Prime Meridian Holding (PMHG) 8-K Prime Meridian Holding Company Reports

Exhibit 99.1

FOR IMMEDIATE RELEASE

PRIME MERIDIAN HOLDING COMPANY REPORTS

FIRST QUARTER 2017 RESULTS

TALLAHASSEE, FL., April 19, 2017 (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 ended March 31, 2017. The Company reported net earnings of $536,000, or $0.27 per basic and diluted share, for the quarter ended March 31, 2017, compared to net earnings of $382,000 or $0.19 per basic and diluted share, for the quarter ended March 31, 2016.

“We are proud of the Bank’s same quarter year-over-year performance,” said Sammie D. Dixon, Jr., President and CEO. “Net income increased 40.3%, driven by growth in both net interest income and noninterest income.”

According to Dixon, since March 31, 2016, the Bank’s net loan portfolio, excluding loans held for sale, has grown by $28.5 million, or 14.4%. Deposits have also grown, increasing $49.3 million since March 31, 2016, with $22.5 million of that growth coming in the form of transaction accounts.

“We are building this Company for long-term success,” he said. Nowhere is this long-term view more evident than the Bank’s focus on team culture and talent. “The average age of our employees is 39,” says Dixon. “Talent is the best way I know to grow a culture of performers who will take this Bank into the future.”

Since the inception of the Bank, our team has grown to 67 FTEs (full-time equivalents). “If this sounds familiar, it should,” says Dixon. “Bench strength allows us to continue offering a high level of client service as we grow.”

First Quarter 2017 Highlights

• Net income for the first quarter of 2017 increased 40.3% year over year to $536,000, boosted by 15.6% growth in net interest income and 45.4% growth in noninterest income.

• Mortgage banking revenue, which consists of both origination fee income and gains (losses) on the sale of mortgage loans, increased 66.2% to $251,000 for the first quarter of 2017 compared to the same period a year ago and continues to be a solid contributor to the Bank’s net income.

• For the quarter ended March 31, 2017, the annualized Return on Average Assets was 0.70%, the annualized Return on Average Equity was 7.88%, and the net interest margin was 3.60%.

Earnings Summary

Interest Income

For the quarter ended March 31, 2017, interest income grew to $2.9 million, compared to $2.5 million for the same period a year ago. The $414,000, or 16.6%, increase was mostly driven by higher loan balances as the Company reported average loans of $227.1 million for the three months ended March 31, 2017 compared to $193.6 million for the three months ended March 31, 2016.

Interest Expense

Compared to the same period a year ago, interest expense increased 28.6%, or $55,000, for the quarter ended March 31, 2017. Year over year, the increase can be attributed both to higher average balances of interest-bearing deposits, which increased 19.9% to $213.9 million, and a 3 basis points increase on the average rates paid on deposits.

Provision for Loan Losses

The provision for loan losses was $35,000 for the quarter ended March 31, 2017, representing a decrease of $99,000 as compared to the same period in 2016. The higher provision in 2016 was due to higher loan growth in that quarter.

Net Interest Margin

The net interest margin was 3.60% for the quarter ended March 31, 2017, compared to 3.74% for the same period in 2016. Our net interest margin continues to be compressed primarily as a result of declining loan yields. Despite the decrease in net interest margin, net interest income rose 15.6% to $2.7 million due to a higher volume of interest earning assets.

Noninterest Income

For the quarter ended March 31, 2017, noninterest income increased $132,000, or 45.4%, from the same period a year ago. Increases in service charges and fees on deposit accounts and mortgage banking revenue continue to be the primary contributors to growth of noninterest income.

Noninterest Expense

Noninterest expense increased 17.6%, or $330,000, for the quarter ended March 31, 2017, compared to the same period a year ago. Over 79% of the overall increase can be attributed to higher salaries and employee benefits. The Bank has continued to add additional personnel as it positions itself for organic growth and possible expansionary activities. Full-time equivalent employees increased from 56 at

March 31, 2016 to 67 at March 31, 2017. The increase in personnel and our new branch building in Crawfordville also led to a 21.7% increase in occupancy and equipment expense which further contributed to higher noninterest expense.

