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PF

PEOPLES FINANCIAL CORP /MS/ (PFBX)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 EPS was $0.28, down from $0.52 in Q1 2024 and $0.33 in Q4 2024; net income fell to $1.31M, driven by lower net interest income and margin compression .
  • Net interest income decreased to $5.668M versus $6.693M in Q1 2024; net interest margin compressed to 2.98% (from 3.24% YoY) and efficiency ratio deteriorated to 77% (from 64% YoY) .
  • Deposits rose $31.261M sequentially to $751.991M, largely due to seasonal public fund tax deposits; shareholders’ equity improved to $94.455M, aided by reduced unrealized AFS losses .
  • The company declared a regular cash dividend of $0.18 per share (payable June 13, 2025), reinforcing capital returns amid a challenging rate backdrop .
  • No Wall Street consensus EPS or revenue estimates were available to benchmark this quarter; investors’ focus is likely on NIM pressure, deposit seasonality, and AOCI improvement .

What Went Well and What Went Wrong

What Went Well

  • Deposit inflows and liquidity: Total deposits increased $31.261M QoQ to $751.991M, mainly from public fund tax deposits; management emphasized strong liquidity and well-capitalized balance sheet .
  • Equity and AOCI improvement: Shareholders’ equity rose $4.454M QoQ to $94.455M; unrealized AFS losses declined from $38.006M to $34.862M, improving accumulated other comprehensive income .
  • Capital strength: Leverage ratio remained strong at 13.32% despite AFS opt-out treatment; management reiterated commitment to high-quality assets and vigilance on rates (“The Bank’s leadership remains committed to maintaining high-quality assets…”) .

What Went Wrong

  • Margin and earnings pressure: Net interest margin fell to 2.98% (3.24% YoY); efficiency ratio rose to 77% (64% YoY), reflecting revenue pressure and operating cost dynamics .
  • Net interest income decline: Net interest income decreased by $1.025M YoY to $5.668M, with lower securities balances and yields the primary driver of the shortfall .
  • EPS down sharply: EPS dropped to $0.28 from $0.52 YoY and $0.33 QoQ as lower net interest income outweighed reduced interest expense and modest noninterest income declines .

Financial Results

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Net Interest Income ($USD Thousands)6,693 5,279 5,576 5,668
Non-Interest Income ($USD Thousands)1,743 1,750 1,760 1,703
Non-Interest Expense ($USD Thousands)5,390 5,743 5,550 5,691
Net Income ($USD Thousands)2,415 15,431 1,528 1,310
EPS ($USD)0.52 3.31 0.33 0.28
Net Interest Margin (%)3.24% 3.00% 3.05% 2.98%
Efficiency Ratio (%)64% 72% 73% 77%

Note: Q3 2024 included a discrete tax benefit of $15.194M from reversal of valuation allowance, materially inflating net income and EPS .

KPIs and Balance Sheet

KPIQ1 2024Q3 2024Q4 2024Q1 2025
Total Assets ($USD Thousands)932,602 814,152 831,849 866,613
Securities ($USD Thousands)541,553 475,513 431,804 482,810
Loans, net ($USD Thousands)233,187 236,168 230,594 228,676
Total Deposits ($USD Thousands)811,499 666,086 720,730 751,991
Shareholders’ Equity ($USD Thousands)70,663 96,393 90,001 94,455
Book Value/Share ($USD)15.16 20.68 19.49 20.46
Leverage Ratio (%)11.48% 13.48% 13.95% 13.32%
Nonaccrual Loans ($USD Thousands)352 427 418 441
Loans ≥90 Days Past Due & Accruing ($USD Thousands)21 0 0 61
Allowance for Credit Losses as % of Loans (%)1.31% 1.29% 1.28% 1.28%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash Dividend per ShareSemi-annual (June 2025)Regular $0.18; last paid Nov 2024 also had $0.08 special (total $0.26) Regular $0.18 payable Jun 13, 2025; record date Jun 11, 2025 Maintained regular dividend; no special
Operating/Financial Guidance2025Not provided in releasesNot providedMaintained “no formal guidance” posture

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was filed; themes below reflect press release disclosures.

TopicPrevious Mentions (Q4 2024 and Q3 2024)Current Period (Q1 2025)Trend
Asset QualityManagement emphasized vigilance; nonaccruals at $418K; allowance 1.28% . Q3: strong focus; nonaccruals $427K; allowance 1.29% .Continued focus on high-quality assets; nonaccruals $441K; allowance 1.28% .Stable asset quality emphasis; slight uptick in nonaccruals .
Rates & AOCIQ4: Unrealized AFS losses $38.006M; opt-out keeps regulatory capital unaffected . Q3: material AOCI improvement; losses $32.106M .Unrealized AFS losses decreased to $34.862M; equity benefited .AOCI improving vs YE; capital insulated via opt-out .
Deposits/Public FundsQ3: deposits fell to $666.086M amid rate competition and seasonality . Q4: deposits rebounded to $720.730M on tax deposits .Deposits up to $751.991M, driven by public fund tax deposits .Seasonal inflows continued; watch gradual outflows over year .
Capital/Leverage RatioQ3 leverage 13.48% . Q4 leverage 13.95% .Q1 leverage 13.32%; remains strong .Strong but slightly lower QoQ .
Taxes/Valuation AllowanceQ3: $15.194M reversal lifted earnings; DTA recognized . Q4: annual impact detailed; ROA with/without discrete item .No discrete tax items this quarter; normalized tax expense $375K .Normalization post-Q3 benefit .

Management Commentary

  • “The Bank’s leadership remains committed to maintaining high-quality assets. We are closely monitoring economic conditions and staying vigilant for any potential changes in interest rates.” — Chevis C. Swetman, Chairman, President and CEO .
  • “We are pleased with our continuing financial improvement, to announce a regular dividend to our shareholders… We remain dedicated to returning earnings to our shareholders.” — Chevis C. Swetman .

Q&A Highlights

No Q1 2025 earnings call transcript was filed; Q&A highlights unavailable in company documents for the period.

Estimates Context

MetricPeriodS&P Global ConsensusActualBeat/Miss
EPSQ1 2025Unavailable$0.28 N/A
RevenueQ1 2025UnavailableNot disclosed as a single line-item; reported components: Net Interest Income $5.668M, Non-Interest Income $1.703M N/A

Consensus estimates via S&P Global were unavailable for PFBX’s Q1 2025 EPS and revenue. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Earnings softness stems from lower net interest income and margin compression as securities balances and yields declined; watch NIM trajectory (2.98% in Q1 vs 3.24% YoY) for earnings power recovery .
  • Seasonal public fund tax deposits boosted liquidity and deposits (+$31.261M QoQ to $751.991M); expect gradual allocation over the year and potential deposit normalization .
  • AOCI improvement (AFS losses down to $34.862M) supports book value and equity ($94.455M), though rate volatility remains a risk; regulatory capital is insulated via opt-out .
  • Cost discipline remains in focus given efficiency ratio deterioration to 77%; operating leverage is a key medium-term lever as revenue pressures persist .
  • Dividend continuity ($0.18) and strong leverage ratio (13.32%) underpin capital return and solvency, which can support the stock’s yield-focused investor base .
  • With no consensus estimates available, near-term stock drivers likely hinge on internal NIM trends, deposit mix repricing, and securities portfolio marks/AOCI .
  • Post-2024 discrete tax benefit, results are back to normalized tax expense; comparisons to Q3 2024 should exclude the one-time item to avoid misinterpretation .