Peoples Financial Corporation Reports Third Quarter 2026 Results and Announces a 5.6% Increase in Its Regular Semi-Annual Dividend, From $0.18 to $0.19 per Common Share

Higher net interest income supported quarterly earnings, while increased unrealized securities losses reduced shareholders’ equity.

Rhea-AI Summary

Peoples Financial Corporation (PFBX) reported third-quarter 2026 net income of $1,116,000 and raised its regular semi-annual cash dividend.

Earnings rose from $643,000 a year earlier, with earnings per share increasing to $0.24 from $0.14. Net interest income increased to $5,136,000 from $4,576,000. The dividend rose 5.6% to $0.19 per common share, payable November 13, 2026, to shareholders of record November 10.

Nine-month net income increased to $3,459,000 from $3,195,000, supported by a $398,000 discrete tax benefit. Net loans reached $292,828,000 versus $249,737,000 a year earlier. Deposits increased to $646,151,000 from $604,429,000 at year-end 2025. However, shareholders’ equity fell to $98,242,000 from $100,667,000 at year-end as unrealized securities losses increased. Third-quarter non-interest expenses also rose.

24 points · 0 major

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0 major · 12 points

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Positive

• Moderate pointThird-quarter net income increased to $1,116,000 from $643,000 a year earlier.
• Moderate pointThird-quarter net interest income increased to $5,136,000 from $4,576,000 a year earlier.
• Moderate pointNet loans increased to $292,828,000 at September 30, 2026, from $249,737,000 a year earlier.
• Moderate pointDeposits increased to $646,151,000 from $604,429,000 at year-end 2025, mainly through third-quarter public fund deposits.
• Minor pointRegular semi-annual dividend increased 5.6%, from $0.18 to $0.19 per common share, payable November 13, 2026.

19 minor points

• Minor pointThird-quarter earnings per share rose to $0.24 from $0.14 a year earlier.
• Minor pointThird-quarter interest income rose to $7,237,000 from $6,910,000, primarily from higher loan interest income.
• Minor pointThird-quarter interest expense decreased to $2,101,000 from $2,334,000 a year earlier.
• Minor pointNine-month net income increased to $3,459,000 from $3,195,000 a year earlier.
• Minor pointNine-month earnings per share increased to $0.75 from $0.69 a year earlier.
• Minor pointNine-month income tax expense fell to $350,000 from $763,000, including a $398,000 discrete tax benefit.
• Minor pointThird-quarter taxes shifted to a $169,000 benefit from a $143,000 expense a year earlier.
• Minor pointNine-month net interest income rose to $15,822,000 from $15,716,000 a year earlier.
• Minor pointNine-month non-interest income increased to $5,553,000 from $5,408,000 a year earlier.
• Minor pointTotal assets rose to $775,544,000 at September 30, 2026, from $758,066,000 a year earlier.
• Minor pointNine-month return on average assets increased to 0.61% from 0.54% a year earlier.
• Minor pointReported return on average equity increased to 4.65% from 4.50% at September 30, year over year.
• Minor pointReported net interest margin increased to 2.98% from 2.92% at September 30, year over year.
• Minor pointNonaccrual loans declined to $479,000 from $793,000 at September 30, year over year.
• Minor pointLoans past due 90 days and still accruing fell to $59,000 from $100,000, September 30 year over year.
• Minor pointThird-quarter loan charge-offs decreased to $39,000 from $73,000 a year earlier.
• Minor pointNine-month loan charge-offs decreased to $126,000 from $175,000 a year earlier.
• Minor pointNine-month loan recoveries increased to $267,000 from $111,000 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Management expects higher-yield securities reinvestment and continued loan growth to offset lower securities income.

Negative

• Moderate pointUnrealized available-for-sale securities losses increased to $33,982,000 from $28,929,000 at year-end 2025.
• Moderate pointThird-quarter non-interest expense increased to $6,032,000 from $5,718,000 a year earlier.
• Minor pointShareholders’ equity fell to $98,242,000 from $100,667,000 at year-end 2025 and $100,009,000 a year earlier.
• Minor pointBook value per share declined to $21.28 from $21.66 at September 30, year over year.
• Minor pointNine-month non-interest expense increased to $17,538,000 from $17,171,000 a year earlier.

7 minor points

• Minor pointThird-quarter non-interest income decreased to $1,885,000 from $1,928,000 a year earlier.
• Minor pointNine-month efficiency ratio worsened to 82% from 81% a year earlier.
• Minor pointThird-quarter credit-loss provision increased to $42,000 from zero a year earlier.
• Minor pointNine-month credit-loss provision was $28,000, versus a $5,000 reduction a year earlier.
• Minor pointLoan-loss allowance coverage declined to 1.06% from 1.16% of loans at September 30, year over year.
• Minor pointLeverage ratio declined to 14.89% from 15.19% at September 30, year over year.
• Minor pointThird-quarter loan recoveries decreased to $19,000 from $28,000 a year earlier.

