Announces Signing of a Definitive Agreement to
Acquire SeaTrust Mortgage Company
Declares Quarterly Cash Dividend of
$0.10 Per Share
MCLEAN,
Va., April 28, 2022 /PRNewswire/ -- Primis
Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), and its
wholly-owned subsidiary, Primis Bank (the "Bank"), today reported
net income of $4.6 million for the
quarter ended March 31, 2022,
compared to $7.7 million for the
quarter ended December 31, 2021.
Earnings per share ("EPS") for the three months ended
March 31, 2022 were $0.19 on a basic and diluted basis, compared to
$0.31 on a basic and diluted basis
for the three months ended December 31,
2021.
As discussed below, Primis today also announced the signing of a
definitive agreement to acquire 100% of the stock of SeaTrust
Mortgage Company ("SeaTrust"), a bank-owned mortgage company based
in Wilmington, North Carolina. Primis anticipates closing the
acquisition of SeaTrust in the second quarter of 2022, subject to
the satisfaction or waiver of certain closing conditions.
Commenting on the quarter, Dennis
Zember, Jr., President and CEO said "I am delighted with
where we finished the quarter and even more excited about the
momentum we are carrying into the rest of the year. In
addition to growth in our core bank, Panacea and Life Premium
Finance have substantial pipelines and a record level of engagement
from referral sources. Our ability to add a wholly-owned
mortgage platform into our operations for such a reasonable price
provides so much opportunity to shareholders with virtually no
downside. Lastly, our digital offerings are going live and
will be unique for consumers and small businesses nationwide."
Highlights for the three months ended March 31, 2022
- Net income from continuing operations totaled $4.6 million, or $0.19 per basic and diluted share, compared to
$7.7 million, or $0.31 per basic and diluted share in the fourth
quarter of 2021.
- Total assets at the end of the first quarter of 2022 were
$3.22 billion, a decrease of 3.3%
compared to the first quarter of 2021.
- Gross loans, excluding Paycheck Protection Program ("PPP")
balances, grew at an annualized pace of 17.6% during the first
quarter of 2022 compared to the fourth quarter of 2021. Gross
loans, excluding PPP balances, ended the quarter at $2.36 billion, compared to $2.26 billion at December
31, 2021 and $2.06 billion at
March 31, 2021.
- Total deposits were $2.69 billion
at March 31, 2022, flat compared to
March 31, 2021.
- Non-time deposits were $2.35
billion at March 31, 2022, an
increase of 4.3% compared to March
31, 2021.
- Non-interest bearing demand deposits increased to $560 million, or 20.8% of total deposits compared
to 19.0% at the end of the same quarter in 2021.
- Time deposits decreased to $339.5
million or 12.6% of total deposits at March 31, 2022 compared to $438.8 million or 16.3% at the end of the first
quarter in 2021.
- Cost of deposits declined to 0.35% for the first quarter of
2022 compared to 0.39% for the fourth quarter of 2021 and 0.60% for
the first quarter of 2021.
- Pre-tax pre-provision earnings from continuing
operations(1) and pre-tax pre-provision operating
earnings from continuing operations(1) were $6.2 million and $6.3
million, respectively, for the first quarter of 2022,
compared to $8.5 million and
$7.9 million, respectively, for the
fourth quarter of 2021.
- Provision for credit losses were $0.1
million for the first quarter of 2022 compared to recovery
of credit losses of $1.3 million for
the fourth quarter of 2021.
- Allowance for credit losses to total loans (excluding PPP
balances) was 1.24% at March 31,
2022, compared to 1.29% at December
31, 2021 and 1.70% at March 31,
2021.
- Book value per share was $16.42
and tangible book value per share(1) was $12.11 at March 31,
2022, representing a decrease of $0.34 and $0.32,
respectively, from December 31, 2021
after $0.10 in dividends paid during
the quarter.
- Joined the USDF Consortium, a membership-based association of
FDIC-insured banks, to explore the use of a bank-minted tokenized
deposit (USDF™), as an alternative blockchain-powered method of
moving value.
- Entered final testing of Primis' new digital bank
offering.
Acquisition of SeaTrust Mortgage Company
Primis announced today a definitive agreement to acquire
SeaTrust Mortgage Company from its parent company. Formed in
late 2019 by an experienced management team, SeaTrust originates
mortgages primarily in the Carolinas, Florida and Tennessee from eight offices.
Origination volumes in 2021 were approximately $255 million, including both conventional and
government mortgage loans, with estimated volumes for 2022
approaching $300 million
pre-transaction. John Owens,
President of SeaTrust, and Margaret
Kronmueller, Chief Operating Officer, will remain with the
company as Chief Executive Officer and Chief Operating Officer,
respectively, as it rebrands to Primis Mortgage and embarks on a
new growth strategy.
Dennis J. Zember, Jr., President
and Chief Executive Officer of Primis commented, "We have been
public with our desire for a wholly-owned mortgage solution at
Primis and believe SeaTrust is the ideal platform for us. The
platform is run very efficiently, already profitable at only
$250 million of annual volume and
fully licensed with FNMA and FHA. John and Margaret are
fantastic mortgage bankers with a proven track-record of growing a
profitable mortgage business and have substantial contacts in the
industry that should pave the way for a larger production
team. The entire Company is ambitious and excited about this
new partnership. Lastly, our purchase price for this platform
means substantial upside for shareholders with only a negligible
impact to tangible book value."
Primis anticipates closing this all-cash acquisition in the
second quarter of 2022. Additionally, management expects
there to be only a minimal impact to tangible book value per share
at closing and expects the business to be neutral to earnings and
ROA for the remainder of 2022 as earnings are reinvested in
recruiting and other growth-oriented systems. Management of
Primis and SeaTrust have explored several recruiting opportunities
together and are confident in the ability to quickly reach a level
of scale necessary for Primis.
Continued Mr. Zember, "We are excited to see the momentum from
the investments we made in 2021 with earning assets growth across
the organization. Panacea and Life Premium Finance started
the year strong and should begin adding to profitability this
year. Our core community bank continues to grow and become
more profitable. Primis Mortgage will contribute in the near
future and will have synergies with our other business lines.
Our digital offerings are going live and will provide the base for
us to build our future on. We joined the USDF Consortium in
the first quarter and are already pursuing use cases for this
technology. We are enthusiastic about the performance of the
bank going forward."
Lines of Business
As discussed previously, the Company's efforts to develop or
incubate new lines of business continue to produce early-stage
results. Long–term, the Bank believes these lines of business
and the outsized growth associated with them are key to delivering
higher levels of earnings per share growth.
Panacea finished the first quarter of 2022 with approximately
$81.2 million in outstanding loans,
an increase of $31.0 million, or
61.8%, from December 31, 2021.
Approximately 51% of first quarter originations were commercial
related and the remainder almost equally split between student loan
refinance and personal loans. Panacea has successfully built
a nationally-recognized brand and with a growing team of
industry-leading bankers experienced in providing financial
services to the medical, dental and veterinary communities across
the United States. The Company believes that the momentum
that the organization has built along with its brand, its partner
associations and its experienced team leads will result in
continued substantial growth.
Commenting on the momentum that Panacea is experiencing, Mr.
