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))
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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 October 25, 2024
		99.2               Investor Presentation Q3 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

THIRD QUARTER 2024 RESULTS

 

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

(dollars in thousands except per share amounts)

 

		3Q'24				2Q'24				1Q'24				4Q'23				3Q'23
Net earnings		$	2,603			$	1,774			$	1,931			$	1,830			$	2,120
Book value per share		$	26.87			$	25.35			$	24.71			$	24.53			$	22.91
Earnings per share - Basic		$	0.79			$	0.54			$	0.59			$	0.56			$	0.66
Earnings per share - Diluted		$	0.78			$	0.54			$	0.59			$	0.55			$	0.66
Weighted-average basic shares outstanding			3,293,993				3,295,423				3,275,401				3,259,247				3,214,323
Weighted-average diluted shares outstanding			3,322,536				3,310,628				3,298,555				3,299,212				3,235,920
Return on average assets(1)			1.14	%			0.81	%			0.91	%			0.87	%			1.03	%
Return on average equity(1)			12.20	%			8.70	%			9.61	%			9.85	%			11.31	%
Average yield on earning assets(1)			5.81	%			5.63	%			5.44	%			5.40	%			5.21	%
Net interest margin(1)			3.63	%			3.55	%			3.51	%			3.61	%			3.68	%
Efficiency ratio(2)			58.24	%			65.02	%			63.81	%			59.99	%			61.45	%
Nonperforming assets/total assets(3)			0.26	%			0.34	%			0.40	%			0.40	%			0.19	%

 

(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.

 

•	Net earnings of $2.6 million for 3Q'24 were up $829,000 (46.7%) from 2Q'24 and $483,000 (22.8%) from 3Q'23.
•	Book value per share has increased steadily over the past year and is up $3.96, or 17.3% since 3Q'23.
•	For 3Q'24, the return on average assets was 1.14% compared to 0.81% (2Q'24) and 1.03% (3Q'23).  For 3Q'24, the return on average equity was 12.20% compared to 8.70% (2Q'24) and 11.31% (3Q'23).
•	Pre-tax pre-provision ("PTPP") return on assets was 1.55% and PTPP return on equity was 16.58% for 3Q'24, compared to 1.27% and 13.59% in 2Q'24 and 1.44% and 15.81% in 3Q'23. This is considered a non-GAAP financial measure and additional information, including a reconciliation, can be found on page 10.
•	Gross loan balances increased $40.7 million, or 6.2%  since December 31, 2023 with most growth occurring in residential and home equity real estate loans.
•	Since December 31, 2023, total deposits increased $75.3 million, or 10.1%, to $824.0 million.  Growth occurred in all categories with the majority of growth occurring in time deposits and savings, NOW and money market accounts.  During the third quarter, the Company averaged net new non-maturity deposit volume of $18.8 million and 183 net new accounts.
•	At September 30, 2024, available secured and unsecured borrowing capacity was $197.7 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 $232.9 million, off-balance sheet funding sources total $430.6 million.
•	At September 30, 2024, on-balance sheet liquidity was $181.6 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 $612.2 million, representing 74.3% of total deposits.
•	The Bank remains well capitalized with a Tier 1 Leverage ratio of 10.21% and a Total Risk Based Capital Ratio of 13.53% at September 30, 2024.

 

 

Earnings Summary (Unaudited)

(dollars in thousands)

 

														Change 3Q'24 vs.								Nine Months Ended September 30,
		3Q'24				2Q'24				3Q'23				2Q'24				3Q'23				2024				2023				% Change
Net interest income		$	7,941			$	7,394			$	7,187				7.4	%			10.5	%		$	22,468			$	22,095				1.7	%
Credit loss expense			100				444				175				(77.5	)			(42.9	)			755				743				1.6
Noninterest income			531				527				499				0.8				6.4				1,511				1,403				7.7
Noninterest expense			4,934				5,150				4,723				(4.2	)			4.5				14,925				13,699				8.9
Income taxes			835				553				668				51.0				25.0				1,991				2,178				(8.6	)
Net earnings		$	2,603			$	1,774			$	2,120				46.7	%			22.8	%		$	6,308			$	6,878				(8.3	)%

 

Net earnings for 3Q'24 primarily benefitted from higher net interest income, improved operating efficiency and a lower provision for credit loss expense.  Comparing the nine-month periods, higher revenue from interest and noninterest income was offset by higher noninterest expense as the impact of operational efficiencies started to materialize in the third quarter of this year.

