Adoption of Stock Repurchase Program
Declares Quarterly Cash Dividend of $0.10 Per Share
MCLEAN,
Va., Oct. 27,
2022 /PRNewswire/ -- Primis Financial Corp. (NASDAQ: FRST)
("Primis" or the "Company"), and its wholly-owned subsidiary,
Primis Bank (the "Bank"), today reported net income from continuing
operations of $5.1 million for the
quarter ended September 30, 2022,
compared to $5.0 million for the
quarter ended June 30, 2022 and
$6.2 million for the quarter ended
September 30, 2021. Earnings
per share ("EPS") from continuing operations for the three months
ended September 30, 2022 were
$0.21 on a basic and $0.20 on diluted basis, compared to $0.20 on a basic and diluted basis for the three
months ended June 30, 2022.
![(PRNewsfoto/Primis Financial Corporation) (PRNewsfoto/Primis Financial Corporation)](https://mma.prnewswire.com/media/1930728/SB_0111_Primis_Financial_Corporation_logo.jpg)
Net income from continuing operations adjusted for nonrecurring
income and expenses(1) was $5.3
million for the three months ended September 30, 2022 versus $6.0 million for the three months ended
June 30, 2022. Operating earnings per
share from continuing operations(1) adjusted for branch
closure expenses were $0.22 on a
basic and $0.21 on a diluted basis
for the three months ended September 30,
2022, compared to $0.25 on a
basic and $0.24 on a diluted basis
for the three months ended June 30,
2022.
Net income from continuing operations for the nine months ended
September 30, 2022 was $14.7 million, compared to $23.4 million for the nine months ended
September 30, 2021. Earnings per
share from continuing operations for the nine months ended
September 30, 2022 were $0.60 on a basic and $0.59 on a diluted basis, compared to
$0.96 basic and $0.95 diluted for the nine months ended
September 30, 2021.
Financial Highlights for the
Period Ended September 30,
2022
- Pre-tax pre-provision return on average assets from continuing
operations(1) was 1.16% for the three months ended
September 30, 2022, versus 0.83% for
the three months ended June 30,
2022.
- Pre-tax pre-provision operating return on average assets from
continuing operations(1) was 1.20% for the three months
ended September 30, 2022, up from
1.00% for the three months ended June 30,
2022. Excluding the loss in the mortgage group related to
acquiring two substantial teams, this ratio would have been 1.30%
for the third quarter, representing a material increase in core
profitability.
- Total deposits grew an annualized 3.8% compared to the
linked-quarter illustrating successful strategies that can outrun
the industry's tightening liquidity position.
- Deposit mix continued to improve with non-interest bearing
checking deposits of $687.3 million,
representing 25.4% of total deposits at September 30, 2022, compared to 19.1% at
September 30, 2021.
- Total revenue of $33.0 million in
the current quarter of 2022, up 29.4% from the same period in
2021.
- Tangible common equity to tangible assets and leverage ratio of
8.73% and 9.96%, respectively, are 114 basis points and 15 basis
points higher than peers(2), respectively, at
September 30, 2022.
- Loans held for investment grew at an annualized rate of 22.6%
for the nine months of 2022 or 27.5% net of a decline in Paycheck
Protection Program ("PPP") loan balances. Loans held for
investment grew at an annualized rate of 18.0% compared to the
linked-quarter net of a decline in PPP balances.
- Net interest margin of 3.57% in the third quarter of 2022 was
up substantially from 2.87% in the same period last year and up 24
basis points from 3.33% in the second quarter of 2022.
- Margin improvements driven by industry low deposit beta of 4%
through the cycle.
- Positive move in loan yields to 4.51%, excluding PPP, in the
third quarter of 2022, compared to 4.35% in the same quarter of
2021.
- Allowance for credit losses to total loans was 1.17% at
September 30, 2022, compared to 1.15%
at June 30, 2022. Allowance for
credit losses to total loans (excluding PPP balances and loans held
for sale) was 1.17% at September 30,
2022, compared to 1.16% at June
30, 2022.
Operating Performance
The Company reported strong earning asset growth rates and a
robust net interest margin for the third quarter of 2022. Speaking
about the Company's performance, Mr. Zember, President and CEO of
the Company, said, "We made significant headway on several
strategies this quarter that is very encouraging. First, our
margin benefitted from an industry low deposit beta and a nice move
in earning asset yields. Secondly, we capitalized on the
chaos in the national mortgage scene and recruited two teams with
annual production of approximately $700
million. And lastly, we introduced the digital bank
into our existing markets, combining it with our unique V1BE
delivery service and an interchange cash back feature that averages
about 5% of the account balance. The functionality and
innovative features position us very favorably in the industry
where liquidity is becoming a real limiter in growth and
profitability."
The Company's operating return on average assets from continuing
operations(1) for the quarter was 0.64%, compared to
0.72% for the same period in 2021. Mr. Zember commented on
the Company's progress with operating ratios and said, "I believe
our pathway to higher operating returns is right around the
corner. Our mortgage results center on signing bonuses
for two substantial teams. I know the payback is very
fast on these investments, and we will combine that with full run
rates on staff reductions and restructures, branch closings,
renegotiation of our core system contract and more normal levels of
fraud expenses. With our trends and momentum on revenue,
these expense containment strategies will produce the higher
returns that we expect in the coming quarters."
Net Interest Income
Net interest income increased 18.3% to $27.5 million for the three months ended
September 30, 2022 from $23.2 million for the three months ended
September 30, 2021. The
Company's reported net interest margin for the third quarter of
2022 was 3.57%, compared to 2.87% in the third quarter of 2021.
Net interest income, excluding the effect of PPP fees, was
$27.4 million in the third quarter of
2022, compared to $20.0 million in
the third quarter of 2021, an increase of $7.4 million, or 36.7%. Also excluding the
effects of PPP, the Company's net interest margin expanded to 3.58%
in the third quarter of 2022, compared to 2.66% in the same quarter
of 2021.
The Company's loan growth over the past several quarters and the
improved asset mix has been the driver of positive movements in
both margins and net interest income. Loans held for
investment represented 87.5% of total average interest earning
assets in the third quarter of 2022, compared to 71.4% in the same
quarter of 2021. Yield on loans for the third quarter of 2022
was 4.50%, compared to 4.53% in the third quarter of 2021.
Loan yields in the third quarter, excluding the effect of PPP, were
4.51%, up 16 basis points from 4.35% in the same quarter of
2021.
Total cost of funds in the third quarter of 2022 was 0.71%, up
from 0.60% in the same quarter of 2021. Total demand deposits
and total non-time deposits at the end of the third quarter of 2022
were 25.4% and 86.6%, respectively, compared 19.1% and 86.6%,
respectively, in the third quarter of 2021.
Non-interest Income
During the three months ended September
30, 2022, Primis had non-interest income of $5.6 million, compared to $2.6 million for the three months ended
June 30, 2022, with a large driver of
the increase due to revenues from Primis Mortgage. The
Company closed $63.0 million in loans
in the quarter with gain on sale revenue of $2.2 million versus $0.6 in the second quarter which included only
one month of mortgage operations.
Non-interest Expense
Non-interest expense was $23.8
million for the third quarter of 2022, compared to
$20.4 million in the second quarter
of 2022 and $16.6 million for the
third quarter of 2021. The non-interest expense adjusted for branch
closure costs and unfunded commitment reserve impacts were
$23.1 million for the third quarter
of 2022, $19.3 million for the second
quarter of 2022 and $17.0 million for
third quarter of 2021. A significant driver of the increased
non-interest expenses were $2.4
million of higher expenses related to Primis Mortgage versus
the second quarter of 2022. Other notable drivers of the increase
include reduction in deferred costs in the quarter due to lower
commercial loan volumes, increase in marketing and advertising tied
to the digital bank launch and V1BE adoption campaigns, increase in
legal fees for initiatives and increase in fraud related
expenses.
The Company's operating efficiency ratio from continuing
operations(1) in the third quarter of 2022 was 70.9%
compared to 70.2% in the second quarter of 2022. The
Bank consolidated two branch locations in the third quarter of
2022. Additionally, management successfully
renegotiated the Bank's core processing contract in the third
quarter and expects savings of approximately $0.5 million quarterly beginning in the fourth
quarter of 2022. Combined with operating performance
improvements at the Company's lines of business and other
efficiency improvements, management believes the operating
efficiency ratio should moderate to below 65% by year end.
