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].

Company Announcement - Primis Financial Corp. will release its fourth quarter 2025 results after market close on January 29, 2026 [1] - A conference call and audio webcast for analysts and investors will be held on January 30, 2026, at 10:00 a.m. Eastern Time [1] - The earnings call can be accessed via a specific link and participants are encouraged to join 15 minutes early [1] Financial Overview - As of September 30, 2025, Primis Financial Corp. reported total assets of $4.0 billion, total loans held for investment of $3.2 billion, and total deposits of $3.3 billion [2] - Primis Bank, the banking subsidiary, offers a variety of financial services to individuals and small- and medium-sized businesses through 24 full-service branches in Virginia and Maryland, as well as online and mobile applications [2]