Primis Financial Corp. Issues Revised Results for the Third Quarter of 2023
- Material improvement in operating results, including an 81 basis points operating return on average assets and a 3.02% margin.
- 21% reduction in nonperforming assets, excluding SBA guarantees, linked-quarter to $19.6 million.
- Generated a margin of 3.02%, up from 2.65% linked quarter due to sweeping off excess funds and tightly managing the balance sheet to maximize incremental spreads.
- Grew all capital ratios including TCE/TA. Leverage ratio increased to 8.80%.
- Opened 2,404 new deposit account relationships totaling $72.7 million with a weighted average cost of only 1.80%.
- The company reported a net loss of $3.6 million for the quarter ended September 30, 2023, compared to net income of $5.0 million for the quarter ended September 30, 2022.
- Diluted earnings per share for the three months ended September 30, 2023 was a loss of $0.14 versus earnings of $0.20 per diluted share reported in the third quarter of 2022.
- For the year-to-date period in 2023, the Company reported earnings and diluted earnings per share of $2.2 million and $0.09, respectively, compared to $14.5 million and $0.59, respectively, in the same period in 2022.
Revised results reflect a non-cash after-tax goodwill impairment charge of
Because of the significant difference between the preliminary fair value as modeled and the Company's market capitalization at September 30, 2023, the Company has continued to analyze the goodwill valuation results, including stressing certain assumptions and inputs to the modeling, subsequent to its previously announced financial results for the third quarter of 2023. After further analysis of lower fair values produced under more conservative assumptions and inputs, including lower assumed cash flows and a higher discount rate, have caused the Company to conclude that an
The Company is amending its previously announced third quarter financial results as provided below, which replaces the earnings release of October 26, 2023 in its entirety.
Third Quarter Results
The Company reported a net loss of
Excluding nonrecurring items, including the goodwill impairment charge in the third quarter of 2023, adjusted net income was
The results of the third quarter of 2023 reflected material improvement in operating results across several fronts. Notably, the Company:
- Operating return on average assets(1) was 81 basis points, up from 9 basis points in the second quarter and 64 basis points a year ago.
- Generated a margin of
3.02% , up from2.65% linked quarter due to sweeping off excess funds and tightly managing the balance sheet to maximize incremental spreads. - Sold approximately
$15 million $400 thousand $10 million - Reduced noninterest expense, excluding goodwill impairment, to
$25.9 million $30.6 million $20.9 million $24.0 million - Maintained peer-group leading liquidity with no FHLB borrowings, only
$75 million $228.7 million 21% reduction in nonperforming assets, excluding SBA guarantees, linked-quarter to$19.6 million - Nonperforming assets to total assets of
0.17% - Loan loss reserve as a percentage of nonperforming assets of
550% .
- Nonperforming assets to total assets of
- Grew all capital ratios including TCE/TA. Leverage ratio increased to
8.80% . - Opened 2,404 new deposit account relationships totaling
$72.7 million 1.80% .
Commenting on the quarterly results, Dennis J. Zember Jr., President and CEO stated, "We are excited about the improvement in our results and believe we are positioned very well for the current environment. The Bank experienced a great quarter with an improved margin, substantial new deposit account openings at low rates and downward trends on operating expenses ahead of the planned consolidation of eight retail banking offices in late October 2023. There is building momentum at the community bank with our technology and convenience factors, resulting in us seeing material deposit opportunities that otherwise would not be available to the Bank.
As far as our positioning in the current environment, we have existing liquidity levels that are substantial with deposit growth strategies that are very incremental. As of this press release, we have only
Net Interest Income
Net interest income increased approximately
Commenting on net interest margin trends, Mr. Zember said, "On a comparable basis, when you exclude the excess liquidity and deposits, our margin improved linked-quarter. Further, it was higher in the month of September at
Interest income on earning assets decreased during the third quarter of 2023 to
Interest expense declined
3Q23 | 2Q23 | 1Q23 | 4Q22 | 3Q22 | |
Core Bank Int. Exp. | $ 12,380 | $ 11,823 | $ 9,343 | $ 5,183 | $ 3,287 |
Digital Platform Int. Exp. | $ 9,196 | $ 12,960 | $ 5,701 | $ 127 | $ 0 |
Core Bank Avg. Noninterest-bearing | $ 471,813 | $ 472,416 | $ 555,771 | $ 648,051 | $ 665,000 |
Core Bank Avg. Interest-bearing deposits (IBD) | |||||
Digital Platform Avg. IBD | $ 723,145 | $ 481,072 | $ 14,691 | $ 89 | |
Core Bank Cost of IBD | 2.34 % | 2.20 % | 1.76 % | 1.01 % | 0.64 % |
Core Bank Cost of Deposits | 1.91 % | 1.80 % | 1.40 % | 0.77 % | 0.48 % |
Digital Platform Cost of IBD | 5.05 % | 4.94 % | 4.81 % | 3.42 % | 0.55 % |
Avg. 3M FHLB Rate | 5.54 % | 5.31 % | 4.96 % | 4.40 % | 2.93 % |
Noninterest Income
Noninterest income increased during the third quarter to
During the third quarter of 2023, the Bank realized
Noninterest Expense
Noninterest expense was
Excluding goodwill impairment, mortgage, nonrecurring expenses, unfunded reserve expenses and the third party expenses described above, noninterest expense for the third quarter of 2023 was
The Company continues to pursue efficiencies to enhance operating leverage. As previously disclosed, eight branch locations will be consolidated in the fourth quarter of 2023 which will positively impact noninterest expense going forward.
Loan Portfolio and Asset Quality
Loans held for investment decreased to
Nonperforming assets, excluding portions guaranteed by the SBA, were
The Company recorded a provision for loan losses of
Net charge-offs were
Deposits and Funding
Total deposits on the balance sheet at September 30, 2023 decreased to
Deposit growth in the community bank continues to benefit from better technology and unique convenience factors. During the third quarter, the community bank attracted
During the third quarter, the Bank opened 1,369 new deposit account relationships on the digital platform with a weighted average cost of
The Bank has
Digital Lines of Business
Panacea continues to experience substantial growth alongside the development of its nationally-recognized brand. Panacea finished the third quarter of 2023 with approximately
Panacea-related deposits increased to
The Life Premium Finance ("LPF") division, launched in late 2021, ended the third quarter of 2023 with outstanding balances, net of deferred fees, of
Primis Mortgage was profitable for the third quarter of 2023 with pre-tax income of
Shareholders' Equity
Book value per share as of September 30, 2023 was
The Board of Directors declared a dividend of
About Primis Financial Corp.
