Primis Financial Corp. Reports Strong Results for the First Quarter of 2026
Rhea-AI Summary
Primis Financial (NASDAQ: FRST) reported net income available to common shareholders of $7.3M ($0.30 diluted EPS) for Q1 2026 and operating net income of $8.1M ($0.33 diluted EPS). Total assets were $4.26B, net interest income $32.1M (NIM 3.43%), and tangible book value per share was $13.47. The Board declared a quarterly cash dividend of $0.10 per share payable May 22, 2026.
Positive
- Operating net income +126% to $8.1M
- Net interest income +22% to $32.1M
- Tangible book value per share $13.47 (+18% YoY)
- Retail mortgage volume +122% to $367M
- Mortgage warehouse outstanding $460M (+300% YoY)
Negative
- Reported net income declined to $7.3M from $22.6M
- Noninterest income fell to $14M from $32M (Q1 2025)
- Nonperforming assets 2.24% of total assets ($100M)
News Market Reaction – FRST
In the Apr 24 session, FRST gained 3.02%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 24 | Quarterly earnings | Positive | +0.3% | Q2 2025 earnings rose sharply with Panacea gain and mortgage growth. |
| Apr 29 | Quarterly earnings | Positive | -1.2% | Q1 2025 returned to profit after prior-quarter loss and grew key lines. |
| Jan 28 | Quarterly earnings | Negative | -7.3% | Q4 2024 reported net loss and full-year loss amid portfolio repositioning. |
| Oct 24 | Quarterly earnings | Positive | -3.8% | Q3 2024 returned to profitability and announced business divestiture. |
| Jul 25 | Quarterly earnings | Positive | +2.3% | Q2 2024 showed stronger earnings, higher NIM and asset growth. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have produced modest, mixed reactions, with an average move of -1.94% and both positive and negative responses to stronger results.
Over the past two years, Primis’ earnings reports have charted a turnaround from 2024 losses to improving profitability in 2025. Prior updates highlighted rising net income, expansion of mortgage and warehouse lending, and balance‑sheet repositioning, including Panacea stake sales and cost reductions. Price reactions were often muted or negative even on better results. Today’s Q1 2026 release, with higher operating earnings and balance‑sheet growth, continues that profitability narrative while the share move remains relatively modest.
Key Terms
net interest margin financial
noninterest bearing deposits financial
sale leaseback financial
allowance for credit losses financial
nonperforming assets financial
basis points financial
sba loans financial
fhlb advances financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Declares Quarterly Cash Dividend of
Q1 2026 Accomplishments
The Company demonstrated strong profitability in the first quarter of 2026. Significant areas of improvement year-over-year are detailed in the chart below:
As of or for the Three Months Ended | ||||||
($ in millions except per share) | 3/31/2026 | 3/31/2025 | Var. | |||
Operating Net Income(1) | 126 | % | ||||
Operating ROAA(1) | 0.84 | % | 0.40 | % | 44 | bps |
Operating ROTCE(1) | 10.19 | 5.78 | 441 | |||
Net Interest Income | 22 | % | ||||
Net Interest Margin | 3.43 | 3.15 | 28 | bps | ||
Total Assets | 15 | % | ||||
Gross Loans HFI | 3,396 | 3,043 | 12 | |||
Total Deposits | 3,423 | 3,169 | 8 | |||
Average Earning Assets | 12 | % | ||||
Avg. Noninterest Bearing Deposits ("NIB") | 534 | 446 | 20 | |||
Avg. NIB / Avg. Total Deposits | 15.9 | % | 14.3 | % | 160 | bps |
TCE / TA(1) | 8.02 | % | 7.82 | % | 20 | bps |
Tangible Book Value per Share(1) | 18 | % | ||||
Retail Mortgage Volume | 122 | % | ||||
Commenting on the results, Dennis J. Zember, Jr., President and Chief Executive Officer of the Company, stated, "We are excited to see the progress on our profitability initiatives in what is generally a seasonally slow quarter. We believe we are extremely well-positioned with a stronger balance sheet and demonstrated operating leverage versus a year ago. Our expectations for a robust level of profitability in 2026 are on track as we continue operating our plan to maximize results."
Division Updates
The first quarter of 2026 demonstrated progress in key areas that are expected to drive full-year profitability in 2026. The following discussion highlights recent progress for each of these strategies:
Core Community Bank
The core Bank's 24 banking offices in
- The core Bank has low concentrations of investor CRE (
25% of total loans and only197% of regulatory capital) $66 million $123 million - Cost of deposits of
1.59% in the first quarter of 2026 compared to1.85% in the same quarter in 2025. - Zero brokered deposits.
- A proprietary banking app for commercial depositors that drives new sales independent of lending efforts in and around the Company's footprint.
Approximately
Primis Mortgage
Primis Mortgage had closed mortgage volume of
Mortgage Warehouse
Mortgage warehouse lending continued to show strong growth in the first quarter of 2026. Outstanding loan balances at March 31, 2026 were
Panacea Financial
Panacea's growth remained strong through the first quarter of 2026 with loans outstanding of
Digital Platform
Funding for the national strategies is provided exclusively by the Bank's digital platform powered by what the Bank believes is one of the safest and most functional deposit accounts in the nation. Because of the scalability of the platform, there is significantly less pressure on the core Bank to provide this funding and risk the profitable, decades old relationships with core customers.
