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 gain from a sale-leaseback and improved fundamentals across all business lines.

• Tangible book value per share rose 28% year-over-year to $13.34.

• All business lines contributed to results, with strong growth in mortgage warehouse, Primis Mortgage, and Panacea Financial.

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

Financial highlights

• Net interest income for Q4 2025 was $31 million, up 18% year-over-year; net interest margin improved to 3.28% from 2.90%.

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

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

• Core operating expense burden was $28 million in Q4 2025, with nonrecurring items and higher compensation costs; adjusted core operating expense expected to normalize in 2026.

• NIB deposits increased 26% year-over-year to $554 million.

Outlook and guidance

• Targeting 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.

• Projecting average mortgage warehouse balances of $500 million in 2026, peaking above $600 million in summer.

• Mortgage production modeled at $1.6–2 billion for 2026, with pre-tax margins of 50–60 basis points.

• Flow loan sales for Panacea to begin in Q1 2026.