FRST

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was characterized by significant operating leverage, with core revenue growing 40% year-over-year while controllable operating expenses increased by less than 5%. Net interest margin expansion to 3.45% was driven by steady earning asset growth funded at attractive incremental margins, particularly through noninterest-bearing deposits. The company achieved record consolidated core revenue exceeding $50 million, supported by strong performance in the mortgage division., benefiting from strong sales execution and tight expense management despite high interest rates. Credit quality improved significantly as classified assets declined by 36%, primarily due to the refinancing of a large C&I loan and the stabilization of a mixed-use project. Management is prioritizing a 'digital advantage' strategy, utilizing a national reach to acquire low-cost deposits that fuel higher-yielding specialized lending divisions like Panacea and Mortgage Warehouse. Strategic positioning focuses on owner-occupied CRE and C&I lending while intentionally avoiding investor CRE to maintain margin quality and risk discipline. The core consolidation project is expected to deliver $7 million in annual pretax earnings improvements for next year's results, which includes $6.1 million from identified revenue and expense improvements as well as the elimination of amortization expense. Management anticipates net interest margin will remain stable near current levels, with a planned subordinated debt refinance expected to save 200-250 basis points in interest costs. Loan growth in the second half of 2026 is expected to mirror the first half, supported by a strong core bank pipeline and increased balance sheet retention of Panacea loans. The company expects to eliminate $800 thousand per quarter in amortization expense following the third quarter of 2027. as capitalized platform development costs conclude. Future efficiency gains are targeted through the deployment of AI tools and agents to maintain strong operating leverage and limit future expense growth. A $5.9 million gain from the sale of an insurance agency investment was fully offset by a legal settlement and a specific reserve build on a large office CRE loan. Management added $5.3 million to specific reserves for its largest office loan due to the 'passage of time' and slow progress on vacancy, despite the borrower remaining current on payments. The office CRE reserve now exceeds $11 million, with management utilizing a discounted cash flow (DCF) model rather than a collateral-dependent appraisal to account for impairment. Core operating expenses are expected to normalize to a range of $22 million to $22.5 million in the third quarter following several discrete expenses in Q2. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects NIM to remain within a few basis points of current levels for the foreseeable future. Pressure on loan pricing is expected to be offset by the refinancing of high-cost subordinated debt in the next one to two quarters. The credit is in nonaccrual status but is not 90 days past due; the borrower is actively investing in tenant improvements and recently signed a pre-lease LOI. Management increased reserves to reduce potential future earnings volatility as the asset has remained on nonaccrual for 12 months without significant vacancy reduction. Growth in the back half of the year will likely be driven by Panacea and the core bank's pipeline, while Mortgage Warehouse growth may moderate compared to the first half. New loan yields are expected to be incremental to the current book, supporting the existing margin profile. The new real-time digital core is expected to provide a competitive advantage in flexibility and customer service while operating at roughly half the cost of traditional systems for a bank of this size. The contract is fixed-cost, meaning future growth to $8 billion or $10 billion in assets will not scale the core expense, directly benefiting shareholders.

Interested in Primis Financial Corp.? Here are five stocks we like better. Primis Financial posted Q2 2026 net income of $9.4 million, or $0.38 per diluted share, up sharply from both the prior quarter and a year earlier. Return on average assets improved to 0.90%, which management said better reflects the company’s recurring operating level. Revenue and balance-sheet trends were strong, with net interest income rising to $33.8 million and net interest margin expanding to 3.45%. Loan growth, deposit growth, and higher noninterest income — including stronger mortgage activity — helped drive the quarter. Credit quality improved overall, but Primis increased reserves on its largest office commercial real estate loan, contributing to a $5.5 million provision for credit losses. Management also outlined a core consolidation initiative it says could add about $7 million pretax next year, or roughly $0.22 per share. Primis Financial (NASDAQ:FRST) reported second-quarter 2026 net income of $9.4 million, or $0.38 per diluted share, up from $7.3 million, or $0.30 per share, in the first quarter and $2.4 million, or $0.10 per share, a year earlier. President and Chief Executive Officer Dennis Zember said the quarter reflected revenue growth, contained operating expenses, improved net interest margins, lower nonperforming assets and continued growth in earning assets. Return on average assets rose to 0.90%, from 0.76% in the prior quarter and 0.26% a year earlier. