Declares Quarterly Cash Dividend of
$0.10 Per Share
MCLEAN,
Va., Jan. 28, 2025 /PRNewswire/ -- Primis
Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), and its
wholly-owned subsidiary, Primis Bank (the "Bank"), today reported a
net loss available to common shareholders of $14.7 million or $0.59 loss per basic and diluted share for the
quarter ended December 31, 2024,
compared to a net loss available to common shareholders of
$8.2 million or $0.33 loss per basic and diluted share for the
quarter ended December 31,
2023. For the full year of 2024, the Company reported a
net loss available to common shareholders and loss per basic and
diluted share of $7.5 million and
$0.31, respectively, compared to a
loss of $7.8 million and $0.32, respectively, in 2023. Earnings for
the three month and year-to-date periods of 2024 are highly
affected by the Company's decision to move a third-party originated
consumer loan portfolio to held for sale in the fourth quarter of
2024 as described further below.
Strategic Options to Maximize Value
Dennis J. Zember, Jr., President
and Chief Executive Officer of Primis commented, "In the fourth
quarter of 2024, we made several moves that were costly, but should
better position the Company to maximize its strategic value.
These moves in the current quarter include neutralizing the credit
impacts of the consumer loan book by moving the majority of it to
held for sale with substantial marks. Additionally, we sold
our Life Premium Finance business and launched a meaningful
mortgage warehouse lending business that should add up to 15 basis
points of additional return on assets once it reaches scale in
2025."
With the third-party consumer book marked, the Company is
exploring various avenues to maximize its shareholder value. These
include decisions needed to drive higher earnings and operating
results that should no longer be overshadowed by the consumer
portfolio's credit costs. Secondly, a more determined effort
to highlight the value and opportunity in the core community bank
with its funding advantage and growth opportunities. Lastly,
moving to deconsolidate Panacea Financial Holdings and realize the
economic gain which management believes has improved substantially
since the unrealized $19.6 million
market value at December 31,
2023. Other avenues are being explored alongside these
operating strategies that would accelerate the recognition of
unrealized market value in the Company.
Strategic Repositioning
The Company spent substantial time and energy in 2024 focusing
the organization toward business lines it believes can drive the
greatest long-term profitability and growth. Activities
included continued moves to enhance operating leverage in the core
bank, lender recruitment and scaling in mortgage, relieving balance
sheet pressure through the sale of Life Premium Finance, leveraging
existing infrastructure to expand the mortgage warehouse lending
division and neutralizing the credit cost impact of the third-party
consumer loan program. The result of these moves is a
significantly more focused organization comprised of:
- A core community bank in strong markets with $2.2 billion of low-cost customer deposits and
low commercial real estate concentrations;
- A retail mortgage company that has grown in the face of
industry pressures, reaching approximately $800 million of production in 2024 and poised to
reach approximately $1.25 billion of
production in 2025;
- A national strategy that combines lower risk mortgage warehouse
and construction-to-perm lending funded by a unique digital
platform; and
- The nation's leading healthcare-focused financial services
brand in Panacea Financial whose already out-sized growth continues
to accelerate and the market value of which is not reflected in the
Company's capital.
The following discussion highlights the near-term opportunity
for each of these strategies.
Core Community Bank
The core bank has 24 banking offices in Virginia and Maryland and finished 2024 with $2.2 billion of customer deposits. The core
bank's cost of deposits of 1.87% at 2024 year-end is lower than
most of its larger regional bank competitors and up to 100 basis
points lower than equal sized peers in the greater Washington, D.C. region. The Bank's
proprietary V1BE service directly supports approximately
$200 million of checking accounts and
is driving growth in new relationships focused on commercial and
consumer checking accounts.
The Bank has reorganized its lending team and added selective
hires in key markets. Early signs of success from these
efforts can be found in the loan pipeline which ended 2024 at
approximately $119 million with 88%
of that amount representing new customers to the Bank versus
$51 million and 21%, respectively, at
the end of 2023. The Bank's loan portfolio is diversified
across the footprint and is well below regulatory concentration
limits for commercial real estate.
Primis Mortgage
Primis Mortgage earned approximately $2.6
million pre-tax in 2024, including its managed portfolio,
versus immaterial earnings in 2023. Primis Mortgage had
approximately $800 million of
production in 2024 versus approximately $600
million of production the prior year. Continued
recruiting and operational improvements have current applications,
locks and closings 40% to 50% higher than the same month a year ago
and the Company anticipates production of $1.25 billion in the current rate
environment. Not included in this outlook is the impact of
the Bank's new construction-to-perm builder partnerships focused on
government lending that should generate additional volume with
strong profitability metrics.
National Strategies
With the sale of Life Premium Finance, the Company is focusing
its national lending strategies on mortgage warehouse lending and a
new partnership with a national builder leveraging the Bank's
existing construction-to-perm loan product.
While the Bank had mortgage warehouse lending capabilities,
activity was insignificant until the team build-out in the fall of
2024. As of the end of January
2025, the team has grown to 54 approved customers with over
$400 million of committed
lines. Average yield, including fees, was SOFR plus 340 basis
points in December. In addition to a growing customer
pipeline, the mortgage warehouse team also plans to augment its
growth with selective mortgage servicing rights ("MSR")
relationships through 2025.
The Bank also recently gained preferred lender status with a
national builder by leveraging its one-time-close
construction-to-permanent mortgage product. The partner
builder had loan volume of $15
billion in 2024 and has approved the Bank to work with 85 of
its offices across the country. Pricing on the mortgages is
generally Prime or better with 50 to 100 basis points of fees and
are based on government programs that make the mortgages eligible
for sale in the secondary market (via Primis Mortgage).
Funding for the national strategies is provided by the Bank's
digital platform powering what we believe is one of only a handful
of bank deposit offerings nationwide that is both fully functional
and inherently app-based. Since the launch in November 2022, the platform has grown to 18
thousand customers with just under $1
billion of deposits priced around Fed Funds after the most
recent rate adjustment. The Bank is leveraging the technology
underpinning its digital platform to launch a unique affinity brand
in March 2025. This brand will leverage well-known
ambassadors and influencers to drive adoption of attractive deposit
products in a unique niche. The Company believes this
strategy is highly replicable and has the potential to be a
significant driver of growth in the next few years.
Panacea Financial
Panacea's growth accelerated to end 2024 with loans outstanding
up 11% from the third quarter of 2024 to $434 million funded by $92
million of deposits attributable to the division.
Panacea is the number one ranked "Bank for doctors" on Google and
banks approximately 6,000 professionals and practices nationwide
with a goal of reaching 10,000 customers by the end of 2025.
Panacea is utilizing the proceeds of the Panacea Financial Holdings
capital raise from late 2023 to develop the initial phase of what
is expected to be a sophisticated suite of technology products and
services targeting the medical, dental and veterinary space.
As previously disclosed, the Company owns approximately 19% of
Panacea Financial Holdings and the value of our ownership was
almost $20 million at the time of the
capital raise.
Consumer Loan Program Winddown
As disclosed previously, the Company has originated consumer
loans through a third-party (the "Consumer Program") since the
second half of 2021. A subset of the Consumer Program has
promotional characteristics where interest is deferred during the
promotional period and is waived if the customer pays off the loan
prior to the period end. In that event, the third-party
reimburses the Bank for the waived interest. Until the end of
the promotional period, the Company is unable to accrue interest on
the loan under GAAP but does record a derivative representing the
fair value of expected interest reimbursements from the
third-party. Credit costs are also included in the Company's
results, including estimated life of loan losses required by ASC
326 while potential credit enhancements from the Consumer Program
are only reflected as received. Outstanding balances in the
Consumer Program before fair value marks were $173 million as of December 31, 2024 with $39
million of balances in a promotional period versus
$180 million and $60 million, respectively, at September 30, 2024.
