Exhibit 99.1
FOR IMMEDIATE RELEASE
Prime Meridian Holding Company Reports
Second QUARTER 2024 RESULTS
“We are positioning ourselves for the next chapter,” said Sammie D. Dixon, Jr., Vice Chairman, President, and CEO. “ We are coming off a good quarter number-wise. Loan and deposit balances improved, as did net mortgage banking revenue. We have a clean balance sheet heading into the second half of 2024. We are a tighter, leaner team that’s ready to put more points on the board.”
Dixon, always one to promote the Bank’s culture, is referring to management’s adoption of a back-to-basics approach. “We have an exceptionally competent and confident team that cares about its clients and is dedicated to growing the Bank,” he said.
“For 16 years we have operated profitably in times of change. That’s largely due to our culture. Adapting to change has always been one of our strengths and is still very much the case,” he continued.
Second Quarter Highlights - Prime Meridian Holding Company and Subsidiary (Unaudited) |
(dollars in thousands except per share amounts) |
2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | ||||||||||||||||
Net earnings | $ | 1,774 | $ | 1,931 | $ | 1,830 | $ | 2,120 | $ | 2,257 | ||||||||||
Book value per share | $ | 25.35 | $ | 24.71 | $ | 24.53 | $ | 22.91 | $ | 23.25 | ||||||||||
Earnings per share - Basic | $ | 0.54 | $ | 0.59 | $ | 0.56 | $ | 0.66 | $ | 0.71 | ||||||||||
Earnings per share - Diluted | $ | 0.54 | $ | 0.59 | $ | 0.55 | $ | 0.66 | $ | 0.70 | ||||||||||
Weighted-average basic shares outstanding | 3,295,423 | 3,275,401 | 3,259,247 | 3,214,323 | 3,189,353 | |||||||||||||||
Weighted-average diluted shares outstanding | 3,310,628 | 3,298,555 | 3,299,212 | 3,235,920 | 3,201,531 | |||||||||||||||
Return on average assets(1) | 0.81 | % | 0.91 | % | 0.87 | % | 1.03 | % | 1.10 | % | ||||||||||
Return on average equity(1) | 8.70 | 9.61 | 9.85 | 11.31 | 12.31 | |||||||||||||||
Average yield on earning assets(1) | 5.63 | 5.44 | 5.40 | 5.21 | 4.98 | |||||||||||||||
Net interest margin(1) | 3.55 | 3.51 | 3.61 | 3.68 | 3.78 | |||||||||||||||
Efficiency ratio(2) | 65.02 | 63.81 | 59.99 | 61.45 | 57.84 | |||||||||||||||
Nonperforming assets/total assets(3) | 0.34 | 0.40 | 0.40 | 0.19 | 0.17 | |||||||||||||||
(1) Quarterly ratios have been annualized on a 30/360 basis. |
(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. |
| • | Book value per share increased $2.10, or 9.0% since 2Q'23 to $25.35. |
| • | For 2Q'24, the return on average assets was 0.81% and the return on average equity was 8.70%. |
| • | Pre-tax pre-provision return on assets was 1.27% and pre-tax pre-provision return on equity was 13.59% for 2Q'24. This is considered a non-GAAP financial measure and additional information, including a reconciliation, can be found on page 10. |
• | Gross loan balances increased $38.3 million, or 5.9% (11.8% annualized), since December 31, 2023 with most growth occurring in residential, home equity and construction real estate loans. |
| • | Since December 31, 2023, total deposits increased $41.7 million, or 5.6% (11.1% annualized), to $790.4 million. Growth occurred in all categories with the majority of growth occurring in time deposits and noninterest bearing accounts. |
| • | At June 30, 2024, available secured and unsecured borrowing capacity was $177.9 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 $223.3 million, off-balance sheet funding sources total $401.2 million. |
| • | At June 30, 2024, on-balance sheet liquidity was $144.8 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 $546.0 million, representing 69.1% of total deposits. |
| • | The Bank remains well capitalized with a Tier 1 Leverage ratio of 10.32% and a Total Risk Based Capital Ratio of 14.09% at June 30, 2024. |
Earnings Summary (Unaudited)
(dollars in thousands)
Change 2Q'24 vs. | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2Q'24 | 1Q'24 | 2Q'23 | 1Q'24 | 2Q'23 | 2024 | 2023 | % Change | |||||||||||||||||||||||||
Net interest income | $ | 7,394 | $ | 7,133 | $ | 7,353 | 3.7 | % | 0.6 | % | $ | 14,527 | $ | 14,908 | (2.6 | )% | ||||||||||||||||
Credit loss expense | 444 | 211 | 325 | 110.4 | 36.6 | 655 | 568 | 15.3 | ||||||||||||||||||||||||
Noninterest income | 527 | 453 | 463 | 16.3 | 13.8 | 980 | 904 | 8.4 | ||||||||||||||||||||||||
Noninterest expense | 5,150 | 4,841 | 4,521 | 6.4 | 13.9 | 9,991 | 8,976 | 11.3 | ||||||||||||||||||||||||
Income taxes | 553 | 603 | 713 | (8.3 | ) | (22.4 | ) | 1,156 | 1,510 | (23.4 | ) | |||||||||||||||||||||
Net earnings | $ | 1,774 | $ | 1,931 | $ | 2,257 | (8.1 | )% | (21.4 | )% | $ | 3,705 | $ | 4,758 | (22.1 | )% | ||||||||||||||||
Net Interest Income (Unaudited)
(dollars in thousands)
Change 2Q'24 vs. | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2Q'24 | 1Q'24 | 2Q'23 | 1Q'24 | 2Q'23 | 2024 | 2023 | % Change | |||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||||||
