Declares Quarterly Cash Dividend of $0.10 Per Share
MCLEAN, Va., April 23, 2026 /PRNewswire/ -- Primis Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company"), and its wholly-owned subsidiary, Primis Bank (the "Bank"), today reported net income available to common shareholders of $7.3 million, or $0.30 per diluted share, for the three months ended March 31, 2026, compared to net income available to common shareholders of $22.6 million, or $0.92 per diluted share, for the three months ended March 31, 2025. Operating net income(1) available to common shareholders for the three months ended March 31, 2026 was $8.1 million, or $0.33 per diluted share, compared to operating net income(1) available to common shareholders of $3.6 million, or $0.14 per diluted share, for the same period in 2025.
Q1 2026 Accomplishments
The Company demonstrated strong profitability in the first quarter of 2026. Significant areas of improvement year-over-year are detailed in the chart below:
As of or for the Three Months Ended
--------------------------------------- ----
($ in millions except
per share) 3/31/2026 3/31/2025 Var.
---------------- ---- --------------- ----
Operating Net
Income(1) $8.1 $3.6 126%
Operating ROAA(1) 0.84% 0.40% 44 bps
Operating ROTCE(1) 10.19 5.78 441
Net Interest Income $32.1 $26.4 22%
Net Interest Margin 3.43 3.15 28 bps
Total Assets $4,257 $3,697 15%
Gross Loans HFI 3,396 3,043 12
Total Deposits 3,423 3,169 8
Average Earning Assets $3,794 $3,400 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) $13.47 $11.40 18%
Retail Mortgage
Volume $367 $165 122%
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 Virginia and Maryland represent almost two-thirds of the Company's total balance sheet. Management believes the core Bank drives significant value for the Company with a stable deposit base and strong core profitability:
-- The core Bank has low concentrations of investor CRE (25% of total loans
and only 197% of regulatory capital)
-- $66 million of closed loans in the first quarter of 2026 with a pipeline
of $123 million as of March 31, 2026.
-- Cost of deposits of 1.59% in the first quarter of 2026 compared to 1.85%
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 23% of the core Bank's deposit base are noninterest bearing deposits, supported with what management believes is the region's best and most unique technology including the Bank's proprietary V1BE service, which directly supports more than $200 million of mostly commercial clients in the Bank's footprint. Approximately $60 million of checking accounts are associated with customers that use V1BE regularly.
Primis Mortgage
Primis Mortgage had closed mortgage volume of $367 million in the first quarter of 2026, up 122% compared to the same quarter in 2025. Construction-to-permanent loan volume was $26 million in the first quarter of 2026 versus $4 million in the same period in 2025. Pre-tax earnings related to Primis Mortgage were approximately $2.1 million for the first quarter of 2026, up substantially from earnings of $0.8 million in the first quarter of 2025.
Mortgage Warehouse
Mortgage warehouse lending continued to show strong growth in the first quarter of 2026. Outstanding loan balances at March 31, 2026 were $460 million, up 300% from $115 million at March 31, 2025. Average loan balances were $342 million in the first quarter of 2026, up 14% from $300 million in the fourth quarter of 2025 and up 499% from $57 million in the first quarter of 2025. Mortgage warehouse also funded on average approximately 12% of its balance sheet with associated customer noninterest bearing deposit balances during the first quarter of 2026.
Panacea Financial
Panacea's growth remained strong through the first quarter of 2026 with loans outstanding of $600 million, including loans held for sale, up 10% compared to December 31, 2025. The loans held for sale at March 31, 2026 are expected to be sold early in the second quarter of 2026 with ongoing flow loan sales thereafter allowing for continued high growth rates without straining the Company's balance sheet. At the end of the first quarter of 2026, Panacea customer deposits totaled $153 million, up 63% from March 31, 2025. Panacea is the number one ranked "Bank for doctors" on Google and banks over 7,500 professionals and practices nationwide.
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 $1.0 billion of deposits with a cost of deposits of 3.79% compared to $1.0 billion at March 31, 2025 with a cost of 4.36%. The platform also successfully grew business accounts in 2026 with small business balances reaching $28 million at March 31, 2026, up substantially from $16 million at December 31, 2025. Over 1,200 of our digital accounts have come from referrals from other customers and approximately 81% of our consumer accounts have been with the Bank for over two years.
