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Section 1: 8-K (FORM 8-K)

pmhg20190729_8k.htm

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported) July 30, 2019

 

 

 

PRIME MERIDIAN HOLDING COMPANY 

(Exact name of registrant as specified in its charter)

 

 

 

Florida

 

333-191801

 

27-2980805

(State or other jurisdiction

of incorporation)

 

(Commission

file number)

 

(IRS employer

identification no.)

 

1897 Capital Circle NE, Second Floor, Tallahassee, FL

 

32308

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (850907-2301

 

Not Applicable

(Former name or former address, if changed since last report)

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

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.☐

Securities Registered pursuant to Section 12(b) of the Act:

Title of each class

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

 

 

 

 

Item 2.02.    Results of Operations and Financial Condition.

 

On July 30, 2019, Prime Meridian Holding Company issued a press release announcing financial results for the three- and six-month periods ended June 30, 2019. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K.

 

Item 9.01     Financial Statements and Exhibits.

 

     (d)     Exhibits.
     
       99.1                 Press release dated July 30, 2019

          

The information in this report (including the exhibits) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

PRIME MERIDIAN HOLDING COMPANY

 

 

 

 

 

 

 

By:

/s/ Clint F. Weber

 

 

Clint F. Weber

 

 

Chief Financial Officer and

Executive Vice President

 

Date: July 30, 2019

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

ex_151816.htm

Exhibit 99.1

 

 

 

 

FOR IMMEDIATE RELEASE

 

Prime Meridian Holding Company Reports

SECOND Quarter 2019 Results

 

TALLAHASSEE, FL – July 30, 2019 (GLOBE NEWSWIRE) – Prime Meridian Holding Company (OTCQX: PMHG) the parent bank holding company for Prime Meridian Bank today announced unaudited financial results for the quarter and six months ended June 30, 2019. The Company reported net earnings of $764,000, or $0.24 per basic and diluted share, for the quarter ended June 30, 2019, compared to net earnings of $1,002,000, or $0.32 per basic and diluted share, for the quarter ended June 30, 2018. The Company reported net earnings of $1,631,000, or $0.52 per basic and diluted share, for the six months ended June 30, 2019, compared to net earnings of $1,756,000, or $0.56 per basic and diluted share, for the six months ended June 30, 2018.

 

Second Quarter 2019 Highlights

 

Financial Highlights - Prime Meridian Holding Company and Subsidiary

(dollars in thousands except per share amounts)

 

   

2Q'19

   

1Q'19

   

4Q'18

   

3Q'18

   

2Q'18

 

Net Earnings

  $ 764     $ 867     $ 1,268     $ 1,018     $ 1,002  

Book value per share

  $ 16.85     $ 16.44     $ 16.19     $ 15.61     $ 15.33  

Earnings per share - Basic

  $ 0.24     $ 0.28     $ 0.40     $ 0.33     $ 0.32  

Earnings per share - Diluted

  $ 0.24     $ 0.28     $ 0.40     $ 0.33     $ 0.32  

Weighted-average basic shares outstanding

    3,144,068       3,140,401       3,131,379       3,127,038       3,123,594  

Weighted-average diluted shares outstanding

    3,150,136       3,144,071       3,136,048       3,130,171       3,126,022  

Return on average assets(1)

    0.70 %     0.82 %     1.07 %     1.03 %     1.10 %

Return on average equity(1)

    5.85       6.79       8.43       8.42       8.49  

Average yield on earning assets(1)

    4.49       4.48       4.52       4.47       4.46  

Net interest margin(1)

    3.66       3.67       3.75       3.78       3.89  

Efficiency ratio(2)

    71.86       67.75       59.45       62.26       60.14  

Nonpeforming assets/total assets

    0.44       0.14       0.09       0.04       0.02  

 

1 Ratio has been annualized

2 Efficiency Ratio represents noninterest expense divided by the sum of net interest income plus noninterest income.

 

“Overall the Bank is continuing to perform well,” said Sammie D. Dixon, Jr., Vice Chairman, President and CEO.  “Net interest income and noninterest income both increased at double-digit rates for the three and six-month periods ending June 30th compared with the same periods in 2018,” he said. “In addition, the Bank maintained strong deposit growth for the quarter while holding the overall cost of funds and net interest margin relatively stable from the first quarter.”

