Declares Quarterly Cash Dividend of
$0.10 Per Share
MCLEAN,
Va., Jan. 26, 2023 /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 $3.1 million for the quarter ended December 31, 2022, compared to $5.1 million for the quarter ended September 30, 2022 and $7.7 million for the quarter ended December 31, 2021. Earnings per share
("EPS") from continuing operations for the three months ended
December 31, 2022 were $0.13 on a basic and $0.12 on a diluted basis, compared to
$0.21 on a basic and $0.20 on a diluted basis for the three months
ended September 30, 2022 and
$0.31 on both a basic and diluted
basis for the three months ended December
31, 2021.
Dennis J. Zember, Jr., President
and CEO commented about the year's results, saying, "We have
exhausted ourselves over the last three years, and intensely in
2022, building growth and profitability engines that will deliver
long-term results for shareholders. We have restored
regulatory relationships, built two national lines of business
focused on top quality borrowers and assets, restructured the
community bank, diversified our revenue sources, rationalized our
branch footprint and restored manageable levels of talent
throughout the bank. I am excited and determined that these
investments will separate us from our peers on operating ratios and
earnings per share in 2023 and beyond."
Net income from continuing operations for the twelve months
ended December 31, 2022 was
$17.7 million, compared to
$31.0 million for the twelve months
ended December 31, 2021. EPS from
continuing operations for the twelve months ended December 31, 2022 were $0.72 on a basic and diluted basis, compared to
$1.28 on a basic and $1.26 on a diluted basis for the twelve months
ended December 31, 2021.
Financial Highlights for the Period Ended December 31, 2022
- Return on average assets from continuing operations of 0.36%
for the three months ended December 31,
2022 versus 0.61% for the three months ended September 30, 2022 and 0.88% for the three months
ended December 31, 2021.
Operating return on average assets from continuing
operations(1) of 0.09%, 0.64% and 0.83% for the
three months ended December 31, 2022,
September 30, 2022 and December 31, 2021, respectively.
- Pre-tax pre-provision return on average assets from continuing
operations(1) was 1.33% for the three months ended
December 31, 2022, versus 1.16% for
the three months ended September 30,
2022 and 0.98% for the three months ended December 31, 2021.
- Pre-tax pre-provision operating return on average assets from
continuing operations(1) was 0.78% for the three months
ended December 31, 2022, versus 1.05%
for the three months ended September 30,
2022 and 0.91% for the three months ended December 31, 2021. Excluding losses related to
mortgage banking, this ratio would have been 1.10% for the fourth
quarter of 2022 and 1.15% for the third quarter of 2022.
- Loans held for investment grew at a rate of 26.0% for 2022, or
30.1%, net of a decline in Paycheck Protection Program ("PPP") loan
balances. Loans held for investment grew at an annualized
rate of 31.5% in the fourth quarter compared to the linked-quarter,
net of a decline in PPP balances.
- Total deposits grew an annualized 2.1% from the linked-quarter
to $2.72 billion at December 31, 2022.
- Non-interest bearing checking deposits were $582.6 million, representing 21.4% of total
deposits at December 31, 2022,
compared to 25.4% at September 30,
2022 and 19.2% at December 31,
2021.
- Net interest margin of 3.67% in the fourth quarter of 2022 was
up substantially from 3.00% in the same period last year and up 10
basis points from 3.57% in the third quarter of 2022. Core net
interest margin(1), which excludes the effects of PPP
loans and revenue due to a third-party loan servicer (as described
below), was 3.51% in the fourth quarter of 2022, down slightly from
3.58% in the third quarter of 2022 and up substantially from 2.79%
in the fourth quarter of 2021.
- Allowance for credit losses to total loans was 1.17% at
December 31, 2022, compared to 1.17%
at September 30, 2022 and 1.24% at
December 31, 2021. Allowance
for credit losses to total loans (excluding PPP balances and loans
held for sale) was 1.17% at December 31,
2022, compared to 1.17% at September
30, 2022 and 1.29% at December
31, 2021.
- Equity to assets was 11.04% at December
31, 2022. Tangible common equity to tangible assets of
8.27% is 68 basis points higher than peer(2) median
at December 31, 2022.
Operating Performance
Speaking about the items in the Company's quarterly performance,
Mr. Zember said, "Our results in the fourth quarter were noisy, as
we worked to finish any investing or restructuring that could have
negatively affected 2023. When I normalize the quarter for
several material factors, I believe our core profitability
illustrates the run-rate of our earnings power going into
2023. Without the costs and one-time revenue boost, I
believe we had our best quarter, buoyed by a strong net interest
margin. Additionally, our results in 2022 included
substantial provisioning for loan growth that will moderate in 2023
alongside two divisions (Primis Mortgage and Panacea) that will
unquestionably produce meaningful boosts to our ratios in 2023
compared to their build-out style performance in 2022."
Reported Pre-Tax
Pre-Provision Earnings:
|
|
$11,511
|
Plus: Mortgage pre-tax
loss related to production buildout:
|
|
$2,743
|
Plus: Severance and
restructuring costs:
|
|
$1,175
|
Plus: OREO
Loss
|
|
$131
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Less: Noninterest
income related to third-party credit enhanced portfolio
|
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($1,822)
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Less: One time gain on
sale of investment
|
|
($4,144)
|
Management's Pre-tax
Pre-Provision Run-Rate Earnings
|
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$9,594
|
Net Interest Income
Net interest income increased to $29.6
million for the three months ended December 31, 2022 from $27.5 million for the three months ended
September 30, 2022 and $24.2 million for the three months ended
December 31, 2021. Included in
fourth quarter net interest income is excess net revenue of
$1.37 million attributable to a
third-party serviced loan portfolio that is offset by the same
amount recorded in noninterest expense. Excluding this
revenue, net interest income increased to $28.2 million for the three months ended
December 31, 2022 from $27.4 million for the three months ended
September 30, 2022.
The Company's reported net interest margin for the fourth
quarter of 2022 was 3.67%, compared to 3.57% in the third quarter
of 2022. Core net interest margin, excluding the effects of
PPP balances and the third-party net revenue described above, was
3.51% for the fourth quarter versus 3.58% in the third quarter of
2022. Yield on loans held for investment for the fourth
quarter of 2022 was 5.04%, or 4.86% excluding the adjustments
above, compared to 4.51% in the third quarter of 2022. Cost
of deposits and cost of funds in the fourth quarter of 2022 were
0.78% and 1.19%, respectively, versus 0.48% and 0.71%,
respectively, in the third quarter of 2022.
Noninterest Income
During the three months ended December
31, 2022, Primis had noninterest income of $11.0 million, compared to $5.6 million for the three months ended
September 30, 2022, with a large
driver of the increase due to a $4.1
million gain on the Company's investment in Infinex
Financial Services which sold in the fourth quarter.
Noninterest income includes gains of $1.8
million and $1.2 million for
the fourth quarter and third quarter, respectively, for recovery of
credit losses due to loan portfolio credit enhancement provided by
a third party. Excluding these gains and the Infinex sale,
noninterest income increased to $5.0
million in the fourth quarter of 2022 from $4.4 million in the third quarter of 2022.
Revenue due to mortgage activity was essentially flat at
$2.3 million in the fourth quarter of
2022 versus $2.2 million in the
linked quarter. The Company closed $86
million in loans in the quarter versus $63 million in the third quarter, or a 36%
increase, in what is a seasonally slow quarter for the
industry.
Noninterest Expense
Noninterest expense was $29.1
million for the fourth quarter of 2022, compared to
$23.8 million for the third quarter
of 2022. As noted in the net interest income discussion above,
noninterest expense for the fourth quarter of 2022 included
$1.37 million of servicing and other
expenses for a third-party managed loan portfolio.
Noninterest expense adjusted for these expenses, branch
consolidation costs, other restructuring costs and unfunded
commitment reserve impacts was $26.5
million for the fourth quarter of 2022 versus $23.1 million for the third quarter of 2022. A
significant driver of the increased noninterest expense was an
increase of $2.2 million in expenses
related to Primis Mortgage to $5.4
million in the fourth quarter of 2022 versus $3.2 million in the third quarter of 2022. As
noted last quarter, Primis Mortgage hired substantial production
teams late in the third quarter of 2022, the full effects of which
were felt in the fourth quarter. Certain members of these
teams also had elevated salary draws for a limited period of time
while pipelines were built, and which have now expired, totaling
$0.9 million in the fourth
quarter. Non-interest expense related to mortgage should more
closely align with revenue generation going forward.
Excluding mortgage, nonrecurring expenses and the third party
expenses described above, noninterest expense for the fourth
quarter of 2022 was $21.2 million
versus $20.3 million
linked-quarter.
