Yahoo Finance

• Core Deposits: $2.1 billion with a cost of deposits at 1.87% as of December 31, 2024.

• Branch Consolidation: Reduced from 42 to 24 branches with a 95% customer retention rate.

• Mortgage Division Growth: Production increased from $250 million to over $1 billion.

• Panacea Division Loans: Grew to just under $435 million with nearly $100 million in low-cost funding.

• Net Interest Income Improvement: $5.5 million better annualized, expected to reach $17 million annually once warehouses are at scale in 2025.

• Pre-Tax Income: Core profitability closer to $10 million pre-tax income, excluding Panacea holdings loss.

• Reported Loss: $17.4 million pre-tax loss, including $20.8 million provision for consumer loan book.

• Non-Recurring Items Impact: $4.7 million net gain from Life Premium Finance business sale, $1.8 million legal and accounting expenses, and $2 million other expenses.

• Digital Platform Rate Adjustments: Lagged adjustments cost approximately $1 million in interest carry in Q4.

• Warning! GuruFocus has detected 4 Warning Signs with FRST.

Release Date: January 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Primis Financial Corp (NASDAQ:FRST) successfully moved a portfolio into held for sale, which helped neutralize $20 million in credit costs and improved the company's strategic positioning.

• The core bank has $2.1 billion in core deposits with a cost of deposits at 1.87%, significantly lower than larger peers and community bank competition.

• The company has consolidated its branch footprint from 42 to 24 branches while maintaining a 95% customer retention rate.

• The digital banking platform has grown to 18,000 customers, offering one of the nation's only fully-digital, full-service checking accounts.

• The Panacea division, focused on doctors and dentists, has grown to $435 million in total loans and nearly $100 million in low-cost funding, with growth rates accelerating.

Negative Points

• Primis Financial Corp (NASDAQ:FRST) reported a pre-tax loss of $17.4 million, largely due to the consumer loan book's cleanup and associated provisions.

• The company faced $1.25 million in fraud losses on consumer loans and $2.5 million in interest reversals related to charged-off consumer loans.

• The Life Premium Finance business was sold, resulting in a temporary loss of spread until the Mortgage Warehouse reaches scale.

• The digital platform lagged in rate adjustments due to a planned technology change, costing approximately $1 million in interest carry for the fourth quarter.

• Retail mortgage operations were seasonally slow in the fourth quarter, contributing to a pre-tax earnings drag of roughly $0.5 million.