UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934
January 19, 2005
Date of Report (Date of Earliest Event Reported)
THE PEOPLES HOLDING COMPANY
(Exact Name of Registrant as Specified in its Charter)
| Mississippi | 1-13253 | 64-0676974 | ||
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
| 209 Troy Street, Tupelo, Mississippi | 38802-0709 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, including area code: (662) 680-1001
(Former Name or Former Address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01. Regulation FD Disclosure.
On January 19, 2005, The Peoples Holding Company (“Peoples”) posted on its website (www.phcfc.com) information with respect to Peoples’ financial condition for the three-month periods ended December 31, 2004 and 2003 and for the twelve-month periods ended December 31, 2004 and 2003. The financial information posted on Peoples’ website is furnished as Exhibit 99.1 to this Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits.
The following exhibit is furnished herewith:
| Exhibit Number |
Description | |
| 99.1 | Financial information for The Peoples Holding Company for the three-month periods ended December 31, 2004 and 2003 and for the twelve-month periods ended December 31, 2004 and 2003. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE PEOPLES HOLDING COMPANY | ||||
| Registrant | ||||
| DATE: January 19, 2005 |
/s/ Stuart R. Johnson | |||
| Stuart R. Johnson Executive Vice President & Chief Financial Officer | ||||
EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1 | Financial information for The Peoples Holding Company for the three-month periods ended December 31, 2004 and 2003 and for the twelve-month periods ended December 31, 2004 and 2003. | |
Exhibit 99.1
The Peoples Holding Company
Selected Financial Information
(Dollars in Thousands, Except Share Data)
Unaudited
| For The Three Months Ended December 31, |
For The Year Ended December 31, |
|||||||||||||||||||||
| 2004 |
2003 |
% Change |
2004 |
2003 |
% Change |
|||||||||||||||||
| Earnings Summary | ||||||||||||||||||||||
| Interest income |
$ | 21,076 | $ | 17,105 | 23.22 | % | $ | 77,024 | $ | 70,810 | 8.78 | % | ||||||||||
| Interest expense |
5,848 | 4,944 | 18.28 | 21,796 | 21,777 | 0.09 | ||||||||||||||||
| Net interest income |
15,228 | 12,161 | 25.22 | 55,228 | 49,033 | 12.63 | ||||||||||||||||
| Provision for loan losses |
(82 | ) | 544 | (115.07 | ) | 1,547 | 2,713 | (42.98 | ) | |||||||||||||
| Noninterest income |
6,619 | 7,865 | (15.84 | ) | 32,287 | 31,893 | 1.24 | |||||||||||||||
| Noninterest expenses |
16,631 | 13,210 | 25.90 | 60,709 | 53,193 | 14.13 | ||||||||||||||||
| Income before taxes and cumulative effect of accounting change |
5,298 | 6,272 | (15.53 | ) | 25,259 | 25,020 | 0.96 | |||||||||||||||
| Income taxes |
1,250 | 1,715 | (27.11 | ) | 6,816 | 6,839 | (0.34 | ) | ||||||||||||||
| Income before cumulative effect of accounting change |
4,048 | 4,557 | (11.17 | ) | 18,443 | 18,181 | 1.44 | |||||||||||||||
