PMHG Prime Meridian Holding Company (QX)

Florida	333-191801	27-2980805
(State or other jurisdiction of incorporation)	(Commission file number)	(IRS employer identification no.)

1471 Timberlane Road Tallahassee, FL	32312
(Address of principal executive offices)	(Zip Code)

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1933 (§240.12b-2 of this chapter)   Emerging growth company            ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Title of each class			Trading Symbol(s)	Name of exchange on which registered
None			N/A	N/A

	(d)	Exhibits.
		99.1               Press release dated July 26, 2024
		99.2               Investor Presentation Q2 2024
		104                Cover Page Interactive Data File (embedded within the Inline XBRL document)

	PRIME MERIDIAN HOLDING COMPANY
	By:	/s/ Clint F. Weber
		Clint F. Weber
		Chief Financial Officer and Executive Vice President

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

Prime Meridian Holding Company Reports

Second QUARTER 2024 RESULTS

 

Second Quarter Highlights - Prime Meridian Holding Company and Subsidiary (Unaudited)

(dollars in thousands except per share amounts)

 

		2Q'24				1Q'24				4Q'23				3Q'23				2Q'23
Net earnings		$	1,774			$	1,931			$	1,830			$	2,120			$	2,257
Book value per share		$	25.35			$	24.71			$	24.53			$	22.91			$	23.25
Earnings per share - Basic		$	0.54			$	0.59			$	0.56			$	0.66			$	0.71
Earnings per share - Diluted		$	0.54			$	0.59			$	0.55			$	0.66			$	0.70
Weighted-average basic shares outstanding			3,295,423				3,275,401				3,259,247				3,214,323				3,189,353
Weighted-average diluted shares outstanding			3,310,628				3,298,555				3,299,212				3,235,920				3,201,531
Return on average assets(1)			0.81	%			0.91	%			0.87	%			1.03	%			1.10	%
Return on average equity(1)			8.70				9.61				9.85				11.31				12.31
Average yield on earning assets(1)			5.63				5.44				5.40				5.21				4.98
Net interest margin(1)			3.55				3.51				3.61				3.68				3.78
Efficiency ratio(2)			65.02				63.81				59.99				61.45				57.84
Nonperforming assets/total assets(3)			0.34				0.40				0.40				0.19				0.17

 

(1) Quarterly ratios have been annualized on a 30/360 basis.

(2) Efficiency Ratio represents noninterest expense divided by the sum of net interest income plus noninterest income. (3) Nonperforming assets include loans greater than 90 days past due and nonaccrual loans.

 

 

•	Book value per share increased $2.10, or 9.0% since 2Q'23 to $25.35.
•	For 2Q'24, the return on average assets was 0.81% and the return on average equity was 8.70%.
•	Pre-tax pre-provision return on assets was 1.27% and pre-tax pre-provision return on equity was 13.59% for 2Q'24. This is considered a non-GAAP financial measure and additional information, including a reconciliation, can be found on page 10.
•	Gross loan balances increased $38.3 million, or 5.9% (11.8% annualized), since December 31, 2023 with most growth occurring in residential, home equity and construction real estate loans.
•	Since December 31, 2023, total deposits increased $41.7 million, or 5.6% (11.1% annualized), to $790.4 million.  Growth occurred in all categories with the majority of growth occurring in time deposits and noninterest bearing accounts.
•	At June 30, 2024, available secured and unsecured borrowing capacity was $177.9 million through various sources including the Federal Home Loan Bank of Atlanta (FHLB) and lines of credit with several banks. When combined with maximum available brokered and wholesale funding capacity of $223.3 million, off-balance sheet funding sources total $401.2 million.
•	At June 30, 2024, on-balance sheet liquidity was $144.8 million, consisting of cash and cash equivalents and unpledged debt securities at fair value. Total on-balance sheet and off-balance sheet liquidity sources total $546.0 million, representing 69.1% of total deposits.
•	The Bank remains well capitalized with a Tier 1 Leverage ratio of 10.32% and a Total Risk Based Capital Ratio of 14.09% at June 30, 2024.

 

 

Earnings Summary (Unaudited)

(dollars in thousands)

														Change 2Q'24 vs.								For the Six Months Ended June 30,
		2Q'24				1Q'24				2Q'23				1Q'24				2Q'23				2024				2023				% Change
Net interest income		$	7,394			$	7,133			$	7,353				3.7	%			0.6	%		$	14,527			$	14,908				(2.6	)%
Credit loss expense			444				211				325				110.4				36.6				655				568				15.3
Noninterest income			527				453				463				16.3				13.8				980				904				8.4
Noninterest expense			5,150				4,841				4,521				6.4				13.9				9,991				8,976				11.3
Income taxes			553				603				713				(8.3	)			(22.4	)			1,156				1,510				(23.4	)
Net earnings		$	1,774			$	1,931			$	2,257				(8.1	)%			(21.4	)%		$	3,705			$	4,758				(22.1	)%

 

 

Net Interest Income (Unaudited)

(dollars in thousands)

