Filed Pursuant to Rule 433
Registration Statement No. 333-191801
Executive Summary
The following financial detail concerns Prime Meridian Holding Company’s subsidiary, Prime Meridian Bank.
| Ended 9 Months September 30 2014 vs September 30 2013 | ||||||||||||||||
| 9/30/2014 | 9/30/2013 | Variance | ||||||||||||||
| Actual | Actual | Dollar | Percent | |||||||||||||
| Net Interest Margin | ||||||||||||||||
Earning Asset Yield | 3.91 | % | 3.98 | % | 807,714 | -0.07 | % | |||||||||
Cost of Funds | 0.34 | % | 0.44 | % | -37,323 | -0.10 | % | |||||||||
Net Interest Spread | 3.42 | % | 3.40 | % | 845,037 | 0.02 | % | |||||||||
Net Interest Margin | 3.58 | % | 3.56 | % | 845,037 | 0.02 | % | |||||||||
Value of 1 basis point, annualized | 20,336 | 17,229 | 3,108 | 18.04 | % | |||||||||||
| Income Summary | ||||||||||||||||
Net Interest Income | 5,403,772 | 4,558,735 | 845,037 | 18.54 | % | |||||||||||
Provision for Loan Losses | 796,999 | 403,219 | 393,780 | 97.66 | % | |||||||||||
Non-Interest Income | 514,902 | 723,097 | -208,196 | -28.79 | % | |||||||||||
Non-Interest Expense | 4,357,177 | 3,537,059 | 820,118 | 23.19 | % | |||||||||||
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Earnings Before Taxes | 764,498 | 1,341,554 | -577,057 | -43.01 | % | |||||||||||
Income Tax Expense | 247,808 | 469,751 | -221,943 | -47.25 | % | |||||||||||
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Net Income | 516,690 | 871,803 | -355,113 | -40.73 | % | |||||||||||
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| Balance Sheet | ||||||||||||||||
Assets | 204,220,254 | 190,271,758 | 13,948,496 | 7.33 | % | |||||||||||
Loans | 145,763,718 | 117,404,405 | 28,359,314 | 24.16 | % | |||||||||||
Earning Assets | 194,403,543 | 181,931,344 | 12,472,198 | 6.86 | % | |||||||||||
Deposits | 181,982,466 | 168,008,255 | 13,974,211 | 8.32 | % | |||||||||||
FHLB Advances & Other Borrowings | 2,692,230 | 5,804,136 | -3,111,905 | -53.62 | % | |||||||||||
Stockholders’ Equity | 19,123,218 | 16,116,452 | 3,006,766 | 18.66 | % | |||||||||||
| Key Performance Ratios | ||||||||||||||||
Return on Average Assets | 0.33 | % | 0.65 | % | -0.32 | % | ||||||||||
Return on Average Stockholders’ Equity | 3.80 | % | 7.21 | % | -3.41 | % | ||||||||||
Efficiency Ratio | 73.26 | % | 66.73 | % | 6.53 | % | ||||||||||
Equity to Assets | 9.36 | % | 8.47 | % | 0.89 | % | ||||||||||
Loans/Deposits | 80.10 | % | 69.88 | % | 10.22 | % | ||||||||||
Loans/Deposits+FHLB | 80.10 | % | 69.88 | % | 10.22 | % | ||||||||||
Wholesale Deposits/ Total Deposits | 0 | 0 | 0 | |||||||||||||
| Asset Quality | ||||||||||||||||
Allowance for Loan Losses | 2,027,727 | 1,622,546 | 405,181 | 24.97 | % | |||||||||||
Other Real Estate Owned | 871,677 | 0 | 871,677 | 0 | ||||||||||||
Allowance to Gross Loans | 1.39 | % | 1.38 | % | 0.01 | % | ||||||||||
Net Charge-offs/Average Loans | 0.51 | % | 0.03 | % | 0.48 | % | ||||||||||
NPA/Loans+OREO | 0.60 | % | 0 | 0.60 | % | |||||||||||
Rated Assets/Stockholder’s Equity | 0 | 0 | 0 | |||||||||||||
LOAN PORTFOLIO BY COLLATERAL
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| % of | % of Tier1 | % of | % of Tier1 | % of | % of Tier1 | |||||||||||||||||||||||||||||||
