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Primis Financial (FRST)
NASDAQ:FRST
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Primis Financial
(NASDAQ:FRST)
49Neutral
Primis Financial (FRST) vs. S&P 500 (SPY)
Market Cap
$203.72M
Dividend Yield4.85%
Average Volume (3M)94.80K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth8.69%
EPS Growth38.76%
CountryUS
Employees528
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.30
Shares Outstanding24,722,734
10 Day Avg. Volume119,709
30 Day Avg. Volume94,798
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.74
Price to Cash Flow (P/CF)13.80
P/FCF Ratio1.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.00Price Target Upside71.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Primis Financial Business Overview & Revenue Model
Company DescriptionPrimis Financial Corp (FRST) is a financial services company headquartered in Virginia, United States. It operates primarily through its subsidiary, Primis Bank, providing a wide range of banking services. The company offers personal and business banking products, including checking and savings accounts, loans, mortgages, and treasury management services. Primis Financial focuses on delivering personalized banking experiences with an emphasis on community engagement and customer service.
How the Company Makes MoneyPrimis Financial makes money through a variety of revenue streams primarily centered around its banking operations. The company earns interest income from loans and mortgages extended to individuals and businesses, which is a major component of its revenue. Additionally, Primis Financial generates non-interest income through fees and service charges on deposit accounts, transaction processing, and other financial services. The bank also benefits from investment income and gains from securities trading. Primis Financial's strategic partnerships with local businesses and community involvement further contribute to its financial performance by enhancing its customer base and market reach.
Primis Financial Financial Statement Overview
Summary
Primis Financial's financial performance is mixed, with a stable gross profit margin but declining net and EBIT margins. The balance sheet shows moderate leverage but declining equity and assets, while cash flow volatility raises concerns about cash generation.Income Statement
Primis Financial's income statement reflects challenges in profitability, with net losses in the most recent periods. The gross profit margin remains stable, but the net and EBIT margins have declined significantly, indicating issues with operational efficiency. A concerning revenue drop is observed from 2023 to 2024, suggesting potential market or operational challenges.50
Neutral
Balance Sheet
The company's balance sheet shows a reasonable debt-to-equity ratio, suggesting moderate leverage. However, the declining stockholders' equity and total assets over time indicate potential financial instability. The equity ratio remains stable, providing some assurance of asset backing.60
Neutral
Cash Flow
Cash flow statements reveal volatility with negative free cash flow in the latest period. The operating cash flow has fluctuated, and the absence of growth in free cash flow raises concerns about the company's ability to generate cash sustainably. The cash flow to net income ratios are not available for analysis.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 107.70M | 143.96M | 125.81M | 103.93M | 99.80M | Gross Profit |
| 107.70M | 135.79M | 115.42M | 94.31M | 91.79M | EBIT |
| 6.49M | -10.11M | 49.97M | 39.97M | 29.90M | EBITDA |
| 0.00 | 0.00 | 0.00 | 47.78M | 38.09M | Net Income Common Stockholders |
| -7.54M | -7.83M | 17.74M | 31.25M | 23.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 64.50M | 230.28M | 314.17M | 801.50M | 349.42M | Total Assets |
| 3.70B | 3.86B | 3.57B | 3.41B | 3.09B | Total Debt |
| 95.88M | 157.67M | 426.08M | 201.53M | 223.57M | Net Debt |
| 31.37M | 80.12M | 348.22M | -328.64M | 27.38M | Total Liabilities |
| 3.33B | 3.46B | 3.18B | 201.53M | 223.57M | Stockholders Equity |
| 360.46M | 376.16M | 394.40M | 411.88M | 390.55M |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 26.89M | 12.09M | 24.86M | 28.58M | Operating Cash Flow |
| 0.00 | 28.82M | 13.11M | 27.32M | 29.66M | Investing Cash Flow |
| 0.00 | -312.76M | -617.51M | 10.46M | -204.27M | Financing Cash Flow |
| 0.00 | 283.63M | 152.10M | 296.21M | 338.87M |
Primis Financial Technical Analysis
Negative
8.17
Price Trends
9.93
Negative
10.78
Negative
11.19
Negative
Market Momentum
-0.56
Positive
32.88
Neutral
28.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRST, the sentiment is Negative. The current price of 8.17 is below the 20-day moving average (MA) of 9.08, below the 50-day MA of 9.93, and below the 200-day MA of 11.19, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 32.88 is Neutral, neither overbought nor oversold. The STOCH value of 28.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRST.
Primis Financial Risk Analysis
Primis Financial disclosed 38 risk factors in its most recent earnings report. Primis Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Primis Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $189.02M | 12.19 | 7.46% | 3.46% | 12.22% | -10.32% | |
63 Neutral | $12.75B | 9.36 | 8.64% | 84.32% | 13.82% | -3.89% | |
63 Neutral | $198.39M | 11.08 | 8.94% | 4.91% | 19.35% | 1.01% | |
62 Neutral | $203.05M | 8.54 | 11.53% | 2.95% | 9.39% | -6.09% | |
57 Neutral | $199.33M | 14.44 | 5.49% | 6.25% | 32.05% | -15.19% | |
50 Neutral | $199.92M | 16.65 | 6.62% | 3.67% | -6.85% | -51.70% | |
49 Neutral | $203.72M | ― | -2.01% | 4.85% | 8.69% | 38.76% |
* Financial Sector Average
Performance Comparison
FRST
Primis Financial
8.17
-2.01
-19.74%
EVBN
Evans Bancorp
36.10
11.07
44.23%
LCNB
LCNB
14.17
0.21
1.50%
PWOD
Penns Woods Bancorp
26.38
9.87
59.78%
CHMG
Chemung Financial
42.51
4.10
10.67%
MBCN
Middlefield Banc
24.37
2.91
13.56%
Primis Financial Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -27.89% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strategic shifts and challenges. While the company is taking significant steps towards improving its financial position by focusing on core bank growth, digital strategy, and successful divisions like Panacea, it also faces hurdles from legacy issues such as the consumer loan book. The strategic decisions are aimed at positioning the company for cleaner earnings and profitability in 2025.Highlights
Core Bank Deposit Growth
At December 31, 2024, the core bank had $2.1 billion in core deposits with a cost of deposits significantly lower than larger peers and community bank competition, contributing to a significant pricing advantage.