														Change 2Q'24 vs.								For the Six Months Ended June 30,
		2Q'24				1Q'24				2Q'23				1Q'24				2Q'23				2024				2023				% Change
Interest income:
Loans		$	10,627			$	9,962			$	8,570				6.7	%			24.0	%		$	20,589			$	16,614				23.9	%
Debt securities			852				896				925				(4.9	)			(7.9	)			1,748				1,858				(5.9	)
Other			259				207				184				25.1				40.8				466				406				14.8
Total interest income			11,738				11,065				9,679				6.1	%			21.3	%			22,803				18,878				20.8	%
Interest expense:
Deposits			4,090				3,677				1,917				11.2	%			113.4	%			7,767				3,450				125.1	%
FHLB advances and other borrowings			254				255				409				(0.4	)			(37.9	)			509				520				(2.1	)
Total interest expense			4,344				3,932				2,326				10.5				86.8				8,276				3,970				108.5
Net interest income		$	7,394			$	7,133			$	7,353				3.7	%			0.6	%		$	14,527			$	14,908				(2.6	)%

 

Volume and rate increases on loans in particular helped boost interest income for the three and six months ended June 30, 2024; however, a higher cost of funds and lower net interest rate spread continued to temper growth in net interest income. 

 

The Company reported net interest income of $7.4 million for 2Q'24, an increase of $261,000, or 3.7%, from the linked quarter and an increase of $41,000, or 0.6% from 2Q'23. Average earning assets were up $20.4 million, or 2.5%, over the linked quarter and $55.3 million, or 7.1%, over 2Q'23 while the yield on average earning assets was 5.63% (2Q'24), compared to 5.44% (1Q’24) and 4.98% (2Q'23). The average cost of interest-bearing liabilities has risen from 1.72% in 2Q'23 to 2.96% in 2Q'24, reflecting the rising rate environment and a change in funding mix.  The Company's net interest margin ("NIM") for the second quarter of 2024 was 3.55%, compared to 3.51% (1Q'24) and 3.78% (2Q'23). 

 

For the six months ended June 30, 2024, net interest income was down 2.6% as deposit costs rose faster than loan yields and there was a shift in the deposit mix toward higher-yielding accounts.  Average earning assets increased $46.6 million, or 6.0%, while the Company's NIM was 3.51% for the six months ended June 30, 2024 compared to 3.81% for the six months ended June 30, 2023.

 

 

Credit Loss Expense

 

At June 30, 2024, the allowance for credit losses for loans was $5.3 million, representing 0.77% to total loans (this excludes the allowance for credit losses for unfunded commitments of $158,000). Of the $803,000 total charge-off amount, $780,0000 relates to five commercial loans that were charged off during the second quarter, with $765,000 of that amount linked to two previously identified as impaired loan relationships. The following table presents detailed information related to credit loss expense related to loans for the periods indicated. 

 

		Three Months Ended
		June 30, 2024				March 31, 2024				Change
Beginning balance		$	5,796			$	5,609			$	187
Charge-offs			(803	)			(27	)			(776	)
Recoveries			3				3				-
Net (charge-offs) recoveries			(800	)			(24	)			(776	)
Credit loss expense (funded portion)			286				211				75
Ending balance		$	5,282			$	5,796			$	(514	)
Allowance for credit losses for loans to total loans, gross			0.77	%			0.86	%

 

 

Noninterest income (Unaudited)

(dollars in thousands)

 

														Change 2Q'24 vs.								For the Six Months Ended June 30,
		2Q'24				1Q'24				2Q'23				1Q'24				2Q'23				2024				2023				% Change
Service charges and fees on deposit accounts		$	78			$	69			$	84				13.0	%			(7.1	)%		$	147			$	169				(13.0	)%
Debit card/ATM revenue, net			164				158				149				3.8				10.1				322				300				7.3
Mortgage banking revenue, net			125				71				75				76.1				66.7				196				129				51.9
Income from bank-owned life insurance			102				100				96				2.0				6.3				202				190				6.3
Other income			58				55				59				5.5				(1.7	)			113				116				(2.6	)
Total noninterest income		$	527			$	453			$	463				16.3	%			13.8	%		$	980			$	904				8.4	%

 

Compared to the linked quarter and the same periods a year ago, the increase in noninterest income is mostly attributed to mortgage banking revenue which posted strong results in the first half of the second quarter but has since slowed down.  Management expects continued fluctuations in mortgage banking revenue activity due to uncertainty in the rate environment and less inventory than demand.  Fees from debit card/ATM activity also continued to show steady growth. 

