Prime Meridian Holding Company
Prime Meridian — Q1 2024 Earnings Presentation
35 slides from Prime Meridian's earnings presentation, May 2, 2024
Slide 1: Investor Presentation Q1 2024
Investor Presentation Q1 2024 7 HOLDING COMPANY
Slide 2: Forward Looking Statements
FORWARD LOOKING ST! TEMENTS This Presentation, including infrmaton incorporated herein by reference, may cortain fernarélooking statements win the meaning of re Private Secures Ltgaton Reform Act of 1985, Words such as “may” “coud,” “shou,” wuld,” “beleve,” “aicpate” “esimate,” “expec,” rtrd “plan”
Slide 3: Glossary of Terms
GLOSSARY OF TERMS + Q1-21 ort 2021 ~ First Quart of 2021 + 0221 0rQ2.2021 - Second Quarter of 2021 + 08-21 or 03 2021 ~Thind Quarter of 2021 + 4-21 or 6 2021 —Fourh Quarter of 2021 + 01-2201 1 2022 First Quarer of 2022 + 02220702 2022 Second Quarter of 2022 + 08-2207 03 2022 Third Quan of 2022 + 04-
Slide 4: Company Profile
COMPANY PROFILE Ticker PMHG (OTCOX) Market Capitalization $71.2 million fas of 33172024) ee Price / TBV) 87.5% (as of 3831/2024) Assets $862.7 Mion Loans, net $666.8 Million Deposits $751.7 Million Shareholders’ Equity $81.4 Million NPAS®/ Assets 0.40% Leverage Ratio (Company) 10.44% Leverage Ratio
Slide 5: Investment Considerations
INVESTMENT CONSIDERATIONS Y History of profitable operations, driven by strong organic loan growth and core deposit base Financial Y — Continued emphasis on expense management and historically stable operating efficienoy ratio Y _ Netinterest Margin is consistentwith peer group — Corporate-banking s
Slide 6: Profile | Management Team
PROFILE | MANAGEMENT TEAM Y Experienced managementteam with proven track record of franchise growth and development Y Community leaders who know their clients ¥ kistory of proftable bank operations Sammie D. Dixon, Jr. Vice Chairman, President and Chief Executive Officer COMPANY PERS a Age: 54 | 25
Slide 7: Corporate Culture
CORPORATE CULTURE WES) (ON) Building bankers to serve our clients and community in order to optimize shareholder value. PURPOSE Banking done right, right away. CORE A/ZNAO) SE - § Passion— level of intense excellence and commitment beyond simply meeting requirements + Grace—high level of service wit
Slide 8: Corporate Culture
CORPORATE CULTURE ifferent Banking Model v Prime Meridian Bank promotes and maintains a culture of openness and 6h6 transparency to encourage exposure of team members to all aspects of banking. SEMI NOLE v Team members, executive officers and ‘ a, 0,202,208 board membersinteract to resolve = BO a a
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS, Return on Average Assets Diluted Earnings Per Share $0.59 9.61% Diluted EPS ROAE oe : : GAAP Qt-24 GAAP Q1-24 = aa eye Et $0.83 13.66% a i) ie ie oe oe ed Diluted EPS ROAE Tl H cnal PTPP Qt-24 PTPP Qt-24 : I oe | i | aoe: a 17.58% mo mem mm mem } Net Loans CAGR OUP «QpeatngPTPP
Slide 10: Net Interest Drivers
NET INTEREST DRIVERS (dollars in millions and represents average period-ending balance) Average Securities Yield Average Loan Yield : Il Net Loans Average Cost of Interest-Bearing Liabilities Average Cost of Funds “ 1 | lj (oom PRIME (7, MERIDIAN INVESTORS. PRIMEMERIDIANBANK. pwns 10 HOLDING COMPANY
Slide 11: Building Franchise Value
BUILDING FRANCHISE VALUE Total Assets (in miions) Net Loans (in mibons) excn-37% eee! te HB NetLoans Net Loans (Aejeses? seen Paes Total Deposits (in miions) ‘Average Cost of Total Depo: aon 140% TULL ‘Aitnancil aos of Dcerber 3 oie respective ye, Sou: SEP Gbl andrea company docuTerts INVESTORS.PRIM
Slide 12: Building Shareholder Value
BUILDING SHAREHOLDER VALUE cacr-93% Book Value Per Share Earnings Per Share (Basic) cacr- 88% (fp PRIME (9 MERIDIAN eee ee er ais, 49, HOLDING COMPANY