In the fourth quarter of 2024, the Company made the decision to
cease originating new loans under the Consumer Program effective
January 31, 2025 and moved a large
portion of the portfolio, with an amortized cost of $133 million, to loans held for sale and marked
them to fair market value. The adjustment to fair market
value resulted in additional provision expense and charge-offs of
$20.0 million in the fourth quarter
of 2024. The remaining portion of the portfolio still
classified as held for investment of approximately $39 million at December
31, 2024 has an associated allowance for credit losses of
approximately $10 million and is
expected to run off substantially in 2025. The table
below highlights the drag on 2024 profitability from the
program:
Contribution
($000)
|
Q4
'24
|
2024
|
Net Interest
Income
|
288
|
2,430
|
Provision
Expense
|
(20,842)
|
(34,025)
|
Noninterest
Income
|
928
|
4,320
|
Noninterest
Expense
|
(1,827)
|
(2,660)
|
|
|
|
Pre-Tax
Contribution
|
($21,452)
|
($29,935)
|
Outlook
Mr. Zember commented, "The Company's strategies are profitable
and remarkably scalable given our size. We operate a
successful and valuable community bank and lines of business that
can deliver outsized growth and profits relative to our size.
As seen below, we have already made the moves necessary to deliver
attractive operating results and clearing the deck of the consumer
loan noise was necessary for these results to be apparent. "
Reported 2024
ROAA
|
(0.19)
|
%
|
|
Consumer Program Credit
Costs
|
0.69
|
|
|
Lost Revenue on Promo
Balances (@ 8%)
|
0.12
|
|
|
Gain on LPF
sale
|
(0.10)
|
|
|
Nonrecurring Items
(Restatements/Legal)
|
0.13
|
|
|
|
|
|
|
Adjusted 2024
ROAA
|
0.65
|
%
|
|
|
|
|
|
Other Profitability
Improvements Already Made and Potential Impact on 2025
Results:
|
|
|
|
Trading out LPF for
Mortgage Warehouse
|
0.15
|
%
|
|
Mortgage Volume Run
Rate Over 2024
|
0.09
|
|
|
Incremental Funding
Rate Savings Since Dec. 2024
|
0.06
|
|
|
Net Interest Income
Net interest income decreased approximately $1.9 million, or 7%, to $26.1 million during the fourth quarter of 2024
compared to the third quarter of 2024. Material items
impacting the fourth quarter level of net interest income were
$2.5 million of interest reversals on
charged off Consumer Program loans and approximately $1.3 million of decline related to sale of the
Life Premium Finance portfolio as of October
31, 2024. Higher spreads between loans and deposits
were achieved through the quarter as deposit rates fell by
approximately 20 basis points in the core Bank which mostly
neutralized the impact of the sold Life Premium Finance
portfolio. On a recurring basis excluding the impact of prior
quarter reversals, net interest income would have been $28.6 million compared to $28.0 million in the third quarter of 2024 and up
11.3% compared to $25.7 million in
the fourth quarter of 2023. Excluding the interest reversal
described above, net interest margin for the fourth quarter of 2024
would have been 3.18% compared to 2.86% in the fourth quarter of
2023.
Interest income, adjusted for the interest reversals noted
above, was $53.9 million for the
fourth quarter of 2024, higher by 7.4% when compared to
$50.2 million in the same quarter in
2023. When adjusted for the interest reversals yield on
earning assets was 5.99% in the fourth quarter of 2024 compared to
5.58% in the same quarter in 2023. In 2025, the Company has
approximately $350 million of loans
with a weighted average yield of 5.90% subject to repricing that
indicate some level of opportunity for continued increases in
interest income.
The pace of declines in interest expense alongside steady levels
of interest income accelerated in the fourth quarter and indicates
stronger profitability moving into 2025. Cost of deposits
decreased 24 basis points to 2.80% in the fourth quarter of 2024
from 3.04% in the third quarter of 2024 and did not include lower
costs on almost $1 billion of digital
deposits that repriced late in December
2024 and early in January 2025. Deposit costs on
digital deposits have declined by approximately 65 basis points
compared to fourth quarter levels implying additional savings of
approximately $6.5 million
annually.
Noninterest Income
Noninterest income was $13.2
million in the fourth quarter of 2024 versus $9.3 million in the third quarter of 2024.
Excluding the net gain from the Life Premium Finance sale,
noninterest income decreased to $8.4
million in the fourth quarter of 2024. Income from
mortgage banking activity decreased $1.8
million during the fourth quarter of 2024 due to seasonally
lower activity. Partially offsetting the decrease in mortgage
banking income was an increase of $0.8
million in fee income related to the Consumer Program net of
changes in the associated derivative fair market value. The
fourth quarter of 2024 also had a $13
thousand loss on disposal of bank property versus
$0.4 million of gains in the third
quarter of 2024.
Noninterest Expense
Noninterest expense was $37.2
million for the fourth quarter of 2024, compared to
$31.0 million for the third quarter
of 2024. Noninterest expense also includes consolidated expenses
from Panacea Financial Holdings ("PFH"). Management considers the
core expense burden of the Bank that adjusts for certain items that
are volume dependent such as mortgage banking-related expenses or
expense related to changes in the reserve for unfunded commitments.
The following table illustrates the Company's core operating
expense burden during 2024:
|
4Q
2024
|
3Q
2024
|
2Q
2024
|
1Q
2024
|
4Q
2023
|
|
|
|
|
|
|
Reported
Noninterest Expense
|
37,174
|
30,955
|
29,786
|
27,538
|
27,780
|
PFH Consolidated
Expenses
|
(3,641)
|
(2,576)
|
(2,347)
|
(2,119)
|
(2,813)
|
Noninterest
Expense Excl. PFH
|
33,533
|
28,379
|
27,439
|
25,419
|
24,967
|
|
|
|
|
|
|
Nonrecurring /
Cons. Prog. Fraud Loss
|
(3,032)
|
(1,352)
|
(1,453)
|
(438)
|
(165)
|
Primis Mortgage
Expenses
|
(6,354)
|
(6,436)
|
(6,084)
|
(5,122)
|
(4,785)
|
Consumer Program
Servicing Fee
|
(681)
|
(699)
|
(312)
|
(312)
|
(312)
|
Reserve for
Unfunded Commitment
|
6
|
(96)
|
546
|
2
|
(554)
|
Total
Adjustments
|
(10,061)
|
(8,583)
|
(7,303)
|
(5,870)
|
(5,816)
|
|
|
|
|
|
|
Core Operating
Expense Burden
|
23,472
|
19,796
|
20,136
|
19,549
|
19,151
|
As noted above, the core expense burden increased $3.7 million in the fourth quarter of 2024 from
the third quarter of 2024. Contributing to the increase was
$1.0 million increase in
compensation-related accruals, including restricted stock expense
and mortgage warehouse signing bonuses, $0.4
million of miscellaneous lending expense, $0.3 million increase in FDIC insurance expense
and other consulting expenses and implementation fees related to
various technology projects. Many of these expense items are
expected to decline beginning in the first quarter of 2025.
Core operating expense burden is projected to be between
$21 million and $22 million per quarter for 2025.
Loan Portfolio and Asset Quality
Loans held for investment decreased to $2.91 billion at December
31, 2024, compared to $2.97
billion at September 30,
2024. As noted above, the Bank reclassified $133 million of gross loan balances associated
with the Consumer Program to loans held for sale at December 31, 2024. Including these
balances, loans held for investment would have increased 2.2%
unannualized in the fourth quarter of 2024. The Mortgage
Warehouse and Panacea divisions drove the growth in the period with
loan growth of $49 million and
$41 million, respectively, in the
fourth quarter of 2024.
Nonperforming assets, excluding portions guaranteed by the SBA,
were only 0.29% of total assets, or $10.8
million at December 31, 2024,
compared to 0.25% or $10.2 million at
September 30, 2024. The Bank
had no other real estate owned at the end of the fourth quarter of
2024.