The Company's efficiency ratio from continuing operations was
71.7% in the fourth quarter of 2022 versus 71.9% in the third
quarter of 2022. The operating efficiency ratio from
continuing operations(1) in the fourth quarter of 2022
was 79.9% compared to 73.6% in the third quarter of 2022. As
noted above, the efficiency ratio was heavily impacted by Primis
Mortgage in the fourth quarter. Excluding mortgage, the
operating efficiency ratio was 69.2% for the fourth quarter of 2022
versus 69.0% for the third quarter of 2022.
Loan Portfolio
Loans held for investment increased to $2.95 billion at December
31, 2022, compared to $2.74
billion at September 30,
2022. Loans held for investment grew at an annualized rate of
26.0% for the twelve months of 2022 or 30.1%, net of a decline in
PPP balances, and a substantially higher growth rate than
management's expectations at the beginning of 2022. Loan
growth was particularly strong in the Panacea and Life Premium
Finance divisions in the fourth quarter, as discussed below.
Asset Quality
Asset quality metrics for the fourth quarter were negatively
affected by one nonaccrual relationship discussed last
quarter. As previously disclosed, this relationship is
primarily secured by multiple assisted living facilities and a
smaller tract of land. Management has a receiver appointed by
the court ahead of an anticipated foreclosure and aggressively
valued the properties for that sale. Provisions associated
with this single borrower in the quarter were approximately
$5.0 million.
Commented Mr. Zember, "Because our asset quality ratios are so
materially affected by this one relationship, we valued the
collateral very conservatively and are moving with haste to dispose
of the property. Outside of this relationship, our total NPAs
were $15.6 million at the end of the
year including $8.0 million in a
single family loan that is current with a less than 50% loan to
value. While I am aggravated with the hassle of these assets
and the associated charge-offs, I feel confident about our credit
quality and currently do not see any weaknesses or trends that I
believe will affect losses in 2023."
The Company recorded a provision for loan losses of $7.9 million for the fourth quarter of 2022
versus $2.9 million for the third
quarter of 2022. Of this provision, $1.8 million was due to charge-offs and reserve
build for the loan portfolio with a third-party credit enhancement
described previously. This portion of the provision is fully
offset by a gain recorded in noninterest income and has no effect
on net income. Excluding this provision amount and the
amounts related to the impairments described above, and net of
recoveries experienced in the quarter, the allowance for credit
losses would have increased $2.6
million in the fourth quarter. Of this amount,
approximately $1.6 million was due to
loan growth in the fourth quarter with the remainder due to
increased loss rates from weakened economic forecasts. As a
percentage of loans, excluding PPP balances, the allowance for
credit losses was 1.17% at the end of the third and fourth quarters
of 2022.
Net charge-offs were $5.3 million
for the fourth quarter of 2022, up from $1.1
million in the third quarter of 2022. Excluding the
losses tied to the impaired relationship described above and
$1.5 million of charge-offs that are
covered by a third-party, the fourth quarter would have experienced
$1.3 million of net recoveries.
Nonperforming assets, excluding portions guaranteed by the SBA,
were $34.9 million at December 31, 2022 compared to $37.2 million at September
30, 2022, while loans rated substandard or doubtful
decreased to $41.0 million in the
fourth quarter of 2022 from $47.3
million in the third quarter of 2022. Other real
estate owned declined to zero from $1.0
million linked-quarter.
Deposits
Total deposits increased to $2.72
billion at December 31, 2022
from $2.71 billion at September 30, 2022 and decreased compared to
$2.76 billion at December 31, 2021. Non-interest bearing
demand deposits now represent 21.4% of total deposits and time
deposits represent only 17.1% of total deposits at December 31, 2022. Non-interest bearing
balances decreased 15.3% compared to the linked-quarter to
$582.6 million. The Company has
a single large depositor whose balance declined approximately
$30 million in the fourth quarter of
the year but is expected to fund back fully during the first and
second quarters of 2023. Time deposits increased 28.1%
compared to the linked-quarter to $465.1
million as the Bank extended maturities in the face of
rising rates with approximately $100
million in CDs of varying maturities and rates. While newly
launched, the Bank's new digital banking offering is beginning to
see balance growth with $29.7 million
of deposits on the new platform at year-end and almost $40 million at the time of this press
release.
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)
|
Q4
'22
|
Q3
'22
|
Chg
|
Q4
'22
|
Q3
'22
|
Chg
|
Q4
'22
|
Q3
'22
|
Chg
|
Q4
'22
|
Q3
'22
|
Chg
|
Net Interest Income
*
|
$
25,482
|
$
25,284
|
0.8 %
|
$
1,840
|
$
1,465
|
25.6 %
|
$
659
|
$
530
|
24.4 %
|
$
226
|
$
171
|
32.3 %
|
Noninterest
Income
|
2,750
|
2,195
|
25.3 %
|
3
|
2
|
86.2 %
|
5
|
5
|
(9.4 %)
|
2,264
|
2,197
|
3.1 %
|
Operating Noninterest
Expense (excl. res. for unfunded)
|
20,005
|
18,655
|
7.2 %
|
1,093
|
1,242
|
(12.0 %)
|
91
|
70
|
30.8 %
|
5,357
|
3,175
|
68.8 %
|
Pre-Tax Pre-Provision
Net Income(1)
|
8,227
|
8,824
|
(6.8 %)
|
750
|
225
|
234.0 %
|
573
|
466
|
23.1 %
|
(2,867)
|
(806)
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Loans (inc.
HFS)
|
$
2,506,632
|
$
2,403,460
|
4.3 %
|
$ 248,402
|
$ 201,887
|
23.0 %
|
$ 193,803
|
$ 129,031
|
50.2 %
|
$
27,626
|
$
16,096
|
71.6 %
|
Total
Deposits
|
2,691,415
|
2,687,747
|
0.1 %
|
22,912
|
13,595
|
68.5 %
|
8,049
|
6,977
|
15.4 %
|
-
|
-
|
0.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Net interest
income assumes business line funding requirements are provided by
the Company at its cost of funds plus 100 basis
points.
|
|
|
|
|
|
Net
interest income, noninterest income and noninterest expense
excludes $1.4 million, $1.8 million and $1.4 million, respectively,
related to credit enhanced portfolio managed by a third
party.
|
|
Panacea continues to experience substantial growth as a result
of its nationally-recognized brand. The division has banking
relationships with over 3,000 doctor households across all 50
states. Panacea finished the fourth quarter of 2022 with
approximately $248.4 million in
outstanding loans, an increase of $46.5
million, or 23.0%, from September 30,
2022. At the end of the fourth quarter, Panacea's loan
portfolio was 55% commercial, 24% consumer and 21% student loan
refinance. As highlighted above, Panacea increased its
profitability in the fourth quarter of 2022 on a funded basis by
234% from third quarter levels and expects significant continued
improvements throughout 2023.
The Company's strategy with Panacea centers heavily on making it
a very effective deposit player with its target customers, which
began to bear fruit in the fourth quarter. Panacea-related
deposits increased to $22.9 million
at December 31, 2022, up 69% from
September 30, 2022 and a
substantially higher rate of growth than loan growth for the
quarter. Lastly, Panacea is in the early stages of leveraging
the Company's mortgage capabilities with Primis Mortgage to market
residential mortgage products to its nationwide customer base.
The Life Premium Finance ("LPF") division, launched in late
2021, ended the fourth quarter of 2022 with outstanding balances,
net of deferred fees, of $193.8
million, compared to $129.0
million at the end of the third quarter of 2022. The
LPF 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 pre-tax net income by $2.7 million in the fourth quarter. Higher
expenses related to these team acquisitions ended at the end of the
fourth quarter. The Company expects Primis Mortgage to be
break-even in the first quarter of 2023 and to contribute
$4 to $5
million to net income and 10 to 15 basis points to return on
assets in 2023.
Shareholders' Equity
Book value per share as of December 31,
2022 was $15.98, an increase
of $0.09 from September 30, 2022. Tangible book value per
share(1) at the end of the fourth quarter of 2022 was
$11.61, an increase of $0.07 from September
30, 2022. Shareholders' equity was $394.4 million, or 11.04% of total assets, at
December 31, 2022. Tangible
common equity(1) at December 31,
2022 was $286.5 million, or
8.27% of tangible assets(1). Unrealized losses on
the Company's available-for-sale securities portfolio declined by
$1.6 million to $25.9 million due to marginal 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 February 24, 2023 to shareholders
of record on February 10, 2023.
This is Primis' forty-fifth consecutive quarterly
dividend.
About Primis Financial Corp.
As of December 31, 2022, Primis
had $3.57 billion in total assets,
$2.95 billion in total loans and
$2.72 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 fourth quarter results on Friday,
January 27, 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/236726104. 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 core net interest margin are not measures recognized under GAAP
and therefore are considered non-GAAP financial measures. We use
the term "operating" to describe a financial measure that excludes
income or expense considered to be non-recurring in nature.
