Peoples Financial Reports Strong Annual Growth Despite Q4 Dip, Launches New Stock Buyback

Peoples Financial Corporation (OTCQX: PFBX) reported a substantial increase in annual earnings for 2024, with net income rising to $21.7 million from $9.2 million in 2023, despite a fourth-quarter decline in profits. The dramatic annual increase was primarily attributed to a one-time $15.2 million tax benefit from the reversal of federal and state deferred tax assets.

The Mississippi-based bank's fourth-quarter earnings decreased to $1.53 million from $1.72 million in the same period last year, primarily due to rising operational costs and increased interest expenses on deposit accounts. The earnings per share for Q4 2024 were $0.33, down from $0.37 in Q4 2023.

In a significant move showing confidence in its financial position, the company's board approved a new stock repurchase program for 2025, authorizing the buyback of up to 40,000 shares or $750,000 in aggregate value, whichever is less. This program replaces the 2024 plan, under which the company repurchased 44,220 shares.

The bank's total shareholders' equity increased significantly by $20.7 million to $90 million, reflecting both the tax benefit and strong operational performance. The bank maintains a robust leverage ratio of 13.95%, well above regulatory requirements, indicating strong capitalization despite market challenges.

These results come amid a challenging interest rate environment, with the bank experiencing increased costs for attracting and retaining deposits. However, total deposits grew by $32.2 million to $720.7 million, demonstrating continued customer confidence in the institution. The bank's ability to maintain growth while managing interest rate pressures suggests resilience in its core business model and effective risk management strategies.