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) January 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: (850) 907-2301
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. ☐
Item 2.02. Results of Operations and Financial Condition.
On January 30, 2019, Prime Meridian Holding Company issued a press release announcing financial results for the three-month and one-year periods ended December 31, 2018. 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 January 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 |
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By: |
/s/ R. Randy Guemple |
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R. Randy Guemple |
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Chief Financial Officer and Executive Vice President |
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Date: January 30, 2019
Exhibit 99.1
FOR IMMEDIATE RELEASE
Prime Meridian Holding Company Reports
fourth Quarter and year end 2018 Results
TALLAHASSEE, FL., January 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 year ended December 31, 2018. The Company reported net earnings of $1.3 million, or $0.40 per basic and diluted share, for the quarter ended December 31, 2018, compared to net earnings of $694,000, or $0.21 per basic and diluted share, for the quarter ended December 31, 2017. For the year ended December 31, 2018, the Company reported net earnings of $4.0 million, or $1.29 per basic and diluted share, compared to $2.8 million, or $1.04 per basic and diluted share, for the same period a year ago.
The Company also announced today that its Board of Directors has declared an annual cash dividend of $0.12 per share on the Company’s common stock. The dividend is payable on March 5, 2019 to shareholders of record on February 14, 2019.
“Our tenth year was record-breaking for Prime Meridian Bank,” said Sammie D. Dixon, Jr., Vice Chairman, President and CEO. “We surpassed $400 million in assets with a year-over-year increase in net income of 43.5%, inclusive of the beneficial effect of the 2017 tax reduction legislation.”
He also cited the continued consolidation of competitors, both in the immediate area and throughout the state of Florida, as, “growth opportunities for us. Our reputation and culture of relationship banking stand in contrast to the recent changes in our industry,” he said.
Another by-product of the reduction in number of community banks is, “We gain good team members to build bench strength,” Dixon continued.
Despite some uncertainty in the economy, Dixon is steadfast the Bank’s credit culture does not change. “If the structure of a loan does not align with our strategy, it won’t happen,” he said. “We are not interested in growth for growth’s sake.”
“In the competitive landscape we stay the course on everything we do,” Dixon continued. “We remain true to our model and the principles on which we were founded over 10 years ago.”
Fourth Quarter 2018 Highlights
● |
On November 20, 2018, Prime Meridian Bank filed application with -- and subsequently received approval from -- the FDIC to establish a full-service branch in Lakeland, Florida at 3340 South Florida Avenue. Details of the branch and its operational staff will be made available during the first quarter of 2019. |
● |
October’s Hurricane Michael was a significant event in Florida. Fortunately, the Bank's staff was mostly unaffected and its offices were not damaged. Some of our financed properties in the panhandle, however, did sustain damage though not resulting in material financial effects to the Bank. Unfortunately, some institutions in neighboring counties did not fare as well. After the storm, senior management engaged in discussions with other banks that suffered losses in order to improve our disaster recovery planning for future storms. |
● |
In the fourth quarter the Bank set up and began testing Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) accounts – two deposit tools which allow our large depositors access to multi-million-dollar FDIC insurance. These tools are intended to boost an already strong deposit base for the Bank. |
● |
In Leon County throughout 2018 Prime Meridian Bank consistently maintained a solid third place position in both mortgage dollar volume and number of mortgage originations. “We are very proud of our mortgage team,” said Dixon. |
Full Year 2018 Highlights
Financial Highlights - Prime Meridian Holding Company and Subsidiary |
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(dollars in thousands except per share amounts) |
