Peoples Financial Corporation, headquartered in Biloxi, Mississippi, reported significant financial performance changes for the three and nine months ended September 30, 2024, compared to the same periods in 2023.

For the third quarter of 2024, net income surged to $15,431,000, a substantial increase from $1,910,000 in Q3 2023. This remarkable growth was primarily driven by a one-time discrete reduction in income tax expense of $15,194,000 due to the reversal of a valuation allowance on deferred tax assets. Pre-tax income, however, decreased to $1,334,000 from $2,238,000 in the prior year. Total interest income slightly declined to $7,830,000 from $7,839,000, while total interest expense rose significantly to $2,551,000 from $1,490,000, reflecting increased borrowing costs.

For the nine-month period, net income also increased to $20,175,000 from $7,443,000 in 2023. Total interest income for the nine months rose to $25,454,000, up from $24,926,000, while total interest expense increased to $7,579,000 from $4,325,000. The net interest income for the first nine months decreased to $17,875,000 from $20,601,000, indicating pressure on margins despite higher interest income.

The company’s total non-interest income for Q3 2024 was $1,750,000, a slight increase from $1,745,000 in Q3 2023. Non-interest expenses decreased to $5,743,000 from $5,834,000, primarily due to reduced salary and employee benefits.

Peoples Financial's loan portfolio as of September 30, 2024, totaled $239,259,000, with real estate residential loans comprising $81,447,000. The allowance for credit losses on loans and leases decreased to $3,091,000 from $3,201,000 year-over-year. Nonaccrual loans increased to $427,000 from $213,000 at the end of 2023, indicating some deterioration in loan quality.

The company adopted the Current Expected Credit Loss (CECL) methodology effective January 1, 2023, which has influenced its credit loss estimates. The total comprehensive income for Q3 2024 was reported at $22,193,000, compared to a loss of $(5,343,000) in Q3 2023.

In terms of liquidity, cash and due from banks increased by $19,459,000, while total deposits decreased by $22,404,000, attributed to competitive pressures on public fund deposits. The company’s leverage ratio improved to 13.48% as of September 30, 2024, up from 12.59% at the end of 2023, indicating a strong capital position.

Overall, Peoples Financial Corporation's financial results reflect a complex interplay of increased income, rising expenses, and strategic adjustments in response to market conditions.