Digital Strategy and Customer Growth
Digital full-service checking account offering has grown to about 18,000 customers, with strategies in place to improve margins through lower rates on deposits and higher yields on assets.
Mortgage Division Expansion
The mortgage division has been growing production by 30% to 40% compared to the previous year, with a move from $250 million in production to over $1 billion.
Panacea Division Growth
Panacea division grew to just under $435 million in total loans and almost $100 million in low-cost funding, with growth rates around 30% to 40% and a potential client base of 10,000.
Net Interest Margin Improvement
The net interest margin is expected to improve to a range of 3.25% to 3.50% as strategies to reduce deposit costs and improve asset yields are implemented.
Lowlights
Consumer Loan Book Challenges
A $20.8 million provision was made for the consumer loan book to mark it to fair value, alongside $2.5 million in interest reversal related to charged-off consumer loans and $1.25 million in fraud losses.
Pre-Tax Loss Reporting
Reported a pre-tax loss of $17.4 million, largely due to the consumer program cleanup, with core profitability closer to $10 million pre-tax excluding one-time charges.
Interest Rate Lag Impact
There was a lag in adjustments to rates on the digital platform, costing approximately $1 million of interest carry in the fourth quarter.
Company Guidance
During the Primis Financial Corp. fourth quarter earnings call for fiscal year 2024, the company provided detailed guidance on various financial metrics. The core bank ended the year with $2.1 billion in core deposits and a deposit cost of $1.87 billion, which is 25 to 50 basis points lower than some larger peers. The company reported a pre-tax loss of $17.4 million, primarily due to a $20.8 million provision for the consumer loan book and related charges. Excluding these items, Primis would have made $7.1 million in pre-tax income, with core profitability closer to $10 million. The bank's tangible book value is expected to improve with strategic moves, including the exit from the consumer loan portfolio and the deconsolidation of Panacea, anticipated to add a meaningful gain. Primis has strategically reduced its digital deposit rates by 75 basis points and increased asset yields by 200 basis points, targeting a net interest margin of 3.25% to 3.50% as they scale their mortgage warehouse business in 2025. The mortgage division has shown consistent growth, with production increasing 30% to 40% year-over-year, and Panacea, focusing on medical professionals, has grown to nearly $435 million in loans and $100 million in low-cost funding, aiming to reach 10,000 clients.Primis Financial Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Primis Financial Appeals Nasdaq Delisting Decision
Neutral
Apr 14, 2025
Primis Financial Corp. announced that it has submitted a hearing request to Nasdaq to appeal a delisting determination and has received a stay of delisting pending a final decision by the Nasdaq Hearings Panel. The company plans to file its Form 10-K for the year ending December 31, 2024, before the scheduled hearing on May 15, 2025, to regain compliance with Nasdaq Listing Rules.
Spark’s Take on FRST Stock
According to Spark, TipRanks’ AI Analyst, FRST is a Neutral.
Primis Financial faces significant challenges with declining profitability, cash flow volatility, and strategic repositioning. While there are growth prospects in certain divisions and a stable dividend, the overall outlook is cautious due to operational and financial hurdles.
To see Spark’s full report on FRST stock, click here.
Delistings and Listing ChangesRegulatory Filings and Compliance
Primis Financial Faces Nasdaq Non-Compliance Notice
Neutral
Apr 9, 2025
Primis Financial Corp. announced that it received a notice from Nasdaq on April 3, 2025, indicating non-compliance with the Nasdaq Listing Rule due to a delayed filing of its Form 10-K for the period ending December 31, 2024. Despite being under a one-year Panel Monitor, the company appealed the determination to delist its securities and requested a hearing, which automatically stayed any suspension of trading for 15 days. Primis plans to file the Form 10-K promptly and expects to regain compliance before the hearing, ensuring no immediate effect on its Nasdaq listing.
Spark’s Take on FRST Stock
According to Spark, TipRanks’ AI Analyst, FRST is a Neutral.
Primis Financial faces significant challenges with declining profitability, cash flow volatility, and strategic repositioning. While there are growth prospects in certain divisions and a stable dividend, the overall outlook is cautious due to operational and financial hurdles.
To see Spark’s full report on FRST stock, click here.
DividendsBusiness Operations and StrategyFinancial Disclosures
Primis Financial Reports Loss and Announces Dividend
Negative
Jan 28, 2025
On January 28, 2025, Primis Financial Corp. announced a net loss of $14.7 million for the fourth quarter of 2024, influenced by strategic repositioning efforts including moving a consumer loan portfolio to held for sale and selling its Life Premium Finance business. The company declared a quarterly cash dividend of $0.10 per share, payable on February 26, 2025. Primis is focusing on growth in its core community bank, retail mortgage, and national strategies, expecting significant returns from its mortgage warehouse lending and partnerships, while exploring ways to maximize shareholder value and economic gain from its Panacea Financial holdings.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.