The Company recorded a provision for loan losses of $23.0 million for the fourth quarter of 2024
versus $7.5 million for the third
quarter of 2024. Of this provision, $20.8 million was due to Consumer Program
activity including recording the fair market value adjustment for
the portion of the portfolio that was moved to loans held for sale
through the allowance for credit losses. As a percentage of
loans held for investment, the allowance for credit losses was
1.49% and 1.72% at the end of the fourth and third quarter of 2024,
respectively, with the decline due to the reclassification of
Consumer Program loans.
Net charge-offs were $31.0 million
for the fourth quarter of 2024, up from $8.0
million for the third quarter of 2024. Consumer
Program net charge-offs were $30.5
million in the fourth quarter versus $6.7 million in the third quarter of 2024.
Core net charge-offs, excluding those losses from the Consumer
Program, were $0.5 million, or 0.05%
of average loans, in the fourth quarter of 2024 compared to
$0.9 million, or 0.11%, in the third
quarter of 2024(1).
Deposits and Funding
Total deposits at December 31,
2024 decreased to $3.17
billion from $3.31 billion at
September 30, 2024 as the Bank paid
off high cost brokered deposits and swept off excess liquidity
during the quarter. Deposits swept off balance sheet totaled
$137 million at December 31, 2024 versus none at September 30, 2024. Importantly,
noninterest bearing demand deposits were $439 million at December
31, 2024, up 4.2% from $421
million at September 30, 2024
as the Company emphasizes driving up low cost deposit balances.
Deposit growth in the Bank continues to benefit from better
technology and unique convenience factors. V1BE, the Bank's
proprietary invitation-only delivery tool, increased total users by
20% in 2024, and now has over 3,000 users on the platform as of
December 31, 2024. The service
completed over 40 thousand requests in 2024 and supports almost
$200 million of deposits.
During the fourth quarter of 2024, the Bank opened approximately
$32.5 million new deposit accounts on
the digital platform with very modest marketing expenses. At
quarter end, the Bank had approximately 18,000 digital
accounts with $981 million in total
deposits and average balances of approximately
$55 thousand.
As of December 31, 2024, the Bank
has no wholesale funding.
Shareholders' Equity
Book value per common share as of December 31, 2024 was $14.58, a decrease of $0.83 from September
30, 2024. Tangible book value per common
share(1) at the end of the fourth quarter of 2024 was
$10.77, a decrease of $0.82 from September
30, 2024. Common shareholders' equity was
$360 million, or 9.75% of total
assets, at December 31, 2024.
Tangible common equity(1) at December 31, 2024 was $266
million, or 7.39% of tangible assets(1).
After-tax unrealized losses on the Company's available-for-sale
securities portfolio increased by $4.0
million to $21 million due to
increases in market interest rates during the fourth quarter of
2024. The Company has the intent and ability to hold these
securities until maturity or recovery of the value and does not
anticipate realizing any losses on the investments.
The Board of Directors declared a dividend of $0.10 per share payable on February 26, 2025 to shareholders of record on
February 12, 2025. This is
Primis' fifty-third consecutive quarterly dividend.
About Primis Financial Corp.
As of December 31, 2024, Primis
had $3.7 billion in total assets,
$2.9 billion in total loans held for
investment and $3.2 billion in total
deposits. Primis Bank provides a range of financial services to
individuals and small- and medium-sized businesses through
twenty-four full-service branches in Virginia and Maryland and provides services to customers
through certain online and mobile applications.
Contacts:
|
Address:
|
Dennis J. Zember, Jr.,
President and CEO
|
Primis Financial
Corp.
|
Matthew A. Switzer, EVP
and CFO
|
1676 International
Drive, Suite 900
|
Phone: (703)
893-7400
|
McLean, VA
22102
|
|
|
Primis Financial Corp.,
NASDAQ Symbol FRST
|
Website:
www.primisbank.com
|
Conference Call
The Company's management will host a conference call to discuss
its fourth quarter results on Wednesday,
January 29, 2025 at 10:00 a.m.
(ET). A live Webcast of the conference call is available at
the following website:
https://events.q4inc.com/attendee/384098079. Participants may
also call 1-800-715-9871 and ask for the Primis Financial Corp.
call. A replay of the teleconference will be available for 7
days by calling 1-800-770-2030 and providing Replay Access Code
4554342.
Non-GAAP Measures
Statements included in this press release include non-GAAP
financial measures and should be read along with the accompanying
tables. Primis uses non-GAAP financial measures to analyze its
performance. The measures entitled net income adjusted for
nonrecurring income and expenses; pre-tax pre-provision operating
earnings; operating return on average assets; pre-tax pre-provision
operating return on average assets; operating return on average
equity; operating return on average tangible equity; operating
efficiency ratio; operating earnings per share – basic; operating
earnings per share – diluted; tangible book value per share;
tangible common equity; tangible common equity to tangible assets;
and core net interest margin are not measures recognized under GAAP
and therefore are considered non-GAAP financial measures. We use
the term "operating" to describe a financial measure that excludes
income or expense considered to be non-recurring in nature.
Items identified as non-operating are those that, when excluded
from a reported financial measure, provide management or the reader
with a measure that may be more indicative of forward-looking
trends in our business. A reconciliation of these non-GAAP
financial measures to the most comparable GAAP measures is provided
in the Reconciliation of Non-GAAP Items table.
Management believes that these non-GAAP financial measures
provide additional useful information about Primis that allows
management and investors to evaluate the ongoing operating results,
financial strength and performance of Primis and provide meaningful
comparison to its peers. Non-GAAP financial measures should not be
considered as an alternative to any measure of performance or
financial condition as promulgated under GAAP, and investors should
consider Primis' performance and financial condition as reported
under GAAP and all other relevant information when assessing the
performance or financial condition of Primis. Non-GAAP
financial measures are not standardized and, therefore, it may not
be possible to compare these measures with other companies that
present measures having the same or similar names.
Non-GAAP financial measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the results or financial condition as
reported under GAAP.
Forward-Looking Statements
This press release and certain of our other filings with the
Securities and Exchange Commission contain statements that
constitute "forward-looking statements" within the meaning of, and
subject to the protections of, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. All statements other than statements of
historical fact are forward-looking statements. Such statements can
generally be identified by such words as "may," "plan,"
"contemplate," "anticipate," "believe," "intend," "continue,"
"expect," "project," "predict," "estimate," "could," "should,"
"would," "will," and other similar words or expressions of the
future or otherwise regarding the outlook for the Company's future
business and financial performance and/or the performance of the
banking industry and economy in general. These forward-looking
statements include, but are not limited to, our expectations
regarding our future operating and financial performance, including
the preliminary estimated financial and operating information
presented herein, which is subject to adjustment; our outlook and
long-term goals for future growth and new offerings and services;
our expectations regarding net interest margin; expectations on our
growth strategy, expense management, capital management and future
profitability; expectations on credit quality and performance; and
the assumptions underlying our expectations.
Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve known and unknown risks and uncertainties which may
cause the actual results, performance or achievements of the
Company to be materially different from the future results,
performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements are based on
the information known to, and current beliefs and expectations of,
the Company's management and are subject to significant risks and
uncertainties. Actual results may differ materially from those
contemplated by such forward-looking statements. Factors that might
cause such differences include, but are not limited to: the
Company's ability to implement its various strategic and growth
initiatives, including its recently established Panacea Financial
Division, digital banking platform, V1BE fulfillment service,
mortgage warehouse division and Primis Mortgage Company; the risks
associated with the Life Premium Finance sale, including failure to
achieve the expected impact to our operating results; competitive
pressures among financial institutions increasing significantly;
changes in applicable laws, rules, or regulations, including
changes to statutes, regulations or regulatory policies or
practices; changes in management's plans for the future; credit
risk associated with our lending activities; the impact of current
and future economic and market conditions generally (including
seasonality) and in the financial services industry, nationally and
within our primary market areas; changes in interest rates,
inflation, loan demand, real estate values, or competition, as well
as labor shortages and supply chain disruptions; the impacts of
tariffs and trade policies; changes in accounting principles,
policies, or guidelines; adverse results from current or future
litigation, regulatory examinations or other legal and/or
regulatory actions; potential impacts of adverse developments in
the banking industry highlighted by high-profile bank failures,
including impacts on customer confidence, deposit outflows,
liquidity and the regulatory response thereto; potential increases
in the provision for credit losses; our ability to identify and
address increased cybersecurity risks, including those impacting
vendors and other third parties; fraud or misconduct by internal or
external actors, which we may not be able to prevent, detect or
mitigate; acts of God or of war or other conflicts, including the
current Ukraine/Russia conflict and Israel/Hamas conflict, acts of terrorism,
pandemics or other catastrophic events that may affect general
economic conditions; and other general competitive, economic,
political, and market factors, including those affecting our
business, operations, pricing, products, or services.
