Results
Prime Meridian Holding Company
10/25/2024 | Press release | Distributed by Public on 10/25/2024 14:03
Prime Meridian Holding Company Reports THIRD QUARTER 2024 RESULTS Form 8 K
Prime Meridian Holding Company Reports
THIRD QUARTER 2024 RESULTS
TALLAHASSEE, FL - October 25, 2024 (GLOBE NEWSWIRE) - Prime Meridian Holding Company (OTCQX: PMHG), the parent bank holding company for Prime Meridian Bank, today announced unaudited financial results for the three and nine months ended September 30, 2024. The Company reported net earnings of $2,603,000, or $0.79 per basic and $0.78 per diluted share, for the three months ended September 30, 2024, compared to $2,120,000, or $0.66 per basic and diluted share, for the three months ended September 30, 2023. The Company reported net earnings of $6,308,000, or $1.92 per basic and $1.89 per diluted share, for the nine months ended September 30, 2024, compared to $6,878,000, or $2.15 per basic and $2.13 per diluted share, for the nine months ended September 30, 2023.
"Very proud of the Bank's performance this quarter," said Sammie D. Dixon, Jr., Vice Chairman, President, and CEO. "We are running efficiently and are optimizing the performance of our systems as well as our team," he continued.
The Bank upgraded its core operating systems during the third and fourth quarters of 2023. Though the Bank routinely enhances it's systems, it is also realizing the financial benefits from last year's investment, according to Dixon.
"As we look at the numbers, growth is happening in all areas of the Bank and our efficiency ratio is down right where we want it," Dixon said. "Simply put, we are doing more, with less."
"We are looking good as we head to the end of the year and into 2025," he said.
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Third Quarter Highlights - Prime Meridian Holding Company and Subsidiary (Unaudited) |
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(dollars in thousands except per share amounts) |
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3Q'24 |
2Q'24 |
1Q'24 |
4Q'23 |
3Q'23 |
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Net earnings |
$ | 2,603 | $ | 1,774 | $ | 1,931 | $ | 1,830 | $ | 2,120 | ||||||||||
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Book value per share |
$ | 26.87 | $ | 25.35 | $ | 24.71 | $ | 24.53 | $ | 22.91 | ||||||||||
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Earnings per share - Basic |
$ | 0.79 | $ | 0.54 | $ | 0.59 | $ | 0.56 | $ | 0.66 | ||||||||||
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Earnings per share - Diluted |
$ | 0.78 | $ | 0.54 | $ | 0.59 | $ | 0.55 | $ | 0.66 | ||||||||||
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Weighted-average basic shares outstanding |
3,293,993 | 3,295,423 | 3,275,401 | 3,259,247 | 3,214,323 | |||||||||||||||
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Weighted-average diluted shares outstanding |
3,322,536 | 3,310,628 | 3,298,555 | 3,299,212 | 3,235,920 | |||||||||||||||
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Return on average assets(1) |
1.14 | % | 0.81 | % | 0.91 | % | 0.87 | % | 1.03 | % | ||||||||||
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Return on average equity(1) |
12.20 | % | 8.70 | % | 9.61 | % | 9.85 | % | 11.31 | % | ||||||||||
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Average yield on earning assets(1) |
5.81 | % | 5.63 | % | 5.44 | % | 5.40 | % | 5.21 | % | ||||||||||
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Net interest margin(1) |
3.63 | % | 3.55 | % | 3.51 | % | 3.61 | % | 3.68 | % | ||||||||||
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Efficiency ratio(2) |
58.24 | % | 65.02 | % | 63.81 | % | 59.99 | % | 61.45 | % | ||||||||||
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Nonperforming assets/total assets(3) |
0.26 | % | 0.34 | % | 0.40 | % | 0.40 | % | 0.19 | % |
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(1) Quarterly ratios have been annualized on a 30/360 basis. |
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(2) Efficiency Ratio represents noninterest expense divided by the sum of net interest income plus noninterest income. (3) Nonperforming assets include loans greater than 90 days past due and nonaccrual loans. |
| • | Net earnings of $2.6 million for 3Q'24 were up $829,000 (46.7%) from 2Q'24 and $483,000 (22.8%) from 3Q'23. |
| • | Book value per share has increased steadily over the past year and is up $3.96, or 17.3% since 3Q'23. |
| • | For 3Q'24, the return on average assets was 1.14% compared to 0.81% (2Q'24) and 1.03% (3Q'23). For 3Q'24, the return on average equity was 12.20% compared to 8.70% (2Q'24) and 11.31% (3Q'23). |
| • | Pre-tax pre-provision ("PTPP") return on assets was 1.55% and PTPP return on equity was 16.58% for 3Q'24, compared to 1.27% and 13.59% in 2Q'24 and 1.44% and 15.81% in 3Q'23. This is considered a non-GAAP financial measure and additional information, including a reconciliation, can be found on page 10. |
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• |
Gross loan balances increased $40.7 million, or 6.2% since December 31, 2023 with most growth occurring in residential and home equity real estate loans. |
| • | Since December 31, 2023, total deposits increased $75.3 million, or 10.1%, to $824.0 million. Growth occurred in all categories with the majority of growth occurring in time deposits and savings, NOW and money market accounts. During the third quarter, the Company averaged net new non-maturity deposit volume of $18.8 million and 183 net new accounts. |
| • | At September 30, 2024, available secured and unsecured borrowing capacity was $197.7 million through various sources including the Federal Home Loan Bank of Atlanta (FHLB) and lines of credit with several banks. When combined with maximum available brokered and wholesale funding capacity of $232.9 million, off-balance sheet funding sources total $430.6 million. |
| • | At September 30, 2024, on-balance sheet liquidity was $181.6 million, consisting of cash and cash equivalents and unpledged debt securities at fair value. Total on-balance sheet and off-balance sheet liquidity sources total $612.2 million, representing 74.3% of total deposits. |
| • | The Bank remains well capitalized with a Tier 1 Leverage ratio of 10.21% and a Total Risk Based Capital Ratio of 13.53% at September 30, 2024. |
1
Earnings Summary (Unaudited)
(dollars in thousands)
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Change 3Q'24 vs. |
Nine Months Ended September 30, |
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3Q'24 |
2Q'24 |
3Q'23 |
2Q'24 |
3Q'23 |
2024 |
2023 |
% Change |
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Net interest income |
$ | 7,941 | $ | 7,394 | $ | 7,187 | 7.4 | % | 10.5 | % | $ | 22,468 | $ | 22,095 | 1.7 | % | ||||||||||||||||
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Credit loss expense |
100 | 444 | 175 | (77.5 | ) | (42.9 | ) | 755 | 743 | 1.6 | ||||||||||||||||||||||
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Noninterest income |
531 | 527 | 499 | 0.8 | 6.4 | 1,511 | 1,403 | 7.7 | ||||||||||||||||||||||||
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Noninterest expense |
4,934 | 5,150 | 4,723 | (4.2 | ) | 4.5 | 14,925 | 13,699 | 8.9 | |||||||||||||||||||||||
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Income taxes |
835 | 553 | 668 | 51.0 | 25.0 | 1,991 | 2,178 | (8.6 | ) | |||||||||||||||||||||||
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Net earnings |
$ | 2,603 | $ | 1,774 | $ | 2,120 | 46.7 | % | 22.8 | % | $ | 6,308 | $ | 6,878 | (8.3 | )% |
Net earnings for 3Q'24 primarily benefitted from higher net interest income, improved operating efficiency and a lower provision for credit loss expense. Comparing the nine-month periods, higher revenue from interest and noninterest income was offset by higher noninterest expense as the impact of operational efficiencies started to materialize in the third quarter of this year.
