Primis Financial (FRST) investor relations material

Executive summary

• Net income for Q2 2026 was $9.43 million ($0.38 per share), up from $2.44 million ($0.10) in Q2 2025, with pre-tax, pre-provision operating net income of $11.7 million, and ROAA improved to 0.90% from 0.26% year-over-year.

• Revenue grew strongly, with core revenue surpassing $50 million for the first time, a 40% year-over-year increase.

• All business segments contributed to results, with notable growth in Mortgage Warehouse, Panacea Financial, and digital banking.

• Tangible book value per share increased over 19.5% year-over-year to $13.72.

• Declared a quarterly cash dividend of $0.10 per share, marking the 59th consecutive quarterly dividend.

Financial highlights

• Net interest margin was 3.45% in Q2 2026, up from 2.86% a year ago; net interest income rose to $33.8 million from $25.2 million.

• Noninterest income was $22 million, up from $18 million in Q2 2025, including a $5.9 million gain from the sale of Bearing Insurance.

• Efficiency ratio improved to 52.14% in Q2 2026 from 73.92% in Q2 2025.

• Total assets reached $4.35 billion, loans HFI $3.47 billion, and deposits $3.45 billion as of June 30, 2026.

• Mortgage-related non-interest income grew 44% year-over-year to $11.4 million.

Outlook and guidance

• Management expects continued strong operating leverage and profitability improvements from core consolidation, digital core conversion, and AI initiatives, with $6.1 million in incremental earnings expected starting Q4 2026.

• 2026 estimates target a 1.0% ROAA for the year.

• Non-interest expense (excluding mortgage and Panacea) expected to return to $22–$22.5 million in Q3.

• Effective tax rate projected at approximately 22% for the remainder of 2026.