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? The quarter included a $5.9 million gain from the sale of an insurance agency investment. Primis said it offset that gain with a legal settlement and a reserve build on its largest office commercial real estate credit. Zember said the company viewed its reported 0.90% return on assets as representative of its recurring operating level. Net interest income totaled approximately $33.8 million, compared with $32.1 million in the first quarter and $25.2 million in the year-ago period. Net interest margin was 3.45%, up two basis points sequentially and 59 basis points from 2.86% a year earlier. → GE Vernova Just Sent a Mixed AI Signal to Investors Chief Financial Officer Matthew Switzer said the margin improvement reflected earning-asset growth funded at attractive incremental margins, including a three-basis-point sequential increase in the yield on earning assets. Average earning assets increased about 14% on an annualized basis during the quarter and 11% year over year. Gross loans held for investment grew about 8% annualized from March 31 through June 30 and were 11% higher than a year earlier, led by continued growth in Panacea and Mortgage Warehouse. Average deposits increased about 12% annualized, while average noninterest-bearing deposits rose about 24% annualized. Noninterest-bearing deposits represented 16.3% of average deposits, compared with 14.3% a year earlier. → D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? Core bank deposit costs were 1.60% during the quarter, down from 1.79% in the prior-year period. Total deposit costs were 2.25%, down 28 basis points year over year, while total funding costs were 2.46%, flat sequentially and down 21 basis points from a year earlier. Management said it expects net interest margin to remain near current levels, within roughly one or two basis points, as competitive pressures affect loan pricing. Switzer said Primis has subordinated debt that it expects to refinance within the next one or two quarters, potentially reducing the cost of that debt by 200 to 250 basis points and offsetting incremental margin pressure. Noninterest income was $22 million, up from $13.6 million in the first quarter and $18 million a year ago. Beyond the insurance-investment gain, mortgage-related noninterest income increased 44% year over year to $11.4 million. Primis Mortgage closed $421 million in volume, a 30% increase from the second quarter of 2025. The company also recorded $1.6 million in gain-on-sale income from sales of Panacea loans and guaranteed portions of Small Business Administration loans, including about $237,000 attributable to the core bank. Zember said Primis generated more than $50 million in core revenue for the first time, a level 40% higher than a year earlier. He said core operating expenses rose about 16% over the past year, with 7.3% tied to higher mortgage revenue and 4.7% related to lease expense from the company’s sale-leaseback transaction. He characterized the controllable portion of expense growth as less than 5%. Switzer said core operating expenses, excluding volatility in the mortgage and Panacea divisions and nonrecurring items, were approximately $25 million, compared with about $22 million in the first quarter and the year-ago quarter. Second-quarter expenses included $1.1 million related to a previously disclosed mortgage lawsuit settlement, $400,000 in higher loan-related costs, $200,000 in additional marketing expense, and roughly $900,000 in smaller costs associated with the company’s shelf filing, foreign exchange fees and core conversion project. Primis expects noninterest expenses excluding mortgage and Panacea to return to a $22 million to $22.5 million range in the third quarter, Switzer said. Primis recorded a $5.5 million provision for credit losses, compared with $1.5 million in the first quarter and $8.3 million a year earlier. About $5.3 million of the second-quarter provision related to a specific reserve increase for one nonaccrual credit, the company’s largest office commercial real estate loan. Nonperforming assets, excluding SBA-guaranteed portions, improved to 1.45% of total assets at quarter-end, from 2.35% at March 31 and 1.90% a year earlier. Zember said nonperformers declined 36%, aided by the refinancing of a commercial-and-industrial loan elsewhere and an upgrade of a mixed-use commercial project that reached stabilization. Classified assets declined by about $53 million, or 36%. Management said the office loan has reserves of slightly more than $11 million. The borrower remains current on payments and continues to invest in tenant improvements and leasing commissions, though the loan remains on nonaccrual status. Switzer said the additional reserve reflected limited progress in reducing vacancy over the prior 12 months and was based on discounted cash flow assumptions rather than an appraisal. Primis said its planned core consolidation is expected to produce $6.1 million of earnings improvements, largely in early 2027. The estimate includes $3 million of revenue improvements from product and fee changes and $3.1 million from vendor and contract consolidation. In addition, the company expects $800,000 per quarter of amortization expense related to capitalized platform development costs to end in the third quarter of 2027. Zember said the overall effect of the initiative, including amortization, is expected to be about $7 million pretax next year, or approximately $0.22 per diluted share. Switzer said Primis is also beginning to deploy artificial intelligence tools and agents intended to improve productivity and limit expense growth. Management said the company expects only smaller core-conversion implementation costs over the next several quarters. Primis Financial Corporation is a bank holding company headquartered in Waycross, Georgia, operating through its wholly owned subsidiary, Primis Bank. The company offers a full suite of commercial and retail banking services tailored to meet the needs of individuals, small businesses, and agricultural clients across its service area. Primis Bank focuses on building relationships within the communities it serves, positioning