Primis Financial 第二季淨利潤飆升至940萬美元 宣派每股0.10美元股息

EX-99.1
2
tm2621139d1_ex99-1.htm
EXHIBIT 99.1

 

 

Exhibit 99.1

 

 

Primis Financial Corp. Reports Strong Results
for the Second Quarter of 2026 

 

Declares Quarterly Cash Dividend of $0.10 Per
Share

 

For immediate release

Thursday, July 23, 2026

 

McLean, Virginia, July 23, 2026 – Primis
Financial Corp. (NASDAQ: FRST) (“Primis” or the “Company”), and its wholly-owned subsidiary, Primis Bank (the
 “Bank”), today reported net income available to common shareholders of $9.4 million, or $0.38 per diluted share, for the three
months ended June 30, 2026, compared to net income available to common shareholders of $2.4 million, or $0.10 per diluted share, for the
three months ended June 30, 2025. For the six months ended June 30, 2026, the Company reported net income available to common shareholders
of $16.7 million, or $0.68 per diluted share, compared to a net income available to common shareholders of $25.1 million, or $1.01 per
diluted share, for the six months ended June 30, 2025.

 

Q2 And Year-to-Date 2026 Accomplishments

 

The Company demonstrated strong profitability
in the second quarter and first half of 2026. Significant areas of improvement year-over-year are detailed in the chart below:

 

 
   
 As of or for the Three Months Ended June 30  
 As of or for the Six Months Ended June 30 

 
 ($ in millions except per share) 
 2026  
 2025  
 2026  
 2025 

 
 Net Income 
 $9.4  
 $2.4  
 $16.7  
 $25.1 

 
 Pre-Tax Pre-Provision Op. Net Income(1) 
  11.7  
  4.1  
  23.4  
  10.4 

 
 ROAA 
  0.90% 
  0.26% 
  0.83% 
  1.36%

 
 Pre-Tax Pre-Provision Op. ROAA(1) 
  1.12  
  0.44  
  1.15  
  0.57 

 
   
     
     
     
    

 
 Net Interest Income 
 $33.8  
 $25.2  
 $65.8  
 $51.5 

 
 Net Interest Margin 
  3.45% 
  2.86% 
  3.44% 
  3.00%

 
   
     
     
     
    

 
 Total Assets 
 $4,353  
 $3,872  
 $4,353  
 $3,872 

 
 Gross Loans HFI 
  3,466  
  3,131  
  3,466  
  3,131 

 
 Total Deposits 
  3,446  
  3,343  
  3,446  
  3,343 

 
   
     
     
     
    

 
 Average Earning Assets 
 $3,929  
 $3,532  
 $3,862  
 $3,466 

 
 Avg. NIB Deposits 
  566  
  467  
  550  
  457 

 
 Avg. NIB / Avg. Total Deposits 
  16.3% 
  14.3% 
  16.1% 
  14.3%

 
   
     
     
     
    

 
 TCE / TA(1) 
  7.99% 
  7.49% 
  7.99% 
  7.49%

 
 Tangible Book Value per Share(1) 
 $13.72  
 $11.48  
 $13.72  
 $11.48 

 

 

Commenting on the results, Dennis J. Zember, Jr.,
President and Chief Executive Officer of the Company, stated, “We delivered another quarter of improving results and continued momentum.  Our
ROA climbed to 0.90% in the second quarter, more than three times where it was a year ago.  Just as noteworthy, NPAs declined
by 37% during the quarter and our allowance to NPAs increased to 73%.  During the quarter, we recognized a pre-tax gain related
to the sale of Bearing Insurance totaling $5.9 million.  We offset that gain with a provision for loan losses on a larger office
CRE loan and a $0.9 settlement on a nuisance lawsuit regarding mortgage recruiting.

 

 1 

  

 

 

Lastly, as discussed later in this press release,
we have identified substantial earnings enhancements related to our announcement to convert the entire bank to our digital, real-time
core.  The total earnings impact of $6.1 million is equally centered on revenue and expense improvements and should be incrementally
in place beginning in the fourth quarter of 2026.  This project will afford us another year of the superior operating leverage
that we have been demonstrating while putting the entire bank on the most sales focused real time core available in our industry.”

