Tue, May 13, 2:02 PM (31 days ago)
**Peoples Financial Corporation (PFBX) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue (interest income) decreased to $7,559,000 from $8,929,000 in Q1 2024, primarily due to lower yields on investments and loans. - **Profit Margins:** Net income fell to $1,310,000 from $2,415,000 in Q1 2024, reflecting higher expenses and lower non-interest income. - **Cash Flow:** Net cash provided by operating activities was $1,191,000, down from $1,135,000 in Q1 2024. Investing activities used $44,762,000, while financing activities provided $31,261,000. - **Earnings Changes:** Earnings per share decreased to $0.28 from $0.52 in Q1 2024. **Quarterly Performance Discussion:** - **Interest Income:** Decreased due to lower yields on loans and securities. - **Non-Interest Income:** Decreased by $40,000, with no gain on sale of bank property in Q1 2025. - **Expenses:** Increased by $301,000, driven by higher salaries and occupancy costs. - **Asset Quality:** Non-performing loans increased slightly, but collateral values are sufficient to cover potential losses. - **Liquidity:** Strong liquidity position with access to various funding sources. **Trends and Uncertainties:** - **Interest Rates:** The Federal Reserve's rate cuts in 2024 and projected cuts in 2025 may impact net interest margins. - **Economic Conditions:** Concerns about inflation and its potential impact on the economy and individual households. - **Asset Quality:** Continued focus on monitoring asset quality and estimating potential losses in the loan portfolio. **Future Operations Impact:** - **Growth Strategies:** Continued emphasis on de novo branching activity and maintaining a strong core deposit base. - **Capital Adequacy:** Maintaining a strong capital foundation, with a community bank leverage ratio of 13.32% as of Q1 2025. - **Liquidity Management:** Ongoing monitoring and management of liquidity needs, with access to various funding sources. **Ticker:** PFBX