Financial Position - As of December 31, 2025, Primis Financial Corp. had total assets of $4.0 billion, total loans held for investment of $3.3 billion, total deposits of $3.4 billion, and total stockholders' equity of $423 million[28]. - The Panacea Financial Division ended 2025 with $544 million in loans and $128 million in deposits, an increase from $434 million in loans and $92 million in deposits as of December 31, 2024[34]. - Primis Mortgage Company funded approximately $1.2 billion in loans in 2025, up from approximately $800 million in 2024[34]. - Deposits on the Bank's digital platform reached $992 million by the end of 2025, with an average balance of $48,000, and 82% of customers had been with the platform for over 2 years[34]. - The Bank increased deposits per branch (excluding digital platform deposits) to $100 million as of December 31, 2025, compared to $69 million as of December 31, 2021[34]. - As of December 31, 2025, the Company had over $1 billion in commitments with 125 customers in its warehouse lending business[63]. - The digital banking platform launched in 2022 had digital deposits totaling $1 billion as of December 31, 2025[65]. - As of December 31, 2025, Primis Financial Corp. had $1.2 billion in commercial real estate loans, representing 37% of its loan portfolio, with $42 million classified as nonperforming[153]. - The company reported $132 million in construction and land development loans, accounting for 4% of its loan portfolio, with no nonperforming loans in this category[154]. - The unsecured consumer loan portfolio stood at $183 million, approximately 6% of the total held for investment loan portfolio, with $90 million managed by a third party[155]. - Nonperforming assets totaled $87 million, or 3% of total loans and OREO, marking a 417% increase from $17 million, or 1%, as of December 31, 2024[164]. - Real estate lending constitutes $2.0 billion, or about 61% of the total loan portfolio, making the company vulnerable to declines in real estate values[162]. - As of December 31, 2025, 37% of the loan portfolio was secured by commercial real estate, with $639 million, or 19%, secured by single-family residential real estate[163]. Business Strategy and Growth - Primis aims to grow its business and improve profitability by focusing on maintaining a strong community bank presence, supplementing growth with high-return business lines, and enhancing digital offerings[33]. - The Bank's management team has been strengthened with new members bringing extensive expertise, enhancing its competitive advantage[34]. - Primis is positioned to pursue selective acquisition opportunities due to its strong capital position and experience in integrating financial institution acquisitions[41]. - The Company launched a Life Premium Financing division in Q4 2021, which was sold to EverBank on January 31, 2025[61]. - Primis expanded its V1BE service to cover the majority of its footprint, with plans to onboard its first bank customer in 2026[64]. - The company is pursuing a growth strategy but acknowledges the risks and expenses associated with managing growth effectively, including the need for infrastructure and personnel[196]. - The company may seek to supplement internal growth through acquisitions, but competition for suitable candidates is increasing, which could raise acquisition costs and reduce potential returns[197]. Regulatory Compliance and Capital Requirements - The Federal Reserve requires bank holding companies to maintain a Tier 1 risk-based capital ratio of at least 6.0% and a total risk-based capital ratio of at least 10.0% to be considered well-capitalized[110]. - As of December 31, 2025, both Primis and the Bank's regulatory capital ratios were above the applicable well-capitalized standards and met the capital conservation buffer[112]. - The capital conservation buffer requires an additional 2.5% CET1 above the minimum capital ratio requirements to absorb losses during economic stress[108]. - The leverage capital ratio, a minimum capital standard, requires a Tier 1 capital ratio of at least 4%[107]. - The SEC's clawback provisions require companies to recover excess incentive-based compensation based on financial reporting measures that are later restated[100]. - The Federal Reserve has policies that generally restrict insured banks from paying dividends if they are not in compliance with capital requirements[116]. - The Bank must submit annual audit reports prepared by independent auditors to federal and state regulators, effective January 1, 2026[144]. - Insured institutions with total assets of $1 billion or more must have independent audit committees consisting of outside directors only, with members experienced in banking or financial management[145]. Risk Factors - The company’s profitability is sensitive to local economic conditions, and any downturn could adversely