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]

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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].

Core Insights - FinWise Bancorp demonstrates a strong Return on Invested Capital (ROIC) of 30.90% and a Weighted Average Cost of Capital (WACC) of 12.15%, resulting in a ROIC to WACC ratio of 2.54, indicating superior efficiency in capital utilization [2][5] - In comparison, peers such as Third Coast Bancshares and Southern States Bancshares exhibit significantly lower ROIC to WACC ratios of 0.33 and 0.53 respectively, suggesting less efficiency in generating returns relative to their cost of capital [3][5] - USCB Financial Holdings shows a ROIC to WACC ratio of 0.62, indicating potential for growth but still trailing behind FinWise's performance [4] - Five Star Bancorp and Primis Financial Corp. have even lower ratios of 0.09 and 0.08 respectively, highlighting their challenges in achieving returns above their cost of capital [4][5]

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Company Announcement - Primis Financial Corp. will release its first quarter 2025 results after market close on April 29, 2025 [1] - A conference call and audio webcast for analysts and investors will take place on April 30, 2025, 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 December 31, 2024, Primis Financial Corp. reported total assets of $3.7 billion, total loans held for investment of $2.9 billion, and total deposits of $3.2 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]

Core Viewpoint - Primis Financial Corp. is facing potential delisting from Nasdaq due to non-compliance with filing requirements, specifically the failure to timely file its Form 10-K for the year ending December 31, 2024 [1][2] Group 1: Compliance and Regulatory Actions - On April 3, 2025, Nasdaq notified Primis that it is not in compliance with Listing Rule 5250(c)(1) due to the late filing of its Form 10-K [1] - The company has until April 10, 2025, to appeal this determination to a Hearings Panel to avoid delisting, with a hearing request already submitted [2][3] - The appeal process has temporarily stayed any suspension of trading for 15 calendar days, allowing the company's common stock to continue trading on Nasdaq during this period [3] Group 2: Financial Status and Operations - As of December 31, 2024, Primis Financial Corp. reported total assets of $3.7 billion, total loans held for investment of $2.9 billion, and total deposits of $3.2 billion [5] - The company operates twenty-four full-service branches in Virginia and Maryland, providing a range of financial services to individuals and small- to medium-sized businesses [5] Group 3: Future Compliance Expectations - Primis plans to file the Form 10-K as soon as possible, with expectations to do so before the scheduled hearing, which would bring the company back into compliance with Nasdaq Listing Rules [4] - The company believes it meets the standards for an extended stay of delisting during the appeal process and does not anticipate suspension or delisting of its securities [3][4]