PEOPLES FINANCIAL CORPORATION REPORTS RESULTS FOR THE SECOND QUARTER OF 2024
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
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 11.84% as of
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
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
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.
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
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.
|
|
|
|
|
||||
(In thousands, except per share figures) (Unaudited) |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
EARNINGS SUMMARY |
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
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 |
|
Six Months Ended |
||||
|
|
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 |
|
|
||
|
|
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 |
|
|
||
|
|
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 |
|
|
||
|
|
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 % |
View original content to download multimedia:https://www.prnewswire.com/news-releases/peoples-financial-corporation-reports-results-for-the-second-quarter-of-2024-302203777.html
SOURCE