FOR IMMEDIATE RELEASE
TALLAHASSEE, FL., January 28, 2016 (GLOBE NEWSWIRE) - Prime Meridian Holding Company (OTCQX: PMHG) the parent bank holding company for Prime Meridian Bank today announced financial results for the quarter and year ended December 31, 2015. The Company reported net earnings of $501,000, or $0.26 per basic and diluted share, for the quarter ended December 31, 2015, compared to net earnings of $545,000 or $0.30 per basic and diluted share, for the fourth quarter ended December 31, 2014. For the year ended December 31, 2015, the Company reported net earnings of $1.7 million, or $0.88 per basic and $0.87 per diluted share compared to net earnings of $1.0 million, or $0.59 per basic and $0.58 per diluted share, for the year ended December 31, 2014. The Company also announced today that its Board of Directors has declared the Company's first annual cash dividend of $0.05 per share on its common stock. This dividend is payable on March 8, 2016 to shareholders of record on February 18, 2016.
"Our team's efforts to consistently provide outstanding service to our clients - and to do so in an efficient manner - has resulted in steady positive growth in key areas of the Bank," said Sammie
Dixon, Jr., CEO and President. "The numbers tell the story: The strong growth in both our commercial lending and mortgage business, coupled with strong deposit growth fueled, in part, by our first venture into a new market, Crawfordville, Florida, demonstrate our team is getting it done."
Also integral to the Company's success, according to Dixon, is the Bank's ability to maintain strong asset quality - a function of solid underwriting procedures. "Doing so has positioned us with one of the lowest percentages of nonperforming assets (NPAs) among our regional peers," he said.
HighlightsNet interest income grew 11.0% and 15.0% for the quarter and year ended December 31, 2015, respectively, as compared to the same periods in 2014. The increase in both periods was due to higher average loan balances in 2015.
Total assets increased 16.0% during 2015 to $244.0 million.
The Company grew its net loan portfolio year over year 23.2%, or $35.2 million, to $187.1 million.
Mortgage banking revenue increased 76.7% to $546,000 in 2015 and continues to represent a growing and profitable source of income for the Company.
For the year ended December 31, 2015, the Return on Average Assets was 0.74%, the Return on Average Equity was 7.15%, and the net interest margin was 3.87%.
During the third quarter of 2015, the Company opened a third full-service office located in Crawfordville, Florida and by December 31, 2015, had collected nearly $15 million in new deposits from this location.
For the quarter ended December 31, 2015, the Company reported net interest income of $2.3 million compared to $2.0 million for the same period a year ago. The $226,000, or 11.0%, increase was driven by higher loan balances as the Company reported average loans of $184.2 million for the three months ended December 31, 2015 compared to $150.3 million for the three months ended December 31, 2014. The increase in interest income from loans was partially offset by a
$30,000, or 12.2%, decrease in interest income from securities. Also during this period, the Company's net interest margin declined to 3.80% primarily because new loans were originated at lower yields.
Net interest income was $8.6 million for the year ended December 31, 2015, compared to $7.5 million for the prior year, a 15.0% increase year over year. The increase in net interest income for the year was also driven by higher average loan balances as the Company reported average loans of $170.1 million for the year ended December 31, 2015 compared to $136.3 million for the year ended December 31, 2014. The increase in interest income from loans was partially offset by a
$39,000, or 4.2%, decrease in interest income from securities. Interest expense increased 8.5%, to
$717,000 for the year ended December 31, 2015 due to higher balances of interest-bearing deposits.
The net interest margin was 3.87% for the year ended December 31, 2015, up from 3.70% for the year ended December 31, 2014, as a 17 basis points increase in the average yield on total interest- earning assets was complemented by a 3 basis points decrease in the average yield on total interest-bearing liabilities. Although yields on new loan originations declined in 2015, higher average loan balances offset this decrease and helped maintain the margin.
