e11vk
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2009
or
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number 01-12103
A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
Peoples
Financial Corporation 401(k) Profit Sharing Plan
Howard and Lameuse Avenues
Biloxi, Mississippi 39533
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
Peoples Financial Corporation
Howard and Lameuse Avenues
Biloxi, Mississippi 39533
Peoples Financial Corporation 401(k) Profit Sharing Plan
Table of Contents
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3 |
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Financial Statements: |
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4 |
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5 |
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6 15 |
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Supplemental Schedule: |
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16 |
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EX-23 |
2
Report of Independent Registered Public Accounting Firm
To The Audit Committee of Peoples Financial Corporation
Peoples Financial Corporation 401(k) Profit Sharing Plan
We have audited the accompanying statements of net assets available for benefits of Peoples
Financial Corporation 401(k) Profit Sharing Plan (the Plan) as of December 31, 2009 and 2008, and
the related statement of changes in net assets available for benefits for the year ended December
31, 2009. These financial statements are the responsibility of the Plans management. Our
responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the auditing standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the net assets available for benefits of Peoples Financial Corporation 401(k) Profit
Sharing Plan as of December 31, 2009 and 2008, and the changes in net assets available for benefits
for the year ended December 31, 2009, in conformity with accounting principles generally accepted
in the United States of America.
Our audits of the Plans financial statements as of and for the year ended December 31, 2009, were
conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.
The supplemental Schedule of Assets (Held at End of Year) is presented for the purpose of
additional analysis and is not a required part of the basic financial statements, but is
supplementary information required by the United States Department of Labor Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This
supplemental schedule is the responsibility of the Plans management and has been subjected to the
auditing procedures applied in our audits of the basic financial statements for the year ended
December 31, 2009, and, in our opinion, is fairly stated in all material respects when considered
in relation to the basic financial statements taken as a whole.
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/s/ PORTER KEADLE MOORE, LLP
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Atlanta, Georgia
June 22, 2010
3
Peoples Financial Corporation 401(k) Profit Sharing Plan
Statements of Net Assets Available for Benefits
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December 31, |
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2009 |
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2008 |
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Assets |
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Cash |
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$ |
91,181 |
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$ |
95,892 |
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Investments at fair value: |
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Mutual funds |
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6,042,928 |
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4,492,367 |
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Common stock |
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1,311,331 |
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1,068,196 |
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Investment contract |
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4,923,771 |
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3,987,190 |
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Wrap contract |
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35,726 |
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32,791 |
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Total investments |
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12,313,756 |
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9,580,544 |
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Contributions receivable |
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196 |
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1,154 |
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Total assets |
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12,405,133 |
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9,677,590 |
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Liabilities |
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Other |
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72 |
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Total liabilities |
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72 |
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Net assets reflecting all investments at fair value |
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12,405,133 |
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9,677,518 |
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Adjustment from fair value to contract value for
fully-benefit responsive investment contract |
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148,117 |
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607,805 |
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Net assets available for benefits |
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$ |
12,553,250 |
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$ |
10,285,323 |
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See Notes to Financial Statements.
4
Peoples Financial Corporation 401(k) Profit Sharing Plan
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 2009
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Additions to net assets |
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Investment income: |
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Net change in fair value of investments |
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$ |
1,328,495 |
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Interest |
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143 |
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Dividends |
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115,117 |
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Total investment income |
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1,443,755 |
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Contributions: |
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Employer |
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348,336 |
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Employees |
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612,397 |
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Rollovers |
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31,059 |
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Total contributions |
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991,792 |
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Total additions |
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2,435,547 |
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Deductions from net assets |
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Distributions paid to participants |
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166,836 |
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Other expenses |
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784 |
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Total deductions |
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167,620 |
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Change in net assets available for benefits |
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2,267,927 |
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Net assets available for benefits, beginning of year |
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10,285,323 |
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Net assets available for benefits, end of year |
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$ |
12,553,250 |
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See Notes to Financial Statements.