As of September 30, 2023, Primis had
Contacts: | Address: |
Dennis J. Zember, Jr., President and CEO | Primis Financial Corp. |
Matthew A. Switzer, EVP and CFO | 1676 International Drive, Suite 900 |
Phone: (703) 893-7400 | |
Primis Financial Corp., NASDAQ Symbol FRST | |
Website: www.primisbank.com |
Non-GAAP Measures
Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables. Primis uses non-GAAP financial measures to analyze its performance. The measures entitled net income adjusted for nonrecurring income and expenses; pre-tax pre-provision operating earnings; operating return on average assets; pre-tax pre-provision operating return on average assets; operating return on average equity; operating return on average tangible equity; operating efficiency ratio; operating earnings per share – basic; operating earnings per share – diluted; tangible book value per share; tangible common equity; tangible common equity to tangible assets; and core net interest margin are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. We use the term "operating" to describe a financial measure that excludes income or expense considered to be non-recurring in nature. Items identified as non-operating are those that, when excluded from a reported financial measure, provide management or the reader with a measure that may be more indicative of forward-looking trends in our business. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures is provided in the Reconciliation of Non-GAAP Items table.
Management believes that these non-GAAP financial measures provide additional useful information about Primis that allows management and investors to evaluate the ongoing operating results, financial strength and performance of Primis and provide meaningful comparison to its peers. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider Primis' performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of Primis. Non-GAAP financial measures are not standardized and, therefore, it may not be possible to compare these measures with other companies that present measures having the same or similar names.
Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.
Forward-Looking Statements
This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as "may," "plan," "contemplate," "anticipate," "believe," "intend," "continue," "expect," "project," "predict," "estimate," "could," "should," "would," "will," and other similar words or expressions of the future or otherwise regarding the outlook for the Company's future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, but are not limited to, our expectations regarding our future operating and financial performance, including our outlook and long-term goals for future growth and new offerings and services; our expectations regarding net interest margin; expectations on our growth strategy, expense management, capital management and future profitability; expectations on credit quality and performance; and the assumptions underlying our expectations.
Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, the Company's management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that might cause such differences include, but are not limited to: the Company's ability to implement its various strategic and growth initiatives, including its recently established Panacea Financial and Life Premium Finance Divisions, new digital banking platform, V1BE fulfillment service and Primis Mortgage Company; competitive pressures among financial institutions increasing significantly; changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices; changes in management's plans for the future; credit risk associated with our lending activities; changes in interest rates, inflation, loan demand, real estate values, or competition, as well as labor shortages and supply chain disruptions; changes in accounting principles, policies, or guidelines; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions; potential impacts of the recent adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; potential increases in the provision for credit losses; and other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services.
Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company's management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company's filings with the Securities and Exchange Commission, the Company's Annual Report on Form 10-K for the year ended December 31, 2022, under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors," and in the Company's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements.
(1) | Non-GAAP financial measure. Please see "Reconciliation of Non-GAAP Items" in the financial tables for more information and for a reconciliation to GAAP. |
Primis Financial Corp. | ||||||||||||||||||
Financial Highlights (unaudited) | ||||||||||||||||||
(Dollars in thousands, except per share data) | For Three Months Ended: | Variance - 3Q 2023 vs. | For Nine Months Ended: | Variance | ||||||||||||||