Balance Sheet

As of March 31, 2017, the Company had grown to $315.5 million in total assets, $286.2 million in deposits, and $225.7 million in portfolio net loans. This compares to $303.9 million in total assets, $275.3 million in deposits, and $222.8 million in portfolio net loans as of December 31, 2016. 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 )

	March 31, 2017
	(unaudited)						December 31, 2016
	Amount			% of Total			Amount			% of Total
Commercial real estate	$	65,488			28.7	%	$	65,805			29.2	%
Residential real estate and home equity		89,877			39.4	%		88,883			39.4	%
Construction		22,709			9.9	%		19,991			8.9	%
Commercial		45,607			20.0	%		46,340			20.6	%
Consumer		4,589			2.0	%		4,275			1.9	%
Total Loans		228,270			100.0	%		225,294			100.0	%
Net deferred loan costs		380						350
Allowance for loan losses		(2,908	)					(2,876	)
Loans, net	$	225,742					$	222,768

Total stockholders’ equity was $27.6 million, or 8.7% of total assets at March 31, 2017, compared to $27.1 million, or 8.9% of total assets, at December 31, 2016. Book value per share increased from $13.51 at December 31, 2016 to $13.74 at March 31, 2017, with 2,006,180 common shares outstanding. As of March 31, 2017, the Bank was considered to be “well capitalized” with a Tier 1 Leverage Capital Ratio of 8.65%, a 11.54% Common Equity Tier 1 Risk-Based Capital Ratio, a 11.54% Tier 1 Risk-Based Capital Ratio, and a 12.79% Total Risk-Based Capital Ratio.

Asset Quality

Loans totaling $805,000 were deemed to be impaired under the Bank’s policy at March 31, 2017, while loans totaling $811,000 were deemed to be impaired under the Bank’s policy at December 31, 2016. At March 31, 2017, the Bank had four nonaccrual loans in the aggregate amount of $805,000 compared to four nonaccrual loans totaling $811,000 at December 31, 2016. Net charge-offs totaled $3,000 for the quarter ended March 31, 2017.Management believes that the allowance for loan losses which was $2.9 million, or 1.3% of gross loans, at March 31, 2017 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- charterednon-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 branch in Crawfordville, Florida. As of March 31, 2017, the consolidated Company had 67 full-time equivalent employees. For more information about Prime Meridian Holding Company, please visit our website atwww.primemeridianbank.com.

Tables Follow

Prime Meridian Holding Company and Subsidiary

Condensed Consolidated Statements of Earnings (Unaudited)

(Dollars in thousands except per share data)

	Q1’17			Q4’16		Q3’16		Q2’16		Q1’16		Q4’15
Interest income:
Loans	$	2,635		$	2,662	$	2,573	$	2,447	$	2,274	$	2,233
Securities		209			162		156		182		200		216
Other		69			43		26		23		25		16
Total interest income		2,913			2,867		2,755		2,652		2,499		2,465
Interest Expense:
Deposits		247			231		205		201		192		190
Other borrowings		—			—		1		—		—		2
Total interest expense		247			231		206		201		192		192
Net interest income		2,666			2,636		2,549		2,451		2,307		2,273
Provision for loan losses		35			12		108		170		134		100
Net interest income after provision for loan losses		2,631			2,624		2,441		2,281		2,173		2,173
Noninterest income:
Service charges and fees on deposit accounts		80			76		74		52		48		42
Mortgage banking revenue		251			298		260		226		151		139
Income from bank-owned life insurance		12			12		12		13		13		12
Gain on sale of securities available for sale		(1	)		—		—		87		15		53
Other income		81			88		69		72		64		98
Total noninterest income		423			474		415		450		291		344
Noninterest expense:
Salaries and employee benefits		1,247			1,125		1,062		959		985		952
Occupancy and equipment		247			283		209		212		203		220
Professional fees		63			61		81		99		105		69
Advertising		154			126		94		108		159		122
FDIC / State Assessment		46			50		36		34		32		31
Software Maintenance, amortization and other		129			126		125		124		126		99
Other		323			325		304		290		269		342
Total noninterest expense		2,209			2,096		1,911		1,826		1,879		1,835
Earnings before income taxes		845			1,002		945		905		585		682
Income taxes		309			356		335		323		203		181
Net earnings	$	536		$	646	$	610	$	582	$	382	$	501
Basic earnings per share	$	0.27		$	0.33	$	0.31	$	0.29	$	0.19	$	0.26
Diluted earnings per share	$	0.27		$	0.32	$	0.31	$	0.29	$	0.19	$	0.26

