Yahoo Finance Primis Financial Corp (FRST) Q1 2024 Earnings Call Transcript Highlights: Strategic Insights ...
Pretax Pre-Provision Earnings: Improved by $3.2 million year-over-year.
Core Bank Margin: Reported at 3.03%.
Cost of Interest-Bearing Deposits: Stood at 2.56%.
Panacea Financial Holdings Pretax Income: $1.6 million for the quarter.
Mortgage Division Pretax Income: $850,000 for the quarter, a significant improvement from a $250,000 loss year-over-year.
Premium Finance Division Pretax Income: Increased to $1.3 million from $850,000 year-over-year.
Earnings Per Diluted Share: $0.26, with core earnings per share at $0.29 after adjustments.
Total Assets: $3.9 billion as of March 31.
Total Deposits: $3.3 billion in Q1.
Core Net Interest Income: $27.0 million in Q1.
Core Net Interest Margin: Decreased 6 basis points to 3.03% in Q1.
Noninterest Income: $8.3 million in Q1, an increase from $6.1 million in Q4.
Noninterest Expense: $26.5 million in Q1, excluding certain adjustments.
Core Provision for Credit Losses: $1.6 million in Q1.
Operating Return on Average Assets: 75 basis points in Q1.
Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide an update on the timing for when you might be able to deconsolidate Panacea? A: Matthew Switzer, CFO of Primis Financial Corp, mentioned that while it's not definitive for the second quarter, they are hopeful it could be possible in the third quarter.
Q: Could you walk us through the deposit growth this quarter, particularly how much you have in digital deposits now? A: Matthew Switzer explained that core deposits were relatively flat, with a slight decline in the amount swept off balance sheet. The cost of digital deposits remained consistent, with a slight increase in the core bank deposits. He noted a general activity increase across their peers.
Q: Are you starting to see the pace of deposit cost increases start to slow? A: Matthew Switzer indicated a cautious optimism for stable margins in the upcoming quarter, with potential for margin expansion later in the year, even without a rate cut environment.
Q: Has there been any credit migration this quarter or any major upticks in classifieds? A: Matthew Switzer noted a slight increase in special mention credits but mentioned that substandard credits actually declined. Overall, there were no large directional swings in credit quality.
Q: Regarding the reserve build this quarter, was it out of an abundance of caution, or do you expect higher losses? A: Matthew Switzer clarified that the core reserve build was partly due to specific reserves on individual credits and partly model-driven under CECL, influenced by weaker economic forecasts at the front end.
Q: What does it cost to get new money in the door at the margin, and do you think that rate may back off a bit as the next quarter develops? A: Dennis Zember, CEO of Primis Financial Corp, and Matthew Switzer discussed that the cost of new deposits varies by channel, with digital deposits costing in the low fives and core bank deposits costing lower, driven by commercial activities in local markets.
These Q&A highlights from the Primis Financial Corp earnings call provide insights into the company's operational strategies, financial health, and future expectations in the face of current economic conditions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