Selected Performance Ratios: | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2023 | 3Q 2022 | 3Q 2023 | 3Q 2022 | YTD | ||||||||
Return on average assets | (0.37 %) | (0.02 %) | 0.62 % | 0.35 % | 0.61 % | (35) | bps | (98) | bps | 0.07 % | 0.59 % | (52) | bps | |||||
Operating return on average assets(1) | 0.81 % | 0.09 % | 0.62 % | 0.08 % | 0.64 % | 72 | 18 | 0.49 % | 0.63 % | (13) | ||||||||
Pre-tax pre-provision return on average assets(1) | (0.03 %) | 0.37 % | 1.31 % | 1.32 % | 1.16 % | (39) | (118) | 0.54 % | 0.91 % | (37) | ||||||||
Pre-tax pre-provision operating return on average assets(1) | 1.15 % | 0.51 % | 1.31 % | 0.98 % | 1.20 % | 64 | (5) | 0.97 % | 0.96 % | 2 | ||||||||
Return on average equity | (3.57 %) | (0.19 %) | 5.98 % | 3.04 % | 4.98 % | (338) | (855) | 0.74 % | 4.77 % | (404) | ||||||||
Operating return on average equity(1) | 7.75 % | 0.98 % | 5.98 % | 0.71 % | 5.22 % | 677 | 253 | 4.91 % | 5.22 % | (31) | ||||||||
Operating return on average tangible equity(1) | 10.61 % | 1.33 % | 8.14 % | 0.98 % | 7.15 % | 928 | 346 | 6.71 % | 7.09 % | (38) | ||||||||
Cost of funds | 2.73 % | 2.81 % | 2.19 % | 1.19 % | 0.71 % | (8) | 202 | 2.59 % | 0.59 % | 200 | ||||||||
Net interest margin | 3.02 % | 2.65 % | 3.15 % | 3.67 % | 3.57 % | 37 | (54) | 2.93 % | 3.28 % | (35) | ||||||||
Core net interest margin(1) | 3.02 % | 2.65 % | 3.16 % | 3.68 % | 3.58 % | 36 | (57) | 2.93 % | 3.30 % | (36) | ||||||||
Gross loans to deposits | 95.52 % | 95.68 % | 82.92 % | 108.24 % | 100.98 % | (0) | pts | (5) | pts | 95.52 % | 100.98 % | (5) | pts | |||||
Efficiency ratio | 100.01 % | 81.34 % | 68.69 % | 71.82 % | 71.93 % | 19 | 2,808 | 85.15 % | 74.29 % | 1,085 | ||||||||
Operating efficiency ratio(1) | 69.39 % | 77.06 % | 68.69 % | 76.78 % | 70.99 % | (8) | (161) | 73.64 % | 72.27 % | 138 | ||||||||
Per Share Data: | ||||||||||||||||||
Earnings per share - Basic | $ (0.14) | $ (0.01) | $ 0.24 | $ 0.12 | $ 0.21 | NM | % | (167.49) | % | $ 0.09 | $ 0.60 | (85.16) | % | |||||
Operating earnings per share - Basic(1) | $ 0.32 | $ 0.04 | $ 0.24 | $ 0.03 | $ 0.21 | NM | 51.24 | $ 0.60 | $ 0.63 | (4.73) | ||||||||
Earnings per share - Diluted | $ (0.14) | $ (0.01) | $ 0.24 | $ 0.12 | $ 0.20 | NM | (171.11) | $ 0.09 | $ 0.59 | (84.83) | ||||||||
Operating earnings per share - Diluted(1) | $ 0.32 | $ 0.04 | $ 0.24 | $ 0.03 | $ 0.21 | NM | 51.93 | $ 0.60 | $ 0.62 | (4.25) | ||||||||
Book value per share | $ 15.51 | $ 15.93 | $ 16.14 | $ 15.90 | $ 15.82 | (2.62) | (1.95) | $ 15.51 | $ 15.82 | (1.95) | ||||||||
Tangible book value per share(1) | $ 11.63 | $ 11.58 | $ 11.78 | $ 11.53 | $ 11.43 | 0.41 | 1.77 | $ 11.63 | $ 11.43 | 1.77 | ||||||||
Cash dividend per share | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | - | - | $ 0.30 | $ 0.30 | - | ||||||||
Weighted average shares outstanding - Basic | 24,641,981 | 24,638,505 | 24,625,943 | 24,601,108 | 24,576,887 | 0.01 | 0.26 | 24,635,535 | 24,548,129 | 0.36 | ||||||||
Weighted average shares outstanding - Diluted | 24,641,981 | 24,638,505 | 24,685,206 | 24,685,663 | 24,688,422 | 0.01 | (0.19) | 24,635,535 | 24,674,014 | (0.16) | ||||||||
Shares outstanding at end of period | 24,686,764 | 24,690,064 | 24,685,064 | 24,680,097 | 24,650,239 | (0.01) | % | 0.15 | % | 24,686,764 | 24,650,239 | 0.15 | % | |||||
Asset Quality Ratios: | ||||||||||||||||||
Non-performing assets as a percent of total assets, excluding SBA guarantees | 0.51 % | 0.64 % | 0.78 % | 0.98 % | 1.11 % | (13) | bps | (59) | bps | 0.51 % | 1.11 % | (59) | bps | |||||
Net charge-offs (recoveries) as a percent of average loans (annualized) | 0.53 % | 0.20 % | 0.53 % | 0.74 % | 0.17 % | 33 | 36 | 0.42 % | 0.02 % | 40 | ||||||||
Core net charge-offs (recoveries) as a percent of average loans (annualized)(2) | 0.27 % | 0.02 % | 0.28 % | 0.53 % | 0.17 % | 25 | 10 | 0.14 % | 0.02 % | 12 | ||||||||
Allowance for credit losses to total loans | 1.14 % | 1.21 % | 1.17 % | 1.17 % | 1.17 % | (7) | (3) | 1.14 % | 1.17 % | (3) | ||||||||
Capital Ratios: | ||||||||||||||||||
Equity to assets | 10.04 % | 10.22 % | 9.48 % | 10.99 % | 11.62 % | (18) | bps | (158) | bps | |||||||||
Tangible common equity to tangible assets(1) | 7.72 % | 7.64 % | 7.10 % | 8.22 % | 8.68 % | 8 | (95) | |||||||||||
Leverage ratio(3) | 8.78 % | 8.14 % | 8.59 % | 9.48 % | 10.11 % | 64 | (133) | |||||||||||
Common equity tier 1 capital ratio(3) | 9.76 % | 9.38 % | 10.04 % | 10.54 % | 11.17 % | 38 | (141) | |||||||||||
Tier 1 risk-based capital ratio(3) | 10.07 % | 9.68 % | 10.36 % | 10.88 % | 11.53 % | 39 | (146) | |||||||||||
Total risk-based capital ratio(3) | 13.54 % | 13.16 % | 14.20 % | 14.80 % | 15.71 % | 38 | (217) | |||||||||||
(1) See Reconciliation of Non-GAAP financial measures. | |||||
(2) Excludes third-party charge-offs. | |||||
(3) September 30, 2023 ratios are estimated and may be subject to change pending the final filing of the FR Y-9C. | |||||