5
Peoples Financial Corporation 401(k) Profit Sharing Plan
Notes to Financial Statements
NOTE A DESCRIPTION OF PLAN
The following description of the Peoples Financial Corporation (the Company) 401(k) Profit
Sharing Plan (the Plan) provides only general information. Participants should refer to the plan
agreement for a more complete description of the Plans provisions.
General
The Plan is a defined contribution plan covering all employees of the Company who are age 21 or
older and employed in a position requiring the completion of at least 1,000 hours of service per
plan year. Entrance in the Plan is on January 1st or July 1st, following the
employees initial date of eligibility. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
Employer Contributions
A summary of employer contributions is as follows:
Company Matching Contributions: Contributions are determined solely by the Companys Board of
Directors. Contributions can be up to a dollar amount or percentage of included compensation that
is uniformly determined by the Company for all eligible participants. In addition, the Company may
make a discretionary matching contribution to all eligible participants that is allocated equally
as a percentage of 401(k) deferrals that do not exceed a specific dollar amount or a percentage of
included compensation that is uniformly determined by the Company. The matching contribution is
allocated among the investment options according to each participants instructions.
Company Nonelective Contributions: Contributions are determined solely by the Companys
Board of Directors. The allocation for each eligible participant is a uniform percentage
of included compensation. Qualified nonelective contributions will be allocated as a
uniform percentage of included compensation to all eligible participants who are
non-highly compensated employees. The Company nonelective contributions are allocated
among the investment options according to each participants instructions.
Participant Accounts
Each participant will have separate accounts established to reflect the employees interest under
the Plan. A summary of the possible accounts is as follows:
Employer Discretionary Matching Contribution Account:
This account is credited quarterly with the amount of the Employer Discretionary Matching
Contribution allocable to the participant, and with the employees share of
6
the net income (or loss) of the Plan. The employees interest in this account will always be 100%
vested.
Employee Salary Reduction and Voluntary Contribution Account:
Each Participants account is credited with the participants contribution, allocations of the
accounts earnings, and forfeitures of terminated participants non-vested accounts. A participant
may authorize a contribution to the Plan on the employees behalf, a salary reduction contribution
of not less than 1% nor more than the maximum amount allowable under the Internal Revenue Code.
The employees interest in this account will always be 100% vested.
Company Nonelective Contribution Account:
This account is credited with discretionary employer contributions and allocation of plan earnings.
The allocation for each eligible participant is a uniform percentage of included compensation.
Funds contributed by the employer into this fund are allocated among the investment options
according to each participants instructions. The Company nonelective contributions are vested
under a six-year graded vesting schedule based on each employees length of service.
Employee Rollover Contribution Account:
This account is credited with any rollover contributions, if any, made to the Plan and with the
employees share of net income (or loss) of the Plan. This account will always be 100% vested.
Merged Plan Asset Account:
This account is maintained for those participants who had account balances in the Gulf National
Bank Profit Sharing Plan. This account is credited with the allocable net income (or loss) of the
Plan. The employees interest in this account will always be 100% vested.
Payment of Benefits
Upon retirement (as defined), a participant is entitled to receive 100% of his or her account
balance in a lump-sum distribution. Upon the death of a participant, the designated beneficiary is
entitled to receive 100% of the participants account in a lump-sum distribution. In addition,
disabled participants are entitled to 100% of their account balances. Plan participants who
terminate for reasons other than retirement, death or disability are entitled to receive only the
vested portion of their accounts.
Eligible participants are entitled to receive required minimum distributions in annual
installments.
The Plan also allows for certain hardship withdrawals prior to termination of employment. In no
event may the amount of any hardship distribution requested exceed fifty percent of the
Participants vested account balance less earnings on the Participants 401(k) deferrals credited.
7
Upon termination of employment, amounts not vested will be forfeited with such forfeitures being
allocated to the accounts of the remaining active participants in the same proportion that the
compensation of each participant bears to the total compensation of all active participants during
the year.
Participant Loans
Participant loans are not permitted by the Plan.
