On July 25, 2024, Primis Financial Corp (FRST, Financial) released its 8-K filing reporting preliminary earnings for the second quarter of 2024. Primis Financial Corp is the bank holding company for Primis Bank, which provides a wide range of financial services to individuals and small and medium-sized businesses.
Performance Overview
Primis Financial Corp reported preliminary net income of $5.92 million for Q2 2024, a significant improvement from a net loss of $311,000 in Q2 2023. The company achieved a basic and diluted earnings per share (EPS) of $0.32, falling short of the analyst estimate of $0.38. Revenue for the quarter was $42.12 million, well above the estimated $29.29 million.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Assets | $3,997,539 | $3,868,675 |
| Total Loans | $3,300,562 | $3,194,352 |
| Total Deposits | $3,335,463 | $3,316,996 |
| Net Interest Income | $27,625 | $26,235 |
| Noninterest Income | $14,491 | $8,305 |
| Noninterest Expense | $30,166 | $30,554 |
| Net Income / (Loss) | $5,921 | $(311) |
| Basic Earnings per Common Share | $0.32 | $(0.01) |
| Return on Average Assets | 0.80% | (0.03%) |
| Return on Average Common Equity | 7.86% | (0.31%) |
Financial Achievements and Challenges
Primis Financial Corp's net interest margin improved to 3.03% in Q2 2024 from 2.64% in Q2 2023, reflecting better asset-liability management. The company also reported a significant increase in noninterest income, which rose to $14.49 million from $8.31 million in the same period last year. This growth was driven by higher fee income and other noninterest revenue streams.
However, the company faced challenges, including a provision for credit losses of $3.93 million, slightly down from $4.36 million in Q2 2023. Net charge-offs increased to $5.00 million from $1.61 million, indicating some deterioration in credit quality. Despite these challenges, the company's overall financial health remains robust, with total assets nearing $4 billion and a solid deposit base.
Dividend Declaration
The Board of Directors declared a quarterly cash dividend of $0.10 per share, payable on August 23, 2024, to shareholders of record on August 9, 2024. This marks the fifty-first consecutive quarterly dividend, underscoring the company's commitment to returning value to its shareholders.
Conclusion
Primis Financial Corp's preliminary Q2 2024 results demonstrate strong financial performance, with significant improvements in net income and earnings per share. The company's ability to exceed analyst estimates and maintain a stable dividend payout highlights its resilience and effective management strategies. Investors and stakeholders will be keenly watching the ongoing consultation with the SEC and its potential impact on future financial statements.
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Explore the complete 8-K earnings release (here) from Primis Financial Corp for further details.
