Primis Financial Corp. Reports $22.6 Million Net Income in Q1 2025

Primis Financial Corp. reported significant financial performance improvements for the first quarter of 2025, with net income attributable to common stockholders reaching $22.6 million, or $0.92 per share, compared to $2.5 million, or $0.10 per share, in the same period last year. This increase was primarily driven by a $24.6 million gain from the deconsolidation of Panacea Financial Holdings, Inc. (PFH), which was completed on March 31, 2025. Total assets remained stable at approximately $3.7 billion, reflecting a slight increase from $3.69 billion at the end of 2024.

The company’s total loans held for investment increased by $165.6 million, or 5.4%, to $3.0 billion as of March 31, 2025, largely due to growth in the Panacea division and the mortgage warehouse lending. Notably, the Consumer Program loans were transferred back to the held-for-investment category, contributing to this growth. Total deposits were reported at $3.2 billion, consistent with the previous quarter, although the composition shifted slightly with an increase in lower-cost demand deposits.

Operationally, Primis Financial has made strategic moves to enhance its market position. The company’s mortgage warehouse segment saw outstanding loan balances rise by 80% to $115 million, while committed facilities increased by 40% to $487 million. The Panacea Financial division also reported a 9% increase in outstanding loan balances, reaching $473.8 million. Additionally, the company has focused on expanding its retail mortgage business, achieving a 27% increase in locked loan volume compared to the previous quarter.

The filing also highlighted a decrease in the allowance for credit losses, which fell to $44.0 million from $53.7 million at the end of 2024. This decline was attributed to $11.3 million in net charge-offs during the quarter, primarily from the Consumer Program portfolio, which has been under scrutiny for credit weaknesses. The allowance for credit losses as a percentage of total loans decreased to 1.45% from 1.86%, indicating improved credit quality in the remaining loan portfolio.

Looking ahead, Primis Financial Corp. aims to continue its growth trajectory by leveraging its strategic initiatives and enhancing operational efficiencies. The company is actively working to consolidate its core operational systems, which is expected to yield significant cost savings in the future. Management remains optimistic about the potential for further growth in both the mortgage and banking segments, despite the challenges posed by current economic conditions.