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Primis Financial Corp. Reports Earnings per Share for the Fourth Quarter of 2024

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Primis Financial Corp. (NASDAQ: FRST) reported a net loss of $14.7 million ($0.59 per share) for Q4 2024, compared to a loss of $8.2 million ($0.33 per share) in Q4 2023. For the full year 2024, the company posted a net loss of $7.5 million ($0.31 per share).

Key strategic moves in Q4 2024 included: moving a third-party consumer loan portfolio to held for sale with substantial marks, selling the Life Premium Finance business, and launching a mortgage warehouse lending business. The company's core operations now comprise a community bank with $2.2 billion in low-cost deposits, a retail mortgage company with $800 million in 2024 production, national mortgage warehouse and construction lending operations, and Panacea Financial.

The company ceased originating new consumer loans effective January 31, 2025, and moved $133 million of the portfolio to loans held for sale, resulting in $20.0 million in additional provision expense and charge-offs in Q4 2024.

Primis Financial Corp. (NASDAQ: FRST) ha riportato una perdita netta di 14,7 milioni di dollari (0,59 dollari per azione) per il quarto trimestre del 2024, rispetto a una perdita di 8,2 milioni di dollari (0,33 dollari per azione) nel quarto trimestre del 2023. Per l'intero anno 2024, l'azienda ha registrato una perdita netta di 7,5 milioni di dollari (0,31 dollari per azione).

Tra le principali mosse strategiche nel quarto trimestre del 2024 ci sono state: il trasferimento di un portafoglio di prestiti al consumo di terzi in pronta vendita con segni significativi, la vendita dell'attività di finanziamento di premi di vita e il lancio di un'attività di prestiti per magazzini ipotecari. Le operazioni principali dell'azienda ora comprendono una banca comunitaria con 2,2 miliardi di dollari in depositi a basso costo, una società di mutui al dettaglio con 800 milioni di dollari di produzione nel 2024, operazioni nazionali di magazzini ipotecari e prestiti per costruzione, e Panacea Financial.

L'azienda ha cessato l'emissione di nuovi prestiti al consumo a partire dal 31 gennaio 2025, spostando 133 milioni di dollari del portafoglio a prestiti destinati alla vendita, con una conseguente spesa previdenziale aggiuntiva di 20 milioni di dollari e cancellazioni nel quarto trimestre del 2024.

Primis Financial Corp. (NASDAQ: FRST) reportó una pérdida neta de 14,7 millones de dólares (0,59 dólares por acción) para el cuarto trimestre de 2024, en comparación con una pérdida de 8,2 millones de dólares (0,33 dólares por acción) en el cuarto trimestre de 2023. Para todo el año 2024, la compañía registró una pérdida neta de 7,5 millones de dólares (0,31 dólares por acción).

Los movimientos estratégicos clave en el cuarto trimestre de 2024 incluyeron: mover un portafolio de préstamos al consumo de terceros a disponible para la venta con marcas sustanciales, vender el negocio de financiamiento de primas de vida y lanzar un negocio de préstamos para almacenes hipotecarios. Las operaciones centrales de la empresa ahora incluyen un banco comunitario con 2,2 mil millones de dólares en depósitos de bajo costo, una compañía de hipotecas al por menor con 800 millones de dólares en producción de 2024, operaciones nacionales de préstamos para almacenes hipotecarios y construcción, y Panacea Financial.

La compañía dejó de originar nuevos préstamos al consumo a partir del 31 de enero de 2025, y trasladó 133 millones de dólares de la cartera a préstamos mantenidos para la venta, lo que resultó en un gasto adicional de provisión de 20,0 millones de dólares y cancelaciones en el cuarto trimestre de 2024.

프리미스 파이낸셜 코퍼레이션 (NASDAQ: FRST)은 2024년 4분기에 1,470만 달러(주당 0.59 달러)의 순손실을 기록했으며, 이는 2023년 4분기에 820만 달러(주당 0.33 달러)의 손실과 비교됩니다. 2024년 전체 연도 동안 회사는 750만 달러(주당 0.31 달러)의 순손실을 보고했습니다.

2024년 4분기 주요 전략적 조치는 제3자 소비자 대출 포트폴리오를 본격 매각 준비 상태로 전환하는 것과 상당한 손실을 반영하는 것, 생명 보험료 재정 지원 사업의 매각, 그리고 주택 담보 대출 창고 사업의 출범이 포함되었습니다. 현재 회사의 핵심 운영에는 22억 달러의 저비용 예금을 보유한 커뮤니티 뱅크, 2024년 8억 달러의 생산 능력을 가진 소매 모기지 회사, 국가적 주택 담보 대출 및 건설 대출 운영, 그리고 파나세아 파이낸셜이 포함됩니다.

회사는 2025년 1월 31일부로 새로운 소비자 대출의 발행을 중단하고, 포트폴리오의 1억 3,300만 달러를 판매용 대출로 전환하였으며, 이로 인해 2024년 4분기에 2천만 달러의 추가 충당금 비용과 상각이 발생했습니다.

Primis Financial Corp. (NASDAQ: FRST) a annoncé une perte nette de 14,7 millions de dollars (0,59 dollar par action) pour le quatrième trimestre de 2024, par rapport à une perte de 8,2 millions de dollars (0,33 dollar par action) au quatrième trimestre de 2023. Pour l'année entière 2024, la société a enregistré une perte nette de 7,5 millions de dollars (0,31 dollar par action).

Les principales mesures stratégiques du quatrième trimestre 2024 comprenaient : le transfert d'un portefeuille de prêts à la consommation d'un tiers à la vente avec des marques substantielles, la vente de l'activité de financement des primes d'assurance vie et le lancement d'une activité de prêt pour les entrepôts hypothécaires. Les opérations principales de l'entreprise comprennent désormais une banque communautaire avec 2,2 milliards de dollars de dépôts à faible coût, une société de prêts hypothécaires de détail avec 800 millions de dollars de production en 2024, des opérations nationales de prêts pour entrepôts hypothécaires et de construction, ainsi que Panacea Financial.

La société a cessé d'émettre de nouveaux prêts à la consommation à compter du 31 janvier 2025, et a transféré 133 millions de dollars du portefeuille vers des prêts destinés à la vente, entraînant des dépenses supplémentaires de 20,0 millions de dollars pour provisions et des dépôts en perte au quatrième trimestre 2024.

Primis Financial Corp. (NASDAQ: FRST) hat für das vierte Quartal 2024 einen Nettoverlust von 14,7 Millionen Dollar (0,59 Dollar pro Aktie) gemeldet, verglichen mit einem Verlust von 8,2 Millionen Dollar (0,33 Dollar pro Aktie) im vierten Quartal 2023. Für das gesamte Jahr 2024 verzeichnete das Unternehmen einen Nettoverlust von 7,5 Millionen Dollar (0,31 Dollar pro Aktie).

Zu den wichtigen strategischen Maßnahmen im vierten Quartal 2024 gehörten: die Verlagerung eines Portfolios von Verbraucherkrediten eines Drittanbieters in den Verkauf mit erheblichen Abwertungen, der Verkauf des Geschäfts mit Lebensversicherungsprämienfinanzierungen und die Einführung eines Hypothekenlagerkreditgeschäfts. Die Hauptaktivitäten des Unternehmens umfassen jetzt eine Gemeinschaftsbank mit 2,2 Milliarden Dollar an kostengünstigen Einlagen, ein Einzelhandelshypothekenunternehmen mit 800 Millionen Dollar an Produktionsmitteln im Jahr 2024, nationale Hypothekenlager- und Baufinanzierungsoperationen sowie Panacea Financial.