Net Interest Income (Unaudited)
(dollars in thousands)
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Change 3Q'24 vs. |
Nine Months Ended September 30, |
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3Q'24 |
2Q'24 |
3Q'23 |
2Q'24 |
3Q'23 |
2024 |
2023 |
% Change |
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Interest income: |
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Loans |
$ | 10,995 | $ | 10,627 | $ | 9,019 | 3.5 | % | 21.9 | % | $ | 31,584 | $ | 25,633 | 23.2 | % | ||||||||||||||||
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Debt securities |
757 | 852 | 919 | (11.2 | ) | (17.6 | ) | 2,505 | 2,777 | (9.8 | ) | |||||||||||||||||||||
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Other |
942 | 259 | 244 | 263.7 | 286.1 | 1,408 | 650 | 116.6 | ||||||||||||||||||||||||
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Total interest income |
12,694 | 11,738 | 10,182 | 8.1 | % | 24.7 | % | 35,497 | 29,060 | 22.2 | % | |||||||||||||||||||||
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Interest expense: |
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Deposits |
4,643 | 4,090 | 2,691 | 13.5 | % | 72.5 | % | 12,410 | 6,141 | 102.1 | % | |||||||||||||||||||||
|
FHLB advances and other borrowings |
110 | 254 | 304 | (56.7 | ) | (63.8 | ) | 619 | 824 | (24.9 | ) | |||||||||||||||||||||
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Total interest expense |
4,753 | 4,344 | 2,995 | 9.4 | 58.7 | 13,029 | 6,965 | 87.1 | ||||||||||||||||||||||||
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Net interest income |
$ | 7,941 | $ | 7,394 | $ | 7,187 | 7.4 | % | 10.5 | % | $ | 22,468 | $ | 22,095 | 1.7 | % |
The Company reported net interest income of $7.9 million for 3Q'24, an increase of $547,000, or 7.4%, from the linked quarter and an increase of $754,000, or 10.5% from 3Q'23. Compared to the linked quarter, an acceleration of bond maturities resulted in an earning asset mix shift to higher-yielding cash accounts. This coupled with a reduction in FHLB borrowings yielded higher net interest income. Compared to 3Q'23, loan growth and higher loan yields were the most significant contributing factors to higher net interest income. Average earning assets were up $40.7 million, or 4.9%, over the linked quarter and $92.8 million, or 11.9%, over 3Q'23 while the yield on average earning assets increased to 5.81% (3Q'24), compared to 5.63% (2Q'24) and 5.21% (3Q'23). The average cost of interest-bearing liabilities increased from 2.19% in 3Q'23 to 2.96% in 2Q'24 and 3.09% in 3Q'24, reflecting the rising rate environment and a change in funding mix. The Company's net interest margin ("NIM") for 3Q'24 was 3.63%, compared to 3.55% (2Q'24) and 3.68% (3Q'23).
For the nine months ended September 30, 2024, funding costs outpaced the increase in earning asset yields. Net interest income increased $373,000, or 1.7% compared to the same period a year ago. Average earning assets increased $59.9 million, or 7.7%, while the Company's average interest-bearing liabilities increased $52.5 million, or 9.7%. Rates on interest-bearing liabilities increased at a faster pace (up 122 basis points) than yields on interest-earning assets (up 66 basis points). NIM was 3.57% for the nine months ended September 30, 2024 compared to 3.78% for the nine months ended September 30, 2023.
Credit Loss Expense
Credit loss expense for 3Q'24 of $100,000 included $118,000 in expense for loans and $18,000 in release for unfunded commitments. Net charge-offs totaled $11,000 in 3Q'24, compared to $800,000 last quarter (primarily related to two impaired commercial relationships that had been mostly reserved for in prior quarters) and $49,000 in 3Q'23. At September 30, 2024, the allowance for credit losses for loans was $5.4 million, representing 0.78% to total loans (this excludes the allowance for credit losses for unfunded commitments of $140,000). The following table presents detailed information related to credit loss expense related to loans for the periods indicated.
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Three Months Ended |
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September 30, 2024 |
June 30, 2024 |
Change |
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Beginning balance |
$ | 5,282 | $ | 5,796 | $ | (514 | ) | |||||
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Charge-offs |
(13 | ) | (803 | ) | 790 | |||||||
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Recoveries |
2 | 3 | (1 | ) | ||||||||
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Net (charge-offs) recoveries |
(11 | ) | (800 | ) | 789 | |||||||
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Credit loss expense (funded portion) |
118 | 286 | (168 | ) | ||||||||
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Ending balance |
$ | 5,389 | $ | 5,282 | $ | 107 | ||||||
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Allowance for credit losses to total loans, gross |
0.78 | % | 0.77 | % |
2
Noninterest income (Unaudited)
(dollars in thousands)
|
Change 3Q'24 vs. |
Nine Months Ended September 30, |
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3Q'24 |
2Q'24 |
3Q'23 |
2Q'24 |
3Q'23 |
2024 |
2023 |
% Change |
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Service charges and fees on deposit accounts |
$ | 81 | $ | 78 | $ | 92 | 3.8 | % | (12.0 | )% | $ | 228 | $ | 261 | (12.6 | )% | ||||||||||||||||
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Debit card/ATM revenue, net |
159 | 164 | 137 | (3.0 | ) | 16.1 | 481 | 437 | 10.1 | |||||||||||||||||||||||
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Mortgage banking revenue, net |
133 | 125 | 121 | 6.4 | 9.9 | 329 | 250 | 31.6 | ||||||||||||||||||||||||
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Income from bank-owned life insurance |
105 | 102 | 100 | 2.9 | 5.0 | 307 | 290 | 5.9 | ||||||||||||||||||||||||
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Other income |
53 | 58 | 49 | (8.6 | ) | 8.2 | 166 | 165 | 0.6 | |||||||||||||||||||||||
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Total noninterest income |
$ | 531 | $ | 527 | $ | 499 | 0.8 | % | 6.4 | % | $ | 1,511 | $ | 1,403 | 7.7 | % |
Noninterest income during 3Q'24 stayed relatively flat compared to the linked quarter. The 6.4% and 7.7% increases from the three and nine-month periods in 2023, respectively, mostly reflect increased revenue from debit card/ATM and mortgage banking. These gains were partially offset by declines in service charges and fees on deposit accounts, primarily nonsufficient funds ("NSF") fees. Noninterest income as a percentage of average assets, annualized, was 0.23% for both nine-month periods.