 

Net Interest Income (Unaudited)

(dollars in thousands)

														Change 3Q'24 vs.								Nine Months Ended September 30,
		3Q'24				2Q'24				3Q'23				2Q'24				3Q'23				2024				2023				% Change
Interest income:
Loans		$	10,995			$	10,627			$	9,019				3.5	%			21.9	%		$	31,584			$	25,633				23.2	%
Debt securities			757				852				919				(11.2	)			(17.6	)			2,505				2,777				(9.8	)
Other			942				259				244				263.7				286.1				1,408				650				116.6
Total interest income			12,694				11,738				10,182				8.1	%			24.7	%			35,497				29,060				22.2	%
Interest expense:
Deposits			4,643				4,090				2,691				13.5	%			72.5	%			12,410				6,141				102.1	%
FHLB advances and other borrowings			110				254				304				(56.7	)			(63.8	)			619				824				(24.9	)
Total interest expense			4,753				4,344				2,995				9.4				58.7				13,029				6,965				87.1
Net interest income		$	7,941			$	7,394			$	7,187				7.4	%			10.5	%		$	22,468			$	22,095				1.7	%

 

The Company reported net interest income of $7.9 million for 3Q'24, an increase of $547,000, or 7.4%, from the linked quarter and an increase of $754,000, or 10.5% from 3Q'23. Compared to the linked quarter, an acceleration of bond maturities resulted in an earning asset mix shift to higher-yielding cash accounts.  This coupled with a reduction in FHLB borrowings yielded higher net interest income. Compared to 3Q'23, loan growth and higher loan yields were the most significant contributing factors to higher net interest income. Average earning assets were up $40.7 million, or 4.9%, over the linked quarter and $92.8 million, or 11.9%, over 3Q'23 while the yield on average earning assets increased to 5.81% (3Q'24), compared to 5.63% (2Q'24) and 5.21% (3Q'23). The average cost of interest-bearing liabilities increased from 2.19% in 3Q'23 to 2.96% in 2Q'24 and 3.09% in 3Q'24, reflecting the rising rate environment and a change in funding mix.  The Company's net interest margin ("NIM") for 3Q'24 was 3.63%, compared to 3.55% (2Q'24) and 3.68% (3Q'23).  

 

For the nine months ended September 30, 2024, funding costs outpaced the increase in earning asset yields. Net interest income increased $373,000, or 1.7% compared to the same period a year ago. Average earning assets increased $59.9 million, or 7.7%, while the Company's average interest-bearing liabilities increased $52.5 million, or 9.7%.  Rates on interest-bearing liabilities increased at a faster pace (up 122 basis points) than yields on interest-earning assets (up 66 basis points).  NIM was 3.57% for the nine months ended September 30, 2024 compared to 3.78% for the nine months ended September 30, 2023.

 

Credit Loss Expense

 

Credit loss expense for 3Q'24 of $100,000 included $118,000 in expense for loans and $18,000 in release for unfunded commitments.  Net charge-offs totaled $11,000 in 3Q'24, compared to $800,000 last quarter (primarily related to two impaired commercial relationships that had been mostly reserved for in prior quarters) and $49,000 in 3Q'23.  At September 30, 2024, the allowance for credit losses for loans was $5.4 million, representing 0.78% to total loans (this excludes the allowance for credit losses for unfunded commitments of $140,000). The following table presents detailed information related to credit loss expense related to loans for the periods indicated. 

