Peoples Financial Corporation reported a robust financial performance for 2024, with annual net income surging to $21.7 million, compared to $9.2 million in 2023. The substantial increase was primarily attributed to a one-time discrete tax benefit of $15.2 million from reversing a valuation allowance on federal and state deferred tax assets.
The bank's fourth-quarter results showed a slight decline in net income, decreasing from $1.7 million in 2023 to $1.5 million in 2024. This reduction was mainly due to increased noninterest expenses, particularly in employee benefits, and higher interest expenses on deposit accounts.
In a strategic move, the company's board of directors approved a new stock repurchase program effective through December 31, 2025. The program allows the company to repurchase up to 40,000 shares or shares with an aggregate repurchase price of $750,000, replacing the previous 2024 plan.
The bank's total shareholders' equity increased significantly by $20.7 million to $90 million, driven by positive pre-tax earnings, decreased unrealized losses on securities, and the tax asset valuation reversal. Total deposits also grew by $32.2 million to $720.7 million.
Chevis C. Swetman, chairman and CEO, emphasized the bank's commitment to maintaining high-quality assets and monitoring economic conditions. The bank's leverage ratio remained strong at 13.95%, and it continues to maintain a well-capitalized balance sheet with robust capital and liquidity.
Despite challenges from increased interest rates, Peoples Financial Corporation demonstrated financial resilience and strategic financial management in 2024.
