Breaking Down Primis Financial Corp. (FRST) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and wondering about the financial stability of Primis Financial Corp. (FRST)? Did you know that as of December 31, 2024, Primis had $3.7 billion in total assets, $2.9 billion in total loans, and $3.2 billion in total deposits? However, the company reported a net loss available to common shareholders of $14.7 million, or $0.59 loss per basic and diluted share, for the quarter ended December 31, 2024. Keep reading to explore key insights into FRST's financial health and what it means for investors like you.

Primis Financial Corp. (FRST) Revenue Analysis

Understanding where Primis Financial Corp. (FRST) generates its revenue and how those sources have changed over time is crucial for investors. Here's a breakdown of their revenue streams:

Breakdown of Primary Revenue Sources:

Primis Financial Corp. (FRST) primarily generates revenue through traditional banking activities. These include:

• Net Interest Income: The difference between the revenue generated from interest-bearing assets (like loans) and the expense associated with paying interest on liabilities (like deposits).
• Non-Interest Income: This includes income from services such as fees, wealth management, and other banking-related activities.

Year-over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and trends. While specific figures fluctuate annually, examining historical data reveals whether FRST is expanding, contracting, or maintaining its revenue base.

Primis Financial Corporation reported the following financials (as of the fiscal year 2024):

Total Assets: $3.677 billion compared to $3.704 billion the prior year. Total Deposits: $2.889 billion from $2.942 billion the prior year. Loans, net: $2.855 billion compared to $2.744 billion the prior year. Total Revenue: $47.448 million compared to $50.778 million the prior year. Net income available to common shareholders: $2.217 million, compared to $11.643 million the prior year.

Contribution of Different Business Segments to Overall Revenue:

To gain a deeper understanding, it's essential to examine the contribution of each business segment to the overall revenue:

• Community Banking: Revenue from branch operations, serving local customers and businesses.
• Mortgage Division: Income generated from mortgage origination and sales.
• Wealth Management: Fees and commissions from managing client investments.

Analysis of Significant Changes in Revenue Streams:

Changes in revenue streams can be driven by various factors, including:

• Economic Conditions: Interest rate changes, economic growth, and market volatility can impact lending and investment activities.
• Acquisitions and Divestitures: Mergers, acquisitions, or the sale of business units can significantly alter revenue streams.
• Regulatory Changes: New regulations can affect banking fees and other sources of income.
• Strategic Initiatives: New products, services, or market expansions can lead to revenue growth.

Here is a table summarizing key financial data for Primis Financial Corp. (FRST):

For more insights into Primis Financial Corp. (FRST)'s financial health, check out: Breaking Down Primis Financial Corp. (FRST) Financial Health: Key Insights for Investors

Primis Financial Corp. (FRST) Profitability Metrics

Analyzing Primis Financial Corp.'s (FRST) profitability involves examining several key metrics to understand its financial health and operational efficiency. Profitability metrics provide insights into how well a company generates profit from its revenues and assets.

Here's an overview of critical profitability aspects:

Gross Profit Margin: Gross profit is revenue minus the cost of goods sold (COGS). The gross profit margin, calculated as (Gross Profit / Revenue) x 100, indicates the percentage of revenue remaining after accounting for the direct costs of production. A higher gross profit margin suggests greater efficiency in managing production costs.

Operating Profit Margin: Operating profit, also known as earnings before interest and taxes (EBIT), is gross profit less operating expenses (e.g., selling, general, and administrative expenses). The operating profit margin, calculated as (Operating Profit / Revenue) x 100, reflects the percentage of revenue remaining after accounting for both production and operating costs. This metric provides insight into a company's profitability from its core business operations, excluding the effects of financing and taxes.

Net Profit Margin: Net profit, or net income, is the profit remaining after deducting all expenses, including interest, taxes, and other non-operating expenses, from revenue. The net profit margin, calculated as (Net Profit / Revenue) x 100, represents the percentage of revenue that translates into profit for shareholders. A higher net profit margin indicates greater overall profitability and efficiency.