 

		Three Months Ended
		September 30, 2024				June 30, 2024				Change
Beginning balance		$	5,282			$	5,796			$	(514	)
Charge-offs			(13	)			(803	)			790
Recoveries			2				3				(1	)
Net (charge-offs) recoveries			(11	)			(800	)			789
Credit loss expense (funded portion)			118				286				(168	)
Ending balance		$	5,389			$	5,282			$	107
Allowance for credit losses to total loans, gross			0.78	%			0.77	%

 

 

Noninterest income (Unaudited)

(dollars in thousands)

 

														Change 3Q'24 vs.								Nine Months Ended September 30,
		3Q'24				2Q'24				3Q'23				2Q'24				3Q'23				2024				2023				% Change
Service charges and fees on deposit accounts		$	81			$	78			$	92				3.8	%			(12.0	)%		$	228			$	261				(12.6	)%
Debit card/ATM revenue, net			159				164				137				(3.0	)			16.1				481				437				10.1
Mortgage banking revenue, net			133				125				121				6.4				9.9				329				250				31.6
Income from bank-owned life insurance			105				102				100				2.9				5.0				307				290				5.9
Other income			53				58				49				(8.6	)			8.2				166				165				0.6
Total noninterest income		$	531			$	527			$	499				0.8	%			6.4	%		$	1,511			$	1,403				7.7	%

 

Noninterest income during 3Q'24 stayed relatively flat compared to the linked quarter.  The 6.4% and 7.7% increases from the three and nine-month periods in 2023, respectively, mostly reflect increased revenue from debit card/ATM and mortgage banking. These gains were partially offset by declines in service charges and fees on deposit accounts, primarily nonsufficient funds ("NSF") fees.  Noninterest income as a percentage of average assets, annualized, was 0.23% for both nine-month periods.

 

Noninterest expense (Unaudited)

(dollars in thousands)

														Change 3Q'24 vs.								Nine Months Ended September 30,
		3Q'24				2Q'24				3Q'23				2Q'24				3Q'23				2024				2023				% Change
Salaries and employee benefits		$	3,011			$	3,024			$	2,864				(0.4	)%			5.1	%		$	8,900			$	8,359				6.5	%
Occupancy and equipment			408				425				427				(4.0	)			(4.4	)			1,238				1,235				0.2
Professional fees			151				142				149				6.3				1.3				447				416				7.5
Marketing			243				299				215				(18.7	)			13.0				816				688				18.6
FDIC assessment			111				106				104				4.7				6.7				325				275				18.2
Software maintenance, amortization and other			433				541				341				(20.0	)			27.0				1,378				912				51.1
Other			577				613				623				(5.9	)			(7.4	)			1,821				1,814				0.4
Total noninterest expense		$	4,934			$	5,150			$	4,723				(4.2	)%			4.5	%		$	14,925			$	13,699				8.9	%

 

Noninterest expense was down $216,000, or 4.2%, from the linked quarter due primarily to a $108,000, or 20.0%, decrease in software maintenance, amortization, and other expense as there were some one-time expenses related to the Company's core conversion in the 4Q'23 that were paid during 2Q'24. Marketing expense decreased $56,000, or 18.7%, often fluctuating from quarter to quarter due to the timing of certain commitments. Noninterest expense was up 4.5% over 3Q'23 due primarily to increased expense for salaries and employee benefits and software maintenance, amortization and other, the latter being due to the Company's core conversion completed in the 4Q'23.  The Company's efficiency ratio improved to 58.24% in 3Q'24, compared to 65.02% in 2Q'24 and 61.45% in 3Q'23.  Noninterest expense as a percentage of average assets reached its lowest level in two years at  2.16% annualized for 3Q'24. 

 

Noninterest expense was up 8.9%, or $1.2 million, over the nine-month period due mostly to higher compensation expense and higher expense related to the core conversion, followed by higher marketing expense.

 

Financial Condition

 

At September 30, 2024, the Company reported $931.6 million in total assets, $824.0 million in deposits, and $687.1 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.  Gross loans increased $40.7 million, or 6.2%, since December 31, 2023 with residential and home equity loans reporting the largest dollar volume increase. 