| 9/30/2014 | Portfolio | + ALLL | 8/31/2014 | Portfolio | + ALLL | 7/31/2014 | Portfolio | + ALLL | ||||||||||||||||||||||||||||
Unsecured - Consumer | $ | 1,934,006 | 1 | % | 9 | % | $ | 1,507,090 | 1 | % | 7 | % | $ | 1,559,456 | 1 | % | 7 | % | ||||||||||||||||||
Unsecured - Commercial | $ | 4,630,683 | 3 | % | 22 | % | $ | 5,001,586 | 4 | % | 23 | % | $ | 4,943,600 | 4 | % | 23 | % | ||||||||||||||||||
Total Unsecured | $ | 6,564,689 | 5 | % | 31 | % | $ | 6,508,676 | 5 | % | 30 | % | $ | 6,503,056 | 5 | % | 31 | % | ||||||||||||||||||
Vacant lots - Commercial | $ | 1,757,606 | 1 | % | 8 | % | $ | 1,754,869 | 1 | % | 8 | % | $ | 1,751,553 | 1 | % | 8 | % | ||||||||||||||||||
Vacant lots - Residential | $ | 2,615,752 | 2 | % | 12 | % | $ | 2,309,654 | 2 | % | 11 | % | $ | 1,932,428 | 1 | % | 9 | % | ||||||||||||||||||
Farmland | $ | 414,887 | 0 | % | 2 | % | $ | 411,591 | 0 | % | 2 | % | $ | 413,014 | 0 | % | 2 | % | ||||||||||||||||||
Raw land | $ | 804,317 | 1 | % | 4 | % | $ | 805,747 | 1 | % | 4 | % | $ | 808,983 | 1 | % | 4 | % | ||||||||||||||||||
Total Land and Lots | $ | 5,592,562 | 4 | % | 27 | % | $ | 5,281,860 | 4 | % | 25 | % | $ | 4,905,978 | 4 | % | 23 | % | ||||||||||||||||||
Construction-Residential | $ | 7,458,462 | 5 | % | 35 | % | $ | 7,192,527 | 5 | % | 34 | % | $ | 7,356,703 | 5 | % | 35 | % | ||||||||||||||||||
Construction-Commercial | $ | 4,856,606 | 3 | % | 23 | % | $ | 4,038,884 | 3 | % | 19 | % | $ | 3,235,317 | 2 | % | 15 | % | ||||||||||||||||||
Total Construction Loans | $ | 12,315,068 | 8 | % | 58 | % | $ | 11,231,411 | 8 | % | 52 | % | $ | 10,592,020 | 8 | % | 50 | % | ||||||||||||||||||
1-4 family - 1st REM - Owner-Occupied | $ | 18,991,147 | 13 | % | 90 | % | $ | 17,941,437 | 13 | % | 84 | % | $ | 16,852,896 | 12 | % | 79 | % | ||||||||||||||||||
1-4 family - 2nd REM - Owner-Occupied | $ | 3,386,680 | 2 | % | 16 | % | $ | 3,337,409 | 2 | % | 16 | % | $ | 3,192,856 | 2 | % | 15 | % | ||||||||||||||||||
1-4 family - 1st REM-Non-Owner Occupied | $ | 12,470,506 | 9 | % | 59 | % | $ | 12,372,949 | 9 | % | 58 | % | $ | 11,907,167 | 9 | % | 56 | % | ||||||||||||||||||
1-4 family - 2nd REM-Non-Owner Occupied | $ | 985,692 | 1 | % | 5 | % | $ | 991,630 | 1 | % | 5 | % | $ | 987,317 | 1 | % | 5 | % | ||||||||||||||||||
Total 1-4 family REM | $ | 35,834,025 | 25 | % | 170 | % | $ | 34,643,426 | 25 | % | 162 | % | $ | 32,940,235 | 24 | % | 155 | % | ||||||||||||||||||
Multifamily | $ | 12,932,727 | 9 | % | 61 | % | $ | 12,876,750 | 9 | % | 60 | % | $ | 12,920,875 | 9 | % | 61 | % | ||||||||||||||||||
Office - Owner Occupied | $ | 9,367,768 | 6 | % | 44 | % | $ | 9,126,041 | 6 | % | 43 | % | $ | 8,826,416 | 6 | % | 42 | % | ||||||||||||||||||
Office-Non-Owner Occupied | $ | 11,109,777 | 8 | % | 53 | % | $ | 10,396,785 | 7 | % | 49 | % | $ | 10,399,764 | 8 | % | 49 | % | ||||||||||||||||||
Retail-Owner Occupied | $ | 4,418,665 | 3 | % | 21 | % | $ | 3,949,360 | 3 | % | 18 | % | $ | 3,962,604 | 3 | % | 19 | % | ||||||||||||||||||
Retail-Non-Owner Occupied | $ | 8,458,815 | 6 | % | 40 | % | $ | 8,495,588 | 6 | % | 40 | % | $ | 8,529,974 | 6 | % | 40 | % | ||||||||||||||||||
Industrial/Warehouse-Owner-Occupied | $ | 6,281,433 | 4 | % | 30 | % | $ | 6,305,067 | 4 | % | 29 | % | $ | 6,193,552 | 5 | % | 29 | % | ||||||||||||||||||
