Declares Quarterly Cash Dividend of
$0.10 Per Share
MCLEAN,
Va., April 25, 2024 /PRNewswire/ -- Primis
Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), and its
wholly-owned subsidiary, Primis Bank (the "Bank"), today reported
preliminary results for the first quarter of 2024. As previously
discussed in its Form 12b-25/A filed on April 1, 2024, Primis is currently pursuing
a "pre-clearance" process with the Office of the Chief Accountant
of the Securities and Exchange Commission ("SEC") regarding the
accounting for a consumer loan portfolio originated through a
third-party. This process with the SEC is ongoing and must be
completed in order for the Company to complete its Annual Report on
Form 10-K for the year ended December 31,
2023 and to restate its financial statements for each of the
first three quarters of 2023 as well as the earnings release and
investor presentation furnished with the Current Report on Form 8-K
that the Company filed on January 26,
2024.
While Primis works diligently to complete the pre-clearance
process with the SEC, the Company is providing the preliminary
results for the first quarter of 2024 below. These results reflect
the same accounting methodology as in prior periods for the
consumer portfolio identified above for comparison purposes and to
demonstrate underlying trends in the Company's performance. The
Company's independent auditor has not reviewed or audited these
preliminary estimated financial results. The Company's actual
results may differ materially from these preliminary financial
results. This preliminary financial data has been prepared by and
is the responsibility of the Company. Until the process with the
SEC is complete, the results should be considered preliminary and
are subject to adjustment based on the results of that process, the
restatement, and other developments that may arise between now and
the time its audited consolidated financial statements are
issued.
Preliminary
Financial Results (Unaudited) – Q1 2024 versus Q1
2023
|
|
|
|
|
|
(Dollars in thousands
except per share)
|
Q1
2024
|
|
Q1
2023
|
|
|
|
|
|
|
Total Assets
|
$3,916,737
|
|
$4,218,099
|
|
Loans HFI
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3,221,428
|
|
3,056,674
|
|
Allowance for Credit
Losses
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(42,592)
|
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(35,803)
|
|
Total
Deposits
|
3,314,923
|
|
3,667,997
|
|
Common Stockholders'
Equity
|
399,608
|
|
398,145
|
|
|
|
|
|
|
Book Value per Common
Share
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$16.17
|
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$16.13
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Effect of Intangible
Assets
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(3.85)
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(4.36)
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Tangible Book Value per
Common Share
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$12.32
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$11.77
|
|
|
|
|
|
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Net Interest
Income
|
$28,327
|
|
$28,538
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Provision For Credit
Losses
|
7,864
|
|
5,263
|
|
Noninterest
Income
|
14,547
|
|
11,106
|
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Noninterest
Expense
|
28,615
|
|
27,410
|
|
Pre-Tax
Income
|
6,395
|
|
6,971
|
|
Tax Expense
|
1,722
|
|
1,278
|
|
Net Income
|
4,673
|
|
5,693
|
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Loss Attributable to
Noncontrolling Interest
|
1,654
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0
|
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Net Income Avail. To
Common
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$6,327
|
|
$5,693
|
|
|
|
|
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Basic Earnings per
Common Share
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$0.26
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$0.23
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Diluted Earnings per
Common Share
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$0.26
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|
$0.23
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|
|
|
|
|
|
Return on Average
Assets
|
0.66
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%
|
0.59
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%
|
Return on Average
Common Equity
|
6.37
|
%
|
5.72
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%
|
Net Interest
Margin
|
3.18
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%
|
3.16
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%
|
|
|
|
|
|
Nonperforming Assets
(excluding SBA Guarantees)
|
$8,758
|
|
$32,816
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NPAs / Total
Assets
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0.22
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%
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0.78
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%
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Net
Charge-offs
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$5,261
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$4,004
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|
|
|
|
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Net Charge-offs
(excluding third-party covered)
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935
|
|
2,128
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Net C/O's / Avg. Loans
(annualized)
|
0.64
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%
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0.53
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%
|
Net C/O's (excl.
third-party covered) / Avg. Loans (ann.)
