Primis Financial Corp. Reports Basic and Diluted Earnings per Share for the Second Quarter of 2023
- Primis Financial Corp. reported a net loss of $0.2 million for Q2 2023, compared to net income of $6.0 million for Q1 2023 and $5.0 million for Q2 2022.
- Earnings per share for Q2 2023 was a loss of $0.01, compared to earnings of $0.24 for Q1 2023 and $0.20 for Q2 2022.
- The cost-saving initiative includes consolidating branches and reducing administrative expenses, with expected annual savings of approximately $9.4 million.
- None.
Announces Cost Saving Initiative
Declares Quarterly Cash Dividend of
Commenting on the quarterly results, Dennis J. Zember Jr., President and CEO stated, "We are finishing the second quarter with pro forma capital, liquidity and credit quality levels that are at the top of our peer group. While the cost to the quarterly results are noticeable to achieve this, I believe operating in this current environment with substantial balance sheet strength is very important. We have the best funding strategies in our peer group and even further in our very competitive region and our
Mr. Zember continued, "The inverted yield curve is a reality, but it's not normal and it will not persist forever. In this environment, our funding and investment decisions have less incremental profitability, by around 100bps, than normal. Instead of abandoning our higher quality asset strategies that will produce the margins we want in normal cycles, we have pivoted hard towards much lower costs and a gain on sale model for that production. Our V1BE delivery service for branch functions will allow us to consolidate branches reduce associated costs and retain virtually all of the low cost deposits. We went further and have reduced administrative staff and recalibrated other strategies and functions that bring the total cost reductions to approximately
Cost Saving Initiative
The Company has put in place a material cost saving project to reduce administrative and branch expenses given the challenging operating environment. As part of this initiative, the Bank will initially consolidate 8 branch locations, reducing total branches from 32 to 24, with an expected effective date of October 31, 2023. Branch consolidations are expected to save approximately
Material Improvement in Asset Quality
During the period or subsequent to the second quarter of 2023, the Company sold or took near term contracts on
Additionally, the Company ended the quarter with only
Sweep Program Implementation
The Company implemented a traditional sweep program on the last day of the second quarter of 2023. The sweep program initially swept
With the sweep in place, the Company intends to resume account opening on the digital platform in a measured way with the goal to continue increasing accounts throughout the remainder of 2023. Additional funds raised through new accounts will not affect the Company's capital or profitability ratios except that incremental spread between the earnings rate and the customer rate will improve the Company's non-interest income. To achieve national name recognition and credibility, and the inertia and flexibility that comes alongside that image, management believes that the Company would need total accounts of approximately 50,000 or more and believes the sweep program provides the ability to scale to that level with minimal risk or impact to sensitivity or capital levels, while positively impacting the Company's operating results. Lastly, the sweep program provides customers with enhanced FDIC insurance of up to
Discussion of Employee Fraud
Late in the second quarter of 2023, the Company discovered an employee loan fraud with total exposure of approximately
Because of the size and timing of the fraudulent loans, a substantial portion of the loss is reflected in opening equity for the prior periods in the tables at the end of the press release. Reported periods in the table have been adjusted for intra-period losses attributable to the fraud and is primarily comprised of interest reversals. No potential recovery of losses from insurance has been recorded at this time while documentation is underway.
Mr. Zember commented, "While the accounting impact from the fraud this quarter is to capital instead of earnings, the situation is unfortunate and frustrating, though isolated and insurable. Given that the fraud was uncovered late in the quarter, we are in the process of our forensic investigation to support the insurance claim to be filed, but expect future recoveries from the claim."
Financial Highlights for the Period Ended June 30, 2023
- Growth in average deposits of
or$494 million 62% annualized versus the previous quarter. New non-time deposit accounts for the quarter totaled 4,315 accounts with balances of at the end of the second quarter of 2023.$112 million - Cumulative beta on the core bank's interest bearing deposits of only
23% . - Loan production for the quarter of
and loan growth of$165 million , or$130 million 17% annualized, from the previous quarter. - Pro forma non-performing assets to total assets of
0.13% adjusting for contracts in place. - Strong liquidity and capital ratios.
- Limited exposure to investor CRE, particularly office or retail.
71% of loan growth in last 12 months has been either cash secured life premium or medical professional lending.- Recently announced cost savings initiative and structural changes to branch and digital deposit gathering is expected to reduce costs by an estimated
per year and is expected to be fully implemented by October 2023.$9.4 million - Reduction in branch count will push total deposits per branch to approximately
(including swept deposits) compared to approximately$153 million per branch at the end of 2022.$85 million - Total deposits fully serviced by V1BE increased to
from the prior quarter with 746 customers to the invitation only service.$144 million - Uninsured deposits make up approximately
16% of total deposits at June 30, 2023. - Mortgage banking profitable in Q2 with a pre-tax contribution of
.$647 thousand
Net Interest Income
Continued upward pressure on deposit account rates and shifting from non-interest bearing to higher rate products are impacting interest expense and net interest income for the Company and the industry. Net interest income of
Interest income on earning assets increased during the second quarter of 2023 to
While interest income continued to increase in the second quarter of 2023, incremental costs of interest bearing deposits has increased at a faster pace. Management has used industry leading liquidity levels to intensely manage the core bank's interest expense in-line or below its direct competition while at the same time exploiting the opportunity to grow accounts on the national platform with acquisition rates that are initially 100 to 150 basis points higher than the long-term maintenance rates for these accounts. Management expects that, with the sweep program in place, this acquisition strategy will have no impact on the Company's margin or capital ratios while positioning the Company to have a funding source that is profitable and has the growth potential of banks five to ten times the size of Primis Bank.
