Exhibit 99.1

The Peoples Holding Company (AMEX: PHC)

P.O. Box 709

Tupelo, MS 38801-0709

Phone: (662) 680-1001

Fax: (662) 680-1234

www.phcfc.com

Press Release

For additional information, contact:

	Jim Gray
	Executive Vice President, Investor Relations & Planning Director
	(662) 680-1217
	Stuart Johnson
	Executive Vice President & Chief Financial Officer
	(662) 680-1472
Date:	August 18, 2004

The Peoples Holding Company Declares Dividend

         At the monthly meeting on Tuesday, August 17, 2004, the board of directors of The Peoples Holding Company (AMEX: PHC) approved the payment of a quarterly cash dividend of twenty-one cents ($0.21) per share to be paid October 1, 2004, to shareholders of record September 20, 2004. This dividend represents a one-cent increase per share compared to the first quarter of 2004.

        The Peoples Holding Company is the parent of The Peoples Bank & Trust Company, Mississippi's fourth largest commercial bank headquartered in the state, The Peoples Insurance Agency, Inc. and Renasant Bank of Germantown, Tennessee. PHC has assets in excess of $1.6 billion and operates 48 community bank, insurance and financial services offices in 29 cities in Mississippi and Tennessee.