Primis Financial (NASDAQ:FRST) Releases Earnings Results, Misses Expectations By $0.07 EPS

Primis Financial (NASDAQ:FRST) released its quarterly earnings results on Friday. The company reported $0.35 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.07), reports. Primis Financial had a return on equity of 5.49% and a net margin of 19.19%. The firm had revenue of $49.23 million during the quarter, compared to analyst estimates of $50.89 million.

Here are the key takeaways from Primis Financial’s conference call:

• Third-quarter earnings improved year over year to $8.7 million, or $0.35 per diluted share, while operating earnings rose substantially and pre-tax, pre-provision operating income increased 38% from the prior-year period.
• Core banking performance remained strong, with net interest margin expanding to 3.66% and core margin reaching 3.59% excluding a $700,000 interest recovery. Management expects additional, though more moderate, margin expansion from loan repricing and stable deposit costs.
• Mortgage banking revenue declined as higher rates reduced activity, and management expects annual mortgage volume to fall from roughly $1.6 billion to $1.1 billion if rates remain elevated. The mortgage division lost approximately $200,000 in the quarter, although the company has reduced fixed costs by about $4 million annually.
• Credit quality and capital trends improved, with non-performing assets declining to 1.43% of total assets, tangible book value rising 18% year over year, and the TCE ratio increasing to 8.14%. Management is targeting a TCE ratio above 8.5% through continued earnings growth and disciplined balance-sheet expansion.

Primis Financial Price Performance

FRST stock traded down $0.51 on Friday, reaching $15.43. The company had a trading volume of 17,068 shares, compared to its average volume of 173,144. The company’s fifty day moving average is $15.82 and its 200 day moving average is $15.37. The company has a market cap of $382.66 million, a P/E ratio of 7.15 and a beta of 0.73. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.96 and a current ratio of 1.02. Primis Financial has a 1 year low of $10.04 and a 1 year high of $16.88.

Primis Financial Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Friday, November 6th will be paid a $0.10 dividend. The ex-dividend date of this dividend is Friday, November 6th. This represents a $0.40 dividend on an annualized basis and a yield of 2.6%. Primis Financial’s dividend payout ratio is presently 18.52%.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on FRST shares. Raymond James Financial dropped their price target on Primis Financial from $19.00 to $18.00 and set a “strong-buy” rating for the company in a research report on Tuesday, October 6th. Weiss Ratings reiterated a “buy (b)” rating on shares of Primis Financial in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating and two have issued a Buy rating to the company. According to MarketBeat.com, Primis Financial currently has a consensus rating of “Buy” and an average price target of $17.50.

Primis Financial Company Profile

Primis Financial Corp. is a bank holding company headquartered in Glen Allen, Virginia. Its principal subsidiary, Primis Bank, provides banking and financial services to individuals, families, businesses and nonprofit organizations.

Primis Bank offers deposit products, residential and commercial real estate loans, consumer lending, business loans, treasury and cash-management services, mortgage banking and online and mobile banking. The bank also provides services designed to support small and middle-market businesses, including commercial lending and payment solutions.

The institution was formerly known as Sonabank and adopted the Primis name as part of a broader rebranding in 2020.