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Year Ended December 31, |
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2018 |
2017 |
|||||||
Net Earnings |
$ | 4,042 | $ | 2,817 | ||||
Book value per share |
$ | 16.19 | $ | 15.06 | ||||
Earnings per share - Basic |
$ | 1.29 | $ | 1.04 | ||||
Earnings per share - Diluted |
$ | 1.29 | $ | 1.04 | ||||
Weighted-average basic shares outstanding |
3,125,689 | 2,704,382 | ||||||
Weighted-average diluted shares outstanding |
3,131,546 | 2,711,699 | ||||||
Return on average assets |
1.07 |
% |
0.85 |
% |
||||
Return on average equity |
8.43 |
% |
7.17 |
% |
||||
Average yield on earning assets |
4.44 |
% |
4.05 |
% |
||||
Net interest margin |
3.81 |
% |
3.68 |
% |
||||
Efficiency ratio(1) |
61.58 |
% |
62.80 |
% |
||||
Nonpeforming assets/total assets |
0.09 |
% |
0.04 |
% |
1 Efficiency Ratio represents noninterest expense divided by the sum of net interest income plus noninterest income.
Income Statement
Earnings Summary |
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(dollars in thousands) |
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Change 4Q18 vs. |
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4Q18 |
3Q18 |
4Q17 |
3Q18 |
4Q17 |
YE18 |
YE17 |
Change YOY |
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Net Interest Income |
$ | 3,666 | $ | 3,610 | $ | 3,121 | 1.6 | % | 17.5 | % | $ | 13,927 | $ | 11,770 | 18.3 | % | ||||||||||||||||
Provision for Loan Losses |
47 | 135 | 69 | -65.2 | % | -31.9 | % | 591 | 256 | 130.9 | % | |||||||||||||||||||||
Noninterest income |
344 | 338 | 304 | 1.8 | % | 13.2 | % | 1,306 | 1,153 | 13.3 | % | |||||||||||||||||||||
Noninterest expense |
2,384 | 2,458 | 2,112 | -3.0 | % | 12.9 | % | 9,380 | 8,115 | 15.6 | % | |||||||||||||||||||||
Income Taxes |
311 | 337 | 550 | -7.7 | % | -43.5 | % | 1,220 | 1,735 | -29.7 | % | |||||||||||||||||||||
Net Income |
$ | 1,268 | $ | 1,018 | $ | 694 | 24.6 | % | 82.7 | % | $ | 4,042 | $ | 2,817 | 43.5 | % |
The Company reported record net earnings for the quarter and year ended December 31, 2018, boosted by organic loan growth, higher transactional volume for debit cards, and a lower corporate tax rate.
Several positive macroeconomic factors benefitted the Company (and most banks) in 2018. In December, 2018, the Federal Reserve increased rates for the ninth time since December, 2015, when the current tightening cycle began. The Bank’s increased volume of new loan production has outpaced the increases in its funding costs, thus improving net interest income. Additionally, the Tax Cuts and Job Acts of 2017 resulted in a lower corporate income tax rate in 2018, which was a positive stimulus to most U.S. companies. On a more local level, continued consolidation in our immediate market provided opportunities for the Company to capitalize on its relationship banking model.
Interest Income
Interest income |
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(dollars in thousands) |
Change 4Q18 vs. |
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4Q18 |
3Q18 |
4Q17 |
3Q18 |
4Q17 |
YE18 |
YE17 |
Change YOY |
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Interest income: |
||||||||||||||||||||||||||||||||
Loans |
$ | 3,854 | $ | 3,798 | $ | 3,091 | 1.5 | % | 24.7 | % | $ | 14,469 | $ | 11,589 | 24.9 | % | ||||||||||||||||
Securities |
280 | 276 | 274 | 1.5 | % | 2.2 | % | 1,131 | 983 | 15.1 | % | |||||||||||||||||||||
Other |
280 | 198 | 108 | 41.4 | % | 159.3 | % | 634 | 379 | 67.3 | % | |||||||||||||||||||||
Total interest income |
$ | 4,414 | $ | 4,272 | $ | 3,473 | 3.3 | % | 27.1 | % | $ | 16,234 | $ | 12,951 | 25.3 | % |
Organic growth in the Company’s loan portfolio and higher yields drove the increase in interest income over the third quarter of 2018 and the fourth quarter of 2017. Other interest income was fueled by increased investment in federal funds sold and the higher rate paid on such funds.
Year over year, the Company’s average net loan portfolio increased $43.1 million, or 17.9%. This organic growth, in conjunction with higher average yields, accounted for over 85% of the increase in total interest income. Additional investment in federal funds sold and interest income on mortgage-backed securities also helped drive the increase in interest income.
