Accomplished the Beforehand Introduced Acquisition of SeaTrust Mortgage Firm

Declares Quarterly Money Dividend of $0.10 Per Share

MCLEAN, Va., July 28, 2022 /PRNewswire/ — Primis Monetary Corp. (NASDAQ: FRST) (“Primis” or the “Firm”), and its wholly-owned subsidiary, Primis Financial institution (the “Financial institution”), immediately reported internet revenue from persevering with operations of $5.Zero million for the quarter ended June 30, 2022, in comparison with $4.6 million for the quarter ended March 31, 2022 and $8.Eight million for the quarter ended June 30, 2021.  Earnings per share (“EPS”) from persevering with operations for the three months ended June 30, 2022 have been $0.20 on a fundamental and diluted foundation, in comparison with $0.19 on a fundamental and diluted foundation for the three months ended March 31, 2022.

Internet revenue from persevering with operations adjusted for nonrecurring revenue and bills⁽¹⁾ was $6.Zero million for the three months ended June 30, 2022 versus $4.7 million for the three months ended March 31, 2022.  Changes, as described additional beneath, embrace nonrecurring bills as a consequence of department closures and merger-related bills.  Working earnings per share from persevering with operations⁽¹⁾ have been $0.25 on a fundamental and $0.24 on a diluted foundation, in comparison with $0.19 on a fundamental and diluted foundation for the three months ended March 31, 2022.

Internet revenue from persevering with operations for the six months ended June 30, 2022 was $9.6 million in comparison with $17.2 million for the six months ended June 30, 2021. Earnings per share from persevering with operations for the six months ended June 30, 2022 have been $0.39 on a fundamental and diluted foundation, in comparison with $0.71 fundamental and $0.70 diluted for the six months ended June 30, 2021.

As beforehand disclosed, on Might 31, 2022, Primis Financial institution accomplished the beforehand introduced acquisition of 100% of the inventory of SeaTrust Mortgage Firm (“SeaTrust”), a bank-owned mortgage firm primarily based in Wilmington, North Carolina, which was subsequently renamed Primis Mortgage Firm (“Primis Mortgage”).

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Commenting on the quarter, Dennis Zember, Jr., President and CEO stated “We’ve made vital progress in a number of areas of the Financial institution that we imagine have been limiting our market worth.  We’ve remixed our deposits with a deal with core deposits and checking accounts and constructed some distinctive traces of enterprise that may change the market’s opinion about our means to develop.  We’ve constructed a tradition that’s catching on in our native markets and past and have improved experience and expertise in our workforce quickly.  I imagine this quarter’s outcomes and the motion in a few of our key ratios are proof that we’re being profitable.”

Monetary Highlights for the Interval Ended June 30, 2022

• Enchancment in return on common belongings from persevering with operations⁽¹⁾  to 0.63% for the three months ended June 30, 2022 from 0.55% for the three months ended March 31, 2022.  Working return on common belongings from persevering with operations⁽¹⁾ improved by a bigger quantity to 0.76% from 0.57% within the first quarter of 2022.

• Loans held for funding grew at an annualized fee of 24.7% for the primary six months of 2022 or 30.8% internet of a decline in PPP balances.

• Non-interest bearing checking deposits have been $653.1 million, representing 24.3% of whole deposits at June 30, 2022, in comparison with 19.1% at June 30, 2021.

• Time deposits have been solely $329.2 million, representing 12.3% of whole deposits at June 30, 2022, down from 14.1% on the identical time in 2021.

• Internet curiosity margin of three.33% within the second quarter of 2022, was up considerably from 2.80% the identical interval final yr.

• FHLB borrowings of solely $25 million on the finish of the second quarter of 2022, which offers substantial liquidity alternatives.

• Sturdy capital place with Tier 1 Leverage Ratio at Primis Financial institution of 12.27% on the finish of the second quarter of 2022, which is greater than ample when it comes to supporting the Firm’s anticipated development.

