PFBX Net Income Plummets 84% Amid Asset and Deposit Shrinkage

TL;DR

**PFBX is bleeding cash and deposits, and its earnings are in freefall – steer clear.**

AI Summary

PEOPLES FINANCIAL CORP /MS/ (PFBX) reported a significant decline in net income for the three and nine months ended September 30, 2025. Net income for the three months decreased by 95.8% to $643,000 from $15.431 million in the prior year, while nine-month net income fell by 84.2% to $3.195 million from $20.175 million. Total assets decreased by 8.9% to $758.066 million at September 30, 2025, from $831.849 million at December 31, 2024. This decline was primarily driven by a 61.1% reduction in cash and due from banks, from $107.744 million to $41.895 million, and a 22.5% decrease in held-to-maturity securities, from $123.196 million to $95.492 million. Total deposits also decreased by 11.5% to $637.576 million from $720.730 million. Net interest income declined by 13.3% for the three months to $4.576 million and by 12.1% for the nine months to $15.716 million, largely due to a decrease in interest and dividends on securities. The company's strategic outlook includes managing its loan portfolio, which saw a 8.2% increase to $252.671 million, and navigating new accounting standards, though management anticipates no material impact from recent ASUs.

Why It Matters

This significant drop in net income and shrinking asset base signals potential challenges for PFBX, impacting investor confidence and potentially leading to a re-evaluation of its valuation. For employees, a sustained decline could lead to cost-cutting measures. Customers might see changes in service offerings or interest rates as the bank adjusts to its financial performance. In the broader market, this reflects the pressures regional banks face, especially with deposit outflows and interest rate sensitivity, potentially intensifying competitive dynamics in the Mississippi, Louisiana, and Alabama trade area where The Peoples Bank operates.

Risk Assessment

Risk Level: high — The company experienced a 95.8% decrease in net income for the three months ended September 30, 2025, and an 84.2% decrease for the nine months, indicating severe profitability issues. Cash and due from banks plummeted by 61.1% from $107.744 million to $41.895 million, and total deposits decreased by 11.5% from $720.730 million to $637.576 million, signaling significant liquidity and funding challenges.

Analyst Insight

Investors should consider divesting PFBX shares or avoiding new positions given the sharp decline in net income, significant cash outflow, and shrinking deposit base. Monitor future filings for any signs of stabilization in deposits and a reversal in profitability trends before reconsidering an investment.

Key Numbers

• $643K — Net Income (3 months) (Decreased 95.8% from $15.431M year-over-year)
• $3.195M — Net Income (9 months) (Decreased 84.2% from $20.175M year-over-year)
• $758.066M — Total Assets (Decreased 8.9% from $831.849M at December 31, 2024)
• $41.895M — Cash and Due from Banks (Decreased 61.1% from $107.744M at December 31, 2024)
• $637.576M — Total Deposits (Decreased 11.5% from $720.730M at December 31, 2024)
• $4.576M — Net Interest Income (3 months) (Decreased 13.3% from $5.279M year-over-year)
• $15.716M — Net Interest Income (9 months) (Decreased 12.1% from $17.875M year-over-year)
• $252.671M — Loans (Increased 8.2% from $233.576M at December 31, 2024)
• $0.14 — Basic and Diluted EPS (3 months) (Decreased from $3.31 year-over-year)
• $0.69 — Basic and Diluted EPS (9 months) (Decreased from $4.33 year-over-year)

Key Players & Entities

• PEOPLES FINANCIAL CORP /MS/ (company) — registrant
• PFBX (company) — ticker symbol
• The Peoples Bank, Biloxi, Mississippi (company) — subsidiary of Peoples Financial Corporation
• Financial Accounting Standards Board (regulator) — issuer of Accounting Standards Updates
• $643,000 (dollar_amount) — net income for three months ended September 30, 2025
• $15.431 million (dollar_amount) — net income for three months ended September 30, 2024
• $3.195 million (dollar_amount) — net income for nine months ended September 30, 2025
• $20.175 million (dollar_amount) — net income for nine months ended September 30, 2024
• $758.066 million (dollar_amount) — total assets at September 30, 2025
• $831.849 million (dollar_amount) — total assets at December 31, 2024

FAQ

Key Financial Figures

• $1 — , 2025, there were 15,000,000 shares of $1 par value common stock authorized, with
• $250,000 — rest bearing 427,104 434,680 Time, $250,000 or more 12,654 20,563 Other time d

Filing Documents

• pfbx-20250930x10q.htm (10-Q) — 4153KB
• pfbx-20250930xex31d1.htm (EX-31.1) — 9KB
• pfbx-20250930xex31d2.htm (EX-31.2) — 9KB
• pfbx-20250930xex32d1.htm (EX-32.1) — 8KB
• pfbx-20250930xex32d2.htm (EX-32.2) — 7KB
• 0001104659-25-108932.txt ( ) — 18514KB
• pfbx-20250930.xsd (EX-101.SCH) — 47KB
• pfbx-20250930_cal.xml (EX-101.CAL) — 97KB
• pfbx-20250930_def.xml (EX-101.DEF) — 196KB
• pfbx-20250930_lab.xml (EX-101.LAB) — 467KB
• pfbx-20250930_pre.xml (EX-101.PRE) — 359KB
• pfbx-20250930x10q_htm.xml (XML) — 5983KB

: Financial Statements

Item 1: Financial Statements Peoples Financial Corporation and Subsidiaries Consolidated Statements of Condition (in thousands except share data) September 30, 2025 December 31, 2024 (unaudited) (audited) Assets Cash and due from banks $ 41,895 $ 107,744 Available for sale securities, amortized cost of $ 339,495 at September 30, 2025; $ 345,867 at December 31, 2024 312,461 308,648 Held to maturity securities, fair value of $ 86,000 at September 30, 2025; $ 111,112 at December 31, 2024 95,492 123,196 Less: Allowance for credit losses on held to maturity securities 40 40 Held to maturity securities, net 95,452 123,156 Other investments 350 350 Federal Home Loan Bank Stock, at cost 1,144 608 Loans 252,671 233,576 Less: Allowance for credit losses on loans and leases 2,934 2,982 Loans, net 249,737 230,594 Bank premises and equipment, net of accumulated depreciation 17,765 18,712 Other real estate — 9 Accrued interest receivable 3,122 3,516 Cash surrender value of life insurance 22,361 22,026 Intangible asset 429 476 Other assets 13,350 16,010 Total assets $ 758,066 $ 831,849 Liabilities and Shareholders' Equity Liabilities: Deposits: Demand, non-interest bearing $ 172,017 $ 235,183 Savings and demand, interest bearing 427,104 434,680 Time, $250,000 or more 12,654 20,563 Other time deposits 25,801 30,304 Total deposits 637,576 720,730 Employee and director benefit plans liabilities 19,183 19,201 Other liabilities 1,298 1,917 Total liabilities 658,057 741,848 Shareholders' Equity: Common stock, $ 1 par value, 15,000,000 shares authorized, 4,617,466 shares issued and outstanding at September 30, 2025 and December 31, 2024 4,617 4,617 Surplus 65,780 65,780 Undivided profits 58,855 56,491 Accumulated other comprehensive loss ( 29,243 ) ( 36,887 ) Total shareholders' equity 100,009 90,001 Total liab

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View this 10-Q filing on SEC EDGAR