Forward-looking statements speak only as of the date on which
such statements are made. These forward-looking statements are
based upon information presently known to the Company's management
and are inherently subjective, uncertain and subject to change due
to any number of risks and uncertainties, including, without
limitation, the risks and other factors set forth in the Company's
filings with the Securities and Exchange Commission, the Company's
Annual Report on Form 10-K for the year ended December 31, 2023, under the captions "Cautionary
Note Regarding Forward-Looking Statements" and "Risk Factors," and
in the Company's Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. The Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made, or to reflect the
occurrence of unanticipated events. Readers are cautioned not to
place undue reliance on these forward-looking statements.
(1) Non-GAAP
financial measure. Please see "Reconciliation of Non-GAAP
Items" in the financial tables for more information and for a
reconciliation to GAAP.
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
Financial Highlights
(unaudited)
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
For Three Months
Ended:
|
|
For Twelve Months
Ended:
|
|
|
|
|
|
|
|
|
|
|
|
Selected Performance
Ratios:
|
4Q
2024
|
3Q
2024
|
2Q
2024
|
1Q
2024
|
4Q
2023
|
|
4Q
2024
|
4Q
2023
|
Return on average
assets
|
(1.53 %)
|
0.12 %
|
0.35 %
|
0.26 %
|
(0.85 %)
|
|
(0.19 %)
|
(0.20 %)
|
Operating return on
average assets(1)
|
(1.67 %)
|
0.20 %
|
0.46 %
|
0.29 %
|
(0.80 %)
|
|
(0.17 %)
|
0.13 %
|
Pre-tax pre-provision
return on average assets(1)
|
0.52 %
|
0.86 %
|
0.75 %
|
1.02 %
|
0.96 %
|
|
0.62 %
|
0.60 %
|
Pre-tax pre-provision
operating return on average assets(1)
|
0.34 %
|
0.96 %
|
0.85 %
|
1.06 %
|
1.03 %
|
|
0.65 %
|
0.94 %
|
Return on average
common equity
|
(15.26 %)
|
1.31 %
|
3.69 %
|
2.59 %
|
(8.54 %)
|
|
(2.02 %)
|
(1.99 %)
|
Operating return on
average common equity(1)
|
(16.64 %)
|
2.15 %
|
4.81 %
|
2.95 %
|
(8.01 %)
|
|
(1.79 %)
|
1.31 %
|
Operating return on
average tangible common equity(1)
|
(22.07 %)
|
2.86 %
|
6.42 %
|
3.94 %
|
(10.71 %)
|
|
(2.40 %)
|
1.78 %
|
Cost of
funds
|
|
2.97 %
|
3.25 %
|
3.16 %
|
2.97 %
|
2.85 %
|
|
3.09 %
|
2.67 %
|
Net interest
margin
|
2.91 %
|
2.97 %
|
2.72 %
|
2.84 %
|
2.86 %
|
|
2.86 %
|
2.68 %
|
Gross loans to
deposits
|
91.70 %
|
89.94 %
|
98.95 %
|
97.37 %
|
98.45 %
|
|
91.70 %
|
98.45 %
|
Efficiency
ratio
|
|
94.59 %
|
82.98 %
|
83.42 %
|
77.41 %
|
81.31 %
|
|
84.83 %
|
85.16 %
|
Operating efficiency
ratio(1)
|
98.74 %
|
80.11 %
|
79.63 %
|
76.17 %
|
79.43 %
|
|
83.52 %
|
75.80 %
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
|
Earnings per common
share - Basic
|
$
(0.59)
|
$
0.05
|
$
0.14
|
$
0.10
|
$
(0.33)
|
|
$
(0.31)
|
$
(0.32)
|
Operating earnings per
common share - Basic(1)
|
$
(0.65)
|
$
0.08
|
$
0.18
|
$
0.11
|
$
(0.31)
|
|
$
(0.27)
|
$
0.21
|
Earnings per common
share - Diluted
|
$
(0.59)
|
$
0.05
|
$
0.14
|
$
0.10
|
$
(0.33)
|
|
$
(0.31)
|
$
(0.32)
|
Operating earnings per
common share - Diluted(1)
|
$
(0.65)
|
$
0.08
|
$
0.18
|
$
0.11
|
$
(0.31)
|
|
$
(0.27)
|
$
0.21
|
Book value per common
share
|
$
14.58
|
$
15.41
|
$
15.22
|
$
15.16
|
$
15.23
|
|
$
14.58
|
$
15.23
|
Tangible book value per
common share(1)
|
$
10.77
|
$
11.59
|
$
11.38
|
$
11.31
|
$
11.37
|
|
$
10.77
|
$
11.37
|
Cash dividend per
common share
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
|
$
0.40
|
$
0.40
|
Weighted average shares
outstanding - Basic
|
24,701,260
|
24,695,685
|
24,683,734
|
24,673,857
|
24,647,728
|
|
24,688,006
|
24,647,728
|
Weighted average shares
outstanding - Diluted
|
24,701,260
|
24,719,920
|
24,708,484
|
24,707,113
|
24,647,728
|
|
24,688,006
|
24,647,728
|
Shares outstanding at
end of period
|
24,722,734
|
24,722,734
|
24,708,234
|
24,708,588
|
24,693,172
|
|
24,722,734
|
24,693,172
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
Non-performing assets
as a percent of total assets, excluding SBA guarantees
|
0.29 %
|
0.25 %
|
0.25 %
|
0.23 %
|
0.20 %
|
|
0.29 %
|
0.20 %
|
Net charge-offs
(recoveries) as a percent of average loans (annualized)
|
3.84 %
|
0.93 %
|
0.60 %
|
0.64 %
|
0.94 %
|
|
1.48 %
|
0.45 %
|
Core net charge-offs
(recoveries) as a percent of average loans
(annualized)(1)
|
0.05 %
|
0.11 %
|
(0.07 %)
|
0.10 %
|
0.57 %
|
|
0.05 %
|
0.20 %
|
Allowance for credit
losses to total loans
|
1.49 %
|
1.72 %
|
1.56 %
|
1.66 %
|
1.62 %
|
|
1.49 %
|
1.62 %
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
Common equity to
assets
|
9.75 %
|
9.47 %
|
9.48 %
|
9.63 %
|
9.75 %
|
|
|
|
Tangible common equity
to tangible assets(1)
|
7.39 %
|
7.29 %
|
7.27 %
|
7.36 %
|
7.46 %
|
|
|
|
Leverage
ratio(2)
|
|
8.00 %
|
8.20 %
|
8.25 %
|
8.38 %
|
8.37 %
|
|
|
|
Common equity tier 1
capital ratio(2)
|
8.64 %
|
8.23 %
|
8.85 %
|
8.98 %
|
8.96 %
|
|
|
|
Tier 1 risk-based
capital ratio(2)
|
8.94 %
|
8.51 %
|
9.14 %
|
9.27 %
|
9.25 %
|
|
|
|
Total risk-based
capital ratio(2)
|
12.35 %
|
11.68 %
|
12.45 %
|
12.62 %
|
13.44 %
|
|
|
|
|
(1)
See Reconciliation of Non-GAAP financial
measures.
|
(2)
Ratios are estimated and may be subject to change pending the final
filing of the FR Y-9C.
|
Primis Financial
Corp.