Plan Amendment
The Plan was amended and restated as of January 1, 2009 to include the mandatory provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (EGRTTA 2001), the Job Creation and
Worker Assistance Act of 2002 (JCWAA) and the Sarbanes-Oxley Act of 2002 (SOA). The Plan has
been in operational compliance since the passing of these laws.
The Plan was subsequently amended to adopt the required changes from the 2006 Cumulative List of
Changes in Plan Qualification Requirements described in section 4 of Revenue Procedure 2005-66 as
modified by Revenue Procedure 2007-44 (effective January 1, 2007) and the Pension Protection Act of
2006 (PPA 06), the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART), the
Emergency Economic Stabilization Act of 2008 (EESA) and the Workers, Retiree, and Employer
Recovery Act of 2008 (WRERA) (all effective January 1, 2009). The Plan has been in operational
compliance since the passing of these laws.
NOTE B SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting
The financial statements of the Plan are prepared using the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America (GAAP).
New Accounting Pronouncements
As of December 31, 2009, the Plan adopted FASB updated guidance regarding fair value measurement of
investments in certain entities that calculate net asset value per share (or its equivalent). This
update applies to investments that do not have a readily determinable fair value and are held by an
entity that is required to report investment assets at fair value. This update creates a practical
expedient to measure the fair value of such investments on the basis of the net asset value per
share (or its equivalent) and requires disclosures by major category of the investments about the
attributes of investments, such as the nature of any restrictions on the investors ability to
redeem its investments at the measurement date, any unfunded commitments, and the investment
strategies of the investees. The adoption of this update did not materially impact the Plans
financial statements.
8
In January 2010, the FASB issued updated guidance to improve disclosures regarding fair value
measurements. This update requires entities to (i) disclose separately the amounts of significant
transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for
the transfers and (ii) present separately (i.e., on a gross basis rather than as one net number),
information about purchases, sales, issuances, and settlements in the roll forward of changes in
Level 3 fair value measurements. The update requires fair value disclosures by class of assets and
liabilities rather than by major category or line item in the statement of financial position.
Disclosures regarding the valuation techniques and inputs used to measure fair value for both
recurring and nonrecurring fair value measurements for assets and liabilities in both Level 2 and
Level 3 are also required. For all portions of the update except the gross presentation of activity
in the Level 3 roll forward, this standard is effective for interim and annual reporting periods
beginning after December 15, 2009. For the gross presentation of activity in the Level 3 roll
forward, this guidance is effective for fiscal years beginning after December 15, 2010. As this
guidance is only disclosure-related, it will not have a material impact on the Plans financial
statements.
Investment Valuation
The Plan has invested in the MetLife Stable Value Fund, a group trust which is a holder of a Met
Managed Guaranteed Interest Contract (GIC). The investment contract is stated at fair value and
is adjusted to contract value (which represent contributions made under the contract, plus interest
earned, less withdrawals and administrative expenses) on the Statement of Net Assets Available for
Benefits. As described in Accounting Standards Codification Topic 962, Defined Contribution
Pension Plans, investment contracts held by a defined-contribution plan are required to be
reported at fair value. However, contract value is the relevant measurement attribute for that
portion of the net assets available for benefits of a defined-contribution plan attributable to
fully benefit-responsive investment contracts because contract value is the amount participants
would receive if they were to initiate permitted transactions under the terms of the Plan. As
required by the FSP, the Statement of Net Assets Available for Benefits presents the fair value of
the Plans investment contract as well as the adjustment of the investment contract from fair value
to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared on a
contract value basis.
On January 1, 2008, the Plan adopted Accounting Standards Codification Topic 820, Fair Value
Measurements and Disclosures, (ASC 820). ASC 820 establishes a framework for measuring assets
and liabilities at fair value and also requires additional disclosures about fair value measures.
That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices
in active markets for identical assets or liabilities (Level 1 measurements) and the lowest
priority to unobservable inputs (Level 3 measurements). The statement requires that assets and
liabilities carried at fair value be classified and disclosed in one of the following categories:
Level 1 Quoted market prices in active markets for identical
9
assets or liabilities, Level 2 Observable market based inputs or unobservable inputs that are
corroborated by market data, or Level 3 Unobservable inputs that are not corroborated by market
data.
