#USA #Dividend #McLean #Primis Financial #Q4 2024

Overview of Primis Financial Corp's Earnings Report

On January 28, 2025, Primis Financial Corp. (NASDAQ: FRST) disclosed its financial results for the fourth quarter of 2024, reflecting a challenging period for the firm. The report revealed a net loss available to common shareholders amounting to $14.7 million, translating to a loss of $0.59 per share, compared to a smaller loss of $8.2 million or $0.33 per share in the same quarter of the previous year. Throughout 2024, the overall net loss for the company stood at $7.5 million against a $7.8 million loss in 2023.

Factors Contributing to the Loss

The reported losses are primarily attributed to strategic decisions taken within the company to reposition its assets. Notably, Primis moved a significant portion of its third-party originated consumer loan portfolio to a ‘held for sale’ status during Q4 2024, leading to substantial marks impacting the earnings.

Dennis J. Zember, Jr., the President and Chief Executive Officer of Primis, acknowledged the costly moves made to enhance the company's long-term strategic value. He explained that while these financial adjustments have incurred short-term losses, they aim to neutralize credit impacts from the consumer loan segment and have included the sale of the Life Premium Finance business, as well as the establishment of a robust mortgage warehouse lending operation expected to improve returns moving forward.

Strategic Repositioning Efforts

In terms of strategic adjustments, Primis is actively investigating various pathways to boost shareholder value. These initiatives encompass:

• - Enhancing profitability via improved operating results, moving away from the burdens posed by the consumer loan portfolio's credit costs.
• - Intensifying efforts to convey the value and possibilities available in its core community banking operations, particularly focusing on funding advantages.
• - Exploring the deconsolidation of Panacea Financial Holdings, which is expected to demonstrate substantial economic improvements since its last market valuation in December 2023.

Zember highlighted that the organization remains dedicated to focusing on business lines indicative of long-term profitability through:

• - A core banking framework in Virginia and Maryland strong in community engagement, exhibiting a $2.2 billion low-cost customer deposit base.
• - Growth of the retail mortgage unit, reaching an impressive $800 million in production in the past year and anticipated to achieve around $1.25 billion in 2025.
• - Embarking on a national strategy that leverages a digital platform, concentrating on lower-risk mortgage warehouse lending.

Consumer Loan Program Transition

Significant changes include the company’s decision to cease new loan origins under its consumer program as of January 31, 2025. Accumulated balances as of the end of Q4 2024 were recorded at $173 million, with $39 million still active in a promotional period. The transition reinforces Primis’s strategic pivot away from high-risk lending while simultaneously refining its portfolio to enhance profitability.

Financial Performance Review

In terms of financial performance, the total assets of Primis Financial Corp. stood at approximately $3.7 billion by the end of 2024, reflecting the organization’s substantial stature in the banking sector. The report also disclosed a quarterly cash dividend of $0.10 per share, reinforcing the company’s commitment to providing returns to its shareholders.

Despite experiencing a downturn in profitability, Primis remains steadfast in their strategic initiatives. The leadership is optimistic about attaining enhanced growth and financial stability in 2025 based on the effective repositioning of the business and improving operational efficiency.

### Conclusion

As Primis Financial Corp. proceeds into 2025, all eyes will be on how successfully it executes its strategic plans and navigates through these challenging financial waters. Stakeholders are encouraged to monitor upcoming developments regarding operational performance and market capitalization adjustments.

For the latest financial updates, attend the upcoming conference call hosted by the management team on January 29, 2025, designed to elaborate further on the results and strategies moving forward. Participants can also access the details live through the conference call's dedicated web link.