Net Interest Income
Net interest income in the first quarter of 2026 was $32 million, up 22%, versus $26 million in the first quarter of 2025. As noted above, the Company's net interest margin improved to 3.43% in the first quarter of 2026 compared to 3.15% in the same quarter of 2025 with the expansion driven by robust earning asset growth funded at attractive incremental margins.
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 2.65% compared to 2.93% in the same quarter in 2025. Cost of funds was 2.46% in the first quarter of 2026, down 21 basis points from 2.67% in the first quarter of 2025.
Noninterest Income
Noninterest income was $14 million in the first quarter of 2026 versus $32 million in the first quarter of 2025 with a substantial portion of the decrease driven by a $25 million gain from Panacea Financial Holdings investment in the first quarter of 2025. Excluding this item, noninterest income was $14 million in the first quarter of 2026 versus $7 million in the first quarter of 2025. Mortgage related income grew 92% to $11 million in the first quarter of 2026 compared to $6 million in the same quarter in 2025. As previously disclosed, the Company is currently in the process of restructuring its bank-owned life insurance portfolio which is anticipated to improve noninterest income by approximately $1.2 million annually beginning late in the second quarter of 2026.
The Company reported gain on sale income of $0.6 million related to the sale of the guaranteed portion of SBA loans in the first quarter of 2026 for no similar gain on sale income in the first quarter of 2025. Approximately $45 thousand of the gain on sale income was attributable to the core Bank in the first quarter of 2026 with the remainder driven by the Panacea Division. The Company anticipates increasing SBA gain on sale income to between $500 thousand to $600 thousand from the core Bank beginning in the second quarter of 2026.
Noninterest Expense
Noninterest expense was $34 million for the first quarter of 2026, compared to $33 million for the same quarter of 2025. The following table reflects the core operating expense burden at the Company, net of mortgage related and Panacea division impacts.
($ in thousands) 1Q26 4Q25 3Q25 2Q25 1Q25
-------- -------- -------- ------- -------
Reported Noninterest Expense $33,754 $42,164 $32,313 $31,942 $32,516
PFH Consolidated Expenses - - - - (4,754)
-------- -------- -------- ------- -------
Noninterest Expense Excl. PFH $33,754 $42,164 $32,313 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 $21,958 $28,112 $21,579 $22,290 $20,798
Core operating expense burden, as defined above, was $22 million in the first quarter of 2026 versus $21 million in the first quarter of 2025. As previously disclosed, the first quarter of 2026 includes a full quarter of lease expense, net of reduced depreciation expense, of approximately $1.4 million from the Company's sale leaseback transaction executed in the fourth quarter of 2025. Excluding the effects of that transaction, core operating expense burden would have been $20.6 million, a decrease of 1% from the year-ago period.
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 $3.4 billion at March 31, 2026 compared to $3.3 billion at December 31, 2025 and $3.0 billion at March 31, 2025. Primary drivers in these levels include:
-- Core Bank loans averaged approximately $2.0 billion in the first quarter
of 2026, flat from the fourth quarter of 2025
-- Panacea Financial loans grew $56 million through the end of first quarter
of 2026 to $600 million including loans held for sale at March 31, 2026.
-- Mortgage warehouse outstandings increased significantly to $460 million
at the end of the first quarter of 2026 compared to $318 million at
December 31, 2025. Approved lines ended the first quarter of 2026 at
$1.37 billion across 139 customers.
-- Loan balances associated with the consumer loan program declined to $82
million at March 31, 2026, net of fair value discounts, compared to $132
million at March 31, 2025. Importantly, loans in promotional periods
with full deferral now represent an immaterial amount of the portfolio
which is amortizing down over time.
Nonperforming assets, excluding portions guaranteed by the SBA, were 2.24% of total assets at March 31, 2026 compared to 2.03% of total assets at December 31, 2025. Nonperforming assets increased $13.6 million from December 31, 2025 to $100 million at March 31, 2026 due to one relationship that was 90 days past due at quarter-end but subsequently made multiple payments to reduce its delinquency. Substandard and nonaccrual loans were essentially flat linked-quarter.
