Primis Financial (FRST) investor relations material

Executive summary

• Operating net income for Q1 2026 rose to $8.1 million ($0.33 per share), up 126% year-over-year, while reported net income was $7.3 million ($0.30 per share), down from a prior-year nonrecurring gain.

• Operating net income surged 242% quarter-over-quarter, with strong performance across core bank, mortgage warehouse, and Panacea divisions.

• Tangible book value per share increased 18% year-over-year to $13.47.

• Quarterly cash dividend of $0.10 per share declared, marking the 58th consecutive quarterly dividend.

• Core bank remains profitable and fully core-funded, focusing on noninterest-bearing deposits and technology-driven customer engagement.

Financial highlights

• Net interest income rose to $32.1 million, up 22% year-over-year, with net interest margin expanding to 3.43%.

• Loans ended at $3.4 billion, up 11.7% year-over-year, and deposits grew over 8%, with noninterest-bearing checking accounts up nearly 19%.

• Mortgage-related income surged 92% to $11 million, and mortgage warehouse balances rose 300% year-over-year to $460 million.

• Core revenue for the trailing year reached $45.6 million, up 34%, while operating expenses rose only 4%.

• Total assets reached $4.3 billion, up 15% year-over-year.

Outlook and guidance

• Management targets a 1% ROAA for 2026, with aspirations for 1.25% ROAA and ROTCE near 15% over time.

• Expectation for further net interest margin expansion through 2026, targeting high 3.4%-3.5% range.

• Mortgage production expected to reach $1.8 billion for the year, with profitability trending above 60 basis points on closed volume.

• Noninterest income anticipated to improve by $1.2 million annually from bank-owned life insurance restructuring starting late Q2 2026.

• Effective tax rate expected to remain around 21.8% for the remainder of 2026.