Primis Financial Corp. Reports Earnings per Share for the First Quarter of 2025
Primis Financial (NASDAQ: FRST) reported Q1 2025 net income of $2.7 million ($0.11 per share), compared to a Q4 2024 net loss of $23.3 million. The company's normalized operations showed a return on assets of 0.56%.
Key highlights include:
- Core banking maintained $2.2 billion in low-cost deposits with a 1.83% cost of deposits
- Primis Mortgage earned $0.8 million pre-tax, with locked loans reaching $257 million (up 27% from Q4)
- Mortgage warehouse lending grew 80% to $115 million
- Digital platform reached $1 billion in deposits
- Panacea Financial grew loans by $40 million (9%)
The company moved its consumer loan portfolio back to held for investment, requiring a $1.9 million provision. Management expects improved performance through 2025, targeting asset growth back to $3.75 billion and potential technology cost savings of $6-7 million annually.
Primis Financial (NASDAQ: FRST) ha riportato un utile netto di 2,7 milioni di dollari nel primo trimestre 2025 ($0,11 per azione), rispetto a una perdita netta di 23,3 milioni di dollari nel quarto trimestre 2024. Le operazioni normalizzate della società hanno mostrato un rendimento degli attivi dello 0,56%.
I punti salienti includono:
- Core banking ha mantenuto 2,2 miliardi di dollari in depositi a basso costo con un costo dei depositi dell'1,83%
- Primis Mortgage ha guadagnato 0,8 milioni di dollari prima delle tasse, con prestiti bloccati che hanno raggiunto 257 milioni di dollari (in aumento del 27% rispetto al quarto trimestre)
- Il prestito per magazzino ipotecario è cresciuto dell'80% raggiungendo 115 milioni di dollari
- La piattaforma digitale ha raggiunto 1 miliardo di dollari in depositi
- Panacea Financial ha incrementato i prestiti di 40 milioni di dollari (9%)
La società ha riportato il portafoglio di prestiti al consumo nella categoria "held for investment", richiedendo una svalutazione di 1,9 milioni di dollari. La direzione prevede un miglioramento delle performance nel 2025, puntando a una crescita degli attivi fino a 3,75 miliardi di dollari e a potenziali risparmi sui costi tecnologici di 6-7 milioni di dollari all'anno.
Primis Financial (NASDAQ: FRST) reportó un ingreso neto de 2,7 millones de dólares en el primer trimestre de 2025 ($0,11 por acción), en comparación con una pérdida neta de 23,3 millones en el cuarto trimestre de 2024. Las operaciones normalizadas de la compañía mostraron un retorno sobre activos del 0,56%.
Los puntos clave incluyen:
- Banca principal mantuvo 2,2 mil millones de dólares en depósitos de bajo costo con un costo de depósitos del 1,83%
- Primis Mortgage ganó 0,8 millones antes de impuestos, con préstamos bloqueados que alcanzaron los 257 millones (un aumento del 27% respecto al cuarto trimestre)
- Préstamos de almacén hipotecario crecieron un 80% hasta 115 millones
- La plataforma digital alcanzó 1 mil millones en depósitos
- Panacea Financial incrementó los préstamos en 40 millones (9%)
La compañía movió su cartera de préstamos al consumo a la categoría de "held for investment", requiriendo una provisión de 1,9 millones. La gerencia espera una mejora en el desempeño durante 2025, con el objetivo de un crecimiento de activos hasta 3,75 mil millones y posibles ahorros en costos tecnológicos de 6-7 millones anuales.
Primis Financial (NASDAQ: FRST)는 2025년 1분기 순이익 270만 달러(주당 0.11달러)를 보고했으며, 이는 2024년 4분기 순손실 2,330만 달러와 비교됩니다. 회사의 정상화된 운영은 자산수익률 0.56%를 기록했습니다.
주요 내용은 다음과 같습니다:
- 핵심 은행 업무는 22억 달러의 저비용 예금을 유지하며 예금 비용은 1.83%였습니다
- Primis Mortgage는 세전 80만 달러를 벌었고, 고정 대출액은 2억 5,700만 달러로 4분기 대비 27% 증가했습니다
- 모기지 창고 대출은 80% 증가하여 1억 1,500만 달러에 달했습니다
- 디지털 플랫폼은 10억 달러의 예금을 달성했습니다
- Panacea Financial는 대출을 4,000만 달러(9%) 증가시켰습니다
회사는 소비자 대출 포트폴리오를 투자 보유(held for investment)로 재분류하면서 190만 달러의 충당금을 설정했습니다. 경영진은 2025년 동안 실적 개선을 기대하며, 자산을 37억 5천만 달러로 성장시키고 연간 600만~700만 달러의 기술 비용 절감을 목표로 하고 있습니다.
Primis Financial (NASDAQ : FRST) a annoncé un bénéfice net de 2,7 millions de dollars au premier trimestre 2025 (0,11 $ par action), contre une perte nette de 23,3 millions de dollars au quatrième trimestre 2024. Les opérations normalisées de la société ont affiché un rendement des actifs de 0,56 %.
