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Primis Financial (FRST)
NASDAQ:FRST
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Primis Financial
(NASDAQ:FRST)
50Neutral
Primis Financial (FRST) vs. S&P 500 (SPY)
Market Cap
$215.58M
Dividend Yield4.85%
Average Volume (3M)99.35K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth5.60%
EPS Growth53.10%
CountryUS
Employees528
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.30
Shares Outstanding24,722,734
10 Day Avg. Volume85,293
30 Day Avg. Volume99,351
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.69
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.39
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.00Price Target Upside60.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Primis Financial Business Overview & Revenue Model
Company DescriptionPrimis Financial Corp. operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States. Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits. The company also offers commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services. In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking. As of December 31, 2021, it operated forty full-service branches in Virginia and Maryland. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp. Primis Financial Corp. was founded in 2004 and is based in McLean, Virginia.
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
Neutral
8.72
Price Trends
9.40
Negative
10.38
Negative
11.08
Negative
Market Momentum
-0.29
Negative
49.45
Neutral
66.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRST, the sentiment is Neutral. The current price of 8.72 is above the 20-day moving average (MA) of 8.33, below the 50-day MA of 9.40, and below the 200-day MA of 11.08, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 66.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $222.52M | 10.48 | 10.50% | 4.38% | 14.11% | 29.41% | |
66 Neutral | $216.74M | 13.40 | 7.72% | 3.12% | 8.36% | -2.51% | |
64 Neutral | $12.65B | 9.74 | 8.04% | 17044.64% | 12.65% | -5.11% | |
63 Neutral | $209.71M | 9.24 | 10.65% | 2.82% | 6.05% | -9.27% | |
60 Neutral | $214.90M | 17.89 | 6.62% | 3.43% | -6.85% | -51.70% | |
58 Neutral | $205.70M | 12.69 | 6.55% | 5.86% | 24.45% | 25.77% | |
50 Neutral | $215.58M | ― | -2.01% | 4.85% | 5.60% | 53.10% |
* Financial Sector Average
Performance Comparison
FRST
Primis Financial
9.00
-0.97
-9.73%
EVBN
Evans Bancorp
39.53
14.83
60.04%
LCNB
LCNB
14.94
1.11
8.03%
PWOD
Penns Woods Bancorp
29.57
12.04
68.68%
CHMG
Chemung Financial
44.69
2.57
6.10%
MBCN
Middlefield Banc
29.22
6.74
29.98%
Primis Financial Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 4.56%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The call highlighted significant growth strategies and improvements in key segments like the Core Community Bank and Mortgage division, but also addressed challenges with consumer loan volatility, Panacea consolidation impact, and high digital core costs.Q1-2025 Updates
Positive Updates
Core Community Bank Growth
The Core Community Bank's customer pipeline tripled compared to last year, and loans increased by $25 million in April. Loan repricings were in the mid-7% range, with new deposit accounts under 2%.
Mortgage Division Expansion
The Mortgage division saw a 50% increase in pre-tax income per closed volume compared to 2024, and new teams were added, increasing production capacity by $500 million.
Earning Assets Growth Strategy
A strategy to grow earning assets by $375 million to reach the previous level, with expected growth from the core bank, Warehouse, and Panacea contributing $100 million, $150 million, and $125 million respectively.
Margin Improvement
Net interest margin improved to 3.15%, with core bank cost of deposits at 183 basis points and new loan yields over 7%.
Digital Platform Strategy
The digital platform funds Panacea’s excess lending and Mortgage Warehouse, expected to earn 1.5% and over 2% after-tax ROI respectively.
Negative Updates
Consumer Loan Volatility
The consumer loan portfolio caused volatility, with promotional loans declining from $90 million to $17 million. An additional provision was booked due to a CECL model evaluation.
Panacea Consolidation Impact
Consolidating Panacea reduced operating ROA by 10 basis points due to reporting a share of non-tax affected operating loss.
Non-Interest Income Decline
Non-interest income decreased to $7.8 million due to a $1.2 million negative swing in fee income related to the consumer program.
High Digital Core Costs
The cost to run the digital core is high, impacting profitability until core consolidation is achieved.
Company Guidance
During the Primis Financial Corporation First Quarter Earnings Call, significant guidance was provided regarding the company's strategic focus on enhancing key financial metrics. The call highlighted three core strategies aimed at improving return on assets (ROA) by 20 to 25 basis points: growth in earning assets, expansion of the Mortgage division, and consolidation of core processing contracts. Primis anticipates $100 million growth from the core bank, $150 million in Warehouse, and $125 million from Panacea. The Mortgage division aims to add 20 basis points to ROA, driven by new teams and increased production capacity. Simplifying core processing is expected to boost ROA by 15 to 18 basis points. Despite challenges, the company maintains tight control over operating expenses, which remained flat compared to the previous year, and projects an exit rate of around $18 to $18.5 million per quarter by year-end. Net interest margin is expected to expand by 10 to 15 basis points by year-end, supported by favorable loan repricing and deposit cost management.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.
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.