Announces Investment in Panacea Financial
Holdings, Inc.
Declares Quarterly Cash Dividend of
$0.10 Per Share
MCLEAN,
Va., Jan. 25, 2024 /PRNewswire/ -- Primis
Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), and its
wholly-owned subsidiary, Primis Bank (the "Bank"), today reported
net income available to common shareholders of $8.1 million or $0.33 per diluted share for the quarter ended
December 31, 2023, compared to net
income available to common shareholders of $3.0 million or $0.12 per diluted share for the quarter ended
December 31, 2022.
For the year-to-date period in 2023, the Company
reported earnings available to common and diluted earnings per
share of $9.9 million and
$0.40, respectively, compared to
$17.5 million and $0.71, respectively, in the same period in
2022. Earnings for the year-to-date period in 2023 include
$13.0 million or $0.53 per diluted share of after-tax nonrecurring
charges and goodwill impairment.
Investment in Panacea Financial Holdings, Inc.
Panacea Financial Holdings, Inc. ("PFH") is a separate legal
entity that owns the rights to the Panacea Financial brand and
intellectual property with a goal of growing and monetizing those
assets. The Panacea Financial Division of Primis Bank has a
partnership agreement with PFH and is the primary bank partner as
of year-end 2023. In late December
2023, PFH completed a $24.5
million Series B financing round lead by a global venture
capital firm. Proceeds from the raise will allow PFH to
further invest in its strong brand and product offerings including
upgraded technology platforms to further serve customers. As
part of the financing round, Primis acquired approximately 19% of
PFH for an immaterial purchase price due to previous operating
losses in the Panacea Financial Division. At December 31, 2023, the implied fair market value
of Primis' investment in PFH based on the capital raise valuation
was approximately $20 million.
Dennis J. Zember, Jr., President
and Chief Executive Officer of Primis commented, "We are excited
that the hard work of the Panacea and Primis Bank teams has
resulted in a very successful capital raise with sophisticated
investors. This is a tremendous vote of confidence in what we
have been building over the past three years and will allow the
Panacea team to keep building out their brand and capabilities
while taking their business to the next level. Importantly,
Panacea's material improvement in profitability during 2023
combined with this infusion of capital immediately improves the
level and reliability of earnings that Primis Bank will enjoy from
the relationship and should be very accretive to future
operations."
"Primis has been a tremendous partner since we launched Panacea
in late 2020 and we are thrilled to announce the successful
completion of our Series B funding round," said Tyler Stafford, CFA, CEO and Co-founder of
Panacea Financial. "Our goal is to build a widely diversified and
deeply integrated suite of financial products and services for
doctors, their practices, and ultimately the broader healthcare
industry. Both Panacea and Primis are excited about what we can
accomplish together."
Because of the substantial activities between PFH and the
Panacea Financial Division of Primis, and limited activities of PFH
outside of its relationship with Primis at December 31, 2023, a thorough analysis of GAAP
requires Primis to consolidate PFH for financial reporting
purposes. As a result, all PFH balance sheet and income
statement items are reflected in the financial statements of
Primis. References to noncontrolling interests reflect the
interests in PFH of owners other than Primis. The analysis
for consolidation is a highly technical exercise and is required to
be evaluated regularly as facts and circumstances change.
Management anticipates that the increasing level of activity at PFH
will ultimately lead to deconsolidation in subsequent quarters.
PFH also elected to reimburse Primis for certain personnel
expenses for 2023 to compensate for a profitability target
shortfall in the Panacea Financial Division for the 2023 fiscal
year as defined in the partnership agreement between PFH and Primis
Bank. Total reimbursement was $2.81
million and was reflected in the fourth quarter of
2023. A substantial majority of the loss in noncontrolling
interest is primarily attributed to this reimbursement of costs to
Primis Bank by PFH.
Financial Highlights
The results of the fourth quarter of 2023 reflected material
improvement in operating results across several fronts.
Notably, the Company:
- Increased operating return on average assets(1) to
89 basis points, up from 81 basis points in the third quarter of
2023
- Generated a margin of 3.36%, up from 3.01% linked quarter.
Excluding accounting adjustments from a third-party managed
portfolio discussed below, margin for the fourth quarter was
3.09%.
- Opened over 2,000 new deposit account relationships totaling
$75 million with a weighted average
cost of only 2.96%.
- Sold approximately $16 million of
loans for gains of approximately $0.3
million and participated out another $15 million to manage balance sheet
capacity.
- Noninterest expense was $29.8
million for the fourth quarter of 2023, compared to
$37.1 million for the third quarter
of 2023. The fourth quarter of 2023 was by impacted the
consolidation of PFH and higher expenses due to a third party
managed portfolio while the third quarter of 2023 included a
$11.2 million goodwill impairment
expense. Excluding these items and nonrecurring expenses,
mortgage expenses and unfunded commitment reserve expense,
noninterest expense was $18.7 million
in the fourth quarter, down from $20.5 million in the third quarter
of 2023 on a comparable basis.
- Maintained peer-group leading liquidity with only $105 million of wholesale funding and
$113 million of off-balance sheet
funds swept off at December 31,
2023.
- 61% reduction in linked-quarter nonperforming assets to only
$7.7 million excluding SBA
guarantees
- Grew all capital ratios including TCE/TA which is now at 7.99%.
Leverage ratio increased to 8.93%.
Commenting on the quarterly results, Dennis J. Zember Jr., President and CEO stated,
"2023 was a challenging year for the industry and our bank.
But through it all, we actually grew revenue by $14 million or 11%. Our work in earlier
years positioned us well and allowed us to continue growing loans
(by 9.1%) but growing deposits even faster (20.1%). We
finished the year with very low NPAs and wholesale borrowings and
solid capital levels that we believe can accommodate continued
growth at measured levels. Most importantly, we completed a
restructuring of the Bank with some branch consolidation that when
taken with our other successes points to continued improvement in
overall profitability through the coming year."
Net Interest Income
Net interest income increased approximately $3.1 million to $30.3
million during the fourth quarter compared to the third
quarter of 2023 largely due to $2.6
million of accretion in the fourth quarter related to a
third-party managed portfolio (largely offset by a comparable
amount in noninterest expense) versus $0.3
million in the third quarter of 2023. Excluding this
accretion, net interest income increased to $27.7 million in the fourth quarter of 2023
versus $26.8 million
linked-quarter. For the year-to-date period in 2023, the
Company reported $108 million of net
interest income excluding accounting accretion compared to
$103 million in 2022, an increase of
4.7%. For the fourth quarter of 2023, the Company reported a
net interest margin of 3.36% versus 3.01% for the third quarter of
2023. Excluding accretion, margin increased 10 basis points
to 3.09% in the fourth quarter.
Interest income on earning assets increased during the fourth
quarter of 2023 to $54.7 million
compared to $50.8 million during the
third quarter of 2023. Excluding the accretion described
above, interest income increased to $52.1
million in the fourth quarter of 2023 compared to
$50.5 million during the third
quarter of 2023. Yield on earning assets and loans held for
investment were 6.08% and 6.33%, respectively. Excluding
accretion, yield on earning assets and loans held for investment
were 5.79% and 6.01%, up 22 basis points and 21 basis points,
respectively, from the third quarter of 2023.
Interest expense increased $0.7
million to $24.4 million in
the fourth quarter of 2023 compared to the third quarter of
2023. Cost of deposits increased 9 basis points to 2.69% in
the fourth quarter from 2.60% in the third quarter of 2023.
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 3 basis points to 1.94% in the
fourth quarter while the cost of wholesale funding options, using
three-month FHLB advance rates as a proxy, were 5.56% on average in
the quarter.
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
|
|
|
|
|
|
Core Bank Int.
Exp.
|
$
12,125
|
$
12,380
|
$
11,823
|
$
9,343
|
$
5,183
|
Digital Platform Int.
Exp.
|
$
10,162
|
$
9,196
|
$
12,960
|
$
5,701
|
$
127
|
|
|
|
|
|
|
Core Bank Avg.
Noninterest-bearing
|
$
472,630
|
$
471,813
|
$
472,416
|
$
555,771
|
$
648,051
|
Core Bank Avg.
Interest-bearing deposits (IBD)
|
$ 2,008,386
|
$ 2,099,617
|
$ 2,155,212
|
$
2,149,650
|
$
2,027,211
|
Digital Platform Avg.
IBD
|
$
800,963
|
$
723,145
|
$1,052,603
|
$
481,072
|
$
14,691
|
|
|
|
|
|
|
Core Bank Cost of
IBD
|
2.40 %
|
2.34 %
|
2.20 %
|
1.76 %
|
1.01 %
|
Core Bank Cost of
Deposits
|
1.94 %
|
1.91 %
|
1.80 %
|
1.40 %
|
0.77 %
|
Digital Platform Cost
of IBD
|
5.03 %
|
5.05 %
|
4.94 %
|
4.81 %
|
3.42 %
|
|
|
|
|
|
|
Avg. 3M FHLB
Rate
|
5.56 %
|
5.54 %
|
5.31 %
|
4.96 %
|
4.40 %
|
Noninterest Income
Noninterest income decreased during the fourth quarter to
$9.0 million compared to $9.9 million in the third quarter of 2023.
