8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8 - K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) April 21, 2010

PEOPLES FINANCIAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Mississippi

(State or Other Jurisdiction of Incorporation)

01-12103	64-0709834
(Commission File Number)	(IRS Employer Identification No.)
152 Lameuse Street Biloxi, MS	39530
(Address of Principal Executive Offices)	(Zip Code)

(228) 435-5511

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Addresss, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously Satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):

     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230. 425)

     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)

     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))

     Pre-commencement communications pursuant to Rule 13e-4( c) under the Exchange Act (17 CFR 240.13e-4( c))

Item 2.02. Results of Operations and Financial Condition

On April 21, 2010 Peoples Financial Corporation issued a press release announcing its earnings for the first quarter of 2010.

Item 9.01. Financial Statements and Exhibits.

     ( c) Exhibits

99.1 Press Release issued by Peoples Financial Corporation dated April 21, 2010, headed “Peoples Financial Corporation Reports First Quarter Profit Totaled $871,000.”

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 21, 2010

PEOPLES FINANCIAL CORPORATION
By:	/s/ Chevis C. Swetman
	Chevis C. Swetman
	Chairman, President and CEO

Exhibit 99.1: Peoples Financial Corporation Press Release Dated April 21, 2010

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

For more information, contact:
Investor Relations
228-435-8208
investorrelations@thepeoples.com

PEOPLES FINANCIAL CORPORATION REPORTS
FIRST QUARTER PROFIT TOTALED $871,000

BILOXI, MS (April 21, 2010)—Peoples Financial Corporation (NASDAQ Capital Market: PFBX), parent of The Peoples Bank, earned $871,000 in the first quarter of 2010, announced Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.

Earnings in the first quarter of 2010 increased 155% over fourth quarter of 2009 and declined 48% from first quarter of the previous year.

Earnings per share totaled $.17 per weighted average share for the first quarter of 2010, down from $.33 per share for the same period last year. Earnings per share figures are based on weighted average shares outstanding of 5,151,697 for the three months ended March 31, 2010 and 5,221,950 for the three months ended March 31, 2009.

“Our earnings were again impacted by provisions for loan losses,” said Swetman. “However, net interest income increased 11.4% and net interest margin rose 33 basis points or 10% over the previous quarter. The size and extent of our loan loss reserves will remain the most important single factor in our earnings for as long as the next two years,” he added.

Provision for loan losses totaled $1,150,000 for the most recent quarter, compared to $1,500,000 in the last quarter of 2009 and $5,225,000 for all of last year.

Loan volume decreased 5.8% from first quarter of 2009, reflecting a lower level of demand. “We continue our lending program, because we have the funds,” said Swetman, “but demand remains sluggish. Until businesses can be more certain about their prospects for the future, demand will be slow”, he said.

Founded in 1896, with $866 million in assets as of March 31, 2010, The Peoples Bank operates 16 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties. In addition to a comprehensive range of retail and commercial banking services, the bank also operates a trust and investment services department that has provided customers with financial, estate and retirement planning services since 1936. The bank also operates a mortgage loan department providing residential loans for primary, secondary and multi-family homes up to four units.

The Peoples Bank is a wholly-owned subsidiary of Peoples Financial Corporation, listed on the NASDAQ Capital Market under the symbol PFBX. Additional information is available on the Internet at www.thepeoples.com.

This news release contains forward-looking statements and reflects industry conditions, company

performance and financial results. These forward-looking statements are subject to a number of risk factors and uncertainties which could cause the Company’s actual results and experience to differ from the anticipated results and expectation expressed in such forward-looking statements.

PEOPLES FINANCIAL CORPORATION
(In thousands, except per share figures) (Unaudited)

EARNINGS SUMMARY

Three Months Ended March 31,	2010		2009
Net interest income	$	6,993	$	6,274
Provision for loan losses		1,150		348
Non-interest income		2,133		2,622
Non-interest expense		6,929		6,555
Income taxes		175		290
Net income		871		1,703
Earnings per share		.17		.33

TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES

Three Months Ended March 31,	2010			2009
Allowance for loan losses, beginning of period	$	7,828		$	11,114
Recoveries		55			105
Charge-offs		(755	)		(194	)
Provision for loan losses		1,150			348
Allowance for loan losses, end of period	$	8,278		$	11,373

PERFORMANCE RATIOS

March 31,	2010			2009
Return on average assets		.40	%		.74	%
Return on average equity		3.33	%		6.41	%
Net interest margin		3.69	%		3.15	%
Efficiency ratio		87	%		77	%

BALANCE SHEET SUMMARY

March 31,	2010		2009
Total assets	$	865,933	$	910,417
Loans		448,874		476,522
Securities		336,818		353,202
Other real estate (ORE)		1,751		812
Total deposits		526,967		546,183
Total federal funds purchased		154,392		227,909
Shareholders’ equity		105,698		105,507
Book value per share		20.52		20.41
Weighted average shares		5,151,697		5,221,950

PERIOD END DATA

March 31,	2010			2009
Allowance for loan losses as a percentage of loans		1.84	%		2.39	%
Loans past due 90 days and still accruing		10,732			6,733
Nonaccrual loans		21,432			17,211
Primary capital		13.02	%		12.78	%