Primis Financial Corp. · NASDAQ:FRST
Primis Financial — Q3 2023 Earnings Presentation
22 slides from Primis Financial's earnings presentation, Oct 26, 2023
Slide 1: Third Quarter 2023
Third Quarter 2023 NASDAQ: FRST Exhibit 99.2
Slide 2: 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, and Section 21E of the Secur
Slide 3: Non-GAAP Measures
Statements included in this presentation include non-GAAP financial measures and should be read along with the accompanying tables. Primis uses non-GAAP financial measures to analyze its performance. The measures entitled net income adjusted for nonrecurring income and expenses; pre-tax pre-provisio
Slide 4: Welcome to Primis
A pioneering bank, committed to imagining a faster and more convenient way to serve you. WELCOME TO PRIMIS Corp. Headquarters: McLean, VA Bank Headquarters: Glen Allen, VA Branches: 32 Ticker (NASDAQ): FRST Valuation Market Capitalization: $191 million Price / Book Value per Share 0.48x Price / Tang
Slide 5: Third Quarter Improvement
Third Quarter Improvement Achieved an operating return on average assets of 81 basis points(1), up from 9 basis points in the second quarter and 64 basis points a year ago. Generated a margin of 3.02%, up from 2.65% linked quarter due to sweeping off excess funds and tightly managing the balance she
Slide 6: Funding Focus, Technology Rollout and Branch Consolidation
Organization Focused on Funding for Past Three Years Rolling out Technology and Consolidating Branches Attractive community bank deposit base with core bank cost of deposits of only 1.91% in Q3 Added new deposit customers in Q3 with $50 million of deposits at weighted average cost of 0.39% V1BE adop
Slide 7: Valuable and Reliable Funding Sources
Valuable and Reliable Funding Sources Core bank continues to provide highly attractive funding at levels generally better than peer and regional competition Alternative sources for funding alleviate pressure to reprice the core bank to raise liquidity and proves thesis of digital strategy Stable fun
Slide 8: Panacea Financial Update
Life-to-date loan originations of $407 mil. (committed bal.) Total deposits of $53.3 mil., up 15.1%+ un-annualized QoQ PTPP Income +142% QoQ., with PTPP ROA of 1.77% Sold $15.4 mil. of loans in Q3’23 with recognized gain of ~$400k Launched new student loan consultation services, driving future fee i
Slide 9: Life Insurance Premium Finance Update
4 Life Insurance Premium Finance Update Key Portfolio Metrics Key Performance Metrics 29 Average number of days from submission to loan closing ORIGINATION CYCLE TIME Average Actual Primis Processing Time is ~4 Days Placement Ratio Carrier Approvals Top-Tier Partners Facilitators 28% 27 82 4 Average
Slide 10: Primis Mortgage Update
Primis Mortgage Update Pre-tax earnings for Q3: $697K Aggressively managing costs to preserve profitability in lower volume environment Funded production of $169 million versus $184 million in Q2 Locked pipeline at September 30, 2023 down 7% from June 30, 2023 Now licensed in 43 states and D.C. Cont
Slide 11: Third Quarter Results
Third Quarter Results
Slide 12: Balance Sheet Trends
Dollars in millions. See reconciliation of Non-GAAP financial measures on slide 22. Balance Sheet Trends (1)
Slide 13: Built Diversification into Loan Book
Built Diversification into Loan Book in just 3 Years Never Lunged at long-maturity low rate CRE Disciplined around Cash secured lending & Medical Professionals NOO CRE By Collateral Type(1) Hotel portfolio down to $201 million from almost $300 million in early 2020 Occupancy, RevPAR, and ADR exceedi
Slide 14: Asset Quality
Classified loans and NPAs exclude guaranteed portion of SBA loans. Core net charge-offs exclude losses covered by a third party. Asset Quality NPAs / Loans (Ex. PPP) + OREO Core NCOs / Average Loans Criticized & Classified Loans / Total Loans (Ex. PPP) Nonperforming assets and classified loans decre
Slide 15: Allowance for Credit Losses
Allowance for Credit Losses ACL Walk Forward ACL / Gross Loans (Ex. PPP) Provision for credit losses of $1.6 million in Q3 versus provision of $4.3 million in Q2 Provision includes $2.1 million related to third-party managed portfolio with credit enhancement Provision offset by gain of equal amount
Slide 16: Deposit Trends
Dollars in millions. (1) Core deposits exclude time deposits and includes deposits that were swept off at 9/30 Deposit Trends Deposit Composition – Q3’23 Core Deposit Growth(1) Total deposits were essentially flat compared to Q2’23 as the balance sheet was managed to minimize excess cash Uninsured/u
Slide 17: Net Interest Income Progression
Net Interest Income Progression Dollars in thousands. Core excludes impact of PPP balances Net Interest Income and Net Interest Margin Net interest margin expanded to 3.02% from adjusted margin of 3.00% in Q2 (excluding excess liquidity). Higher earning asset yield offset funding cost increases as d
Slide 18: Non-Interest Expense and Efficiency Ratio
Q3 NIE, excluding unfunded commitment expense, includes the following: $0.3 million of expense due to third-party serviced loan portfolio, down from $0.5 million last quarter Mortgage expenses of $5.1 million, down from $5.3 million last quarter Nonrecurring costs of $0.2 million due to employee fra
Slide 19: Per Share Results
Tangible Book Value Per Share Diluted Earnings Per Share and Adjusted Diluted EPS (1) See reconciliation of Non-GAAP financial measures on slide 22. Per Share Results Q3’23 diluted EPS of $0.31, up 55% versus same period in 2022 AOCI impact to TBV per share of $1.23 at September 30, 2023, expected t
Slide 20: Summary
Talented management team and board committed to building long-term shareholder value Attractive core-funded community bank with a complementary digital funding platform Aggressive and early use of technology positioning the Bank for superior performance as the industry evolves Significant valuation
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Reconciliation
*Net interest margin excluding the effect of PPP loans assumes a funding cost of 35 bps on average PPP balances in all applicable periods. Non-GAAP Reconciliation