• Income development outpaced bills, regardless of vital funding within the group.  Whole income within the second quarter of 2022 elevated 12.5% to $27.2 million in comparison with $24.2 million within the second quarter of 2021.   Whole income, excluding PPP-related revenue, elevated 25.5% within the second quarter of 2022 to $27.2 million from $21.7 million within the second quarter of 2021.

• Non-interest bills have been $20.Four million within the second quarter of 2022, a rise of 18.8% from the second quarter of 2021. Excluding nonrecurring income and bills, non-interest bills grew to $19.1 million within the second quarter of 2022, a rise of 11.2% from the $17.2 million recorded within the second quarter of 2021.

• Pre-tax pre-provision return on common belongings from persevering with operations⁽¹⁾ was 0.83% for the three months ended June 30, 2022, up Eight foundation factors from 0.75% for the three months ended March 31, 2022.  Pre-tax pre-provision working return on common belongings from persevering with operations⁽¹⁾ was 1.00% for the three months ended June 30, 2022, up 23 foundation factors from 0.77% for the three months ended March 31, 2022.

• Allowance for credit score losses to whole loans was 1.15% at June 30, 2022, in comparison with 1.23% at March 31, 2022.  Allowance for credit score losses to whole loans (excluding PPP balances and loans held on the market) was 1.16% at June 30, 2022, in comparison with 1.24% at March 31, 2022.

Working Efficiency

The Firm reported robust will increase in key ratios and development charges for the second quarter of 2022.  Talking concerning the efficiency enchancment, Mr. Zember stated, “Our main focus is on two areas proper now.  First, to tweak the core financial institution’s efficiency whereas rationalizing its price base.  We consolidated six branches within the present quarter and are planning to consolidate two further within the third quarter.  Secondly, to deliver the traces of enterprise shortly to the type of profitability that strikes the needle for our group.  Each Panacea and Life Premium Finance had substantial development within the quarter and whereas their pipelines and expectations are simply as substantial, the prices to supply and guide this development have already been incurred.  I anticipate all of those selections will compound and that our second half of the yr might be thrilling.”

Strains of Enterprise

Whereas the Firm’s essential enterprise continues to be the core financial institution, administration has invested diligently in sure traces of enterprise that increase the profitability and development charges a core neighborhood financial institution can supply shareholders.  These companies are useful resource gentle, digitally oriented and produce return on belongings which might be superior to financial institution solely returns with higher than common long-term credit score high quality.  The desk beneath highlights income and bills instantly attributable to the Firm’s varied enterprise traces.  Internet curiosity revenue within the desk beneath additionally contains an assumed price of funds given to every enterprise line for illustrative functions, with offsetting profit to internet curiosity revenue included within the financial institution column.  The financial institution column contains all actions not captured within the enterprise traces, together with mother or father firm actions.

Panacea has efficiently constructed a nationally-recognized model and now has ten nationwide and state affiliation partnerships.  The division has banking relationships with over 2,00Zero physician households throughout all 50 states. Panacea completed the second quarter of 2022 with roughly $143 million in excellent loans, a rise of $61.Four million, or 76%, from March 31, 2022. On the finish of the second quarter, Panacea’s mortgage portfolio was 52% industrial, 28% client and 20% scholar mortgage refinance.  As beforehand mentioned, Panacea turned worthwhile on a direct foundation within the first quarter.  Together with an assumed price of funds, Panacea turned worthwhile on a funded foundation within the second quarter in addition to highlighted above.

Commenting on Panacea’s latest momentum, Tyler Stafford, President of the division acknowledged, “The success of Panacea’s doctor-centric relationship banking mannequin continues to compound inside our goal market of docs throughout the nation, evidenced with a 5.0-star buyer evaluate score and the #1 rating on TrustPilot throughout the “Financial institution” class. With our just lately added bankers persevering with to ramp, our pipeline of mortgage alternatives is properly over $150 million and continues to construct. In consequence, we’re rising our mortgage development expectations for 2022 from a variety of $125 to $150 million to $175 to $200 million. Importantly, the credit score high quality of our portfolio stays pristine and, given the robustness of our pipeline, we’re ready to be much more selective on pursuing the strongest credit that maximize our profitability. Lastly, we now have a number of deposit-focused initiatives underway which we anticipate to translate into stronger core deposit development within the coming quarters.”

