MCLEAN,
Va., Nov. 9, 2023 /PRNewswire/ -- Primis
Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), and its
wholly-owned subsidiary, Primis Bank (the "Bank"), today amended
its previously announced financial results for the three and nine
months ended September 30, 2023.
Revised results reflect a non-cash after-tax goodwill impairment
charge of $11.2 million. As
required under generally accepted accounting principles, the
Company tests goodwill for impairment at least annually and more
frequently if there are indications that goodwill could be
impaired. Accordingly, the Company engaged an independent
valuation firm to evaluate the Company's goodwill for impairment as
of September 30, 2023. While the
significant decline in the Company's stock price in the third
quarter to a level substantially below book value indicated the
possible existence of impairment at September 30, 2023, preliminary valuation results
at the time of the Company's October 26,
2023 earnings release, using consistent techniques from
impairment testing in previous periods, supported a fair value of
the reporting unit in excess of book value, indicating that no
goodwill impairment was necessary.
Because of the significant difference between the preliminary
fair value as modeled and the Company's market capitalization at
September 30, 2023, the Company has
continued to analyze the goodwill valuation results, including
stressing certain assumptions and inputs to the modeling,
subsequent to its previously announced financial results for the
third quarter of 2023. After further analysis of lower fair
values produced under more conservative assumptions and inputs,
including lower assumed cash flows and a higher discount rate, have
caused the Company to conclude that an $11.2
million partial impairment of goodwill is warranted.
This impairment is a non-cash accounting charge to earnings and has
no impact on the Company's core net income, profitability, cash
flows or liquidity, nor does it impact tangible or regulatory
capital ratios which already exclude goodwill.
The Company is amending its previously announced third quarter
financial results as provided below, which replaces the earnings
release of October 26, 2023 in its
entirety.
Third Quarter Results
The Company reported a net loss of $3.6
million for the quarter ended September 30, 2023, compared to net income of
$5.0 million for the quarter ended
September 30, 2022. Diluted
earnings per share ("EPS") for the three months ended September 30, 2023 was a loss of $0.14 versus earnings of $0.20 per diluted share reported in the third
quarter of 2022. For the year-to-date period in 2023, the
Company reported earnings and diluted earnings per share of
$2.2 million and $0.09, respectively, compared to $14.5 million and $0.59, respectively, in the same period in
2022.
Excluding nonrecurring items, including the goodwill impairment
charge in the third quarter of 2023, adjusted net income was
$7.7 million for the quarter ended
September 30, 2023, compared to
adjusted net income of $5.3 million
for the quarter ended September 30,
2022. Operating earnings per diluted share was $0.32 for the three months ended September 30, 2023, an increase of 52% from
$0.21 in the year-ago period.
For the year-to-date period in 2023, the Company reported adjusted
earnings and operating earnings per diluted share of $14.7 million and $0.60, respectively, compared to $15.3 million and $0.62, respectively, in the same period in
2022.
The results of the third quarter of 2023 reflected material
improvement in operating results across several fronts.
Notably, the Company:
- Operating return on average assets(1) was 81 basis
points, up from 9 basis points in the second quarter and 64 basis
points a year ago.
- Generated a margin of 3.02%, up from 2.65% linked quarter due
to sweeping off excess funds and tightly managing the balance sheet
to maximize incremental spreads.
- Sold approximately $15 million of
loans for a gain of approximately $400
thousand and participated out another $10 million to manage balance sheet
capacity.
- Reduced noninterest expense, excluding goodwill impairment, to
$25.9 million for the third quarter
of 2023, compared to $30.6 million
for the second quarter of 2023. Excluding other nonrecurring,
mortgage and unfunded reserve expenses, noninterest expense was
$20.9 million in the third quarter,
down from $24.0 million in the second
quarter of 2023 on a comparable basis.
- Maintained peer-group leading liquidity with no FHLB
borrowings, only $75 million of
brokered CDs and $228.7 million of
off-balance sheet funds swept off at September 30, 2023.
- 21% reduction in nonperforming assets, excluding SBA
guarantees, linked-quarter to $19.6
million. Subsequent to quarter end, additional
resolution occurred that results in the following pro forma credit
metrics:
- Nonperforming assets to total assets of 0.17%
- Loan loss reserve as a percentage of nonperforming assets of
550%.
- Grew all capital ratios including TCE/TA. Leverage ratio
increased to 8.80%.
- Opened 2,404 new deposit account relationships totaling
$72.7 million with a weighted average
cost of only 1.80%.
Commenting on the quarterly results, Dennis J. Zember Jr., President and CEO stated,
"We are excited about the improvement in our results and believe we
are positioned very well for the current environment. The
Bank experienced a great quarter with an improved margin,
substantial new deposit account openings at low rates and downward
trends on operating expenses ahead of the planned consolidation of
eight retail banking offices in late October 2023. There is
building momentum at the community bank with our technology and
convenience factors, resulting in us seeing material deposit
opportunities that otherwise would not be available to the
Bank.
As far as our positioning in the current environment, we have
existing liquidity levels that are substantial with deposit growth
strategies that are very incremental. As of this press
release, we have only 0.17% of non-performing assets with no
concentrations of credit in areas of concern to investors.
Lastly, we have strong capital levels that we expect to build
further during the upcoming periods and believe position us to have
all the strategic options we need."
Net Interest Income
Net interest income increased approximately $1.0 million to $27.1
million during the quarter compared to the second quarter of
2023 as higher earning asset yields offset increased funding
costs. For the third quarter of 2023, the Company reported a
net interest margin of 3.02% versus 2.65% for the second quarter of
2023. The second quarter included substantial excess cash
which lowered margin prior to the sweep program implementation on
June 30, 2023. Adjusting for
excess cash, net interest margin in the second quarter would have
been 3.00%.
Commenting on net interest margin trends, Mr. Zember said, "On a
comparable basis, when you exclude the excess liquidity and
deposits, our margin improved linked-quarter. Further, it was
higher in the month of September at 3.05%. To be recording
increasing margins in this environment is notable, but to do this
alongside the substantial growth in deposit levels our bank is
experiencing is remarkable. Our deposit growth engine, with
unique technology and convenience factors combined with the sales
intensity at our community bank is fueling this success. For
the third quarter, we opened new deposit accounts totaling
$73 million with a weighted average
cost of 1.80%. We funded new loans in the Bank totaling
$104 million with a weighted average
yield of 7.95%, producing incremental spreads of 5.18% on new
business in the quarter. This kind of incremental momentum is
critical right now as the industry grapples with rising deposit
costs and clearly gives us an advantage over our peers."
Interest income on earning assets decreased during the third
quarter of 2023 to $50.5 million
compared to $52.7 million during the
second quarter of 2023 due to lower interest on excess cash
balances. Yield on earning assets and loans held for
investment were 5.63% and 5.86%, respectively, up 29 basis points
and 26 basis points, respectively, from the second quarter of
2023.
Interest expense declined $3.2
million in the third quarter of 2023 from the second quarter
of 2023 as a result of excess deposits swept off of the balance
sheet beginning June 30, 2023.
Cost of deposits declined 10 basis points to 2.60% in the third
quarter from 2.70% in the second quarter of 2023 as higher cost
deposits entered the sweep program. Management continues to
leverage the strong liquidity generated by the Bank's digital
platform to conservatively manage the cost of deposits in the core
bank. As highlighted by the table below, core bank deposit
costs increased 11 basis points in the third quarter while the cost
of wholesale funding options, using three month FHLB advance rates
as a proxy, increased 23 basis points in the quarter.
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3Q23
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2Q23
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1Q23
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4Q22
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3Q22
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Core Bank Int.
Exp.
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$ 12,380
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$ 11,823
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$
9,343
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$
5,183
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$
3,287
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Digital Platform Int.
Exp.
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$
9,196
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$ 12,960
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$
5,701
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$
127
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$
0
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Core Bank Avg.
Noninterest-bearing
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$
471,813
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$
472,416
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$
555,771
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$
648,051
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$
665,000
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Core Bank Avg.
Interest-bearing deposits (IBD)
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$2,099,617
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$2,155,212
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$2,149,650
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$2,027,211
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$2,027,332
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Digital Platform Avg.
IBD
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$
723,145
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$1,052,603
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$
481,072
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$ 14,691
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$
89
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Core Bank Cost of
IBD
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2.34 %
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2.20 %
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1.76 %
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1.01 %
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0.64 %
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Core Bank Cost of
Deposits
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1.91 %
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1.80 %
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1.40 %
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0.77 %
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0.48 %
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Digital Platform Cost
of IBD
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5.05 %
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4.94 %
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4.81 %
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3.42 %
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0.55 %
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Avg. 3M FHLB
Rate
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5.54 %
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5.31 %
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4.96 %
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4.40 %
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2.93 %
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Noninterest Income
Noninterest income increased during the third quarter to
$9.9 million when compared to
$8.5 million in the second quarter of
2023. Excluding credit enhancement income from a third-party
managed portfolio, noninterest income increased $0.6 million to $7.9
million in the third quarter of 2023, largely due to
increased gain on sale income and increased BOLI income.