Noninterest expense (Unaudited)
(dollars in thousands)
|
Change 3Q'24 vs. |
Nine Months Ended September 30, |
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3Q'24 |
2Q'24 |
3Q'23 |
2Q'24 |
3Q'23 |
2024 |
2023 |
% Change |
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Salaries and employee benefits |
$ | 3,011 | $ | 3,024 | $ | 2,864 | (0.4 | )% | 5.1 | % | $ | 8,900 | $ | 8,359 | 6.5 | % | ||||||||||||||||
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Occupancy and equipment |
408 | 425 | 427 | (4.0 | ) | (4.4 | ) | 1,238 | 1,235 | 0.2 | ||||||||||||||||||||||
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Professional fees |
151 | 142 | 149 | 6.3 | 1.3 | 447 | 416 | 7.5 | ||||||||||||||||||||||||
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Marketing |
243 | 299 | 215 | (18.7 | ) | 13.0 | 816 | 688 | 18.6 | |||||||||||||||||||||||
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FDIC assessment |
111 | 106 | 104 | 4.7 | 6.7 | 325 | 275 | 18.2 | ||||||||||||||||||||||||
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Software maintenance, amortization and other |
433 | 541 | 341 | (20.0 | ) | 27.0 | 1,378 | 912 | 51.1 | |||||||||||||||||||||||
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Other |
577 | 613 | 623 | (5.9 | ) | (7.4 | ) | 1,821 | 1,814 | 0.4 | ||||||||||||||||||||||
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Total noninterest expense |
$ | 4,934 | $ | 5,150 | $ | 4,723 | (4.2 | )% | 4.5 | % | $ | 14,925 | $ | 13,699 | 8.9 | % |
Noninterest expense was down $216,000, or 4.2%, from the linked quarter due primarily to a $108,000, or 20.0%, decrease in software maintenance, amortization, and other expense as there were some one-time expenses related to the Company's core conversion in the 4Q'23 that were paid during 2Q'24. Marketing expense decreased $56,000, or 18.7%, often fluctuating from quarter to quarter due to the timing of certain commitments. Noninterest expense was up 4.5% over 3Q'23 due primarily to increased expense for salaries and employee benefits and software maintenance, amortization and other, the latter being due to the Company's core conversion completed in the 4Q'23. The Company's efficiency ratio improved to 58.24% in 3Q'24, compared to 65.02% in 2Q'24 and 61.45% in 3Q'23. Noninterest expense as a percentage of average assets reached its lowest level in two years at 2.16% annualized for 3Q'24.
Noninterest expense was up 8.9%, or $1.2 million, over the nine-month period due mostly to higher compensation expense and higher expense related to the core conversion, followed by higher marketing expense.
Financial Condition
At September 30, 2024, the Company reported $931.6 million in total assets, $824.0 million in deposits, and $687.1 million in net portfolio loans. This compares to $854.5 million in total assets, $748.7 million in deposits, and $646.1 million in net portfolio loans at December 31, 2023. Gross loans increased $40.7 million, or 6.2%, since December 31, 2023 with residential and home equity loans reporting the largest dollar volume increase.
Prime Meridian Holding Company and Subsidiary
Loans by Class
(dollars in thousands)
|
September 30, 2024 |
December 31, 2023 |
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Unaudited |
Audited |
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Amount |
% of Total |
Amount |
% of Total |
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Commercial real estate(1) |
$ | 216,379 | 31.2 | % | $ | 208,429 | 32.0 | % | ||||||||
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Residential real estate and home equity(1) |
297,887 | 43.0 | 273,383 | 41.9 | ||||||||||||
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Construction(1) |
82,639 | 11.9 | 78,197 | 12.0 | ||||||||||||
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Commercial |
89,788 | 13.0 | 85,983 | 13.2 | ||||||||||||
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Consumer |
5,971 | 0.9 | 5,936 | 0.9 | ||||||||||||
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Total loans |
692,664 | 100.0 | % | 651,928 | 100.0 | % | ||||||||||
|
Net deferred loan fees |
(218 | ) | (192 | ) | ||||||||||||
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Allowance for credit losses |
(5,389 | ) | (5,609 | ) | ||||||||||||
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Loans, net |
$ | 687,057 | $ | 646,127 |
(1) Certain loans as of December 31, 2023 were reclassed to conform with the current loan class presentation.
3
Deposit balances increased $75.3 million, or 10.1%, since December 31, 2023. Savings, NOW and money-market deposits and time deposits increased $26.9 million and $35.1 million, respectively, since December 31, 2023, while noninterest bearing demand accounts increased $13.2 million. The Company's loan to deposit ratio was 84.1% at September 30, 2024 compared to 87.1% at December 31, 2023.
The Company maintains a $15 million, 5-year revolving Line of Credit, enhancing its liquidity sources to support the ongoing capital needs of the Bank. The Line of Credit matures in August 2025 and had a zero outstanding balance at September 30, 2024. As of September 30, 2024, the Company reported $10 million in FHLB advances with a weighted average interest rate of 4.33%. Borrowed funds represented 1.2% of total liabilities at September 30, 2024.
Total stockholders' equity was $88.5 million, or 9.50% of total assets, at September 30, 2024, compared to $80.0 million at December 31, 2023 or 9.36% of total assets. Retained earnings and a favorable change in accumulated other comprehensive loss drove the increase in equity and offset common stock dividends of $818,000 ($0.25 per common share) paid during 1Q'24. At September 30, 2024, book value per share was $26.87 with 3,293,755 common shares outstanding.
As of September 30, 2024, the Bank was considered to be "well capitalized" with a Tier 1 Leverage Capital Ratio of 10.21%, a 13.53% Common Equity Tier 1 Capital Ratio, a 13.53% Tier 1 Risk-Based Capital Ratio, and a 14.33% Total Risk-Based Capital Ratio.
Asset Quality
There were eleven (11) nonperforming loans totaling $2.5 million at September 30, 2024 compared to nine (9) nonperforming loans totaling $3.0 million at June 30, 2024. Net charge-offs during the nine months ended September 30, 2024 totaled $835,000 and were mostly related to two impaired commercial loans, compared to net charge-offs of $379,000 for the nine months ended September 30, 2023. As of September 30, 2024, there were no loans that were 90 days and still accruing and no Other Real Estate Owned ("OREO") on the balance sheet. Management believes that the allowance for credit losses for loans of $5.4 million (which excludes $140,000 for general unfunded commitments) at September 30, 2024 is adequate.
About Prime Meridian Holding Company
Headquartered in Tallahassee, Florida, Prime Meridian Holding Company (OTCQX: PMHG) offers a broad range of banking services through its wholly owned subsidiary, Prime Meridian Bank, a Florida state-chartered non-member bank. Founded in 2008, the Bank now serves the Tallahassee and Lakeland/Winter Haven Metropolitan Statistical Areas (MSA), including clients in North and Central Florida as well as South Georgia and South Alabama. The Bank currently has four Florida locations: two in Tallahassee, Florida, one in Crawfordville, Florida, and one in Lakeland, Florida. As of September 30, 2024, the Bank had 111 full-time equivalent employees. For more information about Prime Meridian Holding Company, please visit www.primemeridianbank.com.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "is confident that" and similar expressions are intended to identify these forward-looking statements. These forward-looking statements involve risk and uncertainty and a variety of factors could cause our actual results and experience to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. We do not have a policy of updating or revising forward-looking statements except as otherwise required by law, and silence by management over time should not be construed to mean that actual events are occurring as estimated in such forward-looking statements.
About Non-GAAP Financial Measures
Certain financial measures and ratios we present including "pre-tax, pre-provision ("PTPP") net earnings," "PTPP return on average common equity," "PTPP return on average assets," and "adjusted average loan yield" are supplemental measures that are not required by, or are not presented in accordance with, accounting principles generally accepted in the United States of America ("GAAP"). We refer to those financial measures and ratios as "non-GAAP financial measures." We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results.
We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present, and future periods.
These non-GAAP measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures is included at the end of the financial statement tables.