Loan Portfolio and Asset
Quality
Loans held for investment increased to $2.74 billion at September
30, 2022, compared to $2.34
billion at December 31,
2021. Loans held for investment grew at an annualized rate of
22.6% for the nine months of 2022 or 27.5%, net of a decline in PPP
balances. The Company believes loan growth will continue
at a similar pace for the rest of the year.
Nonperforming assets, excluding portions guaranteed by the SBA,
were $37.2 million at September 30, 2022 compared to $19.9 million at June 30,
2022, while loans rated substandard or doubtful increased to
$47.3 million in the third quarter of
2022 from $27.1 million at the end of
the second quarter of 2022. These increases were driven
largely by one relationship that was criticized in the second
quarter and was subsequently downgraded further in the third
quarter and placed on nonaccrual. The primary businesses in
the relationship are multiple assisted living
facilities. Recent appraisals have been completed with
no impairment required at this time.
The allowance for credit losses was $32.0
million at September 30, 2022,
up $1.8 million from $30.2 million at June
30, 2022. The Company recorded a provision for credit
losses of $2.9 million compared to
$0.4 million in the second quarter of
2022. The increase in provision from the second quarter was
due to loan growth in the quarter of approximately $0.8 million, weakness in the economic forecasts
used to model expected losses of approximately $1.7 million and a net addition to specific
reserves for a nonaccrual loan that required impairment of
approximately $0.4 million. As
a percentage of loans, excluding PPP balances, the allowance
increased marginally to 1.17% at the end of the third quarter of
2022, compared to 1.16% at the end of the second quarter of
2022. The Company recorded $1.1 million in net charge-offs in the third
quarter of 2022 compared to net recoveries of $0.4 million in the second quarter of 2022.
Net charge-offs in the third quarter were primarily tied to one
relationship that was resolved in the quarter and for which
specific reserves had been established in previous periods.
Deposits
Total deposits increased to $2.71
billion at September 30, 2022
from $2.68 billion at June 30, 2022 and decreased compared to
$2.76 billion at December 31, 2021. Non-interest bearing
demand deposits now represent 25.4% of total deposits and time
deposits represent only 13.4% of total deposits at September 30, 2022. Non-interest bearing
balances increased 5.2% compared to the linked-quarter to
$687.3 million. Time deposits
increased 10.3% compared to the linked-quarter to $363.0 million as the Bank extended funding
maturities in the face of rising rates. While newly launched,
the Bank's new digital banking offering is expected to be a key
contributor to funding in the near future.
Lines of Business
The table below highlights revenue and expenses directly
attributable to the Company's various business lines. Net
interest income in the table below also includes an assumed cost of
funds given to each business line for illustrative purposes, with
offsetting benefit to net interest income included in the bank
column. The bank column includes all activities not captured
in the business lines, including parent company activities.
(Dollars in
thousands)
|
Bank
|
|
Panacea
|
|
LPF
|
|
Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Operations (unaudited)
|
Q3
'22
|
Q2
'22
|
Chg
|
Q3
'22
|
Q2
'22
|
Chg
|
Q3
'22
|
Q2
'22
|
Chg
|
Q3
'22
|
Q2
'22
|
Chg
|
Net Interest Income
*
|
$
25,284
|
$
23,341
|
8.3 %
|
$
1,465
|
$
905
|
61.9 %
|
$
530
|
$
294
|
80.0 %
|
$
171
|
$
65
|
N/A
|
Noninterest
Income
|
3,415
|
2,029
|
68.3 %
|
2
|
2
|
(24.1) %
|
5
|
5
|
0.0 %
|
2,197
|
593
|
N/A
|
Operating Noninterest
Expense (excl. res. for unfunded)
|
18,655
|
17,774
|
5.0 %
|
1,242
|
799
|
55.4 %
|
70
|
(37)
|
N/A
|
3,175
|
759
|
N/A
|
Pre-Tax Pre-Provision
Net Income(1)
|
10,044
|
7,596
|
32.2 %
|
225
|
108
|
108.1 %
|
466
|
337
|
38.3 %
|
(806)
|
(102)
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Loans (inc.
HFS)
|
$
2,406,168
|
$
2,386,452
|
0.8 %
|
$ 201,887
|
$ 142,670
|
41.5 %
|
$ 129,031
|
$
99,675
|
29.5 %
|
$
13,388
|
$
16,096
|
N/A
|
Total
Deposits
|
2,687,747
|
2,669,309
|
0.7 %
|
13,595
|
10,778
|
26.1 %
|
6,977
|
2,717
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Net interest
income assumes business line funding requirements are provided by
the Company at its cost of funds plus 100 basis
points.
|
Panacea continues to expand its nationally-recognized brand and
now has 14 national and state association partnerships. The
division has banking relationships with approximately 2,600 doctor
households across all 50 states. Panacea finished the third quarter
of 2022 with approximately $201.9
million in outstanding loans, an increase of $59.2 million, or 41.5%, from June 30, 2022. At the end of the third quarter,
Panacea's loan portfolio was 50% commercial, 26% consumer and 24%
student loan refinance. As highlighted above, Panacea
increased its profitability in 3Q22 on a funded basis by 108% from
second quarter levels and expects significant continued
improvements in the fourth quarter and throughout 2023.
The Company's strategy with Panacea centers heavily on making it
a very effective deposit player with its target customers
consisting of medical professionals. In 2023, the Company
will transition the medical fintech onto its digital platform and
offer these professionals a digital deposit opportunity that should
be more progressive and effective.
The Life Premium Finance ("LPF") division, launched in late
2021, ended the third quarter of 2022 with outstanding balances,
net of deferred fees, of $129.0
million, compared to $99.7
million at the end of the second quarter of 2022. The
Life Premium Finance division is already showing a healthy level of
profitability (including assumed cost of funds) with a loan
portfolio that is predominantly variable rate based (one year
renewals) and cash secured.
As previously discussed, the Company took advantage of market
disruption to expand Primis Mortgage with high quality producers in
order to build production capacity for 2023. As a result,
Primis Mortgage reduced return on assets by approximately 7 bps in
the third quarter with expectations for meaningful contributions to
profitability next year.
Shareholders' Equity
Book value per share as of September 30,
2022 was $15.89, a decrease of
$0.28 since June 30, 2022. Tangible book value per
share(1) at the end of the third quarter of 2022 was
$11.54, a decrease of $0.23 since June
30, 2022. Shareholders' equity was $391.8 million, or 11.7% of total assets, at
September 30, 2022. Tangible
common equity(1) at September 30,
2022 was $283.7 million, or
8.73% of tangible assets(1). Equity balances
decreased from June 30, 2022 to
September 30, 2022 because of an
additional $9.5 million of unrealized
losses on the Company's available-for-sale securities portfolio due
to continued 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 November 28, 2022 to shareholders
of record on November 14, 2022.
This is Primis' forty-fourth consecutive quarterly
dividend.
Subsequent Event
On October 3, 2022, Infinex
Financial Services was acquired by Advisor Group for a mix of cash
and contingent consideration. Primis was an investor in
Infinex through an investment in a predecessor company. As a
result of the acquisition, Primis expects to record a pre-tax gain
of $4.1 million in the fourth quarter
of 2022.
Adoption of Stock Repurchase
Program
On October 27, 2022, the Board of
Directors of the Company authorized a stock repurchase program,
under which the Company may repurchase up to 739,500 shares of its
common stock, or approximately 3% of its outstanding shares, over a
one year period. Repurchases under this program may be made from
time to time through open market purchases, privately negotiated
transactions or such other manners as will comply with applicable
laws and regulations. The timing and actual number of shares
repurchased will depend on a variety of factors including price,
corporate and regulatory requirements, market conditions and other
corporate liquidity requirements and priorities. The stock
repurchase program does not obligate the Company to purchase any
particular number of shares and there is no guarantee as to the
exact number of shares that will be repurchased by the Company. The
stock repurchase program may be suspended, modified or terminated
by the Company at any time and for any reason, without prior
notice.
About Primis Financial
Corp.
As of September 30, 2022, Primis
had $3.36 billion in total assets,
$2.74 billion in total loans and
$2.71 billion in total deposits.