Items identified as non-operating are those that, when excluded
from a reported financial measure, provide management or the reader
with a measure that may be more indicative of forward-looking
trends in our business. A reconciliation of these non-GAAP
financial measures to the most comparable GAAP measures is provided
in the Reconciliation of Non-GAAP items table.
Management believes that these non-GAAP financial measures
provide additional useful information about Primis that allows
management and investors to evaluate the ongoing operating results,
financial strength and performance of Primis and provide meaningful
comparison to its peers. Non-GAAP financial measures should not be
considered as an alternative to any measure of performance or
financial condition as promulgated under GAAP, and investors should
consider Primis' performance and financial condition as reported
under GAAP and all other relevant information when assessing the
performance or financial condition of Primis. Non-GAAP
financial measures are not standardized and, therefore, it may not
be possible to compare these measures with other companies that
present measures having the same or similar names.
Non-GAAP financial measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the results or financial condition as
reported under GAAP.
Forward-Looking Statements
This press release and certain of our other filings with the
Securities and Exchange Commission contain statements that
constitute "forward-looking statements" within the meaning of, and
subject to the protections of, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. All statements other than statements of
historical fact are forward-looking statements. Such statements can
generally be identified by such words as "may," "plan,"
"contemplate," "anticipate," "believe," "intend," "continue,"
"expect," "project," "predict," "estimate," "could," "should,"
"would," "will," and other similar words or expressions of the
future or otherwise regarding the outlook for the Company's future
business and financial performance and/or the performance of the
banking industry and economy in general. These forward-looking
statements include, but are not limited to, our expectations
regarding our future operating and financial performance, including
our outlook and long-term goals for future growth and new offerings
and services; our expectations regarding net interest margin;
expectations on our growth strategy, expense management, capital
management and future profitability; expectations on credit quality
and performance; and the assumptions underlying our
expectations.
Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve known and unknown risks and uncertainties which may
cause the actual results, performance or achievements of the
Company to be materially different from the future results,
performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements are based on
the information known to, and current beliefs and expectations of,
the Company's management and are subject to significant risks and
uncertainties. Actual results may differ materially from those
contemplated by such forward-looking statements. Factors that might
cause such differences include, but are not limited to: the
Company's ability to implement its various strategic and growth
initiatives, including its recently established Panacea Financial
and Life Premium Finance Divisions, new digital banking platform,
V1BE fulfillment service and Primis Mortgage Company; competitive
pressures among financial institutions increasing significantly;
changes in applicable laws, rules, or regulations, including
changes to statutes, regulations or regulatory policies or
practices; changes in management's plans for the future; credit
risk associated with our lending activities; changes in interest
rates, inflation, loan demand, real estate values, or competition,
as well as labor shortages and supply chain disruptions; changes in
accounting principles, policies, or guidelines; adverse results
from current or future litigation, regulatory examinations or other
legal and/or regulatory actions, 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.
(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.
|
(2)
|
Per S&P
Global. Includes publicly-traded banks with assets between $2
billion and $10 billion with reported ratios as of December 31,
2022.
|
Primis Financial
Corp.
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|
|
|
|
|
Financial Highlights
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
For Three Months
Ended:
|
|
Variance - 4Q 2022
vs.
|
|
|
For Twelve Months
Ended:
|
|
Variance
|
|
Selected Performance
Ratios:
|
4Q
2022
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
|
3Q
2022
|
|
4Q
2021
|
|
|
4Q
2022
|
4Q
2021
|
|
YTD
|
|
Return on average
assets from continuing operations
|
0.36 %
|
0.61 %
|
0.63 %
|
0.55 %
|
0.88 %
|
|
(25)
|
bps
|
(53)
|
bps
|
|
0.53 %
|
0.92 %
|
|
(39)
|
bps
|
Operating return on
average assets from continuing operations(1)
|
0.09 %
|
0.64 %
|
0.76 %
|
0.57 %
|
0.83 %
|
|
(55)
|
|
(74)
|
|
|
0.51 %
|
0.92 %
|
|
(41)
|
|
Pre-tax pre-provision
return on average assets from continuing
operations(1)
|
1.33 %
|
1.16 %
|
0.83 %
|
0.75 %
|
0.98 %
|
|
17
|
|
35
|
|
|
0.68 %
|
1.02 %
|
|
(34)
|
|
Pre-tax pre-provision
operating return on average assets from continuing
operations(1)
|
0.78 %
|
1.05 %
|
1.00 %
|
0.77 %
|
0.91 %
|
|
(28)
|
|
(14)
|
|
|
0.55 %
|
1.01 %
|
|
(46)
|
|
Return on average
equity from continuing operations
|
3.07 %
|
4.98 %
|
4.92 %
|
4.49 %
|
7.37 %
|
|
(191)
|
|
(430)
|
|
|
4.37 %
|
7.67 %
|
|
(330)
|
|
Operating return on
average equity from continuing operations(1)
|
0.75 %
|
5.22 %
|
5.93 %
|
4.58 %
|
6.94 %
|
|
(447)
|
|
(618)
|
|
|
4.13 %
|
7.59 %
|
|
(346)
|
|
Operating return on
average tangible equity from continuing
operations(1)
|
1.03 %
|
7.14 %
|
8.08 %
|
6.16 %
|
9.36 %
|
|
(611)
|
|
(832)
|
|
|
5.62 %
|
10.33 %
|
|
(471)
|
|
Cost of
funds
|
|
1.19 %
|
0.71 %
|
0.53 %
|
0.52 %
|
0.56 %
|
|
48
|
|
63
|
|
|
0.75 %
|
0.65 %
|
|
10
|
|
Net interest
margin
|
3.67 %
|
3.57 %
|
3.33 %
|
2.96 %
|
3.00 %
|
|
10
|
|
67
|
|
|
3.39 %
|
3.01 %
|
|
38
|
|
Core net interest
margin(1)
|
3.51 %
|
3.58 %
|
3.35 %
|
2.96 %
|
2.79 %
|
|
(7)
|
|
72
|
|
|
3.35 %
|
2.79 %
|
|
56
|
|
Gross loans to
deposits
|
108.32 %
|
101.06 %
|
97.99 %
|
89.11 %
|
84.68 %
|
|
7
|
pts
|
24
|
pts
|
|
108.32 %
|
84.68 %
|
|
24
|
pts
|
Efficiency ratio from
continuing operations
|
71.71 %
|
71.85 %
|
75.01 %
|
76.11 %
|
68.16 %
|
|
(0)
|
|
355
|
|
|
73.34 %
|
67.43 %
|
|
590
|
|
Operating efficiency
ratio from continuing operations(1)
|
79.89 %
|
73.64 %
|
70.23 %
|
75.65 %
|
69.63 %
|
|
6
|
|
1,025
|
|
|
75.05 %
|
67.61 %
|
|
743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
continuing operations - Basic
|
$
0.13
|
$
0.21
|
$
0.20
|
$
0.19
|
$
0.31
|
|
(38.10)
|
%
|
(58.06)
|
%
|
|
$
0.72
|
$
1.27
|
|
(43.31)
|
%
|
Earnings per share from
discontinued operations - Basic
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