During the third quarter of 2023, the Bank realized $0.4 million of gains associated with the sale of
$15 million of Panacea commercial and
consumer loans. Another $9
million of Panacea loans was classified as held for sale at
September 30, 2023 and is expected to
be sold early in the fourth quarter. Management sees
continued interest in the division's consumer and commercial loans
and believes fourth quarter loan sales will exceed third quarter
amounts.
Noninterest Expense
Noninterest expense was $37.1 million for the third quarter of 2023,
compared to $30.6 million for the
second quarter of 2023. As noted above, noninterest expense for the
third quarter of 2023 included a $11.2
million goodwill impairment charge. Noninterest
expense for the third quarter of 2023 and the second quarter of
2023 included $337 thousand and $515
thousand, respectively, of servicing and other expenses for
a third-party managed loan portfolio. The third quarter of
2023 also included $0.2 million of
nonrecurring expenses while the second quarter included
$1.5 million of branch consolidation
costs. Noninterest expense adjusted for goodwill impairment,
third-party portfolio expenses, branch consolidation costs, other
nonrecurring costs and unfunded commitment reserve impacts was
$25.6 million and $28.8 million for the third and second quarter of
2023, respectively. Included in noninterest expense was
$5.1 million in expenses related
to Primis Mortgage in the third quarter of 2023 versus $5.3 million in the second quarter of 2023 with
decreased mortgage-related expenses driven by slightly lower
activity.
Excluding goodwill impairment, mortgage, nonrecurring expenses,
unfunded reserve expenses and the third party expenses described
above, noninterest expense for the third quarter of 2023 was
$20.5 million versus
$23.5 million in the second
quarter. Compensation and benefits excluding mortgage was
$9.7 million in the third
quarter of 2023, down from $10.8
million during the second quarter of 2023, primarily due to
administrative cost saves announced last quarter and
attrition. FDIC insurance costs decreased $0.25 million in the third quarter of 2023 due to
lower balances as excess deposits were swept to other banks.
Data processing costs were lower by $0.6 million due to low account opening
activity in the third quarter of 2023. Other operating
expenses declined $2.0 million from
the second quarter due to generally tighter expense controls and
lower customer fraud losses.
The Company continues to pursue efficiencies to enhance
operating leverage. As previously disclosed, eight branch
locations will be consolidated in the fourth quarter of 2023 which
will positively impact noninterest expense going forward.
Loan Portfolio and Asset Quality
Loans held for investment decreased to $3.15 billion at September
30, 2023, compared to $3.17
billion at June 30,
2023. The Company sold or participated out approximately
$25 million of loans in the third
quarter and moved another $9 million
to loans held for sale at September
30, 2023. Adjusting for these activities, loans would
have increased slightly in the third quarter of 2023 versus the
second quarter of 2023.
Nonperforming assets, excluding portions guaranteed by the SBA,
were $19.6 million at September 30, 2023, compared to $24.7 million at June 30,
2023, while loans rated substandard or doubtful decreased to
$28.8 million in the third quarter of
2023 from $33.7 million in the second
quarter of 2023. Included in those balances is one remaining
assisted living problem credit outstanding at September 30, 2023 related to the relationship
discussed in previous quarters and with a book balance of
$13.1 million. This credit was
resolved in early October 2023
bringing pro forma nonperforming assets to $6.5 million as of September 30, 2023. The Bank had no other
real estate owned at the end of the third quarter of
2023.
The Company recorded a provision for loan losses of $1.6 million for the third quarter of 2023 versus
$4.3 million for the second quarter
of 2023. Of this provision, $2.1
million was due to charge-offs for the loan portfolio with a
third-party credit enhancement described previously. This
portion of the provision is fully offset by a gain recorded in
noninterest income and has no effect on net income. Excluding
this provision amount, the recovery for loan losses would have been
$0.5 million for the third quarter of
2023 due to lower loan balances and lowered modeled losses on
certain portfolios, particularly Panacea and Life Premium
Finance. As a percentage of loans, excluding PPP balances,
the allowance for credit losses was 1.14% and 1.21% at the end of
the third and second quarter of 2023, respectively.
Net charge-offs were $4.3 million
for the third quarter of 2023, up from $1.6
million for the second quarter of 2023. Excluding the
losses that are covered by a third-party, the third quarter of 2023
would have experienced $2.2 million
of net charge-offs versus $0.2
million of net charge-offs in the second quarter of
2023. Over half of the core charge-offs were related to the
partial resolution of the assisted living relationship detailed
previously that had been reserved for in prior quarters.
Deposits and Funding
Total deposits on the balance sheet at September 30, 2023 decreased to $3.29 billion from $3.32
billion at June 30, 2023 with
excess deposits and associated cash balances swept off the balance
sheet to optimize liquidity. Swept deposits receive full FDIC
coverage, bringing the Bank's percentage of uninsured or unsecured
deposits down to 20%. Liquidity sources represent almost 185%
of uninsured or unsecured deposits, up substantially from
December 31, 2022.
Deposit growth in the community bank continues to benefit from
better technology and unique convenience factors. During the
third quarter, the community bank attracted $50 million in new deposit relationships with a
weighted average cost of 0.39%. V1BE, the Bank's proprietary
delivery tool increased total users by 21% during the quarter, from
838 at the end of the second quarter of 2023 to 1,013 at the end of
the third quarter of 2023.
During the third quarter, the Bank opened 1,369 new deposit
account relationships on the digital platform with a weighted
average cost of 4.9%. This new customer growth is a
direct result of referrals made to us by existing customers with no
marketing costs incurred. At quarter end, the Bank had
13,740 digital accounts with $998.4
million in total deposits, average balances of $72,600 per account and an average age of 49.
The Bank has $75 million of
brokered CDs that mature later in 2023. The Bank has no other
wholesale funding and has $228.7
million of deposits currently sweeping to other banks.
The cost of the swept deposits is materially cheaper than wholesale
funding and available to fund further balance sheet growth as
needed.
Digital Lines of Business
Panacea continues to experience substantial growth alongside the
development of its nationally-recognized brand. Panacea
finished the third quarter of 2023 with approximately $299 million in outstanding loans, an increase of
$8 million from June 30, 2023. As highlighted above,
Panacea sold approximately $15
million of loans in the third quarter of 2023 for a pre-tax
gain of $0.4 million. Panacea
has $9 million of loans categorized
as held for sale at September 30,
2023 in advance of a near-term loan sale and expects further
loan sales throughout the fourth quarter.
Panacea-related deposits increased to $53.3 million at September
30, 2023, up 15% from June 30,
2023 and a substantially higher growth rate than the growth
in loans for the third quarter of 2023. Coupled with its loan
sale strategy, Panacea expects to continue increasing the amount it
self-funds its balance sheet.
The Life Premium Finance ("LPF") division, launched in late
2021, ended the third quarter of 2023 with outstanding balances,
net of deferred fees, of $360.7
million, compared to $346.2
million at the end of the second quarter of 2023, or an
increase of 4%. LPF also participated out approximately
$10 million of loans in the third
quarter.
Primis Mortgage was profitable for the third quarter of 2023
with pre-tax income of $697
thousand. The locked pipeline ended the third quarter
of 2023 down 7% from June 30, 2023
while loans funded decreased to $169
million in the third quarter of 2023 from $184 million in the second quarter of 2023.
Primis Mortgage continues to aggressively manage costs to preserve
profitability in a lower volume environment.
Shareholders' Equity
Book value per share as of September 30,
2023 was $15.51, a decrease of
$0.42 from June 30, 2023. Tangible book value per
share(1) at the end of the third quarter of 2023 was
$11.63, an increase of $0.05 from June 30,
2023. Shareholders' equity was $382.9 million, or 10.0% of total assets, at
September 30, 2023. Tangible
common equity(1) at September 30,
2023 was $287.1 million, or
7.72% of tangible assets(1). Unrealized
losses on the Company's available-for-sale securities portfolio
increased by $4.6 million to
$30.5 million due to increases in
market interest rates during the third quarter of 2023. 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 24, 2023 to shareholders of record on
November 10, 2023. This is
Primis' forty-eighth consecutive quarterly dividend.
About Primis Financial Corp.
As of September 30, 2023, Primis
had $3.8 billion in total assets,
$3.1 billion in total loans and
$3.3 billion in total deposits.
Primis Bank provides a range of financial services to individuals
and small- and medium-sized businesses through thirty-two
full-service branches in Virginia
and Maryland and provides services
to customers through certain online and mobile applications.
Contacts:
|
Address:
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Dennis J. Zember, Jr.,
President and CEO
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Primis Financial
Corp.