affect borrowers' ability to repay loans[149]. - The company faces risks related to its reliance on third-party vendors for key business components, which could expose it to operational and financial risks[151]. - The company is exposed to credit loss risks, and if the allowance for credit losses is inadequate, earnings may decrease significantly[168]. - A significant portion of the consumer loan portfolio is exposed to credit risk due to a promotional zero-interest period, with $3 million in loans currently in this category[160]. - The company faces increasing risks related to ESG developments, including potential anti-ESG legislation that could impact lending operations[195]. - Economic conditions, including inflation and geopolitical tensions, could lead to increased credit losses and negatively impact demand for loans[182]. - A prolonged economic downturn could lead to increased non-performing assets and negatively impact the company's capital and financial condition[184]. - Changes in monetary policy and interest rates could significantly impact the company's net interest income and overall profitability[178]. - The company may be required to increase its allowance for credit losses based on regulatory reviews, which could adversely affect net income[169]. Operational and Technological Risks - Rapid technological changes in the financial services industry require the company to effectively implement new technology-driven products and services to remain competitive[200]. - Cybersecurity risks are significant, with potential consequences including financial loss, increased operational expenses, and damage to reputation[215]. - The company has incurred significant expenses to improve system reliability and security, but remains vulnerable to evolving cyber-attack methods[219]. - The launch of real-time payments networks may require the company to hold more liquidity reserves and could reduce product profitability due to increased fraud risks[214]. - The company relies on accurate information from customers and counterparties for credit decisions, with potential fraud increasing financial risk and unexpected loan losses[220]. Community Engagement and Employee Relations - The Company’s employees volunteered 225 hours in 2025, reflecting its commitment to community engagement[80]. - The company has recorded goodwill and net amortizable intangibles of approximately $93 million and $36 thousand, respectively, as of December 31, 2025, which are subject to impairment testing[209]. - Key personnel are crucial for maintaining customer relationships, and the loss of senior management could adversely affect business operations[221]. - Compensation practices are under regulatory oversight, and changes in these practices could impact the ability to attract and retain qualified employees[222]. Market Conditions and Stock Performance - Stock price volatility is influenced by general market conditions, which could affect liquidity and investor confidence[188]. - Deposit insurance premiums may increase due to FDIC rules, potentially leading to significantly higher costs for the company[225]. - Liquidity is essential for the company's operations, and reliance on retail and commercial deposits is expected to meet funding needs in the foreseeable future[226].

Core Insights - Primis Financial reported a fourth-quarter net interest income of approximately $31 million, an increase from $26 million year-over-year, with a net interest margin (NIM) of 3.28%, up from 2.90% a year earlier [2][4] - The company anticipates further margin improvements in 2026 due to an investment portfolio restructuring and the redemption of $27 million in subordinated debt, which could have increased NIM by about 11 basis points if fully implemented in Q4 [1][6] - Management projects run-rate earnings of roughly $8 million per quarter, equating to an 80-basis-point return on assets (ROA) on approximately $4 billion of average assets, with a target of achieving a 1% ROA in 2026 [3][19] Financial Performance - The fourth-quarter earnings per share (EPS) were reported at $1.20, driven by a substantial gain from a sale-leaseback transaction [4][6] - The company experienced a 10% annualized increase in gross loans held for investment from September 30 to December 31, with average earning assets rising 13% annualized in Q4 [6][8] - Non-interest-bearing deposits improved to 16% of total deposits by the end of 2025, up from 14% at the end of 2024, indicating a positive shift in deposit mix [7][9] Growth Drivers - Primis plans to scale its mortgage warehouse from approximately $175 million to around $500 million in 2026, with retail mortgage production targeted between $1.6 billion and $2 billion [5][11] - The mortgage warehouse business is expected to generate over 2% ROA, contributing positively to overall earnings as it scales [12][14] - Retail