$
-
|
$
0.01
|
|
(100.00)
|
|
Earnings per share -
Basic
|
$
0.13
|
$
0.21
|
$
0.20
|
$
0.19
|
$
0.31
|
|
(38.10)
|
|
(58.06)
|
|
|
$
0.72
|
$
1.28
|
|
(43.75)
|
|
Operating earnings per
share from continuing operations - Basic(1)
|
$
0.03
|
$
0.22
|
$
0.25
|
$
0.19
|
$
0.29
|
|
(85.71)
|
|
(89.54)
|
|
|
$
0.68
|
$
1.26
|
|
(45.71)
|
|
Earnings per share from
continuing operations - Diluted
|
$
0.12
|
$
0.20
|
$
0.20
|
$
0.19
|
$
0.31
|
|
(40.00)
|
|
(61.29)
|
|
|
$
0.72
|
$
1.26
|
|
(42.86)
|
|
Earnings per share from
discontinued operations - Diluted
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
-
|
0.01
|
|
(100.00)
|
|
Earnings per share -
Diluted
|
$
0.12
|
$
0.20
|
$
0.20
|
$
0.19
|
$
0.31
|
|
(40.00)
|
|
(61.29)
|
|
|
$
0.72
|
$
1.27
|
|
(43.31)
|
|
Operating earnings per
share from continuing operations - Diluted(1)
|
$
0.03
|
$
0.21
|
$
0.24
|
$
0.19
|
$
0.29
|
|
(85.70)
|
|
(89.50)
|
|
|
$
0.68
|
$
1.25
|
|
(45.59)
|
|
Book value per
share
|
$
15.98
|
$
15.89
|
$
16.17
|
$
16.42
|
$
16.76
|
|
0.57
|
|
(4.65)
|
|
|
$
15.98
|
$
16.76
|
|
(4.65)
|
|
Tangible book value per
share(1)
|
$
11.61
|
$
11.54
|
$
11.77
|
$
12.11
|
$
12.43
|
|
0.61
|
|
(6.60)
|
|
|
$
11.61
|
$
12.43
|
|
(6.60)
|
|
Cash dividend per
share
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
$
0.10
|
|
-
|
|
-
|
|
|
$
0.40
|
$
0.40
|
|
-
|
|
Weighted average shares
outstanding - Basic
|
24,601,108
|
24,576,887
|
24,562,753
|
24,503,945
|
24,476,569
|
|
0.10
|
|
0.51
|
|
|
24,561,483
|
24,438,309
|
|
0.50
|
|
Weighted average shares
outstanding - Diluted
|
24,685,663
|
24,688,422
|
24,681,425
|
24,662,588
|
24,653,363
|
|
(0.01)
|
|
0.13
|
|
|
24,668,838
|
24,600,555
|
|
0.28
|
|
Shares outstanding at
end of period
|
24,680,097
|
24,650,239
|
24,650,239
|
24,622,739
|
24,574,619
|
|
0.12
|
%
|
0.43
|
%
|
|
24,680,097
|
24,574,619
|
|
0.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
as a percent of total assets, excluding SBA guarantees
|
0.98 %
|
1.11 %
|
0.61 %
|
0.47 %
|
0.44 %
|
|
(13)
|
bps
|
53
|
bps
|
|
0.98 %
|
0.44 %
|
|
53
|
bps
|
Net charge-offs
(recoveries) as a percent of average loans (annualized)
|
0.74 %
|
0.17 %
|
(0.07 %)
|
(0.03 %)
|
(0.00 %)
|
|
57
|
|
74
|
|
|
0.23 %
|
0.06 %
|
|
17
|
|
Allowance for credit
losses to total loans
|
1.17 %
|
1.17 %
|
1.15 %
|
1.23 %
|
1.24 %
|
|
0
|
|
(7)
|
|
|
1.17 %
|
1.24 %
|
|
(7)
|
|
Allowance for credit
losses to total loans (excluding PPP loans)
|
1.17 %
|
1.17 %
|
1.16 %
|
1.24 %
|
1.29 %
|
|
0
|
|
(11)
|
|
|
1.17 %
|
1.29 %
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
11.04 %
|
11.67 %
|
12.32 %
|
12.55 %
|
12.10 %
|
|
(63)
|
bps
|
(105)
|
bps
|
|
|
|
|
|
|
Tangible common equity
to tangible assets(1)
|
8.27 %
|
8.73 %
|
9.27 %
|
9.57 %
|
9.26 %
|
|
(46)
|
|
(99)
|
|
|
|
|
|
|
|
Leverage ratio
(2)
|
|
9.48 %
|
10.11 %
|
10.31 %
|
9.77 %
|
9.41 %
|
|
(63)
|
|
7
|
|
|
|
|
|
|
|
Common equity tier 1
capital ratio (2)
|
10.54 %
|
11.17 %
|
11.59 %
|
12.64 %
|
13.09 %
|
|
(63)
|
|
(255)
|
|
|
|
|
|
|
|
Tier 1 risk-based
capital ratio (2)
|
10.88 %
|
11.53 %
|
11.97 %
|
13.06 %
|
13.52 %
|
|
(65)
|
|
(264)
|
|
|
|
|
|
|
|
Total risk-based
capital ratio (2)
|
14.80 %
|
15.71 %
|
16.29 %
|
17.66 %
|
18.52 %
|
|
(91)
|
|
(372)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Reconciliation of Non-GAAP financial
measures.
|
|
|
|
|
|
(2) December 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 - 4Q 2022
vs.
|
|
Condensed
Consolidated Balance Sheets (unaudited)
|
4Q
2022
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
|
3Q
2022
|
|
4Q
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
77,859
|
$
97,738
|
$
70,721
|
$
298,230
|
$
530,167
|
|
(20.34)
|
%
|
(85.31)
|
%
|
Investment
securities-available for sale
|
236,315
|
238,891
|
257,180
|
271,626
|
271,332
|
|
(1.08)
|
|
(12.91)
|
|
Investment
securities-held to maturity
|
13,520
|
14,391
|
14,978
|
16,138
|
22,940
|
|
(6.05)
|
|
(41.06)
|
|
Loans held for
sale
|
27,626
|
13,388
|
16,096
|
-
|
-
|
|
106.35
|
|
-
|
|
Loans receivable, net
of deferred fees
|
2,948,836
|
2,737,086
|
2,628,797
|
2,393,669
|
2,339,986
|
|
7.74
|
|
26.02
|
|
Allowance for credit
losses
|
(34,544)
|
(31,956)
|
(30,209)
|
(29,379)
|
(29,105)
|
|
8.10
|
|
18.69
|
|
|
Net loans
|
|
2,914,292
|
2,705,130
|
2,598,588
|
2,364,290
|
2,310,881
|
|
7.73
|
|
26.11
|
|
Stock in Federal
Reserve Bank and Federal Home Loan Bank
|
25,815
|
16,689
|
12,940
|
11,927
|
15,521
|
|
54.68
|
|
66.32
|
|
Bank premises and
equipment, net
|
25,257
|
25,534
|
26,113
|
29,872
|
30,410
|
|
(1.08)
|
|
(16.95)
|
|
Operating lease
right-of-use assets
|
5,335
|
5,511
|
4,777
|
5,305
|
5,866
|
|
(3.19)
|
|
(9.05)
|
|
Goodwill and other
intangible assets
|
107,863
|
108,170
|
108,524
|
106,075
|
106,416
|
|
(0.28)
|
|
1.36
|
|
Assets held for sale,
net
|
3,115
|
3,127
|
3,127
|
-
|
-
|
|
(0.38)
|
|
100.00
|
|
Bank-owned life
insurance
|
67,201
|
67,519
|
67,339
|
67,099
|
66,724
|
|
(0.47)
|
|
0.71
|
|
Other real estate
owned
|
-
|
1,041
|
1,041
|
1,041
|
1,163
|
|
(100.00)
|
|
(100.00)
|
|
Deferred tax assets,
net
|
18,289
|
17,892
|
14,658
|
12,380
|
9,571
|
|
2.22
|
|
91.09
|
|
Other assets
|
|
49,050
|
42,141
|
40,496
|
35,893
|
36,362
|
|
16.39
|
|
34.89
|
|
|
Total assets
|
$
3,571,537
|
$
3,357,162
|
$
3,236,578
|
$
3,219,876
|
$
3,407,353
|
|
6.39
|
%
|
4.82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
582,556
|
$
687,272
|
$
653,181
|
$
559,682
|
$
530,282
|
|
(15.24)
|
%
|
9.86
|
%
|
NOW accounts
|
|
617,687
|
637,786
|
677,237
|
730,235
|
849,738
|
|
(3.15)
|
|
(27.31)
|
|
Money market
accounts
|
811,365
|
803,050
|
802,953
|
831,580
|
799,759
|
|
1.04
|
|
1.45
|
|
Savings
accounts
|
245,713
|
217,220
|
220,211
|
225,291
|
222,862
|
|
13.12
|
|
10.25
|
|
Time
deposits
|
|
465,057
|
362,992
|
329,223
|
339,456
|
360,575
|
|
28.12
|
|
28.98
|
|
Total deposits
|
|
2,722,378
|
2,708,320
|
2,682,805
|
2,686,244
|
2,763,216
|
|
0.52
|
|
(1.48)
|
|
Securities sold under
agreements to repurchase - short term
|
6,445
|
9,886
|
10,020
|
11,231
|
9,962
|
|
(34.81)
|
|
(35.30)
|
|
Federal Home Loan Bank
advances
|
325,000
|
125,000
|
25,000
|
-
|
100,000
|
|
160.00
|
|
225.00
|
|
Subordinated debt and
notes
|
95,312
|
95,241
|
95,170
|
95,099
|
95,028
|
|
0.07
|
|
0.30
|
|
Operating lease
liabilities
|
5,767
|
6,044
|
5,299
|
5,897
|
6,498
|
|
(4.58)
|
|
(11.25)
|
|
Other
liabilities
|
|
22,232
|
20,863
|
19,647
|
17,210
|
20,768
|
|
6.56
|
|
7.05
|
|
|
Total
liabilities
|
3,177,134
|
2,965,354
|
2,837,941
|
2,815,681
|
2,995,472
|
|
7.14
|
|
6.06
|
|
Stockholders'
equity
|
394,403
|
391,808
|
398,637
|
404,195
|
411,881
|
|
0.66
|
|
(4.24)
|
|
|
Total liabilities and
stockholders' equity
|
$
3,571,537
|
$
3,357,162
|
$
3,236,578
|
$
3,219,876
|
$
3,407,353
|
|
6.39
|
%
|
4.82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity(1)
|
$
286,540
|
$
283,638
|
$
290,113
|
$
298,120
|
$
305,465
|
|
1.02
|
%
|
(6.20)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
For Three Months
Ended:
|
|
Variance - 4Q 2022
vs.