 

 

 

 

“Though key income drivers are overshadowed by the planned additional operating expenses attributable to bringing our Lakeland branch online, we continue to build the Bank and expand the franchise on a very solid foundation,” Dixon said.

 

A portion of the increase in the Bank’s occupancy expense is due to Lakeland startup expenses which could not be capitalized and are non-recurring beyond the second quarter. Additional expense associated with implementing the new accounting standards for the Bank’s new lease at its Timberlane Road location also contributed to the increase in occupancy expense during the second quarter.

 

Expenses associated with Lakeland accounted for approximately 35% of the increase in noninterest expense when compared to the first six months of 2018. “To enhance training and maintain operational consistency, we have strategically rotated our team members between branches to groom them to assist with growth in other new markets,” continued Dixon. “We recognized and included these costs in our pro-forma modeling when we planned to enter the market.”

 

The Bank officially opened its Lakeland, Florida office on April 16, 2019. “Lakeland is our first, true out-of-market branch,” commented Dixon. “Efficiencies will be realized as we work out the logistics related to its opening.” Dixon went on to say, “Given the experienced team we have in place, we anticipate that in the years to follow, Lakeland will be a significant contributor to the Company’s overall growth and profitability.”

 

Since December 31, 2018, growth occurred in all loan types with the exception of commercial real estate, Dixon stated. Net loan growth was impacted by participation payoffs in the first quarter and additional loan payoffs of $11.2 million in the second quarter. Taking these payoffs into consideration, the Bank had net positive loan growth of $9.8 million in the first half of the year, all of which occurred in the second quarter. “We are not where we wanted to be loan-wise,” said Dixon. “All things considered, the Bank is positioned for continued profitability.” 

 

The Bank’s mortgage team posted strong results for the quarter and continues to maintain a leading market share position in the Tallahassee market.

 

Nonperforming assets (NPAs), as a percentage of total assets, were 0.44% for the second quarter, up from 0.14% at the end of the first quarter.  “We have a seasoning 11-year old portfolio,” said Dixon. “These nonperforming relationships were previously-identified watch-list credits. They are not in the same business lines and have migrated into a nonperforming status,” he explained. “We are working through an aggressive resolution strategy to reduce NPAs and mitigate any losses we may sustain.”

 

 

 

 

Earnings Summary

                                       

(dollars in thousands)

                                       
                           

Change 2Q'19 vs.

 
   

2Q'19

   

1Q'19

   

2Q'18

   

1Q'19

   

2Q'18

 

Net Interest Income

  $ 3,759     $ 3,687     $ 3,412       2.0

%

    10.2

%

Provision for Loan Losses

    (179 )     (165 )     (155 )     8.5       15.5  

Noninterest income

    462       362       314       27.6       47.1  

Noninterest expense

    (3,033 )     (2,743 )     (2,241 )     10.6       35.3  

Income Taxes

    (245 )     (274 )     (328 )     (10.6 )     (25.3 )

Net Income

  $ 764     $ 867     $ 1,002       (11.9 )%     (23.8 )%

 

On a linked quarter basis, the Company’s net income in the second quarter of 2019 benefitted from growth in all categories of interest-earning assets, a 27.6%, or $100,000, increase in noninterest income primarily due to increased mortgage banking revenue, and lower income tax expense. These gains were offset, however, by a higher provision for loan losses and a $290,000 increase in noninterest expense, which included higher expenses related to the opening of our Lakeland, Florida office and the impact of recognizing our new lease at our Timberlane Road, Tallahassee, Florida office.

 

Compared to the same period a year ago, the Company’s net income in the second quarter of 2019 benefitted from the interest income earned on higher average balances of interest-earning assets, a $148,000 increase in noninterest income and lower income tax expense. However, these gains were offset by higher noninterest expense, mainly driven by increases in salaries and employee benefits expense, occupancy and equipment expense, and other noninterest expense.

 

Interest income

                                       

(dollars in thousands)

                         

Change 2Q'19 vs.