The core bank's relatively attractive deposit position is seen below:
2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q22 | |
Core Bank Int. Exp. | $ 11,823 | $ 9,343 | $ 5,183 | $ 3,287 | $ 2,311 |
Digital Platform Int. Exp. | $ 12,960 | $ 5,701 | $ 127 | $ 0 | $ 0 |
Core Bank Avg. Noninterest-bearing | $ 472,416 | $ 555,771 | $ 648,051 | $ 665,000 | $ 596,693 |
Core Bank Avg. Interest-bearing deposits (IBD) | |||||
Digital Platform Avg. IBD | $ 481,072 | $ 14,691 | $ 89 | $ 47 | |
Core Bank Cost of IBD | 2.20 % | 1.76 % | 1.01 % | 0.64 % | 0.45 % |
Core Bank Cost of Deposits | 1.80 % | 1.40 % | 0.77 % | 0.48 % | 0.35 % |
Digital Platform Cost of IBD | 4.94 % | 4.81 % | 3.42 % | 0.55 % | 0.45 % |
Avg. 3M FHLB Advance Rate | 5.31 % | 4.96 % | 4.40 % | 2.93 % | 1.31 % |
During the second quarter of 2023, the core bank opened
National platform sales during the quarter centered on savings and interest checking and amounted to growth of
Noninterest Income
Noninterest income decreased during the second quarter to
During the second quarter of 2023, the Bank realized
Noninterest Expense
Noninterest expense was
Excluding mortgage, nonrecurring expenses and the third party expenses described above, noninterest expense for the second quarter of 2023 was
Loan Portfolio and Asset Quality
Loans held for investment increased 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 balance sheet decreased to
The Bank paid off
Digital Lines of Business
The Company operates two national lines of business that are focused primarily on lending to higher quality segments of the economy and a national digital platform for funding purposes. Management believes that over time the combined strategy can have margins in the
Panacea continues to experience substantial growth alongside the development of its nationally-recognized brand. Panacea finished the second quarter of 2023 with approximately
Panacea-related deposits increased to
The Life Premium Finance ("LPF") division, launched in late 2021, ended the second quarter of 2023 with outstanding balances, net of deferred fees, of
Primis Mortgage was profitable for the second quarter of 2023 with pre-tax income of
Shareholders' Equity
Book value per share as of June 30, 2023 was
Additionally, the Board of Directors announced and declared a dividend of
About Primis Financial Corp.
As of June 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 |
Conference Call
The Company's management will host a conference call to discuss its second quarter results on Friday, July 28, 2023 at 10:00 a.m. (ET). A live Webcast of the conference call is available at the following website: https://events.q4inc.com/attendee/322792474. Participants may also call 1-888-330-3573 and ask for the Primis Financial Corp. call. A replay of the teleconference will be available for 7 days by calling 1-800-770-2030 and providing Replay Access Code 4440924.
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.
Primis Financial Corp. | ||||||||||||||||||
Financial Highlights (unaudited) | ||||||||||||||||||
(Dollars in thousands, except per share data) | For Three Months Ended: | Variance - 2Q 2023 vs. | For Six Months Ended: | Variance | ||||||||||||||
Selected Performance Ratios: | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 1Q 2023 | 2Q 2022 | 2Q 2023 | 2Q 2022 | YTD | ||||||||
Return on average assets | (0.02 %) | 0.62 % | 0.35 % | 0.61 % | 0.62 % | (64) | bps | (64) | bps | 0.29 % | 0.58 % | (30) | bps | |||||
Operating return on average assets(1) | 0.09 % | 0.62 % | 0.08 % | 0.64 % | 0.75 % | (53) | (66) | 0.34 % | 0.65 % | (31) | ||||||||
Pre-tax pre-provision return on average assets(1) | 0.37 % | 1.31 % | 1.32 % | 1.16 % | 0.83 % | (94) | (46) | 0.55 % | 0.78 % | (23) | ||||||||
Pre-tax pre-provision operating return on average assets(1) | 0.51 % | 1.31 % | 0.98 % | 1.20 % | 0.99 % | (80) | (48) | 0.63 % | 0.87 % | (24) | ||||||||
Return on average equity | (0.19 %) | 5.98 % | 3.04 % | 4.98 % | 4.89 % | (616) | (508) | 2.88 % | 4.67 % | (179) | ||||||||
Operating return on average equity(1) | 0.98 % | 5.98 % | 0.71 % | 5.22 % | 5.90 % | (500) | (492) | 3.46 % | 5.22 % | (175) | ||||||||
Operating return on average tangible equity(1) | 1.33 % | 8.14 % | 0.98 % | 7.15 % | 8.05 % | (681) | (671) | 4.72 % | 7.06 % | (233) | ||||||||
Cost of funds | 2.81 % | 2.19 % | 1.19 % | 0.71 % | 0.53 % | 62 | 228 | 2.52 % | 0.52 % | 200 | ||||||||
Net interest margin | 2.65 % | 3.15 % | 3.67 % | 3.57 % | 3.33 % | (50) | (68) | 2.89 % | 3.14 % | (25) | ||||||||