Excluding credit enhancement income from a third-party managed
portfolio, noninterest income decreased $2.0
million to $5.9 million in the
fourth quarter of 2023, largely due to decreased mortgage banking
activity. During the fourth quarter of 2023, the Bank
realized $0.3 million of gains
associated with the sale of Panacea commercial and consumer loans,
down slightly from $0.5 million of
gains recognized in the third quarter of 2023.
Noninterest Expense
Noninterest expense was $29.8 million for the fourth quarter of
2023, compared to $37.1 million for
the third quarter of 2023. Management considers the core expense
burden that adjusts for certain items such as those that are volume
dependent (e.g., mortgage banking related) or nonoperational (e.g.
accounting accruals for the third-party managed loan portfolio and
changes in the reserve for unfunded commitments). The
following table illustrates the degree to which the Company has
improved its operating expense burden during 2023:
|
4Q23
|
3Q23
|
4Q22
|
|
YTD23
|
YTD22
|
Reported Non-Interest
Expense
|
29,836
|
37,066
|
29,106
|
|
124,868
|
92,376
|
Less:
|
|
|
|
|
|
|
Goodwill
Impairment
|
|
(11,150)
|
|
|
(11,150)
|
|
Mortgage
Expenses
|
(4,785)
|
(5,108)
|
(5,357)
|
|
(20,152)
|
(9,361)
|
Branch Closure and
Other Nonrecurring
|
(643)
|
(200)
|
(1,175)
|
|
(2,331)
|
(1,175)
|
Effect of Consolidating
PFH
|
(2,813)
|
|
|
|
(2,813)
|
|
Effects of Third-Party
Managed Portfolio
|
(2,823)
|
(337)
|
(1,369)
|
|
(4,548)
|
(1,369)
|
Reserve for Unfunded
Commitment
|
(67)
|
257
|
(36)
|
|
325
|
(409)
|
Core Operating Expense
Burden
|
18,705
|
20,528
|
21,169
|
|
84,199
|
80,062
|
As noted above, the core expense burden increased $4.1 million or 5.2% during the year. Mr.
Zember noted, "The restructuring activities we undertook in the
second quarter of 2023 were supplemented in the third and fourth
quarter, resulting in a noticeable improvement in expenses.
Our run rate on expenses in the fourth quarter mirror levels we
experienced in 2022 despite substantially higher revenues and asset
levels."
Taxes
Tax expense for the fourth quarter was $0.4 million versus expense of $1.9 million in the third quarter of 2023.
The fourth quarter reflects the recognition of approximately
$1.1 million of R&D tax credits
the Bank is recovering from development work on the Bank's digital
banking platform over the past three years. The
remaining differences are largely due to adjustments to accruals
for the 2023 tax year. The Company expects the effective tax
rate in 2024 to be approximately 18.5%.
Loan Portfolio and Asset Quality
Loans held for investment increased to $3.21 billion at December
31, 2023, compared to $3.17
billion at September 30,
2023. The Company sold or participated out approximately
$31 million of loans in the fourth
quarter of 2023. Adjusting for these activities, loans would
have increased 2.5% in the fourth quarter of 2023 versus the third
quarter of 2023.
Nonperforming assets, excluding portions guaranteed by the SBA,
were $7.7 million at December 31, 2023, compared to $19.6 million at September
30, 2023, while loans rated substandard or doubtful
decreased to $17.2 million in the
fourth quarter of 2023 from $28.8
million in the third quarter of 2023. The decline was
largely attributable to one remaining assisted living problem
credit outstanding at September 30,
2023 that was resolved in early October. The Bank had no
other real estate owned at the end of the fourth quarter of
2023.
The Company recorded a provision for loan losses of $3.1 million for the fourth quarter of 2023
versus $1.6 million for the third
quarter of 2023. Of this provision, $3.0 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 provision for
loan losses would have been $0.1
million for the fourth quarter of 2023 due lowered modeled
losses on certain portfolios, particularly Panacea commercial loans
and Life Premium Finance. As a percentage of loans, excluding
PPP balances, the allowance for credit losses was 1.06% and 1.13%
at the end of the fourth and third quarter of 2023,
respectively.
Net charge-offs were $5.0 million
for the fourth quarter of 2023, up from $4.3
million for the third quarter of 2023. Excluding the
losses that are covered by a third-party, the fourth quarter of
2023 would have experienced $2.0
million of net charge-offs versus $2.2 million of net charge-offs in the third
quarter of 2023. Net charge-offs, excluding those losses
covered by the third party were $6.5
million, or 0.20%, in 2023 compared to $4.3 million, or 0.16%, in 2022.
Deposits and Funding
Total deposits on the balance sheet at December 31, 2023 decreased to $3.27 billion from $3.29
billion at September 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 to 22%. Liquidity sources represent almost
174% of uninsured or unsecured deposits as of December 31, 2023, up substantially from
December 31, 2022.
Deposit growth in the Bank continues to benefit from better
technology and unique convenience factors. During the fourth
quarter, the community bank attracted $58 million in new
deposit relationships with a weighted average cost of 2.37%.
V1BE, the Bank's proprietary invitation-only delivery tool,
increased total users by 16% during the fourth quarter of 2023,
from 1,013 at the end of the third quarter of 2023 to 1,179 at
the end of the fourth quarter of 2023.
During the fourth quarter, the Bank opened approximately
1,000 new deposit account on the digital platform with a
weighted average cost of 4.94%. 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 over 14,000 digital accounts with $910 million
in total deposits and average balances of $63 thousand.
As of December 31, 2023, the Bank
has $75 million of brokered CDs that
mature in the middle of 2024 and $30
million of overnight FHLB advances. The Bank has no
other wholesale funding and has $113
million of deposits currently sweeping to other
banks.
Digital Lines of Business
The Panacea Financial Division continues to experience
substantial growth alongside the development of the
nationally-recognized Panacea Financial brand. The Panacea
Financial Division finished the fourth quarter of 2023 with
approximately $322 million in
outstanding loans, an increase of $4.1
million from September 30, 2023. As highlighted
above, the division sold approximately $16
million of loans in the fourth quarter of 2023 for a pre-tax
gain of $0.3 million.
Panacea-related customer deposits increased to $56 million at December
31, 2023, up 5% from September 30,
2023 and a higher growth rate than the growth in loans for
the fourth quarter of 2023. Coupled with loan sales, the
Panacea Financial Division is expected to continue increasing the
amount with which it self-funds its balance sheet.
The Life Premium Finance ("LPF") division ended the fourth
quarter of 2023 with outstanding balances, net of deferred fees, of
$382 million, compared to
$361 million at the end of the third
quarter of 2023, or an increase of 5.9%. LPF also
participated out approximately $15
million of loans in the fourth quarter.
Primis Mortgage had a pre-tax loss of $733 thousand in the fourth quarter due to the
expected seasonal slowdown in mortgage activity and increased
hedging costs due to the rate volatility in the quarter.
Primis Mortgage continues to aggressively manage costs to preserve
profitability in a lower volume environment. The locked loan
pipeline decreased at the end of the fourth quarter of 2023 to
$23.1 million from $41.6 million at the end of the third quarter of
2023. Activity has increased as expected through January 2024 and the Company expects continued
growth in production and profitability throughout 2024.
Shareholders' Equity
Book value per common share as of December 31, 2023 was $16.09, an increase of $0.60 from September
30, 2023. Tangible book value per common
share(1) at the end of the fourth quarter of 2023 was
$12.23, an increase of $0.61 from September
30, 2023. Common shareholders' equity was
$397 million, or 10.25% of total
assets, at December 31, 2023.
Tangible common equity(1) at December 31, 2023 was $302
million, or 7.99% of tangible
assets(1). After-tax unrealized losses on
the Company's available-for-sale securities portfolio decreased by
$8.7 million to $21.8 million due to decreases in market interest
rates during the fourth 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 February 23, 2024 to shareholders of record on
February 9, 2024. This is
Primis' forty-ninth consecutive quarterly dividend.
About Primis Financial Corp.
As of December 31, 2023, Primis
had $3.9 billion in total assets,
$3.2 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 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 Friday,
January 26, 2024 at 10:00 a.m.
(ET). A live Webcast of the conference call is available at
the following website:
https://events.q4inc.com/attendee/441718411. Participants may
also call 1-888-330-3573 and ask for the Primis Financial Corp.
call. A replay of the teleconference will be available for 7
days by calling 1-800-770-2030 and providing Replay Access Code
4440924.
Non-GAAP Measures
Statements included in this press release include non-GAAP
financial measures and should be read along with the accompanying
tables. Primis uses non-GAAP financial measures to analyze its
performance. The measures entitled net income adjusted for
nonrecurring income and expenses; pre-tax pre-provision operating
earnings; operating return on average assets; pre-tax pre-provision
operating return on average assets; operating return on average
equity; operating return on average tangible equity; operating
efficiency ratio; operating earnings per share – basic; operating
earnings per share – diluted; tangible book value per share;
tangible common equity; tangible common equity to tangible assets;
and core net interest margin are not measures recognized under GAAP
and therefore are considered non-GAAP financial measures. We use
the term "operating" to describe a financial measure that excludes
income or expense considered to be non-recurring in nature.