Tyler Stafford, CEO of the division
said, "The level of interest in our offerings and our value
proposition continues to increase. Our pipeline of loan
opportunities is well over $100
million and continues to grow. Additionally, our
application volume is growing and we expect to eclipse 1,000
applications per month by the end of 2022. We continue to
recruit experienced commercial bankers across the nation with
hyper-competitive products and services. I am confident that
we can finish the year with $200
million in loans outstanding with even more momentum that we
are experiencing right now."
The Life Premium Finance Division, launched in the fourth
quarter of 2021, ended the first quarter of 2022 with outstanding
balances, net of deferred fees, of $22.8
million, compared to $13.0
million at the end of the fourth quarter of 2021. To
date, the division's loan balances have increased to $38 million and the pipeline currently totals
approximately $60 million.
Total approved credit in the division finished the first quarter of
2022 at $127 million for future
funding of premiums over the next three to five years.
Primis will soon be one of the first banks in the U.S. to offer
a full service, full-featured checking account powered by its new
digital platform. The account's low cost of acquisition and
management allows the Bank to offer hyper-competitive terms.
The account includes free overdrafts, refund to the customer of
debit and credit interchange income on its cards, free ATM
transactions nationwide, bill pay, peer-to-peer capabilities and
delivery of almost any conceivable banking service directly to
customers' doorsteps in select markets. Speaking about the
progress, Mr. Zember commented "Our opportunity with this digital
platform is perfectly timed. As our lending strategies in the
bank and our lines of business begin to accelerate, we believe the
digital bank affords us the opportunity to fund that growth
profitably. Additionally, the Company is currently in
late-stage discussions with several FinTech's or
financially-oriented companies that currently offer single,
important services to their customers but lack the full feature
banking experience that Primis can offer. Our pitch to these
firms and their interest levels and engagement demonstrates the
opportunity with this concept, and I am determined to build
substantial value for our shareholders with this idea."
Net Interest Income
Net interest income, excluding the effect of PPP fees, was
$22.5 million in the first quarter of
2022, compared to $20.0 million in
the first quarter of 2021. Compared to the fourth quarter of
2021, net interest income increased $0.5
million despite the shorter quarter. Also excluding
the effects of PPP, the Company's net interest margin expanded to
2.96% in the first quarter of 2022 compared to 2.79% in the fourth
quarter of 2021 and 2.99% in the first quarter in 2021.
Fee income associated with PPP lending programs was $0.3 million in the first quarter of 2022, a
material decline from $4.9 million in
the first quarter of 2021.
The Company's loan growth over the past several quarters has had
a positive impact on both margins and net interest income as the
earning asset mix improves. Loans represented 75.4% of total
average earning assets in the first quarter of 2022, compared to
72.2% in the fourth quarter of 2021 and 82.1% in the first quarter
of 2021. Loan yields in the first quarter, excluding the
effect of PPP, were 4.27%, down only slightly from 4.33% in the
fourth quarter of 2021 and 4.47% in the first quarter of
2021.
Improvements in the Company's cost of funds more than offset the
small decline in loan yields. Total cost of funds in the
first quarter of 2022 was 0.52%, down from 0.78% in the first
quarter of 2021. Continued improvement in the deposit mix as
well as several tweaks to interest bearing deposit rates have
brought the organization's funding structure much closer to the
Company's peer group. Total demand deposits and total non-CD
deposits at the end of the first quarter of 2022 were 20.8% and
87.4%, compared to 19.0% and 83.7% at the end of the first quarter
of 2021.
Non-interest Income
During the three months ended March 31,
2022, Primis had non-interest income of $2.1 million, compared to $2.9 million for the three months ended
December 31, 2021. The fourth
quarter of 2021 included a gain on debt extinguishment of
$573 thousand. Adjusting for
the gain on debt extinguishment, non-interest income would have
been $2.3 million for the fourth
quarter of 2021.
Non-interest Expense
Non-interest expense was $19.0
million for the three months ended March 31, 2022, compared to $18.5 million for the three months ended
December 31, 2021. Included in
non-interest expense is unfunded commitment reserve expense of
$260 thousand in the first quarter of
2022 compared to recovery of $152
thousand in the fourth quarter of 2021. Excluding this
item, non-interest expense for the three months ended March 31, 2022 was $18.7
million, essentially flat from the three months ended
December 31, 2021. As discussed
last quarter, Primis intends to consolidate branches in 2022.
Six branches will consolidate in the second quarter of this year
with another two branches anticipated to be consolidated in the
third quarter. Approximately $1.5
million of expense reductions are expected to be realized in
2022 as a result of the branch consolidations with run-rate savings
of $3.0 million annually.
Expenses associated with lines of business amounted to
$1.6 million in the first quarter of
2022, compared to $0.4 million in the
first quarter of 2021. Panacea's expenses have grown
primarily as the division has hired commercial sales staff centered
on both lending and treasury services. Life Premium Finance
costs still center mostly on the principals the Company hired to
build the division. Primis expects additional hires in the
near future as loan pipelines, outstanding balances and agency
approvals continue to improve.
The Company's efficiency ratio and operating efficiency ratio in
the first quarter of 2022 was 76.1% and 75.6%, respectively,
compared to 66.0% and 65.3%, respectively, in the first quarter of
2021. As highlighted earlier, the first quarter of 2021
benefited from substantially higher PPP fee income. The
direct impact of the Company's lines of business contributed
approximately 4.0% to the efficiency ratio in the first quarter of
2022. Without this impact, and assuming full run-rate savings
from branch consolidations outlined above, the Company's efficiency
ratio would have been approximately 60% in the first quarter of
2022.
Loan Portfolio and Asset Quality
Loans outstanding increased to $2.39
billion at March 31, 2022,
compared to $2.34 billion at
December 31, 2021. Excluding
PPP loans, loans outstanding increased $100
million from December 31,
2021, an annualized growth rate of approximately 17.6%.
Loan growth was robust across the organization, including the
Panacea and Life Premium Finance divisions. The Company
believes loan growth will continue at mid-teens or higher rates
through the end of 2022.
Nonperforming assets, excluding portions guaranteed by the SBA,
were essentially flat at $15.1
million at March 31, 2022
compared to December 31, 2021.
Loans rated substandard or doubtful decreased $16.8 million, or 41.6%, from the fourth quarter
of 2021, primarily due to the upgrade of one relationship.
The allowance for credit losses was $29.4
million at March 31, 2022, up
$0.3 million from $29.1 million at December
31, 2021. The Company recorded a provision for credit
losses of $0.1 million compared to a
recovery of credit loss expense of $1.3
million in the fourth quarter of 2021, primarily as a result
of robust loan growth and a slightly weaker economic outlook due to
global uncertainty. As a percentage of loans, excluding PPP
balances, the allowance declined to 1.24% at the end of the first
quarter of 2022 compared to 1.29% at the end of the fourth quarter
of 2021. The Company recorded $175
thousand in net recoveries in the first quarter of 2022
compared to net recoveries of $18
thousand in the fourth quarter of 2021.
Deposits
Total deposits decreased to $2.69
billion at March 31, 2022,
compared to $2.76 billion at
December 31, 2021. The decrease
in deposits was largely driven by an approximately $103 million reduction in deposits tied to a
mortgage relationship that temporarily reduced its balances in the
first quarter and is expected to fund back up in the second
quarter. Absent the reduction in the first quarter, both
total deposits and non-time core deposits would have continued to
show strong growth in the quarter. Non-interest bearing
demand deposits now represent 20.8% of total deposits and time
deposits represent only 12.6% of total deposits at March 31, 2022.