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0.11
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%
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0.28
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%
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Beginning in the fourth quarter of 2023, results now include
consolidated results for Panacea Financial Holdings, Inc. ("PFH")
which is partially owned by the Company. Noncontrolling interests
in the table above represent the portion of PFH losses not
owned by Primis. Pre-tax income for the first quarter of 2024
included $2.0 million of pre-tax
losses attributable to PFH. Pre-tax income in the first
quarter of 2024 was also impacted by approximately $0.6 million of expenses related to accounting
advisory and other projects in the quarter. Adjusting for these
items, pre-tax income would have been $9.0
million in the first quarter of 2024, an increase of 30% as
compared to $7.0 million in the
year-ago period.
Declaration of Cash Dividend
The Board of Directors declared a dividend of $0.10 per share payable on May 24, 2024 to shareholders of record on
May 10, 2024. This is Primis'
fiftieth consecutive quarterly dividend.
About Primis Financial Corp.
As of March 31, 2024, Primis had
$3.9 billion in total assets,
$3.2 billion in total loans and
$3.3 billion in total deposits.
Primis Bank provides a range of financial services to individuals
and small- and medium-sized businesses through twenty-four
full-service branches in Virginia
and Maryland and provides services
to customers through certain online and mobile applications.
Contacts:
|
Address:
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Dennis J. Zember, Jr.,
President and CEO
|
Primis Financial
Corp.
|
Matthew A. Switzer, EVP
and CFO
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1676 International
Drive, Suite 900
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Phone: (703)
893-7400
|
McLean, VA
22102
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Primis Financial Corp.,
NASDAQ Symbol FRST
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Website:
www.primisbank.com
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Conference Call
The Company's management will host a conference call to discuss
its preliminary first quarter results on Friday, April 26, 2024 at 10:00 a.m. (ET). A live Webcast of the conference
call is available at the following website:
https://events.q4inc.com/attendee/796190683. 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.
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
the preliminary estimated financial and operating information
presented herein, which is subject to adjustment; 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 result
of the "pre-clearance" process with the Office of the Chief
Accountant of the SEC and the impact on the Company's financial
statements; the Company's ability to implement its various
strategic and growth initiatives, including its recently
established Panacea Financial and Life Premium Finance Divisions,
digital banking platform, V1BE fulfillment service and Primis
Mortgage Company; competitive pressures among financial
institutions increasing significantly; changes in applicable laws,
rules, or regulations, including changes to statutes, regulations
or regulatory policies or practices; changes in management's plans
for the future; credit risk associated with our lending activities;
the impact of current and future economic and market conditions
generally (including seasonality) and in the financial services
industry, nationally and within our primary market areas; changes
in interest rates, inflation, loan demand, real estate values, or
competition, as well as labor shortages and supply chain
disruptions; changes in accounting principles, policies, or
guidelines; adverse results from current or future litigation,
regulatory examinations or other legal and/or regulatory actions;
potential impacts of adverse developments in the banking industry
highlighted by high-profile bank failures, including impacts on
customer confidence, deposit outflows, liquidity and the regulatory
response thereto; potential increases in the provision for credit
losses; our ability to identify and address increased cybersecurity
risks, including those impacting vendors and other third parties;
fraud or misconduct by internal or external actors,
which we may not be able to prevent, detect or mitigate; acts of
God or of war or other conflicts, including the current
Ukraine/Russia conflict and Israel/Hamas conflict, acts of terrorism,
pandemics or other catastrophic events that may affect general
economic conditions; and other general competitive, economic,
political, and market factors, including those affecting our
business, operations, pricing, products, or services.
Forward-looking statements speak only as of the date on which
such statements are made. These forward-looking statements are
based upon information presently known to the Company's management
and are inherently subjective, uncertain and subject to change due
to any number of risks and uncertainties, including, without
limitation, the risks and other factors set forth in the Company's
filings with the Securities and Exchange Commission, the Company's
Annual Report on Form 10-K for the year ended December 31, 2022, under the captions "Cautionary
Note Regarding Forward-Looking Statements" and "Risk Factors," and
in the Company's Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. The Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made, or to reflect the
occurrence of unanticipated events. Readers are cautioned not to
place undue reliance on these forward-looking statements.
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SOURCE Primis Financial Corp.