Primis Bank provides a range of financial services to individuals
and small- and medium-sized businesses through thirty-two
full-service branches in Virginia
and Maryland and provides services
to customers through certain online and mobile applications.
Contacts:
|
Address:
|
Dennis J. Zember, Jr.,
President and CEO
|
Primis Financial
Corp.
|
Matthew A. Switzer, EVP
and CFO
|
6830 Old Dominion
Drive
|
Phone: (703)
893-7400
|
McLean, VA
22101
|
|
|
Primis Financial Corp.,
NASDAQ Symbol FRST
|
|
Website:
www.primisbank.com
|
|
Conference Call
The Company's management will host a conference call to discuss
its third quarter results on Friday, October
28, 2022 at 10:00 a.m. (ET). A
live Webcast of the conference call is available at the following
website: https://events.q4inc.com/attendee/554050747.
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 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; operating earnings per share from
continuing operations – basic; operating earnings per share from
continuing operations – diluted; 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.
(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.
|
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 recent acquisition of SeaTrust Mortgage
Company; competitive pressures among financial institutions
increasing significantly; changes in applicable laws, rules, or
regulations, including changes to statutes, regulations or
regulatory policies or practices; changes in management's plans for
the future; credit risk associated with our lending activities;
changes in interest rates, inflation, loan demand, real estate
values, or competition, as well as labor shortages and supply chain
disruptions; changes in accounting principles, policies, or
guidelines; adverse results from current or future litigation,
regulatory examinations or other legal and/or regulatory actions,
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.
|
Financial Highlights
(unaudited)
|
(Dollars in
thousands, except per share data)
|
For Three Months
Ended:
|
|
Variance - 3Q 2022
vs.
|
|
|
For Nine Months
Ended:
|
|
Variance
|
|
|
Selected Performance
Ratios:
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
|
2Q
2022
|
|
3Q
2021
|
|
|
3Q
2022
|
3Q
2021
|
|
YTD
|
|
Return on average
assets from continuing operations
|
0.61 %
|
0.63 %
|
0.55 %
|
0.88 %
|
0.72 %
|
|
(2)
|
bps
|
(11)
|
bps
|
|
0.60 %
|
0.94 %
|
|
(34)
|
bps
|
Operating return on
average assets from continuing operations(1)
|
0.64 %
|
0.76 %
|
0.57 %
|
0.83 %
|
0.72 %
|
|
(12)
|
|
(8)
|
|
|
0.65 %
|
0.94 %
|
|
(29)
|
|
Pre-tax pre-provision
return on average assets from continuing
operations(1)
|
1.16 %
|
0.83 %
|
0.75 %
|
0.98 %
|
0.98 %
|
|
33
|
|
18
|
|
|
0.91 %
|
1.03 %
|
|
(12)
|
|
Pre-tax pre-provision
operating return on average assets from continuing
operations(1)
|
1.20 %
|
1.00 %
|
0.77 %
|
0.91 %
|
0.98 %
|
|
20
|
|
22
|
|
|
0.98 %
|
1.04 %
|
|
(6)
|
|
Return on average
equity from continuing operations
|
4.98 %
|
4.92 %
|
4.49 %
|
7.37 %
|
6.01 %
|
|
6
|
|
(102)
|
|
|
4.80 %
|
7.77 %
|
|
(297)
|
|
Operating return on
average equity from continuing operations(1)
|
5.22 %
|
5.93 %
|
4.58 %
|
6.94 %
|
6.01 %
|
|
(71)
|
|
(79)
|
|
|
5.24 %
|
7.82 %
|
|
(258)
|
|
Operating return on
average tangible equity from continuing
operations(1)
|
7.14 %
|
8.08 %
|
6.16 %
|
9.36 %
|
8.12 %
|
|
(93)
|
|
(98)
|
|
|
7.11 %
|
10.67 %
|
|
(356)
|
|
Cost of
funds
|
|
0.71 %
|
0.53 %
|
0.52 %
|
0.56 %
|
0.57 %
|
|
18
|
|
14
|
|
|
0.59 %
|
0.68 %
|
|
(9)
|
|
Net interest
margin
|
3.57 %
|
3.33 %
|
2.96 %
|
3.00 %
|
2.87 %
|
|
24
|
|
70
|
|
|
3.29 %
|
3.02 %
|
|
27
|
|
Gross loans to
deposits
|
101.06 %
|
97.99 %
|
89.11 %
|
84.68 %
|
82.46 %
|
|
3
|
pts
|
19
|
pts
|
|
101.06 %
|
82.46 %
|
|
19
|
pts
|
Efficiency ratio from
continuing operations
|
71.85 %
|
75.01 %
|
76.11 %
|
68.16 %
|
64.80 %
|
|
(3)
|
|
706
|
|
|
74.11 %
|
67.18 %
|
|
693
|
|
Operating efficiency
ratio from continuing operations(1)
|
70.92 %
|
70.23 %
|
75.65 %
|
69.63 %
|
64.80 %
|
|
1
|
|
612
|
|
|
72.09 %
|
66.92 %
|
|
517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
continuing operations - Basic
|
$
0.21
|
$
0.20
|
$
0.19
|
$
0.31
|
$
0.25
|
|
5.00
|
%
|
(16.00)
|
%
|
|
$
0.60
|
$
0.96
|
|
(37.50)
|
%
|
Earnings per share from
discontinued operations - Basic
|
-
|
-
|
-
|
-
|
(0.09)
|
|
-
|
|
(100.00)
|
|
|
$
-
|
$
0.01
|
|
(100.00)
|
|
Earnings per share -
Basic
|
$
0.21
|
$
0.20
|
$
0.19
|
$
0.31
|
$
0.16
|
|
5.00
|
|
31.25
|
|
|
$
0.60
|
$
0.97
|
|
(38.14)
|
|
Operating earnings per
share from continuing operations - Basic(1)
|
$
0.22
|
$
0.25
|
$
0.19
|
$
0.29
|
$
0.25
|
|
-
|
|
-
|
|
|
$
0.65
|
$
0.96
|
|
-
|
|
Earnings per share from
continuing operations - Diluted
|
$
0.20
|
$
0.20
|
$
0.19
|
$
0.31
|
$
0.25
|
|
-
|
|
(20.00)
|
|
|
$
0.59
|
$
0.95
|
|
(37.89)
|
|
Earnings per share from
discontinued operations - Diluted
|
-
|
-
|
-
|
-
|
(0.09)
|
|
-
|
|
(100.00)
|
|
|
-
|
0.01
|
|
(100.00)
|
|
Earnings per share -
Diluted
|
$
0.20
|
$
0.20
|
$
0.19
|
$
0.31
|
$
0.16
|
|
-
|
|
25.00
|
|
|
$
0.59
|
$
0.96
|
|
(38.54)
|
|
Operating earnings per
share from continuing operations - Diluted(1)
|
$
0.21
|
$
0.24
|
$
0.19
|
$
0.29
|
$
0.25
|
|
-
|
|
-
|
|
|
$
0.65
|
$
0.96
|
|
-
|
|
Book value per
share
|
$
15.89
|
$
16.17
|
$
16.42
|
$
16.76
|
$
16.63
|
|
(1.73)
|
|
(4.45)
|
|
|
$
15.89
|
$
16.63
|
|
(4.45)
|
|
Tangible book value per
share(1)
|
$
11.54
|
$
11.77
|
$
12.11
|
$
12.43
|
$
12.28
|
|
(1.95)
|
|
(6.03)
|
|
|
$
11.54
|
$
12.28
|
|
(6.03)
|
|
Cash dividend per
share
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
|
-
|
|
-
|
|
|
$
0.30
|
$
0.30
|
|
-
|
|
Weighted average shares
outstanding - Basic
|
24,576,887