|
|
|
For Twelve Months
Ended:
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Operations (unaudited)
|
4Q
2022
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
|
3Q
2022
|
|
4Q
2021
|
|
|
4Q
2022
|
4Q
2021
|
|
YTD
|
|
Interest and dividend
income
|
$
38,635
|
$
32,596
|
$
28,258
|
$
26,585
|
$
28,503
|
|
18.53
|
%
|
35.55
|
%
|
|
$
126,074
|
$
113,243
|
|
11.33
|
%
|
Interest
expense
|
|
9,058
|
5,146
|
3,652
|
3,731
|
4,262
|
|
76.02
|
|
112.53
|
|
|
21,587
|
19,040
|
|
13.38
|
|
|
Net interest
income
|
29,577
|
27,450
|
24,606
|
22,854
|
24,241
|
|
7.75
|
|
22.01
|
|
|
104,487
|
94,203
|
|
10.92
|
|
Provision for (recovery
of) credit losses
|
7,860
|
2,890
|
422
|
99
|
(1,299)
|
|
171.97
|
|
NM
|
|
|
11,271
|
(5,801)
|
|
(294.29)
|
|
|
Net interest income
after provision for (recovery of) credit losses
|
21,717
|
24,560
|
24,184
|
22,755
|
25,540
|
|
(11.58)
|
|
(14.97)
|
|
|
93,216
|
100,004
|
|
(6.79)
|
|
Account maintenance and
deposit service fees
|
1,427
|
1,525
|
1,442
|
1,351
|
1,420
|
|
(6.43)
|
|
0.49
|
|
|
5,745
|
7,309
|
|
(21.40)
|
|
Income from bank-owned
life insurance
|
847
|
394
|
378
|
375
|
535
|
|
114.97
|
|
58.32
|
|
|
1,994
|
1,687
|
|
18.20
|
|
Gain on debt
extinguishment
|
-
|
-
|
-
|
-
|
573
|
|
-
|
|
(100.00)
|
|
|
-
|
573
|
|
(100.00)
|
|
Mortgage banking
income
|
2,264
|
2,197
|
593
|
-
|
-
|
|
3.05
|
|
100.00
|
|
|
5,054
|
-
|
|
100.00
|
|
Gain on sale of LLC
investments
|
4,411
|
-
|
-
|
-
|
-
|
|
100.00
|
|
100.00
|
|
|
4,710
|
-
|
|
100.00
|
|
Other
|
|
2,039
|
1,504
|
217
|
364
|
359
|
|
35.57
|
|
NM
|
|
|
3,825
|
1,566
|
|
144.25
|
|
|
Noninterest
income
|
10,988
|
5,620
|
2,630
|
2,090
|
2,887
|
|
95.52
|
|
280.60
|
|
|
21,328
|
11,135
|
|
91.54
|
|
Employee compensation
and benefits
|
16,213
|
12,594
|
10,573
|
9,625
|
9,527
|
|
28.74
|
|
70.18
|
|
|
49,005
|
36,741
|
|
33.38
|
|
Occupancy and equipment
expenses
|
2,899
|
2,857
|
2,546
|
2,557
|
2,487
|
|
1.47
|
|
16.57
|
|
|
10,859
|
9,578
|
|
13.37
|
|
Amortization of core
deposit intangible
|
317
|
326
|
341
|
341
|
342
|
|
(2.76)
|
|
(7.31)
|
|
|
1,325
|
1,364
|
|
(2.86)
|
|
Virginia franchise tax
expense
|
814
|
813
|
814
|
813
|
733
|
|
0.12
|
|
11.05
|
|
|
3,254
|
2,899
|
|
12.25
|
|
Data processing
expense
|
1,702
|
1,528
|
1,293
|
1,197
|
934
|
|
11.39
|
|
82.23
|
|
|
6,013
|
3,850
|
|
56.18
|
|
Telecommunication and
communication expense
|
343
|
342
|
366
|
382
|
439
|
|
0.29
|
|
(21.87)
|
|
|
1,433
|
1,790
|
|
(19.94)
|
|
Net (gain) loss on
other real estate owned
|
131
|
-
|
-
|
(59)
|
70
|
|
100.00
|
|
87.14
|
|
|
72
|
87
|
|
(17.24)
|
|
Loss on bank premises
and equipment
|
-
|
64
|
620
|
-
|
-
|
|
(100.00)
|
|
-
|
|
|
684
|
-
|
|
100.00
|
|
Professional
fees
|
|
1,605
|
1,261
|
827
|
1,387
|
1,238
|
|
27.28
|
|
29.64
|
|
|
4,787
|
5,467
|
|
(12.44)
|
|
Other
expenses
|
|
5,066
|
3,976
|
3,050
|
2,744
|
2,722
|
|
27.41
|
|
86.11
|
|
|
14,836
|
9,624
|
|
54.16
|
|
|
Noninterest
expense
|
29,090
|
23,761
|
20,430
|
18,987
|
18,492
|
|
22.43
|
|
57.31
|
|
|
92,268
|
71,400
|
|
29.23
|
|
Income from continuing
operations before income taxes
|
3,615
|
6,419
|
6,384
|
5,858
|
9,935
|
|
(43.68)
|
|
(63.61)
|
|
|
22,276
|
39,739
|
|
(43.94)
|
|
Income tax
expense
|
530
|
1,365
|
1,375
|
1,265
|
2,284
|
|
(61.17)
|
|
(76.80)
|
|
|
4,535
|
8,721
|
|
(48.00)
|
|
|
Income from continuing
operations
|
3,085
|
5,054
|
5,009
|
4,593
|
7,651
|
|
(38.96)
|
|
(59.68)
|
|
|
17,741
|
31,018
|
|
(42.80)
|
|
Income (loss) from
discontinued operations before income taxes
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
-
|
294
|
|
(100.00)
|
|
Income tax expense
(benefit)
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
-
|
64
|
|
(100.00)
|
|
|
Income (loss) from
discontinued operations
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
-
|
230
|
|
(100.00)
|
|
|
Net
income
|
$
3,085
|
$
5,054
|
$
5,009
|
$
4,593
|
$
7,651
|
|
(38.96)
|
%
|
(59.68)
|
%
|
|
$ 17,741
|
$ 31,248
|
|
(43.23)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
Reconciliation of Non-GAAP financial
measures.
|
|
|
|
|
|
|
|
|
|
|
|
The company
defines "NM" as not meaningful for increases or decreases greater
than 300 percent.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primis Financial
Corp.
