#USA #McLean #Primis Financial #Primis Bank #Q2 2025 Earnings

Primis Financial Corp. Reports Second Quarter 2025 Results

On July 24, 2025, Primis Financial Corp. (NASDAQ: FRST), alongside its fully owned subsidiary, Primis Bank, declared its latest earnings for the second quarter of 2025. The financial institution reported impressive growth, showcasing a significant enhancement in net income available to common shareholders, which amounted to $8.4 million, translating to $0.34 per diluted share. This figure marks a notable increase from the $3.4 million, or $0.14 per diluted share, reported during the same period last year.

Additionally, the first half of 2025 saw the company securing a net income of $31.1 million, which is equivalent to $1.26 per diluted share, in comparison with $5.9 million or $0.24 per diluted share for the first half of 2024. The ongoing trend of positive earnings reveals a focus on enhancing profitability and operational agility in key areas, even as the quarter bore both advantageous and challenging factors that the management does not expect to persist in the future.

Operating Results Highlights

Several significant events occurred within the quarter that impacted the company’s operational trajectory. Notably, Primis completed the sale of part of its stake in Panacea Financial Holdings Inc. for $22.1 million, which yielded a pre-tax gain of $7.5 million. Despite the ongoing fluctuations in promotional loans, which ultimately concluded the quarter at $9.6 million, the anticipated reduction in loan loss provisions demonstrated healthy credit quality characteristics.

Furthermore, the bank has successfully transitioned to closing $323 million in mortgage loans, representing an increase of 52% compared to the previous year. A considerable aspect of the growth stems from construction-to-permanent loans, where revenue recognition aligns with the completion of the construction timeline. The company anticipates further profitability improvements through planned expense reductions from renegotiated core contracts and the consolidation of vendor relations, projecting cuts of both $0.9 million in the third quarter and $1.5 million in the fourth quarter and beyond.

Commentary from Leadership

Dennis J. Zember, Jr., the company’s President and CEO, expressed satisfaction with the organization’s recovery trajectory, citing stronger performance in their balance sheet aimed at sustainable earnings growth for the second half of 2025. He noted that the core banking entity is vigorously optimizing profitability through its strong deposit base while moderately pursuing growth opportunities.

Zember also acknowledged the challenges faced in mortgage profitability due to the lag in revenue from high-margin construction loans. He underscored an impending technological cost reduction initiative expected to yield substantial savings later in Q3 2025. The company anticipates run-rate pre-tax pre-provision earnings to range between $10.5 million to $11 million, supported by forthcoming growth initiatives and balance sheet adjustments.

Achievements Across Divisions

The second quarter of 2025 not only demonstrates improvement across various financial dimensions, but also highlights the strategic advancements of each division within Primis Financial. Notably, the core community bank operates with a solid foundation of 24 branches in Virginia and Maryland, contributing approximately 70% of the total balance sheet. The bank maintains healthy loan-to-deposit ratios, and there is zero reliance on structured broker deposits.

The proprietary banking app, V1BE, specifically designed for commercial depositors, has also bolstered new customer sales, optimizing revenue streams outside conventional lending practices. Approximately 19% of the core bank's deposits are now non-interest bearing, further solidifying operational effectiveness and customer engagement.

In the mortgage domain, Primis Mortgage reported substantial growth figures, reinforcing its repositioning within the market. The national strategies such as mortgage warehouse lending continue to expand steadily, with a remarkable increase in loan balances, validating the bank's proactive approach in its online and digital spaces.

For Panacea Financial, strong growth indicators remain evident with loans reaching $505 million, supported by a notable rise in customer deposits, pointing towards a promising trajectory targeted at healthcare professionals nationwide.

Conclusion

At the conclusion of the second quarter, Primis Financial Corporation is poised to navigate through remaining 2025 with ambitious plans fueled by recent performance metrics and a disciplined approach to cost efficiency and capital management. The strategic emphasis on profitable growth vis-a-vis a solid operational framework positions the company favorably for future achievements, ultimately aiming to enrich its service offerings for a diverse clientele.