Tables Follow
4
Prime Meridian Holding Company and Subsidiary
Condensed Consolidated Statements of Earnings (Unaudited)
(in thousands except per share amounts)
|
3Q'24 |
2Q'24 |
1Q'24 |
4Q'23 |
3Q'23 |
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|
Interest income: |
||||||||||||||||||||
|
Loans |
$ | 10,995 | $ | 10,627 | $ | 9,962 | $ | 9,658 | $ | 9,019 | ||||||||||
|
Debt securities |
757 | 852 | 896 | 921 | 919 | |||||||||||||||
|
Other |
942 | 259 | 207 | 287 | 244 | |||||||||||||||
|
Total interest income |
12,694 | 11,738 | 11,065 | 10,866 | 10,182 | |||||||||||||||
|
Interest expense: |
||||||||||||||||||||
|
Deposits |
4,643 | 4,090 | 3,677 | 3,351 | 2,691 | |||||||||||||||
|
FHLB advances and other borrowings |
110 | 254 | 255 | 262 | 304 | |||||||||||||||
|
Total interest expense |
4,753 | 4,344 | 3,932 | 3,613 | 2,995 | |||||||||||||||
|
Net interest income |
7,941 | 7,394 | 7,133 | 7,253 | 7,187 | |||||||||||||||
|
Credit loss expense |
100 | 444 | 211 | 707 | 175 | |||||||||||||||
|
Net interest income after credit loss expense |
7,841 | 6,950 | 6,922 | 6,546 | 7,012 | |||||||||||||||
|
Noninterest income: |
||||||||||||||||||||
|
Service charges and fees on deposit accounts |
81 | 78 | 69 | 96 | 92 | |||||||||||||||
|
Debit card/ATM revenue, net |
159 | 164 | 158 | 136 | 137 | |||||||||||||||
|
Mortgage banking revenue, net |
133 | 125 | 71 | 102 | 121 | |||||||||||||||
|
Income from bank-owned life insurance |
105 | 102 | 100 | 99 | 100 | |||||||||||||||
|
Other income |
53 | 58 | 55 | 59 | 49 | |||||||||||||||
|
Total noninterest income |
531 | 527 | 453 | 492 | 499 | |||||||||||||||
|
Noninterest expense: |
||||||||||||||||||||
|
Salaries and employee benefits |
3,011 | 3,024 | 2,865 | 2,813 | 2,864 | |||||||||||||||
|
Occupancy and equipment |
408 | 425 | 405 | 412 | 427 | |||||||||||||||
|
Professional fees |
151 | 142 | 154 | 143 | 149 | |||||||||||||||
|
Marketing |
243 | 299 | 274 | 215 | 215 | |||||||||||||||
|
FDIC assessment |
111 | 106 | 108 | 85 | 104 | |||||||||||||||
|
Software maintenance, amortization and other |
433 | 541 | 404 | 302 | 341 | |||||||||||||||
|
Other |
577 | 613 | 631 | 676 | 623 | |||||||||||||||
|
Total noninterest expense |
4,934 | 5,150 | 4,841 | 4,646 | 4,723 | |||||||||||||||
|
Earnings before income taxes |
3,438 | 2,327 | 2,534 | 2,392 | 2,788 | |||||||||||||||
|
Income taxes |
835 | 553 | 603 | 562 | 668 | |||||||||||||||
|
Net earnings |
$ | 2,603 | $ | 1,774 | $ | 1,931 | $ | 1,830 | $ | 2,120 | ||||||||||
|
Basic earnings per common share |
$ | 0.79 | $ | 0.54 | $ | 0.59 | $ | 0.56 | $ | 0.66 | ||||||||||
|
Diluted earnings per common share |
$ | 0.78 | $ | 0.54 | $ | 0.59 | $ | 0.55 | $ | 0.66 |
5
|
Prime Meridian Holding Company and Subsidiary |
|
Condensed Consolidated Statements of Earnings |
|
(in thousands, except per share amounts) |
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
|||||||||||||
|
Unaudited |
Unaudited |
|||||||||||||||
|
Interest income: |
||||||||||||||||
|
Loans |
$ | 10,995 | $ | 9,019 | $ | 31,584 | $ | 25,633 | ||||||||
|
Debt securities |
757 | 919 | 2,505 | 2,777 | ||||||||||||
|
Other |
942 | 244 | 1,408 | 650 | ||||||||||||
|
Total interest income |
12,694 | 10,182 | 35,497 | 29,060 | ||||||||||||
|
Interest expense: |
||||||||||||||||
|
Deposits |
4,643 | 2,691 | 12,410 | 6,141 | ||||||||||||
|
FHLB advances and other borrowings |
110 | 304 | 619 | 824 | ||||||||||||
|
Total interest expense |
4,753 | 2,995 | 13,029 | 6,965 | ||||||||||||
|
Net interest income |
7,941 | 7,187 | 22,468 | 22,095 | ||||||||||||
|
Credit loss expense |
100 | 175 | 755 | 743 | ||||||||||||
|
Net interest income after credit loss expense |
7,841 | 7,012 | 21,713 | 21,352 | ||||||||||||
|
Noninterest income: |
||||||||||||||||
|
Service charges and fees on deposit accounts |
81 | 92 | 228 | 261 | ||||||||||||
|
Debit card/ATM revenue, net |
159 | 137 | 481 | 437 | ||||||||||||
|
Mortgage banking revenue, net |
133 | 121 | 329 | 250 | ||||||||||||
|
Income from bank-owned life insurance |
105 | 100 | 307 | 290 | ||||||||||||
|
Other income |
53 | 49 | 166 | 165 | ||||||||||||
|
Total noninterest income |
531 | 499 | 1,511 | 1,403 | ||||||||||||
|
Noninterest expense: |
||||||||||||||||
|
Salaries and employee benefits |
3,011 | 2,864 | 8,900 | 8,359 | ||||||||||||
|
Occupancy and equipment |
408 | 427 | 1,238 | 1,235 | ||||||||||||
|
Professional fees |
151 | 149 | 447 | 416 | ||||||||||||
|
Marketing |
243 | 215 | 816 | 688 | ||||||||||||
|
FDIC assessment |
111 | 104 | 325 | 275 | ||||||||||||
|
Software maintenance, amortization and other |
433 | 341 | 1,378 | 912 | ||||||||||||
|
Other |
577 | 623 | 1,821 | 1,814 | ||||||||||||
|
Total noninterest expense |
4,934 | 4,723 | 14,925 | 13,699 | ||||||||||||
|
Earnings before income taxes |
3,438 | 2,788 | 8,299 | 9,056 | ||||||||||||
|
Income taxes |
835 | 668 | 1,991 | 2,178 | ||||||||||||
|
Net earnings |
$ | 2,603 | $ | 2,120 | $ | 6,308 | $ | 6,878 | ||||||||
|
Earnings per common share: |
||||||||||||||||
|
Basic |
$ | 0.79 | $ | 0.66 | $ | 1.92 | $ | 2.15 | ||||||||
|
Diluted |
$ | 0.78 | $ | 0.66 | $ | 1.89 | $ | 2.13 | ||||||||
|
Cash dividends per common share(1) |
$ | - | $ | - | $ | 0.25 | $ | 0.22 |
(1) Annual cash dividends were paid during the first quarters of 2024 and 2023.
