Highlights

  • Net income available to common shareholders rose to USD 8.4 million in Q2 2025 from USD 3.4 million in Q2 2024
  • Mortgage lending volume increased 52% year-over-year to USD 323 million in the second quarter
  • Book value per share increased to USD 15.52, with tangible book value rising 3% year-over-year

Primis Financial Corp. (NASDAQ: FRST) reported net income available to common shareholders of USD 8.4 million for the second quarter ended June 30, 2025, translating to earnings of USD 0.34 per diluted share. This marks a significant increase compared to USD 3.4 million, or USD 0.14 per share, in the same quarter of 2024. For the first half of 2025, net income rose to USD 31.1 million or USD 1.26 per share, compared to USD 5.9 million or USD 0.24 per share during the same period last year.

The company’s quarterly results were shaped by both recurring and non-recurring events. A partial sale of Primis’ stake in Panacea Financial Holdings yielded USD 22.1 million in proceeds and a pre-tax gain of USD 7.5 million. Adjusting for one-time items and the PFH transaction, management estimated run-rate pre-tax pre-provision earnings of USD 8.4 million for the quarter.

Primis Mortgage reported USD 323 million in loan closings during the quarter, a 52% increase from the prior-year period. However, earnings from this segment were impacted by a USD 1.2 million cost tied to support for recently added production teams. Mortgage warehouse lending balances climbed to USD 185 million by quarter-end, up from USD 64 million a year earlier, while committed facilities rose to USD 804 million.

Net interest income declined slightly to USD 25.5 million due to final write-offs in the consumer loan program but rose to USD 27.5 million when excluding these reversals. The adjusted net interest margin improved to 3.15% from 2.80% in the second quarter of 2024. Loan yields on new and renewed production averaged 7.57%, compared to 7.25% a year earlier.

Noninterest income was USD 18.0 million, bolstered by mortgage banking gains of USD 7.9 million and a USD 7.4 million gain from PFH share sales and revaluation. On the expense side, noninterest expense totaled USD 31.9 million, with several cost items identified as non-recurring. Management expects quarterly expenses to decline beginning in Q3 2025.

The company’s loan portfolio totaled USD 3.13 billion at quarter-end, with Panacea loans growing 34% year-over-year to USD 505 million. Nonperforming loans remained low at 0.26% of total loans. Deposits remained stable, while noninterest-bearing demand deposits grew 18% annualized since December 2024.

Book value per common share rose to USD 15.52, while tangible book value reached USD 11.72. The board declared a quarterly cash dividend of USD 0.10 per share, payable August 22, 2025.