Primis(US:FRST)2026-01-29 22:00Financial 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].