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Matthew A. Switzer, EVP
and CFO
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1676 International
Drive, Suite 900
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Phone: (703)
893-7400
|
McLean, VA
22102
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|
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Primis Financial Corp.,
NASDAQ Symbol FRST
|
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Website:
www.primisbank.com
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Non-GAAP Measures
Statements included in this press release include non-GAAP
financial measures and should be read along with the accompanying
tables. Primis uses non-GAAP financial measures to analyze its
performance. The measures entitled net income adjusted for
nonrecurring income and expenses; pre-tax pre-provision operating
earnings; operating return on average assets; pre-tax pre-provision
operating return on average assets; operating return on average
equity; operating return on average tangible equity; operating
efficiency ratio; operating earnings per share – basic; operating
earnings per share – diluted; tangible book value per share;
tangible common equity; tangible common equity to tangible assets;
and core net interest margin are not measures recognized under GAAP
and therefore are considered non-GAAP financial measures. We use
the term "operating" to describe a financial measure that excludes
income or expense considered to be non-recurring in nature.
Items identified as non-operating are those that, when excluded
from a reported financial measure, provide management or the reader
with a measure that may be more indicative of forward-looking
trends in our business. A reconciliation of these non-GAAP
financial measures to the most comparable GAAP measures is provided
in the Reconciliation of Non-GAAP Items table.
Management believes that these non-GAAP financial measures
provide additional useful information about Primis that allows
management and investors to evaluate the ongoing operating results,
financial strength and performance of Primis and provide meaningful
comparison to its peers. Non-GAAP financial measures should not be
considered as an alternative to any measure of performance or
financial condition as promulgated under GAAP, and investors should
consider Primis' performance and financial condition as reported
under GAAP and all other relevant information when assessing the
performance or financial condition of Primis. Non-GAAP
financial measures are not standardized and, therefore, it may not
be possible to compare these measures with other companies that
present measures having the same or similar names.
Non-GAAP financial measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the results or financial condition as
reported under GAAP.
Forward-Looking Statements
This press release and certain of our other filings with the
Securities and Exchange Commission contain statements that
constitute "forward-looking statements" within the meaning of, and
subject to the protections of, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. All statements other than statements of
historical fact are forward-looking statements. Such statements can
generally be identified by such words as "may," "plan,"
"contemplate," "anticipate," "believe," "intend," "continue,"
"expect," "project," "predict," "estimate," "could," "should,"
"would," "will," and other similar words or expressions of the
future or otherwise regarding the outlook for the Company's future
business and financial performance and/or the performance of the
banking industry and economy in general. These forward-looking
statements include, but are not limited to, our expectations
regarding our future operating and financial performance, including
our outlook and long-term goals for future growth and new offerings
and services; our expectations regarding net interest margin;
expectations on our growth strategy, expense management, capital
management and future profitability; expectations on credit quality
and performance; and the assumptions underlying our
expectations.
Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve known and unknown risks and uncertainties which may
cause the actual results, performance or achievements of the
Company to be materially different from the future results,
performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements are based on
the information known to, and current beliefs and expectations of,
the Company's management and are subject to significant risks and
uncertainties. Actual results may differ materially from those
contemplated by such forward-looking statements. Factors that might
cause such differences include, but are not limited to: the
Company's ability to implement its various strategic and growth
initiatives, including its recently established Panacea Financial
and Life Premium Finance Divisions, new digital banking platform,
V1BE fulfillment service and Primis Mortgage Company; competitive
pressures among financial institutions increasing significantly;
changes in applicable laws, rules, or regulations, including
changes to statutes, regulations or regulatory policies or
practices; changes in management's plans for the future; credit
risk associated with our lending activities; changes in interest
rates, inflation, loan demand, real estate values, or competition,
as well as labor shortages and supply chain disruptions; changes in
accounting principles, policies, or guidelines; adverse results
from current or future litigation, regulatory examinations or other
legal and/or regulatory actions; potential impacts of the recent
adverse developments in the banking industry highlighted by
high-profile bank failures, including impacts on customer
confidence, deposit outflows, liquidity and the regulatory response
thereto; potential increases in the provision for credit losses;
and other general competitive, economic, political, and market
factors, including those affecting our business, operations,
pricing, products, or services.
Forward-looking statements speak only as of the date on which
such statements are made. These forward-looking statements are
based upon information presently known to the Company's management
and are inherently subjective, uncertain and subject to change due
to any number of risks and uncertainties, including, without
limitation, the risks and other factors set forth in the Company's
filings with the Securities and Exchange Commission, the Company's
Annual Report on Form 10-K for the year ended December 31, 2022, under the captions "Cautionary
Note Regarding Forward-Looking Statements" and "Risk Factors," and
in the Company's Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. The Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made, or to reflect the
occurrence of unanticipated events. Readers are cautioned not to
place undue reliance on these forward-looking statements.
(1)
|
Non-GAAP financial measure. Please see
"Reconciliation of Non-GAAP Items" in the financial tables for more
information and for a reconciliation to GAAP.
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Primis Financial
Corp.
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Financial Highlights
(unaudited)
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(Dollars in
thousands, except per share data)
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For Three Months
Ended:
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Variance - 3Q 2023
vs.
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For Nine Months
Ended:
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Variance
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Selected Performance
Ratios:
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3Q
2023
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2Q
2023
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1Q
2023
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4Q
2022
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3Q
2022
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2Q
2023
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3Q
2022
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3Q
2023
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3Q
2022
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YTD
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Return on average
assets
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(0.37 %)
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(0.02 %)
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0.62 %
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0.35 %
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0.61 %
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(35)
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bps
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(98)
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bps
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0.07 %
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0.59 %
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(52)
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bps
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Operating return on
average assets(1)
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0.81 %
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0.09 %
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0.62 %
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0.08 %
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0.64 %
