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
April 16, 2003
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Date of Report (Date of Earliest Event Reported)
THE PEOPLES HOLDING COMPANY
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(Exact Name of Registrant as Specified in its Charter)
Mississippi 1-13253 64-0676974
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(State or Other (Commission (I.R.S. Iden-
Jurisdiction of File tification
Incorporation) Number) Number)
209 Troy Street, Tupelo, Mississippi 38802-0709
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(Address of Principal Executive Office) (Zip Code)
Registrant's Telephone Number: (662)680-1001
ITEM 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
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(a) The following exhibit is filed herewith:
99.1 Press Release, dated April 16, 2003, issued by The Peoples
Holding Company.
ITEM 9: REGULATION FD DISCLOSURE.
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At the close of business on April 16, 2003, The Peoples Holding
Company issued a press release announcing first quarter earnings for
2003. The press release is filed as Exhibit 99.1 to this Form 8-K.
SIGNATURE
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
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Registrant
/s/ E. Robinson McGraw
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E. Robinson McGraw
President & Chief Executive Officer
DATE: April 17, 2003
EXHIBIT INDEX
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EXHIBIT NUMBER DESCRIPTION
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99.1 Press Release, dated April 16, 2003, issued by
The Peoples Holding Company.
Exhibit 99.1
THE PEOPLES HOLDING COMPANY
Contact: Jim Gray Stuart Johnson
Executive Vice President Executive Vice President & CFO
(662) 680-1217 (662) 680-1001
jimg@thepeopleplace.com stuartj@thepeopleplace.com
THE PEOPLES HOLDING COMPANY ANNOUNCES
FIRST QUARTER RESULTS
TUPELO, Miss. (April 16, 2003) - The Peoples Holding Company (AMEX:PHC) today
announced results for the first quarter ended March 31, 2003. Earnings per share
for the first quarter increased 13.89% to $0.82 from $0.72, before the
cumulative effect of an accounting change recognized in the first quarter of
2002. Net income for the first quarter increased 11.98% to $4,552,000 from
$4,065,000 before the effect of the accounting change in the first quarter of
2002. Net income for the first quarter of 2002 was $2,765,000, or $0.49 per
share.
Net interest income for the first quarter of 2003 was up slightly while
non-interest income grew 14.62%. These results produced an annualized return on
average equity of 13.15% compared with 12.29% before the cumulative effect of an
accounting change for the first quarter of 2002. The annualized return on
average assets for the first quarter was 1.29% compared with 1.19% before the
cumulative effect of an accounting change for the prior-year period.
"We are pleased to start 2003 with another solid quarter," said E. Robinson
McGraw, President and Chief Executive Officer of The Peoples Holding Company.
"Our overall operations performed well in a very sluggish economy. Growth in
non-interest income coupled with moderate expense growth more than offset slower
loan growth and a narrowing of our net interest margin. Once again, the
diversity of our revenue stream produced another quarter of consistent growth in
earnings."
Stock Price and Dividends
The market price of The Peoples Holding Company shares was $42.60 per share at
March 31, 2003, an increase of 11.52% from $38.20 at March 31, 2002.
Quarterly dividends per share remain at $0.27, with the most recent dividend
increase having occurred in November 2002, the 16th consecutive year of
quarterly increases.
Financial Details
McGraw added, "A continuation of record low interest rates caused our net
interest margin on a tax equivalent basis for the first quarter of 2003 to
decline to 4.39% from 4.59% for the comparable period in 2002."
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McGraw said, however, that loan quality continued to improve despite the slow
economy as evidenced by an almost 32% reduction in the provision for loan losses
from $1,125,000 in the first quarter of 2002 to $767,000 in the first quarter of
2003. The allowance for loan losses as a percentage of loans was 1.48% at the
end of the first quarter of 2003 compared with 1.44% at March 31, 2002. Net
charge-offs as a percentage of average loans decreased to .04% during the first
quarter 2003, from 0.08% in the prior-year period. Non-performing loans as a
percentage of total loans decreased to 0.32% at March 31, 2003, from 0.70% at
March 31, 2002. The non-performing loan coverage ratio was 455.28% at March 31,
2003 compared with 207.23% at March 31, 2002.
