Troubled loans weigh on earnings of Mississippi-based Peoples Financial

MarketsAssociated Press

The parent of The Peoples Bank reported a net loss of $1.8 million for the quarter ending Sept. 30.

Peoples Financial Corporation CEO Chevis Swetman says the loss stemmed primarily from issues with two loans.

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Swetman says the bank's fundamentals remain sound, though it was forced to write down one loan and move a second to nonaccrual status.

The company took total loan-loss provisions of $3.5 million during the third quarter, compared to $542,000 for the same period in 2013.

Peoples recorded a net loss of 35 cents per share for the third quarter compared to net earnings of 18 cents a share in the year-ago quarter.

The Peoples Bank operates 18 branches along the Mississippi Gulf Coast and recorded total assets of $753 million as of Sept. 30.