Loans | $ | 10,627 | $ | 9,962 | $ | 8,570 | 6.7 | % | 24.0 | % | $ | 20,589 | $ | 16,614 | 23.9 | % | ||||||||||||||||
Debt securities | 852 | 896 | 925 | (4.9 | ) | (7.9 | ) | 1,748 | 1,858 | (5.9 | ) | |||||||||||||||||||||
Other | 259 | 207 | 184 | 25.1 | 40.8 | 466 | 406 | 14.8 | ||||||||||||||||||||||||
Total interest income | 11,738 | 11,065 | 9,679 | 6.1 | % | 21.3 | % | 22,803 | 18,878 | 20.8 | % | |||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||
Deposits | 4,090 | 3,677 | 1,917 | 11.2 | % | 113.4 | % | 7,767 | 3,450 | 125.1 | % | |||||||||||||||||||||
FHLB advances and other borrowings | 254 | 255 | 409 | (0.4 | ) | (37.9 | ) | 509 | 520 | (2.1 | ) | |||||||||||||||||||||
Total interest expense | 4,344 | 3,932 | 2,326 | 10.5 | 86.8 | 8,276 | 3,970 | 108.5 | ||||||||||||||||||||||||
Net interest income | $ | 7,394 | $ | 7,133 | $ | 7,353 | 3.7 | % | 0.6 | % | $ | 14,527 | $ | 14,908 | (2.6 | )% | ||||||||||||||||
Volume and rate increases on loans in particular helped boost interest income for the three and six months ended June 30, 2024; however, a higher cost of funds and lower net interest rate spread continued to temper growth in net interest income.
The Company reported net interest income of $7.4 million for 2Q'24, an increase of $261,000, or 3.7%, from the linked quarter and an increase of $41,000, or 0.6% from 2Q'23. Average earning assets were up $20.4 million, or 2.5%, over the linked quarter and $55.3 million, or 7.1%, over 2Q'23 while the yield on average earning assets was 5.63% (2Q'24), compared to 5.44% (1Q’24) and 4.98% (2Q'23). The average cost of interest-bearing liabilities has risen from 1.72% in 2Q'23 to 2.96% in 2Q'24, reflecting the rising rate environment and a change in funding mix. The Company's net interest margin ("NIM") for the second quarter of 2024 was 3.55%, compared to 3.51% (1Q'24) and 3.78% (2Q'23).
For the six months ended June 30, 2024, net interest income was down 2.6% as deposit costs rose faster than loan yields and there was a shift in the deposit mix toward higher-yielding accounts. Average earning assets increased $46.6 million, or 6.0%, while the Company's NIM was 3.51% for the six months ended June 30, 2024 compared to 3.81% for the six months ended June 30, 2023.
Credit Loss Expense
At June 30, 2024, the allowance for credit losses for loans was $5.3 million, representing 0.77% to total loans (this excludes the allowance for credit losses for unfunded commitments of $158,000). Of the $803,000 total charge-off amount, $780,0000 relates to five commercial loans that were charged off during the second quarter, with $765,000 of that amount linked to two previously identified as impaired loan relationships. The following table presents detailed information related to credit loss expense related to loans for the periods indicated.
Three Months Ended | ||||||||||||
June 30, 2024 | March 31, 2024 | Change | ||||||||||
Beginning balance | $ | 5,796 | $ | 5,609 | $ | 187 | ||||||
Charge-offs | (803 | ) | (27 | ) | (776 | ) | ||||||
Recoveries | 3 | 3 | - | |||||||||
Net (charge-offs) recoveries | (800 | ) | (24 | ) | (776 | ) | ||||||
Credit loss expense (funded portion) | 286 | 211 | 75 | |||||||||
Ending balance | $ | 5,282 | $ | 5,796 | $ | (514 | ) | |||||
Allowance for credit losses for loans to total loans, gross | 0.77 | % | 0.86 | % | ||||||||
Noninterest income (Unaudited)
(dollars in thousands)
Change 2Q'24 vs. | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2Q'24 | 1Q'24 | 2Q'23 | 1Q'24 | 2Q'23 | 2024 | 2023 | % Change | |||||||||||||||||||||||||
Service charges and fees on deposit accounts | $ | 78 | $ | 69 | $ | 84 | 13.0 | % | (7.1 | )% | $ | 147 | $ | 169 | (13.0 | )% | ||||||||||||||||
Debit card/ATM revenue, net | 164 | 158 | 149 | 3.8 | 10.1 | 322 | 300 | 7.3 | ||||||||||||||||||||||||
Mortgage banking revenue, net | 125 | 71 | 75 | 76.1 | 66.7 | 196 | 129 | 51.9 | ||||||||||||||||||||||||
Income from bank-owned life insurance | 102 | 100 | 96 | 2.0 | 6.3 | 202 | 190 | 6.3 | ||||||||||||||||||||||||
Other income | 58 | 55 | 59 | 5.5 | (1.7 | ) | 113 | 116 | (2.6 | ) | ||||||||||||||||||||||
Total noninterest income | $ | 527 | $ | 453 | $ | 463 | 16.3 | % | 13.8 | % | $ | 980 | $ | 904 | 8.4 | % | ||||||||||||||||
Compared to the linked quarter and the same periods a year ago, the increase in noninterest income is mostly attributed to mortgage banking revenue which posted strong results in the first half of the second quarter but has since slowed down. Management expects continued fluctuations in mortgage banking revenue activity due to uncertainty in the rate environment and less inventory than demand. Fees from debit card/ATM activity also continued to show steady growth.
