Primis Financial (FRST) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income was $8.4 million ($0.34 per share), up from $3.4 million in Q2 2024, driven by a $7.5 million pre-tax gain from Panacea Financial Holdings share sale and strong mortgage growth.

• Six-month net income reached $31.1 million ($1.26 per share), boosted by a $24.6 million gain from PFH deconsolidation.

• Tangible book value per share rose to $11.72, with capital ratios TCE/TA at 7.63% and CET1 at 9.27%.

• Core bank remains 100% core funded, with no brokered deposits, and focuses on prime quality assets.

• Mortgage loan closings rose 52% year-over-year to $323 million, with significant growth in construction-to-permanent products.

Financial highlights

• Total assets reached $3.88 billion, loans HFI at $3.13 billion, and deposits at $3.38 billion as of June 30, 2025.

• Net interest income for Q2 2025 was $25.5 million, up from $24.9 million in Q2 2024.

• Core net interest margin improved to 3.15% in Q2 2025, up from 2.80% a year ago.

• Noninterest income was $18.0 million in Q2 2025, including a $7.4 million gain from Panacea share sales.

• Book value per share rose to $15.52, and tangible book value per share to $11.72.

Outlook and guidance

• Management expects Q3 2025 expense reductions of $0.9 million, increasing to $1.5 million per quarter from Q4 2025 onward.

• Margin projected to reach 3.20% as deposit mix and costs improve.

• Pre-tax pre-provision earnings visibility is $10.5–$11 million per quarter, with further growth expected.

• Loan growth for 2025 expected in the high single digits, moderating from earlier double-digit rates.

• No material impact anticipated from recent tax law changes (OBBBA).