Primis Financial Corp. Reports Strong Q1 2025 Results, Driven by Strategic Initiatives and Operational Efficiency
In a recent filing with the Securities and Exchange Commission (SEC), Primis Financial Corp. (Primis) released its Form 10-Q report for the first quarter of 2025, showcasing significant financial gains and robust business performance across various segments. According to the report, Primis achieved a net income of $22.6 million, driven primarily by a $24.6 million gain on the deconsolidation of Panacea Financial Holdings (PFH).
The company’s net income per share stood at $0.92 basic and diluted, representing a substantial increase from $0.10 basic and diluted earnings per share for the same period in 2024. This impressive growth can be attributed to Primis’s strategic initiatives and operational efficiency. As stated in the 10-Q report filed with the SEC, "The increase in net income was primarily driven by the gain on deconsolidation of PFH."
Financial Highlights
A closer look at Primis’s financial performance reveals several key highlights:
- Net interest income increased to $26.4 million, up $1.1 million from the first quarter of 2024, primarily due to a $3.7 million decline in interest expense.
- Noninterest income surged 214% to $32.3 million, driven largely by the gain on deconsolidation of PFH.
- Noninterest expense stood at $32.5 million, up $5.0 million from the same period in 2024, driven by personnel costs, professional fees, and data processing costs.
Business Highlights
Primis’s business performance across various segments also showcased significant growth and progress:
- The core community bank’s loan portfolio remained stable during the traditionally slow first quarter, with $24 million in loan closings in March 2025 and a loan pipeline of $228 million as of March 31, 2025, compared to $119 million at the end of 2024.
- The mortgage warehouse business saw outstanding loan balances increase by 80% to $115 million as of March 31, 2025, with committed facilities rising by 40% to $487 million.
- The Panacea Financial Division experienced a 9% increase in outstanding loan balances, reaching $473.8 million by the end of the first quarter of 2025, with deposits growing by 2% to $94 million.
Operational Strategy and Future Outlook
Primis is focused on growing earning assets and achieving higher production and profitability in its retail mortgage business following the sale of its Life Premium Finance division. The company plans to consolidate its core operational systems to achieve substantial cost savings, with expectations of impacting noninterest expenses by early to mid-2026.
As stated in the 10-Q report, "We believe that our strategic initiatives and operational efficiency will continue to drive growth and profitability for the company." The company’s loan portfolio composition as of March 31, 2025, primarily consisted of real estate loans (65.1%), commercial loans (22.9%), and consumer loans (11.7%).
The deconsolidation of Panacea Financial Holdings, Inc. resulted in a $24.6 million gain for Primis, with PFH continuing to originate loans in partnership with the Panacea Division of the Bank. The company’s retail mortgage activities also showed significant growth, with Primis Mortgage earning $0.8 million pre-tax from retail mortgage activities in Q1 2025, and locked loan volume increasing by 27% from the previous quarter.
The information provided is based on Primis Financial Corp.’s Form 10-Q report filed with the SEC on May 13, 2025. The report provides a comprehensive overview of the company’s financial performance and business highlights for the first quarter of 2025.
Source: Primis Financial Corp. SEC Filing: 10-Q – May. 13, 2025
