Attached files

file filename
8-K - FORM 8-K - Prime Meridian Holding Cod30085d8k.htm

EXHIBIT 99.1

LOGO

 

 

FOR IMMEDIATE RELEASE

PRIME MERIDIAN HOLDING COMPANY REPORTS

SECOND QUARTER RESULTS

TALLAHASSEE, FL – August 5, 2015 (GLOBE NEWSWIRE) – Prime Meridian Holding Company (the “Company”), the parent bank holding company for Prime Meridian Bank (the “Bank”), today announced financial results for the quarter ended June 30, 2015. The Company reported net earnings of $376,000, or $0.19 per basic and diluted share for the quarter ended June 30, 2015, compared to a net loss of $91,000, or ($0.05) per basic and diluted share for the quarter ended June 30, 2014. For the first six months of 2015, the Company reported net income of $825,000, or $0.42 per basic and diluted share, compared to net income of $165,000, or $0.10 per basic and diluted share for the same period in 2014. Included in the 2014 second quarter and six month results was a higher loan loss provision related to one impaired commercial real estate loan.

Highlights

 

    Net interest income grew 18.8%, or $334,000, to $2.1 million over the prior year second quarter and 18.1%, or $633,000, to $4.1 million over the prior year six month period due primarily to increased loan production.

 

    Mortgage banking revenue continued its positive trend, increasing $68,000, or 82.9%, during the three months ended June 30, 2015 over the prior year quarter and $83,000, or 64.8%, during the six months ended June 30, 2015 over the prior year six month period.

 

    Total assets of the Company have grown 9% since December 31, 2014 to $229.3 million at June 30, 2015.

 

    The Company’s net loan portfolio grew $19.7 million, or 13.0%, to $171.6 million from December 31, 2014.

 

Prime Meridian Holding Company ● P.O. Box 13629 ● Tallahassee, Florida 32317

Phone 850.907.2301 ● Fax 850.907.2932


    For the six months ended June 30, 2015, the annualized Return on Average Assets was 0.75%, the annualized Return on Average Equity was 7.05%, and the net interest margin was 3.91%.

 

    The company recently closed on three acres of land in Wakulla County, Florida with the intention of constructing first a modular bank building, and eventually, a permanent branch building. This new branch location is already yielding significant deposit and loan opportunities for the Company.

 

    The Company has been approved for listing on the OTCQX venue of OTC Markets under the symbol PMHG. Trading of the stock is expected to begin during the third quarter of this year.

Commenting on the second quarter, Sammie D. Dixon, President and Chief Executive Officer, of Prime Meridian Bank and Prime Meridian Holding Company stated, “We are pleased with our year-to-date performance, particularly our net loan production and growth in mortgage banking revenue.”

“We eagerly await the opening of our next branch in Wakulla County and continue to explore and evaluate expansion and acquisition opportunities. Our forthcoming listing on the OTCQX venue of OTC Markets is also an important step in preparing the Company for execution of its growth strategy.”

“We think the future holds great opportunities, and we are making preparations to take advantage of them as they unfold.”

Earnings Summary

The Company reported net interest income of $2.1 million for the quarter ended June 30, 2015 compared to $1.8 million for the same period a year ago. The net interest margin for the quarter ended June 30, 2015 was 3.91%, compared to 3.55% for the 2014 second quarter. For the six months ended June 30, 2015, net interest income totaled $4.1 million, compared to $3.5 million for the comparable period in 2014, and the net interest margin was 3.91% for the six months ended June 30, 2015, compared to 3.42% a year ago. The increase in net interest income for both periods was driven by higher loan production and modest gains in interest income from securities, partially offset by slight decreases in other interest income. Although there continues to be downward pricing pressure on loans, higher average loan balances as a percentage of total interest earning assets also helped improve the overall yield on interest earning assets, thereby boosting net interest margin in both periods.

For the quarter ended June 30, 2015, the Company reported a $191,000 loan loss provision, compared to a $562,000 provision in the second quarter of 2014. For the six months ended June 30, 2015, the Company recorded a $209,000 loan loss provision, compared to a $591,000 provision for the comparable period in 2014. The higher provision in 2014 was primarily caused by one impaired commercial real estate loan.