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72
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18
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0.49 %
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0.63 %
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(13)
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Pre-tax pre-provision
return on average assets(1)
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(0.03 %)
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0.37 %
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1.31 %
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1.32 %
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1.16 %
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(39)
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(118)
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0.54 %
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0.91 %
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(37)
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Pre-tax pre-provision
operating return on average assets(1)
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1.15 %
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0.51 %
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1.31 %
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0.98 %
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1.20 %
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64
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(5)
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0.97 %
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0.96 %
|
|
2
|
|
Return on average
equity
|
(3.57 %)
|
(0.19 %)
|
5.98 %
|
3.04 %
|
4.98 %
|
|
(338)
|
|
(855)
|
|
|
0.74 %
|
4.77 %
|
|
(404)
|
|
Operating return on
average equity(1)
|
7.75 %
|
0.98 %
|
5.98 %
|
0.71 %
|
5.22 %
|
|
677
|
|
253
|
|
|
4.91 %
|
5.22 %
|
|
(31)
|
|
Operating return on
average tangible equity(1)
|
10.61 %
|
1.33 %
|
8.14 %
|
0.98 %
|
7.15 %
|
|
928
|
|
346
|
|
|
6.71 %
|
7.09 %
|
|
(38)
|
|
Cost of
funds
|
|
2.73 %
|
2.81 %
|
2.19 %
|
1.19 %
|
0.71 %
|
|
(8)
|
|
202
|
|
|
2.59 %
|
0.59 %
|
|
200
|
|
Net interest
margin
|
3.02 %
|
2.65 %
|
3.15 %
|
3.67 %
|
3.57 %
|
|
37
|
|
(54)
|
|
|
2.93 %
|
3.28 %
|
|
(35)
|
|
Core net interest
margin(1)
|
3.02 %
|
2.65 %
|
3.16 %
|
3.68 %
|
3.58 %
|
|
36
|
|
(57)
|
|
|
2.93 %
|
3.30 %
|
|
(36)
|
|
Gross loans to
deposits
|
95.52 %
|
95.68 %
|
82.92 %
|
108.24 %
|
100.98 %
|
|
(0)
|
pts
|
(5)
|
pts
|
|
95.52 %
|
100.98 %
|
|
(5)
|
pts
|
Efficiency
ratio
|
|
100.01 %
|
81.34 %
|
68.69 %
|
71.82 %
|
71.93 %
|
|
19
|
|
2,808
|
|
|
85.15 %
|
74.29 %
|
|
1,085
|
|
Operating efficiency
ratio(1)
|
69.39 %
|
77.06 %
|
68.69 %
|
76.78 %
|
70.99 %
|
|
(8)
|
|
(161)
|
|
|
73.64 %
|
72.27 %
|
|
138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
Basic
|
$
(0.14)
|
$
(0.01)
|
$
0.24
|
$
0.12
|
$
0.21
|
|
NM
|
%
|
(167.49)
|
%
|
|
$
0.09
|
$
0.60
|
|
(85.16)
|
%
|
Operating earnings per
share - Basic(1)
|
$
0.32
|
$
0.04
|
$
0.24
|
$
0.03
|
$
0.21
|
|
NM
|
|
51.24
|
|
|
$
0.60
|
$
0.63
|
|
(4.73)
|
|
Earnings per share -
Diluted
|
$
(0.14)
|
$
(0.01)
|
$
0.24
|
$
0.12
|
$
0.20
|
|
NM
|
|
(171.11)
|
|
|
$
0.09
|
$
0.59
|
|
(84.83)
|
|
Operating earnings per
share - Diluted(1)
|
$
0.32
|
$
0.04
|
$
0.24
|
$
0.03
|
$
0.21
|
|
NM
|
|
51.93
|
|
|
$
0.60
|
$
0.62
|
|
(4.25)
|
|
Book value per
share
|
$
15.51
|
$
15.93
|
$
16.14
|
$
15.90
|
$
15.82
|
|
(2.62)
|
|
(1.95)
|
|
|
$
15.51
|
$
15.82
|
|
(1.95)
|
|
Tangible book value per
share(1)
|
$
11.63
|
$
11.58
|
$
11.78
|
$
11.53
|
$
11.43
|
|
0.41
|
|
1.77
|
|
|
$
11.63
|
$
11.43
|
|
1.77
|
|
Cash dividend per
share
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
|
-
|
|
-
|
|
|
$
0.30
|
$
0.30
|
|
-
|
|
Weighted average shares
outstanding - Basic
|
24,641,981
|
24,638,505
|
24,625,943
|
24,601,108
|
24,576,887
|
|
0.01
|
|
0.26
|
|
|
24,635,535
|
24,548,129
|
|
0.36
|
|
Weighted average shares
outstanding - Diluted
|
24,641,981
|
24,638,505
|
24,685,206
|
24,685,663
|
24,688,422
|
|
0.01
|
|
(0.19)
|
|
|
24,635,535
|
24,674,014
|
|
(0.16)
|
|
Shares outstanding at
end of period
|
24,686,764
|
24,690,064
|
24,685,064
|
24,680,097
|
24,650,239
|
|
(0.01)
|
%
|
0.15
|
%
|
|
24,686,764
|
24,650,239
|
|
0.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
as a percent of total assets, excluding SBA guarantees
|
|
|
0.51 %
|
0.64 %
|
0.78 %
|
0.98 %
|
1.11 %
|
|
(13)
|
bps
|
(59)
|
bps
|
|
0.51 %
|
1.11 %
|
|
(59)
|
bps
|
Net charge-offs
(recoveries) as a percent of average loans (annualized)
|
0.53 %
|
0.20 %
|
0.53 %
|
0.74 %
|
0.17 %
|
|
33
|
|
36
|
|
|
0.42 %
|
0.02 %
|
|
40
|
|
Core net charge-offs
(recoveries) as a percent of average loans
(annualized)(2)
|
0.27 %
|
0.02 %
|
0.28 %
|
0.53 %
|
0.17 %
|
|
25
|
|
10
|
|
|
0.14 %
|
0.02 %
|
|
12
|
|
Allowance for credit
losses to total loans
|
1.14 %
|
1.21 %
|
1.17 %
|
1.17 %
|
1.17 %
|
|
(7)
|
|
(3)
|
|
|
1.14 %
|
1.17 %
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
10.04 %
|
10.22 %
|
9.48 %
|
10.99 %
|
11.62 %
|
|
(18)
|
bps
|
(158)
|
bps
|
|
|
|
|
|
|
Tangible common equity
to tangible assets(1)
|
7.72 %
|
7.64 %
|
7.10 %
|
8.22 %
|
8.68 %
|
|
8
|
|
(95)
|
|
|
|
|
|
|
|
Leverage
ratio(3)
|
|
8.78 %
|
8.14 %
|
8.59 %
|
9.48 %
|
10.11 %
|
|
64
|
|
(133)
|
|
|
|
|
|
|
|
Common equity tier 1
capital ratio(3)
|
9.76 %
|
9.38 %
|
10.04 %
|
10.54 %
|
11.17 %
|
|
38
|
|
(141)
|
|
|
|
|
|
|
|
Tier 1 risk-based
capital ratio(3)
|
10.07 %
|
9.68 %
|
10.36 %
|
10.88 %
|
11.53 %
|
|
39
|
|
(146)
|
|
|
|
|
|
|
|
Total risk-based
capital ratio(3)
|
13.54 %
|
13.16 %
|
14.20 %
|
14.80 %
|
15.71 %
|
|
38
|
|
(217)
|
|
|
|
|
|
|
|
(1)
See Reconciliation of Non-GAAP
financial measures.
|
|
|
|
(2)
Excludes third-party
charge-offs.
|
|
|
|
(3)
September 30, 2023 ratios are
estimated and may be subject to change pending the final filing of
the FR Y-9C.
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
As Of
:
|
|
Variance - 3Q 2023
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets (unaudited)
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
3Q
2022
|
|
2Q
2023
|
|
3Q
2022
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
93,865
|
$
100,868
|
$
607,125
|
$
77,859
|
$
97,738
|
|
(6.94)
|
%
|
(3.96)
|
%
|
Investment
securities-available for sale
|
216,875
|
223,087
|
231,468
|
236,315
|
238,891
|
|
(2.78)
|
|
(9.22)
|
|
Investment
securities-held to maturity
|
11,975
|
12,378
|
13,115
|
13,520
|
14,391
|
|
(3.26)
|
|
(16.79)
|
|
Loans held for
sale
|
66,266
|
57,704
|
42,011
|
27,626
|
13,388
|
|
14.84
|
|
NM
|
|
Loans receivable, net
of deferred fees
|
3,145,867
|
3,173,638
|
3,041,533
|
2,946,637
|
2,734,887
|
|
(0.88)
|
|
15.03
|
|
Allowance for credit
losses
|
(35,767)
|
(38,414)
|
(35,727)
|
(34,544)
|
(31,956)
|
|
(6.89)
|
|
11.93
|
|
|
Net loans
|
|
3,110,100
|
3,135,224
|
3,005,806
|
2,912,093
|
2,702,931
|
|
(0.80)
|
|
15.06
|
|
Stock in Federal
Reserve Bank and Federal Home Loan Bank
|
12,796
|
12,083
|
12,083
|
25,815
|
16,689
|
|
5.90
|
|
(23.33)
|
|
Bank premises and
equipment, net
|
24,878
|
25,298
|
25,136
|
25,257
|
25,534
|
|
(1.66)
|
|
(2.57)
|
|
Operating lease
right-of-use assets
|
11,402
|
10,707
|
9,352
|
5,335
|
5,511
|
|
6.49
|
|
106.90
|
|
Goodwill and other
intangible assets
|
95,741
|
107,215
|
107,539
|
107,863
|
108,170
|
|
(10.70)
|
|
(11.49)
|
|
Assets held for sale,
net
|
3,115
|
3,115
|
3,115
|
3,115
|
3,127
|
|
-
|
|
(0.38)
|
|
Bank-owned life
insurance
|
67,176
|
67,985
|
67,591
|
67,201
|
67,519
|
|
(1.19)
|
|
(0.51)
|
|
Other real estate
owned
|
-
|
-
|
-
|
-
|
1,041
|
|
-
|
|
(100.00)
|
|
Deferred tax assets,
net
|
22,456
|
20,391
|
18,825
|
18,289
|
17,892
|
|
10.13
|
|
25.51
|
|
Other assets
|
|
77,130
|
72,438
|
60,161
|
49,211
|
42,428
|
|
6.48
|
|
81.79
|
|
|
Total assets
|
$
3,813,775
|
$
3,848,493
|
$
4,203,327
|
$
3,569,499
|
$
3,355,250
|
|
(0.90)
|
%
|
13.67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
490,719
|
$
480,832
|
$
497,531
|
$
582,556
|
$
687,272
|
|
2.06
|
%
|
(28.60)
|
%
|
NOW accounts
|
|
803,276
|
817,725
|
835,348
|
617,687
|
637,786
|
|
(1.77)
|
|
25.95
|
|
Money market
accounts
|
800,951
|
850,359
|
865,115
|
811,365
|
803,050
|
|
(5.81)
|
|
(0.26)
|
|
Savings
accounts
|
746,608
|
696,750
|
971,439
|
245,713
|
217,220
|
|
7.16
|
|
243.71
|
|
Time
deposits
|
|
451,850
|
471,330
|
498,564
|
465,057
|
362,992
|
|
(4.13)
|
|
24.48
|
|
Total deposits
|
|
3,293,404
|
3,316,996
|
3,667,997
|
2,722,378
|
2,708,320
|
|
(0.71)
|
|
21.60
|
|
Securities sold under
agreements to repurchase - short term
|
3,838
|
3,921
|
4,346
|
6,445
|
9,886
|
|
(2.12)
|
|
(61.18)
|
|
Federal Home Loan Bank
advances
|
-
|
-
|
-
|
325,000
|
125,000
|
|
-
|
|
(100.00)
|
|
Subordinated debt and
notes
|
95,524
|
95,453
|
95,382
|
95,312
|
95,241
|
|
0.07
|
|
0.30
|
|
Operating lease
liabilities
|
12,347
|
11,546
|
9,799
|
5,767
|
6,044
|
|
6.94
|
|
104.29
|
|
Other
liabilities
|
|
25,796
|
27,361
|
27,397
|
22,232
|
20,863
|
|
(5.72)
|
|
23.64
|
|
|
Total
liabilities
|
3,430,909
|
3,455,277
|
3,804,921
|
3,177,134
|
2,965,354
|
|
(0.71)
|
|
15.70
|
|
Stockholders'
equity
|
382,866
|
393,216
|
398,406
|
392,365
|
389,896
|
|
(2.63)
|
|
(1.80)
|
|
|
Total liabilities and
stockholders' equity
|
$
3,813,775
|
$
3,848,493
|
$
4,203,327
|
$
3,569,499
|
$
3,355,250
|
|
(0.90)
|
%
|
13.67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity(1)
|
$
287,125
|
$
286,001
|
$
290,867
|
$
284,502
|
$
281,726
|
|
0.39
|
%
|
1.92
|
%
|
The company
defines "NM" as not meaningful for increases or decreases greater
than 300 percent.