Les points clés sont :
- Banque de base a maintenu 2,2 milliards de dollars de dépôts à faible coût avec un coût des dépôts de 1,83 %
- Primis Mortgage a généré 0,8 million de dollars avant impôts, avec des prêts engagés atteignant 257 millions de dollars (en hausse de 27 % par rapport au T4)
- Prêts en entrepôt hypothécaire en hausse de 80 % pour atteindre 115 millions de dollars
- Plateforme digitale a atteint 1 milliard de dollars de dépôts
- Panacea Financial a augmenté ses prêts de 40 millions de dollars (9 %)
L'entreprise a reclassé son portefeuille de prêts à la consommation en « held for investment », nécessitant une provision de 1,9 million de dollars. La direction prévoit une amélioration des performances en 2025, visant une croissance des actifs à 3,75 milliards de dollars et des économies potentielles sur les coûts technologiques de 6 à 7 millions de dollars par an.
Primis Financial (NASDAQ: FRST) meldete für das erste Quartal 2025 einen Nettogewinn von 2,7 Millionen Dollar (0,11 Dollar je Aktie), im Vergleich zu einem Nettoverlust von 23,3 Millionen Dollar im vierten Quartal 2024. Die normalisierten Geschäftstätigkeiten des Unternehmens zeigten eine Eigenkapitalrendite von 0,56 %.
Wichtige Highlights sind:
- Kernbankgeschäft hielt 2,2 Milliarden Dollar an kostengünstigen Einlagen mit einer Einlagenkostenquote von 1,83 %
- Primis Mortgage erzielte vor Steuern 0,8 Millionen Dollar, mit gesicherten Darlehen in Höhe von 257 Millionen Dollar (plus 27 % gegenüber dem vierten Quartal)
- Hypothekenlagerkredite wuchsen um 80 % auf 115 Millionen Dollar
- Digitale Plattform erreichte 1 Milliarde Dollar an Einlagen
- Panacea Financial steigerte die Kredite um 40 Millionen Dollar (9 %)
Das Unternehmen hat sein Verbraucherdarlehensportfolio wieder als "held for investment" klassifiziert, was eine Rückstellung von 1,9 Millionen Dollar erforderte. Das Management erwartet eine Verbesserung der Leistung im Jahr 2025 und strebt ein Vermögenswachstum auf 3,75 Milliarden Dollar sowie potenzielle jährliche Kosteneinsparungen bei der Technologie von 6 bis 7 Millionen Dollar an.
- Net income improved to $2.7M in Q1 2025 vs net loss of $23.3M in Q4 2024
- Mortgage division showed strong growth with 27% increase in locked loans to $257M in Q1 2025
- Mortgage warehouse lending up 80% to $115M from Q4 2024
- Digital platform maintains $1B in deposits at Fed Funds rate
- Panacea division grew loans by $40M (9%) in Q1 2025
- Net interest margin improved to 3.15% from 2.90% in Q4 2024
- Cost of deposits decreased 28 basis points to 2.52%
- No wholesale funding needed - 100% funded by customer deposits
- Expected technology cost savings of $6-7M annually through core consolidation
- Consumer loan sale efforts unsuccessful, requiring $1.9M additional provision
- High professional fees due to accelerated auditor transition
- Consumer loan program net charge-offs of $10.8M in Q1 2025
- Noninterest income declined to $7.8M from $13.2M in Q4 2024
- Panacea division still generating consolidated losses
- Earning assets declined due to Life Premium Finance business sale
Insights
Primis shows return to profitability with $0.11 EPS, improved margins, and strategic repositioning, but continues working through consumer loan issues.
Primis Financial Corp's Q1 2025 results reveal a company in strategic transition, reporting earnings per share of $0.11 compared to a $0.94 loss in Q4 2024 and $0.10 EPS in Q1 2024. Net income available to common shareholders reached
The financial performance contains several notable elements. The company's net interest margin expanded significantly to
A key development was the decision to move their consumer loan portfolio back to "held for investment" after unsuccessful sale efforts, resulting in an additional
Core expenses decreased by
Growth initiatives show promise. Primis Mortgage earned
The company maintains solid asset quality with non-performing assets at just
Declares Quarterly Cash Dividend of
Operating Results
During the first quarter, the Company moved its consumer loan book back to held for investment out of held for sale after the efforts to consummate the sale were not successful. Associated with this move, the Company evaluated the portfolio aggressively in its CECL model and booked an additional
Commenting on the quarter, Dennis J. Zember, Jr., President and Chief Executive Officer, stated, "We believe our normalized operations show material improvement over the recent quarters and believe that our pathway to more meaningful results is much clearer. Our focus is on measured earning asset growth back to the