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
(unaudited)
|
4Q
2024
|
3Q
2024
|
2Q
2024
|
1Q
2024
|
4Q
2023
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
64,505
|
$
77,274
|
$
66,580
|
$
88,717
|
$
77,553
|
Investment
securities-available for sale
|
235,903
|
242,543
|
232,867
|
230,617
|
228,420
|
Investment
securities-held to maturity
|
9,448
|
9,766
|
10,649
|
10,992
|
11,650
|
Loans held for
sale
|
227,235
|
458,722
|
94,644
|
72,217
|
57,691
|
Loans receivable, net
of deferred fees
|
2,907,914
|
2,973,723
|
3,300,562
|
3,227,665
|
3,219,414
|
Allowance for credit
losses
|
(43,227)
|
(51,132)
|
(51,574)
|
(53,456)
|
(52,209)
|
|
Net loans
|
|
2,864,687
|
2,922,591
|
3,248,988
|
3,174,209
|
3,167,205
|
Stock in Federal
Reserve Bank and Federal Home Loan Bank
|
13,037
|
20,875
|
16,837
|
14,225
|
14,246
|
Bank premises and
equipment, net
|
19,432
|
19,668
|
19,946
|
20,412
|
20,611
|
Operating lease
right-of-use assets
|
10,279
|
10,465
|
10,293
|
10,206
|
10,646
|
Goodwill and other
intangible assets
|
94,124
|
94,444
|
94,768
|
95,092
|
95,417
|
Assets held for sale,
net
|
5,185
|
9,864
|
5,136
|
6,359
|
6,735
|
Bank-owned life
insurance
|
67,184
|
66,750
|
66,319
|
67,685
|
67,588
|
Deferred tax assets,
net
|
24,019
|
25,582
|
25,232
|
24,513
|
22,395
|
Consumer Program
derivative asset
|
4,511
|
7,146
|
9,929
|
10,685
|
10,806
|
Other assets
|
|
59,272
|
58,657
|
63,830
|
64,050
|
65,583
|
|
Total assets
|
$
3,698,821
|
$
4,024,347
|
$
3,966,018
|
$
3,889,979
|
$
3,856,546
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
Demand
deposits
|
$
438,917
|
$
421,231
|
$
420,241
|
$
463,190
|
$
472,941
|
NOW accounts
|
|
817,715
|
748,833
|
793,608
|
771,116
|
773,028
|
Money market
accounts
|
798,506
|
835,099
|
831,834
|
834,514
|
794,530
|
Savings
accounts
|
775,719
|
873,810
|
866,279
|
823,325
|
783,758
|
Time
deposits
|
|
340,178
|
427,458
|
423,501
|
422,778
|
445,898
|
Total
deposits
|
|
3,171,035
|
3,306,431
|
3,335,463
|
3,314,923
|
3,270,155
|
Securities sold under
agreements to repurchase - short term
|
3,918
|
3,677
|
3,273
|
3,038
|
3,044
|
Federal Home Loan Bank
advances
|
-
|
165,000
|
80,000
|
25,000
|
30,000
|
Secured
borrowings
|
17,195
|
17,495
|
21,069
|
21,298
|
20,393
|
Subordinated debt and
notes
|
95,878
|
95,808
|
95,737
|
95,666
|
95,595
|
Operating lease
liabilities
|
11,566
|
11,704
|
11,488
|
11,353
|
11,686
|
Other
liabilities
|
|
25,541
|
27,169
|
24,777
|
24,102
|
28,080
|
|
Total
liabilities
|
3,325,133
|
3,627,284
|
3,571,807
|
3,495,380
|
3,458,953
|
Total Primis common
stockholders' equity
|
360,462
|
381,022
|
376,047
|
374,577
|
376,161
|
Noncontrolling
interest
|
13,226
|
16,041
|
18,164
|
20,022
|
21,432
|
|
Total stockholders'
equity
|
373,688
|
397,063
|
394,211
|
394,599
|
397,593
|
|
Total liabilities and
stockholders' equity
|
$
3,698,821
|
$
4,024,347
|
$
3,966,018
|
$
3,889,979
|
$
3,856,546
|
|
|
|
|
|
|
|
|
Tangible common
equity(1)
|
$
266,338
|
$
286,578
|
$
281,279
|
$
279,485
|
$
280,744
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
For Twelve Months
Ended:
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statement of Operations
(unaudited)
|
4Q
2024
|
3Q
2024
|
2Q
2024
|
1Q
2024
|
4Q
2023
|
|
4Q
2024
|
4Q
2023
|
Interest and dividend
income
|
$
51,400
|
$
57,104
|
$
52,191
|
$
50,336
|
$
50,163
|
|
$ 211,031
|
$
192,618
|
Interest
expense
|
|
25,260
|
29,081
|
27,338
|
25,067
|
24,437
|
|
106,746
|
93,907
|
|
Net interest
income
|
26,140
|
28,023
|
24,853
|
25,269
|
25,726
|
|
104,285
|
98,711
|
Provision for credit
losses
|
23,046
|
7,511
|
3,119
|
6,508
|
21,310
|
|
40,184
|
32,540
|
|
Net interest income
after provision for credit losses
|
3,094
|
20,512
|
21,734
|
18,761
|
4,416
|
|
64,101
|
66,171
|
Account maintenance and
deposit service fees
|
1,276
|
1,398
|
1,780
|
1,330
|
1,518
|
|
5,784
|
5,733
|
Income from bank-owned
life insurance
|
434
|
431
|
981
|
564
|
420
|
|
2,410
|
2,021
|
Mortgage banking
income
|
5,140
|
6,803
|
6,402
|
5,574
|
3,210
|
|
23,919
|
17,645
|
Gain (loss) on sale of
loans
|
(4)
|
-
|
(29)
|
336
|
526
|
|
303
|
794
|
Gain on sale of Life
Premium Finance portfolio, net of broker fees
|
4,723
|
-
|
-
|
-
|
-
|
|
4,723
|
-
|
Consumer Program
derivative
|
928
|
79
|
1,272
|
2,041
|
2,886
|
|
4,320
|
18,120
|
Gain on other
investments
|
15
|
51
|
136
|
206
|
190
|
|
408
|
184
|
Gain (loss) on bank
premises and equipment
|
(13)
|
352
|
124
|
-
|
(478)
|
|
463
|
-
|
Other
|
|
663
|
168
|
186
|
256
|
169
|
|
1,273
|
753
|
|
Noninterest
income
|
13,162
|
9,282
|
10,852
|
10,307
|
8,441
|
|
43,603
|
45,250
|
Employee compensation
and benefits
|
15,717
|
16,764
|
16,088
|
15,735
|
14,645
|
|
64,304
|
58,765
|
Occupancy and equipment
expenses
|
3,466
|
3,071
|
3,099
|
3,106
|
2,982
|
|
12,742
|
12,620
|
Amortization of
intangible assets
|
313
|
318
|
317
|
317
|
317
|
|
1,265
|
1,269
|
Goodwill
impairment
|
-
|
-
|
-
|
-
|
-
|
|
-
|
11,150
|
Virginia franchise tax
expense
|
631
|
631
|
632
|
631
|
849
|
|
2,525
|
3,395
|
Data processing
expense
|
3,434
|
2,552
|
2,347
|
2,231
|
2,216
|
|
10,564
|
9,545
|
Marketing
expense
|
499
|
449
|
499
|
459
|
352
|
|
1,906
|
1,819
|
Telecommunication and
communication expense
|
295
|
330
|
341
|
346
|
358
|
|
1,312
|
1,507
|
Professional
fees
|
|
3,129
|
2,914
|
2,976
|
1,365
|
1,586
|
|
10,384
|
4,641
|
Miscellaneous lending
expenses
|
1,446
|
1,098
|
285
|
451
|
1,128
|
|
3,280
|
3,006
|
Other
expenses
|
|
8,244
|
2,828
|
3,202
|
2,897
|
3,347
|
|
17,171
|
14,883
|
|
Noninterest
expense
|
37,174
|
30,955
|
29,786
|
27,538
|
27,780
|
|
125,453
|
122,600
|
Income (loss) before
income taxes
|
(20,918)
|
(1,161)
|
2,800
|
1,530
|
(14,923)
|
|
(17,749)
|
(11,179)
|
Income tax expense
(benefit)
|
(3,428)
|
(304)
|
1,265
|
718
|
(4,472)
|
|
(1,749)
|
(1,067)
|
|
Net Income
(loss)
|
(17,490)
|
(857)
|
1,535
|
812
|
(10,451)
|
|
(16,000)
|
(10,112)
|
|
Noncontrolling
interest
|
2,820
|
2,085
|
1,901
|
1,654
|
2,280
|
|
8,460
|
2,280
|
|
Net income (loss)
attributable to Primis' common shareholders
|
$
(14,670)
|
$
1,228
|
$
3,436
|
$
2,466
|
$
(8,171)
|
|
$
(7,540)
|
$
(7,832)
|
|
(1)
See Reconciliation of Non-GAAP financial
measures.
|
Primis Financial
Corp.