Items identified as non-operating are those that, when excluded
from a reported financial measure, provide management or the reader
with a measure that may be more indicative of forward-looking
trends in our business. A reconciliation of these non-GAAP
financial measures to the most comparable GAAP measures is provided
in the Reconciliation of Non-GAAP Items table.
Management believes that these non-GAAP financial measures
provide additional useful information about Primis that allows
management and investors to evaluate the ongoing operating results,
financial strength and performance of Primis and provide meaningful
comparison to its peers. Non-GAAP financial measures should not be
considered as an alternative to any measure of performance or
financial condition as promulgated under GAAP, and investors should
consider Primis' performance and financial condition as reported
under GAAP and all other relevant information when assessing the
performance or financial condition of Primis. Non-GAAP
financial measures are not standardized and, therefore, it may not
be possible to compare these measures with other companies that
present measures having the same or similar names.
Non-GAAP financial measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the results or financial condition as
reported under GAAP.
Forward-Looking Statements
This press release and certain of our other filings with the
Securities and Exchange Commission contain statements that
constitute "forward-looking statements" within the meaning of, and
subject to the protections of, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. All statements other than statements of
historical fact are forward-looking statements. Such statements can
generally be identified by such words as "may," "plan,"
"contemplate," "anticipate," "believe," "intend," "continue,"
"expect," "project," "predict," "estimate," "could," "should,"
"would," "will," and other similar words or expressions of the
future or otherwise regarding the outlook for the Company's future
business and financial performance and/or the performance of the
banking industry and economy in general. These forward-looking
statements include, but are not limited to, our expectations
regarding our future operating and financial performance, including
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, digital banking platform, V1BE
fulfillment service and Primis Mortgage Company; competitive
pressures among financial institutions increasing significantly;
changes in applicable laws, rules, or regulations, including
changes to statutes, regulations or regulatory policies or
practices; changes in management's plans for the future; credit
risk associated with our lending activities; the impact of current
and future economic and market conditions generally (including
seasonality) and in the financial services industry, nationally and
within our primary market areas; changes in interest rates,
inflation, loan demand, real estate values, or competition, as well
as labor shortages and supply chain disruptions; changes in
accounting principles, policies, or guidelines; adverse results
from current or future litigation, regulatory examinations or other
legal and/or regulatory actions; potential impacts of adverse
developments in the banking industry highlighted by high-profile
bank failures, including impacts on customer confidence, deposit
outflows, liquidity and the regulatory response thereto; potential
increases in the provision for credit losses; our ability to
identify and address increased cybersecurity risks, including those
impacting vendors and other third parties; fraud or
misconduct by internal or external actors, which we may not be able
to prevent, detect or mitigate; acts of God or of war or other
conflicts, including the current Ukraine/Russia conflict and Israel/Hamas conflict, acts of terrorism,
pandemics or other catastrophic events that may affect general
economic conditions; and other general competitive, economic,
political, and market factors, including those affecting our
business, operations, pricing, products, or services.
Forward-looking statements speak only as of the date on which
such statements are made. These forward-looking statements are
based upon information presently known to the Company's management
and are inherently subjective, uncertain and subject to change due
to any number of risks and uncertainties, including, without
limitation, the risks and other factors set forth in the Company's
filings with the Securities and Exchange Commission, the Company's
Annual Report on Form 10-K for the year ended December 31, 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.
|
Primis Financial
Corp.
|
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Financial Highlights
(unaudited)
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(Dollars in
thousands, except per share data)
|
For Three Months
Ended:
|
|
Variance - 4Q 2023
vs.
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|
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For Twelve Months
Ended:
|
|
Variance
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Selected Performance
Ratios:
|
4Q
2023
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
|
3Q
2023
|
|
4Q
2022
|
|
|
4Q
2023
|
4Q
2022
|
|
YTD
|
|
Return on average
assets
|
0.84 %
|
(0.36 %)
|
(0.03 %)
|
0.58 %
|
0.35 %
|
|
120
|
bps
|
49
|
bps
|
|
0.25 %
|
0.53 %
|
|
(28)
|
bps
|
Operating return on
average assets(1)
|
0.89 %
|
0.81 %
|
0.08 %
|
0.58 %
|
0.08 %
|
|
8
|
|
81
|
|
|
0.58 %
|
0.50 %
|
|
8
|
|
Pre-tax pre-provision
return on average assets(1)
|
1.22 %
|
(0.03 %)
|
0.36 %
|
1.27 %
|
1.32 %
|
|
124
|
|
(11)
|
|
|
0.70 %
|
1.02 %
|
|
(32)
|
|
Pre-tax pre-provision
operating return on average assets(1)
|
1.29 %
|
1.14 %
|
0.50 %
|
1.27 %
|
0.98 %
|
|
16
|
|
31
|
|
|
1.04 %
|
0.89 %
|
|
15
|
|
Return on average
common equity
|
8.37 %
|
(3.54 %)
|
(0.27 %)
|
5.64 %
|
3.04 %
|
|
1,191
|
|
533
|
|
|
2.51 %
|
4.35 %
|
|
(184)
|
|
Operating return on
average common equity(1)
|
8.89 %
|
7.80 %
|
0.90 %
|
5.64 %
|
0.71 %
|
|
109
|
|
818
|
|
|
5.79 %
|
4.10 %
|
|
168
|
|
Operating return on
average tangible common equity(1)
|
11.82 %
|
10.69 %
|
1.23 %
|
7.69 %
|
0.98 %
|
|
114
|
|
1,084
|
|
|
7.86 %
|
5.59 %
|
|
227
|
|
Cost of
funds
|
|
2.85 %
|
2.75 %
|
2.83 %
|
2.20 %
|
1.19 %
|
|
9
|
|
165
|
|
|
2.66 %
|
0.75 %
|
|
191
|
|
Net interest
margin
|
3.36 %
|
3.01 %
|
2.64 %
|
3.15 %
|
3.67 %
|
|
36
|
|
(31)
|
|
|
3.03 %
|
3.39 %
|
|
(35)
|
|
Core net interest
margin(1)
|
3.36 %
|
3.01 %
|
2.64 %
|
3.15 %
|
3.68 %
|
|
35
|
|
(32)
|
|
|
3.03 %
|
3.40 %
|
|
(36)
|
|
Gross loans to
deposits
|
98.28 %
|
96.13 %
|
96.30 %
|
83.39 %
|
108.24 %
|
|
2
|
pts
|
(10)
|
pts
|
|
98.28 %
|
108.24 %
|
|
(10)
|
pts
|
Efficiency
ratio
|
|
76.04 %
|
99.97 %
|
88.42 %
|
69.26 %
|
71.82 %
|
|
(24)
|
|
422
|
|
|
83.00 %
|
73.50 %
|
|
950
|
|
Operating efficiency
ratio(1)
|
74.40 %
|
69.36 %
|
84.11 %
|
69.26 %
|
76.77 %
|
|
5
|
|
(237)
|
|
|
74.04 %
|
75.66 %
|
|
(163)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Basic
|
$
0.33
|
$
(0.14)
|
$
(0.01)
|
$
0.23
|
$
0.12
|
|
(330.29)
|
%
|
166.68
|
%
|
|
$
0.40
|
$
0.71
|
|
(43.54)
|
%
|
Operating earnings per
common share - Basic(1)
|
$
0.35