Strategic Repositioning Progress
As discussed last quarter, the Company spent substantial time and energy in 2024 focusing the organization on its core bank and lines of business that drive premium operating results. The first quarter of 2025 demonstrated progress in key areas that are expected to continue and build through 2025. The following discussion highlights recent progress for each of these strategies:
Core Community Bank
The core bank has 24 banking offices in
The core bank's loan portfolio was essentially flat in the traditionally slow first quarter with approximately
Primis Mortgage
Primis Mortgage earned approximately
During the quarter, Primis Mortgage successfully recruited leading teams in the
National Strategies
Mortgage warehouse lending activity was significant in the first quarter of 2025 following the expansion of the team in the fall of 2024. Outstanding loan balances at March 31, 2025 were
Funding for the national strategies is provided by the Bank's digital platform powering what we believe is one of only a handful of bank deposit offerings nationwide that is both fully functional and inherently app based. The platform ended the first quarter of 2025 with just over
Panacea Financial
Panacea's growth remained strong to start 2025 with loans outstanding up
Outlook
Mr. Zember commented, "Despite a material decrease in earning assets from the sale of the Life Premium Finance business, the Company's profitability has improved. Our core bank, Mortgage Warehouse and Panacea will build earning assets back to levels we enjoyed prior to the sale which we believe will add 21 basis points to the ROA. Primis mortgage has substantial momentum compared to 2024 that is not rate related and we expect their results to add
Not included in our outlook is a substantial reduction in technology spend and data processing that we expect to experience as we consolidate our traditional core and our digital core. Over the last year, we have built a customer experience that is largely core agnostic, with real time features and app-based account opening. This has positioned us to be able to consolidate our two cores and reduce our annual spend substantially. We expect to complete the analysis in the second quarter of 2025 and believe the savings could be approximately
As noted above, management's estimate of run-rate return on assets was
Net Interest Income
Net interest income increased slightly to
Yield on loans and yield on average earnings assets declined three basis points and two basis points, respectively, in the first quarter of 2025 from the fourth quarter of 2024. New loan production in the first quarter of 2025 had a weighted average yield of
Noninterest Income
Noninterest income was
Offsetting the improvement in mortgage income is the decline in noninterest income associated with the consumer loan program and its promotional loans. In the first quarter of 2025, the Company recorded negative impacts to noninterest income totaling
Noninterest Expense
Noninterest expense was
($ in thousands) | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 |
Reported Noninterest Expense | |||||
PFH Consolidated Expenses | (4,754) | (3,641) | (2,576) | (2,347) | (2,119) |
Noninterest Expense Excl. PFH | 27,762 | 34,200 | 28,379 | 27,439 | 25,419 |
Nonrecurring | (1,144) | (3,686) | (1,352) | (1,453) | (438) |
Primis Mortgage Expenses | (5,725) | (6,354) | (6,436) | (6,084) | (5,122) |
Consumer Program Servicing Fee | (622) | (681) | (699) | (312) | (312) |
Reserve for Unfunded Commitment | (13) | 6 | (96) | 546 | 2 |
Total Adjustments | (7,504) | (10,715) | (8,583) | (7,303) | (5,870) |
Core Operating Expense Burden |
As noted above, the core expense burden decreased
Loan Portfolio and Asset Quality
Loans held for investment increased to
Nonperforming assets, excluding portions guaranteed by the SBA, were only
The Company recorded a provision for loan losses of
Net charge-offs were
Deposits and Funding
Total deposits at March 31, 2025 decreased slightly to
Shareholders' Equity
Book value per common share as of March 31, 2025 was
The Board of Directors declared a dividend of
About Primis Financial Corp.
As of March 31, 2025, 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 first quarter results on Wednesday, April 30, 2025 at 10:00 a.m. (ET). A live Webcast of the conference call is available at the following website: https://events.q4inc.com/attendee/478210319. Participants may also call 1-800-715-9871 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 4554342.