6
|
Prime Meridian Holding Company and Subsidiary |
|
Condensed Consolidated Balance Sheets |
|
(in thousands) |
|
3Q'24 |
2Q'24 |
1Q'24 |
4Q'23 |
3Q'23 |
||||||||||||||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||||||||||
|
Assets |
||||||||||||||||||||
|
Cash & cash equivalents |
$ | 96,524 | $ | 50,875 | $ | 23,474 | $ | 28,416 | $ | 22,404 | ||||||||||
|
Debt securities available for sale |
90,935 | 99,798 | 117,413 | 124,475 | 123,838 | |||||||||||||||
|
Debt securities held to maturity |
13,276 | 13,267 | 11,861 | 11,850 | 11,838 | |||||||||||||||
|
Loans, held for sale |
7,457 | 5,505 | 3,583 | 5,288 | 5,182 | |||||||||||||||
|
Loans, net |
687,057 | 684,762 | 666,826 | 646,127 | 628,974 | |||||||||||||||
|
Federal Home Loan Bank stock |
1,073 | 1,073 | 1,548 | 1,283 | 1,758 | |||||||||||||||
|
Premises & equipment, net |
7,112 | 7,266 | 7,406 | 7,476 | 7,613 | |||||||||||||||
|
Right of use lease asset |
2,654 | 2,711 | 2,767 | 2,823 | 2,879 | |||||||||||||||
|
Accrued interest receivable |
3,213 | 3,579 | 3,465 | 3,114 | 2,671 | |||||||||||||||
|
Bank-owned life insurance |
17,228 | 17,123 | 17,021 | 16,921 | 16,822 | |||||||||||||||
|
Other real estate owned |
- | - | - | - | 117 | |||||||||||||||
|
Other assets |
5,093 | 7,422 | 7,296 | 6,755 | 7,889 | |||||||||||||||
|
Total Assets |
$ | 931,622 | $ | 893,381 | $ | 862,660 | $ | 854,528 | $ | 831,985 | ||||||||||
|
Liabilities and Stockholders' Equity |
||||||||||||||||||||
|
Liabilities: |
||||||||||||||||||||
|
Noninterest-bearing demand deposits |
$ | 202,659 | $ | 206,158 | $ | 201,083 | $ | 189,426 | $ | 193,439 | ||||||||||
|
Savings, NOW and money-market deposits |
503,768 | 479,162 | 462,601 | 476,826 | 451,492 | |||||||||||||||
|
Time deposits |
117,559 | 105,050 | 88,029 | 82,436 | 77,876 | |||||||||||||||
|
Total Deposits |
823,986 | 790,370 | 751,713 | 748,688 | 722,807 | |||||||||||||||
|
Other borrowings |
- | - | - | - | - | |||||||||||||||
|
FHLB Advances |
10,000 | 10,000 | 20,000 | 15,000 | 25,000 | |||||||||||||||
|
Official checks |
1,338 | 939 | 831 | 2,377 | 717 | |||||||||||||||
|
Operating lease liability |
2,857 | 2,913 | 2,963 | 3,013 | 3,062 | |||||||||||||||
|
Other liabilities |
4,943 | 5,648 | 5,714 | 5,474 | 5,612 | |||||||||||||||
|
Total Liabilities |
843,124 | 809,870 | 781,221 | 774,552 | 757,198 | |||||||||||||||
|
Total Stockholders' Equity |
88,498 | 83,511 | 81,439 | 79,976 | 74,787 | |||||||||||||||
|
Total Liabilities and Stockholders' Equity |
$ | 931,622 | $ | 893,381 | $ | 862,660 | $ | 854,528 | $ | 831,985 |
7
|
Prime Meridian Holding Company and Subsidiary |
|
Condensed Consolidated Average Balance Sheets (Unaudited) |
|
(in thousands) |
|
3Q'24 |
2Q'24 |
3Q'23 |
|||||||||||||||||||||||||||||||||
|
Interest |
Interest |
Interest |
|||||||||||||||||||||||||||||||||
|
Average |
and |
Yield/ |
Average |
and |
Yield/ |
Average |
and |
Yield/ |
|||||||||||||||||||||||||||
|
Balance |
Dividends |
Rate(5) |
Balance |
Dividends |
Rate(5) |
Balance |
Dividends |
Rate(5) |
|||||||||||||||||||||||||||
|
Interest-earning assets: |
|||||||||||||||||||||||||||||||||||
|
Loans(1) |
$ | 694,083 | $ | 10,893 | 6.28 | % | $ | 685,946 | $ | 10,536 | 6.14 | % | $ | 620,297 | $ | 8,939 | 5.76 | % | |||||||||||||||||
|
Loans held for sale |
6,371 | 102 | 6.40 | 5,670 | 91 | 6.42 | 5,850 | 80 | 5.47 | ||||||||||||||||||||||||||
|
Debt securities |
105,999 | 757 | 2.86 | 122,472 | 852 | 2.78 | 137,731 | 919 | 2.67 | ||||||||||||||||||||||||||
|
Other(2) |
67,629 | 942 | 5.57 | 19,318 | 259 | 5.36 | 17,398 | 244 | 5.61 | ||||||||||||||||||||||||||
|
Total interest-earning assets |
874,082 | $ | 12,694 | 5.81 | % | 833,406 | $ | 11,738 | 5.63 | % | 781,276 | $ | 10,182 | 5.21 | % | ||||||||||||||||||||
|
Noninterest-earning assets |
38,751 | 40,418 | 42,065 | ||||||||||||||||||||||||||||||||
|
Total assets |
$ | 912,833 | $ | 873,824 | $ | 823,341 | |||||||||||||||||||||||||||||
|
Interest-bearing liabilities: |
|||||||||||||||||||||||||||||||||||
|
Savings, NOW and money-market deposits |
$ | 492,632 | $ | 3,374 | 2.74 | % | $ | 467,312 | $ | 3,031 | 2.59 | % | $ | 449,396 | $ | 2,089 | 1.86 | % | |||||||||||||||||
|
Time deposits |
111,851 | 1,269 | 4.54 | 99,583 | 1,059 | 4.25 | 73,071 | 602 | 3.30 | ||||||||||||||||||||||||||
|
Total interest-bearing deposits |
604,483 | 4,643 | 3.07 | 566,895 | 4,090 | 2.89 | 522,467 | 2,691 | 2.06 | ||||||||||||||||||||||||||
|
FHLB advances and other borrowings |
10,000 | 110 | 4.40 | 20,608 | 254 | 4.93 | 24,582 | 304 | 4.95 | ||||||||||||||||||||||||||
|
Total interest-bearing liabilities |
614,483 | $ | 4,753 | 3.09 | % | 587,503 | $ | 4,344 | 2.96 | % | 547,049 | $ | 2,995 | 2.19 | % | ||||||||||||||||||||
|
Noninterest-bearing deposits |
203,659 | 194,955 | 192,686 | ||||||||||||||||||||||||||||||||
|
Noninterest-bearing liabilities |
9,317 | 9,780 | 8,644 | ||||||||||||||||||||||||||||||||
|
Stockholders' equity |
85,374 | 81,586 | 74,962 | ||||||||||||||||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ | 912,833 | $ | 873,824 | $ | 823,341 | |||||||||||||||||||||||||||||
|
Net earning assets |
