FRST · Primis Financial Corp.

Primis Financial Corp. delivered strong Q1 2026 results with operating net income of $8.1 million, up 126% year-over-year, reflecting robust operating leverage in a seasonally slow quarter. Net interest income grew 22% to $32.1 million, supported by a 28 basis point expansion in net interest margin to 3.43%, driven by higher yielding earning assets, securities portfolio restructuring, and lower deposit costs at 2.65% for interest-bearing deposits versus 2.93% last year. Noninterest income declined to $14 million from $32 million due to a one-time $25 million gain in Q1 2025, but excluding that, it rose with mortgage-related income up 92% to $11 million. Core operating expense burden was stable at $22 million, with adjustments for sale-leaseback adding $1.4 million; excluding this, expenses fell 1%. Balance sheet expansion included 15% growth in total assets to $4.3 billion, 12% in loans HFI to $3.4 billion, and 8% in deposits to $3.4 billion, with noninterest-bearing deposits up 20%. Division highlights: Core Bank showed stable profitability with low CRE concentrations and cost of deposits down to 1.59%; Primis Mortgage volume doubled to $367 million with pre-tax earnings of $2.1 million; Mortgage Warehouse balances tripled to $460 million; Panacea loans grew 10% to $600 million including HFS. Asset quality saw nonperforming assets at 2.24% of assets, with provision for credit losses at $1.5 million. CEO Dennis J. Zember noted progress on profitability initiatives, stronger balance sheet, and expectations for robust 2026 profitability on track. The 58th consecutive $0.10 quarterly dividend underscores capital return confidence amid 18% tangible book value growth to $13.47 per share.