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

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Primis Financial Corp. (NASDAQ: FRST) reported net income of $1.2 million ($0.05 per diluted share) for Q3 2024, compared to a net loss of $6.0 million in Q3 2023. The company announced the sale of its Life Premium Finance Division to EverBank for a premium of $6.0 million, expecting a pre-tax gain of $4.5 million in Q4 2024. The deal involves approximately $370 million in loans. Primis also expanded its Mortgage Warehouse Lending team with new hires. The company declared a quarterly cash dividend of $0.10 per share. Net interest income increased 13% to $28.0 million in Q3 2024, with net interest margin at 2.97%. Total assets stood at $4.0 billion with $2.9 billion in loans and $3.3 billion in deposits.

Primis Financial Corp. (NASDAQ: FRST) ha riportato un utile netto di 1,2 milioni di dollari (0,05 dollari per azione diluita) per il terzo trimestre del 2024, rispetto a una perdita netta di 6,0 milioni di dollari nel terzo trimestre del 2023. L'azienda ha annunciato la vendita della sua Divisione Finanza Premi Vita a EverBank per un premio di 6,0 milioni di dollari, prevedendo un guadagno pre-tasse di 4,5 milioni di dollari nel quarto trimestre del 2024. L'accordo prevede circa 370 milioni di dollari in prestiti. Primis ha anche ampliato il proprio team di prestiti ipotecari con nuove assunzioni. L'azienda ha dichiarato un dividendo in contante trimestrale di 0,10 dollari per azione. Il reddito da interessi netto è aumentato del 13% a 28,0 milioni di dollari nel terzo trimestre del 2024, con un margine di interesse netto del 2,97%. Gli attivi totali si sono attestati a 4,0 miliardi di dollari con 2,9 miliardi di dollari in prestiti e 3,3 miliardi di dollari in depositi.

Primis Financial Corp. (NASDAQ: FRST) reportó un ingreso neto de 1.2 millones de dólares (0.05 dólares por acción diluida) para el tercer trimestre de 2024, en comparación con una pérdida neta de 6.0 millones de dólares en el tercer trimestre de 2023. La empresa anunció la venta de su División de Financiación de Primas de Vida a EverBank por un monto de 6.0 millones de dólares, esperando una ganancia antes de impuestos de 4.5 millones de dólares en el cuarto trimestre de 2024. El trato involucra aproximadamente 370 millones de dólares en préstamos. Primis también amplió su equipo de préstamos en el almacén de hipotecas con nuevas contrataciones. La empresa declaró un dividendo en efectivo trimestral de 0.10 dólares por acción. Los ingresos netos por intereses aumentaron un 13% a 28.0 millones de dólares en el tercer trimestre de 2024, con un margen de interés neto del 2.97%. Los activos totales se situaron en 4.0 mil millones de dólares, con 2.9 mil millones de dólares en préstamos y 3.3 mil millones de dólares en depósitos.

Primis Financial Corp. (NASDAQ: FRST)는 2024년 3분기에 120만 달러의 순이익 (희석 주당 0.05달러)를 보고했으며, 2023년 3분기에는 600만 달러의 순손실을 기록했습니다. 이 회사는 Life Premium Finance Division을 EverBank에 600만 달러에 판매한다고 발표하며, 2024년 4분기에 450만 달러의 세전 이익을 예상하고 있습니다. 이 거래에는 약 3억 7천만 달러의 대출이 포함됩니다. Primis는 새로운 인재를 영입하여 모기지 융자 팀을 확장했습니다. 회사는 주당 0.10달러의 분기 현금 배당금을 선언했습니다. 2024년 3분기 순이자 수익은 13% 증가하여 2800만 달러에 달했으며, 순이자 마진은 2.97%입니다. 총 자산은 40억 달러로, 29억 달러의 대출과 33억 달러의 예금이 있습니다.

Primis Financial Corp. (NASDAQ: FRST) a rapporté un revenu net de 1,2 million de dollars (0,05 dollar par action diluée) pour le 3ème trimestre 2024, contre une perte nette de 6,0 millions de dollars au 3ème trimestre 2023. La société a annoncé la vente de sa Division de Financement de Primes Vie à EverBank pour un montant de 6,0 millions de dollars, avec une attente de gain avant impôt de 4,5 millions de dollars au 4ème trimestre 2024. L'accord porte sur environ 370 millions de dollars de prêts. Primis a également élargi son équipe de prêts hypothécaires avec de nouvelles recrues. L'entreprise a déclaré un dividende en espèces trimestriel de 0,10 dollar par action. Les revenus d'intérêts nets ont augmenté de 13 % pour atteindre 28,0 millions de dollars au 3ème trimestre 2024, avec une marge d'intérêt nette de 2,97 %. Les actifs totaux s'élevaient à 4,0 milliards de dollars, dont 2,9 milliards de dollars de prêts et 3,3 milliards de dollars de dépôts.

Primis Financial Corp. (NASDAQ: FRST) berichtete über ein Nettoeinkommen von 1,2 Millionen Dollar (0,05 Dollar pro verwässerter Aktie) für das 3. Quartal 2024, im Vergleich zu einem Nettoverlust von 6,0 Millionen Dollar im 3. Quartal 2023. Das Unternehmen gab die Veräußerung seiner Lebensversicherungs-Premiumfinanzierungsabteilung an EverBank für eine Prämie von 6,0 Millionen Dollar bekannt und erwartet im 4. Quartal 2024 einen Steuervorteil von 4,5 Millionen Dollar. Das Geschäft umfasst etwa 370 Millionen Dollar an Krediten. Primis hat auch sein Team für Hypothekenlagerfinanzierungen mit neuen Mitarbeitern erweitert. Das Unternehmen erklärte eine vierteljährliche Bar-Dividende von 0,10 Dollar pro Aktie. Die Nettozinseinnahmen stiegen im 3. Quartal 2024 um 13% auf 28,0 Millionen Dollar, wobei die Nettozinsspanne bei 2,97% lag. Die Gesamtaktiva beliefen sich auf 4,0 Milliarden Dollar, davon 2,9 Milliarden Dollar an Krediten und 3,3 Milliarden Dollar an Einlagen.