Prime Meridian Holding Company and Subsidiary

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

	March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015
Assets
Cash & cash equivalents	$	35,200	$	36,165	$	23,077	$	10,799	$	18,779	$	8,429
Securities available for sale		42,950		33,103		32,714		35,939		38,116		38,063
Loans, held for sale		2,695		3,291		3,525		4,125		2,244		2,722
Loans, net		225,742		222,768		222,768		213,455		197,253		187,076
Federal Home Loan Bank stock		274		220		220		390		220		189
Premises & equipment, net		5,091		4,929		4,653		4,221		4,218		4,222
Accrued interest receivable		782		798		705		721		679		692
Bank-owned life insurance		1,723		1,711		1,699		1,687		1,675		1,662
Capitalized offering costs		16		—		—		—		—		—
Other assets		1,056		956		603		601		538		989
Total Assets	$	315,529	$	303,941	$	289,964	$	271,938	$	263,722	$	244,044
Liabilities and Stockholders’ Equity
Noninterest-bearing demand deposits		69,244		61,856		70,102		55,951		54,694		50,158
Savings, NOW and money-market deposits		196,897		192,768		167,818		162,908		161,715		144,801
Time deposits		20,108		20,723		23,236		21,524		20,502		22,614
Total Deposits		286,249		275,347		261,156		240,383		236,911		217,573
Federal Home Loan Bank advance				—		—		4,000		—		—
Official checks		838		632		1,093		767		768		744
Other liabilities		880		880		874		574		502		794
Total Liabilities		287,967		276,859		263,123		245,724		238,181		219,111
Total Stockholders’ Equity		27,562		27,082		26,841		26,214		25,541		24,933
Total Liabilities and Stockholders’ Equity	$	315,529	$	303,941	$	289,964	$	271,938	$	263,722	$	244,044

Prime Meridian Holding Company and Subsidiary

Financial Highlights (Unaudited)

	Q1’17			Q4’16			Q3’16			Q2’16			Q1’16
Per Share Data:
Earnings per share - Basic	$	0.27		$	0.33		$	0.31		$	0.29		$	0.19
Earnings per share - Diluted	$	0.27		$	0.32		$	0.31		$	0.29		$	0.19
Book value per share	$	13.74		$	13.51		$	13.52		$	13.24		$	12.92
Selected Performance Ratios and Other Data:
Return on average assets(1)		0.70	%		0.87	%		0.87	%		0.87	%		0.60	%
Return on average equity(1)		7.88	%		9.62	%		9.14	%		9.04	%		6.05	%
Average yield on earning assets		3.94	%		4.00	%		4.06	%		4.09	%		4.05	%
Net interest margin		3.60	%		3.68	%		3.76	%		3.78	%		3.74	%
Efficiency ratio(2)		71.51	%		67.40	%		64.47	%		62.94	%		72.32	%
Asset Quality Data:
Nonaccrual loans	$	805,000		$	811,000		$	1,161,000		$	439,000		$	133,000
Totalnon-performing assets	$	805,000		$	811,000		$	1,161,000		$	439,000		$	133,000
Non-peforming assets/total assets		0.26	%		0.27	%		0.40	%		0.16	%		0.05	%
Regulatory Capital Ratios:
Tier 1 Leverage Capital Ratio		8.65	%		8.73	%		9.01	%		9.16	%		9.36	%
Common Equity Tier I Capital Ratio		11.54	%		11.70	%		11.55	%		11.70	%		12.25	%
Tier I Risk Based Capital Ratio		11.54	%		11.70	%		11.55	%		11.70	%		12.25	%
Total Capital Ratio		12.79	%		12.95	%		12.80	%		12.95	%		13.50	%

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