Noninterest expense (Unaudited)
(dollars in thousands)
Change 2Q'24 vs. | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2Q'24 | 1Q'24 | 2Q'23 | 1Q'24 | 2Q'23 | 2024 | 2023 | % Change | |||||||||||||||||||||||||
Salaries and employee benefits | $ | 3,024 | $ | 2,865 | $ | 2,743 | 5.5 | % | 10.2 | % | $ | 5,889 | $ | 5,495 | 7.2 | % | ||||||||||||||||
Occupancy and equipment | 425 | 405 | 399 | 4.9 | 6.5 | 830 | 808 | 2.7 | ||||||||||||||||||||||||
Professional fees | 142 | 154 | 132 | (7.8 | ) | 7.6 | 296 | 267 | 10.9 | |||||||||||||||||||||||
Marketing | 299 | 274 | 250 | 9.1 | 19.6 | 573 | 473 | 21.1 | ||||||||||||||||||||||||
FDIC assessment | 106 | 108 | 87 | (1.9 | ) | 21.8 | 214 | 171 | 25.1 | |||||||||||||||||||||||
Software maintenance, amortization and other | 541 | 404 | 294 | 33.9 | 84.0 | 945 | 571 | 65.5 | ||||||||||||||||||||||||
Other | 613 | 631 | 616 | (2.9 | ) | (0.5 | ) | 1,244 | 1,191 | 4.5 | ||||||||||||||||||||||
Total noninterest expense | $ | 5,150 | $ | 4,841 | $ | 4,521 | 6.4 | % | 13.9 | % | $ | 9,991 | $ | 8,976 | 11.3 | % | ||||||||||||||||
Operating expenses were up 6.4% over the linked quarter and 13.9% over the second quarter of 2023 due primarily to increased expense for salaries and employee benefits and software maintenance, amortization and other. The Company completed a core conversion in the fourth quarter of 2023 and some additional, mostly one-time, expenses related to the conversion were paid during the second quarter in addition to some routine expense for software maintenance. Operating expenses were up 11.3% over the six-month period also due mostly to higher compensation expense and higher expenses related to the core conversion, followed by higher marketing expense. FTEs have increased from 108 at June 30, 2023 to 113 at June 30, 2024. The Company's efficiency ratio was 65.02% in 2Q'24, compared to 63.81% in 1Q'24 and 57.84% in 2Q'23.
Financial Condition
At June 30, 2024, the Company reported $893.4 million in total assets, $790.4 million in deposits, and $684.8 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. The Company's loan to deposit ratio at June 30, 2024 was 87.3%. Gross loans increased $38.3 million, or 5.9%, since December 31, 2023 with residential and home equity and construction loans reporting the largest dollar volume increases. At June 30, 2024, the allowance for credit losses on loans was $5.3 million representing 0.77% of gross loans compared to $5.6 million, or 0.86% of gross loans, at December 31, 2023.
Prime Meridian Holding Company and Subsidiary
Loans by Class
(dollars in thousands)
June 30, 2024 | December 31, 2023 | |||||||||||||||
Unaudited | Audited | |||||||||||||||
Amount | % of Total | Amount(1) | % of Total | |||||||||||||
Commercial real estate | $ | 212,711 | 30.8 | % | $ | 208,429 | 32.0 | % | ||||||||
Residential real estate and home equity | 290,546 | 42.1 | 273,383 | 41.9 | ||||||||||||
Construction | 90,166 | 13.1 | 78,197 | 12.0 | ||||||||||||
Commercial | 90,926 | 13.2 | 85,983 | 13.2 | ||||||||||||
Consumer | 5,909 | 0.8 | 5,936 | 0.9 | ||||||||||||
Total loans | 690,258 | 100.0 | % | 651,928 | 100.0 | % | ||||||||||
Net deferred loan fees | (214 | ) | (192 | ) | ||||||||||||
Allowance for credit losses | (5,282 | ) | (5,609 | ) | ||||||||||||
Loans, net | $ | 684,762 | $ | 646,127 | ||||||||||||
(1) Certain loans as of December 31, 2023 were reclassed to conform with the current loan class presentation.
Deposit balances increased $41.7 million, or 5.6%, since December 31, 2023. Noninterest bearing demand deposits and time deposits increased $16.7 million and $22.6 million, respectively, since December 31, 2023, while savings, NOW and money-market accounts increased $2.3 million. Total stockholders’ equity was $83.5 million, or 9.35% of total assets, at June 30, 2024, compared to $80.0 million at December 31, 2023 or 9.36% of total assets. Retained earnings drove the increase in equity and offset common stock dividends of $818,000 ($0.25 per common share) paid during 1Q'24. At June 30, 2024, book value per share was $25.35 with 3,293,863 common shares outstanding.
As of June 30, 2024, the Bank was considered to be “well capitalized” with a Tier 1 Leverage Capital Ratio of 10.32%, a 13.29% Common Equity Tier 1 Capital Ratio, a 13.29% Tier 1 Risk-Based Capital Ratio, and a 14.09% Total Risk-Based Capital Ratio. 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 June 30, 2024. As of June 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 June 30, 2024 and interest expense totaled $509,000 for FHLB advances and other borrowings for the six months ended June 30, 2024.