Core net interest margin(1) | 2.65 % | 3.16 % | 3.68 % | 3.58 % | 3.35 % | (51) | (70) | 2.89 % | 3.15 % | (26) | ||||||||
Gross loans to deposits | 95.68 % | 82.92 % | 108.24 % | 100.98 % | 97.90 % | 13 | pts | (2) | pts | 95.68 % | 97.90 % | (2) | pts | |||||
Efficiency ratio | 88.19 % | 68.69 % | 71.82 % | 71.93 % | 75.26 % | 20 | 1,293 | 77.75 % | 75.79 % | 196 | ||||||||
Operating efficiency ratio(1) | 83.90 % | 68.69 % | 76.78 % | 70.99 % | 70.48 % | 15 | 1,342 | 75.76 % | 73.08 % | 268 | ||||||||
Per Share Data: | ||||||||||||||||||
Earnings per share - Basic | $ (0.01) | $ 0.24 | $ 0.12 | $ 0.20 | $ 0.20 | (103.16) | % | (103.79) | % | $ 0.23 | $ 0.39 | (39.40) | % | |||||
Operating earnings per share - Basic(1) | $ 0.04 | $ 0.24 | $ 0.03 | $ 0.21 | $ 0.24 | (84) | (83.66) | $ 0.28 | $ 0.43 | (34.84) | ||||||||
Earnings per share - Diluted | $ (0.01) | $ 0.24 | $ 0.12 | $ 0.20 | $ 0.20 | (103.16) | (103.81) | $ 0.23 | $ 0.38 | (39.23) | ||||||||
Operating earnings per share - Diluted(1) | $ 0.04 | $ 0.24 | $ 0.03 | $ 0.21 | $ 0.24 | (84) | (83.61) | $ 0.28 | $ 0.43 | (34.62) | ||||||||
Book value per share | $ 15.93 | $ 16.14 | $ 15.90 | $ 15.82 | $ 16.10 | (1.35) | (1.05) | $ 15.93 | $ 16.10 | (1.05) | ||||||||
Tangible book value per share(1) | $ 11.58 | $ 11.79 | $ 11.53 | $ 11.43 | $ 11.69 | (1.73) | (0.93) | $ 11.58 | $ 11.69 | (0.93) | ||||||||
Cash dividend per share | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | - | - | $ 0.20 | $ 0.20 | - | ||||||||
Weighted average shares outstanding - Basic | 24,638,505 | 24,625,943 | 24,601,108 | 24,576,887 | 24,562,753 | 0.05 | 0.31 | 24,632,259 | 24,533,512 | 0.40 | ||||||||
Weighted average shares outstanding - Diluted | 24,688,141 | 24,685,206 | 24,685,663 | 24,688,422 | 24,681,425 | 0.01 | 0.03 | 24,685,072 | 24,666,486 | 0.08 | ||||||||
Shares outstanding at end of period | 24,690,064 | 24,685,064 | 24,680,097 | 24,650,239 | 24,650,239 | 0.02 | % | 0.16 | % | 24,690,064 | 24,650,239 | 0.16 | % | |||||
Asset Quality Ratios: | ||||||||||||||||||
Non-performing assets as a percent of total assets, excluding SBA guarantees | 0.64 % | 0.78 % | 0.98 % | 1.11 % | 0.61 % | (14) | bps | 3 | bps | 0.64 % | 0.61 % | 3 | bps | |||||
Net charge-offs (recoveries) as a percent of average loans (annualized) | 0.20 % | 0.53 % | 0.74 % | 0.17 % | (0.06 %) | (33) | 27 | 0.18 % | (0.04 %) | 22 | ||||||||
Core net charge-offs (recoveries) as a percent of average loans (annualized)(2) | 0.02 % | 0.28 % | 0.53 % | 0.17 % | (0.06 %) | (26) | 9 | 0.07 % | (0.04 %) | 11 | ||||||||
Allowance for credit losses to total loans | 1.21 % | 1.17 % | 1.17 % | 1.17 % | 1.15 % | 4 | 6 | 1.21 % | 1.15 % | 6 | ||||||||
Allowance for credit losses to total loans (excluding PPP loans) | 1.21 % | 1.18 % | 1.17 % | 1.17 % | 1.16 % | 4 | 5 | 1.21 % | 1.16 % | 5 | ||||||||
Capital Ratios: | ||||||||||||||||||
Equity to assets | 10.22 % | 9.48 % | 10.99 % | 11.62 % | 12.27 % | 74 | bps | (205) | bps | |||||||||
Tangible common equity to tangible assets(1) | 7.64 % | 7.10 % | 8.22 % | 8.68 % | 9.22 % | 54 | (158) | |||||||||||
Leverage ratio(3) | 7.84 % | 8.59 % | 9.48 % | 10.11 % | 10.31 % | (75) | (247) | |||||||||||
Common equity tier 1 capital ratio(3) | 10.03 % | 10.04 % | 10.54 % | 11.17 % | 11.59 % | (1) | (156) | |||||||||||
Tier 1 risk-based capital ratio(3) | 10.36 % | 10.36 % | 10.88 % | 11.53 % | 11.97 % | 0 | (161) | |||||||||||
Total risk-based capital ratio(3) | 14.04 % | 14.20 % | 14.80 % | 15.71 % | 16.29 % | (16) | (225) | |||||||||||
(1) See Reconciliation of Non-GAAP financial measures. | ||||||||||||||||||
(2) Excludes third-party charge-offs. | ||||||||||||||||||
(3) June 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 - 2Q 2023 vs. | ||||||||||
Condensed Consolidated Balance Sheets (unaudited) | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 1Q 2023 | 2Q 2022 | |||||
Assets | ||||||||||||
Cash and cash equivalents | $ 100,868 | $ 607,125 | $ 77,859 | $ 97,738 | $ 70,721 | (83.39) | % | 42.63 | % | |||
Investment securities-available for sale | 223,087 | 231,468 | 236,315 | 238,891 | 257,180 | (3.62) | (13.26) | |||||
Investment securities-held to maturity | 12,378 | 13,115 | 13,520 | 14,391 | 14,978 | (5.62) | (17.36) | |||||
Loans held for sale | 57,704 | 42,011 | 27,626 | 13,388 | 16,096 | 37.35 | 258.50 | |||||
Loans receivable, net of deferred fees | 3,173,638 | 3,041,533 | 2,946,637 | 2,734,887 | 2,626,598 | 4.34 | 20.83 | |||||
Allowance for credit losses | (38,414) | (35,727) | (34,544) | (31,956) | (30,209) | 7.52 | 27.16 | |||||