Shareholders' Equity
Book value per share as of March 31,
2022 was $16.42, a decrease of
$0.34 since December 31, 2021. Tangible book value per
share(1) at the end of the first quarter of 2022 was
$12.11, a decrease of $0.32 since December
31, 2021. Shareholders' equity was $404 million, or 12.6% of total assets, at
March 31, 2022. Tangible common
equity(1) at March 31,
2022 was $298.1 million, or
9.57% of tangible assets(1). Equity balances
were reduced by $10.6 million from
December 31, 2021 to March 31, 2022 because of unrealized
mark-to-market adjustments on the Company's available-for-sale
securities portfolio due to dramatic increases in market interest
rates during the quarter. The Company has the wherewithal to
hold these securities until maturity or recovery of the value and
does not anticipate realizing any losses on the investments.
Additionally, the Board of Directors announced and declared a
dividend of $0.10 per share payable
on May 27, 2022 to shareholders of
record on May 13, 2022. This is
Primis' forty-second consecutive quarterly dividend.
About Primis Financial Corp.
As of March 31, 2022, Primis had
$3.22 billion in total assets,
$2.39 billion in total loans and
$2.69 billion in total deposits.
Primis Bank provides a range of financial services to individuals
and small- and medium-sized businesses through forty full-service
branches in Virginia and
Maryland and provides services to
customers through certain online and mobile applications.
Contacts:
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Address:
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Dennis J. Zember, Jr.,
President and CEO
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Primis Financial
Corp.
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Matthew A. Switzer, EVP
and CFO
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6830 Old Dominion
Drive
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Phone: (703)
893-7400
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McLean, VA
22101
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Primis Financial Corp., NASDAQ Symbol FRST
Website: www.primisbank.com
Conference Call
The Company's management will host a conference call to discuss
its first quarter results on Friday, April
29, 2022 at 10:00 a.m. (ET). A
live Webcast of the conference call is available at the following
website: https://app.webinar.net/NYLd0VB01OB. Participants
may also call 1-888-346-2613 and ask for the Primis Financial Corp.
call. A replay of the teleconference will be available
through May 6, 2022 by calling
1-877-344-7529 and providing Replay Access Code 1138528.
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 from continuing
operations adjusted for nonrecurring income and expenses;
pre-tax pre-provision operating earnings from continuing
operations; operating return on average assets from continuing
operations; pre-tax pre-provision operating return on average
assets from continuing operations; operating return on average
equity from continuing operations; operating return on average
tangible equity from continuing operations; operating efficiency
ratio from continuing operations; tangible book value per share;
tangible common equity; tangible common equity to tangible assets;
and net interest margin excluding PPP loans 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; statements regarding the effects of the ongoing
COVID-19 pandemic and related variants on our business and
financial results and conditions; and the assumptions underlying
our expectations.
Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve known and unknown risks and uncertainties which may
cause the actual results, performance or achievements of the
Company to be materially different from the future results,
performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements are based on
the information known to, and current beliefs and expectations of,
the Company's management and are subject to significant risks and
uncertainties. Actual results may differ materially from those
contemplated by such forward-looking statements. Factors that might
cause such differences include, but are not limited to: the
Company's ability to implement its various strategic and growth
initiatives, including its recently established Panacea Financial
and Life Premium Finance Divisions, new digital bank and V1BE
fulfillment service and proposed acquisition of SeaTrust;
competitive pressures among financial institutions increasing
significantly; changes in applicable laws, rules, or regulations,
including changes to statutes, regulations or regulatory policies
or practices; changes in management's plans for the future; credit
risk associated with our lending activities; changes in interest
rates, inflation, loan demand, real estate values, or competition,
as well as labor shortages and supply chain disruptions; changes in
accounting principles, policies, or guidelines; adverse results
from current or future litigation, regulatory examinations or other
legal and/or regulatory actions, including as a result of the
Company's participation in and execution of government programs
related to the COVID-19 pandemic; the ongoing impact of the
COVID-19 pandemic on the Company's assets, business, cash flows,
financial condition, liquidity, prospects and results of
operations; potential increases in the provision for credit losses;
and other general competitive, economic, political, and market
factors, including those affecting our business, operations,
pricing, products, or services.
Forward-looking statements speak only as of the date on which
such statements are made. These forward-looking statements are
based upon information presently known to the Company's management
and are inherently subjective, uncertain and subject to change due
to any number of risks and uncertainties, including, without
limitation, the risks and other factors set forth in the Company's
filings with the Securities and Exchange Commission, the Company's
Annual Report on Form 10-K for the year ended December 31, 2021, 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.
Primis Financial
Corp.
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Financial Highlights
(unaudited)
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(Dollars in
thousands, except per share data)
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For Three Months
Ended:
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Variance - 1Q 2022
vs.
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Selected Performance
Ratios:
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1Q
2022
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4Q
2021
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3Q
2021
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2Q
2021
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1Q
2021
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4Q
2021
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1Q
2021