The platform ended the first quarter of 2026 with approximately
Net Interest Income
Net interest income in the first quarter of 2026 was
Yield on earnings assets in the first quarter of 2026 increased six basis points and three basis points versus the fourth quarter of 2025 and first quarter of 2025, respectively. Yield on investments increased 124 basis points year-over-year largely due to the previously announced portfolio restructuring and offsetting declines in yield on loans and yield on other earning assets driven by recent rate cuts.
Cost of deposits in the Bank have benefitted from the focus on growing noninterest bearing deposit balances as well as the core Bank's management of interest expense. In the first quarter of 2026, the Company reported cost of interest-bearing deposits of
Noninterest Income
Noninterest income was
The Company reported gain on sale income of
Noninterest Expense
Noninterest expense was
($ in thousands) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 |
Reported Noninterest Expense | |||||
PFH Consolidated Expenses | - | - | - | - | (4,754) |
Noninterest Expense Excl. PFH | 31,942 | 27,762 | |||
Nonrecurring | - | (1,126) | - | (232) | (1,144) |
Primis Mortgage Expenses | (10,545) | (10,048) | (8,214) | (8,514) | (5,569) |
Panacea Net Expense | (1,040) | (2,614) | (2,100) | (370) | 384 |
Consumer Program Servicing Fee | (347) | (391) | (439) | (518) | (622) |
Reserve for Unfunded Commitment | 136 | 127 | 19 | (18) | (13) |
Total Adjustments | (11,796) | (14,052) | (10,734) | (9,652) | (6,964) |
Core Operating Expense Burden |
Core operating expense burden, as defined above, was
The Company believes it still has substantial ability to contain expenses while growing revenue as it aggressively adopts artificial intelligence tools and agents to drive productivity. Each department across the Bank has identified a list of high priority use cases for AI that collectively is projected to yield over 200 people-hours per week of time savings and efficiencies, many of which are in the early stages of implementation.
Loan Portfolio and Asset Quality
Loans held for investment increased to
- Core Bank loans averaged approximately
$2.0 billion - Panacea Financial loans grew
$56 million $600 million - Mortgage warehouse outstandings increased significantly to
$460 million $318 million $1.37 billion - Loan balances associated with the consumer loan program declined to
$82 million $132 million
Nonperforming assets, excluding portions guaranteed by the SBA, were
The Company recorded a provision for credit losses of
As a percentage of loans held for investment, the allowance for credit losses was
Deposits and Funding
Total deposits at March 31, 2026 were
Taxes
Tax expense for the first quarter of 2026 was
Shareholders' Equity
Tangible book value per common share(1) at the end of the first quarter of 2026 was
The Board of Directors declared a dividend of
About Primis Financial Corp.
As of March 31, 2026, Primis had
Contacts: | Address: |
Dennis J. Zember, Jr., President and CEO | Primis Financial Corp. |
Matthew A. Switzer, EVP and CFO | 1676 International Drive, Suite 900 |
Phone: (703) 893-7400 |
Primis Financial Corp., NASDAQ Symbol FRST
Website: www.primisbank.com
Conference Call
The Company's management will host a conference call to discuss its first quarter results on Friday, April 24, 2026 at 10:00 a.m. (ET). A live Webcast of the conference call is available at the following website: https://events.q4inc.com/attendee/286254303. Participants may also call 1-888-330-3573 and ask for the Primis Financial Corp. call. A replay of the teleconference will be available for 7 days by calling 1-800-770-2030 and providing Replay Access Code 4440924.
Non-GAAP Measures
Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables. Primis uses non-GAAP financial measures to analyze its performance. The measures entitled operating net income (loss) available to Primis' common shareholders; pre-tax pre-provision operating earnings; operating return on average assets; pre-tax pre-provision operating return on average assets; operating return on average equity; operating return on average tangible equity; operating efficiency ratio; operating earnings per share – basic; operating earnings per share – diluted; tangible book value per share; tangible common equity; tangible common equity to tangible assets; and core net interest margin are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. We use the term "operating" to describe a financial measure that excludes income or expense considered to be non-recurring in nature. Items identified as non-operating are those that, when excluded from a reported financial measure, provide management or the reader with a measure that may be more indicative of forward-looking trends in our business. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures is provided in the Reconciliation of Non-GAAP Items table.
Management believes that these non-GAAP financial measures provide additional useful information about Primis that allows management and investors to evaluate the ongoing operating results, financial strength and performance of Primis and provide meaningful comparison to its peers. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider Primis' performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of Primis. Non-GAAP financial measures are not standardized and, therefore, it may not be possible to compare these measures with other companies that present measures having the same or similar names.
Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.
Forward-Looking Statements
This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as "may," "plan," "contemplate," "anticipate," "believe," "intend," "continue," "expect," "project," "predict," "estimate," "could," "should," "would," "will," and other similar words or expressions of the future or otherwise regarding the outlook for the Company's future business and financial performance and/or the performance of the banking industry and economy in general. These forward-looking statements include, but are not limited to, our expectations regarding our future operating and financial performance, including the preliminary estimated financial and operating information presented herein, which is subject to adjustment; our outlook and long-term goals for future growth and new offerings and services; our expectations regarding net interest margin; expectations on our growth strategy, expense management, capital management and future profitability; expectations on credit quality and performance; and the assumptions underlying our expectations.
Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, the Company's management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that might cause such differences include, but are not limited to: instability in global economic conditions and geopolitical matters; the impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within our primary market areas; adverse developments in borrower industries; changes in interest rates, inflation, loan demand, real estate values, or competition, as well as labor shortages and supply chain disruptions; the impact of tariffs, trade policies, and trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for
Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company's management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company's filings with the Securities and Exchange Commission, the Company's Annual Report on Form 10-K for the year ended December 31, 2025, under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors," and in the Company's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements.
(1) | Non-GAAP financial measure. Please see "Reconciliation of Non-GAAP Items" in the financial tables for more information and for a reconciliation to GAAP. | |||||||||||
Primis Financial Corp. | ||||||||
Financial Highlights (unaudited) | ||||||||
(Dollars in thousands, except per share data) | For Three Months Ended: | |||||||
Selected Performance Ratios: | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | |||
Return on average assets | 0.76 % | 2.94 % | 0.70 % | 0.26 % | 2.52 % | |||
Operating return on average assets(1) | 0.84 % | 0.23 % | 0.70 % | (0.34 %) | 0.40 % | |||
Pre-tax pre-provision return on average assets | 1.20 % | 3.84 % | 0.89 % | 1.20 % | 3.32 % | |||
Pre-tax pre-provision operating return on average assets(1) | 1.20 % | 0.39 % | 0.89 % | 0.44 % | 0.71 % | |||
Return on average common equity | 7.24 % | 29.46 % | 7.13 % | 2.57 % | 26.66 % | |||
Operating return on average common equity(1) | 7.96 % | 2.36 % | 7.13 % | (3.40 %) | 4.21 % | |||
Operating return on average tangible common equity(1) | 10.19 % | 3.07 % | 9.45 % | (4.51 %) | 5.78 % | |||
Cost of funds | 2.46 % | 2.52 % | 2.62 % | 2.67 % | 2.67 % | |||
Net interest margin | 3.43 % | 3.28 % | 3.18 % | 2.86 % | 3.15 % | |||
Core net interest margin(1) | 3.41 % | 3.29 % | 3.15 % | 3.12 % | 3.13 % | |||
Gross loans to deposits | 99.22 % | 96.70 % | 95.92 % | 93.65 % | 96.04 % | |||
Efficiency ratio | 73.97 % | 52.14 % | 78.81 % | 73.92 % | 55.39 % | |||
Operating efficiency ratio(1) | 73.97 % | 91.05 % | 78.81 % | 88.67 % | 91.97 % | |||
Per Common Share Data: | ||||||||
Earnings per common share - Basic | $ 0.30 | $ 1.20 | $ 0.28 | $ 0.10 | $ 0.92 | |||
Operating earnings per common share - Basic(1) | $ 0.33 | $ 0.10 | $ 0.28 | $ (0.13) | $ 0.14 | |||
Earnings per common share - Diluted | $ 0.30 | $ 1.20 | $ 0.28 | $ 0.10 | $ 0.92 | |||
Operating earnings per common share - Diluted(1) | $ 0.33 | $ 0.10 | $ 0.28 | $ (0.13) | $ 0.14 | |||
Book value per common share | $ 17.25 | $ 17.12 | $ 15.51 | $ 15.27 | $ 15.19 | |||
Tangible book value per common share(1) | $ 13.47 | $ 13.34 | $ 11.71 | $ 11.48 | $ 11.40 | |||
Cash dividend per common share | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | |||
Weighted average shares outstanding - Basic | 24,665,011 | 24,634,544 | 24,632,202 | 24,701,319 | 24,706,593 | |||
Weighted average shares outstanding - Diluted | 24,719,255 | 24,654,037 | 24,643,889 | 24,714,229 | 24,722,734 | |||
Shares outstanding at end of period | 24,772,072 | 24,695,385 | 24,644,385 | 24,643,185 | 24,722,734 | |||
Asset Quality Ratios: | ||||||||
Non-performing assets as a percent of total assets, excluding SBA guarantees | 2.24 % | 2.03 % | 2.07 % | 1.90 % | 0.28 % | |||
Net charge-offs (recoveries) as a percent of average loans (annualized) | 0.12 % | 0.16 % | 0.14 % | 0.80 % | 1.47 % | |||
Core net charge-offs (recoveries) as a percent of average loans (annualized)(1) | 0.06 % | 0.05 % | 0.03 % | 0.15 % | 0.06 % | |||
