Peoples Financial Corp. (PFBX, Financial) filed Quarterly Report for the period ended 2009-09-30.
Peoples Financial Corp.'s wholly-owned subsidiary The Peoples Bank offers a variety of loan and deposit services to individuals and small to middle market businesses within its trade area. Deposit services include interest bearing and non-interest bearing checking accounts savings accounts certificates of deposit and IRA accounts. The Bank also offers a non-deposit funds management account which is not insured by the FDIC. Loan services include business real estate construction personal and installment loans with an emphasis on commercial lending. Peoples Financial Corp. has a market cap of $85.9 million; its shares were traded at around $16.68 with a P/E ratio of 18.5 and P/S ratio of 1.7. The dividend yield of Peoples Financial Corp. stocks is 2.5%.
Net income for the first nine months 2009 was $2,877,784 compared with $3,213,754 for the first nine months of 2008. Earnings for the nine months ended September 30, 2009 and 2008 were impacted by the provision for loan losses, the impairment loss of $2,964,000 recognized in the third quarter of 2008 and increased FDIC insurance assessments in 2009. The provision for the allowance for losses on loans was $3,725,000 in 2009 as compared with $2,095,000 in 2008. FDIC assessments for the nine months ended September 30, 2009 were $729,968 more than in the nine months ended September 30, 2008.
Monitoring asset quality and addressing potential losses in our loan portfolio continues to be emphasized during these tough economic times. The Company charged-off $7,066,761 in loans during the first nine months of 2009 as compared with only $822,441 for the same period in 2008. Approximately 64% of the charge-offs in 2009 related to three credit relationships in the residential development industry. Nonaccrual loans increased to $25,256,847 at September 30, 2009 as compared with $15,553,447 at December 31, 2008. This large increase is primarily attributable to the placement of one loan in the amount of $11,000,000 on nonaccrual at September 30, 2009. This credit is a performing loan, but was classified as nonaccrual by the banking regulators in their annual shared national credit review in the third quarter of 2009.
Average interest bearing liabilities increased approximately $19,976,000, or 3%, from approximately $670,219,000 for the first nine months of 2008 to approximately $690,195,000 for the first nine months of 2009. The average rate paid on interest bearing liabilities decreased 127 basis points, from 2.42% for the first nine months of 2008 to 1.15% for the first nine months of 2009.
With the recent economic downturn and its impact in the housing market during the last year, the Company has closely evaluated its residential development loan portfolio. Potential losses on these loans have been estimated based on the best available information. The Company has charged-off $7,067,238 during the first three quarters of 2009, $4,548,423 of which related to residential developments. Based on its on-going analysis, the Company recorded a provision for loan losses of $1,875,000 during the third quarter of 2009 and $3,725,000 for the nine months ended September 30, 2009 in order to adequately provide for further potential losses. Of the allowance for loan losses of $8,106,588 at September 30, 2009, approximately 43%, or $3,501,647, related to three credit relationships.
Total deposits increased $31,091,673 at September 30, 2009, as compared with December 31, 2008. Fluctuations among the different types of deposits represent recurring activity for the Company. During the first nine months of 2009, time deposits of $100,000 or more have increased by $56,147,106 as a result of the acquisition of $55,342,000 in brokered deposits. In October 2009, $20,000,000 of these brokered deposits matured.
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Peoples Financial Corp.'s wholly-owned subsidiary The Peoples Bank offers a variety of loan and deposit services to individuals and small to middle market businesses within its trade area. Deposit services include interest bearing and non-interest bearing checking accounts savings accounts certificates of deposit and IRA accounts. The Bank also offers a non-deposit funds management account which is not insured by the FDIC. Loan services include business real estate construction personal and installment loans with an emphasis on commercial lending. Peoples Financial Corp. has a market cap of $85.9 million; its shares were traded at around $16.68 with a P/E ratio of 18.5 and P/S ratio of 1.7. The dividend yield of Peoples Financial Corp. stocks is 2.5%.
Highlight of Business Operations:
Net income for the third quarter of 2009 was $974,110 compared with a net loss of $1,053,644 for the third quarter of 2008, an increase in earnings of $2,027,754. Earnings in the third quarter of 2009 included an increase in FDIC assessments of $200,264 over 2008s results. In the third quarter of 2008, the Company recorded a charge to earnings for the impairment of its investment in Federal Home Loan Mortgage Corporation (FHLMC) preferred stock of $2,964,000.Net income for the first nine months 2009 was $2,877,784 compared with $3,213,754 for the first nine months of 2008. Earnings for the nine months ended September 30, 2009 and 2008 were impacted by the provision for loan losses, the impairment loss of $2,964,000 recognized in the third quarter of 2008 and increased FDIC insurance assessments in 2009. The provision for the allowance for losses on loans was $3,725,000 in 2009 as compared with $2,095,000 in 2008. FDIC assessments for the nine months ended September 30, 2009 were $729,968 more than in the nine months ended September 30, 2008.
Monitoring asset quality and addressing potential losses in our loan portfolio continues to be emphasized during these tough economic times. The Company charged-off $7,066,761 in loans during the first nine months of 2009 as compared with only $822,441 for the same period in 2008. Approximately 64% of the charge-offs in 2009 related to three credit relationships in the residential development industry. Nonaccrual loans increased to $25,256,847 at September 30, 2009 as compared with $15,553,447 at December 31, 2008. This large increase is primarily attributable to the placement of one loan in the amount of $11,000,000 on nonaccrual at September 30, 2009. This credit is a performing loan, but was classified as nonaccrual by the banking regulators in their annual shared national credit review in the third quarter of 2009.
Average interest bearing liabilities increased approximately $19,976,000, or 3%, from approximately $670,219,000 for the first nine months of 2008 to approximately $690,195,000 for the first nine months of 2009. The average rate paid on interest bearing liabilities decreased 127 basis points, from 2.42% for the first nine months of 2008 to 1.15% for the first nine months of 2009.
With the recent economic downturn and its impact in the housing market during the last year, the Company has closely evaluated its residential development loan portfolio. Potential losses on these loans have been estimated based on the best available information. The Company has charged-off $7,067,238 during the first three quarters of 2009, $4,548,423 of which related to residential developments. Based on its on-going analysis, the Company recorded a provision for loan losses of $1,875,000 during the third quarter of 2009 and $3,725,000 for the nine months ended September 30, 2009 in order to adequately provide for further potential losses. Of the allowance for loan losses of $8,106,588 at September 30, 2009, approximately 43%, or $3,501,647, related to three credit relationships.
Total deposits increased $31,091,673 at September 30, 2009, as compared with December 31, 2008. Fluctuations among the different types of deposits represent recurring activity for the Company. During the first nine months of 2009, time deposits of $100,000 or more have increased by $56,147,106 as a result of the acquisition of $55,342,000 in brokered deposits. In October 2009, $20,000,000 of these brokered deposits matured.
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