Net loans | 3,135,224 | 3,005,806 | 2,912,093 | 2,702,931 | 2,596,389 | 4.31 | 20.75 | |||||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 12,083 | 12,083 | 25,815 | 16,689 | 12,940 | - | (6.62) | |||||
Bank premises and equipment, net | 25,298 | 25,136 | 25,257 | 25,534 | 26,113 | 0.64 | (3.12) | |||||
Operating lease right-of-use assets | 10,707 | 9,352 | 5,335 | 5,511 | 4,777 | 14.49 | 124.14 | |||||
Goodwill and other intangible assets | 107,215 | 107,539 | 107,863 | 108,170 | 108,524 | (0.30) | (1.21) | |||||
Assets held for sale, net | 3,115 | 3,115 | 3,115 | 3,127 | 3,127 | - | (0.38) | |||||
Bank-owned life insurance | 67,985 | 67,591 | 67,201 | 67,519 | 67,339 | 0.58 | 0.96 | |||||
Other real estate owned | - | - | - | 1,041 | 1,041 | - | (100.00) | |||||
Deferred tax assets, net | 20,391 | 18,825 | 18,289 | 17,892 | 14,658 | 8.32 | 39.11 | |||||
Other assets | 72,438 | 60,260 | 49,310 | 42,428 | 40,811 | 20.21 | 77.50 | |||||
Total assets | $ 3,848,493 | $ 4,203,426 | $ 3,569,598 | $ 3,355,250 | $ 3,234,694 | (8.44) | % | 18.98 | % | |||
Liabilities and stockholders' equity | ||||||||||||
Demand deposits | $ 480,832 | $ 497,531 | $ 582,556 | $ 687,272 | $ 653,181 | (3.36) | % | (26.39) | % | |||
NOW accounts | 817,725 | 835,348 | 617,687 | 637,786 | 677,237 | (2.11) | 20.74 | |||||
Money market accounts | 850,359 | 865,115 | 811,365 | 803,050 | 802,953 | (1.71) | 5.90 | |||||
Savings accounts | 696,750 | 971,439 | 245,713 | 217,220 | 220,211 | (28.28) | 216.40 | |||||
Time deposits | 471,330 | 498,564 | 465,057 | 362,992 | 329,223 | (5.46) | 43.16 | |||||
Total deposits | 3,316,996 | 3,667,997 | 2,722,378 | 2,708,320 | 2,682,805 | (9.57) | 23.64 | |||||
Securities sold under agreements to repurchase - short term | 3,921 | 4,346 | 6,445 | 9,886 | 10,020 | (9.78) | (60.87) | |||||
Federal Home Loan Bank advances | - | - | 325,000 | 125,000 | 25,000 | - | (100.00) | |||||
Subordinated debt and notes | 95,453 | 95,382 | 95,312 | 95,241 | 95,170 | 0.07 | 0.30 | |||||
Operating lease liabilities | 11,546 | 9,799 | 5,767 | 6,044 | 5,299 | 17.83 | 117.89 | |||||
Other liabilities | 27,361 | 27,397 | 22,232 | 20,863 | 19,647 | (0.13) | 39.26 | |||||
Total liabilities | 3,455,277 | 3,804,921 | 3,177,134 | 2,965,354 | 2,837,941 | (9.19) | 21.75 | |||||
Stockholders' equity | 393,216 | 398,505 | 392,464 | 389,896 | 396,753 | (1.33) | (0.89) | |||||
Total liabilities and stockholders' equity | $ 3,848,493 | $ 4,203,426 | $ 3,569,598 | $ 3,355,250 | $ 3,234,694 | (8.44) | % | 18.98 | % | |||
Tangible common equity(1) | $ 286,001 | $ 290,966 | $ 284,601 | $ 281,726 | $ 288,229 | (1.71) | % | (0.77) | % |
Primis Financial Corp. | ||||||||||||||||||
(Dollars in thousands) | For Three Months Ended: | Variance - 2Q 2023 vs. | For Six Months Ended: | Variance | ||||||||||||||
Condensed Consolidated Statement of Operations (unaudited) | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 1Q 2023 | 2Q 2022 | 2Q 2023 | 2Q 2022 | YTD | ||||||||
Interest and dividend income | $ 52,679 | $ 47,114 | $ 38,595 | $ 32,561 | $ 28,230 | 11.81 | % | 86.61 | % | $ 99,793 | $ 54,789 | 82.14 | % | |||||
Interest expense | 26,522 | 18,749 | 9,058 | 5,146 | 3,652 | 41.46 | NM | 45,271 | 7,383 | NM | ||||||||
Net interest income | 26,157 | 28,365 | 29,537 | 27,415 | 24,578 | (7.79) | 6.42 | 54,522 | 47,406 | 15.01 | ||||||||
Provision for (recovery of) credit losses | 4,301 | 5,187 | 7,860 | 2,890 | 422 | (17.08) | NM | 9,488 | 521 | NM | ||||||||
Net interest income after provision for (recovery of) credit losses | 21,856 | 23,178 | 21,677 | 24,525 | 24,156 | (5.71) | (9.52) | 45,034 | 46,885 | (3.95) | ||||||||
Account maintenance and deposit service fees | 1,430 | 1,216 | 1,427 | 1,525 | 1,442 | 17.60 | (0.83) | 2,646 | 2,793 | (5.26) | ||||||||
Income from bank-owned life insurance | 394 | 420 | 847 | 394 | 378 | (6.19) | 4.23 | 814 | 753 | 8.10 | ||||||||
Mortgage banking income | 5,198 | 4,315 | 2,264 | 2,197 | 593 | 20.46 | NM | 9,513 | 593 | NM | ||||||||
Gain on sale of loans | 182 | 478 | - | - | - | (61.85) | - | 660 | - | - | ||||||||
Credit enhancement income | 1,152 | 4,886 | 1,822 | 1,220 | - | (76.42) | - | 6,038 | - | - | ||||||||
Gain on sale of other investment | - | - | 4,411 | - | - | - | - | - | - | - | ||||||||
Other | 130 | 217 | 217 | 284 | 217 | (40.09) | (40.09) | 347 | 581 | (40.28) | ||||||||
Noninterest income | 8,486 | 11,532 | 10,988 | 5,620 | 2,630 | (26.41) | 222.67 | 20,018 | 4,720 | NM | ||||||||