 

Prime Meridian Holding Company and Subsidiary

Loans by Class

(dollars in thousands)

 

		September 30, 2024								December 31, 2023
		Unaudited								Audited
		Amount				% of Total				Amount				% of Total
Commercial real estate(1)		$	216,379				31.2	%		$	208,429				32.0	%
Residential real estate and home equity(1)			297,887				43.0				273,383				41.9
Construction(1)			82,639				11.9				78,197				12.0
Commercial			89,788				13.0				85,983				13.2
Consumer			5,971				0.9				5,936				0.9
Total loans			692,664				100.0	%			651,928				100.0	%
Net deferred loan fees			(218	)							(192	)
Allowance for credit losses			(5,389	)							(5,609	)
Loans, net		$	687,057							$	646,127

 

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

 

 

 

 

 

 

Deposit balances increased $75.3 million, or 10.1%, since December 31, 2023.  Savings, NOW and money-market deposits and time deposits increased $26.9 million and $35.1 million, respectively, since December 31, 2023, while noninterest bearing demand accounts increased $13.2 million. The Company's loan to deposit ratio  was 84.1% at September 30, 2024 compared to 87.1% at December 31, 2023.

 

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 September 30, 2024. As of September 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 September 30, 2024.

 

Total stockholders’ equity was $88.5 million, or 9.50% of total assets, at September 30, 2024, compared to $80.0 million at December 31, 2023 or 9.36% of total assets.  Retained earnings and a favorable change in accumulated other comprehensive loss drove the increase in equity and offset common stock dividends of $818,000 ($0.25 per common share) paid during 1Q'24.  At September 30, 2024, book value per share was $26.87 with 3,293,755 common shares outstanding.

 

As of September 30, 2024, the Bank was considered to be “well capitalized” with a Tier 1 Leverage Capital Ratio of 10.21%, a 13.53% Common Equity Tier 1 Capital Ratio, a 13.53% Tier 1 Risk-Based Capital Ratio, and a 14.33% Total Risk-Based Capital Ratio. 

 

Asset Quality

 

There were eleven (11) nonperforming loans totaling $2.5 million at  September 30, 2024 compared to nine (9) nonperforming loans totaling $3.0 million at June 30, 2024. Net charge-offs during the nine months ended September 30, 2024 totaled $835,000 and were mostly related to two impaired commercial loans, compared to net charge-offs of $379,000 for the nine months ended September 30, 2023.  As of September 30, 2024, there were no loans that were 90 days and still accruing and no Other Real Estate Owned ("OREO") on the balance sheet.  Management believes that the allowance for credit losses for loans of $5.4 million (which excludes $140,000 for general unfunded commitments) at September 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 September 30, 2024, the Bank had 111 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)

 

		3Q'24				2Q'24				1Q'24				4Q'23				3Q'23
Interest income:
Loans		$	10,995			$	10,627			$	9,962			$	9,658			$	9,019
Debt securities			757				852				896				921				919
Other			942				259				207				287				244
Total interest income			12,694				11,738				11,065				10,866				10,182
Interest expense:
Deposits			4,643				4,090				3,677				3,351				2,691
FHLB advances and other borrowings			110				254				255				262				304
Total interest expense			4,753				4,344				3,932				3,613				2,995
Net interest income			7,941				7,394				7,133				7,253				7,187
Credit loss expense			100				444				211				707				175
Net interest income after credit loss expense			7,841				6,950				6,922				6,546				7,012
Noninterest income:
Service charges and fees on deposit accounts			81				78				69				96				92
Debit card/ATM revenue, net			159				164				158				136				137
Mortgage banking revenue, net			133				125				71				102				121
Income from bank-owned life insurance			105				102				100				99				100
Other income			53				58				55				59				49
Total noninterest income			531				527				453				492				499
Noninterest expense:
Salaries and employee benefits			3,011				3,024				2,865				2,813				2,864
Occupancy and equipment			408				425				405				412				427
Professional fees			151				142				154				143				149
Marketing			243				299				274				215				215
FDIC assessment			111				106				108				85				104
Software maintenance, amortization and other			433				541				404				302				341
Other			577				613				631				676				623
Total noninterest expense			4,934				5,150				4,841				4,646				4,723
Earnings before income taxes			3,438				2,327				2,534				2,392				2,788
Income taxes			835				553				603				562				668
Net earnings		$	2,603			$	1,774			$	1,931			$	1,830			$	2,120
Basic earnings per common share		$	0.79			$	0.54			$	0.59			$	0.56			$	0.66
Diluted earnings per common share		$	0.78			$	0.54			$	0.59			$	0.55			$	0.66