|
$
0.32
|
$
0.04
|
$
0.23
|
$
0.03
|
|
10.84
|
|
1,109.37
|
|
|
$
0.93
|
$
0.67
|
|
37.84
|
|
Earnings per common
share - Diluted
|
$
0.33
|
$
(0.14)
|
$
(0.01)
|
$
0.23
|
$
0.12
|
|
(329.92)
|
|
167.16
|
|
|
$
0.40
|
$
0.71
|
|
(43.40)
|
|
Operating earnings per
common share - Diluted(1)
|
$
0.35
|
$
0.32
|
$
0.04
|
$
0.23
|
$
0.03
|
|
10.66
|
|
1,111.55
|
|
|
$
0.93
|
$
0.67
|
|
38.18
|
|
Book value per common
share
|
$
16.09
|
$
15.49
|
$
15.91
|
$
16.13
|
$
15.90
|
|
3.85
|
|
1.21
|
|
|
$
16.09
|
$
15.90
|
|
1.21
|
|
Tangible book value per
common share(1)
|
$
12.23
|
$
11.62
|
$
11.57
|
$
11.77
|
$
11.53
|
|
5.26
|
|
6.06
|
|
|
$
12.23
|
$
11.53
|
|
6.06
|
|
Cash dividend per
common share
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
|
-
|
|
-
|
|
|
$
0.40
|
$
0.40
|
|
-
|
|
Weighted average shares
outstanding - Basic
|
24,647,728
|
24,641,981
|
24,638,505
|
24,625,943
|
24,601,108
|
|
0.02
|
|
0.19
|
|
|
24,638,609
|
24,561,483
|
|
0.31
|
|
Weighted average shares
outstanding - Diluted
|
24,687,993
|
24,641,981
|
24,638,505
|
24,685,206
|
24,685,663
|
|
0.19
|
|
0.01
|
|
|
24,686,289
|
24,668,838
|
|
0.07
|
|
Shares outstanding at
end of period
|
24,693,172
|
24,686,764
|
24,690,064
|
24,685,064
|
24,680,097
|
|
0.03
|
%
|
0.05
|
%
|
|
24,693,172
|
24,680,097
|
|
0.05
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
as a percent of total assets, excluding SBA guarantees
|
0.20 %
|
0.51 %
|
0.64 %
|
0.78 %
|
0.98 %
|
|
(31)
|
bps
|
(78)
|
bps
|
|
0.20 %
|
0.98 %
|
|
(78)
|
bps
|
Net charge-offs
(recoveries) as a percent of average loans (annualized)
|
0.61 %
|
0.53 %
|
0.20 %
|
0.53 %
|
0.74 %
|
|
8
|
|
(13)
|
|
|
0.47 %
|
0.23 %
|
|
24
|
|
Core net charge-offs
(recoveries) as a percent of average loans
(annualized)(2)
|
0.24 %
|
0.27 %
|
0.02 %
|
0.28 %
|
0.53 %
|
|
(3)
|
|
(29)
|
|
|
0.20 %
|
0.16 %
|
|
4
|
|
Allowance for credit
losses to total loans
|
1.06 %
|
1.13 %
|
1.21 %
|
1.17 %
|
1.17 %
|
|
(7)
|
|
(11)
|
|
|
1.06 %
|
1.17 %
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity to
assets
|
10.25 %
|
9.98 %
|
10.15 %
|
9.43 %
|
10.99 %
|
|
27
|
bps
|
(74)
|
bps
|
|
|
|
|
|
|
Tangible common equity
to tangible assets(1)
|
7.99 %
|
7.67 %
|
7.59 %
|
7.06 %
|
8.22 %
|
|
31
|
|
(23)
|
|
|
|
|
|
|
|
Leverage
ratio(3)
|
|
8.93 %
|
8.78 %
|
8.14 %
|
8.59 %
|
9.48 %
|
|
15
|
|
(55)
|
|
|
|
|
|
|
|
Common equity tier 1
capital ratio(3)
|
10.00 %
|
9.64 %
|
9.38 %
|
10.04 %
|
10.54 %
|
|
36
|
|
(54)
|
|
|
|
|
|
|
|
Tier 1 risk-based
capital ratio(3)
|
10.31 %
|
9.94 %
|
9.68 %
|
10.36 %
|
10.88 %
|
|
37
|
|
(57)
|
|
|
|
|
|
|
|
Total risk-based
capital ratio(3)
|
13.75 %
|
13.37 %
|
13.16 %
|
14.20 %
|
14.80 %
|
|
38
|
|
(105)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
See Reconciliation of Non-GAAP
financial measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Excludes third-party
charge-offs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
December 31, 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 - 4Q 2023
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
(unaudited)
|
4Q
2023
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
|
3Q
2023
|
|
4Q
2022
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
77,553
|
$
93,865
|
$
100,868
|
$
607,125
|
$
77,859
|
|
(17.38)
|
%
|
(0.39)
|
%
|
|
|
|
|
|
|
Investment
securities-available for sale
|
228,420
|
216,875
|
223,087
|
231,468
|
236,315
|
|
5.32
|
|
(3.34)
|
|
|
|
|
|
|
|
Investment
securities-held to maturity
|
11,650
|
11,975
|
12,378
|
13,115
|
13,520
|
|
(2.71)
|
|
(13.83)
|
|
|
|
|
|
|
|
Loans held for
sale
|
57,691
|
66,266
|
57,704
|
42,011
|
27,626
|
|
(12.94)
|
|
108.83
|
|
|
|
|
|
|
|
Loans receivable, net
of deferred fees
|
3,213,805
|
3,165,830
|
3,194,352
|
3,058,772
|
2,946,637
|
|
1.52
|
|
9.07
|
|
|
|
|
|
|
|
Allowance for credit
losses
|
(34,040)
|
(35,861)
|
(38,544)
|
(35,847)
|
(34,544)
|
|
(5.08)
|
|
(1.46)
|
|
|
|
|
|
|
|
|
Net loans
|
|
3,179,765
|
3,129,969
|
3,155,807
|
3,022,925
|
2,912,093
|
|
1.59
|
|
9.19
|
|
|
|
|
|
|
|
Stock in Federal
Reserve Bank and Federal Home Loan Bank
|
14,246
|
12,796
|
12,083
|
12,083
|
25,815
|
|
11.33
|
|
(44.82)
|
|
|
|
|
|
|
|
Bank premises and
equipment, net
|
20,611
|
24,878
|
25,298
|
25,136
|
25,257
|
|
(17.15)
|
|
(18.39)
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
10,646
|
11,402
|
10,707
|
9,352
|
5,335
|
|
(6.63)
|
|
99.55
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
95,417
|
95,741
|
107,215
|
107,539
|
107,863
|
|
(0.34)
|
|
(11.54)
|
|
|
|
|
|
|
|
Assets held for sale,
net
|
6,735
|
3,115
|
3,115
|
3,115
|
3,115
|
|
116.21
|
|
116.21
|
|
|
|
|
|
|
|
Bank-owned life
insurance
|
67,588
|
67,176
|
67,985
|
67,591
|
67,201
|
|
0.61
|
|
0.58
|
|
|
|
|
|
|
|
Other real estate
owned
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Deferred tax assets,
net
|
19,585
|
22,565
|
20,513
|
18,924
|
18,289
|
|
(13.21)
|
|
7.09
|
|
|
|
|
|
|
|
Other assets
|
|
86,167
|
76,478
|
71,925
|
59,792
|
49,211
|
|
12.67
|
|
75.10
|
|
|
|
|
|
|
|
|
Total assets
|
$
3,876,074
|
$
3,833,101
|
$
3,868,685
|
$
4,220,176
|
$
3,569,499
|
|
1.12
|
%
|
8.59
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
472,941
|
$
490,719
|
$
480,832
|
$
497,531
|
$
582,556
|
|
(3.62)
|
%
|
(18.82)
|
%
|
|
|
|
|
|
|
NOW accounts
|
|
773,028
|
803,276
|
817,725
|
835,348
|
617,687
|
|
(3.77)
|
|
25.15
|
|
|
|
|
|
|
|
Money market
accounts
|
794,530
|
800,951
|
850,359
|
865,115
|
811,365
|
|
(0.80)
|
|
(2.07)
|
|
|
|
|
|
|
|
Savings
accounts
|
783,758
|
746,608
|
696,750
|
971,439
|
245,713
|
|
4.98
|
|
218.97
|
|
|
|
|
|
|
|
Time
deposits
|
|
445,898
|
451,850
|
471,330
|
498,564
|
465,057
|
|
(1.32)
|
|
(4.12)
|
|
|
|
|
|
|
|
Total deposits
|
|
3,270,155
|
3,293,404
|
3,316,996
|
3,667,997
|
2,722,378
|
|
(0.71)
|
|
20.12
|
|
|
|
|
|
|
|
Securities sold under
agreements to repurchase - short term
|
3,044
|
3,838
|
3,921
|
4,346
|
6,445
|
|
(20.69)
|
|
(52.77)
|
|
|
|
|
|
|
|
Federal Home Loan Bank
advances
|
30,000
|
-
|
-
|
-
|
325,000
|
|
100.00
|
|
(90.77)
|
|
|
|
|
|
|
|
Secured
borrowings
|
20,332
|
19,702
|
20,604
|
17,169
|
-
|
|
-
|
|
100.00
|
|
|
|
|
|
|
|
Subordinated debt and
notes
|
95,595
|
95,524
|
95,453
|
95,382
|
95,312
|
|
0.07
|
|
0.30
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
11,686
|
12,347
|
11,546
|
9,799
|
5,767
|
|
(5.35)
|
|
102.64
|
|
|
|
|
|
|
|
Other
liabilities
|
|
26,500
|
25,797
|
27,371
|
27,418
|
22,232
|
|
2.73
|
|
19.20
|
|
|
|
|
|
|
|
|
Total
liabilities
|
3,457,312
|
3,450,612
|
3,475,891
|
3,822,111
|
3,177,134
|
|
0.19
|
|
8.82
|
|
|
|
|
|
|
|
Total Primis common
stockholders' equity
|
397,330
|
382,487
|
392,795
|
398,064
|
392,365
|
|
3.88
|
|
1.27
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
21,432
|
-
|
-
|
-
|
-
|
|
100.00
|
|
100.00
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
418,762
|
382,487
|
392,795
|
398,064
|
392,365
|
|
9.48
|
|
6.73
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
3,876,074
|
$
3,833,100
|
$
3,868,686
|
$
4,220,176
|
$
3,569,499
|
|
1.12
|
%
|
8.59
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity(1)
|
$
301,913
|
$
286,746
|
$
285,580
|
$
290,525
|
$
284,502
|
|
5.29
|
%
|
6.12
|
%
|
|
|
|
|
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
Variance - 4Q 2023
vs.
