Peoples Financial Corporation disclosed its fourth quarter financial results for 2024, showcasing a net income of $1,528,000, which represents a $195,000 decrease from the same period in 2023. The earnings per weighted average common share also saw a decline, dropping to $0.33 from $0.37 the previous year. This reduction was primarily due to a $300,000 increase in noninterest expenses, largely attributed to higher employee benefits costs, alongside a $63,000 decrease in total interest income and a $234,000 rise in interest expenses due to higher deposit account interest rates.
Despite the quarterly downturn, the company celebrated its third-best year of earnings in 2024, with net income soaring to $21,703,000 from $9,166,000 in 2023. This remarkable growth was significantly influenced by a one-time discrete tax benefit of $15,194,000, resulting from the reversal of the valuation allowance on federal and state deferred tax assets. Additionally, the company's board of directors approved a new stock repurchase program, allowing for the purchase of up to 40,000 shares or shares worth $750,000, effective immediately and extending through December 31, 2025. This initiative replaces the previous 2024 repurchase plan, under which 44,220 shares were repurchased.
Total shareholders' equity experienced a substantial increase, rising by $20,718,000 to $90,001,000 by the end of 2024. This growth was fueled by positive pre-tax earnings, a reduction in unrealized securities losses, and the aforementioned tax asset valuation allowance reduction. Peoples Financial Corporation maintained a robust leverage ratio of 13.95% and continued to offer a wide array of banking services across the Mississippi Gulf Coast. Under the leadership of Chairman and CEO Chevis C. Swetman, the company remains focused on preserving high-quality assets and staying vigilant of economic conditions. With total assets amounting to $832 million and 18 bank facilities, Peoples Financial Corporation exemplifies financial resilience in a demanding economic landscape.