Asset Quality
There were nine (9) nonperforming loans totaling $3.0 million at June 30, 2024. Charge-offs during the six months ended June 30, 2024 totaled $803,000 and were mostly related to two previously identified impaired commercial loans. Management believes that the allowance for credit losses for loans which was $5.3 million at June 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 June 30, 2024, the Bank had 113 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
Prime Meridian Holding Company and Subsidiary
Condensed Consolidated Statements of Earnings (Unaudited)
(in thousands except per share amounts)
2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | ||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 10,627 | $ | 9,962 | $ | 9,658 | $ | 9,019 | $ | 8,570 | ||||||||||
Debt securities | 852 | 896 | 921 | 919 | 925 | |||||||||||||||
Other | 259 | 207 | 287 | 244 | 184 | |||||||||||||||
Total interest income | 11,738 | 11,065 | 10,866 | 10,182 | 9,679 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 4,090 | 3,677 | 3,351 | 2,691 | 1,917 | |||||||||||||||
FHLB advances and other borrowings | 254 | 255 | 262 | 304 | 409 | |||||||||||||||
Total interest expense | 4,344 | 3,932 | 3,613 | 2,995 | 2,326 | |||||||||||||||
Net interest income | 7,394 | 7,133 | 7,253 | 7,187 | 7,353 | |||||||||||||||
Credit loss expense | 444 | 211 | 707 | 175 | 325 | |||||||||||||||
Net interest income after credit loss expense | 6,950 | 6,922 | 6,546 | 7,012 | 7,028 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Service charges and fees on deposit accounts | 78 | 69 | 96 | 92 | 84 | |||||||||||||||
Debit card/ATM revenue, net | 164 | 158 | 136 | 137 | 149 | |||||||||||||||
Mortgage banking revenue, net | 125 | 71 | 102 | 121 | 75 | |||||||||||||||
Income from bank-owned life insurance | 102 | 100 | 99 | 100 | 96 | |||||||||||||||
Other income | 58 | 55 | 59 | 49 | 59 | |||||||||||||||
Total noninterest income | 527 | 453 | 492 | 499 | 463 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 3,024 | 2,865 | 2,813 | 2,864 | 2,743 | |||||||||||||||
Occupancy and equipment | 425 | 405 | 412 | 427 | 399 | |||||||||||||||
Professional fees | 142 | 154 | 143 | 149 | 132 | |||||||||||||||
Marketing | 299 | 274 | 215 | 215 | 250 | |||||||||||||||
FDIC assessment | 106 | 108 | 85 | 104 | 87 | |||||||||||||||
Software maintenance, amortization and other | 541 | 404 | 302 | 341 | 294 | |||||||||||||||
Other | 613 | 631 | 676 | 623 | 616 | |||||||||||||||
Total noninterest expense | 5,150 | 4,841 | 4,646 | 4,723 | 4,521 | |||||||||||||||
Earnings before income taxes | 2,327 | 2,534 | 2,392 | 2,788 | 2,970 | |||||||||||||||
Income taxes | 553 | 603 | 562 | 668 | 713 | |||||||||||||||
Net earnings | $ | 1,774 | $ | 1,931 | $ | 1,830 | $ | 2,120 | $ | 2,257 | ||||||||||
Basic earnings per common share | $ | 0.54 | $ | 0.59 | $ | 0.56 | $ | 0.66 | $ | 0.71 | ||||||||||
Diluted earnings per common share | $ | 0.54 | $ | 0.59 | $ | 0.55 | $ | 0.66 | $ | 0.70 | ||||||||||
Prime Meridian Holding Company and Subsidiary |
Condensed Consolidated Statements of Earnings |
(in thousands, except per share amounts) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Unaudited | Unaudited | |||||||||||||||
Interest income: | ||||||||||||||||
Loans | $ | 10,627 | $ | 8,570 | $ | 20,589 | $ | 16,614 | ||||||||
Debt securities | 852 | 925 | 1,748 | 1,858 | ||||||||||||
Other | 259 | 184 | 466 | 406 | ||||||||||||
Total interest income | 11,738 | 9,679 | 22,803 | 18,878 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 4,090 | 1,917 | 7,767 | 3,450 | ||||||||||||
FHLB advances and other borrowings | 254 | 409 | 509 | 520 | ||||||||||||
Total interest expense | 4,344 | 2,326 | 8,276 | 3,970 | ||||||||||||
Net interest income | 7,394 | 7,353 | 14,527 | 14,908 | ||||||||||||
Credit loss expense | 444 | 325 | 655 | 568 | ||||||||||||
Net interest income after credit loss expense | 6,950 | 7,028 | 13,872 | 14,340 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges and fees on deposit accounts | 78 | 84 | 147 | 169 | ||||||||||||
Debit card/ATM revenue, net | 164 | 149 | 322 | 300 | ||||||||||||
Mortgage banking revenue, net | 125 | 75 | 196 | 129 | ||||||||||||
Income from bank-owned life insurance | 102 | 96 | 202 | 190 | ||||||||||||
Other income | 58 | 59 | 113 | 116 | ||||||||||||
Total noninterest income | 527 | 463 | 980 | 904 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 3,024 | 2,743 | 5,889 | 5,495 | ||||||||||||
Occupancy and equipment | 425 | 399 | 830 | 808 | ||||||||||||
Professional fees | 142 | 132 | 296 | 267 | ||||||||||||
Marketing | 299 | 250 | 573 | 473 | ||||||||||||
FDIC assessment | 106 | 87 | 214 | 171 | ||||||||||||
Software maintenance, amortization and other | 541 | 294 | 945 | 571 | ||||||||||||
Other | 613 | 616 | 1,244 | 1,191 | ||||||||||||
Total noninterest expense | 5,150 | 4,521 | 9,991 | 8,976 | ||||||||||||
Earnings before income taxes | 2,327 | 2,970 | 4,861 | 6,268 | ||||||||||||
Income taxes | 553 | 713 | 1,156 | 1,510 | ||||||||||||
Net earnings | $ | 1,774 | $ | 2,257 | $ | 3,705 | $ | 4,758 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.54 | $ | 0.71 | $ | 1.13 | $ | 1.49 | ||||||||
Diluted | $ | 0.54 | $ | 0.70 | $ | 1.12 | $ | 1.48 | ||||||||
Cash dividends per common share(1) | $ | - | $ | - | $ | 0.25 | $ | 0.22 | ||||||||
(1) Annual cash dividends were paid during the first quarters of 2024 and 2023.
