Primis Financial Corp. · NASDAQ:FRST
Primis Financial — Q3 2021 Earnings Presentation
21 slides from Primis Financial's earnings presentation, Oct 28, 2021
Slide 1: Third Quarter 2021
Third Quarter 2021 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 pre-tax pre-provision operating earnings from continuing operations; pre-tax p
Slide 4: Company Snapshot
Company Snapshot 4 Corp. Headquarters: McLean, VA Bank Headquarters: Glen Allen, VA Branches: 40 Ticker (NASDAQ): FRST Balance Sheet Assets: $3.5 billion Loans: $2.3 billion Deposits: $2.8 billion TCE/TA(1): 9.02% TBV/Share(1): $12.28 Profitability ROAA: 0.72% ROAE: 6.01% ROATCE(1): 8.13% Net Intere
Slide 5: Third Quarter Highlights
(1) Results for continuing operations. See reconciliation of Non-GAAP financial measures on slide 21. Net income from continuing operations of $6.2 million or $0.25 per basic and diluted share Gross loans, excluding PPP balances, grew approx. 24% annualized Total deposits increased to $2.81 billion
Slide 6: Investment Thesis
Talented management team and board committed to building long-term shareholder value Footprint in attractive banking markets augmented by niche lines of business that will produce out-sized growth in higher quality assets over time Aggressive and early use of technology positioning the bank for supe
Slide 7: Management Team
Management Team 7 Name Years at Primis Years in Industry Title
Slide 8: Meaningful Opportunities in Attractive Markets
Deposit data as of June 30, 2021. Dollars in millions. Source: S&P Global. Meaningful Opportunities in Attractive Markets 8 Projected Population Growth 2021-2026 Total Population 2021 States MSAs Virginia Washington D.C. Richmond
Slide 9: Strategic Update
Strategic Update 9 Maximize core funding Embrace technology for competitive advantage Partner with FinTech entrepreneurs to drive above-average growth Core deposits now over 85% of total deposits with almost 20% non-interest bearing On-track for Q4 launch of digital offering built on modern technolo
Slide 10: Balance Sheet Trends
Dollars in millions. (1) See reconciliation of Non-GAAP financial measures on slide 21. Balance Sheet Trends 10
Slide 11: Deposit Trends
Deposit Trends Dollars in millions. (1) Core deposits exclude time deposits. CAGR ’17-2Q21: 122% ’19-2Q21: 141% Deposit Composition Core Deposit Growth (1) 11 Deposit composition continues to improve while deposit costs decline Focus is still on building customer relationships and continuing to grow
Slide 12: Loan Composition and Trends
Loan Composition and Trends Dollars in millions. Loan Trends and Yields Loan Composition (Ex. PPP) 12 Robust loan growth of 5.9%, or 24% annualized, linked-quarter excluding PPP balances Investments in loan officers and Panacea division are beginning to mature and should continue to drive strong gro
Slide 13: Asset Quality
Asset Quality 13 Classified loans and NPAs exclude guaranteed portion of SBA loans. NPAs / Loans (Ex. PPP) + OREO NCOs / Average Loans Criticized & Classified Loans / Total Loans (Ex. PPP) Deferred loans declined in Q3 to $7 million tied to one relationship that is on interest-only payments Schedule
Slide 14: Allowance for Credit Losses
Allowance for Credit Losses 14 Classified loans exclude guaranteed portion of SBA loans. ACL / Gross Loans (Ex. PPP) ACL / Classified Loans Provision of $1.1 million in Q3 due to higher non-PPP loan growth ACL coverage of gross loans declined to 1.40% due to improving economic fundamentals
Slide 15: Net Interest Margin Trends
Average Cash Balances Net Interest Margin 15 Dollars in millions. (1) See reconciliation of Non-GAAP financial measures on slide 21 Margin continues to be impacted by excess liquidity as average cash and equivalent balances increased $112 million in Q3 to $676 million Additional cash balances in Q3
Slide 16: Efficiency Ratio
Efficiency Ratio Non-Interest Expense and Efficiency Ratio 16 Dollars in thousands. (1) Results from continuing operations. (2) See reconciliation of Non-GAAP financial measures on slide 21. (1) Noninterest expense expected to grow at a mid-single digit rate in 2022 as we continue to invest in growt
Slide 17: Profitability
Profitability 17 Dollars in millions. (1) Results from continuing operations. (2) See reconciliation of Non-GAAP financial measures on slide 21. Return on Average Assets Pre-Tax Pre-Provision Earnings (1) Operating leverage expected to drive improving profitability in 2022 as liquidity is deployed i
Slide 18: Tangible Book Value and Diluted EPS Per Share Results
Tangible Book Value Per Share Diluted Earnings Per Share from Continuing Operations Per Share Results 18 (1) See reconciliation of Non-GAAP financial measures on slide 21. (1)
Slide 19: Summary
Summary 19 Talented management team and board committed to building long-term shareholder value Footprint in attractive banking markets augmented by niche lines of business that will produce out-sized growth in higher quality assets over time Aggressive and early use of technology positioning the ba
Slide 20: Appendix
Appendix of PRIMIS
Slide 21: Non-GAAP Reconciliation
*Net interest margin excluding the effect of SBA PPP loans assumes a funding cost of 35bps on average PPP balances in all applicable periods Non-GAAP Reconciliation 21 *Net interest margin excluding the effect of PPP loans assumes a funding cost of 35 bps on average PPP balances in all applicable pe