Primis Financial Corp. · NASDAQ:FRST
Primis Financial — Southern National Bancorp of Virginia — Q2 2020 Earnings Presentation
12 slides from Primis Financial's earnings presentation, Jul 27, 2020
Slide 1: Sonabank NASDAQ: SONA
Exhibit 99.2 Sé&jBANK NASDAQ|SONA
Slide 2: Overview of SONA
Overview of SONA Company Overview Financial Highlights as of 2Q 2020 Headquarters: McLean, VA Branches:42 Balance Sheet ($mm) Assets:3.1 Loans:2.5 Deposits:2.2 TCE/TA (%):9.22% Profitability (%) PTPP ROAA:2.27% Net Interest Margin:3.33% Efficiency Ratio:49.1% Asset Quality (%) NPAs/Assets:0.57% NCOs
Slide 3: Operating Highlights – 2Q 2020
Operating Highlights – 2Q 2020 Originated approx. 3,800 PPP loans totaling $335.6 million. Deferred PPP fees (net of expenses) of $10.6 million. Increased provision and built reserve for loan losses plus purchased marks to 1.28% of total loans (excluding PPP). Increased non-CD deposits to total depo
Slide 4: Experienced Executive Team
Experienced Executive Team Name Position Experience Dennis J . Zember, Jr. President & CEO 26 Years Jeff Karafa EVP, Chief Financial Officer 37 Years Stephen Weber EVP, Chief Strategy Officer 22 Years Marie Leibson EVP, Chief SBA Lending Officer 34 Years Bruce Brockwell EVP, Head of Commercial Banki
Slide 5: Operating & Strategic Focus
Operating & Strategic Focus Manage through the pandemic and resulting economic effects Aggressively managing and monitoring relationships and portfolios greater than $5 million (65% of total portfolio) Cautiously evaluating strategic opportunities for best short-term impact on capital and credit ris
Slide 6: Pre-tax Pre-Provision Earnings
Pre-tax Pre-Provision Earnings Record levels of PTPP in 2Q 2020 Improvement in PTPP during the quarter supported by: Material improvement in cost of funds and funding mix Recoveries on acquired but previously charged off loans of approx. $2 million Improvement in mortgage contribution of approx. $4
Slide 7: Total Assets & Capital Levels
Total Assets & Capital Levels Asset Growth (PPP) accounted for approx. 115bps reduction in TCE/TA Pending implementation of CECL will reduce: TCE/TA by approx. 32bps TBV by approx. $0.39 per share Deferred PPP income, when realized will increase: TCE/TA by 28bps TBV by $0.34 per share Total Assets (
Slide 8: Net Interest Margin
Net Interest Margin Core Margin Trends Steady declines in cost of interest bearing deposits expected to continue through 1Q 21 CD maturities for 3Q and 4Q have current costs of approx. 1.90%. We expect over 100bps of savings on renewal. Approx. 70% of our variable rate loans have floors Only 9% of o
Slide 9: Panacea Financial
Panacea Financial Why Sonabank? Why Panacea? Professional relationship between the principals goes back several years, operating styles amongst both sides are well known and appreciated. Sonabank’s management has past history building national lines of business that are accretive to value propositio
Slide 10: Asset Quality Trends
NPAs / Loans + Oreo (%) NCOs / Average Loans (%) Past Dues / Loans (%) Classified Assets / Capital (%) Asset Quality remains consistently solid with improvement in the 2nd quarter as we continued to focus on important risk management activities The Bank had no charge offs in the 2nd quarter Past due
Slide 11: Allowance for Loan Losses
Reserves / Nonaccrual Loans (%) Allowance for Loan Losses ($MM) Reserves / Loans (%) Both the Allowance and Capital levels make the Bank very well-positioned to navigate the current economic environment from a position of strength. Because of the uncertain macroeconomic environment, the Bank added h
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Composition at June 30, 2020 - $2.52 Billion (Includes PPP) One of the Bank’s main strengths is the diversity of its portfolio. During the 2nd Quarter, total loan balances grew by 14% and C&I grew from 10% of the portfolio to 22% of the portfolio due to the Bank’s suc
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