|
24,562,753
|
24,503,945
|
24,476,569
|
24,474,104
|
|
0.06
|
|
0.42
|
|
|
24,548,129
|
24,425,416
|
|
0.50
|
|
Weighted average shares
outstanding - Diluted
|
24,688,422
|
24,681,425
|
24,662,588
|
24,653,363
|
24,634,384
|
|
0.03
|
|
0.22
|
|
|
24,674,014
|
24,582,680
|
|
0.37
|
|
Shares outstanding at
end of period
|
24,650,239
|
24,650,239
|
24,622,739
|
24,574,619
|
24,574,619
|
|
-
|
%
|
0.31
|
%
|
|
24,650,239
|
24,574,619
|
|
0.31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
as a percent of total assets, excluding SBA guarantees
|
1.11 %
|
0.61 %
|
0.47 %
|
0.44 %
|
0.47 %
|
|
49
|
bps
|
64
|
bps
|
|
1.11 %
|
0.47 %
|
|
64
|
bps
|
Net charge-offs
(recoveries) as a percent of average loans (annualized)
|
0.17 %
|
(0.07 %)
|
(0.03 %)
|
(0.00 %)
|
0.34 %
|
|
23
|
|
(17)
|
|
|
0.02 %
|
(0.06 %)
|
|
8
|
|
Allowance for credit
losses to total loans
|
1.17 %
|
1.15 %
|
1.23 %
|
1.24 %
|
1.31 %
|
|
2
|
|
(15)
|
|
|
1.17 %
|
1.31 %
|
|
(15)
|
|
Allowance for credit
losses to total loans (excluding PPP loans)
|
1.17 %
|
1.16 %
|
1.24 %
|
1.29 %
|
1.40 %
|
|
1
|
|
(23)
|
|
|
1.17 %
|
1.40 %
|
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
11.67 %
|
12.32 %
|
12.55 %
|
12.10 %
|
11.84 %
|
|
(65)
|
bps
|
(16)
|
bps
|
|
|
|
|
|
|
Tangible common equity
to tangible assets(1)
|
8.73 %
|
9.27 %
|
9.57 %
|
9.26 %
|
9.02 %
|
|
(54)
|
|
(29)
|
|
|
|
|
|
|
|
Leverage ratio
(2)
|
|
9.96 %
|
10.31 %
|
9.77 %
|
9.41 %
|
9.15 %
|
|
(35)
|
|
81
|
|
|
|
|
|
|
|
Common equity tier 1
capital ratio (2)
|
11.29 %
|
11.59 %
|
12.64 %
|
13.09 %
|
13.85 %
|
|
(30)
|
|
(256)
|
|
|
|
|
|
|
|
Tier 1 risk-based
capital ratio (2)
|
11.65 %
|
11.97 %
|
13.06 %
|
13.52 %
|
14.31 %
|
|
(32)
|
|
(266)
|
|
|
|
|
|
|
|
Total risk-based
capital ratio (2)
|
15.77 %
|
16.29 %
|
17.66 %
|
18.52 %
|
19.60 %
|
|
(52)
|
|
(383)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Reconciliation of Non-GAAP financial
measures.
|
(2) September 30, 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 - 3Q 2022
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets (unaudited)
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
|
2Q
2022
|
|
3Q
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
97,738
|
$
70,721
|
$
298,230
|
$
530,167
|
$
650,746
|
|
38.20
|
%
|
(84.98)
|
%
|
Investment
securities-available for sale
|
238,891
|
257,180
|
271,626
|
271,332
|
206,821
|
|
(7.11)
|
|
15.51
|
|
Investment
securities-held to maturity
|
14,391
|
14,978
|
16,138
|
22,940
|
26,412
|
|
(3.92)
|
|
(45.51)
|
|
Loans held for
sale
|
13,388
|
16,096
|
-
|
-
|
-
|
|
(16.82)
|
|
-
|
|
Loans receivable, net
of deferred fees
|
2,737,086
|
2,628,797
|
2,393,669
|
2,339,986
|
2,314,584
|
|
4.12
|
|
18.25
|
|
Allowance for credit
losses
|
(31,956)
|
(30,209)
|
(29,379)
|
(29,105)
|
(30,386)
|
|
5.78
|
|
5.17
|
|
|
Net loans
|
|
2,705,130
|
2,598,588
|
2,364,290
|
2,310,881
|
2,284,198
|
|
4.10
|
|
18.43
|
|
Stock in Federal
Reserve Bank and Federal Home Loan Bank
|
16,689
|
12,940
|
11,927
|
15,521
|
15,521
|
|
28.97
|
|
7.53
|
|
Investments in mortgage
affiliate - held for sale
|
-
|
-
|
-
|
-
|
10,050
|
|
-
|
|
(100.00)
|
|
Bank premises and
equipment, net
|
25,534
|
26,113
|
29,872
|
30,410
|
30,686
|
|
(2.22)
|
|
(16.79)
|
|
Operating lease
right-of-use assets
|
5,511
|
4,777
|
5,305
|
5,866
|
6,331
|
|
15.37
|
|
(12.95)
|
|
Goodwill and other
intangible assets
|
108,147
|
108,524
|
106,075
|
106,416
|
106,757
|
|
(0.35)
|
|
1.30
|
|
Assets held for sale,
net
|
3,127
|
3,127
|
-
|
-
|
-
|
|
-
|
|
-
|
|
Bank-owned life
insurance
|
67,519
|
67,339
|
67,099
|
66,724
|
66,336
|
|
0.27
|
|
1.78
|
|
Other real estate
owned
|
1,041
|
1,041
|
1,041
|
1,163
|
1,312
|
|
-
|
|
(20.66)
|
|
Deferred tax assets,
net
|
17,892
|
14,658
|
12,380
|
9,571
|
13,571
|
|
22.06
|
|
31.84
|
|
Other assets
|
41,975
|
40,496
|
35,893
|
36,362
|
33,676
|
|
3.65
|
|
24.64
|
|
|
Total assets
|
$
3,356,973
|
$
3,236,578
|
$
3,219,876
|
$
3,407,353
|
$
3,452,417
|
|
3.72
|
%
|
(2.76)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
687,272
|
$
653,181
|
$
559,682
|
$
530,282
|
$
535,706
|
|
5.22
|
%
|
28.29
|
%
|
NOW accounts
|
637,786
|
677,237
|
730,235
|
849,738
|
921,667
|
|
(5.83)
|
|
(30.80)
|
|
Money market
accounts
|
803,050
|
802,953
|
831,580
|
799,759
|
758,259
|
|
0.01
|
|
5.91
|
|
Savings
accounts
|
217,220
|
220,211
|
225,291
|
222,862
|
216,470
|
|
(1.36)
|
|
0.35
|
|
Time
deposits
|
362,992
|
329,223
|
339,456
|
360,575
|
374,965
|
|
10.26
|
|
(3.19)
|
|
Total deposits
|
|
2,708,320
|
2,682,805
|
2,686,244
|
2,763,216
|
2,807,067
|
|
0.95
|
|
(3.52)
|
|
Securities sold under
agreements to repurchase - short term
|
9,886
|
10,020
|
11,231
|
9,962
|
13,348
|
|
(1.34)
|
|
(25.94)
|
|
Federal Home Loan Bank
advances
|
125,000
|
25,000
|
-
|
100,000
|
100,000
|
|
NM
|
|
25.00
|
|
Subordinated debt and
notes
|
95,241
|
95,170
|
95,099
|
95,028
|
95,442
|
|
0.07
|
|
(0.21)
|
|
Operating lease
liabilities
|
6,044
|
5,299
|
5,897
|
6,498
|
7,000
|
|
14.06
|
|
(13.66)
|
|
Other
liabilities
|
|
20,674
|
19,647
|
17,210
|
20,768
|
20,931
|
|
5.23
|
|
(1.23)
|
|
|
Total
liabilities
|
2,965,165
|
2,837,941
|
2,815,681
|
2,995,472
|
3,043,788
|
|
4.48
|
|
(2.58)
|
|
Stockholders'
equity
|
391,808
|
398,637
|
404,195
|
411,881
|
408,629
|
|
(1.71)
|
|
(4.12)
|
|
|
Total liabilities and
stockholders' equity
|
$
3,356,973
|
$
3,236,578
|
$
3,219,876
|
$
3,407,353
|
$
3,452,417
|
|
3.72
|
%
|
(2.76)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity(1)
|
$
283,661
|
$
290,113
|
$
298,120
|
$
305,465
|
$
301,872
|
|
(2.22)
|
%
|
(6.03)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The company
defines "NM" as not meaningful for increases or decreases greater
than 300 percent.
