Primis Financial Corp. Reports Q2 2025 Net Income of $2.4 Million, Significant H1 Growth

Primis Financial Corp. reported its financial results for the second quarter and first half of 2025, revealing a net income of $2.4 million, or $0.10 per share, for the three months ended June 30, 2025. This marks a decrease from the $3.4 million, or $0.14 per share, reported in the same period of 2024. The decline in net income was attributed to a $5.1 million increase in the provision for credit losses, a $2.1 million rise in noninterest expenses, and a $1.9 million decrease in noncontrolling interest income due to the deconsolidation of Panacea Financial Holdings (PFH). However, these were partially offset by a $7.2 million increase in noninterest income, primarily from the sale of a portion of the Company’s ownership in PFH.

For the six months ended June 30, 2025, net income available to common shareholders surged to $25.1 million, or $1.01 per share, compared to $5.9 million, or $0.24 per share, for the same period in 2024. This significant increase was largely driven by a $24.6 million gain from the deconsolidation of PFH and a $7.5 million gain from the sale and fair value adjustment of the remaining PFH common shares. The Company’s net interest income also rose to $51.5 million for the first half of 2025, up from $50.1 million in the prior year, reflecting a decrease in interest expenses.

Operationally, Primis Financial Corp. saw total assets increase by 5% to $3.87 billion as of June 30, 2025, compared to $3.69 billion at the end of 2024. The growth was driven by an increase in loans held for investment, which rose to $3.13 billion, an 8% increase from $2.89 billion at year-end 2024. Total deposits also grew by $171.6 million to $3.34 billion, with notable increases in noninterest-bearing demand deposits, which rose by 9%. The Company maintained a strong capital position, with a Common Equity Tier 1 capital ratio of 8.92% as of June 30, 2025, exceeding regulatory requirements.

Strategically, Primis Financial Corp. deconsolidated PFH on March 31, 2025, which resulted in a gain of $24.6 million recognized in the financial statements. Following this deconsolidation, the Company continues to work with PFH to originate loans, retaining some and selling others. The mortgage warehouse segment showed significant growth, with outstanding loan balances increasing by 189% to $184.5 million as of June 30, 2025. Additionally, the Panacea Financial Division reported a 16% increase in outstanding loan balances, reflecting the Company’s focus on expanding its lending capabilities.

Looking ahead, Primis Financial Corp. aims to continue its growth trajectory by enhancing its mortgage and commercial lending operations while managing credit risk effectively. The Company is also focused on consolidating its operational systems to reduce costs and improve efficiency. Management remains optimistic about the potential for increased profitability as the new lending teams ramp up production and as the economic environment stabilizes.