Positive
  • Net income improved to $1.2 million in Q3 2024 from a $6.0 million loss in Q3 2023
  • Sale of Life Premium Finance Division for $6.0 million premium with expected $4.5 million pre-tax gain
  • Net interest income increased 13% to $28.0 million
  • Net interest margin improved to 2.97% from 2.72% in Q2 2024
Negative
  • Core net charge-offs increased to $1.3 million (0.15% of average loans) from $0.6 million in Q2 2024
  • Provision for loan losses increased to $7.5 million from $3.1 million in Q2 2024
  • Substandard loans increased to $47.6 million from $15.5 million in Q2 2024
  • Operating earnings per share decreased to $0.08 from $0.21 in Q3 2023

Insights

The Q3 2024 results present a mixed picture for Primis Financial. The company reported $1.2 million in net income ($0.05 per share), a significant improvement from the $6.0 million loss in Q3 2023. However, operating metrics show some pressure points.

The strategic sale of the Life Premium Finance Division to EverBank for a $6.0 million premium (expected $4.5 million pre-tax gain) represents a positive move to optimize the balance sheet. The expansion into mortgage warehouse lending with higher yields (125-150bps higher) could offset the revenue loss.

Key concerns include rising nonperforming assets at $10.2 million and increased substandard loans at $47.6 million, up significantly from $15.5 million in Q2. The net interest margin improved to 2.97% but remains under pressure from high funding costs at 3.25%.

The operational transformation at Primis shows promise but faces execution challenges. The digital banking initiative through V1BE platform gained 5% more users, reaching 2,400 users with $911 million in deposits - demonstrating successful digital transformation.

The deposit base remains stable at $3.31 billion, with noninterest-bearing deposits holding at $421 million. However, the high reliance on FHLB funding and brokered CDs ($240 million combined) suggests potential funding vulnerabilities.

The efficiency ratio at 83.22% indicates operational challenges, though core operating expenses remained controlled at $19.8 million. The strategic pivot from premium finance to warehouse lending will test management's ability to maintain profitability while managing transition risks.

Announces Sale of Life Premium Finance Division

Announces Expansion of Mortgage Warehouse Lending Team

Declares Quarterly Cash Dividend of $0.10 Per Share

MCLEAN, Va., Oct. 24, 2024 /PRNewswire/ -- Primis Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), and its wholly-owned subsidiary, Primis Bank (the "Bank"), today reported net income available to common shareholders of $1.2 million or $0.05 per diluted share for the quarter ended September 30, 2024, compared to a net loss available to common shareholders of $6.0 million or $0.24 per diluted share for the quarter ended September 30, 2023.   For the year-to-date period in 2024, the Company reported earnings available to common and diluted earnings per share of $7.5 million and $0.30, respectively, compared to $0.3 million and $0.01, respectively, in the same period in 2023.  Earnings for the three month and year-to-date periods are highly affected by the Company's corrected accounting for a third-party originated consumer portfolio.

Earnings for the three month and year-to-date period in 2024 include $0.8 million and $2.2 million, respectively, or $0.03 and $0.09 per diluted share, respectively, of after-tax nonrecurring charges versus $11.3 million and $12.5 million, respectively, or $0.45 and $0.51 per diluted share, respectively in the comparable 2023 periods and inclusive of the goodwill impairment in the third quarter of 2023.  Adjusting for these items, operating net income available to common shareholders was $2.0 million(1) or $0.08 per diluted share(1) for the quarter ended September 30, 2024, compared to net operating income available to common shareholders of $5.3 million(1) or $0.21 per diluted share(1) for the quarter ended September 30, 2023. For the year-to-date period in 2024 when adjusting for these items, earnings available to common and diluted earnings per share was $9.6 million(1) and $0.39(1), respectively, compared to $12.8 million(1) and $0.52(1), respectively, in the same period in 2023. 

Sale of Life Premium Finance Division

On October 24, 2024, Primis Bank and EverBank, N.A. ("EverBank") entered into a purchase and assumption agreement whereby EverBank will acquire the Life Premium Finance Division from Primis Bank including all the associated loans, except for a subset of mostly fixed rate and rate-capped loans retained by the Bank, and the operations of the division, including its employees, for a premium of $6.0 million.  Primis Bank expects to record a pre-tax gain of $4.5 million net of advisory and legal fees in the fourth quarter of 2024.

On October 31, 2024, EverBank will acquire approximately $370 million of loans from the division with Primis Bank providing interim servicing until the transition of the business at the final closing which is expected on January 31, 2025.  Between the first and second closings, EverBank will purchase loans generated by the division in ordinary course at par.  After the second closing, EverBank will service the Bank's retained portfolio for the duration of the portfolio.

Dennis J. Zember, Jr., President and Chief Executive Officer of Primis commented, "Three years ago we hired a set of professionals with a vision to build a tech-forward solution for life insurance premium finance.  This platform has been widely accepted and used by the industry's facilitators to such a degree that its opportunity is bigger than our balance sheet.  EverBank is known for investing in scalable businesses with attractive risk-adjusted returns which makes our life premium finance team a perfect fit."

Mortgage Warehouse Lending Team Expansion

In early October of 2024, Primis hired a seasoned team of mortgage warehouse lending professionals from a larger bank with a very successful track record in this space.  While Primis Bank has had mortgage warehouse lending capabilities for some time, production had been limited while the Bank searched for the right leadership.  Four key individuals have joined the Bank comprising sales, operations and portfolio management with another four to five support staff expected in the coming months.

Commented Mr. Zember, "Mortgage warehouse lending as an asset class has very attractive returns and limited losses.  With several very large banks exiting the space and mortgage volumes projected to increase substantially, we believe this is a perfect time to expand our capabilities.  Knowing the team we hired and having visited quite a few of their customers, I believe we can replace all of the life premium business we are selling with yields that are 125bps to 150bps higher.  I expect the credit results and operating expense burdens to be similar so we believe the bottom-line impact will be significant as we scale this operation."

Discussion of Results

The following table highlights selected financial data for the last five quarters:


3Q 2024


2Q 2024


1Q 2024


4Q 2023


3Q 2023











Return on average assets

0.12 %


0.39 %


0.26 %


(0.85 %)


(0.62 %)

Operating return on average assets(1)

0.20 %


0.50 %


0.29 %


(0.79 %)


0.54 %

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

0.85 %


0.78 %


1.02 %


0.96 %


(0.33 %)

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

0.95 %


0.92 %


1.05 %


1.01 %


(0.30 %)

Return on average common equity

1.28 %


4.06 %


2.62 %


(8.43 %)


(6.11 %)

Operating return on average common equity(1)

2.11 %


5.18 %


2.99 %


(7.91 %)


5.35 %

Operating return on avg. tangible common equity(1)

2.80 %


6.93 %


3.98 %


(10.53 %)


7.35 %

Cost of funds


3.25 %


3.16 %


2.97 %


2.85 %


2.75 %

Net interest margin

2.97 %


2.72 %


2.84 %


2.86 %


2.70 %

Gross loans to deposits

89.68 %


98.95 %


97.37 %


98.45 %


96.37 %

Efficiency ratio


83.22 %


82.62 %


77.41 %


81.31 %


108.50 %

Operating efficiency ratio(1)

80.35 %


78.86 %


76.17 %


79.43 %


75.17 %

As disclosed in our recent filings with the SEC, the Company has corrected its method for accounting for a third-party originated and serviced consumer loan portfolio (the "Consumer Program") and in which the separate agreements comprising the portfolio are treated as separate units of account (See "Critical Accounting Estimates and Policies" in the Company's 2023 Form 10-K).  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 fully 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.  Total outstanding balances in the Consumer Program were $180 million as of September 30, 2024 versus $194 million at June 30, 2024.

