Core Viewpoint - Primis Financial Corp. is facing potential delisting from Nasdaq due to non-compliance with filing requirements, specifically the failure to timely file its Form 10-K for the year ending December 31, 2024 [1][2] Group 1: Compliance and Regulatory Actions - On April 3, 2025, Nasdaq notified Primis that it is not in compliance with Listing Rule 5250(c)(1) due to the late filing of its Form 10-K [1] - The company has until April 10, 2025, to appeal this determination to a Hearings Panel to avoid delisting, with a hearing request already submitted [2][3] - The appeal process has temporarily stayed any suspension of trading for 15 calendar days, allowing the company's common stock to continue trading on Nasdaq during this period [3] Group 2: Financial Status and Operations - As of December 31, 2024, Primis Financial Corp. reported total assets of $3.7 billion, total loans held for investment of $2.9 billion, and total deposits of $3.2 billion [5] - The company operates twenty-four full-service branches in Virginia and Maryland, providing a range of financial services to individuals and small- to medium-sized businesses [5] Group 3: Future Compliance Expectations - Primis plans to file the Form 10-K as soon as possible, with expectations to do so before the scheduled hearing, which would bring the company back into compliance with Nasdaq Listing Rules [4] - The company believes it meets the standards for an extended stay of delisting during the appeal process and does not anticipate suspension or delisting of its securities [3][4]

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks [1] - Value investing remains a popular strategy, focusing on fundamental analysis to find undervalued stocks [2] - Zacks has introduced the Style Scores system to highlight stocks with specific traits, particularly beneficial for value investors [3] Company Overview: Primis Financial (FRST) - Primis Financial currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential [4] - The stock is trading at a P/E ratio of 7.47, significantly lower than the industry average of 14.51, suggesting it may be undervalued [4] - Over the past year, FRST's Forward P/E has fluctuated between 5.71 and 23.24, with a median of 6.95, indicating volatility in valuation [4] - The P/S ratio for FRST is 1.02, compared to the industry's average P/S of 1.84, further supporting the notion of undervaluation [5] - These metrics contribute to FRST's strong Value grade, indicating it is likely undervalued with a positive earnings outlook [6]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Primis Financial (FRST) as a strong candidate for value investors due to its favorable metrics and Zacks Rank [2][4][6] Group 1: Value Investing Strategy - Value investing focuses on identifying companies that are undervalued by the market using fundamental analysis and traditional valuation metrics [2] - The Zacks Rank system is utilized to find winning stocks based on earnings estimates and revisions, while the Style Scores system helps investors find stocks with specific traits, particularly in the "Value" category [1][3] Group 2: Primis Financial Metrics - Primis Financial (FRST) holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock has a Forward P/E ratio of 10.15, significantly lower than the industry average of 17.05, suggesting it may be undervalued [4] - Over the past 12 months, FRST's Forward P/E has fluctuated between 5.71 and 23.24, with a median of 6.95, further indicating its current undervaluation [4] - The P/S ratio for FRST is 1.07, compared to the industry's average P/S of 1.88, reinforcing the notion that the stock is undervalued [5] - Overall, the combination of these metrics suggests that FRST is an impressive value stock with a strong earnings outlook [6]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Primis Financial Corp and its officers or directors [1] Financial Performance - Primis reported a net loss of $14.7 million, or $0.59 loss per share, for Q4 2024, compared to a net loss of $8.2 million, or $0.33 loss per share, for Q4 2023 [2] - The company's earnings were significantly impacted by the decision to move a third-party originated consumer loan portfolio to held for sale in Q4 2024 [2] Stock Market Reaction - Following the financial results announcement, Primis's stock price decreased by $0.93, or 8.14%, closing at $10.50 per share on January 29, 2025 [3]

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 man ...