The Life Premium Finance Division, launched in late 2021, ended the second quarter of 2022 with excellent balances, internet of deferred charges, of $99.7 million, in comparison with $13.Zero million on the finish of the fourth quarter of 2021.  The Life Premium Finance Division is already displaying a wholesome degree of profitability (together with assumed price of funds) with simply 7 months of operations.  The division’s emphasis on know-how, operational efficiencies and a superior buyer expertise continues to resonate with {the marketplace}. Whole authorized credit score within the division completed the second quarter of 2022 at $413 million with remaining funding of premiums over the following three to 5 years. 

Primis acquired Primis Mortgage Firm on Might 31, 2022 and efficiently built-in its operations in June.  On July 11, Primis Mortgage Firm welcomed Chris Blevins to the workforce as a regional govt.  Chris got here from a big impartial mortgage firm the place he managed a big area that generated annual manufacturing of roughly $6 billion.  As beforehand mentioned, the Firm expects marginal contribution to earnings from mortgage in 2022 as Primis Mortgage builds out its workforce and achieves the wanted scale and manufacturing capability to make a significant earnings contribution in 2023.

As of July 25, Primis now provides a full service, full-featured checking account powered by its new digital platform.  The account’s low price of acquisition and administration permits the Financial institution to supply hyper-competitive phrases.  The account contains free overdrafts, refunds to the shopper of debit and credit score interchange revenue on its playing cards, free ATM transactions nationwide, invoice pay, peer-to-peer capabilities and supply of virtually any conceivable banking service on to prospects’ doorsteps in choose markets.

Internet Curiosity Earnings

Internet curiosity revenue elevated 12.9% to $24.6 million for the three months ended June 30, 2022 from $21.Eight million for the three months ended June 30, 2021.  The Firm’s reported internet curiosity margin for the second quarter of 2022 was 3.33% in comparison with 2.80% within the second quarter of 2021.  Internet curiosity revenue, excluding the impact of PPP charges, was $24.6 million within the second quarter of 2022, in comparison with $20.Zero million within the second quarter of 2021, a rise of $4.6 million or 23.1%.  Additionally excluding the consequences of PPP, the Firm’s internet curiosity margin expanded to three.35% within the second quarter of 2022 in comparison with 2.77% in the identical quarter of 2022.

The Firm’s mortgage development over the previous a number of quarters and the improved asset combine has been the driving force of constructive actions in each margins and internet curiosity revenue.   Loans held for funding represented 84.7% of whole common curiosity incomes belongings within the second quarter of 2022, in comparison with 74.6% in the identical quarter of 2021.  Yield on loans for the second quarter of 2022 was 4.20% in comparison with 4.34% within the second quarter of 2021.  Mortgage yields within the second quarter, excluding the impact of PPP, have been 4.23%, down from 4.46% in the identical quarter of 2021.

Whole price of funds within the second quarter of 2022 was 0.53%, down from 0.66% in the identical quarter of 2021.  Continued development in checking accounts as a proportion of whole deposits and decrease charges on different deposits led to the advance.   Whole demand deposits and whole non-time deposits on the finish of the second quarter of 2022 have been 24.3% and 87.7%, respectively, in contrast 19.1% and 85.9%, respectively, within the second quarter of 2021.