 

 

Prime Meridian Holding Company and Subsidiary

Condensed Consolidated Statements of Earnings

(in thousands, except per share amounts)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
		Unaudited								Unaudited
Interest income:
Loans		$	10,995			$	9,019			$	31,584			$	25,633
Debt securities			757				919				2,505				2,777
Other			942				244				1,408				650
Total interest income			12,694				10,182				35,497				29,060
Interest expense:
Deposits			4,643				2,691				12,410				6,141
FHLB advances and other borrowings			110				304				619				824
Total interest expense			4,753				2,995				13,029				6,965
Net interest income			7,941				7,187				22,468				22,095
Credit loss expense			100				175				755				743
Net interest income after credit loss expense			7,841				7,012				21,713				21,352
Noninterest income:
Service charges and fees on deposit accounts			81				92				228				261
Debit card/ATM revenue, net			159				137				481				437
Mortgage banking revenue, net			133				121				329				250
Income from bank-owned life insurance			105				100				307				290
Other income			53				49				166				165
Total noninterest income			531				499				1,511				1,403
Noninterest expense:
Salaries and employee benefits			3,011				2,864				8,900				8,359
Occupancy and equipment			408				427				1,238				1,235
Professional fees			151				149				447				416
Marketing			243				215				816				688
FDIC assessment			111				104				325				275
Software maintenance, amortization and other			433				341				1,378				912
Other			577				623				1,821				1,814
Total noninterest expense			4,934				4,723				14,925				13,699
Earnings before income taxes			3,438				2,788				8,299				9,056
Income taxes			835				668				1,991				2,178
Net earnings		$	2,603			$	2,120			$	6,308			$	6,878
Earnings per common share:
Basic		$	0.79			$	0.66			$	1.92			$	2.15
Diluted		$	0.78			$	0.66			$	1.89			$	2.13
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)

 

		3Q'24				2Q'24				1Q'24				4Q'23				3Q'23
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Assets
Cash & cash equivalents		$	96,524			$	50,875			$	23,474			$	28,416			$	22,404
Debt securities available for sale			90,935				99,798				117,413				124,475				123,838
Debt securities held to maturity			13,276				13,267				11,861				11,850				11,838
Loans, held for sale			7,457				5,505				3,583				5,288				5,182
Loans, net			687,057				684,762				666,826				646,127				628,974
Federal Home Loan Bank stock			1,073				1,073				1,548				1,283				1,758
Premises & equipment, net			7,112				7,266				7,406				7,476				7,613
Right of use lease asset			2,654				2,711				2,767				2,823				2,879
Accrued interest receivable			3,213				3,579				3,465				3,114				2,671
Bank-owned life insurance			17,228				17,123				17,021				16,921				16,822
Other real estate owned			-				-				-				-				117
Other assets			5,093				7,422				7,296				6,755				7,889
Total Assets		$	931,622			$	893,381			$	862,660			$	854,528			$	831,985
Liabilities and Stockholders' Equity
Liabilities:
Noninterest-bearing demand deposits		$	202,659			$	206,158			$	201,083			$	189,426			$	193,439
Savings, NOW and money-market deposits			503,768				479,162				462,601				476,826				451,492
Time deposits			117,559				105,050				88,029				82,436				77,876
Total Deposits			823,986				790,370				751,713				748,688				722,807
Other borrowings			-				-				-				-				-
FHLB Advances			10,000				10,000				20,000				15,000				25,000
Official checks			1,338				939				831				2,377				717
Operating lease liability			2,857				2,913				2,963				3,013				3,062
Other liabilities			4,943				5,648				5,714				5,474				5,612
Total Liabilities			843,124				809,870				781,221				774,552				757,198
Total Stockholders' Equity			88,498				83,511				81,439				79,976				74,787
Total Liabilities and Stockholders' Equity		$	931,622			$	893,381			$	862,660			$	854,528			$	831,985

 

Prime Meridian Holding Company and Subsidiary

Condensed Consolidated Average Balance Sheets (Unaudited)

