Primis Financial (FRST) Q2 2024 earnings summary

Executive summary

• Net income for the quarter was $7.8 million, a significant improvement from a net loss of $311,000 in the same quarter last year, with core pre-tax earnings at $11.7 million after adjustments.

• Reported preliminary Q2 2024 results with net income of $5.9 million, reversing a net loss of $0.3 million in Q2 2023.

• Core business performance was strong, with steady net interest margins and effective operating expense controls contributing to results.

• Declared a $0.10 per share quarterly cash dividend, marking the 51st consecutive quarterly dividend.

• Results remain preliminary due to ongoing SEC consultation regarding accounting for a third-party originated consumer loan portfolio.

Financial highlights

• Core earnings, excluding PFH and one-time items, were $9.3 million or $0.38 per share, up from $0.03 per share a year ago.

• Total assets reached $4 billion as of June 30, with loans up 2.5% from Q1 and deposits at $3.3 billion.

• Net interest income rose to $27.6 million from $26.2 million; noninterest income increased to $14.5 million from $8.3 million.

• Pre-tax income was $8.0 million, compared to a pre-tax loss of $0.4 million in Q2 2023.

• Reported net interest margin was 3.03%; core net interest margin was 2.94%, down from 3.03% last quarter.

Outlook and guidance

• Expectation of continued strength and incremental progress in operating results, with a focus on deposit growth and commercial lending.

• Loan growth targeted at high single digits to 10% for the year, with similar expectations for 2025 if the rate environment remains stable.

• Management expects continued focus on growth strategy, expense management, and capital management.

• Anticipate further improvement in profitability as non-recurring accounting and legal expenses subside.

• Forward-looking statements caution that results are subject to risks, including the outcome of the SEC pre-clearance process and market conditions.