 

Prime Meridian Holding Company ● P.O. Box 13629 ● Tallahassee, Florida 32317

Phone 850.907.2301 ● Fax 850.907.2932


Noninterest income for the quarter ended June 30, 2015 increased $75,000 from the same period a year ago and noninterest income for the six months ended June 30, 2015 increased $132,000 over the comparable period in 2014. The increases for the quarter and the six-month period ended June 30, 2015 were predominantly driven by increases in mortgage banking revenue.

Noninterest expense increased $31,000, or 2.0%, to $1.6 million for the three months ended June 30, 2015 compared to the same period a year ago. For the six months ended June 30, 2015, noninterest expense totaled $3.1 million, a $92,000 increase over the comparable period in 2014. The increase in both periods is primarily due to higher occupancy and equipment expense and marketing expense. Although salaries and employee benefits expense decreased in both periods despite growth in the number of employees, the decrease in both periods is explained by a change in our estimated standard deferred loan costs related to loan originations and renewals, which is booked as an offset to salary expense and amortized over the life of the loan.

Balance Sheet

As of June 30, 2015, the Company had grown to $229.3 million in total assets, $199.3 million in deposits, and $171.6 million in portfolio net loans. This compares to $210.4 million in total assets, $184.0 million in deposits, and $151.9 million in portfolio net loans as of December 31, 2014. Growth in assets is primarily due to the growth in our loan portfolio.

The composition of the Bank’s loan portfolio consisted of the following at June 30, 2015 and December 31, 2014, showing growth across all sectors from year-end (in thousands):

 

     June 30, 2015     December 31, 2014  
     Amount      % of Total     Amount      % of Total  

Commercial real estate

   $ 56,240         32.4   $ 52,661         34.2

Residential real estate and home equity

     63,038         36.3     51,858         33.7

Construction

     16,039         9.2     15,876         10.3

Commercial

     35,224         20.3     30,755         20.0

Consumer

     3,154         1.8     2,877         1.8
  

 

 

      

 

 

    

Total Loans

   $ 173,695         100.00   $ 154,027         100.00
  

 

 

      

 

 

    

Deferred loan costs, net

     187           (60   

Allowance for loan and lease losses

     (2,307        (2,098   
  

 

 

      

 

 

    

Loans, net

   $ 171,575         $ 151,869      
  

 

 

      

 

 

    

 

Prime Meridian Holding Company ● P.O. Box 13629 ● Tallahassee, Florida 32317

Phone 850.907.2301 ● Fax 850.907.2932


Total stockholder’s equity totaled $23.7 million, or 10.3% of total assets, at June 30, 2015, compared to $22.9 million, or 11.0% of total assets, at December 31, 2014, and book value per share increased from $11.78 at December 31, 2014 to $12.19 at June 30, 2015. Equity capital and book value per share have increased from December 31, 2014 due mostly to earnings retention. The Bank was considered to be “well capitalized” at June 30, 2015, with a 10.04% Tier 1 leverage Capital ratio, a 13.10% Common Equity Tier 1 Risk-Based Capital Ratio, a 13.10% Tier 1 Risk-Based Capital Ratio, and a 14.35% Total Risk-Based Capital Ratio, all above the minimum ratios to be considered “well capitalized.”

Asset Quality

Loans totaling $175,000 were deemed to be impaired under the Bank’s policy at June 30, 2015, while loans totaling $237,000 were deemed to be impaired under the Bank’s policy at December 31, 2014. At June 30, 2015, we had three non-accruing loans in the aggregate amount of $168,000, compared to two non-accruing loans at December 31, 2014, totaling $171,000. There were no net charge-offs or recoveries for the quarter ended June 30, 2015.