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
Variance - 3Q 2022
vs.
|
|
|
For Nine Months
Ended:
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Operations (unaudited)
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
|
2Q
2022
|
|
3Q
2021
|
|
|
3Q
2022
|
3Q
2021
|
|
YTD
|
|
|
Interest and dividend
income
|
$
32,596
|
$
28,258
|
$
26,585
|
$
28,503
|
$
27,801
|
|
15.35
|
%
|
17.25
|
%
|
|
$ 87,439
|
$ 84,740
|
|
3.19
|
%
|
|
Interest
expense
|
|
5,146
|
3,652
|
3,731
|
4,262
|
4,594
|
|
40.91
|
|
12.02
|
|
|
12,529
|
14,778
|
|
(15.22)
|
|
|
|
Net interest
income
|
27,450
|
24,606
|
22,854
|
24,241
|
23,207
|
|
11.56
|
|
18.28
|
|
|
74,910
|
69,962
|
|
7.07
|
|
|
Provision for (recovery
of) credit losses
|
2,890
|
422
|
99
|
(1,299)
|
1,085
|
|
NM
|
|
166.36
|
|
|
3,411
|
(4,502)
|
|
(175.77)
|
|
|
|
Net interest income
after provision for (recovery of) credit losses
|
24,560
|
24,184
|
22,755
|
25,540
|
22,122
|
|
1.55
|
|
11.02
|
|
|
71,499
|
74,464
|
|
(3.98)
|
|
|
Account maintenance and
deposit service fees
|
1,525
|
1,442
|
1,351
|
1,420
|
1,509
|
|
5.76
|
|
1.06
|
|
|
4,318
|
4,759
|
|
(9.27)
|
|
|
Income from bank-owned
life insurance
|
394
|
378
|
375
|
535
|
387
|
|
4.23
|
|
1.81
|
|
|
1,147
|
1,152
|
|
(0.43)
|
|
|
Gain on debt
extinguishment
|
-
|
-
|
-
|
573
|
-
|
|
-
|
|
-
|
|
|
-
|
-
|
|
-
|
|
|
Gain (loss) on sale of
mortgage loans
|
2,197
|
593
|
-
|
-
|
-
|
|
270.49
|
|
-
|
|
|
2,790
|
-
|
|
-
|
|
|
Other
|
|
1,504
|
217
|
364
|
359
|
455
|
|
NM
|
|
230.55
|
|
|
2,085
|
1,207
|
|
72.74
|
|
|
|
Noninterest
income
|
5,620
|
2,630
|
2,090
|
2,887
|
2,351
|
|
113.69
|
|
139.05
|
|
|
10,340
|
7,118
|
|
45.27
|
|
|
Employee compensation
and benefits
|
12,594
|
10,573
|
9,625
|
9,527
|
9,032
|
|
19.11
|
|
39.44
|
|
|
32,792
|
27,214
|
|
20.50
|
|
|
Occupancy and equipment
expenses
|
2,857
|
2,546
|
2,557
|
2,487
|
2,523
|
|
12.22
|
|
13.24
|
|
|
7,960
|
7,189
|
|
10.72
|
|
|
Amortization of core
deposit intangible
|
326
|
341
|
341
|
342
|
341
|
|
(4.40)
|
|
(4.40)
|
|
|
1,008
|
1,023
|
|
(1.47)
|
|
|
Virginia franchise tax
expense
|
813
|
814
|
813
|
733
|
732
|
|
(0.12)
|
|
11.07
|
|
|
2,440
|
2,166
|
|
12.65
|
|
|
Data processing
expense
|
1,528
|
1,293
|
1,197
|
934
|
1,003
|
|
18.17
|
|
52.34
|
|
|
4,311
|
2,818
|
|
52.98
|
|
|
Telecommunication and
communication expense
|
342
|
366
|
382
|
439
|
415
|
|
(6.56)
|
|
(17.59)
|
|
|
1,090
|
1,351
|
|
(19.32)
|
|
|
Net (gain) loss on
other real estate owned
|
-
|
-
|
(59)
|
70
|
-
|
|
-
|
|
-
|
|
|
(59)
|
17
|
|
NM
|
|
|
Loss on bank premises
and equipment
|
64
|
620
|
-
|
-
|
-
|
|
(89.68)
|
|
-
|
|
|
684
|
-
|
|
-
|
|
|
Professional
fees
|
|
1,261
|
827
|
1,387
|
1,238
|
874
|
|
52.48
|
|
44.28
|
|
|
3,182
|
3,099
|
|
2.68
|
|
|
Other
expenses
|
|
3,976
|
3,050
|
2,744
|
2,722
|
1,640
|
|
30.36
|
|
142.44
|
|
|
9,770
|
6,901
|
|
41.57
|
|
|
|
Noninterest
expense
|
23,761
|
20,430
|
18,987
|
18,492
|
16,560
|
|
16.30
|
|
43.48
|
|
|
63,178
|
51,778
|
|
22.02
|
|
|
Income from continuing
operations before income taxes
|
6,419
|
6,384
|
5,858
|
9,935
|
7,913
|
|
0.55
|
|
(18.88)
|
|
|
18,661
|
29,804
|
|
(37.39)
|
|
|
Income tax
expense
|
1,365
|
1,375
|
1,265
|
2,284
|
1,702
|
|
(0.73)
|
|
(19.80)
|
|
|
4,005
|
6,438
|
|
(37.79)
|
|
|
|
Income from continuing
operations
|
5,054
|
5,009
|
4,593
|
7,651
|
6,211
|
|
0.90
|
|
(18.63)
|
|
|
14,656
|
23,366
|
|
(37.28)
|
|
|
Income (loss) from
discontinued operations before income taxes
|
-
|
-
|
-
|
-
|
(2,899)
|
|
-
|
|
(100.00)
|
|
|
-
|
294
|
|
(100.00)
|
|
|
Income tax expense
(benefit)
|
-
|
-
|
-
|
-
|
(627)
|
|
-
|
|
(100.00)
|
|
|
-
|
63
|
|
(100.00)
|
|
|
|
Income (loss) from
discontinued operations
|
-
|
-
|
-
|
-
|
(2,272)
|
|
-
|
|
(100.00)
|
|
|
-
|
231
|
|
(100.00)
|
|
|
|
Net
income
|
$
5,054
|
$
5,009
|
$
4,593
|
$
7,651
|
$
3,939
|
|
0.90
|
%
|
28.31
|
%
|
|
$ 14,656
|
$ 23,597
|
|
(37.89)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Reconciliation of Non-GAAP financial
measures.
|
|
The company
defines "NM" as not meaningful for increases or decreases greater
than 300 percent.