mortgage closed loans increased to approximately $1.2 billion in 2025, a 50% increase from 2024, with expectations for continued growth in 2026 [13][14] Expense Management - The company has controlled operating expenses, targeting a go-forward level of approximately $22 million, with expectations to maintain this as revenue grows [15][17] - Core expenses, excluding volatility from the mortgage and Panacea divisions, were approximately $28 million, with management aiming for a normalized level of $21 million [16][17] - The provision for credit losses was reported at $2.4 million, reflecting loan growth and specific reserving for impaired loans [18] Strategic Outlook - Management emphasized the importance of operational leverage and expects stronger performance in the second half of 2026, despite potential seasonality affecting the first quarter [19] - The company believes it has the capital and fundamentals necessary to pursue its goals, entering 2026 with positive momentum from recent restructuring efforts [19]

Financial Data and Key Metrics Changes - The company reported earnings of $29.5 million, or $1.20 per share, with a return on assets (ROA) of almost 3% for the fourth quarter of 2025 [4] - Net interest income increased to approximately $31 million from $26 million in the previous year [18] - The net interest margin improved to 328 basis points from 290 basis points year-over-year [18] Business Line Data and Key Metrics Changes - The company grew checking accounts by over 23% during the year, with a total increase of about $116 million [6][9] - Closed loans in the Primis Mortgage segment increased to approximately $1.2 billion, a 50% increase over 2024 [14] - The average earning assets increased by 13% annualized in the fourth quarter [17] Market Data and Key Metrics Changes - Non-interest-bearing deposits ended the year at $554 million, or 16% of total deposits, up from 14% the previous year [18] - The company anticipates mortgage warehouse balances to average $500 million across 2026, with seasonal peaks expected [28] Company Strategy and Development Direction - The company aims for a 1% ROA goal for 2026, with expectations for further margin expansion [24][38] - The focus remains on growing core deposits and improving the mix of earning assets, with a strategy to leverage existing resources for growth [15][16] - The company is committed to maintaining a community-style banking approach, enhancing customer loyalty and deposit retention [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth targets, citing a strong pipeline and operational leverage as key drivers [12][16] - The company noted that the vast majority of operational noise from previous quarters is behind them, with expectations for a smoother first half of 2026 [42] - Management highlighted the importance of new customer acquisition and the positive impact on deposit balances over time [51][53] Other Important Information - The company completed a sale-leaseback transaction that allowed for repositioning and entering 2026 with momentum [24] - The core bank's cost of deposits remains attractive at 159 basis points, down from the previous quarter [20] Q&A Session Summary Question: What are the expectations for warehouse balances in 2026? - Management anticipates mortgage warehouse balances to average $500 million across the year, with seasonal fluctuations [28] Question: How should we think about overall loan growth in 2026? - The core bank is targeting approximately $100 million in loan growth, with a focus on C&I and owner-occupied loans [32] Question: What is the target sustainable ROA for 2026? - The target remains at 1% ROA for the full year, with expectations for improvement in the second half [38]

Financial Data and Key Metrics Changes - The company reported earnings of $29.5 million, or $1.20 per share, with a return on assets (ROA) of almost 3% for the fourth quarter of 2025 [4] - The net interest income increased to approximately $31 million from $26 million in the previous year [18] - The net interest margin improved to 328 basis points from 290 basis points year-over-year [18] Business Line Data and Key Metrics Changes - The company grew checking accounts by over 23% during the year, with a total increase of about $116 million [6][9] - The loan portfolio saw significant growth, with gross loans held for investment increasing approximately 10% annualized from September 30 to December 31 [17] - Primis Mortgage closed loans increased to approximately $1.2 billion, a 50% increase over 2024 [14] Market Data and Key Metrics Changes - Non-interest-bearing deposits ended the year at $554 million, or 16% of total deposits, compared to 14% at the end of 2024 [18] - The company anticipates mortgage warehouse balances to average $500 million across 2026, with seasonal peaks expected [28] Company Strategy and Development Direction - The company aims for a sustainable ROA of 1% for the full year 2026, with expectations for margin expansion [39] - The focus remains on growing the core bank with good deposits and integrated lines of business, avoiding reliance on investor commercial real estate [15][54] - The company plans to continue hiring in the mortgage sector but with a more incremental approach to avoid large upfront expenses [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving goals for 2026, citing substantial momentum and opportunities for growth [5][24] - The company has controlled operating expenses and expects to maintain a core expense range of $23 million to $24 million in 2026 [24] - Management noted that the majority of noise from previous quarters is behind them, with expectations for improved margins and reduced expenses [43] Other Important Information - The company completed a sale-leaseback transaction that allowed for repositioning and entering 2026 with momentum [24] - The company has maintained 90% of digital deposit balances despite a decrease in rates, reflecting customer loyalty [11] Q&A Session Summary Question: What are the expectations for warehouse balances in 2026? - Management anticipates mortgage warehouse balances to average $500 million across the year, with seasonal peaks expected [28] Question: How should we think about overall loan growth in 2026? - The core bank is expected to grow loans by about $100 million, or 5% to 7%, with additional growth from Panacea and Warehouse [32] Question: What is the target sustainable ROA for 2026? - The target remains a 1% ROA for the full year, with expectations for improvement in the second half [39] Question: Is there still noise in the quarterly expenses? - Most of the noise is expected to be behind the company, with only minor impacts anticipated in the first quarter [43] Question: How will mortgage banking impact expenses? - Mortgage banking expenses are expected to scale with revenue, with a pre-tax contribution of 50 to 60 basis points anticipated [34]

Financial Data and Key Metrics Changes - The company reported earnings of $29.5 million, or $1.20 per share, with a return on assets (ROA) of almost 3% for Q4 2025 [4] - The net interest income increased to approximately $31 million from $26 million in the same period last year [18] - The net interest margin improved to 328 basis points from 290 basis points year-over-year [18] Business Line Data and Key Metrics Changes - The company grew checking accounts by over 23% during the year, with a total increase of about $116 million [5][9] - Closed loans in the Primis Mortgage segment increased to approximately $1.2 billion, a 50% increase over 2024 [14] - The average earning assets increased by 13% annualized in Q4 2025 [17] Market Data and Key Metrics Changes - Non-interest-bearing deposits ended the year at $554 million, or 16% of total deposits, compared to 14% at the end of 2024 [18] - The company anticipates mortgage warehouse balances to average $500 million across 2026, with seasonal peaks expected [28] Company Strategy and Development Direction - The company aims to achieve a 1% ROA goal for 2026, with expectations for further margin expansion [24][39] - The focus remains on growing core deposits and integrated lines of business, avoiding reliance on investor commercial real estate [15][44] - The company plans to continue hiring in the mortgage segment but with a more incremental approach to avoid large upfront expenses [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth and improving ROA, citing strong deposit growth and operational leverage [11][39] - The company believes that the noise from past restructuring is largely behind them, with expectations for a smoother operational environment in 2026 [34] Other Important Information - The company completed a sale-leaseback transaction that allowed for repositioning and entering 2026 with momentum [24] - The core bank's cost of deposits remains attractive at 159 basis points for the quarter, down from the previous quarter [19] Q&A Session Summary Question: What are the expectations for warehouse balances in 2026? - The company anticipates mortgage warehouse to average $500 million across the year, with seasonal fluctuations [28] Question: How should expenses be viewed in relation to mortgage banking? - The guided quarterly expenses for 2026 are $23-$24 million, excluding mortgage volatility [30] Question: What is the target sustainable ROA for 2026? - The target remains at 1% ROA for the full year, with expectations for improvement in the second half [32]

Primis Financial Corp. NASDAQ: FRST Fourth Quarter 2025 Forward-Looking Statements This presentation and certain of our other filings with the Securities and Exchange Commission contain statements that constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward- looking statements. ...

