NASDAQ$FRST

Primis Financial Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported net income of $9.6 million and EPS of $0.40 for the quarter ended September 30, 2020.

Southern National Bancorp of Virginia, Inc. reported a net income of $9.6 million for the quarter ended September 30, 2020, compared to $8.9 million for the quarter ended September 30, 2019. The earnings per share for the quarter were $0.40 basic and $0.39 diluted, compared to $0.37 basic and $0.36 diluted for the same period last year.

  • Net income reached $9.6 million, compared to $8.9 million in Q3 2019.
  • Basic EPS was $0.40, and diluted EPS was $0.39, compared to $0.37 and $0.36 respectively in Q3 2019.
  • Total revenue increased by 22% compared to the same quarter in 2019.
  • Loans on deferral declined significantly.

Headline financials

Total Revenue

$29.3M

Previous: $24M+22.0%
EPS (adj)

$0.39

Previous: $0.36+8.3%
Net Interest Margin

3.2%

Previous: 3.4%-5.6%
Operating Efficiency

52.8%

Previous: 52.8%+0.1%
Capital Expenditures

-$965K

Previous: -$504K-91.5%
Free Cash Flow

$8.62M

Previous: $8.36M+3.1%
Net Income

$9.59M

Previous: $8.86M+8.2%
Operating Income

$14.8M

Previous: $6.37M+132.4%
Gross Profit

$29.3M

Previous: $24M+22.0%
Cash & Equivalents

$149M

Previous: $48.6M+207.3%
Total Assets

$3.15B

Previous: $2.7B+16.9%
Stock-Based Comp

$92K

Previous: $85K+8.2%

Revenue & EPS history

Primis · Revenue · Quarterly

$29.3M

Q3 2020+22%vs Q3 2019
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 continued improvement in the funding mix over the next several quarters with more material reductions in total funding costs to occur in the last several quarters of 2021. It expects that early in 2021, time deposits will have moved to below 20% of total deposits and will start working to lower deposit costs in a way that will not affect the stability of the deposit base. Management expects to finish 2021 with the deposit side of the balance sheet balanced more similarly to its peers with costs that are in-line with the industry.

Tailwinds

  • Likelihood for increased core margins and profitability levels from this global repricing activity.
  • Focus on credit quality and credit trends.
  • Building an impressive story for loan and deposit growth in 2021.
  • Expect to finish 2021 with the deposit side of our balance sheet balanced more similarly to our peers with costs that are in-line with the industry.
  • Expect aggressive efforts to increase core deposits and shift the Company's deposit mix.

Headwinds

  • Deposit costs are higher than peers.
  • Impact of lending in the PPP program in the current quarter lowered the margin by 10 basis points.
  • Impact of higher cash balances as a percentage of earning assets resulting from successful efforts on deposit sales reduced the margin by six basis points compared to the same quarter in 2019.
  • Lower yields on loans are the results of the significant decline in interest rates in the first half of the year, which has also affected the Company's funding costs.
  • Decline in Income on account maintenance and deposit service fees.

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 Q3 2020

Historical avgQ3 2020

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro