NASDAQ$FRST

Primis Financial Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Net income and diluted EPS increased, driven by improved operating results and margin expansion.

Primis Financial Corp. reported a net income of $7.6 million for Q3 2023, a 55% increase compared to Q3 2022. Diluted earnings per share increased by 55% to $0.31. The company experienced material improvement in operating results, an improved margin, and substantial new deposit account openings at low rates.

  • Return on average assets increased by 18 basis points year-over-year to 0.79%.
  • Net interest margin increased to 3.02%, up from 2.65% in the linked quarter.
  • Noninterest expense decreased to $25.9 million, compared to $30.6 million for the second quarter of 2023.
  • Nonperforming assets, excluding SBA guarantees, decreased by 21% linked-quarter to $19.6 million.

Headline financials

Total Revenue

$37.1M

Previous: $33.1M+12.1%
EPS (adj)

$0.32

Previous: $0.20+60.0%
Net Interest Margin

3.0%

Previous: 3.6%-15.4%
Cost of Funds

2.7%

No prior period
Operating ROA

0.8%

No prior period
Loans to Deposits

95.5%

No prior period
Efficiency Ratio

69.9%

Previous: 70.9%-1.4%
Leverage Ratio

8.8%

No prior period
CET1 Ratio

9.8%

No prior period
Tier 1 Risk-Based

10.1%

No prior period
Total Risk-Based

13.5%

No prior period
Capital Expenditures

$0.00

Previous: -$706K+100.0%
Free Cash Flow

-$3.57M

Previous: $4.35M-182.0%
Net Income

-$3.57M

Previous: $5.05M-170.6%
Operating Income

-$11.1M

Previous: $18.9M-158.6%
Gross Profit

$37.1M

Previous: $33.1M+12.1%
Cash & Equivalents

$93.9M

Previous: $97.7M-4.0%
Total Assets

$3.81B

Previous: $3.36B+13.6%
Stock-Based Comp

$76K

Previous: $116K-34.5%

Revenue & EPS history

Primis · Revenue · Quarterly

$37.1M

Q3 2023+12.1%vs Q3 2022
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

The Company expects building momentum at the community bank with unique technology and convenience factors, resulting in material deposit opportunities. Strong capital levels are expected to build further during the upcoming periods and believe position the company to have all the strategic options it needs.

Tailwinds

  • The Bank experienced a great quarter with an improved margin.
  • The Bank experienced substantial new deposit account openings at low rates.
  • The Bank experienced downward trends on operating expenses ahead of the planned consolidation of eight retail banking offices in late October 2023.
  • Building momentum at the community bank with unique technology and convenience factors, resulting in material deposit opportunities.
  • Existing liquidity levels are substantial with deposit growth strategies that are very incremental.

Headwinds

  • Potential impacts of the recent adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto
  • Potential increases in the provision for credit losses
  • Changes in interest rates, inflation, loan demand, real estate values, or competition, as well as labor shortages and supply chain disruptions
  • Adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions
  • Changes in management's plans for the future

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 2023

Historical avgQ3 2023

+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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