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
|
|
|
|
|
|
|
Loan Portfolio Composition
|
4Q
2024
|
3Q
2024
|
2Q
2024
|
1Q
2024
|
4Q
2023
|
Loans held for
sale
|
$
227,235
|
$
458,722
|
$
94,644
|
$
72,217
|
$
57,691
|
Loans secured by real
estate:
|
|
|
|
|
|
|
Commercial real estate
- owner occupied
|
475,892
|
463,848
|
463,328
|
458,026
|
455,397
|
|
Commercial real estate
- non-owner occupied
|
610,473
|
609,743
|
612,428
|
577,752
|
578,600
|
|
Secured by
farmland
|
3,706
|
4,356
|
4,758
|
4,341
|
5,044
|
|
Construction and land
development
|
101,243
|
105,541
|
104,886
|
146,908
|
164,742
|
|
Residential 1-4
family
|
588,855
|
607,313
|
608,035
|
602,124
|
606,226
|
|
Multi-family
residential
|
158,426
|
169,368
|
171,512
|
128,599
|
127,857
|
|
Home equity lines of
credit
|
62,955
|
62,421
|
62,152
|
57,765
|
59,670
|
|
Total real estate
loans
|
2,001,550
|
2,022,590
|
2,027,099
|
1,975,515
|
1,997,536
|
|
|
|
|
|
|
|
|
Commercial
loans
|
614,162
|
533,998
|
619,365
|
623,804
|
602,623
|
Paycheck Protection
Program loans
|
1,927
|
1,941
|
1,969
|
2,003
|
2,023
|
Consumer
loans
|
|
284,955
|
409,754
|
646,590
|
620,745
|
611,583
|
|
Total Non-PCD
loans
|
2,902,594
|
2,968,283
|
3,295,023
|
3,222,067
|
3,213,765
|
PCD loans
|
|
5,320
|
5,440
|
5,539
|
5,598
|
5,649
|
Total loans receivable,
net of deferred fees
|
$
2,907,914
|
$
2,973,723
|
$
3,300,562
|
$
3,227,665
|
$
3,219,414
|
|
|
|
|
|
|
|
|
Loans by Risk
Grade:
|
|
|
|
|
|
Pass Grade
1 - Highest Quality
|
872
|
820
|
692
|
633
|
875
|
Pass Grade
2 - Good Quality
|
195,669
|
177,763
|
488,728
|
412,593
|
405,019
|
Pass Grade
3 - Satisfactory Quality
|
1,567,228
|
1,509,405
|
1,503,918
|
1,603,053
|
1,626,380
|
Pass Grade
4 - Pass
|
1,042,404
|
1,184,671
|
1,204,268
|
1,177,065
|
1,154,971
|
Pass Grade
5 - Special Mention
|
30,111
|
53,473
|
87,471
|
19,454
|
14,930
|
Grade 6 -
Substandard
|
71,630
|
47,591
|
15,485
|
14,867
|
17,239
|
Grade 7 -
Doubtful
|
-
|
-
|
-
|
-
|
-
|
Grade 8 -
Loss
|
|
-
|
-
|
-
|
-
|
-
|
Total loans
|
|
$
2,907,914
|
$
2,973,723
|
$
3,300,562
|
$
3,227,665
|
$
3,219,414
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
|
|
|
|
|
|
|
Asset Quality Information
|
4Q
2024
|
3Q
2024
|
2Q
2024
|
1Q
2024
|
4Q
2023
|
Allowance for Credit
Losses:
|
|
|
Balance at beginning of
period
|
$
(51,132)
|
$
(51,574)
|
$
(53,456)
|
$
(52,209)
|
$
(38,541)
|
Provision for for
credit losses
|
(23,046)
|
(7,511)
|
(3,119)
|
(6,508)
|
(21,310)
|
Net
charge-offs
|
|
30,951
|
7,953
|
5,001
|
5,261
|
7,642
|
Ending
balance
|
|
$
(43,227)
|
$
(51,132)
|
$
(51,574)
|
$
(53,456)
|
$
(52,209)
|
|
|
|
|
|
|
|
|
Reserve for Unfunded
Commitments:
|
|
|
Balance at beginning of
period
|
$
(1,127)
|
$
(1,031)
|
$
(1,577)
|
$
(1,579)
|
$
(1,025)
|
(Expense for) /
recovery of unfunded loan commitment reserve
|
6
|
(96)
|
546
|
2
|
(554)
|
Total Reserve for
Unfunded Commitments
|
$
(1,121)
|
$
(1,127)
|
$
(1,031)
|
$
(1,577)
|
$
(1,579)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing
Assets:
|
4Q
2024
|
3Q
2024
|
2Q
2024
|
1Q
2024
|
4Q
2023
|
Nonaccrual
loans
|
$
15,027
|
$
14,424
|
$
11,289
|
$
10,139
|
$
9,095
|
Accruing loans
delinquent 90 days or more
|
1,713
|
1,714
|
1,897
|
1,714
|
1,714
|
Total non-performing
assets
|
$
16,740
|
$
16,138
|
$
13,186
|
$
11,853
|
$
10,809
|
SBA guaranteed portion
of non-performing loans
|
$
5,921
|
$
5,954
|
$
3,268
|
$
3,095
|
$
3,115
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
For Twelve Months
Ended:
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet
|
4Q
2024
|
3Q
2024
|
2Q
2024
|
1Q
2024
|
4Q
2023
|
|
4Q
2024
|
4Q
2023
|
Assets
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
100,027
|
$
98,110
|
$
84,389
|
$
58,896
|
$
48,380
|
|
$
85,430
|
$ 44,643
|
Loans, net of deferred
fees
|
3,127,472
|
3,324,157
|
3,266,651
|
3,206,888
|
3,208,295
|
|
3,231,262
|
3,126,717
|
Investment
securities
|
253,120
|
242,631
|
244,308
|
241,179
|
228,335
|
|
245,323
|
237,452
|
Other earning
assets
|
96,697
|
83,405
|
73,697
|
77,067
|
79,925
|
|
82,757
|
281,052
|
Total earning
assets
|
3,577,316
|
3,748,303
|
3,669,045
|
3,584,030
|
3,564,935
|
|
3,644,772
|
3,689,864
|
Other assets
|
|
237,793
|
243,715
|
243,196
|
248,082
|
262,977
|
|
242,566
|
261,265
|
Total
assets
|
|
$
3,815,109
|
$
3,992,018
|
$
3,912,241
|
$
3,832,112
|
$
3,827,912
|
|
$
3,887,338
|
$
3,951,129
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
437,388
|
$
421,908
|
$
433,315
|
$
458,306
|
$
473,750
|
|
$ 441,520
|
$
495,107
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
NOW and other demand
accounts
|
787,884
|
748,202
|
778,458
|
773,943
|
782,305
|
|
772,099
|
784,680
|
Money market
accounts
|
819,803
|
859,988
|
823,156
|
814,147
|
790,971
|
|
829,331
|
831,196
|
Savings
accounts
|
767,342
|
866,375
|
866,652
|
800,328
|
783,432
|
|
825,129
|
777,143
|
Time
deposits
|
|
404,682
|
425,238
|
423,107
|
431,340
|
451,521
|
|
421,058
|
474,178
|
Total
Deposits
|
3,217,099
|
3,321,711
|
3,324,688
|
3,278,064
|
3,281,979
|
|
3,289,137
|