Interest Expense
Interest expense: |
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(dollars in thousands) |
Change 4Q18 vs. |
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4Q18 |
3Q18 |
4Q17 |
3Q18 |
4Q17 |
YE18 |
YE17 |
Change YOY |
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Total interest expense |
$ | 748 | $ | 662 | $ | 352 | 13.0 | % | 112.5 | % | $ | 2,307 | $ | 1,181 | 95.3 | % |
The increase in the Company’s cost of funds quarter over quarter and year over year was driven by growing balances of time deposits and money market accounts and higher rates paid on those deposits. For the year ended December 31, 2018, the average balance of interest-bearing deposits increased $31.5 million, or 14.3%, while the average rates paid on deposits increased 38 basis points.
Net Interest Margin
Margin Analysis |
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(dollars in thousands) |
Change 4Q18 vs. |
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4Q18 |
3Q18 |
4Q17 |
3Q18 |
4Q17 |
YE18 |
YE17 |
Change YOY |
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Average balance interest-earnings assets |
$ | 390,867 | $ | 382,258 | $ | 337,359 | $ | 8,609 | $ | 53,508 | $ | 365,843 | $ | 319,980 | $ | 45,863 | ||||||||||||||||
Average yield on interest-earning assets |
4.52 | % | 4.47 | % | 4.12 | % | 0.05 | % | 0.40 | % | 4.44 | % | 4.05 | % | 0.39 | % | ||||||||||||||||
Average balance interest-bearing liabilities |
$ | 272,243 | $ | 263,837 | $ | 228,418 | $ | 8,406 | $ | 43,825 | $ | 251,586 | $ | 220,053 | $ | 31,533 | ||||||||||||||||
Average yield on interest-bearing liabilities |
1.10 | % | 1.00 | % | 0.62 | % | 0.10 | % | 0.48 | % | 0.92 | % | 0.54 | % | 0.38 | % | ||||||||||||||||
Net interest margin |
3.75 | % | 3.78 | % | 3.70 | % | -0.03 | % | 0.05 | % | 3.81 | % | 3.68 | % | 0.13 | % |
Compared to the prior quarter, the margin compression in the fourth quarter of 2018 is explained by a change in the earning assets mix, with a higher balance of federal funds sold in the fourth quarter.
Comparing the quarter and year ended December 31, 2018 to comparable periods in 2017, the improvement in net interest margin was primarily driven by higher loan yields and a change in the earning assets mix, with a higher percentage of loans in 2018. The combination of these two events outpaced the increase in interest-bearing liabilities and the cost of funds.
Provision for Loan Losses
The provision for loan losses was $47,000 for the quarter ended December 31, 2018, representing an $88,000, or 65.2%, decrease over the quarter ended September 30, 2018, due to nominal loan growth of $1.1 million in the fourth quarter. Compared to the fourth quarter of 2017, the provision for loan losses decreased $22,000, or 31.9%. This decline is attributed to higher loan growth from the third quarter to the fourth quarter in 2017, when compared to the same time periods in 2018.
For the year ended December 31, 2018, the provision for loan losses increased $335,000, or 130.9%, due to the Company’s 15.9% increase in net loans and additional reserves taken on impaired loans during the year.