Das Unternehmen hat die Vergabe neuer Verbraucherkredite ab dem 31. Januar 2025 eingestellt und 133 Millionen Dollar des Portfolios in Kredite für den Verkauf umgewandelt, was im vierten Quartal 2024 zu zusätzlichen Rückstellungen in Höhe von 20,0 Millionen Dollar und Abschreibungen führte.

Positive
  • Mortgage production increased to $800M in 2024 from $600M in 2023, with projected growth to $1.25B in 2025
  • Core bank maintains low cost of deposits at 1.87%, up to 100bps lower than regional peers
  • Loan pipeline increased to $119M (88% new customers) from $51M in 2023
  • Digital platform grew to 18,000 customers with nearly $1B in deposits
  • Panacea Financial division grew loans 11% QoQ to $434M
Negative
  • Q4 2024 net loss of $14.7M ($0.59 per share), worse than Q4 2023 loss of $8.2M
  • Full year 2024 net loss of $7.5M ($0.31 per share)
  • Consumer Program resulted in $20.0M provision expense and charge-offs in Q4 2024
  • Net interest income decreased 7% QoQ to $26.1M in Q4 2024
  • Total deposits decreased to $3.17B from $3.31B QoQ

Insights

The Q4 2024 results reveal a complex transition period for Primis Financial, marked by decisive but costly strategic moves to address underperforming segments. The $20.0 million hit from consumer loan portfolio restructuring, while painful, represents a necessary step to improve future earnings quality.

Three key strategic pivots deserve attention:

  • The launch of mortgage warehouse lending, projected to add 0.15% to ROA, represents a lower-risk revenue stream with attractive yields at SOFR + 3.40%
  • The digital banking platform has achieved impressive scale with $981 million in deposits across 18,000 accounts, demonstrating efficient customer acquisition
  • The Panacea division's 11% quarterly loan growth to $434 million shows strong momentum in the specialized healthcare lending niche

The core bank's funding advantage is particularly noteworthy, with deposit costs 1.87% running up to 100 basis points below similar-sized peers. Recent deposit repricing should drive $6.5 million in annual savings, significantly boosting net interest margin.

Management's articulated path to a 0.95% ROA appears credible, built on tangible improvements already in motion rather than speculative gains. The strengthening loan pipeline, up 133% year-over-year with 88% new customers, suggests momentum in core lending activities.

Declares Quarterly Cash Dividend of $0.10 Per Share

MCLEAN, Va., Jan. 28, 2025 /PRNewswire/ -- Primis Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), and its wholly-owned subsidiary, Primis Bank (the "Bank"), today reported a net loss available to common shareholders of $14.7 million or $0.59 loss per basic and diluted share for the quarter ended December 31, 2024, compared to a net loss available to common shareholders of $8.2 million or $0.33 loss per basic and diluted share for the quarter ended December 31, 2023.   For the full year of 2024, the Company reported a net loss available to common shareholders and loss per basic and diluted share of $7.5 million and $0.31, respectively, compared to a loss of $7.8 million and $0.32, respectively, in 2023.  Earnings for the three month and year-to-date periods of 2024 are highly affected by the Company's decision to move a third-party originated consumer loan portfolio to held for sale in the fourth quarter of 2024 as described further below.

Strategic Options to Maximize Value

Dennis J. Zember, Jr., President and Chief Executive Officer of Primis commented, "In the fourth quarter of 2024, we made several moves that were costly, but should better position the Company to maximize its strategic value.  These moves in the current quarter include neutralizing the credit impacts of the consumer loan book by moving the majority of it to held for sale with substantial marks.  Additionally, we sold our Life Premium Finance business and launched a meaningful mortgage warehouse lending business that should add up to 15 basis points of additional return on assets once it reaches scale in 2025."

With the third-party consumer book marked, the Company is exploring various avenues to maximize its shareholder value. These include decisions needed to drive higher earnings and operating results that should no longer be overshadowed by the consumer portfolio's credit costs.  Secondly, a more determined effort to highlight the value and opportunity in the core community bank with its funding advantage and growth opportunities.  Lastly, moving to deconsolidate Panacea Financial Holdings and realize the economic gain which management believes has improved substantially since the unrealized $19.6 million market value at December 31, 2023.  Other avenues are being explored alongside these operating strategies that would accelerate the recognition of unrealized market value in the Company.

Strategic Repositioning

The Company spent substantial time and energy in 2024 focusing the organization toward business lines it believes can drive the greatest long-term profitability and growth.  Activities included continued moves to enhance operating leverage in the core bank, lender recruitment and scaling in mortgage, relieving balance sheet pressure through the sale of Life Premium Finance, leveraging existing infrastructure to expand the mortgage warehouse lending division and neutralizing the credit cost impact of the third-party consumer loan program.  The result of these moves is a significantly more focused organization comprised of:

  • A core community bank in strong markets with $2.2 billion of low-cost customer deposits and low commercial real estate concentrations;
  • A retail mortgage company that has grown in the face of industry pressures, reaching approximately $800 million of production in 2024 and poised to reach approximately $1.25 billion of production in 2025;
  • A national strategy that combines lower risk mortgage warehouse and construction-to-perm lending funded by a unique digital platform; and
  • The nation's leading healthcare-focused financial services brand in Panacea Financial whose already out-sized growth continues to accelerate and the market value of which is not reflected in the Company's capital.

The following discussion highlights the near-term opportunity for each of these strategies.

Core Community Bank

The core bank has 24 banking offices in Virginia and Maryland and finished 2024 with $2.2 billion of customer deposits. The core bank's cost of deposits of 1.87% at 2024 year-end is lower than most of its larger regional bank competitors and up to 100 basis points lower than equal sized peers in the greater Washington, D.C. region.  The Bank's proprietary V1BE service directly supports approximately $200 million of checking accounts and is driving growth in new relationships focused on commercial and consumer checking accounts.

The Bank has reorganized its lending team and added selective hires in key markets.  Early signs of success from these efforts can be found in the loan pipeline which ended 2024 at approximately $119 million with 88% of that amount representing new customers to the Bank versus $51 million and 21%, respectively, at the end of 2023.  The Bank's loan portfolio is diversified across the footprint and is well below regulatory concentration limits for commercial real estate. 

Primis Mortgage

Primis Mortgage earned approximately $2.6 million pre-tax in 2024, including its managed portfolio, versus immaterial earnings in 2023.  Primis Mortgage had approximately $800 million of production in 2024 versus approximately $600 million of production the prior year.  Continued recruiting and operational improvements have current applications, locks and closings 40% to 50% higher than the same month a year ago and the Company anticipates production of $1.25 billion in the current rate environment.  Not included in this outlook is the impact of the Bank's new construction-to-perm builder partnerships focused on government lending that should generate additional volume with strong profitability metrics.

National Strategies

With the sale of Life Premium Finance, the Company is focusing its national lending strategies on mortgage warehouse lending and a new partnership with a national builder leveraging the Bank's existing construction-to-perm loan product.

