Exhibit 99.1

FOR IMMEDIATE RELEASE

Prime Meridian Holding Company Reports

FIRST quarter 2021 Results

COVID-19 Update

The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, lowered equity market valuations, created significant volatility and disruption in financial markets and significantly increased unemployment levels.  The extent to which the COVID-19 pandemic impacts our business, results of operations, and financial condition, as well as our regulatory capital and liquidity ratios, will depend on future developments, the duration of the pandemic, the effectiveness and adoption of available vaccines, and the actions taken by governmental authorities to slow the spread of the disease and mitigate its economic impact.  At this time, we continue to monitor and adhere to national guidelines and local safety ordinances to ensure the safety of our clients and employees.  

Management believes credit quality deterioration directly related to the pandemic could still materialize in the future. Since March of 2020, the Company has reported a peak of 70 requests for payment deferrals or modifications on loans totaling $42.4 million. Approximately 91% of the requests have been for loans secured with real estate.  That number declined to eight loan modification requests totaling $11.2 million as of March 31, 2021. The table below gives more detail on loan modification activity at March 31, 2021.

Active Loan Deferral Requests

March 31, 2021

(dollars in thousands)

Earnings Summary (Unaudited)

(dollars in thousands)

On a linked quarter basis and compared to the same period a year ago, the increase in net earnings was driven by PPP origination fees and the absence of a provision for loan losses.  Lower funding costs on deposits and higher noninterest income also contributed to higher net earnings in the first quarter of 2021.  

Interest income (Unaudited)

(dollars in thousands)

On a linked quarter basis, the increase in total interest income is mostly attributed to PPP origination fees and a higher volume of real estate loans, partially offset by two fewer accrual days in the first quarter and lower adjusted loan yields (this is considered a non-GAAP financial measure - please refer to Non-GAAP Measures and Ratio Reconciliation in the table on page 12). Compared to the first quarter of 2020, the increase in total interest income is mostly attributed to a higher volume of loans and origination fees on first and second round PPP loans. Average loan balances increased $132.0 million, or 37.5%, from the first quarter of 2020, with more than half of the loan growth coming from PPP loan originations.  Excluding PPP loans, the average loan balance increased approximately $61.2 million, or 17.4%, from the same period last year, boosted primarily by commercial, construction, and residential real estate loan originations.  Decreases in interest income from securities and other interest-earning assets since the first quarter of 2020 are primarily a function of lower rates.

Interest expense (Unaudited)

(dollars in thousands)

Despite higher balances of interest-bearing liabilities, total interest expense declined $91,000 from the fourth quarter of 2020 and $365,000 from the first quarter of 2020 due to lower funding costs. The average rate paid on deposits declined 11 basis points from the fourth quarter of 2020 and 54 basis points when compared to the first quarter of 2020.

Margin Analysis (Unaudited)

(dollars in thousands)

The Company's net interest margin remained level in the first quarter of 2021 as unfavorable asset pricing was offset by the increased volume of interest-earnings assets and PPP origination fees and a continued reduction in the cost of deposits.  

Provision for Loan Losses

The Company did not record any provision for loan losses during the first quarter of 2021 due to the $7.0 million reduction in total portfolio loan balances (excluding PPP loans) during the first quarter of this year. Driving the $7.0 million reduction was a large volume ($31.4 million) of non-PPP loan payoffs, partially offset by the funding of $25.0 million in new non-PPP loans during the first quarter. 

Noninterest income (Unaudited)

(dollars in thousands)

On a linked quarter basis and compared to the first quarter of 2020, the increase in noninterest income was driven by the $108,000 gain on sale of debt securities and mortgage banking revenue which has more than doubled since the first quarter of 2020.  The gain on sale of debt securities related to a $6 million portfolio bond transaction which was executed in the first quarter while the mortgage team continues to report strong production by units, volume, and gain on sales revenue.  Growth in debit card/ATM revenue also continues to contribute positively to the bottom line. 