Noninterest Income
Noninterest income |
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(dollars in thousands) |
Change 4Q18 vs. |
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4Q18 |
3Q18 |
4Q17 |
3Q18 |
4Q17 |
YE18 |
YE17 |
Change YOY |
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Service charges and fees on deposit accounts |
$ | 74 | $ | 83 | $ | 81 | -10.8 | % | -8.6 | % | $ | 333 | $ | 322 | 3.4 | % | ||||||||||||||||
Mortgage banking revenue |
108 | 124 | 119 | -12.9 | % | -9.2 | % | 447 | 435 | 2.8 | % | |||||||||||||||||||||
Income from bank-owned life insurance |
34 | 11 | 11 | 209.1 | % | 209.1 | % | 66 | 46 | 43.5 | % | |||||||||||||||||||||
Other income |
128 | 120 | 93 | 6.7 | % | 37.6 | % | 460 | 350 | 31.4 | % | |||||||||||||||||||||
Total noninterest income |
$ | 344 | $ | 338 | $ | 304 | 1.8 | % | 13.2 | % | $ | 1,306 | $ | 1,153 | 13.3 | % |
Noninterest income stayed relatively flat from the third quarter of 2018 to the fourth quarter of 2018. The modest decline in service charges and fees on deposit accounts is mostly due to lower non-sufficient funds fees while the decrease in mortgage banking revenue is attributed to a modest slowdown in secondary market loan production and exceptionally strong mortgage loan production in the third quarter of 2018. The Bank’s additional investment in bank-owned life insurance (“BOLI”) resulted in higher income from this asset during the fourth quarter, while income from ATM and debit cards increased other income due to higher transaction volume.
Comparing the fourth quarter of 2017 to 2018, a decline in FHA loan originations led to lower mortgage banking revenue in 2018. The additional investment in BOLI and increased transaction volume for ATM and debit cards in 2018 helped compensate for the declines in mortgage banking revenue and services charges and fees on deposit accounts over the prior year fourth quarter.
Year over year, the driver of noninterest income was the $110,000 increase in other income, which is principally due to a higher volume of ATM and debit card transactions.
Noninterest Expense
Noninterest expense |
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(dollars in thousands) |
Change 4Q18 vs. |
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4Q18 |
3Q18 |
4Q17 |
3Q18 |
4Q17 |
YE18 |
YE17 |
Change YOY |
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Salaries and employee benefits |
$ | 1,319 | $ | 1,341 | $ | 1,129 | -1.6 | % | 16.8 | % | 5,106 | 4,236 | 20.5 | % | ||||||||||||||||||
Occupancy and equipment |
234 | 237 | 220 | -1.3 | % | 6.4 | % | 932 | 947 | -1.6 | % | |||||||||||||||||||||
Professional fees |
107 | 86 | 85 | 24.4 | % | 25.9 | % | 374 | 320 | 16.9 | % | |||||||||||||||||||||
Marketing |
144 | 193 | 134 | -25.4 | % | 7.5 | % | 677 | 574 | 17.9 | % | |||||||||||||||||||||
FDIC/State Assessment |
51 | 38 | 35 | 34.2 | % | 45.7 | % | 163 | 158 | 3.2 | % | |||||||||||||||||||||
Software maintenance, amortization and other |
160 | 167 | 141 | -4.2 | % | 13.5 | % | 634 | 535 | 18.5 | % | |||||||||||||||||||||
Other |
369 | 396 | 368 | -6.8 | % | 0.3 | % | 1,494 | 1,345 | 11.1 | % | |||||||||||||||||||||
Total noninterest expense |
$ | 2,384 | $ | 2,458 | $ | 2,112 | -3.0 | % | 12.9 | % | $ | 9,380 | $ | 8,115 | 15.6 | % |
The decrease in noninterest expense from the third quarter of 2018 to the fourth quarter of 2018 is due in large part to the timing of certain expenses, such as marketing expense and incentive accruals. When comparing the fourth quarter and year ended December 31, 2018 to the comparable periods in 2017, the primary driver of noninterest expense growth is higher salaries and employee benefits expense as the Bank continues to grow and add personnel. Full-time equivalent employees increased from 71 at December 31, 2017 to 79 at December 31, 2018. In addition to the 20.5% growth in salaries and employee benefits, modest gains in marketing expense, software, maintenance, amortization, and other expense, and other noninterest expense fueled the growth in noninterest expense.
Income Taxes
The Tax Cuts and Job Acts of 2017 resulted in a lower corporate income tax rate in 2018, thus helping boost net earnings for both the quarter and the year. The effective tax rate was 44.2% for the fourth quarter of 2017 and 38.1% for the year 2017, compared to 19.7% for the fourth quarter of 2018 and 23.2% for the year 2018. Income taxes decreased $239,000 quarter over quarter and $515,000 year over year when comparing 2017 to 2018.