分组1 - Primis Financial reported quarterly earnings of $0.1 per share, missing the Zacks Consensus Estimate of $0.34 per share, and showing a significant improvement from a loss of $0.65 per share a year ago, resulting in an earnings surprise of -70.59% [1] - The company posted revenues of $45.07 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 24.17%, and compared to year-ago revenues of $39.3 million, having topped consensus revenue estimates three times over the last four quarters [2] - The stock has underperformed the market, losing about 4.7% since the beginning of the year, while the S&P 500 gained 1.9% [3] 分组2 - The earnings outlook for Primis Financial is crucial for investors, with current consensus EPS estimates at $0.39 on $38.8 million in revenues for the coming quarter and $1.65 on $163.4 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 39% of over 250 Zacks industries, indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Primis Financial Corp. reported net income of $30 million, or $1.20 per diluted share, for Q4 2025, compared to a net loss of $23 million, or $0.94 per diluted share, in Q4 2024[2]. - Noninterest income for Q4 2025 was $50 million, significantly up from $13 million in Q4 2024, driven by a $51 million gain from a sale leaseback transaction[16]. - Net income attributable to Primis' common shareholders for Q4 2025 was $29,540 thousand, compared to a loss of $23,335 thousand in Q4 2024[45]. - Non-GAAP adjusted net income for Q4 2025 was $2,359,000, a significant improvement from a loss of $24,148,000 in Q4 2024[51]. - Pre-tax pre-provision earnings for Q4 2025 reached $38,577,000, up from $4,225,000 in Q4 2024[51]. - Income tax expense for Q4 2025 was $6,725,000, compared to a benefit of $(5,917,000) in Q4 2024[51]. Asset and Loan Growth - Total assets increased by 10% year-over-year to $4.047 billion as of December 31, 2025, up from $3.690 billion in 2024[3]. - Gross loans held for investment rose by 14% to $3.284 billion, compared to $2.887 billion in the previous year[3]. - Total loans receivable increased to $3,283,683 thousand in Q4 2025, up from $3,200,234 thousand in Q3 2025, representing a growth of 2.6%[47]. - Commercial loans rose to $970,492 thousand in Q4 2025, up from $915,158 thousand in Q3 2025, marking an increase of 6.0%[47]. - Total real estate loans reached $1,991,209 thousand in Q4 2025, a slight increase from $1,958,437 thousand in Q3 2025, representing a growth of 1.7%[47]. Deposit and Funding - Noninterest bearing deposits increased by 26% to $554 million, representing 16.3% of total deposits[3]. - Total deposits rose to $3,395,585 thousand in Q4 2025, up from $3,171,035 thousand in Q4 2024, reflecting a year-over-year increase of 7.1%[43]. - Total liabilities increased to $3,583,607 thousand in Q4 2025, up from $3,473,976 thousand in Q3 2025, representing a growth of 3.2%[48]. - The cost of interest-bearing deposits was 2.6% in Q4 2025, down from 2.8% in Q3 2025, showing a decrease of 0.2 percentage points[49]. Credit Quality and Allowance - The allowance for credit losses was 1.40% of loans held for investment at the end of Q4 2025, down from 1.86% at the end of Q4 2024[24]. - Provision for credit losses in Q4 2025 was $2,439 thousand, a significant decrease from $33,483 thousand in Q4 2024, indicating improved credit quality[45]. - Non-performing assets totaled $86,536 thousand in Q4 2025, slightly down from $86,686 thousand in Q3 2025, indicating a decrease of 0.2%[47]. - The allowance for credit losses at the end of Q4 2025 was $(45,883) thousand, compared to $(44,766) thousand at the end of Q3 2025, reflecting an increase in provisions[47]. Efficiency and Ratios - Return on average assets for Q4 2025 was 2.94%, a significant increase from 0.70% in Q3 2025 and 0.26% in Q2 2025[39]. - Efficiency ratio for Q4 2025 was 52.14%, a notable improvement from 78.81% in Q3 2025 and 73.92% in Q2 2025[39]. - Common equity to assets ratio increased to 10.45% in Q4 2025, compared to 9.66% in Q3 2025[40]. - Return on average common equity was 29.46%, a significant increase from 7.13% in the previous period[52]. Strategic Initiatives - The company is focused on growth strategies including the Panacea Financial Division and digital banking platform[35]. - Approved lines for mortgage warehouse ended 2025 at $1.2 billion across 125 customers[27]. - The company reported a gain on sale-leaseback of $50,573 thousand in Q4 2025, contributing positively to noninterest income[45].