Employee compensation and benefits | 15,283 | 15,028 | 16,213 | 12,594 | 10,573 | 1.70 | 44.55 | 30,311 | 20,198 | 50.07 | ||||||||
Occupancy and equipment expenses | 3,445 | 3,022 | 2,899 | 2,857 | 2,546 | 14.00 | 35.31 | 6,467 | 5,103 | 26.73 | ||||||||
Amortization of intangible assets | 318 | 317 | 317 | 326 | 341 | 0.32 | (6.74) | 635 | 682 | (6.89) | ||||||||
848 | 849 | 814 | 813 | 814 | (0.12) | 4.18 | 1,697 | 1,627 | 4.30 | |||||||||
Data processing expense | 2,828 | 2,251 | 1,702 | 1,528 | 1,293 | 25.63 | 118.72 | 5,079 | 2,783 | 82.50 | ||||||||
Marketing expense | 521 | 569 | 933 | 938 | 731 | (8.44) | (28.73) | 1,090 | 1,196 | (8.86) | ||||||||
Telecommunication and communication expense | 416 | 377 | 343 | 342 | 366 | 10.34 | 13.66 | 793 | 748 | 6.02 | ||||||||
Net (gain) loss on other real estate owned | - | - | 131 | - | - | - | - | - | (59) | (100.00) | ||||||||
Loss on bank premises and equipment | - | - | - | 64 | 620 | - | (100.00) | - | 620 | (100.00) | ||||||||
Professional fees | 1,075 | 862 | 1,605 | 1,261 | 827 | 24.71 | 29.99 | 1,937 | 1,921 | 0.83 | ||||||||
Credit enhancement costs | 515 | 873 | 1,369 | - | - | (41.01) | - | 1,388 | - | - | ||||||||
Other expenses | 5,303 | 3,256 | 2,780 | 3,038 | 2,366 | 62.90 | 124.17 | 8,559 | 4,690 | 82.50 | ||||||||
Noninterest expense | 30,552 | 27,404 | 29,106 | 23,761 | 20,477 | 11.49 | 49.20 | 57,956 | 39,509 | 46.69 | ||||||||
Income before income taxes | (210) | 7,306 | 3,559 | 6,384 | 6,309 | (102.88) | (103.33) | 7,096 | 12,097 | (41.34) | ||||||||
Income tax expense | (22) | 1,353 | 519 | 1,359 | 1,361 | (101.61) | (101.60) | 1,331 | 2,612 | (49.03) | ||||||||
Net Income | $ (188) | $ 5,953 | $ 3,040 | $ 5,025 | $ 4,948 | (103.16) | (103.81) | 5,765 | 9,484 | (39.21) | ||||||||
(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 - 2Q 2023 vs. | ||||||||||
Loan Portfolio Composition | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 1Q 2023 | 2Q 2022 | |||||
Loans held for sale | $ 57,704 | $ 42,011 | $ 27,626 | $ 13,388 | $ 16,096 | 37.35 | % | 258.50 | % | |||
Loans secured by real estate: | ||||||||||||
Commercial real estate - owner occupied | 448,624 | 460,245 | 461,126 | 437,636 | 433,840 | (2.52) | 3.41 | |||||
Commercial real estate - non-owner occupied | 597,254 | 577,481 | 581,168 | 573,732 | 600,436 | 3.42 | (0.53) | |||||
Secured by farmland | 6,577 | 6,258 | 7,290 | 7,706 | 8,159 | 5.10 | (19.39) | |||||
Construction and land development | 175,141 | 151,950 | 148,762 | 138,371 | 117,604 | 15.26 | 48.92 | |||||
Residential 1-4 family | 592,756 | 607,118 | 610,919 | 616,764 | 607,548 | (2.37) | (2.43) | |||||
Multi-family residential | 133,754 | 139,978 | 140,321 | 137,253 | 144,406 | (4.45) | (7.38) | |||||
Home equity lines of credit | 62,808 | 64,606 | 65,152 | 65,852 | 69,860 | (2.78) | (10.09) | |||||
Total real estate loans | 2,016,914 | 2,007,636 | 2,014,738 | 1,977,314 | 1,981,853 | 0.46 | 1.77 | |||||
Commercial loans | 585,442 | 546,042 | 522,057 | 469,881 | 447,529 | 7.22 | 30.82 | |||||
Paycheck Protection Program loans | 2,143 | 2,603 | 4,564 | 8,014 | 17,525 | (17.67) | (87.77) | |||||
Consumer loans | 569,139 | 485,252 | 405,278 | 279,678 | 179,691 | 17.29 | 216.73 | |||||
Loans receivable, net of deferred fees | $ 3,173,638 | $ 3,041,533 | $ 2,946,637 | $ 2,734,887 | $ 2,626,598 | 4.34 | % | 20.83 | % | |||
Loans by Risk Grade: | ||||||||||||
Pass, not graded | $ - | $ - | $ - | $ - | $ - | - | % | - | % | |||
Pass Grade 1 - Highest Quality | 743 | 607 | 600 | 616 | 609 | 22.41 | 22.00 | |||||
Pass Grade 2 - Good Quality | 367,950 | 253,665 | 209,605 | 149,389 | 129,571 | 45.05 | 183.98 | |||||
Pass Grade 3 - Satisfactory Quality | 1,624,626 | 1,596,091 | 1,590,765 | 1,519,765 | 1,512,455 | 1.79 | 7.42 | |||||
Pass Grade 4 - Pass | 1,114,218 | 1,123,393 | 1,072,352 | 982,412 | 889,109 | (0.82) | 25.32 | |||||
Pass Grade 5 - Special Mention | 32,383 | 28,273 | 32,278 | 35,410 | 67,736 | 14.54 | (52.19) | |||||
Grade 6 - Substandard | 33,718 | 39,504 | 41,037 | 47,295 | 27,118 | (14.65) | 24.34 | |||||
Grade 7 - Doubtful | - | - | - | - | - | - | - | |||||
Grade 8 - Loss | - | - | - | - | - | - | - | |||||
Total loans | $ 3,173,638 | $ 3,041,533 | $ 2,946,637 | $ 2,734,887 | $ 2,626,598 | 4.34 | % | 20.83 | % |
(Dollars in thousands) | As Of or For Three Months Ended: | ||||||
Asset Quality Information | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | ||
Allowance for Credit Losses: | |||||||
Balance at beginning of period | $ (35,727) | $ (34,544) | $ (31,956) | $ (30,209) | $ (29,379) | ||
