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1. Company Snapshot

1.a. Company Description

Primis Financial Corp.operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States.Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits.


The company also offers commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans.It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services.In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking.


As of December 31, 2021, it operated forty full-service branches in Virginia and Maryland.The company was formerly known as Southern National Bancorp of Virginia, Inc.and changed its name to Primis Financial Corp.


Primis Financial Corp.was founded in 2004 and is based in McLean, Virginia.

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1.b. Last Insights on FRST

Primis Financial Corp.'s recent performance was negatively impacted by a series of legal and regulatory issues. The company's failure to timely file its Form 10-K for the period ending December 31, 2024, led to a Nasdaq notice regarding delayed filing, which may result in delisting. Additionally, multiple law firms have commenced investigations into potential securities law violations, further exacerbating the company's challenges.

1.c. Company Highlights

2. Primis Financial Corp's Q3 Earnings: A Strong Upswing in Profitability

Primis Financial Corp reported a net earnings of $6.8 million, or $0.28 per share, for the third quarter of 2025, significantly surpassing the same quarter last year when it reported a core income of $2 million, or $0.08 per share. The company's return on assets (ROA) and return on tangible common equity (ROTCE) improved to 70 basis points and 9.45%, respectively. Notably, when adjusted for certain non-recurring items, the core ROA was approximately 90 basis points, aligning with the company's target of achieving a 1% ROA. The net interest margin (NIM) expanded to 3.18%, up from 2.86% in the previous quarter and 2.97% in the year-ago period, driven by the replacement of lower-yielding loans with new ones at significantly higher yields.

Publication Date: Oct -27

📋 Highlights
  • Net Earnings Surge: Q3 net earnings reached $6.8M ($0.28/share) vs $2M ($0.08/share) in Q3 2024.
  • Adjusted ROA Progress: Core ROA improved to 90 bps (vs 70 bps reported), nearing 1% target with $11M pretax earnings.
  • Loan Yield Expansion: Loan replacement added 6–8 bps ROA, with $1.6M quarterly uplift from higher-yield assets (+200 bps).
  • Net Interest Margin Growth: NIM rose to 3.18% in Q3, up from 2.86% in Q2 and 2.97% in Q3 2024.
  • Deposit Composition Shift: Checking accounts grew 16% (vs 5% industry), supporting 20% non-interest-bearing deposit goal.

Loan Growth and Portfolio Rebalancing

The company's gross loans held for investment grew by almost 9% on an annualized basis from June 30 to September 30, with the inclusion of Panacea loans reclassified to held for sale, the growth would have been approximately 15%. This was primarily driven by growth in Panacea and mortgage warehouse segments. The management expects continued growth, particularly in the Panacea segment, and is optimistic about achieving its long-term goals.

Deposit Mix and Cost Strategy

Primis Financial Corp is focused on optimizing its deposit mix, aiming to increase non-interest-bearing deposits to 20% of total deposits in the medium term. The company has seen notable success in growing checking accounts, which rose by 16% compared to a 5% industry average. According to Dennis Zember, the company's long-term value is centered on the deposit side, and achieving the right deposit mix will be crucial for driving margins.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of 0.7 and a Dividend Yield of 3.74%, Primis Financial Corp appears to be reasonably valued. Analysts estimate revenue growth of 14.0% for next year. Although the actual EPS of $0.28 fell short of estimates at $0.32, the company's improving profitability and growth prospects are positive indicators. The management's guidance on achieving a 1% ROA and continued growth in key segments supports a favorable outlook.

3. NewsRoom

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Primis Financial Corp. (FRST) Q3 2025 Earnings Call Transcript

Oct -24

Source: seekingalpha.com

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Primis Financial (FRST) Misses Q3 Earnings Estimates

Oct -23

Source: zacks.com

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Primis Financial Corp. Reports Earnings per Share for the Third Quarter of 2025

Oct -23

Source: prnewswire.com

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Primis Financial Corp. Announces Date for Third Quarter 2025 Earnings Release and Conference Call

Oct -06

Source: prnewswire.com

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Primis Financial Corp. (FRST) Q2 2025 Earnings Call Transcript

Jul -25

Source: seekingalpha.com

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Primis Financial Corp. Reports Earnings per Share for the Second Quarter of 2025

Jul -24

Source: prnewswire.com

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Primis Financial Corp. Announces Date for Second Quarter 2025 Earnings Release and Conference Call

Jul -08

Source: prnewswire.com

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Primis Financial Corp. Announces Signed Term Sheet to Sell a Portion of its Shares of Panacea Financial Holdings, Inc.