$ | 259,599 | $ | 245,903 | $ | 234,227 | |||||||||||||||||||||||||||||
|
Net interest income |
$ | 7,941 | $ | 7,394 | $ | 7,187 | |||||||||||||||||||||||||||||
|
Interest rate spread(3) |
2.72 | % | 2.67 | % | 3.02 | % | |||||||||||||||||||||||||||||
|
Net interest margin(4) |
3.63 | % | 3.55 | % | 3.68 | % |
|
For the Nine Months Ended September 30, |
||||||||||||||||||||||||
|
2024 |
2023 |
|||||||||||||||||||||||
|
Interest |
Interest |
|||||||||||||||||||||||
|
Average |
and |
Yield/ |
Average |
and |
Yield/ |
|||||||||||||||||||
|
(dollars in thousands) |
Balance |
Dividends |
Rate(5) |
Balance |
Dividends |
Rate(5) |
||||||||||||||||||
|
Interest-earning assets: |
||||||||||||||||||||||||
|
Loans(1) |
$ | 679,999 | $ | 31,320 | 6.14 | % | $ | 611,946 | $ | 25,361 | 5.53 | % | ||||||||||||
|
Loans held for sale |
5,642 | 264 | 6.24 | 7,215 | 272 | 5.03 | ||||||||||||||||||
|
Debt securities |
120,633 | 2,505 | 2.77 | 139,886 | 2,777 | 2.65 | ||||||||||||||||||
|
Other(2) |
33,952 | 1,408 | 5.53 | 21,271 | 650 | 4.07 | ||||||||||||||||||
|
Total interest-earning assets |
840,226 | $ | 35,497 | 5.63 | % | 780,318 | $ | 29,060 | 4.97 | % | ||||||||||||||
|
Noninterest-earning assets |
39,600 | 36,898 | ||||||||||||||||||||||
|
Total assets |
$ | 879,826 | $ | 817,216 | ||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||
|
Savings, NOW and money-market deposits |
$ | 475,043 | $ | 9,234 | 2.59 | % | $ | 461,649 | $ | 5,061 | 1.46 | % | ||||||||||||
|
Time deposits |
98,803 | 3,176 | 4.29 | 56,901 | 1,080 | 2.53 | ||||||||||||||||||
|
Total interest-bearing deposits |
573,846 | 12,410 | 2.88 | 518,550 | 6,141 | 1.58 | ||||||||||||||||||
|
FHLB advances and other borrowings |
17,220 | 619 | 4.79 | 20,034 | 824 | 5.48 | ||||||||||||||||||
|
Total interest-bearing liabilities |
591,066 | $ | 13,029 | 2.94 | % | 538,584 | $ | 6,965 | 1.72 | % | ||||||||||||||
|
Noninterest-bearing deposits |
196,703 | 195,689 | ||||||||||||||||||||||
|
Noninterest-bearing liabilities |
9,607 | 10,005 | ||||||||||||||||||||||
|
Stockholders' equity |
82,450 | 72,938 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ | 879,826 | $ | 817,216 | ||||||||||||||||||||
|
Net earning assets |
$ | 249,160 | $ | 241,734 | ||||||||||||||||||||
|
Net interest income |
$ | 22,468 | $ | 22,095 | ||||||||||||||||||||
|
Interest rate spread (3) |
2.69 | % | 3.25 | % | ||||||||||||||||||||
|
Net interest margin(4) |
3.57 | % | 3.78 | % | ||||||||||||||||||||
(1) Includes nonaccrual loans
(2) Other interest-earning assets include federal funds sold, interest-bearing deposits and Federal Home Loan Bank stock.
(3) Interest rate spread is the difference between total interest-earning asset yield and the rate paid on total interest-bearing liabilities.
(4) Net interest margin is net interest income divided by total average interest-earning assets, annualized on a 30/360 basis.
(5) Annualized on a 30/360 basis
8
|
Prime Meridian Holding Company and Subsidiary |
|
Financial Highlights (Unaudited) |
|
(dollars in thousands except per share amounts) |
|
3Q'24 |
2Q'24 |
1Q'24 |
4Q'23 |
3Q'23 |
||||||||||||||||
|
Per Share Data: |
||||||||||||||||||||
|
Earnings per common share - Basic |
$ | 0.79 | $ | 0.54 | $ | 0.59 | $ | 0.56 | $ | 0.66 | ||||||||||
|
Earnings per common share - Diluted |
$ | 0.78 | $ | 0.54 | $ | 0.59 | $ | 0.55 | $ | 0.66 | ||||||||||
|
Book value per common share |
$ | 26.87 | $ | 25.35 | $ | 24.71 | $ | 24.53 | $ | 22.91 | ||||||||||
|
Common shares outstanding |
3,293,755 | 3,293,863 | 3,295,265 | 3,259,881 | 3,263,733 | |||||||||||||||
|
Weighted-average basic common shares outstanding |
3,293,993 | 3,295,423 | 3,275,401 | 3,259,247 | 3,214,323 | |||||||||||||||
|
Weighted-average diluted common shares outstanding |
3,322,536 | 3,310,628 | 3,298,555 | 3,299,212 | 3,235,920 | |||||||||||||||
|
Selected Performance Ratios and Other Data: |
||||||||||||||||||||
|
Return on average assets(1) |
1.14 | % | 0.81 | % | 0.91 | % | 0.87 | % | 1.03 | % | ||||||||||
|
Return on average equity(1) |
12.20 | % | 8.70 | % | 9.61 | % | 9.85 | % | 11.31 | % | ||||||||||
|
Average yield on earning assets |
5.81 | % | 5.63 | % | 5.44 | % | 5.40 | % | 5.21 | % | ||||||||||
|
Net interest margin(2) |
3.63 | % | 3.55 | % | 3.51 | % | 3.61 | % | 3.68 | % | ||||||||||
|
Efficiency ratio(3) |
58.24 | % | 65.02 | % | 63.81 | % | 59.99 | % | 61.45 | % | ||||||||||
|
Noninterest expense/average assets(1) |
2.16 | % | 2.36 | % | 2.27 | % | 2.20 | % | 2.29 | % | ||||||||||
|
Asset Quality Data: |
||||||||||||||||||||
|
Nonaccrual loans |
$ | 2,464 | $ | 3,029 | $ | 3,446 | $ | 2,335 | $ | 1,112 | ||||||||||
|
Loans 90 days past due and still accruing |
$ | - | $ | - | $ | - | $ | 1,110 | $ | 367 | ||||||||||
|
Other real estate owned |
$ | - | $ | - | $ | - | $ | - | $ | 117 | ||||||||||
|
Total nonperforming assets |
$ | 2,464 | $ | 3,029 | $ | 3,446 | $ | 3,445 | $ | 1,596 | ||||||||||
|
Nonperforming assets/total assets |
0.26 | % | 0.34 | % | 0.40 | % | 0.40 | % | 0.19 | % | ||||||||||
|
Loans 30-89 days past due |
$ | 906 | $ | 635 | $ | 4,447 | $ | 5,353 | $ | 1,060 | ||||||||||
