Primis Financial (FRST) investor relations material

Executive summary

• Net income for Q2 2026 was $9.4 million ($0.38 per share), up from $2.4 million ($0.10 per share) in Q2 2025, with pre-tax pre-provision operating net income of $11.7 million, up from $4.07 million year-over-year.

• ROAA improved to 0.90% in Q2 2026 from 0.26% a year ago; tangible book value per share increased to $13.72 from $11.48.

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

• Digital banking platform deposits reached $1.0 billion, supporting national strategies and reducing reliance on core branch funding.

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

Financial highlights

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

• Noninterest income was $22.0 million, up from $18.0 million in Q2 2025, including a $5.9 million gain from the sale of Bearing Insurance.

• Noninterest expense increased to $38.2 million from $31.9 million year-over-year, with core operating expense burden at $25 million.

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

• Total assets reached $4.4 billion as of June 30, 2026.

Outlook and guidance

• Management expects $6.1 million in incremental earnings from digital core conversion and AI initiatives, with benefits split between revenue and expense improvements, starting in Q4 2026.

• 2026 estimates are considered achievable, targeting a 1.0% ROAA for the year.

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

• Continued focus on growing earning assets, noninterest deposits, and mortgage production.

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