Allowance for credit losses to total loans | 1.37 % | 1.40 % | 1.40 % | 1.47 % | 1.45 % | |||
Capital Ratios: | ||||||||
Common equity to assets | 10.04 % | 10.45 % | 9.66 % | 9.72 % | 10.16 % | |||
Tangible common equity to tangible assets(1) | 8.02 % | 8.33 % | 7.48 % | 7.49 % | 7.82 % | |||
Leverage ratio(2) | 8.76 % | 8.80 % | 8.32 % | 8.34 % | 8.71 % | |||
Common equity tier 1 capital ratio(2) | 9.35 % | 9.36 % | 8.62 % | 8.92 % | 9.35 % | |||
Tier 1 risk-based capital ratio(2) | 9.63 % | 9.64 % | 8.91 % | 9.22 % | 9.66 % | |||
Total risk-based capital ratio(2) | 12.21 % | 12.40 % | 12.02 % | 12.43 % | 12.96 % | |||
(1) See Reconciliation of Non-GAAP financial measures. | ||||||||
(2) Ratios are estimated and may be subject to change pending the final filing of the FR Y-9C. | ||||||||
Primis Financial Corp. | |||||||
(Dollars in thousands) | For Three Months Ended: | ||||||
Condensed Consolidated Balance Sheets (unaudited) | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | ||
Assets | |||||||
Cash and cash equivalents | $ 159,881 | $ 143,607 | $ 63,881 | $ 94,074 | $ 57,044 | ||
Investment securities-available for sale | 171,877 | 171,377 | 234,660 | 242,073 | 241,638 | ||
Investment securities-held to maturity | 6,792 | 6,981 | 8,550 | 8,850 | 9,153 | ||
Loans held for sale | 223,180 | 166,066 | 202,372 | 126,869 | 74,439 | ||
Loans held for investment | 3,396,366 | 3,283,683 | 3,200,234 | 3,130,521 | 3,043,348 | ||
Allowance for credit losses | (46,381) | (45,883) | (44,766) | (45,985) | (44,021) | ||
Net loans | 3,349,985 | 3,237,800 | 3,155,468 | 3,084,536 | 2,999,327 | ||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 24,162 | 14,185 | 17,035 | 12,998 | 12,983 | ||
Bank premises and equipment, net | 5,924 | 6,070 | 19,380 | 19,642 | 19,210 | ||
Operating lease right-of-use assets | 64,781 | 65,596 | 9,427 | 9,927 | 10,352 | ||
Goodwill and other intangible assets | 93,488 | 93,495 | 93,502 | 93,508 | 93,804 | ||
Assets held for sale, net | 776 | 776 | 775 | 2,181 | 2,420 | ||
Bank-owned life insurance | 76,958 | 68,969 | 68,504 | 68,048 | 67,609 | ||
Deferred tax assets, net | 14,593 | 14,683 | 17,328 | 19,466 | 21,399 | ||
Consumer Program derivative asset | 47 | 159 | 409 | 1,177 | 1,597 | ||
Investment in Panacea Financial Holdings, Inc. common stock | 6,899 | 6,899 | 6,880 | 6,586 | 21,277 | ||
Other assets | 57,325 | 50,725 | 56,678 | 81,791 | 65,058 | ||
Total assets | $ 4,256,668 | $ 4,047,388 | $ 3,954,849 | $ 3,871,726 | $ 3,697,310 | ||
Liabilities and stockholders' equity | |||||||
Demand deposits | $ 541,168 | $ 554,442 | $ 489,728 | $ 477,705 | $ 455,768 | ||
NOW accounts | 844,528 | 862,735 | 831,709 | 858,624 | 819,606 | ||
Money market accounts | 778,366 | 740,886 | 737,634 | 744,321 | 785,552 | ||
Savings accounts | 942,847 | 922,337 | 958,416 | 935,527 | 777,736 | ||
Time deposits | 316,156 | 315,185 | 318,865 | 326,496 | 330,210 | ||
Total deposits | 3,423,065 | 3,395,585 | 3,336,352 | 3,342,673 | 3,168,872 | ||
Securities sold under agreements to repurchase - short term | 3,525 | 3,552 | 3,954 | 4,370 | 4,019 | ||
Federal Home Loan Bank advances | 230,000 | 25,000 | 85,000 | - | - | ||
Secured borrowings | 14,450 | 14,773 | 15,403 | 16,449 | 16,729 | ||
Subordinated debt and notes | 69,311 | 96,162 | 96,091 | 96,020 | 95,949 | ||
Operating lease liabilities | 60,832 | 61,340 | 10,682 | 11,195 | 11,639 | ||
Other liabilities | 28,287 | 28,080 | 25,214 | 24,604 | 24,539 | ||
Total liabilities | 3,829,470 | 3,624,492 | 3,572,696 | 3,495,311 | 3,321,747 | ||
Total stockholders' equity | 427,198 | 422,896 | 382,153 | 376,415 | 375,563 | ||
Total liabilities and stockholders' equity | $ 4,256,668 | $ 4,047,388 | $ 3,954,849 | $ 3,871,726 | $ 3,697,310 | ||
Tangible common equity(1) | $ 333,710 | $ 329,401 | $ 288,651 | $ 282,907 | $ 281,759 | ||
Primis Financial Corp. | |||||||
(Dollars in thousands) | For Three Months Ended: | ||||||
