Prime Meridian Holding Company (“PMHG”) was incorporated as a Florida
corporation on May 25, 2010 and is the one-bank holding company for and sole
shareholder of Prime Meridian Bank (the “Bank”). The Bank opened
for business on February 4, 2008 and was acquired by the Company on September
16, 2010. PMHG has no significant operations other than owning the stock of
the Bank.
Our business strategy focuses on traditional, relationship-based banking. The
Bank provides a range of consumer and commercial banking services to individuals
and businesses. In addition to electronic banking services such as mobile banking,
remote deposit, mobile deposit, Apple Pay, Bank-to-Bank transfers and online
banking, we offer basic services which include demand interest-bearing and noninterest-bearing
accounts, savings accounts, money-market deposit accounts, health savings accounts
(HSA), NOW accounts, time deposits, safe deposit services, wire transfers, foreign
exchange services, escrow accounts, debit cards, direct deposits, notary services,
night depository, official checks, domestic collections, bank drafts, automated
teller services, drive-in tellers, banking by mail, credit cards through a third
party, and merchant card services with a third party. In addition, the Bank
issues standby letters of credit and offers commercial real estate loans, residential
real estate loans, construction loans, commercial loans, and consumer loans.
The Bank provides debit and automated teller machine (“ATM”) cards
and is a member of the MoneyPASS and Pulse networks, thereby permitting clients
to utilize the convenience of a large ATM network system including more than
400,000 member machines nationwide.
Our organizational structure focuses on a strong risk management culture. We
stay abreast of our market by having our Board and management team highly involved
in our communities. We believe our team’s banking experience and high-quality
client service distinguishes us from other banks. We believe this foundation
will enable us to expand our products and services to new and existing clients,
resulting in steady, long-term growth. Our culture focuses on servicing our
clients and proactively exceeding their expectations, which in turn supports
client retention and loyalty, increased referrals, and enhanced profitability.
Our loan target market includes owner-occupied and nonowner-occupied commercial
real estate, small businesses, real estate developers, consumers, and professionals.
Small business clients are typically a commercial entity with sales of $25 million
or less; these clients have the opportunity to generate significant revenue
for banks.
Our revenues are primarily derived from interest income and fees on loans, interest
and dividends from investment securities, and service charge income generated
from demand accounts, ATM fees, and other services. The principal sources of
funds for the Bank’s lending activities are its deposits, loan repayments,
and proceeds from investment securities. The principal expenses of the Bank
are the interest paid on deposits, salaries, and general operating expenses.
We are committed to being a successful community bank and being a good business
partner within our community. We believe our active community involvement and
business development strategies, in conjunction with our client relationship
culture, have formed a successful foundation for developing new relationships
and enhancing existing ones.
The Bank offers a wide range of lending services to the community, providing
loans to small to medium sized companies and their owners and not-for-profit
organizations. Included in our array of commercial loan products are commercial
real estate loans, equipment loans, small business loans, business lines of
credit, and Small Business Administration (“SBA”) loans. Consumer
loans include residential first and second mortgage loans, home equity lines
of credit, and consumer installment loans for cars, trucks, boats, and other
recreational vehicles. Most of our retail lending connections are driven by
our commercial client relationships. The Bank maintains strong and disciplined
credit policies and procedures and makes loans on a nondiscriminatory basis
throughout its lending area.
Our lenders have the authority to extend credit under guidelines established
and approved by the Board of Directors. Any aggregate credit that exceeds the
authority of the loan officer is presented to Loan Committee for approval. The
voting members of the Bank’s Loan Committee consist of at least five directors,
with at least two of those five being nonemployee Board members. Alternates
or designates may be appointed by the Board of Directors when needed. Loan Committee
generally meets weekly to consider any loan requests which are in excess of
the lending limits of individual lending officers and require approval before
the disbursement of proceeds and to review all other loans for compliance with
our loan policy. Liquidity and stability in the Bank’s portfolio are given
the highest priority, and therefore, it is the responsibility of the Loan Committee
to review the portfolio mix of loans on at least a quarterly basis following
the Bank filing that quarter’s Call Report. Actions of the Loan Committee
are reported to the Board of Directors at its regular meetings.
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