8-K

UNITED STATES

SECURITES 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) July 16, 2007
PEOPLES FINANCIAL CORPORATION (Exact Name of Registrant as Specified in its Charter)
Mississippi (State or Other Jurisdiction of Incorporation)
0-30050 (Commission File Number)		64-0709834 (IRS Employer Identification No.)
152 Lameuse StreetBiloxi, MS (Address of Principal Executive Offices)		39530 (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 July 16, 2007, Peoples Financial Corporation issued a press release announcing its earnings for the first half of 2007.

Item 9.01. Financial Statements and Exhibits.

( c) Exhibits

99.1 Press Release issued by Peoples Financial Corporation dated July 16, 2007, headed “Peoples Financial Corporation Reports $4.7 Million Net Income for First Half of 2007.”

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: July 16, 2007

PEOPLES FINANCIAL CORPORATION

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

EX-99

Exhibit 99.1

For more information, contact:

Investor Relations

228-435-8208

investorrelations@thepeoples.com

PEOPLES FINANCIAL CORPORATION REPORTS

 $4.7 MILLION NET INCOME FOR FIRST HALF 2007

BILOXI, MS (July 16, 2007)—Peoples Financial Corporation (NASDAQ Capital Market: PFBX), parent of The Peoples Bank, reported first half 2007 earnings of $4,702,000, announced Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.

Earnings for the first six months of the current year were 7.6% less than the same period in 2006. The lower earnings were primarily the result of a loss of $619,000 ($409,000, net of taxes) from the sale of securities, said Swetman. Proceeds from the sale of securities funded liquidity needs during the quarter, he said.

“Our operating results continue to improve despite challenging conditions here on the Mississippi Gulf Coast due to the constrictions in the rebuilding effort,” said Swetman. “Our loan volume showed a 7.2% increase for the first half of the year, which is less than what we had projected at the beginning of the year but still healthy in the face of  the twin constraints of slower than expected recovery funding and insurance increases,” he said.

Earnings per share for the first half of 2007 totaled $.85 per average weighted share, compared to $.92 per share in the period the year before. Earnings per share figures are based on weighted average shares outstanding of 5,541,765 and 5,548,403 on June 30, 2007 and June 30, 2006, respectively.

“Our Board of Directors remains confident that our earnings will continue at these levels, and in June they voted to raise the semi-annual dividend to an annualized rate of $.50 a share, the eighth time the dividend has been increased since 2003,” said Swetman.

“In addition, we are excited to announce the formation of a Mortgage Loan Department to participate directly in the wave of residential financing we foresee in the very near future. Our new Mortgage Loan Department will give us the capability of seamless service, from land acquisition to construction financing to permanent mortgage loans on residential properties up to four-family units,” said Swetman.

Founded in 1896, with $991 million in assets as of June 30, 2007, 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 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
(Unaudited)
(In thousands, except per share figures)
EARNINGS SUMMARY
Three Months Ended June 30,	2007			2006
Net interest income	$	7,565		$	7,505
Provision for loan losses		51			42
Non-interest income		1,962			2,148
Non-interest expense		6,280			5,635
Income taxes		1,210			1,420
Net income		1,986			2,556
Earnings per share		.36			.46
Six Months Ended June 30,	2007			2006
Net interest income	$	14,994		$	15,012
Provision for loan losses		100			77
Non-interest income		4,612			3,818
Non-interest expense		12,306			10,954
Income taxes		2,498			2,710
Net income		4,702			5,089
Earnings per share		.85			.92
PERFORMANCE RATIOS (annualized)
June 30,	2007			2006
Return on average assets		.95	%		1.17	%
Return on average equity		9.06	%		11.46	%
Net interest margin		3.41	%		3.94	%
Efficiency ratio		63	%		58	%
BALANCE SHEET SUMMARY
Balance at June 30,	2007			2006
Total assets	$	990,620		$	878,582
Loans		429,853			401,010
Securities		428,601			382,819
Total deposits		668,708			622,992
Total federal funds purchased		197,143			148,593
Shareholders' equity		98,465			90,220
Book value per share		17.85			16.26
Weighted average shares		5,541,765			5,548,403
PERIOD END DATA
Allowance for loan losses as a
percentage of loans		2.53	%		2.75	%
Loans past due 90 days and
still accruing		1,488			5,284
Nonaccrual loans		3,803			451
Primary capital		11.06	%		11.60	%