Balance Sheet
At December 31, 2018, the Company reported $401.7 million in total assets, $349.1 million in deposits, and $290.1 million in portfolio net loans. This compares to $347.2 million in total assets, $298.3 million in deposits, and $250.3 million in portfolio net loans at December 31, 2017. Loan growth occurred across all categories, except consumer loans, from December 31, 2017 to December 31, 2018, with the majority of the increase attributed to growth in the residential and home equity category. The composition of the Bank’s loan portfolio was as follows on the indicated dates:
Prime Meridian Holding Company and Subsidiary |
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Loans by Class |
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(dollars in thousands ) |
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December 31, 2018 |
December 31, 2017 |
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unaudited | audited | |||||||||||||||
Amount |
% of Total |
Amount |
% of Total |
|||||||||||||
Commercial real estate |
$ | 82,494 | 28.1 |
% |
$ | 79,565 | 31.5 |
% |
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Residential real estate and home equity |
121,454 | 41.4 | 94,824 | 37.4 | ||||||||||||
Construction |
31,601 | 10.8 | 26,813 | 10.6 | ||||||||||||
Commercial |
51,018 | 17.4 | 44,027 | 17.4 | ||||||||||||
Consumer |
6,747 | 2.3 | 7,742 | 3.1 | ||||||||||||
Total Loans |
293,314 | 100.0 |
% |
252,971 | 100.0 |
% |
||||||||||
Net deferred loan costs |
460 | 424 | ||||||||||||||
Allowance for loan losses |
(3,661 | ) | (3,136 | ) | ||||||||||||
Loans, net |
$ | 290,113 | $ | 250,259 |
Total stockholders’ equity was $50.8 million, or 12.7% of total assets, at December 31, 2018, compared to $47.0 million, or 13.5% of total assets, at December 31, 2017. Book value per share increased from $15.06 at December 31, 2017 to $16.19 at December 31, 2018, with 3,138,945 common shares outstanding.
As of December 31, 2018, the Bank was considered to be “well capitalized” with a Tier 1 Leverage Capital Ratio of 9.28%, a 12.90% Common Equity Tier 1 Risk-Based Capital Ratio, a 12.90% Tier 1 Risk-Based Capital Ratio, and a 14.15% Total Risk-Based Capital Ratio.
Asset Quality
Loans totaling $1.2 million were deemed to be impaired under the Bank’s policy at December 31, 2018, while loans totaling $134,000 were deemed to be impaired under the Bank’s policy at December 31, 2017. At December 31, 2018, the Bank had six nonaccrual loans in the aggregate amount of $342,000 compared to two nonaccrual loans totaling $134,000 at December 31, 2017. Net charge-offs totaled $66,000 for the year ended December 31, 2018 and nonperforming assets as a percentage of total assets was 0.09%. Management believes that the allowance for loan losses which was $3.7 million, or 1.25% of gross loans, at December 31, 2018 is adequate.