Prime Meridian Holding Company and Subsidiary |
Condensed Consolidated Balance Sheets |
(in thousands) |
2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | ||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash & cash equivalents | $ | 50,875 | $ | 23,474 | $ | 28,416 | $ | 22,404 | $ | 21,799 | ||||||||||
Debt securities available for sale | 99,798 | 117,413 | 124,475 | 123,838 | 126,792 | |||||||||||||||
Debt securities held to maturity | 13,267 | 11,861 | 11,850 | 11,838 | 11,827 | |||||||||||||||
Loans, held for sale | 5,505 | 3,583 | 5,288 | 5,182 | 6,614 | |||||||||||||||
Loans, net | 684,762 | 666,826 | 646,127 | 628,974 | 614,744 | |||||||||||||||
Federal Home Loan Bank stock | 1,073 | 1,548 | 1,283 | 1,758 | 1,895 | |||||||||||||||
Premises & equipment, net | 7,266 | 7,406 | 7,476 | 7,613 | 7,746 | |||||||||||||||
Right of use lease asset | 2,711 | 2,767 | 2,823 | 2,879 | 2,934 | |||||||||||||||
Accrued interest receivable | 3,579 | 3,465 | 3,114 | 2,671 | 2,713 | |||||||||||||||
Bank-owned life insurance | 17,123 | 17,021 | 16,921 | 16,822 | 16,722 | |||||||||||||||
Other real estate owned | - | - | - | 117 | - | |||||||||||||||
Other assets | 7,422 | 7,296 | 6,755 | 7,889 | 7,253 | |||||||||||||||
Total Assets | $ | 893,381 | $ | 862,660 | $ | 854,528 | $ | 831,985 | $ | 821,039 | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 206,158 | $ | 201,083 | $ | 189,426 | $ | 193,439 | $ | 189,362 | ||||||||||
Savings, NOW and money-market deposits | 479,162 | 462,601 | 476,826 | 451,492 | 450,820 | |||||||||||||||
Time deposits | 105,050 | 88,029 | 82,436 | 77,876 | 62,646 | |||||||||||||||
Total Deposits | 790,370 | 751,713 | 748,688 | 722,807 | 702,828 | |||||||||||||||
Other borrowings | - | - | - | - | - | |||||||||||||||
FHLB Advances | 10,000 | 20,000 | 15,000 | 25,000 | 35,000 | |||||||||||||||
Official checks | 939 | 831 | 2,377 | 717 | 1,114 | |||||||||||||||
Operating lease liability | 2,913 | 2,963 | 3,013 | 3,062 | 3,111 | |||||||||||||||
Other liabilities | 5,648 | 5,714 | 5,474 | 5,612 | 4,816 | |||||||||||||||
Total Liabilities | 809,870 | 781,221 | 774,552 | 757,198 | 746,869 | |||||||||||||||
Total Stockholders' Equity | 83,511 | 81,439 | 79,976 | 74,787 | 74,170 | |||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 893,381 | $ | 862,660 | $ | 854,528 | $ | 831,985 | $ | 821,039 | ||||||||||
Prime Meridian Holding Company and Subsidiary |
Condensed Consolidated Average Balance Sheets (Unaudited) |
(in thousands) |
2Q'24 | 1Q'24 | 2Q'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) | $ | 685,946 | $ | 10,536 | 6.14 | % | $ | 660,024 | $ | 9,891 | 5.99 | % | $ | 613,318 | $ | 8,465 | 5.52 | % | |||||||||||||||||
Loans held for sale | 5,670 | 91 | 6.42 | 4,878 | 71 | 5.82 | 8,466 | 105 | 4.96 | ||||||||||||||||||||||||||
Debt securities | 122,472 | 852 | 2.78 | 133,588 | 896 | 2.68 | 140,699 | 925 | 2.63 | ||||||||||||||||||||||||||
Other(2) | 19,318 | 259 | 5.36 | 14,538 | 207 | 5.70 | 15,646 | 184 | 4.70 | ||||||||||||||||||||||||||
Total interest-earning assets | 833,406 | $ | 11,738 | 5.63 | % | 813,028 | $ | 11,065 | 5.44 | % | 778,129 | $ | 9,679 | 4.98 | % | ||||||||||||||||||||
Noninterest-earning assets | 40,418 | 39,534 | 39,540 | ||||||||||||||||||||||||||||||||
Total assets | $ | 873,824 | $ | 852,562 | $ | 817,669 | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Savings, NOW and money-market deposits | $ | 467,312 | $ | 3,031 | 2.59 | % | $ | 464,991 | $ | 2,828 | 2.43 | % | $ | 453,129 | $ | 1,585 | 1.40 | % | |||||||||||||||||
Time deposits | 99,583 | 1,059 | 4.25 | 84,832 | 849 | 4.00 | 55,192 | 332 | 2.41 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 566,895 | 4,090 | 2.89 | 549,823 | 3,677 | 2.68 | 508,321 | 1,917 | 1.51 | ||||||||||||||||||||||||||