For the quarter and year ended December 31, 2015, noninterest income increased $145,000, or 72.9%, and $360,000, or 50.7%, respectively, from the same periods a year ago. The increases were due primarily to increases in mortgage banking revenue and increases in other income from higher merchant card services and credit card fee income.
For the quarter and year ended December 31, 2015, noninterest expense increased $383,000 and
$763,000, respectively from the same periods a year ago. In both periods, the increases were due
mostly to increases in salaries and employee benefits, occupancy and equipment, advertising and other noninterest expense. For both reporting periods, the increase in salaries and employee benefits relates to additional personnel as the Company seeks to build out an infrastructure that is capable of handling its plans for organic growth and possible acquisitions. Full-time equivalent employees increased from 42 at December 31, 2014 to 56 at December 31, 2015. The increase in occupancy and equipment expenses primarily relates to additional leased space at our Timberlane location and to the opening of a third office in Crawfordville, Florida during the third quarter of 2015.
Balance SheetAs of December 31, 2015, the Company had grown to $244.0 million in total assets, $217.6 million in deposits, and $187.1 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 expansion of our loan portfolio.
Loan growth was strong in 2015 across all sectors. The composition of the Bank's loan portfolio is as follows:
As of December 31,
2015 2014 Amount % of Total Amount % of Total
Commercial real estate | $ 57,847 | 30.6% | $ 52,661 | 34.2% |
Residential real estate and home equity | 69,817 | 36.9% | 51,858 | 33.7% |
Construction | 17,493 | 9.2% | 15,876 | 10.3% |
Commercial | 40,229 | 21.3% | 30,755 | 20.0% |
Consumer | 3,877 | 2.0% | 2,877 | 1.8% |
Total Loans $ 189,263 100.00% $ 154,027 100.00%
Deferred loan costs (fees), net | 286 | (60) |
Allowance for loan and lease losses | (2,473) | (2,098) |
Loans, net $ 187,076 $ 151,869
Total stockholder's equity was $24.9 million, or 10.2% of total assets at December 31, 2015, compared to $22.9 million, or 10.9% of total assets, at December 31, 2014. Book value per share increased from $11.78 at December 31, 2014 to $12.62 at December 31, 2015, with 1,975,329 common shares outstanding. Equity capital and book value per share increased in 2015 due mostly to retained earnings. As of December 31, 2015, the Bank was considered to be "well capitalized" with a Tier 1 Leverage Capital Ratio of 9.48%, a 12.79% Common Equity Tier 1 Risk- Based Capital Ratio, a 12.79% Tier 1 Risk-Based Capital Ratio, and a 14.05% Total Risk-Based Capital Ratio.
Asset QualityLoans totaling $144,000 were deemed to be impaired under the Bank's policy at December 31, 2015, while loans totaling $237,000 were deemed to be impaired under the Bank's policy at December 31, 2014. At December 31, 2015, we had two non-accruing loans in the aggregate amount of $137,000, compared to two non-accruing loans totaling $171,000 at December 31, 2014. Net charge-offs totaled $58,000 for the year ended December 31, 2015, compared to $383,000 for the year ended December 31, 2014. The higher charge-off amount in 2014 was attributed to one impaired commercial real estate loan that has since been resolved.
The provision for loan losses for the years ended December 31, 2015 and 2014, was $433,000 and
$747,000, respectively. Management believes that the allowance for loan and losses ("ALLL"), which was $2.5 million, or 1.31% of gross loans, at December 31, 2015 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- 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 and South Georgia markets. The Bank currently has three office locations, two in Tallahassee, and a third branch in Crawfordville, Florida. As of December 31, 2015, the consolidated Company had 56 full-time equivalent employees. For more information about Prime Meridian Holding Company, please visit our website at www.primemeridianbank.com.
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 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.
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Prime Meridian Holding Company issued this content on 28 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 January 2016 22:12:42 UTC
Original Document: http://investors.primemeridianbank.com/file.aspx?IID=4270362&FID=1500080157
