Primis Financial (FRST) shares soared 6.2% in the last trading session to close at $13.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.8% gain over the past four weeks.Primis Financial retained its rally for the second straight day, driven by its strength in combining efficient community banking with digital scalability. The bank has successfully expanded its presence across Virginia and Maryland, maintaining high branch d ...

MCLEAN, Va., Dec. 18, 2025 /PRNewswire/ -- Primis Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), today announced that the board of directors of the Company (the "Board") approved a stock repurchase program for up to 750,000 of the outstanding shares of the Company's common stock (the "Stock Repurchase Program"). The Stock Repurchase Program will begin on December 18, 2025 and conclude on December 18, 2026, subject to the earlier termination or extension of the Stock Repurchase Program by the B ...

Securities Portfolio Restructuring: Accretive to TBV by 13.2% and Recurring Earnings by 15.0% MCLEAN, Va., Dec. 8, 2025 /PRNewswire/ -- Primis Bank (the "Bank"), the wholly-owned subsidiary of Primis Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), today announced it has entered into a sale-leaseback transaction covering 18 branch properties. The transaction itself has a pre-tax gain of $50 million and provided the Bank a unique opportunity to restructure several areas of the balance sheet, impro ...

Company Overview - Primis Financial (FRST) shares increased by 5.1% to close at $11.59, supported by strong trading volume, contrasting with a 2.5% gain over the past four weeks [1] - The bank's hybrid growth strategy combines community banking with high-yield niche business lines, contributing to its stock price rise [2] Business Strengths - Primis Financial operates 24 branches in Virginia and Maryland, which has led to significant deposit growth [2] - The company leverages deep customer relationships and localized decision-making to provide competitive lending and treasury solutions for small and mid-sized businesses [3] - The bank maintains asset quality and robust underwriting practices while pursuing scalable growth initiatives [3] - Specialized divisions like Panacea Financial and Primis Mortgage Company enhance profitability, alongside digital innovations that increase customer access without expanding physical branches [3] Financial Performance Expectations - Primis Financial is projected to report quarterly earnings of $0.32 per share, reflecting a year-over-year increase of 149.2%, while revenues are expected to be $36.7 million, down 6.6% from the previous year [4] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [5] Industry Context - Primis Financial is part of the Zacks Financial - Miscellaneous Services industry, which includes other companies like Axos Financial (AX), which also saw a 3% increase in its stock price [5] - Axos Financial's EPS estimate for the upcoming report has increased by 1.8% to $2.04, representing a 12.1% change from the previous year [6]