Condensed Consolidated Statement of Operations (unaudited) | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | ||
Interest and dividend income | $ 53,526 | $ 53,326 | $ 51,766 | $ 47,627 | $ 47,723 | ||
Interest expense | 21,452 | 22,474 | 22,734 | 22,447 | 21,359 | ||
Net interest income | 32,074 | 30,852 | 29,032 | 25,180 | 26,364 | ||
Provision for (recovery of) credit losses | 1,549 | 2,439 | (49) | 8,303 | 1,596 | ||
Net interest income (loss) after provision for credit losses | 30,525 | 28,413 | 29,081 | 16,877 | 24,768 | ||
Account maintenance and deposit service fees | 1,246 | 1,292 | 1,358 | 1,675 | 1,339 | ||
Income from bank-owned life insurance | 472 | 466 | 456 | 438 | 425 | ||
Mortgage banking income | 10,760 | 9,992 | 8,887 | 7,893 | 5,615 | ||
Gain (loss) on sale of loans | 567 | 1,470 | 249 | 210 | - | ||
Gains on Panacea Financial Holdings investment | - | 20 | 294 | 7,450 | 24,578 | ||
Consumer Program derivative | 396 | 775 | 264 | 593 | (292) | ||
Gain on sale-leaseback | - | 50,573 | - | - | - | ||
Loss on sales of investment securities | - | (14,777) | - | - | - | ||
Gain (loss) on other investments | 49 | 33 | 381 | (308) | 53 | ||
Other | 65 | 172 | 80 | 79 | 617 | ||
Noninterest income | 13,555 | 50,016 | 11,969 | 18,030 | 32,335 | ||
Employee compensation and benefits | 19,556 | 25,535 | 18,523 | 17,060 | 17,941 | ||
Occupancy and equipment expenses | 4,617 | 4,459 | 3,481 | 3,127 | 3,285 | ||
Amortization of intangible assets | 7 | - | - | 289 | 313 | ||
611 | 577 | 576 | 577 | 577 | |||
FDIC Insurance assessment | 738 | 918 | 999 | 1,021 | 793 | ||
Data processing expense | 2,188 | 2,421 | 2,369 | 3,037 | 2,849 | ||
Marketing expense | 760 | 472 | 450 | 720 | 514 | ||
Telecommunication and communication expense | 311 | 352 | 309 | 324 | 287 | ||
Professional fees | 1,860 | 3,730 | 2,509 | 2,413 | 2,225 | ||
Miscellaneous lending expenses | 728 | 634 | 231 | 900 | 834 | ||
Loss on bank premises and equipment | - | - | 80 | 5 | 106 | ||
Other expenses | 2,378 | 3,066 | 2,786 | 2,469 | 2,792 | ||
Noninterest expense | 33,754 | 42,164 | 32,313 | 31,942 | 32,516 | ||
Income before income taxes | 10,326 | 36,265 | 8,737 | 2,965 | 24,587 | ||
Income tax expense | 3,014 | 6,725 | 1,907 | 528 | 5,553 | ||
Net Income | 7,312 | 29,540 | 6,830 | 2,437 | 19,034 | ||
Noncontrolling interest | - | - | - | - | 3,602 | ||
Net income available to Primis' common shareholders | $ 7,312 | $ 29,540 | $ 6,830 | $ 2,437 | $ 22,636 | ||
(1) See Reconciliation of Non-GAAP financial measures. | |||||||
Primis Financial Corp. | |||||||
(Dollars in thousands) | For Three Months Ended: | ||||||
Loan Portfolio Composition | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | ||
Loans held for sale | $ 223,180 | $ 166,066 | $ 202,372 | $ 126,869 | $ 74,439 | ||
Loans secured by real estate: | |||||||
Commercial real estate - owner occupied | 534,897 | 510,088 | 495,739 | 480,981 | 477,233 | ||
Commercial real estate - non-owner occupied | 540,154 | 567,092 | 592,480 | 590,848 | 600,872 | ||
Secured by farmland | 2,386 | 3,407 | 3,642 | 3,696 | 3,742 | ||
Construction and land development | 151,426 | 131,757 | 102,227 | 106,443 | 104,301 | ||
Residential 1-4 family | 560,711 | 576,866 | 564,087 | 571,206 | 576,837 | ||
Multi-family residential | 150,475 | 140,261 | 137,804 | 157,097 | 157,443 | ||
Home equity lines of credit | 61,786 | 61,738 | 62,458 | 62,103 | 60,321 | ||
Total real estate loans | 2,001,835 | 1,991,209 | 1,958,437 | 1,972,374 | 1,980,749 | ||
Commercial loans | 1,104,438 | 970,492 | 915,158 | 811,458 | 698,097 | ||
Paycheck Protection Program loans | 1,716 | 1,719 | 1,723 | 1,729 | 1,738 | ||
Consumer loans | 283,605 | 315,407 | 319,977 | 339,936 | 357,652 | ||
Total Non-PCD loans | 3,391,594 | 3,278,827 | 3,195,295 | 3,125,497 | 3,038,236 | ||
PCD loans | 4,772 | 4,856 | 4,939 | 5,024 | 5,112 | ||
Total loans receivable, net of deferred fees | $ 3,396,366 | $ 3,283,683 | $ 3,200,234 | $ 3,130,521 | $ 3,043,348 | ||