Noninterest expense (Unaudited)

(dollars in thousands)

On a linked quarter basis, a $273,000 decrease in salaries and benefits, partially offset by increases in other categories, was the principal driver of the $157,000 decrease in total noninterest expense.  The 12.8% decrease in salaries and employee benefits from the fourth quarter of last year is attributed to a special incentive bonus paid to employees in the fourth quarter who assisted in the originating and funding of PPP loans.  Increased accounting fees (up $32,000 over the fourth quarter due to accrual reversals in the fourth quarter), FDIC assessment fees (up $26,000 over fourth quarter due to a higher assessment rate and larger deposit balances), increased software, maintenance, amortization, and other (up $24,000 over the fourth quarter) and board expenses (up $31,000 over the fourth quarter due to an increase in director meeting fees) were the primary offsets to the decrease in salaries expense. 

Compared to the first quarter of 2020, a $234,000 increase in salaries and employee benefits expense was the primary driver of the $359,000 increase in noninterest expense. This combined with modest increases in other categories was only partially offset by a $61,000 decrease in marketing expense which is attributed to the continued limitations on gatherings imposed by COVID-19 restrictions. 

Balance Sheet

At March 31, 2021, the Company reported $720.9 million in total assets, $651.4 million in deposits, and $480.8 million in net portfolio loans. This compares to $647.3 million in total assets, $580.6 million in deposits, and $476.7 million in net portfolio loans at December 31, 2020.   Excluding the $78.6 million quarter-end balance of PPP loans, the Company's total loan portfolio decreased $7.0 million due to a high level ($31.4 million) of non-PPP loan payoffs in the first quarter.  The composition of the Bank’s loan portfolio was as follows on the indicated dates:

Prime Meridian Holding Company and Subsidiary

Loans by Class

(dollars in thousands)

The $70.8 million increase in deposits since December 31, 2020 is attributed almost equally to growth of existing client relationships and PPP-induced liquidity.  The Company's round one and round two PPP-sourced deposits were estimated to be $35.2 million at March 31, 2021. While management anticipates some shrinkage in deposits as PPP funds are spent, management expects the majority of the increase in total deposits will remain long term.

Total stockholders’ equity was $61.1 million, or 8.5% of total assets, at March 31, 2021 compared to $60.3 million at December 31, 2020, or 9.3% of total assets.  Net growth in retained earnings and increased additional paid-in-capital were partially offset by a $1.0 million decrease in accumulated other comprehensive income. Book value per share increased from $19.32 at December 31, 2020 to $19.56 at March 31, 2021, with 3,124,794 common shares outstanding.

As of March 31, 2021, the Bank was considered to be “well capitalized” with a Tier 1 Leverage Capital Ratio of 9.07%, a 13.72% Common Equity Tier 1 Capital Ratio, a 13.72% Tier 1 Risk-Based Capital Ratio, and a 14.98% 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. As of March 31, 2021, the Company had a $750,000 balance on the line of credit.

Asset Quality

Loans totaling $797,000 were deemed to be impaired under the Bank’s policy at March 31, 2021, with reserves on impaired loans totaling $229,000.  At March 31, 2021, the Bank had four nonaccrual loans in the aggregate amount of $797,000, compared to five nonaccrual loans totaling $1.3 million at December 31, 2020.  At March 31, 2021, the Company reported no loans greater than 90 days past due and accruing, no other real estate owned, and $5,000 in net recoveries. Nonperforming assets as a percentage of total assets stood at 0.11% at the March 31, 2021. Management believes that the allowance for loan losses which was $6.1 million, or 1.49% of gross loans (excluding PPP loans), at March 31, 2021 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 March 31, 2021, the Bank had 88 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, U.S. generally accepted accounting principles (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)

⁽¹⁾ Annual cash dividends were paid during the first quarters of 2020 and 2021.