrease was mostly caused by the loss of several large public fund deposits in 2024 following competitive bid processes held in 2023 whereby the public fund deposit accounts were awarded to other local banks. During the first half of 2024, the Company did not encounter any further losses in its large public fund deposit accounts. As of June 30, 2024, total deposits have decreased
About the Company
Founded in 1896, with
The Company just experienced its third best year of earnings ever and was recently recognized as part of the 2024 OTCQX Best 50, a ranking of the top-performing OTCQX companies in the prior calendar year.
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, 2023, 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 June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Net interest income | $ 5,903 | $ 7,202 | $ 12,596 | $ 14,252 | ||||
Provision for credit losses | - | (312) | - | (297) | ||||
Non-interest income | 1,761 | 1,803 | 3,504 | 3,510 | ||||
Non-interest expense | 5,564 | 5,596 | 10,954 | 11,268 | ||||
Income tax (benefit) expense | (229) | 811 | 402 | 1,258 | ||||
Net income | 2,329 | 2,910 | 4,744 | 5,533 | ||||
Earnings per share | $ 0.50 | $ 0.62 | $ 1.02 | $ 1.18 | ||||
TRANSACTIONS IN THE ALLOWANCE FOR CREDIT LOSSES ON LOANS | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Allowance for credit losses on loans, beginning of period | $ 3,087 | $ 3,273 | $ 3,224 | $ 3,338 | ||||
Recoveries | 105 | 492 | 163 | 563 | ||||
Charge-offs | (42) | (231) | (177) | (387) | ||||
Provision for (reduction of ) loan losses | - | (310) | (60) | (280) | ||||
Impact of adopting ASC 326 | - | - | - | (10) | ||||
Allowance for credit losses on loans, end of period | $ 3,150 | $ 3,224 | $ 3,150 | $ 3,224 | ||||
PERFORMANCE RATIOS | ||||
June 30, | 2024 | 2023 | ||
Return on average assets | 1.16 % | 1.27 % | ||
Return on average equity | 13.30 % | 18.64 % | ||
Net interest margin | 3.07 % | 3.29 % | ||
Efficiency ratio | 68 % | 63 % | ||
BALANCE SHEET SUMMARY | ||||
June 30, | 2024 | 2023 | ||
Total assets | $ 846,747 | $ 895,676 | ||
Securities | 541,582 | 552,240 | ||
Loans, net | 235,590 | 231,056 | ||
Other real estate (ORE) | - | 952 | ||
Total deposits | 674,914 | 810,498 | ||
Shareholders' equity | 74,200 | 64,526 | ||
Book value per share | 15.92 | 13.79 | ||
Weighted average shares | 4,661,686 | 4,678,186 | ||
PERIOD END DATA | ||||
June 30, | 2024 | 2023 | ||
Allowance for credit losses on loans as a | ||||
percentage of loans | 1.32 % | 1.38 % | ||
Loans past due 90 days and | ||||
still accruing | $ - | $ - | ||
Nonaccrual loans | $ 455 | $ 87 | ||
Leverage ratio | 11.84 % | 10.69 % | ||
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SOURCE Peoples Financial Corporation
FAQ
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