Primis Financial Corp. Reports Strong Results for the First Quarter of 2026

View all news 04/23/2026 Declares Quarterly Cash Dividend of $0.10 Per Share , /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. Multimedia Files: View all news