Primis(US:FRST)2025-10-23 21:00Financial Performance - Primis Financial Corp. reported net income of $7 million, or $0.28 per diluted share, for Q3 2025, a significant increase from $1 million, or $0.05 per diluted share, in Q3 2024[2]. - For the nine months ended September 30, 2025, net income available to common shareholders was $32 million, or $1.29 per diluted share, compared to $7 million, or $0.29 per diluted share, for the same period in 2024[3]. - Net income attributable to Primis' common shareholders for Q3 2025 was $6,830,000, compared to $2,437,000 in Q2 2025, showing a significant increase[48]. - Non-GAAP adjusted net income for Q3 2025 was $6,830,000, a recovery from a loss of $3,222,000 in Q2 2025[48]. - Net income attributable to common shareholders for Q3 2025 was $6,830 thousand, compared to a loss of $(26,155) thousand in Q2 2025, marking a significant turnaround[43]. Revenue and Income - Total revenue, excluding gains from the sale of Panacea Financial Holdings, increased by $5 million quarter-over-quarter, while expenses rose by only $400 thousand[5]. - Noninterest income rose to $12 million in Q3 2025, compared to $9 million in Q3 2024, with mortgage-related income growing 31%[15]. - Noninterest income for Q3 2025 was $11,969 thousand, a decrease of 33.8% from $18,030 thousand in Q2 2025[43]. - Net interest income for Q3 2025 was $29,032 thousand, an increase of 7% compared to $25,180 thousand in Q2 2025[42]. Loan and Deposit Growth - Primis Mortgage closed mortgage volume of $308 million in Q3 2025, a 34% increase compared to Q3 2024, with pre-tax earnings of approximately $1.9 million[7]. - Mortgage warehouse lending activity saw outstanding loan balances of $327 million, up 77% from $185 million at June 30, 2025, and up 411% from $64 million at December 31, 2024[8]. - Panacea Financial reported loans outstanding of $548 million, a 40% increase compared to Q3 2024, with customer deposits totaling $133 million, up 47%[9]. - Total loans held for investment increased to $3.2 billion at September 30, 2025, up from $3.1 billion at June 30, 2025 and $3.0 billion at September 30, 2024[22]. - Total deposits were flat at $3.3 billion at September 30, 2025, with noninterest bearing demand deposits growing by 16% to $490 million[25]. Asset Quality and Credit Losses - Nonperforming assets were 2.07% of total assets at September 30, 2025, compared to 1.90% at June 30, 2025, primarily due to one downgraded commercial loan[22]. - The Company recorded a recovery of credit losses of $49 thousand for the third quarter of 2025, compared to a provision for credit losses of $8 million in the previous quarters[24]. - The allowance for credit losses was 1.40% of loans held for investment at the end of the third quarter of 2025, down from 1.72% a year earlier[24]. - Net charge-offs as a percent of average loans (annualized) decreased to 0.14% in Q3 2025 from 0.80% in Q2 2025[38]. Efficiency and Ratios - Return on average assets for Q3 2025 was 0.70%, up from 0.26% in Q2 2025[37]. - Efficiency ratio for Q3 2025 was 78.81%, up from 73.92% in Q2 2025[37]. - Common equity to assets ratio for Q3 2025 was 9.66%, slightly down from 9.72% in Q2 2025[38]. - Total risk-based capital ratio for Q3 2025 was 12.02%, down from 12.43% in Q2 2025[38]. Future Outlook - Future outlook indicates a focus on market expansion and new product development[47].