The Company recorded a provision for credit losses of $1.5 million for the first quarter of 2026 compared to a provision for credit losses of $2.4 million for the fourth quarter of 2025 and $1.6 million for the first quarter of 2025. Approximately $0.1 million of the first quarter 2026 provision was related to growth in the loan portfolio. Another $0.4 million was related to the Consumer Program portfolio which was down from $0.6 million in the fourth quarter of 2025. Lastly, changes in impairment amounts for individually evaluated loans contributed $0.6 million to the provision in the first quarter of 2026. Core net charge-offs as a percentage of average loans were six basis points, flat with the same period a year ago and up one basis point from the fourth quarter of 2025.
As a percentage of loans held for investment, the allowance for credit losses was 1.37% at the end of the first quarter of 2026 compared to 1.45% at the end of the first quarter of 2025. Total allowance and discounts on the consumer loan program portfolio totaled $6.7 million at March 31, 2026, which represents 8% of gross principal balance and 358% of loans more than one period delinquent as of that date.
Deposits and Funding
Total deposits at March 31, 2026 were $3.4 billion, up $0.2 billion, or 8% when compared to the same period in 2025. Noninterest bearing demand deposits were $541 million at March 31, 2026, an increase of 19% compared to balances at March 31, 2025. The Company had FHLB advances totaling $230 million outstanding at March 31, 2026 up from $25 million at December 31, 2025 and versus no advances at March 31, 2025.
Taxes
Tax expense for the first quarter of 2026 was $3 million. Included in this expense was $0.8 million of tax expense related to the Panacea Financial Holdings deconsolidation in 2025 and is considered nonrecurring. Excluding this amount, tax expense for the first quarter of 2026 was $2.3 million or an effective tax rate of 21.8% of pre-tax earnings. The Company expects the effective tax rate to be at a similar level for the rest of 2026.
Shareholders' Equity
Tangible book value per common share(1) at the end of the first quarter of 2026 was $13.47, an increase of $2.07 or 18% from levels reported at March 31, 2025. Tangible common equity(1) ended the first quarter of 2026 at $334 million, or 8.02% of tangible assets(1) .
The Board of Directors declared a dividend of $0.10 per share payable on May 22, 2026 to shareholders of record on May 8, 2026. This is Primis' fifty-eighth consecutive quarterly dividend.
About Primis Financial Corp.
As of March 31, 2026, Primis had $4.3 billion in total assets, $3.4 billion in total loans held for investment and $3.4 billion in total deposits. Primis Bank provides a range of financial services to individuals and small- and medium-sized businesses through twenty-four full-service branches in Virginia and Maryland and provides services to customers through certain online and mobile applications.
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 McLean, VA 22102
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 U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services); the Company's ability to implement its various strategic and growth initiatives, including its recently established Panacea Financial Division, digital banking platform, V1BE fulfillment service, Mortgage Warehouse division and Primis Mortgage Company, as well as with respect to use and implementation of artificial intelligence; competitive pressures among financial institutions increasing significantly (including as a result of technological changes and the use of artificial intelligence); changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices; legislative, regulatory or supervisory actions related to so--called "de--banking," including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices; changes in management's plans for the future; credit risk associated with our lending activities; changes in accounting principles, policies, or guidelines; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions; potential impacts of adverse developments in the banking industry, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; potential increases in the provision for credit losses; our ability to identify and address increased cybersecurity risks, including those impacting vendors and other first parties; fraud or misconduct by internal or external actors, which we may not be able to prevent, detect or mitigate; acts of God or of war or other conflicts, civil unrest, acts of terrorism, pandemics or other catastrophic events that may affect general economic conditions; action or inaction by the federal government, including as a result of any prolonged government shutdown; and other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services.
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
Virginia franchise tax
expense 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 %
===================== ===================== ===================== ===================== =====================
View original content to download multimedia:https://www.prnewswire.com/news-releases/primis-financial-corp-reports-strong-results-for-the-first-quarter-of-2026-302752076.html
SOURCE Primis Financial Corp.
(END) Dow Jones Newswires
April 23, 2026 17:00 ET (21:00 GMT)