Primis Financial Corp (FRST, Financial) released its earnings report for the third quarter of 2023 on October 26, 2023. The company reported a 55% increase in diluted earnings per share, from $0.20 in Q3 2022 to $0.31 in Q3 2023. The net income for the quarter ended September 30, 2023, was $7.6 million, compared to $5.0 million for the same period in 2022.
Financial Highlights
Primis Financial Corp (FRST, Financial) reported several financial achievements in Q3 2023. The company achieved a return on average assets of 79 basis points, up 18 basis points from a year ago. It also generated a margin of 3.02%, up from 2.65% linked quarter due to sweeping off excess funds and tightly managing the balance sheet to maximize incremental spreads.
The company sold approximately $15 million of loans for a gain of approximately $400 thousand and participated out another $10 million to manage balance sheet capacity. Noninterest expense was reduced to $25.9 million for Q3 2023, compared to $30.6 million for Q2 2023. The company also maintained peer-group leading liquidity with no FHLB borrowings, only $75 million of brokered CDs, and $228.7 million of off-balance sheet funds swept off at September 30, 2023.
Company Performance Analysis
Primis Financial Corp (FRST, Financial) demonstrated significant improvement in its operating results across several fronts in Q3 2023. The company's net interest income increased approximately $1.0 million to $27.1 million during the quarter compared to the second quarter of 2023. The company's management continues to leverage the strong liquidity generated by the Bank's digital platform to conservatively manage the cost of deposits in the core bank.
Noninterest income increased during the third quarter to $9.9 million when compared to $8.5 million in the second quarter of 2023. Noninterest expense was $25.9 million for the third quarter of 2023, compared to $30.6 million for the second quarter of 2023.
Future Outlook
Primis Financial Corp (FRST, Financial) is well-positioned for the current environment, with substantial existing liquidity levels and deposit growth strategies. The company has strong capital levels that it expects to build further during the upcoming periods. The company also plans to consolidate eight retail banking offices in late October 2023, which will positively impact noninterest expense going forward.
Primis Financial Corp (FRST, Financial) is a financial services company with $3.8 billion in total assets, $3.1 billion in total loans, and $3.3 billion in total deposits as of September 30, 2023. The company provides a range of financial services to individuals and small- and medium-sized businesses through thirty-two full-service branches in Virginia and Maryland.
Explore the complete 8-K earnings release (here) from Primis Financial Corp for further details.