Financial Performance - Net income attributable to Primis' common stockholders for the three months ended September 30, 2025, was $6,830 thousand, a significant increase from $1,228 thousand in the same period of 2024[16]. - Net income for the nine months ended September 30, 2025, was $28,301,000, a significant increase from $1,490,000 in the same period of 2024[19]. - Comprehensive income for the nine months ended September 30, 2025, was $38,537 thousand, compared to $11,762 thousand for the same period in 2024, reflecting a growth of 227.5%[16]. - Basic EPS for the three months ended September 30, 2025, was $0.28, compared to $0.05 for the same period in 2024[139]. - The company reported a basic EPS of $1.29 for the nine months ended September 30, 2025, compared to $0.29 for the same period in 2024[139]. Asset and Loan Growth - Total assets increased to $3,954,849 thousand as of September 30, 2025, up from $3,690,115 thousand at December 31, 2024, representing a growth of 7.2%[15]. - Total loans held for investment (LHFI) rose to $3.2 billion as of September 30, 2025, an 11% increase from December 31, 2024, led by growth in Mortgage Warehouse loans and Panacea Division loans[172]. - Total loans amounted to $3.2 billion as of September 30, 2025, compared to $2.9 billion as of December 31, 2024, reflecting overall growth in the loan portfolio[210]. - Outstanding loan balances increased by 411% to $327 million as of September 30, 2025, from $64 million at December 31, 2024[166]. - The total amount of loans modified due to financial difficulty is assessed based on the borrower's delinquency status and overall financial situation[73]. Income and Expenses - Net interest income for the three months ended September 30, 2025, was $29,032 thousand, compared to $28,023 thousand for the same period in 2024, reflecting an increase of 3.6%[16]. - Noninterest income for the nine months ended September 30, 2025, was $62,334 thousand, compared to $30,441 thousand for the same period in 2024, indicating a growth of 104.5%[16]. - Noninterest expenses for the nine months ended September 30, 2025, totaled $96,771 thousand, compared to $88,279 thousand for the same period in 2024, an increase of 9.3%[16]. - The company reported total noninterest income for the nine months ended September 30, 2025, reached $62 million, a 105% increase from $30 million in the same period in 2024, largely due to a $32 million gain on the investment in Panacea Financial Holdings[196]. - Salaries and benefits expenses increased by $1.8 million to $18.5 million for the three months ended September 30, 2025, compared to $16.8 million in 2024[197]. Credit Quality and Allowance for Losses - The allowance for credit losses decreased to $44,766 thousand as of September 30, 2025, from $53,724 thousand at December 31, 2024, a reduction of 16.7%[15]. - The provision for credit losses for the nine months ended September 30, 2025, was $9,850,000, down from $17,138,000 in 2024, indicating improved credit quality[19]. - The total nonaccrual loans as of September 30, 2025, were $84.97 million, compared to $15.03 million on December 31, 2024, indicating a significant increase in nonaccrual status[69]. - The allowance for credit losses includes an estimate of lifetime expected credit losses, with historical loss information being the starting point for this estimate[76]. - The company applies qualitative adjustments to model results based on key risk indicators tracked on a pool-by-pool basis[94]. Deposits and Funding - Total deposits increased to $3,336,352 thousand as of September 30, 2025, up from $3,171,035 thousand at December 31, 2024, a rise of 5.2%[15]. - The cost of deposits for the core Bank was 1.73% in Q3 2025, down from 2.29% in Q3 2024, with 20% of deposits being noninterest bearing[166]. - The company had $167 million of mortgage loan commitments outstanding as of September 30, 2025, with contractual expirations ranging from 15 to 30 years[136]. - Unfunded lines of credit and undisbursed construction loan funds totaled $493 million as of September 30, 2025, compared to $459 million as of December 31, 2024[137]. - The balance of secured borrowings was $15 million as of September 30, 2025, with no loans past due 30 days or greater[123]. Derivatives and Securities - The gross amounts of interest rate swap derivative assets and liabilities as of September 30, 2025, were $196 thousand and $333 thousand, respectively[39]. - The fair value of derivative assets increased to $1,908,000 as of September 30, 2025, from $1,000,000 as of December 31, 2024[106]. - The amortized cost of Available-for-Sale (AFS) investment securities as of September 30, 2025, was $252,991 thousand, with a fair value of $234,660 thousand[53]. - The total unrealized losses for available-for-sale securities as of September 30, 2025, were $19.113 million, compared to $26.966 million as of December 31, 2024[60]. - The company does not expect any credit losses on U.S. Treasury and residential mortgage-backed securities due to their backing by the U.S. government[57]. Operational Changes and Strategic Initiatives - On March 31, 2025, Primis deconsolidated Panacea Financial Holdings (PFH), resulting in a gain of $25 million recorded in noninterest income, which included a retained interest in PFH common stock valued at $21 million[29]. - The Company authorized a stock repurchase program to buy back up to 740,600 shares of its common stock, effective from December 19, 2024, to December 19, 2025[41]. - The company initiated Consumer Program modifications on January 1, 2025, focusing on principal forgiveness and term modifications[80]. - The company is currently evaluating the impact of new accounting standards on its financial statements, including ASU 2023-09 effective for annual disclosures beginning December 31, 2025[45]. - The company emphasized that results for the three and nine months ended September 30, 2025, are not necessarily indicative of future performance[151].