| Cumulative effect of accounting change |
— | — | — | — | — | — | ||||||||||||||||
| Net income |
$ | 4,048 | $ | 4,557 | (11.17 | )% | $ | 18,443 | $ | 18,181 | 1.44 | % | ||||||||||
| 33.62 | % | |||||||||||||||||||||
| Common Stock Data | ||||||||||||||||||||||
| Earnings per share—basic |
$ | 0.45 | $ | 0.56 | (19.64 | )% | $ | 2.15 | $ | 2.20 | (2.27 | )% | ||||||||||
| Earnings per share—diluted |
0.44 | 0.55 | (20.00 | ) | 2.14 | 2.19 | (2.28 | ) | ||||||||||||||
| Book value per share |
19.79 | 16.79 | 17.87 | |||||||||||||||||||
| Market value per share |
33.10 | 33.00 | 0.30 | |||||||||||||||||||
| Cash dividends per share |
0.21 | 0.20 | 5.00 | 0.82 | 0.75 | 9.33 | ||||||||||||||||
| Weighted average shares outstanding |
9,024,384 | 8,198,067 | 10.08 | 8,597,267 | 8,282,838 | 3.80 | ||||||||||||||||
| Weighted average shares outstanding—diluted |
9,081,944 | 8,218,971 | 10.50 | 8,637,008 | 8,296,901 | 4.10 | ||||||||||||||||
| End of period shares outstanding |
9,046,997 | 8,194,526 | 10.40 | |||||||||||||||||||
| Balance Sheet Summary | ||||||||||||||||||||||
| Gross loans (excluding mortgage loans held for sale) |
$ | 1,141,480 | $ | 862,652 | 32.32 | % | ||||||||||||||||
| Allowance for loan losses |
14,403 | 13,232 | 8.85 | |||||||||||||||||||
| Total investment securities |
371,581 | 414,270 | (10.30 | ) | ||||||||||||||||||
| Total assets |
1,707,545 | 1,415,214 | 20.66 | |||||||||||||||||||
| Total deposits |
1,318,677 | 1,133,931 | 16.29 | |||||||||||||||||||
| Total borrowings |
191,547 | 125,572 | 52.54 | |||||||||||||||||||
| Shareholders' equity |
179,042 | 137,625 | 30.09 | |||||||||||||||||||
| For The Three Months Ended December 31, |
For The Year Ended December 31, |
|||||||||||||||||||||
| 2004 |
2003 |
% Change |
2004 |
2003 |
% Change |
|||||||||||||||||
| Selected Ratios | ||||||||||||||||||||||
| Return on average assets * |
0.95 | % | 1.32 | % | (28.03 | )% | 1.18 | % | 1.33 | % | (11.28 | )% | ||||||||||
| Return on average shareholders' equity * |
9.07 | 13.27 | (31.65 | ) | 11.52 | 13.41 | (14.09 | ) | ||||||||||||||
| Return on average tangible shareholders' equity* |
12.41 | 13.87 | (10.53 | ) | 14.01 | 14.04 | (0.21 | ) | ||||||||||||||
| Shareholders' equity to assets (actual) |
10.21 | 9.72 | 5.04 | |||||||||||||||||||
| Net interest margin (TE) * |
4.20 | 4.16 | 0.96 | 4.14 | 4.23 | (2.13 | ) | |||||||||||||||
| Noninterest income (less securities gains/losses) to average assets* |
1.82 | 2.26 | (19.47 | ) | 2.06 | 2.31 | (10.82 | ) | ||||||||||||||
| Noninterest expense to average assets* |
3.92 | 3.84 | 2.08 | 3.87 | 3.88 | (0.26 | ) | |||||||||||||||
| Overhead ratio * ** |
2.10 | 1.58 | 32.91 | 1.81 | 1.57 | 15.29 | ||||||||||||||||
| Efficiency ratio |
70.16 | 63.48 | 10.52 | 66.93 | 63.16 | 5.97 | ||||||||||||||||
| Allowance for loan losses to total loans |
1.26 | 1.53 | (17.65 | ) | ||||||||||||||||||
| Reserve coverage of nonperforming loans |
166.30 | 181.09 | (8.17 | ) | ||||||||||||||||||
| Nonperforming loans to total loans |