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Return on average
assets from continuing operations
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0.55%
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0.88%
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0.72%
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1.05%
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1.06%
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(33)
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bps
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(50)
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bps
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Operating return on
average assets from continuing operations(1)
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0.57%
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0.83%
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0.72%
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1.05%
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1.08%
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(27)
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(51)
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Pre-tax pre-provision
operating return on average assets from continuing
operations(1)
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0.77%
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0.91%
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0.98%
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0.86%
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1.30%
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(15)
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(54)
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Return on average
equity from continuing operations
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4.49%
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7.37%
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6.01%
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8.81%
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8.57%
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(288)
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(408)
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Operating return on
average equity from continuing operations(1)
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4.58%
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6.94%
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6.01%
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8.81%
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8.73%
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(236)
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(415)
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Operating return on
average tangible equity from continuing
operations(1)
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6.16%
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9.36%
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8.12%
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12.03%
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12.00%
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(320)
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(584)
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Cost of
funds
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0.52%
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0.56%
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0.57%
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0.66%
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0.78%
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(4)
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(26)
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Net interest
margin
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2.96%
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3.00%
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2.87%
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2.80%
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3.41%
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(4)
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(45)
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Gross loans to
deposits
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89.11%
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84.68%
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82.46%
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83.11%
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88.95%
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4
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pts
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0
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pts
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Efficiency ratio from
continuing operations
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76.11%
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68.17%
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64.80%
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71.00%
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66.01%
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8
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1,011
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Operating efficiency
ratio from continuing operations(1)
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75.65%
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69.64%
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64.80%
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71.00%
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65.28%
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6
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1,038
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Per Share
Data:
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Earnings per share from
continuing operations - Basic
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$
0.19
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$
0.31
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$
0.25
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$
0.36
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$
0.35
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(38.71)
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%
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(46.18)
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%
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Earnings per share from
discontinued operations - Basic
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-
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-
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(0.09)
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0.06
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0.04