Trends in Profitability Over Time: Examining profitability trends over several periods (e.g., quarterly or annually) helps identify whether a company's profitability is improving, declining, or remaining stable. Consistent improvement in profit margins indicates effective management and a strong competitive position, while declining margins may signal operational challenges or increased competition.

Comparison with Industry Averages: Comparing Primis Financial Corp.'s (FRST) profitability ratios with industry averages provides context for assessing its relative performance. If the company's profit margins are higher than the industry average, it suggests a competitive advantage or superior efficiency. Conversely, lower margins may indicate areas for improvement.

Analysis of Operational Efficiency: Operational efficiency is critical to profitability. Key factors to consider include:

• Cost Management: Effective cost management involves controlling and reducing expenses across all areas of the business. Companies with strong cost management practices typically achieve higher profit margins.
• Gross Margin Trends: Monitoring gross margin trends helps identify changes in production costs or pricing strategies. A rising gross margin indicates improved efficiency or pricing power, while a declining margin may signal rising costs or increased competition.

Additionally, understanding a company’s mission, vision, and core values can provide context for its financial strategies and long-term goals. More information can be found at: Mission Statement, Vision, & Core Values of Primis Financial Corp. (FRST).

Below is a hypothetical table illustrating how these metrics might look (Note: This is for illustrative purposes and does not reflect actual data):

In this example, all profit margins show a positive trend from 2022 to 2024, suggesting improved profitability and operational efficiency.

Primis Financial Corp. (FRST) Debt vs. Equity Structure

Understanding how Primis Financial Corp. (FRST) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and recent financing activities. A balanced approach to debt and equity funding can indicate financial stability and strategic decision-making.

As of the end of 2024, Primis Financial Corp. (FRST) maintains a mix of long-term and short-term debt to fund its operations. While specific figures fluctuate, it's important to monitor these levels in relation to the company's assets and equity. Keeping an eye on the balance between short-term obligations (due within a year) and long-term debt (due beyond a year) provides insights into the company's liquidity and solvency.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets.

• A higher ratio suggests greater reliance on debt, which can amplify both profits and losses.
• A lower ratio indicates a more conservative approach.

Recent activities, such as debt issuances, credit ratings, or refinancing efforts, provide clues about Primis Financial Corp. (FRST)'s financial strategy and health.

• New debt issuances might fund acquisitions or expansions.
• Improved credit ratings can lower borrowing costs.
• Refinancing can extend debt maturities or reduce interest rates.

Balancing debt financing and equity funding is a critical decision for Primis Financial Corp. (FRST). Debt can provide a cost-effective way to grow, but excessive debt can increase financial risk. Equity funding, while potentially more expensive, strengthens the balance sheet and provides a cushion during economic downturns. The optimal mix depends on the company's growth strategy, risk tolerance, and market conditions.

Analyzing these elements provides a clearer picture of Primis Financial Corp. (FRST)'s financial health and its approach to managing capital structure. Investors should consider these factors when assessing the company's long-term potential.

Primis Financial Corp. (FRST) Liquidity and Solvency

Liquidity and solvency are critical indicators of a financial institution's ability to meet its short-term and long-term obligations. For Primis Financial Corp. (FRST), assessing these metrics provides insights into its financial health and stability. Let's delve into key liquidity ratios, working capital trends, and cash flow dynamics to understand FRST's financial positioning.

Current and Quick Ratios:

The current and quick ratios are fundamental measures of a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity.

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. For the fiscal year 2024, FRST's current ratio can provide an understanding of its short-term financial health.
• Quick Ratio: Also known as the acid-test ratio, this is a stringent measure that excludes inventories from current assets to provide a more conservative view of liquidity. Analyzing FRST's quick ratio for 2024 helps determine if it can meet its immediate obligations without relying on the sale of inventories.

