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Primis(FRST) - 2025 Q1 - Quarterly Results
FRSTPrimis(FRST)2025-04-29 21:12

Financial Performance - Primis Financial Corp. reported net income of 2.7million,or2.7 million, or 0.11 earnings per share, for Q1 2025, a significant recovery from a net loss of 23.3millioninQ42024[2].−NetincomeattributabletoPrimis′commonshareholdersforQ12025was23.3 million in Q4 2024[2]. - Net income attributable to Primis' common shareholders for Q1 2025 was 2,675,000, a significant recovery from a loss of 23,335,000inQ42024[46].−Adjustednetincomeattributabletocommonshareholders,accountingfornonrecurringitems,was23,335,000 in Q4 2024[46]. - Adjusted net income attributable to common shareholders, accounting for nonrecurring items, was 3,572,000 in Q1 2025 compared to a loss of 24,148,000inQ42024[46].−Earningspercommonshare−BasicforQ12025was24,148,000 in Q4 2024[46]. - Earnings per common share - Basic for Q1 2025 was 0.11, compared to a loss of (0.94)inQ42024[37].−Returnonaverageassetsimprovedto0.30(0.94) in Q4 2024[37]. - Return on average assets improved to 0.30% in Q1 2025, up from a negative 2.43% in Q4 2024[46]. - Operating return on average common equity for Q1 2025 was 4.14%, up from (25.13%) in Q4 2024[37]. - Pre-tax pre-provision operating earnings increased to 6,364,000 in Q1 2025 from 3,188,000inQ42024[46].AssetQuality−Theallowanceforcreditlosseswas1.453,188,000 in Q4 2024[46]. Asset Quality - The allowance for credit losses was 1.45% of loans held for investment at the end of Q1 2025, down from 1.66% in the same quarter of 2024[22]. - Non-performing assets as a percent of total assets decreased to 0.28% in Q1 2025 from 0.29% in Q4 2024[37]. - Non-performing assets decreased to 14,669 thousand in Q1 2025 from 16,739thousandinQ42024,areductionof12.416,739 thousand in Q4 2024, a reduction of 12.4%[42]. - The provision for credit losses was (1,596) thousand in Q1 2025, a substantial decrease from (33,483)thousandinQ42024,indicatingimprovedcreditquality[42].−Netcharge−offsasapercentofaverageloans(annualized)decreasedto1.47(33,483) thousand in Q4 2024, indicating improved credit quality[42]. - Net charge-offs as a percent of average loans (annualized) decreased to 1.47% in Q1 2025 from 3.83% in Q4 2024, reflecting improved credit quality[47]. Deposits and Funding - Total deposits decreased slightly to 3.16 billion as of March 31, 2025, from 3.17billionatDecember31,2024,with3.17 billion at December 31, 2024, with 152 million swept off balance sheet[24]. - Noninterest bearing demand deposits increased to 446millionatMarch31,2025,upfrom446 million at March 31, 2025, up from 439 million at December 31, 2024[24]. - The Company emphasizes driving up low-cost deposit balances and has no wholesale funding, being 100% funded with customer deposits[24]. - The digital platform ended Q1 2025 with over 1billionindeposits,andanewaffinitybrandwaslaunchedtodrivegrowthindepositproducts[10].−Totaldepositsdecreasedto1 billion in deposits, and a new affinity brand was launched to drive growth in deposit products[10]. - Total deposits decreased to 3,120,452 thousand in Q1 2025 from 3,217,099thousandinQ42024,adecreaseof3.03,217,099 thousand in Q4 2024, a decrease of 3.0%[44]. Loans and Lending Activities - Total loans receivable increased to 3,043,348 thousand in Q1 2025, up from 2,887,447thousandinQ42024,representingagrowthof5.42,887,447 thousand in Q4 2024, representing a growth of 5.4%[42]. - Commercial loans increased to 698,097 thousand in Q1 2025, up from 608,595thousandinQ42024,reflectingagrowthof14.7608,595 thousand in Q4 2024, reflecting a growth of 14.7%[42]. - Consumer loans surged to 357,652 thousand in Q1 2025, compared to 270,063thousandinQ42024,markingasignificantincreaseof32.4270,063 thousand in Q4 2024, marking a significant increase of 32.4%[42]. - Loans held for sale dropped significantly to 74,439 thousand in Q1 2025 from 247,108thousandinQ42024,adecreaseofabout69.9247,108 thousand in Q4 2024, a decrease of about 69.9%[39]. - Mortgage warehouse lending activity saw outstanding loan balances increase to 115 million, up 80% from 64millionattheendof2024[9].CapitalandEquity−Commonshareholders′equitywas64 million at the end of 2024[9]. Capital and Equity - Common shareholders' equity was 356 million, or 9.67% of total assets, at March 31, 2025[26]. - Book value per common share increased to 14.38asofMarch31,2025,anincreaseof14.38 as of March 31, 2025, an increase of 0.15 from December 31, 2024[26]. - Tangible book value per common share rose to 10.59,anincreaseof10.59, an increase of 0.17 from December 31, 2024[26]. - Total Primis common stockholders' equity rose to 355,602,000inQ12025,comparedto355,602,000 in Q1 2025, compared to 351,756,000 in Q4 2024[47]. - Common equity to assets ratio was 9.67% in Q1 2025, slightly up from 9.53% in Q4 2024[47]. Income and Expenses - Net interest income increased to 26,364thousandinQ12025,comparedto26,364 thousand in Q1 2025, compared to 26,077 thousand in Q4 2024, reflecting a growth of 1.1%[39]. - Noninterest income decreased to 7.8millioninQ12025from7.8 million in Q1 2025 from 13.2 million in Q4 2024, impacted by the sale of the Life Premium Finance division[16]. - Total funding costs decreased to 21,359thousandinQ12025from21,359 thousand in Q1 2025 from 25,261 thousand in Q4 2024, a decrease of 15.0%[44]. - Cost of funds decreased to 2.68% in Q1 2025 from 2.97% in Q4 2024[37]. - The cost of interest-bearing deposits was 2.93% in Q1 2025, down from 3.25% in Q4 2024, a reduction of 32 basis points[45]. Dividends and Shareholder Returns - The Board of Directors declared a dividend of $0.10 per share payable on May 28, 2025[27].