Net Interest Income

Net interest income increased approximately $3.2 million, or 13%, to $28.0 million during the third quarter of 2024 compared to the second quarter of 2024 largely due to increased interest recognition on previously deferring loans. For the third quarter of 2024, the Company reported a net interest margin of 2.97% versus 2.72% for the second quarter of 2024. 

Interest income increased 9.4% to $57.1 million in the third quarter of 2024 compared to $52.2 million during the second quarter of 2024. At September 30, 2024, $60 million of loans were deferring interest due to a promotional feature.  The Company recognized $3.0 million of interest in the third quarter of 2024 from promotional loans that were deferring interest and then began amortizing.  In addition, in the third quarter of 2024, payoff of promotional loans triggered reimbursement of $2.5 million of deferred interest that was recognized in noninterest income.  Promotional loan balances of $17 million and $21 million will reach the end of their promotional periods in the fourth quarter of 2024 and first quarter of 2025, respectively, after which loans with a promotional feature will decline to a nominal amount of the Bank's portfolio by the end of 2025.  Yield on earning assets and loans held for investment were 6.06% and 6.31%, respectively, in the third quarter of 2024 versus 5.72% and 5.91%, respectively, in the second quarter of 2024. 

Interest expense increased $1.7 million to $29.1 million in the third quarter of 2024 compared to the second quarter of 2024 largely due to an increased reliance on FHLB funding during the third quarter.  Cost of deposits increased 6 basis points to 3.04% in the third quarter of 2024 from 2.98% in the second quarter of 2024.  Cost of funds was 3.25% in the third quarter of 2024, an increase of 9 basis points linked-quarter.

Noninterest Income

Noninterest income decreased during the third quarter of 2024 to $9.3 million compared to $11.2 million in the second quarter of 2024.  Included in the second quarter of 2024 is approximately $0.9 million of bank-owned life insurance income due to a death benefit payout.  Income from mortgage banking activity increased $0.4 million during the third quarter.  Offsetting the increase in mortgage banking income was a reduction of $0.4 million in service fees and $1.2 million reduction in income related to the Consumer Program. 

Noninterest Expense

Noninterest expense was $31.0 million for the third quarter of 2024, compared to $29.8 million for the second 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 such as those that are volume dependent (e.g., mortgage banking related) or nonoperational (e.g., changes in the reserve for unfunded commitments).  The following table illustrates the degree to which the Company has managed its operating expense burden during 2024:



3Q 2024


2Q 2024


1Q 2024


4Q 2023


3Q 2023












 Reported Noninterest Expense


31,045


29,786


27,538


27,780


36,950

 PFH Consolidated Expenses


(2,666)


(2,347)


(2,119)


(2,813)


-

 Noninterest Expense Excl. PFH


28,379


27,439


25,419


24,967


36,950












 Nonrecurring / Goodwill Impair.


(1,352)


(1,453)


(438)


(165)


(11,350)

 Mortgage Expenses


(6,436)


(6,084)


(5,122)


(4,785)


(5,108)

 Consumer Program Servicing Fee


(699)


(312)


(312)


(312)


(312)

 Reserve for Unfunded Commitment


(96)


546


2


(554)


257

 Total Adjustments


(8,583)


(7,303)


(5,870)


(5,816)


(16,513)












 Core Operating Expense Burden


19,796


20,136


19,550


19,151


20,437

As noted above, the core expense burden decreased $0.3 million in the third quarter of 2024 from the second quarter of 2024.  Core expense burden was $19.8 million, in line with the average for the last five quarters.

Loan Portfolio and Asset Quality

Loans held for investment decreased to $2.97 billion at September 30, 2024, compared to $3.30 billion at June 30, 2024.  As noted above, the Bank has entered into an agreement to sell approximately $370 million of life premium finance loans and which have been reclassified to loans held for sale at September 30, 2024.  Including these balances, loans held for investment would have increased 1.1% unannualized in the third quarter of 2024.  The Panacea and Life Premium Finance divisions had loan growth of 4.4% and 11.1%, respectively, in the third quarter of 2024.

Nonperforming assets, excluding portions guaranteed by the SBA, were only 0.25% of total assets, or $10.2 million at September 30, 2024, compared to 0.25% or $9.9 million at June 30, 2024.  Loans rated substandard were $47.6 million in the third quarter of 2024 compared to $15.5 million in the second quarter of 2024.  The increase was largely driven by a single commercial credit that has experienced slower lease activity past its construction phase.  Management evaluated and valued the property using conservative cap rates and lengthy times to lease and included the shortfall in its specific reserve. The Bank had no other real estate owned at the end of the third quarter of 2024.     

The Company recorded a provision for loan losses of $7.5 million for the third quarter of 2024 versus $3.1 million for the second quarter of 2024.  Of this provision, $4.0 million was due to Consumer Program activity.  The remaining provision was due to specific reserves established on individually evaluated credits, approximately $2.2 million of which was tied to the commercial credit described above.  As a percentage of loans, including life premium finance loans classified as held-for-sale at the end of the third quarter, the allowance for credit losses was 1.53% and 1.56% at the end of the third and second quarter of 2024, respectively.

Net charge-offs were $8.0 million for the third quarter of 2024, up from $5.0 million for the second quarter of 2024.  Consumer Program net charge-offs were $6.7 million in the third quarter versus $4.4 million in the second quarter of 2024.  Core net charge-offs, excluding those losses from the Consumer Program, were $1.3 million, or 0.15% of average loans, in the third quarter of 2024 compared to $0.6 million, or 0.07%, in the second quarter of 2024. 

Deposits and Funding

Total deposits at September 30, 2024 decreased slightly to $3.31 billion from $3.34 billion at June 30, 2024.  Importantly, noninterest bearing deposits were $421 million at September 30, 2024, up slightly from $420 million at June 30, 2024 and in the face of substantial remixing activity towards interest bearing accounts.