(Dollars in thousands) | For Three Months Ended: | ||||||
Loans by Risk Grade: | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | ||
Pass Grade 1 - Highest Quality | $ 119 | $ 87 | $ 666 | $ 667 | $ 880 | ||
Pass Grade 2 - Good Quality | 160,228 | 178,999 | 168,177 | 170,560 | 175,379 | ||
Pass Grade 3 - Satisfactory Quality | 1,556,700 | 1,882,934 | 1,842,958 | 1,737,153 | 1,643,957 | ||
Pass Grade 4 - Pass | 1,469,542 | 1,026,499 | 1,034,035 | 1,050,397 | 1,124,901 | ||
Pass Grade 5 - Pass/ Watch(1) | 13,765 | - | - | - | - | ||
Pass Grade 6 - Special Mention(2) | 49,308 | 48,683 | 7,004 | 31,902 | 28,498 | ||
Grade 7 - Substandard(2) | 139,155 | 138,932 | 139,847 | 139,842 | 69,733 | ||
Grade 8 - Doubtful(2) | 7,549 | 7,549 | 7,547 | - | - | ||
Grade 9 - Loss(2) | - | - | - | - | - | ||
Total loans | $ 3,396,366 | $ 3,283,683 | $ 3,200,234 | $ 3,130,521 | $ 3,043,348 | ||
(Dollars in thousands) | For Three Months Ended: | ||||||
Asset Quality Information | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | ||
Allowance for Credit Losses: | |||||||
Balance at beginning of period | $ (45,883) | $ (44,766) | $ (45,985) | $ (44,021) | $ (53,724) | ||
Recovery of (provision for) credit losses | (1,549) | (2,439) | 49 | (8,303) | (1,596) | ||
Net charge-offs | 1,051 | 1,322 | 1,170 | 6,339 | 11,299 | ||
Ending balance | $ (46,381) | $ (45,883) | $ (44,766) | $ (45,985) | $ (44,021) | ||
Reserve for Unfunded Commitments: | |||||||
Balance at beginning of period | $ (1,006) | $ (1,133) | $ (1,152) | $ (1,134) | $ (1,121) | ||
Recovery of (provision for) unfunded loan commitment reserve | 136 | 127 | 19 | (18) | (13) | ||
Total Reserve for Unfunded Commitments | $ (870) | $ (1,006) | $ (1,133) | $ (1,152) | $ (1,134) | ||
Non-Performing Assets: | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | ||
Nonaccrual loans | $ 84,949 | $ 84,823 | $ 84,973 | $ 53,059 | $ 12,956 | ||
Accruing loans delinquent 90 days or more | 15,223 | 1,713 | 1,713 | 25,188 | 1,713 | ||
Total non-performing assets | $ 100,172 | $ 86,536 | $ 86,686 | $ 78,247 | $ 14,669 | ||
SBA guaranteed portion of non-performing loans | $ 5,033 | $ 4,482 | $ 4,682 | $ 4,750 | $ 4,307 | ||
(1) In first quarter of 2026. the Company expanded its risk grade matrix to include Pass Grade 5 - Pass/ Watch. | |||||||
(2) In first quarter of 2026, due to the expansion of the risk grade matrix, Special Mention, Substandard, Doubtful and Loss loans that were in risk grades 5, 6, 7 and 8, respectively in 2025, were migrated to risk grades 6, 7, 8 and 9, respectively in 2026. | |||||||
Primis Financial Corp. | |||||||
(Dollars in thousands) | For Three Months Ended: | ||||||
Average Balance Sheet | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | ||
Assets | |||||||
Loans held for sale | $ 159,007 | $ 162,854 | $ 130,061 | $ 108,693 | $ 170,509 | ||
Loans, net of deferred fees | 3,297,456 | 3,238,184 | 3,143,155 | 3,074,993 | 2,897,481 | ||
Investment securities | 176,582 | 220,343 | 247,008 | 249,485 | 245,216 | ||
Other earning assets | 161,199 | 115,908 | 101,278 | 98,369 | 86,479 | ||
Total earning assets | 3,794,244 | 3,737,289 | 3,621,502 | 3,531,540 | 3,399,685 | ||
Other assets | 261,466 | 244,183 | 232,636 | 272,910 | 241,912 | ||
Total assets | $ 4,055,710 | $ 3,981,472 | $ 3,854,138 | $ 3,804,450 | $ 3,641,597 | ||
Liabilities and equity | |||||||
Demand deposits | $ 533,570 | $ 498,681 | $ 481,697 | $ 467,493 | $ 446,404 | ||
Interest-bearing liabilities: | |||||||
NOW and other demand accounts | 838,845 | 837,231 | 834,839 | 821,893 | 805,522 | ||
Money market accounts | 750,380 | 740,915 | 756,361 | 759,107 | 788,067 | ||
Savings accounts | 922,152 | 934,092 | 922,048 | 882,227 | 754,304 | ||
Time deposits | 316,281 | 315,943 | 324,614 | 329,300 | 335,702 | ||
Total Deposits | 3,361,228 | 3,326,862 | 3,319,559 | 3,260,020 | 3,129,999 | ||
Borrowings | 181,185 | 205,767 | 117,697 | 117,701 | 116,955 | ||