The assets or liabilitys fair value measurement level within the fair value hierarchy is based on
the lowest level of any input that is significant to the fair value measurement. Valuation
techniques used need to maximize the use of observable inputs and minimize the use of unobservable
inputs.
The methods described above may produce a fair value calculation that may not be indicative of net
realizable value or reflective of future fair values. Furthermore, while the Plan believes its
valuation methods are appropriate and consistent with other market participants, the use of
different methodologies or assumptions to determine the fair value of certain financial instruments
could result in a different fair value measurement as of the reporting date.
Purchases and sales of securities are recorded on trade-date basis. Interest income is recorded on
the accrual basis and dividends are recorded on the ex-dividend date.
Benefit Payments
Benefit payments to participants are recorded upon distribution.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from
these estimates.
10
NOTE C PARTICIPANTS INVESTMENTS
All investments are held by Fidelity Investments in an account managed by 401(k) Plus, Inc., the
administrator of the Plan. Investments representing more than 5% of net assets were as follows:
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December 31, |
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2009 |
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2008 |
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GIC Group Annuity Contract: |
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MetLife Stable Value Fund |
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$ |
4,959,497 |
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$ |
4,019,981 |
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Registered investment companies (Mutual Funds): |
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Fidelity U.S. Bond Index Fund |
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1,105,571 |
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922,257 |
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Fidelity Spartan U.S. Equity Index Fund |
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640,019 |
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483,053 |
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Brandywine Blue Fund |
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795,646 |
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734,245 |
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BlackRock U.S. Opportunities Fund |
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1,054,239 |
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705,707 |
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Investment in common stock: |
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Peoples Financial Corporation, common stock |
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1,311,331 |
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1,068,196 |
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The following is a description of the valuation methodologies used for assets measured at fair
value. There have been no changes in the methodologies used as of December 31, 2009.
Mutual funds: Valued at the closing price reported on the active market on which the funds are
traded
Common stock: Valued at the closing price reported on the active market on which individual
securities are traded
Guaranteed investment contract: The investment contract is valued at the fluctuating value of the
separate account assets backing the contract and the wrap contract is valued based on the wrap
contract fees provided by the insurance company
11
The following tables set forth by level, within the fair value hierarchy, the Plans assets
measured at fair value on a recurring basis as of December 31, 2009 and 2008:
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Assets at Fair Value as of December 31, 2009 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Mutual funds: |
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Foreign Large Blend |
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$ |
376,736 |
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$ |
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$ |
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$ |
376,736 |
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Global Real Estate |
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150,422 |
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150,422 |
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Intermediate-Term
Bond |
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1,105,571 |
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1,105,571 |
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Large Blend |
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835,905 |
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835,905 |
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Large Growth |
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795,646 |
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795,646 |
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Mid-Cap Growth |
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1,235,489 |
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1,235,489 |
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Mid-Cap Value |
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260,854 |
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260,854 |
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Moderate Allocation |
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249,908 |
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249,908 |
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Small Blend |
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82,220 |
