Primis Financial Corp. reported a notable first-quarter earnings decline, posting a net income of $7.3 million, or $0.30 per share, down from $22.6 million, or $0.92 per share, a year prior. However, when adjusted for one-time gains from the previous year, operating earnings per share rose 126% to $0.33. The bank’s operating return on assets improved to 0.84% from 0.40%, driven by effective margin management and expense control, while net interest margin increased to 3.43%.
The results underscore Primis’s strategic focus on enhancing operating leverage, achieving a 34% growth in core revenue against just a 4% rise in operating expenses. Key drivers include strong loan growth of 11.7% to $3.4 billion and significant deposit growth, particularly in non-interest-bearing checking accounts, which saw a 19% increase. The bank’s digital platform remains stable, contributing minimally to deposit growth, indicating a successful strategy centered on service and technology rather than aggressive pricing.
A key takeaway for market professionals is Primis’s commitment to sustainable profitability through operational efficiencies and a diversified deposit mix, positioning it well for future growth amid a competitive landscape.
Source: fool.com