Financial Performance - Net income available to common shareholders for Q3 2024 was $1.2 million or $0.05 per diluted share, compared to a net loss of $6.0 million or $0.24 per diluted share in Q3 2023[1] - Year-to-date earnings for 2024 were $7.5 million or $0.30 per diluted share, compared to $0.3 million or $0.01 per diluted share in the same period in 2023[1] - Net income attributable to Primis' common shareholders for Q3 2024 was $1.2 million, compared to a loss of $6.0 million in Q3 2023[45] - Adjusted net income for Q3 2024 was $2.0 million, up from $5.3 million in Q3 2023[45] - Pre-tax pre-provision operating earnings for Q3 2024 were $9.5 million, compared to $8.2 million in Q3 2023[45] - Operating return on average assets for Q3 2024 was 0.20%, up from 0.54% in Q3 2023[45] - Operating return on average common equity for Q3 2024 was 2.11%, compared to 5.35% in Q3 2023[45] - Operating efficiency ratio improved to 80.35% in Q3 2024 from 75.17% in Q3 2023[45] - Basic operating earnings per common share were $0.08 in Q3 2024, down from $0.21 in Q3 2023[45] - Return on average assets improved to 0.12% in 3Q 2024, compared to (0.85)% in 4Q 2023 and (0.62)% in 3Q 2023[29] - Operating return on average common equity rose to 2.11% in 3Q 2024, up from (7.91)% in 4Q 2023 and 5.35% in 3Q 2023[29] Interest Income and Margin - Net interest income increased by $3.2 million or 13% to $28.0 million in Q3 2024 compared to Q2 2024, with a net interest margin of 2.97%[7] - Interest income increased by 9.4% to $57.1 million in Q3 2024 compared to $52.2 million in Q2 2024[8] - Net interest margin increased to 2.97% in 3Q 2024, compared to 2.72% in 2Q 2024 and 2.70% in 3Q 2023[29] - Net interest income rose to $28,023 thousand in 3Q 2024, up from $24,853 thousand in 2Q 2024[35] - Interest and dividend income grew to $57,112 thousand in 3Q 2024, up from $52,199 thousand in 2Q 2024[35] - Net interest income after provision for credit losses was $20,512 thousand in 3Q 2024, down from $21,734 thousand in 2Q 2024[35] - Net interest margin for loans held for sale was 6.44% in 3Q 2024, down from 7.25% in 2Q 2024 but up from 6.90% in 4Q 2023[43] - Net Interest Margin improved to 2.97% from 2.61%[44] - Net Interest Spread widened to 2.37% from 2.13%[44] Loans and Deposits - Loans held for investment decreased to $2.97 billion at September 30, 2024, compared to $3.30 billion at June 30, 2024, with the Panacea and Life Premium Finance divisions showing loan growth of 4.4% and 11.1%, respectively[13] - Total deposits slightly decreased to $3.31 billion in Q3 2024 from $3.34 billion in Q2 2024, with noninterest-bearing deposits at $421 million[17] - Panacea Financial Division grew outstanding loans to $392 million in Q3 2024, up $16.5 million from Q2 2024, with deposits at $90 million and a weighted average cost of 2.00%[19] - Gross loans to deposits ratio decreased to 89.68% in 3Q 2024, down from 98.95% in 2Q 2024 and 96.37% in 3Q 2023[29] - Net loans decreased to $2,913,988 thousand in 3Q 2024 from $3,248,988 thousand in 2Q 2024[33] - Total deposits slightly decreased to $3,306,431 thousand in 3Q 2024 from $3,335,463 thousand in 2Q 2024[34] - Loans held for sale increased significantly to $467.3 million in 3Q 2024, up from $94.6 million in 2Q 2024[38] - Total real estate loans remained stable at $2.02 billion in 3Q 2024, compared to $2.03 billion in 2Q 2024[38] - Commercial loans decreased to $526.8 million in 3Q 2024 from $619.4 million in 2Q 2024[38] - Loans increased to 6.31% from 5.32%[44] - NOW accounts increased to 2.46% from 1.88%[44] - Savings accounts grew to 4.10% from 3.78%[44] - CDs decreased to 4.09% from 3.01%[44] Noninterest Income and Expense - Noninterest income decreased to $9.3 million in Q3 2024 compared to $11.2 million in Q2 2024, with a $1.2 million reduction in income related to the Consumer Program[10] - Noninterest expense was $31.0 million in Q3 2024, with a core expense burden of $19.8 million, in line with the average for the last five quarters[11][12] - Mortgage banking income increased to $6.8 million in the latest quarter, up from $5.6 million in the previous quarter[36] - Noninterest income decreased to $9.3 million from $10.3 million in the prior quarter[36] Credit Quality and Provisions - Net charge-offs increased to $8.0 million in Q3 2024, up from $5.0 million in Q2 2024, with Consumer Program net charge-offs at $6.7 million and Core net charge-offs at $1.3 million (0.15% of average loans)[16] - Provision for credit losses increased to $7,511 thousand in 3Q 2024 from $3,119 thousand in 2Q 2024[35] - Allowance for credit losses ending balance was $(51.1) million in 3Q 2024, slightly improved from $(51.6) million in 