8-K
Peoples Financial Corp /Ms/ (PFBX)
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) July 28, 2021
PEOPLES FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Mississippi
(State or Other Jurisdiction of Incorporation)
| 001-12103<br><br> <br>(Commission File Number) | 64-0709834<br><br> <br>(IRS Employer Identification No.) |
|---|---|
| 152 Lameuse Street Biloxi, MS<br><br> <br>(Address of Principal Executive Offices) | 39530<br><br> <br>(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<br> 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 July 28, 2021, Peoples Financial Corporation (the “Company”) issued a press release announcing its results for the second quarter of 2021. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits |
|---|---|
| 99.1 | Press Release issued by Peoples Financial Corporation dated July 28, 2021 “Peoples Financial Corporation Reports Results For Second Quarter of 2021.” |
| --- | --- |
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: July 28, 2021
| PEOPLES FINANCIAL CORPORATION | |
|---|---|
| By: | /s/ Chevis C. Swetman |
| Chevis C. Swetman | |
| Chairman, President and CEO |
ex_266919.htm
Exhibit 99.1: Peoples Financial Corporation Press Release Dated July 28, 2021
FOR IMMEDIATE RELEASE
For more information, contact:
Chevis C. Swetman, President and CEO
228-435-8205
cswetman@thepeoples.com
PEOPLES FINANCIAL CORPORATION REPORTS
RESULTS FOR THE SECOND QUARTER OF 2021
BILOXI, MS (July 28, 2021) - Peoples Financial Corporation (the “Company”)(OTCQX Best Market: PFBX), parent of The Peoples Bank, announced earnings for the second quarter ending June 30, 2021.
Net income for the second quarter of 2021 was $789,000 compared to a net loss of $277,000 for the second quarter of 2020. The earnings per weighted average common share for the second quarter of 2021 were $0.16 compared to loss per weighted average common share of $0.06 for the second quarter of 2020. Per share figures are based on weighted average common shares outstanding of 4,878,557 and 4,883,764 for the second quarters 2021 and 2020, respectively.
The improvement in net income for the second quarter of 2021 is primarily due to the decrease in the provision for loan losses of $22,000 for the second quarter of 2021 as compared with $1,333,000 for the second quarter of 2020. In the second quarter of 2020, a specific reserve of $1,135,000 was allocated to one credit based on new information relating to this customer.
Net income for the first six months of 2021 increased $4,273,000 to $5,119,000 compared to net income of $846,000 for the first six months of 2020. The earnings per weighted average common share for the first six months of 2021 were $1.05 compared to earnings per weighted average common share of $0.17 for the first six months of 2020. Per share figures are based on weighted average common shares outstanding of 4,878,557 and 4,905,690 for the first six months of 2021 and 2020, respectively.
The Company’s net income for the first six months of 2021 improved significantly due to the reduction in the allowance for loan losses of $4,831,000. During the first quarter of 2021, the Bank subsidiary recorded a recovery of $4,510,000 on a previously charged-off loan. Based on that computation and the on-going evaluation of the credit quality of the entire loan portfolio, Management recorded a negative provision for loan losses of $4,853,000 during the first quarter of 2021.
The Company’s net income for the first six months was also impacted by an increase in non-interest expense, primarily a result of the settlement of a lawsuit of $1,125,000.
“We are pleased to report the continued progress your Company has achieved in implementing its strategic plan.” said Chevis C. Swetman, chairman and chief executive officer of the Company and the Bank. He added, “For some time, Bank management has focused on improving asset quality, with those efforts resulting in the significant reduction in past due loans, nonaccruals and other real estate. Reducing our cost of funds has been another priority and I can report that the Bank has successfully repriced a number of large depository bids which will result in a reduction in interest expense.”
Strength, security and stability have been hallmarks of the Company since its founding in 1985 and of The Peoples Bank since its founding in 1896. With very few exceptions, we have paid semi-annual cash dividends to our shareholders, while maintaining the strong capital position our shareholders expect. The Company’s capital continues its position as one of the highest in the Southeast United States. The Company’s primary capital ratio was 13.89% and 16.58% at June 30, 2021 and 2020, respectively. The Company’s book value per share was $19.72 and $20.31 at June 30, 2021 and 2020, respectively.
Founded in 1896, with $768 million in total assets as of June 30, 2021, 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.
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, 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, 2020, 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, | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | 2020 | 2021 | 2020 | ||||||||
| Net interest income | $ | 4,449 | $ | 9,243 | $ | 8,845 | |||||
| Provision for (reduction of) allowance for loan losses | 1,333 | (4,831 | ) | 1,397 | |||||||
| Non-interest income | 1,753 | 3,098 | 4,019 | ||||||||
| Non-interest expense | 5,146 | 12,053 | 10,621 | ||||||||
| Net income (loss) | (277 | ) | 5,119 | 846 | |||||||
| Earnings (loss) per share | (.06 | ) | 1.05 | .17 | |||||||
| TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES | **** | **** | **** | **** | **** | **** | **** | **** | **** | ||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||
| Allowance for loan losses, beginning of period | $ | 4,191 | $ | 4,426 | $ | 4,207 | |||||
| Recoveries | 59 | 4,672 | 121 | ||||||||
| Charge-offs | ) | (254 | ) | (139 | ) | (396 | ) | ||||
| Provision for (reduction of ) loan losses | 1,333 | (4,831 | ) | 1,397 | |||||||
| Allowance for loan losses, end of period | $ | 5,329 | $ | 4,128 | $ | 5,329 | |||||
| ASSET QUALITY | June 30, | ||||||||||
| 2021 | 2020 | ||||||||||
| Allowance for loan losses as a percentage of loans | % | 1.83 | % | ||||||||
| Loans past due 90 days and still accruing | $ | 82 | |||||||||
| Nonaccrual loans | 8,381 | ||||||||||
| PERFORMANCE RATIOS (annualized) | June 30, | ||||||||||
| 2021 | 2020 | ||||||||||
| Return on average assets | % | .27 | % | ||||||||
| Return on average equity | % | 1.74 | % | ||||||||
| Net interest margin | % | 3.07 | % | ||||||||
| Efficiency ratio | % | 93 | % | ||||||||
| Primary capital | % | 16.58 | % | ||||||||
| BALANCE SHEET SUMMARY | June 30, | ||||||||||
| 2021 | 2020 | ||||||||||
| Total assets | $ | 656,450 | |||||||||
| Securities | 252,956 | ||||||||||
| Loans | 290,538 | ||||||||||
| Other real estate | 6,100 | ||||||||||
| Total deposits | 535,848 | ||||||||||
| Shareholders' equity | 99,197 | ||||||||||
| Book value per share | 20.31 | ||||||||||
| Weighted average shares | 4,905,690 |
All values are in US Dollars.