 

Division Updates

 

The second quarter of 2026 demonstrated continued
progress across the Company’s strategies to meet its growth and profitability goals in 2026. The following discussion highlights
recent progress for each of these strategies:

 

Core Community Bank

 

The Core Bank’s 24 banking offices in Virginia
and Maryland represent almost two-thirds of the Company’s total balance sheet. Management believes the Core Bank drives significant
value for the Company with a stable deposit base and strong core profitability:

 

·The Core Bank has low concentrations of investor
CRE (23% of total loans and only 188% of regulatory capital).

·Loan pipeline of $158 million as of June 30,
2026, up 28% from $123 million at March 31, 2026.

·Cost of deposits of 1.60% in the second quarter
of 2026 compared to 1.79% in the same quarter in 2025. 

·Zero brokered deposits.

·A proprietary banking app for commercial depositors
that drives new sales independent of lending efforts in and around the Company’s footprint.

 

Approximately 21% of the core Bank’s deposit
base are noninterest bearing deposits, supported with what management believes is the region’s best and most unique technology including
the Bank’s proprietary V1BE service. Over $450 million of deposits have used the service, including over 80% of commercial clients.
Over $70 million of new deposit relationships have resulted directly from the V1BE offering.

 

Primis Mortgage

 

Primis Mortgage had closed mortgage volume of
$421 million in the second quarter of 2026, up 30% compared to the same quarter in 2025, in spite of significant macroeconomic headwinds
in the second quarter. Construction-to-permanent loan volume was $34 million in the second quarter of 2026 versus $26 million in the same
period in 2025. Pre-tax earnings related to Primis Mortgage were approximately $2.2 million for the second quarter of 2026, up substantially
from earnings of $0.1 million in the second quarter of 2025.

 

Mortgage Warehouse

 

Mortgage warehouse lending continued to show strong
growth in the second quarter of 2026. Outstanding loan balances at June 30, 2026 were $544 million, up 18% from $460 million at March
31, 2026 and up 195% from $185 million at June 30, 2025. Average loan balances were $426 million in the second quarter of 2026, up 24%
from $343 million in the first quarter of 2026 and up 226% from $131 million in the second quarter of 2025. Mortgage warehouse also funded
on average approximately 11% of its balance sheet with associated customer noninterest bearing deposit balances during the second quarter
of 2026.

 

Panacea Financial

 

Panacea’s growth remained strong through
the second quarter of 2026 with loans outstanding of $617 million, including loans held for sale, up 11% annualized compared to March
31, 2026. Panacea sold approximately $51 million of loans in the second quarter of 2026, including $41 million of loans classified as
held for sale at March 31, 2026, and had $33 million of loans classified as held for sale at June 30, 2026. Panacea loans held for investment
were $583 million at June 30, 2026, up 18% annualized from $559 million at March 31, 2026. At the end of the second quarter of 2026, Panacea
customer deposits totaled $169 million, up 52% from June 30, 2025. Panacea remains the number one ranked “Bank for doctors”
on Google and banks over 7,500 professionals and practices nationwide.

 

 2 

  

 

 

Digital Platform

 

Funding for the national strategies is provided
exclusively by the Bank’s digital platform powered by what the Bank believes is one of the safest and most functional deposit accounts
in the nation. Because of the scalability of the platform, there is significantly less pressure on the core Bank to provide this funding
and risk the profitable, decades old relationships with core customers.

 

The platform ended the second quarter of 2026
with approximately $1.0 billion of deposits with a cost of deposits of 3.79% compared to $1.1 billion at June 30, 2025 with a cost of
4.27%. The platform also successfully grew business accounts in 2026 with small business balances reaching $38 million at June 30, 2026,
up substantially from $16 million at December 31, 2025. These customers remain sticky with approximately 74% of our digital deposits banking
with Primis for at least three years.

