[Management View]
Primis Financial reported net earnings of $6.8 million, or $0.28 per share, up from $2 million, or $0.08 per share, in the same quarter of 2024. Key metrics include a return on assets (ROA) of 70 basis points and a return on tangible common equity (ROTCE) of 9.45%. The core net interest margin increased to 3.15%, driven by higher-yielding new and replacement loan activity and a successful deposit remix strategy. The company also highlighted significant growth in noninterest-bearing deposits and strong performance in the residential mortgage and mortgage warehouse divisions.

[Outlook]
Management expressed confidence in achieving a 1% ROA in the near term, with pretax earnings guidance of over $13 million. They anticipate further margin expansion and earnings lift as deposit cost reductions and loan repricing flow through results in the coming quarters. The focus remains on driving low-cost deposit growth and leveraging digital and franchise growth initiatives.

[Financial Performance]
Year-over-year, net earnings increased from $2 million to $6.8 million. The core net interest margin rose to 3.15% from 2.97% a year ago. Noninterest-bearing deposits grew approximately 616% year-over-year, and Panacea average loans increased to $530 million from $385 million. The mortgage division's monthly production scaled from about $20 million to $100 million–$120 million, with annual production increasing by about 10% from the start to the end of Q3 2025.

[Q&A Highlights]
Question 1: I wanted to begin on loan growth, please. And it would be helpful to get your thoughts about how you are thinking about overall growth for the fourth quarter, given maybe some potential mortgage warehouse seasonality, continued consumer runoff, and then thinking ahead into '26 as well in terms of order of magnitude and mix.
Answer: On mortgage warehouse, we have significant potential and maturing opportunities. We expect to sustain current levels, with Panacea loans potentially reaching $550 million. For the core bank, we anticipate 6-8% growth, with overall growth of 10-12% by this time next year.

Question 2: The timing of when you would expect to get to that 3.30 margin that you say is average earning asset driven. I think maybe just expand upon what you are referring to when you talk about continued shifts in deposit mix will then become a focus.
Answer: We aim to reach a 3.30 margin by year-end 2025, focusing on increasing non-interest-bearing deposits to 20% of total deposits. Our strategies are centered on driving low-cost deposits, which will significantly contribute to margin improvement.

Question 3: I wanted to ask about the deposits. And Dennis, the point you made on deposit costs incrementally with interest rates going down, does that get harder to do? Or does it get more easier or flexible for you to drive more deposits in at kind of the appropriate rate to push up margin?
Answer: We believe that driving checking account growth allows us to be competitive on rate-oriented products while maintaining a cost of deposits at or below our peer group. Our focus on core funding and avoiding broker CDs and institutional borrowings supports our margin and operating leverage.

Question 4: Are you finding evidence that these are more sticky customers which is really differentiating Primis Financial Corp from the rest of the pack?
Answer: Yes, our digital bank customers are proving to be stickier than expected, with over 90% retention rates. These customers have strong relationships with our bankers, contributing to their stickiness despite being more rate-sensitive than traditional community bank customers.

Question 5: Do you see any of those getting resolved in the next two, three, four quarters? And even though it is only a few basis points of margin difference, do you see any of that helping you in the next few quarters?
Answer: We expect one larger C&I property to potentially be resolved in the fourth quarter, which would improve the margin. The other real estate deals in Alexandria may take until mid-2025 to show significant improvement.

[Sentiment Analysis]
Analysts were generally positive, focusing on loan growth, margin expansion, and deposit strategies. Management maintained a confident and optimistic tone, emphasizing their strategic initiatives and growth potential.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | Q3 2024 |
|-------------------------------|---------------|---------------|---------------|
| Net Earnings | $6.8 million | N/A | $2 million |
| EPS | $0.28 | N/A | $0.08 |
| ROA | 70 bps | N/A | N/A |
| ROTCE | 9.45% | N/A | N/A |
| Core Net Interest Margin | 3.15% | 3.12% | 2.97% |
| Noninterest-Bearing Deposits | +616% YoY | N/A | N/A |
| Panacea Average Loans | $530 million | N/A | $385 million |
| Mortgage Division Production | $100-120 million/month | N/A | $20 million/month |

[Risks and Concerns]
- Exposure to non-accrual loans, particularly in Northern Virginia office properties.
- Potential impact of interest rate changes on deposit costs and margins.
- Dependence on digital banking customers who may be more rate-sensitive.

[Final Takeaway]
Primis Financial demonstrated strong financial performance in Q3 2025, with significant growth in net earnings, core net interest margin, and noninterest-bearing deposits. Management's strategic focus on driving low-cost deposit growth and leveraging digital banking initiatives positions the company for continued margin expansion and profitability. While there are some risks related to non-accrual loans and interest rate changes, the overall outlook remains positive, with a clear path to achieving a 1% ROA in the near term.