Prime Meridian Holding Company has announced a public offering of its common stock, signaling a true milestone in the history of this locally-owned business.
Prime Meridian Bank, a subsidiary of the holding company, has two locations in Tallahassee. The original operation opened at 1471 Timberlane Road and the bank has recently opened a second location at 1897 Capital Circle Northeast.
The Company is offering up to 1,200,000 shares of common stock at a price of $12.50 per share. Investors may purchase from 500 shares up to a maximum of 80,000 shares. According to the Company’s Prospectus, there is no minimum number of shares that must be sold in this Offering and the proceeds will immediately be available to the Company.
The Offering commenced on December 11, 2013, and continues on an ongoing basis until February 28, 2014, unless terminated earlier or extended by the Company’s Board of Directors to a date no later than June 30, 2014.
The terms of the Offering, as well as information about the Company’s financial results and condition, are contained within the Prospectus that was filed with the Securities and Exchange Commission (SEC) as part of its Registration Statement. Prime Meridian Bank (a subsidiary of the Company), has been successful in navigating its way through the recent unprecedented and prolonged recession and continues to flourish.
“The Bank has generated steady growth through consistent positive earnings; the commitment and quality of our team and directors have contributed to our accomplishments,” said President and CEO Sammie D. Dixon, Jr. “We truly have established a new attitude in banking and built a culture for promoting achievement within our Bank – a culture that is the bedrock of our future progress and expansions.”
The investor presentation document outlines the use of proceeds from the stock offering. In the event the Bank raises $5.0 million or less, the net proceeds of the offering will be used for general corporate purposes, which may include maintaining liquidity for the Company and continuing to support the growth of the Bank while maintaining strong capital levels.
Should the Bank raise between $5.0 million and $10.0 million, the net proceeds of the offering will be used for general corporate purposes, while also considering branch acquisition opportunities in North Florida, South Georgia, or South Alabama.
In the event the Bank raises more than $10.0 million, the net proceeds of the offering will be used for all of the aforementioned purposes above, while also considering the acquisition of another financial institution within the next 18 months.
As of June 30, 2013, Prime Meridian Bank ranked 10th in the Tallahassee MSA, with 3.2% market share and $162 million in total deposits.