Prime Meridian Holding Company
Prime Meridian — Q2 2024 Earnings Presentation
35 slides from Prime Meridian's earnings presentation, Jul 26, 2024
Slide 1: Investor Presentation Q2 2024
Investor Presentation Q2 2024 7 HOLDING COMPANY
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This Presentaton, inducing ifarmaton incorporated parin by relerence, may conan constued lo mean ta actu evens are occuring a estimated in such fwardoking ‘Salonen ay ode est ad tet fr or stapes hat uncertain Factors that coud have @ mated adverse eft en cur ‘partis oa tia
Slide 3: Glossary of Terms
ARY OF TERMS + Qt-21 ot 2021 - Fst Quarter of 2021 + CECL~Curent Expected Cre Losses + @221 o a22021 ~ Second Quarter of 2021, + COF Cost offunds + 0821. a32021 Third Quarter of 2021 + COVID-19~ Pandemic-eleted vrus + 421 o 042021 ~ Fourth Quarter of 2021 + CRE ~Conmercial realestate + QF-2201 a1 20
Slide 4: Company Profile
COMPANY PROFILE view Teker Pus (OTCOK) ase Captain $731 mons of 302028) ice! Tav" 8796 oso 1302024) Asses $8956 lion Lous, nt $584 8 lon Deposits 790.4 lon ‘harsh Eqaly ‘35 lion ni ascrAcets 030% Leverage Rato(Campany) —10419% Leverage Rato Bark) 102% ‘Shares Outstanding 3253653 Inston Owners Less t
Slide 5: Investment Considerations
INVESTMENT CONSIDERATIONS _ History of profitable operations, driven by strong organic loan growth and core deposit base ¥Continuedemphasis on expense management andhistoricaly stable operating ficiency ratio Nel Interest Marginis consistent with peer group Corporate banking style underwriting piles
Slide 6: Profile | Management Team
PROFILE | MANAGEMENT TEAM. Experienced management team with proven track record of franchise growth and development ¥ Community leaders who know their clients History of profitable bank operations Sammie D. Dixon, Jr. =o Average Age Chris L. Jensen, Jt. E Team‘) 41.6 Roloeeeee + Executive Officers 5
Slide 7: Corporate Culture
CORPORATE CULTURE Wits (OE) Building bankers to serve our clients and community in order to optimize shareholder value. Banking done right, right away. PURPOSE Passion — level of intense excellence and commitment beyond simply meeting requirements Grace ~ high level of service with courtesy and comp
Slide 8: Corporate Culture
CORPORATE CULTURE ifferent Banking Model Y Prime Meridian Bank promotes and maintains a culture of openness and transparency to encourage exposure of team members to all aspects of banking. ¥ Team members, executive officers and board members interact to resolve ‘2018, 2019200, 2021, 2022 2008, 2024
Slide 9: Financial Highlights
$0.54 Diluted EPS GAAP 02-24 $0.84 Diluted EPS PTPP Q2-24 0.81% ROAA GAAP 02-24 1.27% ROAA PTPP 2-24 2.15% Costs of Deposits 02-24 26% DDAMTotal Deposits 02-24 FINANCIAL HIGHLIGHTS Ga Diluted Eamings Per Share ROAE GAAP 02-24 13.59% ROAE PTPP.Q2-24 17.58% Net Loans CAGR 2019-2023 SOUP sorting TPP Bo
Slide 10: Net Interest Drivers
NET INTEREST DRIVERS, (dollars in millions and represents average period-ending . im 8 TL ral _ ‘Average Cost of Interest-Bearing Liabilities Average Cost of Funds ee eet I Noninterest- . ia Bearing Deposits e ia I Interest-Bearing = A Liabilities PRIME V7 (7) MERIDIAN INVESTORS PRIMEMERIDIANBANK.CO
Slide 11: Building Franchise Value
BUILDING FRANCHISE VALUE Total Deposits in ilons) ‘Average Cost of Total Depo: ) ‘Alferd a Daan 3 eeepc year Source SAP Gb andi cpa ocuers Net Loans Net Loans (Pasig (Ao HOLDING COMPANY INVESTORS PRIMEMERIDIANBANK.COM. |orcox:emic 11
Slide 12: Building Shareholder Value
BUILDING SHAREHOLDER VALUE cacr-93% cos $0 Nukes Pine Mian 0512.8 ie 208 jt vr 52.0 monn Dob, 210 uo vcs: lin fo stk ling eee Dsenbe 3,204 1B Omani ox dock afng ¢oncunda15, 2017, anu 510 mllon raha Pte Paenert Ofoing cnclae Seponba25, 2019, Dueg ihe tel quatre 212, Company oprtasd627e shoes fe $12 M
Slide 13: Strong Record of Pre-Tax Pre-Provision (PTPP) Performance (Non-GAAP)
STRONG RECORD OF PRE-TAX PRE-PROVISION (PTPP) PERFORMANCE (Non-GAAP) TPP Operating Earnings (Non-GAAP n thousand PTPP Earnings Per Share, Fully Diluted (No ail i alll. PTPP Return on Average Assets (Non % PTPP Return On Average Equity (N TU LLL FARO cand Ann it ME mG crm PY ee men ti hr men PRIME 7)
Slide 14: Balance Sheet — Bond Portfolio Statistics
BALANCE SHEET — BOND PORTFOLIO STATISTICS Investment Securities Segmentation Portfolio: June 30, 2024 Leipseng acon, Total Investments: $113.1 million 205% Net Unrealized Gain (Loss) AFS: ($8.0 million) EFFECTIVE AVG AVG QUARTER DURATION YIELD —_LIFE 2024 3.85 2.78% 5.24 1024 3.45 2.68% 4.68 4023 3.
