Prime Meridian Holding Co (PMHG, Financial) released its 8-K filing on October 25, 2024, announcing its unaudited financial results for the third quarter ending September 30, 2024. The company, a bank holding entity, provides a wide range of banking services, including mobile and online banking, various loan products, and investment services. The majority of its revenue is derived from interest income and fees on loans, as well as service charges from demand accounts and ATM fees.
Performance Overview
Prime Meridian Holding Co (PMHG, Financial) reported a significant increase in net earnings for the third quarter of 2024, reaching $2.6 million, or $0.79 per basic share, compared to $2.1 million, or $0.66 per basic share, in the same period last year. This represents a 22.8% increase year-over-year. For the nine months ending September 30, 2024, net earnings were $6.3 million, a decrease from $6.9 million in the same period of 2023.
The company's performance is noteworthy due to its operational efficiency improvements, as highlighted by Sammie D. Dixon, Jr., Vice Chairman, President, and CEO, who stated, "Very proud of the Bank's performance this quarter. We are running efficiently and are optimizing the performance of our systems as well as our team."
Financial Achievements and Metrics
Prime Meridian Holding Co (PMHG, Financial) achieved a return on average assets of 1.14% and a return on average equity of 12.20% for the third quarter of 2024. The efficiency ratio improved to 58.24%, indicating better cost management and operational efficiency. The company's net interest margin was 3.63%, slightly down from 3.68% in the third quarter of 2023.
| Metric | 3Q'24 | 3Q'23 | Change |
|---|---|---|---|
| Net Earnings | $2.6 million | $2.1 million | 22.8% |
| Return on Average Assets | 1.14% | 1.03% | 0.11% |
| Return on Average Equity | 12.20% | 11.31% | 0.89% |
| Efficiency Ratio | 58.24% | 61.45% | -3.21% |
Income and Expense Analysis
Net interest income for the third quarter was $7.9 million, a 10.5% increase from the same period last year, driven by loan growth and higher loan yields. Noninterest income rose by 6.4%, primarily due to increased revenue from debit card/ATM and mortgage banking activities. Noninterest expenses decreased by 4.2% from the previous quarter, reflecting reduced software maintenance costs and marketing expenses.
Balance Sheet and Liquidity
As of September 30, 2024, Prime Meridian Holding Co (PMHG, Financial) reported total assets of $931.6 million, with deposits totaling $824.0 million and net portfolio loans of $687.1 million. The company maintained a strong liquidity position with $181.6 million in on-balance sheet liquidity and $430.6 million in off-balance sheet funding sources.
Capital and Asset Quality
The company remains well-capitalized with a Tier 1 Leverage ratio of 10.21% and a Total Risk-Based Capital Ratio of 13.53%. Asset quality remains stable, with nonperforming assets at 0.26% of total assets, and the allowance for credit losses adequately covering potential risks.
As we look at the numbers, growth is happening in all areas of the Bank and our efficiency ratio is down right where we want it," said Dixon. "Simply put, we are doing more, with less."
Prime Meridian Holding Co (PMHG, Financial) continues to demonstrate resilience and adaptability in a challenging economic environment, leveraging operational efficiencies and strategic growth to enhance shareholder value.
Explore the complete 8-K earnings release (here) from Prime Meridian Holding Co for further details.