While the Bank had mortgage warehouse lending capabilities, activity was insignificant until the team build-out in the fall of 2024.  As of the end of January 2025, the team has grown to 54 approved customers with over $400 million of committed lines.  Average yield, including fees, was SOFR plus 340 basis points in December.   In addition to a growing customer pipeline, the mortgage warehouse team also plans to augment its growth with selective mortgage servicing rights ("MSR") relationships through 2025.

The Bank also recently gained preferred lender status with a national builder by leveraging its one-time-close construction-to-permanent mortgage product.  The partner builder had loan volume of $15 billion in 2024 and has approved the Bank to work with 85 of its offices across the country.  Pricing on the mortgages is generally Prime or better with 50 to 100 basis points of fees and are based on government programs that make the mortgages eligible for sale in the secondary market (via Primis Mortgage).

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.  Since the launch in November 2022, the platform has grown to 18 thousand customers with just under $1 billion of deposits priced around Fed Funds after the most recent rate adjustment.  The Bank is leveraging the technology underpinning its digital platform to launch a unique affinity brand in March 2025.  This brand will leverage well-known ambassadors and influencers to drive adoption of attractive deposit products in a unique niche.  The Company believes this strategy is highly replicable and has the potential to be a significant driver of growth in the next few years.

Panacea Financial

Panacea's growth accelerated to end 2024 with loans outstanding up 11% from the third quarter of 2024 to $434 million funded by $92 million of deposits attributable to the division.  Panacea is the number one ranked "Bank for doctors" on Google and banks approximately 6,000 professionals and practices nationwide with a goal of reaching 10,000 customers by the end of 2025.  Panacea is utilizing the proceeds of the Panacea Financial Holdings capital raise from late 2023 to develop the initial phase of what is expected to be a sophisticated suite of technology products and services targeting the medical, dental and veterinary space.  As previously disclosed, the Company owns approximately 19% of Panacea Financial Holdings and the value of our ownership was almost $20 million at the time of the capital raise. 

Consumer Loan Program Winddown

As disclosed previously, the Company has originated consumer loans through a third-party (the "Consumer Program") since the second half of 2021.  A subset of the Consumer Program has promotional characteristics where interest is deferred during the promotional period and is waived if the customer pays off the loan prior to the period end.  In that event, the third-party reimburses the Bank for the waived interest.  Until the end of the promotional period, the Company is unable to accrue interest on the loan under GAAP but does record a derivative representing the fair value of expected interest reimbursements from the third-party.  Credit costs are also included in the Company's results, including estimated life of loan losses required by ASC 326 while potential credit enhancements from the Consumer Program are only reflected as received.  Outstanding balances in the Consumer Program before fair value marks were $173 million as of December 31, 2024 with $39 million of balances in a promotional period versus $180 million and $60 million, respectively, at September 30, 2024.

In the fourth quarter of 2024, the Company made the decision to cease originating new loans under the Consumer Program effective January 31, 2025 and moved a large portion of the portfolio, with an amortized cost of $133 million, to loans held for sale and marked them to fair market value.  The adjustment to fair market value resulted in additional provision expense and charge-offs of $20.0 million in the fourth quarter of 2024.  The remaining portion of the portfolio still classified as held for investment of approximately $39 million at December 31, 2024 has an associated allowance for credit losses of approximately $10 million and is expected to run off substantially in 2025.   The table below highlights the drag on 2024 profitability from the program:

Contribution ($000)

Q4 '24

2024

Net Interest Income

288

2,430

Provision Expense

(20,842)

(34,025)

Noninterest Income

928

4,320

Noninterest Expense

(1,827)

(2,660)




Pre-Tax Contribution

($21,452)

($29,935)

Outlook

Mr. Zember commented, "The Company's strategies are profitable and remarkably scalable given our size.  We operate a successful and valuable community bank and lines of business that can deliver outsized growth and profits relative to our size.  As seen below, we have already made the moves necessary to deliver attractive operating results and clearing the deck of the consumer loan noise was necessary for these results to be apparent. "

Reported 2024 ROAA

(0.19)

%


Consumer Program Credit Costs

0.69



Lost Revenue on Promo Balances (@ 8%)

0.12



Gain on LPF sale

(0.10)



Nonrecurring Items (Restatements/Legal)

0.13







Adjusted 2024 ROAA

0.65

%






Other Profitability Improvements Already Made and Potential Impact on 2025 Results:




Trading out LPF for Mortgage Warehouse

0.15

%


Mortgage Volume Run Rate Over 2024

0.09



Incremental Funding Rate Savings Since Dec. 2024

0.06



Net Interest Income

Net interest income decreased approximately $1.9 million, or 7%, to $26.1 million during the fourth quarter of 2024 compared to the third quarter of 2024. Material items impacting the fourth quarter level of net interest income were $2.5 million of interest reversals on charged off Consumer Program loans and approximately $1.3 million of decline related to sale of the Life Premium Finance portfolio as of October 31, 2024.  Higher spreads between loans and deposits were achieved through the quarter as deposit rates fell by approximately 20 basis points in the core Bank which mostly neutralized the impact of the sold Life Premium Finance portfolio.  On a recurring basis excluding the impact of prior quarter reversals, net interest income would have been $28.6 million compared to $28.0 million in the third quarter of 2024 and up 11.3% compared to $25.7 million in the fourth quarter of 2023.  Excluding the interest reversal described above, net interest margin for the fourth quarter of 2024 would have been 3.18% compared to 2.86% in the fourth quarter of 2023.

Interest income, adjusted for the interest reversals noted above, was $53.9 million for the fourth quarter of 2024, higher by 7.4% when compared to $50.2 million in the same quarter in 2023.  When adjusted for the interest reversals yield on earning assets was 5.99% in the fourth quarter of 2024 compared to 5.58% in the same quarter in 2023.  In 2025, the Company has approximately $350 million of loans with a weighted average yield of 5.90% subject to repricing that indicate some level of opportunity for continued increases in interest income.

The pace of declines in interest expense alongside steady levels of interest income accelerated in the fourth quarter and indicates stronger profitability moving into 2025.  Cost of deposits decreased 24 basis points to 2.80% in the fourth quarter of 2024 from 3.04% in the third quarter of 2024 and did not include lower costs on almost $1 billion of digital deposits that repriced late in December 2024 and early in January 2025.  Deposit costs on digital deposits have declined by approximately 65 basis points compared to fourth quarter levels implying additional savings of approximately $6.5 million annually.

Noninterest Income

Noninterest income was $13.2 million in the fourth quarter of 2024 versus $9.3 million in the third quarter of 2024.  Excluding the net gain from the Life Premium Finance sale, noninterest income decreased to $8.4 million in the fourth quarter of 2024.  Income from mortgage banking activity decreased $1.8 million during the fourth quarter of 2024 due to seasonally lower activity.  Partially offsetting the decrease in mortgage banking income was an increase of $0.8 million in fee income related to the Consumer Program net of changes in the associated derivative fair market value.  The fourth quarter of 2024 also had a $13 thousand loss on disposal of bank property versus $0.4 million of gains in the third quarter of 2024.