(Provision for) / recovery of allowance for credit losses | (4,301) | (5,187) | (7,860) | (2,890) | (422) | ||
Net charge-offs | 1,614 | 4,004 | 5,272 | 1,143 | (408) | ||
Ending balance | $ (38,414) | $ (35,727) | $ (34,544) | $ (31,956) | $ (30,209) | ||
Reserve for Unfunded Commitments: | |||||||
Balance at beginning of period | $ (1,507) | $ (1,416) | $ (1,380) | $ (1,069) | $ (1,237) | ||
(Expense for) / recovery of unfunded loan commitment reserve | 234 | (91) | (36) | (311) | 168 | ||
Total Reserve for Unfunded Commitments | $ (1,273) | $ (1,507) | $ (1,416) | $ (1,380) | $ (1,069) |
As Of: | Variance - 2Q 2023 vs. | |||||||||||
Non-Performing Assets: | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 1Q 2023 | 2Q 2022 | |||||
Nonaccrual loans | $ 25,290 | $ 33,397 | $ 35,484 | $ 36,851 | $ 19,635 | (24.28) | % | 28.80 | % | |||
Accruing loans delinquent 90 days or more | 1,714 | 1,625 | 3,361 | 1,855 | 1,512 | 5.48 | 13.36 | |||||
Total non-performing loans | 27,004 | 35,022 | 38,845 | 38,706 | 21,147 | (22.90) | 27.69 | |||||
Other real estate owned | - | - | - | 1,041 | 1,041 | - | (100.00) | |||||
Total non-performing assets | $ 27,004 | $ 35,022 | $ 38,845 | $ 39,747 | $ 22,188 | (22.90) | 21.70 | |||||
SBA guaranteed portion of non-performing loans | $ 2,331 | $ 2,206 | $ 3,969 | $ 2,573 | $ 2,319 | 5.67 | 0.52 |
Primis Financial Corp. | ||||||||||||||||||
(Dollars in thousands) | For Three Months Ended: | Variance - 2Q 2021 vs. | For Six Months Ended: | Variance | ||||||||||||||
Average Balance Sheet | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 1Q 2023 | 2Q 2022 | 2Q 2023 | 2Q 2022 | YTD | ||||||||
Assets | ||||||||||||||||||
Loans held for sale | $ 48,698 | $ 25,346 | $ 22,413 | $ 21,199 | $ 6,936 | 92.13 | % | NM | % | $ 37,086 | $ 3,487 | NM | % | |||||
Loans, net of deferred fees | 3,101,946 | 2,989,766 | 2,822,693 | 2,667,406 | 2,507,779 | 3.75 | 23.69 | 3,047,259 | 2,433,593 | 25.22 | ||||||||
Investment securities | 240,700 | 246,402 | 253,345 | 269,780 | 287,722 | (2.31) | (16.34) | 243,536 | 295,036 | (17.46) | ||||||||
Other earning assets | 568,251 | 388,327 | 92,604 | 90,268 | 158,817 | 46.33 | 257.80 | 478,786 | 312,033 | 53.44 | ||||||||
Total earning assets | 3,959,595 | 3,649,841 | 3,191,055 | 3,048,653 | 2,961,254 | 8.49 | 33.71 | 3,806,667 | 3,044,149 | 25.05 | ||||||||
Other assets | 259,048 | 254,223 | 246,853 | 234,642 | 229,208 | 1.90 | 13.02 | 256,558 | 227,929 | 12.56 | ||||||||
Total assets | $ 4,218,643 | $ 3,904,064 | $ 3,437,908 | $ 3,283,295 | $ 3,190,462 | 8.06 | % | 32.23 | % | $ 4,063,225 | $ 3,272,078 | 24.18 | % | |||||
Liabilities and stockholders' equity | ||||||||||||||||||
Demand deposits | $ 473,295 | $ 556,479 | $ 648,151 | $ 665,020 | $ 596,714 | (14.95) | % | (20.68) | % | $ 514,657 | $ 571,264 | (9.91) | % | |||||
Interest-bearing liabilities: | ||||||||||||||||||
NOW and other demand accounts | 826,598 | 722,584 | 624,868 | 660,387 | 695,481 | 14.39 | 18.85 | 774,878 | 756,118 | 2.48 | ||||||||
Money market accounts | 858,532 | 824,541 | 805,303 | 803,860 | 810,781 | 4.12 | 5.89 | 841,630 | 810,124 | 3.89 | ||||||||
Savings accounts | 1,026,085 | 593,823 | 232,543 | 219,167 | 222,274 | 72.79 | NM | 811,148 | 223,489 | 262.95 | ||||||||
Time deposits | 495,721 | 489,066 | 379,088 | 343,986 | 329,198 | 1.36 | 50.58 | 492,412 | 339,724 | 44.94 | ||||||||
Total Deposits | 3,680,231 | 3,186,493 | 2,689,953 | 2,692,420 | 2,654,448 | 15.49 | 38.64 | 3,434,725 | 2,700,719 | 27.18 | ||||||||
Borrowings | 99,794 | 284,946 | 325,100 | 166,621 | 107,784 | (64.98) | (7.41) | 191,859 | 139,363 | 37.67 | ||||||||
Total Funding | 3,780,025 | 3,471,439 | 3,015,053 | 2,859,041 | 2,762,232 | 8.89 | 36.85 | 3,626,584 | 2,840,082 | 27.69 | ||||||||
Other Liabilities | 37,265 | 28,592 | 26,318 | 23,832 | 22,095 | 30.33 | 68.66 | 33,135 | 22,573 | 46.79 | ||||||||
Stockholders' equity | 401,353 | 404,033 | 396,537 | 400,422 | 406,135 | (0.66) | (1.18) | 403,506 | 409,423 | (1.45) | ||||||||
Total liabilities and stockholders' equity | $ 4,218,643 | $ 3,904,064 | $ 3,437,908 | $ 3,283,295 | $ 3,190,462 | 8.06 | % | 32.23 | % | $ 4,063,225 | $ 3,272,078 | 24.18 | % | |||||
Memo: Average PPP loans | $ 2,407 | $ 3,001 | $ 5,926 | $ 11,868 | $ 23,950 | (19.79) | % | (89.95) | % | $ 2,702 | $ 37,644 | (92.82) | % | |||||
Net Interest Income | ||||||||||||||||||
Loans held for sale | $ 700 | $ 391 | $ 349 | $ 263 | $ 93 | 79.03 | % | NM | % | $ 1,091 | $ 93 | NM | % | |||||