Total Funding | 3,542,413 | 3,532,629 | 3,437,256 | 3,377,721 | 3,246,954 | ||
Other Liabilities | 86,090 | 50,978 | 36,720 | 36,649 | 38,280 | ||
Total liabilities | 3,628,503 | 3,583,607 | 3,473,976 | 3,414,370 | 3,285,234 | ||
Primis common stockholders' equity | 427,207 | 397,865 | 380,162 | 380,080 | 344,381 | ||
Noncontrolling interest | — | — | — | — | 11,982 | ||
Total stockholders' equity | 427,207 | 397,865 | 380,162 | 380,080 | 356,363 | ||
Total liabilities and stockholders' equity | $ 4,055,710 | $ 3,981,472 | $ 3,854,138 | $ 3,794,450 | $ 3,641,597 | ||
Net Interest Income | |||||||
Loans held for sale | $ 2,376 | $ 2,511 | $ 2,085 | $ 1,754 | $ 2,564 | ||
Loans | 47,758 | 47,856 | 46,772 | 42,963 | 42,400 | ||
Investment securities | 1,911 | 1,841 | 1,894 | 1,928 | 1,906 | ||
Other earning assets | 1,481 | 1,118 | 1,015 | 982 | 853 | ||
Total Earning Assets Income | 53,526 | 53,326 | 51,766 | 47,627 | 47,723 | ||
Non-interest bearing DDA | - | - | - | - | - | ||
NOW and other interest-bearing demand accounts | 4,244 | 4,124 | 4,549 | 4,603 | 4,515 | ||
Money market accounts | 4,539 | 4,615 | 5,229 | 5,271 | 5,420 | ||
Savings accounts | 7,202 | 7,599 | 8,070 | 7,793 | 6,418 | ||
Time deposits | 2,517 | 2,639 | 2,723 | 2,830 | 3,039 | ||
Total Deposit Costs | 18,502 | 18,977 | 20,571 | 20,497 | 19,392 | ||
Borrowings | 2,950 | 3,497 | 2,163 | 1,950 | 1,967 | ||
Total Funding Costs | 21,452 | 22,474 | 22,734 | 22,447 | 21,359 | ||
Net Interest Income | $ 32,074 | $ 30,852 | $ 29,032 | $ 25,180 | $ 26,364 | ||
Net Interest Margin | |||||||
Loans held for sale | 6.06 % | 6.12 % | 6.36 % | 6.47 % | 6.10 % | ||
Loans | 5.87 % | 5.86 % | 5.90 % | 5.60 % | 5.93 % | ||
Investments | 4.39 % | 3.31 % | 3.04 % | 3.10 % | 3.15 % | ||
Other Earning Assets | 3.73 % | 3.83 % | 3.98 % | 4.00 % | 4.00 % | ||
Total Earning Assets | 5.72 % | 5.66 % | 5.67 % | 5.41 % | 5.69 % | ||
NOW | 2.05 % | 1.95 % | 2.16 % | 2.25 % | 2.27 % | ||
MMDA | 2.45 % | 2.47 % | 2.74 % | 2.79 % | 2.79 % | ||
Savings | 3.17 % | 3.23 % | 3.47 % | 3.54 % | 3.45 % | ||
CDs | 3.23 % | 3.31 % | 3.33 % | 3.45 % | 3.67 % | ||
Cost of Interest Bearing Deposits | 2.65 % | 2.66 % | 2.88 % | 2.94 % | 2.93 % | ||
Cost of Deposits | 2.23 % | 2.26 % | 2.46 % | 2.52 % | 2.52 % | ||
Other Funding | 6.60 % | 6.74 % | 7.29 % | 6.65 % | 6.82 % | ||
Total Cost of Funds | 2.46 % | 2.52 % | 2.62 % | 2.67 % | 2.67 % | ||
Net Interest Margin | 3.43 % | 3.28 % | 3.18 % | 2.86 % | 3.15 % | ||
Net Interest Spread | 2.83 % | 2.72 % | 2.62 % | 2.32 % | 2.60 % | ||
Primis Financial Corp. | |||||||
(Dollars in thousands, except per share data) | For Three Months Ended: | ||||||
Reconciliation of Non-GAAP items: | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | 1Q 2025 | ||
Net income available to Primis' common shareholders | $ 7,312 | $ 29,540 | $ 6,830 | $ 2,437 | $ 22,636 | ||
Non-GAAP adjustments to Net Income: | |||||||
Loss on sale of investment securities | - | 14,777 | - | - | - | ||
Branch Consolidation / Other restructuring | - | - | - | - | 144 | ||
Professional fee expense related to accounting matters and LPF sale | - | - | - | 232 | 893 | ||
Gain on sale-leaseback | - | (50,573) | - | - | - | ||
Transaction costs related to sale-leaseback | - | 1,126 | - | - | - | ||
Gains on Panacea Financial Holdings investment | - | - | - | (7,450) | (24,578) | ||
Loss on sale of closed bank branch buildings | - | - | - | - | 107 | ||
Tax expense related to de-consolidation gain in 2025 on PFH investment | 759 | - | - | - | - | ||
Income tax effect | - | 7,489 | - | 1,559 | 4,370 | ||
Operating net income (loss) available to Primis' common shareholders | $ 8,071 | $ 2,359 | $ 6,830 | $ (3,222) | $ 3,572 | ||
Net income available to Primis' common shareholders | $ 7,312 | $ 29,540 | $ 6,830 | $ 2,437 | $ 22,636 | ||
Income tax expense | 3,014 | 6,725 | 1,907 | 528 | 5,553 | ||
Provision (benefit) for credit losses (incl. unfunded commitment expense/benefit) | 1,413 | 2,312 | (68) | 8,321 | 1,609 | ||