 

Core Consolidation Initiative

 

In 2025, the Company announced its decision to
fully convert its core bank and all divisions onto its real-time, fully digital core that had served as the backbone of its successful
national deposit origination platform.  Concurrent with that decision, management has been fully evaluating its products and
services as well as vendors and various contracts supporting both cores.  Additional earnings improvements from this evaluation
are expected to begin late in 2026 and be fully implemented in early 2027.  The improvements to earnings are on both the income
and expense side totaling $6.1 million and are comprised of the following:

 

·$3
million in revenue improvements resulting from consolidating account types and applying best practice fee solutions across all products
and services, expected to be in place by late 2026.

·$2.4
million in cost savings from consolidation of printing and statement services.  Expected to be in place by January 2027.

·$0.7
million from the consolidation of contracts and other consulting services.  Consolidation of these services is beginning in
4Q 2026 with the majority of the savings realized in the first quarter of 2027 and full realization expected by the end of the second
quarter of 2027.

 

In addition, we currently amortize approximately
$0.8 million per quarter of capitalized costs from the initial development of the digital platform.  This amortization expense
is expected to end during the third quarter of 2027.

 

Net Interest Income

 

Net interest income in the second quarter of 2026
was $33.8 million, up 34.1%, versus $25.2 million in the second quarter of 2025. As noted above, the Company’s net interest margin
improved to 3.45% in the second quarter of 2026 compared to 2.86% in the same quarter of 2025 with the expansion driven by robust earning
asset growth funded at attractive incremental margins.

 

Yield on earnings assets in the second quarter
of 2026 increased three basis points and 34 basis points versus the first quarter of 2026 and second quarter of 2025, respectively. Yield
on investments increased 131 basis points year-over-year largely due to the portfolio restructuring in the fourth quarter of 2025.

 

Cost of deposits in the Bank have benefitted from
the focus on growing noninterest bearing deposit balances as well as the Core Bank’s management of interest expense. In the second
quarter of 2026, the Company reported cost of interest-bearing deposits of 2.69% compared to 2.94% in the same quarter in 2025. Cost of
funds was 2.46% in the second quarter of 2026, down 21 basis points from 2.67% in the second quarter of 2025.

 

Noninterest Income

 

Noninterest income was $22.0 million in the second
quarter of 2026 versus $13.6 million in the first quarter of 2026 and $18.0 million in the second quarter of 2025. The second quarter
of 2026 included a gain of $5.9 million from the liquidation of an insurance agency investment while the second quarter of 2025 included
a $7.5 million gain on the Company’s investment in Panacea Financial Holdings. Mortgage related income grew 44.3% to $11.4 million
in the second quarter of 2026 compared to $7.9 million in the same quarter in 2025. In 2026, the Company restructured its bank-owned life
insurance portfolio which improved noninterest income by approximately $1.2 million annually beginning late in the second quarter of 2026.

 

 3 

  

 

 

The Company reported gain on sale income of $1.6
million related to the sale of Panacea loans and the guaranteed portion of SBA loans in the second quarter of 2026 compared to no similar
gain on sale income in the second quarter of 2025. Approximately $237 thousand of the gain on sale income was attributable to the Core
Bank in the second quarter of 2026 with the remainder driven by the Panacea Division. The Company anticipates increasing SBA gain on sale
income to between $500 thousand to $600 thousand from the Core Bank beginning in the third quarter of 2026.

 

Noninterest Expense

 

Noninterest expense was $38.2 million for the
second quarter of 2026, compared to $31.9 million for the same quarter of 2025. The following table reflects the core operating expense
burden at the Company, net of mortgage related and Panacea division impacts.

 

 
 ($ in thousands) 
 2Q26 
 1Q26 
 4Q25 
 3Q25 
 2Q25
 

 
 Reported Noninterest Expense 
 $38,207  
 $33,754  
 $42,164  
 $32,313  
 $31,942 

 
   
     
     
     
     
    

 
 Nonrecurring 
  -  
  -  
  (1,126) 
  -  
  (232)

 
 Primis Mortgage Expenses 
  (11,526) 
  (10,545) 
  (10,048) 
  (8,214) 
  (8,514)

 
 Panacea Net Expense 
  (1,507) 
  (1,040) 
  (2,614) 
  (2,100) 
  (370)

 
 Consumer Program Servicing Fee 
  (300) 
  (347) 
  (391) 
  (439) 
  (518)

