Primis Financial Corp. Reports 90% Decline in Net Income to $812,000 in Q1 2024

Primis Financial Corp. reported its financial results for the three months ended March 31, 2024, showing a significant decline in net income and various shifts in its financial metrics compared to the same period in 2023. The company’s net income for Q1 2024 was $812,000, a stark decrease of 90% from $8.4 million in Q1 2023. This resulted in earnings per share dropping to $0.10 from $0.34 year-over-year.

Total revenue for the quarter reflected mixed results, with total interest and dividend income increasing to $50.3 million from $44.3 million in the prior year. However, total noninterest income fell sharply by 42% to $10.3 million, down from $17.7 million. The decline in noninterest income was attributed to lower mortgage banking income and reduced gains on other investments.

The company’s net interest income remained stable at $25.3 million, consistent with the previous year, while the net interest margin improved slightly to 2.84%, up from 2.81% in Q1 2023. The increase in average loans contributed to a rise in income on loans, driven by a 71 basis point increase in yield on the loan portfolio.

As of March 31, 2024, total assets increased to $3.89 billion, a 1% rise from $3.86 billion at the end of 2023. Total loans held for investment were reported at $3.2 billion, showing minimal growth. Total deposits also rose by 1% to $3.31 billion, with non-time deposits increasing by $67.9 million.

The company’s allowance for credit losses increased to 1.66% of total loans, up from 1.62% at the end of 2023. Net charge-offs for the quarter were $5.3 million, compared to $4.0 million in the same period last year, with a significant portion attributed to consumer loans.

Strategically, Primis Financial Corp. continues to focus on its subsidiaries, including Primis Mortgage Company and Panacea Financial Holdings, Inc. Notably, on December 21, 2023, Panacea completed a $24.5 million Series B financing round, in which Primis acquired approximately 19% of Panacea’s common stock.

The company’s operational metrics indicate a tightening of origination criteria in its consumer loan segment, focusing on borrowers with higher credit scores. As of March 31, 2024, Primis Bank operated 24 full-service branches in Virginia and Maryland, maintaining its commitment to providing financial services to individuals and small to medium-sized businesses.