Peoples Financial Corporation reported a significant decline in financial performance for the third quarter of 2025, with net income falling to $643,000 compared to $15.4 million in the same period last year. This drop was largely attributed to a one-time tax benefit of $15.2 million recognized in the third quarter of 2024, which was not repeated in 2025. Total interest income decreased to $6.9 million from $7.8 million year-over-year, primarily due to lower yields on securities and overnight fed funds, despite an increase in interest income from loans.
The company's total assets decreased to $758.1 million as of September 30, 2025, down from $831.8 million at the end of 2024. This decline was driven by a reduction in total deposits, which fell to $637.6 million from $720.7 million, largely due to the loss of several public fund accounts. The decrease in deposits led to a significant drop in cash and due from banks, which fell to $41.9 million from $107.7 million. However, gross loans increased to $252.7 million, up from $233.6 million, as new loans outpaced repayments and charge-offs.
In terms of operational metrics, the company reported a net provision for credit losses of $0 for the third quarter of 2025, compared to a negative provision of $48,000 in the same quarter of 2024. Nonaccrual loans increased to $793,000 from $418,000, indicating a need for continued focus on asset quality. The allowance for credit losses as a percentage of loans was 1.16% as of September 30, 2025, down from 1.28% at the end of 2024.
Peoples Financial Corporation continues to emphasize its strategic focus on maintaining a strong capital base and liquidity. The company’s community bank leverage ratio was reported at 15.19%, well above the regulatory minimum of 9%. Management is committed to addressing the challenges posed by fluctuating deposit levels and interest rates, particularly in light of recent Federal Reserve actions to adjust rates in response to economic conditions. Looking ahead, the company aims to enhance its operational efficiency and continue its focus on loan growth while managing credit risk effectively.
About PEOPLES FINANCIAL CORP /MS/
Peoples Financial Corporation is a bank holding company based in Biloxi, Mississippi, operating through its subsidiary, The Peoples Bank. It provides traditional banking services including loans, deposit accounts, asset management, and trust services primarily in Mississippi and surrounding states. The company emphasizes community banking, customer relationships, and regulatory compliance, offering competitive financial products and maintaining a network of branches and ATMs.
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