Core Viewpoint - Primis Financial (FRST) has shown strong stock performance, with a 6.2% increase in the last trading session and an 18.8% gain over the past four weeks, driven by solid trading volume [1] Group 1: Company Performance - Primis Financial has maintained its rally for two consecutive days, attributed to its effective combination of community banking and digital scalability, expanding its presence in Virginia and Maryland while growing its digital deposit base [2] - The bank's management has enhanced operational capabilities through strategic hiring, infrastructure investments, and technology innovations, including the launch of V1BE, the first on-demand banking delivery app in the industry [2] Group 2: Competitive Strengths - A key competitive advantage for Primis Financial lies in its diversified revenue streams from specialized business lines, such as the Panacea Financial Division for healthcare professionals and the Primis Mortgage Company, which have generated above-average risk-adjusted returns [3] - The bank's status as an SBA Preferred Lender allows for rapid nationwide loan decisions, increasing its attractiveness to small businesses [3] - Primis Financial's focus on underwriting discipline, asset quality, and scalable infrastructure positions it for sustained and prudent growth [3] Group 3: Earnings Expectations - Primis Financial is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year increase of 144.6%, while revenues are projected to be $36.3 million, a decrease of 7.6% from the previous year [4] - The consensus EPS estimate for the quarter has been revised down by 9.4% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not correlate with price appreciation [5] Group 4: Industry Context - Primis Financial is categorized under the Zacks Financial - Miscellaneous Services industry, holding a Zacks Rank of 3 (Hold) [6] - Another company in the same industry, Acadian Asset Management, has seen a 28.8% decrease in its consensus EPS estimate over the past month, indicating potential challenges within the sector [7]

Core Financial Performance - Primis Financial Corp. reported a 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 [1] - 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 [1] - The company's net interest income for Q3 2025 was $29 million, up from $28 million in Q3 2024, with a net interest margin of 3.18%, an increase from 2.97% year-over-year [11][34] Operational Highlights - The core community bank's 24 banking offices in Virginia and Maryland accounted for nearly two-thirds of the company's total balance sheet, with 20% of deposits being noninterest-bearing [4] - Primis Mortgage closed mortgage volume of $308 million in Q3 2025, a 34% increase compared to the same quarter in 2024, with pre-tax earnings rising to approximately $1.9 million [5] - Panacea Financial's loans outstanding reached $548 million, a 40% increase from Q3 2024, with customer deposits totaling $133 million, up 47% year-over-year [6] Strategic Developments - The company is enhancing its proprietary V1BE service, which supports over $200 million in commercial clients, and is working on licensing this technology to other banks [4] - The digital platform has over $1.0 billion in deposits with a cost of deposits of 4.07% in September 2025, compared to $0.9 billion at the same time in 2024 [10] - Primis has focused on divesting from consumer loans and life premium finance, while building scale and revenues in mortgage warehouse lending, which averaged $210 million in loans during Q3 2025 [12] Asset Quality and Loan Portfolio - Loans held for investment increased to $3.2 billion as of September 30, 2025, compared to $3.0 billion a year earlier, with nonperforming assets at 2.07% of total assets [19][20] - The company recorded a recovery of credit losses of $49 thousand for Q3 2025, a significant improvement from a provision for credit losses of $8 million in the same quarter of 2024 [21] - Core bank loans totaled $2.1 billion at September 30, 2025, down from $2.2 billion a year prior, while mortgage warehouse outstandings improved to $327 million [20] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.10 per share, marking the company's fifty-sixth consecutive quarterly dividend [23] - Tangible book value per common share increased to $11.71, a 12% rise from December 31, 2024 [23]