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 5% during the third quarter of 2024, and now has over 2,400 users on the platform as of September 30, 2024.

During the third 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 over 17,000 digital accounts with $911 million in total deposits and average balances of approximately $53 thousand.

As of September 30, 2024, the Bank has $75.0 million of brokered CDs that mature at the end of 2024 and $165.0 million of short-term FHLB advances.   

Lines of Business

The Panacea Financial Division continues to experience substantial growth alongside the development of the nationally-recognized Panacea Financial brand. The Panacea Financial Division finished the third quarter of 2024 with approximately $392 million in outstanding loans, an increase of $16.5 million from June 30, 2024.  Panacea-related deposits were $90 million at September 30, 2024 with a weighted average cost of 2.00%.  Panacea continues to roll out innovative technology capabilities that  is expected to continue increasing the amount with which it self-funds its balance sheet.

Primis Mortgage had pre-tax income of $1.0 million in the third quarter of 2024 up from $0.9 million in the previous quarter.  Locked loan volumes averaged $56.1 million per month in the third quarter of 2024, up from $52.0 million per month in the second quarter of 2024. Primis Mortgage continues to aggressively manage costs to preserve profitability in a lower volume environment while selectively adding talent to grow production.   

Shareholders' Equity

Book value per common share as of September 30, 2024 was $15.43, an increase of $0.20 from June 30, 2024.  Tangible book value per common share(1) at the end of the third quarter of 2024 was $11.61, an increase of $0.21 from June 30, 2024.  Common shareholders' equity was $381 million, or 9.48% of total assets, at September 30, 2024.  Tangible common equity(1) at September 30, 2024 was $287 million, or 7.30% of tangible assets(1).  After-tax unrealized losses on the Company's available-for-sale securities portfolio decreased by $6.0 million to $17.1 million due to decreases in market interest rates during the third 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 November 22, 2024 to shareholders of record on November 8, 2024.  This is Primis' fifty-second consecutive quarterly dividend. 

About Primis Financial Corp.

As of September 30, 2024, Primis had $4.0 billion in total assets, $2.9 billion in total loans held for investment and $3.3 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 third quarter results on Friday, October 25, 2024 at 10:00 a.m. (ET). A live Webcast of the conference call is available at the following website: https://events.q4inc.com/attendee/853860984.  Participants may also call 1-888-330-3573 and ask for the Primis Financial Corp. call.  A replay of the teleconference will be available for 7 days by calling 1-800-770-2030 and providing Replay Access Code 4440924.

Non-GAAP Measures

Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables. Primis uses non-GAAP financial measures to analyze its performance. The measures entitled net income adjusted for nonrecurring income and expenses; pre-tax pre-provision operating earnings; operating return on average assets; pre-tax pre-provision operating return on average assets; operating return on average equity; operating return on average tangible equity; operating efficiency ratio; operating earnings per share – basic; operating earnings per share – diluted; tangible book value per share; tangible common equity; tangible common equity to tangible assets; and core net interest margin are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. We use the term "operating" to describe a financial measure that excludes income or expense considered to be non-recurring in nature.  Items identified as non-operating are those that, when excluded from a reported financial measure, provide management or the reader with a measure that may be more indicative of forward-looking trends in our business.  A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures is provided in the Reconciliation of Non-GAAP Items table.

Management believes that these non-GAAP financial measures provide additional useful information about Primis that allows management and investors to evaluate the ongoing operating results, financial strength and performance of Primis and provide meaningful comparison to its peers. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider Primis' performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of Primis.  Non-GAAP financial measures are not standardized and, therefore, it may not be possible to compare these measures with other companies that present measures having the same or similar names.

Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

Forward-Looking Statements

This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as "may," "plan," "contemplate," "anticipate," "believe," "intend," "continue," "expect," "project," "predict," "estimate," "could," "should," "would," "will," and other similar words or expressions of the future or otherwise regarding the outlook for the Company's future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, but are not limited to, our expectations regarding our future operating and financial performance, including 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 result of the "pre-clearance" process with the Office of the Chief Accountant of the SEC and the impact on the Company's financial statements; the possibility that the Company is unable to regain compliance with, or thereafter continue to comply with, applicable Nasdaq Listing Rules, or experience violations of additional Nasdaq Listing Rules; the possibility that Nasdaq may deny the Company's appeal and delist the Company's securities; the Company's ability to implement its various strategic and growth initiatives, including the sale of the Life Premium Finance Division and the impact on the Company's operating results and its recently established Panacea Financial Division, digital banking platform, V1BE fulfillment service and Primis Mortgage Company; competitive pressures among financial institutions increasing significantly; changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices; changes in management's plans for the future; credit risk associated with our lending activities; 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; 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 Nine Months Ended:











Selected Performance Ratios:

3Q 2024

2Q 2024

1Q 2024

4Q 2023

3Q 2023



3Q 2024

3Q 2023

Return on average assets

0.12 %

0.39 %

0.26 %

(0.85 %)

(0.62 %)



0.25 %

0.01 %

Operating return on average assets(1)

0.20 %

0.50 %

0.29 %

(0.79 %)

0.54 %



0.33 %

0.43 %

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

0.85 %

0.78 %

1.02 %

0.96 %

(0.33 %)



0.88 %

0.48 %

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

0.95 %

0.92 %

1.05 %

1.01 %

(0.30 %)



0.98 %

0.91 %

Return on average common equity 

1.28 %

4.06 %

2.62 %

(8.43 %)

(6.11 %)



2.66 %

0.11 %

Operating return on average common equity(1)

2.11 %

5.18 %

2.99 %

(7.91 %)

5.35 %



3.44 %

4.32 %

Operating return on average tangible common equity(1)

2.80 %

6.93 %

3.98 %

(10.53 %)

7.35 %



4.60 %

5.92 %

Cost of funds


3.25 %

3.16 %

2.97 %

2.85 %

2.75 %



3.13 %

2.61 %

Net interest margin

2.97 %

2.72 %

2.84 %

2.86 %

2.70 %



2.85 %

2.61 %

Gross loans to deposits

89.68 %

98.95 %

97.37 %

98.45 %

96.37 %



89.68 %

96.37 %

Efficiency ratio 


83.22 %

82.62 %

77.41 %

81.31 %

108.50 %



81.12 %

86.30 %

Operating efficiency ratio(1)

80.35 %

78.86 %

76.17 %

79.43 %

75.17 %



78.49 %

74.56 %













Per Common Share Data:










Earnings per common share - Basic

$            0.05

$            0.15

$            0.10

$           (0.33)

