Peoples Financial Corporation disclosed its fourth quarter financial results for 2024, marking a net income of $1,528,000, which represents a $195,000 decrease from the same period in 2023. The earnings per weighted average common share also saw a decline, dropping to $0.33 from $0.37 the previous year. This downturn was primarily attributed to a $300,000 rise in noninterest expenses, largely due to increased employee benefits costs, alongside a $63,000 decrease in total interest income and a $234,000 increase in interest expenses, driven by higher deposit account interest rates.
Despite the quarterly setbacks, the corporation celebrated its third-best annual earnings in history, with net income soaring to $21,703,000 in 2024 from $9,166,000 in 2023. This remarkable growth was significantly bolstered by a one-time discrete tax benefit of $15,194,000, resulting from the reversal of the valuation allowance on federal and state deferred tax assets.
In a strategic move, the board of directors approved a new stock repurchase program, allowing the company to buy back up to 40,000 shares or shares worth $750,000, effective immediately and lasting through December 31, 2025. This initiative replaces the previous 2024 repurchase plan, under which 44,220 shares were repurchased.
Total shareholders' equity experienced a substantial increase of $20,718,000, reaching $90,001,000 by the end of 2024. This growth was fueled by positive pre-tax earnings, a reduction in unrealized securities losses, and the aforementioned tax asset valuation allowance reversal. The corporation maintained a robust leverage ratio of 13.95% and continued to offer a wide array of banking services across the Mississippi Gulf Coast.
Under the leadership of Chairman and CEO Chevis C. Swetman, Peoples Financial Corporation remains steadfast in its commitment to asset quality and economic vigilance. With total assets amounting to $832 million and a network of 18 bank facilities, the corporation exemplifies financial resilience amidst economic challenges.