Primis Financial Corp. | ||||||||||||
(Dollars in thousands) | As Of : | Variance - 3Q 2023 vs. | ||||||||||
Condensed Consolidated Balance Sheets (unaudited) | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2023 | 3Q 2022 | |||||
Assets | ||||||||||||
Cash and cash equivalents | $ 93,865 | $ 100,868 | $ 607,125 | $ 77,859 | $ 97,738 | (6.94) | % | (3.96) | % | |||
Investment securities-available for sale | 216,875 | 223,087 | 231,468 | 236,315 | 238,891 | (2.78) | (9.22) | |||||
Investment securities-held to maturity | 11,975 | 12,378 | 13,115 | 13,520 | 14,391 | (3.26) | (16.79) | |||||
Loans held for sale | 66,266 | 57,704 | 42,011 | 27,626 | 13,388 | 14.84 | NM | |||||
Loans receivable, net of deferred fees | 3,145,867 | 3,173,638 | 3,041,533 | 2,946,637 | 2,734,887 | (0.88) | 15.03 | |||||
Allowance for credit losses | (35,767) | (38,414) | (35,727) | (34,544) | (31,956) | (6.89) | 11.93 | |||||
Net loans | 3,110,100 | 3,135,224 | 3,005,806 | 2,912,093 | 2,702,931 | (0.80) | 15.06 | |||||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 12,796 | 12,083 | 12,083 | 25,815 | 16,689 | 5.90 | (23.33) | |||||
Bank premises and equipment, net | 24,878 | 25,298 | 25,136 | 25,257 | 25,534 | (1.66) | (2.57) | |||||
Operating lease right-of-use assets | 11,402 | 10,707 | 9,352 | 5,335 | 5,511 | 6.49 | 106.90 | |||||
Goodwill and other intangible assets | 95,741 | 107,215 | 107,539 | 107,863 | 108,170 | (10.70) | (11.49) | |||||
Assets held for sale, net | 3,115 | 3,115 | 3,115 | 3,115 | 3,127 | - | (0.38) | |||||
Bank-owned life insurance | 67,176 | 67,985 | 67,591 | 67,201 | 67,519 | (1.19) | (0.51) | |||||
Other real estate owned | - | - | - | - | 1,041 | - | (100.00) | |||||
Deferred tax assets, net | 22,456 | 20,391 | 18,825 | 18,289 | 17,892 | 10.13 | 25.51 | |||||
Other assets | 77,130 | 72,438 | 60,161 | 49,211 | 42,428 | 6.48 | 81.79 | |||||
Total assets | $ 3,813,775 | $ 3,848,493 | $ 4,203,327 | $ 3,569,499 | $ 3,355,250 | (0.90) | % | 13.67 | % | |||
Liabilities and stockholders' equity | ||||||||||||
Demand deposits | $ 490,719 | $ 480,832 | $ 497,531 | $ 582,556 | $ 687,272 | 2.06 | % | (28.60) | % | |||
NOW accounts | 803,276 | 817,725 | 835,348 | 617,687 | 637,786 | (1.77) | 25.95 | |||||
Money market accounts | 800,951 | 850,359 | 865,115 | 811,365 | 803,050 | (5.81) | (0.26) | |||||
Savings accounts | 746,608 | 696,750 | 971,439 | 245,713 | 217,220 | 7.16 | 243.71 | |||||
Time deposits | 451,850 | 471,330 | 498,564 | 465,057 | 362,992 | (4.13) | 24.48 | |||||
Total deposits | 3,293,404 | 3,316,996 | 3,667,997 | 2,722,378 | 2,708,320 | (0.71) | 21.60 | |||||
Securities sold under agreements to repurchase - short term | 3,838 | 3,921 | 4,346 | 6,445 | 9,886 | (2.12) | (61.18) | |||||
Federal Home Loan Bank advances | - | - | - | 325,000 | 125,000 | - | (100.00) | |||||
Subordinated debt and notes | 95,524 | 95,453 | 95,382 | 95,312 | 95,241 | 0.07 | 0.30 | |||||
Operating lease liabilities | 12,347 | 11,546 | 9,799 | 5,767 | 6,044 | 6.94 | 104.29 | |||||
Other liabilities | 25,796 | 27,361 | 27,397 | 22,232 | 20,863 | (5.72) | 23.64 | |||||
Total liabilities | 3,430,909 | 3,455,277 | 3,804,921 | 3,177,134 | 2,965,354 | (0.71) | 15.70 | |||||
Stockholders' equity | 382,866 | 393,216 | 398,406 | 392,365 | 389,896 | (2.63) | (1.80) | |||||
Total liabilities and stockholders' equity | $ 3,813,775 | $ 3,848,493 | $ 4,203,327 | $ 3,569,499 | $ 3,355,250 | (0.90) | % | 13.67 | % | |||
Tangible common equity(1) | $ 287,125 | $ 286,001 | $ 290,867 | $ 284,502 | $ 281,726 | 0.39 | % | 1.92 | % | |||
The company defines "NM" as not meaningful for increases or decreases greater than 300 percent. |
Primis Financial Corp. | ||||||||||||||||||
(Dollars in thousands) | For Three Months Ended: | Variance - 3Q 2023 vs. | For Nine Months Ended: | Variance | ||||||||||||||
Condensed Consolidated Statement of Operations (unaudited) | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2023 | 3Q 2022 | 3Q 2023 | 3Q 2022 | YTD | ||||||||
Interest and dividend income | $ 50,486 | $ 52,679 | $ 47,114 | $ 38,595 | $ 32,561 | (4.16) | % | 55.05 | % | $ 150,279 | $ 87,350 | 72.04 | % | |||||
Interest expense | 23,361 | 26,522 | 18,749 | 9,058 | 5,146 | (11.92) | NM | 68,632 | 12,529 | NM | ||||||||
Net interest income | 27,125 | 26,157 | 28,365 | 29,537 | 27,415 | 3.70 | (1.06) | 81,647 | 74,821 | 9.12 | ||||||||
Provision for credit losses | 1,648 | 4,301 | 5,187 | 7,860 | 2,890 | (61.68) | NM | 11,136 | 3,411 | 226.47 | ||||||||
Net interest income after provision for credit losses | 25,477 | 21,856 | 23,178 | 21,677 | 24,525 | 16.57 | 3.88 | 70,511 | 71,410 | (1.26) | ||||||||
Account maintenance and deposit service fees | 1,503 | 1,430 | 1,216 | 1,427 | 1,525 | 5.10 | (1.44) | 4,149 | 4,318 | (3.91) | ||||||||
Income from bank-owned life insurance | 787 | 394 | 420 | 847 | 394 | 99.75 | 99.75 | 1,601 | 1,147 | 39.58 | ||||||||
Mortgage banking income | 4,922 | 5,198 | 4,315 | 2,264 | 2,197 | (5.31) | 124.03 | 14,435 | 2,790 | NM | ||||||||