$           (0.24)



$          0.30

$          0.01

Operating earnings per common share - Basic(1)

$            0.08

$            0.20

$            0.11

$           (0.31)

$            0.21



$          0.39

$          0.52

Earnings per common share - Diluted

$            0.05

$            0.15

$            0.10

$           (0.33)

$           (0.24)



$          0.30

$          0.01

Operating earnings per common share - Diluted(1)

$            0.08

$            0.20

$            0.11

$           (0.31)

$            0.21



$          0.39

$          0.52

Book value per common share

$           15.43

$           15.23

$           15.16

$           15.23

$           15.30



$        15.43

$        15.30

Tangible book value per common share(1)

$           11.61

$           11.40

$           11.31

$           11.37

$           11.42



$        11.61

$        11.42

Cash dividend per common share


$            0.10

$            0.10

$            0.10

$            0.10

$            0.10



$          0.30

$          0.30

Weighted average shares outstanding - Basic

24,695,685

24,683,734

24,673,857

24,647,728

24,641,981



24,683,556

24,635,535

Weighted average shares outstanding - Diluted

24,719,920

24,708,484

24,707,113

24,687,993

24,641,981



24,710,345

24,635,535

Shares outstanding at end of period

24,722,734

24,708,234

24,708,588

24,693,172

24,686,764



24,722,734

24,686,764













Asset Quality Ratios:










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

0.25 %

0.25 %

0.23 %

0.20 %

0.51 %



0.25 %

0.51 %

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

0.93 %

0.60 %

0.64 %

0.61 %

0.53 %



0.52 %

0.32 %

Core net charge-offs (recoveries) as a percent of average loans (annualized)(2)

0.15 %

0.07 %

0.11 %

0.24 %

0.27 %



(0.10 %)

0.12 %

Allowance for credit losses to total loans

1.72 %

1.56 %

1.66 %

1.62 %

1.13 %



1.72 %

1.13 %













Capital Ratios:











Common equity to assets

9.48 %

9.49 %

9.63 %

9.75 %

9.84 %





Tangible common equity to tangible assets(1)

7.30 %

7.27 %

7.36 %

7.46 %

7.53 %





Leverage ratio(3)


8.06 %

8.25 %

8.38 %

8.37 %

8.60 %





Common equity tier 1 capital ratio(3)

8.98 %

8.85 %

8.97 %

8.96 %

9.36 %





Tier 1 risk-based capital ratio(3)

9.28 %

9.14 %

9.26 %

9.25 %

9.66 %





Total risk-based capital ratio(3)

12.66 %

12.45 %

12.61 %

13.44 %

13.05 %







(1)

See Reconciliation of Non-GAAP financial measures.

(2)

Excludes third-party charge-offs

(3)

Ratios are estimated and may be subject to change pending the final filing of the FR Y-9C.

 

Primis Financial Corp.   






(Dollars in thousands)

As Of :









Condensed Consolidated Balance Sheets (unaudited)

3Q 2024

2Q 2024

1Q 2024

4Q 2023

3Q 2023

Assets 







Cash and cash equivalents

$         77,274

$         66,580

$         88,717

$         77,553

$         93,865

Investment securities-available for sale

242,543

232,867

230,617

228,420

216,875

Investment securities-held to maturity

9,766

10,649

10,992

11,650

11,975

Loans held for sale

467,325

94,644

72,217

57,691

66,266

Loans receivable, net of deferred fees

2,965,120

3,300,562

3,227,665

3,219,414

3,173,788

Allowance for credit losses

(51,132)

(51,574)

(53,456)

(52,209)

(35,862)


Net loans


2,913,988

3,248,988

3,174,209

3,167,205

3,137,926

Stock in Federal Reserve Bank and Federal Home Loan Bank

20,875

16,837

14,225

14,246

12,796

Bank premises and equipment, net

19,668

19,946

20,412

20,611

24,878

Operating lease right-of-use assets

10,465

10,293

10,206

10,646

11,402

Goodwill and other intangible assets

94,444

94,768

95,092

95,417

95,741

Assets held for sale, net

3,898

5,136

6,359

6,735

3,115

Bank-owned life insurance

67,010

66,578

67,685

67,588

67,176

Deferred tax assets, net

25,582

25,232

24,513

22,395

24,179

Consumer Program derivative asset

9,763

9,929

10,685

10,806

12,818

Other assets


62,002

63,917

64,050

65,583

59,847


Total assets

$    4,024,603

$    3,966,364

$    3,889,979

$    3,856,546

$    3,838,859









Liabilities and stockholders' equity






Demand deposits

$       421,231

$       420,241

$       463,190

$       472,941

$       490,719

NOW accounts


748,833

793,608

771,116

773,028

803,276

Money market accounts

835,099

831,834

834,514

794,530

800,951

Savings accounts

873,810

866,279

823,325

783,758

746,608

Time deposits


427,458

423,501

422,778

445,898

451,850

    Total deposits


3,306,431

3,335,463

3,314,923

3,270,155

3,293,404

Securities sold under agreements to repurchase - short term

3,677

3,273

3,038

3,044

3,838

Federal Home Loan Bank advances

165,000

80,000

25,000

30,000

-

Secured borrowings

17,495

21,069

21,298

20,393

29,649

Subordinated debt and notes

95,808

95,737

95,666

95,595

95,524

Operating lease liabilities

11,704

11,488

11,353

11,686

12,347

Other liabilities


27,168

24,777

24,102

28,080

26,487


Total liabilities

3,627,283

3,571,807

3,495,380

3,458,953

3,461,249

Total Primis common stockholders' equity

381,352

376,393

374,577

376,161

377,610

Noncontrolling interest

15,968

18,164

20,022

21,432

-


Total stockholders' equity

397,320

394,557

394,599

397,593

377,610


Total liabilities and stockholders' equity

$    4,024,603

$    3,966,364

$    3,889,979

$    3,856,546

$    3,838,859









Tangible common equity(1)

$       286,908

$       281,625

$       279,485

$       280,744

$       281,869

 

Primis Financial Corp.   