 

Noninterest expense (Unaudited)

(dollars in thousands)

														Change 2Q'24 vs.								For the Six Months Ended June 30,
		2Q'24				1Q'24				2Q'23				1Q'24				2Q'23				2024				2023				% Change
Salaries and employee benefits		$	3,024			$	2,865			$	2,743				5.5	%			10.2	%		$	5,889			$	5,495				7.2	%
Occupancy and equipment			425				405				399				4.9				6.5				830				808				2.7
Professional fees			142				154				132				(7.8	)			7.6				296				267				10.9
Marketing			299				274				250				9.1				19.6				573				473				21.1
FDIC assessment			106				108				87				(1.9	)			21.8				214				171				25.1
Software maintenance, amortization and other			541				404				294				33.9				84.0				945				571				65.5
Other			613				631				616				(2.9	)			(0.5	)			1,244				1,191				4.5
Total noninterest expense		$	5,150			$	4,841			$	4,521				6.4	%			13.9	%		$	9,991			$	8,976				11.3	%

 

Operating expenses were up 6.4% over the linked quarter and 13.9% over the second quarter of 2023 due primarily to increased expense for salaries and employee benefits and software maintenance, amortization and other. The Company completed a core conversion in the fourth quarter of 2023 and some additional, mostly one-time, expenses related to the conversion were paid during the second quarter in addition to some routine expense for software maintenance. Operating expenses were up 11.3% over the six-month period also due mostly to higher compensation expense and higher expenses related to the core conversion, followed by higher marketing expense. FTEs have increased from 108 at June 30, 2023 to 113 at June 30, 2024. The Company's efficiency ratio was 65.02% in 2Q'24, compared to 63.81% in 1Q'24 and 57.84% in 2Q'23.

 

Financial Condition

 

At June 30, 2024, the Company reported $893.4 million in total assets, $790.4 million in deposits, and $684.8 million in net portfolio loans. This compares to $854.5 million in total assets, $748.7 million in deposits, and $646.1 million in net portfolio loans at December 31, 2023.  The Company's loan to deposit ratio at June 30, 2024 was 87.3%. Gross loans increased $38.3 million, or 5.9%, since December 31, 2023 with residential and home equity and construction loans reporting the largest dollar volume increases. At June 30, 2024, the allowance for credit losses on loans was $5.3 million representing 0.77% of gross loans compared to $5.6 million, or 0.86% of gross loans, at December 31, 2023. 

 

Prime Meridian Holding Company and Subsidiary

Loans by Class

(dollars in thousands)

 

		June 30, 2024								December 31, 2023
		Unaudited								Audited
		Amount				% of Total				Amount(1)				% of Total
Commercial real estate		$	212,711				30.8	%		$	208,429				32.0	%
Residential real estate and home equity			290,546				42.1				273,383				41.9
Construction			90,166				13.1				78,197				12.0
Commercial			90,926				13.2				85,983				13.2
Consumer			5,909				0.8				5,936				0.9
Total loans			690,258				100.0	%			651,928				100.0	%
Net deferred loan fees			(214	)							(192	)
Allowance for credit losses			(5,282	)							(5,609	)
Loans, net		$	684,762							$	646,127

 

⁽¹⁾ Certain loans as of December 31, 2023 were reclassed to conform with the current loan class presentation.

 

 

 

 

 

 

Deposit balances increased $41.7 million, or 5.6%, since December 31, 2023.  Noninterest bearing demand deposits and time deposits increased $16.7 million and $22.6 million, respectively, since December 31, 2023, while savings, NOW and money-market accounts increased $2.3 million. Total stockholders’ equity was $83.5 million, or 9.35% of total assets, at June 30, 2024, compared to $80.0 million at December 31, 2023 or 9.36% of total assets.  Retained earnings drove the increase in equity and offset common stock dividends of $818,000 ($0.25 per common share) paid during 1Q'24.  At June 30, 2024, book value per share was $25.35 with 3,293,863 common shares outstanding.

 

As of June 30, 2024, the Bank was considered to be “well capitalized” with a Tier 1 Leverage Capital Ratio of 10.32%, a 13.29% Common Equity Tier 1 Capital Ratio, a 13.29% Tier 1 Risk-Based Capital Ratio, and a 14.09% Total Risk-Based Capital Ratio.  The Company maintains a $15 million, 5-year revolving Line of Credit, enhancing its liquidity sources to support the ongoing capital needs of the Bank. The Line of Credit matures in August 2025 and had a zero outstanding balance at June 30, 2024. As of June 30, 2024, the Company reported $10 million in FHLB advances with a weighted average interest rate of 4.33%. Borrowed funds represented 1.2% of total liabilities at June 30, 2024 and interest expense totaled $509,000 for FHLB advances and other borrowings for the six months ended June 30, 2024.

 

 

Asset Quality

 

There were nine (9) nonperforming loans totaling $3.0 million at  June 30, 2024.  Charge-offs during the six months ended June 30, 2024 totaled $803,000 and were mostly related to two previously identified impaired commercial loans. Management believes that the allowance for credit losses for loans which was $5.3 million at June 30, 2024 is adequate. 

 

 

 

About Prime Meridian Holding Company

 

Headquartered in Tallahassee, Florida, Prime Meridian Holding Company (OTCQX: PMHG) offers a broad range of banking services through its wholly owned subsidiary, Prime Meridian Bank, a Florida state-chartered non-member bank. Founded in 2008, the Bank now serves the Tallahassee and Lakeland/Winter Haven Metropolitan Statistical Areas (MSA), including clients in North and Central Florida as well as South Georgia and South Alabama. The Bank currently has four Florida locations: two in Tallahassee, Florida, one in Crawfordville, Florida, and one in Lakeland, Florida. As of June 30, 2024, the Bank had 113 full-time equivalent employees. For more information about Prime Meridian Holding Company, please visit www.primemeridianbank.com.