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
As
Of:
|
|
Variance - 3Q 2022
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
Composition
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
|
2Q
2022
|
|
3Q
2021
|
|
Loans held for
sale
|
$
13,388
|
$
16,096
|
$
-
|
$
-
|
$
-
|
|
-
|
%
|
-
|
%
|
Loans secured by real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
- owner occupied
|
$
437,636
|
433,840
|
406,285
|
389,109
|
421,940
|
|
0.87
|
|
3.72
|
|
|
Commercial real estate
- non-owner occupied
|
573,732
|
600,436
|
615,682
|
590,523
|
631,423
|
|
(4.45)
|
|
(9.14)
|
|
|
Secured by
farmland
|
8,852
|
9,305
|
8,896
|
10,003
|
10,721
|
|
(4.87)
|
|
(17.43)
|
|
|
Construction and land
development
|
138,371
|
117,604
|
116,365
|
121,520
|
109,763
|
|
17.66
|
|
26.06
|
|
|
Residential 1-4
family
|
616,764
|
607,548
|
575,946
|
548,830
|
531,556
|
|
1.52
|
|
16.03
|
|
|
Multi-family
residential
|
137,253
|
144,406
|
152,266
|
164,071
|
153,310
|
|
(4.95)
|
|
(10.47)
|
|
|
Home equity lines of
credit
|
65,852
|
69,860
|
72,440
|
73,877
|
75,775
|
|
(5.74)
|
|
(13.10)
|
|
|
Total real estate
loans
|
1,978,460
|
1,982,999
|
1,947,880
|
1,897,933
|
1,934,488
|
|
(0.23)
|
|
2.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans
|
470,934
|
448,582
|
336,961
|
303,697
|
203,243
|
|
4.98
|
|
131.71
|
|
Paycheck Protection
Program loans
|
8,014
|
17,525
|
31,404
|
77,319
|
140,465
|
|
(54.27)
|
|
(94.29)
|
|
Consumer
loans
|
|
279,678
|
179,691
|
77,424
|
61,037
|
36,388
|
|
55.64
|
|
NM
|
|
|
Loans receivable, net
of deferred fees
|
$
2,737,086
|
$
2,628,797
|
$
2,393,669
|
$
2,339,986
|
$
2,314,584
|
|
4.12
|
%
|
18.25
|
%
|
|
Loans by Risk
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
Pass, not
graded
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
|
-
|
%
|
-
|
%
|
|
Pass Grade
1 - Highest Quality
|
616
|
609
|
786
|
641
|
789
|
|
1.15
|
|
(21.93)
|
|
|
Pass Grade
2 - Good Quality
|
149,389
|
129,571
|
8,734
|
103,496
|
153,834
|
|
15.30
|
|
(2.89)
|
|
|
Pass Grade
3 - Satisfactory Quality
|
1,520,364
|
1,513,054
|
1,413,480
|
1,327,718
|
1,248,233
|
|
0.48
|
|
21.80
|
|
|
Pass Grade
4 - Pass
|
984,012
|
890,709
|
895,197
|
836,610
|
841,451
|
|
10.48
|
|
16.94
|
|
|
Pass Grade
5 - Special Mention
|
35,410
|
67,736
|
51,884
|
31,112
|
25,008
|
|
(47.72)
|
|
41.59
|
|
|
Grade 6 -
Substandard
|
47,295
|
27,118
|
23,588
|
40,409
|
45,269
|
|
74.40
|
|
4.48
|
|
|
Grade 7 -
Doubtful
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
Grade 8 -
Loss
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
Total loans
|
$
2,737,086
|
$
2,628,797
|
$
2,393,669
|
$
2,339,986
|
$
2,314,584
|
|
4.12
|
%
|
18.25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
As Of or For Three
Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Information
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
|
|
|
|
|
Allowance for Credit
Losses:
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
(30,209)
|
$
(29,379)
|
$
(29,105)
|
$
(30,386)
|
$
(31,265)
|
|
|
|
|
|
(Provision for) /
recovery of allowance for credit losses
|
(2,890)
|
(422)
|
(99)
|
1,299
|
(1,085)
|
|
|
|
|
|
Net
charge-offs
|
|
1,143
|
(408)
|
(175)
|
(18)
|
1,964
|
|
|
|
|
|
Ending
balance
|
|
$
(31,956)
|
$
(30,209)
|
$
(29,379)
|
$
(29,105)
|
$
(30,386)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for Unfunded
Commitments:
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
(1,069)
|
$
(1,237)
|
$
(977)
|
$
(1,129)
|
$
(1,599)
|
|
|
|
|
|
(Expense for) /
recovery of unfunded loan commitment reserve
|
(311)
|
168
|
(260)
|
152
|
470
|
|
|
|
|
|
Total Reserve for
Unfunded Commitments
|
$
(1,380)
|
$
(1,069)
|
$
(1,237)
|
$
(977)
|
$
(1,129)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of:
|
|
Variance - 3Q 2022
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing
Assets:
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
|
2Q
2022
|
|
3Q
2021
|
|
Nonaccrual
loans
|
$
36,851
|
$
19,635
|
$
14,941
|
$
15,029
|
$
18,352
|
|
87.68
|
%
|
100.80
|
%
|
Accruing loans
delinquent 90 days or more
|
1,855
|
1,512
|
1,817
|
283
|
-
|
|
22.69
|
|
-
|
|
Total non-performing
loans
|
38,706
|
21,147
|
16,758
|
15,312
|
18,352
|
|
83.03
|
|
110.91
|
|
Other real estate
owned
|
1,041
|
1,041
|
1,041
|
1,163
|
1,312
|
|
-
|
|
(20.66)
|
|
Total non-performing
assets
|
$
39,747
|
$
22,188
|
$
17,799
|
$
16,475
|
$
19,664
|
|
79.14
|
|
102.13
|
|
SBA guaranteed portion
of non-performing loans
|
$
2,573
|
$
2,319
|
$
2,651
|
$
1,388
|
$
3,361
|
|
10.95
|
|
(23.45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructuring
|
$
3,170
|
$
2,695
|
$
3,103
|
$
3,401
|
$
3,710
|
|
17.63
|
|
(14.6)
|
|
Loans deferred under
COVID-19 modifications
|
$
-
|
$
-
|
$
-
|
$
-
|
$
6,985
|
|
-
|
%
|
(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.
|
|
|
For Nine Months
Ended:
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
|
2Q
2022
|
|
3Q
2021
|
|
|
3Q
2022
|
3Q
2021
|
|
YTD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
21,199
|
$
6,936
|
$
-
|
$
-
|
$
-
|
|
205.64
|
%
|
-
|
%
|
|
$
9,456
|
$
-
|
|
-
|
%
|
Loans, net of deferred
fees
|
2,669,605
|
2,509,978
|
2,360,782
|
2,317,260
|
2,291,945
|
|
6.36
|
|
16.48
|
|
|
2,514,587
|
2,351,410
|
|
6.94
|
|
Investment
securities
|
269,780
|
287,722
|
302,431
|
258,265
|
229,906
|
|
(6.24)
|
|
17.34
|
|
|
286,525
|
213,128
|
|
34.44
|
|
Other earning
assets
|
90,268
|
158,817
|
466,952
|
632,841
|
689,084
|
|
(43.16)
|
|
(86.90)
|
|
|
237,299
|
536,781
|
|
(55.79)
|
|
Total earning
assets
|
3,050,852
|
2,963,453
|
3,130,165
|
3,208,366
|
3,210,935
|
|
2.95
|
|
(4.99)
|
|
|
3,047,867
|
3,101,319
|
|
(1.72)
|
|
Investment in STM -
Held for sale
|
—
|
—
|
-
|
9,941
|
12,621
|
|
-
|
|
(100.00)
|
|
|
—
|
12,659
|
|
(100.00)
|
|
Other assets
|
|
234,355
|
228,893
|
226,320
|
229,718
|
230,116
|
|
2.39
|
|
1.84
|
|
|
229,885
|
228,361
|
|
0.67
|
|
Total
assets
|
|
$
3,285,207
|
$
3,192,346
|
$
3,356,485
|
$
3,448,025
|
$
3,453,672
|
|
2.91
|
%
|
(4.88)
|
%
|
|
$
3,277,752
|
$
3,342,339
|
|
(1.93)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
665,020
|
$
596,714
|
$
545,530
|
$
547,504
|
