Primis Financial Corp. · NASDAQ:FRST
Primis Financial — Q1 2021 Earnings Presentation
18 slides from Primis Financial's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021
First 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; pre-tax pre-provision operating retu
Slide 4: Company Snapshot
Company Snapshot 4 Corp. Headquarters: McLean, VA Bank Headquarters: Glen Allen, VA Branches: 41 Ticker (NASDAQ): FRST Balance Sheet Assets: $3.3 billion Loans: $2.4 billion Deposits: $2.7 billion TCE/TA(1): 9.01% TBV/Share(1): $11.84 Name change to Primis Financial Corp. and Primis Bank effective M
Slide 5: First quarter highlights
(1) See reconciliation of Non-GAAP financial measures on slide 18. (2) Nonperforming assets exclude guaranteed portion of SBA loans. Net income of $9.4 million or $0.38 per diluted share Operating return on average assets of 1.21% in Q1 ’21 versus 0.63% in Q1 ‘20 Pre-tax, pre-provision operating ret
Slide 6: Launch of a new digital bank expected in Q4 2021
Primis has announced the launch of a new digital bank expected in the fourth quarter of 2021 Nearly a dozen technology companies are participating in the effort, led by: Finxact – modern cloud-based core infrastructure Apiture – fully-integrated API driven digital banking front-end Savana – omni-cha
Slide 7: Balance Sheet Trends
(1) See reconciliation of Non-GAAP financial measures on slide 18. Balance Sheet Trends 7
Slide 8: Loan Composition and Trends
Total loans, excluding PPP, declined $69.2 million in Q1 ’21 versus Q4 ‘20, led by a $50.5 million decline in 1-4 family mortgages and HELOCs PPP loans, net of deferred fees, increased to $335 million versus $315 million at December 31, 2020 as new production exceeded payoffs and loan forgiveness Ne
Slide 9: Deposit Composition and Trends
Deposits continued to grow in Q1 ’21 while overall deposit mix improved Growth partially driven by growth in deposit relationship with a large mortgage lender ($70 million increase linked-quarter) Anticipate normalization of balance with approx. $100 million reduction in balances by the end of Q2 ‘2
Slide 10: Asset Quality
Asset Quality = PRIMIS 10
Slide 11: COVID-19 Deferrals
Dollars in millions. Numbers may not total due to rounding. Hotel deferrals improved in the quarter as two hotels on interest-only went back to full P&I payments 75% of the hotel portfolio is paying full P&I Approximately 70% of the consumer deferrals are tied to one residential property with an LTV
Slide 12: Asset Quality Trends
Classified assets and NPAs exclude guaranteed portion of SBA loans. NPAs / Loans (ex. PPP) + OREO (%) NCOs / Average Loans (%) Substandard loans remained flat linked-quarter OREO decreased $823 thousand in the quarter to $2.26 million at March 31, 2021 Migration to nonaccruals and realized losses re
Slide 13: Allowance for Credit Losses
ACL / Classified Loans (%) ACL / Gross Loans (ex. PPP) (%) Allowance for credit losses to loans excluding PPP balances of 1.70%, down slightly from 1.71% at December 31, 2020 ACL is 309% of nonperforming loans (excluding SBA guarantees) and approximately 85% of classified loans Allowance for Credit
Slide 14: Profitability
Profitability = PRIMIS 4
Slide 15: Profitability Trends
(1) See reconciliation of Non-GAAP financial measures on slide 18. Net income of $9.38 million for Q1 ’21 versus $8.96 million linked-quarter and $27 thousand for Q1 ‘20 ROAA of 1.19% and Pre-tax Pre-Provision ROAA(1) of 1.45% for Q1 ‘21 Mortgage contribution of $1.3 million in Q1 ’21 was negatively
Slide 16: Net Interest Margin
(1) See reconciliation of Non-GAAP financial measures on slide 18. Net interest margin was 3.41% for Q1 ’21 versus 3.58% for Q4 ’20 and 3.32% for Q1 ‘20 Includes $4.95 million of PPP fee income in Q1 ’21 from loan forgiveness and deferred fee amortization versus $ $4.87 million in Q4 ‘20 Net interes
Slide 17: Appendix
Appendix ” of PRIMIS
Slide 18: 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 18 *Net interest margin excluding the effect of PPP loans assumes a funding cost of 35 bps on average PPP balances in all applicable pe