itself as a local financial partner for deposit-taking, lending, and treasury management solutions. Primis Bank maintains a network of branch offices throughout southeastern Georgia, serving a combination of rural and suburban markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Primis Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Earnings: $9.4 million, or $0.38 per share, compared to $2.4 million, or $0.10 per share, a year ago. Net Interest Margin: 3.45%, up from 3.43% last quarter and 2.86% a year ago. Core Revenue: Over $50 million, 40% higher than a year ago. Operating Expenses: Core OpEx up 16% year-over-year, with less than 5% growth in controllable expenses. Non-Performing Assets: Improved to 1.45% of total assets from 2.35% in the previous quarter. Gross Loans: Increased approximately 8% annualized from March 31 to June 30, up 11% year-over-year. Average Earning Assets: Increased approximately 14% annualized in the second quarter, up 11% year-over-year. Net Interest Income: Approximately $33.8 million, up from $32.1 million last quarter and $25.2 million a year ago. Non-Interest Income: $22 million in the quarter, including a $5.9 million pre-tax gain from an investment liquidation. Mortgage-Related Non-Interest Income: Grew 44% year-over-year to $11.4 million. Provision for Credit Losses: $5.5 million, with $5.3 million related to specific reserve additions. Return on Average Assets (ROA): 90 basis points, up from 76 basis points last quarter and 26 basis points a year ago. Warning! GuruFocus has detected 7 Warning Sign with FRST. Is FRST fairly valued? Test your thesis with our free DCF calculator. Release Date: July 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Primis Financial Corp (NASDAQ:FRST) reported a significant increase in net earnings to $9.4 million, or $0.38 per share, compared to $2.4 million, or $0.10 per share, a year ago. The company achieved a net interest margin of 3.45%, up from 2.86% in the year-ago period, reflecting robust earning asset growth. Non-performing assets improved significantly, decreasing to 1.45% of total assets from 2.35% in the previous quarter. The mortgage-related non-interest income grew 44% year-over-year, contributing to a strong performance in the mortgage division. Primis Financial Corp (NASDAQ:FRST) is implementing a core consolidation project expected to yield $7 million in pre-tax earnings improvements, enhancing future profitability. The company faced pressure on loan pricing, which could impact net interest margins in the future. A specific reserve addition of $5.3 million was required for a non-accrual credit, indicating ongoing credit quality concerns. Core net charge-offs increased to 53 basis points in the second quarter, up from 6 basis points in the first quarter. The cost of total deposits increased slightly to 2.25% in the second quarter, indicating rising funding costs. The company incurred several discrete expenses, including $1.1 million related to a mortgage lawsuit settlement, impacting overall expenses. Q: How do you see the net interest margin (NIM) outlook given the current competitive environment? A: Matthew Switzer, CFO, stated that the NIM is expected to remain stable, with potential refinancing of subordinated debt saving 200-250 basis points, which should offset any incremental pressures on the margin. Q: Can you provide an update on the larger office CRE credit and the total specific reserve against it? A: Matthew Switzer, CFO, mentioned that the reserve is a little over $11 million. The borrower is actively working to lease the property, and a significant lease LOI was signed in the second quarter. The bank is maintaining a healthy reserve to manage potential earnings volatility. Q: Are there any significant one-time costs remaining with the core conversion project? A: Matthew Switzer, CFO, indicated that there might be smaller implementation fees in the next few quarters, but nothing significant, likely only a few hundred thousand dollars. Q: What is the outlook for loan growth in the second half of the year? A: Dennis Zember, CEO, expects continued growth in Panacea and Mortgage Warehouse, with the core bank maintaining a strong pipeline. The growth is anticipated to be similar to the first half of the year, with incremental yields expected to be positive for the margin. Q: How are you managing incremental deposit costs as a potential headwind to margin? A: Matthew Switzer, CFO, explained that growth in mortgage warehouse and digital bank deposits, which are largely non-interest-bearing, has been beneficial. The core bank has also shown growth in footprint, providing more levers to manage deposit costs effectively. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Declares Quarterly Cash Dividend of $0.10 Per Share MCLEAN, Va., July 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 $9.4 million, or $0.38 per diluted share, for the three months ended June 30, 2026, compared to net income available to common shareholders of $2.4 million, or $0.10 per diluted share, for the three months ended June 30, 2025. For the six months ended June 30, 2026, the Company reported net income available to common shareholders of $16.7 million, or $0.68 per diluted share, compared to a net income available to common shareholders of $25.1 million, or $1.01 per diluted share, for the six months ended June 30, 2025. Q2 And Year-to-Date 2026 Accomplishments The Company demonstrated strong profitability in the second quarter and first half of 2026. Significant areas of improvement year-over-year are detailed in the chart below: Commenting on the results, Dennis J. Zember, Jr., President and Chief Executive Officer of the Company, stated, "We delivered another quarter of improving results and continued momentum. Our ROA climbed to 0.90% in the second quarter, more than three times where