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-
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%
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(100.00)
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Earnings per share -
Basic
|
$
0.19
|
$
0.31
|
$
0.16
|
$
0.42
|
$
0.40
|
|
(38.71)
|
%
|
(51.94)
|
|
Earnings per share from
continuing operations - Diluted
|
$
0.19
|
$
0.31
|
$
0.25
|
$
0.36
|
$
0.34
|
|
(38.71)
|
|
(44.24)
|
|
Earnings per share from
discontinued operations - Diluted
|
-
|
-
|
(0.09)
|
0.06
|
0.04
|
|
-
|
|
(100.00)
|
|
Earnings per share -
Diluted
|
$
0.19
|
$
0.31
|
$
0.16
|
$
0.42
|
$
0.38
|
|
(38.71)
|
%
|
(50.37)
|
|
Book value per
share
|
$
16.42
|
$
16.76
|
$
16.63
|
$
16.59
|
$
16.22
|
|
(2.03)
|
|
1.22
|
|
Tangible book value per
share(1)
|
$
12.11
|
$
12.43
|
$
12.28
|
$
12.22
|
$
11.84
|
|
(2.57)
|
|
2.25
|
|
Cash dividend per
share
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
|
-
|
|
(0.21)
|
|
Weighted average shares
outstanding - Basic
|
24,503,945
|
24,476,569
|
24,474,104
|
24,450,916
|
24,349,884
|
|
0.11
|
|
0.63
|
|
Weighted average shares
outstanding - Diluted
|
24,662,588
|
24,653,363
|
24,634,384
|
24,616,824
|
24,509,052
|
|
0.04
|
|
0.63
|
|
Shares outstanding at
end of period
|
24,622,739
|
24,574,619
|
24,574,619
|
24,537,269
|
24,532,795
|
|
0.20
|
%
|
0.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
as a percent of total assets, excluding SBA guarantees
|
0.47%
|
0.44%
|
0.47%
|
0.43%
|
0.41%
|
|
3
|
bps
|
6
|
bps
|
Net charge-offs
(recoveries) as a percent of average loans (annualized)
|
(0.03%)
|
(0.00%)
|
0.34%
|
(0.10%)
|
0.01%
|
|
(3)
|
|
(4)
|
|
Allowance for credit
losses to total loans
|
1.23%
|
1.24%
|
1.31%
|
1.37%
|
1.46%
|
|
(2)
|
|
(23)
|
|
Allowance for credit
losses to total loans (excluding PPP loans)
|
1.24%
|
1.29%
|
1.40%
|
1.52%
|
1.70%
|
|
(4)
|
|
(45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity
to tangible assets(1)
|
9.57%
|
9.26%
|
9.02%
|
9.12%
|
9.01%
|
|
31
|
bps
|
56
|
bps
|
Leverage ratio
(2)
|
|
10.13%
|
9.41%
|
9.15%
|
9.38%
|
9.61%
|
|
72
|
|
52
|
|
Common equity tier 1
capital ratio (2)
|
13.99%
|
13.09%
|
13.85%
|
13.77%
|
13.64%
|
|
90
|
|
35
|
|
Tier 1 risk-based
capital ratio (2)
|
14.45%
|
13.52%
|
14.31%
|
14.23%
|
14.11%
|
|
93
|
|
34
|
|
Total risk-based
capital ratio (2)
|
19.41%
|
18.52%
|
19.60%
|
19.52%
|
19.48%
|
|
89
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Reconciliation of Non-GAAP financial
measures.
|
|
|
|
|
|
|
|
|
|
|
(2) March
31, 2022 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 - 1Q 2022
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets (unaudited)
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
2Q
2021
|
1Q
2021
|
|
4Q
2021
|
|
1Q
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
298,230
|
$
530,167
|
$
650,746
|
$
620,839
|
$
480,280
|
|
(43.75)
|
%
|
(37.90)
|
%
|
Investment
securities-available for sale
|
271,626
|
271,332
|
206,821
|
201,977
|
170,216
|
|
0.11
|
|
59.58
|
|
Investment
securities-held to maturity
|
16,138
|
22,940
|
26,412
|
28,669
|
33,180
|
|
(29.65)
|
|
(51.36)
|
|
Loans receivable, net
of deferred fees
|
2,393,669
|
2,339,986
|
2,314,584
|
2,286,355
|
2,391,529
|
|
2.29
|
|
0.09
|
|
Allowance for credit
losses
|
(29,379)
|
(29,105)
|
(30,386)
|
(31,265)
|
(34,893)
|
|
0.94
|
|
(15.80)
|
|
|
Net loans
|
|
2,364,290
|
2,310,881
|
2,284,198
|
2,255,090
|
2,356,636
|
|
2.31
|
|
0.32
|
|
Stock in Federal
Reserve Bank and Federal Home Loan Bank
|
11,927
|
15,521
|
15,521
|
15,521
|
15,521
|
|
(23.16)
|
|
(23.16)
|
|
Investments in mortgage
affiliate - held for sale
|
-
|
-
|
10,050
|
12,949
|
14,212
|
|
-
|
|
(100.00)
|
|
Bank premises and
equipment, net
|
29,872
|
30,410
|
30,686
|
30,099
|
30,076
|
|
(1.77)
|
|
(0.68)
|
|
Operating lease
right-of-use assets
|
5,305
|
5,866
|
6,331
|
6,386
|
6,947
|
|
(9.56)
|
|
(23.64)
|
|
Goodwill and other
intangible assets
|
106,075
|
106,416
|
106,757
|
107,098
|
107,439
|
|
(0.32)
|
|
(1.27)
|
|
Bank-owned life
insurance
|
67,099
|
66,724
|
66,336
|
65,949
|
65,569
|
|
0.56
|
|
2.33
|
|
Other real estate
owned
|
1,041
|
1,163
|
1,312
|
1,274
|
2,255
|
|
(10.49)
|
|
(53.84)
|
|
Deferred tax assets,
net
|
12,380
|
9,571
|
13,571
|
14,442
|
14,702
|
|
29.35
|
|
(15.79)
|
|
Other assets
|
|
35,893
|
36,362
|
33,676
|
34,858
|
33,437
|
|
(1.29)
|
|
7.35
|
|
|
Total assets
|
$ 3,219,876
|
$ 3,407,353
|
$ 3,452,417
|
$ 3,395,151
|
$ 3,330,470
|
|
(5.50)
|
%
|
(3.32)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
559,682
|
$
530,282
|
$
535,706
|
$
525,244
|
$
511,611
|
|
5.54
|
%
|
9.40
|
%
|
NOW accounts
|
|
730,235
|
849,738
|
921,667
|
912,666
|
821,746
|
|
(14.06)
|
|
(11.14)
|
|
Money market
accounts
|
831,580
|
799,759
|
758,259
|
714,759
|
713,968
|
|
3.98
|
|
16.47
|
|
Savings
accounts
|
|
225,291
|
222,862
|
216,470
|
209,441
|
202,488
|
|
1.09
|
|
11.26
|
|
Time
deposits
|
|
339,456
|
360,575
|
374,965
|
388,954
|
438,773
|
|
(5.86)
|
|
(22.64)
|
|
Total deposits
|
|
2,686,244
|
2,763,216
|
2,807,067
|
2,751,064
|
2,688,586
|
|
(2.79)
|
|
(0.09)
|
|
Securities sold under
agreements to repurchase - short term
|
11,231
|
9,962
|
13,348
|
12,521
|
16,445
|
|
12.74
|
|
(31.71)
|
|
Federal Home Loan Bank
advances
|
-
|
100,000
|
100,000
|
100,000
|
100,000
|
|
(100.0)
|
|
(100.00)
|
|
Subordinated debt and
notes
|
95,099
|
95,028
|
95,442
|
95,404
|
95,367
|
|
0.07
|
|
(0.28)
|
|
Operating lease
liabilities
|
5,897
|
6,498
|
7,000
|
7,014
|
7,629
|
|
(9.25)
|
|
(22.70)
|
|
Other
liabilities
|
|
17,210
|
20,768
|
20,931
|
22,208
|
24,457
|
|
(17.13)
|
|
(29.63)
|
|
|
Total
liabilities
|
2,815,681
|
2,995,472
|
3,043,788
|
2,988,211
|
2,932,484
|
|
(6.00)
|
|
(3.98)
|
|
Stockholders'
equity
|
404,195
|
411,881
|
408,629
|
406,940
|
397,986
|
|
(1.87)
|
|
1.56
|
|
|
Total liabilities and
stockholders' equity
|
$ 3,219,876
|
$ 3,407,353
|
$ 3,452,417
|
$ 3,395,151
|
$ 3,330,470
|
|
(5.50)
|
%
|
(3.32)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity(1)
|
$
298,120
|
$
305,465
|
$
301,872
|
$
299,842
|
$
290,547
|
|
(2.40)
|
%
|
2.61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
Variance - 1Q 2022
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Operations (unaudited)
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
2Q
2021
|
1Q
2021
|
|
4Q
2021
|
|
1Q
2021
|
|
Interest and dividend
income
|
$
26,585
|
$
28,503
|
$
27,801
|
$
26,631
|
$
30,308
|
|
(6.73)
|
%
|
(12.28)
|
%
|
Interest
expense
|
|
3,731
|
4,262
|
4,594
|
4,831
|
5,353
|
|
(12.46)
|
|
(30.30)
|
|
|
Net interest
income
|
22,854
|
24,241
|
23,207
|
21,800
|
24,955
|
|
(5.72)
|
|
(8.42)
|
|
Provision for (recovery
of) credit losses
|
99
|
(1,299)
|
1,085
|
(4,215)
|
(1,372)
|
|
(107.62)
|
|
(107.22)
|
|
|
Net interest income
after provision for (recovery of) credit losses
|
22,755
|
25,540
|
22,122
|
26,015
|
26,327
|
|
(10.90)
|
|
(13.57)
|
|
Account maintenance and
deposit service fees
|
1,351
|
1,420
|
1,509
|
1,586
|
1,664
|
|
(4.86)
|
|
(18.81)
|
|
Income from bank-owned
