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Sep 30, 2023
Primis Q3 2023 Earnings Report
Net income and diluted EPS increased, driven by improved operating results and margin expansion.
Key Takeaways
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.
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.
Positive Outlook
- 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.
Challenges Ahead
- 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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