0.76 | 0.85 | (10.59 | ) | ||||||||||||||||||
| Net charge-offs to average loans * |
0.65 | 0.26 | 150.00 | 0.32 | 0.20 | 60.00 | ||||||||||||||||
| Average loans to average deposits |
84.13 | 74.90 | 12.32 | 79.77 | 74.99 | 6.37 | ||||||||||||||||
| Average earning assets to average assets |
89.10 | 90.65 | (1.71 | ) | 89.91 | 90.64 | (0.81 | ) | ||||||||||||||
| * | Ratios annualized |
| ** | The net overhead ratio is noninterest expense less noninterest income expressed as a percent of average assets |
| TE—tax | equivalent basis |
| Nonperforming Assets | |||||||||
| Nonaccruing loans |
$ | 6,443 | $ | 4,624 | 39.34 | % | |||
| Accruing loans past due 90 days or more |
2,218 | 2,683 | (17.33 | ) | |||||
| Total nonperforming loans |
8,661 | 7,307 | 18.53 | ||||||
| ORE and repossessions |
2,324 | 1,805 | 28.75 | ||||||
| Total nonperforming assets |
$ | 10,985 | $ | 9,112 | 20.56 | % | |||
The Peoples Holding Company
Allowance for Loan Losses
(Dollars in Thousands)
Unaudited
| For The Three Months Ended December 31, |
For The Year Ended December 31, |
||||||||||||||||||
| 2004 |
2003 |
% Change |
2004 |
2003 |
% Change |
||||||||||||||
| Reserve for loan losses at beginning of period |
$ | 16,309 | $ | 13,237 | 23.21 | % | $ | 13,232 | $ | 12,203 | 8.43 | % | |||||||
| Acquisition of Renasant |
— | — | — | 2,845 | — | — | |||||||||||||
| Provision for loan losses |
(82 | ) | 544 | (115.07 | ) | 1,547 | 2,713 | (42.98 | ) | ||||||||||
| Loans charged-off |
1,982 | 615 | 222.28 | 3,617 | 2,043 | 77.04 | |||||||||||||
| Recoveries of loans previously charged-off |
158 | 66 | 139.39 | 396 | 359 | 10.31 | |||||||||||||
| Reserve for loan losses at end of period |
$ | 14,403 | $ | 13,232 | 8.85 | % | $ | 14,403 | $ | 13,232 | 8.85 | % | |||||||
The Peoples Holding Company
Loans and Credit Quality
(Dollars in Thousands)
Unaudited
| Loans, Net of Unearned Income As of December 31, |
Non-performing Loans As of December 31, |
Net Charge-offs For The Year Ended | ||||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
2004 |
2003 | |||||||||||||
| Commercial, financial, agricultural |
$ | 175,571 | $ | 140,149 | $ | 667 | $ | 885 | $ | 1,554 | $ | 459 | ||||||
| Lease financing |
10,809 | 12,148 | 163 | — | — | — | ||||||||||||
| Real estate—construction |
96,404 | 50,848 | 794 | — | — | — | ||||||||||||
| Real estate—1-4 family mortgage |
375,698 | 293,097 | 5,519 | 5,220 | 1,016 | 420 | ||||||||||||
| Real estate—commercial mortgage |
395,047 | 280,097 | 1,293 | 1,051 | 117 | 480 | ||||||||||||
| Consumer |
87,951 | 86,313 | 225 | 151 | 534 | 325 | ||||||||||||
| Total |
$ | 1,141,480 | $ | 862,652 | $ | 8,661 | $ | 7,307 | $ | 3,221 | $ | 1,684 | ||||||
The Peoples Holding Company
Condensed Consolidated Statements of Income
(Dollars in Thousands, Except Share Data)
Unaudited
| For The Three Months Ended December 31, |
For The Year Ended December 31, |
|||||||||||||||||||
| 2004 |
2003 |
% Change |
2004 |
2003 |
% Change |
|||||||||||||||
| Interest income: |
||||||||||||||||||||