Financial Data and Key Metrics Changes - The company reported net earnings of $6.8 million and earnings per share of $0.28 for the third quarter, compared to core income of $2 million and $0.08 per share in the same quarter of 2024 [4] - Return on Assets (ROA) improved to 70 basis points, and Return on Tangible Common Equity (ROTCE) improved to 9.45% [4] - Core ROA adjusted for certain non-permanent items is closer to 90 basis points, aligning with the target of 1% ROA [5] - Net interest margin for the third quarter was 3.18%, up from 2.86% in the previous quarter and 2.97% year-over-year [19] Business Line Data and Key Metrics Changes - The mortgage division's production increased from approximately $20 million per month to $100-$120 million per month over the past few years, with pre-tax earnings of about $1.9 million in the current quarter [10] - The Mortgage Warehouse division showed average balances of about $210 million, ending balances of about $327 million, and pre-tax earnings of about $1.6 million [11] - Panacea's loan balances increased to $530 million, with deposits growing to about $132 million, a 50% increase year-over-year [12] Market Data and Key Metrics Changes - Non-interest-bearing checking accounts grew by about 16% compared to a year ago, improving the deposit mix and reducing the cost of deposits by almost 20% [7] - Average earning assets increased by 10% annualized in the third quarter, positioning the company to replace earning assets sold a year ago [18] Company Strategy and Development Direction - The company is focused on increasing the proportion of non-interest-bearing deposits to around 20% of total deposits, which is currently about 20% in the core bank [34] - The strategy emphasizes driving low-cost deposits and maintaining competitive rates for checking accounts to support growth and profitability [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 1% ROA goal, citing substantial tailwinds and improved profitability ratios [23] - The company is optimistic about the potential for loan growth in the fourth quarter and into 2026, with expectations of 6%-8% growth in the core bank [31] Other Important Information - The company noted limited impacts on net interest margin from the consumer program and expects continued improvement in margins due to new loans repricing [20] - The company has a strong focus on managing operating expenses, with core non-interest expense slightly higher than the year-ago quarter [22] Q&A Session Summary Question: Thoughts on overall loan growth for the fourth quarter and into 2026 - Management indicated potential for more runoff in the Mortgage Warehouse but expects to sustain levels around $210 million, with Panacea loans potentially reaching $150 million in annual production [29][31] Question: Timing for reaching a 3.30% margin - Management anticipates reaching a 3.30% margin by the first quarter of next year, focusing on increasing non-interest-bearing deposits [32][34] Question: Impact of interest rates on deposit costs - Management noted that while competition may drive rates down, the company's growth in checking accounts allows for competitive positioning without sacrificing margins [42] Question: Evidence of sticky customers from the digital banking platform - Management confirmed that digital customers are stickier than expected, with over 90% having multiple accounts or referring others [44][49] Question: Resolution of asset quality issues - Management expressed optimism about resolving certain loans in the next few quarters, particularly a C&I property that could improve margins [50][52]

Financial Data and Key Metrics Changes - The company reported net earnings of $6.8 million and earnings per share of $0.28 for the third quarter, compared to core income of $2 million and $0.08 per share in the same quarter of 2024 [4] - Return on Assets (ROA) improved to 70 basis points, and Return on Tangible Common Equity (ROTCE) improved to 9.45% [4] - Core ROA adjusted for certain non-permanent items is closer to 90 basis points, aligning with the target of 1% ROA [5] - Net interest margin for the third quarter was 3.18%, up from 2.86% in the previous quarter and 2.97% in the same period last year [19] Business Line Data and Key Metrics Changes - The mortgage division's production increased from approximately $20 million per month to $100-$120 million per month, with pre-tax earnings of about $1.9 million for the quarter [10] - The Mortgage Warehouse division showed average balances of $210 million, ending balances of $327 million, and pre-tax earnings of about $1.6 million [11] - Panacea Financial Division's loan balances increased to $530 million, with deposits growing to $132 million, a 50% increase year-over-year [12] Market Data and Key Metrics Changes - Non-interest-bearing checking accounts grew by about 16% compared to a year ago, improving the deposit mix and reducing the cost of deposits by almost 20% [7] - Average earning assets increased by 10% annualized in the third quarter, positioning the company to replace earning assets sold a year ago [18] - Non-interest income was $12 million in the quarter, up from $10.6 million in the previous quarter, driven primarily by increased mortgage revenue [21] Company Strategy and Development Direction - The company is focused on increasing the proportion of non-interest-bearing deposits to around 20% of total deposits, which is currently about 20% in the core bank [34] - The strategy emphasizes core funding through checking accounts rather than relying on brokered CDs or institutional borrowings [42] - The company aims to maintain a competitive edge by driving checking account growth at rates better than 10% [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 1% ROA target, citing strong margins and a favorable deposit mix [5][23] - The company anticipates continued growth in profitability with minimal operating expense increases, despite inflationary pressures [22] - Management noted that the current quarter's results reflect a trend towards improved profitability, with fewer one-time items affecting core earnings [23] Other Important Information - The company has a pipeline of new opportunities in the Mortgage Warehouse division, with over $1 billion of uncommitted lines approved [11] - The company is actively managing credit quality, with a focus on resolving non-accrual loans and maintaining strong debt coverage ratios [15][50] Q&A Session Summary Question: Thoughts on overall loan growth for the fourth quarter and into 2026 - Management indicated potential runoff in the Mortgage Warehouse division but expressed confidence in sustaining levels and achieving 6-8% growth in the core bank [30][31] Question: Timing for reaching a 3.30% margin - Management expects to reach a 3.30% margin by the first quarter of next year, focusing on increasing non-interest-bearing deposits [32][34] Question: Impact of interest rates on deposit costs - Management noted that while competition may drive rates down, their growth in checking accounts allows for competitive positioning on deposit rates [41][42] Question: Evidence of customer stickiness in digital banking - Management confirmed that digital customers are stickier than expected, with over 90% having multiple accounts or referrals [43][44] Question: Resolution of asset quality issues - Management indicated that some loans may be resolved in the near term, potentially improving margins [49][50]

