Primis Financial Corp. (NASDAQ:FRST) Q3 2024 Earnings Conference Call October 25, 2024 10:00 AM ET

Company Participants

Matthew Switzer - Chief Financial Officer
Dennis Zember - President and Chief Executive Officer

Conference Call Participants

Nicholas Lorenzoni - Stephens Inc.
Christopher Marinac - Janney Montgomery Scott

Operator

Thank you for standing by. My name is Ian, and I will be your conference operator today. At this time, I would like to welcome everyone to the Primis Financial Corp. Third Quarter Earnings Call. [Operator Instructions]

I'd like to hand the call over to Matt Switzer, Chief Financial Officer. You may begin your conference.

Matthew Switzer

Good morning, and thank you for joining us for Primis Financial Corp's. 2024 third quarter webcast and conference call. Before we begin, please note that many of our comments during this call will be forward-looking statements, which involve risk and uncertainty. There are many factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements.

Further discussion of the company's risk factors and other important information regarding our forward-looking statements are part of our recent filings with the Securities and Exchange Commission, including our recently filed earnings release, which has also been posted to the Investor Relations section of our corporate site, primisbank.com. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

In addition, some of the financial measures that we may discuss this morning are non-GAAP financial measures. How a non-GAAP measure relates to the most comparable GAAP measure will be discussed when the non-GAAP measure is used if not readily apparent.

I will now turn the call over to our President and Chief Executive Officer, Dennis Zember.

Dennis Zember

Thank you, Matt. Good morning, and thank you to all of you that have joined our call.

Our results this quarter reflect our correction of the accounting error on the consumer loan portfolio and the impacts for accounting for this portfolio using the multiunit accounting method. As Matt will discuss in more detail, this method recognizes credit costs upfront with a full CECL reserve and the impacts of the credit support are not recognized until they are received, which is generally in the second half of the average life of the portfolio.

Additionally, not all the revenue is recognized, particularly while the loan is in a promotional period. We are in high gear working to catch up on all of our 10-Qs and targeting to be fully current on our SEC filings by the middle of November. Lastly, as we've stated in our NT filings, we still have an open consultation with the Chief Accountants office at the SEC regarding the accounting for this portfolio.