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PF

PEOPLES FINANCIAL CORP /MS/ (PFBX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 net income was $1.242M and EPS $0.27, down sharply year over year on lower securities balances/yields that reduced total interest income; non-interest expense also rose modestly .
  • Net interest income declined $431K YoY to $5.472M; total “revenue” (net interest income + non-interest income) was approximately $7.25M, down vs Q1 2025 and Q4 2024 .
  • Deposits fell $76.419M year-to-date to $644.311M due to loss of several large public fund deposits following competitive bid processes; leverage ratio remained strong at 13.97% .
  • Management emphasized asset quality vigilance and hurricane preparedness; a regular $0.18 dividend was declared May 28, 2025 .

What Went Well and What Went Wrong

What Went Well

  • Capital strength: Bank leverage ratio at 13.97% as of June 30, 2025, not impacted by AFS unrealized losses due to opt-out election .
  • Equity improvement: Shareholders’ equity increased $6.509M in H1 2025 to $96.510M, aided by earnings and a $4.788M reduction in unrealized securities losses YTD .
  • Management preparedness: “As hurricane season commences, the Company has proactively prioritized hurricane preparedness… allowing branches to operate even in the event of power outages,” said Chairman, President & CEO Chevis C. Swetman .

What Went Wrong

  • Earnings pressure: Net income down $1.087M YoY to $1.242M; EPS $0.27 vs $0.50 in Q2 2024, driven primarily by lower securities balances/yields that reduced total interest income .
  • Efficiency deterioration: Efficiency ratio worsened to 78% in H1 2025 vs 68% in H1 2024, reflecting revenue pressure and expense mix .
  • Deposit outflows: Deposits decreased $76.419M in H1 2025 to $644.311M due to losing several large public fund deposits in 2025 competitive bid processes .

Financial Results

Quarterly P&L (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Net interest income ($USD Millions)$5.576 $5.668 $5.472
Non-interest income ($USD Millions)$1.760 $1.703 $1.777
Non-interest expense ($USD Millions)$5.550 $5.691 $5.762
Net income ($USD Millions)$1.528 $1.310 $1.242
EPS ($USD)$0.33 $0.28 $0.27
Total “Revenue” (NII + Non-interest) ($USD Millions)$7.34 $7.37 $7.25

Q2 YoY Comparison

MetricQ2 2024Q2 2025YoY Delta
Net interest income ($USD Millions)$5.903 $5.472 −$0.431M
Non-interest income ($USD Millions)$1.761 $1.777 +$0.016M
Non-interest expense ($USD Millions)$5.564 $5.762 +$0.198M
Net income ($USD Millions)$2.329 $1.242 −$1.087M
EPS ($USD)$0.50 $0.27 −$0.23

Key Ratios (oldest → newest)

MetricQ2 2024Q1 2025Q2 2025
Net interest margin (%)3.07% 2.98% 3.02%
Efficiency ratio (%)68% 77% 78%
Return on average assets (%)1.16% 0.62% 0.64%
Return on average equity (%)13.30% 5.76% 5.52%

Balance Sheet Trend (oldest → newest)

MetricJun 30, 2024Dec 31, 2024Mar 31, 2025Jun 30, 2025
Total assets ($USD Millions)$846.747 $831.849 $866.613 $761.340
Securities ($USD Millions)$541.582 $431.804 $482.810 $437.829
Loans, net ($USD Millions)$235.590 $230.594 $228.676 $245.332
Total deposits ($USD Millions)$674.914 $720.730 $751.991 $644.311
Shareholders’ equity ($USD Millions)$74.200 $90.001 $94.455 $96.510

KPIs (oldest → newest)

KPIQ2 2024Q1 2025Q2 2025
Leverage ratio (%)11.84% 13.32% 13.97%
Nonaccrual loans ($USD Thousands)$455 $441 $600
Loans 90+ days and accruing ($USD Thousands)$0 $61 $10
ACL on loans ($USD Thousands, end of period)$3,150 $2,969 $2,966
Weighted average shares (units)4,661,686 4,617,466 4,617,466

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Regular cash dividend per shareQ2 2025N/A$0.18 payable June 13, 2025; record date June 11, 2025 Declared
Stock repurchase authorizationFY 20252024 program: lesser of $1,000,000 or 64,000 shares (expired 12/31/2024) New 2025 program: lesser of $750,000 or 40,000 shares, expires 12/31/2025 Lowered authorization vs prior program

No formal revenue, margin, OpEx, OI&E, or tax rate quantitative guidance was issued in Q2 2025 materials .

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was found; themes below reflect management releases.

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Asset quality vigilanceEmphasized monitoring economic conditions and interest rates Reaffirmed, with added hurricane preparedness and BCP/DR readiness Consistent focus; operational readiness elevated
Liquidity & deposits2024 deposits up $32.24M on public tax deposit timing Q1 2025 deposits up to $751.991M on public fund inflows Q2 2025 deposits down $76.419M to $644.311M due to losing large public fund accounts
Tax impactsDiscrete tax benefit of $15.194M from DTA valuation allowance reversal in Q3 2024 Normal tax rate dynamics resumed (Q1 tax expense $375K) H1 2025 tax expense rose to $620K due to near-full utilization of 2024 federal tax credits
Capital/leverageLeverage 13.95% at YE 2024 13.32% at 3/31/2025 13.97% at 6/30/2025
Securities AFS unrealized losses$38.006M unrealized losses at YE 2024 $34.862M at 3/31/2025 $32.218M at 6/30/2025

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. As hurricane season commences, the Company has proactively prioritized hurricane preparedness… The Company has a comprehensive and thorough business continuity and disaster recovery strategy.” — Chevis C. Swetman, Chairman, President & CEO .
  • “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 on Q1 2025 .
  • “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 (Dividend release) .

Q&A Highlights

No Q2 2025 earnings call transcript or Q&A session was available in our document catalog; therefore no analyst Q&A highlights to report [SearchDocuments: no results].

Estimates Context

MetricQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD Millions)Unavailable*$7.25*
EPS ($USD)Unavailable*$0.27

Values retrieved from S&P Global*. Coverage appears limited; no EPS or revenue consensus was available for Q2 2025. Revenue “actual” reflects net interest income plus non-interest income reported ($5.472M + $1.777M = $7.249M) .

Key Takeaways for Investors

  • Earnings under pressure: Q2 2025 net income fell to $1.242M and EPS to $0.27 on lower securities balances/yields reducing total interest income; non-interest expenses ticked up .
  • NII compression: Net interest income was $5.472M, down $431K YoY; NIM was 3.02% vs 3.07% last year, signaling modest spread pressure .
  • Deposit volatility: Deposits decreased $76.419M YTD to $644.311M due to loss of large public fund accounts; expect continued variability around bid cycles .
  • Capital buffer intact: Leverage ratio at 13.97% and equity up to $96.510M provide resilience amid rate and deposit dynamics .
  • AFS losses improving: Unrealized losses on AFS securities declined to $32.218M from $38.006M at YE 2024; management does not foresee sales that would crystallize losses in near term .
  • Dividend signal: Regular $0.18 dividend declared in Q2 provides shareholder return despite earnings pressure .
  • Tactical lens: With limited sell-side coverage and no Q2 call transcript, stock narrative likely moves on deposit flows (public funds outcomes), rate path impacting securities income, and continued capital strength .