it was a year ago. Just as noteworthy, NPAs declined by 37% during the quarter and our allowance to NPAs increased to 73%. During the quarter, we recognized a pre-tax gain related to the sale of Bearing Insurance totaling $5.9 million. We offset that gain with a provision for loan losses on a larger office CRE loan and a $0.9 settlement on a nuisance lawsuit regarding mortgage recruiting. Lastly, as discussed later in this press release, we have identified substantial earnings enhancements related to our announcement to convert the entire bank to our digital, real-time core. The total earnings impact of $6.1 million is equally centered on revenue and expense improvements and should be incrementally in place beginning in the fourth quarter of 2026. This project will afford us another year of the superior operating leverage that we have been demonstrating while putting the entire bank on the most sales focused real time core available in our industry." Division Updates The second quarter of 2026 demonstrated continued progress across the Company's strategies to meet its growth and profitability goals 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 (23% of total loans and only 188% of regulatory capital). Loan pipeline of $158 million as of June 30, 2026, up 28% from $123 million at March 31, 2026. Cost of deposits of 1.60% in the second quarter of 2026 compared to 1.79% 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 21% 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. Over $450 million of deposits have used the service, including over 80% of commercial clients. Over $70 million of new deposit relationships have resulted directly from the V1BE offering. Primis Mortgage Primis Mortgage had closed mortgage volume of $421 million in the second quarter of 2026, up 30% compared to the same quarter in 2025, in spite of significant macroeconomic headwinds in the second quarter. Construction-to-permanent loan volume was $34 million in the second quarter of 2026 versus $26 million in the same period in 2025. Pre-tax earnings related to Primis Mortgage were approximately $2.2 million for the second quarter of 2026, up substantially from earnings of $0.1 million in the second quarter of 2025. Mortgage Warehouse Mortgage warehouse lending continued to show strong growth in the second quarter of 2026. Outstanding loan balances at June 30, 2026 were $544 million, up 18% from $460 million at March 31, 2026 and up 195% from $185 million at June 30, 2025. Average loan balances were $426 million in the second quarter of 2026, up 24% from $343 million in the first quarter of 2026 and up 226% from $131 million in the second quarter of 2025. Mortgage warehouse also funded on average approximately 11% of its balance sheet with associated customer noninterest bearing deposit balances during the second quarter of 2026. Panacea Financial Panacea's growth remained strong through the second quarter of 2026 with loans outstanding of $617 million, including loans held for sale, up 11% annualized compared to March 31, 2026. Panacea sold approximately $51 million of loans in the second quarter of 2026, including $41 million of loans classified as held for sale at March 31, 2026, and had $33 million of loans classified as held for sale at June 30, 2026. Panacea loans held for investment were $583 million at June 30, 2026, up 18% annualized from $559 million at March 31, 2026. At the end of the second quarter of 2026, Panacea customer deposits totaled $169 million, up 52% from June 30, 2025. Panacea remains 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 second quarter of 2026 with approximately $1.0 billion of deposits with a cost of deposits of 3.79% compared to $1.1 billion at June 30, 2025 with a cost of 4.27%. The platform also successfully grew business accounts in 2026 with small business balances reaching $38 million at June 30, 2026, up substantially from $16 million at December 31, 2025. These customers remain sticky with approximately 74% of our digital deposits banking with Primis for at least three years. Core Consolidation Initiative In 2025, the Company announced its decision to fully convert its core bank and all divisions onto its real-time, fully digital core that had served as the backbone of its successful national deposit origination platform. Concurrent with that decision, management has been fully evaluating its products and services as well as vendors and various contracts supporting both cores. Additional earnings improvements from this evaluation are expected to begin late in 2026 and be fully implemented in early 2027. The improvements to earnings are on both the income and expense side totaling $6.1 million and are comprised of the following: $3 million in revenue improvements resulting from consolidating account types and applying best practice fee solutions across all products and services, expected to be in place by late 2026. $2.4 million in cost savings from consolidation of printing and statement services. Expected to be in place by January 2027. $0.7 million from the consolidation of contracts and other consulting services. Consolidation of these services is beginning in 4Q 2026 with the majority of the savings realized in the first quarter of 2027 and full realization expected by the end of the second quarter of 2027. In addition, we currently amortize approximately $0.8 million per quarter of capitalized costs from the initial development of the digital platform. This amortization expense is expected to end during the third quarter of 2027. Net Interest Income Net interest income in the second quarter of 2026 was $33.8 million, up 34.1%, versus $25.2 million in the second quarter of 2025. As noted above, the Company's net interest margin improved to 3.45% in the second quarter of 2026 compared to 2.86% 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 second quarter of 2026 increased three basis points and 34 basis points versus the first quarter of 2026 and second quarter of 2025, respectively. Yield on investments increased 131 basis points year-over-year largely due to the portfolio restructuring in the fourth quarter of 2025. 