life insurance
|
375
|
535
|
387
|
379
|
386
|
|
(29.91)
|
|
(2.85)
|
|
Gain on debt
extinguishment
|
-
|
573
|
-
|
-
|
-
|
|
(100.00)
|
|
-
|
|
Recoveries on loans and
securities charged-off prior to acquisition
|
90
|
52
|
481
|
224
|
79
|
|
73.08
|
|
13.92
|
|
Other
|
|
|
274
|
307
|
(26)
|
229
|
220
|
|
(10.75)
|
|
24.55
|
|
|
Noninterest
income
|
2,090
|
2,887
|
2,351
|
2,418
|
2,349
|
|
(27.61)
|
|
(11.03)
|
|
Employee compensation
and benefits
|
9,625
|
9,527
|
9,032
|
8,810
|
9,372
|
|
1.03
|
|
2.70
|
|
Occupancy and equipment
expenses
|
2,557
|
2,487
|
2,523
|
2,311
|
2,355
|
|
2.81
|
|
8.58
|
|
Amortization of core
deposit intangible
|
341
|
342
|
341
|
341
|
341
|
|
(0.29)
|
|
-
|
|
Virginia franchise tax
expense
|
813
|
733
|
732
|
759
|
675
|
|
10.91
|
|
20.44
|
|
Data processing
expense
|
1,197
|
934
|
1,003
|
1,016
|
799
|
|
28.16
|
|
49.81
|
|
Telecommunication and
communication expense
|
382
|
439
|
415
|
414
|
522
|
|
(12.98)
|
|
(26.82)
|
|
Net (gain) loss on
other real estate owned
|
(59)
|
70
|
-
|
77
|
(60)
|
|
184.29
|
|
(1.67)
|
|
Professional
fees
|
|
1,387
|
1,238
|
874
|
1,091
|
1,134
|
|
12.04
|
|
22.31
|
|
Other
expenses
|
|
2,744
|
2,722
|
1,640
|
2,376
|
2,885
|
|
0.81
|
|
(4.89)
|
|
|
Noninterest
expense
|
18,987
|
18,492
|
16,560
|
17,195
|
18,023
|
|
2.68
|
|
5.35
|
|
Income from continuing
operations before income taxes
|
5,858
|
9,935
|
7,913
|
11,238
|
10,653
|
|
(41.04)
|
|
(45.01)
|
|
Income tax
expense
|
1,265
|
2,284
|
1,702
|
2,434
|
2,301
|
|
(44.61)
|
|
(45.02)
|
|
|
Income from continuing
operations
|
4,593
|
7,651
|
6,211
|
8,804
|
8,352
|
|
(39.97)
|
|
(45.01)
|
|
Income (loss) from
discontinued operations before income taxes
|
-
|
-
|
(2,899)
|
1,878
|
1,315
|
|
-
|
|
(100.00)
|
|
Income tax expense
(benefit)
|
-
|
-
|
(627)
|
407
|
284
|
|
-
|
|
(100.00)
|
|
|
Income (loss) from
discontinued operations
|
-
|
-
|
(2,272)
|
1,471
|
1,031
|
|
-
|
|
(100.00)
|
|
|
Net
income
|
$
4,593
|
$
7,651
|
$
3,939
|
$
10,275
|
$
9,383
|
|
(39.97)
|
%
|
(51.05)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Reconciliation of Non-GAAP financial
measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
As
Of:
|
|
Variance - 1Q 2022
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
Composition
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
2Q
2021
|
1Q
2021
|
|
4Q
2021
|
|
1Q
2021
|
|
Loans secured by real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
- owner occupied
|
$
406,285
|
$
389,109
|
$
421,940
|
$
417,489
|
$
421,666
|
|
4.41
|
%
|
(3.65)
|
%
|
|
Commercial real estate
- non-owner occupied
|
615,682
|
590,523
|
631,423
|
563,114
|
567,945
|
|
4.26
|
|
8.41
|
|
|
Secured by
farmland
|
8,896
|
10,003
|
10,721
|
11,861
|
12,351
|
|
(11.07)
|
|
(27.97)
|
|
|
Construction and land
development
|
116,365
|
121,520
|
109,763
|
109,719
|
104,661
|
|
(4.24)
|
|
11.18
|
|
|
Residential 1-4
family
|
575,946
|
548,830
|
531,556
|
516,475
|
515,518
|
|
4.94
|
|
11.72
|
|
|
Multi-family
residential
|
152,266
|
164,071
|
153,310
|
130,221
|
136,914
|
|
(7.20)
|
|
11.21
|
|
|
Home equity lines of
credit
|
72,440
|
73,877
|
75,775
|
80,262
|
85,160
|
|
(1.95)
|
|
(14.94)
|
|
|
Total real estate
loans
|
1,947,880
|
1,897,933
|
1,934,488
|
1,829,141
|
1,844,215
|
|
2.63
|
|
5.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans
|
|
336,961
|
303,697
|
203,243
|
194,610
|
188,050
|
|
10.95
|
|
79.19
|
|
Paycheck Protection
Program loans
|
31,404
|
77,319
|
140,465
|
234,315
|
335,210
|
|
(59.38)
|
|
(90.63)
|
|
Consumer
loans
|
|
77,424
|
61,037
|
36,388
|
28,289
|
24,054
|
|
26.85
|
|
221.88
|
|
|
Loans receivable, net
of deferred fees
|
$ 2,393,669
|
$ 2,339,986
|
$ 2,314,584
|
$ 2,286,355
|
$ 2,391,529
|
|
2.29
|
%
|
0.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by Risk
Grade:
|
|
|
|
|
|
|
|
|
|
|
Pass, not
graded
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
|
-
|
%
|
-
|
%
|
Pass Grade
1 - Highest Quality
|
786
|
641
|
789
|
1,054
|
955
|
|
22.62
|
|
(17.70)
|
|
Pass Grade
2 - Good Quality
|
8,734
|
103,496
|
153,834
|
247,664
|
348,836
|
|
(91.56)
|
|
(97.50)
|
|
Pass Grade
3 - Satisfactory Quality
|
1,413,480
|
1,327,718
|
1,248,233
|
1,142,784
|
1,110,453
|
|
6.46
|
|
27.29
|
|
Pass Grade
4 - Pass
|
895,197
|
836,610
|
841,451
|
823,866
|
853,234
|
|
7.00
|
|
4.92
|
|
Pass Grade
5 - Special Mention
|
51,884
|
31,112
|
25,008
|
29,844
|
33,661
|
|
66.77
|
|
54.14
|
|
Grade 6 -
Substandard
|
23,588
|
40,409
|
45,269
|
39,613
|
44,390
|
|
(41.63)
|
|
(46.86)
|
|
Grade 7 -
Doubtful
|
-
|
-
|
-
|
1,530
|
-
|
|
-
|
|
-
|
|
Grade 8 -
Loss
|
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
Total loans
|
|
$ 2,393,669
|
$ 2,339,986
|
$ 2,314,584
|
$ 2,286,355
|
$ 2,391,529
|
|
2.29
|
%
|
0.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
As Of or For Three
Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Information
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
2Q
2021
|
1Q
2021
|
|
|
|
|
|
Allowance for Credit
Losses:
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
(29,105)
|
$
(30,386)
|
$
(31,265)
|
$
(34,893)
|
$
(36,345)
|
|
|
|
|
|
(Provision for) /
recovery of allowance for credit losses
|
(99)
|
1,299
|
(1,085)
|
4,215
|
1,372
|
|
|
|
|
|
Net
charge-offs
|
|
(175)
|
(18)
|
1,964
|
(587)
|
80
|
|
|
|
|
|
Ending
balance
|
|
$
(29,379)
|
$
(29,105)
|
$
(30,386)
|
$
(31,265)
|
$
(34,893)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for Unfunded
Commitments:
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
(977)
|
$
(1,129)
|
$
(1,599)
|
$
(1,450)
|
$
(740)
|
|
|
|
|
|
(Expense for) /
recovery of unfunded loan commitment reserve
|
(260)
|
152
|
470
|
(149)
|
(710)
|
|
|
|
|
|
Total Reserve for
Unfunded Commitments
|
$
(1,237)
|
$
(977)
|
$
(1,129)
|
$
(1,599)
|
$
(1,450)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of:
|
|
Variance - 1Q 2022
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing
Assets:
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
2Q
2021
|
1Q
2021
|
|
4Q
2021
|
|
1Q
2021
|
|
Nonaccrual
loans
|
|
$
14,941
|
$
15,029
|
$
18,352
|
$
14,604
|
$
14,251
|
|
(0.59)
|
%
|
4.84
|
%
|
Accruing loans
delinquent 90 days or more
|
1,817
|
283
|
-
|
-
|
-
|
|
NM
|
|
-
|
|
Total non-performing
loans
|
16,758
|
15,312
|
18,352
|
14,604
|
14,251
|
|
9.44
|
|
17.59
|
|
Other real estate
owned
|
1,041
|
1,163
|
1,312
|
1,274
|
2,255
|
|
(10.49)
|
|
(53.84)
|
|
Total non-performing
assets
|
$
17,799
|
$
16,475
|
$
19,664
|
$
15,878
|
$
16,506
|
|
8.04
|
|
7.83
|
|
SBA guaranteed portion
of non-performing loans
|
$
2,651
|
$
1,388
|
$
3,361
|
$
1,380
|
$
2,960
|
|
90.99
|
|
(10.44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructuring
|
$
3,103
|
$
3,401
|
$
3,710
|
$
2,766
|
$
2,804
|
|
(8.76)
|
|
10.7
|
|
Loans deferred under
COVID-19 modifications
|
$
-
|
$
-
|
$
6,985
|
$
25,977
|
$
112,834
|
|
-
|
%
|
(100.00)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The company
defines "NM" as not meaningful for increases or decreases greater
than 300 percent.