Slide 13: Strong Record of Pre-Tax Pre-Provision (PTPP) Performance (Non-GAAP)
STRONG RECORD OF PRE-TAX PRE-PROVISION (PTPP) PERFORMANCE (Non-GAAP) PTPP Operating Earnings (Non-GAA PTPP Return On Average Equity (Non-GAAP) % (fp PRIME (9 MERIDIAN eee ee er aie, 43 HOLDING COMPANY
Slide 14: Balance Sheet - Bond Portfolio Statistics
Agencyreasry 31.35% 22.63% Asset Backed, MBS 43.83% AgencyTreasury *MBS * Asset Backed Municipals (oom PRIME ( MERIDIAN HOLDING COMPANY Portfolio: March 31,2024 Total Investments: $129.3 million Net Unrealized Gain (Loss) AFS: ($8.4 million) BALANCE SHEET— BOND PORTFOLIO STATISTICS Investment Securi
Slide 15: Fixed vs Variable Rate Loans and Interest Rate Sensitivity
A Fixed Rate Loans $192.1 million * Weighted Average Maturity 56 years A Variable Rate Loans $463.2 million * $186.8 milion ST Variable Rate (0-12 Month reset) * $297.5 milion LT Variable Rate (>12 Month reset) Fixed vs Variable Rate Loans %Change in Projected Baseline Net Interest Income one: Immed
Slide 16: Disciplined Credit Processes
DISCIPLINED CREDIT PROCESSES (in thousands) Granular Portfolio— Lending Exposure Limits Concentration limits set for primary ¥ Secured Legal Limit - Bank $ 22,186 segments of the portfolio. ¥ Secured In-House Limit $ 8,000 V Top 25 Relationships $167,747 Intemal company data as of 3012008 + Decentra
Slide 17: CRE Commitments & Exposure
CRE COMMITMENTS & EXPOSURE (dollars in thousands) v Aspart of its overall risk management program, Prime Meridian Bank pursues a program of controlled growth in its Commercial Real Estate (CRE) portfolio and maintains its CRE exposure within regulatory guidelines Total RiskBased Capital-Bank $ 94,54
Slide 18: Loan Portfolio
LOAN PORTFOLIO Total Loans (in millions) $489 «$486 «= $611 Ss $673 Loans (in thousands) ” eS Loan Portfolio Real EstateMortgage Loans a am composite Commerial Real Este (CRE) § 228638 Comparison Residential Real Bate and HELOC 2546 Gonetuctna: re * Commercial Real Estate (ORE) Tad RedwleMoigege = _
Slide 19: Residential Loan Portfolio
‘TIAL LOAN PORTFOLIO Total Residential Loans in millions) $161 $189 $228 $265 Po a Residential Residential Loans (in thousands) Loan Portfolio Residential Real Estate and HELOC - Composite ‘14Owner-Occupied’ HELOC $ Comparison 1-4 Non Owner Occupied = Muto 14 Omer Occipied BHELOC Total = #14 Non Ome
Slide 20: CRE Owner and Non-Owner Occupied by Type
and 17.7% of the total loan portfolio. + CRE represents the Bank’s second largest loan category with Owner Occupied and Non-Owner Occupied making up 16.0% + Office accounts for 24.4% ($26.3 milion) and 13.3% ($15.8 million) of Owner Occupied and Non-Owner Occupied respectively. Owner Occupied CRE by
Slide 21: Core Funding
‘ORE FUNDING Total Deposits (in millions) $651 $788 $717 $752 = Core Funding ¥ Company's depositfranchise is comprised Composite of 27% noninterest-bearing deposits ~ Comparison ; ™ sNerinerest Bereg Deposits (in thousands) Morey Market on NOW Noninterest Bearing $ 201083 onde MoneyMarket Accounts,
Slide 22: Core Funding - Deposit Highlights Q1 2024
CORE FUNDING Deposit Highlights Q1 2024 Average balance per account of $47,746 Non-core funding represents $61.0 million, or 10.7% of total interest-bearing liabilities. Q1-24 average cost of funds of 2.06%. Diversified core deposit base and balanced distribution between commercial and retail client
Slide 23: Non-Maturity Deposits
Non-Matouriry Deposits + Average newnon-maturity deposit volume of $21.3 million, and 312 new accounts for 1st quarter 2024. * Focus on noninterest-bearing and NOW accounts. + 9.2% year-over-year growth in the number of non-maturity deposit accounts. Net New Non-Maturity Deposit Accounts Net New Non
Slide 24: Total Liquidity
