Core Viewpoint - Peoples Financial Corporation reported a significant decrease in net income for both the fourth quarter and the full year of 2025 compared to 2024, primarily due to lower interest income and the absence of a prior year tax benefit [1][4][5]. Financial Performance - Net income for Q4 2025 was $716,000, down from $1,528,000 in Q4 2024, resulting in earnings per share of $0.16 compared to $0.33 in the previous year [2][18]. - For the full year 2025, net income decreased to $3,911,000 from $21,703,000 in 2024, with earnings per share dropping to $0.85 from $4.66 [4][18]. Revenue and Expenses - Total interest income for Q4 2025 decreased by $1,071,000 to $6,569,000, while total interest expense decreased by $134,000 to $1,930,000 [3][18]. - For the year ended 2025, total interest income fell by $4,592,000 to $28,502,000, and total interest expense decreased by $1,496,000 to $8,147,000 [5][18]. Asset Quality and Equity - Total shareholders' equity increased by $10,666,000 to $100,667,000 as of December 31, 2025, partly due to earnings and a reduction in unrealized losses on securities [9][22]. - The company reported unrealized losses on available-for-sale securities of $28,929,000 as of December 31, 2025, down from $38,006,000 in 2024, attributed to higher interest rates affecting market values [9][22]. Liquidity and Deposits - Total deposits decreased by $116,301,000 to $604,429,000 as of December 31, 2025, primarily due to the loss of large public fund deposits [12][22]. - The bank's leverage ratio remained strong at 15.76% as of December 31, 2025, unaffected by unrealized losses due to a prior opt-out election [10][22]. Operational Insights - The company maintains a well-capitalized balance sheet with strong capital and liquidity, providing a full range of banking services in local markets [11]. - The bank's leadership is focused on maintaining high-quality assets and monitoring economic conditions closely [8].