About Prime Meridian Holding Company
Headquartered in Tallahassee, Florida, Prime Meridian Holding Company 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 serves its primary market of the Tallahassee Metropolitan Statistical Area, but also serves clients in the North Florida and South Georgia markets. The Bank currently has three office locations, two in Tallahassee, and a third location in Crawfordville, Florida. As of December 31, 2018, the consolidated Company had 79 full-time equivalent employees. For more information about Prime Meridian Holding Company, please visit our website at www.primemeridianbank.com
Tables Follow
Prime Meridian Holding Company and Subsidiary |
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Condensed Consolidated Statements of Earnings (Unaudited) |
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(in thousands except per share amounts) |
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4Q18 |
3Q18 |
2Q18 |
1Q18 |
4Q17 |
||||||||||||||||
Interest income: |
||||||||||||||||||||
Loans |
$ | 3,854 | $ | 3,798 | $ | 3,543 | $ | 3,274 | $ | 3,091 | ||||||||||
Securities |
280 | 276 | 287 | 288 | 274 | |||||||||||||||
Other |
280 | 198 | 82 | 74 | 108 | |||||||||||||||
Total interest income |
4,414 | 4,272 | 3,912 | 3,636 | 3,473 | |||||||||||||||
Interest Expense- |
||||||||||||||||||||
Deposits |
748 | 662 | 500 | 397 | 352 | |||||||||||||||
Total interest expense |
748 | 662 | 500 | 397 | 352 | |||||||||||||||
Net interest income |
3,666 | 3,610 | 3,412 | 3,239 | 3,121 | |||||||||||||||
Provision for loan losses |
47 | 135 | 155 | 254 | 69 | |||||||||||||||
Net interest income after provision for loan losses |
3,619 | 3,475 | 3,257 | 2,985 | 3,052 | |||||||||||||||
Noninterest income: |
||||||||||||||||||||
Service charges and fees on deposit accounts |
74 | 83 | 89 | 87 | 81 | |||||||||||||||
Mortgage banking revenue |
108 | 124 | 105 | 110 | 119 | |||||||||||||||
Income from bank-owned life insurance |
34 | 11 | 10 | 11 | 11 | |||||||||||||||
Other income |
128 | 120 | 110 | 102 | 93 | |||||||||||||||
Total noninterest income |
344 | 338 | 314 | 310 | 304 | |||||||||||||||
Noninterest expense: |
||||||||||||||||||||
Salaries and employee benefits |
1,319 | 1,341 | 1,218 | 1,228 | 1,129 | |||||||||||||||
Occupancy and equipment |
234 | 237 | 226 | 235 | 220 | |||||||||||||||
Professional fees |
107 | 86 | 97 | 84 | 85 | |||||||||||||||
Marketing |
144 | 193 | 133 | 207 | 134 | |||||||||||||||
FDIC/State Assessment |
51 | 38 | 38 | 36 | 35 | |||||||||||||||
Software maintenance, amortization and other |
160 | 167 | 159 | 148 | 141 | |||||||||||||||
Other |
369 | 396 | 370 | 359 | 368 | |||||||||||||||
Total noninterest expense |
2,384 | 2,458 | 2,241 | 2,297 | 2,112 | |||||||||||||||
Earnings before income taxes |
1,579 | 1,355 | 1,330 | 998 | 1,244 | |||||||||||||||
Income taxes |
311 | 337 | 328 | 244 | 550 | |||||||||||||||
Net earnings |
$ | 1,268 | $ | 1,018 | $ | 1,002 | $ | 754 | $ | 694 | ||||||||||
Basic earnings per share |
$ | 0.40 | $ | 0.33 | $ | 0.32 | $ | 0.24 | $ | 0.21 | ||||||||||
Diluted earnings per share |
$ | 0.40 | $ | 0.33 | $ | 0.32 | $ | 0.24 | $ | 0.21 |
Prime Meridian Holding Company and Subsidiary |
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Condensed Consolidated Statements of Earnings |
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(in thousands, except per share amounts) |
