Form 8-K - Current report

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) July 26 , 2024

PRIME MERIDIAN HOLDING COMPANY

(Exact name of registrant as specified in its charter)

Florida	333-191801	27-2980805
(State or other jurisdiction of incorporation)	(Commission file number)	(IRS employer identification no.)

1471 Timberlane Road Tallahassee, FL	32312
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (850) 907-2300

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1933 (§240.12b-2 of this chapter) Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Securities Registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)	Name of exchange on which registered
None			N/A	N/A

Item 2.02. Results of Operations and Financial Condition.

On July 26, 2024, Prime Meridian Holding Company issued and posted to its website a press release announcing financial results for the three and six months ended June 30, 2024 and an investor presentation for the quarter ended June 30, 2024. Copies of the press release and the investor presentation are attached as Exhibits 99.1 and 99.2 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

	(d)	Exhibits.

		99.1 Press release dated July 26, 2024
		99.2 Investor Presentation Q2 2024
		104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

The information in this report (including the exhibits) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PRIME MERIDIAN HOLDING COMPANY


	By:	/s/ Clint F. Weber
		Clint F. Weber
		Chief Financial Officer and Executive Vice President

Date: July 26, 2024

Exhibit 99.1

FOR IMMEDIATE RELEASE

Prime Meridian Holding Company Reports

Second QUARTER 2024 RESULTS

TALLAHASSEE, FL – July 26, 2024 (GLOBE NEWSWIRE) – Prime Meridian Holding Company (OTCQX: PMHG), the parent bank holding company for Prime Meridian Bank, today announced unaudited financial results for the three and six months ended June 30, 2024. The Company reported net earnings of $1,774,000, or $0.54 per basic and diluted share, for the three months ended June 30, 2024, compared to $2,257,000, or $0.71 per basic and $0.70 per diluted share, for the three months ended June 30, 2023. The Company reported net earnings of $3,705,000, or $1.13 per basic and $1.12 per diluted share, for the six months ended June 30, 2024, compared to $4,758,000, or $1.49 per basic and $1.48 per diluted share, for the six months ended June 30, 2023.

“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

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

Exhibit 99.2

Document And Entity Information	Jul. 26, 2024
Document Information [Line Items]
Entity, Registrant Name	PRIME MERIDIAN HOLDING COMPANY
Document, Type	8-K
Document, Period End Date	Jul. 26, 2024
Entity, Incorporation, State or Country Code	FL
Entity, File Number	333-191801
Entity, Tax Identification Number	27-2980805
Entity, Address, Address Line One	1471 Timberlane Road
Entity, Address, City or Town	Tallahassee
Entity, Address, State or Province	FL
Entity, Address, Postal Zip Code	32312
City Area Code	850
Local Phone Number	907-2300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0001586454