Pre-tax pre-provision earnings | $ 11,739 | $ 38,577 | $ 8,669 | $ 11,286 | $ 29,798 | ||
Effect of adjustment for nonrecurring income and expenses | - | (34,670) | - | (7,218) | (23,434) | ||
Pre-tax pre-provision operating earnings | $ 11,739 | $ 3,907 | $ 8,669 | $ 4,068 | $ 6,364 | ||
Return on average assets | 0.76 % | 2.94 % | 0.70 % | 0.26 % | 2.52 % | ||
Effect of adjustment for nonrecurring income and expenses | 0.08 % | (2.71 %) | 0.00 % | (0.60 %) | (2.12 %) | ||
Operating return on average assets | 0.84 % | 0.23 % | 0.70 % | (0.34 %) | 0.40 % | ||
Return on average assets | 0.76 % | 2.94 % | 0.70 % | 0.26 % | 2.52 % | ||
Effect of tax expense | 0.30 % | 0.67 % | 0.20 % | 0.06 % | 0.62 % | ||
Effect of provision for credit losses (incl. unfunded commitment expense) | 0.14 % | 0.23 % | (0.01 %) | 0.88 % | 0.18 % | ||
Pre-tax pre-provision return on average assets | 1.20 % | 3.84 % | 0.89 % | 1.20 % | 3.32 % | ||
Effect of adjustment for nonrecurring income and expenses | 0.00 % | (3.45 %) | 0.00 % | (0.76 %) | (2.61 %) | ||
Pre-tax pre-provision operating return on average assets | 1.20 % | 0.39 % | 0.89 % | 0.44 % | 0.71 % | ||
Return on average common equity | 7.24 % | 29.46 % | 7.13 % | 2.57 % | 26.66 % | ||
Effect of adjustment for nonrecurring income and expenses | 0.72 % | (27.10 %) | 0.00 % | (5.97 %) | (22.45 %) | ||
Operating return on average common equity | 7.96 % | 2.36 % | 7.13 % | (3.40 %) | 4.21 % | ||
Effect of goodwill and other intangible assets | 2.23 % | 0.71 % | 2.32 % | (1.11 %) | 1.57 % | ||
Operating return on average tangible common equity | 10.19 % | 3.07 % | 9.45 % | (4.51 %) | 5.78 % | ||
Efficiency ratio | 73.97 % | 52.14 % | 78.81 % | 73.92 % | 55.39 % | ||
Effect of adjustment for nonrecurring income and expenses | 0.00 % | 38.91 % | 0.00 % | 14.75 % | 36.58 % | ||
Operating efficiency ratio | 73.97 % | 91.05 % | 78.81 % | 88.67 % | 91.97 % | ||
Earnings per common share - Basic | $ 0.30 | $ 1.20 | $ 0.28 | $ 0.10 | $ 0.92 | ||
Effect of adjustment for nonrecurring income and expenses | 0.03 | (1.10) | - | (0.23) | (0.78) | ||
Operating earnings per common share - Basic | $ 0.33 | $ 0.10 | $ 0.28 | $ (0.13) | $ 0.14 | ||
Earnings per common share - Diluted | $ 0.30 | $ 1.20 | $ 0.28 | $ 0.10 | $ 0.92 | ||
Effect of adjustment for nonrecurring income and expenses | 0.03 | (1.10) | - | (0.23) | (0.78) | ||
Operating earnings per common share - Diluted | $ 0.33 | $ 0.10 | $ 0.28 | $ (0.13) | $ 0.14 | ||
Book value per common share | $ 17.25 | $ 17.12 | $ 15.51 | $ 15.27 | $ 15.19 | ||
Effect of goodwill and other intangible assets | (3.78) | (3.78) | (3.80) | (3.79) | (3.79) | ||
Tangible book value per common share | $ 13.47 | $ 13.34 | $ 11.71 | $ 11.48 | $ 11.40 | ||
Net charge-offs as a percent of average loans (annualized) | 0.12 % | 0.16 % | 0.14 % | 0.80 % | 1.47 % | ||
Impact of third-party consumer portfolio | (0.06 %) | (0.11 %) | (0.11 %) | (0.65 %) | (1.41 %) | ||
Core net charge-offs as a percent of average loans (annualized) | 0.06 % | 0.05 % | 0.03 % | 0.15 % | 0.06 % | ||
Total Primis common stockholders' equity | $ 427,198 | $ 422,896 | $ 382,153 | $ 376,415 | $ 375,563 | ||
Less goodwill and other intangible assets | (93,488) | (93,495) | (93,502) | (93,508) | (93,804) | ||
Tangible common equity | $ 333,710 | $ 329,401 | $ 288,651 | $ 282,907 | $ 281,759 | ||
Common equity to assets | 10.04 % | 10.45 % | 9.66 % | 9.72 % | 10.16 % | ||
Effect of goodwill and other intangible assets | (2.02 %) | (2.12 %) | (2.18 %) | (2.23 %) | (2.34 %) | ||
Tangible common equity to tangible assets | 8.02 % | 8.33 % | 7.48 % | 7.49 % | 7.82 % | ||
Net interest margin | 3.43 % | 3.28 % | 3.18 % | 2.86 % | 3.15 % | ||
Effect of adjustment for Consumer Portfolio | (0.02 %) | 0.01 % | (0.03 %) | 0.26 % | (0.02 %) | ||
Core net interest margin | 3.41 % | 3.29 % | 3.15 % | 3.12 % | 3.13 % | ||
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SOURCE Primis Financial Corp.