Key Figures

Semi-annual dividend: $0.18 to $0.19 per common share; 5.6% increase Third-quarter net income: $1,116,000 vs. $643,000 Third-quarter earnings per share: $0.24 vs. $0.14 +4 more

Semi-annual dividend

$0.18 to $0.19 per common share; 5.6% increase

Regular cash dividend

Third-quarter net income

$1,116,000 vs. $643,000

Third quarter 2026 vs. third quarter 2025

Third-quarter earnings per share

$0.24 vs. $0.14

Third quarter 2026 vs. third quarter 2025

Third-quarter net interest income

$5,136,000 vs. $4,576,000

Third quarter 2026 vs. third quarter 2025

Nine-month net income

$3,459,000 vs. $3,195,000

First nine months of 2026 vs. first nine months of 2025

Unrealized securities losses

$33,982,000 vs. $28,929,000

Available-for-sale securities portfolio at September 30, 2026 vs. December 31, 2025

Total deposits

$646,151,000 vs. $604,429,000

September 30, 2026 vs. December 31, 2025

Historical Context

1 past event · Latest: Jul 22

1 event

1. Jul 22

   Quarterly earnings

   24h Move

   -0.4%

   Second-quarter net income and net interest income both declined year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net operating loss carryforward, available for sale securities, accumulated other comprehensive income, net interest margin

4 terms

net operating loss carryforward financial

"true-up of a state net operating loss carryforward associated with U.S. Treasury interest"

Net operating loss carryforward is a tax rule that lets a company apply past operating losses against future taxable profits, similar to carrying unused coupons forward to reduce later bills. It matters to investors because these carried losses can lower future tax bills, improve cash flow and reported earnings, and therefore increase the value of a company or change the attractiveness of mergers and investments.

available for sale securities financial

"unrealized losses on the available for sale securities portfolio"

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.

accumulated other comprehensive income financial

"presented in accumulated other comprehensive income for the respective periods"

Accumulated other comprehensive income is a running total on a company’s balance sheet that records certain gains and losses not included in reported profit, such as unrealized gains or losses on some investments, currency translation differences, and pension plan adjustments. Think of it like items in a shopping cart you haven’t paid for yet: it doesn’t affect current profit but changes the company’s overall equity and signals potential future swings in value that investors should watch.

net interest margin financial

"Net interest margin"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BILOXI, Miss., Oct. 28, 2026 (GLOBE NEWSWIRE) -- Peoples Financial Corporation (the “Company”)(OTCQX Best Market: PFBX), parent of The Peoples Bank (the “Bank”), announced earnings for the third quarter ending September 30, 2026 and the declaration of a 5.6% increase of its regular semi-annual cash dividend from $0.18 to $0.19 per common share payable on November 13, 2026, to shareholders of record as of November 10, 2026.

Third Quarter Earnings
Net income for the third quarter of 2026 increased $473,000 to $1,116,000 compared to net income of $643,000 for the third quarter of 2025. The earnings per weighted average common share for the third quarter of 2026 were $0.24 compared to earnings per weighted average common share of $0.14 for the third quarter of 2025. Per share figures are based on weighted average common shares outstanding of 4,617,466 for the third quarters of 2026 and 2025, respectively.

The increase in net income for the third quarter of 2026 was primarily due to an increase in net interest income of $560,000 to $5,136,000 for the third quarter of 2026 compared with $4,576,000 for the third quarter of 2025. Total interest income increased by $327,000 to $7,237,000 for the third quarter of 2026 as compared with $6,910,000 for the third quarter of 2025 primarily due to higher interest income on loans. Management expects to offset lower securities income by reinvesting maturing securities at higher yields and through continued loan growth. Total interest expense decreased by $233,000 to $2,101,000 for the third quarter of 2026 as compared with $2,334,000 for the third quarter of 2025. The cost of funds decreased during the third quarter of 2026, primarily due to lower rates and balances on Federal Home Loan Bank borrowings and reduced interest expense on savings, demand deposit, NOW, and time deposit accounts. These factors contributed to the overall decrease in interest expense for the quarter.

Net income for the first nine months of 2026 increased $264,000 to $3,459,000 compared to net income of $3,195,000 for the first nine months of 2025. The earnings per weighted average common share for the first nine months of 2026 were $0.75 compared to earnings per weighted average common share of $0.69 for the first nine months of 2025. Per share figures are based on weighted average common shares outstanding of 4,617,466 for the first nine months of 2026 and 2025, respectively. The income tax expense decreased $413,000 to $350,000 for the first nine months of 2026 as compared with $763,000 for the first nine months of 2025. The decrease was primarily attributable to a $398,000 discrete tax benefit recognized upon completion of prior-year state and federal tax returns, primarily related to the true-up of a state net operating loss carryforward associated with U.S. Treasury interest that had not been fully reflected in the prior-year estimated state tax provision.