Core Insights - Primis Financial Corp. reported a net income of $30 million, or $1.20 per diluted share, for Q4 2025, a significant recovery from a net loss of $23 million, or $0.94 per diluted share, in Q4 2024 [1] - For the full year 2025, the company achieved a net income of $61 million, or $2.49 per diluted share, compared to a net loss of $16 million, or $0.66 per diluted share, in 2024 [1] Financial Performance - Total assets increased to $4.047 billion in Q4 2025, up 10% from $3.690 billion in Q4 2024 [2] - Gross loans held for investment rose by 14% to $3.284 billion from $2.887 billion year-over-year [2] - Total deposits grew by 7% to $3.396 billion compared to $3.171 billion in the previous year [2] - Net interest income for Q4 2025 was $31 million, an 18% increase from $26 million in Q4 2024 [10] - The net interest margin improved to 3.28% in Q4 2025 from 2.90% in Q4 2024 [11] Operational Highlights - The core community bank's deposit base includes approximately 23% noninterest-bearing deposits, supported by proprietary technology [4] - Primis Mortgage closed mortgage volume of $378 million in Q4 2025, an 84% increase from $205 million in Q4 2024 [5] - Mortgage warehouse lending activity surged, with outstanding loan balances reaching $318 million, up 398% from $64 million in Q4 2024 [6] - Panacea Financial's loans outstanding increased by 25% to $544 million, with customer deposits totaling $128 million, up 39% year-over-year [7] Shareholder Information - The Board of Directors declared a quarterly cash dividend of $0.10 per share, marking the fifty-seventh consecutive quarterly dividend [26] - Tangible book value per share increased by 28% to $13.34 from $10.42 at the end of Q4 2024 [26] Asset Quality and Credit Losses - Nonperforming assets were 2.03% of total assets at the end of Q4 2025, slightly down from 2.07% at the end of Q3 2025 [21] - The company recorded a provision for credit losses of $2.4 million in Q4 2025, significantly lower than $33 million in Q4 2024 [22] - The allowance for credit losses was 1.40% of loans held for investment at the end of Q4 2025, down from 1.86% at the end of Q4 2024 [23] Funding and Deposits - Total deposits at December 31, 2025, were $3.396 billion, an increase of $0.1 billion compared to the same period in 2024 [24] - Noninterest-bearing demand deposits rose by 26% to $554 million year-over-year [24]

Core Viewpoint - Options markets are indicating significant post-earnings volatility for several stocks, particularly regional banks, with expectations of price swings being amplified by the Federal Reserve's policy decision [1][2]. Group 1: Implied Moves and Earnings Reports - Options markets are pricing in double-digit to near-50% post-earnings swings for a group of regional banks [2]. - Ten stocks are highlighted with implied moves of approximately 30% or more ahead of their earnings reports this week [3]. - Capitol Federal Financial, Inc. is expected to have the highest implied move at 48.48%, with earnings per share projected at 15 cents and revenue at $57.51 million [5][6]. - First Financial Bancorp follows closely with a 47.50% implied move, expecting earnings per share of 56 cents and revenue of $245.83 million [5][6]. - Other notable stocks include Provident Financial Services, Inc. (39.22% implied move), First BanCorp (39.09% implied move), and West Bancorporation, Inc. (35.92% implied move) [5][6]. Group 2: Specific Stock Details - Beacon Financial Corp. anticipates earnings per share of 79 cents and revenue of $224.81 million, with an implied move of 29.48% [5]. - ConnectOne Bancorp, Inc. expects earnings per share of 73 cents and revenue of $110.15 million, with an implied move of 29.51% [5]. - High Tide Inc., the only non-bank on the list, is set to report earnings per share of $0.01 and revenue of $114.95 million, with an implied move of 30.12% [5]. - Primis Financial Corp. is projected to have earnings per share of $1.10 and revenue of $34.98 million, with an implied move of 31.17% [5]. - Hope Bancorp, Inc. expects earnings per share of 26 cents and revenue of $142.91 million, with an implied move of 32.94% [5].