Primis Financial Corp. Reports $1.2 Million Net Income in Q3 2024, Significant Recovery from Prior Year

Primis Financial Corp. reported a net income of $1.2 million, or $0.05 per share, for the third quarter of 2024, a significant recovery from a net loss of $6.0 million, or $0.24 per share, in the same period last year. For the nine months ending September 30, 2024, the company achieved a net income of $7.1 million, or $0.29 per share, compared to a modest profit of $0.3 million, or $0.01 per share, for the same period in 2023. The increase in profitability was primarily driven by a $3.7 million rise in net interest income, which reached $28.0 million for the quarter, alongside a reduction in noninterest expenses by $6.0 million, despite a higher provision for credit losses.

Total assets for Primis Financial increased by 4.4% to $4.0 billion as of September 30, 2024, compared to $3.9 billion at the end of 2023. The growth in assets was supported by a 1.1% increase in total deposits, which reached $3.3 billion. However, loans held for investment decreased by 7.6% to $3.0 billion, largely due to the reclassification of approximately $370 million in loans from held for investment to held for sale in anticipation of a sale. When including these loans, total loans increased by 3.6% from the previous period.

Strategically, Primis Financial is in the process of divesting its Life Premium Finance division, with a sale agreement signed with EverBank, expected to close in early 2025. This transaction is anticipated to yield a pre-tax gain of $4.5 million. The company also continues to focus on its Panacea Financial division, which provides financial services tailored for healthcare professionals, and has seen growth in its mortgage banking segment, contributing to an increase in mortgage banking income.

Operationally, Primis Financial's customer base remains concentrated in Virginia and Maryland, with 24 full-service branches. The company reported a slight increase in noninterest income to $9.3 million for the third quarter, although this was down from $9.7 million in the prior year, primarily due to lower income from consumer program derivatives. The allowance for credit losses as a percentage of total loans increased to 1.72% as of September 30, 2024, reflecting ongoing adjustments to account for credit risk in the current economic environment.

Looking ahead, Primis Financial anticipates continued pressure on net interest margins due to the competitive landscape and rising deposit costs. The company remains focused on managing its loan portfolio and improving asset quality while navigating the challenges posed by the current economic conditions, including fluctuating interest rates and inflation.