(Dollars in thousands)

For Three Months Ended:



For Nine Months Ended:













Condensed Consolidated Statement of Operations (unaudited)

3Q 2024

2Q 2024

1Q 2024

4Q 2023

3Q 2023



3Q 2024

3Q 2023

Interest and dividend income

$         57,112

$         52,199

$         50,345

$         50,163

$         48,027



$     159,656

$    142,485

Interest expense


29,089

27,346

25,076

24,437

23,697



81,511

69,499


Net interest income

28,023

24,853

25,269

25,726

24,330



78,145

72,986

Provision for credit losses

7,511

3,119

6,508

21,310

1,616



17,138

11,231


Net interest income after provision for credit losses

20,512

21,734

18,761

4,416

22,714



61,007

61,755

Account maintenance and deposit service fees

1,468

1,861

1,393

1,518

1,534



4,722

4,215

Income from bank-owned life insurance

431

1,327

564

420

787



2,322

1,601

Mortgage banking income

6,803

6,402

5,574

3,210

4,922



18,779

14,435

Gain (loss) on sale of loans

-

(29)

336

526

217



307

268

Consumer Program derivative

79

1,272

2,041

2,886

2,033



3,392

15,233

Gain (loss) on other investments

51

136

206

190

30



393

(6)

Gain (loss) on bank premises and equipment

352

124

-

(478)

2



476

2

Other 


99

105

193

169

201



397

584


Noninterest income

9,283

11,198

10,307

8,441

9,726



30,788

36,332

Employee compensation and benefits

16,764

16,088

15,735

14,645

13,809



48,587

44,120

Occupancy and equipment expenses

3,071

3,099

3,106

2,982

3,170



9,276

9,637

Amortization of intangible assets

318

317

317

317

317



952

952

Goodwill impairment

-

-

-

-

11,150



-

11,150

Virginia franchise tax expense

631

632

631

849

849



1,894

2,546

Data processing expense

2,552

2,347

2,231

2,216

2,250



7,130

7,329

Marketing expense

449

499

459

352

377



1,407

1,467

Telecommunication and communication expense

330

341

346

358

356



1,017

1,149

Professional fees


2,914

2,976

1,365

1,586

1,118



7,255

3,055

Miscellaneous lending expenses

1,098

285

451

1,128

424



1,834

1,878

Other expenses


2,918

3,202

2,897

3,347

3,130



9,017

11,060


Noninterest expense

31,045

29,786

27,538

27,780

36,950



88,369

94,343

Income (loss) before income taxes

(1,250)

3,146

1,530

(14,923)

(4,510)



3,426

3,744

Income tax expense (benefit)

(304)

1,265

718

(4,472)

1,519



1,679

3,405


Net Income (loss)

(946)

1,881

812

(10,451)

(6,029)



1,747

339


Noncontrolling interest

2,158

1,901

1,654

2,280

-



5,713

-


Net income (loss) attributable to Primis' common shareholders

$           1,212

$           3,782

$           2,466

$          (8,171)

$          (6,029)



$        7,460

$           339



(1)

See Reconciliation of Non-GAAP financial measures.

 

Primis Financial Corp






(Dollars in thousands)

As Of:









Loan Portfolio Composition

3Q 2024

2Q 2024

1Q 2024

4Q 2023

3Q 2023

Loans held for sale

$       467,325

$         94,644

$         72,217

$         57,691

$         66,266

Loans secured by real estate:







Commercial real estate - owner occupied

463,848

463,328

458,026

455,397

432,367


Commercial real estate - non-owner occupied

609,743

612,428

577,752

578,600

605,508


Secured by farmland

4,356

4,758

4,341

5,044

5,082


Construction and land development

105,541

104,886

146,908

164,742

170,849


Residential 1-4 family

607,313

608,049

602,124

606,226

600,389


Multi-family residential

169,368

171,512

128,599

127,857

129,586


Home equity lines of credit

62,421

62,138

57,765

59,670

59,996


     Total real estate loans

2,022,590

2,027,099

1,975,515

1,997,536

2,003,777









Commercial loans

526,772

619,365

623,804

602,623

603,637

Paycheck Protection Program loans

1,941

1,969

2,003

2,023

2,105

Consumer loans


408,378

646,590

620,745

611,583

558,277


Total Non-PCD loans

2,959,681

3,295,023

3,222,067

3,213,765

3,167,796

PCD loans


5,439

5,539

5,598

5,649

5,992

Total loans receivable, net of deferred fees

$    2,965,120

$    3,300,562

$    3,227,665

$    3,219,414

$    3,173,788









Loans by Risk Grade:






  Pass, not graded

$                  -

$                  -

$                  -

$                  -

$                  -

  Pass Grade 1 - Highest Quality

820

692

633

875

851

  Pass Grade 2 - Good Quality

169,285

488,728

412,593

405,019

383,306

  Pass Grade 3 - Satisfactory Quality

1,509,280

1,503,918

1,603,053

1,626,380

1,632,256

  Pass Grade 4 - Pass

1,184,671

1,204,268

1,177,065

1,154,971

1,095,264

  Pass Grade 5 - Special Mention

53,473

87,471

19,454

14,930

33,299

  Grade 6 - Substandard

47,591

15,485

14,867

17,239

28,812

  Grade 7 - Doubtful

-

-

-

-

-

  Grade 8 - Loss


-

-

-

-

-

Total loans


$    2,965,120

$    3,300,562

$    3,227,665

$    3,219,414

$    3,173,788

















(Dollars in thousands)

As Of or For Three Months Ended:









Asset Quality Information

3Q 2024

2Q 2024

1Q 2024

4Q 2023

3Q 2023

Allowance for Credit Losses:



Balance at beginning of period

$        (51,574)

$        (53,456)

$        (52,209)

$        (35,862)

$        (38,541)

Provision for for credit losses

(7,511)

(3,119)

(6,508)

(21,310)

(1,616)

Net charge-offs


7,953

5,001

5,261

4,963

4,295

Ending balance


$        (51,132)

$        (51,574)

$        (53,456)

$        (52,209)

$        (35,862)









Reserve for Unfunded Commitments:



Balance at beginning of period

$          (1,031)

$          (1,577)

$          (1,579)

$          (1,025)

$          (1,282)

(Expense for) / recovery of unfunded loan commitment reserve

(96)

546

2

(554)

257

Total Reserve for Unfunded Commitments

$          (1,127)

$          (1,031)

$          (1,577)

$          (1,579)

$          (1,025)




















As Of:









Non-Performing Assets:

3Q 2024

2Q 2024

1Q 2024

4Q 2023

3Q 2023

Nonaccrual loans

$         14,424

$         11,289

$         10,139

$           9,095

$         20,171

Accruing loans delinquent 90 days or more

1,714

1,897

1,714

1,714

1,625

Total non-performing assets

$         16,138

$         13,186

$         11,853

$         10,809

$         21,796

SBA guaranteed portion of non-performing loans

$           5,954

$           3,268

$           3,095

$           3,115

$           2,290

 

Primis Financial Corp.   










