Peoples Financial Corporation Second Quarter Earnings Increase 4.2% Over Previous Period

For the six months ended June 30, 2008, the company's net income totaled $4,267,000, down 9.2% from the same period last year.

Earnings per share for the second quarter of 2008 were $.41 per average weighted share, compared to $.39 per share in the first quarter of 2008, an increase of 5.1%, based on weighted average shares outstanding of 5,361,327 and 5,396,898 for the quarters ended June 30, 2008 and March 31, 2008, respectively.

Earnings per share for the six months ended June 30, 2008 were $.79 per share, compared to $.85 per share for the first half of 2007. Earnings per share figures for the six-month periods are based on weighted average shares outstanding of 5,379,112 and 5,541,765 on June 30, 2008 and June 30, 2007, respectively.

"Our operating earnings for the quarter and the first half of this year have remained steady in the face of the most challenging financial environment I have seen in my career," said Swetman.

"Although our bank has not suffered the severe asset write downs that have precipitated the unparalleled collapse in share prices of so many regional banks, we nevertheless are carefully monitoring our credit quality. With a primary capital base of 12.47%, well in excess of minimum regulatory requirements, we enjoy the capacity to selectively pursue high-quality business, " he added.

"Our underlying operations remain solid, as our loan volume increased 10% for the first half of 2008 compared to the same period last year, and net interest margins are experiencing slow but steady improvement," said Swetman. "Additionally, our Board of Directors last month approved the tenth consecutive increase in our semi-annual common stock dividend, now at $.29 per share, demonstrating our collective confidence in the strength of our bank and the resilience of our local economy."

Founded in 1896, with $897 million in assets as of June 30, 2008, The Peoples Bank operates 16 branches along the Mississippi Gulf Coast inHancock, Harrison,Jackson andStone counties. In addition to 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. The bank also formed a mortgage loan department in July, 2007, to provide residential loans for primary, secondary and multi-family homes up to four units.

The Peoples Bank is a wholly-owned subsidiary of Peoples Financial Corporation, listed on the NASDAQ Capital Market under the symbol PFBX. Additional information is available on the Internet at http://www.thepeoples.com.

This news release contains forward-looking statements and reflects industry conditions, company performance and financial results. 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 from the anticipated results and expectation expressed in such forward-looking statements.

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

    EARNINGS SUMMARY

    Three Months Ended June 30,                         2008             2007

    Net interest income                               $7,083           $7,565
    Provision for loan losses                             48               51
    Non-interest income                                2,631            1,962
    Non-interest expense                               6,404            6,280
    Income taxes                                       1,084            1,210
    Net income                                         2,178            1,986
    Earnings per share                                   .41              .36

    Six Months Ended June 30,                           2008             2007

    Net interest income                              $14,285          $14,994
    Provision for loan losses                             94              100
    Non-interest income                                5,168            4,612
    Non-interest expense                              12,969           12,306
    Income taxes                                       2,123            2,498
    Net income                                         4,267            4,702
    Earnings per share                                   .79              .85


    PERFORMANCE RATIOS (annualized)

    June 30,                                            2008             2007

    Return on average assets                            .92%             .95%
    Return on average equity                           7.40%            9.06%
    Net interest margin                                3.56%            3.41%
    Efficiency ratio                                     67%              63%


    BALANCE SHEET SUMMARY

    Balance at June 30,                                 2008             2007

    Total assets                                    $896,537         $990,620
    Loans                                            472,965          429,853
    Securities                                       335,237          428,601
    Total deposits                                   564,622          668,708
    Total federal funds purchased                    205,356          197,143
    Shareholders' equity                             105,527           98,465
    Book value per share                               19.76            17.85
    Weighted average shares                        5,379,112        5,541,765


    PERIOD END DATA

    Allowance for loan losses as a
     percentage of loans                               1.97%            2.53%
    Loans past due 90 days and still accruing            957            1,488
    Nonaccrual loans                                   4,869            3,803
    Primary capital                                   12.47%           11.06%

SOURCE Peoples Financial Corporation

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Copyright © 2008, NewsBlaze, Daily News

Tags: ,FIN,ERN,OTC,MI-PFBX-Q2-08-results

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