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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
     
þ   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2009
or
     
o   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
         
    Page  
    3  
 
       
Financial Statements:
       
 
       
    4  
 
       
    5  
 
       
    6 — 15  
 
       
Supplemental Schedule:
       
 
       
    16  
 EX-23

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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 Plan’s 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 Plan’s 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 Plan’s 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.
         
     
  /s/ PORTER KEADLE MOORE, LLP    
     
     
 
Atlanta, Georgia
June 22, 2010

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Peoples Financial Corporation 401(k) Profit Sharing Plan
Statements of Net Assets Available for Benefits
                 
    December 31,  
    2009     2008  
Assets
               
 
               
Cash
  $ 91,181     $ 95,892  
 
           
 
               
Investments at fair value:
               
Mutual funds
    6,042,928       4,492,367  
Common stock
    1,311,331       1,068,196  
Investment contract
    4,923,771       3,987,190  
Wrap contract
    35,726       32,791  
 
           
Total investments
    12,313,756       9,580,544  
 
               
Contributions receivable
    196       1,154  
 
           
 
               
Total assets
    12,405,133       9,677,590  
 
           
 
               
Liabilities
               
 
               
Other
            72  
             
 
               
Total liabilities
            72  
 
           
 
               
Net assets reflecting all investments at fair value
    12,405,133       9,677,518  
 
               
Adjustment from fair value to contract value for fully-benefit responsive investment contract
    148,117       607,805  
 
           
 
               
Net assets available for benefits
  $ 12,553,250     $ 10,285,323  
 
           
See Notes to Financial Statements.

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Peoples Financial Corporation 401(k) Profit Sharing Plan
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 2009
         
Additions to net assets
       
Investment income:
       
Net change in fair value of investments
  $ 1,328,495  
Interest
    143  
Dividends
    115,117  
 
     
Total investment income
    1,443,755  
 
     
 
       
Contributions:
       
Employer
    348,336  
Employees
    612,397  
Rollovers
    31,059  
 
     
Total contributions
    991,792  
 
     
 
       
Total additions
    2,435,547  
 
     
 
       
Deductions from net assets
       
Distributions paid to participants
    166,836  
Other expenses
    784  
 
     
Total deductions
    167,620  
 
     
 
       
Change in net assets available for benefits
    2,267,927  
 
       
Net assets available for benefits, beginning of year
    10,285,323  
 
     
 
       
Net assets available for benefits, end of year
  $ 12,553,250  
 
     
See Notes to Financial Statements.

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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 Plan’s 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 employee’s 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 Company’s 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 participant’s instructions.
Company Nonelective Contributions: Contributions are determined solely by the Company’s 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 participant’s instructions.
Participant Accounts
Each participant will have separate accounts established to reflect the employee’s 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 employee’s share of

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the net income (or loss) of the Plan. The employee’s interest in this account will always be 100% vested.
Employee Salary Reduction and Voluntary Contribution Account:
Each Participant’s account is credited with the participant’s contribution, allocations of the account’s earnings, and forfeitures of terminated participants’ non-vested accounts. A participant may authorize a contribution to the Plan on the employee’s behalf, a salary reduction contribution of not less than 1% nor more than the maximum amount allowable under the Internal Revenue Code. The employee’s 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 participant’s instructions. The Company nonelective contributions are vested under a six-year graded vesting schedule based on each employee’s length of service.
Employee Rollover Contribution Account:
This account is credited with any rollover contributions, if any, made to the Plan and with the employee’s 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 employee’s 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 participant’s 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 Participant’s vested account balance less earnings on the Participant’s 401(k) deferrals credited.

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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 investor’s 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 Plan’s financial statements.

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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 Plan’s 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 Plan’s 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

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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 asset’s or liability’s 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.

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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:
                 
December 31,   2009     2008  
 
GIC — Group Annuity Contract:
               
MetLife Stable Value Fund
  $ 4,959,497     $ 4,019,981  
Registered investment companies (Mutual Funds):
               
Fidelity U.S. Bond Index Fund
    1,105,571       922,257  
Fidelity Spartan U.S. Equity Index Fund
    640,019       483,053  
Brandywine Blue Fund
    795,646       734,245  
BlackRock U.S. Opportunities Fund
    1,054,239       705,707  
Investment in common stock:
               
Peoples Financial Corporation, common stock
    1,311,331       1,068,196  
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

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The following tables set forth by level, within the fair value hierarchy, the Plan’s assets measured at fair value on a recurring basis as of December 31, 2009 and 2008:
                                 
    Assets at Fair Value as of December 31, 2009        
    Level 1     Level 2     Level 3     Total  
     
Mutual funds:
                               
Foreign Large Blend
  $ 376,736     $       $       $ 376,736  
Global Real Estate
    150,422                       150,422  
Intermediate-Term Bond
    1,105,571                       1,105,571  
Large Blend
    835,905                       835,905  
Large Growth
    795,646                       795,646  
Mid-Cap Growth
    1,235,489                       1,235,489  
Mid-Cap Value
    260,854                       260,854  
Moderate Allocation
    249,908                       249,908  
Small Blend
    82,220                       82,220  
Target Date Series
    670,702                       670,702  
World Stock
    279,475                       279,475  
     
Total
    6,042,928                       6,042,928  
 
                               
Company common stock
    1,311,331                       1,311,331  
 
                               
Guaranteed investment contract
            4,923,771       35,726       4,959,497  
     
 
                               
 
  $ 7,354,259     $ 4,923,771     $ 35,726     $ 12,313,756  
     
                                 
    Assets at Fair Value as of December 31, 2008        
    Level 1     Level 2     Level 3     Total  
     
Mutual funds:
                               
Foreign Large Blend
  $ 247,246     $       $       $ 247,246  
Global Real Estate
    91,631                       91,631  
Intermediate-Term Bond
    922,257                       922,257  
Large Blend
    624,281                       624,281  
Large Growth
    734,245                       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  
     

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The following table sets forth a summary of changes in the fair value of the Wrap contract, the Plan’s 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 Plan’s 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 Fund’s 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.

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The sensitivity of an increase or decrease in the Fund’s 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 Fund’s 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 Company’s 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 Company’s common stock, which approximates 10% of the Plan’s 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.

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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.

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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.

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Table of Contents

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
   

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