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
As
Of:
|
|
Variance - 4Q 2022
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
Composition
|
4Q
2022
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
|
3Q
2022
|
|
4Q
2021
|
|
Loans held for
sale
|
$
27,626
|
$
13,388
|
$
16,096
|
$
-
|
$
-
|
|
106.35
|
%
|
100.00
|
%
|
Loans secured by real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
- owner occupied
|
461,126
|
437,636
|
433,840
|
406,285
|
389,109
|
|
5.37
|
|
18.51
|
|
|
Commercial real estate
- non-owner occupied
|
581,168
|
573,732
|
600,436
|
615,682
|
590,523
|
|
1.30
|
|
(1.58)
|
|
|
Secured by
farmland
|
8,436
|
8,852
|
9,305
|
8,896
|
10,003
|
|
(4.70)
|
|
(15.67)
|
|
|
Construction and land
development
|
148,762
|
138,371
|
117,604
|
116,365
|
121,520
|
|
7.51
|
|
22.42
|
|
|
Residential 1-4
family
|
610,919
|
616,764
|
607,548
|
575,946
|
548,830
|
|
(0.95)
|
|
11.31
|
|
|
Multi-family
residential
|
140,321
|
137,253
|
144,406
|
152,266
|
164,071
|
|
2.24
|
|
(14.48)
|
|
|
Home equity lines of
credit
|
65,152
|
65,852
|
69,860
|
72,440
|
73,877
|
|
(1.06)
|
|
(11.81)
|
|
|
Total real estate
loans
|
2,015,884
|
1,978,460
|
1,982,999
|
1,947,880
|
1,897,933
|
|
1.89
|
|
6.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans
|
523,110
|
470,934
|
448,582
|
336,961
|
303,697
|
|
11.08
|
|
72.25
|
|
Paycheck Protection
Program loans
|
4,564
|
8,014
|
17,525
|
31,404
|
77,319
|
|
(43.05)
|
|
(94.10)
|
|
Consumer
loans
|
|
405,278
|
279,678
|
179,691
|
77,424
|
61,037
|
|
44.91
|
|
NM
|
|
|
Loans receivable, net
of deferred fees
|
$
2,948,836
|
$
2,737,086
|
$
2,628,797
|
$
2,393,669
|
$
2,339,986
|
|
7.74
|
%
|
26.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by Risk
Grade:
|
|
|
|
|
|
|
|
|
|
|
Pass, not
graded
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
|
-
|
%
|
-
|
%
|
Pass Grade
1 - Highest Quality
|
600
|
616
|
609
|
786
|
641
|
|
(2.60)
|
|
(6.40)
|
|
Pass Grade
2 - Good Quality
|
209,605
|
149,389
|
129,571
|
8,734
|
103,496
|
|
40.31
|
|
102.52
|
|
Pass Grade
3 - Satisfactory Quality
|
1,591,364
|
1,520,364
|
1,513,054
|
1,413,480
|
1,327,718
|
|
4.67
|
|
19.86
|
|
Pass Grade
4 - Pass
|
1,073,952
|
984,012
|
890,709
|
895,197
|
836,610
|
|
9.14
|
|
28.37
|
|
Pass Grade
5 - Special Mention
|
32,278
|
35,410
|
67,736
|
51,884
|
31,112
|
|
(8.84)
|
|
3.75
|
|
Grade 6 -
Substandard
|
41,037
|
47,295
|
27,118
|
23,588
|
40,409
|
|
(13.23)
|
|
1.55
|
|
Grade 7 -
Doubtful
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
Grade 8 -
Loss
|
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
Total loans
|
|
$
2,948,836
|
$
2,737,086
|
$
2,628,797
|
$
2,393,669
|
$
2,339,986
|
|
7.74
|
%
|
26.02
|
%
|
|
|
|
|
|
|
(Dollars in
thousands)
|
As Of or For Three
Months Ended:
|
|
|
|
|
|
|
|
|
Asset Quality
Information
|
4Q
2022
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
Allowance for Credit
Losses:
|
|
|
Balance at beginning of
period
|
$
(31,956)
|
$
(30,209)
|
$
(29,379)
|
$
(29,105)
|
$
(30,386)
|
(Provision for) /
recovery of allowance for credit losses
|
(7,860)
|
(2,890)
|
(422)
|
(99)
|
1,299
|
Net
charge-offs
|
|
5,272
|
1,143
|
(408)
|
(175)
|
(18)
|
Ending
balance
|
|
$
(34,544)
|
$
(31,956)
|
$
(30,209)
|
$
(29,379)
|
$
(29,105)
|
|
|
|
|
|
|
|
|
Reserve for Unfunded
Commitments:
|
|
|
Balance at beginning of
period
|
$
(1,380)
|
$
(1,069)
|
$
(1,237)
|
$
(977)
|
$
(1,129)
|
(Expense for) /
recovery of unfunded loan commitment reserve
|
(36)
|
(311)
|
168
|
(260)
|
152
|
Total Reserve for
Unfunded Commitments
|
$
(1,416)
|
$
(1,380)
|
$
(1,069)
|
$
(1,237)
|
$
(977)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Of:
|
|
Variance - 4Q 2022
vs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing
Assets:
|
4Q
2022
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
|
3Q
2022
|
|
4Q
2021
|
|
Nonaccrual
loans
|
$
35,484
|
$
36,851
|
$
19,635
|
$
14,941
|
$
15,029
|
|
(3.71)
|
%
|
136.10
|
%
|
Accruing loans
delinquent 90 days or more
|
3,361
|
1,855
|
1,512
|
1,817
|
283
|
|
81.19
|
|
NM
|
|
Total non-performing
loans
|
38,845
|
38,706
|
21,147
|
16,758
|
15,312
|
|
0.36
|
|
153.69
|
|
Other real estate
owned
|
-
|
1,041
|
1,041
|
1,041
|
1,163
|
|
(100.00)
|
|
(100.00)
|
|
Total non-performing
assets
|
$
38,845
|
$
39,747
|
$
22,188
|
$
17,799
|
$
16,475
|
|
(2.27)
|
|
135.78
|
|
SBA guaranteed portion
of non-performing loans
|
$
3,969
|
$
2,573
|
$
2,319
|
$
2,651
|
$
1,388
|
|
54.26
|
|
185.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructuring
|
$
3,599
|
$
3,170
|
$
2,695
|
$
3,103
|
$
3,401
|
|
13.53
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Twelve Months
Ended:
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet
|
4Q
2022
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
|
3Q
2022
|
|
4Q
2021
|
|
|
4Q
2022
|
4Q
2021
|
|
YTD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
22,413
|
$
21,199
|
$
6,936
|
$
-
|
$
-
|
|
5.73
|
%
|
100.00
|
%
|
|
$ 12,722
|
$
-
|
|
100.00
|
%
|
Loans, net of deferred
fees
|
2,824,892
|
2,669,605
|
2,509,978
|
2,360,782
|
2,317,260
|
|
5.82
|
|
21.91
|
|
|
2,592,801
|
2,342,802
|
|
10.67
|
|
Investment
securities
|
253,345
|
269,780
|
287,722
|
302,431
|
258,265
|
|
(6.09)
|
|
(1.91)
|
|
|
278,162
|
224,505
|
|
23.90
|
|
Other earning
assets
|
92,604
|
90,268
|
158,817
|
466,952
|
632,841
|
|
2.59
|
|
(85.37)
|
|
|
200,828
|
560,994
|
|
(64.20)
|
|
Total earning
assets
|
3,193,254
|
3,050,852
|
2,963,453
|
3,130,165
|
3,208,366
|
|
4.67
|
|
(0.47)
|
|
|
3,084,513
|
3,128,301
|
|
(1.40)
|
|
Investment in STM -
Held for sale
|
—
|
—
|
—
|
—
|
9,941
|
|
-
|
|
(100.00)
|
|
|
—
|
11,974
|
|
(100.00)
|
|
Other assets
|
|
246,593
|
234,355
|
228,893
|
226,320
|
229,718
|
|
5.22
|
|
7.35
|
|
|
234,097
|
228,703
|
|
2.36
|
|
Total
assets
|
|
$
3,439,847
|
$
3,285,207
|
$
3,192,346
|
$
3,356,485
|
$
3,448,025
|
|
4.71
|
%
|
(0.24)
|
%
|
|
$
3,318,610
|
$
3,368,978
|
|
(1.50)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
648,151
|
$
665,020
|
$
596,714
|
$
545,530
|
$
547,504
|
|
(2.54)
|
%
|
18.38
|
%
|
|
$
614,285
|
$
522,683
|
|
17.53
|
%
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and other demand
accounts
|
624,868
|
660,387
|
695,481
|
817,430
|
878,652
|
|
(5.38)
|
|