 

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “is confident that” and similar expressions are intended to identify these forward-looking statements. These forward-looking statements involve risk and uncertainty and a variety of factors could cause our actual results and experience to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. We do not have a policy of updating or revising forward-looking statements except as otherwise required by law, and silence by management over time should not be construed to mean that actual events are occurring as estimated in such forward-looking statements.

 

About Non-GAAP Financial Measures

 

Certain financial measures and ratios we present including "pre-tax, pre-provision ("PTPP") net earnings," "PTPP return on average common equity," "PTPP return on average assets," and "adjusted average loan yield" are supplemental measures that are not required by, or are not presented in accordance with, accounting principles generally accepted in the United States of America ("GAAP"). We refer to those financial measures and ratios as "non-GAAP financial measures." We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results.

 

We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present, and future periods.

 

These non-GAAP measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures is included at the end of the financial statement tables.

 

 

 

Tables Follow

 

 

 

 

 

 

Prime Meridian Holding Company and Subsidiary

Condensed Consolidated Statements of Earnings (Unaudited)

(in thousands except per share amounts)

 

		2Q'24				1Q'24				4Q'23				3Q'23				2Q'23
Interest income:
Loans		$	10,627			$	9,962			$	9,658			$	9,019			$	8,570
Debt securities			852				896				921				919				925
Other			259				207				287				244				184
Total interest income			11,738				11,065				10,866				10,182				9,679
Interest expense:
Deposits			4,090				3,677				3,351				2,691				1,917
FHLB advances and other borrowings			254				255				262				304				409
Total interest expense			4,344				3,932				3,613				2,995				2,326
Net interest income			7,394				7,133				7,253				7,187				7,353
Credit loss expense			444				211				707				175				325
Net interest income after credit loss expense			6,950				6,922				6,546				7,012				7,028
Noninterest income:
Service charges and fees on deposit accounts			78				69				96				92				84
Debit card/ATM revenue, net			164				158				136				137				149
Mortgage banking revenue, net			125				71				102				121				75
Income from bank-owned life insurance			102				100				99				100				96
Other income			58				55				59				49				59
Total noninterest income			527				453				492				499				463
Noninterest expense:
Salaries and employee benefits			3,024				2,865				2,813				2,864				2,743
Occupancy and equipment			425				405				412				427				399
Professional fees			142				154				143				149				132
Marketing			299				274				215				215				250
FDIC assessment			106				108				85				104				87
Software maintenance, amortization and other			541				404				302				341				294
Other			613				631				676				623				616
Total noninterest expense			5,150				4,841				4,646				4,723				4,521
Earnings before income taxes			2,327				2,534				2,392				2,788				2,970
Income taxes			553				603				562				668				713
Net earnings		$	1,774			$	1,931			$	1,830			$	2,120			$	2,257
Basic earnings per common share		$	0.54			$	0.59			$	0.56			$	0.66			$	0.71
Diluted earnings per common share		$	0.54			$	0.59			$	0.55			$	0.66			$	0.70

 

 

Prime Meridian Holding Company and Subsidiary

Condensed Consolidated Statements of Earnings

(in thousands, except per share amounts)

 

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
		Unaudited								Unaudited
Interest income:
Loans		$	10,627			$	8,570			$	20,589			$	16,614
Debt securities			852				925				1,748				1,858
Other			259				184				466				406
Total interest income			11,738				9,679				22,803				18,878
Interest expense:
Deposits			4,090				1,917				7,767				3,450
FHLB advances and other borrowings			254				409				509				520
Total interest expense			4,344				2,326				8,276				3,970
Net interest income			7,394				7,353				14,527				14,908
Credit loss expense			444				325				655				568
Net interest income after credit loss expense			6,950				7,028				13,872				14,340
Noninterest income:
Service charges and fees on deposit accounts			78				84				147				169
Debit card/ATM revenue, net			164				149				322				300
Mortgage banking revenue, net			125				75				196				129
Income from bank-owned life insurance			102				96				202				190
Other income			58				59				113				116
Total noninterest income			527				463				980				904
Noninterest expense:
Salaries and employee benefits			3,024				2,743				5,889				5,495
Occupancy and equipment			425				399				830				808
Professional fees			142				132				296				267
Marketing			299				250				573				473
FDIC assessment			106				87				214				171
Software maintenance, amortization and other			541				294				945				571
Other			613				616				1,244				1,191
Total noninterest expense			5,150				4,521				9,991				8,976
Earnings before income taxes			2,327				2,970				4,861				6,268
Income taxes			553				713				1,156				1,510
Net earnings		$	1,774			$	2,257			$	3,705			$	4,758
Earnings per common share:
Basic		$	0.54			$	0.71			$	1.13			$	1.49
Diluted		$	0.54			$	0.70			$	1.12			$	1.48
Cash dividends per common share(1)		$	-			$	-			$	0.25			$	0.22

 

 

⁽¹⁾ Annual cash dividends were paid during the first quarters of 2024 and 2023.