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 second quarter of 2026, the Company reported cost of interest-bearing deposits of 2.69% compared to 2.94% in the same quarter in 2025. Cost of funds was 2.46% in the second quarter of 2026, down 21 basis points from 2.67% in the second quarter of 2025. Noninterest Income Noninterest income was $22.0 million in the second quarter of 2026 versus $13.6 million in the first quarter of 2026 and $18.0 million in the second quarter of 2025. The second quarter of 2026 included a gain of $5.9 million from the liquidation of an insurance agency investment while the second quarter of 2025 included a $7.5 million gain on the Company's investment in Panacea Financial Holdings. Mortgage related income grew 44.3% to $11.4 million in the second quarter of 2026 compared to $7.9 million in the same quarter in 2025. In 2026, the Company restructured its bank-owned life insurance portfolio which improved noninterest income by approximately $1.2 million annually beginning late in the second quarter of 2026. The Company reported gain on sale income of $1.6 million related to the sale of Panacea loans and the guaranteed portion of SBA loans in the second quarter of 2026 compared to no similar gain on sale income in the second quarter of 2025. Approximately $237 thousand of the gain on sale income was attributable to the Core Bank in the second 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 third quarter of 2026. Noninterest Expense Noninterest expense was $38.2 million for the second quarter of 2026, compared to $31.9 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. Core operating expense burden, as defined above, was $25 million in the second quarter of 2026 versus $22 million in both the first quarter of 2026 and second quarter of 2025. As previously disclosed, the first and second quarters of 2026 include 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. The second quarter of 2026 included a number of discrete expenses including $1.1 million related to the settlement of a previously disclosed mortgage lawsuit, $0.4 million increase of loan related expenses and $0.2 million higher marketing costs. There was also approximately $0.9 million cumulatively of smaller expenses related to the Company's recent shelf filing, BOLI exchange and core conversion project. Lastly, the Company is also in the beginning stages of deploying artificial intelligence tools and agents to drive ongoing productivity improvements in order to preserve operating leverage. Loan Portfolio and Asset Quality Loans held for investment increased to $3.5 billion at June 30, 2026 compared to $3.4 billion at March 31, 2026 and $3.1 billion at June 30, 2025. Primary drivers in these levels include: Core Bank loans averaged approximately $2.0 billion in the second quarter of 2026, flat from the first quarter of 2026 Panacea Financial loans grew $24 million, or 4%, through the end of second quarter of 2026 to $583 million excluding loans held for sale at June 30, 2026. Mortgage warehouse outstandings increased significantly to $544 million, or 18%, at the end of the second quarter of 2026 compared to $460 million at March 31, 2026. Mortgage portfolio loans generated by Primis Mortgage grew to $140 million at June 30, 2026, up 15% from $122 million at March 31, 2026 and up 132% from $67 million at June 30, 2025. Loan balances associated with the consumer loan program declined to $75 million at June 30, 2026, net of fair value discounts, compared to $113 million at June 30, 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, improved to 1.45% of total assets at June 30, 2026 compared to 2.35% of total assets at March 31, 2026 and 1.90% at June 30, 2025. The Company has made significant progress reducing nonperforming assets with total nonperforming assets decreasing to $63 million at June 30, 2026 from $100 million at March 31, 2026, representing a 37% reduction in the second quarter of 2026. The Company recorded a provision for credit losses of $5.5 million for the second quarter of 2026 compared to a provision for credit losses of $1.5 million for the first quarter of 2026 and $8.3 million for the second quarter of 2025. Approximately $5.3 million of the second quarter 2026 provision was related to specific reserve additions for one nonaccrual credit. Absent this amount, improvements in specific reserve amounts largely offset provision amounts related to portfolio growth and the consumer loan program. Core net charge-offs as a percentage of average loans were 53 basis points, up 38 basis points from the same period a year ago and up 47 basis points from the first quarter of 2026. The increase in net charge-offs was largely driven by one nonaccrual loan that was resolved in the second quarter of 2026. As a percentage of loans held for investment, the allowance for credit losses was 1.33% at the end of the second quarter of 2026 compared to 1.47% at the end of the second quarter of 2025. Deposits and Funding Total deposits at June 30, 2026 were $3.4 billion, up $0.1 billion, or 3.1% when compared to the same period in 2025. Noninterest bearing demand deposits were $506 million at June 30, 2026, an increase of 5.9% compared to balances at June 30, 2025. The Company had FHLB advances totaling $300 million outstanding at June 30, 2026, up from $25 million at December 31, 2025 and compared to no advances at June 30, 2025. Taxes Tax expense for the second quarter of 2026 was $2.7 million. Included in this expense was $0.8 million of tax expense related to the Panacea