BILOXI, Miss., April 24, 2024 /PRNewswire/ -- Peoples Financial Corporation (the "Company") (OTCQX Best Market: PFBX), parent of The Peoples Bank (the "Bank"), announced earnings for the first quarter ending March 31, 2024.  Additionally, the board of directors of Peoples Financial Corporation announced its approval to repurchase the Company's outstanding and issued common stock up to a limit that is the lesser of $1,000,000 in aggregate repurchase price or approximately 64,000 in shares, effective following the announcement.  Shares will be repurchased at the discretion of management either on the open market or through privately negotiated transactions, and repurchased shares will be retired.  As of March 31, 2024, the Company reported common shares outstanding of 4,661,686. The timing of the planned repurchases will depend on market conditions and other requirements.  The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares, and the program may be extended, modified, suspended or discontinued at any time. EarningsNet income for the first quarter of 2024 was $2,415,000 compared to net income of $2,623,000 for the first quarter of 2023. The earnings per weighted average common share for the first quarter of 2024 were $0.52 compared to earnings per weighted average common share of $0.56 for the first quarter of 2023. Per share figures are based on weighted average common shares outstanding of 4,661,686 and 4,678,186 for the first quarters of 2024 and 2023, respectively. The decrease in net income for the first quarter of 2024 was primarily due to a decrease in net interest income of $357,000 to $6,693,000 for the first quarter of 2024 as compared with $7,050,000 for the first quarter of 2023.  Total interest income increased $492,000 to $8,929,000 for the first quarter of 2024 as compared with $8,437,000 for the first quarter of 2023 due to higher interest income on loans and overnight fed funds caused by an increase in interest rates.  Total interest expense increased by $849,000 to $2,236,000 for the first quarter of 2024 as compared with $1,387,000 for the first quarter of 2023 because of higher interest rates paid on deposit accounts and borrowings also due to an increase in interest rates.  The Company started recording income tax expense during 2023 after utilizing its remaining net operating loss carryforward during 2022.  The income tax expense increased $184,000 to $631,000 for the first quarter of 2024 as compared with $447,000 for the first quarter of 2023.  This increase was due to an increase in the effective tax rate after utilizing its remaining general business credit during the first quarter of 2024.    Return on average assets for the first quarter ended March 31, 2024, decreased 0.03% to 1.12% compared to 1.15% for the first quarter ended March 31, 2023.  The Company's efficiency ratio decreased 1% to 64% for the first quarter ended March 31, 2024, compared to 65% for the first quarter ended March 31, 2023. Asset QualityOther real estate decreased from $259,000 at March 31, 2023, to $1 as of March 31, 2024. "The Bank's management, continues to focus on maintaining high asset quality of the loan portfolio as well as solid interest income on both securities and loans." said Chevis C. Swetman, chairman and chief executive officer of the Company and the Bank. Shareholders' EquityTotal shareholders' equity increased by $1,380,000 from $69,283,000 at December 31, 2023, to $70,663,000 at March 31, 2024.  The improvement in shareholders' equity was mainly due to quarterly earnings of $2,415,000 through March 31, 2024.  The Company also experienced an increase of $1,035,000 in unrealized losses on securities in 2024.  The Company reported $40,915,000 and $39,881,000 in unrealized losses on the available for sale securities portfolio as of March 31, 2024, and December 31, 2023, respectively. These unrealized losses are presented in accumulated other comprehensive income.  The Company does not anticipate these unrealized losses to be realized.  The cause of the unrealized losses has primarily resulted from higher interest rates that have impacted the current market value of available for sale securities, but they are not related to any credit deterioration within the portfolio. The Company has maintained strong liquidity and continues to do so; therefore, the Company does not foresee a sale of any affected securities that would cause the realization of these losses by the Company as part of net income in the near future. The Bank's leverage ratio has not been impacted by these unrealized losses on available for sale securities due to an opt-out election previously made by the Bank in accordance with current regulatory capital requirements and therefore remained strong at 11.48% as of March 31, 2024.  LiquidityThe Company maintains a well-capitalized balance sheet which includes strong capital and liquidity.  The Bank provides a full range of banking, financial and trust services in our local markets.  The majority of the Bank's deposits are fully FDIC insured.  The Company evaluates on an ongoing and continuous basis its financial health by preparing for various moderate to severe economic scenarios.  As interest rates have increased and the cost of attracting new deposits and replacing deposit run-off has increased, the Bank experienced a decrease in deposit balances during the year ended December 31, 2023. This decrease was mostly caused by the loss of several large public fund deposits following competitive bid processes whereby many public fund deposit accounts were awarded to other local banks.  As of March 31, 2024 total deposits have increased $123,009,000 to $811,499,000 from $688,490,000 as of December 31, 2023.  This is mainly because of an increase in governmental entities' account balances due to tax ...