Financial Performance - Primis Financial Corp. reported a net loss of $14.7 million or $0.59 loss per share for Q4 2024, compared to a net loss of $8.2 million or $0.33 loss per share in Q4 2023[2]. - For the full year 2024, the net loss available to common shareholders was $7.5 million or $0.31 per share, an improvement from a loss of $7.8 million or $0.32 per share in 2023[2]. - Net income attributable to Primis' common shareholders was a loss of $14,670 thousand in Q4 2024, compared to a profit of $1,228 thousand in Q3 2024[48]. - Earnings per common share (diluted) for Q4 2024 was $(0.59), compared to $0.05 in Q3 2024[43]. - Return on average assets for Q4 2024 was (1.53)%, a decline from 0.12% in Q3 2024, highlighting challenges in asset utilization[52]. - The operating return on average common equity for Q4 2024 was (16.64)%, compared to 2.15% in Q3 2024[43]. - Pre-tax pre-provision operating earnings decreased to $3,251 thousand in Q4 2024 from $9,531 thousand in Q3 2024, showing a downward trend in operational performance[52]. - The efficiency ratio for Q4 2024 was 94.59%, up from 82.98% in Q3 2024[43]. Income and Expenses - Noninterest income for Q4 2024 was $13.2 million, an increase from $9.3 million in Q3 2024, although it decreased to $8.4 million when excluding the net gain from the Life Premium Finance sale[20]. - Net interest income decreased by approximately $1.9 million, or 7%, to $26.1 million in Q4 2024 compared to Q3 2024, impacted by interest reversals on charged-off loans[17]. - Net interest income after provision for credit losses was $3,094 thousand in Q4 2024, down from $20,512 thousand in Q3 2024, a decrease of approximately 85.0%[47]. - Provision for credit losses increased significantly to $23,046 thousand in Q4 2024 from $7,511 thousand in Q3 2024, an increase of approximately 206.5%[47]. - The company reported a significant increase in employee compensation and benefits to $15,717 thousand in Q4 2024 from $16,764 thousand in Q3 2024, a decrease of approximately 6.3%[48]. Loans and Deposits - The Bank's loan pipeline at the end of 2024 was approximately $119 million, with 88% representing new customers, compared to $51 million and 21% at the end of 2023[7]. - Total deposits decreased to $3.17 billion at December 31, 2024, from $3.31 billion at September 30, 2024, while noninterest bearing demand deposits rose 4.2% to $439 million[27]. - Total loans receivable, net of deferred fees decreased to $2,907,914 thousand in Q4 2024 from $2,973,723 thousand in Q3 2024, representing a decline of 2.2%[49]. - Loans held for investment decreased to $2.91 billion at December 31, 2024, from $2.97 billion at September 30, 2024, reflecting a 2.2% unannualized increase when including reclassified loans[23]. - Total real estate loans stood at $2,001,550 thousand in Q4 2024, a slight decrease from $2,022,590 thousand in Q3 2024, showing a decline of 1.6%[49]. - Consumer loans decreased to $284,955 thousand in Q4 2024 from $409,754 thousand in Q3 2024, a significant drop of 30.4%[49]. - Commercial loans increased to $614,162 thousand in Q4 2024, up from $533,998 thousand in Q3 2024, representing a growth of 15.0%[49]. Asset Quality - Nonperforming assets were 0.29% of total assets, or $10.8 million, at December 31, 2024, compared to 0.25% or $10.2 million at September 30, 2024[24]. - Net charge-offs increased to $31.0 million in Q4 2024 from $8.0 million in Q3 2024, with Consumer Program net charge-offs at $30.5 million[26]. - The allowance for credit losses to total loans was 1.49% in Q4 2024, down from 1.72% in Q3 2024[43]. - Non-performing assets increased to $16,740 thousand in Q4 2024, up from $16,138 thousand in Q3 2024, indicating a rise of 3.7%[49]. - The allowance for credit losses at the end of Q4 2024 was $(43,227) thousand, a decrease from $(51,132) thousand in Q3 2024, reflecting an improvement in asset quality[49]. Capital and Equity - The common equity tier 1 capital ratio for Q4 2024 was 8.64%, an increase from 8.23% in Q3 2024[43]. - The total risk-based capital ratio improved to 12.35% in Q4 2024 from 11.68% in Q3 2024[43]. - Total Primis common stockholders' equity decreased to $360,462 thousand in Q4 2024 from $381,022 thousand in Q3 2024, indicating a reduction in shareholder equity[52]. - Book value per common share decreased to $14.58 in Q4 2024 from $15.41 in Q3 2024, reflecting a decline in the company's net asset value[52]. - Primis common stockholders' equity increased to $382,466 in Q4 2024 from $377,314 in Q3 2024, a rise of 1.5%[50]. Dividends - The Board of Directors declared a dividend of $0.10 per share, marking the fifty-third consecutive quarterly dividend[32]. - Cash dividend per common share remained stable at $0.10 for the last four quarters[43].