Gain on sale of loans | 451 | 182 | 478 | - | - | 148.00 | - | 1,111 | - | 100.00 | ||||||||
Credit enhancement income | 2,047 | 1,152 | 4,886 | 1,822 | 1,220 | 77.69 | 67.79 | 8,085 | 1,220 | 100.00 | ||||||||
Gain on sale of other investment | - | - | - | 4,411 | - | - | - | - | - | - | ||||||||
Other | 232 | 130 | 217 | 217 | 284 | 78.46 | (18.31) | 579 | 865 | (33.06) | ||||||||
Noninterest income | 9,942 | 8,486 | 11,532 | 10,988 | 5,620 | 17.16 | 76.91 | 29,960 | 10,340 | 189.75 | ||||||||
Employee compensation and benefits | 13,809 | 15,283 | 15,028 | 16,213 | 12,594 | (9.64) | 9.65 | 44,120 | 32,792 | 34.55 | ||||||||
Occupancy and equipment expenses | 3,170 | 3,445 | 3,022 | 2,899 | 2,857 | (7.98) | 10.96 | 9,637 | 7,960 | 21.07 | ||||||||
Amortization of intangible assets | 317 | 318 | 317 | 317 | 326 | (0.31) | (2.76) | 952 | 1,008 | (5.56) | ||||||||
Goodwill impairment | 11,150 | - | - | - | - | NM | NM | 11,150 | - | NM | ||||||||
849 | 848 | 849 | 814 | 813 | 0.12 | 4.43 | 2,546 | 2,440 | 4.34 | |||||||||
Data processing expense | 2,250 | 2,828 | 2,251 | 1,702 | 1,528 | (20.44) | 47.25 | 7,329 | 4,311 | 70.01 | ||||||||
Marketing expense | 377 | 521 | 569 | 933 | 938 | (27.64) | (59.81) | 1,467 | 2,134 | (31.26) | ||||||||
Telecommunication and communication expense | 356 | 416 | 377 | 343 | 342 | (14.42) | 4.09 | 1,149 | 1,090 | 5.41 | ||||||||
Net (gain) loss on other real estate owned | - | - | - | 131 | - | - | - | - | (59) | (100.00) | ||||||||
Loss (gain) on bank premises and equipment | (2) | - | - | - | 64 | - | (103.13) | (2) | 684 | (100.29) | ||||||||
Professional fees | 1,118 | 1,075 | 862 | 1,605 | 1,261 | 4.00 | (11.34) | 3,055 | 3,182 | (3.99) | ||||||||
Credit enhancement costs | 337 | 515 | 873 | 1,369 | - | (34.56) | - | 1,725 | - | 100.00 | ||||||||
Other expenses | 3,343 | 5,303 | 3,256 | 2,780 | 3,038 | (36.96) | 10.04 | 11,902 | 7,728 | 54.01 | ||||||||
Noninterest expense | 37,074 | 30,552 | 27,404 | 29,106 | 23,761 | 21.35 | 56.03 | 95,030 | 63,270 | 50.20 | ||||||||
Income before income taxes | (1,655) | (210) | 7,306 | 3,559 | 6,384 | NM | (125.92) | 5,441 | 18,480 | (70.56) | ||||||||
Income tax expense | 1,912 | (22) | 1,353 | 519 | 1,359 | NM | 40.69 | 3,243 | 3,971 | (18.33) | ||||||||
Net Income | $ (3,567) | $ (188) | $ 5,953 | $ 3,040 | $ 5,025 | NM | (170.98) | 2,198 | 14,509 | (84.85) | ||||||||
(1) See Reconciliation of Non-GAAP financial measures. | ||||
The company defines "NM" as not meaningful for increases or decreases greater than 300 percent. | ||||
Primis Financial Corp. | ||||||||||||
(Dollars in thousands) | As Of: | Variance - 3Q 2023 vs. | ||||||||||
Loan Portfolio Composition | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2023 | 3Q 2022 | |||||
Loans held for sale | $ 66,266 | $ 57,704 | $ 42,011 | $ 27,626 | $ 13,388 | 14.84 | % | NM | % | |||
Loans secured by real estate: | ||||||||||||
Commercial real estate - owner occupied | 433,039 | 448,624 | 460,245 | 461,126 | 437,636 | (3.47) | (1.05) | |||||
Commercial real estate - non-owner occupied | 578,261 | 597,254 | 577,481 | 581,168 | 573,732 | (3.18) | 0.79 | |||||
Secured by farmland | 6,381 | 6,577 | 6,258 | 7,290 | 7,706 | (2.98) | (17.19) | |||||
Construction and land development | 172,071 | 175,141 | 151,950 | 148,762 | 138,371 | (1.75) | 24.35 | |||||
Residential 1-4 family | 601,198 | 592,756 | 607,118 | 610,919 | 616,764 | 1.42 | (2.52) | |||||
Multi-family residential | 129,586 | 133,754 | 139,978 | 140,321 | 137,253 | (3.12) | (5.59) | |||||
Home equity lines of credit | 59,996 | 62,808 | 64,606 | 65,152 | 65,852 | (4.48) | (8.89) | |||||
Total real estate loans | 1,980,532 | 2,016,914 | 2,007,636 | 2,014,738 | 1,977,314 | (1.80) | 0.16 | |||||
Commercial loans | 593,767 | 585,442 | 546,042 | 522,057 | 469,881 | 1.42 | 26.37 | |||||
Paycheck Protection Program loans | 2,105 | 2,143 | 2,603 | 4,564 | 8,014 | (1.77) | (73.73) | |||||
Consumer loans | 569,463 | 569,139 | 485,252 | 405,278 | 279,678 | 0.06 | 103.61 | |||||
Loans receivable, net of deferred fees | $ 3,145,867 | $ 3,173,638 | $ 3,041,533 | $ 2,946,637 | $ 2,734,887 | (0.88) | % | 15.03 | % | |||
Loans by Risk Grade: | ||||||||||||
Pass, not graded | $ - | $ - | $ - | $ - | $ - | - | % | - | % | |||
Pass Grade 1 - Highest Quality | 851 | 743 | 607 | 600 | 616 | 14.54 | 38.15 | |||||
Pass Grade 2 - Good Quality | 383,306 | 367,950 | 253,665 | 209,605 | 149,389 | 4.17 | 156.58 | |||||
Pass Grade 3 - Satisfactory Quality | 1,609,924 | 1,624,626 | 1,596,091 | 1,590,765 | 1,519,765 | (0.90) | 5.93 | |||||
Pass Grade 4 - Pass | 1,089,675 | 1,114,218 | 1,123,393 | 1,072,352 | 982,412 | (2.20) | 10.92 | |||||
Pass Grade 5 - Special Mention | 33,299 | 32,383 | 28,273 | 32,278 | 35,410 | 2.83 | (5.96) | |||||
Grade 6 - Substandard | 28,812 | 33,718 | 39,504 | 41,037 | 47,295 | (14.55) | (39.08) | |||||
Grade 7 - Doubtful | - | - | - | - | - | - | - | |||||