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 the preliminary estimated financial and operating information presented herein, which is subject to adjustment; 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: instability in global economic conditions and geopolitical matters; the impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within our primary market areas; changes in interest rates, inflation, loan demand, real estate values, or competition, as well as labor shortages and supply chain disruptions; the impact of tariffs, trade policies, and trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for
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, 2024, 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: | ||||||
Selected Performance Ratios: | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | ||
Return on average assets | 0.30 % | (2.43 %) | 0.12 % | 0.35 % | 0.26 % | ||
Operating return on average assets(1) | 0.40 % | (2.51 %) | 0.20 % | 0.46 % | 0.29 % | ||
Pre-tax pre-provision return on average assets(1) | 0.58 % | 0.44 % | 0.86 % | 0.75 % | 1.02 % | ||
Pre-tax pre-provision operating return on average assets(1) | 0.71 % | 0.33 % | 0.96 % | 0.85 % | 1.06 % | ||
Return on average common equity | 3.10 % | (24.28 %) | 1.31 % | 3.69 % | 2.59 % | ||
Operating return on average common equity(1) | 4.14 % | (25.13 %) | 2.15 % | 4.81 % | 2.95 % | ||
Operating return on average tangible common equity(1) | 5.65 % | (33.33 %) | 2.86 % | 6.42 % | 3.94 % | ||
Cost of funds | 2.68 % | 2.97 % | 3.25 % | 3.16 % | 2.97 % | ||
Net interest margin | 3.15 % | 2.90 % | 2.97 % | 2.72 % | 2.84 % | ||
Gross loans to deposits | 96.33 % | 91.06 % | 89.94 % | 98.95 % | 97.37 % | ||
Efficiency ratio | 95.30 % | 96.41 % | 82.82 % | 83.36 % | 77.41 % | ||
Operating efficiency ratio(1) | 91.97 % | 98.92 % | 79.92 % | 79.56 % | 76.17 % | ||
Per Common Share Data: | |||||||
Earnings per common share - Basic | $ 0.11 | $ (0.94) | $ 0.05 | $ 0.14 | $ 0.10 | ||
Operating earnings per common share - Basic(1) | $ 0.14 | $ (0.98) | $ 0.08 | $ 0.18 | $ 0.11 | ||
Earnings per common share - Diluted | $ 0.11 | $ (0.94) | $ 0.05 | $ 0.14 | $ 0.10 | ||
Operating earnings per common share - Diluted(1) | $ 0.14 | $ (0.98) | $ 0.08 | $ 0.18 | $ 0.11 | ||
Book value per common share | $ 14.38 | $ 14.23 | $ 15.41 | $ 15.22 | $ 15.16 | ||
Tangible book value per common share(1) | $ 10.59 | $ 10.42 | $ 11.59 | $ 11.38 | $ 11.31 | ||
Cash dividend per common share | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | ||
Weighted average shares outstanding - Basic | 24,706,593 | 24,701,260 | 24,695,685 | 24,683,734 | 24,673,857 | ||
Weighted average shares outstanding - Diluted | 24,722,734 | 24,701,260 | 24,719,920 | 24,708,484 | 24,707,113 | ||
Shares outstanding at end of period | 24,722,734 | 24,722,734 | 24,722,734 | 24,708,234 | 24,708,588 | ||
Asset Quality Ratios: | |||||||
Non-performing assets as a percent of total assets, excluding SBA guarantees | 0.28 % | 0.29 % | 0.25 % | 0.25 % | 0.23 % | ||
Net charge-offs (recoveries) as a percent of average loans (annualized) | 1.47 % | 3.83 % | 0.93 % | 0.60 % | 0.64 % | ||
Core net charge-offs (recoveries) as a percent of average loans (annualized)(1) | 0.06 % | 0.05 % | 0.11 % | (0.07 %) | 0.10 % | ||
Allowance for credit losses to total loans | 1.45 % | 1.86 % | 1.72 % | 1.56 % | 1.66 % | ||
Capital Ratios: | |||||||
Common equity to assets | 9.67 % | 9.53 % | 9.47 % | 9.48 % | 9.63 % | ||
Tangible common equity to tangible assets(1) | 7.31 % | 7.16 % | 7.29 % | 7.27 % | 7.36 % | ||
Leverage ratio(2) | 8.17 % | 7.76 % | 8.20 % | 8.25 % | 8.38 % | ||
Common equity tier 1 capital ratio(2) | 8.88 % | 8.74 % | 8.23 % | 8.85 % | 8.98 % | ||
Tier 1 risk-based capital ratio(2) | 9.20 % | 9.05 % | 8.51 % | 9.14 % | 9.27 % | ||
Total risk-based capital ratio(2) | 12.56 % | 12.53 % | 11.68 % | 12.45 % | 12.62 % | ||
(1) See Reconciliation of Non-GAAP financial measures. | |||||||
(2) Ratios are estimated and may be subject to change pending the final filing of the FR Y-9C. | |||||||
Primis Financial Corp. | |||||||
(Dollars in thousands) | For Three Months Ended: | ||||||
Condensed Consolidated Balance Sheets (unaudited) | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | ||