 
 Reserve for Unfunded Commitment 
  39  
  136  
  127  
  19  
  (18)

 
 Total Adjustments 
  (13,294) 
  (11,796) 
  (14,052) 
  (10,734) 
  (9,652)

 
   
     
     
     
     
    

 
 Core Operating Expense Burden 
 $24,913  
 $21,958  
 $28,112  
 $21,579  
 $22,290 

 

 

Core operating expense burden, as defined above,
was $25 million in the second quarter of 2026 versus $22 million in both the first quarter of 2026 and second quarter of 2025. As previously
disclosed, the first and second quarters of 2026 include a full quarter of lease expense, net of reduced depreciation expense, of approximately
$1.4 million from the Company’s sale leaseback transaction executed in the fourth quarter of 2025. The second quarter of 2026 included
a number of discrete expenses including $1.1 million related to the settlement of a previously disclosed mortgage lawsuit, $0.4 million
increase of loan related expenses and $0.2 million higher marketing costs. There was also approximately $0.9 million cumulatively of smaller
expenses related to the Company’s recent shelf filing, BOLI exchange and core conversion project.

 

Lastly, the Company is also in the beginning stages
of deploying artificial intelligence tools and agents to drive ongoing productivity improvements in order to preserve operating leverage.

 

Loan Portfolio and Asset Quality

 

Loans held for investment increased to $3.5 billion
at June 30, 2026 compared to $3.4 billion at March 31, 2026 and $3.1 billion at June 30, 2025. Primary drivers in these levels include:

 

·Core Bank loans averaged approximately $2.0 billion
in the second quarter of 2026, flat from the first quarter of 2026 

·Panacea Financial loans grew $24 million, or
4%, through the end of second quarter of 2026 to $583 million excluding loans held for sale at June 30, 2026. 

·Mortgage warehouse outstandings increased significantly
to $544 million, or 18%, at the end of the second quarter of 2026 compared to $460 million at March 31, 2026. 

·Mortgage portfolio loans generated by Primis
Mortgage grew to $140 million at June 30, 2026, up 15% from $122 million at March 31, 2026 and up 132% from $67 million at June 30, 2025.

·Loan balances associated with the consumer loan
program declined to $75 million at June 30, 2026, net of fair value discounts, compared to $113 million at June 30, 2025. Importantly,
loans in promotional periods with full deferral now represent an immaterial amount of the portfolio which is amortizing down over time.

 

Nonperforming assets, excluding portions guaranteed
by the SBA, improved to 1.45% of total assets at June 30, 2026 compared to 2.35% of total assets at March 31, 2026 and 1.90% at June 30,
2025. The Company has made significant progress reducing nonperforming assets with total nonperforming assets decreasing to $63 million
at June 30, 2026 from $100 million at March 31, 2026, representing a 37% reduction in the second quarter of 2026.

 

 4 

  

 

 

The Company recorded a provision for credit losses
of $5.5 million for the second quarter of 2026 compared to a provision for credit losses of $1.5 million for the first quarter of 2026
and $8.3 million for the second quarter of 2025. Approximately $5.3 million of the second quarter 2026 provision was related to specific
reserve additions for one nonaccrual credit. Absent this amount, improvements in specific reserve amounts largely offset provision amounts
related to portfolio growth and the consumer loan program. Core net charge-offs as a percentage of average loans were 53 basis points,
up 38 basis points from the same period a year ago and up 47 basis points from the first quarter of 2026. The increase in net charge-offs
was largely driven by one nonaccrual loan that was resolved in the second quarter of 2026. As a percentage of loans held for investment,
the allowance for credit losses was 1.33% at the end of the second quarter of 2026 compared to 1.47% at the end of the second quarter
of 2025.

 

Deposits and Funding

 

Total deposits at June 30, 2026 were $3.4 billion,
up $0.1 billion, or 3.1% when compared to the same period in 2025. Noninterest bearing demand deposits were $506 million at June 30, 2026,
an increase of 5.9% compared to balances at June 30, 2025. The Company had FHLB advances totaling $300 million outstanding at June 30,
2026, up from $25 million at December 31, 2025 and compared to no advances at June 30, 2025.