Noninterest Expense

Noninterest expense was $37.2 million for the fourth quarter of 2024, compared to $31.0 million for the third quarter of 2024. Noninterest expense also includes consolidated expenses from Panacea Financial Holdings ("PFH"). Management considers the core expense burden of the Bank that adjusts for certain items that are volume dependent such as mortgage banking-related expenses or expense related to changes in the reserve for unfunded commitments.  The following table illustrates the Company's core operating expense burden during 2024:


4Q 2024

3Q 2024

2Q 2024

1Q 2024

4Q 2023







 Reported Noninterest Expense

37,174

30,955

29,786

27,538

27,780

 PFH Consolidated Expenses

(3,641)

(2,576)

(2,347)

(2,119)

(2,813)

 Noninterest Expense Excl. PFH

33,533

28,379

27,439

25,419

24,967







 Nonrecurring / Cons. Prog. Fraud Loss

(3,032)

(1,352)

(1,453)

(438)

(165)

 Primis Mortgage Expenses

(6,354)

(6,436)

(6,084)

(5,122)

(4,785)

 Consumer Program Servicing Fee

(681)

(699)

(312)

(312)

(312)

 Reserve for Unfunded Commitment

6

(96)

546

2

(554)

 Total Adjustments

(10,061)

(8,583)

(7,303)

(5,870)

(5,816)







 Core Operating Expense Burden

23,472

19,796

20,136

19,549

19,151

As noted above, the core expense burden increased $3.7 million in the fourth quarter of 2024 from the third quarter of 2024.  Contributing to the increase was $1.0 million increase in compensation-related accruals, including restricted stock expense and mortgage warehouse signing bonuses, $0.4 million of miscellaneous lending expense, $0.3 million increase in FDIC insurance expense and other consulting expenses and implementation fees related to various technology projects.  Many of these expense items are expected to decline beginning in the first quarter of 2025.  Core operating expense burden is projected to be between $21 million and $22 million per quarter for 2025.

Loan Portfolio and Asset Quality

Loans held for investment decreased to $2.91 billion at December 31, 2024, compared to $2.97 billion at September 30, 2024.  As noted above, the Bank reclassified $133 million of gross loan balances associated with the Consumer Program to loans held for sale at December 31, 2024.  Including these balances, loans held for investment would have increased 2.2% unannualized in the fourth quarter of 2024.  The Mortgage Warehouse and Panacea divisions drove the growth in the period with loan growth of $49 million and $41 million, respectively, in the fourth quarter of 2024.

Nonperforming assets, excluding portions guaranteed by the SBA, were only 0.29% of total assets, or $10.8 million at December 31, 2024, compared to 0.25% or $10.2 million at September 30, 2024.  The Bank had no other real estate owned at the end of the fourth quarter of 2024.     

The Company recorded a provision for loan losses of $23.0 million for the fourth quarter of 2024 versus $7.5 million for the third quarter of 2024.  Of this provision, $20.8 million was due to Consumer Program activity including recording the fair market value adjustment for the portion of the portfolio that was moved to loans held for sale through the allowance for credit losses.  As a percentage of loans held for investment, the allowance for credit losses was 1.49% and 1.72% at the end of the fourth and third quarter of 2024, respectively, with the decline due to the reclassification of Consumer Program loans.

Net charge-offs were $31.0 million for the fourth quarter of 2024, up from $8.0 million for the third quarter of 2024.  Consumer Program net charge-offs were $30.5 million in the fourth quarter versus $6.7 million in the third quarter of 2024.  Core net charge-offs, excluding those losses from the Consumer Program, were $0.5 million, or 0.05% of average loans, in the fourth quarter of 2024 compared to $0.9 million, or 0.11%, in the third quarter of 2024(1). 

Deposits and Funding

Total deposits at December 31, 2024 decreased to $3.17 billion from $3.31 billion at September 30, 2024 as the Bank paid off high cost brokered deposits and swept off excess liquidity during the quarter.  Deposits swept off balance sheet totaled $137 million at December 31, 2024 versus none at September 30, 2024.  Importantly, noninterest bearing demand deposits were $439 million at December 31, 2024, up 4.2% from $421 million at September 30, 2024 as the Company emphasizes driving up low cost deposit balances.

Deposit growth in the Bank continues to benefit from better technology and unique convenience factors.  V1BE, the Bank's proprietary invitation-only delivery tool, increased total users by 20% in 2024, and now has over 3,000 users on the platform as of December 31, 2024.  The service completed over 40 thousand requests in 2024 and supports almost $200 million of deposits.

During the fourth quarter of 2024, the Bank opened approximately $32.5 million new deposit accounts on the digital platform with very modest marketing expenses.  At quarter end, the Bank had approximately 18,000 digital accounts with $981 million in total deposits and average balances of approximately $55 thousand.

As of December 31, 2024, the Bank has no wholesale funding.   

Shareholders' Equity

Book value per common share as of December 31, 2024 was $14.58, a decrease of $0.83 from September 30, 2024.  Tangible book value per common share(1) at the end of the fourth quarter of 2024 was $10.77, a decrease of $0.82 from September 30, 2024.  Common shareholders' equity was $360 million, or 9.75% of total assets, at December 31, 2024.  Tangible common equity(1) at December 31, 2024 was $266 million, or 7.39% of tangible assets(1).  After-tax unrealized losses on the Company's available-for-sale securities portfolio increased by $4.0 million to $21 million due to increases in market interest rates during the fourth quarter of 2024.  The Company has the intent and ability to hold these securities until maturity or recovery of the value and does not anticipate realizing any losses on the investments.

The Board of Directors declared a dividend of $0.10 per share payable on February 26, 2025 to shareholders of record on February 12, 2025.  This is Primis' fifty-third consecutive quarterly dividend. 

About Primis Financial Corp.

As of December 31, 2024, Primis had $3.7 billion in total assets, $2.9 billion in total loans held for investment and $3.2 billion in total deposits. Primis Bank provides a range of financial services to individuals and small- and medium-sized businesses through twenty-four full-service branches in Virginia and Maryland and provides services to customers through certain online and mobile applications.

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

McLean, VA 22102



Primis Financial Corp., NASDAQ Symbol FRST

Website: www.primisbank.com

Conference Call

The Company's management will host a conference call to discuss its fourth quarter results on Wednesday, January 29, 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/384098079.  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: the Company's ability to implement its various strategic and growth initiatives, including its recently established Panacea Financial Division, digital banking platform, V1BE fulfillment service, mortgage warehouse division and Primis Mortgage Company; the risks associated with the Life Premium Finance sale, including failure to achieve the expected impact to our operating results; 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; 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 impacts of tariffs and trade policies; 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 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; our ability to identify and address increased cybersecurity risks, including those impacting vendors and other third parties; fraud or misconduct by internal or external actors, which we may not be able to prevent, detect or mitigate; acts of God or of war or other conflicts, including the current Ukraine/Russia conflict and Israel/Hamas conflict, acts of terrorism, pandemics or other catastrophic events that may affect general economic conditions; 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, 2023, 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:


For Twelve Months Ended:












Selected Performance Ratios:

4Q 2024

3Q 2024

2Q 2024

1Q 2024

4Q 2023


4Q 2024

4Q 2023

Return on average assets

(1.53 %)

0.12 %

0.35 %

0.26 %

(0.85 %)


(0.19 %)

(0.20 %)

Operating return on average assets(1)

(1.67 %)

0.20 %

0.46 %

0.29 %

(0.80 %)


(0.17 %)

0.13 %

Pre-tax pre-provision return on average assets(1)

0.52 %

0.86 %

0.75 %

1.02 %

0.96 %


0.62 %

0.60 %

Pre-tax pre-provision operating return on average assets(1)