Assets | |||||||
Cash and cash equivalents | $ 57,044 | $ 64,505 | $ 77,274 | $ 66,580 | $ 88,717 | ||
Investment securities-available for sale | 241,638 | 235,903 | 242,543 | 232,867 | 230,617 | ||
Investment securities-held to maturity | 9,153 | 9,448 | 9,766 | 10,649 | 10,992 | ||
Loans held for sale | 74,439 | 247,108 | 458,722 | 94,644 | 72,217 | ||
Loans receivable, net of deferred fees | 3,043,348 | 2,887,447 | 2,973,723 | 3,300,562 | 3,227,665 | ||
Allowance for credit losses | (44,021) | (53,724) | (51,132) | (51,574) | (53,456) | ||
Net loans | 2,999,327 | 2,833,723 | 2,922,591 | 3,248,988 | 3,174,209 | ||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 12,982 | 13,037 | 20,875 | 16,837 | 14,225 | ||
Bank premises and equipment, net | 19,217 | 19,432 | 19,668 | 19,946 | 20,412 | ||
Operating lease right-of-use assets | 10,352 | 10,279 | 10,465 | 10,293 | 10,206 | ||
Goodwill and other intangible assets | 93,804 | 94,124 | 94,444 | 94,768 | 95,092 | ||
Assets held for sale, net | 2,420 | 5,497 | 9,864 | 5,136 | 6,359 | ||
Bank-owned life insurance | 67,609 | 67,184 | 66,750 | 66,319 | 67,685 | ||
Deferred tax assets, net | 26,015 | 26,466 | 25,582 | 25,232 | 24,513 | ||
Consumer Program derivative asset | 1,597 | 4,511 | 7,146 | 9,929 | 10,685 | ||
Other assets | 62,004 | 58,898 | 58,657 | 63,830 | 64,050 | ||
Total assets | $ 3,677,601 | $ 3,690,115 | $ 4,024,347 | $ 3,966,018 | $ 3,889,979 | ||
Liabilities and stockholders' equity | |||||||
Demand deposits | $ 446,221 | $ 438,917 | $ 421,231 | $ 420,241 | $ 463,190 | ||
NOW accounts | 819,606 | 817,715 | 748,833 | 793,608 | 771,116 | ||
Money market accounts | 785,552 | 798,506 | 835,099 | 831,834 | 834,514 | ||
Savings accounts | 777,736 | 775,719 | 873,810 | 866,279 | 823,325 | ||
Time deposits | 330,210 | 340,178 | 427,458 | 423,501 | 422,778 | ||
Total deposits | 3,159,325 | 3,171,035 | 3,306,431 | 3,335,463 | 3,314,923 | ||
Securities sold under agreements to repurchase - short term | 4,019 | 3,918 | 3,677 | 3,273 | 3,038 | ||
Federal Home Loan Bank advances | - | - | 165,000 | 80,000 | 25,000 | ||
Secured borrowings | 16,729 | 17,195 | 17,495 | 21,069 | 21,298 | ||
Subordinated debt and notes | 95,949 | 95,878 | 95,808 | 95,737 | 95,666 | ||
Operating lease liabilities | 11,638 | 11,566 | 11,704 | 11,488 | 11,353 | ||
Other liabilities | 24,724 | 25,541 | 27,169 | 24,777 | 24,102 | ||
Total liabilities | 3,312,384 | 3,325,133 | 3,627,284 | 3,571,807 | 3,495,380 | ||
Total Primis common stockholders' equity | 355,602 | 351,756 | 381,022 | 376,047 | 374,577 | ||
Noncontrolling interest | 9,615 | 13,226 | 16,041 | 18,164 | 20,022 | ||
Total stockholders' equity | 365,217 | 364,982 | 397,063 | 394,211 | 394,599 | ||
Total liabilities and stockholders' equity | $ 3,677,601 | $ 3,690,115 | $ 4,024,347 | $ 3,966,018 | $ 3,889,979 | ||
Tangible common equity(1) | $ 261,798 | $ 257,632 | $ 286,578 | $ 281,279 | $ 279,485 | ||
Primis Financial Corp. | |||||||
(Dollars in thousands) | For Three Months Ended: | ||||||
Condensed Consolidated Statement of Operations (unaudited) | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | ||
Interest and dividend income | $ 47,723 | $ 51,338 | $ 57,104 | $ 52,191 | $ 50,336 | ||
Interest expense | 21,359 | 25,261 | 29,081 | 27,338 | 25,067 | ||
Net interest income | 26,364 | 26,077 | 28,023 | 24,853 | 25,269 | ||
Provision for credit losses | 1,596 | 33,483 | 7,511 | 3,119 | 6,508 | ||
Net interest income after provision for credit losses | 24,768 | (7,406) | 20,512 | 21,734 | 18,761 | ||
Account maintenance and deposit service fees | 1,339 | 1,276 | 1,398 | 1,780 | 1,330 | ||
Income from bank-owned life insurance | 425 | 434 | 431 | 981 | 564 | ||
Mortgage banking income | 5,615 | 5,140 | 6,803 | 6,402 | 5,574 | ||
Gain (loss) on sale of loans | - | (4) | - | (29) | 336 | ||
Gain on sale of Life Premium Finance portfolio, net of broker fees | - | 4,723 | - | - | - | ||
Consumer Program derivative | (292) | 928 | 79 | 1,272 | 2,041 | ||
Gain on other investments | 53 | 15 | 51 | 136 | 206 | ||
Other | 617 | 663 | 168 | 186 | 256 | ||
Noninterest income | 7,757 | 13,175 | 8,930 | 10,728 | 10,307 | ||
Employee compensation and benefits | 17,390 | 18,028 | 16,764 | 16,088 | 15,735 | ||
Occupancy and equipment expenses | 3,285 | 3,466 | 3,071 | 3,099 | 3,106 | ||
Amortization of intangible assets | 313 | 313 | 318 | 317 | 317 | ||
577 | 631 | 631 | 632 | 631 | |||
Data processing expense | 2,849 | 3,434 | 2,552 | 2,347 | 2,231 | ||
