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PF

PEOPLES FINANCIAL CORP /MS/ (PFBX)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 EPS was $0.14 and net income was $0.64M; year-over-year compares are distorted by a $15.19M discrete tax benefit in Q3 2024, while underlying pre-tax income fell to $0.79M on softer interest income and elevated funding costs .
  • Total quarterly “revenue” (net interest income + non-interest income) was $6.50M, down sequentially vs Q2 ($7.25M) and Q1 ($7.37M), reflecting lower securities yields and balances; net interest margin compressed to 2.92% (vs 3.24% in Q1 and 3.00% in Q3 2024) .
  • Deposits declined to $637.58M by quarter-end (down $83.15M YTD) due to loss of several large public fund accounts amid competitive bid processes; equity rose to $100.01M as AOCI improved with lower unrealized securities losses .
  • No formal guidance or earnings call transcript was found for Q3 2025; Street coverage appears minimal with no S&P Global EPS or revenue consensus available for Q3 2025 (see Estimates Context) .
  • Near-term catalysts hinge on deposit stabilization (post public fund attrition), securities AOCI tailwinds, and maintaining credit quality during hurricane season; management emphasized preparedness and high asset quality focus .

What Went Well and What Went Wrong

What Went Well

  • Non-interest income improved YoY in Q3 to $1.93M (from $1.75M), helping offset net interest income pressure .
  • Shareholders’ equity increased to $100.01M, aided by a $7.64M reduction in unrealized AFS losses YTD, improving book value per share to $21.66 .
  • Management reiterated robust business continuity and hurricane preparedness across 18 facilities, signaling operational resilience: “The Company has a comprehensive and thorough business continuity and disaster recovery strategy.” — Chevis C. Swetman .

What Went Wrong

  • Net interest income fell to $4.58M (from $5.28M YoY and $5.47M in Q2), driven by lower securities income/overnight fed funds yields and balances; NIM compressed to 2.92% .
  • Deposits declined to $637.58M (down $83.15M YTD) as several large public fund accounts moved to other banks via competitive bids, pressuring funding base and cost of funds optimization .
  • Efficiency ratio worsened to 81% (from 72% YoY), reflecting revenue pressure and lingering elevated operating costs vs volume; ROAA fell to 0.54% (vs 3.33% reported in Q3 2024 due to the discrete tax benefit) .

Financial Results

Income Statement Comparison (oldest → newest)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Total Revenue (Net interest + Non-interest) ($USD Millions)$7.03 $7.37 $7.25 $6.50
Net Interest Income ($USD Millions)$5.28 $5.67 $5.47 $4.58
Non-Interest Income ($USD Millions)$1.75 $1.70 $1.78 $1.93
Non-Interest Expense ($USD Millions)$5.74 $5.69 $5.76 $5.72
Pre-Tax Income ($USD Millions)$1.33 ——$0.79
Net Income ($USD Millions)$15.43 $1.31 $1.24 $0.64
Diluted EPS ($)$3.31 $0.28 $0.27 $0.14

Notes: Q3 2024 net income/EPS were elevated by a one-time $15.19M tax valuation allowance reversal; underlying operating comps should be viewed on pre-tax basis .

Margins and Ratios (oldest → newest)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Net Interest Margin (%)3.00% 3.24% NA2.92%
Efficiency Ratio (%)72% 77% 78% (6M ended) 81%
ROAA (%)3.33% (discrete item) 0.62% 0.64% (6M ended) 0.54%

Balance Sheet KPIs (period-end, oldest → newest)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Total Assets ($USD Millions)$814.15 $867.00 $761.00 $758.07
Securities ($USD Millions)$475.51 $—$—$407.91
Loans, net ($USD Millions)$236.17 $—$—$249.74
Total Deposits ($USD Millions)$666.09 $751.99 $644.31 $637.58
Shareholders’ Equity ($USD Millions)$96.39 $94.46 $96.51 $100.01
Book Value per Share ($)$20.68 $—$—$21.66
Leverage Ratio (%)13.48% —13.97% 15.19%

Guidance Changes

No formal quantitative guidance (revenue, margins, OpEx, OI&E, tax rate, dividends) was provided in Q3 2025 press materials or the 8-K. The company highlighted operational preparedness and liquidity/capital strength but did not issue ranges.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
————No formal guidance provided

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was found; themes below are synthesized from Q1–Q3 press releases.

