Primis Financial Corp. Announces Successful Deconsolidation of Panacea Financial Holdings

Primis Financial Corp. Reports Deconsolidation of Panacea

MCLEAN, Va. — In a significant move for its financial structure, Primis Financial Corp. (NASDAQ: FRST) has announced the deconsolidation of Panacea Financial Holdings (PFH), effective March 31, 2025. This adjustment is expected to notably impact the company's financial positioning, leading to a pre-tax gain estimated at around $24.6 million.

The deconsolidation process entails re-evaluating the investment into PFH. Engaging an independent third-party evaluator, Primis assessed the fair market value of its investment, determining it to be approximately $21.2 million. Furthermore, the financial institution anticipates recovering certain consolidated operating losses that total about $3.4 million. With part of these amounts deemed non-taxable, Primis is positioned to realize an after-tax gain of around $20 million, translating to approximately $0.81 per share.

In discussing the strategic importance of this move, Dennis J. Zember, Jr., the President and CEO of Primis, emphasized that deconsolidating PFH represents a positive progression for the company. He noted, “This adjustment not only enhances our capital levels and tangible book value but also simplifies our financial statement presentation. As a result, we expect improvements in our operating ratios, with return on assets (ROA) anticipated to boost by ten basis points, while our operating efficiency ratio is projected to decrease by approximately 14 points.”

Importantly, while PFH will no longer appear on Primis’s balance sheet, Primis Bank will maintain its role as the exclusive banking partner for all loans and deposits via its Panacea division, ensuring continuity of services.

As of the latest report on March 31, 2025, Primis Financial Corp. has reported total assets amounting to $3.7 billion, with total loans held for investment at $3.0 billion and total deposits reaching $3.2 billion. Through its 24 full-service branches located in Virginia and Maryland, alongside comprehensive online and mobile application services, Primis Bank supports individuals and small to medium-sized businesses in addressing a wide array of financial needs.

This strategic movement allows Primis to refine its focus on core banking operations while enhancing its financial health — a vital step amid a competitive landscape in the banking sector.

In addition to the deconsolidation, the company remains vigilant in navigating future challenges and opportunities within the financial services industry. With a forward-looking approach, they continue to develop strategic initiatives aimed at optimizing growth and enhancing service delivery.

The announcement has already stirred interest among investors and market analysts, as deconsolidation often indicates a shift towards improved operational efficiencies and financial robustness. Primis is committed to keeping stakeholders informed as further developments arise, particularly regarding the implementation of its growth strategies.

Overall, Primis Financial Corp.'s deconsolidation of Panacea Financial Holdings marks a crucial milestone in its strategic financial restructuring. As this company moves forward, continued improvements in operational efficiency and strengthened financials may position it favorably within the evolving banking landscape.