NASDAQ$FRST

Primis Financial Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported basic and diluted earnings per share from continuing operations.

Primis Financial Corp. reported net income from continuing operations of $5.1 million for the quarter ended September 30, 2022. Earnings per share from continuing operations were $0.21 on a basic and $0.20 on diluted basis.

  • Net income from continuing operations was $5.1 million.
  • Earnings per share from continuing operations were $0.21 on a basic and $0.20 on diluted basis.
  • Total revenue of $33.0 million, up 29.4% from the same period in 2021.
  • Net interest margin of 3.57%, up from 2.87% in the same period last year.

Headline financials

Total Revenue

$33.1M

Previous: $25.9M+27.7%
EPS (adj)

$0.20

Previous: $0.25-20.0%
Net Interest Margin

3.6%

Previous: 2.9%+24.4%
Efficiency Ratio

70.9%

No prior period
Capital Expenditures

-$706K

Previous: -$2.13M+66.9%
Free Cash Flow

$4.35M

Previous: $1.81M+140.8%
Net Income

$5.05M

Previous: $3.94M+28.3%
Operating Income

$18.9M

Previous: $11.7M+61.9%
Gross Profit

$33.1M

Previous: $25.9M+27.7%
Cash & Equivalents

$97.7M

Previous: $651M-85.0%
Total Assets

$3.36B

Previous: $3.45B-2.8%
Stock-Based Comp

$116K

No prior period

Revenue & EPS history

Primis · Revenue · Quarterly

$33.1M

Q3 2022+27.7%vs Q3 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Management successfully renegotiated the Bank's core processing contract in the third quarter and expects savings of approximately $0.5 million quarterly beginning in the fourth quarter of 2022. Combined with operating performance improvements at the Company's lines of business and other efficiency improvements, management believes the operating efficiency ratio should moderate to below 65% by year end.

Tailwinds

  • Industry low deposit beta
  • Capitalized on the chaos in the national mortgage scene and recruited two teams with annual production of approximately $700 million
  • Introduced the digital bank into existing markets
  • Unique V1BE delivery service
  • Interchange cash back feature that averages about 5% of the account balance

Headwinds

  • Mortgage results center on signing bonuses for two substantial teams
  • Full run rates on staff reductions and restructures
  • Branch closings
  • Renegotiation of the core system contract
  • More normal levels of fraud expenses

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 2022

Historical avgQ3 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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