 

 

Prime Meridian Holding Company and Subsidiary

Condensed Consolidated Balance Sheets

(in thousands)

 

		2Q'24				1Q'24				4Q'23				3Q'23				2Q'23
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Assets
Cash & cash equivalents		$	50,875			$	23,474			$	28,416			$	22,404			$	21,799
Debt securities available for sale			99,798				117,413				124,475				123,838				126,792
Debt securities held to maturity			13,267				11,861				11,850				11,838				11,827
Loans, held for sale			5,505				3,583				5,288				5,182				6,614
Loans, net			684,762				666,826				646,127				628,974				614,744
Federal Home Loan Bank stock			1,073				1,548				1,283				1,758				1,895
Premises & equipment, net			7,266				7,406				7,476				7,613				7,746
Right of use lease asset			2,711				2,767				2,823				2,879				2,934
Accrued interest receivable			3,579				3,465				3,114				2,671				2,713
Bank-owned life insurance			17,123				17,021				16,921				16,822				16,722
Other real estate owned			-				-				-				117				-
Other assets			7,422				7,296				6,755				7,889				7,253
Total Assets		$	893,381			$	862,660			$	854,528			$	831,985			$	821,039
Liabilities and Stockholders' Equity
Liabilities:
Noninterest-bearing demand deposits		$	206,158			$	201,083			$	189,426			$	193,439			$	189,362
Savings, NOW and money-market deposits			479,162				462,601				476,826				451,492				450,820
Time deposits			105,050				88,029				82,436				77,876				62,646
Total Deposits			790,370				751,713				748,688				722,807				702,828
Other borrowings			-				-				-				-				-
FHLB Advances			10,000				20,000				15,000				25,000				35,000
Official checks			939				831				2,377				717				1,114
Operating lease liability			2,913				2,963				3,013				3,062				3,111
Other liabilities			5,648				5,714				5,474				5,612				4,816
Total Liabilities			809,870				781,221				774,552				757,198				746,869
Total Stockholders' Equity			83,511				81,439				79,976				74,787				74,170
Total Liabilities and Stockholders' Equity		$	893,381			$	862,660			$	854,528			$	831,985			$	821,039

 

Prime Meridian Holding Company and Subsidiary

Condensed Consolidated Average Balance Sheets (Unaudited)

(in thousands)

		2Q'24											1Q'24												2Q'23
						Interest											Interest												Interest
		Average				and			Yield/				Average				and				Yield/				Average				and				Yield/
		Balance				Dividends			Rate(5)				Balance				Dividends				Rate(5)				Balance				Dividends				Rate(5)
Interest-earning assets:
Loans(1)		$	685,946			$	10,536			6.14	%		$	660,024			$	9,891				5.99	%		$	613,318			$	8,465				5.52	%
Loans held for sale			5,670				91			6.42				4,878				71				5.82				8,466				105				4.96
Debt securities			122,472				852			2.78				133,588				896				2.68				140,699				925				2.63
Other(2)			19,318				259			5.36				14,538				207				5.70				15,646				184				4.70
Total interest-earning assets			833,406			$	11,738			5.63	%			813,028			$	11,065				5.44	%			778,129			$	9,679				4.98	%
Noninterest-earning assets			40,418											39,534												39,540
Total assets		$	873,824										$	852,562											$	817,669
Interest-bearing liabilities:
Savings, NOW and money-market deposits		$	467,312			$	3,031			2.59	%		$	464,991			$	2,828				2.43	%		$	453,129			$	1,585				1.40	%
Time deposits			99,583				1,059			4.25				84,832				849				4.00				55,192				332				2.41
Total interest-bearing deposits			566,895				4,090			2.89				549,823				3,677				2.68				508,321				1,917				1.51
FHLB advances and other borrowings			20,608				254			4.93				21,131				255				4.83				32,113				409				5.09
Total interest-bearing liabilities			587,503			$	4,344			2.96	%			570,954			$	3,932				2.75	%			540,434			$	2,326				1.72	%
Noninterest-bearing deposits			194,955											191,302												195,657
Noninterest-bearing liabilities			9,780											9,948												8,231
Stockholders' equity			81,586											80,358												73,347
Total liabilities and stockholders' equity		$	873,824										$	852,562											$	817,669
Net earning assets		$	245,903										$	242,074											$	237,695
Net interest income						$	7,394										$	7,133											$	7,353
Interest rate spread(3)										2.67	%											2.69	%											3.26	%
Net interest margin(4)										3.55	%											3.51	%											3.78	%

 

		For the Six Months Ended June 30,
		2024												2023
						Interest												Interest
		Average				and				Yield/				Average				and				Yield/
(dollars in thousands)		Balance				Dividends				Rate				Balance				Dividends				Rate
Interest-earning assets:
Loans(1)		$	678,371			$	20,427				6.02	%		$	615,610			$	16,422				5.34	%
Loans held for sale			5,274				162				6.14				7,909				192				4.86
Debt securities			128,030				1,748				2.32				140,982				1,858				2.64
Other(2)			16,928				466				5.51				17,480				406				4.65
Total interest-earning assets			828,603			$	22,803				5.50	%			781,981			$	18,878				4.83	%
Noninterest-earning assets			34,579												32,127
Total assets		$	863,182											$	814,108
Interest-bearing liabilities:
Savings, NOW and money-market deposits		$	464,252			$	5,860				2.52	%		$	467,877			$	2,972				1.27	%
Time deposits			92,208				1,907				4.14				48,682				478				1.96
Total interest-bearing deposits			556,460				7,767				2.79				516,559				3,450				1.34
FHLB advances and other borrowings			20,869				509				4.88				19,776				520				5.26
Total interest-bearing liabilities			577,329			$	8,276				2.87	%			536,335			$	3,970				1.48	%
Noninterest-bearing deposits			193,187												197,215
Noninterest-bearing liabilities			11,694												8,648
Stockholders' equity			80,972												71,910
Total liabilities and stockholders' equity		$	863,182											$	814,108
Net earning assets		$	251,274											$	245,646
Net interest income						$	14,527											$	14,908
Interest rate spread (3)											2.64	%											3.35	%
Net interest margin(4)											3.51	%											3.81	%

 

⁽¹⁾ Includes nonaccrual loans

⁽²⁾ Other interest-earning assets include federal funds sold, interest-bearing deposits and Federal Home Loan Bank stock.

⁽³⁾ Interest rate spread is the difference between total interest-earning asset yield and the rate paid on total interest-bearing liabilities.

⁽⁴⁾ Net interest margin is net interest income divided by total average interest-earning assets, annualized on a 30/360 basis.

⁽⁵⁾ Annualized on a 30/360 basis

 

Prime Meridian Holding Company and Subsidiary

Financial Highlights (Unaudited)

(dollars in thousands except per share amounts)

 

		2Q'24				1Q'24				4Q'23				3Q'23				2Q'23
Per Share Data:
Earnings per common share - Basic		$	0.54			$	0.59			$	0.56			$	0.66			$	0.71
Earnings per common share - Diluted		$	0.54			$	0.59			$	0.55			$	0.66			$	0.70
Book value per common share		$	25.35			$	24.71			$	24.53			$	22.91			$	23.25
Common shares outstanding			3,293,863				3,295,265				3,259,881				3,263,733				3,190,052
Weighted-average basic common shares outstanding			3,295,423				3,275,401				3,259,247				3,214,323				3,189,353
Weighted-average diluted common shares outstanding			3,310,628				3,298,555				3,299,212				3,235,920				3,201,531
Selected Performance Ratios and Other Data:
Return on average assets(1)			0.81	%			0.91	%			0.87	%			1.03	%			1.10	%
Return on average equity(1)			8.70				9.61				9.85				11.31				12.31
Average yield on earning assets			5.63				5.44				5.40				5.21				4.98
Net interest margin(2)			3.55				3.51				3.61				3.68				3.78
Efficiency ratio(3)			65.02				63.81				59.99				61.45				57.84
Noninterest expense/average assets(1)			2.36				2.27				2.20				2.29				2.21
Asset Quality Data:
Nonaccrual loans		$	3,029			$	3,446			$	2,335			$	1,112			$	1,391
Loans 90 days past due and still accruing			-				-				1,110				367				-
Other real estate owned			-				-				-				117				-
Total nonperforming assets			3,029				3,446				3,445				1,596				1,391
Nonperforming assets/total assets			0.34	%			0.40	%			0.40	%			0.19	%			0.17	%
Loans 30-89 days past due			635			$	4,447			$	5,353			$	1,060			$	826
Total loans			690,258				672,836				651,928				633,982				619,465
Loans 30-89 days past due/total loans			0.09	%			0.66	%			0.82	%			0.17	%			0.13	%
Net charge-offs/average loans (1)			0.47				-				-				0.03				0.23
Capital Ratios:
Tier 1 Leverage Capital Ratio (Company)			10.41	%			10.44	%			10.29	%			10.34	%			10.14	%
Common Equity Tier 1 Capital Ratio (Company)			13.39				13.28				13.37				13.42				13.22
Tier 1 Risk-Based Capital Ratio (Company)			13.39				13.28				13.37				13.42				13.22
Total Risk-Based Capital Ratio (Company)			14.17				14.13				14.22				14.19				13.97
Tangible Common Equity Ratio(4) (Company)			9.35				9.44				9.36				8.99				9.03
Tier 1 Leverage Capital Ratio (Bank)			10.32				10.35				10.15				10.18				9.98
Common Equity Tier 1 Capital Ratio (Bank)			13.29				13.16				13.18				13.23				13.00
Tier 1 Risk-Based Capital Ratio (Bank)			13.29				13.16				13.18				13.23				13.00
Total Risk-Based Capital Ratio (Bank)			14.09				14.02				14.03				13.99				13.76
Tangible Common Equity Ratio(4) (Bank)			9.27				9.38				9.22				8.84				8.87

 

(1) Annualized on a 30/360 basis

(2) Net interest margin is net interest income divided by total average interest-earning assets, annualized.

(3) Efficiency Ratio represents noninterest expense divided by the sum of net interest income plus noninterest income.

(4) Tangible Common Equity Ratio is a non-GAAP financial measure.  For additional information, including a reconciliation to GAAP, please refer to page 10.

 

 

Prime Meridian Holding Company and Subsidiary

Non-GAAP Measures and Ratio Reconciliation (Unaudited)

(dollars in thousands except per share amounts)

 

		2Q'24				1Q'24				4Q'23				3Q'23				2Q'23
Net Income
Net earnings (GAAP)		$	1,774			$	1,931			$	1,830			$	2,120			$	2,257
Plus: credit loss expense			444				211				707				175				325
Plus: income taxes			553				603				562				668				713
PTPP(1) net earnings (non-GAAP)		$	2,771			$	2,745			$	3,099			$	2,963			$	3,295
Earnings per Share (EPS)
Weighted average common shares, diluted			3,310,628				3,298,555				3,299,212				3,235,920				3,201,531
EPS, diluted (GAAP)		$	0.54			$	0.59			$	0.55			$	0.66			$	0.70
PTPP(1) EPS, diluted (non-GAAP)		$	0.84			$	0.83			$	0.94			$	0.92			$	1.03
Return on Average Assets (ROAA)(2)
Average assets		$	873,824			$	852,562			$	844,835			$	823,341			$	817,669
ROAA (GAAP)			0.81	%			0.91	%			0.87	%			1.03	%			1.10	%
PTPP(1) ROAA (non-GAAP)			1.27	%			1.29	%			1.47	%			1.44	%			1.61	%
Return on Average Equity (ROAE)(2)
Average equity		$	81,586			$	80,358			$	74,318			$	74,962			$	73,347
ROAE (GAAP)			8.70	%			9.61	%			9.85	%			11.31	%			12.31	%
PTPP(1) ROAE (non-GAAP)			13.59	%			13.66	%			16.68	%			15.81	%			17.97	%

 

		2Q'24				1Q'24				4Q'23				3Q'23				2Q'23
Tangible Common Equity Ratio (Company)
Stockholders' Equity (GAAP)		$	83,511			$	81,439			$	79,976			$	74,787			$	74,170
Less: Intangibles			-				-				-				-				-
Tangible Stockholders' Equity (non-GAAP)		$	83,511			$	81,439			$	79,976			$	74,787			$	74,170
Total Assets (GAAP)		$	893,381			$	862,660			$	854,528			$	831,985			$	821,039
Less: Intangibles			-				-				-				-				-
Tangible Assets (non-GAAP)		$	893,381			$	862,660			$	854,528			$	831,985			$	821,039
Tangible Common Equity Ratio (non-GAAP)			9.35	%			9.44	%			9.36	%			8.99	%			9.03	%
Tax-effected adjustment of net losses in HTM securities portfolio (non-GAAP)		$	1,150			$	1,144			$	1,114			$	1,624			$	1,063
Tangible Assets adjusted for HTM securities at fair value (non-GAAP)			892,231				861,516				853,414				830,361				819,976
Tangible Equity adjusted for HTM securities at fair value (non-GAAP)			82,361				80,295				78,862				73,163				73,107
Tangible Common Equity Ratio Adjusted (non-GAAP)			9.23	%			9.32	%			9.24	%			8.81	%			8.92	%
Tangible Common Equity Ratio (Bank)
Stockholders' Equity (GAAP)		$	82,789			$	80,641			$	78,763			$	73,514			$	72,816
Less: Intangibles			-				-				-				-				-
Tangible Stockholders' Equity (non-GAAP)		$	82,789			$	80,641			$	78,763			$	73,514			$	72,816
Total Assets (GAAP)		$	893,283			$	862,598			$	854,494			$	831,830			$	820,921
Less: Intangibles			-				-				-				-				-
Tangible Assets (non-GAAP)		$	893,283			$	862,598			$	854,494			$	831,830			$	820,921
Tangible Common Equity Ratio (non-GAAP)			9.27	%			9.35	%			9.22	%			8.84	%			8.87	%

 

⁽¹⁾Pre-tax, pre-provision

⁽²⁾ Annualized on a 30/360 basis

 

 

 

Prime Meridian Holding Company and Subsidiary

Non-GAAP Measures and Ratio Reconciliation Quarterly Pre-Tax Pre-Provision Calculation Unaudited)

(dollars in thousands except per share amounts)

 

 

 

 

