Primis Financial Corp. Reports $61.4 Million Net Income for 2025, Significant Turnaround from Previous Year

Primis Financial Corp. (NASDAQ: FRST) reported a net income available to common shareholders of $61.4 million, or $2.49 per basic and diluted share, for the year ended December 31, 2025, a significant turnaround from the net loss of $16.2 million, or $0.66 per share, reported for the year ended December 31, 2024. This $77.6 million improvement was primarily driven by a $69.2 million increase in noninterest income and a $38.3 million decrease in the provision for credit losses. The company's net interest income also increased by $7.2 million. As of December 31, 2025, Primis had total assets of $4.0 billion, total loans held for investment of $3.3 billion, and total deposits of $3.4 billion.

The increase in noninterest income was largely attributed to a $50.6 million gain on a sale-leaseback transaction involving 18 retail branch properties and a $32.3 million gain on the company's investment in Panacea Financial Holdings, Inc. (PFH). Mortgage banking income also contributed, increasing by $8.5 million. These gains were partially offset by a $14.8 million loss on the sale of investment securities as part of a portfolio restructuring and a $3.0 million decline in Consumer Program derivative income. The decrease in the provision for credit losses was primarily due to improved performance in the Consumer Program loan portfolio. Noninterest expenses increased by $13.3 million, mainly due to higher personnel costs related to growth in Primis Mortgage Company (PMC), Mortgage Warehouse lending, and the Panacea Financial Division.

Strategic developments during the year included the deconsolidation of PFH on March 31, 2025, resulting in a $25 million gain, and the subsequent sale of a portion of Primis' retained ownership in PFH common shares in June 2025, generating proceeds of $22 million and an additional gain of $7 million. The company also continued to focus on growing its core community bank, with deposits per branch (excluding digital platform deposits) reaching $100 million as of December 31, 2025, compared to $69 million as of December 31, 2021. The Panacea Financial Division ended 2025 with $544 million in loans and $128 million in deposits, while Mortgage Warehouse lending had approximately $1.2 billion in approved lines and $318 million in outstanding loan balances.

Key operational developments included the growth of the digital banking platform, with deposits reaching $992 million and an average balance of $48,000 per customer. As of December 31, 2025, 82% of those customers had been with the Bank’s digital platform for more than 2 years. Primis Mortgage Company funded approximately $1.2 billion in loans during 2025, up from approximately $800 million in 2024. The company's employee headcount was 593 as of December 31, 2025, with approximately 63% being female and 23% being minorities. The company's allowance for credit losses to total loans was 1.40% as of December 31, 2025, compared to 1.86% as of December 31, 2024.

Looking ahead, Primis intends to continue its focus on building a new, innovative banking experience for consumers and small to medium-sized businesses. The company aims to grow its business, expand its customer base, and improve profitability by maintaining a strong and efficient community bank, supplementing core growth with high-return business lines, and perfecting enhanced digital offerings. However, the company also reported a material weakness in its internal control over financial reporting related to a lack of proper restrictions and review controls for deposit account processing in the digital bank platform. Management is implementing remediation plans to address this weakness.