(in thousands)

 

		3Q'24											2Q'24												3Q'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)		$	694,083			$	10,893			6.28	%		$	685,946			$	10,536				6.14	%		$	620,297			$	8,939				5.76	%
Loans held for sale			6,371				102			6.40				5,670				91				6.42				5,850				80				5.47
Debt securities			105,999				757			2.86				122,472				852				2.78				137,731				919				2.67
Other(2)			67,629				942			5.57				19,318				259				5.36				17,398				244				5.61
Total interest-earning assets			874,082			$	12,694			5.81	%			833,406			$	11,738				5.63	%			781,276			$	10,182				5.21	%
Noninterest-earning assets			38,751											40,418												42,065
Total assets		$	912,833										$	873,824											$	823,341
Interest-bearing liabilities:
Savings, NOW and money-market deposits		$	492,632			$	3,374			2.74	%		$	467,312			$	3,031				2.59	%		$	449,396			$	2,089				1.86	%
Time deposits			111,851				1,269			4.54				99,583				1,059				4.25				73,071				602				3.30
Total interest-bearing deposits			604,483				4,643			3.07				566,895				4,090				2.89				522,467				2,691				2.06
FHLB advances and other borrowings			10,000				110			4.40				20,608				254				4.93				24,582				304				4.95
Total interest-bearing liabilities			614,483			$	4,753			3.09	%			587,503			$	4,344				2.96	%			547,049			$	2,995				2.19	%
Noninterest-bearing deposits			203,659											194,955												192,686
Noninterest-bearing liabilities			9,317											9,780												8,644
Stockholders' equity			85,374											81,586												74,962
Total liabilities and stockholders' equity		$	912,833										$	873,824											$	823,341
Net earning assets		$	259,599										$	245,903											$	234,227
Net interest income						$	7,941										$	7,394											$	7,187
Interest rate spread(3)										2.72	%											2.67	%											3.02	%
Net interest margin(4)										3.63	%											3.55	%											3.68	%

 

		For the Nine Months Ended September 30,
		2024												2023
						Interest												Interest
		Average				and				Yield/				Average				and				Yield/
(dollars in thousands)		Balance				Dividends				Rate(5)				Balance				Dividends				Rate(5)
Interest-earning assets:
Loans(1)		$	679,999			$	31,320				6.14	%		$	611,946			$	25,361				5.53	%
Loans held for sale			5,642				264				6.24				7,215				272				5.03
Debt securities			120,633				2,505				2.77				139,886				2,777				2.65
Other(2)			33,952				1,408				5.53				21,271				650				4.07
Total interest-earning assets			840,226			$	35,497				5.63	%			780,318			$	29,060				4.97	%
Noninterest-earning assets			39,600												36,898
Total assets		$	879,826											$	817,216
Interest-bearing liabilities:
Savings, NOW and money-market deposits		$	475,043			$	9,234				2.59	%		$	461,649			$	5,061				1.46	%
Time deposits			98,803				3,176				4.29				56,901				1,080				2.53
Total interest-bearing deposits			573,846				12,410				2.88				518,550				6,141				1.58
FHLB advances and other borrowings			17,220				619				4.79				20,034				824				5.48
Total interest-bearing liabilities			591,066			$	13,029				2.94	%			538,584			$	6,965				1.72	%
Noninterest-bearing deposits			196,703												195,689
Noninterest-bearing liabilities			9,607												10,005
Stockholders' equity			82,450												72,938
Total liabilities and stockholders' equity		$	879,826											$	817,216
Net earning assets		$	249,160											$	241,734
Net interest income						$	22,468											$	22,095
Interest rate spread (3)											2.69	%											3.25	%
Net interest margin(4)											3.57	%											3.78	%

 

⁽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)

 