| Loans |
$ | 17,088 | $ | 13,406 | 27.47 | % | $ | 60,411 | $ | 56,366 | 7.18 | % | ||||||||
| Securities |
3,987 | 3,660 | 8.93 | 16,436 | 14,211 | 15.66 | ||||||||||||||
| Other |
1 | 39 | (97.44 | ) | 177 | 233 | (24.03 | ) | ||||||||||||
| Total interest income |
21,076 | 17,105 | 23.22 | 77,024 | 70,810 | 8.78 | ||||||||||||||
| Interest expense: |
||||||||||||||||||||
| Deposits |
4,555 | 4,212 | 8.14 | 17,382 | 18,818 | (7.63 | ) | |||||||||||||
| Borrowings |
1,293 | 732 | 76.64 | 4,414 | 2,959 | 49.17 | ||||||||||||||
| Total interest expense |
5,848 | 4,944 | 18.28 | 21,796 | 21,777 | 0.09 | ||||||||||||||
| Net interest income |
15,228 | 12,161 | 25.22 | 55,228 | 49,033 | 12.63 | ||||||||||||||
| Provision for loan losses |
(82 | ) | 544 | (115.07 | ) | 1,547 | 2,713 | (42.98 | ) | |||||||||||
| Net interest income after provision for loan losses |
15,310 | 11,617 | 31.79 | 53,681 | 46,320 | 15.89 | ||||||||||||||
| Noninterest income: |
||||||||||||||||||||
| Service charges on deposit accounts |
3,856 | 3,655 | 5.50 | 15,355 | 14,417 | 6.51 | ||||||||||||||
| Fees and commissions |
2,699 | 2,405 | 12.22 | 11,006 | 10,476 | 5.06 | ||||||||||||||
| Trust revenue |
419 | 407 | 2.95 | 2,147 | 1,748 | 22.83 | ||||||||||||||
| Gains on sale of securities |
(1,130 | ) | 82 | (1,478.05 | ) | (1,021 | ) | 191 | (634.55 | ) | ||||||||||
| BOLI Revenue |
306 | 284 | 7.75 | 1,176 | 1,169 | 0.60 | ||||||||||||||
| Merchant Discounts |
39 | 330 | (88.18 | ) | 672 | 1,287 | (47.79 | ) | ||||||||||||
| Gain on Sale of Merchant Business |
— | — | — | 1,000 | — | — | ||||||||||||||
| Other |
430 | 702 | (38.75 | ) | 1,952 | 2,605 | (25.07 | ) | ||||||||||||
| Total noninterest income |
6,619 | 7,865 | (15.84 | ) | 32,287 | 31,893 | 1.24 | |||||||||||||
| Noninterest expenses: |
||||||||||||||||||||
| Salaries and employee benefits |
8,833 | 7,379 | 19.70 | 33,484 | 29,486 | 13.56 | ||||||||||||||
| Data processing |
1,159 | 1,062 | 9.13 | 4,483 | 4,094 | 9.50 | ||||||||||||||
| Net occupancy |
1,118 | 868 | 28.80 | 3,845 | 3,382 | 13.69 | ||||||||||||||
| Equipment |
1,288 | 779 | 65.34 | 3,949 | 3,092 | 27.72 | ||||||||||||||
| Other |
4,233 | 3,122 | 35.59 | 14,948 | 13,139 | 13.77 | ||||||||||||||
| Total noninterest expenses |
16,631 | 13,210 | 25.90 | 60,709 | 53,193 | 14.13 | ||||||||||||||
| Income before taxes and cumulative effect of accounting change |
5,298 | 6,272 | (15.53 | ) | 25,259 | 25,020 | 0.96 | |||||||||||||
| Income taxes |
1,250 | 1,715 | (27.11 | ) | 6,816 | 6,839 | (0.34 | ) | ||||||||||||
| Income before cumulative effect of accounting change |
4,048 | 4,557 | (11.17 | ) | 18,443 | 18,181 | 1.44 | |||||||||||||
| Cumulative effect of accounting change |
— | — | — | — | — | — | ||||||||||||||
| Net income |
$ | 4,048 | $ | 4,557 | (11.17 | )% | $ | 18,443 | $ | 18,181 | 1.44 | % | ||||||||
The Peoples Holding Company
Average Consolidated Balance Sheet and Net Interest Analysis *
(Dollars in Thousands)
Unaudited
| For The Three Months Ended December 31 |