[ Cash and Cash | [ Unpledged Debt | [ Available Credit | [ Maximum Available | Equivalents Securities (FairValue) Lines Brokered + Wholesale $23.5 million + $111.4 million $170.9 milion + $215.7 million $134.9 million + $386.6 million TAL LIQUIDITY $521.5 million 69.4% of Total Deposits Dara as of
Slide 25: Asset Quality
Asset Quality 1.00 0.90 NPAs‘) / Total Assets (%) 0.80 0.70 0.60 0.52 0.50 0.40 0.40 0.40 0.30 0.20 on 0.09 °° ia 0.00 400 | 2019 2020 2021 2022 2023, 1-24 (NPA=Nonperorming Assets ‘Source: SAP Gibal and inemal company documents, Alfeancil data as of December 31 of he respecive year unless cherwise
Slide 26: Deposit Market Share
Deposit MARKET SHARE 2023 Total Deposit otal Deposit YoY Deposit Institution Market Share (%) _ Growth 2023 (%) Leon, FL, Wels Fargo Bank NA SO Bank 1 1 1834 2248 (24.98) sor Capital City Bank FL Bank 2 2 17.08 1508 334 948 ‘Bank of America NA NC Bank 3 2 1565 1501 (4.02) 11.82 Truist Bank NC Bank 4
Slide 27: Appendix | Tables
Appendix | TABLES
Slide 28: Financial Highlights (unaudited)
Finandal Highlights (unaudited (dollars in thousands except per share amounts) 1974 4923 39723, 2923 1923 Per Share Date: Earings per common share - Base s os $s ows 066 $ on $ on [Eamings per common share - Dil s 0% § oss § oss § on § on ‘Book value per common share 4 un $s Ermey moa $ 22s $ 2a Com
Slide 29: Condensed Consolidated Statements of Earnings
Condensed Consolidated Statements of Earnings {in thousands exceptper share amounts) ‘Credit tous expense "Net imerest ncome aftercredt loss expense Noninterest income ‘Service charges and fees on deposit accounts Debit canl/ATM revenue, net Mongagetankingrevenvc, net Income fom tank-owned life insu
Slide 30: Condensed Consolidated Statements of Earnings (unaudited)
Condensed Consolidated Statements of Earnings (unaudited) {in thousands exceptper share amounts) 1024 son so 202) __102 Ince icon: pal oma So $m SR Ske 4 ‘at 3 as oa Ba a be iat By Teal neret income Tiss Tt Tait oa ai Po Deposit son ast wot toi sa HED nvancs and ote borowings se ea ‘ot ‘os im Tol ne
Slide 31: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (in thousands) 1924 4023 30°23 20°23 1923, Toawdited)—(Caaudited) —(Canvdited) (Unaudited) — (Unaudited) Assets Cash & cash equivalents s 24am § s nao $ 29 $a edt securities available forsale i743 123838 12692 129748 Debt securities held to maturity 11861 11838
Slide 32: Results of Operations (unaudited)
Results of Operations (unaudited) (dollarsin thousands) Teste Loans held for sale Debs securities Over? Total inerestearning assets [Noninterestearning assets ‘Total assets Inerestbearing hablities: ‘Savings, NOW and money-market deposits Tame deposits “Total imeres-bearing deposits PHLB advances an
Slide 33: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES Non-GAAP Measures and Ratio Reconciliation (Unaudited) (dollars in thousands except per share amowats) son 20 om atone Netting (GAAP) s sums ee Foc godt ee erps = zs 38 Phas ome anes ba EH mm i pe eamings(20-GAAP) z = Cs oS oe Earnings per Share (EPS) AWaghedev
Slide 34: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES Non-GAAP Measures and Ratio Reconciliation (Unaudited) (dollars in thousands except per share amowats) For the Year Ended December 31. 2023 2022-2021 20a 709 Net income Netcarings (GAAP) s ames asst $ a3 S 4458 330 Plus credit loss expense 1480 $9 (04) 2880 MBL
Slide 35: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES Non-GAAP Measures and Ratio Reconciliation (Unaudited) (dollars in thousands except per share amowats) For the Year Ended December 31, Ta m2 2021 7H 71 Adiused Average Loan Vie: Netloans, excluding loans held for sale S GAT S$ SERTIS $0 STK] SITIO Less PPP loan
Prime Meridian Holding — Q1 2024 Earnings Presentation on 6ix