Non-interest Earnings

Throughout the three months ended June 30, 2022, Primis had non-interest revenue of $2.63 million, in comparison with $2.09 million for the three months ended March 31, 2022.  The rise was primarily as a consequence of revenues related to Primis Mortgage for just one month because the acquisition closed on Might 31, 2022.  The Firm closed $27.Zero million in loans in June, down 5.6% from Might because the workforce transitioned to Primis.  The fast slowdown within the mortgage and housing markets have precipitated many mortgage firms to restructure considerably, decreasing headcount in servicing, assist and manufacturing.  Whereas the present market circumstances aren’t superb for substantial revenues and profitability on this sector, the chance so as to add the wanted manufacturing capability at rather more cheap phrases than a yr in the past are actual.  The division expects to recruit worthwhile groups and the mandatory assist all through the rest of 2022 and be a fabric contributor to the Firm’s ends in 2023.

Non-interest Expense

Non-interest expense was $20.Four million for the three months ended June 30, 2022, which included $0.Four million in merger prices, $0.9 million in department closure prices, and new mortgage bills of roughly $0.Eight million.  Non-interest expense additionally included a restoration of unfunded dedication reserve of $168 thousand within the second quarter of 2022. Excluding merger prices, department closure prices, new mortgage bills and unfunded dedication reserve impacts, the Firm’s adjusted working expense was $18.5 million for the second quarter of 2022, in comparison with $18.6 million within the first quarter of 2022 and $17.Zero million for the second quarter of 2021.

The Firm’s working effectivity ratio from persevering with operations⁽¹⁾ within the second quarter of 2022 was 70.2% in comparison with 75.7% within the first quarter of 2022.  The Financial institution intends to consolidate two extra department areas within the third quarter of 2022.   Moreover, administration has recognized different areas of financial savings together with consolidation of sure staffing positions, contract renegotiations and different alternatives that we anticipate might save between $Three million and $Four million per yr.  These quantities, mixed with working efficiency enhancements on the Firm’s traces of enterprise, might cut back the working effectivity to beneath 63% by yr finish.

Mortgage Portfolio and Asset High quality

Loans held for funding elevated to $2.63 billion at June 30, 2022, in comparison with $2.39 billion at March 31, 2022.  Loans held for funding grew at an annualized fee of 24.7% for the primary six months of 2022 or 30.8% internet of a decline in PPP balances.  Mortgage development was sturdy throughout the group, significantly the Panacea and Life Premium Finance divisions which noticed their development charges speed up within the second quarter.  The Firm believes mortgage development will proceed at an analogous tempo as the primary half of 2022 for the remainder of the yr.

Nonperforming belongings, excluding parts assured by the SBA, have been $19.9 million at June 30, 2022 in comparison with $15.1 million at March 31, 2022 pushed by a big residential mortgage that had been adversely rated and is now topic to foreclosures.  The loan-to-value on the property is lower than 50% and no loss is anticipated.  Loans rated substandard or uncertain elevated to $27.1 million within the second quarter of 2022 from $23.6 million on the finish of the primary quarter of 2022. 

The allowance for credit score losses was $30.2 million at June 30, 2022, up $0.83 million from $29.Four million at March 31, 2022.  The Firm recorded a provision for credit score losses of $0.Four million in comparison with $0.1 million within the first quarter of 2022.  As a proportion of loans, excluding PPP balances, the allowance declined to 1.16% on the finish of the second quarter of 2022 in comparison with 1.24% on the finish of the primary quarter of 2022.  The Firm recorded $0.Four million in internet recoveries within the second quarter of 2022 in comparison with internet recoveries of $0.2 million within the first quarter of 2022. 

Deposits

Whole deposits decreased barely to $2.68 billion at June 30, 2022, in comparison with $2.69 billion at March 31, 2022.  Non-interest bearing demand deposits now characterize 24.3% of whole deposits and time deposits characterize solely 12.3% of whole deposits at June 30, 2022.