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
Variance - 3Q 2023
vs.
|
|
|
For Nine Months
Ended:
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Operations (unaudited)
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
3Q
2022
|
|
2Q
2023
|
|
3Q
2022
|
|
|
3Q
2023
|
3Q
2022
|
|
YTD
|
|
Interest and dividend
income
|
$
50,486
|
$
52,679
|
$
47,114
|
$
38,595
|
$
32,561
|
|
(4.16)
|
%
|
55.05
|
%
|
|
$
150,279
|
$ 87,350
|
|
72.04
|
%
|
Interest
expense
|
|
23,361
|
26,522
|
18,749
|
9,058
|
5,146
|
|
(11.92)
|
|
NM
|
|
|
68,632
|
12,529
|
|
NM
|
|
|
Net interest
income
|
27,125
|
26,157
|
28,365
|
29,537
|
27,415
|
|
3.70
|
|
(1.06)
|
|
|
81,647
|
74,821
|
|
9.12
|
|
Provision for credit
losses
|
1,648
|
4,301
|
5,187
|
7,860
|
2,890
|
|
(61.68)
|
|
NM
|
|
|
11,136
|
3,411
|
|
226.47
|
|
|
Net interest income
after provision for credit losses
|
25,477
|
21,856
|
23,178
|
21,677
|
24,525
|
|
16.57
|
|
3.88
|
|
|
70,511
|
71,410
|
|
(1.26)
|
|
Account maintenance and
deposit service fees
|
1,503
|
1,430
|
1,216
|
1,427
|
1,525
|
|
5.10
|
|
(1.44)
|
|
|
4,149
|
4,318
|
|
(3.91)
|
|
Income from bank-owned
life insurance
|
787
|
394
|
420
|
847
|
394
|
|
99.75
|
|
99.75
|
|
|
1,601
|
1,147
|
|
39.58
|
|
Mortgage banking
income
|
4,922
|
5,198
|
4,315
|
2,264
|
2,197
|
|
(5.31)
|
|
124.03
|
|
|
14,435
|
2,790
|
|
NM
|
|
Gain on sale of
loans
|
451
|
182
|
478
|
-
|
-
|
|
148.00
|
|
-
|
|
|
1,111
|
-
|
|
100.00
|
|
Credit enhancement
income
|
2,047
|
1,152
|
4,886
|
1,822
|
1,220
|
|
77.69
|
|
67.79
|
|
|
8,085
|
1,220
|
|
100.00
|
|
Gain on sale of other
investment
|
-
|
-
|
-
|
4,411
|
-
|
|
-
|
|
-
|
|
|
-
|
-
|
|
-
|
|
Other
|
|
232
|
130
|
217
|
217
|
284
|
|
78.46
|
|
(18.31)
|
|
|
579
|
865
|
|
(33.06)
|
|
|
Noninterest
income
|
9,942
|
8,486
|
11,532
|
10,988
|
5,620
|
|
17.16
|
|
76.91
|
|
|
29,960
|
10,340
|
|
189.75
|
|
Employee compensation
and benefits
|
13,809
|
15,283
|
15,028
|
16,213
|
12,594
|
|
(9.64)
|
|
9.65
|
|
|
44,120
|
32,792
|
|
34.55
|
|
Occupancy and equipment
expenses
|
3,170
|
3,445
|
3,022
|
2,899
|
2,857
|
|
(7.98)
|
|
10.96
|
|
|
9,637
|
7,960
|
|
21.07
|
|
Amortization of
intangible assets
|
317
|
318
|
317
|
317
|
326
|
|
(0.31)
|
|
(2.76)
|
|
|
952
|
1,008
|
|
(5.56)
|
|
Goodwill
impairment
|
11,150
|
-
|
-
|
-
|
-
|
|
NM
|
|
NM
|
|
|
11,150
|
-
|
|
NM
|
|
Virginia franchise tax
expense
|
849
|
848
|
849
|
814
|
813
|
|
0.12
|
|
4.43
|
|
|
2,546
|
2,440
|
|
4.34
|
|
Data processing
expense
|
2,250
|
2,828
|
2,251
|
1,702
|
1,528
|
|
(20.44)
|
|
47.25
|
|
|
7,329
|
4,311
|
|
70.01
|
|
Marketing
expense
|
377
|
521
|
569
|
933
|
938
|
|
(27.64)
|
|
(59.81)
|
|
|
1,467
|
2,134
|
|
(31.26)
|
|
Telecommunication and
communication expense
|
356
|
416
|
377
|
343
|
342
|
|
(14.42)
|
|
4.09
|
|
|
1,149
|
1,090
|
|
5.41
|
|
Net (gain) loss on
other real estate owned
|
-
|
-
|
-
|
131
|
-
|
|
-
|
|
-
|
|
|
-
|
(59)
|
|
(100.00)
|
|
Loss (gain) on bank
premises and equipment
|
(2)
|
-
|
-
|
-
|
64
|
|
-
|
|
(103.13)
|
|
|
(2)
|
684
|
|
(100.29)
|
|
Professional
fees
|
|
1,118
|
1,075
|
862
|
1,605
|
1,261
|
|
4.00
|
|
(11.34)
|
|
|
3,055
|
3,182
|
|
(3.99)
|
|
Credit enhancement
costs
|
337
|
515
|
873
|
1,369
|
-
|
|
(34.56)
|
|
-
|
|
|
1,725
|
-
|
|
100.00
|
|
Other
expenses
|
|
3,343
|
5,303
|
3,256
|
2,780
|
3,038
|
|
(36.96)
|
|
10.04
|
|
|
11,902
|
7,728
|
|
54.01
|
|
|
Noninterest
expense
|
37,074
|
30,552
|
27,404
|
29,106
|
23,761
|
|
21.35
|
|
56.03
|
|
|
95,030
|
63,270
|
|
50.20
|
|
Income before income
taxes
|
(1,655)
|
(210)
|
7,306
|
3,559
|
6,384
|
|
NM
|
|
(125.92)
|
|
|
5,441
|
18,480
|
|
(70.56)
|
|
Income tax
expense
|
1,912
|
(22)
|
1,353
|
519
|
1,359
|
|
NM
|
|
40.69
|
|
|
3,243
|
3,971
|
|
(18.33)
|
|
|
Net Income
|
$
(3,567)
|
$
(188)
|
$
5,953
|
$
3,040
|
$
5,025
|
|
NM
|
|
(170.98)
|
|
|
2,198
|
14,509
|
|
(84.85)
|
|
(1)
See Reconciliation of Non-GAAP
financial measures.
|
|
|
The company
defines "NM" as not meaningful for increases or decreases greater
than 300 percent.