Industrial/Warehouse-Non-Owner Occupied | $ | 908,371 | 1 | % | 4 | % | $ | 911,914 | 1 | % | 4 | % | $ | 915,442 | 1 | % | 4 | % | ||||||||||||||||||
Hotels/Motels | $ | 2,896,532 | 2 | % | 14 | % | $ | 2,901,966 | 2 | % | 14 | % | $ | 2,907,379 | 2 | % | 14 | % | ||||||||||||||||||
Restaurants | $ | 1,780,922 | 1 | % | 8 | % | $ | 2,155,917 | 2 | % | 10 | % | $ | 2,160,773 | 2 | % | 10 | % | ||||||||||||||||||
Other CRE - Owner Occupied | $ | 2,381,684 | 2 | % | 11 | % | $ | 2,249,105 | 2 | % | 11 | % | $ | 2,187,597 | 2 | % | 10 | % | ||||||||||||||||||
Other CRE - Non-Owner Occupied | $ | 1,253,064 | 1 | % | 6 | % | $ | 1,229,256 | 1 | % | 6 | % | $ | 1,153,514 | 1 | % | 5 | % | ||||||||||||||||||
Total Improved CRE | $ | 61,789,758 | 42 | % | 293 | % | $ | 60,597,748 | 43 | % | 283 | % | $ | 60,157,889 | 44 | % | 283 | % | ||||||||||||||||||
CD - Consumer | $ | 530,010 | 0 | % | 3 | % | $ | 580,733 | 0 | % | 3 | % | $ | 594,101 | 0 | % | 3 | % | ||||||||||||||||||
CD - Commercial | $ | 1,015,959 | 1 | % | 5 | % | $ | 834,596 | 1 | % | 4 | % | $ | 535,052 | 0 | % | 3 | % | ||||||||||||||||||
Money Market/Stock/ Bonds/Securities | $ | 1,712,270 | 1 | % | 8 | % | $ | 1,749,020 | 1 | % | 8 | % | $ | 1,792,128 | 1 | % | 8 | % | ||||||||||||||||||
CSV Life Insurance | $ | 5,587,989 | 4 | % | 27 | % | $ | 5,571,760 | 4 | % | 26 | % | $ | 5,574,153 | 4 | % | 26 | % | ||||||||||||||||||
Total Liquid Secured | $ | 8,846,228 | 6 | % | 42 | % | $ | 8,736,110 | 6 | % | 41 | % | $ | 8,495,434 | 6 | % | 40 | % | ||||||||||||||||||
A/R - Monitored | $ | 369,198 | 0 | % | 2 | % | $ | 400,803 | 0 | % | 2 | % | $ | 402,385 | 0 | % | 2 | % | ||||||||||||||||||
A/R - Not Monitored | $ | 605,922 | 0 | % | 3 | % | $ | 285,973 | 0 | % | 1 | % | $ | 425,032 | 0 | % | 2 | % | ||||||||||||||||||
FF&E/lnventory/Equipment | $ | 3,093,736 | 2 | % | 15 | % | $ | 2,582,100 | 2 | % | 12 | % | $ | 2,321,084 | 2 | % | 11 | % | ||||||||||||||||||
Blanket lien on business assets | $ | 8,502,071 | 6 | % | 40 | % | $ | 8,113,396 | 6 | % | 38 | % | $ | 8,282,626 | 6 | % | 39 | % | ||||||||||||||||||
Assignment of Note/Mortgage/Proceeds | $ | 794,397 | 1 | % | 4 | % | $ | 929,815 | 1 | % | 4 | % | $ | 980,504 | 1 | % | 5 | % | ||||||||||||||||||
Total Secured by Business Assets | $ | 13,365,323 | 9 | % | 63 | % | $ | 12,312,087 | 9 | % | 58 | % | $ | 12,411,632 | 9 | % | 58 | % | ||||||||||||||||||
Auto Vehicle-Consumer | $ | 233,350 | 0 | % | 1 | % | $ | 263,070 | 0 | % | 1 | % | $ | 270,269 | 0 | % | 1 | % | ||||||||||||||||||
Auto Vehicle - Commercial | $ | 831,713 | 1 | % | 4 | % | $ | 895,716 | 1 | % | 4 | % | $ | 721,567 | 1 | % | 3 | % | ||||||||||||||||||
Boat/Marine | $ | 431,453 | 0 | % | 2 | % | $ | 438,574 | 0 | % | 2 | % | $ | 443,421 | 0 | % | 2 | % | ||||||||||||||||||
Total Auto/Marine | $ | 1,496,516 | 1 | % | 7 | % | $ | 1,597,359 | 1 | % | 7 | % | $ | 1,435,257 | 1 | % | 7 | % | ||||||||||||||||||
Total Portfolio | $ | 145,804,168 | 100 | % | $ | 140,908,677 | 100 | % | $ | 137,441,501 | 100 | % | ||||||||||||||||||||||||
Prime Meridian Bank | CRE Concentration Worksheet | September 2014 |
Prime Meridian BankCRE Concentration Worksheet
As of Date:9/30/2014
Using the most recent EOM “Total Risk Based Capital” figure.