		For the Six Months Ended
		June 30, 2024				June 30, 2023
Net Income
Net earnings (GAAP)		$	3,705			$	4,758
Plus: credit loss expense			655				568
Plus: income taxes			1,156				1,510
PTPP(1) net earnings (non-GAAP)		$	5,516			$	6,836
Earnings per Share (EPS)
Weighted average common shares, diluted			3,301,866				3,211,095
EPS, diluted (GAAP)		$	1.12			$	1.48
PTPP(1) EPS, diluted (non-GAAP)		$	1.67			$	2.13
Return on Average Assets (ROAA)(2)
Average assets		$	863,182			$	814,108
ROAA (GAAP)			0.86	%			1.17	%
PTPP(1) ROAA (non-GAAP)			1.28	%			1.68	%
Return on Average Equity (ROAE)(2)
Average equity (GAAP)		$	80,972			$	71,910
ROAE (GAAP)			9.15	%			13.23	%
PTPP(1) ROAE (non-GAAP)			13.62	%			19.01	%

 

⁽¹⁾Pre-tax, pre-provision

⁽²⁾ Annualized on a 30/360 basis

11

 

Prime Meridian Holding Company and Subsidiary

Non-GAAP Measures and Ratio Reconciliation

Annual Pre-Tax Pre-Provision Calculation Unaudited)

(dollars in thousands except per share amounts)

 

		For the Year Ended December 31,
		2023				2022				2021				2020				2019
Net Income
Net earnings (GAAP)		$	8,708			$	9,681			$	8,347			$	4,458			$	3,542
Plus: credit loss expense			1,450				890				(104	)			2,850				1,131
Plus: income taxes			2,740				3,056				2,517				1,295				1,092
PTPP(1) net earnings (non-GAAP)		$	12,898			$	13,627			$	10,760			$	8,603			$	5,765
Earnings per Share (EPS)
Weighted average common shares, diluted			3,251,080				3,193,774				3,142,482				3,134,124				3,159,635
EPS, diluted (GAAP)		$	2.68			$	3.03			$	2.66			$	1.42			$	1.12
PTPP(1) EPS, diluted (non-GAAP)		$	3.97			$	4.27			$	3.42			$	2.74			$	1.82
Return on Average Assets (ROAA)
Average assets		$	815,813			$	852,272			$	751,576			$	595,363			$	456,797
ROAA (GAAP)			1.07	%			1.14	%			1.11	%			0.75	%			0.78	%
PTPP(1) ROAA (non-GAAP)			1.58	%			1.60	%			1.43	%			1.45	%			1.26	%
Return on Average Equity (ROAE)
Average equity		$	73,094			$	65,549			$	65,179			$	57,386			$	53,172
ROAE (GAAP)			11.91	%			14.77	%			12.81	%			7.77	%			6.66	%
PTPP(1) ROAE (non-GAAP)			17.65	%			20.79	%			16.51	%			14.99	%			10.84	%
Adjusted Average Loan Yield:
Net loans, excluding loans held for sale		$	646,127			$	588,715			$	490,198			$	476,661			$	337,710
Less PPP loans			(36	)			(191	)			(15,172	)			(66,774	)			-
Adjusted net loans, excluding loans held for sale and PPP (non-GAAP)		$	646,091			$	588,524			$	475,026			$	409,887			$	337,710
Average loans, excluding loans held for sale		$	613,059			$	537,304			$	480,606			$	429,802			$	309,350
Less average PPP loans			(108	)			(3,061	)			(50,315	)			(55,529	)			-
Adjusted average loans, excluding loans held for sale and PPP (non-GAAP)		$	612,951			$	534,243			$	430,291			$	374,273			$	309,350
Interest on loans, excluding loans held for sale		$	34,938			$	25,803			$	22,598			$	19,553			$	15,884
Less interest income and earned fee income on PPP loans			(2	)			(776	)			(3,358	)			(1,725	)			-
Adjusted interest on loans, excluding loans held for sale and PPP (non-GAAP)		$	34,936			$	25,027			$	19,240			$	17,828			$	15,884
Average loan yield, excluding loans held for sale (GAAP)			5.70	%			4.80	%			4.70	%			4.55	%			5.13	%
Adjusted average loan yield, excluding loans held for sale and PPP (non-GAAP)			5.70	%			4.68	%			4.47	%			4.76	%			5.13	%

 

⁽¹⁾ Pre-tax, pre-provision

 

 

 

CONTACT:	Clint F. Weber, Chief Financial Officer and Executive Vice President
	(850) 907-2300
	Prime Meridian Holding Company
	Website: www.primemeridianbank.com

 

 

12

Exhibit 99.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

v3.24.2

Document And Entity Information	Jul. 26, 2024
Document Information [Line Items]
Entity, Registrant Name	PRIME MERIDIAN HOLDING COMPANY
Document, Type	8-K
Document, Period End Date	Jul. 26, 2024
Entity, Incorporation, State or Country Code	FL
Entity, File Number	333-191801
Entity, Tax Identification Number	27-2980805
Entity, Address, Address Line One	1471 Timberlane Road
Entity, Address, City or Town	Tallahassee
Entity, Address, State or Province	FL
Entity, Address, Postal Zip Code	32312
City Area Code	850
Local Phone Number	907-2300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0001586454

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