Slide 15: Interest Rate Sensitivity
I REST RATE SENSITI A. Fixed Rate Loans $200.8 milion * Weighted Average Maturity 5.3 years A Variable Rate Loans $4895 million * $189.0 milion ST Variable Rate (0-12 Month reset) * $300.5 milion LT Variable Rate (>12 Month reset) Fixed vs Variable Rate Loans % Change in Projected Baseline Net Inter
Slide 16: Disciplined Credit Processes
DISCIPLINED CREDIT PROCESSES (in thousands Granular Portfolio - Lending Exposure Limits Concentration limits set for primary ¥ Secured Legal Limit - Bank $ 22,687 segments of the portfolio. Y Secured In-House Limit $ 8,000 ‘Srlamae nei Y Top 25 Relationships $174,159 * Decentralized underwiting fr s
Slide 17: CRE Commitments & Exposure
CRE COMMITMENTS & EXPOSURE lars in thousands) v As part 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 Risk Based Capital -Bank $ 96031
Slide 18: Loan Portfolio
LOAN PORTFOLIO Total Loans (in milions) $538 $619 $690 Loans (in thousands) = Loan Portfolio Rea Estate Mortgage Loane me Compost ‘Commercial Real Estato(CRE)$ mam Comparison Resderl Ral Ex andHELOC ms censietin 20.86 + conmac Re Ext(ORE Se a 1 + Rest Red Ele and HELO Commetlal 0826 conser en ter 39
Slide 19: Residential Loan Portfolio
RESIDENTIAL LOAN PORTFOLIO Total Residential Loans (in milions) $170 $209» $234 $291 a on Residential Residential Loans (in thousands) Loan Portfolio Residential Real Estate and HELOC - Composite {4OnmerOecuiedBHELOC $ — 188:08, Comparison 1-4Non Owner Occupied e0@01 =, pene. —_1al 1-4 Owner Occupie
Slide 20: CRE Loan Portfolio
CRE LOAN PORTFOLIO ‘CRE represents the Bank's second largest loan category with Owner Occupied and Non-Owner Occupied making up 15.8% and 15.0% ofthe total loan portfolio. Office accounts for 31.0% ($33.8 milion) and 15,0% ($15.6 milion) of Owner Occupied and Non-Owner Occupied respectively. Owner O
Slide 21: Core Funding
CORE FUNDING Total Deposits (in mitions, $683 © $785 = $703 $790 Core Funding Y Company's deposit franchise is comprised Composite of 26% noninterest-bearing deposits ” Comparison ™ + None Bang Deposits (in thousands) Money Market Noninterest Bearing s 206158 oe MoneyMarket Accounts 301570 os Tine D
Slide 22: Core Funding
CORE FUNDING Deposit Highlights Q2 2024 Diversified core deposit base and balanced distribution between commercial and retail clients. Average balance per account of $49,681 Non-core funding represents $62.3 million, or 10.7% of total interest-bearing liabilities. Q2-24 average cost of funds of 2.22
Slide 23: Non-Maturity Deposits
NONn-Maturiry Deposits ‘Average net new non-maturty deposit volume of $31.8 milli, and 285 net new accounts for 2nd quarter 2024. Focus on noninterest-bearing and NOW accounts. 5.8% year-over-year growth in the number of non-maturity deposit accounts, Net New Non-Maturity Deposit Accounts Net New No
Slide 24: Liquidity and Flexibility
LIQUIDITY AND FLEXIBILITY Cash and Cash Unpledged Debt Available Credit Maximum Available Equivalents Securities (Fair Value) Lines Brokered + Wholesale $50.9 milion + — $93.9 million $177.9 milion + $223.3 milion On-Balance Sheet Liquidity Off-Balance Sheet Liquidity $144.8 million + $401.2 million
