Peoples Financial Corporation Reports Results For First Quarter Of 2016

BILOXI, Miss., April 27, 2016

Provision for loan losses during the first quarter of 2016 decreased to $113,000 compared to $986,000 for the same period last year. The allowance for loan losses as a percentage of total loans was 2.24% as of March 31, 2016 as compared to 2.69% as of March 31, 2015.

As of March 31, 2016, Other Real Estate ("ORE") was $9,840,000 compared to $12,297,000 as of March 31, 2015.  Write downs in the value of existing ORE properties were $355,000 for the first quarter of 2016 compared to $411,000 for the first quarter of 2015. These write downs in 2016 are related to five real estate properties currently under contract which are anticipated to close by the end of the third quarter of 2016. The company's ORE inventory is projected to decrease by approximately $1,500,000 as a result of these real estate sales.

"We are pleased with our continued asset quality progress," said Swetman. "On April 13^th we commemorated our 120^th anniversary and we are confident 2016 will be a positive year toward enhancing our long-term financial prosperity," he added.

Earnings per weighted average share for first quarter of 2016 was $0.01, compared to a loss of $0.22 per weighted average share in the first quarter of 2015. Per share figures are based on weighted average common shares outstanding of 5,123,186 for the three-month periods ended March 31, 2016 and March 31, 2015.

The Company's primary capital ratio decreased to 14.85% as of March 31, 2016, compared to 15.06% at the end of the same period in 2015.

Founded in 1896, with $700 million in assets as of March 31, 2016, The Peoples Bank operates 18 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties. In addition to a comprehensive range of retail and commercial banking services, the bank also operates a trust and investment services department that has provided customers with financial, estate and retirement planning services since 1936.