FHLB advances and other borrowings | 20,608 | 254 | 4.93 | 21,131 | 255 | 4.83 | 32,113 | 409 | 5.09 | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 587,503 | $ | 4,344 | 2.96 | % | 570,954 | $ | 3,932 | 2.75 | % | 540,434 | $ | 2,326 | 1.72 | % | ||||||||||||||||||||
Noninterest-bearing deposits | 194,955 | 191,302 | 195,657 | ||||||||||||||||||||||||||||||||
Noninterest-bearing liabilities | 9,780 | 9,948 | 8,231 | ||||||||||||||||||||||||||||||||
Stockholders' equity | 81,586 | 80,358 | 73,347 | ||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 873,824 | $ | 852,562 | $ | 817,669 | |||||||||||||||||||||||||||||
Net earning assets | $ | 245,903 | $ | 242,074 | $ | 237,695 | |||||||||||||||||||||||||||||
Net interest income | $ | 7,394 | $ | 7,133 | $ | 7,353 | |||||||||||||||||||||||||||||
Interest rate spread(3) | 2.67 | % | 2.69 | % | 3.26 | % | |||||||||||||||||||||||||||||
Net interest margin(4) | 3.55 | % | 3.51 | % | 3.78 | % | |||||||||||||||||||||||||||||
For the Six Months Ended June 30, | ||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | and | Yield/ | Average | and | Yield/ | |||||||||||||||||||
(dollars in thousands) | Balance | Dividends | Rate | Balance | Dividends | Rate | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans(1) | $ | 678,371 | $ | 20,427 | 6.02 | % | $ | 615,610 | $ | 16,422 | 5.34 | % | ||||||||||||
Loans held for sale | 5,274 | 162 | 6.14 | 7,909 | 192 | 4.86 | ||||||||||||||||||
Debt securities | 128,030 | 1,748 | 2.32 | 140,982 | 1,858 | 2.64 | ||||||||||||||||||
Other(2) | 16,928 | 466 | 5.51 | 17,480 | 406 | 4.65 | ||||||||||||||||||
Total interest-earning assets | 828,603 | $ | 22,803 | 5.50 | % | 781,981 | $ | 18,878 | 4.83 | % | ||||||||||||||
Noninterest-earning assets | 34,579 | 32,127 | ||||||||||||||||||||||
Total assets | $ | 863,182 | $ | 814,108 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Savings, NOW and money-market deposits | $ | 464,252 | $ | 5,860 | 2.52 | % | $ | 467,877 | $ | 2,972 | 1.27 | % | ||||||||||||
Time deposits | 92,208 | 1,907 | 4.14 | 48,682 | 478 | 1.96 | ||||||||||||||||||
Total interest-bearing deposits | 556,460 | 7,767 | 2.79 | 516,559 | 3,450 | 1.34 | ||||||||||||||||||
FHLB advances and other borrowings | 20,869 | 509 | 4.88 | 19,776 | 520 | 5.26 | ||||||||||||||||||
Total interest-bearing liabilities | 577,329 | $ | 8,276 | 2.87 | % | 536,335 | $ | 3,970 | 1.48 | % | ||||||||||||||
Noninterest-bearing deposits | 193,187 | 197,215 | ||||||||||||||||||||||
Noninterest-bearing liabilities | 11,694 | 8,648 | ||||||||||||||||||||||
Stockholders' equity | 80,972 | 71,910 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 863,182 | $ | 814,108 | ||||||||||||||||||||
Net earning assets | $ | 251,274 | $ | 245,646 | ||||||||||||||||||||
Net interest income | $ | 14,527 | $ | 14,908 | ||||||||||||||||||||
Interest rate spread (3) | 2.64 | % | 3.35 | % | ||||||||||||||||||||
Net interest margin(4) | 3.51 | % | 3.81 | % | ||||||||||||||||||||
(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
Prime Meridian Holding Company and Subsidiary |
Financial Highlights (Unaudited) |
(dollars in thousands except per share amounts) |
2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | ||||||||||||||||
Per Share Data: | ||||||||||||||||||||
Earnings per common share - Basic | $ | 0.54 | $ | 0.59 | $ | 0.56 | $ | 0.66 | $ | 0.71 | ||||||||||
Earnings per common share - Diluted | $ | 0.54 | $ | 0.59 | $ | 0.55 | $ | 0.66 | $ | 0.70 | ||||||||||
Book value per common share | $ | 25.35 | $ | 24.71 | $ | 24.53 | $ | 22.91 | $ | 23.25 | ||||||||||
Common shares outstanding | 3,293,863 | 3,295,265 | 3,259,881 | 3,263,733 | 3,190,052 | |||||||||||||||