For The Year Ended December 31 |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
| Earning assets | ||||||||||||||||
| Loans and leases: | ||||||||||||||||
| Interest (TE) |
$ | 17,182 | $ | 13,521 | $ | 60,809 | $ | 56,890 | ||||||||
| Average balance |
1,128,631 | 854,358 | 1,000,713 | 860,303 | ||||||||||||
| Yield |
6.06 | % | 6.28 | % | 6.08 | % | 6.61 | % | ||||||||
| Interest bearing bank balances, federal funds sold and repos: | ||||||||||||||||
| Interest |
60 | 42 | 238 | 236 | ||||||||||||
| Average balance |
7,929 | 15,618 | 14,321 | 25,891 | ||||||||||||
| Yield |
3.01 | % | 1.07 | % | 1.66 | % | 0.91 | % | ||||||||
| Investment securities: | ||||||||||||||||
| Interest (TE) |
4,561 | 4,407 | 19,152 | 17,173 | ||||||||||||
| Average balance |
377,482 | 377,451 | 394,456 | 356,166 | ||||||||||||
| Yield |
4.83 | % | 4.67 | % | 4.86 | % | 4.82 | % | ||||||||
| Total earning assets: |
||||||||||||||||
| Interest (TE) |
21,803 | 17,970 | 80,199 | 74,299 | ||||||||||||
| Average balance |
1,514,042 | 1,247,427 | 1,409,490 | 1,242,360 | ||||||||||||
| Yield |
5.74 | % | 5.73 | % | 5.69 | % | 5.98 | % | ||||||||
| Interest bearing liabilities | ||||||||||||||||
| Interest bearing demand deposit accounts: | ||||||||||||||||
| Interest |
67 | 18 | 175 | 80 | ||||||||||||
| Average balance |
28,027 | 6,521 | 17,351 | 6,163 | ||||||||||||
| Rate |
0.95 | % | 1.10 | % | 1.01 | % | 1.30 | % | ||||||||
| Savings and money market accounts: | ||||||||||||||||
| Interest |
1,119 | 1,026 | 4,378 | 4,682 | ||||||||||||
| Average balance |
533,426 | 447,295 | 509,053 | 431,264 | ||||||||||||
| Rate |
0.83 | % | 0.91 | % | 0.86 | % | 1.09 | % | ||||||||
| Time deposits: | ||||||||||||||||
| Interest |
3,369 | 3,168 | 12,829 | 14,056 | ||||||||||||
| Average balance |
582,504 | 522,166 | 549,036 | 539,293 | ||||||||||||
| Rate |
2.30 | % | 2.41 | % | 2.34 | % | 2.61 | % | ||||||||
| Total interest bearing deposits: |
||||||||||||||||
| Interest |
4,555 | 4,212 | 17,382 | 18,818 | ||||||||||||
| Average balance |
1,143,957 | 975,982 | 1,075,440 | 976,720 | ||||||||||||
| Rate |
1.58 | % | 1.71 | % | 1.62 | % | 1.93 | % | ||||||||
| Other interest bearing liabilities: |
||||||||||||||||
| Interest |
1,293 | 732 | 4,414 | 2,959 | ||||||||||||
| Average balance |
161,263 | 84,495 | 137,008 | 83,293 | ||||||||||||
| Rate |
3.19 | % | 3.44 | % | 3.22 | % | 3.55 | % | ||||||||
| Total interest bearing liabilities: |
||||||||||||||||
| Interest |
5,848 | 4,944 | 21,796 | 21,777 | ||||||||||||
| Average balance |
1,305,220 | 1,060,477 | 1,212,448 | 1,060,013 | ||||||||||||
| Rate |
1.78 | % | 1.85 | % | 1.80 | % | 2.05 | % | ||||||||
| Net interest income (TE) |
$ | 15,955 | $ | 13,026 | $ | 58,403 | $ | 52,522 | ||||||||
| Net interest margin (TE) |
4.20 | % | 4.16 | % | 4.14 | % | 4.23 | % | ||||||||
| Net interest spread (TE) |
3.96 | % | 3.88 | % | 3.89 | % | 3.93 | % | ||||||||
| * | Interest amounts annualized for purposes of calculating yields and rates |
TE—taxable equivalent basis