Primis Financial Corp. · NASDAQ:FRST
Primis Financial — Southern National Bancorp of Virginia — Q4 2020 Earnings Presentation
18 slides from Primis Financial's earnings presentation, Jan 28, 2021
Slide 1: Fourth Quarter 2020
NASDAQ|SONA Fourth Quarter 2020 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, a
Slide 3: Non-GAAP Measures
Non-GAAP Measures Statements included in this presentation include non-GAAP financial measures and should be read along with the accompanying tables. Southern National uses non-GAAP financial measures to analyze its performance. The measures entitled pre-tax pre-provision earnings – operating; pre-t
Slide 4: SONA Company Snapshot
SONA Company Snapshot Corp. Headquarters: McLean, VA Bank Headquarters: Glen Allen, VA Branches: 42 Ticker (NASDAQ): SONA Balance Sheet Assets: $3.1 billion Loans: $2.4 billion Deposits: $2.4 billion TCE/TA(1): 9.49% TBV/Share(1): $11.60 Second largest community bank headquartered in Virginia (<$10
Slide 5: Operating & Strategic Focus
Operating & Strategic Focus Manage through the pandemic and resulting economic effects Aggressively managing and monitoring relationships and loan portfolios greater than $5 million (65% of total portfolio). Cautiously evaluating strategic opportunities to improve the Company’s long-term growth in e
Slide 6: Operating Highlights – 4Q 2020
Operating Highlights – 4Q 2020 Net income of $9.0 million or $0.37 per diluted share Pre-tax, pre-provision operating return on average assets of 1.56% in Q4 ‘20 versus 1.78% in Q3 ’20 and 1.50% in Q4 ‘19 Net interest margin ex PPP(1) of 3.23%, down 5 basis points linked-quarter Cost of deposits was
Slide 7: Total Assets & Capital Levels
Total Assets & Capital Levels See reconciliation of Non-GAAP financial measures on slide 18.
Slide 8: Loan Portfolio
Loan Portfolio Total loans, excluding PPP, declined $54.6 million in Q4 ‘20, almost half of which was due to one credit line that paid off at year-end and will draw again in Q1 ‘21 Loan growth expected in 2021 as activity resumes and recent hires in commercial and SBA lending gain traction Approxima
Slide 9: Deposits
Deposits Deposits continued to grow in Q4 ’20 while overall deposit mix improved Time deposits are now approximately 20% of total deposits, down from 37% in the year-ago period Total cost of deposits declined 9 bps to 71 bps in Q4 ’20 compared to Q3 ‘20
Slide 10: Asset Quality
Asset Quality wo
Slide 11: Deferred Loans
12 hotels currently on deferral and represent the majority of loan deferrals by value 73% of the overall hotel portfolio is not deferred and paying as agreed Approximately 76% of the consumer deferrals are tied to one residential property with an LTV of approximately 40% Almost all deferred loans ar
Slide 12: Asset Quality Trends
NPAs / Loans + OREO (%) NCOs / Average Loans (%) Special Mention and Substandard loans increased largely due to 6 hotels that were downgraded in the quarter All 6 are affiliated with major brands, have an average LTV of 53% and DSC over 1% (pre-pandemic) 3 of the hotels are located at a major colleg
Slide 13: Allowance for Credit Losses
Allowance / Classified Loans (%) Allowance / Loans (%) CECL implemented December 31, 2020 Allowance for credit losses increased to 1.71% of loans excluding PPP balances (CECL) from 0.47% at December 31, 2019 (incurred loss) ACL is 319% of nonperforming loans (excluding SBA guarantees) and approximat
Slide 14: Profitability
Profitability “
Slide 15: Pre-tax Pre-Provision Operating Earnings
Pre-tax Pre-Provision Operating Earnings(1) PTPP operating earnings remain strong with PTPP ROAA of 1.56% for Q4 ‘20 Mortgage contribution of $2.57 million in Q4 ‘20, down from $3.83 million in Q3 ‘20 and up from $16 thousand a year ago (1) See reconciliation of Non-GAAP financial measures on slide
Slide 16: Net Interest Margin
Net Interest Margin (1) Adjusted NIM excludes acquired loan accretion and PPP associated balances, interest income and interest expense. PPP loans assumed funded at PPPLF cost of 35 basis points in all periods. See reconciliation of Non-GAAP financial measures on slide 18. GAAP and Adjusted(1) Margi
Slide 17: Appendix
Appendix
Slide 18: GAAP Reconciliation Tables
GAAP Reconciliation Tables *Net interest margin excluding the effect of SBA PPP loans assumes a funding cost of 35bps on average PPP balances in all applicable periods
Southern National Bancorp of Virginia — Q4 2020 Earnings Presentation on 6ix