0001437749-19-001518.txt : 20190130 0001437749-19-001518.hdr.sgml : 20190130 20190130083026 ACCESSION NUMBER: 0001437749-19-001518 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20190130 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190130 DATE AS OF CHANGE: 20190130 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Prime Meridian Holding Co CENTRAL INDEX KEY: 0001586454 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 272980805 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-191801 FILM NUMBER: 19550436 BUSINESS ADDRESS: STREET 1: 1897 CAPITAL CIRCLE, NE CITY: TALLAHASSEE STATE: FL ZIP: 32308 BUSINESS PHONE: 850-907-2301 MAIL ADDRESS: STREET 1: 1897 CAPITAL CIRCLE, NE CITY: TALLAHASSEE STATE: FL ZIP: 32308 8-K 1 pmhg20190129_8k.htm FORM 8-K pmhg20190129_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) 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
     
 

 

By:

/s/ R. Randy Guemple
   

R. Randy Guemple
   

Chief Financial Officer and

Executive Vice President
     

 

Date: January 30, 2019

 EX-99.1 2 ex_133615.htm EXHIBIT 99.1 ex_133615.htm

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

  

(dollars in thousands except per share amounts)

                
   

Year Ended December 31,

  
   

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

                                                                

(dollars in thousands)

                                                                
                           

Change 4Q18 vs.

                          
   

4Q18

    

3Q18

    

4Q17

    

3Q18

    

4Q17

    

YE18

    

YE17

    

Change YOY

  

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

                                                                

(dollars in thousands)

                          

Change 4Q18 vs.

                          
   

4Q18

    

3Q18

    

4Q17

    

3Q18

    

4Q17

    

YE18

    

YE17

    

Change YOY

  

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:

                                                                

(dollars in thousands)

                          

Change 4Q18 vs.

                          
   

4Q18

    

3Q18

    

4Q17

    

3Q18

    

4Q17

    

YE18

    

YE17

    

Change YOY

  

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

                                                                

(dollars in thousands)

                          

Change 4Q18 vs.

                          
   

4Q18

    

3Q18

    

4Q17

    

3Q18

    

4Q17

    

YE18

    

YE17

    

Change YOY

  

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

                                                                

(dollars in thousands)

                          

Change 4Q18 vs.

                          
   

4Q18

    

3Q18

    

4Q17

    

3Q18

    

4Q17

    

YE18

    

YE17

    

Change YOY

  

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

                                                                

(dollars in thousands)

                          

Change 4Q18 vs.

                          
   

4Q18

    

3Q18

    

4Q17

    

3Q18

    

4Q17

    

YE18

    

YE17

    

Change YOY

  

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

                                

Loans by Class

                               

(dollars in thousands )

                                
   

December 31, 2018

    

December 31, 2017

  
    unaudited     audited  
   

Amount

    

% of Total

    

Amount

    

% of Total

  

Commercial real estate

   $ 82,494       28.1

%

   $ 79,565       31.5

%

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

                                  

Condensed Consolidated Statements of Earnings (Unaudited)

                          

(in thousands except per share amounts)

                                        
                                         
                                         
   

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

                                

Condensed Consolidated Statements of Earnings

                               

(in thousands, except per share amounts)

                                
                                 
   

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

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