(Dollars in thousands)

For Three Months Ended:



For Nine Months Ended:













Average Balance Sheet

3Q 2024

2Q 2024

1Q 2024

4Q 2023

3Q 2023



3Q 2024

3Q 2023

Assets











Loans held for sale

$         98,110

$         84,389

$         58,896

$         48,380

$         55,775



$       80,530

$      43,384

Loans, net of deferred fees 

3,324,157

3,266,651

3,206,888

3,208,295

3,193,236



3,266,111

3,099,225

Investment securities

242,631

244,308

241,179

228,335

234,601



242,706

240,525

Other earning assets

83,405

73,697

77,067

79,925

93,159



78,076

348,831

Total earning assets

3,748,303

3,669,045

3,584,030

3,564,935

3,576,771



3,667,423

3,731,965

Other assets


243,972

243,200

248,082

262,977

268,038



244,913

260,474

Total assets


$    3,992,275

$    3,912,245

$    3,832,112

$    3,827,912

$    3,844,809



$  3,912,336

$  3,992,439













Liabilities and equity











Demand deposits

$       421,908

$       433,315

$       458,306

$       473,750

$       472,485



$     440,172

$    500,459

Interest-bearing liabilities:










NOW and other demand accounts

748,202

778,458

773,943

782,305

806,339



766,800

785,480

Money market accounts

859,988

823,156

814,147

790,971

850,892



832,531

844,752

Savings accounts

866,375

866,652

800,328

783,432

703,809



844,531

775,024

Time deposits 


425,238

423,107

431,340

451,521

460,961



426,557

481,813

   Total Deposits

3,321,711

3,324,688

3,278,064

3,281,979

3,294,486



3,310,591

3,387,528

Borrowings


238,994

158,919

120,188

120,213

119,797



172,942

172,662

  Total Funding


3,560,705

3,483,607

3,398,252

3,402,192

3,414,283



3,483,533

3,560,190

Other Liabilities


36,527

34,494

34,900

39,056

39,303



35,344

35,457

Total liabilites


3,597,232

3,518,101

3,433,152

3,441,248

3,453,586



3,518,877

3,595,647

Primis common stockholders' equity

377,595

374,735

378,008

384,332

391,223



374,189

396,792

Noncontrolling interest

17,448

19,409

20,952

2,332

-



19,270

-

Total stockholders' equity

395,043

394,144

398,960

386,664

391,223



393,459

396,792

Total liabilities and stockholders' equity

$    3,992,275

$    3,912,245

$    3,832,112

$    3,827,912

$    3,844,809



$  3,912,336

$  3,992,439

























Net Interest Income










Loans held for sale

$           1,589

$           1,521

$             907

$             842

$             873



$        4,017

$        1,964

Loans



52,707

48,032

46,825

46,723

44,439



147,564

123,289

Investment securities

1,799

1,805

1,715

1,645

1,593



5,319

4,728

Other earning assets

1,017

841

898

953

1,122



2,756

12,504

   Total Earning Assets Income

57,112

52,199

50,345

50,163

48,027



159,656

142,485













Non-interest bearing DDA

-

-

-

-

-



-

-

NOW and other interest-bearing demand accounts

4,630

4,827

4,467

4,334

4,460



13,924

11,070

Money market accounts

7,432

6,788

6,512

6,129

6,555



20,732

17,587

Savings accounts

8,918

8,912

8,045

7,860

6,760



25,876

21,915

Time deposits 


4,371

4,095

3,990

3,964

3,801



12,455

10,831

  Total Deposit Costs

25,351

24,622

23,014

22,287

21,576



72,987

61,403













Borrowings


3,738

2,724

2,062

2,150

2,121



8,524

8,096

  Total Funding Costs

29,089

27,346

25,076

24,437

23,697



81,511

69,499













Net Interest Income

$         28,023

$         24,853

$         25,269

$         25,726

$         24,330



$       78,145

$      72,986





































Net Interest Margin










Loans held for sale

6.44 %

7.25 %

6.19 %

6.90 %

6.21 %



6.66 %

6.05 %

Loans



6.31 %

5.91 %

5.87 %

5.78 %

5.52 %



6.04 %

5.32 %

Investments


2.95 %

2.97 %

2.86 %

2.86 %

2.69 %



2.93 %

2.63 %

Other Earning Assets

4.85 %

4.59 %

4.69 %

4.73 %

4.78 %



4.72 %

4.79 %

  Total Earning Assets

6.06 %

5.72 %

5.65 %

5.58 %

5.33 %



5.82 %

5.10 %













NOW



2.46 %

2.49 %

2.32 %

2.20 %

2.19 %



2.43 %

1.88 %

MMDA


3.44 %

3.32 %

3.22 %

3.07 %

3.06 %



3.33 %

2.78 %

Savings


4.10 %

4.14 %

4.04 %

3.98 %

3.81 %



4.09 %

3.78 %

CDs 



4.09 %

3.89 %

3.72 %

3.48 %

3.27 %



3.90 %

3.01 %

  Cost of Interest Bearing Deposits

3.48 %

3.42 %

3.28 %

3.15 %

3.03 %



3.40 %

2.84 %

  Cost of Deposits

3.04 %

2.98 %

2.82 %

2.69 %

2.60 %



2.94 %

2.42 %













Other Funding


6.22 %

6.89 %

6.90 %

7.10 %

7.02 %



6.58 %

6.27 %

  Total Cost of Funds

3.25 %

3.16 %

2.97 %

2.85 %

2.75 %



3.13 %

2.61 %













Net Interest Margin

2.97 %

2.72 %

2.84 %

2.86 %

2.70 %



2.85 %

2.61 %

Net Interest Spread

2.37 %

2.12 %

2.22 %

2.27 %

2.13 %



2.24 %

2.49 %

 

Primis Financial Corp.   