Analysis of Working Capital Trends:

Working capital, defined as current assets minus current liabilities, is a crucial indicator of a company's operational efficiency and short-term financial health. Monitoring the trends in FRST's working capital over recent years can reveal whether the company is efficiently managing its resources.

• Positive Working Capital: A positive working capital balance indicates that FRST has sufficient current assets to cover its current liabilities.
• Negative Working Capital: Conversely, a negative balance might signal potential liquidity issues, requiring closer scrutiny of asset and liability management.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of all cash inflows and outflows, categorized into operating, investing, and financing activities. Examining these trends offers insights into how FRST generates and uses cash.

• Operating Cash Flow: This reflects the cash generated from FRST's core business operations. Consistent positive operating cash flow is a sign of a healthy business model.
• Investing Cash Flow: This includes cash used for investments in assets like property, plant, and equipment (PP&E). Analyzing this can reveal FRST's strategy for growth and capital expenditure.
• Financing Cash Flow: This involves cash flow related to debt, equity, and dividends. It indicates how FRST is funding its operations and returning value to shareholders.

Potential Liquidity Concerns or Strengths:

Based on the analysis of the above factors, potential liquidity concerns or strengths can be identified.

• Strengths: Strong current and quick ratios, positive working capital trends, and consistent positive operating cash flow would indicate robust liquidity.
• Concerns: Declining liquidity ratios, negative working capital, or negative trends in operating cash flow could raise concerns about FRST's ability to meet its financial obligations.

A thorough analysis of these elements provides a holistic view of Primis Financial Corp.'s liquidity and solvency, enabling investors to make informed decisions. For further insights into investor behavior, consider exploring: Exploring Primis Financial Corp. (FRST) Investor Profile: Who’s Buying and Why?

Primis Financial Corp. (FRST) Valuation Analysis

Determining whether Primis Financial Corp. (FRST) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

Currently, up-to-date ratios for Primis Financial Corp. include:

• P/E Ratio: As of February 13, 2025, the P/E ratio stood at 13.4x, compared to the industry average of 9.8x.
• Price-to-Book (P/B) Ratio: The Price/Book ratio for FRST is 0.72x.

Analyzing these figures in isolation might not provide a complete picture, so it's crucial to compare them against industry peers and historical averages.

Stock price trends over the last 12 months (or longer) reveal the market's sentiment and historical performance of Primis Financial Corp. Examining this trend alongside broader market movements can offer insights into whether the stock's price is supported by fundamentals or driven by market speculation.

Primis Financial Corp.'s stock performance can be summarized as follows:

• 1-Year Return: As of February 13, 2025, Primis Financial Corp. shows a 1-year return of -3.87%.

Dividend yield and payout ratios are essential for investors seeking income. A higher dividend yield can be attractive, but it's equally important to assess the sustainability of dividend payments by examining the payout ratio, ensuring the company can comfortably afford its dividends.

For Primis Financial Corp. (FRST):

• Forward Dividend Yield: The forward dividend yield is approximately 3.94%.

Analyst consensus on stock valuation provides a summarized view of various experts' opinions on whether the stock is a buy, hold, or sell. This consensus is typically based on thorough research and financial modeling.

Here is a snapshot of recent analyst ratings for FRST:

These ratings offer a glimpse into how financial professionals perceive the stock's potential.

For further insights, you might find this resource helpful: Breaking Down Primis Financial Corp. (FRST) Financial Health: Key Insights for Investors

Primis Financial Corp. (FRST) Risk Factors

Primis Financial Corp. (FRST) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions. Investors should be aware of these potential challenges when evaluating the company.

Industry Competition: The financial services industry is highly competitive. Primis Financial Corp. (FRST) competes with other banks, credit unions, and non-bank financial institutions. Increased competition could lead to lower interest rates, reduced fee income, and a loss of market share. Maintaining a competitive edge requires continuous innovation and adaptation to changing customer preferences.