$
547,500
|
|
11.45
|
%
|
21.46
|
%
|
|
$
602,872
|
$
514,318
|
|
17.22
|
%
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and other demand
accounts
|
660,387
|
695,481
|
817,430
|
878,652
|
920,203
|
|
(5.05)
|
|
(28.23)
|
|
|
723,857
|
854,360
|
|
(15.27)
|
|
Money market
accounts
|
803,860
|
810,781
|
809,460
|
784,942
|
744,280
|
|
(0.85)
|
|
8.01
|
|
|
808,013
|
706,215
|
|
14.41
|
|
Savings
accounts
|
219,167
|
222,274
|
224,716
|
219,823
|
213,859
|
|
(1.40)
|
|
2.48
|
|
|
222,032
|
204,286
|
|
8.69
|
|
Time
deposits
|
|
343,986
|
329,198
|
350,368
|
368,603
|
380,233
|
|
4.49
|
|
(9.53)
|
|
|
341,160
|
418,161
|
|
(18.41)
|
|
Total
Deposits
|
2,692,420
|
2,654,448
|
2,747,504
|
2,799,524
|
2,806,075
|
|
1.43
|
|
(4.05)
|
|
|
2,697,934
|
2,697,340
|
|
0.02
|
|
Borrowings
|
|
166,621
|
107,784
|
171,293
|
209,215
|
208,689
|
|
54.59
|
|
(20.16)
|
|
|
148,549
|
219,947
|
|
(32.46)
|
|
Total
Funding
|
|
2,859,041
|
2,762,232
|
2,918,797
|
3,008,739
|
3,014,764
|
|
3.50
|
|
(5.17)
|
|
|
2,846,483
|
2,917,287
|
|
(2.43)
|
|
Other
Liabilities
|
|
23,832
|
22,095
|
23,057
|
27,407
|
28,699
|
|
7.86
|
|
(16.96)
|
|
|
22,985
|
22,947
|
|
0.17
|
|
Stockholders'
equity
|
402,334
|
408,019
|
414,631
|
411,879
|
410,209
|
|
(1.39)
|
|
(1.92)
|
|
|
408,284
|
402,105
|
|
1.54
|
|
Total liabilities
and stockholders' equity
|
$
3,285,207
|
$
3,192,346
|
$
3,356,485
|
$
3,448,025
|
$
3,453,672
|
|
2.91
|
%
|
(4.88)
|
%
|
|
$
3,277,752
|
$
3,342,339
|
|
(1.93)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average PPP
loans
|
$
11,868
|
$
23,950
|
$
51,491
|
$
102,078
|
$
191,504
|
|
(50.45)
|
%
|
(93.80)
|
%
|
|
$ 28,958
|
$
272,371
|
|
(89.37)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
263
|
$
93
|
$
-
|
$
-
|
$
-
|
|
182.80
|
%
|
-
|
%
|
|
$
356
|
$
-
|
|
-
|
%
|
Loans
|
|
|
30,260
|
26,272
|
24,749
|
26,701
|
26,181
|
|
15.18
|
|
15.58
|
|
|
81,281
|
80,320
|
|
1.20
|
|
Investment
securities
|
1,518
|
1,445
|
1,430
|
1,242
|
1,083
|
|
5.05
|
|
40.17
|
|
|
4,393
|
3,198
|
|
37.37
|
|
Other earning
assets
|
555
|
448
|
406
|
560
|
537
|
|
23.88
|
|
3.35
|
|
|
1,409
|
1,222
|
|
15.30
|
|
Total
Earning Assets
|
32,596
|
28,258
|
26,585
|
28,503
|
27,801
|
|
15.35
|
|
17.25
|
|
|
87,439
|
84,740
|
|
3.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
DDA
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
-
|
-
|
|
-
|
|
NOW and other
interest-bearing demand accounts
|
536
|
556
|
666
|
832
|
1,062
|
|
(3.60)
|
|
(49.53)
|
|
|
1,758
|
3,178
|
|
(44.68)
|
|
Money market
accounts
|
1,667
|
938
|
859
|
952
|
1,056
|
|
77.72
|
|
57.86
|
|
|
3,464
|
3,294
|
|
5.16
|
|
Savings
accounts
|
141
|
142
|
149
|
154
|
165
|
|
(0.70)
|
|
(14.55)
|
|
|
432
|
464
|
|
(6.90)
|
|
Time
deposits
|
|
943
|
674
|
700
|
809
|
877
|
|
39.91
|
|
7.53
|
|
|
2,317
|
3,429
|
|
(32.43)
|
|
Total Deposit
Costs
|
3,287
|
2,310
|
2,374
|
2,747
|
3,160
|
|
42.29
|
|
4.02
|
|
|
7,971
|
10,365
|
|
(23.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
1,859
|
1,342
|
1,357
|
1,515
|
1,434
|
|
38.52
|
|
29.64
|
|
|
4,558
|
4,413
|
|
3.29
|
|
Total Funding
Costs
|
5,146
|
3,652
|
3,731
|
4,262
|
4,594
|
|
40.91
|
|
12.02
|
|
|
12,529
|
14,778
|
|
(15.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
$
27,450
|
$
24,606
|
$
22,854
|
$
24,241
|
$
23,207
|
|
11.56
|
%
|
18.28
|
%
|
|
$ 74,910
|
$ 69,962
|
|
7.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: SBA PPP
loan interest and fee income
|
$
28
|
$
59
|
$
435
|
$
2,503
|
$
3,146
|
|
(52.54)
|
%
|
(99.11)
|
%
|
|
$
519
|
$ 11,483
|
|
(95.48)
|
%
|
Memo: SBA PPP
loan funding costs
|
$
10
|
$
21
|
$
44
|
$
90
|
$
169
|
|
(52.38)
|
%
|
(94.08)
|
%
|
|
$
76
|
$
713
|
|
(89.34)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
4.92 %
|
5.38 %
|
0.00 %
|
0.00 %
|
0.00 %
|
|
(46)
|
bps
|
492
|
bps
|
|
5.03 %
|
0.00 %
|
|
503
|
bps
|
Loans
|
|
|
4.50 %
|
4.20 %
|
4.25 %
|
4.57 %
|
4.53 %
|
|
30
|
|
(3)
|
|
|
4.32 %
|
4.57 %
|
|
(25)
|
|
Investments
|
|
2.23 %
|
2.01 %
|
1.92 %
|
1.91 %
|
1.87 %
|
|
22
|
|
36
|
|
|
2.05 %
|
2.01 %
|
|
4
|
|
Other Earning
Assets
|
2.44 %
|
1.13 %
|
0.35 %
|
0.35 %
|
0.31 %
|
|
131
|
|
213
|
|
|
0.79 %
|
0.30 %
|
|
49
|
|
Total Earning
Assets
|
4.24 %
|
3.82 %
|
3.44 %
|
3.52 %
|
3.44 %
|
|
42
|
|
80
|
|
|
3.84 %
|
3.65 %
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
|
0.32 %
|
0.32 %
|
0.33 %
|
0.38 %
|
0.46 %
|
|
-
|
|
(14)
|
|
|
0.32 %
|
0.50 %
|
|
(18)
|
|
MMDA
|
|
0.82 %
|
0.46 %
|
0.43 %
|
0.48 %
|
0.56 %
|
|
36
|
|
26
|
|
|
0.57 %
|
0.62 %
|
|
(5)
|
|
Savings
|
|
0.26 %
|
0.26 %
|
0.27 %
|
0.28 %
|
0.31 %
|
|
-
|
|
(5)
|
|
|
0.26 %
|
0.30 %
|
|
(4)
|
|
CDs
|
|
|
1.09 %
|
0.82 %
|
0.81 %
|
0.87 %
|
0.92 %
|
|
27
|
|
17
|
|
|
0.91 %
|
1.10 %
|
|
(19)
|
|
Cost of
Interest Bearing Deposits
|
0.64 %
|
0.45 %
|
0.44 %
|
0.48 %
|
0.56 %
|
|
19
|
|
8
|
|
|
0.51 %
|
0.63 %
|
|
(12)
|
|
Cost of
Deposits
|
0.48 %
|
0.35 %
|
0.35 %
|
0.39 %
|
0.45 %
|
|
13
|
|
3
|
|
|
0.40 %
|
0.51 %
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Other
Funding
|
|
4.43 %
|
4.99 %
|
3.22 %
|
2.87 %
|
2.73 %
|
|
(56)
|
|
170
|
|
|
4.10 %
|
2.68 %
|
|
142
|
|
Total Cost of
Funds
|
0.71 %
|
0.53 %
|
0.52 %
|
0.56 %
|
0.60 %
|
|
18
|
|
11
|
|
|
0.59 %
|
0.68 %
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
3.57 %
|
3.33 %
|
2.96 %
|
3.00 %
|
2.87 %
|
|
24
|
|
70
|
|
|
3.29 %
|
3.02 %
|
|
27
|
|
Net Interest
Spread
|
3.31 %
|
3.15 %
|
2.81 %
|
2.96 %
|
2.70 %
|
|
16
|
|
61
|
|
|
3.09 %
|
2.83 %
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Excluding
SBA PPP loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
4.51 %
|
4.23 %
|
4.27 %
|
4.33 %
|
4.35 %
|
|
28
|
bps
|
16
|
bps
|
|
4.34 %
|
4.43 %
|
|
(8)
|
bps
|
|
Total Earning
Assets
|
4.25 %
|
3.85 %
|
3.44 %
|
3.32 %
|
3.24 %
|
|
40
|
|
101
|
|
|
3.85 %
|
3.46 %
|
|
39
|
|
|
Net Interest
Margin*
|
3.58 %
|
3.35 %
|
2.96 %
|
2.79 %
|
2.66 %
|
|
23
|
|
92
|
|
|
3.30 %
|
2.80 %
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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 Nine Months
Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP items:
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