Financial Data and Key Metrics Changes - The company reported net earnings of $6.8 million and earnings per share of $0.28 for Q3 2025, compared to core income of $2 million and $0.08 per share in Q3 2024 [5] - Return on Assets (ROA) and Return on Tangible Common Equity (ROTCE) improved to 70 basis points and 9.45%, respectively [5] - Core ROA adjusted for certain items is closer to 90 basis points, aligning with the target of 1% ROA [6] - Net interest margin increased to 3.18%, up from 2.86% in the previous quarter and 2.97% year-over-year [20] Business Line Data and Key Metrics Changes - The mortgage division's production increased from approximately $20 million to $100-$120 million per month over the past few years, with pre-tax earnings of about $1.9 million in Q3 [11] - The Mortgage Warehouse division showed average balances of $210 million, ending balances of $327 million, and pre-tax earnings of about $1.6 million [12] - Panacea Financial Division's loan balances rose to $530 million, with deposits growing to $132 million, a 50% increase year-over-year [13] Market Data and Key Metrics Changes - Non-interest-bearing checking accounts grew by about 16% compared to a year ago, improving the deposit mix and reducing the cost of deposits by almost 20% [7] - Average earning assets increased by 10% annualized in Q3 2025 [19] - Non-interest income reached $12 million, up from $10.6 million in the previous quarter, driven primarily by increased mortgage revenue [22] Company Strategy and Development Direction - The company aims to increase the proportion of non-interest-bearing deposits to around 20% of total deposits, focusing on enhancing the deposit mix [34] - The strategy includes leveraging technology and customer relationships to drive down deposit costs while maintaining competitive rates [40][46] - The company is focused on sustainable growth in the mortgage and Panacea divisions, with plans to maintain strong production levels [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 1% ROA goal, citing strong operational momentum and a favorable deposit mix [25] - The company anticipates continued growth in profitability with fewer one-time items affecting core earnings [25] - Management noted that credit quality remains stable, with expectations for resolution of certain non-accrual loans in the coming quarters [50] Other Important Information - The company experienced limited impacts on net interest margin from consumer programs and expects this to continue [20] - The mortgage division's profitability rebounded significantly, with a notable increase in loan funding compared to the previous year [22] Q&A Session Summary Question: Thoughts on overall loan growth for Q4 and into 2026 - Management indicated potential for continued growth in the Mortgage Warehouse division and projected 6-8% growth for the core bank [30][31] Question: Timing for reaching a 3.30% margin - Management expects to approach a 3.30% margin by the first quarter of next year, focusing on increasing non-interest-bearing deposits [34] Question: Impact of interest rate changes on deposit costs - Management noted that while competition may drive rates, their strategy of increasing checking accounts allows for competitive positioning [40] Question: Stickiness of digital banking customers - Management confirmed that digital customers are proving to be stickier than expected, with high retention rates and significant average balances [42][46] Question: Resolution of asset quality issues - Management expressed optimism about resolving certain non-accrual loans within the next few quarters, particularly in the C&I sector [50]