0.34 %

0.96 %

0.85 %

1.06 %

1.03 %


0.65 %

0.94 %

Return on average common equity 

(15.26 %)

1.31 %

3.69 %

2.59 %

(8.54 %)


(2.02 %)

(1.99 %)

Operating return on average common equity(1)

(16.64 %)

2.15 %

4.81 %

2.95 %

(8.01 %)


(1.79 %)

1.31 %

Operating return on average tangible common equity(1)

(22.07 %)

2.86 %

6.42 %

3.94 %

(10.71 %)


(2.40 %)

1.78 %

Cost of funds


2.97 %

3.25 %

3.16 %

2.97 %

2.85 %


3.09 %

2.67 %

Net interest margin

2.91 %

2.97 %

2.72 %

2.84 %

2.86 %


2.86 %

2.68 %

Gross loans to deposits

91.70 %

89.94 %

98.95 %

97.37 %

98.45 %


91.70 %

98.45 %

Efficiency ratio 


94.59 %

82.98 %

83.42 %

77.41 %

81.31 %


84.83 %

85.16 %

Operating efficiency ratio(1)

98.74 %

80.11 %

79.63 %

76.17 %

79.43 %


83.52 %

75.80 %












Per Common Share Data:









Earnings per common share - Basic

$           (0.59)

$            0.05

$            0.14

$            0.10

$           (0.33)


$         (0.31)

$         (0.32)

Operating earnings per common share - Basic(1)

$           (0.65)

$            0.08

$            0.18

$            0.11

$           (0.31)


$         (0.27)

$          0.21

Earnings per common share - Diluted

$           (0.59)

$            0.05

$            0.14

$            0.10

$           (0.33)


$         (0.31)

$         (0.32)

Operating earnings per common share - Diluted(1)

$           (0.65)

$            0.08

$            0.18

$            0.11

$           (0.31)


$         (0.27)

$          0.21

Book value per common share

$          14.58

$          15.41

$          15.22

$          15.16

$          15.23


$        14.58

$        15.23

Tangible book value per common share(1)

$          10.77

$          11.59

$          11.38

$          11.31

$          11.37


$        10.77

$        11.37

Cash dividend per common share

$            0.10

$            0.10

$            0.10

$            0.10

$            0.10


$          0.40

$          0.40

Weighted average shares outstanding - Basic

24,701,260

24,695,685

24,683,734

24,673,857

24,647,728


24,688,006

24,647,728

Weighted average shares outstanding - Diluted

24,701,260

24,719,920

24,708,484

24,707,113

24,647,728


24,688,006

24,647,728

Shares outstanding at end of period

24,722,734

24,722,734

24,708,234

24,708,588

24,693,172


24,722,734

24,693,172












Asset Quality Ratios:









Non-performing assets as a percent of total assets, excluding SBA guarantees

0.29 %

0.25 %

0.25 %

0.23 %

0.20 %


0.29 %

0.20 %

Net charge-offs (recoveries) as a percent of average loans (annualized)

3.84 %

0.93 %

0.60 %

0.64 %

0.94 %


1.48 %

0.45 %

Core net charge-offs (recoveries) as a percent of average loans (annualized)(1)

0.05 %

0.11 %

(0.07 %)

0.10 %

0.57 %


0.05 %

0.20 %

Allowance for credit losses to total loans

1.49 %

1.72 %

1.56 %

1.66 %

1.62 %


1.49 %

1.62 %












Capital Ratios:










Common equity to assets

9.75 %

9.47 %

9.48 %

9.63 %

9.75 %




Tangible common equity to tangible assets(1)

7.39 %

7.29 %

7.27 %

7.36 %

7.46 %




Leverage ratio(2)


8.00 %

8.20 %

8.25 %

8.38 %

8.37 %




Common equity tier 1 capital ratio(2)

8.64 %

8.23 %

8.85 %

8.98 %

8.96 %




Tier 1 risk-based capital ratio(2)

8.94 %

8.51 %

9.14 %

9.27 %

9.25 %




Total risk-based capital ratio(2)

12.35 %

11.68 %

12.45 %

12.62 %

13.44 %





(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)

4Q 2024

3Q 2024

2Q 2024

1Q 2024

4Q 2023

Assets 







Cash and cash equivalents

$         64,505

$         77,274

$         66,580

$         88,717

$         77,553

Investment securities-available for sale

235,903

242,543

232,867

230,617

228,420

Investment securities-held to maturity

9,448

9,766

10,649

10,992

11,650

Loans held for sale

227,235

458,722

94,644

72,217

57,691

Loans receivable, net of deferred fees

2,907,914

2,973,723

3,300,562

3,227,665

3,219,414

Allowance for credit losses

(43,227)

(51,132)

(51,574)

(53,456)

(52,209)


Net loans


2,864,687

2,922,591

3,248,988

3,174,209

3,167,205

Stock in Federal Reserve Bank and Federal Home Loan Bank

13,037

20,875

16,837

14,225

14,246

Bank premises and equipment, net

19,432

19,668

19,946

20,412

20,611

Operating lease right-of-use assets

10,279

10,465

10,293

10,206

10,646

Goodwill and other intangible assets

94,124

94,444

94,768

95,092

95,417

Assets held for sale, net

5,185

9,864

5,136

6,359

6,735

Bank-owned life insurance

67,184

66,750

66,319

67,685

67,588

Deferred tax assets, net

24,019

25,582

25,232

24,513

22,395

Consumer Program derivative asset

4,511

7,146

9,929

10,685

10,806

Other assets


59,272

58,657

63,830

64,050

65,583


Total assets

$    3,698,821

$    4,024,347

$    3,966,018

$    3,889,979

$    3,856,546









Liabilities and stockholders' equity






Demand deposits

$       438,917

$       421,231

$       420,241

$       463,190

$       472,941

NOW accounts


817,715

748,833

793,608

771,116

773,028

Money market accounts

798,506

835,099

831,834

834,514

794,530

Savings accounts

775,719

873,810

866,279

823,325

783,758

Time deposits


340,178

427,458

423,501

422,778

445,898

   Total deposits


3,171,035

3,306,431

3,335,463

3,314,923

3,270,155

Securities sold under agreements to repurchase - short term

3,918

3,677

3,273

3,038

3,044

Federal Home Loan Bank advances

-

165,000

80,000

25,000

30,000

Secured borrowings

17,195

17,495

21,069

21,298

20,393

Subordinated debt and notes

95,878

95,808

95,737

95,666

95,595

Operating lease liabilities

11,566

11,704

11,488

11,353

11,686

Other liabilities


25,541

27,169

24,777

24,102

28,080


Total liabilities

3,325,133

3,627,284

3,571,807

3,495,380

3,458,953

Total Primis common stockholders' equity

360,462

381,022

376,047

374,577

376,161

Noncontrolling interest

13,226

16,041

18,164

20,022

21,432


Total stockholders' equity

373,688

397,063

394,211

394,599

397,593


Total liabilities and stockholders' equity

$    3,698,821

$    4,024,347

$    3,966,018

$    3,889,979

$    3,856,546









Tangible common equity(1)

$       266,338

$       286,578

$       281,279

$       279,485

$       280,744

 

Primis Financial Corp.   