3,362,304
|
Borrowings
|
|
160,886
|
238,994
|
158,919
|
120,188
|
120,213
|
|
169,912
|
159,442
|
Total
Funding
|
|
3,377,985
|
3,560,705
|
3,483,607
|
3,398,252
|
3,402,192
|
|
3,459,049
|
3,521,746
|
Other
Liabilities
|
|
39,566
|
36,527
|
34,494
|
34,900
|
39,056
|
|
36,421
|
35,494
|
Total
liabilites
|
|
3,417,551
|
3,597,232
|
3,518,101
|
3,433,152
|
3,441,248
|
|
3,495,470
|
3,557,240
|
Primis common
stockholders' equity
|
382,466
|
377,314
|
374,731
|
378,008
|
379,442
|
|
373,637
|
393,302
|
Noncontrolling
interest
|
15,092
|
17,472
|
19,409
|
20,952
|
7,222
|
|
18,231
|
587
|
Total stockholders'
equity
|
397,558
|
394,786
|
394,140
|
398,960
|
386,664
|
|
391,868
|
393,889
|
Total liabilities
and stockholders' equity
|
$
3,815,109
|
$
3,992,018
|
$
3,912,241
|
$
3,832,112
|
$
3,827,912
|
|
$
3,887,338
|
$
3,951,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
1,553
|
$
1,589
|
$
1,521
|
$
907
|
$
842
|
|
$
5,570
|
$
2,806
|
Loans
|
|
|
46,893
|
52,699
|
48,024
|
46,816
|
46,723
|
|
194,432
|
169,982
|
Investment
securities
|
1,894
|
1,799
|
1,805
|
1,715
|
1,645
|
|
7,213
|
6,373
|
Other earning
assets
|
1,060
|
1,017
|
841
|
898
|
953
|
|
3,816
|
13,457
|
Total
Earning Assets Income
|
51,400
|
57,104
|
52,191
|
50,336
|
50,163
|
|
211,031
|
192,618
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
DDA
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
NOW and other
interest-bearing demand accounts
|
4,771
|
4,630
|
4,827
|
4,467
|
4,334
|
|
18,695
|
15,404
|
Money market
accounts
|
6,190
|
7,432
|
6,788
|
6,512
|
6,129
|
|
26,923
|
23,717
|
Savings
accounts
|
7,587
|
8,918
|
8,912
|
8,045
|
7,860
|
|
33,462
|
29,774
|
Time
deposits
|
|
4,127
|
4,371
|
4,095
|
3,990
|
3,964
|
|
16,582
|
14,795
|
Total Deposit
Costs
|
22,675
|
25,351
|
24,622
|
23,014
|
22,287
|
|
95,662
|
83,690
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
2,585
|
3,730
|
2,716
|
2,053
|
2,150
|
|
11,084
|
10,217
|
Total Funding
Costs
|
25,260
|
29,081
|
27,338
|
25,067
|
24,437
|
|
106,746
|
93,907
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
$
26,140
|
$
28,023
|
$
24,853
|
$
25,269
|
$
25,726
|
|
$ 104,285
|
$ 98,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
6.18 %
|
6.44 %
|
7.25 %
|
6.19 %
|
6.90 %
|
|
6.52 %
|
6.29 %
|
Loans
|
|
|
5.96 %
|
6.31 %
|
5.91 %
|
5.87 %
|
5.78 %
|
|
6.02 %
|
5.44 %
|
Investments
|
|
2.98 %
|
2.95 %
|
2.97 %
|
2.86 %
|
2.86 %
|
|
2.94 %
|
2.68 %
|
Other Earning
Assets
|
4.36 %
|
4.85 %
|
4.59 %
|
4.69 %
|
4.73 %
|
|
4.61 %
|
4.79 %
|
Total Earning
Assets
|
5.72 %
|
6.06 %
|
5.72 %
|
5.65 %
|
5.58 %
|
|
5.79 %
|
5.22 %
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
|
2.41 %
|
2.46 %
|
2.49 %
|
2.32 %
|
2.20 %
|
|
2.42 %
|
1.96 %
|
MMDA
|
|
3.00 %
|
3.44 %
|
3.32 %
|
3.22 %
|
3.07 %
|
|
3.25 %
|
2.85 %
|
Savings
|
|
3.93 %
|
4.10 %
|
4.14 %
|
4.04 %
|
3.98 %
|
|
4.06 %
|
3.83 %
|
CDs
|
|
|
4.06 %
|
4.09 %
|
3.89 %
|
3.72 %
|
3.48 %
|
|
3.94 %
|
3.12 %
|
Cost of
Interest Bearing Deposits
|
3.25 %
|
3.48 %
|
3.42 %
|
3.28 %
|
3.15 %
|
|
3.36 %
|
2.92 %
|
Cost of
Deposits
|
2.80 %
|
3.04 %
|
2.98 %
|
2.82 %
|
2.69 %
|
|
2.91 %
|
2.49 %
|
|
|
|
|
|
|
|
|
|
|
|
Other
Funding
|
|
6.39 %
|
6.22 %
|
6.89 %
|
6.90 %
|
7.10 %
|
|
6.52 %
|
6.41 %
|
Total Cost of
Funds
|
2.97 %
|
3.25 %
|
3.16 %
|
2.97 %
|
2.85 %
|
|
3.09 %
|
2.67 %
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
2.91 %
|
2.97 %
|
2.72 %
|
2.84 %
|
2.86 %
|
|
2.86 %
|
2.68 %
|
Net Interest
Spread
|
2.30 %
|
2.37 %
|
2.11 %
|
2.22 %
|
2.27 %
|
|
2.25 %
|
2.12 %
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
For Three Months
Ended:
|
|
For Twelve Months
Ended:
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP items:
|
4Q
2024
|
3Q
2024
|
2Q
2024
|
1Q
2024
|
4Q
2023
|
|
4Q
2024
|
4Q
2023
|
Net income (loss)
attributable to Primis' common shareholders
|
$
(14,670)
|
$
1,228
|
$
3,436
|
$
2,466
|
$
(8,171)
|
|
$
(7,540)
|
$
(7,832)
|
Non-GAAP adjustments to
Net Income:
|
|
|
|
|
|
|
|
|
|
Branch Consolidation /
Other restructuring
|
-
|
-
|
-
|
-
|
449
|
|
-
|
1,937
|
|
Loan officer fraud,
operational losses
|
-
|
-
|
-
|
-
|
-
|
|
-
|
200
|
|
Professional fee
expense related to accounting matters and LPF sale
|
1,782
|
1,352
|
1,453
|
438
|
-
|
|
5,025
|
-
|
|
Professional fee
expenses related to Panacea investment
|
-
|
-
|
-
|
-
|
194
|
|
-
|
194
|
|
Goodwill
impairment
|
-
|
-
|
-
|
-
|
-
|
|
-
|
11,150
|
|
Gains on sale of closed
bank branch buildings
|
-
|
(352)
|
(124)
|
-
|
-
|
|
(476)
|
-
|
|
Gain on sale of Life
Premium Finance portfolio, net of broker fees
|
(4,723)
|
-
|
-
|
-
|
-
|
|
(4,723)
|
-
|
|
Consumer program fraud
losses
|
1,250
|
-
|
-
|
-
|
-
|
|
1,250
|
-
|
|
Income tax
effect
|
365
|
(216)
|
(287)
|
(95)
|
(139)
|
|
(232)
|
(503)
|
Net income (loss)
attributable to Primis' common shareholders adjusted for
nonrecurring income and
expenses
|
$
(15,996)
|
$
2,012
|
$
4,478
|
$
2,809
|
$
(7,667)
|
|
$
(6,696)
|
$
5,146
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Primis' common shareholders
|