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82,220 |
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Target Date Series |
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670,702 |
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670,702 |
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World Stock |
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279,475 |
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279,475 |
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Total |
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6,042,928 |
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6,042,928 |
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Company common stock |
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1,311,331 |
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1,311,331 |
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Guaranteed
investment contract |
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4,923,771 |
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35,726 |
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4,959,497 |
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$ |
7,354,259 |
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$ |
4,923,771 |
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$ |
35,726 |
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$ |
12,313,756 |
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Assets at Fair Value as of December 31, 2008 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Mutual funds: |
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|
|
|
|
|
|
|
|
|
|
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|
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Foreign Large Blend |
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$ |
247,246 |
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|
$ |
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|
|
$ |
|
|
|
$ |
247,246 |
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Global Real Estate |
|
|
91,631 |
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|
|
|
|
|
|
|
|
|
|
91,631 |
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Intermediate-Term
Bond |
|
|
922,257 |
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|
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|
|
|
|
|
|
|
922,257 |
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Large Blend |
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|
624,281 |
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|
|
|
|
|
|
|
|
|
624,281 |
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Large Growth |
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|
734,245 |
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|
|
|
|
|
|
|
734,245 |
|
Mid-Cap Growth |
|
|
806,281 |
|
|
|
|
|
|
|
|
|
|
|
806,281 |
|
Mid-Cap Value |
|
|
162,411 |
|
|
|
|
|
|
|
|
|
|
|
162,411 |
|
Moderate Allocation |
|
|
186,638 |
|
|
|
|
|
|
|
|
|
|
|
186,638 |
|
Small Blend |
|
|
59,350 |
|
|
|
|
|
|
|
|
|
|
|
59,350 |
|
Target Date Series |
|
|
456,900 |
|
|
|
|
|
|
|
|
|
|
|
456,900 |
|
World Stock |
|
|
201,127 |
|
|
|
|
|
|
|
|
|
|
|
201,127 |
|
|
|
|
Total |
|
|
4,492,367 |
|
|
|
|
|
|
|
|
|
|
|
4,492,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company common stock |
|
|
1,068,196 |
|
|
|
|
|
|
|
|
|
|
|
1,068,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guaranteed
investment contract |
|
|
|
|
|
|
3,987,190 |
|
|
|
32,791 |
|
|
|
4,019,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,560,563 |
|
|
$ |
3,987,190 |
|
|
$ |
32,791 |
|
|
$ |
9,580,544 |
|
|
|
|
12
The following table sets forth a summary of changes in the fair value of the Wrap contract,
the Plans only Level 3 asset, for the year ended December 31, 2009 and 2008:
|
|
|
|
|
|
|
|
|
For the year ended December 31, |
|
2009 |
|
|
2008 |
|
|
|
|
Fair Value, beginning of year |
|
$ |
32,791 |
|
|
$ |
15,814 |
|
Unrealized gain relating to instruments still held
at the reporting date |
|
|
2,935 |
|
|
|
16,977 |
|
|
|
|
Fair Value, end of year |
|
$ |
35,726 |
|
|
$ |
32,791 |
|
|
|
|
During the year ended December 31, 2009, the Plans investments appreciated in fair value and
realized losses on sales as follows:
|
|
|
|
|
Mutual funds |
|
$ |
1,168,148 |
|
Peoples Financial Corporation common stock |
|
|
160,347 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,328,495 |
|
|
|
|
|
NOTE D METLIFE STABLE VALUE FUND
The MetLife Stable Value Fund (the Fund) is fully-benefit responsive. The average yield and
crediting interest rates for such investments were 15.01% and 3.55%, respectively, for 2009 and
(10.29%) and 4.60%, respectively, for 2008. The average yield credited to participants was 3.80%
and 5.11% for 2009 and 2008, respectively. These investments were rated Aa2 and AA- at December 31,
2009.
In a Met Managed GIC, the assets are invested in a MetLife separate account. MetLife guarantees
principal and accrued interest, based on credited interest rates, for participant-initiated
withdrawals as long as the contract remains active. Interest is credited to the contract at
interest rates that reflect the performance of the underlying portfolio. The credited rate resets
quarterly and has a minimum interest rate of 0%. MetLife resets the rate by amortizing the
difference between the market value of the portfolio and the guaranteed value over the weighted
average duration of the Funds investments. Participants receive the principal and accrued
earnings credited to their accounts upon withdrawal for allowed events. These events include
transfers to other investment options, and payments due to retirement, termination of employment,
disability, death and in-service withdrawals as permitted by the Plan.
The Plan may terminate its participation in the contract at any time. If it chooses to do so, the
Plan will receive the lesser of the guaranteed or market value.