2Q 2024[39] - Provision for credit losses was $(7.5) million in 3Q 2024, compared to $(3.1) million in 2Q 2024[39] - Reserve for unfunded commitments decreased to $(1.1) million in 3Q 2024 from $(1.0) million in 2Q 2024[40] - Non-performing assets increased to $16,138 in 3Q 2024, up from $13,186 in 2Q 2024 and $10,809 in 4Q 2023[41] - Net charge-offs as a percent of average loans (annualized) increased to 0.93% in 3Q 2024, up from 0.60% in 2Q 2024 and 0.53% in 4Q 2023[30] - SBA guaranteed portion of non-performing loans rose to $5,954 in 3Q 2024, up from $3,268 in 2Q 2024 and $3,115 in 4Q 2023[41] - Accruing loans delinquent 90 days or more decreased to 1,714 in 3Q 2024, down from 1,897 in 2Q 2024 and 1,714 in 4Q 2023[41] Capital and Equity - Book value per common share increased to $15.43 in Q3 2024, up $0.20 from Q2 2024, with tangible book value per share at $11.61[21] - Common shareholders' equity stood at $381 million (9.48% of total assets) in Q3 2024, with tangible common equity at $287 million (7.30% of tangible assets)[21] - After-tax unrealized losses on available-for-sale securities decreased by $6.0 million to $17.1 million in Q3 2024 due to lower market interest rates[21] - Total risk-based capital ratio increased to 12.66% in 3Q 2024, up from 12.45% in 2Q 2024 and 12.61% in 1Q 2024[29] - Common equity to assets ratio slightly decreased to 9.48% in 3Q 2024, compared to 9.49% in 2Q 2024 and 9.84% in 4Q 2023[30] - Tangible common equity to tangible assets ratio improved to 7.30% in 3Q 2024, up from 7.27% in 2Q 2024 and 7.53% in 4Q 2023[30] - Leverage ratio decreased to 8.06% in 3Q 2024, down from 8.25% in 2Q 2024 and 8.60% in 4Q 2023[30] - Tangible book value per common share increased to $11.61 in Q3 2024 from $11.42 in Q3 2023[45] - Total Primis common stockholders' equity grew to $381.4 million in Q3 2024 from $377.6 million in Q3 2023[45] - Tangible common equity increased to $286.9 million in Q3 2024 from $281.6 million in Q3 2023[45] - Common equity to assets ratio ranges from 9.48% to 9.84%[46] - Effect of goodwill and other intangible assets ranges from (2.18)% to (2.31)%[46] - Tangible common equity to tangible assets ratio ranges from 7.30% to 7.53%[46] Asset and Liability Management - As of September 30, 2024, Primis had $4.0 billion in total assets, $2.9 billion in total loans, and $3.3 billion in total deposits[22] - Total assets increased to $4,024,603 thousand in 3Q 2024, up from $3,966,364 thousand in 2Q 2024[33] - Total liabilities increased to $3,627,283 thousand in 3Q 2024 from $3,571,807 thousand in 2Q 2024[34] - Tangible common equity stood at $286,908 thousand in 3Q 2024, up from $281,625 thousand in 2Q 2024[34] - Federal Home Loan Bank advances surged to $165,000 thousand in 3Q 2024 from $80,000 thousand in 2Q 2024[34] - Total earning assets grew to $3,748,303 in 3Q 2024, compared to $3,669,045 in 2Q 2024 and $3,564,935 in 4Q 2023[42] - Total deposits reached $3,321,711 in 3Q 2024, slightly down from $3,324,688 in 2Q 2024 but up from $3,281,979 in 4Q 2023[43] - Loans held for sale increased to $98,110 in 3Q 2024, up from $84,389 in 2Q 2024 and $48,380 in 4Q 2023[42] - Total funding costs increased to $29,089 in 3Q 2024, up from $27,346 in 2Q 2024 and $24,437 in 4Q 2023[43] - Total liabilities and stockholders' equity reached $3,992,275 in 3Q 2024, up from $3,912,245 in 2Q 2024 and $3,827,912 in 4Q 2023[42] - Investments slightly decreased to 2.95% from 2.97%[44] - Total Earning Assets rose to 6.06% from 5.10%[44] - Cost of Interest-Bearing Deposits rose to 3.48% from 2.84%[44] - Total Cost of Funds increased to 3.25% from 2.61%[44] Dividends and Shareholder Returns - Primis Financial Corp. declared a dividend of $0.10 per share, marking its fifty-second consecutive quarterly dividend[21] Business Developments - The sale of the Life Premium Finance Division to EverBank is expected to result in a pre-tax gain of $4.5 million in Q4 2024[3] - EverBank will acquire approximately $370 million of loans from the Life Premium Finance Division, with Primis Bank providing interim servicing until the final closing on January 31, 2025[4] - Primis hired a seasoned mortgage warehouse lending team in early October 2024, with four key individuals joining and an additional four to five support staff expected in the coming months[5] - Primis Mortgage pre-tax income rose to $1.0 million in Q3 2024, with locked loan volumes averaging $56.1 million per month, up from $52.0 million in Q2 2024[20] - V1BE platform users grew by 5% in Q3 2024, reaching over 2,400 users, while digital accounts totaled 17,000 with $911 million in deposits and average balances of $53 thousand[17]
Primis(FRST) - 2024 Q3 - Quarterly Results