Return on average assets for the first nine months ended September 30, 2026, increased 0.07% to 0.61% compared to 0.54% for the first nine months ended September 30, 2025. The Company’s efficiency ratio increased 1% to 82% for the first nine months ended September 30, 2026, compared to 81% for the first nine months ended September 30, 2025.

Asset Quality and Growth
“The Bank’s leadership remains committed to maintaining high asset quality. We continue to monitor economic conditions closely, including interest-rate changes. Significant loan growth during the nine months ended September 30, 2026, reflects the strength of our markets, the effectiveness of our lending team, and our ability to expand earning assets while preserving credit quality,” said Chevis C. Swetman, Chairman and Chief Executive Officer of the Company and the Bank.

Shareholders’ Equity
Total shareholders’ equity decreased by $2,425,000 from $100,667,000 at December 31, 2025, to $98,242,000 at September 30, 2026. The reduction in shareholders’ equity was due to an increase in the unrealized losses on the security portfolio along with the payment of dividends of $831,000 to shareholders of record since June 08, 2026, offset somewhat by earnings of $3,459,000 through September 30, 2026. The Company recorded an increase of $5,053,000 in unrealized losses on its securities portfolio during 2026, primarily during September, as rising interest rates adversely affected the fair value of investment securities. The Company reported $33,982,000 and $28,929,000 in unrealized losses on the available for sale securities portfolio as of September 30, 2026, and December 31, 2025, 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 14.89% as of September 30, 2026.

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 of September 30, 2026, total deposits have increased $41,722,000 to $646,151,000 from $604,429,000 as of December 31, 2025. This is mainly due to the addition of public fund deposits during the third quarter of 2026.

About the Company
Founded in 1896, with $776 million in total assets as of September 30, 2026, 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 expectations 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, 2025, 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 September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net interest income		$	5,136			$	4,576			$	15,822			$	15,716
Provision (reduction) for credit losses			42				—				28				(5	)
Non-interest income			1,885				1,928				5,553				5,408
Non-interest expense			6,032				5,718				17,538				17,171
Income tax (benefit) expense			(169	)			143				350				763
Net income			1,116				643				3,459				3,195
Earnings per share		$	0.24			$	0.14			$	0.75			$	0.69

TRANSACTIONS IN THE ALLOWANCE FOR CREDIT LOSSES ON LOANS

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Allowance for credit losses on loans, beginning of period		$	3,100			$	2,966			$	2,939			$	2,982
Recoveries			19				28				267				111
Charge-offs			(39	)			(73	)			(126	)			(175	)
Provision for (reduction of ) loan losses		52				13				52				16
Allowance for credit losses on loans, end of period		$	3,132			$	2,934			$	3,132			$	2,934

PERFORMANCE RATIOS

September 30,		2026			2025
Return on average assets		0.61	%		0.54	%
Return on average equity		4.65	%		4.50	%
Net interest margin		2.98	%		2.92	%
Efficiency ratio		82	%		81	%

BALANCE SHEET SUMMARY

September 30,		2026				2025
Total assets		$	775,544			$	758,066
Securities			408,463				407,913
Loans, net			292,828				249,737
Other real estate (ORE)			—				—
Total deposits			646,151				637,576
Shareholders’ equity			98,242				100,009
Book value per share			21.28				21.66
Weighted average shares			4,617,466				4,617,466

PERIOD END DATA

September 30,		2026				2025
Allowance for credit losses on loans as a
percentage of loans			1.06	%			1.16	%
Loans past due 90 days and
still accruing		$	59			$	100
Nonaccrual loans		$	479			$	793
Leverage ratio			14.89	%			15.19	%

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Peoples Financial earn in the third quarter of 2026?

Peoples Financial earned $1,116,000, or $0.24 per weighted average common share, in the third quarter of 2026. That compares with $643,000, or $0.14 per share, in the third quarter of 2025.

What is Peoples Financial’s increased dividend and when will it be paid?

The regular semi-annual cash dividend increased 5.6% from $0.18 to $0.19 per common share. Payment is scheduled for November 13, 2026, to shareholders of record as of November 10, 2026.

Why did Peoples Financial’s unrealized securities losses increase in 2026?

Higher interest rates reduced the market value of available-for-sale securities, increasing unrealized losses by $5,053,000 during 2026, primarily in September. The losses were not related to credit deterioration. The company does not foresee a near-term sale that would realize these losses in net income. A prior regulatory opt-out election kept them from affecting the Bank’s leverage ratio.

What caused Peoples Financial’s discrete tax benefit in the first nine months of 2026?

The $398,000 discrete tax benefit arose upon completion of prior-year state and federal tax returns. It primarily reflected an adjustment to a state net operating loss carryforward associated with U.S. Treasury interest that had not been fully reflected in the prior-year estimated state tax provision.