NASDAQ$FRST

Primis Financial Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a decrease in net income and EPS compared to the previous quarter, while also announcing the acquisition of SeaTrust Mortgage Company.

Primis Financial Corp. reported a net income of $4.6 million and EPS of $0.19 for Q1 2022, a decrease compared to the previous quarter. The company also announced a definitive agreement to acquire SeaTrust Mortgage Company and declared a quarterly cash dividend of $0.10 per share.

  • Net income from continuing operations totaled $4.6 million, or $0.19 per basic and diluted share.
  • Total assets were $3.22 billion, a decrease of 3.3% compared to Q1 2021.
  • Gross loans, excluding PPP balances, grew at an annualized pace of 17.6% during the quarter.
  • Total deposits were $2.69 billion.

Headline financials

Total Revenue

$24.9M

Previous: $28.8M-13.3%
EPS (adj)

$0.19

Previous: $0.38-50.0%
Net Interest Margin

3.0%

Previous: 3.4%-13.2%
Cost of Funds

0.5%

No prior period
Loans to Deposits

89.1%

Previous: 89.0%+0.1%
Efficiency Ratio

76.1%

Previous: 63.2%+20.4%
Operating Efficiency

75.7%

Previous: 62.5%+21.0%
ACL to Total Loans

1.2%

Previous: 1.5%-15.8%
TCE/TA

9.6%

Previous: 9.0%+6.2%
Leverage Ratio

10.1%

Previous: 9.3%+8.3%
CET1 Ratio

14.0%

Previous: 12.7%+10.6%
Tier 1 Risk-Based

14.4%

Previous: 13.1%+10.4%
Total Risk-Based

19.4%

Previous: 18.2%+6.9%
Capital Expenditures

-$47K

Previous: -$383K+87.7%
Free Cash Flow

$4.55M

Previous: $9M-49.5%
Net Income

$4.59M

Previous: $9.38M-51.0%
Operating Income

$14.4M

Previous: $17.1M-15.6%
Gross Profit

$24.9M

Previous: $28.8M-13.3%
Cash & Equivalents

$298M

Previous: $480M-37.9%
Total Assets

$3.22B

Previous: $3.33B-3.3%

Revenue & EPS history

Primis · Revenue · Quarterly

$24.9M

Q1 2022-13.3%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Primis · $2.03M total across 2 segments · Q3 2020

  • Account Fees
    $1.63M
  • BOLI Income
    $394K

Forward guidance

Management expects there to be only a minimal impact to tangible book value per share at closing and expects the business to be neutral to earnings and ROA for the remainder of 2022 as earnings are reinvested in recruiting and other growth-oriented systems.

Tailwinds

  • Momentum from investments made in 2021 with earning assets growth across the organization.
  • Panacea and Life Premium Finance started the year strong and should begin adding to profitability this year.
  • Core community bank continues to grow and become more profitable.
  • Primis Mortgage will contribute in the near future and will have synergies with our other business lines.
  • Digital offerings are going live and will provide the base for us to build our future on.

Headwinds

  • Equity balances were reduced by $10.6 million from December 31, 2021 to March 31, 2022 because of unrealized mark-to-market adjustments on the Company's available-for-sale securities portfolio due to dramatic increases in market interest rates during the quarter.
  • Primis anticipates closing this all-cash acquisition in the second quarter of 2022.
  • Management expects there to be only a minimal impact to tangible book value per share at closing and expects the business to be neutral to earnings and ROA for the remainder of 2022 as earnings are reinvested in recruiting and other growth-oriented systems.
  • Total deposits decreased to $2.69 billion at March 31, 2022, compared to $2.76 billion at December 31, 2021.
  • Net income from continuing operations totaled $4.6 million, or $0.19 per basic and diluted share, compared to $7.7 million, or $0.31 per basic and diluted share in the fourth quarter of 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.1%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.7%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+12.2%

Q1 2020

Best reaction

-8.5%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+4.8%+2.8%
Q4 2025-0.6%+5.4%-2.7%
Q3 2025+10.1%+10.7%+12.9%
Q2 2025-1.9%-4.5%-3.3%
Q1 2025-1.2%+7.0%+13.5%
Q4 2024-8.5%-4.3%-9.6%
Q3 2024-5.1%-3.1%+5.6%
Q2 2024+4.5%+3.5%-3.6%
Q1 2024-7.0%-11.1%-2.1%
Q4 2023+4.4%+8.2%-1.7%
Q3 2023+7.5%+21.2%+29.3%
Q2 2023-4.5%-2.5%-9.3%
Q1 2023-1.8%-13.1%-17.3%
Q4 2022-1.3%-0.8%-0.8%
Q3 2022+2.5%+1.8%-1.5%
Q2 2022+1.9%+1.1%+0.2%
Q1 2022+0.0%-2.5%-2.2%
Q4 2021-0.3%-1.0%-3.9%
Q3 2021+5.0%+7.2%+6.7%
Q2 2021+0.7%+1.4%-0.4%
Q1 2021+1.9%+3.1%+4.6%
Q4 2020+1.2%+2.1%+19.0%
Q3 2020+0.0%-3.5%+15.3%
Q2 2020-6.5%-4.5%-2.8%
Q1 2020+12.2%+3.3%+7.1%
Q4 2019+2.8%+4.3%-6.0%
Q3 2019+0.1%+0.6%+0.9%
Q2 2019+2.3%+1.7%-8.6%
Q1 2019-3.2%-3.9%-6.4%
Q4 2018+2.0%+7.3%+14.8%
Q3 2018+2.2%+3.1%+4.2%
Q2 2018-2.5%+2.6%+2.8%
Q1 2018+3.0%+2.5%+8.4%
Q4 2017+0.1%+0.7%-2.7%
Q3 2017-0.7%-3.3%-1.4%
Q2 2017-3.8%-2.7%-4.5%
Q1 2017-0.6%-4.3%-7.0%
Q4 2016-3.9%-1.4%+4.0%
Q3 2016-1.0%+0.0%+10.4%
Q2 2016-1.4%+3.9%+3.2%
Q1 2016-0.4%
Q4 2015-0.9%
Q3 2015+0.6%
Q2 2015-2.4%
Q1 2015-1.2%
Q4 2014-0.8%
Q3 2014+2.3%
Q2 2014+0.1%
Q1 2014-0.4%
Q4 2013+0.6%
Q3 2013+0.0%
Q2 2013+0.9%
Q1 2013-2.6%
Q4 2012+0.3%
Q3 2012+1.1%
Q2 2012+1.4%
Q4 2011+0.3%
Q1 2012+0.3%
Q4 2010+0.3%
Q3 2011+0.8%
Q2 2011+0.0%
Q1 2011+0.9%
Q3 2010-0.7%
Q2 2010+0.0%
Q1 2010+1.4%

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