|
|
|
For Twelve Months
Ended:
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statement of Operations
(unaudited)
|
4Q
2023
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
|
3Q
2023
|
|
4Q
2022
|
|
|
4Q
2023
|
4Q
2022
|
|
YTD
|
|
Interest and dividend
income
|
$
54,661
|
$
50,808
|
$
53,029
|
$
47,395
|
$
38,595
|
|
7.58
|
%
|
41.63
|
%
|
|
$
205,893
|
$
125,945
|
|
63.48
|
%
|
Interest
expense
|
|
24,405
|
23,672
|
26,794
|
18,902
|
9,058
|
|
3.09
|
|
169.43
|
|
|
93,774
|
21,587
|
|
NM
|
|
|
Net interest
income
|
30,256
|
27,136
|
26,235
|
28,493
|
29,537
|
|
11.50
|
|
2.43
|
|
|
112,119
|
104,358
|
|
7.44
|
|
Provision for credit
losses
|
3,141
|
1,612
|
4,312
|
5,307
|
7,860
|
|
94.86
|
|
(60.04)
|
|
|
14,371
|
11,271
|
|
27.51
|
|
|
Net interest income
after provision for credit losses
|
27,115
|
25,524
|
21,923
|
23,186
|
21,677
|
|
6.23
|
|
25.09
|
|
|
97,748
|
93,087
|
|
5.01
|
|
Account maintenance and
deposit service fees
|
1,578
|
1,503
|
1,430
|
1,216
|
1,427
|
|
4.99
|
|
10.58
|
|
|
5,727
|
5,745
|
|
(0.31)
|
|
Income from bank-owned
life insurance
|
420
|
787
|
394
|
420
|
847
|
|
(46.63)
|
|
(50.41)
|
|
|
2,021
|
1,994
|
|
1.35
|
|
Mortgage banking
income
|
3,210
|
4,922
|
5,198
|
4,315
|
2,264
|
|
(34.78)
|
|
41.78
|
|
|
17,645
|
5,054
|
|
249.13
|
|
Gain on sale of
loans
|
290
|
451
|
-
|
52
|
-
|
|
(35.76)
|
|
-
|
|
|
793
|
-
|
|
100.00
|
|
Credit enhancement
income
|
3,124
|
2,047
|
1,152
|
4,886
|
1,822
|
|
52.61
|
|
71.46
|
|
|
11,209
|
3,042
|
|
100.00
|
|
Gain on sale of other
investment
|
190
|
-
|
-
|
-
|
4,411
|
|
-
|
|
(95.69)
|
|
|
190
|
4,411
|
|
(95.69)
|
|
Other
|
|
168
|
232
|
130
|
217
|
217
|
|
(27.59)
|
|
(22.58)
|
|
|
747
|
1,082
|
|
(30.96)
|
|
|
Noninterest
income
|
8,980
|
9,942
|
8,304
|
11,106
|
10,988
|
|
(9.68)
|
|
(18.27)
|
|
|
38,332
|
21,328
|
|
79.73
|
|
Employee compensation
and benefits
|
14,645
|
13,809
|
15,283
|
15,028
|
16,213
|
|
6.05
|
|
(9.67)
|
|
|
58,765
|
49,005
|
|
19.92
|
|
Occupancy and equipment
expenses
|
2,982
|
3,170
|
3,445
|
3,022
|
2,899
|
|
(5.93)
|
|
2.86
|
|
|
12,619
|
10,859
|
|
16.21
|
|
Amortization of
intangible assets
|
317
|
317
|
318
|
317
|
317
|
|
-
|
|
-
|
|
|
1,269
|
1,325
|
|
(4.23)
|
|
Goodwill
impairment
|
-
|
11,150
|
-
|
-
|
-
|
|
(100.00)
|
|
-
|
|
|
11,150
|
-
|
|
100.00
|
|
Virginia franchise tax
expense
|
849
|
849
|
848
|
849
|
814
|
|
-
|
|
4.30
|
|
|
3,395
|
3,254
|
|
4.33
|
|
Data processing
expense
|
2,217
|
2,250
|
2,828
|
2,251
|
1,702
|
|
(1.47)
|
|
30.26
|
|
|
9,546
|
6,013
|
|
58.76
|
|
Marketing
expense
|
352
|
377
|
521
|
569
|
933
|
|
(6.63)
|
|
(62.27)
|
|
|
1,819
|
3,067
|
|
(40.69)
|
|
Telecommunication and
communication expense
|
358
|
356
|
416
|
377
|
343
|
|
0.56
|
|
4.37
|
|
|
1,507
|
1,433
|
|
5.16
|
|
Net (gain) loss on
other real estate owned
|
-
|
-
|
-
|
-
|
131
|
|
-
|
|
(100.00)
|
|
|
-
|
72
|
|
(100.00)
|
|
Loss (gain) on bank
premises and equipment
|
478
|
(2)
|
-
|
-
|
-
|
|
NM
|
|
100.00
|
|
|
476
|
684
|
|
(30.41)
|
|
Professional
fees
|
|
1,586
|
1,118
|
1,075
|
862
|
1,605
|
|
41.86
|
|
(1.18)
|
|
|
4,641
|
4,787
|
|
(3.05)
|
|
Credit enhancement
costs
|
2,823
|
337
|
515
|
873
|
1,369
|
|
737.69
|
|
106.21
|
|
|
4,548
|
1,369
|
|
100.00
|
|
Other
expenses
|
|
3,229
|
3,335
|
5,291
|
3,277
|
2,780
|
|
(3.19)
|
|
16.14
|
|
|
15,132
|
10,508
|
|
44.01
|
|
|
Noninterest
expense
|
29,836
|
37,066
|
30,540
|
27,425
|
29,106
|
|
(19.51)
|
|
2.51
|
|
|
124,868
|
92,376
|
|
35.17
|
|
Income (loss) before
income taxes
|
6,259
|
(1,600)
|
(313)
|
6,866
|
3,559
|
|
NM
|
|
75.87
|
|
|
11,212
|
22,039
|
|
(49.13)
|
|
Income tax expense
(benefit)
|
418
|
1,925
|
(46)
|
1,254
|
519
|
|
(78.29)
|
|
(19.51)
|
|
|
3,552
|
4,490
|
|
(20.89)
|
|
|
Net Income
(loss)
|
5,841
|
(3,526)
|
(268)
|
5,612
|
3,040
|
|
(265.68)
|
|
92.17
|
|
|
7,660
|
17,549
|
|
(56.35)
|
|
|
Noncontrolling
interest
|
$
2,280
|
-
|
-
|
-
|
-
|
|
100.00
|
|
100.00
|
|
|
2,280
|
-
|
|
100.00
|
|
|
Net income (loss)
attributable to Primis' common shareholders
|
$
8,121
|
$
(3,526)
|
$
(268)
|
$
5,612
|
$
3,040
|
|
(330.35)
|
|
167.18
|
|
|
$
9,940
|
$ 17,549
|
|
(43.36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 - 4Q 2023
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio Composition
|
4Q
2023
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
|
3Q
2023
|
|
4Q
2022
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
57,691
|
$
66,266
|
$
57,704
|
$
42,011
|
$
27,626
|
|
(12.94)
|
%
|
108.83
|
%
|
|
|
|
|
|
|
Loans secured by real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
- owner occupied
|
456,283
|
439,627
|
455,252
|
465,072
|
461,126
|
|
3.79
|
|
(1.05)
|
|
|
|
|
|
|
|
|
Commercial real estate
- non-owner occupied
|
579,960
|
578,261
|
597,254
|
577,481
|
581,168
|
|
0.29
|
|
(0.21)
|
|
|
|
|
|
|
|
|
Secured by
farmland
|
6,339
|
6,381
|
6,577
|
6,258
|
7,290
|
|
(0.66)
|
|
(13.05)
|
|
|
|
|
|
|
|
|
Construction and land
development
|
164,808
|
172,071
|
175,141
|
151,950
|
148,762
|
|
(4.22)
|
|
10.79
|
|
|
|
|
|
|
|
|
Residential 1-4
family
|
607,029
|
601,198
|
592,756
|
607,118
|
610,919
|
|
0.97
|
|
(0.64)
|
|
|
|
|
|
|
|
|
Multi-family
residential
|
127,857
|
129,586
|
133,754
|
139,978
|
140,321
|
|
(1.33)
|
|
(8.88)
|
|
|
|
|
|
|
|
|
Home equity lines of
credit
|
59,670
|
59,996
|
62,808
|
64,606
|
65,152
|
|
(0.54)
|
|
(8.41)
|
|
|
|
|
|
|
|
|
Total real estate
loans
|
2,001,946
|
1,987,120
|
2,023,542
|
2,012,463
|
2,014,738
|
|
0.75
|
|
(0.63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans
|
603,862
|
607,142
|
599,527
|
558,454
|
522,057
|
|
(0.54)
|
|
15.67
|
|
|
|
|
|
|
|
Paycheck Protection
Program loans
|
2,023
|
2,105
|
2,143
|
2,603
|
4,564
|
|
(3.90)
|
|
(55.67)
|
|
|
|
|
|
|
|
Consumer
loans
|
|
605,974
|
569,463
|
569,139
|
485,252
|
405,278
|
|
6.41
|
|
49.52
|
|
|
|
|
|
|
|
|
Loans receivable, net
of deferred fees
|
$
3,213,805
|
$
3,165,830
|
$
3,194,352
|
$
3,058,772
|
$
2,946,637
|
|
1.52
|
%
|
9.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by Risk