Weighted-average basic common shares outstanding | 3,295,423 | 3,275,401 | 3,259,247 | 3,214,323 | 3,189,353 | |||||||||||||||
Weighted-average diluted common shares outstanding | 3,310,628 | 3,298,555 | 3,299,212 | 3,235,920 | 3,201,531 | |||||||||||||||
Selected Performance Ratios and Other Data: | ||||||||||||||||||||
Return on average assets(1) | 0.81 | % | 0.91 | % | 0.87 | % | 1.03 | % | 1.10 | % | ||||||||||
Return on average equity(1) | 8.70 | 9.61 | 9.85 | 11.31 | 12.31 | |||||||||||||||
Average yield on earning assets | 5.63 | 5.44 | 5.40 | 5.21 | 4.98 | |||||||||||||||
Net interest margin(2) | 3.55 | 3.51 | 3.61 | 3.68 | 3.78 | |||||||||||||||
Efficiency ratio(3) | 65.02 | 63.81 | 59.99 | 61.45 | 57.84 | |||||||||||||||
Noninterest expense/average assets(1) | 2.36 | 2.27 | 2.20 | 2.29 | 2.21 | |||||||||||||||
Asset Quality Data: | ||||||||||||||||||||
Nonaccrual loans | $ | 3,029 | $ | 3,446 | $ | 2,335 | $ | 1,112 | $ | 1,391 | ||||||||||
Loans 90 days past due and still accruing | - | - | 1,110 | 367 | - | |||||||||||||||
Other real estate owned | - | - | - | 117 | - | |||||||||||||||
Total nonperforming assets | 3,029 | 3,446 | 3,445 | 1,596 | 1,391 | |||||||||||||||
Nonperforming assets/total assets | 0.34 | % | 0.40 | % | 0.40 | % | 0.19 | % | 0.17 | % | ||||||||||
Loans 30-89 days past due | 635 | $ | 4,447 | $ | 5,353 | $ | 1,060 | $ | 826 | |||||||||||
Total loans | 690,258 | 672,836 | 651,928 | 633,982 | 619,465 | |||||||||||||||
Loans 30-89 days past due/total loans | 0.09 | % | 0.66 | % | 0.82 | % | 0.17 | % | 0.13 | % | ||||||||||
Net charge-offs/average loans (1) | 0.47 | - | - | 0.03 | 0.23 | |||||||||||||||
Capital Ratios: | ||||||||||||||||||||
Tier 1 Leverage Capital Ratio (Company) | 10.41 | % | 10.44 | % | 10.29 | % | 10.34 | % | 10.14 | % | ||||||||||
Common Equity Tier 1 Capital Ratio (Company) | 13.39 | 13.28 | 13.37 | 13.42 | 13.22 | |||||||||||||||
Tier 1 Risk-Based Capital Ratio (Company) | 13.39 | 13.28 | 13.37 | 13.42 | 13.22 | |||||||||||||||
Total Risk-Based Capital Ratio (Company) | 14.17 | 14.13 | 14.22 | 14.19 | 13.97 | |||||||||||||||
Tangible Common Equity Ratio(4) (Company) | 9.35 | 9.44 | 9.36 | 8.99 | 9.03 | |||||||||||||||
Tier 1 Leverage Capital Ratio (Bank) | 10.32 | 10.35 | 10.15 | 10.18 | 9.98 | |||||||||||||||
Common Equity Tier 1 Capital Ratio (Bank) | 13.29 | 13.16 | 13.18 | 13.23 | 13.00 | |||||||||||||||
Tier 1 Risk-Based Capital Ratio (Bank) | 13.29 | 13.16 | 13.18 | 13.23 | 13.00 | |||||||||||||||
Total Risk-Based Capital Ratio (Bank) | 14.09 | 14.02 | 14.03 | 13.99 | 13.76 | |||||||||||||||
Tangible Common Equity Ratio(4) (Bank) | 9.27 | 9.38 | 9.22 | 8.84 | 8.87 | |||||||||||||||
(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. |
Prime Meridian Holding Company and Subsidiary |
Non-GAAP Measures and Ratio Reconciliation (Unaudited) |
(dollars in thousands except per share amounts) |
2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | ||||||||||||||||
Net Income | ||||||||||||||||||||
Net earnings (GAAP) | $ | 1,774 | $ | 1,931 | $ | 1,830 | $ | 2,120 | $ | 2,257 | ||||||||||
Plus: credit loss expense | 444 | 211 | 707 | 175 | 325 | |||||||||||||||
Plus: income taxes | 553 | 603 | 562 | 668 | 713 | |||||||||||||||
PTPP(1) net earnings (non-GAAP) | $ | 2,771 | $ | 2,745 | $ | 3,099 | $ | 2,963 | $ | 3,295 | ||||||||||
Earnings per Share (EPS) | ||||||||||||||||||||
Weighted average common shares, diluted | 3,310,628 | 3,298,555 | 3,299,212 | 3,235,920 | 3,201,531 | |||||||||||||||
EPS, diluted (GAAP) | $ | 0.54 | $ | 0.59 | $ | 0.55 | $ | 0.66 | $ | 0.70 | ||||||||||
PTPP(1) EPS, diluted (non-GAAP) | $ | 0.84 | $ | 0.83 | $ | 0.94 | $ | 0.92 | $ | 1.03 | ||||||||||
Return on Average Assets (ROAA)(2) | ||||||||||||||||||||
