Peoples Financial Corporation reported a decrease in net income for the first quarter of 2025, with earnings falling to $1.31 million from $2.42 million in the same period last year. The company's earnings per weighted average common share dropped from $0.52 to $0.28.
The primary driver of the reduced financial performance was a $1.025 million decrease in net interest income, which fell from $6.693 million in Q1 2024 to $5.668 million in Q1 2025. Total interest income declined by $1.37 million, attributed to lower interest income on securities resulting from reduced balances and yields.
Chairman and CEO Chevis C. Swetman emphasized the bank's commitment to maintaining high-quality assets and monitoring economic conditions. Despite the earnings decline, the company demonstrated financial resilience with total shareholders' equity increasing by $4.454 million to $94.455 million.
The bank's performance metrics reflected the challenging financial environment. Return on average assets decreased from 1.12% to 0.62%, and the efficiency ratio increased from 64% to 77%. Total deposits grew by $31.261 million to $751.991 million, largely due to public fund tax deposits.
Notably, the bank maintained a strong leverage ratio of 13.32% and reported unrealized losses on available-for-sale securities of $34.862 million, primarily attributed to higher interest rates. The company does not anticipate realizing these losses in the near future.
With $867 million in total assets and 18 bank facilities along the Mississippi Gulf Coast, Peoples Financial Corporation continues to provide comprehensive banking and trust services while navigating a complex financial landscape.
