Peoples Financial Corporation reported its financial results for the fourth quarter and full year of 2024, highlighting a significant improvement in annual earnings primarily due to a strategic tax asset reversal.
The financial institution recorded a net income of $21.7 million for the year ended December 31, 2024, a substantial increase from $9.2 million in 2023. This remarkable growth was largely attributed to a one-time discrete tax benefit of $15.2 million from reversing a valuation allowance on federal and state deferred tax assets during the third quarter.
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 primarily due to increased noninterest expenses, particularly in employee benefits, and higher interest expenses on deposit accounts.
The company's financial leadership, led by Chairman and CEO Chevis C. Swetman, emphasized their commitment to maintaining high-quality assets and closely monitoring economic conditions. The bank's strategic approach is evident in its strong financial metrics, including a leverage ratio of 13.95% and total assets of $832 million as of December 31, 2024.
Shareholders' equity experienced significant growth, increasing by $20.7 million to $90 million. This improvement resulted from positive pre-tax earnings, decreased unrealized losses on securities, and the tax asset reversal. The company also maintained its dividend payments, distributing $2 million to shareholders.
Despite challenges in the banking sector, including increased interest rates and deposit attraction costs, Peoples Financial Corporation demonstrated resilience. Total deposits increased by $32.2 million to $720.7 million, driven by public fund tax deposits during the first and last quarters of 2024.
The financial institution's performance metrics reflect its strategic management. The return on average assets increased to 2.65%, and the return on average equity reached 27.25%. However, the efficiency ratio increased to 73%, indicating potential areas for operational optimization.
With 18 bank facilities along the Mississippi Gulf Coast and a history dating back to 1896, Peoples Financial Corporation continues to provide comprehensive banking, financial, and trust services. The company's stock is listed on the OTCQX Best Market under the symbol PFBX, marking its third-best earnings year in its long-standing history.
