PFBX · Peoples Financial Corporation

Peoples Financial Corporation delivered improved first quarter 2026 results, with net income rising $136,000 to $1.446 million and EPS advancing to $0.31 from $0.28 in the prior year period. The uptick was primarily fueled by net interest income expansion of $99,000 to $5.767 million, reflecting a $52,000 increase in total interest income to $7.611 million from higher loan interest and fees, coupled with a $47,000 reduction in interest expense to $1.844 million due to lower deposit rates. Non-interest income edged up to $1.781 million from $1.703 million, while non-interest expense held steady at $5.708 million. Provision for credit losses remained minimal at $(8,000). Key performance metrics strengthened, with return on average assets climbing 0.15% to 0.77%, net interest margin expanding to 3.12% from 2.98%, and efficiency ratio improving to 76% from 77%. Balance sheet growth was evident as total deposits surged $61.8 million to $666.2 million from December 31, 2025, driven by seasonal public fund tax inflows, supporting total assets of $788.3 million. Shareholders’ equity grew $728,000 to $101.4 million, bolstered by earnings despite wider unrealized losses on available-for-sale securities at $29.6 million, attributed to higher interest rates without credit impairment. The Bank’s leverage ratio stayed robust at 14.15%, unaffected by an opt-out election on unrealized losses. Asset quality remains a focus, with CEO Chevis C. Swetman emphasizing vigilance amid economic and rate conditions, low nonaccrual loans at $517,000, and allowance for credit losses on loans at 1.15% of loans.