		3Q'24				2Q'24				1Q'24				4Q'23				3Q'23
Per Share Data:
Earnings per common share - Basic		$	0.79			$	0.54			$	0.59			$	0.56			$	0.66
Earnings per common share - Diluted		$	0.78			$	0.54			$	0.59			$	0.55			$	0.66
Book value per common share		$	26.87			$	25.35			$	24.71			$	24.53			$	22.91
Common shares outstanding			3,293,755				3,293,863				3,295,265				3,259,881				3,263,733
Weighted-average basic common shares outstanding			3,293,993				3,295,423				3,275,401				3,259,247				3,214,323
Weighted-average diluted common shares outstanding			3,322,536				3,310,628				3,298,555				3,299,212				3,235,920
Selected Performance Ratios and Other Data:
Return on average assets(1)			1.14	%			0.81	%			0.91	%			0.87	%			1.03	%
Return on average equity(1)			12.20	%			8.70	%			9.61	%			9.85	%			11.31	%
Average yield on earning assets			5.81	%			5.63	%			5.44	%			5.40	%			5.21	%
Net interest margin(2)			3.63	%			3.55	%			3.51	%			3.61	%			3.68	%
Efficiency ratio(3)			58.24	%			65.02	%			63.81	%			59.99	%			61.45	%
Noninterest expense/average assets(1)			2.16	%			2.36	%			2.27	%			2.20	%			2.29	%
Asset Quality Data:
Nonaccrual loans		$	2,464			$	3,029			$	3,446			$	2,335			$	1,112
Loans 90 days past due and still accruing		$	-			$	-			$	-			$	1,110			$	367
Other real estate owned		$	-			$	-			$	-			$	-			$	117
Total nonperforming assets		$	2,464			$	3,029			$	3,446			$	3,445			$	1,596
Nonperforming assets/total assets			0.26	%			0.34	%			0.40	%			0.40	%			0.19	%
Loans 30-89 days past due		$	906			$	635			$	4,447			$	5,353			$	1,060
Total loans		$	692,664			$	690,258			$	672,836			$	651,928			$	633,982
Loans 30-89 days past due/total loans			0.13	%			0.09	%			0.66	%			0.82	%			0.17	%
Net charge-offs/average loans (1)			-				0.47	%			-				-				0.03	%
Capital Ratios:
Tier 1 Leverage Capital Ratio (Company)			10.28	%			10.41	%			10.44	%			10.29	%			10.34	%
Common Equity Tier 1 Capital Ratio (Company)			13.63	%			13.39	%			13.28	%			13.37	%			13.42	%
Tier 1 Risk-Based Capital Ratio (Company)			13.63	%			13.39	%			13.28	%			13.37	%			13.42	%
Total Risk-Based Capital Ratio (Company)			14.41	%			14.17	%			14.13	%			14.22	%			14.19	%
Tangible Common Equity Ratio(4) (Company)			9.50	%			9.35	%			9.44	%			9.36	%			8.99	%
Tier 1 Leverage Capital Ratio (Bank)			10.21	%			10.32	%			10.35	%			10.15	%			10.18	%
Common Equity Tier 1 Capital Ratio (Bank)			13.53	%			13.29	%			13.16	%			13.18	%			13.23	%
Tier 1 Risk-Based Capital Ratio (Bank)			13.53	%			13.29	%			13.16	%			13.18	%			13.23	%
Total Risk-Based Capital Ratio (Bank)			14.33	%			14.09	%			14.02	%			14.03	%			13.99	%
Tangible Common Equity Ratio(4) (Bank)			9.43	%			9.27	%			9.38	%			9.22	%			8.84	%

 

(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)

 

		3Q'24				2Q'24				1Q'24				4Q'23				3Q'23
Net Income
Net earnings (GAAP)		$	2,603			$	1,774			$	1,931			$	1,830			$	2,120
Plus: credit loss expense			100				444				211				707				175
Plus: income taxes			835				553				603				562				668
PTPP(1) net earnings (non-GAAP)		$	3,538			$	2,771			$	2,745			$	3,099			$	2,963
Earnings per Share (EPS)
Weighted average common shares, diluted			3,322,536				3,310,628				3,298,555				3,299,212				3,235,920
EPS, diluted (GAAP)		$	0.78			$	0.54			$	0.59			$	0.55			$	0.66
PTPP(1) EPS, diluted (non-GAAP)		$	1.06			$	0.84			$	0.83			$	0.94			$	0.92
Return on Average Assets (ROAA)(2)
Average assets		$	912,833			$	873,824			$	852,562			$	844,835			$	823,341
ROAA (GAAP)			1.14	%			0.81	%			0.91	%			0.87	%			1.03	%
PTPP(1) ROAA (non-GAAP)			1.55	%			1.27	%			1.29	%			1.47	%			1.44	%
Return on Average Equity (ROAE)(2)
Average equity		$	85,374			$	81,586			$	80,358			$	74,318			$	74,962
ROAE (GAAP)			12.20	%			8.70	%			9.61	%			9.85	%			11.31	%
PTPP(1) ROAE (non-GAAP)			16.58	%			13.59	%			13.66	%			16.68	%			15.81	%