Shareholders’ Fairness

Guide worth per share as of June 30, 2022 was $16.17, a lower of $0.25 since March 31, 2022.  Tangible guide worth per share⁽¹⁾ on the finish of the second quarter of 2022 was $11.77, a lower of $0.34 since March 31, 2022.  Shareholders’ fairness was $399 million, or 12.3% of whole belongings, at June 30, 2022.  Tangible frequent fairness⁽¹⁾ at June 30, 2022 was $290 million, or 9.3% of tangible belongings⁽¹⁾.  Fairness balances decreased from March 31, 2022 to June 30, 2022 due to $8.5 million of unrealized losses on the Firm’s available-for-sale securities portfolio as a consequence of continued will increase in market rates of interest in the course of the quarter.  The Firm has the wherewithal to carry these securities till maturity or restoration of the worth and doesn’t anticipate realizing any losses on the investments.

Moreover, the Board of Administrators introduced and declared a dividend of $0.10 per share payable on August 26, 2022 to shareholders of report on August 12, 2022.  That is Primis’ forty-third consecutive quarterly dividend.

About Primis Monetary Corp.

As of June 30, 2022, Primis had $3.24 billion in whole belongings, $2.63 billion in whole loans and $2.68 billion in whole deposits. Primis Financial institution offers a variety of monetary companies to people and small- and medium-sized companies by thirty-four full-service branches in Virginia and Maryland and offers companies to prospects by sure on-line and cell functions.

Contacts
Dennis J. Zember, Jr., President and CEO
Matthew A. Switzer, EVP and CFO 
Cellphone: (703) 893-7400                                                                                       

Primis Monetary Corp., NASDAQ Image FRST
Web site: www.primisbank.com

Tackle: 
Primis Monetary Corp. 
6830 Previous Dominion Drive
McLean, VA 22101

Convention Name

The Firm’s administration will host a convention name to debate its second quarter outcomes on Friday, July 29, 2022 at 10:00 a.m. (ET). A dwell Webcast of the convention name is out there on the following web site: https://app.webinar.internet/Dn1WKpOkRPb.  Contributors can also name 1-888-346-2613 and ask for the Primis Monetary Corp. name.  A replay of the teleconference might be obtainable for five days by calling 1-877-344-7529 and offering Replay Entry Code 7372270.

Non-GAAP Measures

Statements included on this press launch embrace non-GAAP monetary measures and needs to be learn together with the accompanying tables. Primis makes use of non-GAAP monetary measures to research its efficiency. The measures entitled internet revenue from persevering with operations adjusted for nonrecurring revenue and bills; pre-tax pre-provision working earnings from persevering with operations; working return on common belongings from persevering with operations; pre-tax pre-provision working return on common belongings from persevering with operations; working return on common fairness from persevering with operations; working return on common tangible fairness from persevering with operations; working effectivity ratio from persevering with operations; working earnings per share from persevering with operations – fundamental; working earnings per share from persevering with operations – diluted; tangible guide worth per share; tangible frequent fairness; tangible frequent fairness to tangible belongings; and internet curiosity margin excluding PPP loans aren’t measures acknowledged below GAAP and subsequently are thought of non-GAAP monetary measures. We use the time period “working” to explain a monetary measure that excludes revenue or expense thought of to be non-recurring in nature.  Gadgets recognized as non-operating are those who, when excluded from a reported monetary measure, present administration or the reader with a measure which may be extra indicative of forward-looking developments in our enterprise.  A reconciliation of those non-GAAP monetary measures to probably the most comparable GAAP measures is supplied within the Reconciliation of Non-GAAP objects desk.

Administration believes that these non-GAAP monetary measures present further helpful details about Primis that permits administration and traders to guage the continuing working outcomes, monetary energy and efficiency of Primis and supply significant comparability to its friends. Non-GAAP monetary measures shouldn’t be thought of as a substitute for any measure of efficiency or monetary situation as promulgated below GAAP, and traders ought to contemplate Primis’ efficiency and monetary situation as reported below GAAP and all different related data when assessing the efficiency or monetary situation of Primis.  Non-GAAP monetary measures aren’t standardized and, subsequently, it is probably not attainable to match these measures with different firms that current measures having the identical or comparable names.