|
Total loans |
$ | 692,664 | $ | 690,258 | $ | 672,836 | $ | 651,928 | $ | 633,982 | ||||||||||
|
Loans 30-89 days past due/total loans |
0.13 | % | 0.09 | % | 0.66 | % | 0.82 | % | 0.17 | % | ||||||||||
|
Net charge-offs/average loans (1) |
- | 0.47 | % | - | - | 0.03 | % | |||||||||||||
|
Capital Ratios: |
||||||||||||||||||||
|
Tier 1 Leverage Capital Ratio (Company) |
10.28 | % | 10.41 | % | 10.44 | % | 10.29 | % | 10.34 | % | ||||||||||
|
Common Equity Tier 1 Capital Ratio (Company) |
13.63 | % | 13.39 | % | 13.28 | % | 13.37 | % | 13.42 | % | ||||||||||
|
Tier 1 Risk-Based Capital Ratio (Company) |
13.63 | % | 13.39 | % | 13.28 | % | 13.37 | % | 13.42 | % | ||||||||||
|
Total Risk-Based Capital Ratio (Company) |
14.41 | % | 14.17 | % | 14.13 | % | 14.22 | % | 14.19 | % | ||||||||||
|
Tangible Common Equity Ratio(4) (Company) |
9.50 | % | 9.35 | % | 9.44 | % | 9.36 | % | 8.99 | % | ||||||||||
|
Tier 1 Leverage Capital Ratio (Bank) |
10.21 | % | 10.32 | % | 10.35 | % | 10.15 | % | 10.18 | % | ||||||||||
|
Common Equity Tier 1 Capital Ratio (Bank) |
13.53 | % | 13.29 | % | 13.16 | % | 13.18 | % | 13.23 | % | ||||||||||
|
Tier 1 Risk-Based Capital Ratio (Bank) |
13.53 | % | 13.29 | % | 13.16 | % | 13.18 | % | 13.23 | % | ||||||||||
|
Total Risk-Based Capital Ratio (Bank) |
14.33 | % | 14.09 | % | 14.02 | % | 14.03 | % | 13.99 | % | ||||||||||
|
Tangible Common Equity Ratio(4) (Bank) |
9.43 | % | 9.27 | % | 9.38 | % | 9.22 | % | 8.84 | % |
|
(1) Annualized on a 30/360 basis |
|
(2) Net interest margin is net interest income divided by total average interest-earning assets, annualized. |
|
(3) Efficiency Ratio represents noninterest expense divided by the sum of net interest income plus noninterest income. |
| (4) Tangible Common Equity Ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, please refer to page 10. |
9
|
Prime Meridian Holding Company and Subsidiary |
|
Non-GAAP Measures and Ratio Reconciliation (Unaudited) |
|
(dollars in thousands except per share amounts) |
|
3Q'24 |
2Q'24 |
1Q'24 |
4Q'23 |
3Q'23 |
||||||||||||||||
|
Net Income |
||||||||||||||||||||
|
Net earnings (GAAP) |
$ | 2,603 | $ | 1,774 | $ | 1,931 | $ | 1,830 | $ | 2,120 | ||||||||||
|
Plus: credit loss expense |
100 | 444 | 211 | 707 | 175 | |||||||||||||||
|
Plus: income taxes |
835 | 553 | 603 | 562 | 668 | |||||||||||||||
|
PTPP(1) net earnings (non-GAAP) |
$ | 3,538 | $ | 2,771 | $ | 2,745 | $ | 3,099 | $ | 2,963 | ||||||||||
|
Earnings per Share (EPS) |
||||||||||||||||||||
|
Weighted average common shares, diluted |
3,322,536 | 3,310,628 | 3,298,555 | 3,299,212 | 3,235,920 | |||||||||||||||
|
EPS, diluted (GAAP) |
$ | 0.78 | $ | 0.54 | $ | 0.59 | $ | 0.55 | $ | 0.66 | ||||||||||
|
PTPP(1) EPS, diluted (non-GAAP) |
$ | 1.06 | $ | 0.84 | $ | 0.83 | $ | 0.94 | $ | 0.92 | ||||||||||
|
Return on Average Assets (ROAA)(2) |
||||||||||||||||||||
|
Average assets |
$ | 912,833 | $ | 873,824 | $ | 852,562 | $ | 844,835 | $ | 823,341 | ||||||||||
|
ROAA (GAAP) |
1.14 | % | 0.81 | % | 0.91 | % | 0.87 | % | 1.03 | % | ||||||||||
|
PTPP(1) ROAA (non-GAAP) |
1.55 | % | 1.27 | % | 1.29 | % | 1.47 | % | 1.44 | % | ||||||||||
|
Return on Average Equity (ROAE)(2) |
||||||||||||||||||||
|
Average equity |
$ | 85,374 | $ | 81,586 | $ | 80,358 | $ | 74,318 | $ | 74,962 | ||||||||||
|
ROAE (GAAP) |
12.20 | % | 8.70 | % | 9.61 | % | 9.85 | % | 11.31 | % | ||||||||||
|
PTPP(1) ROAE (non-GAAP) |
16.58 | % | 13.59 | % | 13.66 | % | 16.68 | % | 15.81 | % |
|
3Q'24 |
2Q'24 |
1Q'24 |
4Q'23 |
3Q'23 |
||||||||||||||||
|
Tangible Common Equity Ratio (Company) |
||||||||||||||||||||
|
Stockholders' Equity (GAAP) |
$ | 88,498 | $ | 83,511 | $ | 81,439 | $ | 79,976 | $ | 74,787 | ||||||||||
|
Less: Intangibles |
- | - | - | - | - | |||||||||||||||
|
Tangible Stockholders' Equity (non-GAAP) |
$ | 88,498 | $ | 83,511 | $ | 81,439 | $ | 79,976 | $ | 74,787 | ||||||||||
|
Total Assets (GAAP) |
$ | 931,622 | $ | 893,381 | $ | 862,660 | $ | 854,528 | $ | 831,985 | ||||||||||
|
Less: Intangibles |
- | - | - | - | - | |||||||||||||||
|
Tangible Assets (non-GAAP) |
$ | 931,622 | $ | 893,381 | $ | 862,660 | $ | 854,528 | $ | 831,985 | ||||||||||
|
Tangible Common Equity Ratio (non-GAAP) |
9.50 | % | 9.35 | % | 9.44 | % | 9.36 | % | 8.99 | % | ||||||||||
|
Tax-effected adjustment of net losses in HTM securities portfolio (non-GAAP) |
$ | 720 | $ | 1,150 | $ | 1,144 | $ | 1,114 | $ | 1,624 | ||||||||||
|
Tangible Assets adjusted for HTM securities at fair value (non-GAAP) |
$ | 930,902 | $ | 892,231 | $ | 861,516 | $ | 853,414 | $ | 830,361 | ||||||||||
|
Tangible Equity adjusted for HTM securities at fair value (non-GAAP) |
$ | 87,778 | $ | 82,361 | $ | 80,295 | $ | 78,862 | $ | 73,163 | ||||||||||
|
Tangible Common Equity Ratio Adjusted (non-GAAP) |
9.43 | % | 9.23 | % | 9.32 | % | 9.24 | % | 8.81 | % | ||||||||||
|
Tangible Common Equity Ratio (Bank) |
||||||||||||||||||||
|
Stockholders' Equity (GAAP) |
$ | 87,869 | $ | 82,789 | $ | 80,641 | $ | 78,763 | $ | 73,514 | ||||||||||
|
Less: Intangibles |
- | - | - | - | - | |||||||||||||||
|
Tangible Stockholders' Equity (non-GAAP) |