|
|
|
|
|
|
|
|
|
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
Variance - 2Q 2021
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
2Q
2021
|
1Q
2021
|
|
4Q
2021
|
|
1Q
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of deferred
fees
|
$ 2,360,782
|
$ 2,317,260
|
$ 2,291,945
|
$ 2,327,162
|
$ 2,436,713
|
|
1.88
|
%
|
(3.12)
|
%
|
Investment
securities
|
302,431
|
258,265
|
229,906
|
215,713
|
193,364
|
|
17.10
|
|
56.41
|
|
Other earning
assets
|
466,952
|
632,841
|
689,084
|
577,939
|
339,480
|
|
(26.21)
|
|
37.55
|
|
Total earning
assets
|
3,130,165
|
3,208,366
|
3,210,935
|
3,120,814
|
2,969,557
|
|
(2.44)
|
|
5.41
|
|
Investment in STM -
Held for sale
|
—
|
9,941
|
12,621
|
12,728
|
12,629
|
|
|
|
|
|
Other assets
|
|
226,320
|
229,718
|
230,116
|
226,836
|
228,108
|
|
(1.48)
|
|
(0.78)
|
|
Total
assets
|
|
$ 3,356,485
|
$ 3,448,025
|
$ 3,453,672
|
$ 3,360,378
|
$ 3,210,294
|
|
(2.65)
|
%
|
4.55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
545,530
|
$
547,504
|
$
547,500
|
$
516,877
|
$
477,812
|
|
(0.36)
|
%
|
14.17
|
%
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
NOW and other demand
accounts
|
817,430
|
878,652
|
920,203
|
867,499
|
773,768
|
|
(6.97)
|
|
5.64
|
|
Money market
accounts
|
809,460
|
784,942
|
744,280
|
719,925
|
653,443
|
|
3.12
|
|
23.88
|
|
Savings
accounts
|
|
224,716
|
219,823
|
213,859
|
206,507
|
192,252
|
|
2.23
|
|
16.89
|
|
Time
deposits
|
|
350,368
|
368,603
|
380,233
|
409,247
|
465,945
|
|
(4.95)
|
|
(24.80)
|
|
Total
Deposits
|
|
2,747,504
|
2,799,524
|
2,806,075
|
2,720,055
|
2,563,219
|
|
(1.86)
|
|
7.19
|
|
Borrowings
|
|
171,293
|
209,215
|
208,689
|
210,505
|
218,427
|
|
(18.13)
|
|
(21.58)
|
|
Total
Funding
|
|
2,918,797
|
3,008,739
|
3,014,764
|
2,930,560
|
2,781,646
|
|
(2.99)
|
|
4.93
|
|
Other
Liabilities
|
|
23,057
|
27,407
|
28,699
|
29,013
|
33,510
|
|
(15.87)
|
|
(31.19)
|
|
Stockholders'
equity
|
414,631
|
411,879
|
410,209
|
400,805
|
395,138
|
|
0.67
|
|
4.93
|
|
Total liabilities
and stockholders' equity
|
$ 3,356,485
|
$ 3,448,025
|
$ 3,453,672
|
$ 3,360,378
|
$ 3,210,294
|
|
(2.65)
|
%
|
4.55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average PPP
loans
|
$
51,491
|
$
102,078
|
$
191,504
|
$
294,019
|
$
333,145
|
|
(49.56)
|
%
|
(84.54)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
$
24,749
|
$
26,701
|
$
26,181
|
$
25,182
|
$
28,957
|
|
(7.31)
|
%
|
(14.53)
|
%
|
Investment
securities
|
1,430
|
1,242
|
1,083
|
1,073
|
1,042
|
|
15.14
|
|
37.24
|
|
Other earning
assets
|
406
|
560
|
537
|
376
|
309
|
|
(27.50)
|
|
31.39
|
|
Total
Earning Assets
|
26,585
|
28,503
|
27,801
|
26,631
|
30,308
|
|
(6.73)
|
|
(12.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
DDA
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
NOW and other
interest-bearing demand accounts
|
666
|
832
|
1,062
|
1,022
|
1,093
|
|
(19.95)
|
|
(39.07)
|
|
Money market
accounts
|
859
|
952
|
1,056
|
1,153
|
1,085
|
|
(9.77)
|
|
(20.83)
|
|
Savings
accounts
|
|
149
|
154
|
165
|
157
|
142
|
|
(3.25)
|
|
4.93
|
|
Time
deposits
|
|
700
|
809
|
877
|
1,057
|
1,496
|
|
(13.47)
|
|
(53.21)
|
|
Total Deposit
Costs
|
2,374
|
2,747
|
3,160
|
3,389
|
3,816
|
|
(13.58)
|
|
(37.79)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
1,357
|
1,515
|
1,434
|
1,442
|
1,537
|
|
(10.43)
|
|
(11.71)
|
|
Total Funding
Costs
|
3,731
|
4,262
|
4,594
|
4,831
|
5,353
|
|
(12.46)
|
|
(30.30)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
$
22,854
|
$
24,241
|
$
23,207
|
$
21,800
|
$
24,955
|
|
(5.72)
|
%
|
(8.42)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: SBA PPP
loan interest and fee income
|
$
435
|
$
2,503
|
$
3,146
|
$
2,559
|
$
5,778
|
|
(82.62)
|
%
|
(92.47)
|
%
|
Memo: SBA PPP
loan funding costs
|
$
44
|
$
90
|
$
169
|
$
257
|
$
288
|
|
(51.11)
|
%
|
(84.72)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
4.25%
|
4.57%
|
4.53%
|
4.34%
|
4.82%
|
|
(32)
|
bps
|
(57)
|
bps
|
Investments
|
|
1.92%
|
1.91%
|
1.87%
|
2.00%
|
2.19%
|
|
1
|
|
(27)
|
|
Other Earning
Assets
|
0.35%
|
0.35%
|
0.31%
|
0.26%
|
0.37%
|
|
-
|
|
(2)
|
|
Total Earning
Assets
|
3.44%
|
3.52%
|
3.44%
|
3.42%
|
4.14%
|
|
(8)
|
|
(70)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
|
0.33%
|
0.38%
|
0.46%
|
0.47%
|
0.57%
|
|
(5)
|
|
(24)
|
|
MMDA
|
|
0.43%
|
0.48%
|
0.56%
|
0.64%
|
0.67%
|
|
(5)
|
|
(24)
|
|
Savings
|
|
0.27%
|
0.28%
|
0.31%
|
0.30%
|
0.30%
|
|
(1)
|
|
(3)
|
|
CDs
|
|
|
0.81%
|
0.87%
|
0.92%
|
1.04%
|
1.30%
|
|
(6)
|
|
(49)
|
|
Cost of
Interest Bearing Deposits
|
0.44%
|
0.48%
|
0.56%
|
0.62%
|
0.74%
|
|
(4)
|
|
(30)
|
|
Cost of
Deposits
|
0.35%
|
0.39%
|
0.45%
|
0.50%
|
0.60%
|
|
(4)
|
|
(25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Funding
|
|
3.22%
|
2.87%
|
2.73%
|
2.75%
|
2.85%
|
|
35
|
|
37
|
|
Total Cost of
Funds
|
0.52%
|
0.56%
|
0.57%
|
0.66%
|
0.78%
|
|
(4)
|
|
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
2.96%
|
3.00%
|
2.87%
|
2.80%
|
3.41%
|
|
(4)
|
|
(45)
|
|
Net Interest
Spread
|
2.81%
|
2.96%
|
2.83%
|
2.76%
|
3.36%
|
|
(15)
|
|
(55)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Excluding
SBA PPP loans
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
4.27%
|
4.33%
|
4.35%
|
4.46%
|
4.47%
|
|
(6)
|
bps
|
(20)
|
bps
|
|
Total Earning
Assets
|
3.44%
|
3.32%
|
3.24%
|
3.42%
|
3.77%
|
|
12
|
|
(33)
|
|
|
Net Interest
Margin*
|
2.96%
|
2.79%
|
2.66%
|
2.77%
|
2.99%
|
|
17
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Net interest margin
excluding the effect of SBA PPP loans assumes a funding cost of
35bps on average PPP balances in all applicable
periods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
For Three Months
Ended:
|
|
For Three Months
Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP items:
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
2Q
2021
|
1Q
2021
|
|
1Q
2022
|
1Q
2021
|
|
Net income from
continuing operations
|
$
4,593
|
$
7,651
|
$
6,211
|
$
8,804
|
$
8,352
|
|
$