Marketing expense | 514 | 499 | 449 | 499 | 459 | ||
Telecommunication and communication expense | 287 | 295 | 330 | 341 | 346 | ||
Professional fees | 2,224 | 3,129 | 2,914 | 2,976 | 1,365 | ||
Miscellaneous lending expenses | 834 | 1,446 | 1,098 | 285 | 451 | ||
Gain (loss) on bank premises and equipment | 106 | 13 | (352) | (124) | - | ||
Other expenses | 4,137 | 6,587 | 2,828 | 3,202 | 2,897 | ||
Noninterest expense | 32,516 | 37,841 | 30,603 | 29,662 | 27,538 | ||
Income (loss) before income taxes | 9 | (32,072) | (1,161) | 2,800 | 1,530 | ||
Income tax expense (benefit) | 936 | (5,917) | (304) | 1,265 | 718 | ||
Net Income (loss) | (927) | (26,155) | (857) | 1,535 | 812 | ||
Noncontrolling interest | 3,602 | 2,820 | 2,085 | 1,901 | 1,654 | ||
Net income (loss) attributable to Primis' common shareholders | $ 2,675 | $ (23,335) | $ 1,228 | $ 3,436 | $ 2,466 | ||
(1) See Reconciliation of Non-GAAP financial measures. | |||||||
Primis Financial Corp. | |||||||
(Dollars in thousands) | For Three Months Ended: | ||||||
Loan Portfolio Composition | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | ||
Loans held for sale | $ 74,439 | $ 247,108 | $ 458,722 | $ 94,644 | $ 72,217 | ||
Loans secured by real estate: | |||||||
Commercial real estate - owner occupied | 477,233 | 475,898 | 463,848 | 463,328 | 458,026 | ||
Commercial real estate - non-owner occupied | 600,872 | 610,482 | 609,743 | 612,428 | 577,752 | ||
Secured by farmland | 3,742 | 3,711 | 4,356 | 4,758 | 4,341 | ||
Construction and land development | 104,301 | 101,243 | 105,541 | 104,886 | 146,908 | ||
Residential 1-4 family | 576,837 | 588,859 | 607,313 | 608,035 | 602,124 | ||
Multi-family residential | 157,443 | 158,426 | 169,368 | 171,512 | 128,599 | ||
Home equity lines of credit | 60,321 | 62,954 | 62,421 | 62,152 | 57,765 | ||
Total real estate loans | 1,980,749 | 2,001,573 | 2,022,590 | 2,027,099 | 1,975,515 | ||
Commercial loans | 698,097 | 608,595 | 533,998 | 619,365 | 623,804 | ||
Paycheck Protection Program loans | 1,738 | 1,927 | 1,941 | 1,969 | 2,003 | ||
Consumer loans | 357,652 | 270,063 | 409,754 | 646,590 | 620,745 | ||
Total Non-PCD loans | 3,038,236 | 2,882,158 | 2,968,283 | 3,295,023 | 3,222,067 | ||
PCD loans | 5,112 | 5,289 | 5,440 | 5,539 | 5,598 | ||
Total loans receivable, net of deferred fees | $ 3,043,348 | $ 2,887,447 | $ 2,973,723 | $ 3,300,562 | $ 3,227,665 | ||
Loans by Risk Grade: | |||||||
Pass Grade 1 - Highest Quality | 880 | 872 | 820 | 692 | 633 | ||
Pass Grade 2 - Good Quality | 175,379 | 175,659 | 177,763 | 488,728 | 412,593 | ||
Pass Grade 3 - Satisfactory Quality | 1,643,957 | 1,567,228 | 1,509,405 | 1,503,918 | 1,603,053 | ||
Pass Grade 4 - Pass | 1,124,901 | 1,041,947 | 1,184,671 | 1,204,268 | 1,177,065 | ||
Pass Grade 5 - Special Mention | 28,498 | 30,111 | 53,473 | 87,471 | 19,454 | ||
Grade 6 - Substandard | 69,733 | 71,630 | 47,591 | 15,485 | 14,867 | ||
Grade 7 - Doubtful | - | - | - | - | - | ||
Grade 8 - Loss | - | - | - | - | - | ||
Total loans | $ 3,043,348 | $ 2,887,447 | $ 2,973,723 | $ 3,300,562 | $ 3,227,665 | ||
(Dollars in thousands) | For Three Months Ended: | ||||||
Asset Quality Information | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | ||
Allowance for Credit Losses: | |||||||
Balance at beginning of period | $ (53,724) | $ (51,132) | $ (51,574) | $ (53,456) | $ (52,209) | ||
Provision for for credit losses | (1,596) | (33,483) | (7,511) | (3,119) | (6,508) | ||
Net charge-offs | 11,299 | 30,891 | 7,953 | 5,001 | 5,261 | ||
Ending balance | $ (44,021) | $ (53,724) | $ (51,132) | $ (51,574) | $ (53,456) | ||
Reserve for Unfunded Commitments: | |||||||
Balance at beginning of period | $ (1,121) | $ (1,127) | $ (1,031) | $ (1,577) | $ (1,579) | ||
(Expense for) / recovery of unfunded loan commitment reserve | (13) | 6 | (96) | 546 | 2 | ||
Total Reserve for Unfunded Commitments | $ (1,134) | $ (1,121) | $ (1,127) | $ (1,031) | $ (1,577) | ||
Non-Performing Assets: | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | ||
Nonaccrual loans | $ 12,956 | $ 15,026 | $ 14,424 | $ 11,289 | $ 10,139 | ||
Accruing loans delinquent 90 days or more | 1,713 | 1,713 | 1,714 | 1,897 | 1,714 | ||
Total non-performing assets | $ 14,669 | $ 16,739 | $ 16,138 | $ 13,186 | $ 11,853 | ||
SBA guaranteed portion of non-performing loans | $ 4,307 | $ 5,921 | $ 5,954 | $ 3,268 | $ 3,095 | ||
Primis Financial Corp. | |||||||
(Dollars in thousands) | For Three Months Ended: | ||||||