Financial Holdings deconsolidation in 2025 offset by $0.8 million of benefit from the purchase of certain tax credits. The Company expects the effective tax rate to be approximately 22% for the rest of 2026. Shareholders' Equity Tangible book value per common share(1) at the end of the second quarter of 2026 was $13.72, an increase of $2.24, or 19.5%, from levels reported at June 30, 2025. Tangible common equity(1) ended the second quarter of 2026 at $340.0 million, or 7.99% of tangible assets(1). The Board of Directors declared a dividend of $0.10 per share payable on August 21, 2026 to shareholders of record on August 7, 2026. This is Primis' fifty-ninth consecutive quarterly dividend. About Primis Financial Corp. As of June 30, 2026, Primis had $4.4 billion in total assets, $3.5 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. Conference Call The Company's management will host a conference call to discuss its second quarter results on Friday, July 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/499443631. Participants may also call 1-833-461-5787, enter meeting ID 499 443 631 and ask for the Primis Financial Corp. call. A replay of the teleconference will be available for 7 days using the webcast link above. 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; core operating expense burden, 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 when discussing the financial measure or 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 second 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. 12.40 %12.02 %12.43 %(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 View original content to download multimedia:https://www.prnewswire.com/news-releases/primis-financial-corp-reports-strong-results-for-the-second-quarter-of-2026-302833482.html

Primis Financial (FRST) came out with quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -43.90%. A quarter ago, it was expected that this holding company for Sonabank would post earnings of $0.32 per share when it actually produced earnings of $0.33, delivering a surprise of +3.13%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Primis Financial, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $55.79 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 13.32%. This compares to year-ago revenues of $43.52 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Primis Financial shares have added about 13.2% since the beginning of the year versus the S&P 500's gain of 9.6%. While Primis Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Primis Financial was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.45 on $50.83 million in revenues for the coming quarter and $1.59 on $194.22 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. SoFi Technologies, Inc. (SOFI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29. This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +37.5%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. SoFi Technologies, Inc.'s revenues are expected to be $1.11 billion, up 29.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Primis Financial Corp. (FRST) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Primis Financial (FRST) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This holding company for Sonabank is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of +272.7%. Revenues are expected to be $49.23 million, up 13.1% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Primis Financial, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.70%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Primis Financial will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Primis Financial would post earnings of $0.32 per share when it actually produced earnings of $0.33, delivering a surprise of +3.13%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Primis Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Moody's (MCO), another stock in the Zacks Financial - Miscellaneous Services industry, is expected to report earnings per share of $4.23 for the quarter ended June 2026. This estimate points to a year-over-year change of +18.8%. Revenues for the quarter are expected to be $2.09 billion, up 10% from the year-ago quarter. The consensus EPS estimate for Moody's has been revised 0.1% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.36%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Moody's will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Primis Financial Corp. (FRST) : Free Stock Analysis Report Moody's Corporation (MCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Primis reported Q1 net income of $7.3 million ($0.30), down from $22.6 million a year ago largely due to a prior‑year one‑time deconsolidation gain, but on an operating basis earnings rose 126% to $0.33 per share and net interest margin expanded to 3.43%. Balance‑sheet growth and mortgage businesses drove performance: loans rose about 11.7% year‑over‑year to $3.4 billion, deposits were up just over 8%, the mortgage warehouse business reached roughly $460 million with potential to double in 12–18 months, and retail mortgage closed‑volume run‑rates are around $1.8–2.0 billion. Management expects further margin expansion (targeting high 3.4%–3.5%), kept core expenses near $22 million while recording a $1.5 million credit provision, is deploying AI to boost efficiency, and says the company is on track for its 2026 profitability goal and longer‑term return targets (around 12.5%+ and roughly 15% on tangible common equity). Interested in Primis Financial Corp.? Here are five stocks we like better. Primis Financial (NASDAQ:FRST) reported first-quarter 2026 net income of $7.3 million, or $0.30 per share, compared with $22.6 million, or $0.92 per share, in the year-ago quarter. President and CEO Dennis Zember told investors that the year-over-year comparison was affected by items