$
(14,670)
|
$
1,228
|
$
3,436
|
$
2,466
|
$
(8,171)
|
|
$
(7,540)
|
$
(7,832)
|
|
Income tax expense
(benefit)
|
(3,428)
|
(304)
|
1,265
|
718
|
(4,472)
|
|
(1,749)
|
(1,067)
|
|
Provision for credit
losses (incl. unfunded commitment expense)
|
23,040
|
7,607
|
2,573
|
6,506
|
21,864
|
|
33,220
|
32,636
|
Pre-tax pre-provision
earnings
|
$
4,942
|
$
8,531
|
$
7,274
|
$
9,690
|
$
9,221
|
|
$
23,931
|
$ 23,737
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(1,691)
|
1,000
|
1,329
|
438
|
643
|
|
1,076
|
13,481
|
Pre-tax pre-provision
operating earnings
|
$
3,251
|
$
9,531
|
$
8,603
|
$
10,128
|
$
9,864
|
|
$
25,007
|
$ 37,218
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
(1.53 %)
|
0.12 %
|
0.35 %
|
0.26 %
|
(0.85 %)
|
|
(0.19 %)
|
(0.20 %)
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(0.14 %)
|
0.08 %
|
0.11 %
|
0.03 %
|
0.05 %
|
|
0.02 %
|
0.33 %
|
Operating return on
average assets
|
(1.67 %)
|
0.20 %
|
0.46 %
|
0.29 %
|
(0.80 %)
|
|
(0.17 %)
|
0.13 %
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
(1.53 %)
|
0.12 %
|
0.35 %
|
0.26 %
|
(0.85 %)
|
|
(0.19 %)
|
(0.20 %)
|
|
Effect of tax
expense
|
(0.36 %)
|
(0.03 %)
|
0.13 %
|
0.08 %
|
(0.46 %)
|
|
(0.03 %)
|
(0.03 %)
|
|
Effect of provision for
credit losses (incl. unfunded commitment expense)
|
2.41 %
|
0.77 %
|
0.27 %
|
0.68 %
|
2.27 %
|
|
0.85 %
|
0.83 %
|
Pre-tax pre-provision
return on average assets
|
0.52 %
|
0.86 %
|
0.75 %
|
1.02 %
|
0.96 %
|
|
0.62 %
|
0.60 %
|
|
Effect of adjustment
for nonrecurring income and expenses and expenses
|
(0.18 %)
|
0.10 %
|
0.10 %
|
0.04 %
|
0.07 %
|
|
0.03 %
|
0.34 %
|
Pre-tax pre-provision
operating return on average assets
|
0.34 %
|
0.96 %
|
0.85 %
|
1.06 %
|
1.03 %
|
|
0.65 %
|
0.94 %
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity
|
(15.26 %)
|
1.31 %
|
3.69 %
|
2.59 %
|
(8.54 %)
|
|
(2.02 %)
|
(1.99 %)
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(1.38 %)
|
0.84 %
|
1.12 %
|
0.36 %
|
0.53 %
|
|
0.22 %
|
3.30 %
|
Operating return on
average common equity
|
(16.64 %)
|
2.15 %
|
4.81 %
|
2.95 %
|
(8.01 %)
|
|
(1.79 %)
|
1.31 %
|
|
Effect of goodwill and
other intangible assets
|
(5.43 %)
|
0.71 %
|
1.61 %
|
0.99 %
|
(2.70 %)
|
|
(0.61 %)
|
0.47 %
|
Operating return on
average tangible common equity
|
(22.07 %)
|
2.86 %
|
6.42 %
|
3.94 %
|
(10.71 %)
|
|
(2.40 %)
|
1.78 %
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
94.59 %
|
82.98 %
|
83.42 %
|
77.41 %
|
81.31 %
|
|
84.83 %
|
85.16 %
|
|
Effect of adjustment
for nonrecurring income and expenses
|
4.16 %
|
(2.87 %)
|
(3.79 %)
|
(1.24 %)
|
(1.88 %)
|
|
(1.30 %)
|
(9.36 %)
|
Operating efficiency
ratio
|
98.74 %
|
80.11 %
|
79.63 %
|
76.17 %
|
79.43 %
|
|
83.52 %
|
75.80 %
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Basic
|
$
(0.59)
|
$
0.05
|
$
0.14
|
$
0.10
|
$
(0.33)
|
|
$
(0.31)
|
$
(0.32)
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(0.05)
|
0.03
|
0.04
|
0.01
|
0.02
|
|
0.03
|
0.53
|
Operating earnings per
common share - Basic
|
$
(0.65)
|
$
0.08
|
$
0.18
|
$
0.11
|
$
(0.31)
|
|
$
(0.27)
|
$
0.21
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Diluted
|
$
(0.59)
|
$
0.05
|
$
0.14
|
$
0.10
|
$
(0.33)
|
|
$
(0.31)
|
$
(0.32)
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(0.05)
|
0.03
|
0.04
|
0.01
|
0.02
|
|
0.03
|
0.53
|
Operating earnings per
common share - Diluted
|
$
(0.65)
|
$
0.08
|
$
0.18
|
$
0.11
|
$
(0.31)
|
|
$
(0.27)
|
$
0.21
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
$
14.58
|
$
15.41
|
$
15.22
|
$
15.16
|
$
15.23
|
|
$
14.58
|
$
15.23
|
|
Effect of goodwill and
other intangible assets
|
(3.81)
|
(3.82)
|
(3.84)
|
(3.85)
|
(3.86)
|
|
(3.81)
|
(3.86)
|
Tangible book value per
common share
|
$
10.77
|
$
11.59
|
$
11.38
|
$
11.31
|
$
11.37
|
|
$
10.77
|
$
11.37
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) as a percent of average loans (annualized)
|
3.84 %
|
0.93 %
|
0.60 %
|
0.64 %
|
0.94 %
|
|
1.48 %
|
0.45 %
|
|
Impact of third-party
consumer portfolio
|
(3.79 %)
|
(0.82 %)
|
(0.67 %)
|
(0.54 %)
|
(0.37 %)
|
|
(1.43 %)
|
(0.25 %)
|
Core net charge-offs
(recoveries) as a percent of average loans (annualized)
|
0.05 %
|
0.11 %
|
(0.07 %)
|
0.10 %
|
0.57 %
|
|
0.05 %
|
0.20 %
|
|
|
|
|
|
|
|
|
|
|
|
Total Primis common
stockholders' equity
|
$
360,462
|
$
381,022
|
$
376,047
|
$
374,577
|
$
376,161
|
|
$ 360,462
|
$
376,161
|
|
Less goodwill and other
intangible assets
|
(94,124)
|
(94,444)
|
(94,768)
|
(95,092)
|
(95,417)
|
|
(94,124)
|
(95,417)
|
Tangible common
equity
|
$
266,338
|
$
286,578
|
$
281,279
|
$
279,485
|
$
280,744
|
|
$ 266,338
|
$
280,744
|
|
|
|
|
|
|
|
|
|
|
|
Common equity to
assets
|
9.75 %
|
9.47 %
|
9.48 %
|
9.63 %
|
9.75 %
|
|
9.75 %
|
9.75 %
|
|
Effect of goodwill and
other intangible assets
|
(2.36 %)
|
(2.18 %)
|
(2.21 %)
|
(2.27 %)
|
(2.29 %)
|
|
(2.36 %)
|
(2.29 %)
|
Tangible common equity
to tangible assets
|
7.39 %
|
7.29 %
|
7.27 %
|
7.36 %
|
7.46 %
|
|
7.39 %
|
7.46 %
|
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SOURCE Primis Financial Corp.