Primis Financial Corp. Moves Forward with Partial Sale of Panacea Financial Holdings Shares

Primis Financial Corp. (NASDAQ: FRST) has recently announced a significant step in its business strategy: the signing of a non-binding term sheet aimed at selling a portion of its ownership in Panacea Financial Holdings, Inc. This move comes on the heels of the deconsolidation of Panacea as of March 31, 2025. The anticipated sale is expected to yield proceeds of approximately $22 million to Primis, along with a projected pre-tax gain ranging from $6.5 to $7 million due to the favorable sales price per share over its carrying value.

Overview of the Transaction

Dennis J. Zember, Jr., the President and CEO of Primis, remarked on the strategic nature of this transaction. He explained that this financial maneuver will enable the company to adopt a more aggressive approach towards various strategies, including its shares repurchase program, which aims to enhance tangible book value and demonstrate management’s confidence in the company’s operational results. Furthermore, the company's margins in core banking sectors and business lines are reportedly stronger than they have been in years, with growth achieved without significant increases in operational costs.

"The success of Panacea Financial in recent years has far exceeded our expectations, not only in terms of growth but also in the value it has created for our stakeholders," Zember stated. Although the sale represents an opportunistic way to monetize part of our investment, it does not alter our strong belief in Panacea's long-term potential. We continue to support their mission and look forward to seeing them foster innovation in financial solutions tailored to medical professionals across the nation."

Financial Insights

As of March 31, 2025, Primis Financial Corp. boasted total assets amounting to $3.7 billion, with $2.9 billion in loans and $3.2 billion in deposits. Primis Bank, the company’s banking subsidiary, offers a comprehensive range of financial services catering to individuals and small to medium-sized enterprises through a network of 24 full-service branches located in Virginia and Maryland. They also leverage online and mobile application services to enhance customer experience and accessibility.

Growth Strategy

This recent decision is positioned as a part of Primis's broader growth strategy. By realizing gains from the partial sale of its stake in Panacea Financial, the company hopes to better achieve its financial and operational goals. Zember pointed out that this strategy serves as a successful case study for the industry, reflecting how valuable organic growth can be achieved through innovative and technology-driven approaches.

Looking Ahead

Primis Financial is confident that this move will not only bolster its financial standing but also position it for future opportunities. The company remains committed to enhancing its partnership with Panacea Financial and believes that the latter will continue to make significant advancements in delivering tech-enabled financial solutions to healthcare professionals.

In conclusion, the sale of shares represents a thoughtful approach by Primis Financial Corp. to navigate the complex landscape of the financial services industry while reinforcing its growth strategy. As the market evolves, investors and stakeholders will be watching with keen interest how this decision impacts the overall trajectory of both Primis and Panacea Financial Holdings in the coming years.