Regulatory Changes: Banks are subject to extensive regulation at both the federal and state levels. Changes in regulations, such as those related to capital requirements, lending practices, or consumer protection, could increase compliance costs and limit the company's ability to generate revenue. For example, stricter capital requirements may force the company to hold more capital, reducing the amount available for lending.

Market Conditions: Economic downturns, changes in interest rates, and other market factors can significantly impact a bank's performance. A recession could lead to increased loan defaults and reduced demand for financial services. Rising interest rates could decrease the value of fixed-rate assets and increase funding costs. Prudent risk management and diversification are essential to navigate these challenges.

Operational, financial, and strategic risks are often highlighted in earnings reports and filings. These include:

• Credit Risk: The risk that borrowers will default on their loans. Effective credit risk management is crucial for maintaining asset quality and minimizing losses.
• Interest Rate Risk: The risk that changes in interest rates will negatively impact earnings. Banks must manage their asset and liability mix to mitigate this risk.
• Liquidity Risk: The risk that a bank will be unable to meet its obligations when they come due. Maintaining adequate liquidity is essential for ensuring financial stability.
• Operational Risk: The risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. Robust internal controls and risk management systems are necessary to mitigate operational risk.

Mitigation strategies and plans are crucial for addressing these risks. Some common strategies include:

• Diversification: Diversifying the loan portfolio and revenue streams can reduce the impact of adverse events.
• Hedging: Using financial instruments to reduce exposure to interest rate risk or other market risks.
• Stress Testing: Conducting stress tests to assess the potential impact of adverse scenarios on the bank's financial condition.
• Compliance Programs: Implementing robust compliance programs to ensure adherence to regulatory requirements.

For more insights into Primis Financial Corp. (FRST) and its investors, check out this profile: Exploring Primis Financial Corp. (FRST) Investor Profile: Who’s Buying and Why?

Primis Financial Corp. (FRST) Growth Opportunities

Primis Financial Corp. (FRST) possesses several key growth drivers that investors should consider. These include strategic market expansions, potential acquisitions, and innovative product offerings designed to enhance customer engagement and satisfaction.

While precise future revenue growth projections and earnings estimates are subject to market conditions and company-specific developments, analysts' estimates provide a general outlook. For example, one source indicates an estimated earnings growth of 15.50%. However, it's essential to consult multiple sources and consider the dynamic nature of financial forecasting. The company's ability to capitalize on these areas will significantly influence its financial performance and investor returns.

Strategic initiatives and partnerships are crucial for Primis Financial Corp. (FRST) to drive future growth. Although specific details of recent partnerships are not available in the provided search results, such collaborations typically aim to expand market reach, enhance service offerings, and improve operational efficiency. Investors should monitor announcements regarding new partnerships and assess their potential impact on the company's growth trajectory. These collaborations can provide access to new technologies, markets, and customer segments, thereby boosting revenue and profitability.

Primis Financial Corp. (FRST) can leverage several competitive advantages to position itself for sustained growth. These may include a strong regional presence, established customer relationships, and a reputation for providing personalized financial services. Furthermore, the company's ability to adapt to changing market dynamics and regulatory requirements can provide a competitive edge. Investing in technology to improve customer experience and streamline operations is also vital. By capitalizing on these strengths, Primis Financial Corp. (FRST) can enhance its market position and achieve long-term growth.

Here's a look at potential growth aspects:

• Product Innovations: Development of new financial products and services tailored to meet evolving customer needs.
• Market Expansions: Strategic expansion into new geographic markets or customer segments.
• Acquisitions: Pursuing acquisitions to increase market share and expand service offerings.
• Technological Advancements: Investing in technology to improve customer experience and operational efficiency.

For additional insights into Primis Financial Corp.'s financial health, you can refer to this comprehensive analysis: Breaking Down Primis Financial Corp. (FRST) Financial Health: Key Insights for Investors