Primis(US:FRST)2024-12-11 22:09Financial Performance - The company reported a net income of $83,854 million for the period, compared to $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 $1,228, compared to a net loss of $6,029 in Q3 2023[13]. - Comprehensive income for Q3 2024 was $7,234, a significant improvement from a loss of $10,419 in Q3 2023[13]. - Net income for the nine months ended September 30, 2024, was $1,490,000, compared to $339,000 for the same period in 2023, representing a significant increase[19]. - Basic EPS for the nine months ended September 30, 2024 was $0.29, compared to $0.01 for the same period in 2023[162]. - The net income for Primis for the three months ended September 30, 2024, was $1,652,000, compared to a net loss of $2,509,000 in the same period of 2023, marking a turnaround in profitability[168]. Assets and Liabilities - Total assets increased to $4,024,347 million as of September 30, 2024, compared to $3,856,546 million at December 31, 2023, reflecting a growth of approximately 4.4%[9]. - Total liabilities increased to $3,627,284 million from $3,458,953 million, reflecting a growth of 4.9%[9]. - Total deposits increased to $3,306,431 million, up from $3,270,155 million, representing a growth of 1.1%[9]. - Total cash and cash equivalents at the end of the period were $77,274,000, down from $93,865,000 at the end of September 30, 2023[19]. - The company had operating lease liabilities totaling $11.7 million as of September 30, 2024, consistent with the amount reported as of December 31, 2023[131]. Loans and Credit Quality - Total loans held for investment as of September 30, 2024, were $3.0 billion, a decrease of 7.6% from December 31, 2023[182]. - The total past due loans as of September 30, 2024, were $53,186 thousand, with $4,021 thousand classified as 90 days or more past due[62]. - Nonaccrual loans totaled $14,424 thousand as of September 30, 2024, compared to $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 $51.132 million, an increase from $40.378 million as of December 31, 2023[106]. Income and Expenses - Total interest and dividend income for Q3 2024 was $57,112, an increase of 19.5% from $48,027 in Q3 2023[13]. - Net interest income after provision for credit losses decreased to $20,512 in Q3 2024 from $22,714 in Q3 2023, reflecting a decline of 9.7%[13]. - Total noninterest expenses decreased to $30,955 in Q3 2024 from $36,948 in Q3 2023, a reduction of 16.2%[13]. - The company reported a provision for credit losses of $7,511 for the nine months ended September 30, 2024, compared to $11,231 for the same period in 2023[13]. Investment Securities - Securities available-for-sale increased to $242,543 million from $228,420 million, representing a growth of 6.2%[9]. - The total amortized cost of available-for-sale investment securities was $264.15 million, with a fair value of $242.54 million, reflecting unrealized losses of $22.42 million[45]. - The fair value of residential government-sponsored mortgage-backed securities was $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].