Loans | 43,270 | 40,915 | 35,841 | 30,225 | 26,244 | 5.75 | 64.88 | 84,185 | 50,967 | 65.17 | ||||||||
Investment securities | 1,551 | 1,584 | 1,571 | 1,518 | 1,445 | (2.08) | 7.34 | 3,135 | 2,874 | 9.08 | ||||||||
Other earning assets | 7,158 | 4,224 | 834 | 555 | 448 | 69.46 | NM | 11,382 | 855 | NM | ||||||||
Total Earning Assets | 52,679 | 47,114 | 38,595 | 32,561 | 28,230 | 11.81 | 86.61 | 99,793 | 54,789 | 82.14 | ||||||||
Non-interest bearing DDA | - | - | - | - | - | - | - | - | - | - | ||||||||
NOW and other interest-bearing demand accounts | 4,343 | 2,267 | 544 | 536 | 556 | 91.57 | NM | 6,610 | 1,222 | NM | ||||||||
Money market accounts | 6,231 | 4,801 | 2,894 | 1,667 | 938 | 29.79 | NM | 11,032 | 1,797 | NM | ||||||||
Savings accounts | 10,405 | 4,750 | 305 | 141 | 142 | 119.05 | NM | 15,156 | 291 | NM | ||||||||
Time deposits | 3,804 | 3,226 | 1,567 | 943 | 674 | 17.92 | NM | 7,029 | 1,374 | NM | ||||||||
Total Deposit Costs | 24,783 | 15,044 | 5,310 | 3,287 | 2,310 | 64.74 | NM | 39,827 | 4,684 | NM | ||||||||
Borrowings | 1,739 | 3,705 | 3,748 | 1,859 | 1,342 | (53.06) | 29.58 | 5,444 | 2,699 | 101.70 | ||||||||
Total Funding Costs | 26,522 | 18,749 | 9,058 | 5,146 | 3,652 | 41.46 | NM | 45,271 | 7,383 | NM | ||||||||
Net Interest Income | $ 26,157 | $ 28,365 | $ 29,537 | $ 27,415 | $ 24,578 | (7.79) | % | 6.42 | % | $ 54,522 | $ 47,406 | 15.01 | % | |||||
Memo: SBA PPP loan interest and fee income | $ 6 | $ 3 | $ 14 | $ 28 | $ 59 | 100.00 | % | (89.83) | % | $ 9 | $ 494 | (98.18) | % | |||||
Memo: SBA PPP loan funding costs | $ 2 | $ 3 | $ 5 | $ 10 | $ 21 | (33.33) | % | (90.48) | % | $ 6 | $ 65 | (90.77) | % | |||||
Net Interest Margin | ||||||||||||||||||
Loans held for sale | 5.77 % | 6.26 % | 6.18 % | 4.92 % | 5.38 % | (49) | bps | 39 | bps | 5.93 % | 5.38 % | 55 | bps | |||||
Loans | 5.60 % | 5.55 % | 5.04 % | 4.50 % | 4.20 % | 4 | 140 | 5.57 % | 4.22 % | 135 | ||||||||
Investments | 2.58 % | 2.61 % | 2.46 % | 2.23 % | 2.01 % | (3) | 57 | 2.60 % | 1.96 % | 64 | ||||||||
Other Earning Assets | 5.05 % | 4.41 % | 3.57 % | 2.44 % | 1.13 % | 64 | 392 | 4.79 % | 0.55 % | 424 | ||||||||
Total Earning Assets | 5.34 % | 5.24 % | 4.80 % | 4.24 % | 3.82 % | 10 | 151 | 5.29 % | 3.63 % | 166 | ||||||||
NOW | 2.11 % | 1.27 % | 0.35 % | 0.32 % | 0.32 % | 84 | 179 | 1.72 % | 0.33 % | 139 | ||||||||
MMDA | 2.91 % | 2.36 % | 1.43 % | 0.82 % | 0.46 % | 55 | 245 | 2.64 % | 0.45 % | 219 | ||||||||
Savings | 4.07 % | 3.24 % | 0.52 % | 0.26 % | 0.26 % | 83 | 381 | 3.77 % | 0.26 % | 351 | ||||||||
CDs | 3.08 % | 2.68 % | 1.64 % | 1.09 % | 0.82 % | 40 | 226 | 2.88 % | 0.82 % | 206 | ||||||||
Cost of Interest Bearing Deposits | 3.10 % | 2.32 % | 1.03 % | 0.64 % | 0.45 % | 78 | 265 | 2.75 % | 0.44 % | 231 | ||||||||
Cost of Deposits | 2.70 % | 1.91 % | 0.78 % | 0.48 % | 0.35 % | 79 | 235 | 2.34 % | 0.35 % | 199 | ||||||||
- | ||||||||||||||||||
Other Funding | 6.99 % | 5.27 % | 4.57 % | 4.43 % | 4.99 % | 172 | 200 | 5.72 % | 3.91 % | 181 | ||||||||
Total Cost of Funds | 2.81 % | 2.19 % | 1.19 % | 0.71 % | 0.53 % | 62 | 228 | 2.52 % | 0.52 % | 200 | ||||||||
Net Interest Margin | 2.65 % | 3.15 % | 3.67 % | 3.57 % | 3.33 % | (50) | (68) | 2.89 % | 3.14 % | (25) | ||||||||
Net Interest Spread | 2.12 % | 2.63 % | 3.28 % | 3.31 % | 3.15 % | (51) | (103) | 2.35 % | 2.97 % | (62) | ||||||||
Memo: Excluding SBA PPP loans | ||||||||||||||||||
Loans | 5.60 % | 5.56 % | 5.05 % | 4.51 % | 4.23 % | 4 | bps | 137 | bps | 5.58 % | 4.25 % | 133 | bps | |||||
Total Earning Assets | 5.34 % | 5.24 % | 4.81 % | 4.25 % | 3.85 % | 10 | 149 | 5.29 % | 3.64 % | 165 | ||||||||
Net Interest Margin* | 2.65 % | 3.15 % | 3.68 % | 3.58 % | 3.35 % | (50) | (70) | 2.89 % | 3.15 % | (26) | ||||||||
*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 Six Months Ended: | |||||||||
Reconciliation of Non-GAAP items: | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 2Q 2023 | 2Q 2022 | ||||
Net income | $ (188) | $ 5,953 | $ 3,040 | $ 5,025 | $ 4,948 | $ 5,765 | $ 9,484 | ||||
Non-GAAP adjustments to Net Income: | |||||||||||
Branch Consolidation / Other restructuring | 1,488 | - | 1,175 | 308 | 901 | 1,488 | 901 | ||||
(Gain) on sale of Infinex investment | - | - | (4,144) | - | - | - | - | ||||
Merger expenses | - | - | - | - | 401 | - | 516 | ||||
Income tax effect | (321) | - | 641 | (67) | (281) | (321) | (306) | ||||
Net income adjusted for nonrecurring income and expenses | $ 979 | $ 5,953 | $ 712 | $ 5,266 | $ 5,969 | $ 6,932 | $ 10,595 | ||||
Net income | $ (188) | $ 5,953 | $ 3,040 | $ 5,025 | $ 4,948 | $ 5,765 | $ 9,484 | ||||