that distorted the prior-year period, including a “substantial gain on the deconsolidation of Panacea” in the first quarter of 2025. On an operating basis, Zember said the company earned $0.33 per share in the first quarter of 2026, excluding “a small tax adjustment related to 2025 results.” He said operating earnings were up 126% versus $0.14 per share in the first quarter of 2025, and operating return on assets improved to 84 basis points from 40 basis points in the year-ago period. → Pipelines and Automation: 2 Energy Plays Built for Any Oil Price Net interest income rose to approximately $32 million from $26 million a year ago, according to EVP and CFO Matthew Switzer. The net interest margin increased to 3.43% in the quarter, up from 3.28% in the fourth quarter and 3.15% a year earlier. Zember attributed the improvement to a securities restructuring and changes in the mix of earning assets. Switzer said the company expects “further margin expansion as we progress through 2026,” citing several tailwinds: The redemption of $27 million of subordinate debt at the end of January (only partially reflected in first-quarter results). Roughly $400 million of loans repricing in the second half of 2026 and early 2027, with a weighted-average yield of 4.81%. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank During the Q&A, Switzer said he expects net interest margin to “inch up” over time, though he added he would not expect the margin to reach 3.6%. “Would we hit high 3.4%s-3.5% as we go through the year? Most likely,” he said. Funding costs were stable. Switzer said core bank cost of deposits was 159 basis points for the quarter, flat from the fourth quarter, while the cost of total deposits was 223 basis points, down three basis points from the prior quarter. He emphasized that growing non-interest-bearing deposits is a key strategy to drive funding costs lower. → 3 Stocks Poised to Grow on European Rearmament Spending Switzer said gross loans held for investment increased about 14% annualized from Dec. 31 to March 31, led by growth in Panacea and mortgage warehouse lending. Zember said loans ended the quarter at $3.4 billion, up 11.7% from the first quarter of 2025, excluding approximately $40 million that was moved into loans held for sale related to a floor agreement with Panacea. On the deposit side, Zember highlighted growth “just better than 8%” year over year, with “very little” coming from the digital platform, which he described as steady at about $1 billion. He also pointed to faster growth in non-interest-bearing checking accounts, which increased to $541 million, nearly 19% higher than the first quarter of 2025. Checking accounts represented 15.9% of total deposits versus 14.2% a year ago. Zember said the company achieved that growth without “ever once” feeling pressure “to be more aggressive on rate,” crediting technology, service, and a focus on commercial deposits. Zember said mortgage warehouse lending “has fully replaced Life Premium Finance” and ended the quarter with about $460 million outstanding, briefly exceeding $500 million near the end of March. He said the business is producing “impressive yields and margins” and “efficiency ratios in the 20s,” and he believes the company could double the mortgage warehouse business over the next 12 to 18 months. Retail mortgage performance also improved. Zember said the mortgage group’s pre-tax income grew to $2.1 million in the first quarter, up from $766,000 a year earlier, and that earnings increased to 57 basis points on closed volume from 46 basis points in the year-ago quarter. Switzer reported mortgage revenue of $10.8 million in the first quarter, up from $10 million in the fourth quarter, and said revenue “would have been even better” absent market volatility late in the quarter. He added that retail mortgage production was 122% higher year over year, and that the company originated $26 million of construction-to-permanent loans versus $4 million in the first quarter of 2025. Asked about near-term production, Switzer said the company entered the year with expectations that implied a $1.6 billion to $1.7 billion mortgage platform based on momentum in the fourth quarter, but that recent performance suggested a higher run-rate. “Through the first quarter, felt like it was a little higher, maybe $1.8 billion, maybe even $2 billion,” he said, later adding that April was “very strong” and that the company was “still somewhere in the $1.8 billion range on closed volume.” Zember said a fair value adjustment tied to late-quarter volatility related to “Middle East” events reduced profitability by roughly 5 to 6 basis points. In response to a question about concentration, Zember said the company does not want to become primarily a mortgage company. “It really probably shouldn’t be more than 20% of our bottom line,” he said, adding that management wants mortgage and other specialty lines to remain complements to the core bank over time. Primis recorded a $1.5 million provision for credit losses in the quarter, which Switzer said was partly driven by loan growth. He said about $0.7 million was related to specific reserving on impaired loans, and another $0.4 million was tied to activity in the consumer portfolio. Core net charge-offs were six basis points. On non-performing assets, Zember discussed two commercial real estate office credits, saying both had “pretty good quarters on new leases” and that trends were “more positive,” helped by improved leasing activity and cap rates that were “improving.” On expenses, Switzer said core expenses were $22 million in the first quarter versus $20.8 million a year ago when excluding mortgage and Panacea volatility and non-recurring items. He said that absent higher occupancy expense from a recent sale-leaseback transaction, core expenses would have been down year over