4,593
|
|
$
8,352
|
|
Non-GAAP adjustments to
Net Income from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
Management Restructure
/ Recruiting
|
-
|
-
|
-
|
-
|
200
|
|
-
|
|
200
|
|
|
Merger
expenses
|
115
|
-
|
-
|
-
|
-
|
|
115
|
|
-
|
|
|
(Gain) on debt
extinguishment
|
-
|
(573)
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
Income tax
effect
|
(25)
|
124
|
-
|
-
|
(43)
|
|
(25)
|
|
(43)
|
|
|
Net Income from
continuing operations adjusted for nonrecurring income and
expenses
|
$
4,683
|
$
7,202
|
$
6,211
|
$
8,804
|
$
8,509
|
|
$
4,683
|
|
$
8,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
4,593
|
$
7,651
|
$
6,211
|
$
8,804
|
$
8,352
|
|
$
4,593
|
|
$
8,352
|
|
|
Income tax
expense
|
1,265
|
2,284
|
1,702
|
2,434
|
2,301
|
|
1,265
|
|
2,301
|
|
|
Provision for credit
losses (incl. unfunded commitment expense)
|
359
|
(1,451)
|
615
|
(4,066)
|
(661)
|
|
359
|
|
(661)
|
|
Pre-tax pre-provision
earnings from continuing operations
|
$
6,217
|
$
8,484
|
$
8,528
|
$
7,172
|
$
9,992
|
|
$
6,217
|
|
$
9,992
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
115
|
(573)
|
-
|
-
|
200
|
|
115
|
|
200
|
|
Pre-tax pre-provision
operating earnings from continuing operations
|
$
6,332
|
$
7,911
|
$
8,528
|
$
7,172
|
$
10,192
|
|
$
6,332
|
|
$
10,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets from continuing operations
|
0.55%
|
0.88%
|
0.72%
|
1.05%
|
1.06%
|
|
0.55%
|
|
1.06%
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.01%
|
(0.05%)
|
0.00%
|
0.00%
|
0.02%
|
|
0.01%
|
|
0.02%
|
|
Operating return on
average assets from continuing operations
|
0.57%
|
0.83%
|
0.72%
|
1.05%
|
1.08%
|
|
0.57%
|
|
1.08%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets from continuing operations
|
0.55%
|
0.88%
|
0.72%
|
1.05%
|
1.06%
|
|
0.55%
|
|
1.06%
|
|
|
Effect of tax
expense
|
0.15%
|
0.26%
|
0.20%
|
0.29%
|
0.29%
|
|
0.15%
|
|
0.29%
|
|
|
Effect of provision for
credit losses
|
0.04%
|
(0.17%)
|
0.07%
|
(0.49%)
|
(0.08%)
|
|
0.04%
|
|
(0.08%)
|
|
Pre-tax pre-provision
return on average assets from continuing operations
|
0.75%
|
0.98%
|
0.98%
|
0.86%
|
1.27%
|
|
0.75%
|
|
1.27%
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.01%
|
(0.07%)
|
0.00%
|
0.00%
|
0.03%
|
|
0.01%
|
|
0.03%
|
|
Pre-tax pre-provision
operating return on average assets from continuing
operations
|
0.77%
|
0.91%
|
0.98%
|
0.86%
|
1.30%
|
|
0.77%
|
|
1.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity from continuing operations
|
4.49%
|
7.37%
|
6.01%
|
8.81%
|
8.57%
|
|
4.49%
|
|
8.57%
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.09%
|
(0.43%)
|
0.00%
|
0.00%
|
0.16%
|
|
0.09%
|
|
0.16%
|
|
Operating return on
average equity from continuing operations
|
4.58%
|
6.94%
|
6.01%
|
8.81%
|
8.73%
|
|
4.58%
|
|
8.73%
|
|
|
Effect of goodwill and
other intangible assets
|
1.58%
|
2.42%
|
2.12%
|
3.22%
|
3.26%
|
|
1.58%
|
|
3.27%
|
|
Operating return on
average tangible equity from continuing operations
|
6.16%
|
9.36%
|
8.12%
|
12.03%
|
12.00%
|
|
6.16%
|
|
12.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio from
continuing operations
|
76.11%
|
68.17%
|
64.80%
|
71.00%
|
66.01%
|
|
76.11%
|
|
66.01%
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(0.46%)
|
1.47%
|
0.00%
|
0.00%
|
(0.73%)
|
|
(0.46%)
|
|
(0.73%)
|
|
Operating efficiency
ratio from continuing operations
|
75.65%
|
69.64%
|
64.80%
|
71.00%
|
65.28%
|
|
75.65%
|
|
65.28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
continuing operations - Basic
|
$
0.19
|
$
0.31
|
$
0.25
|
$
0.36
|
$
0.35
|
|
$
0.19
|
|
$
0.35
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.00
|
(0.02)
|
0.00
|
0.00
|
(0.00)
|
|
0.00
|
|
(0.00)
|
|
Operating earnings per
share from continuing operations - Basic
|
$
0.19
|
$
0.29
|
$
0.25
|
$
0.36
|
$
0.35
|
|
$
0.19
|
|
$
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
continuing operations - Diluted
|
$
0.19
|
$
0.31
|
$
0.25
|
$
0.36
|
$
0.34
|
|
$
0.19
|
|
$
0.34
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(0.00)
|
(0.02)
|
0.00
|
0.00
|
0.01
|
|
(0.00)
|
|
0.01
|
|
Operating earnings per
share from continuing operations - Diluted
|
$
0.19
|
$
0.29
|
$
0.25
|
$
0.36
|
$
0.35
|
|
$
0.19
|
|
$
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
16.42
|
$
16.76
|
$
16.63
|
$
16.59
|
$
16.22
|
|
$
16.42
|
|
$
16.22
|
|
|
Effect of goodwill and
other intangible assets
|
(4.31)
|
(4.34)
|
(4.35)
|
(4.37)
|
(4.38)
|
|
(4.31)
|
|
(4.38)
|
|
Tangible book value per
share
|
$
12.11
|
$
12.43
|
$
12.28
|
$
12.22
|
$
11.84
|
|
$
12.11
|
|
$
11.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
$
404,195
|
$
411,881
|
$
408,629
|
$
406,940
|
$
397,986
|
|
$
404,195
|
|
$
397,986
|
|
|
Less goodwill and other
intangible assets
|
(106,075)
|
(106,416)
|
(106,757)
|
(107,098)
|
(107,439)
|
|
(106,075)
|
|
(107,439)
|
|
Tangible common
equity
|
$
298,120
|
$
305,465
|
$
301,872
|
$
299,842
|
$
290,547
|
|
$
298,120
|
|
$
290,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
12.55%
|
12.10%
|
11.84%
|
11.99%
|
11.95%
|
|
12.55%
|
|
11.95%
|
|
|
Effect of goodwill and
other intangible assets
|
(2.98%)
|
(2.84%)
|
(2.81%)
|
(2.87%)
|
(2.94%)
|
|
(2.98%)
|
|
(2.94%)
|
|
Tangible common equity
to tangible assets
|
9.57%
|
9.26%
|
9.02%
|
9.12%
|
9.01%
|
|
9.57%
|
|
9.01%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
2.96%
|
3.00%
|
2.87%
|
2.80%
|
3.41%
|
|
2.96%
|
|
3.41%
|
|
|
Effect of adjustment
for PPP associated balances*
|
(0.00%)
|
(0.21%)
|
(0.21%)
|
(0.03%)
|
(0.42%)
|
|
(0.00%)
|
|
(0.42%)
|
|
Net interest margin
excluding PPP
|
2.96%
|
2.79%
|
2.66%
|
2.77%
|
2.99%
|
|
2.96%
|
|
2.99%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Net interest margin
excluding the effect of PPP loans assumes a funding cost of 35bps
on average PPP balances in all applicable periods
|
|
|
|
|
|
|
|
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SOURCE Primis Financial Corp.