Workflow
Primis(FRST) - 2025 Q1 - Quarterly Results
PrimisPrimis(US:FRST)2025-04-29 21:12

Financial Performance - Primis Financial Corp. reported net income of $2.7 million, or $0.11 earnings per share, for Q1 2025, a significant recovery from a net loss of $23.3 million in Q4 2024[2]. - Net income attributable to Primis' common shareholders for Q1 2025 was $2,675,000, a significant recovery from a loss of $23,335,000 in Q4 2024[46]. - Adjusted net income attributable to common shareholders, accounting for nonrecurring items, was $3,572,000 in Q1 2025 compared to a loss of $24,148,000 in Q4 2024[46]. - Earnings per common share - Basic for Q1 2025 was $0.11, compared to a loss of $(0.94) in Q4 2024[37]. - Return on average assets improved to 0.30% in Q1 2025, up from a negative 2.43% in Q4 2024[46]. - Operating return on average common equity for Q1 2025 was 4.14%, up from (25.13%) in Q4 2024[37]. - Pre-tax pre-provision operating earnings increased to $6,364,000 in Q1 2025 from $3,188,000 in Q4 2024[46]. Asset Quality - The allowance for credit losses was 1.45% of loans held for investment at the end of Q1 2025, down from 1.66% in the same quarter of 2024[22]. - Non-performing assets as a percent of total assets decreased to 0.28% in Q1 2025 from 0.29% in Q4 2024[37]. - Non-performing assets decreased to $14,669 thousand in Q1 2025 from $16,739 thousand in Q4 2024, a reduction of 12.4%[42]. - The provision for credit losses was $(1,596) thousand in Q1 2025, a substantial decrease from $(33,483) thousand in Q4 2024, indicating improved credit quality[42]. - Net charge-offs as a percent of average loans (annualized) decreased to 1.47% in Q1 2025 from 3.83% in Q4 2024, reflecting improved credit quality[47]. Deposits and Funding - Total deposits decreased slightly to $3.16 billion as of March 31, 2025, from $3.17 billion at December 31, 2024, with $152 million swept off balance sheet[24]. - Noninterest bearing demand deposits increased to $446 million at March 31, 2025, up from $439 million at December 31, 2024[24]. - The Company emphasizes driving up low-cost deposit balances and has no wholesale funding, being 100% funded with customer deposits[24]. - The digital platform ended Q1 2025 with over $1 billion in deposits, and a new affinity brand was launched to drive growth in deposit products[10]. - Total deposits decreased to $3,120,452 thousand in Q1 2025 from $3,217,099 thousand in Q4 2024, a decrease of 3.0%[44]. Loans and Lending Activities - Total loans receivable increased to $3,043,348 thousand in Q1 2025, up from $2,887,447 thousand in Q4 2024, representing a growth of 5.4%[42]. - Commercial loans increased to $698,097 thousand in Q1 2025, up from $608,595 thousand in Q4 2024, reflecting a growth of 14.7%[42]. - Consumer loans surged to $357,652 thousand in Q1 2025, compared to $270,063 thousand in Q4 2024, marking a significant increase of 32.4%[42]. - Loans held for sale dropped significantly to $74,439 thousand in Q1 2025 from $247,108 thousand in Q4 2024, a decrease of about 69.9%[39]. - Mortgage warehouse lending activity saw outstanding loan balances increase to $115 million, up 80% from $64 million at the end of 2024[9]. Capital and Equity - Common shareholders' equity was $356 million, or 9.67% of total assets, at March 31, 2025[26]. - Book value per common share increased to $14.38 as of March 31, 2025, an increase of $0.15 from December 31, 2024[26]. - Tangible book value per common share rose to $10.59, an increase of $0.17 from December 31, 2024[26]. - Total Primis common stockholders' equity rose to $355,602,000 in Q1 2025, compared to $351,756,000 in Q4 2024[47]. - Common equity to assets ratio was 9.67% in Q1 2025, slightly up from 9.53% in Q4 2024[47]. Income and Expenses - Net interest income increased to $26,364 thousand in Q1 2025, compared to $26,077 thousand in Q4 2024, reflecting a growth of 1.1%[39]. - Noninterest income decreased to $7.8 million in Q1 2025 from $13.2 million in Q4 2024, impacted by the sale of the Life Premium Finance division[16]. - Total funding costs decreased to $21,359 thousand in Q1 2025 from $25,261 thousand in Q4 2024, a decrease of 15.0%[44]. - Cost of funds decreased to 2.68% in Q1 2025 from 2.97% in Q4 2024[37]. - The cost of interest-bearing deposits was 2.93% in Q1 2025, down from 3.25% in Q4 2024, a reduction of 32 basis points[45]. Dividends and Shareholder Returns - The Board of Directors declared a dividend of $0.10 per share payable on May 28, 2025[27].