13
The sensitivity of an increase or decrease in the Funds market yield, with no other change in
the duration of the underlying portfolio and no contributions or withdrawals, on the weighted
average crediting rate for 2009 and for each quarter in 2010 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual |
|
|
Projected |
|
|
Projected |
|
|
Projected |
|
|
Projected |
|
|
|
12/31/2009 |
|
|
3/31/2010 |
|
|
6/30/2010 |
|
|
9/30/2010 |
|
|
12/31/2010 |
|
Increase of 50% |
|
|
3.30 |
% |
|
|
3.42 |
% |
|
|
3.54 |
% |
|
|
3.66 |
% |
|
|
3.77 |
% |
Increase of 25% |
|
|
3.30 |
% |
|
|
3.37 |
% |
|
|
3.45 |
% |
|
|
3.51 |
% |
|
|
3.58 |
% |
Decrease of 50% |
|
|
3.30 |
% |
|
|
3.22 |
% |
|
|
3.15 |
% |
|
|
3.07 |
% |
|
|
3.01 |
% |
Decrease of 25% |
|
|
3.30 |
% |
|
|
3.27 |
% |
|
|
3.25 |
% |
|
|
3.22 |
% |
|
|
3.20 |
% |
The sensitivity of an increase or decrease in the Funds market yield, with no change in the
duration of the underlying portfolio, no contributions and the immediate withdrawal of 10% of the
fund, on the weighted average crediting rate for 2009 and for each quarter in 2010 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual |
| |
Projected |
| |
Projected |
| |
Projected |
| |
Projected |
|
|
|
12/31/2009 |
| |
3/31/2010 |
| |
6/30/2010 |
| |
9/30/2010 |
| |
12/31/2010 |
|
Increase of 50%
|
|
|
3.30 |
% |
|
|
3.10 |
% |
|
|
3.24 |
% |
|
|
3.36 |
% |
|
|
3.49 |
% |
Increase of 25%
|
|
|
3.30 |
% |
|
|
3.19 |
% |
|
|
3.27 |
% |
|
|
3.34 |
% |
|
|
3.42 |
% |
Decrease of 50%
|
|
|
3.30 |
% |
|
|
3.40 |
% |
|
|
3.31 |
% |
|
|
3.23 |
% |
|
|
3.16 |
% |
Decrease of 25%
|
|
|
3.30 |
% |
|
|
3.33 |
% |
|
|
3.31 |
% |
|
|
3.28 |
% |
|
|
3.25 |
% |
NOTE E
PARTY-IN-INTEREST TRANSACTIONS
Common stock of the Company, the Plan sponsor, is available as one of the investment options for
participants to choose from. The Plan purchased $119,121 (6,478 shares) and sold $36,333
(1,955 shares) of the Companys common stock during the year ended December 31, 2009. Shares held
by the Plan at December 31, 2009 and 2008 had a market value of $1,311,331and $1,068,196,
respectively. In 2009, the Plan received cash dividends of $30,639 from its investment in Company
stock.
Members of management of the Plan sponsor are participants in the Plan; however, there are no
transactions with these individuals other than their participation in the Plan. The Asset
Management and Trust Division of The Peoples Bank, Biloxi, Mississippi, a wholly owned subsidiary
of the Plan Sponsor, serves as trustee of the Plan. The participants in the Plan direct the
investment of their accounts.
NOTE F CONCENTRATION OF MARKET RISK
The Plan has invested a significant portion of its assets in the Companys common stock, which
approximates 10% of the Plans net assets available for benefits as of December 31, 2009. As a
result of the concentration, any significant decline in market value of the stock could adversely
affect individual participant accounts and the net assets of the Plan.
14
NOTE G
COST OF PLAN ADMINISTRATION
The Company absorbs the cost of plan administration. These costs were $6,820 and $16,295 for the
years ended December 31, 2009 and 2008, respectively.
NOTE H PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right under the plan to
terminate the Plan subject to the provisions of ERISA. In the event of plan termination,
participants will become 100% vested in their accounts.
NOTE I
TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service, dated January 31,
2006, stating that the Plan qualifies under the appropriate sections of the Internal Revenue Code
(IRC) and is, therefore, not subject to tax under present income tax law.