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass, not
graded
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
|
-
|
%
|
-
|
%
|
|
|
|
|
|
|
Pass Grade
1 - Highest Quality
|
875
|
851
|
743
|
607
|
600
|
|
2.82
|
|
45.83
|
|
|
|
|
|
|
|
Pass Grade
2 - Good Quality
|
405,019
|
383,306
|
367,950
|
253,665
|
209,605
|
|
5.66
|
|
93.23
|
|
|
|
|
|
|
|
Pass Grade
3 - Satisfactory Quality
|
1,626,380
|
1,609,924
|
1,624,626
|
1,596,091
|
1,590,765
|
|
1.02
|
|
2.24
|
|
|
|
|
|
|
|
Pass Grade
4 - Pass
|
1,149,362
|
1,109,638
|
1,134,932
|
1,140,632
|
1,072,352
|
|
3.58
|
|
7.18
|
|
|
|
|
|
|
|
Pass Grade
5 - Special Mention
|
14,930
|
33,299
|
32,383
|
28,273
|
32,278
|
|
(55.16)
|
|
(53.75)
|
|
|
|
|
|
|
|
Grade 6 -
Substandard
|
17,239
|
28,812
|
33,718
|
39,504
|
41,037
|
|
(40.17)
|
|
(57.99)
|
|
|
|
|
|
|
|
Grade 7 -
Doubtful
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Grade 8 -
Loss
|
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Total loans
|
|
$
3,213,805
|
$
3,165,830
|
$
3,194,352
|
$
3,058,772
|
$
2,946,637
|
|
1.52
|
%
|
9.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
As Of or For Three
Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Information
|
4Q
2023
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
(35,861)
|
$
(38,544)
|
$
(35,847)
|
$
(34,544)
|
$
(31,956)
|
|
|
|
|
|
|
|
|
|
|
|
Provision for for
credit losses
|
(3,141)
|
(1,612)
|
(4,312)
|
(5,307)
|
(7,860)
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs
|
|
4,962
|
4,295
|
1,614
|
4,004
|
5,272
|
|
|
|
|
|
|
|
|
|
|
|
Ending
balance
|
|
$
(34,040)
|
$
(35,861)
|
$
(38,544)
|
$
(35,847)
|
$
(34,544)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for Unfunded
Commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
(1,024)
|
$
(1,281)
|
$
(1,527)
|
$
(1,416)
|
$
(1,380)
|
|
|
|
|
|
|
|
|
|
|
|
(Expense for) /
recovery of unfunded loan commitment reserve
|
(67)
|
257
|
246
|
(111)
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
Total Reserve for
Unfunded Commitments
|
$
(1,091)
|
$
(1,024)
|
$
(1,281)
|
$
(1,527)
|
$
(1,416)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of:
|
|
Variance - 4Q 2023
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing
Assets:
|
4Q
2023
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
|
3Q
2023
|
|
4Q
2022
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
9,095
|
$
20,171
|
$
25,290
|
$
33,397
|
$
35,484
|
|
(54.91)
|
%
|
(74.37)
|
%
|
|
|
|
|
|
|
Accruing loans
delinquent 90 days or more
|
1,714
|
1,714
|
1,714
|
1,625
|
3,361
|
|
-
|
|
(49.00)
|
|
|
|
|
|
|
|
Total non-performing
loans
|
10,809
|
21,885
|
27,004
|
35,022
|
38,845
|
|
(50.61)
|
|
(72.17)
|
|
|
|
|
|
|
|
Other real estate
owned
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Total non-performing
assets
|
$
10,809
|
$
21,885
|
$
27,004
|
$
35,022
|
$
38,845
|
|
(50.61)
|
|
(72.17)
|
|
|
|
|
|
|
|
SBA guaranteed portion
of non-performing loans
|
$
3,115
|
$
2,290
|
$
2,331
|
$
2,206
|
$
3,969
|
|
36.03
|
|
(21.52)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
Variance - 4Q 2023
vs.
|
|
|
For Twelve Months
Ended:
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet
|
4Q
2023
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
|
3Q
2023
|
|
4Q
2022
|
|
|
4Q
2023
|
4Q
2022
|
|
YTD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
48,380
|
$
55,775
|
$
48,698
|
$
25,346
|
$
22,413
|
#
|
(13.26)
|
%
|
115.86
|
%
|
|
$ 44,643
|
$ 12,722
|
|
250.91
|
%
|
Loans, net of deferred
fees
|
3,212,140
|
3,195,417
|
3,122,660
|
3,007,005
|
2,822,693
|
#
|
0.52
|
|
13.80
|
|
|
3,133,883
|
2,590,602
|
|
20.97
|
|
Investment
securities
|
228,335
|
234,601
|
240,700
|
246,402
|
253,345
|
#
|
(2.67)
|
|
(9.87)
|
|
|
237,452
|
278,162
|
|
(14.64)
|
|
Other earning
assets
|
79,925
|
93,159
|
568,251
|
388,327
|
92,604
|
#
|
(14.21)
|
|
(13.69)
|
|
|
281,052
|
200,828
|
|
39.95
|
|
Total earning
assets
|
3,568,780
|
3,578,952
|
3,980,309
|
3,667,080
|
3,191,055
|
|
(0.28)
|
|
11.84
|
|
|
3,697,030
|
3,082,314
|
|
19.94
|
|
Other assets
|
|
264,573
|
267,527
|
258,528
|
253,734
|
246,754
|
|
(1.10)
|
|
7.22
|
|
|
261,834
|
234,286
|
|
11.76
|
|
Total
assets
|
|
$
3,833,353
|
$
3,846,480
|
$
4,238,836
|
$
3,920,814
|
$
3,437,809
|
|
(0.34)
|
%
|
11.51
|
%
|
|
$
3,958,864
|
$
3,316,600
|
|
19.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
473,750
|
$
472,485
|
$
473,295
|
$
556,479
|
$
648,151
|
|
0.27
|
%
|
(26.91)
|
%
|
|
$
495,105
|
$
614,285
|
|
(19.40)
|
%
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and other demand
accounts
|
782,305
|
806,339
|
826,598
|
722,584
|
624,868
|
|
(2.98)
|
|
25.20
|
|
|
784,680
|
698,907
|
|
12.27
|
|
Money market
accounts
|
790,971
|
850,892
|
858,532
|
824,541
|
805,303
|
|
(7.04)
|
|
(1.78)
|
|
|
831,196
|
807,330
|
|
2.96
|
|
Savings
accounts
|
783,432
|
703,809
|
1,026,085
|
593,823
|
232,543
|
|
11.31
|
|
236.90
|
|
|
777,143
|
224,682
|
|
245.89
|
|
Time
deposits
|
|
451,521
|
460,961
|
495,721
|
489,066
|
379,088
|
|
(2.05)
|
|
19.11
|
|
|
474,178
|
350,720
|
|
35.20
|
|
Total
Deposits
|
3,281,979
|
3,294,486
|
3,680,231
|
3,186,493
|
2,689,953
|
|
(0.38)
|
|
22.01
|
|
|
3,362,302
|
2,695,924
|
|
24.72
|
|
Borrowings
|
|
120,913
|
118,806
|
120,398
|
302,115
|
325,100
|
|
1.77
|
|
(62.81)
|
|
|
164,488
|
193,050
|
|
(14.80)
|
|
Total
Funding
|
|
3,402,892
|
3,413,292
|
3,800,629
|
3,488,608
|
3,015,053
|
|
(0.30)
|
|
12.86
|
|
|
3,526,790
|
2,888,974
|
|
22.08
|
|
Other
Liabilities
|
|
38,390
|
37,743
|
37,274
|
28,613
|
26,318
|
|
1.72
|
|
45.87
|
|
|
35,530
|
23,825
|
|
49.13
|
|
Total
liabilites
|
|
3,441,282
|
3,451,035
|
3,837,903
|
3,517,221
|
3,041,371
|
|
(0.28)
|
|
13.15
|
|
|
3,562,320
|
2,912,799
|
|
22.30
|
|
Primis common
stockholders' equity
|
384,849
|
395,445
|
400,933
|
403,593
|
396,438
|
|
(2.68)
|
|
(2.92)
|
|
|
395,957
|
403,801
|
|
(1.94)
|
|
Noncontrolling
interest
|
7,222
|
—
|
-
|
-
|
-
|
|
100.00
|
|
100.00
|
|
|
587
|
-
|
|
100.00
|
|
Total stockholders'
equity
|