Non-GAAP monetary measures have limitations as analytical instruments, and traders shouldn’t contemplate them in isolation or as an alternative to evaluation of the outcomes or monetary situation as reported below GAAP.

Ahead-Trying Statements

This press launch and sure of our different filings with the Securities and Change Fee comprise statements that represent “forward-looking statements” throughout the that means of, and topic to the protections of, Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Change Act of 1934, as amended. All statements aside from statements of historic reality are forward-looking statements. Such statements can usually be recognized by such phrases as “might,” “plan,” “ponder,” “anticipate,” “imagine,” “intend,” “proceed,” “anticipate,” “venture,” “predict,” “estimate,” “might,” “ought to,” “would,” “will,” and different comparable phrases or expressions of the longer term or in any other case concerning the outlook for the Firm’s future enterprise and monetary efficiency and/or the efficiency of the banking business and financial system normally. These forward-looking statements embrace, however aren’t restricted to, our expectations concerning our future working and monetary efficiency, together with our outlook and long-term objectives for future development and new choices and companies; our expectations concerning internet curiosity margin; expectations on our development technique, expense administration, capital administration and future profitability; expectations on credit score high quality and efficiency; statements concerning the consequences of the continuing COVID-19 pandemic and associated variants on our enterprise and monetary outcomes and circumstances; and the assumptions underlying our expectations.

Potential traders are cautioned that any such forward-looking statements aren’t ensures of future efficiency and contain recognized and unknown dangers and uncertainties which can trigger the precise outcomes, efficiency or achievements of the Firm to be materially totally different from the longer term outcomes, efficiency or achievements expressed or implied by such forward-looking statements. Ahead-looking statements are primarily based on the data recognized to, and present beliefs and expectations of, the Firm’s administration and are topic to vital dangers and uncertainties. Precise outcomes might differ materially from these contemplated by such forward-looking statements. Components which may trigger such variations embrace, however aren’t restricted to: the Firm’s means to implement its varied strategic and development initiatives, together with its just lately established Panacea Monetary and Life Premium Finance Divisions, new digital financial institution and V1BE success service and up to date acquisition of SeaTrust; aggressive pressures amongst monetary establishments rising considerably; modifications in relevant legal guidelines, guidelines, or rules, together with modifications to statutes, rules or regulatory insurance policies or practices; modifications in administration’s plans for the longer term; credit score danger related to our lending actions; modifications in rates of interest, inflation, mortgage demand, actual property values, or competitors, in addition to labor shortages and provide chain disruptions; modifications in accounting rules, insurance policies, or pointers; opposed outcomes from present or future litigation, regulatory examinations or different authorized and/or regulatory actions, together with because of the Firm’s participation in and execution of presidency packages associated to the COVID-19 pandemic; the continuing impression of the COVID-19 pandemic on the Firm’s belongings, enterprise, money flows, monetary situation, liquidity, prospects and outcomes of operations; potential will increase within the provision for credit score losses; and different normal aggressive, financial, political, and market elements, together with these affecting our enterprise, operations, pricing, merchandise, or companies.

Ahead-looking statements converse solely as of the date on which such statements are made. These forward-looking statements are primarily based upon data presently recognized to the Firm’s administration and are inherently subjective, unsure and topic to vary as a consequence of any variety of dangers and uncertainties, together with, with out limitation, the dangers and different elements set forth within the Firm’s filings with the Securities and Change Fee, the Firm’s Annual Report on Kind 10-Okay for the yr ended December 31, 2021, below the captions “Cautionary Notice Relating to Ahead-Trying Statements” and “Threat Components,” and within the Firm’s Quarterly Reviews on Kind 10-Q and Present Reviews on Kind 8-Okay. The Firm undertakes no obligation to replace any forward-looking assertion to replicate occasions or circumstances after the date on which such assertion is made, or to replicate the incidence of unanticipated occasions. Readers are cautioned to not place undue reliance on these forward-looking statements.