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
As
Of:
|
|
Variance - 3Q 2023
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
Composition
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
3Q
2022
|
|
2Q
2023
|
|
3Q
2022
|
|
Loans held for
sale
|
$
66,266
|
$
57,704
|
$
42,011
|
$
27,626
|
$
13,388
|
|
14.84
|
%
|
NM
|
%
|
Loans secured by real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
- owner occupied
|
433,039
|
448,624
|
460,245
|
461,126
|
437,636
|
|
(3.47)
|
|
(1.05)
|
|
|
Commercial real estate
- non-owner occupied
|
578,261
|
597,254
|
577,481
|
581,168
|
573,732
|
|
(3.18)
|
|
0.79
|
|
|
Secured by
farmland
|
6,381
|
6,577
|
6,258
|
7,290
|
7,706
|
|
(2.98)
|
|
(17.19)
|
|
|
Construction and land
development
|
172,071
|
175,141
|
151,950
|
148,762
|
138,371
|
|
(1.75)
|
|
24.35
|
|
|
Residential 1-4
family
|
601,198
|
592,756
|
607,118
|
610,919
|
616,764
|
|
1.42
|
|
(2.52)
|
|
|
Multi-family
residential
|
129,586
|
133,754
|
139,978
|
140,321
|
137,253
|
|
(3.12)
|
|
(5.59)
|
|
|
Home equity lines of
credit
|
59,996
|
62,808
|
64,606
|
65,152
|
65,852
|
|
(4.48)
|
|
(8.89)
|
|
|
Total real estate
loans
|
1,980,532
|
2,016,914
|
2,007,636
|
2,014,738
|
1,977,314
|
|
(1.80)
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans
|
593,767
|
585,442
|
546,042
|
522,057
|
469,881
|
|
1.42
|
|
26.37
|
|
Paycheck Protection
Program loans
|
2,105
|
2,143
|
2,603
|
4,564
|
8,014
|
|
(1.77)
|
|
(73.73)
|
|
Consumer
loans
|
|
569,463
|
569,139
|
485,252
|
405,278
|
279,678
|
|
0.06
|
|
103.61
|
|
|
Loans receivable, net
of deferred fees
|
$
3,145,867
|
$
3,173,638
|
$
3,041,533
|
$
2,946,637
|
$
2,734,887
|
|
(0.88)
|
%
|
15.03
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by Risk
Grade:
|
|
|
|
|
|
|
|
|
|
|
Pass, not
graded
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
|
-
|
%
|
-
|
%
|
Pass Grade
1 - Highest Quality
|
851
|
743
|
607
|
600
|
616
|
|
14.54
|
|
38.15
|
|
Pass Grade
2 - Good Quality
|
383,306
|
367,950
|
253,665
|
209,605
|
149,389
|
|
4.17
|
|
156.58
|
|
Pass Grade
3 - Satisfactory Quality
|
1,609,924
|
1,624,626
|
1,596,091
|
1,590,765
|
1,519,765
|
|
(0.90)
|
|
5.93
|
|
Pass Grade
4 - Pass
|
1,089,675
|
1,114,218
|
1,123,393
|
1,072,352
|
982,412
|
|
(2.20)
|
|
10.92
|
|
Pass Grade
5 - Special Mention
|
33,299
|
32,383
|
28,273
|
32,278
|
35,410
|
|
2.83
|
|
(5.96)
|
|
Grade 6 -
Substandard
|
28,812
|
33,718
|
39,504
|
41,037
|
47,295
|
|
(14.55)
|
|
(39.08)
|
|
Grade 7 -
Doubtful
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
Grade 8 -
Loss
|
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
Total loans
|
|
$
3,145,867
|
$
3,173,638
|
$
3,041,533
|
$
2,946,637
|
$
2,734,887
|
|
(0.88)
|
%
|
15.03
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
As Of or For Three
Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Information
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
3Q
2022
|
|
|
|
|
|
Allowance for Credit
Losses:
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
(38,414)
|
$
(35,727)
|
$
(34,544)
|
$
(31,956)
|
$
(30,209)
|
|
|
|
|
|
Provision for for
credit losses
|
(1,648)
|
(4,301)
|
(5,187)
|
(7,860)
|
(2,890)
|
|
|
|
|
|
Net
charge-offs
|
|
4,295
|
1,614
|
4,004
|
5,272
|
1,143
|
|
|
|
|
|
Ending
balance
|
|
$
(35,767)
|
$
(38,414)
|
$
(35,727)
|
$
(34,544)
|
$
(31,956)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for Unfunded
Commitments:
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
(1,273)
|
$
(1,507)
|
$
(1,416)
|
$
(1,380)
|
$
(1,069)
|
|
|
|
|
|
(Expense for) /
recovery of unfunded loan commitment reserve
|
249
|
234
|
(91)
|
(36)
|
(311)
|
|
|
|
|
|
Total Reserve for
Unfunded Commitments
|
$
(1,024)
|
$
(1,273)
|
$
(1,507)
|
$
(1,416)
|
$
(1,380)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of:
|
|
Variance - 3Q 2023
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing
Assets:
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
3Q
2022
|
|
2Q
2023
|
|
3Q
2022
|
|
Nonaccrual
loans
|
$
20,171
|
$
25,290
|
$
33,397
|
$
35,484
|
$
36,851
|
|
(20.24)
|
%
|
(45.26)
|
%
|
Accruing loans
delinquent 90 days or more
|
1,714
|
1,714
|
1,625
|
3,361
|
1,855
|
|
-
|
|
(7.60)
|
|
Total non-performing
loans
|
21,885
|
27,004
|
35,022
|
38,845
|
38,706
|
|
(18.96)
|
|
(43.46)
|
|
Other real estate
owned
|
-
|
-
|
-
|
-
|
1,041
|
|
-
|
|
(100.00)
|
|
Total non-performing
assets
|
$
21,885
|
$
27,004
|
$
35,022
|
$
38,845
|
$
39,747
|
|
(18.96)
|
|
(44.94)
|
|
SBA guaranteed portion
of non-performing loans
|
$
2,290
|
$
2,331
|
$
2,206
|
$
3,969
|
$
2,573
|
|
(1.76)
|
|
(11.00)
|
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
Variance - 2Q 2021
vs.
|
|
|
For Nine Months
Ended:
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
3Q
2022
|
|
2Q
2023
|
|
3Q
2022
|
|
|
3Q
2023
|
3Q
2022
|
|
YTD
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
55,775
|
$
48,698
|
$
25,346
|
$
22,413
|
$
21,199
|
|
14.53
|
%
|
163.10
|
%
|
|
$ 43,384
|
$
9,456
|
|
NM
|
%
|
|
Loans, net of deferred
fees
|
3,175,454
|
3,101,946
|
2,989,766
|
2,822,693
|
2,667,406
|
|
2.37
|
|
19.05
|
|
|
3,089,010
|
2,512,388
|
|
22.95
|
|
|
Investment
securities
|
234,601
|
240,700
|
246,402
|
253,345
|
269,780
|
|
(2.53)
|
|
(13.04)
|
|
|
240,525
|
286,525
|
|
(16.05)
|
|
|
Other earning
assets
|
93,159
|
568,251
|
388,327
|
92,604
|
90,268
|
|
(83.61)
|
|
3.20
|
|
|
348,831
|
237,299
|
|
47.00
|
|
|
Total earning
assets
|
3,558,989
|
3,959,595
|
3,649,841
|
3,191,055
|
3,048,653
|
|
(10.12)
|
|
16.74
|
|
|
3,721,750
|
3,045,668
|
|
22.20
|
|
|
Other assets
|
|
268,165
|
259,048
|
254,124
|
246,754
|
234,642
|
|
3.52
|
|
14.29
|
|
|
260,697
|
230,186
|
|
13.26
|
|
|
Total
assets
|
|
$
3,827,154
|
$
4,218,643
|
$
3,903,965
|
$
3,437,809
|
$
3,283,295
|
|
(9.28)
|
%
|
16.56
|
%
|
|
$
3,982,447
|
$
3,275,854
|
|
21.57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
472,485
|
$
473,295
|
$
556,479
|
$
648,151
|
$
665,020
|
|
(0.17)
|
%
|
(28.95)
|
%
|
|
$
500,456
|
$
602,872
|
|
(16.99)
|
%
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and other demand
accounts
|
806,339