As a result of strong growth in service charges, fees related to the sale of
insurance products, loan origination, and debit card usage, non-interest income
increased 14.62% to $7,575,000 in 2003 from $6,609,000 in the first quarter of
2002. "The increase in non-interest income demonstrates the breadth of our
financial services and our success in meeting the diverse financial needs of our
customers," McGraw said. At March 31, 2003, non-interest income represented
37.77% of net operating revenue.
Non-interest expense increased 4.33% for the first quarter of 2003. This
increase was primarily due to fees related to technology enhancements, normal
salary increases and insurance. For the first quarter 2003, non-interest income
growth of $966,000 outpaced non-interest expense growth of $532,000.
Non-interest expense as a percentage of average assets improved to 3.79% for the
first quarter of 2003 from 3.82% for the comparable period in 2002. The
efficiency ratio improved from 62.03% for the first quarter of 2002 to 61.49%
for the first quarter of 2003.
Conference Call Information
A live audio webcast of a conference call with analysts will be available
beginning at 10:00 a.m. Eastern time on Thursday, April 17, 2003, through the
Investor Relations page of the Company's website:
www.thepeoplesbankandtrust.com, and through www.companyboardroom.com, or any of
CCBN's distribution network. The event will be archived for 30 days. If Internet
access is unavailable, the conference may also be heard live (listen-only) via
telephone by dialing (800) 289-0496. A telephonic replay of the conference call
will be available approximately two hours after the call ends and runs through
the end of the business day on April 24. To listen to the replay, dial (719)
457-0820, and enter 354571 when prompted for the access code.
About The Peoples Holding Company
The Peoples Holding Company is the parent of Mississippi's fourth largest
commercial bank headquartered in the state. Through its wholly owned subsidiary,
The Peoples Bank & Trust Company, the Company also is parent of The Peoples
Insurance Agency, Inc. The Peoples Bank has assets of approximately $1.4 billion
and operates 40 community bank offices in 27 north and north-central Mississippi
cities.
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Note To Investors
This news release contains forward-looking statements regarding The Peoples
Holding Company. All forward-looking statements involve risk and uncertainty and
a number of factors could cause actual results to differ materially from the
anticipated results or other expectations expressed in the forward-looking
statements. Those factors include, but are not limited to, interest rate
fluctuations, regulatory changes, portfolio performance and other factors
discussed in our recent filings with the Securities and Exchange Commission.
THE PEOPLES HOLDING COMPANY
Summary Financial Highlights (Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended
March 31,
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Earnings Summary 2003 2002
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Net interest income ............................... $ 12,481 $ 12,439
Provision for loan losses ......................... 767 1,125
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Net interest income after provision
for loan losses ................................. 11,714 11,314
Noninterest income ................................ 7,575 6,609
Noninterest expenses .............................. 12,830 12,298
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Income before provision for income taxes and
cumulative effect of accounting change .......... 6,459 5,625
Provision for income taxes ........................ 1,907 1,560
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Income before cumulative effect of
accounting change ............................... 4,552 4,065
Cumulative effect of accounting change ............ -- (1,300)
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Net income ........................................ $ 4,552 $ 2,765
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Basic and diluted earnings per share:
Income before cumulative effect of
accounting change ............................. $ 0.82 $ 0.72
Cumulative effect of accounting change .......... -- (0.23)
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Net income ...................................... $ 0.82 $ 0.49
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Weighted average shares outstanding - Basic ....... 5,573,528 5,657,726
Weighted average shares outstanding - Diluted ..... 5,579,515 5,660,727
Selected Ratios
Net interest rate spread .......................... 4.06% 4.17%
Net interest margin ............................... 4.39% 4.59%
Noninterest expense ratio ......................... 3.79% 3.82%
Net overhead ratio ................................ 1.65% 1.88%
Efficiency ratio .................................. 61.49% 62.03%
Return on average assets .......................... 1.29% 1.09%
Return on average equity .......................... 13.15% 11.37%
March 31, Dec. 31,
Balance Sheet Summary: 2003 2002
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Total assets ...................................... $ 1,392,887 $ 1,344,512
Loans, net ........................................ 857,004 863,308
Deposits .......................................... 1,158,559 1,099,048
Shareholders' equity .............................. 135,053 132,778
Book value per common share ....................... 24.23 23.82
Financial information contained in this news release is derived from the
unaudited Condensed Balance Sheets and unaudited Condensed Statements of Income
for the indicated periods. Additional financial information is available on the
Company's website (www.thepeoplesbankandtrust.com) under the Financial Releases
section of Investor Relations.
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