MCLEAN,
Va., March 13, 2023 /PRNewswire/ -- Primis
Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), and its
wholly-owned subsidiary, Primis Bank (the "Bank"), today reported
several mid-quarter results associated driven by various deposit
growth strategies.
Speaking about the Company's balance sheet strength,
Dennis J. Zember, Jr., President and
CEO commented, "Given the turbulence we have witnessed over the
past week, I think it is important to update the investment
community on certain of our results through the first quarter of
2023. Between concerted efforts to maintain and grow relationships
at the core bank and the increasing popularity of the mobile
banking platform attracting new customers, we have grown core
deposits in the first quarter of 2023 by approximately $908 million through March
9, 2023. This outstanding result has allowed our bank to
become 97% core customer funded, with no wholesale borrowings and
only $100 million of short-term
brokered deposits. As a result, our loan to deposit ratio has
dropped to 83% from 108% at December 31,
2022. Currently we have approximately $600 million of cash (after retiring $325 million of maturing FHLB borrowings) on our
balance sheet compared to only $244
million of investment securities, only 5% of which are
classified as held-to-maturity. Lastly, we have approximately
$855 million of borrowing capacity
from various institutions, including the FHLB."
The Company's mobile platform, which augments its core community
bank, has opened approximately 10,600 new accounts since the full
launch in the fourth quarter of 2022 with total current balances
(as of March 9, 2023) of
approximately $921 million and,
importantly, this quarter-to-date growth has been without any
incremental personnel or system expense. The customers are from all
50 states, have an average age of 51 years, and carry an average
balance of $87,100. Only 23% of the
balances on the mobile platform are over $250,000.
Mr. Zember continued, "Our success with these profitable and
safe deposit strategies has provided our bank with some of the best
liquidity ratios in the industry. Our customer base is diversified
by state (in all 50 states), between consumer and commercial and
amongst various deposit types. We have zero exposure to
crypto-oriented loans or deposits and no exposure to
venture capital sponsored businesses. Lastly, our average balances
per customer are low, at approximately $44,000 per account and we continue to see
meaningful deposit inflows on a daily basis."
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," "update", "become", "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; our view of our liquidity, including the role
of our mobile-banking originated deposits; expectations on our
growth strategy, expense management, capital and liquidity
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 unforeseen dynamics stemming from recent
market activity, including strains on liquidity arising from bank
customer deposit outflows and related media attention, as well as
the government's (and, in particular, the FDIC's) role in respect
of these events; the Company's 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.
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
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SOURCE Primis Financial Corp.