(28.88)
|
|
|
698,907
|
860,482
|
|
(18.78)
|
|
Money market
accounts
|
805,303
|
803,860
|
810,781
|
809,460
|
784,942
|
|
0.18
|
|
2.59
|
|
|
807,330
|
726,059
|
|
11.19
|
|
Savings
accounts
|
232,543
|
219,167
|
222,274
|
224,716
|
219,823
|
|
6.10
|
|
5.79
|
|
|
224,682
|
208,202
|
|
7.92
|
|
Time
deposits
|
|
379,088
|
343,986
|
329,198
|
350,368
|
368,603
|
|
10.20
|
|
2.84
|
|
|
350,720
|
405,670
|
|
(13.55)
|
|
Total
Deposits
|
2,689,953
|
2,692,420
|
2,654,448
|
2,747,504
|
2,799,524
|
|
(0.09)
|
|
(3.91)
|
|
|
2,695,924
|
2,723,096
|
|
(1.00)
|
|
Borrowings
|
|
325,100
|
166,621
|
107,784
|
171,293
|
209,215
|
|
95.11
|
|
55.39
|
|
|
193,050
|
218,955
|
|
(11.83)
|
|
Total
Funding
|
|
3,015,053
|
2,859,041
|
2,762,232
|
2,918,797
|
3,008,739
|
|
5.46
|
|
0.21
|
|
|
2,888,974
|
2,942,051
|
|
(1.80)
|
|
Other
Liabilities
|
|
26,318
|
23,832
|
22,095
|
23,057
|
27,407
|
|
10.43
|
|
(3.97)
|
|
|
23,825
|
22,358
|
|
6.56
|
|
Stockholders'
equity
|
398,476
|
402,334
|
408,019
|
414,631
|
411,879
|
|
(0.96)
|
|
(3.25)
|
|
|
405,811
|
404,569
|
|
0.31
|
|
Total liabilities
and stockholders' equity
|
$
3,439,847
|
$
3,285,207
|
$
3,192,346
|
$
3,356,485
|
$
3,448,025
|
|
4.71
|
%
|
(0.24)
|
%
|
|
$
3,318,610
|
$
3,368,978
|
|
(1.50)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average PPP
loans
|
$
5,926
|
$
11,868
|
$
23,950
|
$
51,491
|
$
102,078
|
|
(50.07)
|
%
|
(94.19)
|
%
|
|
$ 23,152
|
$
229,447
|
|
(89.91)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
349
|
$
263
|
$
93
|
$
-
|
$
-
|
|
32.70
|
%
|
100.00
|
%
|
|
$
705
|
$
-
|
|
100.00
|
%
|
Loans
|
|
|
35,881
|
30,260
|
26,272
|
24,749
|
26,701
|
|
18.58
|
|
34.38
|
|
|
117,162
|
107,021
|
|
9.48
|
|
Investment
securities
|
1,571
|
1,518
|
1,445
|
1,430
|
1,242
|
|
3.49
|
|
26.49
|
|
|
5,964
|
4,440
|
|
34.32
|
|
Other earning
assets
|
834
|
555
|
448
|
406
|
560
|
|
50.27
|
|
48.93
|
|
|
2,243
|
1,782
|
|
25.87
|
|
Total
Earning Assets
|
38,635
|
32,596
|
28,258
|
26,585
|
28,503
|
|
18.53
|
|
35.55
|
|
|
126,074
|
113,243
|
|
11.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
DDA
|
-
|
-
|
-
|
-
|
-
|
|
-
|
|
-
|
|
|
-
|
-
|
|
-
|
|
NOW and other
interest-bearing demand accounts
|
544
|
536
|
556
|
666
|
832
|
|
1.49
|
|
(34.62)
|
|
|
2,303
|
4,010
|
|
(42.57)
|
|
Money market
accounts
|
2,894
|
1,667
|
938
|
859
|
952
|
|
73.61
|
|
203.99
|
|
|
6,357
|
4,246
|
|
49.72
|
|
Savings
accounts
|
305
|
141
|
142
|
149
|
154
|
|
116.31
|
|
98.05
|
|
|
737
|
618
|
|
19.26
|
|
Time
deposits
|
|
1,567
|
943
|
674
|
700
|
809
|
|
66.17
|
|
93.70
|
|
|
3,884
|
4,238
|
|
(8.35)
|
|
Total Deposit
Costs
|
5,310
|
3,287
|
2,310
|
2,374
|
2,747
|
|
61.55
|
|
93.30
|
|
|
13,281
|
13,112
|
|
1.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
3,748
|
1,859
|
1,342
|
1,357
|
1,515
|
|
101.61
|
|
147.39
|
|
|
8,306
|
5,928
|
|
40.11
|
|
Total Funding
Costs
|
9,058
|
5,146
|
3,652
|
3,731
|
4,262
|
|
76.02
|
|
112.53
|
|
|
21,587
|
19,040
|
|
13.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
$
29,577
|
$
27,450
|
$
24,606
|
$
22,854
|
$
24,241
|
|
7.75
|
%
|
22.01
|
%
|
|
$
104,487
|
$ 94,203
|
|
10.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: SBA PPP
loan interest and fee income
|
$
14
|
$
28
|
$
59
|
$
435
|
$
2,503
|
|
(50.00)
|
%
|
(99.44)
|
%
|
|
$
533
|
$ 13,985
|
|
(96.19)
|
%
|
Memo: SBA PPP
loan funding costs
|
$
5
|
$
10
|
$
21
|
$
44
|
$
90
|
|
(50.00)
|
%
|
(94.44)
|
%
|
|
$
81
|
$
803
|
|
(89.91)
|
%
|
Memo: Revenue impact of
third-party managed portfolio
|
$
1,369
|
$
-
|
$
-
|
$
-
|
$
-
|
|
100.00
|
%
|
100.00
|
%
|
|
$
1,369
|
$
-
|
|
100.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
6.18 %
|
4.92 %
|
5.38 %
|
0.00 %
|
0.00 %
|
|
126
|
bps
|
618
|
bps
|
|
5.54 %
|
0.00 %
|
|
554
|
bps
|
Loans
|
|
|
5.04 %
|
4.50 %
|
4.20 %
|
4.25 %
|
4.57 %
|
|
54
|
|
47
|
|
|
4.52 %
|
4.57 %
|
|
(5)
|
|
Investments
|
|
2.46 %
|
2.23 %
|
2.01 %
|
1.92 %
|
1.91 %
|
|
23
|
|
55
|
|
|
2.14 %
|
1.98 %
|
|
16
|
|
Other Earning
Assets
|
3.57 %
|
2.44 %
|
1.13 %
|
0.35 %
|
0.35 %
|
|
113
|
|
322
|
|
|
1.12 %
|
0.32 %
|
|
80
|
|
Total Earning
Assets
|
4.80 %
|
4.24 %
|
3.82 %
|
3.44 %
|
3.52 %
|
|
56
|
|
128
|
|
|
4.09 %
|
3.62 %
|
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
|
0.35 %
|
0.32 %
|
0.32 %
|
0.33 %
|
0.38 %
|
|
3
|
|
(3)
|
|
|
0.33 %
|
0.47 %
|
|
(14)
|
|
MMDA
|
|
1.43 %
|
0.82 %
|
0.46 %
|
0.43 %
|
0.48 %
|
|
61
|
|
95
|
|
|
0.79 %
|
0.58 %
|
|
21
|
|
Savings
|
|
0.52 %
|
0.26 %
|
0.26 %
|
0.27 %
|
0.28 %
|
|
26
|
|
24
|
|
|
0.33 %
|
0.30 %
|
|
3
|
|
CDs
|
|
|
1.64 %
|
1.09 %
|
0.82 %
|
0.81 %
|
0.87 %
|
|
55
|
|
77
|
|
|
1.11 %
|
1.04 %
|
|
7
|
|
Cost of
Interest Bearing Deposits
|
1.03 %
|
0.64 %
|
0.45 %
|
0.44 %
|
0.48 %
|
|
39
|
|
55
|
|
|
0.64 %
|
0.60 %
|
|
4
|
|
Cost of
Deposits
|
0.78 %
|
0.48 %
|
0.35 %
|
0.35 %
|
0.39 %
|
|
30
|
|
39
|
|
|
0.49 %
|
0.48 %
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Other
Funding
|
|
4.57 %
|
4.43 %
|
4.99 %
|
3.22 %
|
2.87 %
|
|
14
|
|
170
|
|
|
4.30 %
|
2.71 %
|
|
159
|
|
Total Cost of
Funds
|
1.19 %
|
0.71 %
|
0.53 %
|
0.52 %
|
0.56 %
|
|
48
|
|
63
|
|
|
0.75 %
|
0.65 %
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin
|
3.67 %
|
3.57 %
|
3.33 %
|
2.96 %
|
3.00 %
|
|
10
|
|
67
|
|
|
3.39 %
|
3.01 %
|
|
38
|
|
Net Interest
Spread
|
3.28 %
|
3.31 %
|
3.15 %
|
2.81 %
|
2.96 %
|
|
(3)
|
|
32
|
|
|
3.14 %
|
2.97 %
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Excluding
SBA PPP loans and revenue impact of third-party managed
portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
4.86 %
|
4.51 %
|
4.23 %
|
4.27 %
|
4.33 %
|
|
34
|
bps
|
52
|
bps
|
|
4.49 %
|
4.40 %
|
|
8
|
bps
|
|
Total Earning
Assets
|
4.64 %
|
4.25 %
|
3.85 %
|
3.44 %
|
3.32 %
|
|
39
|
|
132
|
|
|
4.06 %
|
3.42 %
|
|
63
|
|
|
Net Interest
Margin*
|
3.51 %
|
3.58 %
|
3.35 %
|
2.96 %
|
2.79 %
|
|
(7)
|
|
72
|
|
|
3.35 %
|
2.79 %
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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 Twelve Months
Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP items:
|
4Q
2022
|
3Q
2022
|
2Q
2022
|
1Q
2022
|
4Q
2021
|
|
4Q
2022
|
4Q
2021
|
Net income from
continuing operations
|
$
3,085
|
$
5,054
|
$
5,009
|
$
4,593
|
$
7,651
|
|
$
17,741
|
|