Average Balance Sheet | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | ||
Assets | |||||||
Loans held for sale | $ 170,509 | $ 100,243 | $ 98,110 | $ 84,389 | $ 58,896 | ||
Loans, net of deferred fees | 2,897,481 | 3,127,249 | 3,324,157 | 3,266,651 | 3,206,888 | ||
Investment securities | 245,216 | 253,120 | 242,631 | 244,308 | 241,179 | ||
Other earning assets | 86,479 | 96,697 | 83,405 | 73,697 | 77,067 | ||
Total earning assets | 3,399,685 | 3,577,309 | 3,748,303 | 3,669,045 | 3,584,030 | ||
Other assets | 238,592 | 237,704 | 243,715 | 243,196 | 248,082 | ||
Total assets | $ 3,638,277 | $ 3,815,013 | $ 3,992,018 | $ 3,912,241 | $ 3,832,112 | ||
Liabilities and equity | |||||||
Demand deposits | $ 436,857 | $ 437,388 | $ 421,908 | $ 433,315 | $ 458,306 | ||
Interest-bearing liabilities: | |||||||
NOW and other demand accounts | 805,522 | 787,884 | 748,202 | 778,458 | 773,943 | ||
Money market accounts | 788,067 | 819,803 | 859,988 | 823,156 | 814,147 | ||
Savings accounts | 754,304 | 767,342 | 866,375 | 866,652 | 800,328 | ||
Time deposits | 335,702 | 404,682 | 425,238 | 423,107 | 431,340 | ||
Total Deposits | 3,120,452 | 3,217,099 | 3,321,711 | 3,324,688 | 3,278,064 | ||
Borrowings | 116,955 | 160,886 | 238,994 | 158,919 | 120,188 | ||
Total Funding | 3,237,407 | 3,377,985 | 3,560,705 | 3,483,607 | 3,398,252 | ||
Other Liabilities | 38,465 | 39,566 | 36,527 | 34,494 | 34,900 | ||
Total liabilites | 3,275,872 | 3,417,551 | 3,597,232 | 3,518,101 | 3,433,152 | ||
Primis common stockholders' equity | 350,423 | 382,370 | 377,314 | 374,731 | 378,008 | ||
Noncontrolling interest | 11,982 | 15,092 | 17,472 | 19,409 | 20,952 | ||
Total stockholders' equity | 362,405 | 397,462 | 394,786 | 394,140 | 398,960 | ||
Total liabilities and stockholders' equity | $ 3,638,277 | $ 3,815,013 | $ 3,992,018 | $ 3,912,241 | $ 3,832,112 | ||
Net Interest Income | |||||||
Loans held for sale | $ 2,564 | $ 1,553 | $ 1,589 | $ 1,521 | $ 907 | ||
Loans | 42,400 | 46,831 | 52,699 | 48,024 | 46,816 | ||
Investment securities | 1,906 | 1,894 | 1,799 | 1,805 | 1,715 | ||
Other earning assets | 853 | 1,060 | 1,017 | 841 | 898 | ||
Total Earning Assets Income | 47,723 | 51,338 | 57,104 | 52,191 | 50,336 | ||
Non-interest bearing DDA | - | - | - | - | - | ||
NOW and other interest-bearing demand accounts | 4,515 | 4,771 | 4,630 | 4,827 | 4,467 | ||
Money market accounts | 5,420 | 6,190 | 7,432 | 6,788 | 6,512 | ||
Savings accounts | 6,418 | 7,587 | 8,918 | 8,912 | 8,045 | ||
Time deposits | 3,039 | 4,127 | 4,371 | 4,095 | 3,990 | ||
Total Deposit Costs | 19,392 | 22,675 | 25,351 | 24,622 | 23,014 | ||
Borrowings | 1,967 | 2,586 | 3,730 | 2,716 | 2,053 | ||
Total Funding Costs | 21,359 | 25,261 | 29,081 | 27,338 | 25,067 | ||
Net Interest Income | $ 26,364 | $ 26,077 | $ 28,023 | $ 24,853 | $ 25,269 | ||
Net Interest Margin | |||||||
Loans held for sale | 6.10 % | 6.16 % | 6.44 % | 7.25 % | 6.19 % | ||
Loans | 5.93 % | 5.96 % | 6.31 % | 5.91 % | 5.87 % | ||
Investments | 3.15 % | 2.98 % | 2.95 % | 2.97 % | 2.86 % | ||
Other Earning Assets | 4.00 % | 4.36 % | 4.85 % | 4.59 % | 4.69 % | ||
Total Earning Assets | 5.69 % | 5.71 % | 6.06 % | 5.72 % | 5.65 % | ||
NOW | 2.27 % | 2.41 % | 2.46 % | 2.49 % | 2.32 % | ||
MMDA | 2.79 % | 3.00 % | 3.44 % | 3.32 % | 3.22 % | ||
Savings | 3.45 % | 3.93 % | 4.10 % | 4.14 % | 4.04 % | ||
CDs | 3.67 % | 4.06 % | 4.09 % | 3.89 % | 3.72 % | ||
Cost of Interest Bearing Deposits | 2.93 % | 3.25 % | 3.48 % | 3.42 % | 3.28 % | ||
Cost of Deposits | 2.52 % | 2.80 % | 3.04 % | 2.98 % | 2.82 % | ||
Other Funding | 6.82 % | 6.39 % | 6.22 % | 6.89 % | 6.90 % | ||
Total Cost of Funds | 2.68 % | 2.97 % | 3.25 % | 3.16 % | 2.97 % | ||
Net Interest Margin | 3.15 % | 2.90 % | 2.97 % | 2.72 % | 2.84 % | ||
Net Interest Spread | 2.60 % | 2.30 % | 2.37 % | 2.11 % | 2.22 % | ||
Primis Financial Corp. | |||||||
(Dollars in thousands, except per share data) | For Three Months Ended: | ||||||
Reconciliation of Non-GAAP items: | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | 1Q 2024 | ||
Net income (loss) attributable to Primis' common shareholders | $ 2,675 | $ (23,335) | $ 1,228 | $ 3,436 | $ 2,466 | ||
Non-GAAP adjustments to Net Income: | |||||||
Branch Consolidation / Other restructuring | 144 | - | - | - | - | ||
Professional fee expense related to accounting matters and LPF sale | 893 | 1,782 | 1,352 | 1,453 | 438 | ||
Gains on sale of closed bank branch buildings | 107 | - | (352) | (124) | - | ||