 
   

2Q'19

   

1Q'19

   

2Q'18

   

1Q'19

   

2Q'18

 

Interest income:

                                       

Loans

  $ 3,916     $ 3,856     $ 3,543       1.6

%

    10.5

%

Securities

    333       296       287       12.5       16.0  

Other

    361       348       82       3.7       340.2  

Total interest income

  $ 4,610     $ 4,500     $ 3,912       2.4

%

    17.8

%

 

The increase in total interest income compared to the first quarter of 2019 and the second quarter of 2018 reflects growth in all categories of interest-earning assets and higher yields on all interest-earning assets, with the exception of interest earned on mortgage loans held for sale. Net loan growth during the first half of 2019 was negatively impacted by a higher-than-normal level of loan payoffs, which approximated $28.7 million for the six-month period. Excess cash continues to be deployed in federal funds sold and interest-bearing accounts at other financial institutions.

 

Interest expense:

                                       

(dollars in thousands)

                         

Change 2Q'19 vs.

 
   

2Q'19

   

1Q'19

   

2Q'18

   

1Q'19

   

2Q'18

 

Total interest expense

  $ 851     $ 813     $ 500       4.7

%

    70.2

%

 

 

 

 

The increase in the Company’s cost of funds on a linked quarter basis and year-over-year was driven by growing balances of time deposits and money market accounts coupled with higher rates paid on those deposits. For the quarter ended June 30, 2019, the average balance of total interest-bearing deposits increased $52.3 million, or 21.9%, while the average rates paid on total interest-bearing deposits increased 33 basis points, when compared to the same period a year ago. While rate increases in 2018 have boosted yields on interest-earning assets, these increases have also resulted in higher rates paid on deposits.

 

Margin Analysis

                                                                       
   

2Q'19

   

1Q'19

   

2Q'18

 
           

Interest

                   

Interest

                   

Interest

         
   

Average

   

and

   

Yield/

   

Average

   

and

   

Yield/

   

Average

   

and

   

Yield/

 

(dollars in thousands)

 

Balance

   

Dividends

   

Rate

   

Balance

   

Dividends

   

Rate

   

Balance

   

Dividends

   

Rate

 

Interest-earning assets:

                                                                       

Loans(1)

  $ 298,058     $ 3,834       5.15

%

  $ 296,137     $ 3,798       5.13

%

  $ 281,636     $ 3,484       4.95

%

Mortgage loans held for sale

    6,957       82       4.71       4,742       58       4.89       5,120       59       4.61  

Securities

    50,943       333       2.61       46,010       296       2.57       47,336       287       2.43  

Other(2)

    54,650       361       2.64       55,327       348       2.52       16,972       82       1.93  

Total interest-earning assets

    410,608     $ 4,610       4.49       402,216     $ 4,500       4.48       351,064     $ 3,912       4.46  

Noninterest-earning assets

    25,684                       20,134                       12,480                  

Total assets

  $ 436,292                     $ 422,350                     $ 363,544                  
                                                                         

Interest-bearing liabilities:

                                                                       

Savings, NOW and money-market deposits

  $ 242,815     $ 597       0.98

%

  $ 243,509     $ 603       0.99

%

  $ 211,513     $ 415       0.78

%

Time deposits

    48,573       254       2.09       42,699       210       1.97       27,592       85       1.23  

Total interest-bearing deposits

    291,388       851       1.17       286,208       813       1.14       239,105       500       0.84  

Other borrowings

    34       -               -       -               -       -          

Total interest-bearing liabilities

    291,422     $ 851       1.17       286,208     $ 813       1.14       239,105     $ 500       0.84  

Noninterest-bearing deposits

    87,077                       83,184                       75,932                  

Noninterest-bearing liabilities

    5,545                       1,900                       1,311                  

Stockholders' equity

    52,248                       51,058                       47,196                  

Total liabilities and stockholders' equity

  $ 436,292                     $ 422,350                     $ 363,544                  
                                                                         

Net earning assets

  $ 119,186                     $ 116,008                     $ 111,959                  

Interest rate spread

                    3.32

%

                    3.34

%

                    3.62

%

Net interest margin(3)

                    3.66                       3.67                       3.89  

 

(1)   Includes nonaccrual loans

(2)    Other interest-earning assets include federal funds sold, interest-bearing deposits and FHLB stock.