(Dollars in thousands, except per share data)

For Three Months Ended:



For Nine Months Ended:













Reconciliation of Non-GAAP items:

3Q 2024

2Q 2024

1Q 2024

4Q 2023

3Q 2023



3Q 2024

3Q 2023

Net income (loss) attributable to Primis' common shareholders

$           1,212

$           3,782

$           2,466

$          (8,171)

$          (6,029)



$        7,460

$           339

Non-GAAP adjustments to Net Income:











Branch Consolidation / Other restructuring

-

-

-

449

-



-

1,488


Loan officer fraud, operational losses

-

-

-

-

200



-

200


Professional fee expenses related to the SEC pre-clear process and financial reporting restatements

1,352

1,453

438

-

-



3,243

-


Professional fee expenses related to Panacea investment

-

-

-

194

-



-

-


Goodwill impairment

-

-

-

-

11,150



-

11,150


Gains on sale of closed bank branch buildings

(352)

(124)

-

-

-



(476)

-


Income tax effect

(216)

(287)

(95)

(139)

(44)



(598)

(365)

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

$           1,996

$           4,824

$           2,809

$          (7,667)

$           5,277



$        9,629

$      12,813













Net income (loss) attributable to Primis' common shareholders

$           1,212

$           3,782

$           2,466

$          (8,171)

$          (6,029)



$        7,460

$           339


Income tax expense (benefit)

(304)

1,265

718

(4,472)

1,519



1,679

3,405


Provision for credit losses (incl. unfunded commitment expense)

7,607

2,573

6,506

21,864

1,359



16,686

10,685

Pre-tax pre-provision earnings

$           8,515

$           7,620

$           9,690

$           9,221

$          (3,151)



$       25,825

$      14,429


Effect of adjustment for nonrecurring income and expenses

1,000

1,329

438

643

11,350



2,767

12,838

Pre-tax pre-provision operating earnings

$           9,515

$           8,949

$         10,128

$           9,864

$           8,199



$       28,592

$      27,267













Return on average assets 

0.12 %

0.39 %

0.26 %

(0.85 %)

(0.62 %)



0.25 %

0.01 %


Effect of adjustment for nonrecurring income and expenses

0.08 %

0.11 %

0.04 %

0.05 %

1.17 %



0.07 %

0.42 %

Operating return on average assets 

0.20 %

0.50 %

0.29 %

(0.79 %)

0.54 %



0.33 %

0.43 %













Return on average assets 

0.12 %

0.39 %

0.26 %

(0.85 %)

(0.62 %)



0.25 %

0.01 %


Effect of tax expense

(0.03 %)

0.13 %

0.08 %

(0.46 %)

0.16 %



0.06 %

0.11 %


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

0.76 %

0.26 %

0.68 %

2.27 %

0.14 %



0.57 %

0.36 %

Pre-tax pre-provision return on average assets 

0.85 %

0.78 %

1.02 %

0.96 %

(0.33 %)



0.88 %

0.48 %


Effect of adjustment for nonrecurring income and expenses and expenses

0.10 %

0.14 %

0.04 %

0.05 %

0.02 %



0.09 %

0.43 %

Pre-tax pre-provision operating return on average assets

0.95 %

0.92 %

1.05 %

1.01 %

(0.30 %)



0.98 %

0.91 %













Return on average common equity

1.28 %

4.06 %

2.62 %

(8.43 %)

(6.11 %)



2.66 %

0.11 %


Effect of adjustment for nonrecurring income and expenses

0.83 %

1.12 %

0.37 %

0.52 %

11.47 %



0.77 %

4.20 %

Operating return on average common equity

2.11 %

5.18 %

2.99 %

(7.91 %)

5.35 %



3.44 %

4.32 %


Effect of goodwill and other intangible assets

0.69 %

1.75 %

0.99 %

(2.61 %)

2.00 %



1.17 %

1.60 %

Operating return on average tangible common equity

2.80 %

6.93 %

3.98 %

(10.53 %)

7.35 %



4.60 %

5.92 %













Efficiency ratio


83.22 %

82.62 %

77.41 %

81.31 %

108.50 %



81.12 %

86.30 %


Effect of adjustment for nonrecurring income and expenses

(2.87 %)

(3.76 %)

(1.23 %)

(1.88 %)

(33.33 %)



(2.63 %)

(11.74 %)

Operating efficiency ratio 

80.35 %

78.86 %

76.17 %

79.43 %

75.17 %



78.49 %

74.56 %













Earnings per common share - Basic

$            0.05

$            0.15

$            0.10

$           (0.33)

$           (0.24)



$          0.30

$          0.01


Effect of adjustment for nonrecurring income and expenses

0.03

0.05

0.01

0.02

0.45



0.09

0.51

Operating earnings per common share - Basic

$            0.08

$            0.20

$            0.11

$           (0.31)

$            0.21



$          0.39

$          0.52













Earnings per common share - Diluted

$            0.05

$            0.15

$            0.10

$           (0.33)

$           (0.24)



$          0.30

$          0.01


Effect of adjustment for nonrecurring income and expenses

0.03

0.05

0.01

0.02

0.45



0.09

0.51

Operating earnings per common share - Diluted

$            0.08

$            0.20

$            0.11

$           (0.31)

$            0.21



$          0.39

$          0.52













Book value per common share

$           15.43

$           15.23

$           15.16

$           15.23

$           15.30



$        15.43

$        15.30


Effect of goodwill and other intangible assets

(3.82)

(3.83)

(3.85)

(3.86)

(3.88)



(3.82)

(3.88)

Tangible book value per common share

$           11.61

$           11.40

$           11.31

$           11.37

$           11.42



$        11.61

$        11.42













Total Primis common stockholders' equity

$       381,352

$       376,393

$       374,577

$       376,161

$       377,610



$     381,352

$    377,610


Less goodwill and other intangible assets

(94,444)

(94,768)

(95,093)

(95,417)

(95,741)



(94,444)

(95,741)

Tangible common equity

$       286,908

$       281,625

$       279,484

$       280,744

$       281,869



$     286,908

$    281,869













Common equity to assets

9.48 %

9.49 %

9.63 %

9.75 %

9.84 %



9.48 %

9.84 %


Effect of goodwill and other intangible assets

(2.18 %)

(2.22 %)

(2.27 %)

(2.29 %)

(2.31 %)



(2.18 %)

(2.31 %)

Tangible common equity to tangible assets

7.30 %

7.27 %

7.36 %

7.46 %

7.53 %



7.30 %

7.53 %

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/primis-financial-corp-reports-earnings-per-share-for-the-third-quarter-of-2024-302286204.html

SOURCE Primis Financial Corp.

FAQ

What was Primis Financial's (FRST) earnings per share in Q3 2024?

Primis Financial reported earnings of $0.05 per diluted share in Q3 2024, with operating earnings per share of $0.08 after adjusting for nonrecurring items.

How much is EverBank paying for Primis Financial's (FRST) Life Premium Finance Division?

EverBank is acquiring the Life Premium Finance Division for a premium of $6.0 million, with Primis expecting to record a pre-tax gain of $4.5 million net of advisory and legal fees in Q4 2024.

What was Primis Financial's (FRST) net interest margin in Q3 2024?

Primis Financial reported a net interest margin of 2.97% in Q3 2024, an increase from 2.72% in Q2 2024.

Primis Financial Corp.

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