Total Capital | $ | 20,791,771 | ||
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Total Portfolio | $ | 145,804,168 |
| Exposure % of | Funded % of | |||||||||||||||
| Commercial Real Estate (CRE) Loans | Funded | Unfunded | Capital | Portfolio | ||||||||||||
Construction, Land Development, and Other Loans: | $ | 17,907,630 | $ | 8,927,728 | 129.07 | % | 12.28 | % | ||||||||
Multifamily: | 12,932,727 | 499,833 | 64.61 | % | 8.87 | % | ||||||||||
Nonfarm Nonresidential: | 48,857,031 | $ | 855,207 | 239.10 | % | 33.51 | % | |||||||||
Less: Improved Owner-Occupied CRE | -23,774,033 | -$ | 491,122 | -116.71 | % | -114.34 | % | |||||||||
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Total | $ | 55,923,355 | $ | 9,791,645 | 316.06 | % | 38.36 | % | ||||||||
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Cumulative Total (including Residential Investment/Non-Owner Occupied) | 69,364,556 | 10,530,848 | 384.26 | % | 47.57 | % | ||||||||||
Cumulative Total (including Owner Occupied CRE) | 93,138,589 | $ | 11,021,970 | 500.97 | % | 63.88 | % | |||||||||
Group 1 - Construction & Development Loans
| Exposure Amount | Funded % of | |||||||||||||||
Loans Secured By: | Funded Amount | Unfunded Amount | as % of Capital | Portfolio | ||||||||||||
Raw land & Farm Land | 1,219,203 | 764,361 | 9.54 | % | 0.84 | % | ||||||||||
Vacant lot - Residential | 2,615,752 | 172,648 | 13.41 | % | 1.79 | % | ||||||||||
Vacant lot - Commercial | 1,757,606 | 8,388 | 8.49 | % | 1.21 | % | ||||||||||
Commercial/ Residential: | 0.00 | % | ||||||||||||||
> Residential Construction - Non-Owner Occupied | 6,128,141 | 3,258,049 | 45.14 | % | 4.20 | % | ||||||||||
> Residential Construction - Owner-Occupied | 1,330,320 | 1,193,135 | 12.14 | % | 0.91 | % | ||||||||||
> Office - Non-Owner Occupied | 0 | 0 | 0.00 | % | 0.00 | % | ||||||||||
> Office - Owner Occupied | 1,449,188 | 1,006,086 | 0.00 | % | 0.99 | % | ||||||||||
> Retail - Non-Owner Occupied | 2,731,094 | 2,390,086 | 24.63 | % | 1.87 | % | ||||||||||
> Retail - Owner Occupied | 0 | 0 | 0.00 | % | 0.00 | % | ||||||||||
> Industrial & Warehouse - Owner Occupied | 0 | 0 | 0.00 | % | 0.00 | % | ||||||||||
> Other CRE - Non-Owner Occupied | 0 | 0 | 0.00 | % | 0.00 | % | ||||||||||
> Other CRE - Owner Occupied | 676,324 | 134,976 | 0.00 | % | 0.46 | % | ||||||||||
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Total | $ | 17,907,630 | $ | 8,927,728 | 129.07 | % | 12.28 | % | ||||||||
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Group 2 - Existing Non-Owner Occupied CRE Loans
| Exposure Amount | Funded % of | |||||||||||||||
Loans Secured By EXISTING: | Funded Amount | Unfunded Amount | as % of Capital | Portfolio | ||||||||||||
Office - Non-Owner Occupied | 11,109,777 | 18,904 | 53.52 | % | 53.43 | % | ||||||||||
Retail - Non-Owner Occupied | 8,458,815 | 0 | 40.68 | % | 40.68 | % | ||||||||||
Industrial & Warehouse - Non-Owner Occupied | 908,371 | 0 | 4.37 | % | 4.37 | % | ||||||||||