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

 

Excess liquidity and higher cost of funds continues to pressure the net interest margin. Other interest-earning assets, predominantly federal funds sold and interest-bearing deposits, account for the majority of growth in interest-earning assets since June 30, 2018. Management expects margin improvement when these funds are strategically deployed into loans.

 

Provision for Loan Losses

 

The provision for loan losses for the second quarter of 2019 was $179,000, compared to $165,000 for the first quarter of 2019 and $155,000 for the second quarter of 2018. Higher reserves on specific impaired loans accounted for more than half of the provision expense in the second quarter of 2019.

 

Noninterest income

                                       

(dollars in thousands)

                         

Change 2Q'19 vs.

 
   

2Q'19

   

1Q'19

   

2Q'18

   

1Q'19

   

2Q'18

 

Service charges and fees on deposit accounts

  $ 68     $ 71     $ 89       (4.2 )%     (23.6 )%

Mortgage banking revenue

    197       106       105       85.8       87.6  

Income from bank-owned life insurance

    45       45       10       -       350.0  

Other income

    152       140       110       8.6       38.2  

Total noninterest income

  $ 462     $ 362     $ 314       27.6

%

    47.1

%

 

 

 

 

The Company reported an increase in mortgage banking revenue during the second quarter of 2019, after several quarters of decline. The Company defines mortgage banking revenue as gains and losses on the sale of mortgage loans originated for sale and wholesale brokerage fees, net of direct origination costs. The Company’s mortgage team reported increased production in terms of dollar volume along with higher average profitability per loan when comparing the second quarter of 2019 to the prior quarter and the second quarter of 2018.

 

Income from bank-owned life insurance stayed steady from the first quarter of 2019 but noticeably increased from the second quarter of 2018. This was due to an increased investment in this asset that occurred during the fourth quarter of 2018.

 

The increases in other income from the first quarter of 2019 and the second quarter of 2018 are mostly attributed to higher interchange income, before direct expenses, from ATM/debit cards due to increased transaction volume.

 

These aforementioned gains were partially offset by a decline in service charges and fees on deposit accounts due to lower volume of non-sufficient funds fees, a trend that has been evident for the past few quarters.

 

Noninterest expense

                                       

(dollars in thousands)

                         

Change 2Q'19 vs.

 
   

2Q'19

   

1Q'19

   

2Q'18

   

1Q'19

   

2Q'18

 

Salaries and employee benefits

  $ 1,579     $ 1,557     $ 1,218       1.4

%

    29.6

%

Occupancy and equipment

    427       275       226       55.3       88.9  

Professional fees

    106       77       97       37.7       9.3  

Marketing

    194       199       133       (2.5 )     45.9  

FDIC/State Assessment

    44       43       38       2.3       15.8  

Software maintenance, amortization and other

    167       152       159       9.9       5.0  

Other

    516       440       370       17.3       39.5  

Total noninterest expense

  $ 3,033     $ 2,743     $ 2,241       10.6

%

    35.3

%

 

 

Compared to the prior quarter, the key drivers of increased noninterest expense were higher occupancy and equipment expense and other noninterest expense, namely increased travel expense, both related to the opening of the Lakeland office. During the second quarter of 2019, the Company expensed approximately $69,000 in non-recurring occupancy expenses related to the Lakeland office that were not able to be capitalized. Also, in compliance with the new lease accounting standards, the Company recorded a right of use asset and associated liability with its new lease at its Timberlane office in Tallahassee. This resulted in approximately $59,000 in additional lease expense for the quarter.

 

Compared to the same period a year ago, the key drivers of the increase in total noninterest expense were higher salaries and employee benefits expense, occupancy and equipment expense, and other noninterest expense. Nearly half of the increase in total noninterest expense is attributed to higher salaries and employee benefits expense. The Company had seventy-one full-time equivalent employees at June 30, 2018, compared to ninety full-time equivalent employees at June 30, 2019. The increase in employees is not only attributed to staffing the Lakeland office, but also to preparing the Company as a whole for continued organic growth. The increase in occupancy expense is due to the same factors already discussed while increases in other noninterest expense can be attributed to higher travel expense and small incremental increases in numerous expense categories, all expected with a growing company. All in all, expenses associated with the new Lakeland office accounted for approximately 42%, or $336,000, of the increase in noninterest expense when comparing the second quarter of 2019 over the comparable period in 2018.

