Primis(FRST)2024-12-11 22:09Financial Performance - The company reported a net income of 84,143 million in the previous period, indicating a decrease of 0.3%[9]. - The net income attributable to Primis' common stockholders for Q3 2024 was 6,029 in Q3 2023[13]. - Comprehensive income for Q3 2024 was 10,419 in Q3 2023[13]. - Net income for the nine months ended September 30, 2024, was 339,000 for the same period in 2023, representing a significant increase[19]. - Basic EPS for the nine months ended September 30, 2024 was 0.01 for the same period in 2023[162]. - The net income for Primis for the three months ended September 30, 2024, was 2,509,000 in the same period of 2023, marking a turnaround in profitability[168]. Assets and Liabilities - Total assets increased to 3,856,546 million at December 31, 2023, reflecting a growth of approximately 4.4%[9]. - Total liabilities increased to 3,458,953 million, reflecting a growth of 4.9%[9]. - Total deposits increased to 3,270,155 million, representing a growth of 1.1%[9]. - Total cash and cash equivalents at the end of the period were 93,865,000 at the end of September 30, 2023[19]. - The company had operating lease liabilities totaling 3.0 billion, a decrease of 7.6% from December 31, 2023[182]. - The total past due loans as of September 30, 2024, were 4,021 thousand classified as 90 days or more past due[62]. - Nonaccrual loans totaled 9,095 thousand on December 31, 2023, indicating a rise in nonperforming assets[66]. - The allowance for credit losses is a critical accounting policy due to the estimation and judgment involved in determining expected losses in the loan portfolio[56]. - The total allowance for credit losses on loans as of September 30, 2024, is 40.378 million as of December 31, 2023[106]. Income and Expenses - Total interest and dividend income for Q3 2024 was 48,027 in Q3 2023[13]. - Net interest income after provision for credit losses decreased to 22,714 in Q3 2023, reflecting a decline of 9.7%[13]. - Total noninterest expenses decreased to 36,948 in Q3 2023, a reduction of 16.2%[13]. - The company reported a provision for credit losses of 11,231 for the same period in 2023[13]. Investment Securities - Securities available-for-sale increased to 228,420 million, representing a growth of 6.2%[9]. - The total amortized cost of available-for-sale investment securities was 242.54 million, reflecting unrealized losses of 92.28 million as of September 30, 2024, down from $96.81 million as of December 31, 2023[45]. - The company did not record any allowance for credit losses on held-to-maturity securities as of September 30, 2024, indicating a stable credit outlook[49]. Strategic Initiatives - The company aims to enhance its market expansion strategies and product development initiatives in the upcoming quarters[93]. - Primis is focusing on strategic growth initiatives, including the development of a new digital banking platform and cost-saving projects to enhance operational efficiency[170]. - The management emphasizes that results for the three and nine months ended September 30, 2024, are not indicative of future performance, highlighting the inherent uncertainties in forward-looking statements[170]. Risk Management - The company manages credit risk by selecting financially strong counterparties and spreading risk among multiple parties[122]. - The allowance for credit losses incorporates an estimate of lifetime expected credit losses based on historical loss information, including losses from modifications[80]. - The provisions for credit losses were influenced by economic conditions and the nature of lending, particularly for loans originated from Q3 2022 to Q1 2023[200].