$ | 87,869 | $ | 82,789 | $ | 80,641 | $ | 78,763 | $ | 73,514 | ||||||||||
|
Total Assets (GAAP) |
$ | 931,493 | $ | 893,283 | $ | 862,598 | $ | 854,494 | $ | 831,830 | ||||||||||
|
Less: Intangibles |
- | - | - | - | - | |||||||||||||||
|
Tangible Assets (non-GAAP) |
$ | 931,493 | $ | 893,283 | $ | 862,598 | $ | 854,494 | $ | 831,830 | ||||||||||
|
Tangible Common Equity Ratio (non-GAAP) |
9.43 | % | 9.27 | % | 9.35 | % | 9.22 | % | 8.84 | % |
(1)Pre-tax, pre-provision
(2) Annualized on a 30/360 basis
10
|
Prime Meridian Holding Company and Subsidiary |
|
Non-GAAP Measures and Ratio Reconciliation Quarterly Pre-Tax Pre-Provision Calculation Unaudited) |
|
(dollars in thousands except per share amounts) |
|
For the Nine Months Ended September 30, |
||||||||
|
2024 |
2023 |
|||||||
|
Net Income |
||||||||
|
Net earnings (GAAP) |
$ | 6,308 | $ | 6,878 | ||||
|
Plus: credit loss expense |
755 | 743 | ||||||
|
Plus: income taxes |
1,991 | 2,178 | ||||||
|
PTPP(1) net earnings (non-GAAP) |
$ | 9,054 | $ | 9,799 | ||||
|
Earnings per Share (EPS) |
||||||||
|
Weighted average common shares, diluted |
3,330,863 | 3,221,952 | ||||||
|
EPS, diluted (GAAP) |
$ | 1.89 | $ | 2.13 | ||||
|
PTPP(1) EPS, diluted (non-GAAP) |
$ | 2.72 | $ | 3.04 | ||||
|
Return on Average Assets (ROAA)(2) |
||||||||
|
Average assets |
$ | 879,826 | $ | 817,216 | ||||
|
ROAA (GAAP) |
0.96 | % | 1.12 | % | ||||
|
PTPP(1) ROAA (non-GAAP) |
1.37 | % | 1.60 | % | ||||
|
Return on Average Equity (ROAE)(2) |
||||||||
|
Average equity (GAAP) |
$ | 82,450 | $ | 72,938 | ||||
|
ROAE (GAAP) |
10.20 | % | 12.57 | % | ||||
|
PTPP(1) ROAE (non-GAAP) |
14.64 | % | 17.91 | % | ||||
(1)Pre-tax, pre-provision
(2) Annualized on a 30/360 basis
11
Prime Meridian Holding Company and Subsidiary
Non-GAAP Measures and Ratio Reconciliation
Annual Pre-Tax Pre-Provision Calculation Unaudited)
(dollars in thousands except per share amounts)
|
For the Year Ended December 31, |
||||||||||||||||||||
|
2023 |
2022 |
2021 |
2020 |
2019 |
||||||||||||||||
|
Net Income |
||||||||||||||||||||
|
Net earnings (GAAP) |
$ | 8,708 | $ | 9,681 | $ | 8,347 | $ | 4,458 | $ | 3,542 | ||||||||||
|
Plus: credit loss expense |
1,450 | 890 | (104 | ) | 2,850 | 1,131 | ||||||||||||||
|
Plus: income taxes |
2,740 | 3,056 | 2,517 | 1,295 | 1,092 | |||||||||||||||
|
PTPP(1) net earnings (non-GAAP) |
$ | 12,898 | $ | 13,627 | $ | 10,760 | $ | 8,603 | $ | 5,765 | ||||||||||
|
Earnings per Share (EPS) |
||||||||||||||||||||
|
Weighted average common shares, diluted |
3,251,080 | 3,193,774 | 3,142,482 | 3,134,124 | 3,159,635 | |||||||||||||||
|
EPS, diluted (GAAP) |
$ | 2.68 | $ | 3.03 | $ | 2.66 | $ | 1.42 | $ | 1.12 | ||||||||||
|
PTPP(1) EPS, diluted (non-GAAP) |
$ | 3.97 | $ | 4.27 | $ | 3.42 | $ | 2.74 | $ | 1.82 | ||||||||||
|
Return on Average Assets (ROAA) |
||||||||||||||||||||
|
Average assets |
$ | 815,813 | $ | 852,272 | $ | 751,576 | $ | 595,363 | $ | 456,797 | ||||||||||
|
ROAA (GAAP) |
1.07 | % | 1.14 | % | 1.11 | % | 0.75 | % | 0.78 | % | ||||||||||
|
PTPP(1) ROAA (non-GAAP) |
1.58 | % | 1.60 | % | 1.43 | % | 1.45 | % | 1.26 | % | ||||||||||
|
Return on Average Equity (ROAE) |
||||||||||||||||||||
|
Average equity |
$ | 73,094 | $ | 65,549 | $ | 65,179 | $ | 57,386 | $ | 53,172 | ||||||||||
|
ROAE (GAAP) |
11.91 | % | 14.77 | % | 12.81 | % | 7.77 | % | 6.66 | % | ||||||||||
|
PTPP(1) ROAE (non-GAAP) |
17.65 | % | 20.79 | % | 16.51 | % | 14.99 | % | 10.84 | % | ||||||||||
|
Adjusted Average Loan Yield: |
||||||||||||||||||||
|
Net loans, excluding loans held for sale |
$ | 646,127 | $ | 588,715 | $ | 490,198 | $ | 476,661 | $ | 337,710 | ||||||||||
|
Less PPP loans |
(36 | ) | (191 | ) | (15,172 | ) | (66,774 | ) | - | |||||||||||
|
Adjusted net loans, excluding loans held for sale and PPP (non-GAAP) |
$ | 646,091 | $ | 588,524 | $ | 475,026 | $ | 409,887 | $ | 337,710 | ||||||||||
|
Average loans, excluding loans held for sale |
$ | 613,059 | $ | 537,304 | $ | 480,606 | $ | 429,802 | $ | 309,350 | ||||||||||
|
Less average PPP loans |
(108 | ) | (3,061 | ) | (50,315 | ) | (55,529 | ) | - | |||||||||||
|
Adjusted average loans, excluding loans held for sale and PPP (non-GAAP) |
$ | 612,951 | $ | 534,243 | $ | 430,291 | $ | 374,273 | $ | 309,350 | ||||||||||
|
Interest on loans, excluding loans held for sale |
$ | 34,938 | $ | 25,803 | $ | 22,598 | $ | 19,553 | $ | 15,884 | ||||||||||
|
Less interest income and earned fee income on PPP loans |
(2 | ) | (776 | ) | (3,358 | ) | (1,725 | ) | - | |||||||||||
|
Adjusted interest on loans, excluding loans held for sale and PPP (non-GAAP) |
$ | 34,936 | $ | 25,027 | $ | 19,240 | $ | 17,828 | $ | 15,884 | ||||||||||
|
Average loan yield, excluding loans held for sale (GAAP) |
5.70 | % | 4.80 | % | 4.70 | % | 4.55 | % | 5.13 | % | ||||||||||
|
Adjusted average loan yield, excluding loans held for sale and PPP (non-GAAP) |
5.70 | % | 4.68 | % | 4.47 | % | 4.76 | % | 5.13 | % |
(1) Pre-tax, pre-provision
| CONTACT: | Clint F. Weber, Chief Financial Officer and Executive Vice President |
| (850) 907-2300 | |
| Prime Meridian Holding Company | |
| Website: www.primemeridianbank.com |
12