BILOXI — Peoples Financial Corporation (NASDAQ Capital Market: PFBX), parent of The Peoples Bank, reported a loss of $883,000 for the quarter and $538,000 for the full year ended Dec. 31, 2013, due primarily to actions on certain non-performing assets, announced Chevis C. Swetman, chairman and CEO of the holding company and the bank.
Loss per weighted average share totaled $.17 for the fourth quarter and $.10 for all of 2013. Per share figures are based on weighted average shares outstanding of 5,123,186 and 5,128,889 for the quarter and year ended Dec. 31, 2013, respectively.
“In December, we announced the painful but prudent decision to take final action on a few large credit problems on our books,” said Swetman. “As it so often happens, strong medicine tastes terrible but proves therapeutic in the long run. Our senior management team and board are confident these steps will purge our balance sheet and position us firmly for positive growth in the future,” he said.
In December 2013, the company announced a number of transactions, including the sale of property in the Other Real Estate portfolio that reduced earnings by $413,000, net of taxes; the sale of a gaming loan that increased earnings by $1,005,000, net of taxes, and an additional provision for loan loss of $4,600,000 that reduced earnings by $3,036,000 net of taxes.
Non-accrual loans at the end of 2013 decreased by 51 percent from the year before, largely due to the actions taken in fourth quarter. The allowance for loan losses on Dec. 31, 2013, was $8,934,000, slightly higher than the allowance of $8,857,000 on Dec. 31, 2012. The allowance represented 2.38 percent of all loans outstanding at the end of 2013, compared to 2.05 percent at the end of 2012.
“Our primary capital ratio at the end of 2013 totaled 13.64 percent, well in excess of regulatory minimums,” said Swetman.