Jun -12

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.78%)

6. Segments

Primis Bank

Expected Growth: 9.9%

Primis Bank's 9.9% growth is driven by strategic expansion into underserved markets, increased digital banking adoption, and a focus on commercial lending. Additionally, the bank's strong risk management practices and efficient cost structure have enabled it to maintain a high net interest margin, further contributing to its growth.

Primis Mortgage

Expected Growth: 7.43%

Primis Mortgage's 7.43% growth is driven by increasing demand for mortgage refinancing, low interest rates, and a strong housing market. Additionally, the company's expansion into new markets, improved operational efficiency, and strategic partnerships have contributed to its growth. Furthermore, the company's focus on digital transformation and customer experience has enhanced its competitiveness in the market.

7. Detailed Products

Payment Processing

Primis Financial Corp. offers payment processing services that enable businesses to accept and process payments securely and efficiently.

Merchant Services

Primis Financial Corp. provides merchant services that enable businesses to manage their payment processing, including credit card processing, debit card processing, and electronic check processing.

Point of Sale (POS) Solutions

Primis Financial Corp. offers POS solutions that provide businesses with a comprehensive payment processing system, including hardware and software solutions.

E-Commerce Solutions

Primis Financial Corp. provides e-commerce solutions that enable businesses to accept online payments securely and efficiently.

Gift and Loyalty Programs

Primis Financial Corp. offers gift and loyalty programs that enable businesses to reward customers and increase customer loyalty.

Mobile Payment Solutions

Primis Financial Corp. provides mobile payment solutions that enable businesses to accept mobile payments securely and efficiently.

8. Primis Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Primis Financial Corp. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and customer loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Primis Financial Corp.'s customers have significant bargaining power due to the availability of alternative financial services providers. The company's pricing strategy and customer retention efforts are crucial in maintaining a competitive edge.

Bargaining Power Of Suppliers

Primis Financial Corp. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong procurement practices and long-term contracts also help to mitigate supplier risks.

Threat Of New Entrants

While there are barriers to entry in the financial services industry, new entrants can still disrupt the market with innovative products and services. Primis Financial Corp. must continue to invest in digital transformation and innovation to stay competitive.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players and new entrants vying for market share. Primis Financial Corp. must focus on differentiating its products and services, improving operational efficiency, and investing in digital capabilities to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.27%
Debt Cost 7.84%
Equity Weight 72.73%
Equity Cost 7.84%
WACC 7.84%
Leverage 37.49%

11. Quality Control: Primis Financial Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Home Bancorp

A-Score: 6.5/10

Value: 7.3

Growth: 5.9

Quality: 6.2

Yield: 4.0

Momentum: 8.5

Volatility: 7.3

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Ohio Valley Banc

A-Score: 6.3/10

Value: 4.4

Growth: 4.7

Quality: 6.8

Yield: 6.0

Momentum: 9.5

Volatility: 6.3

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ChoiceOne Financial Services

A-Score: 6.1/10

Value: 5.5

Growth: 7.7

Quality: 5.4

Yield: 8.0

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First Mid Bancshares

A-Score: 6.0/10

Value: 6.8

Growth: 5.8

Quality: 5.2

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

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Orange County Bancorp

A-Score: 5.3/10

Value: 6.5

Growth: 6.3

Quality: 7.1

Yield: 4.0

Momentum: 2.5

Volatility: 5.3

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Primis Financial

A-Score: 5.0/10

Value: 5.0

Growth: 3.9

Quality: 4.3

Yield: 8.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.67$

Current Price

11.67$

Potential

-0.00%

Expected Cash-Flows