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Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||||
unaudited |
unaudited |
audited |
||||||||||||||
2018 |
2017 |
2018 |
2017 |
|||||||||||||
Interest income: |
||||||||||||||||
Loans |
$ | 3,854 | $ | 3,091 | $ | 14,469 | $ | 11,589 | ||||||||
Securities |
280 | 274 | 1,131 | 983 | ||||||||||||
Other |
280 | 108 | 634 | 379 | ||||||||||||
Total interest income |
4,414 | 3,473 | 16,234 | 12,951 | ||||||||||||
Interest expense- |
||||||||||||||||
Deposits |
748 | 352 | 2,307 | 1,181 | ||||||||||||
Total interest expense |
748 | 352 | 2,307 | 1,181 | ||||||||||||
Net interest income |
3,666 | 3,121 | 13,927 | 11,770 | ||||||||||||
Provision for loan losses |
47 | 69 | 591 | 256 | ||||||||||||
Net interest income after provision for loan losses |
3,619 | 3,052 | 13,336 | 11,514 | ||||||||||||
Noninterest income: |
||||||||||||||||
Service charges and fees on deposit accounts |
74 | 81 | 333 | 322 | ||||||||||||
Mortgage banking revenue |
108 | 119 | 447 | 435 | ||||||||||||
Income from bank-owned life insurance |
34 | 11 | 66 | 46 | ||||||||||||
Other income |
128 | 93 | 460 | 350 | ||||||||||||
Total noninterest income |
344 | 304 | 1,306 | 1,153 | ||||||||||||
Noninterest expense: |
||||||||||||||||
Salaries and employee benefits |
1,319 | 1,129 | 5,106 | 4,236 | ||||||||||||
Occupancy and equipment |
234 | 220 | 932 | 947 | ||||||||||||
Professional fees |
107 | 85 | 374 | 320 | ||||||||||||
Marketing |
144 | 134 | 677 | 574 | ||||||||||||
FDIC/State assessment |
51 | 35 | 163 | 158 | ||||||||||||
Software maintenance, amortization and other |
160 | 141 | 634 | 535 | ||||||||||||
Other |
369 | 368 | 1,494 | 1,345 | ||||||||||||
Total noninterest expense |
2,384 | 2,112 | 9,380 | 8,115 | ||||||||||||
Earnings before income taxes |
1,579 | 1,244 | 5,262 | 4,552 | ||||||||||||
Income taxes |
311 | 550 | 1,220 | 1,735 | ||||||||||||
Net earnings |
$ | 1,268 | $ | 694 | $ | 4,042 | $ | 2,817 | ||||||||
Earnings per common share: |
||||||||||||||||
Basic |
$ | 0.40 | $ | 0.21 | $ | 1.29 | $ | 1.04 | ||||||||
Diluted |
$ | 0.40 | $ | 0.21 | $ | 1.29 | $ | 1.04 | ||||||||
Cash dividends per common share(1) |
$ | - | $ | - | $ | 0.10 | $ | 0.07 |
(1) Annual cash dividends were paid during the first quarters of 2018 and 2017
Prime Meridian Holding Company and Subsidiary |
||||||||||||||||||||
Condensed Consolidated Balance Sheets |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
December 31, 2018 |
September 30, 2018 |
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
||||||||||||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
||||||||||||||||
Assets |
||||||||||||||||||||
Cash & cash equivalents |
$ | 48,038 | $ | 56,775 | $ | 32,429 | $ | 22,175 | $ | 32,397 | ||||||||||
Securities available for sale |
45,384 | 44,359 | 46,657 | 48,014 | 49,809 | |||||||||||||||
Loans, held for sale |
4,767 | 6,782 | 7,321 | 6,394 | 5,880 | |||||||||||||||
Loans, net |
290,113 | 289,022 | 285,473 | 272,611 | 250,259 | |||||||||||||||
Federal Home Loan Bank stock |
355 | 355 | 355 | 355 | 316 | |||||||||||||||
Premises & equipment, net |
4,656 | 4,699 | 4,828 | 4,936 | 4,872 | |||||||||||||||
Accrued interest receivable |
1,034 | 1,028 | 1,027 | 985 | 978 | |||||||||||||||
Bank-owned life insurance |
6,323 | 1,789 | 1,778 | 1,768 | 1,757 | |||||||||||||||
Other assets |
1,032 | 1,149 | 1,137 | 1,060 | 912 | |||||||||||||||
Total Assets |