(Dollars in thousands)

For Three Months Ended:


For Twelve Months Ended:












Condensed Consolidated Statement of Operations (unaudited)

4Q 2024

3Q 2024

2Q 2024

1Q 2024

4Q 2023


4Q 2024

4Q 2023

Interest and dividend income

$         51,400

$         57,104

$         52,191

$         50,336

$         50,163


$     211,031

$    192,618

Interest expense


25,260

29,081

27,338

25,067

24,437


106,746

93,907


Net interest income

26,140

28,023

24,853

25,269

25,726


104,285

98,711

Provision for credit losses

23,046

7,511

3,119

6,508

21,310


40,184

32,540


Net interest income after provision for credit losses

3,094

20,512

21,734

18,761

4,416


64,101

66,171

Account maintenance and deposit service fees

1,276

1,398

1,780

1,330

1,518


5,784

5,733

Income from bank-owned life insurance

434

431

981

564

420


2,410

2,021

Mortgage banking income

5,140

6,803

6,402

5,574

3,210


23,919

17,645

Gain (loss) on sale of loans

(4)

-

(29)

336

526


303

794

Gain on sale of Life Premium Finance portfolio, net of broker fees

4,723

-

-

-

-


4,723

-

Consumer Program derivative

928

79

1,272

2,041

2,886


4,320

18,120

Gain on other investments

15

51

136

206

190


408

184

Gain (loss) on bank premises and equipment

(13)

352

124

-

(478)


463

-

Other 


663

168

186

256

169


1,273

753


Noninterest income

13,162

9,282

10,852

10,307

8,441


43,603

45,250

Employee compensation and benefits

15,717

16,764

16,088

15,735

14,645


64,304

58,765

Occupancy and equipment expenses

3,466

3,071

3,099

3,106

2,982


12,742

12,620

Amortization of intangible assets

313

318

317

317

317


1,265

1,269

Goodwill impairment

-

-

-

-

-


-

11,150

Virginia franchise tax expense

631

631

632

631

849


2,525

3,395

Data processing expense

3,434

2,552

2,347

2,231

2,216


10,564

9,545

Marketing expense

499

449

499

459

352


1,906

1,819

Telecommunication and communication expense

295

330

341

346

358


1,312

1,507

Professional fees


3,129

2,914

2,976

1,365

1,586


10,384

4,641

Miscellaneous lending expenses

1,446

1,098

285

451

1,128


3,280

3,006

Other expenses


8,244

2,828

3,202

2,897

3,347


17,171

14,883


Noninterest expense

37,174

30,955

29,786

27,538

27,780


125,453

122,600

Income (loss) before income taxes

(20,918)

(1,161)

2,800

1,530

(14,923)


(17,749)

(11,179)

Income tax expense (benefit)

(3,428)

(304)

1,265

718

(4,472)


(1,749)

(1,067)


Net Income (loss)

(17,490)

(857)

1,535

812

(10,451)


(16,000)

(10,112)


Noncontrolling interest

2,820

2,085

1,901

1,654

2,280


8,460

2,280


Net income (loss) attributable to Primis' common shareholders

$        (14,670)

$           1,228

$           3,436

$           2,466

$          (8,171)


$       (7,540)

$       (7,832)


(1) See Reconciliation of Non-GAAP financial measures.

 

Primis Financial Corp.   






(Dollars in thousands)

For Three Months Ended:









Loan Portfolio Composition

4Q 2024

3Q 2024

2Q 2024

1Q 2024

4Q 2023

Loans held for sale

$       227,235

$       458,722

$         94,644

$         72,217

$         57,691

Loans secured by real estate:







Commercial real estate - owner occupied

475,892

463,848

463,328

458,026

455,397


Commercial real estate - non-owner occupied

610,473

609,743

612,428

577,752

578,600


Secured by farmland

3,706

4,356

4,758

4,341

5,044


Construction and land development

101,243

105,541

104,886

146,908

164,742


Residential 1-4 family

588,855

607,313

608,035

602,124

606,226


Multi-family residential

158,426

169,368

171,512

128,599

127,857


Home equity lines of credit

62,955

62,421

62,152

57,765

59,670


     Total real estate loans

2,001,550

2,022,590

2,027,099

1,975,515

1,997,536









Commercial loans

614,162

533,998

619,365

623,804

602,623

Paycheck Protection Program loans

1,927

1,941

1,969

2,003

2,023

Consumer loans


284,955

409,754

646,590

620,745

611,583


Total Non-PCD loans

2,902,594

2,968,283

3,295,023

3,222,067

3,213,765

PCD loans


5,320

5,440

5,539

5,598

5,649

Total loans receivable, net of deferred fees

$    2,907,914

$    2,973,723

$    3,300,562

$    3,227,665

$    3,219,414









Loans by Risk Grade:






  Pass Grade 1 - Highest Quality

872

820

692

633

875

  Pass Grade 2 - Good Quality

195,669

177,763

488,728

412,593

405,019

  Pass Grade 3 - Satisfactory Quality

1,567,228

1,509,405

1,503,918

1,603,053

1,626,380

  Pass Grade 4 - Pass

1,042,404

1,184,671

1,204,268

1,177,065

1,154,971

  Pass Grade 5 - Special Mention

30,111

53,473

87,471

19,454

14,930

  Grade 6 - Substandard

71,630

47,591

15,485

14,867

17,239

  Grade 7 - Doubtful

-

-

-

-

-

  Grade 8 - Loss


-

-

-

-

-

Total loans


$    2,907,914

$    2,973,723

$    3,300,562

$    3,227,665

$    3,219,414



(Dollars in thousands)

For Three Months Ended:









Asset Quality Information

4Q 2024

3Q 2024

2Q 2024

1Q 2024

4Q 2023

Allowance for Credit Losses: 



Balance at beginning of period

$        (51,132)

$        (51,574)

$        (53,456)

$        (52,209)

$        (38,541)

Provision for for credit losses

(23,046)

(7,511)

(3,119)

(6,508)

(21,310)

Net charge-offs


30,951

7,953

5,001

5,261

7,642

Ending balance


$        (43,227)

$        (51,132)

$        (51,574)

$        (53,456)

$        (52,209)









Reserve for Unfunded Commitments:



Balance at beginning of period

$          (1,127)

$          (1,031)

$          (1,577)

$          (1,579)

$          (1,025)

(Expense for) / recovery of unfunded loan commitment reserve

6

(96)

546

2

(554)

Total Reserve for Unfunded Commitments

$          (1,121)

$          (1,127)

$          (1,031)

$          (1,577)

$          (1,579)

















Non-Performing Assets:

4Q 2024

3Q 2024

2Q 2024

1Q 2024

4Q 2023

Nonaccrual loans

$         15,027

$         14,424

$         11,289

$         10,139

$           9,095

Accruing loans delinquent 90 days or more

1,713

1,714

1,897

1,714

1,714

Total non-performing assets

$         16,740

$         16,138

$         13,186

$         11,853

$         10,809

SBA guaranteed portion of non-performing loans

$           5,921

$           5,954

$           3,268

$           3,095

$           3,115

 

Primis Financial Corp.   