year. For 2026, he said management expects the core expense base to remain “in that kind of $22 million-$23 million range.” Zember emphasized operating leverage, saying core revenue increased about 34% over the past year while reported operating expenses increased about 4%. Both executives also highlighted the company’s focus on deploying artificial intelligence to drive efficiencies. Switzer said Primis has canvassed the bank for opportunities to reduce repetitive tasks and has identified “hundreds of hours of opportunity,” adding that tools within existing products such as Microsoft Copilot could enable efficiencies “without expensive consultants.” Zember framed AI as a catalyst comparable to an M&A opportunity, saying the goal is to improve operating results, sales efficiency, customer experience, and fraud prevention. Looking ahead, Switzer said the quarter was “in line with our expectations” and that Primis believes it remains on track to reach its profitability goal in 2026. Zember discussed longer-term targets beyond a 1% ROA objective, suggesting the company should “be 12.5% or better” and that return on tangible common equity could “get near 15%,” supported by scaling mortgage, mortgage warehouse, and efficiency initiatives. Primis Financial Corporation is a bank holding company headquartered in Waycross, Georgia, operating through its wholly owned subsidiary, Primis Bank. The company offers a full suite of commercial and retail banking services tailored to meet the needs of individuals, small businesses, and agricultural clients across its service area. Primis Bank focuses on building relationships within the communities it serves, positioning itself as a local financial partner for deposit-taking, lending, and treasury management solutions. Primis Bank maintains a network of branch offices throughout southeastern Georgia, serving a combination of rural and suburban markets. The article "Primis Financial Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Earnings: $7.3 million or $0.30 per share; operating earnings of $0.33 per share, up 126% from $0.14 in the same quarter of '25. Net Interest Margin: Increased to 3.43% from 3.15% in the same quarter of '25. Loans: Ended at $3.4 billion, 11.7% growth compared to the same quarter in '26. Deposit Growth: Over 8% growth, with non-interest-bearing checking accounts growing to $541 million, up almost 19% from '25. Net Interest Income: Approximately $32 million, up from $26 million a year ago. Non-Interest Income: $13.6 million in the quarter, up from $12.8 million in the fourth quarter. Mortgage Revenue: $10.8 million in Q1, with retail mortgage production 122% higher than the first quarter of '25. Operating Expenses: Core expenses were $22 million in Q1, compared to $20.8 million a year ago. Provision for Loan Losses: $1.5 million, with core net charge-offs at 6 basis points. Warning! GuruFocus has detected 4 Warning Signs with BGIN. Is FRST fairly valued? Test your thesis with our free DCF calculator. Release Date: April 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Primis Financial Corp (NASDAQ:FRST) reported a significant increase in operating earnings, up 126% from the same quarter last year, reaching $0.33 per share. The company's net interest margin improved to 3.43% in the first quarter, benefiting from securities restructuring and a favorable mix of earning assets. Loan growth was strong, with loans ending at $3.4 billion, marking an 11.7% increase compared to the same quarter last year. Deposit growth was robust, with non-interest-bearing checking accounts growing by almost 19% year-over-year. The mortgage warehouse business has been well-received, with outstanding balances reaching $460 million and potential for further growth. Earnings per share decreased from $0.92 in the same quarter last year to $0.30, reflecting a decline in overall earnings. The first quarter of the previous year included a substantial gain from the deconsolidation of Panacea, which was not present this year. The company faces challenges in maintaining its net interest margin amidst competitive pressures and potential rate changes. There are concerns about the sustainability of growth in the mortgage business, which could become a larger portion of the company's bottom line than desired. Digital deposits, while a growth area, are more expensive than traditional deposits, posing a challenge in managing funding costs. Q: What are your expectations for mortgage production in the near term, and were there any unusual expenses in Q1 2026? A: We expect mortgage production to be around $1.8 billion this year, with profitability potentially trending over 60 basis points. There were no unusual expenses in Q1 2026. (Dennis Zember, CEO) Q: Can you provide an outlook on net interest margin and how you plan to fund growth? A: We expect some margin expansion due to debt payoff and loan repricing. We anticipate the margin to inch up, potentially reaching high 3.4% to 3.5% as the year progresses. (Matthew Switzer, CFO) Q: What is the status of the larger non-performing assets, and when can we expect resolutions? A: We have two commercial real estate deals that are trending positively with new leases and improving cap rates. They are current, and we are optimistic about their resolution. (Dennis Zember, CEO) Q: How do you view the competitiveness of digital deposits compared to brokered funds? A: While digital deposits are more expensive, we differentiate by offering community banker-like services to digital customers, which helps retain them despite higher costs. (Dennis Zember, CEO) Q: What are your aspirations for ROA beyond the 1% target by year-end? A: We aim for an ROA of 1.25% or better, with a focus on achieving a 15% ROTCE to control our future strategic options. (Dennis Zember, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.