About Prime Meridian Holding Company

Headquartered in Tallahassee, Florida, Prime Meridian Holding Company offers a broad range of banking services through its wholly owned subsidiary, Prime Meridian Bank, a Florida state chartered non-member bank. Founded in 2008, the Bank serves its primary market of the Tallahassee Metropolitan Statistical Area, but also serves clients in the North Florida, South Georgia, and South Alabama markets. The Bank currently has two office locations, both in Tallahassee, and will soon open a third branch in Crawfordville, Florida. As of June 30, 2015, the consolidated Company had 52 full time equivalent employees. For more information about Prime Meridian Holding Company, please visit our website at www.primemeridianbank.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. 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. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiary or on the Company’s current plans, estimates, and expectations. 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. Factors that could have a material adverse effect on our operations and the operations of our subsidiary, Prime Meridian Bank, include, but are not limited to various risks, uncertainties, and assumptions relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy, and liquidity. These factors should not be construed as exhaustive. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. Information on these factors can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, and other reports

 

Prime Meridian Holding Company ● P.O. Box 13629 ● Tallahassee, Florida 32317

Phone 850.907.2301 ● Fax 850.907.2932


and statements the Company has filed with Securities and Exchange Commission which are available at the SEC’s website (www.sec.gov). 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.

Tables Follow

 

Prime Meridian Holding Company ● P.O. Box 13629 ● Tallahassee, Florida 32317

Phone 850.907.2301 ● Fax 850.907.2932


Prime Meridian Holding Company and Subsidiary

Condensed Consolidated Balance Sheets

(Dollars in thousands)

 

     June 30,      December 31,  
     2015      2014  
     (Unaudited)         

ASSETS

     

Cash & cash equivalents

     7,665         7,555   

Securities available for sale

     40,910         42,397   

Loans, held for sale

     2,160         1,871   

Loans, net

     171,575         151,869   

Federal Home Loan Bank stock

     402         186   

Premises & equipment, net

     3,627         3,563   

Deferred tax asset

     400         362   

Accrued interest receivable

     636         624   

Bank-owned life insurance

     1,638         1,613   

Other assets

     277         318   
  

 

 

    

 

 

 

Total Assets

     229,290         210,358   
  

 

 

    

 

 

 

LIABILITIES AND STOCKHOLDER’S EQUITY

     

Noninterest-bearing demand deposits

     47,365         43,148   

Savings, NOW and money-market deposits

     130,112         122,166   

Time deposits

     21,776         18,657   

Federal Home Loan Bank advance

     5,000         —     

Other borrowings

     —           2,699   

Official checks

     883         368   

Other liabilities

     445         453   
  

 

 

    

 

 

 

Total Liabilities

     205,581         187,491   
  

 

 

    

 

 

 

Total Stockholders’ Equity

     23,709         22,867   
  

 

 

    

 

 

 

Total Liabilities and Stockholder’s Equity

     229,290         210,358   
  

 

 

    

 

 

 

 

Prime Meridian Holding Company ● P.O. Box 13629 ● Tallahassee, Florida 32317

Phone 850.907.2301 ● Fax 850.907.2932


Prime Meridian Holding Company and Subsidiary

Consolidated Statements of Earnings (Unaudited)

(Dollars in thousands except per share data)

 

     For the Three Months Ended      For the Six Months Ended  
     June 30,      June 30,  
     2015      2014      2015      2014  

Interest income:

           

Loans

   $ 2,033       $ 1,693       $ 3,980       $ 3,335   

Securities

     243         228         465         448   

Other

     8         19         21         44   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest income

     2,284         1,940         4,466         3,827   
  

 

 

    

 

 

    

 

 

    

 

 

 

Interest Expense:

           

Deposits

     166         156         328         314   

Other borrowings

     8         8         14         22   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest expense

     174         164         342         336   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income

     2,110         1,776         4,124         3,491   

Provision for loan losses

     191         562         209         591   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

     1,919         1,214         3,915         2,900   
  

 

 

    

 

 

    

 

 

    

 

 

 

Noninterest income:

           

Service charges and fees on deposit accounts

     39         34         73         75   

Mortgage banking revenue

     150         82         211         128   

Income from bank-owned life insurance

     13         10         25         26   

Gain on sale of securities available for sale

     —           —           42         —     

Other income

     45         46         85         75   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest income