 

 

 

 

Balance Sheet

 

At June 30, 2019, the Company reported $450.7 million in total assets, $390.3 million in deposits, and $299.9 million in net portfolio loans. This compares to $401.7 million in total assets, $349.1 million in deposits, and $290.1 million in net portfolio loans at December 31, 2018. Loan growth occurred in all categories, with the exception of commercial real estate which experienced a $8.7 million decrease. The composition of the Bank’s loan portfolio was as follows on the indicated dates:

 

Prime Meridian Holding Company and Subsidiary

                         

Loans by Class

                               

(dollars in thousands )

                               
   

June 30, 2019

   

December 31, 2018

 
    unaudited     audited  
   

Amount

   

% of Total

   

Amount

   

% of Total

 

Commercial real estate

  $ 73,807       24.3

%

  $ 82,494       28.1

%

Residential real estate and home equity

    127,425       42.0       121,454       41.4  

Construction

    35,069       11.6       31,601       10.8  

Commercial

    59,601       19.6       51,018       17.4  

Consumer

    7,582       2.5       6,747       2.3  
                                 

Total Loans

    303,484       100.0

%

    293,314       100.0

%

                                 

Net deferred loan costs

    471               460          

Allowance for loan losses

    (4,006 )             (3,661 )        

Loans, net

  $ 299,949             $ 290,113     $ 9,836  

 

Total stockholders’ equity was $53.0 million, or 11.8% of total assets, at June 30, 2019, compared to $50.8 million, or 12.7% of total assets, at December 31, 2018.  Retained earnings and an $802,000 positive change in accumulated other comprehensive income both drove the increase in equity. Book value per share increased from $16.19 at December 31, 2018 to $16.85 at June 30, 2019, with 3,144,456 common shares outstanding.

 

As of June 30, 2019, the Bank was considered to be “well capitalized” with a Tier 1 Leverage Capital Ratio of 9.10%, a 12.69% Common Equity Tier 1 Risk-Based Capital Ratio, a 12.69% Tier 1 Risk-Based Capital Ratio, and a 13.94% Total Risk-Based Capital Ratio.

 

 

 

 

Asset Quality

 

Loans totaling $2.8 million were deemed to be impaired under the Bank’s policy at June 30, 2019, while loans totaling $1.2 million were deemed to be impaired under the Bank’s policy at December 31, 2018. At June 30, 2019, the Bank had fourteen nonaccrual loans in the aggregate amount of $1.96 million compared to six nonaccrual loans totaling $342,000 at December 31, 2018. At June 30, 2019, the Company reported no accruing loans greater than 90 days past due. Net recoveries totaled $27,000 for the quarter ended June 30, 2019 and nonperforming assets as a percentage of total assets was 0.44%. Management believes that the allowance for loan losses which was $4.0 million, or 1.32% of gross loans, at June 30, 2019 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, 2019, the Bank had 90 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.

 

 

Tables Follow

 

 

 

 

Prime Meridian Holding Company and Subsidiary

                                 

Condensed Consolidated Statements of Earnings (Unaudited)

                                 

(in thousands except per share amounts)

                                       
                                         
   

2Q'19

   

1Q'19

   

4Q'18

   

3Q'18

   

2Q'18

 

Interest income:

                                       

Loans

  $ 3,916     $ 3,856     $ 3,854     $ 3,798     $ 3,543  

Securities

    333       296       280       276       287  

Other

    361       348       280       198       82  

Total interest income

    4,610       4,500       4,414       4,272       3,912  

Interest Expense-

                                       

Deposits

    851       813       748       662       500  

Total interest expense

    851       813       748       662       500  

Net interest income

    3,759       3,687       3,666       3,610       3,412  

Provision for loan losses

    179       165       47       135       155  

Net interest income after provision for loan losses

    3,580       3,522       3,619       3,475       3,257  
                                         

Noninterest income:

