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) January 29, 2015
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 Address, 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 January 29, 2015, Peoples Financial Corporation issued a press release announcing its results for 2014.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits |
| 99.1 | Press Release issued by Peoples Financial Corporation dated January 29, 2015, “Peoples Financial Corporation Reports Fourth Quarter and Year-End Results.” |
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: January 29, 2015
| PEOPLES FINANCIAL CORPORATION | ||
| By: | /s/ Chevis C. Swetman | |
| Chevis C. Swetman | ||
| Chairman, President and CEO | ||
Exhibit 99.1: Peoples Financial Corporation Press Release Dated January 29, 2015
FOR IMMEDIATE RELEASE
For more information, contact:
Paul D. Guichet, Vice President
228-435-8761
pguichet@thepeoples.com
PEOPLES FINANCIAL CORPORATION REPORTS FOURTH QUARTER AND YEAR-END RESULTS
BILOXI, MS (January 29, 2015)—Peoples Financial Corporation (NASDAQ Capital Market: PFBX), parent of The Peoples Bank, reported a net loss of $9,119,000 for the quarter ended December 31, 2014, and a net loss of $10,004,000 for the full year, due to charges related to non-performing assets and a valuation allowance recorded on a deferred tax asset, announced Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.
Updated valuations on real estate underlying certain specific loans required an additional $2,789,000 in loan loss provisions for the fourth quarter of 2014, increasing the total loss provision to $7,404,000 for the year ended December 31, 2014. Write downs in the value of existing other real estate owned properties totaled $1,261,000 for 2014 compared to $670,000 for 2013.
The company has historically carried a considerable amount of deferred tax assets resulting from non-deductible provisions for loan losses, deferred compensation expenses and tax credits. In consideration of the company’s recent losses, management has evaluated deferred tax assets and established a valuation allowance of $7,600,000, a non-cash charge to earnings, during the fourth quarter of 2014. The valuation allowance was necessary due to losses from operations during recent years. “We have carried a large deferred tax asset position for several years,” said Swetman. “As we resolve our non-performing assets and return to sustained profitability, we expect to reverse the valuation allowance,” he added.
Swetman further commented, “Since 1896, the company has been one of the strongest capitalized banks in the country. At year-end 2014 we continued our long tradition of financial strength as evidenced by our primary capital ratio of 14.38%, far exceeding the minimum regulatory requirement of 8.00%.”
Loss per weighted average common share for the fourth quarter of 2014 was $1.78 compared to $.17 in the same period of 2013. For the full year, loss per weighted average common share totaled $1.95 per share in 2014, compared to $.10 in 2013. Net losses per share figures are based on weighted average common shares outstanding of 5,123,186 and 5,128,889 for the years ended December 31, 2014 and 2013, respectively.
The holding company’s primary capital ratio was 14.38% at December 31, 2014, compared to 13.64% at December 31, 2013. The company’s book value per share was $18.53 and $19.35 at the end of 2014 and 2013, respectively.
Founded in 1896, with $669 million in assets as of December 31, 2014, The Peoples Bank operates 18 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties. In addition to offering 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.
Peoples Financial Corporation is 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 weighted average shares and per share figures)
EARNINGS SUMMARY
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net interest income |
$ | 4,860 | $ | 7,279 | $ | 20,715 | $ | 23,509 | ||||||||
| Provision for loan losses |
2,789 | 5,042 | 7,404 | 9,661 | ||||||||||||
| Non-interest income |
2,043 | 2,229 | 8,619 | 9,067 | ||||||||||||
| Non-interest expense |
6,929 | 6,614 | 27,208 | 25,654 | ||||||||||||
| Income taxes |
6,304 | (1,265 | ) | 4,726 | (2,201 | ) | ||||||||||
| Net loss |
(9,119 | ) | (883 | ) | (10,004 | ) | (538 | ) | ||||||||
| Loss per share |
(1.78 | ) | (.17 | ) | (1.95 | ) | (.10 | ) | ||||||||
TRANSACTIONS IN THE ALLOWANCE FOR LOAN LOSSES
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Allowance for loan losses, beginning of period |
$ | 11,010 | $ | 11,696 | $ | 8,934 | $ | 8,857 | ||||||||
| Recoveries |
105 | 80 | 598 | 538 | ||||||||||||
| Charge-offs |
(4,698 | ) | (7,884 | ) | (7,730 | ) | (10,122 | ) | ||||||||
| Provision for loan losses |
2,789 | 5,042 | 7,404 | 9,661 | ||||||||||||
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| Allowance for loan losses, end of period |
$ | 9,206 | $ | 8,934 | $ | 9,206 | $ | 8,934 | ||||||||
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ASSET QUALITY
| December 31, | ||||||||
| 2014 | 2013 | |||||||
| Allowance for loan losses as a percentage of loans |
2.54 | % | 2.38 | % | ||||
| Loans past due 90 days and still accruing |
$ | 763 | $ | 651 | ||||
| Nonaccrual loans |
33,298 | 26,171 | ||||||
PERFORMANCE RATIOS
| December 31, | ||||||||
| 2014 | 2013 | |||||||
| Return on average assets |
(1.38 | %) | (.07 | %) | ||||
| Return on average equity |
(10.31 | %) | (.51 | %) | ||||
| Net interest margin |
3.32 | % | 3.34 | % | ||||
| Efficiency ratio |
124 | % | 112 | % | ||||
| Primary capital |
14.38 | % | 13.64 | % | ||||
BALANCE SHEET SUMMARY
| December 31, | ||||||||
| 2014 | 2013 | |||||||
| Total assets |
$ | 668,895 | $ | 762,264 | ||||
| Loans |
362,407 | 375,349 | ||||||
| Securities |
238,372 | 293,678 | ||||||
| Other real estate (ORE) |
7,646 | 9,630 | ||||||
| Total deposits |
392,714 | 425,558 | ||||||
| Total federal funds purchased |
124,206 | 139,639 | ||||||
| Shareholders’ equity |
94,951 | 99,147 | ||||||
| Book value per share |
18.53 | 19.35 | ||||||
| Weighted average shares |
5,123,186 | 5,128,889 | ||||||