Slide 25: NPAs / Total Assets
1.00 090 NPAs( | Total Assets (%) 082 040 030 020 wy) 010 ro “ 0.00 0.00 2019 2020 2001 © NPA = Nenpereing Assets ‘Source: S&P Gb andiniare company documents. Al nancial data sof Docorber 31 othe respective yar ules chaise reed 7) PRIME TAN INVESTORS.PRIMEMERIDIANBANK.COM | OTCOX: PMHG 25, HOLDING C
Slide 26: Deposit Market Share
DePosiT MARKET SHARE Yor Deposit Growth 2023 (8) ‘Leon, FL Wess Fargo Bank NA SD Bank 1 1 tas ease) sot Cepia Cy Bank FL Bank 2 2 1708 394 94s Bank of America NA NC Bank 3 3 1565 02) 1182 “True Bank NC Bank ‘ 2 1180 5.43) (182) ‘Prime Meridian Bank FL Bank 5 5 695 os7) 13.85 Hancock Whaey Bank MS Ba
Slide 27: Appendix | Tables
Appendix | TABLES
Slide 28: Financial Highlights (unaudited)
Financial Highlights (unaudited) (doliars in thousands except per share emounis) sou 23 —— Enon gee soe re 32 Eero a : 8 3 ices! eae 2 ote ase Sear ee ape ae Bs MES CS, os ed cette ne Da ist es Le Encinas : Be ale 2 Sane 8 5 = # ore S cs secon sane ws SSS meat acne : 2 Scenes See ae oo a esas as 2 E
Slide 29: Condensed Consolidated Statements of Earnings
Condensed Consolidated Statements of Earnings (inthousands except per share amounts) "S BERS aee lal ele 3 gaye geet PRIME INVESTORS.PRIMEMERIDIANBANK.COM | OTCOX:PMHG 29 (] MERIDIAN HOLDING COMPANY >)
Slide 30: Condensed Consolidated Statements of Earnings (unaudited)
Condensed Consolidated Statements of Earnings (unaudited) (inthousands except per share amounts) 1934 4Q33 3933 2923 lo PRIME, EAN Bar INVESTORS PRIMEMERIDIANBANK.COM | OTCQX: PMHG 30
Slide 31: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets {in thousands) Assets Coa cat ue Ss 085 $ ‘Debt zens avalabe forsale Pd Debt ecunties held to many B67 ‘Loans, held fo sale 5305, Loans, Cr Federal Home Loan Bak stock 1073 Premises & equpment et 7266 Right of use leave aset am terest reesable 339 Bank-owned ie
Slide 32: Results of Operations (unaudited)
Results of Operations (unaudited) (Gots in thousands) IERIDIAN HOLDING COMPANY
Slide 33: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP D) Non-GAAP Measures and Ratio Reconciliation (Unaudited) (dollars in thats excep pr share acu) Neteamng: GAAP) hus: credit loss expense Pha: income taxes PIP net eamings (non-GAAP) z rm 2S 3 5 TS 5 35 ‘Eamings per Share BS) ‘Weighted average common cares, luted 3310608 32
Slide 34: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES Non-GAAP Measures and Ratio Recon iation (Unaudited) (dollars in thats excep pr share acu) ‘Netlncome ‘Neteamings (GAAP) Pras: credit os expense Ph income tee PIPPOD net earings (non-GAAP) (Pretax re-powisin Foro Yor tated 3k cay 2022 000 eu s me $ gee § ans 49
Slide 35: Reconciliation of Non-GAAP Disclosures
IATION OF NON-GAAP DISCLOSURES Non-GAAP Measures and Ratio Reconciliation (Unaudited) (dollars in thats excep pr share acu) cD) Fo Swi $s seaTIS $e Sg $I 5) aa asim 67) i amines cutntighesbilfrelemiPP Ge —¢ gga $M SONS Sa STO feege lon ecg ns hd fo le S 6309 $ 37304 $s $M $380 Less average PPP 008)
Prime Meridian Holding — Q2 2024 Earnings Presentation on 6ix