$
31,018
|
Non-GAAP adjustments to
Net Income from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
Branch Consolidation /
Other restructuring
|
1,175
|
308
|
901
|
-
|
-
|
|
2,384
|
|
200
|
|
(Gain) on sale of
Infinex investment
|
(4,144)
|
-
|
-
|
-
|
-
|
|
(4,144)
|
|
-
|
|
Merger
expenses
|
-
|
-
|
401
|
115
|
-
|
|
516
|
|
-
|
|
(Gain) on debt
extinguishment
|
-
|
-
|
-
|
-
|
(573)
|
|
-
|
|
(573)
|
|
Income tax
effect
|
641
|
(67)
|
(281)
|
(25)
|
124
|
|
269
|
|
81
|
|
Net income from
continuing operations adjusted for nonrecurring income and
expenses
|
$
757
|
$
5,295
|
$
6,030
|
$
4,683
|
$
7,202
|
|
$
16,766
|
|
$
30,726
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
3,085
|
$
5,054
|
$
5,009
|
$
4,593
|
$
7,651
|
|
$
17,741
|
|
$
31,018
|
|
Income tax
expense
|
530
|
1,365
|
1,375
|
1,265
|
2,284
|
|
4,535
|
|
8,721
|
|
Provision for credit
losses (incl. unfunded commitment expense)
|
7,896
|
3,201
|
254
|
359
|
(1,451)
|
|
172
|
|
(5,563)
|
Pre-tax pre-provision
earnings from continuing operations
|
$
11,511
|
$
9,620
|
$
6,638
|
$
6,217
|
$
8,484
|
|
$
22,448
|
|
$
34,176
|
|
Effect of adjustment
for nonrecurring income and expenses and impact of third-party
managed portfolio
|
(4,791)
|
(912)
|
1,302
|
115
|
(573)
|
|
(4,286)
|
|
(373)
|
Pre-tax pre-provision
operating earnings from continuing operations
|
$
6,720
|
$
8,708
|
$
7,940
|
$
6,332
|
$
7,911
|
|
$
18,162
|
|
$
33,803
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets from continuing operations
|
0.36 %
|
0.61 %
|
0.63 %
|
0.55 %
|
0.88 %
|
|
0.53 %
|
|
0.92 %
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(0.27 %)
|
0.03 %
|
0.13 %
|
0.01 %
|
(0.05 %)
|
|
(0.03 %)
|
|
(0.01 %)
|
Operating return on
average assets from continuing operations
|
0.09 %
|
0.64 %
|
0.76 %
|
0.57 %
|
0.83 %
|
|
0.51 %
|
|
0.92 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets from continuing operations
|
0.36 %
|
0.61 %
|
0.63 %
|
0.55 %
|
0.88 %
|
|
0.53 %
|
|
0.92 %
|
|
Effect of tax
expense
|
0.06 %
|
0.16 %
|
0.17 %
|
0.15 %
|
0.26 %
|
|
0.14 %
|
|
0.26 %
|
|
Effect of provision for
credit losses (incl. unfunded commitment expense)
|
0.91 %
|
0.39 %
|
0.03 %
|
0.04 %
|
(0.17 %)
|
|
0.01 %
|
|
(0.17 %)
|
Pre-tax pre-provision
return on average assets from continuing operations
|
1.33 %
|
1.16 %
|
0.83 %
|
0.75 %
|
0.98 %
|
|
0.68 %
|
|
1.02 %
|
|
Effect of adjustment
for nonrecurring income and expenses and expenses and impact of
third-party managed portfolio
|
(0.55 %)
|
(0.11 %)
|
0.16 %
|
0.01 %
|
(0.07 %)
|
|
(0.13 %)
|
|
(0.01 %)
|
Pre-tax pre-provision
operating return on average assets from continuing
operations
|
0.78 %
|
1.05 %
|
1.00 %
|
0.77 %
|
0.91 %
|
|
0.55 %
|
|
1.01 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity from continuing operations
|
3.07 %
|
4.98 %
|
4.92 %
|
4.49 %
|
7.37 %
|
|
4.37 %
|
|
7.67 %
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(2.32 %)
|
0.24 %
|
1.00 %
|
0.09 %
|
(0.43 %)
|
|
(0.24 %)
|
|
(0.07 %)
|
Operating return on
average equity from continuing operations
|
0.75 %
|
5.22 %
|
5.93 %
|
4.58 %
|
6.94 %
|
|
4.13 %
|
|
7.59 %
|
|
Effect of goodwill and
other intangible assets
|
0.28 %
|
1.92 %
|
2.15 %
|
1.58 %
|
2.42 %
|
|
1.48 %
|
|
2.73 %
|
Operating return on
average tangible equity from continuing operations
|
1.03 %
|
7.14 %
|
8.08 %
|
6.16 %
|
9.36 %
|
|
5.62 %
|
|
10.33 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio from
continuing operations
|
71.71 %
|
71.85 %
|
75.01 %
|
76.11 %
|
68.16 %
|
|
73.34 %
|
|
67.43 %
|
|
Effect of adjustment
for nonrecurring income and expenses and impact of third-party
managed portfolio
|
8.17 %
|
1.79 %
|
(4.78 %)
|
(0.46 %)
|
1.47 %
|
|
1.71 %
|
|
0.18 %
|
Operating efficiency
ratio from continuing operations
|
79.89 %
|
73.64 %
|
70.23 %
|
75.65 %
|
69.63 %
|
|
75.05 %
|
|
67.61 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
continuing operations - Basic
|
$
0.13
|
$
0.21
|
$
0.20
|
$
0.19
|
$
0.31
|
|
$ 0.72
|
|
$ 1.27
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(0.10)
|
0.01
|
0.05
|
0.00
|
(0.02)
|
|
(0.04)
|
|
(0.01)
|
Operating earnings per
share from continuing operations - Basic
|
$
0.03
|
$
0.22
|
$
0.25
|
$
0.19
|
$
0.29
|
|
$ 0.68
|
|
$ 1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
continuing operations - Diluted
|
$
0.12
|
$
0.20
|
$
0.20
|
$
0.19
|
$
0.31
|
|
$ 0.72
|
|
$ 1.26
|
|
Effect of adjustment
for nonrecurring income and expenses
|
(0.09)
|
0.01
|
0.04
|
(0.00)
|
(0.02)
|
|
(0.04)
|
|
(0.01)
|
Operating earnings per
share from continuing operations - Diluted
|
$
0.03
|
$
0.21
|
$
0.24
|
$
0.19
|
$
0.29
|
|
$ 0.68
|
|
$ 1.25
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
15.98
|
$
15.89
|
$
16.17
|
$
16.42
|
$
16.76
|
|
$
15.98
|
|
$
16.76
|
|
Effect of goodwill and
other intangible assets
|
(4.37)
|
(4.39)
|
(4.40)
|
(4.31)
|
(4.34)
|
|
(4.37)
|
|
(4.33)
|
Tangible book value per
share
|
$
11.61
|
$
11.54
|
$
11.77
|
$
12.11
|
$
12.43
|
|
$
11.61
|
|
$
12.43
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
$
394,403
|
$
391,808
|
$
398,637
|
$
404,195
|
$
411,881
|
|
$ 394,403
|
|
$ 411,881
|
|
Less goodwill and other
intangible assets
|
(107,863)
|
(108,147)
|
(108,524)
|
(106,075)
|
(106,416)
|
|
(107,863)
|
|
(106,416)
|
Tangible common
equity
|
$
286,540
|
$
283,661
|
$
290,113
|
$
298,120
|
$
305,465
|
|
$ 286,540
|
|
$ 305,465
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets
|
|
11.04 %
|
11.67 %
|
12.32 %
|
12.55 %
|
12.10 %
|
|
11.04 %
|
|
12.09 %
|
|
Effect of goodwill and
other intangible assets
|
(2.77 %)
|
(2.94 %)
|
(3.04 %)
|
(2.98 %)
|
(2.84 %)
|
|
(2.77 %)
|
|
(2.83 %)
|
Tangible common equity
to tangible assets
|
8.27 %
|
8.73 %
|
9.27 %
|
9.57 %
|
9.26 %
|
|
8.27 %
|
|
9.26 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
3.67 %
|
3.57 %
|
3.33 %
|
2.96 %
|
3.00 %
|
|
3.39 %
|
|
3.01 %
|
|
Effect of adjustments
for PPP associated balances and revenue impact of third-party
managed portfolio*
|
(0.16 %)
|
0.01 %
|
0.02 %
|
(0.00 %)
|
(0.21 %)
|
|
(0.04 %)
|
|
(0.22 %)
|
Core net interest
margin
|
3.51 %
|
3.58 %
|
3.35 %
|
2.96 %
|
2.79 %
|
|
3.35 %
|
|
2.79 %
|
|
|
|
|
|
|
|
|
|
|
|
|
*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.