TopicPrevious Mentions (Q1 2025, Q2 2025)Current Period (Q3 2025)Trend
Deposit Mix/Public FundsQ1: Deposits up $31.26M on tax deposit seasonality ; Q2: Deposits down $76.42M on loss of large public fund accounts Deposits down $83.15M YTD; continued impact from lost public fund accounts Negative, stabilization needed
Securities/AOCIQ1: AOCI improved ($3.14M reduction in unrealized losses) ; Q2: AOCI improved ($4.79M reduction) Unrealized losses down to $30.36M from $38.01M YTD Positive tailwind
Tax Credits/Effective RateQ1: Effective rate normalization; tax credits mostly utilized ; Q2: Minimal credits left; tax expense up Effective rate ~19% for 9M 2025 Normalized (no large discrete items)
Asset Quality/PreparednessQ1/Q2: High-quality assets; hurricane preparedness ;Q3: Reinforced preparedness and asset quality vigilance Stable
NIM/Spread DynamicsQ1: NIM 3.24% ; Q2: NIM not disclosed; NI pressured by securities yields NIM 2.92% (down YoY and vs Q1) Negative

Management Commentary

  • “The Bank’s leadership remains committed to maintaining high-quality assets… As hurricane season continues, the Company has proactively prioritized hurricane preparedness… The Company has a comprehensive and thorough business continuity and disaster recovery strategy.” — Chevis C. Swetman, Chairman and CEO .
  • Liquidity and capital remain strong; most deposits are fully FDIC insured; ongoing scenario planning underscores conservative posture .
  • Equity improved and AOCI losses narrowed in 2025, reflecting interest rate moves and no anticipated sales of affected securities near term .

Q&A Highlights

No Q3 2025 earnings call transcript was available; therefore, no Q&A highlights or clarifications could be extracted [Search returned no transcript].

Estimates Context

  • S&P Global consensus coverage appears minimal for PFBX; Q3 2025 EPS and revenue consensus counts/means were unavailable.
  • S&P Global recorded actual Q3 2025 “Revenue” at $6.504M (net interest income + non-interest income), consistent with company disclosures.*
MetricQ3 2025 ConsensusQ3 2025 Actual
Primary EPS Consensus MeanNA*$0.14
Revenue Consensus Mean ($USD Millions)NA*$6.50*

*Values retrieved from S&P Global.

Implication: With little/no Street coverage, estimate-driven beats/misses are not applicable; internal execution (deposit stabilization, NIM management, credit quality) will drive narrative and stock reactions rather than consensus surprises.

Key Takeaways for Investors

  • Q3 softness was driven by rate/volume pressure on securities and lower funding balances; focus should be on deposit franchise rebuilding post public fund attrition and remix to core deposits .
  • Credit remains stable; ACL ended at $2.93M and nonaccruals $0.79M, with limited charge-offs; continued vigilance warranted in a higher-for-longer environment .
  • AOCI improvement materially lifted equity/book value; further rate declines could sustain tailwinds, while adverse rate moves may reverse gains—monitor duration/convexity in AFS portfolio .
  • Operating efficiency deteriorated (81% ER); near-term upside depends on restoring spread income and throughput while preserving cost discipline .
  • With no formal guidance and limited Street coverage, catalysts will be internal: deposit stabilization in Q4/Q1 tax seasonality, NIM trajectory, and hurricane-related operational continuity .
  • Valuation sensitivity is high to capital/AOCI and NIM trends; absence of discrete tax benefits in 2025 normalizes reported earnings power relative to 2024’s one-offs .
  • For trading, watch for deposit trend updates and any signs of NIM stabilization; a continuation of AOCI improvement may support book value-driven sentiment in thinly traded OTC markets .