BILOXI, Miss., Aug. 20 /PRNewswire-FirstCall/ -- The Board of Directors of Peoples Financial Corporation , parent of The Peoples Bank, has authorized the repurchase of 2.5% or about 136,000 of the outstanding shares of the Company, announced Chevis C. Swetman, chairman and chief executive officer of the holding company and the bank.
Shares may be purchased on the open market or through private transactions, and the repurchased shares will be retired, said Swetman. As of June 30, 2007, the Company reported 5,515,782 shares outstanding.
The Board authorized a similar 2.5% repurchase program in December, 2002 and approved a three-year extension of the plan in December, 2005. That program was completed in July, and the Board decided to launch a new repurchase upon conclusion of the earlier one.
"Our Board of Directors and senior management team have determined that our stock's current price does not reflect its long term value," said Swetman. "We believe this program is an effective use of capital. Our strong earnings and solid balance sheet give us the capacity to reward our shareholders by investing in our own company," he added.
Founded in 1896, with $991 million in assets as of June 30, 2007, The Peoples Bank operates 16 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. The bank also formed a mortgage loan department in July, 2007, to provide residential loans for primary, secondary and multi-family homes up to four units.
The Peoples Bank is a wholly-owned subsidiary of Peoples Financial Corporation, listed on the NASDAQ Capital Market under the symbol PFBX. Additional information is available on the Internet at http://www.thepeoples.com/.
This news release contains forward-looking statements and reflects industry conditions, company performance and financial results. These forward-looking statements are subject to a number of risk factors and uncertainties which could cause the Company's actual results and experience to differ from the anticipated results and expectation expressed in such forward-looking statements.
