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New words:
accelerated, accurate, aforementioned, alongside, analyzed, baseline, BOLI, buyer, category, CME, constrain, death, depressed, diligence, employment, free, frequently, isolated, largest, lead, maker, meaningfully, monthly, nonfarm, produce, proportion, quicker, revealed, scenario, schedule, seasoning, smaller, step, strategy, stressed, surrendered, tangible, tenor, test, tested, testing, transfer, transferee, transferred
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expanded, identified, LIBOR, London, month, transition, VA
Financial report summary
?Management Discussion
- Three-Month Comparison. Net loss for the three months ended September 30, 2023 totaled $3.6 million, or $0.14 basic and diluted loss per share, compared to net income of $5.0 million, or $0.21 basic and $0.20 diluted earnings per share for the three months ended September 30, 2022. The 171% decrease in net income (loss) during the three months ended September 30, 2023 compared to the three months ended September 30, 2022 was driven by an $11.2 million of goodwill impairment charge in the third quarter.
- Net income for the three months ended September 30, 2023, excluding the goodwill impairment charge and $200 thousand of fraud related expenses from an employee fraud previously disclosed in the second quarter, was $7.7 million. Earnings per basic and diluted share was $0.32 when excluding these items, which is an increase of $0.11 per share from the same period last year. The increase from prior year in income and earnings per share when excluding these items was driven by higher mortgage banking income, gains associated with the sale of loans and improved core expense levels when adjusting for mortgage related expenses.
- Nine-Month Comparison. Net income for the nine months ended September 30, 2023 totaled $2.2 million, or $0.09 basic and diluted earnings per share, compared to $14.5 million, or $0.60 basic and $0.59 diluted earnings per share for the nine months ended September 30, 2022. The 85% decrease in net income during the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 was primarily related to a $11.2 million of goodwill impairment charge in the third quarter of 2023. The decrease was also driven by higher noninterest expenses from an increase in employee compensation and benefits expense due to the growth of Primis Mortgage, higher data processing expense driven by the increase in customer accounts and related transactions on our digital deposit platform, and an increase in provision for loan losses associated with several specific loan relationships in the current year, partially offset by higher mortgage banking income due to the growth of Primis Mortgage, net interest income as a result of growth in loans and higher interest rates, and gains associated with the sale of loans in 2023.