Peoples Financial Corporation reported net income of $1.12 million for the third quarter of 2026, an increase of $473,000 compared to the same period in 2025. Earnings per weighted average common share rose to $0.24 from $0.14 in the prior year.
The company attributed the increase in net income to a rise in net interest income, which grew by $560,000 to $5.14 million. Total interest income increased by $327,000 to $7.24 million, driven by higher interest income on loans. Conversely, total interest expense decreased by $233,000 to $2.10 million, primarily due to lower rates on Federal Home Loan Bank borrowings and reduced interest expense on savings and deposit accounts.
For the first nine months of 2026, net income totaled $3.46 million, compared to $3.20 million for the same period in 2025. The company announced a regular semi-annual cash dividend of $0.19 per common share, representing a 5.6% increase from the previous rate of $0.18. The dividend is payable on November 13, 2026, to shareholders of record as of November 10, 2026.
As of September 30, 2026, total assets stood at $776 million, with total deposits increasing to $646 million from $604 million at the end of 2025. The company reported unrealized losses of $34 million on its available-for-sale securities portfolio due to rising interest rates. Despite these unrealized losses, the company’s leverage ratio remained strong at 14.89%.