Core Financial Performance - Primis Financial Corp reported a net loss of $14.7 million or $0.59 loss per share for Q4 2024, compared to a net loss of $8.2 million or $0.33 loss per share in Q4 2023 [1] - For the full year 2024, the net loss available to common shareholders was $7.5 million or $0.31 per share, slightly improved from a loss of $7.8 million or $0.32 per share in 2023 [1] - The company's net interest income decreased by approximately $1.9 million, or 7%, to $26.1 million in Q4 2024 compared to Q3 2024 [16] Strategic Initiatives - The company has repositioned its business focus towards more profitable lines, including mortgage warehouse lending and a new partnership with a national builder [2][7] - Primis sold its Life Premium Finance business and moved a significant portion of its consumer loan portfolio to held for sale, which is expected to enhance shareholder value [2][14] - The mortgage warehouse lending division is anticipated to add up to 15 basis points of additional return on assets once it reaches scale in 2025 [2] Core Community Bank Operations - The core community bank has 24 branches in Virginia and Maryland, with customer deposits totaling $2.2 billion at the end of 2024 [4] - The cost of deposits was 1.87%, which is lower than many larger regional competitors [4] - The bank's loan pipeline ended 2024 at approximately $119 million, with 88% representing new customers, a significant increase from $51 million and 21% in 2023 [5] Mortgage Operations - Primis Mortgage generated approximately $2.6 million in pre-tax earnings in 2024, with production reaching approximately $800 million, up from $600 million in 2023 [6] - The company anticipates production of $1.25 billion in 2025, driven by operational improvements and new partnerships [6][9] Digital Banking and Technology - The bank's digital platform has grown to 18,000 customers with nearly $1 billion in deposits since its launch in November 2022 [10] - The proprietary V1BE service supports approximately $200 million in checking accounts and has driven growth in new relationships [4][29] Panacea Financial Growth - Panacea Financial's loans outstanding increased by 11% to $434 million by the end of 2024, with a goal of reaching 10,000 customers by the end of 2025 [11] - The company owns approximately 19% of Panacea Financial Holdings, valued at nearly $20 million at the time of the capital raise [11] Consumer Loan Program Changes - The company decided to cease originating new loans under the Consumer Program effective January 31, 2025, and moved a large portion of the portfolio to loans held for sale [14] - The outstanding balances in the Consumer Program were $173 million as of December 31, 2024, down from $180 million in September 2024 [13][14] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.10 per share, marking the company's fifty-third consecutive quarterly dividend [33]

Company Overview - Primis Financial Corp. had total assets of $4.0 billion, total loans held for investment of $2.9 billion, and total deposits of $3.3 billion as of September 30, 2024 [2] - The company's banking subsidiary, Primis Bank, offers a variety of financial services to individuals and small- and medium-sized businesses through 24 full-service branches located in Virginia and Maryland, as well as through internet and mobile applications [2] Upcoming Financial Results - Primis Financial Corp. will release its fourth quarter 2024 results after the market closes on January 28, 2025 [1] - Following the results announcement, the company will host a conference call and audio webcast for analysts and investors on January 29, 2025, at 10:00 a.m. Eastern Time [1] - Participants are encouraged to join the call 15 minutes early, with specific toll-free and toll dial-in numbers provided for access [1]

Core Viewpoint - Primis Financial Corp. has announced a stock repurchase program for up to 740,600 shares of its common stock, which will run from December 19, 2024, to December 19, 2025, unless terminated or extended by the Board [1] Group 1: Stock Repurchase Program - The stock repurchase program allows the company to buy back shares through open market purchases or privately negotiated transactions, adhering to legal requirements [2] - The timing and extent of repurchases will depend on various factors, including stock performance, market conditions, regulatory requirements, and availability of funds [2] - The company is not obligated to repurchase any specific number of shares under this program [2] Group 2: Compliance and Financial Status - Primis Financial Corp. has received a Compliance Decision from the Nasdaq Hearings Panel, confirming its compliance with Listing Rule 5250(c)(1) as of December 11, 2024 [3] - As of September 30, 2024, the company reported total assets of $4.0 billion, total loans of $2.9 billion, and total deposits of $3.3 billion [4] - Primis Bank operates 24 full-service branches in Virginia and Maryland, offering financial services to individuals and small- to medium-sized businesses [4]