Hotel/Motel | 2,896,532 | 0 | 13.93 | % | 13.93 | % | ||||||||||
Restaurant | 456,440 | 0 | 2.20 | % | 2.20 | % | ||||||||||
Multifamily | 12,932,727 | 499,833 | 64.61 | % | 62.20 | % | ||||||||||
Other CRE - Non-Owner Occupied | 1,253,064 | 345,180 | 7.69 | % | 6.03 | % | ||||||||||
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Total | $ | 38,015,725 | $ | 863,917 | 187.00 | % | 26.07 | % | ||||||||
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Grand Total - Groups 1 and 2 | $ | 55,923,355 | $ | 9,791,645 | 316.06 | % | 38.36 | % | ||||||||
Group 3 - Improved Owner-Occupied CRE
Loans Secured By: | Funded Amount | Unfunded Amount | Exposure Amount as % of Capital | Funded % of Portfolio | ||||||||||||
Improved Office - Owner Occupied | 9,367,768 | 124,000 | 45.65 | % | 6.42 | % | ||||||||||
Improved Retail - Owner Occupied | 4,418,665 | 0 | 21.25 | % | 3.03 | % | ||||||||||
Improved - Industrial & Warehouse - Owner Occupied | 6,281,433 | 117,012 | 4.39 | % | 4.31 | % | ||||||||||
Restaurant - Owner-Occupied | 1,324,482 | 0 | 0.00 | % | 0.91 | % | ||||||||||
Other CRE - Owner Occupied | 2,381,684 | 250,111 | 12.66 | % | 1.63 | % | ||||||||||
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Total | $ | 23,774,033 | $ | 491,122 | 116.71 | % | 16.31 | % | ||||||||
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Total Group 3* | $ | 9,367,768 | $ | 18,843,373 | 135.68 | % | 6.42 | % | ||||||||
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COMMENTS:
Prepared By:Clint Weber
Page 1 of 1
Asset Quality Ratio Analysis
Ratio | 9/30/2014 | 8/31/2014 | 7/31/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | |||||||||||||||||||||
Adversely Classified Loans / Total Loans | 3.03 | % | 3.61 | % | 3.61 | % | 3.73 | % | 3.88 | % | 2.61 | % | 0.24 | % | ||||||||||||||
Adversely Classified Assets / Total Assets | 2.59 | % | 2.44 | % | 2.31 | % | 2.43 | % | 2.30 | % | 1.55 | % | 0.15 | % | ||||||||||||||
Adversely Classified Loans / Tier 1 Capital + ALLL | 20.99 | % | 23.77 | % | 23.34 | % | 23.71 | % | 23.98 | % | 17.48 | % | 1.60 | % | ||||||||||||||
Adversely Classified Assets / Tier 1 Capital + ALLL | 25.13 | % | 23.77 | % | 23.34 | % | 23.71 | % | 23.98 | % | 17.48 | % | 1.60 | % | ||||||||||||||
Loans 30+ Days Past Due / Total Loans | 0.08 | % | 1.30 | % | 1.13 | % | 1.14 | % | 0.03 | % | 0.03 | % | 0.00 | % | ||||||||||||||
Nonperforming Loans / Total Loans | 0.00 | % | 1.00 | % | 1.02 | % | 1.05 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
Nonperforming Loans + TDRs / Total Loans | 0.12 | % | 1.10 | % | 1.13 | % | 1.16 | % | 0.12 | % | 0.20 | % | 0.21 | % | ||||||||||||||
Nonperforming Assets (with TDRs) / Total Assets | 0.52 | % | 0.75 | % | 0.72 | % | 0.75 | % | 0.07 | % | 0.12 | % | 0.13 | % | ||||||||||||||
Nonperforming Assets (w/o TDRs) / Total Assets | 0.43 | % | 0.67 | % | 0.65 | % | 0.68 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||
ALLL / Total Loans | 1.39 | % | 1.74 | % | 1.74 | % | 1.75 | % | 1.40 | % | 1.41 | % | 1.38 | % | ||||||||||||||