Primis Financial (FRST) investor relations material

Executive summary

• Net income for Q2 2026 was $9.43 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, and ROAA improving to 0.90% from 0.26% year-over-year.

• Revenue and net interest income grew strongly, with core revenue surpassing $50 million and net interest income reaching $33.8 million, up from $25.2 million a year ago.

• All business segments contributed to results, with notable growth in Mortgage Warehouse, Panacea Financial, and digital banking deposits reaching $1.0 billion.

• Tangible book value per share increased to $13.72, up over 19% year-over-year.

• Stability in operating results, improved credit quality, and a quarterly dividend of $0.10 per share were highlighted.

Financial highlights

• Net interest margin was 3.45% in Q2 2026, up from 2.86% a year ago.

• Noninterest income was $22 million, up from $18 million a year ago, 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 $4.4 billion as of June 30, 2026.

• Noninterest expense increased to $38.2 million, with core operating expense burden at $25 million.

Outlook and guidance

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

• Core consolidation and digital initiatives are expected to deliver $7 million pre-tax earnings improvements in 2027, or $0.22 per diluted share.

• Noninterest expense burden (excluding mortgage and Panacea) expected to return to $22–$22.5 million in Q3 2026.

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

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