392,071
|
395,445
|
400,933
|
403,593
|
396,438
|
|
(0.85)
|
|
(1.10)
|
|
|
396,544
|
403,801
|
|
(1.80)
|
|
Total liabilities
and stockholders' equity
|
$
3,833,353
|
$
3,846,480
|
$
4,238,836
|
$
3,920,814
|
$
3,437,809
|
|
(0.34)
|
%
|
11.51
|
%
|
|
$
3,958,864
|
$
3,316,600
|
|
19.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average PPP
loans
|
|
$
2,081
|
$
2,126
|
$
2,407
|
$
3,001
|
$
5,926
|
|
(2.12)
|
%
|
(64.88)
|
%
|
|
$
2,400
|
$ 23,152
|
|
(89.63)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
842
|
$
873
|
$
700
|
$
391
|
$
349
|
|
(3.55)
|
%
|
141.26
|
%
|
|
$
2,806
|
$
705
|
|
298.01
|
%
|
Loans
|
|
|
51,220
|
47,220
|
43,620
|
41,196
|
35,841
|
|
8.47
|
|
42.91
|
|
|
183,256
|
117,033
|
|
56.58
|
|
Investment
securities
|
1,646
|
1,593
|
1,551
|
1,584
|
1,571
|
|
3.33
|
|
4.77
|
|
|
6,374
|
5,964
|
|
6.87
|
|
Other earning
assets
|
953
|
1,122
|
7,158
|
4,224
|
834
|
|
(15.06)
|
|
14.27
|
|
|
13,457
|
2,243
|
|
NM
|
|
Total
Earning Assets Income
|
54,661
|
50,808
|
53,029
|
47,395
|
38,595
|
|
7.58
|
|
41.63
|
|
|
205,893
|
125,945
|
|
63.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
DDA
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
-
|
-
|
|
-
|
|
NOW and other
interest-bearing demand accounts
|
4,334
|
4,460
|
4,343
|
2,267
|
544
|
|
(2.83)
|
|
NM
|
|
|
15,404
|
2,303
|
|
NM
|
|
Money market
accounts
|
6,129
|
6,555
|
6,231
|
4,801
|
2,894
|
|
(6.50)
|
|
111.78
|
|
|
23,717
|
6,357
|
|
273.08
|
|
Savings
accounts
|
7,860
|
6,760
|
10,405
|
4,750
|
305
|
|
16.27
|
|
NM
|
|
|
29,774
|
737
|
|
NM
|
|
Time
deposits
|
|
3,964
|
3,801
|
3,804
|
3,226
|
1,567
|
|
4.29
|
|
152.97
|
|
|
14,795
|
3,884
|
|
280.92
|
|
Total Deposit
Costs
|
22,287
|
21,576
|
24,783
|
15,044
|
5,310
|
|
3.30
|
|
NM
|
|
|
83,690
|
13,281
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
2,118
|
2,096
|
2,011
|
3,858
|
3,748
|
|
1.03
|
|
(43.49)
|
|
|
10,084
|
8,306
|
|
21.41
|
|
Total Funding
Costs
|
24,405
|
23,672
|
26,794
|
18,902
|
9,058
|
|
3.09
|
|
169.43
|
|
|
93,774
|
21,587
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
$
30,256
|
$
27,136
|
$
26,235
|
$
28,493
|
$
29,537
|
|
11.50
|
%
|
2.43
|
%
|
|
$
112,119
|
$
104,358
|
|
7.44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: SBA PPP
loan interest and fee income
|
$
5
|
$
5
|
$
6
|
$
3
|
$
14
|
|
-
|
%
|
(64.29)
|
%
|
|
$
19
|
$
533
|
|
(96.44)
|
%
|
Memo: SBA PPP
loan funding costs
|
$
2
|
$
2
|
$
2
|
$
3
|
$
5
|
|
-
|
%
|
(60.00)
|
%
|
|
$
9
|
$
81
|
|
(88.89)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
6.90 %
|
6.21 %
|
5.77 %
|
6.26 %
|
6.18 %
|
|
69
|
bps
|
72
|
bps
|
|
6.29 %
|
5.54 %
|
|
75
|
bps
|
Loans
|
|
|
6.33 %
|
5.86 %
|
5.60 %
|
5.56 %
|
5.04 %
|
|
46
|
|
129
|
|
|
5.85 %
|
4.52 %
|
|
133
|
|
Investments
|
|
2.86 %
|
2.69 %
|
2.58 %
|
2.61 %
|
2.46 %
|
|
17
|
|
40
|
|
|
2.68 %
|
2.14 %
|
|
54
|
|
Other Earning
Assets
|
4.73 %
|
4.78 %
|
5.05 %
|
4.41 %
|
3.57 %
|
|
(5)
|
|
116
|
|
|
4.79 %
|
1.12 %
|
|
367
|
|
Total Earning
Assets
|
6.08 %
|
5.63 %
|
5.34 %
|
5.24 %
|
4.80 %
|
|
44
|
|
128
|
|
|
5.57 %
|
4.09 %
|
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
|
2.20 %
|
2.19 %
|
2.11 %
|
1.27 %
|
0.35 %
|
|
1
|
|
185
|
|
|
1.96 %
|
0.33 %
|
|
163
|
|
MMDA
|
|
3.07 %
|
3.06 %
|
2.91 %
|
2.36 %
|
1.43 %
|
|
1
|
|
164
|
|
|
2.85 %
|
0.79 %
|
|
206
|
|
Savings
|
|
3.98 %
|
3.81 %
|
4.07 %
|
3.24 %
|
0.52 %
|
|
17
|
|
346
|
|
|
3.83 %
|
0.33 %
|
|
350
|
|
CDs
|
|
|
3.48 %
|
3.27 %
|
3.08 %
|
2.68 %
|
1.64 %
|
|
21
|
|
184
|
|
|
3.12 %
|
1.11 %
|
|
201
|
|
Cost of
Interest Bearing Deposits
|
3.15 %
|
3.03 %
|
3.10 %
|
2.32 %
|
1.03 %
|
|
12
|
|
212
|
|
|
2.92 %
|
0.64 %
|
|
228
|
|
Cost of
Deposits
|
2.69 %
|
2.60 %
|
2.70 %
|
1.91 %
|
0.78 %
|
|
9
|
|
191
|
|
|
2.49 %
|
0.49 %
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Funding
|
|
6.95 %
|
7.00 %
|
6.70 %
|
5.18 %
|
4.57 %
|
|
(5)
|
|
238
|
|
|
6.13 %
|
4.30 %
|
|
183
|
|
Total Cost of
Funds
|
2.85 %
|
2.75 %
|
2.83 %
|
2.20 %
|
1.19 %
|
|
9
|
|
165
|
|
|
2.66 %
|
0.75 %
|
|
191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
3.36 %
|
3.01 %
|
2.64 %
|
3.15 %
|
3.67 %
|
|
36
|
|
(31)
|
|
|
3.03 %
|
3.39 %
|
|
(35)
|
|
Net Interest
Spread
|
2.77 %
|
2.46 %
|
2.12 %
|
2.63 %
|
3.28 %
|
|
31
|
|
(51)
|
|
|
2.48 %
|
3.14 %
|
|
(66)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Excluding
SBA PPP loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
6.33 %
|
5.87 %
|
5.61 %
|
5.56 %
|
5.05 %
|
|
46
|
bps
|
128
|
bps
|
|
5.85 %
|
4.54 %
|
|
131
|
bps
|
|
Total Earning
Assets
|
6.08 %
|
5.64 %
|
5.35 %
|
5.25 %
|
4.81 %
|
|
44
|
|
127
|
|
|
5.57 %
|
4.10 %
|
|
147
|
|
|
Net Interest
Margin*
|
3.36 %
|
3.01 %
|
2.64 %
|
3.15 %
|
3.68 %
|
|
35
|
|
(32)
|
|
|
3.03 %
|
3.40 %
|
|
(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 Twelve Months
Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP items:
|
4Q
2023
|
3Q
2023
|
2Q
2023
|
1Q
2023
|
4Q
2022
|
|
4Q
2023
|
4Q
2022
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Primis' common shareholders
|
$
8,121
|
$
(3,526)
|
$
(268)
|
$
5,612
|
$
3,040
|
|
$
9,940
|
|
$
17,549
|
|
|
|
|
|
|
|
Non-GAAP adjustments to
Net Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch Consolidation /
Other restructuring
|
449
|
-
|
1,488
|
-
|
1,175
|
|
1,937
|
|
2,384
|
|
|
|
|
|
|
|
|
Professional fee
expenses related to Panacea investment
|
194
|
-
|
-
|
-
|
-
|
|
194
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of Infinex
investment
|
-
|
-
|
-
|
-
|
(4,144)
|
|
-
|
|
(4,144)
|
|
|
|
|
|
|
|
|
Merger
expenses
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
516
|
|
|
|
|
|
|
|
|
Goodwill
impairment
|
-
|
11,150
|
-
|
-
|
-
|
|
11,150
|
|
-
|
|
|
|
|
|
|
|
|
Loan officer fraud,
operational losses
|
-
|
200
|
-
|
-
|
-
|
|
200
|
|
-
|
|
|
|
|
|
|
|
|
Income tax
effect
|
(139)
|
(44)
|
(321)
|
-
|
641
|
|
(504)
|
|
269
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Primis' common shareholders adjusted for
nonrecurring income and expenses
|
$
8,625
|
$
