Peoples Financial Corporation Reports Significant Increase in Net Income for Fiscal Year 2024

Peoples Financial Corporation, a one-bank holding company based in Biloxi, Mississippi, reported a significant increase in its financial performance for the fiscal year ending December 31, 2024. The company achieved a net income of $21.7 million, a substantial rise from $9.2 million in 2023, driven by a reversal of a valuation allowance on deferred tax assets and an increase in total interest income. Total interest income rose to $33.4 million, up from $32.9 million in the previous year, while total interest expense increased to $9.6 million from $6.2 million, reflecting the impact of rising interest rates on the company's borrowing costs.

In terms of operational changes, the company saw a decrease in its loan portfolio, which fell to $233.6 million from $238.3 million in 2023. This decline was attributed to principal payments and charge-offs outpacing new loan originations. However, total deposits increased by $32.2 million, reaching $709.3 million, primarily due to inflows from the asset management and trust department. The bank's employee count remained stable at 134, with 131 full-time employees and 3 part-time employees.

Strategically, Peoples Financial Corporation has focused on enhancing its asset management and trust services, which contributed to the increase in non-interest income, totaling $4.2 million in 2024, compared to $4.1 million in 2023. The company also adopted the Current Expected Credit Loss (CECL) methodology for estimating credit losses, which has influenced its allowance for credit losses, now totaling $2.98 million. The bank's nonaccrual loans increased to $418,000 from $213,000, indicating a need for ongoing monitoring of asset quality.

Looking ahead, the company remains optimistic about its growth prospects, emphasizing its commitment to internal growth through new branch establishments and strong customer relationships. The management anticipates that the recent decrease in interest rates will positively impact its net interest margin in the upcoming fiscal year. The bank's capital ratios remain strong, with a community bank leverage ratio of 13.95%, well above the required 9%, positioning the company favorably for future opportunities in the competitive banking landscape.