Income tax expense | (22) | 1,353 | 519 | 1,359 | 1,361 | 1,331 | 2,612 | ||||
Provision for credit losses (incl. unfunded commitment expense) | 4,067 | 5,278 | 7,896 | 3,201 | 254 | 4,067 | 613 | ||||
Pre-tax pre-provision earnings | $ 3,857 | $ 12,584 | $ 11,455 | $ 9,585 | $ 6,563 | $ 11,164 | $ 12,710 | ||||
Effect of adjustment for nonrecurring income and expenses | 1,488 | - | (2,969) | 308 | 1,302 | 1,488 | 1,417 | ||||
Pre-tax pre-provision operating earnings | $ 5,345 | $ 12,584 | $ 8,486 | $ 9,893 | $ 7,865 | $ 12,652 | $ 14,127 | ||||
Return on average assets | (0.02 %) | 0.62 % | 0.35 % | 0.61 % | 0.62 % | 0.29 % | 0.58 % | ||||
Effect of adjustment for nonrecurring income and expenses | 0.11 % | 0.00 % | (0.27 %) | 0.03 % | 0.13 % | 0.06 % | 0.07 % | ||||
Operating return on average assets | 0.09 % | 0.62 % | 0.08 % | 0.64 % | 0.75 % | 0.34 % | 0.65 % | ||||
Return on average assets | (0.02 %) | 0.62 % | 0.35 % | 0.61 % | 0.62 % | 0.29 % | 0.58 % | ||||
Effect of tax expense | (0.00 %) | 0.14 % | 0.06 % | 0.16 % | 0.17 % | 0.07 % | 0.16 % | ||||
Effect of provision for credit losses (incl. unfunded commitment expense) | 0.39 % | 0.55 % | 0.91 % | 0.39 % | 0.03 % | 0.20 % | 0.04 % | ||||
Pre-tax pre-provision return on average assets | 0.37 % | 1.31 % | 1.32 % | 1.16 % | 0.83 % | 0.55 % | 0.78 % | ||||
Effect of adjustment for nonrecurring income and expenses and expenses | 0.14 % | 0.00 % | (0.34 %) | 0.04 % | 0.16 % | 0.07 % | 0.09 % | ||||
Pre-tax pre-provision operating return on average assets | 0.51 % | 1.31 % | 0.98 % | 1.20 % | 0.99 % | 0.63 % | 0.87 % | ||||
Return on average equity | (0.19 %) | 5.98 % | 3.04 % | 4.98 % | 4.89 % | 2.88 % | 4.67 % | ||||
Effect of adjustment for nonrecurring income and expenses | 1.17 % | 0.00 % | (2.33 %) | 0.24 % | 1.01 % | 0.58 % | 0.55 % | ||||
Operating return on average equity | 0.98 % | 5.98 % | 0.71 % | 5.22 % | 5.90 % | 3.46 % | 5.22 % | ||||
Effect of goodwill and other intangible assets | 0.36 % | 2.17 % | 0.27 % | 1.93 % | 2.15 % | 1.26 % | 1.84 % | ||||
Operating return on average tangible equity | 1.33 % | 8.14 % | 0.98 % | 7.15 % | 8.05 % | 4.72 % | 7.06 % | ||||
Efficiency ratio | 88.19 % | 68.69 % | 71.82 % | 71.93 % | 75.26 % | 77.75 % | 75.79 % | ||||
Effect of adjustment for nonrecurring income and expenses | (4.30 %) | 0.00 % | 4.95 % | (0.93 %) | (4.79 %) | (2.00 %) | (2.72 %) | ||||
Operating efficiency ratio | 83.90 % | 68.69 % | 76.78 % | 70.99 % | 70.48 % | 75.76 % | 73.08 % | ||||
Earnings per share - Basic | $ (0.01) | $ 0.24 | $ 0.12 | $ 0.20 | $ 0.20 | $ 0.23 | $ 0.39 | ||||
Effect of adjustment for nonrecurring income and expenses | 0.05 | - | (0.09) | 0.01 | 0.04 | 0.05 | 0.05 | ||||
Operating earnings per share - Basic | $ 0.04 | $ 0.24 | $ 0.03 | $ 0.21 | $ 0.24 | $ 0.28 | $ 0.43 | ||||
Earnings per share - Diluted | $ (0.01) | $ 0.24 | $ 0.12 | $ 0.20 | $ 0.20 | $ 0.23 | $ 0.38 | ||||
Effect of adjustment for nonrecurring income and expenses | 0.05 | - | (0.09) | 0.01 | 0.04 | 0.05 | 0.05 | ||||
Operating earnings per share - Diluted | $ 0.04 | $ 0.24 | $ 0.03 | $ 0.21 | $ 0.24 | $ 0.28 | $ 0.43 | ||||
Book value per share | $ 15.93 | $ 16.14 | $ 15.90 | $ 15.82 | $ 16.10 | $ 15.93 | $ 16.10 | ||||
Effect of goodwill and other intangible assets | (4.35) | (4.37) | (4.37) | (4.40) | (4.40) | (4.34) | (4.40) | ||||
Tangible book value per share | $ 11.58 | $ 11.79 | $ 11.53 | $ 11.43 | $ 11.69 | $ 11.58 | $ 11.69 | ||||
Stockholders' equity | $ 393,216 | $ 398,505 | $ 392,464 | $ 389,896 | $ 396,753 | $ 393,216 | |||||
Less goodwill and other intangible assets | (107,215) | (107,539) | (107,863) | (108,147) | (108,524) | (107,215) | (108,524) | ||||
Tangible common equity | $ 286,001 | $ 290,966 | $ 284,601 | $ 281,749 | $ 288,229 | $ 286,001 | |||||
Equity to assets | 10.22 % | 9.48 % | 10.99 % | 11.62 % | 12.27 % | 10.22 % | 12.27 % | ||||
Effect of goodwill and other intangible assets | (2.57 %) | (2.38 %) | (2.77 %) | (2.94 %) | (3.05 %) | (2.57 %) | (3.05 %) | ||||
Tangible common equity to tangible assets | 7.64 % | 7.10 % | 8.22 % | 8.68 % | 9.22 % | 7.64 % | 9.22 % | ||||
Net interest margin | 2.65 % | 3.15 % | 3.67 % | 3.57 % | 3.33 % | 2.89 % | 3.14 % | ||||
Effect of adjustments for PPP associated balances* | 0.00 % | 0.01 % | 0.01 % | 0.01 % | 0.02 % | 0.00 % | 0.01 % | ||||
Core net interest margin | 2.65 % | 3.16 % | 3.68 % | 3.58 % | 3.35 % | 2.89 % | 3.15 % | ||||
*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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