Gain on sale of Life Premium Finance portfolio, net of broker fees | - | (4,723) | - | - | - | ||
Consumer program fraud losses | - | 1,904 | - | - | - | ||
Income tax effect | (247) | 224 | (216) | (287) | (95) | ||
Net income (loss) attributable to Primis' common shareholders adjusted for | $ 3,572 | $ (24,148) | $ 2,012 | $ 4,478 | $ 2,809 | ||
Net income (loss) attributable to Primis' common shareholders | $ 2,675 | $ (23,335) | $ 1,228 | $ 3,436 | $ 2,466 | ||
Income tax expense (benefit) | 936 | (5,917) | (304) | 1,265 | 718 | ||
Provision for credit losses (incl. unfunded commitment expense) | 1,609 | 33,477 | 7,607 | 2,573 | 6,506 | ||
Pre-tax pre-provision earnings | $ 5,220 | $ 4,225 | $ 8,531 | $ 7,274 | $ 9,690 | ||
Effect of adjustment for nonrecurring income and expenses | 1,144 | (1,037) | 1,000 | 1,329 | 438 | ||
Pre-tax pre-provision operating earnings | $ 6,364 | $ 3,188 | $ 9,531 | $ 8,603 | $ 10,128 | ||
Return on average assets | 0.30 % | (2.43 %) | 0.12 % | 0.35 % | 0.26 % | ||
Effect of adjustment for nonrecurring income and expenses | 0.10 % | (0.08 %) | 0.08 % | 0.11 % | 0.03 % | ||
Operating return on average assets | 0.40 % | (2.51 %) | 0.20 % | 0.46 % | 0.29 % | ||
Return on average assets | 0.30 % | (2.43 %) | 0.12 % | 0.35 % | 0.26 % | ||
Effect of tax expense | 0.10 % | (0.62 %) | (0.03 %) | 0.13 % | 0.08 % | ||
Effect of provision for credit losses (incl. unfunded commitment expense) | 0.18 % | 3.49 % | 0.77 % | 0.27 % | 0.68 % | ||
Pre-tax pre-provision return on average assets | 0.58 % | 0.44 % | 0.86 % | 0.75 % | 1.02 % | ||
Effect of adjustment for nonrecurring income and expenses and expenses | 0.13 % | (0.11 %) | 0.10 % | 0.10 % | 0.04 % | ||
Pre-tax pre-provision operating return on average assets | 0.71 % | 0.33 % | 0.96 % | 0.85 % | 1.06 % | ||
Return on average common equity | 3.10 % | (24.28 %) | 1.31 % | 3.69 % | 2.59 % | ||
Effect of adjustment for nonrecurring income and expenses | 1.04 % | (0.85 %) | 0.84 % | 1.12 % | 0.36 % | ||
Operating return on average common equity | 4.14 % | (25.13 %) | 2.15 % | 4.81 % | 2.95 % | ||
Effect of goodwill and other intangible assets | 1.51 % | (8.20 %) | 0.71 % | 1.61 % | 0.99 % | ||
Operating return on average tangible common equity | 5.65 % | (33.33 %) | 2.86 % | 6.42 % | 3.94 % | ||
Efficiency ratio | 95.30 % | 96.36 % | 82.98 % | 83.42 % | 77.41 % | ||
Effect of adjustment for nonrecurring income and expenses | (3.33 %) | 2.54 % | (2.87 %) | (3.79 %) | (1.24 %) | ||
Operating efficiency ratio | 91.97 % | 98.90 % | 80.11 % | 79.63 % | 76.17 % | ||
Earnings per common share - Basic | $ 0.11 | $ (0.94) | $ 0.05 | $ 0.14 | $ 0.10 | ||
Effect of adjustment for nonrecurring income and expenses | 0.03 | (0.04) | 0.03 | 0.04 | 0.01 | ||
Operating earnings per common share - Basic | $ 0.14 | $ (0.98) | $ 0.08 | $ 0.18 | $ 0.11 | ||
Earnings per common share - Diluted | $ 0.11 | $ (0.94) | $ 0.05 | $ 0.14 | $ 0.10 | ||
Effect of adjustment for nonrecurring income and expenses | 0.03 | (0.04) | 0.03 | 0.04 | 0.01 | ||
Operating earnings per common share - Diluted | $ 0.14 | $ (0.98) | $ 0.08 | $ 0.18 | $ 0.11 | ||
Book value per common share | $ 14.38 | $ 14.23 | $ 15.41 | $ 15.22 | $ 15.16 | ||
Effect of goodwill and other intangible assets | (3.79) | (3.81) | (3.82) | (3.84) | (3.85) | ||
Tangible book value per common share | $ 10.59 | $ 10.42 | $ 11.59 | $ 11.38 | $ 11.31 | ||
Net charge-offs (recoveries) as a percent of average loans (annualized) | 1.47 % | 3.83 % | 0.93 % | 0.60 % | 0.64 % | ||
Impact of third-party consumer portfolio | (1.41 %) | (3.78 %) | (0.82 %) | (0.67 %) | (0.54 %) | ||
Core net charge-offs (recoveries) as a percent of average loans (annualized) | 0.06 % | 0.05 % | 0.11 % | (0.07 %) | 0.10 % | ||
Total Primis common stockholders' equity | $ 355,602 | $ 351,756 | $ 381,022 | $ 376,047 | $ 374,577 | ||
Less goodwill and other intangible assets | (93,804) | (94,124) | (94,444) | (94,768) | (95,092) | ||
Tangible common equity | $ 261,798 | $ 257,632 | $ 286,578 | $ 281,279 | $ 279,485 | ||
Common equity to assets | 9.67 % | 9.53 % | 9.47 % | 9.48 % | 9.63 % | ||
Effect of goodwill and other intangible assets | (2.36 %) | (2.37 %) | (2.18 %) | (2.21 %) | (2.27 %) | ||
Tangible common equity to tangible assets | 7.31 % | 7.16 % | 7.29 % | 7.27 % | 7.36 % | ||
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SOURCE Primis Financial Corp.
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