15
Peoples Financial Corporation 401(k) Profit Sharing Plan
Schedule H, Line 4i Schedule of Assets (Held at End of Year)
December 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Identity of issuer or |
|
|
|
|
|
|
|
(a) |
|
similar party (b) |
|
Description of assets ( c) |
|
Cost (d) |
|
Fair Value (e) |
|
|
|
|
|
GIC Group Annuity Contracts: |
|
|
|
|
|
|
|
|
Metropolitan Life Insurance Co. |
|
MetLife Stable Value Fund - 33,718 shares |
|
N/A |
|
$ |
4,959,497 |
|
|
|
|
|
Registered investment companies (Mutual Funds): |
|
|
|
|
|
|
|
|
Fidelity Investments |
|
Fidelity U.S. Bond Index Fund - 99,961 shares |
|
N/A |
|
|
1,105,571 |
|
|
|
Fidelity Investments |
|
Fidelity Spartan U.S. Equity Index Fund - 16,232 shares |
|
N/A |
|
|
640,019 |
|
|
|
American Funds |
|
American Funds Fundamental Investors Fund - 5,996 shares |
|
N/A |
|
|
195,886 |
|
|
|
Baron Asset Investments |
|
Baron Growth Fund - 4,388 shares |
|
N/A |
|
|
181,250 |
|
|
|
American Funds |
|
American Funds Cap World Growth & Income Fund - 8,242 shares |
|
N/A |
|
|
279,475 |
|
|
|
American Funds |
|
American Funds Europacific Growth Fund - 9,998shares |
|
N/A |
|
|
376,736 |
|
|
|
First Pacific Advisors |
|
FPA Crescent Fund - 10,069 shares |
|
N/A |
|
|
249,908 |
|
|
|
T. Rowe Price Funds |
|
T. Rowe Price Mid Cap Value Fund - 12,638 shares |
|
N/A |
|
|
260,854 |
|
|
|
Brandywine Funds |
|
Brandywine Blue Fund - 36,853 shares |
|
N/A |
|
|
795,646 |
|
|
|
Third Avenue Funds |
|
Third Avenue Real Estate Value Fund- 7,352 shares |
|
N/A |
|
|
150,422 |
|
|
|
American Century |
|
LIVESTRONG 2015 Portfolio Fund - 17,962 shares |
|
N/A |
|
|
188,598 |
|
|
|
American Century |
|
LIVESTRONG 2025 Portfolio Fund - 36,916 shares |
|
N/A |
|
|
389,093 |
|
|
|
American Century |
|
LIVESTRONG 2035 Portfolio Fund - 8,693 shares |
|
N/A |
|
|
93,011 |
|
|
|
Gamco Investors |
|
Gamco Westwood Fund - 5,980 shares |
|
N/A |
|
|
82,220 |
|
|
|
BlackRock |
|
BlackRock U.S. Opportunities Portfolio Fund - 32,955 shares |
|
N/A |
|
|
1,054,239 |
|
|
|
|
|
Investment in common stock: |
|
|
|
|
|
|
* |
|
Peoples Financial Corporation |
|
Common Stock - 64,534 shares |
|
N/A |
|
|
1,311,331 |
|
|
|
|
|
|
Total |
|
|
|
$ |
12,313,756 |
|
|
|
|
* |
|
Represents party-in-interest |
|
N/A |
|
Due to Plan being fully participant directed, such values are not required. |
See accompanying Report of Independent Registered Public Accounting Firm.
16
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the trustees (or other
persons who administer the employee benefit plan) have duly caused this annual report to be signed
on its behalf by the undersigned thereunto duly authorized.
|
|
|
|
|
|
|
Peoples Financial Corporation
401(k) Profit Sharing Plan
Name of Plan |
|
|
|
|
|
|
|
|
/s/ Thomas H. Wicks
|
|
|
|
|
The Asset Management and Trust
Division of The Peoples Bank, Biloxi, Mississippi; Trustee |
|
|
|
|
By: Thomas H. Wicks, Trust Officer, |
|
|
|
|
The Peoples Bank, Biloxi, Mississippi |
|
|
|
|
|
|
|
|
|
June 25, 2010 |
|
|
|
|
Date
|
|
|
17