(Dollars in thousands)

For Three Months Ended:


For Twelve Months Ended:












Average Balance Sheet

4Q 2024

3Q 2024

2Q 2024

1Q 2024

4Q 2023


4Q 2024

4Q 2023

Assets










Loans held for sale

$       100,027

$         98,110

$         84,389

$         58,896

$         48,380


$       85,430

$      44,643

Loans, net of deferred fees 

3,127,472

3,324,157

3,266,651

3,206,888

3,208,295


3,231,262

3,126,717

Investment securities

253,120

242,631

244,308

241,179

228,335


245,323

237,452

Other earning assets

96,697

83,405

73,697

77,067

79,925


82,757

281,052

Total earning assets

3,577,316

3,748,303

3,669,045

3,584,030

3,564,935


3,644,772

3,689,864

Other assets


237,793

243,715

243,196

248,082

262,977


242,566

261,265

Total assets


$    3,815,109

$    3,992,018

$    3,912,241

$    3,832,112

$    3,827,912


$  3,887,338

$  3,951,129












Liabilities and equity









Demand deposits

$       437,388

$       421,908

$       433,315

$       458,306

$       473,750


$     441,520

$    495,107

Interest-bearing liabilities:









NOW and other demand accounts

787,884

748,202

778,458

773,943

782,305


772,099

784,680

Money market accounts

819,803

859,988

823,156

814,147

790,971


829,331

831,196

Savings accounts

767,342

866,375

866,652

800,328

783,432


825,129

777,143

Time deposits 


404,682

425,238

423,107

431,340

451,521


421,058

474,178

   Total Deposits

3,217,099

3,321,711

3,324,688

3,278,064

3,281,979


3,289,137

3,362,304

Borrowings


160,886

238,994

158,919

120,188

120,213


169,912

159,442

  Total Funding


3,377,985

3,560,705

3,483,607

3,398,252

3,402,192


3,459,049

3,521,746

Other Liabilities


39,566

36,527

34,494

34,900

39,056


36,421

35,494

Total liabilites


3,417,551

3,597,232

3,518,101

3,433,152

3,441,248


3,495,470

3,557,240

Primis common stockholders' equity

382,466

377,314

374,731

378,008

379,442


373,637

393,302

Noncontrolling interest

15,092

17,472

19,409

20,952

7,222


18,231

587

Total stockholders' equity

397,558

394,786

394,140

398,960

386,664


391,868

393,889

Total liabilities and stockholders' equity

$    3,815,109

$    3,992,018

$    3,912,241

$    3,832,112

$    3,827,912


$  3,887,338

$  3,951,129























Net Interest Income









Loans held for sale

$           1,553

$           1,589

$           1,521

$             907

$             842


$        5,570

$        2,806

Loans



46,893

52,699

48,024

46,816

46,723


194,432

169,982

Investment securities

1,894

1,799

1,805

1,715

1,645


7,213

6,373

Other earning assets

1,060

1,017

841

898

953


3,816

13,457

   Total Earning Assets Income

51,400

57,104

52,191

50,336

50,163


211,031

192,618












Non-interest bearing DDA

-

-

-

-

-


-

-

NOW and other interest-bearing demand accounts

4,771

4,630

4,827

4,467

4,334


18,695

15,404

Money market accounts

6,190

7,432

6,788

6,512

6,129


26,923

23,717

Savings accounts

7,587

8,918

8,912

8,045

7,860


33,462

29,774

Time deposits 


4,127

4,371

4,095

3,990

3,964


16,582

14,795

  Total Deposit Costs

22,675

25,351

24,622

23,014

22,287


95,662

83,690












Borrowings


2,585

3,730

2,716

2,053

2,150


11,084

10,217

  Total Funding Costs

25,260

29,081

27,338

25,067

24,437


106,746

93,907












Net Interest Income

$         26,140

$         28,023

$         24,853

$         25,269

$         25,726


$     104,285

$      98,711























Net Interest Margin









Loans held for sale

6.18 %

6.44 %

7.25 %

6.19 %

6.90 %


6.52 %

6.29 %

Loans



5.96 %

6.31 %

5.91 %

5.87 %

5.78 %


6.02 %

5.44 %

Investments


2.98 %

2.95 %

2.97 %

2.86 %

2.86 %


2.94 %

2.68 %

Other Earning Assets

4.36 %

4.85 %

4.59 %

4.69 %

4.73 %


4.61 %

4.79 %

  Total Earning Assets

5.72 %

6.06 %

5.72 %

5.65 %

5.58 %


5.79 %

5.22 %












NOW



2.41 %

2.46 %

2.49 %

2.32 %

2.20 %


2.42 %

1.96 %

MMDA


3.00 %

3.44 %

3.32 %

3.22 %

3.07 %


3.25 %

2.85 %

Savings


3.93 %

4.10 %

4.14 %

4.04 %

3.98 %


4.06 %

3.83 %

CDs 



4.06 %

4.09 %

3.89 %

3.72 %

3.48 %


3.94 %

3.12 %

  Cost of Interest Bearing Deposits

3.25 %

3.48 %

3.42 %

3.28 %

3.15 %


3.36 %

2.92 %

  Cost of Deposits

2.80 %

3.04 %

2.98 %

2.82 %

2.69 %


2.91 %

2.49 %












Other Funding


6.39 %

6.22 %

6.89 %

6.90 %

7.10 %


6.52 %

6.41 %

  Total Cost of Funds

2.97 %

3.25 %

3.16 %

2.97 %

2.85 %


3.09 %

2.67 %












Net Interest Margin

2.91 %

2.97 %

2.72 %

2.84 %

2.86 %


2.86 %

2.68 %

Net Interest Spread

2.30 %

2.37 %

2.11 %

2.22 %

2.27 %


2.25 %

2.12 %

 

Primis Financial Corp.   









(Dollars in thousands, except per share data)

For Three Months Ended:


For Twelve Months Ended:












Reconciliation of Non-GAAP items:

4Q 2024

3Q 2024

2Q 2024

1Q 2024

4Q 2023


4Q 2024

4Q 2023

Net income (loss) attributable to Primis' common shareholders

$        (14,670)

$           1,228

$           3,436

$           2,466

$          (8,171)


$       (7,540)

$       (7,832)

Non-GAAP adjustments to Net Income:










Branch Consolidation / Other restructuring

-

-

-

-

449


-

1,937


Loan officer fraud, operational losses

-

-

-

-

-


-

200


Professional fee expense related to accounting matters and LPF sale

1,782

1,352

1,453

438

-


5,025

-


Professional fee expenses related to Panacea investment

-

-

-

-

194


-

194


Goodwill impairment

-

-

-

-

-


-

11,150


Gains on sale of closed bank branch buildings

-

(352)

(124)

-

-


(476)

-


Gain on sale of Life Premium Finance portfolio, net of broker fees

(4,723)

-

-

-

-


(4,723)

-


Consumer program fraud losses 

1,250

-

-

-

-


1,250

-


Income tax effect

365

(216)

(287)

(95)

(139)


(232)

(503)

Net income (loss) attributable to Primis' common shareholders adjusted for

nonrecurring income and expenses

$        (15,996)

$           2,012

$           4,478

$           2,809

$          (7,667)


$       (6,696)

$        5,146












Net income (loss) attributable to Primis' common shareholders

$        (14,670)

$           1,228

$           3,436

$           2,466

$          (8,171)


$       (7,540)

$       (7,832)


Income tax expense (benefit)

(3,428)

(304)

1,265

718

(4,472)


(1,749)

(1,067)


Provision for credit losses (incl. unfunded commitment expense)

23,040

7,607

2,573

6,506

21,864


33,220

32,636

Pre-tax pre-provision earnings

$           4,942

$           8,531

$           7,274

$           9,690

$           9,221


$       23,931

$      23,737


Effect of adjustment for nonrecurring income and expenses

(1,691)

