Core Financial Performance - Primis Financial Corp. reported a net income of $8.4 million, or $0.34 per diluted share, for Q2 2025, a significant increase from $3.4 million, or $0.14 per diluted share, in Q2 2024 [1] - For the first half of 2025, net income available to common shareholders was $31.1 million, or $1.26 per diluted share, compared to $5.9 million, or $0.24 per diluted share, in the same period of 2024 [2] Operating Results - The company highlighted improved profitability and momentum in key areas, with a focus on rebuilding its balance sheet for sustained earnings [3] - Adjusted pre-tax pre-provision earnings for Q2 2025 were approximately $8.4 million, with expectations of reaching $10.5 to $11 million in the near future [4] Division Performance - The core community bank, which constitutes about 70% of the total balance sheet, has a strong deposit base with 19% being noninterest-bearing deposits [5] - Primis Mortgage closed $323 million in mortgage volume in Q2 2025, a 52% increase from the same quarter in 2024 [6] - Mortgage warehouse lending activity saw outstanding loan balances rise to $185 million, up 60% from Q1 2025 and 189% from Q4 2024 [7] Funding and Deposits - The digital platform ended Q2 2025 with nearly $1.1 billion in deposits, with a cost of deposits at 4.28%, down from 5.05% a year earlier [9] - Noninterest-bearing demand deposits grew to $478 million, reflecting an annualized growth rate of 18% compared to December 31, 2024 [23] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.10 per share, marking the company's fifty-fifth consecutive quarterly dividend [25] Asset Quality and Loan Portfolio - Loans held for investment increased to $3.13 billion at June 30, 2025, compared to $3.04 billion at March 31, 2025 [20] - The company recorded a provision for loan losses of $1.2 million for Q2 2025, down from $3.1 million in the same quarter of 2024 [22] Equity and Valuation - Book value per common share increased to $15.52, a 2% rise from June 30, 2024, while tangible book value per common share rose to $11.72, a 3% increase [24]

Core Financial Performance - The company reported net income available to common shareholders of $2.7 million, or $0.11 earnings per share, for Q1 2025, a significant recovery from a net loss of $23.3 million in Q4 2024 [1] - Excluding nonrecurring costs, the company earned $5.1 million, resulting in a normalized return on assets of 0.56% for Q1 2025 [2] Strategic Repositioning - The company has focused on its core banking operations, with 24 banking offices in Virginia and Maryland and $2.2 billion in low-cost customer deposits [4] - The cost of deposits was 1.83%, lower than most larger regional bank competitors [4] - The loan portfolio was stable, with a loan pipeline of $228 million as of March 31, 2025, compared to $119 million at the end of 2024 [5] Mortgage Operations - Primis Mortgage generated approximately $0.8 million pre-tax from retail mortgage activities in Q1 2025, a recovery from a loss of $0.4 million in Q4 2024 [6] - Locked loans totaled $257 million in Q1 2025, up 27% from the previous quarter [6] - The company successfully recruited teams in key markets, with a production potential of approximately $500 million [7] National Strategies and Digital Platform - Mortgage warehouse lending activity increased significantly, with outstanding loan balances at $115 million, up 80% from the previous quarter [8] - The digital platform ended Q1 2025 with over $1 billion in deposits, with a cost of deposits comparable to Fed Funds [9] Panacea Financial Division - Panacea's loans outstanding increased by $40 million, or 9% unannualized, from Q4 2024, with a goal of reaching 10,000 customers by the end of 2025 [10] Outlook and Future Growth - The company expects to rebuild earning assets to levels seen prior to the sale of the Life Premium Finance business, which is anticipated to add 21 basis points to the return on assets [11] - Management expects low expense growth in 2025, which will enhance the impact of growth in earning assets [12] - A significant reduction in technology spending is expected as the company consolidates its core systems, potentially saving $6 million to $7 million annually [13] Financial Ratios and Metrics - The net interest margin improved to 3.15% in Q1 2025, compared to 2.90% in Q4 2024 [14] - Noninterest income was $7.8 million in Q1 2025, down from $13.2 million in Q4 2024, primarily due to a prior gain from the sale of the Life Premium Finance division [16] - Noninterest expense decreased to $32.5 million in Q1 2025 from $37.8 million in Q4 2024, with core operating expenses projected to be between $20 million and $21 million per quarter for the remainder of 2025 [18] Asset Quality and Loan Portfolio - Loans held for investment increased to $3.04 billion as of March 31, 2025, largely due to the reclassification of consumer loans [19] - Nonperforming assets were 0.28% of total assets, a slight decrease from 0.29% at the end of 2024 [20] - The company recorded a provision for loan losses of $1.6 million for Q1 2025, down from $6.5 million in the same quarter in 2024 [21] Deposits and Funding - Total deposits slightly decreased to $3.16 billion as of March 31, 2025, with noninterest-bearing demand deposits increasing to $446 million [23] - The company is fully funded by customer deposits, with no reliance on wholesale funding [23] Shareholders' Equity - Book value per common share increased to $14.38 as of March 31, 2025, with tangible book value per common share at $10.59 [24] - The Board declared a dividend of $0.10 per share, marking the fifty-fourth consecutive quarterly dividend [25]