Grade 8 - Loss | - | - | - | - | - | - | - | |||||
Total loans | $ 3,145,867 | $ 3,173,638 | $ 3,041,533 | $ 2,946,637 | $ 2,734,887 | (0.88) | % | 15.03 | % | |||
(Dollars in thousands) | As Of or For Three Months Ended: | |||||||||||
Asset Quality Information | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | |||||||
Allowance for Credit Losses: | ||||||||||||
Balance at beginning of period | $ (38,414) | $ (35,727) | $ (34,544) | $ (31,956) | $ (30,209) | |||||||
Provision for for credit losses | (1,648) | (4,301) | (5,187) | (7,860) | (2,890) | |||||||
Net charge-offs | 4,295 | 1,614 | 4,004 | 5,272 | 1,143 | |||||||
Ending balance | $ (35,767) | $ (38,414) | $ (35,727) | $ (34,544) | $ (31,956) | |||||||
Reserve for Unfunded Commitments: | ||||||||||||
Balance at beginning of period | $ (1,273) | $ (1,507) | $ (1,416) | $ (1,380) | $ (1,069) | |||||||
(Expense for) / recovery of unfunded loan commitment reserve | 249 | 234 | (91) | (36) | (311) | |||||||
Total Reserve for Unfunded Commitments | $ (1,024) | $ (1,273) | $ (1,507) | $ (1,416) | $ (1,380) | |||||||
As Of: | Variance - 3Q 2023 vs. | |||||||||||
Non-Performing Assets: | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2023 | 3Q 2022 | |||||
Nonaccrual loans | $ 20,171 | $ 25,290 | $ 33,397 | $ 35,484 | $ 36,851 | (20.24) | % | (45.26) | % | |||
Accruing loans delinquent 90 days or more | 1,714 | 1,714 | 1,625 | 3,361 | 1,855 | - | (7.60) | |||||
Total non-performing loans | 21,885 | 27,004 | 35,022 | 38,845 | 38,706 | (18.96) | (43.46) | |||||
Other real estate owned | - | - | - | - | 1,041 | - | (100.00) | |||||
Total non-performing assets | $ 21,885 | $ 27,004 | $ 35,022 | $ 38,845 | $ 39,747 | (18.96) | (44.94) | |||||
SBA guaranteed portion of non-performing loans | $ 2,290 | $ 2,331 | $ 2,206 | $ 3,969 | $ 2,573 | (1.76) | (11.00) | |||||
Primis Financial Corp. | |||||||||||||||||||
(Dollars in thousands) | For Three Months Ended: | Variance - 2Q 2021 vs. | For Nine Months Ended: | Variance | |||||||||||||||
Average Balance Sheet | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2023 | 3Q 2022 | 3Q 2023 | 3Q 2022 | YTD | |||||||||
Assets | |||||||||||||||||||
Loans held for sale | $ 55,775 | $ 48,698 | $ 25,346 | $ 22,413 | $ 21,199 | 14.53 | % | 163.10 | % | $ 43,384 | $ 9,456 | NM | % | ||||||
Loans, net of deferred fees | 3,175,454 | 3,101,946 | 2,989,766 | 2,822,693 | 2,667,406 | 2.37 | 19.05 | 3,089,010 | 2,512,388 | 22.95 | |||||||||
Investment securities | 234,601 | 240,700 | 246,402 | 253,345 | 269,780 | (2.53) | (13.04) | 240,525 | 286,525 | (16.05) | |||||||||
Other earning assets | 93,159 | 568,251 | 388,327 | 92,604 | 90,268 | (83.61) | 3.20 | 348,831 | 237,299 | 47.00 | |||||||||
Total earning assets | 3,558,989 | 3,959,595 | 3,649,841 | 3,191,055 | 3,048,653 | (10.12) | 16.74 | 3,721,750 | 3,045,668 | 22.20 | |||||||||
Other assets | 268,165 | 259,048 | 254,124 | 246,754 | 234,642 | 3.52 | 14.29 | 260,697 | 230,186 | 13.26 | |||||||||
Total assets | $ 3,827,154 | $ 4,218,643 | $ 3,903,965 | $ 3,437,809 | $ 3,283,295 | (9.28) | % | 16.56 | % | $ 3,982,447 | $ 3,275,854 | 21.57 | % | ||||||
Liabilities and stockholders' equity | |||||||||||||||||||
Demand deposits | $ 472,485 | $ 473,295 | $ 556,479 | $ 648,151 | $ 665,020 | (0.17) | % | (28.95) | % | $ 500,456 | $ 602,872 | (16.99) | % | ||||||
Interest-bearing liabilities: | |||||||||||||||||||
NOW and other demand accounts | 806,339 | 826,598 | 722,584 | 624,868 | 660,387 | (2.45) | 22.10 | 785,480 | 723,857 | 8.51 | |||||||||
Money market accounts | 850,892 | 858,532 | 824,541 | 805,303 | 803,860 | (0.89) | 5.85 | 844,752 | 808,013 | 4.55 | |||||||||
Savings accounts | 703,809 | 1,026,085 | 593,823 | 232,543 | 219,167 | (31.41) | 221.13 | 775,024 | 222,032 | 249.06 | |||||||||
Time deposits | 460,961 | 495,721 | 489,066 | 379,088 | 343,986 | (7.01) | 34.01 | 481,813 | 341,160 | 41.23 | |||||||||
Total Deposits | 3,294,486 | 3,680,231 | 3,186,493 | 2,689,953 | 2,692,420 | (10.48) | 22.36 | 3,387,525 | 2,697,934 | 25.56 | |||||||||
Borrowings | 99,104 | 99,794 | 284,946 | 325,100 | 166,621 | (0.69) | (40.52) | 160,601 | 148,549 | 8.11 | |||||||||
Total Funding | 3,393,590 | 3,780,025 | 3,471,439 | 3,015,053 | 2,859,041 | (10.22) | 18.70 | 3,548,126 | 2,846,483 | 24.65 | |||||||||
Other Liabilities | 37,741 | 37,265 | 28,592 | 26,318 | 23,832 | 1.28 | 58.36 | 34,589 | 22,985 | 50.49 | |||||||||
Stockholders' equity | 395,823 | 401,353 | 403,934 | 396,438 | 400,422 | (1.38) | (1.15) | 399,732 | 406,386 | (1.64) | |||||||||
Total liabilities and stockholders' equity | $ 3,827,154 | $ 4,218,643 | $ 3,903,965 | $ 3,437,809 | $ 3,283,295 | (9.28) | % | 16.56 | % | $ 3,982,447 | $ 3,275,854 | 21.57 | % | ||||||
Memo: Average PPP loans | $ 2,126 | $ 2,407 | $ 3,001 | $ 5,926 | $ 11,868 | (11.67) | % | (82.09) | % | $ 2,508 | $ 28,958 | (91.34) | % | ||||||
Net Interest Income | |||||||||||||||||||