|
826,598
|
722,584
|
624,868
|
660,387
|
|
(2.45)
|
|
22.10
|
|
|
785,480
|
723,857
|
|
8.51
|
|
|
Money market
accounts
|
850,892
|
858,532
|
824,541
|
805,303
|
803,860
|
|
(0.89)
|
|
5.85
|
|
|
844,752
|
808,013
|
|
4.55
|
|
|
Savings
accounts
|
703,809
|
1,026,085
|
593,823
|
232,543
|
219,167
|
|
(31.41)
|
|
221.13
|
|
|
775,024
|
222,032
|
|
249.06
|
|
|
Time
deposits
|
|
460,961
|
495,721
|
489,066
|
379,088
|
343,986
|
|
(7.01)
|
|
34.01
|
|
|
481,813
|
341,160
|
|
41.23
|
|
|
Total
Deposits
|
3,294,486
|
3,680,231
|
3,186,493
|
2,689,953
|
2,692,420
|
|
(10.48)
|
|
22.36
|
|
|
3,387,525
|
2,697,934
|
|
25.56
|
|
|
Borrowings
|
|
99,104
|
99,794
|
284,946
|
325,100
|
166,621
|
|
(0.69)
|
|
(40.52)
|
|
|
160,601
|
148,549
|
|
8.11
|
|
|
Total
Funding
|
|
3,393,590
|
3,780,025
|
3,471,439
|
3,015,053
|
2,859,041
|
|
(10.22)
|
|
18.70
|
|
|
3,548,126
|
2,846,483
|
|
24.65
|
|
|
Other
Liabilities
|
|
37,741
|
37,265
|
28,592
|
26,318
|
23,832
|
|
1.28
|
|
58.36
|
|
|
34,589
|
22,985
|
|
50.49
|
|
|
Stockholders'
equity
|
395,823
|
401,353
|
403,934
|
396,438
|
400,422
|
|
(1.38)
|
|
(1.15)
|
|
|
399,732
|
406,386
|
|
(1.64)
|
|
|
Total liabilities
and stockholders' equity
|
$
3,827,154
|
$
4,218,643
|
$
3,903,965
|
$
3,437,809
|
$
3,283,295
|
|
(9.28)
|
%
|
16.56
|
%
|
|
$
3,982,447
|
$
3,275,854
|
|
21.57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average PPP
loans
|
$
2,126
|
$
2,407
|
$
3,001
|
$
5,926
|
$
11,868
|
|
(11.67)
|
%
|
(82.09)
|
%
|
|
$
2,508
|
$ 28,958
|
|
(91.34)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
873
|
$
700
|
$
391
|
$
349
|
$
263
|
|
24.71
|
%
|
231.94
|
%
|
|
$
1,964
|
$
356
|
|
NM
|
%
|
|
Loans
|
|
|
46,898
|
43,270
|
40,915
|
35,841
|
30,225
|
|
8.39
|
|
55.16
|
|
|
131,083
|
81,192
|
|
61.45
|
|
|
Investment
securities
|
1,593
|
1,551
|
1,584
|
1,571
|
1,518
|
|
2.71
|
|
4.94
|
|
|
4,728
|
4,393
|
|
7.63
|
|
|
Other earning
assets
|
1,122
|
7,158
|
4,224
|
834
|
555
|
|
(84.33)
|
|
102.16
|
|
|
12,504
|
1,409
|
|
NM
|
|
|
Total
Earning Assets
|
50,486
|
52,679
|
47,114
|
38,595
|
32,561
|
|
(4.16)
|
|
55.05
|
|
|
150,279
|
87,350
|
|
72.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
DDA
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
-
|
-
|
|
-
|
|
|
NOW and other
interest-bearing demand accounts
|
4,460
|
4,343
|
2,267
|
544
|
536
|
|
2.69
|
|
NM
|
|
|
11,070
|
1,758
|
|
NM
|
|
|
Money market
accounts
|
6,555
|
6,231
|
4,801
|
2,894
|
1,667
|
|
5.20
|
|
293.22
|
|
|
17,587
|
3,464
|
|
NM
|
|
|
Savings
accounts
|
6,760
|
10,405
|
4,750
|
305
|
141
|
|
(35.03)
|
|
NM
|
|
|
21,915
|
432
|
|
NM
|
|
|
Time
deposits
|
|
3,801
|
3,804
|
3,226
|
1,567
|
943
|
|
(0.08)
|
|
NM
|
|
|
10,831
|
2,317
|
|
NM
|
|
|
Total Deposit
Costs
|
21,576
|
24,783
|
15,044
|
5,310
|
3,287
|
|
(12.94)
|
|
NM
|
|
|
61,403
|
7,971
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
1,785
|
1,739
|
3,705
|
3,748
|
1,859
|
|
2.65
|
|
(3.98)
|
|
|
7,229
|
4,558
|
|
58.60
|
|
|
Total Funding
Costs
|
23,361
|
26,522
|
18,749
|
9,058
|
5,146
|
|
(11.92)
|
|
NM
|
|
|
68,632
|
12,529
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
$
27,125
|
$
26,157
|
$
28,365
|
$
29,537
|
$
27,415
|
|
3.70
|
%
|
(1.06)
|
%
|
|
$ 81,647
|
$ 74,821
|
|
9.12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: SBA PPP
loan interest and fee income
|
$
5
|
$
6
|
$
3
|
$
14
|
$
28
|
|
(16.67)
|
%
|
(82.14)
|
%
|
|
$
14
|
$
522
|
|
(97.32)
|
%
|
|
Memo: SBA PPP
loan funding costs
|
$
2
|
$
2
|
$
3
|
$
5
|
$
10
|
|
-
|
%
|
(80.00)
|
%
|
|
$
7
|
$
75
|
|
(90.67)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
6.21 %
|
5.77 %
|
6.26 %
|
6.18 %
|
4.92 %
|
|
44
|
bps
|
129
|
bps
|
|
6.05 %
|
5.03 %
|
|
102
|
bps
|
|
Loans
|
|
|
5.86 %
|
5.60 %
|
5.55 %
|
5.04 %
|
4.50 %
|
|
26
|
|
136
|
|
|
5.67 %
|
4.32 %
|
|
135
|
|
|
Investments
|
|
2.69 %
|
2.58 %
|
2.61 %
|
2.46 %
|
2.23 %
|
|
11
|
|
46
|
|
|
2.63 %
|
2.05 %
|
|
58
|
|
|
Other Earning
Assets
|
4.78 %
|
5.05 %
|
4.41 %
|
3.57 %
|
2.44 %
|
|
(27)
|
|
234
|
|
|
4.79 %
|
0.79 %
|
|
400
|
|
|
Total Earning
Assets
|
5.63 %
|
5.34 %
|
5.24 %
|
4.80 %
|
4.24 %
|
|
29
|
|
139
|
|
|
5.40 %
|
3.83 %
|
|
156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
|
2.19 %
|
2.11 %
|
1.27 %
|
0.35 %
|
0.32 %
|
|
8
|
|
187
|
|
|
1.88 %
|
0.32 %
|
|
156
|
|
|
MMDA
|
|
3.06 %
|
2.91 %
|
2.36 %
|
1.43 %
|
0.82 %
|
|
15
|
|
224
|
|
|
2.78 %
|
0.57 %
|
|
221
|
|
|
Savings
|
|
3.81 %
|
4.07 %
|
3.24 %
|
0.52 %
|
0.26 %
|
|
(26)
|
|
355
|
|
|
3.78 %
|
0.26 %
|
|
352
|
|
|
CDs
|
|
|
3.27 %
|
3.08 %
|
2.68 %
|
1.64 %
|
1.09 %
|
|
19
|
|
218
|
|
|
3.01 %
|
0.91 %
|
|
210
|
|
|
Cost of
Interest Bearing Deposits
|
3.03 %
|
3.10 %
|
2.32 %
|
1.03 %
|
0.64 %
|
|
(7)
|
|
239
|
|
|
2.84 %
|
0.51 %
|
|
233
|
|
|
Cost of
Deposits
|
2.60 %
|
2.70 %
|
1.91 %
|
0.78 %
|
0.48 %
|
|
(10)
|
|
212
|
|
|
2.42 %
|
0.40 %
|
|
202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Other
Funding
|
|
7.15 %
|
6.99 %
|
5.27 %
|
4.57 %
|
4.43 %
|
|
16
|
|
272
|
|
|
6.02 %
|
4.10 %
|
|
192
|
|
|
Total Cost of
Funds
|
2.73 %
|
2.81 %
|
2.19 %
|
1.19 %
|
0.71 %
|
|
(8)
|
|
202
|
|
|
2.59 %
|
0.59 %
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
3.02 %
|
2.65 %
|
3.15 %
|
3.67 %
|
3.57 %
|
|
37
|
|
(54)
|
|
|
2.93 %
|
3.28 %
|
|
(35)
|
|
|
Net Interest
Spread
|
2.46 %
|
2.12 %
|
2.63 %
|
3.28 %
|
3.31 %
|
|
34
|
|
(85)
|
|
|
2.39 %
|
3.09 %
|
|
(70)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Excluding
SBA PPP loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
5.86 %
|
5.60 %
|
5.56 %
|
5.05 %
|
4.51 %
|
|
26
|
bps
|
135
|
bps
|
|
5.68 %
|
4.34 %
|
|
133
|
bps
|
|
|
Total Earning
Assets
|
5.63 %
|
5.34 %
|
5.24 %
|
4.81 %
|
4.25 %
|
|
29
|
|
138
|
|
|
5.40 %
|
3.85 %
|
|
155
|
|
|
|
Net Interest
Margin*
|
3.02 %
|
2.65 %
|
3.15 %
|
3.68 %
|
3.58 %
|
|
36
|
|
(56)
|
|
|
2.93 %
|
3.30 %
|
|
(36)
|
|
*Net interest margin
excluding the effect of SBA PPP loans assumes a funding cost of
35bps on average PPP balances in all applicable
periods
|
The company
defines "NM" as not meaningful for increases or decreases greater
than 300 percent.