Financial Performance - Net income attributable to Primis' common stockholders decreased to $2,466 thousand for Q1 2024, down from $8,363 thousand in Q1 2023, a decline of 70.5%[7] - As of March 31, 2024, net income was $812,000, a significant decrease from $8,363,000 in the same period of 2023, representing a decline of approximately 90.3%[10] - The company reported a comprehensive income of $628 thousand for Q1 2024, down from $10,738 thousand in Q1 2023, a decline of 94.1%[7] - Basic earnings per share (EPS) for the three months ended March 31, 2024, was $0.10, a decrease from $0.34 in the same period of 2023[109] - Net income for Q1 2024 was $2.5 million, a 71% decrease from $8.4 million in Q1 2023, primarily due to a $9.4 million drop in derivative gains[125] Asset and Liability Management - Total assets increased to $3,889,979 thousand as of March 31, 2024, compared to $3,856,546 thousand on December 31, 2023, reflecting a growth of 0.86%[5] - Total liabilities rose to $3,495,380 thousand as of March 31, 2024, compared to $3,458,953 thousand on December 31, 2023, an increase of 1.06%[5] - Stockholders' equity decreased to $394,599 thousand from $397,593 thousand, a decline of 0.75%[5] - The company reported a decrease in total equity to $394,599,000 as of March 31, 2024, down from $397,593,000 on December 31, 2023, a decline of 0.7%[137] Loan Portfolio - Total loans held for investment increased to $3.227 billion as of March 31, 2024, compared to $3.219 billion as of December 31, 2023[37] - The company reported $205.1 million in loans outstanding in the Consumer Program as of March 31, 2024, representing 6% of the total gross loan portfolio[38] - The company’s total real estate loans decreased to $1.976 billion as of March 31, 2024, from $1.998 billion as of December 31, 2023[37] - The total loans not past due as of March 31, 2024, were $3.185 billion, indicating a stable loan portfolio[42] - The total amount of loans under "Special Mention" was reported at $1,282, unchanged from the previous year, indicating stability in this category[58] Credit Quality and Allowance for Credit Losses - The allowance for credit losses increased to $53,456 thousand as of March 31, 2024, compared to $52,209 thousand on December 31, 2023, indicating a rise of 2.38%[5] - The provision for credit losses increased to $6,508,000 in Q1 2024, compared to $5,263,000 in Q1 2023, representing a rise of 23.6%[10] - Nonperforming assets increased to $11,853,000 as of March 31, 2024, compared to $10,809,000 on December 31, 2023, indicating a rise in asset quality concerns[144] - The company performed quantitative and qualitative analyses to determine that none of the investment securities required an allowance for credit losses[34] Income and Expense Analysis - Total interest and dividend income increased to $50,345 thousand, up from $44,258 thousand, representing a growth of 13.5% year-over-year[7] - Noninterest income decreased significantly to $10,307 thousand in Q1 2024 from $17,670 thousand in Q1 2023, a drop of 41.6%[7] - Noninterest expense for Q1 2024 was $27.5 million, an increase of $0.6 million compared to Q1 2023[124] - The net interest margin improved to 2.84% for the three months ended March 31, 2024, compared to 2.81% for the same period in 2023[129] Capital and Regulatory Ratios - The leverage ratio for Primis Bank was 9.91% as of March 31, 2024, exceeding the required minimum of 5.00%[164] - Common equity tier 1 capital ratio for Primis Bank was 11.09% as of March 31, 2024, above the required minimum of 6.50%[164] - Total risk-based capital ratio for Primis Bank was 12.35% as of March 31, 2024, surpassing the required minimum of 10.00%[164] - Primis Bank maintained a capital conservation buffer of 4.35% as of March 31, 2024, exceeding the 2.50% minimum requirement[165] Investment Securities - The amortized cost of available-for-sale investment securities was $260.4 million with a fair value of $230.6 million as of March 31, 2024, reflecting gross unrealized losses of $29.9 million[27] - The company purchased available-for-sale investment securities totaling $8.8 million during the three months ended March 31, 2024, with no purchases in the same period of 2023[30] - The fair value of available-for-sale securities as of March 31, 2024, was $214.216 million, down from $203.880 million as of December 31, 2023[35] Operational Highlights - Primis Bank operated 24 full-service branches in Virginia and Maryland as of March 31, 2024, continuing to expand its physical presence[12] - The company completed a $24.5 million Series B financing round for Panacea Financial Holdings, acquiring approximately 19% of its common stock[16] - The company is focused on implementing various strategic initiatives, including new digital banking platforms and cost-saving projects to reduce administrative expenses[114]