Primis Financial (FRST) Q4 2025 earnings summary

Executive summary

• Reported Q4 2025 net income of $30 million ($1.20 per share), reversing a prior-year loss, with nearly 3% ROA, driven by a substantial sale-leaseback gain and broad-based business line growth.

• Tangible book value per share rose 28% year-over-year to $13.34, with capital and asset quality metrics improving.

• All business lines contributed, including strong results from mortgage warehouse, Primis Mortgage, and Panacea Financial.

• Declared a quarterly cash dividend of $0.10 per share, marking the 57th consecutive quarterly dividend.

• Significant improvements in margin, deposit growth, and operating leverage position for strong momentum into 2026.

Financial highlights

• Net interest margin increased to 3.28% in Q4 2025 from 2.90% a year ago, with potential to reach 3.5% as restructuring benefits are realized.

• Net interest income for Q4 was $31 million, up 18% year-over-year.

• Noninterest income surged to $50 million in Q4 2025, driven by a $51 million sale-leaseback gain, offset by a $15 million investment portfolio loss.

• Total assets grew 10% year-over-year to $4.05 billion; total loans held for investment at $3.3 billion; total deposits at $3.4 billion.

• Non-interest-bearing deposits increased to 16.3% of total deposits at year-end, up from 12%-13% mid-2024.

Outlook and guidance

• Management targets a sustainable 1% ROA for full-year 2026, with expectations to exceed this in the second half.

• Quarterly core operating expense burden of $23–$24 million is targeted for 2026, supporting operating leverage.

• Mortgage warehouse balances expected to average $500 million in 2026, peaking above $600 million in summer.

• Core bank loan growth projected at 5%-7%, with Panacea and Warehouse divisions contributing additional growth.

• Anticipated improvement in noninterest income from bank-owned life insurance portfolio restructuring starting late Q2 2026.