Loans held for sale | $ 873 | $ 700 | $ 391 | $ 349 | $ 263 | 24.71 | % | 231.94 | % | $ 1,964 | $ 356 | NM | % | ||||||
Loans | 46,898 | 43,270 | 40,915 | 35,841 | 30,225 | 8.39 | 55.16 | 131,083 | 81,192 | 61.45 | |||||||||
Investment securities | 1,593 | 1,551 | 1,584 | 1,571 | 1,518 | 2.71 | 4.94 | 4,728 | 4,393 | 7.63 | |||||||||
Other earning assets | 1,122 | 7,158 | 4,224 | 834 | 555 | (84.33) | 102.16 | 12,504 | 1,409 | NM | |||||||||
Total Earning Assets | 50,486 | 52,679 | 47,114 | 38,595 | 32,561 | (4.16) | 55.05 | 150,279 | 87,350 | 72.04 | |||||||||
Non-interest bearing DDA | - | - | - | - | - | - | - | - | - | - | |||||||||
NOW and other interest-bearing demand accounts | 4,460 | 4,343 | 2,267 | 544 | 536 | 2.69 | NM | 11,070 | 1,758 | NM | |||||||||
Money market accounts | 6,555 | 6,231 | 4,801 | 2,894 | 1,667 | 5.20 | 293.22 | 17,587 | 3,464 | NM | |||||||||
Savings accounts | 6,760 | 10,405 | 4,750 | 305 | 141 | (35.03) | NM | 21,915 | 432 | NM | |||||||||
Time deposits | 3,801 | 3,804 | 3,226 | 1,567 | 943 | (0.08) | NM | 10,831 | 2,317 | NM | |||||||||
Total Deposit Costs | 21,576 | 24,783 | 15,044 | 5,310 | 3,287 | (12.94) | NM | 61,403 | 7,971 | NM | |||||||||
Borrowings | 1,785 | 1,739 | 3,705 | 3,748 | 1,859 | 2.65 | (3.98) | 7,229 | 4,558 | 58.60 | |||||||||
Total Funding Costs | 23,361 | 26,522 | 18,749 | 9,058 | 5,146 | (11.92) | NM | 68,632 | 12,529 | NM | |||||||||
Net Interest Income | $ 27,125 | $ 26,157 | $ 28,365 | $ 29,537 | $ 27,415 | 3.70 | % | (1.06) | % | $ 81,647 | $ 74,821 | 9.12 | % | ||||||
Memo: SBA PPP loan interest and fee income | $ 5 | $ 6 | $ 3 | $ 14 | $ 28 | (16.67) | % | (82.14) | % | $ 14 | $ 522 | (97.32) | % | ||||||
Memo: SBA PPP loan funding costs | $ 2 | $ 2 | $ 3 | $ 5 | $ 10 | - | % | (80.00) | % | $ 7 | $ 75 | (90.67) | % | ||||||
Net Interest Margin | |||||||||||||||||||
Loans held for sale | 6.21 % | 5.77 % | 6.26 % | 6.18 % | 4.92 % | 44 | bps | 129 | bps | 6.05 % | 5.03 % | 102 | bps | ||||||
Loans | 5.86 % | 5.60 % | 5.55 % | 5.04 % | 4.50 % | 26 | 136 | 5.67 % | 4.32 % | 135 | |||||||||
Investments | 2.69 % | 2.58 % | 2.61 % | 2.46 % | 2.23 % | 11 | 46 | 2.63 % | 2.05 % | 58 | |||||||||
Other Earning Assets | 4.78 % | 5.05 % | 4.41 % | 3.57 % | 2.44 % | (27) | 234 | 4.79 % | 0.79 % | 400 | |||||||||
Total Earning Assets | 5.63 % | 5.34 % | 5.24 % | 4.80 % | 4.24 % | 29 | 139 | 5.40 % | 3.83 % | 156 | |||||||||
NOW | 2.19 % | 2.11 % | 1.27 % | 0.35 % | 0.32 % | 8 | 187 | 1.88 % | 0.32 % | 156 | |||||||||
MMDA | 3.06 % | 2.91 % | 2.36 % | 1.43 % | 0.82 % | 15 | 224 | 2.78 % | 0.57 % | 221 | |||||||||
Savings | 3.81 % | 4.07 % | 3.24 % | 0.52 % | 0.26 % | (26) | 355 | 3.78 % | 0.26 % | 352 | |||||||||
CDs | 3.27 % | 3.08 % | 2.68 % | 1.64 % | 1.09 % | 19 | 218 | 3.01 % | 0.91 % | 210 | |||||||||
Cost of Interest Bearing Deposits | 3.03 % | 3.10 % | 2.32 % | 1.03 % | 0.64 % | (7) | 239 | 2.84 % | 0.51 % | 233 | |||||||||
Cost of Deposits | 2.60 % | 2.70 % | 1.91 % | 0.78 % | 0.48 % | (10) | 212 | 2.42 % | 0.40 % | 202 | |||||||||
- | |||||||||||||||||||
Other Funding | 7.15 % | 6.99 % | 5.27 % | 4.57 % | 4.43 % | 16 | 272 | 6.02 % | 4.10 % | 192 | |||||||||
Total Cost of Funds | 2.73 % | 2.81 % | 2.19 % | 1.19 % | 0.71 % | (8) | 202 | 2.59 % | 0.59 % | 200 | |||||||||
Net Interest Margin | 3.02 % | 2.65 % | 3.15 % | 3.67 % | 3.57 % | 37 | (54) | 2.93 % | 3.28 % | (35) | |||||||||
Net Interest Spread | 2.46 % | 2.12 % | 2.63 % | 3.28 % | 3.31 % | 34 | (85) | 2.39 % | 3.09 % | (70) | |||||||||
Memo: Excluding SBA PPP loans | |||||||||||||||||||
Loans | 5.86 % | 5.60 % | 5.56 % | 5.05 % | 4.51 % | 26 | bps | 135 | bps | 5.68 % | 4.34 % | 133 | bps | ||||||
Total Earning Assets | 5.63 % | 5.34 % | 5.24 % | 4.81 % | 4.25 % | 29 | 138 | 5.40 % | 3.85 % | 155 | |||||||||
Net Interest Margin* | 3.02 % | 2.65 % | 3.15 % | 3.68 % | 3.58 % | 36 | (56) | 2.93 % | 3.30 % | (36) | |||||||||
*Net interest margin excluding the effect of SBA PPP loans assumes a funding cost of 35bps on average PPP balances in all applicable periods | |||||||
The company defines "NM" as not meaningful for increases or decreases greater than 300 percent. | |||||||
Primis Financial Corp. | |||||||||||
(Dollars in thousands, except per share data) | For Three Months Ended: | For Nine Months Ended: | |||||||||
Reconciliation of Non-GAAP items: | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 3Q 2023 | 3Q 2022 | ||||
Net income | $ (3,567) | $ (188) | $ 5,953 | $ 3,040 | $ 5,025 | $ 2,198 | $ 14,509 | ||||
Non-GAAP adjustments to Net Income: | |||||||||||
Branch Consolidation / Other restructuring | - | 1,488 | - | 1,175 | 308 | 1,488 | 1,209 | ||||
Gain on sale of Infinex investment | - | - | - | (4,144) | - | - | - | ||||
Goodwill impairment | 11,150 | - | - | - | - | 11,150 | - | ||||
Loan officer fraud, operational losses | 200 | - | - | - | - | 200 | - | ||||
Income tax effect | (44) | (321) | - | 641 | (67) | (365) | (373) | ||||