     247         172         436         304   
  

 

 

    

 

 

    

 

 

    

 

 

 

Noninterest expense:

           

Salaries and employee benefits

     804         813         1,612         1,625   

Occupancy and equipment

     279         218         562         421   

Professional fees

     161         175         237         261   

Marketing

     96         78         209         95   

FDIC Investment

     29         33         55         60   

Other

     215         236         401         522   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest expense

     1,584         1,553         3,076         2,984   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings before income taxes

     582         (167      1,275         220   

Income taxes

     206         (76      450         55   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net earnings

     376         (91      825         165   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share

   $ 0.19       $ (0.05    $ 0.42       $ 0.10   

Diluted earnings per share

   $ 0.19       $ (0.05    $ 0.42       $ 0.10   

 

Prime Meridian Holding Company ● P.O. Box 13629 ● Tallahassee, Florida 32317

Phone 850.907.2301 ● Fax 850.907.2932


Prime Meridian Holding Company and Subsidiaries

Financial Highlights

Dollars in thousands, except per share data

 

     Three Months Ended     Six Months Ended     Year Ended  
     June 30,     June 30,     December 31,  
     2015     2014     2015     2014     2014     2013  
     (Unaudited)     (Unaudited)              

Per Share Data:

            

Earnings per share - Basic

   $ 0.19      $ (0.05   $ 0.42      $ 0.10      $ 0.59      $ 0.77   

Earnings per share - Diluted

   $ 0.19      $ (0.05   $ 0.42      $ 0.10      $ 0.58      $ 0.76   

Book value per share

   $ 12.19      $ 11.33      $ 12.19      $ 11.33      $ 11.78      $ 10.92   

Weighted average basic shares outstanding

     1,944,355        1,692,105        1,943,788        1,613,921        1,709,746        1,497,737   

Weighted average diluted shares outstanding

     1,948,440        1,692,105        1,951,913        1,624,218        1,726,662        1,518,618   

Selected Performance Ratios and Other Data:

            

Return on average assets(1)

     0.67     (0.17 %)      0.75     0.15     0.48     0.62

Return on average equity(1)

     6.37     (1.90 %)      7.05     1.77     5.21     7.08

Average yield on earning assets

     4.23     3.88     4.23     3.75     4.02     3.94

Net interest margin

     3.91     3.55     3.91     3.42     3.70     3.55

Efficiency ratio(2)

     67.20     79.72     67.46     78.63     72.24     68.22

Stockholders’ equity to total assets

     10.34     9.81     10.34     9.81     9.34     7.89

Asset Quality Data:

            

Nonaccrual loans

   $ 167,825      $ 1,403,420        167,825      $ 1,403,420      $ 171,000      $ 0.00   

Total non-performing assets

   $ 167,825      $ 1,403,420        167,825      $ 1,403,420      $ 171,000      $ 0.00   

Non-peforming assets/ total assets

     0.07     0.68     0.07     0.68     0.08     0.00

Net charge-offs (recoveries) to average loans

     0.00     (0.01 %)      0.00     (0.02 %)      0.28     0.02

Regulatory Capital Ratios:

            

Tier 1 Leverage Capital Ratio

     10.04     8.96     10.04     8.96     9.52     8.41

Common Equity Tier I Capital Ratio

     13.10     13.18     13.10     13.18     12.84     12.41

Tier I Risk Based Capital Ratio

     13.10     13.18     13.10     13.18     12.84     12.41

Total Capital Ratio

     14.35     14.43     14.35     14.43     14.09     13.66

 

1 ROAA and ROAE are annualized
2 Efficiency Ratio represents noninterest expense divided by the sum of net interest income plus noninterest income.

 

CONTACT:     Kathy Jones, Chief Financial Officer
    (850) 907-2301
    Prime Meridian Holding Company
    Website: www.primemeridianbank.com

 

Prime Meridian Holding Company ● P.O. Box 13629 ● Tallahassee, Florida 32317

Phone 850.907.2301 ● Fax 850.907.2932