3Q
2021
|
|
3Q
2022
|
3Q
2021
|
|
Net income from
continuing operations
|
$
5,054
|
$
5,009
|
$
4,593
|
$
7,651
|
$
6,211
|
|
$
14,656
|
|
$
23,366
|
|
Non-GAAP adjustments to
Net Income from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
Management Restructure
/ Recruiting
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
200
|
|
|
Branch Closures/
Consolidations
|
308
|
901
|
-
|
-
|
-
|
|
1,209
|
|
-
|
|
|
Merger
expenses
|
-
|
401
|
115
|
-
|
-
|
|
516
|
|
-
|
|
|
(Gain) on debt
extinguishment
|
-
|
-
|
-
|
(573)
|
-
|
|
-
|
|
-
|
|
|
Income tax
effect
|
(67)
|
(281)
|
(25)
|
124
|
-
|
|
(373)
|
|
(43)
|
|
|
Net income from
continuing operations adjusted for nonrecurring income and
expenses
|
$
5,295
|
$
6,030
|
$
4,683
|
$
7,202
|
$
6,211
|
|
$
16,008
|
|
$
23,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
5,054
|
$
5,009
|
$
4,593
|
$
7,651
|
$
6,211
|
|
$
14,656
|
|
$
23,366
|
|
|
Income tax
expense
|
1,365
|
1,375
|
1,265
|
2,284
|
1,702
|
|
4,005
|
|
6,438
|
|
|
Provision for credit
losses (incl. unfunded commitment expense)
|
3,201
|
254
|
359
|
(1,451)
|
615
|
|
3,722
|
|
(4,112)
|
|
Pre-tax pre-provision
earnings from continuing operations
|
$
9,620
|
$
6,638
|
$
6,217
|
$
8,484
|
$
8,528
|
|
$
22,383
|
|
$
25,692
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
308
|
1,302
|
115
|
(573)
|
-
|
|
1,725
|
|
200
|
|
Pre-tax pre-provision
operating earnings from continuing operations
|
$
9,928
|
$
7,940
|
$
6,332
|
$
7,911
|
$
8,528
|
|
$
24,108
|
|
$
25,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets from continuing operations
|
0.61 %
|
0.63 %
|
0.55 %
|
0.88 %
|
0.72 %
|
|
0.60 %
|
|
0.94 %
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.03 %
|
0.13 %
|
0.01 %
|
(0.05 %)
|
0.00 %
|
|
0.06 %
|
|
0.01 %
|
|
Operating return on
average assets from continuing operations
|
0.64 %
|
0.76 %
|
0.57 %
|
0.83 %
|
0.72 %
|
|
0.65 %
|
|
0.94 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets from continuing operations
|
0.61 %
|
0.63 %
|
0.55 %
|
0.88 %
|
0.72 %
|
|
0.60 %
|
|
0.94 %
|
|
|
Effect of tax
expense
|
0.16 %
|
0.17 %
|
0.15 %
|
0.26 %
|
0.20 %
|
|
0.16 %
|
|
0.26 %
|
|
|
Effect of provision for
credit losses
|
0.39 %
|
0.03 %
|
0.04 %
|
(0.17 %)
|
0.07 %
|
|
0.15 %
|
|
(0.17 %)
|
|
Pre-tax pre-provision
return on average assets from continuing operations
|
1.16 %
|
0.83 %
|
0.75 %
|
0.98 %
|
0.98 %
|
|
0.91 %
|
|
1.03 %
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.04 %
|
0.16 %
|
0.01 %
|
(0.07 %)
|
0.00 %
|
|
0.07 %
|
|
0.01 %
|
|
Pre-tax pre-provision
operating return on average assets from continuing
operations
|
1.20 %
|
1.00 %
|
0.77 %
|
0.91 %
|
0.98 %
|
|
0.98 %
|
|
1.04 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity from continuing operations
|
4.98 %
|
4.92 %
|
4.49 %
|
7.37 %
|
6.01 %
|
|
4.80 %
|
|
7.77 %
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.24 %
|
1.00 %
|
0.09 %
|
(0.43 %)
|
0.00 %
|
|
0.44 %
|
|
0.05 %
|
|
Operating return on
average equity from continuing operations
|
5.22 %
|
5.93 %
|
4.58 %
|
6.94 %
|
6.01 %
|
|
5.24 %
|
|
7.82 %
|
|
|
Effect of goodwill and
other intangible assets
|
1.92 %
|
2.15 %
|
1.58 %
|
2.42 %
|
2.12 %
|
|
1.87 %
|
|
2.85 %
|
|
Operating return on
average tangible equity from continuing operations
|
7.14 %
|
8.08 %
|
6.16 %
|
9.36 %
|
8.12 %
|
|
7.11 %
|
|
10.67 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio from
continuing operations
|
71.85 %
|
75.01 %
|
76.11 %
|
68.16 %
|
64.80 %
|
|
74.11 %
|
|
67.18 %
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(0.93 %)
|
(4.78 %)
|
(0.46 %)
|
1.47 %
|
0.00 %
|
|
(2.02 %)
|
|
(0.26 %)
|
|
Operating efficiency
ratio from continuing operations
|
70.92 %
|
70.23 %
|
75.65 %
|
69.63 %
|
64.80 %
|
|
72.09 %
|
|
66.92 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
continuing operations - Basic
|
$
0.21
|
$
0.20
|
$
0.19
|
$
0.31
|
$
0.25
|
|
$ 0.60
|
|
$ 0.96
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.01
|
0.05
|
0.00
|
(0.02)
|
0.00
|
|
0.05
|
|
0.00
|
|
Operating earnings per
share from continuing operations - Basic
|
$
0.22
|
$
0.25
|
$
0.19
|
$
0.29
|
$
0.25
|
|
$ 0.65
|
|
$ 0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
continuing operations - Diluted
|
$
0.20
|
$
0.20
|
$
0.19
|
$
0.31
|
$
0.25
|
|
$ 0.59
|
|
$ 0.95
|
|
|
Effect of adjustment
for nonrecurring income and expenses
|
0.01
|
0.04
|
(0.00)
|
(0.02)
|
0.00
|
|
0.06
|
|
0.01
|
|
Operating earnings per
share from continuing operations - Diluted
|
$
0.21
|
$
0.24
|
$
0.19
|
$
0.29
|
$
0.25
|
|
$ 0.65
|
|
$ 0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
15.89
|
$
16.17
|
$
16.42
|
$
16.76
|
$
16.63
|
|
$
15.89
|
|
$
16.63
|
|
|
Effect of goodwill and
other intangible assets
|
(4.39)
|
(4.40)
|
(4.31)
|
(4.34)
|
(4.35)
|
|
(4.39)
|
|
(4.34)
|
|
Tangible book value per
share
|
$
11.54
|
$
11.77
|
$
12.11
|
$
12.43
|
$
12.28
|
|
$
11.54
|
|
$
12.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
$
391,808
|
$
398,637
|
$
404,195
|
$
411,881
|
$
408,629
|
|
$ 391,808
|
|
$ 408,629
|
|
|
Less goodwill and other
intangible assets
|
(108,147)
|
(108,524)
|
(106,075)
|
(106,416)
|
(106,757)
|
|
(108,147)
|
|
(106,757)
|
|
Tangible common
equity
|
$
283,661
|
$
290,113
|
$
298,120
|
$
305,465
|
$
301,872
|
|
$ 283,661
|
|
$ 301,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
11.67 %
|
12.32 %
|
12.55 %
|
12.10 %
|
11.84 %
|
|
11.67 %
|
|
11.84 %
|
|
|
Effect of goodwill and
other intangible assets
|
(2.94 %)
|
(3.04 %)
|
(2.98 %)
|
(2.84 %)
|
(2.81 %)
|
|
(2.94 %)
|
|
(2.81 %)
|
|
Tangible common equity
to tangible assets
|
8.73 %
|
9.27 %
|
9.57 %
|
9.26 %
|
9.02 %
|
|
8.73 %
|
|
9.02 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
3.57 %
|
3.33 %
|
2.96 %
|
3.00 %
|
2.87 %
|
|
3.29 %
|
|
3.02 %
|
|
|
Effect of adjustment
for PPP associated balances*
|
0.01 %
|
0.02 %
|
(0.00 %)
|
(0.21 %)
|
(0.21 %)
|
|
0.01 %
|
|
(0.22 %)
|
|
Net interest margin
excluding PPP
|
3.58 %
|
3.35 %
|
2.96 %
|
2.79 %
|
2.66 %
|
|
3.30 %
|
|
2.80 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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.