Net income adjusted for nonrecurring income and expenses | $ 7,739 | $ 979 | $ 5,953 | $ 712 | $ 5,266 | $ 14,671 | $ 15,345 | ||||
Net income (loss) | $ (3,567) | $ (188) | $ 5,953 | $ 3,040 | $ 5,025 | $ 2,198 | $ 14,509 | ||||
Income tax expense (benefit) | 1,912 | (22) | 1,353 | 519 | 1,359 | 3,243 | 3,971 | ||||
Provision for credit losses (incl. unfunded commitment expense) | 1,399 | 4,067 | 5,278 | 7,896 | 3,201 | 10,744 | 3,814 | ||||
Pre-tax pre-provision earnings | $ (256) | $ 3,857 | $ 12,584 | $ 11,455 | $ 9,585 | $ 16,185 | $ 22,294 | ||||
Effect of adjustment for nonrecurring income and expenses | 11,350 | 1,488 | - | (2,969) | 308 | 12,838 | 1,209 | ||||
Pre-tax pre-provision operating earnings | $ 11,094 | $ 5,345 | $ 12,584 | $ 8,486 | $ 9,893 | $ 29,023 | $ 23,503 | ||||
Return on average assets | (0.37 %) | (0.02 %) | 0.62 % | 0.35 % | 0.61 % | 0.07 % | 0.59 % | ||||
Effect of adjustment for nonrecurring income and expenses | 1.17 % | 0.11 % | 0.00 % | (0.27 %) | 0.03 % | 0.42 % | 0.03 % | ||||
Operating return on average assets | 0.81 % | 0.09 % | 0.62 % | 0.08 % | 0.64 % | 0.49 % | 0.63 % | ||||
Return on average assets | (0.37 %) | (0.02 %) | 0.62 % | 0.35 % | 0.61 % | 0.07 % | 0.59 % | ||||
Effect of tax expense | 0.20 % | (0.00 %) | 0.14 % | 0.06 % | 0.16 % | 0.11 % | 0.16 % | ||||
Effect of provision for credit losses (incl. unfunded commitment expense) | 0.14 % | 0.39 % | 0.55 % | 0.91 % | 0.39 % | 0.35 % | 0.16 % | ||||
Pre-tax pre-provision return on average assets | (0.03 %) | 0.37 % | 1.31 % | 1.32 % | 1.16 % | 0.54 % | 0.91 % | ||||
Effect of adjustment for nonrecurring income and expenses and expenses | 1.18 % | 0.14 % | 0.00 % | (0.34 %) | 0.04 % | 0.43 % | 0.05 % | ||||
Pre-tax pre-provision operating return on average assets | 1.15 % | 0.51 % | 1.31 % | 0.98 % | 1.20 % | 0.97 % | 0.96 % | ||||
Return on average equity | (3.57 %) | (0.19 %) | 5.98 % | 3.04 % | 4.98 % | 0.74 % | 4.77 % | ||||
Effect of adjustment for nonrecurring income and expenses | 11.32 % | 1.17 % | 0.00 % | (2.33 %) | 0.24 % | 4.18 % | 0.45 % | ||||
Operating return on average equity | 7.75 % | 0.98 % | 5.98 % | 0.71 % | 5.22 % | 4.91 % | 5.22 % | ||||
Effect of goodwill and other intangible assets | 2.86 % | 0.36 % | 2.16 % | 0.27 % | 1.93 % | 1.80 % | 1.87 % | ||||
Operating return on average tangible equity | 10.61 % | 1.33 % | 8.14 % | 0.98 % | 7.15 % | 6.71 % | 7.09 % | ||||
Efficiency ratio | 100.01 % | 81.34 % | 68.69 % | 71.82 % | 71.93 % | 85.15 % | 74.29 % | ||||
Effect of adjustment for nonrecurring income and expenses | (30.62 %) | (4.28 %) | 0.00 % | 4.96 % | (0.94 %) | (11.50 %) | (2.02 %) | ||||
Operating efficiency ratio | 69.39 % | 77.06 % | 68.69 % | 76.78 % | 70.99 % | 73.64 % | 72.27 % | ||||
Earnings per share - Basic | $ (0.14) | $ (0.01) | $ 0.24 | $ 0.12 | $ 0.21 | $ 0.09 | $ 0.60 | ||||
Effect of adjustment for nonrecurring income and expenses | $ 0.46 | 0.05 | - | (0.09) | (0.00) | $ 0.52 | 0.02 | ||||
Operating earnings per share - Basic | $ 0.32 | $ 0.04 | $ 0.24 | $ 0.03 | $ 0.21 | $ 0.60 | $ 0.63 | ||||
Earnings per share - Diluted | $ (0.14) | $ (0.01) | $ 0.24 | $ 0.12 | $ 0.20 | $ 0.09 | $ 0.59 | ||||
Effect of adjustment for nonrecurring income and expenses | 0.46 | 0.05 | - | (0.09) | 0.01 | $ 0.52 | 0.03 | ||||
Operating earnings per share - Diluted | $ 0.32 | $ 0.04 | $ 0.24 | $ 0.03 | $ 0.21 | $ 0.60 | $ 0.62 | ||||
Book value per share | $ 15.51 | $ 15.93 | $ 16.14 | $ 15.90 | $ 15.82 | $ 15.51 | $ 15.82 | ||||
Effect of goodwill and other intangible assets | (3.88) | (4.35) | (4.36) | (4.37) | (4.39) | (3.88) | (4.39) | ||||
Tangible book value per share | $ 11.63 | $ 11.58 | $ 11.78 | $ 11.53 | $ 11.43 | $ 11.63 | $ 11.43 | ||||
Stockholders' equity | $ 382,866 | $ 393,216 | $ 398,406 | $ 392,365 | $ 389,896 | $ 382,866 | |||||
Less goodwill and other intangible assets | (95,741) | (107,215) | (107,539) | (107,863) | (108,147) | (95,741) | (108,170) | ||||
Tangible common equity | $ 287,125 | $ 286,001 | $ 290,867 | $ 284,502 | $ 281,749 | $ 287,125 | |||||
Equity to assets | 10.04 % | 10.22 % | 9.48 % | 10.99 % | 11.62 % | 10.04 % | 11.62 % | ||||
Effect of goodwill and other intangible assets | (2.32 %) | (2.58 %) | (2.38 %) | (2.77 %) | (2.94 %) | (2.32 %) | (2.94 %) | ||||
Tangible common equity to tangible assets | 7.72 % | 7.64 % | 7.10 % | 8.22 % | 8.68 % | 7.72 % | 8.68 % | ||||
Net interest margin | 3.02 % | 2.65 % | 3.15 % | 3.67 % | 3.57 % | 2.93 % | 3.28 % | ||||
Effect of adjustments for PPP associated balances* | 0.00 % | 0.00 % | 0.01 % | 0.01 % | 0.01 % | 0.00 % | 0.02 % | ||||
Core net interest margin | 3.02 % | 2.65 % | 3.16 % | 3.68 % | 3.58 % | 2.93 % | 3.30 % | ||||
*Net interest margin excluding the effect of PPP loans assumes a funding cost of 35bps on average PPP balances in all applicable periods | ||||||
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SOURCE Primis Financial Corp.
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