                                       

Service charges and fees on deposit accounts

    68       71       74       83       89  

Mortgage banking revenue

    197       106       108       124       105  

Income from bank-owned life insurance

    45       45       34       11       10  

Other income

    152       140       128       120       110  

Total noninterest income

    462       362       344       338       314  
                                         

Noninterest expense:

                                       

Salaries and employee benefits

    1,579       1,557       1,319       1,341       1,218  

Occupancy and equipment

    427       275       234       237       226  

Professional fees

    106       77       107       86       97  

Marketing

    194       199       144       193       133  

FDIC/State Assessment

    44       43       51       38       38  

Software maintenance, amortization and other

    167       152       160       167       159  

Other

    516       440       369       396       370  

Total noninterest expense

    3,033       2,743       2,384       2,458       2,241  
                                         

Earnings before income taxes

    1,009       1,141       1,579       1,355       1,330  

Income taxes

    245       274       311       337       328  

Net earnings

  $ 764     $ 867     $ 1,268     $ 1,018     $ 1,002  
                                         

Basic earnings per share

  $ 0.24     $ 0.28     $ 0.40     $ 0.33     $ 0.32  
                                         

Diluted earnings per share

  $ 0.24     $ 0.28     $ 0.40     $ 0.33     $ 0.32  

 

 

 

 

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,

 
   

unaudited

   

unaudited

 
   

2019

   

2018

   

2019

   

2018

 

Interest income:

                               

Loans

  $ 3,916     $ 3,543     $ 7,772     $ 6,817  

Securities

    333       287       629       575  

Other

    361       82       709       156  

Total interest income

    4,610       3,912       9,110       7,548  

Interest expense-

                               

Deposits

    851       500       1,664       897  

Total interest expense

    851       500       1,664       897  

Net interest income

    3,759       3,412       7,446       6,651  

Provision for loan losses

    179       155       344       409  

Net interest income after provision for loan losses

    3,580       3,257       7,102       6,242  

Noninterest income:

                               

Service charges and fees on deposit accounts

    68       89       139       176  

Mortgage banking revenue

    197       105       303       215  

Income from bank-owned life insurance

    45       10       90       21  

Gain on sale of securities available for sale

    -       -       7       -  

Other income

    152       110       285       212  

Total noninterest income

    462       314       824       624  

Noninterest expense:

                               

Salaries and employee benefits

    1,579       1,218       3,136       2,446  

Occupancy and equipment

    427       226       702       461  

Professional fees

    106       97       183       181  

Marketing

    194       133       393       340  

FDIC/State assessment

    44       38       87       74  

Software maintenance, amortization and other

    167       159       319       307  

Other

    516       370       956       729  

Total noninterest expense

    3,033       2,241       5,776       4,538  

Earnings before income taxes

    1,009       1,330       2,150       2,328  

Income taxes

    245       328       519       572  

Net earnings

  $ 764     $ 1,002     $ 1,631     $ 1,756  
                                 

Earnings per common share:

                               

Basic

  $ 0.24     $ 0.32     $ 0.52     $ 0.56  

Diluted

    0.24       0.32       0.52       0.56  

Cash dividends per common share(1)

    -       -       0.12       0.10  

 

(1) Annual cash dividends were paid during the first quarters of 2019 and 2018

 

 

 

 

Prime Meridian Holding Company and Subsidiary

                 

Condensed Consolidated Balance Sheets

                         

(in thousands)

                                       
                                         
   

2Q'19

   

1Q'19

   

4Q'18

   

3Q'18

   

2Q'18

 
   

(Unaudited)

   

(Unaudited)

   

(Audited)

   

(Unaudited)

   

(Unaudited)

 

Assets

                                       

Cash & cash equivalents

  $ 72,042     $ 66,805     $ 48,038     $ 56,775     $ 32,429  

Securities available for sale

    52,431       48,205       45,384       44,359       46,657  

Loans, held for sale

    6,223       5,808       4,767       6,782       7,321  

Loans, net

    299,949       289,900       290,113       289,022       285,473  

Federal Home Loan Bank stock

    404       404       355       355       355  

Premises & equipment, net

    7,311       7,055       4,656       4,699       4,828  

Right of use asset

    3,768       -       -       -       -  

Accrued interest receivable

    1,100       1,023       1,034       1,028       1,027  

Bank-owned life insurance

    6,413       6,368       6,323       1,789       1,778  

Other assets

    1,086       1,281       1,032       1,149       1,137  

Total Assets

  $ 450,727     $ 426,849     $ 401,702     $ 405,958     $ 381,005  
                                         
                                         