 

Taxes

 

Tax expense for the second quarter of 2026 was
$2.7 million. Included in this expense was $0.8 million of tax expense related to the Panacea Financial Holdings deconsolidation in 2025
offset by $0.8 million of benefit from the purchase of certain tax credits. The Company expects the effective tax rate to be approximately
22% for the rest of 2026. 

 

Shareholders’ Equity

 

Tangible book value per common share(1)
at the end of the second quarter of 2026 was $13.72, an increase of $2.24, or 19.5%, from levels reported at June 30, 2025. Tangible common
equity(1) ended the second quarter of 2026 at $340.0 million, or 7.99% of tangible assets(1). 

 

The Board of Directors declared a dividend of
$0.10 per share payable on August 21, 2026 to shareholders of record on August 7, 2026. This is Primis’ fifty-ninth consecutive
quarterly dividend. 

 

About Primis Financial Corp.

 

As of June 30, 2026, Primis had $4.4 billion in
total assets, $3.5 billion in total loans held for investment and $3.4 billion in total deposits. Primis Bank provides a range of financial
services to individuals and small- and medium-sized businesses through twenty-four full-service branches in Virginia and Maryland and
provides services to customers through certain online and mobile applications.

 

 Contacts: 
 Address:

 Dennis J. Zember, Jr., President and CEO
 Primis Financial Corp.

 Matthew A. Switzer, EVP and CFO 
 1676 International Drive, Suite 900

 Phone: (703) 893-7400
 McLean, VA 22102

 

Primis Financial Corp., NASDAQ Symbol FRST

Website: www.primisbank.com

 

Conference Call

 

The Company’s management will host a conference
call to discuss its second quarter results on Friday, July 24, 2026 at 10:00 a.m. (ET). A live webcast of the conference call is available
at the following website: https://events.q4inc.com/attendee/499443631. Participants may also call 1-833-461-5787, enter meeting
ID 499 443 631 and ask for the Primis Financial Corp. call. A replay of the teleconference will be available for 7 days using the webcast
link above.

 

 5 

  

 

 

Non-GAAP Measures 

 

Statements included in this press release include
non-GAAP financial measures and should be read along with the accompanying tables. Primis uses non-GAAP financial measures to analyze
its performance. The measures entitled operating net income (loss) available to Primis' common shareholders; pre-tax pre-provision operating
earnings; operating return on average assets; pre-tax pre-provision operating return on average assets; operating return on average equity;
operating return on average tangible equity; operating efficiency ratio; operating earnings per share – basic; operating earnings
per share – diluted; core operating expense burden, tangible book value per share; tangible common equity; tangible common equity
to tangible assets; and core net interest margin are not measures recognized under GAAP and therefore are considered non-GAAP financial
measures. We use the term “operating” to describe a financial measure that excludes income or expense considered to be non-recurring
in nature. Items identified as non-operating are those that, when excluded from a reported financial measure, provide management or the
reader with a measure that may be more indicative of forward-looking trends in our business. A reconciliation of these non-GAAP financial
measures to the most comparable GAAP measures is provided when discussing the financial measure or in the Reconciliation of Non-GAAP Items
table.

 

Management believes that these non-GAAP financial
measures provide additional useful information about Primis that allows management and investors to evaluate the ongoing operating results,
financial strength and performance of Primis and provide meaningful comparison to its peers. Non-GAAP financial measures should not be
considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider
Primis’ performance and financial condition as reported under GAAP and all other relevant information when assessing the performance
or financial condition of Primis. Non-GAAP financial measures are not standardized and, therefore, it may not be possible to compare these
measures with other companies that present measures having the same or similar names.

 

Non-GAAP financial measures have limitations as
analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition
as reported under GAAP.