7,780
|
$
899
|
$
5,612
|
$
712
|
|
$ 22,917
|
|
$
16,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Primis' common shareholders
|
$
8,121
|
$
(3,526)
|
$
(268)
|
$
5,612
|
$
3,040
|
|
$
9,940
|
|
$
17,549
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
418
|
1,925
|
(46)
|
1,254
|
519
|
|
3,552
|
|
4,490
|
|
|
|
|
|
|
|
|
Provision for credit
losses (incl. unfunded commitment expense)
|
3,208
|
1,355
|
4,066
|
5,418
|
7,896
|
|
14,046
|
|
11,710
|
|
|
|
|
|
|
|
Pre-tax pre-provision
earnings
|
$
11,747
|
$
(246)
|
$
3,752
|
$
12,284
|
$
11,455
|
|
$ 27,538
|
|
$
33,749
|
|
|
|
|
|
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
643
|
11,350
|
1,488
|
-
|
(2,969)
|
|
13,481
|
|
(4,286)
|
|
|
|
|
|
|
|
Pre-tax pre-provision
operating earnings
|
$
12,390
|
$
11,104
|
$
5,240
|
$
12,284
|
$
8,486
|
|
$ 41,019
|
|
$
29,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.84 %
|
(0.36 %)
|
(0.03 %)
|
0.58 %
|
0.35 %
|
|
0.25 %
|
|
0.53 %
|
|
|
|
|
|
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.05 %
|
1.17 %
|
0.11 %
|
0.00 %
|
(0.27 %)
|
|
0.33 %
|
|
(0.03 %)
|
|
|
|
|
|
|
|
Operating return on
average assets
|
0.89 %
|
0.81 %
|
0.08 %
|
0.58 %
|
0.08 %
|
|
0.58 %
|
|
0.50 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.84 %
|
(0.36 %)
|
(0.03 %)
|
0.58 %
|
0.35 %
|
|
0.25 %
|
|
0.53 %
|
|
|
|
|
|
|
|
|
Effect of tax
expense
|
0.04 %
|
0.20 %
|
(0.00 %)
|
0.13 %
|
0.06 %
|
|
0.09 %
|
|
0.14 %
|
|
|
|
|
|
|
|
|
Effect of provision for
credit losses (incl. unfunded commitment expense)
|
0.34 %
|
0.13 %
|
0.39 %
|
0.56 %
|
0.91 %
|
|
0.36 %
|
|
0.35 %
|
|
|
|
|
|
|
|
Pre-tax pre-provision
return on average assets
|
1.22 %
|
(0.03 %)
|
0.36 %
|
1.27 %
|
1.32 %
|
|
0.70 %
|
|
1.02 %
|
|
|
|
|
|
|
|
|
Effect of adjustment
for nonrecurring income and expenses and expenses
|
0.07 %
|
1.17 %
|
0.14 %
|
0.00 %
|
(0.34 %)
|
|
0.34 %
|
|
(0.13 %)
|
|
|
|
|
|
|
|
Pre-tax pre-provision
operating return on average assets
|
1.29 %
|
1.14 %
|
0.50 %
|
1.27 %
|
0.98 %
|
|
1.04 %
|
|
0.89 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common equity
|
8.37 %
|
(3.54 %)
|
(0.27 %)
|
5.64 %
|
3.04 %
|
|
2.51 %
|
|
4.35 %
|
|
|
|
|
|
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.52 %
|
11.34 %
|
1.17 %
|
0.00 %
|
(2.33 %)
|
|
3.28 %
|
|
(0.25 %)
|
|
|
|
|
|
|
|
Operating return on
average common equity
|
8.89 %
|
7.80 %
|
0.90 %
|
5.64 %
|
0.71 %
|
|
5.79 %
|
|
4.10 %
|
|
|
|
|
|
|
|
|
Effect of goodwill and
other intangible assets
|
2.93 %
|
2.89 %
|
0.33 %
|
2.05 %
|
0.27 %
|
|
2.07 %
|
|
1.49 %
|
|
|
|
|
|
|
|
Operating return on
average tangible common equity
|
11.82 %
|
10.69 %
|
1.23 %
|
7.69 %
|
0.98 %
|
|
7.86 %
|
|
5.59 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
76.04 %
|
99.97 %
|
88.42 %
|
69.26 %
|
71.82 %
|
|
83.00 %
|
|
73.50 %
|
|
|
|
|
|
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(1.64 %)
|
(30.61 %)
|
(4.31 %)
|
0.00 %
|
4.95 %
|
|
(8.96 %)
|
|
2.16 %
|
|
|
|
|
|
|
|
Operating efficiency
ratio
|
74.40 %
|
69.36 %
|
84.11 %
|
69.26 %
|
76.77 %
|
|
74.04 %
|
|
75.66 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Basic
|
$
0.33
|
$
(0.14)
|
$
(0.01)
|
$
0.23
|
$
0.12
|
|
$
0.40
|
|
$
0.71
|
|
|
|
|
|
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.02
|
0.46
|
0.05
|
-
|
(0.09)
|
|
0.53
|
|
(0.04)
|
|
|
|
|
|
|
|
Operating earnings per
common share - Basic
|
$
0.35
|
$
0.32
|
$
0.04
|
$
0.23
|
$
0.03
|
|
$
0.93
|
|
$
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share - Diluted
|
$
0.33
|
$
(0.14)
|
$
(0.01)
|
$
0.23
|
$
0.12
|
|
$
0.40
|
|
$
0.71
|
|
|
|
|
|
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.02
|
0.46
|
0.05
|
-
|
(0.09)
|
|
0.53
|
|
(0.04)
|
|
|
|
|
|
|
|
Operating earnings per
common share - Diluted
|
$
0.35
|
$
0.32
|
$
0.04
|
$
0.23
|
$
0.03
|
|
$
0.93
|
|
$
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
$
16.09
|
$
15.49
|
$
15.91
|
$
16.13
|
$
15.90
|
|
$
16.09
|
|
$ 15.90
|
|
|
|
|
|
|
|
|
Effect of goodwill and
other intangible assets
|
(3.86)
|
(3.87)
|
(4.34)
|
(4.36)
|
(4.37)
|
|
(3.86)
|
|
(4.37)
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
$
12.23
|
$
11.62
|
$
11.57
|
$
11.77
|
$
11.53
|
|
$
12.23
|
|
$ 11.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Primis common
stockholders' equity
|
$
397,330
|
$
382,487
|
$
392,795
|
$
398,064
|
$
392,365
|
|
$
397,330
|
|
$
392,365
|
|
|
|
|
|
|
|
|
Less goodwill and other
intangible assets
|
(95,417)
|
(95,741)
|
(107,215)
|
(107,539)
|
(107,863)
|
|
(95,417)
|
|
(107,863)
|
|
|
|
|
|
|
|
Tangible common
equity
|
$
301,913
|
$
286,746
|
$
285,580
|
$
290,525
|
$
284,502
|
|
$
301,913
|
|
$
284,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity to
assets
|
10.25 %
|
9.98 %
|
10.15 %
|
9.43 %
|
10.99 %
|
|
10.25 %
|
|
10.99 %
|
|
|
|
|
|
|
|
|
Effect of goodwill and
other intangible assets
|
(2.26 %)
|
(2.31 %)
|
(2.56 %)
|
(2.37 %)
|
(2.77 %)
|
|
(2.27 %)
|
|
(2.77 %)
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets
|
7.99 %
|
7.67 %
|
7.59 %
|
7.06 %
|
8.22 %
|
|
7.99 %
|
|
8.22 %
|
|
|
|
|
|
|
|
|
|
|
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Net interest
margin
|
3.36 %
|
3.01 %
|
2.64 %
|
3.15 %
|
3.67 %
|
|
3.03 %
|
|
3.39 %
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Effect of adjustments
for PPP associated balances*
|
0.00 %
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0.00 %
|
0.00 %
|
0.00 %
|
0.01 %
|
|
0.00 %
|
|
0.01 %
|
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Core net interest
margin
|
3.36 %
|
3.01 %
|
2.64 %
|
3.15 %
|
3.68 %
|
|
3.03 %
|
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3.40 %
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*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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View original content to download
multimedia:https://www.prnewswire.com/news-releases/primis-financial-corp-reports-earnings-per-share-for-the-fourth-quarter-of-2023-302045233.html
SOURCE Primis Financial Corp.