Primis(US:FRST)2025-11-10 21:32Financial Performance - Net income attributable to Primis' common stockholders for the three months ended September 30, 2025, was $6,830 thousand, a significant increase from $1,228 thousand in the same period of 2024[16]. - Net income for the nine months ended September 30, 2025, was $28,301,000, a significant increase from $1,490,000 in the same period of 2024[19]. - Comprehensive income for the nine months ended September 30, 2025, was $38,537 thousand, compared to $11,762 thousand for the same period in 2024, reflecting a growth of 227.5%[16]. - Basic EPS for the three months ended September 30, 2025, was $0.28, compared to $0.05 for the same period in 2024[139]. - The company reported a basic EPS of $1.29 for the nine months ended September 30, 2025, compared to $0.29 for the same period in 2024[139]. Asset and Loan Growth - Total assets increased to $3,954,849 thousand as of September 30, 2025, up from $3,690,115 thousand at December 31, 2024, representing a growth of 7.2%[15]. - Total loans held for investment (LHFI) rose to $3.2 billion as of September 30, 2025, an 11% increase from December 31, 2024, led by growth in Mortgage Warehouse loans and Panacea Division loans[172]. - Total loans amounted to $3.2 billion as of September 30, 2025, compared to $2.9 billion as of December 31, 2024, reflecting overall growth in the loan portfolio[210]. - Outstanding loan balances increased by 411% to $327 million as of September 30, 2025, from $64 million at December 31, 2024[166]. - The total amount of loans modified due to financial difficulty is assessed based on the borrower's delinquency status and overall financial situation[73]. Income and Expenses - Net interest income for the three months ended September 30, 2025, was $29,032 thousand, compared to $28,023 thousand for the same period in 2024, reflecting an increase of 3.6%[16]. - Noninterest income for the nine months ended September 30, 2025, was $62,334 thousand, compared to $30,441 thousand for the same period in 2024, indicating a growth of 104.5%[16]. - Noninterest expenses for the nine months ended September 30, 2025, totaled $96,771 thousand, compared to $88,279 thousand for the same period in 2024, an increase of 9.3%[16]. - The company reported total noninterest income for the nine months ended September 30, 2025, reached $62 million, a 105% increase from $30 million in the same period in 2024, largely due to a $32 million gain on the investment in Panacea Financial Holdings[196]. - Salaries and benefits expenses increased by $1.8 million to $18.5 million for the three months ended September 30, 2025, compared to $16.8 million in 2024[197]. Credit Quality and Allowance for Losses - The allowance for credit losses decreased to $44,766 thousand as of September 30, 2025, from $53,724 thousand at December 31, 2024, a reduction of 16.7%[15]. - The provision for credit losses for the nine months ended September 30, 2025, was $9,850,000, down from $17,138,000 in 2024, indicating improved credit quality[19]. - The total nonaccrual loans as of September 30, 2025, were $84.97 million, compared to $15.03 million on December 31, 2024, indicating a significant increase in nonaccrual status[69]. - The allowance for credit losses includes an estimate of lifetime expected credit losses, with historical loss information being the starting point for this estimate[76]. - The company applies qualitative adjustments to model results based on key risk indicators tracked on a pool-by-pool basis[94]. Deposits and Funding - Total deposits increased to $3,336,352 thousand as of September 30, 2025, up from $3,171,035 thousand at December 31, 2024, a rise of 5.2%[15]. - The cost of deposits for the core Bank was 1.73% in Q3 2025, down from 2.29% in Q3 2024, with 20% of deposits being noninterest bearing[166]. - The company had $167 million of mortgage loan commitments outstanding as of September 30, 2025, with contractual expirations ranging from 15 to 30 years[136]. - Unfunded lines of credit and undisbursed construction loan funds totaled $493 million as of September 30, 2025, compared to $459 million as of December 31, 2024[137]. - The balance of secured borrowings was $15 million as of September 30, 2025, with no loans past due 30 days or greater[123]. Derivatives and Securities - The gross amounts of interest rate swap derivative assets and liabilities as of September 30, 2025, were $196 thousand and $333 thousand, respectively[39]. - The fair value of derivative assets increased to $1,908,000 as of September 30, 2025, from $1,000,000 as of December 31, 2024[106]. - The amortized cost of Available-for-Sale (AFS) investment securities as of September 30, 2025, was $252,991 thousand, with a fair value of $234,660 thousand[53]. - The total unrealized losses for available-for-sale securities as of September 30, 2025, were $19.113 million, compared to $26.966 million as of December 31, 2024[60]. - The company does not expect any credit losses on U.S. Treasury and residential mortgage-backed securities due to their backing by the U.S. government[57]. Operational Changes and Strategic Initiatives - On March 31, 2025, Primis deconsolidated Panacea Financial Holdings (PFH), resulting in a gain of $25 million recorded in noninterest income, which included a retained interest in PFH common stock valued at $21 million[29]. - The Company authorized a stock repurchase program to buy back up to 740,600 shares of its common stock, effective from December 19, 2024, to December 19, 2025[41]. - The company initiated Consumer Program modifications on January 1, 2025, focusing on principal forgiveness and term modifications[80]. - The company is currently evaluating the impact of new accounting standards on its financial statements, including ASU 2023-09 effective for annual disclosures beginning December 31, 2025[45]. - The company emphasized that results for the three and nine months ended September 30, 2025, are not necessarily indicative of future performance[151].