Average assets | $ | 873,824 | $ | 852,562 | $ | 844,835 | $ | 823,341 | $ | 817,669 | ||||||||||
ROAA (GAAP) | 0.81 | % | 0.91 | % | 0.87 | % | 1.03 | % | 1.10 | % | ||||||||||
PTPP(1) ROAA (non-GAAP) | 1.27 | % | 1.29 | % | 1.47 | % | 1.44 | % | 1.61 | % | ||||||||||
Return on Average Equity (ROAE)(2) | ||||||||||||||||||||
Average equity | $ | 81,586 | $ | 80,358 | $ | 74,318 | $ | 74,962 | $ | 73,347 | ||||||||||
ROAE (GAAP) | 8.70 | % | 9.61 | % | 9.85 | % | 11.31 | % | 12.31 | % | ||||||||||
PTPP(1) ROAE (non-GAAP) | 13.59 | % | 13.66 | % | 16.68 | % | 15.81 | % | 17.97 | % | ||||||||||
2Q'24 | 1Q'24 | 4Q'23 | 3Q'23 | 2Q'23 | ||||||||||||||||
Tangible Common Equity Ratio (Company) | ||||||||||||||||||||
Stockholders' Equity (GAAP) | $ | 83,511 | $ | 81,439 | $ | 79,976 | $ | 74,787 | $ | 74,170 | ||||||||||
Less: Intangibles | - | - | - | - | - | |||||||||||||||
Tangible Stockholders' Equity (non-GAAP) | $ | 83,511 | $ | 81,439 | $ | 79,976 | $ | 74,787 | $ | 74,170 | ||||||||||
Total Assets (GAAP) | $ | 893,381 | $ | 862,660 | $ | 854,528 | $ | 831,985 | $ | 821,039 | ||||||||||
Less: Intangibles | - | - | - | - | - | |||||||||||||||
Tangible Assets (non-GAAP) | $ | 893,381 | $ | 862,660 | $ | 854,528 | $ | 831,985 | $ | 821,039 | ||||||||||
Tangible Common Equity Ratio (non-GAAP) | 9.35 | % | 9.44 | % | 9.36 | % | 8.99 | % | 9.03 | % | ||||||||||
Tax-effected adjustment of net losses in HTM securities portfolio (non-GAAP) | $ | 1,150 | $ | 1,144 | $ | 1,114 | $ | 1,624 | $ | 1,063 | ||||||||||
Tangible Assets adjusted for HTM securities at fair value (non-GAAP) | 892,231 | 861,516 | 853,414 | 830,361 | 819,976 | |||||||||||||||
Tangible Equity adjusted for HTM securities at fair value (non-GAAP) | 82,361 | 80,295 | 78,862 | 73,163 | 73,107 | |||||||||||||||
Tangible Common Equity Ratio Adjusted (non-GAAP) | 9.23 | % | 9.32 | % | 9.24 | % | 8.81 | % | 8.92 | % | ||||||||||
Tangible Common Equity Ratio (Bank) | ||||||||||||||||||||
Stockholders' Equity (GAAP) | $ | 82,789 | $ | 80,641 | $ | 78,763 | $ | 73,514 | $ | 72,816 | ||||||||||
Less: Intangibles | - | - | - | - | - | |||||||||||||||
Tangible Stockholders' Equity (non-GAAP) | $ | 82,789 | $ | 80,641 | $ | 78,763 | $ | 73,514 | $ | 72,816 | ||||||||||
Total Assets (GAAP) | $ | 893,283 | $ | 862,598 | $ | 854,494 | $ | 831,830 | $ | 820,921 | ||||||||||
Less: Intangibles | - | - | - | - | - | |||||||||||||||
Tangible Assets (non-GAAP) | $ | 893,283 | $ | 862,598 | $ | 854,494 | $ | 831,830 | $ | 820,921 | ||||||||||
Tangible Common Equity Ratio (non-GAAP) | 9.27 | % | 9.35 | % | 9.22 | % | 8.84 | % | 8.87 | % | ||||||||||
(1)Pre-tax, pre-provision
(2) Annualized on a 30/360 basis
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 Six Months Ended | ||||||||
June 30, 2024 | June 30, 2023 | |||||||
Net Income | ||||||||
Net earnings (GAAP) | $ | 3,705 | $ | 4,758 | ||||
Plus: credit loss expense | 655 | 568 | ||||||
Plus: income taxes | 1,156 | 1,510 | ||||||
PTPP(1) net earnings (non-GAAP) | $ | 5,516 | $ | 6,836 | ||||
Earnings per Share (EPS) | ||||||||
Weighted average common shares, diluted | 3,301,866 | 3,211,095 | ||||||
EPS, diluted (GAAP) | $ | 1.12 | $ | 1.48 | ||||
PTPP(1) EPS, diluted (non-GAAP) | $ | 1.67 | $ | 2.13 | ||||
Return on Average Assets (ROAA)(2) | ||||||||
Average assets | $ | 863,182 | $ | 814,108 | ||||
ROAA (GAAP) | 0.86 | % | 1.17 | % | ||||
PTPP(1) ROAA (non-GAAP) | 1.28 | % | 1.68 | % | ||||
Return on Average Equity (ROAE)(2) | ||||||||
Average equity (GAAP) | $ | 80,972 | $ | 71,910 | ||||
ROAE (GAAP) | 9.15 | % | 13.23 | % | ||||
PTPP(1) ROAE (non-GAAP) | 13.62 | % | 19.01 | % | ||||
(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 |
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