|
|
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
For Three Months
Ended:
|
|
For Nine Months
Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP items:
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
3Q
2022
|
|
3Q
2023
|
3Q
2022
|
Net income
|
|
$
(3,567)
|
$
(188)
|
$
5,953
|
$
3,040
|
$
5,025
|
|
$ 2,198
|
|
$
14,509
|
Non-GAAP adjustments to
Net Income:
|
|
|
|
|
|
|
|
|
|
|
Branch Consolidation /
Other restructuring
|
-
|
1,488
|
-
|
1,175
|
308
|
|
1,488
|
|
1,209
|
|
Gain on sale of Infinex
investment
|
-
|
-
|
-
|
(4,144)
|
-
|
|
-
|
|
-
|
|
Goodwill
impairment
|
11,150
|
-
|
-
|
-
|
-
|
|
11,150
|
|
-
|
|
Loan officer fraud,
operational losses
|
200
|
-
|
-
|
-
|
-
|
|
200
|
|
-
|
|
Income tax
effect
|
(44)
|
(321)
|
-
|
641
|
(67)
|
|
(365)
|
|
(373)
|
|
Net income adjusted for
nonrecurring income and expenses
|
$
7,739
|
$
979
|
$
5,953
|
$
712
|
$
5,266
|
|
$
14,671
|
|
$
15,345
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(3,567)
|
$
(188)
|
$
5,953
|
$
3,040
|
$
5,025
|
|
$ 2,198
|
|
$
14,509
|
|
Income tax expense
(benefit)
|
1,912
|
(22)
|
1,353
|
519
|
1,359
|
|
3,243
|
|
3,971
|
|
Provision for credit
losses (incl. unfunded commitment expense)
|
1,399
|
4,067
|
5,278
|
7,896
|
3,201
|
|
10,744
|
|
3,814
|
Pre-tax pre-provision
earnings
|
$
(256)
|
$
3,857
|
$
12,584
|
$
11,455
|
$
9,585
|
|
$
16,185
|
|
$
22,294
|
|
Effect of adjustment
for nonrecurring income and expenses
|
11,350
|
1,488
|
-
|
(2,969)
|
308
|
|
12,838
|
|
1,209
|
Pre-tax pre-provision
operating earnings
|
$
11,094
|
$
5,345
|
$
12,584
|
$
8,486
|
$
9,893
|
|
$
29,023
|
|
$
23,503
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
(0.37 %)
|
(0.02 %)
|
0.62 %
|
0.35 %
|
0.61 %
|
|
0.07 %
|
|
0.59 %
|
|
Effect of adjustment
for nonrecurring income and expenses
|
1.17 %
|
0.11 %
|
0.00 %
|
(0.27 %)
|
0.03 %
|
|
0.42 %
|
|
0.03 %
|
Operating return on
average assets
|
0.81 %
|
0.09 %
|
0.62 %
|
0.08 %
|
0.64 %
|
|
0.49 %
|
|
0.63 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
(0.37 %)
|
(0.02 %)
|
0.62 %
|
0.35 %
|
0.61 %
|
|
0.07 %
|
|
0.59 %
|
|
Effect of tax
expense
|
0.20 %
|
(0.00 %)
|
0.14 %
|
0.06 %
|
0.16 %
|
|
0.11 %
|
|
0.16 %
|
|
Effect of provision for
credit losses (incl. unfunded commitment expense)
|
0.14 %
|
0.39 %
|
0.55 %
|
0.91 %
|
0.39 %
|
|
0.35 %
|
|
0.16 %
|
Pre-tax pre-provision
return on average assets
|
(0.03 %)
|
0.37 %
|
1.31 %
|
1.32 %
|
1.16 %
|
|
0.54 %
|
|
0.91 %
|
|
Effect of adjustment
for nonrecurring income and expenses and expenses
|
1.18 %
|
0.14 %
|
0.00 %
|
(0.34 %)
|
0.04 %
|
|
0.43 %
|
|
0.05 %
|
Pre-tax pre-provision
operating return on average assets
|
1.15 %
|
0.51 %
|
1.31 %
|
0.98 %
|
1.20 %
|
|
0.97 %
|
|
0.96 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity
|
(3.57 %)
|
(0.19 %)
|
5.98 %
|
3.04 %
|
4.98 %
|
|
0.74 %
|
|
4.77 %
|
|
Effect of adjustment
for nonrecurring income and expenses
|
11.32 %
|
1.17 %
|
0.00 %
|
(2.33 %)
|
0.24 %
|
|
4.18 %
|
|
0.45 %
|
Operating return on
average equity
|
7.75 %
|
0.98 %
|
5.98 %
|
0.71 %
|
5.22 %
|
|
4.91 %
|
|
5.22 %
|
|
Effect of goodwill and
other intangible assets
|
2.86 %
|
0.36 %
|
2.16 %
|
0.27 %
|
1.93 %
|
|
1.80 %
|
|
1.87 %
|
Operating return on
average tangible equity
|
10.61 %
|
1.33 %
|
8.14 %
|
0.98 %
|
7.15 %
|
|
6.71 %
|
|
7.09 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
100.01 %
|
81.34 %
|
68.69 %
|
71.82 %
|
71.93 %
|
|
85.15 %
|
|
74.29 %
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(30.62 %)
|
(4.28 %)
|
0.00 %
|
4.96 %
|
(0.94 %)
|
|
(11.50 %)
|
|
(2.02 %)
|
Operating efficiency
ratio
|
69.39 %
|
77.06 %
|
68.69 %
|
76.78 %
|
70.99 %
|
|
73.64 %
|
|
72.27 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
Basic
|
$
(0.14)
|
$
(0.01)
|
$
0.24
|
$
0.12
|
$
0.21
|
|
$ 0.09
|
|
$ 0.60
|
|
Effect of adjustment
for nonrecurring income and expenses
|
$
0.46
|
0.05
|
-
|
(0.09)
|
(0.00)
|
|
$ 0.52
|
|
0.02
|
Operating earnings per
share - Basic
|
$
0.32
|
$
0.04
|
$
0.24
|
$
0.03
|
$
0.21
|
|
$ 0.60
|
|
$ 0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
Diluted
|
$
(0.14)
|
$
(0.01)
|
$
0.24
|
$
0.12
|
$
0.20
|
|
$ 0.09
|
|
$ 0.59
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.46
|
0.05
|
-
|
(0.09)
|
0.01
|
|
$ 0.52
|
|
0.03
|
Operating earnings per
share - Diluted
|
$
0.32
|
$
0.04
|
$
0.24
|
$
0.03
|
$
0.21
|
|
$ 0.60
|
|
$ 0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
15.51
|
$
15.93
|
$
16.14
|
$
15.90
|
$
15.82
|
|
$ 15.51
|
|
$
15.82
|
|
Effect of goodwill and
other intangible assets
|
(3.88)
|
(4.35)
|
(4.36)
|
(4.37)
|
(4.39)
|
|
(3.88)
|
|
(4.39)
|
Tangible book value per
share
|
$
11.63
|
$
11.58
|
$
11.78
|
$
11.53
|
$
11.43
|
|
$ 11.63
|
|
$
11.43
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
$
382,866
|
$
393,216
|
$
398,406
|
$
392,365
|
$
389,896
|
|
$
382,866
|
|
$ 389,896
|
|
Less goodwill and other
intangible assets
|
(95,741)
|
(107,215)
|
(107,539)
|
(107,863)
|
(108,147)
|
|
(95,741)
|
|
(108,170)
|
Tangible common
equity
|
$
287,125
|
$
286,001
|
$
290,867
|
$
284,502
|
$
281,749
|
|
$
287,125
|
|
$ 281,726
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
10.04 %
|
10.22 %
|
9.48 %
|
10.99 %
|
11.62 %
|
|
10.04 %
|
|
11.62 %
|
|
Effect of goodwill and
other intangible assets
|
(2.32 %)
|
(2.58 %)
|
(2.38 %)
|
(2.77 %)
|
(2.94 %)
|
|
(2.32 %)
|
|
(2.94 %)
|
Tangible common equity
to tangible assets
|
7.72 %
|
7.64 %
|
7.10 %
|
8.22 %
|
8.68 %
|
|
7.72 %
|
|
8.68 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
3.02 %
|
2.65 %
|
3.15 %
|
3.67 %
|
3.57 %
|
|
2.93 %
|
|
3.28 %
|
|
Effect of adjustments
for PPP associated balances*
|
0.00 %
|
0.00 %
|
0.01 %
|
0.01 %
|
0.01 %
|
|
0.00 %
|
|
0.02 %
|
Core net interest
margin
|
3.02 %
|
2.65 %
|
3.16 %
|
3.68 %
|
3.58 %
|
|
2.93 %
|
|
3.30 %
|
|
|
|
|
|
|
|
*Net interest margin
excluding the effect of PPP loans assumes a funding cost of 35bps
on average PPP balances in all applicable periods
|
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SOURCE Primis Financial Corp.