Liabilities and Stockholders' Equity

                                       

Noninterest-bearing demand deposits

  $ 89,608     $ 83,186     $ 80,097     $ 83,296     $ 76,564  
Savings, NOW and money-market deposits     247,804       244,584       227,674       230,817       220,363  

Time deposits

    52,912       45,743       41,296       41,133       34,896  

Total Deposits

    390,324       373,513       349,067       355,246       331,823  

Other borrowings

    770       -       -       -       -  

Official checks

    1,496       495       837       865       602  

Lease liability

    3,827       -       -       -       -  

Other liabilities

    1,314       1,157       978       984       644  

Total Liabilities

    397,731       375,165       350,882       357,095       333,069  

Total Stockholders' Equity

    52,996       51,684       50,820       48,863       47,936  
Total Liabilities and Stockholders' Equity   $ 450,727     $ 426,849     $ 401,702     $ 405,958     $ 381,005  

 

 

 

 

Prime Meridian Holding Company and Subsidiary

                                       

Financial Highlights (Unaudited)

                                       

(dollars in thousands, except per share amounts)

                                       
                                         
   

2Q'19

   

1Q'19

   

4Q'18

   

3Q'18

   

2Q'18

 
                                         

Per Share Data:

                                       

Earnings per share - Basic

  $ 0.24     $ 0.28     $ 0.40     $ 0.33     $ 0.32  

Earnings per share - Diluted

  $ 0.24     $ 0.28     $ 0.40     $ 0.33     $ 0.32  

Book value per share

  $ 16.85     $ 16.44     $ 16.19     $ 15.61     $ 15.33  

Shares outstanding

    3,144,456       3,143,140       3,138,945       3,128,671       3,125,233  

Weighted-average basic shares outstanding

    3,144,068       3,140,401       3,131,379       3,127,038       3,123,594  

Weighted-average diluted shares outstanding

    3,150,136       3,144,071       3,136,048       3,130,171       3,126,022  
                                         

Selected Performance Ratios and Other Data:

                                       

Return on average assets(1)

    0.70

%

    0.82

%

    1.07

%

    1.03

%

    1.10

%

Return on average equity(1)

    5.85       6.79       8.43       8.42       8.49  

Average yield on earning assets

    4.49       4.48       4.52       4.47       4.46  

Net interest margin(2)

    3.66       3.67       3.75       3.78       3.89  

Efficiency ratio(3)

    71.86       67.75       59.45       62.26       60.14  

Noninterest expense/average assets(1)

    2.78       2.60       2.47       2.49       2.47  
                                         

Asset Quality Data:

                                       

Nonaccrual loans

  $ 1,962     $ 365     $ 342     $ 179     $ 90  

Total nonperforming assets

    1,962       608       342       179       90  

Nonpeforming assets/total assets

    0.44

%

    0.14

%

    0.09

%

    0.04

%

    0.02

%

                                         

Capital Ratios:

                                       

Tier 1 Leverage Capital Ratio (Company)

    12.08

%

    12.28

%

    12.61

%

    12.64

%

    13.43

%

Tier 1 Leverage Capital Ratio (Bank)

    9.10       9.18       9.28       9.21       9.68  

Common Equity Tier I Capital Ratio (Bank)

    12.69       13.00       12.90       12.40       12.28  

Tier I Risk-Based Capital Ratio (Bank)

    12.69       13.00       12.90       12.40       12.28  

Total Capital Ratio (Bank)

    13.94       14.25       14.15       13.65       13.51  

 

 

(1)   Annualized

(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.

 

 

CONTACT: Clint F. Weber, Chief Financial Officer and Executive Vice President
  (850) 907-2301
  Prime Meridian Holding Company
  Website: www.primemeridianbank.com

 

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