$ | 401,702 | $ | 405,958 | $ | 381,005 | $ | 358,298 | $ | 347,180 | ||||||||||
Liabilities and Stockholders' Equity |
||||||||||||||||||||
Noninterest-bearing demand deposits |
$ | 80,097 | $ | 83,296 | $ | 76,564 | $ | 73,736 | $ | 76,216 | ||||||||||
Savings, NOW and money-market deposits | 227,674 | 230,817 | 220,363 | 212,153 | 200,027 | |||||||||||||||
Time deposits |
41,296 | 41,133 | 34,896 | 23,393 | 22,054 | |||||||||||||||
Total Deposits |
349,067 | 355,246 | 331,823 | 309,282 | 298,297 | |||||||||||||||
Official checks |
837 | 865 | 602 | 1,368 | 1,146 | |||||||||||||||
Other liabilities |
978 | 984 | 644 | 708 | 764 | |||||||||||||||
Total Liabilities |
350,882 | 357,095 | 333,069 | 311,358 | 300,207 | |||||||||||||||
Total Stockholders' Equity |
50,820 | 48,863 | 47,936 | 46,940 | 46,973 | |||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 401,702 | $ | 405,958 | $ | 381,005 | $ | 358,298 | $ | 347,180 |
Prime Meridian Holding Company and Subsidiary |
||||||||||||||||||||
Financial Highlights (Unaudited) |
||||||||||||||||||||
(dollars in thousands, except per share amounts) |
||||||||||||||||||||
Q4'18 |
Q318 |
Q2'18 |
Q1'18 |
Q4'17 |
||||||||||||||||
Per Share Data: |
||||||||||||||||||||
Earnings per share - Basic |
$ | 0.40 | $ | 0.33 | $ | 0.32 | $ | 0.24 | $ | 0.21 | ||||||||||
Earnings per share - Diluted |
$ | 0.40 | $ | 0.33 | $ | 0.32 | $ | 0.24 | $ | 0.21 | ||||||||||
Book value per share |
$ | 16.19 | $ | 15.61 | $ | 15.33 | $ | 15.03 | $ | 15.06 | ||||||||||
Shares outstanding |
3,138,945 | 3,128,671 | 3,125,233 | 3,122,769 | 3,118,977 | |||||||||||||||
Weighted-average basic shares outstanding |
3,125,689 | 3,127,038 | 3,123,594 | 3,120,613 | 3,105,003 | |||||||||||||||
Weighted-average diluted shares outstanding |
3,131,546 | 3,130,171 | 3,126,022 | 3,123,505 | 3,107,301 | |||||||||||||||
Selected Performance Ratios and Other Data: |
||||||||||||||||||||
Return on average assets(1) |
1.07 |
% |
1.03 |
% |
1.10 |
% |
0.86 |
% |
0.80 |
% |
||||||||||
Return on average equity(1) |
8.43 | 8.42 | 8.49 | 6.45 | 5.97 | |||||||||||||||
Average yield on earning assets |
4.52 | 4.47 | 4.46 | 4.30 | 4.12 | |||||||||||||||
Net interest margin |
3.75 | 3.78 | 3.89 | 3.83 | 3.70 | |||||||||||||||
Efficiency ratio(2) |
59.45 | 62.26 | 60.14 | 64.72 | 61.66 | |||||||||||||||
Asset Quality Data: |
||||||||||||||||||||
Nonaccrual loans |
$ | 342,000 | $ | 179,000 | $ | 90,000 | $ | 369,000 | $ | 134,000 | ||||||||||
Total nonperforming assets |
342,000 | 179,000 | 90,000 | 369,000 | 134,000 | |||||||||||||||
Nonpeforming assets/total assets |
0.09 |
% |
0.04 |
% |
0.02 |
% |
0.10 |
% |
0.04 |
% |
||||||||||
Capital Ratios: |
||||||||||||||||||||
Total Tangible Common Equity / Total Assets (Company) |
12.65 |
% |
12.04 |
% |
12.58 |
% |
13.10 |
% |
13.53 |
% |
||||||||||
Tier 1 Leverage Capital Ratio (Bank) |
9.28 | 9.21 | 9.68 | 9.69 | 9.48 | |||||||||||||||
Common Equity Tier I Capital Ratio (Bank) |
12.90 | 12.40 | 12.28 | 12.38 | 12.80 | |||||||||||||||
Tier I Risk Based Capital Ratio (Bank) |
12.90 | 12.40 | 12.28 | 12.38 | 12.80 | |||||||||||||||
Total Capital Ratio (Bank) |
14.15 | 13.65 | 13.51 | 13.61 | 14.01 |
1 ROAA and ROAE are annualized
2 Efficiency Ratio represents noninterest expense divided by the sum of net interest income plus noninterest income.
CONTACT: Randy Guemple, Chief Financial Officer
(850) 907-2301
Prime Meridian Holding Company
Website: www.primemeridianbank.com