1,000

1,329

438

643


1,076

13,481

Pre-tax pre-provision operating earnings

$           3,251

$           9,531

$           8,603

$         10,128

$           9,864


$       25,007

$      37,218












Return on average assets 

(1.53 %)

0.12 %

0.35 %

0.26 %

(0.85 %)


(0.19 %)

(0.20 %)


Effect of adjustment for nonrecurring income and expenses

(0.14 %)

0.08 %

0.11 %

0.03 %

0.05 %


0.02 %

0.33 %

Operating return on average assets 

(1.67 %)

0.20 %

0.46 %

0.29 %

(0.80 %)


(0.17 %)

0.13 %












Return on average assets 

(1.53 %)

0.12 %

0.35 %

0.26 %

(0.85 %)


(0.19 %)

(0.20 %)


Effect of tax expense

(0.36 %)

(0.03 %)

0.13 %

0.08 %

(0.46 %)


(0.03 %)

(0.03 %)


Effect of provision for credit losses  (incl. unfunded commitment expense)

2.41 %

0.77 %

0.27 %

0.68 %

2.27 %


0.85 %

0.83 %

Pre-tax pre-provision return on average assets 

0.52 %

0.86 %

0.75 %

1.02 %

0.96 %


0.62 %

0.60 %


Effect of adjustment for nonrecurring income and expenses and expenses

(0.18 %)

0.10 %

0.10 %

0.04 %

0.07 %


0.03 %

0.34 %

Pre-tax pre-provision operating return on average assets

0.34 %

0.96 %

0.85 %

1.06 %

1.03 %


0.65 %

0.94 %












Return on average common equity

(15.26 %)

1.31 %

3.69 %

2.59 %

(8.54 %)


(2.02 %)

(1.99 %)


Effect of adjustment for nonrecurring income and expenses

(1.38 %)

0.84 %

1.12 %

0.36 %

0.53 %


0.22 %

3.30 %

Operating return on average common equity

(16.64 %)

2.15 %

4.81 %

2.95 %

(8.01 %)


(1.79 %)

1.31 %


Effect of goodwill and other intangible assets

(5.43 %)

0.71 %

1.61 %

0.99 %

(2.70 %)


(0.61 %)

0.47 %

Operating return on average tangible common equity

(22.07 %)

2.86 %

6.42 %

3.94 %

(10.71 %)


(2.40 %)

1.78 %












Efficiency ratio


94.59 %

82.98 %

83.42 %

77.41 %

81.31 %


84.83 %

85.16 %


Effect of adjustment for nonrecurring income and expenses

4.16 %

(2.87 %)

(3.79 %)

(1.24 %)

(1.88 %)


(1.30 %)

(9.36 %)

Operating efficiency ratio 

98.74 %

80.11 %

79.63 %

76.17 %

79.43 %


83.52 %

75.80 %












Earnings per common share - Basic

$           (0.59)

$            0.05

$            0.14

$            0.10

$           (0.33)


$         (0.31)

$         (0.32)


Effect of adjustment for nonrecurring income and expenses

(0.05)

0.03

0.04

0.01

0.02


0.03

0.53

Operating earnings per common share - Basic

$           (0.65)

$            0.08

$            0.18

$            0.11

$           (0.31)


$         (0.27)

$          0.21












Earnings per common share - Diluted

$           (0.59)

$            0.05

$            0.14

$            0.10

$           (0.33)


$         (0.31)

$         (0.32)


Effect of adjustment for nonrecurring income and expenses

(0.05)

0.03

0.04

0.01

0.02


0.03

0.53

Operating earnings per common share - Diluted

$           (0.65)

$            0.08

$            0.18

$            0.11

$           (0.31)


$         (0.27)

$          0.21












Book value per common share

$           14.58

$           15.41

$           15.22

$           15.16

$           15.23


$        14.58

$        15.23


Effect of goodwill and other intangible assets

(3.81)

(3.82)

(3.84)

(3.85)

(3.86)


(3.81)

(3.86)

Tangible book value per common share

$           10.77

$           11.59

$           11.38

$           11.31

$           11.37


$        10.77

$        11.37












Net charge-offs (recoveries) as a percent of average loans (annualized)

3.84 %

0.93 %

0.60 %

0.64 %

0.94 %


1.48 %

0.45 %


Impact of third-party consumer portfolio

(3.79 %)

(0.82 %)

(0.67 %)

(0.54 %)

(0.37 %)


(1.43 %)

(0.25 %)

Core net charge-offs (recoveries) as a percent of average loans (annualized)

0.05 %

0.11 %

(0.07 %)

0.10 %

0.57 %


0.05 %

0.20 %












Total Primis common stockholders' equity

$       360,462

$       381,022

$       376,047

$       374,577

$       376,161


$     360,462

$    376,161


Less goodwill and other intangible assets

(94,124)

(94,444)

(94,768)

(95,092)

(95,417)


(94,124)

(95,417)

Tangible common equity

$       266,338

$       286,578

$       281,279

$       279,485

$       280,744


$     266,338

$    280,744












Common equity to assets

9.75 %

9.47 %

9.48 %

9.63 %

9.75 %


9.75 %

9.75 %


Effect of goodwill and other intangible assets

(2.36 %)

(2.18 %)

(2.21 %)

(2.27 %)

(2.29 %)


(2.36 %)

(2.29 %)

Tangible common equity to tangible assets

7.39 %

7.29 %

7.27 %

7.36 %

7.46 %


7.39 %

7.46 %

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/primis-financial-corp-reports-earnings-per-share-for-the-fourth-quarter-of-2024-302362585.html

SOURCE Primis Financial Corp.

FAQ

What was Primis Financial's (FRST) Q4 2024 earnings per share?

Primis Financial reported a loss of $0.59 per share for Q4 2024, compared to a loss of $0.33 per share in Q4 2023.

How much did FRST's consumer loan portfolio impact Q4 2024 results?

The consumer loan portfolio move to held for sale resulted in $20.0 million in additional provision expense and charge-offs in Q4 2024.

What is FRST's projected mortgage production for 2025?

Primis Financial projects mortgage production to reach $1.25 billion in 2025, up from $800 million in 2024.

What was FRST's deposit cost advantage compared to peers in 2024?

FRST's core bank cost of deposits was 1.87%, up to 100 basis points lower than equal-sized peers in the greater Washington, D.C. region.

How did FRST's digital banking platform perform in 2024?

FRST's digital platform grew to 18,000 customers with nearly $1 billion in deposits by the end of 2024.

Stock FRST logo
Primis Financial Corp.

NASDAQ:FRST

FRST Rankings

#3639 Ranked by Market Cap
#878 Ranked by Dividends

FRST Latest News

Jan 15, 2025
Primis Financial Corp. Announces Date for Fourth Quarter 2024 Earnings Release and Conference Call
Dec 19, 2024
Primis Financial Corp. Announces Reauthorization of Stock Repurchase Program and Compliance with Nasdaq Listing Rules
Nov 27, 2024
Primis Financial Corp. Receives Nasdaq Notice Regarding Delayed 10-Q Filing
Oct 30, 2024
Primis Bank Taps Industry Veterans to Lead New Warehouse Lending Division
Oct 24, 2024
Primis Financial Corp. Announces Receipt of Stay Extension

FRST Stock Data

277.88M
20.70M
3.6%
86.12%
0.34%
Banks - Regional
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