Financial Data and Key Metrics Changes - The company reported net earnings of $6.8 million, or $0.28 per share, compared to core income of $2 million and $0.08 per share in Q3 2024 [5] - Return on Assets (ROA) improved to 70 basis points, and Return on Tangible Common Equity (ROTCE) improved to 9.45% [5] - Core ROA adjusted for certain non-permanent items is closer to 90 basis points, aligning with the target of 1% ROA [6] - Net interest margin increased to 3.18%, up from 2.86% in the previous quarter and 2.97% year-over-year [21] Business Line Data and Key Metrics Changes - The mortgage division's production increased from $20 million per month to $100 million - $120 million per month over the past few years, with a 10% annual production increase in Q3 [11] - Mortgage warehouse average balances grew to $210 million, with ending balances at $327 million, and pretax earnings of $1.6 million [12] - Panacea's loan balances increased to $530 million, with deposits growing 50% year-over-year to $132 million [13] Market Data and Key Metrics Changes - Non-interest bearing checking accounts grew by 16% year-over-year, improving the deposit mix and reducing the cost of deposits by almost 20% [7] - Average earning assets increased by 10% annualized in Q3, positioning the company to replace earning assets sold a year ago [20] Company Strategy and Development Direction - The company is focused on increasing the proportion of non-interest bearing deposits to 20% of total deposits, currently at about 20% in the core bank [36] - The strategy emphasizes core funding through checking accounts rather than brokered CDs or institutional borrowings, aiming for sustainable growth and profitability [46] - The company is leveraging technology and customer service to enhance deposit growth and maintain competitive margins [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 1% ROA, citing strong operational leverage and a focus on core relationships [6][26] - The company anticipates continued growth in profitability with minimal operating expense increases, despite inflationary pressures [24] - Management noted that the current quarter's results reflect a positive trend, with expectations for further improvements in the coming quarters [26] Other Important Information - The company experienced limited impacts on net interest margin due to interest reversals on loans moving to non-accrual status [22] - The provision for the quarter was a small release, driven by growth in the loan portfolio and low core charge-off activity [23] Q&A Session Summary Question: Thoughts on overall loan growth for Q4 and 2026 - Management indicated potential runoff in mortgage warehouse but expects to sustain levels, with Panacea loans projected to reach $150 million in annual production [30][32] Question: Timing for reaching a 3.3% margin - Management expects to be closer to a 3.3% margin by the first quarter of next year, focusing on increasing non-interest bearing deposits [35][36] Question: Impact of interest rates on deposit costs - Management noted that competition is likely to use falling rates to drive margins, but the company's growth in checking accounts allows for competitive positioning [45] Question: Stickiness of digital customers - Management confirmed that digital customers are stickier than expected, with high retention rates and strong deposit relationships [47][51] Question: Resolution of asset quality issues - Management indicated that one loan could be resolved in the current quarter, while others may take longer, with expectations for improved debt coverage [56][57] Question: Future expense trends - Management anticipates continued improvement in expense management over the next few quarters [59]

Financial Performance Highlights - Net income increased significantly to $6.8 million in Q3'25, a 180% increase QoQ and a 456% increase YoY[15] - Diluted EPS also saw substantial growth, reaching $0.28 in Q3'25, reflecting a 180% increase QoQ and a 464% increase YoY[15] - Tangible book value per share increased to $11.71 in Q3'25, a 2% increase QoQ and a 1% increase YoY[15] - Core net interest margin improved to 3.15% in Q3'25, a 3 bps increase QoQ and a 35 bps increase YoY[15] - Return on Average Tangible Common Equity reached 9.45% in Q3'25, a 604 bps increase QoQ and a 771 bps increase YoY[15] Balance Sheet and Loan Portfolio - Total loans by division: Core Bank accounts for $2.286 billion (67%), Mortgage Warehouse $327 million (10%), Panacea $548 million (16%), Life Premium Finance $140 million (4%), and Consumer Program $101 million (3%)[35] - Total deposits by division: Core Bank holds $2.133 billion (64%), Digital $1.036 billion (31%), Panacea $133 million (4%), and Mortgage Warehouse $34 million (1%)[35] - Panacea's deposits outstanding at Q3'25 were $133 million, up 19% from the previous quarter[26] Mortgage Warehouse Division - The mortgage warehouse division had an ending Q3 balance of $327 million[19] - The mortgage warehouse division's yields are structured to give the bank around 75 to 100 bps over the note rate[19]