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CHRISTMAS COMES EARLY FOR TWO LOCAL NONPROFITS,

THANKS TO THE PEOPLES BANK

Long Beach Interfaith Hospitality Network and Gulf Coast Women’s Center for Nonviolence each receive $5,000 from bank in annual campaign

BILOXI, MS (January 5, 2009)— The Peoples Bank played early Santa Claus when officials presented two checks for $5,000 each to a pair of Gulf Coast nonprofit organizations just days before Christmas.

The Peoples Bank presented two donations of $5,000 each to representatives of Long Beach interfaith Hospitality Network and Gulf Coast Women’s Center for Nonviolence in ceremonies at the bank’s Main Office in Biloxi.  The donations represent the bank’s share of the 2009 fund-raising drive for two nonprofit organizations selected by bank employees.

Employees of The Peoples Bank will generate another set of donations for the two groups through their own efforts during the year to supplement the bank’s corporate donation. In 2008, bank employees raised more than $20,000 for Pink Hearts and Hope Haven Children’s Home.

“The severest recession in our lifetime across the country makes it even more important to maintain our support of local nonprofit organizations that today are called upon more than ever,” said Chevis C. Swetman, chairman and CEO of the bank. “Our employees chose these two very worthy organizations to receive our annual corporate donation in time for Christmas, so they can put the funds to good use right away,” he added.

The mission of the Interfaith Hospitality Network is to mobilize communities to help low-income families achieve and sustain independence. The local organization serves as a catalyst for community initiatives such as transitional housing, parenting classes, and job training programs. Bob Jacobs, director, accepted the check on behalf of the Long Beach Interfaith Hospitality Network.

The Gulf Coast Women's Center for Nonviolence was founded in 1977, first as a crisis line and later as a safe house to provide for the safety of the victims of domestic violence. During the past 30 years, the Center has developed into a comprehensive array of services for adult and child victims of violence, including domestic violence, dating violence, sexual assault, stalking, and family members of homicide victims. Lynn Stalnaker and Kim Pickard received the donation on behalf of the Center.

Founded in 1896, with $875 million in assets as of September 30, 2008, The Peoples Bank operates 16 branches along the Mississippi Gulf Coast in Hancock, Harrison, Jackson and Stone counties. In addition to a comprehensive range of retail and commercial banking services, the bank also operates a trust and investment services department that has provided customers with financial, estate and retirement planning services since 1936. The bank also formed a mortgage loan department in July, 2007, to provide residential loans for primary, secondary and multi-family homes up to four units.

The Peoples Bank is a wholly-owned subsidiary of Peoples Financial Corporation, listed on the NASDAQ Capital Market under the symbol PFBX. Additional information is available on the Internet at http://www.thepeoples.com/.