 

		3Q'24				2Q'24				1Q'24				4Q'23				3Q'23
Tangible Common Equity Ratio (Company)
Stockholders' Equity (GAAP)		$	88,498			$	83,511			$	81,439			$	79,976			$	74,787
Less: Intangibles			-				-				-				-				-
Tangible Stockholders' Equity (non-GAAP)		$	88,498			$	83,511			$	81,439			$	79,976			$	74,787
Total Assets (GAAP)		$	931,622			$	893,381			$	862,660			$	854,528			$	831,985
Less: Intangibles			-				-				-				-				-
Tangible Assets (non-GAAP)		$	931,622			$	893,381			$	862,660			$	854,528			$	831,985
Tangible Common Equity Ratio (non-GAAP)			9.50	%			9.35	%			9.44	%			9.36	%			8.99	%
Tax-effected adjustment of net losses in HTM securities portfolio (non-GAAP)		$	720			$	1,150			$	1,144			$	1,114			$	1,624
Tangible Assets adjusted for HTM securities at fair value (non-GAAP)		$	930,902			$	892,231			$	861,516			$	853,414			$	830,361
Tangible Equity adjusted for HTM securities at fair value (non-GAAP)		$	87,778			$	82,361			$	80,295			$	78,862			$	73,163
Tangible Common Equity Ratio Adjusted (non-GAAP)			9.43	%			9.23	%			9.32	%			9.24	%			8.81	%
Tangible Common Equity Ratio (Bank)
Stockholders' Equity (GAAP)		$	87,869			$	82,789			$	80,641			$	78,763			$	73,514
Less: Intangibles			-				-				-				-				-
Tangible Stockholders' Equity (non-GAAP)		$	87,869			$	82,789			$	80,641			$	78,763			$	73,514
Total Assets (GAAP)		$	931,493			$	893,283			$	862,598			$	854,494			$	831,830
Less: Intangibles			-				-				-				-				-
Tangible Assets (non-GAAP)		$	931,493			$	893,283			$	862,598			$	854,494			$	831,830
Tangible Common Equity Ratio (non-GAAP)			9.43	%			9.27	%			9.35	%			9.22	%			8.84	%

 

⁽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 Nine Months Ended September 30,
		2024				2023
Net Income
Net earnings (GAAP)		$	6,308			$	6,878
Plus: credit loss expense			755				743
Plus: income taxes			1,991				2,178
PTPP(1) net earnings (non-GAAP)		$	9,054			$	9,799
Earnings per Share (EPS)
Weighted average common shares, diluted			3,330,863				3,221,952
EPS, diluted (GAAP)		$	1.89			$	2.13
PTPP(1) EPS, diluted (non-GAAP)		$	2.72			$	3.04
Return on Average Assets (ROAA)(2)
Average assets		$	879,826			$	817,216
ROAA (GAAP)			0.96	%			1.12	%
PTPP(1) ROAA (non-GAAP)			1.37	%			1.60	%
Return on Average Equity (ROAE)(2)
Average equity (GAAP)		$	82,450			$	72,938
ROAE (GAAP)			10.20	%			12.57	%
PTPP(1) ROAE (non-GAAP)			14.64	%			17.91	%

 

⁽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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

v3.24.3

Document And Entity Information	Oct. 25, 2024
Document Information [Line Items]
Entity, Registrant Name	PRIME MERIDIAN HOLDING COMPANY
Document, Type	8-K
Document, Period End Date	Oct. 25, 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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