 

Forward-Looking Statements 

 

This press release and certain of our other filings
with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning
of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements can generally
be identified by such words as "may," "plan," "contemplate," "anticipate," "believe,"
 "intend," "continue," "expect," "project," "predict," "estimate," "could,"
 "should," "would," "will," and other similar words or expressions of the future or otherwise regarding the
outlook for the Company’s future business and financial performance and/or the performance of the banking industry and economy in
general. These forward-looking statements include, but are not limited to, our expectations regarding our future operating and financial
performance, including the preliminary estimated financial and operating information presented herein, which is subject to adjustment;
our outlook and long-term goals for future growth and new offerings and services; our expectations regarding net interest margin; expectations
on our growth strategy, expense management, capital management and future profitability; expectations on credit quality and performance;
and the assumptions underlying our expectations.

 

 6 

  

 

 

Prospective
investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown
risks and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from
the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are
based on the information known to, and current beliefs and expectations of, the Company’s management and are subject to significant
risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. Factors that
might cause such differences include, but are not limited to: instability in global economic conditions and geopolitical matters; the
impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry,
nationally and within our primary market areas; adverse developments in borrower industries; changes in interest rates, inflation, loan
demand, real estate values, or competition, as well as labor shortages and supply chain disruptions; the impact of tariffs, trade policies,
and trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions
to supply chains, and decreased demand for other banking products and services); the Company’s ability to implement its various
strategic and growth initiatives, including its recently established Panacea Financial Division, digital banking platform, V1BE fulfillment
service, Mortgage Warehouse division and Primis Mortgage Company, as well as with respect to use and implementation of artificial intelligence;
competitive pressures among financial institutions increasing significantly (including as a result
of technological changes and the use of artificial intelligence); changes in applicable laws, rules, or regulations, including changes
to statutes, regulations or regulatory policies or practices; legislative, regulatory or supervisory actions related to so-called “de-banking,”
including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations,
or operational practices; changes in management’s plans for the future; credit risk associated with our lending activities; changes
in accounting principles, policies, or guidelines; adverse results from current or future litigation, regulatory examinations or other
legal and/or regulatory actions; potential impacts of adverse developments in the banking industry, including impacts on customer confidence,
deposit outflows, liquidity and the regulatory response thereto; potential increases in the provision for credit losses; our ability to
identify and address increased cybersecurity risks, including those impacting vendors and other second parties; fraud or misconduct by
internal or external actors, which we may not be able to prevent, detect or mitigate; acts of God or of war or other conflicts, civil
unrest, acts of terrorism, pandemics or other catastrophic events that may affect general economic conditions; action or inaction by the
federal government, including as a result of any prolonged government shutdown; and other general competitive, economic, political, and
market factors, including those affecting our business, operations, pricing, products, or services.

 

Forward-looking statements speak only as of the
date on which such statements are made. These forward-looking statements are based upon information presently known to the Company’s
management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without
limitation, the risks and other factors set forth in the Company’s filings with the Securities and Exchange Commission, the Company’s
Annual Report on Form 10-K for the year ended December 31, 2025, under the captions “Cautionary Note Regarding Forward-Looking Statements”
and “Risk Factors,” and in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company
undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement
is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking
statements.

 

 

(1)Non-GAAP financial measure. Please see “Reconciliation of Non-GAAP Items” in the financial tables for more information
and for a reconciliation to GAAP.

 

 7 

  

 

 

Primis Financial Corp.   

Financial Highlights (unaudited)                

(Dollars in thousands, except per share data)

 

 
   
 For Three Months Ended:  
 For Six Months Ended: 

 
   
 2Q 2026  
 1Q 2026  
 4Q 2025  
 3Q 2025  
 2Q 2025  
 2Q 2026  
 2Q 2025 

 
 Selected Performance Ratios: 
     
     
     
     
     
     
    

 
 Return on average assets 
  0.90% 
  0.76% 
  2.94% 
  0.70% 
  0.26% 
  0.83% 
  1.36%

 
 Operating return on average assets(1) 
  0.53% 
  0.84% 
  0.23% 
  0.70% 
  (0.34)% 
  0.68% 
  0.02%

 
 Pre-tax pre-provision return on average assets 
  1.68% 
  1.20% 
  3.84% 
  0.89% 
  1.20% 
  1.44% 
  2.23%

 
 Pre-tax pre-provision operating return on average assets(1) 
  1.12% 
  1.20% 
  0.39% 
  0.89% 
  0.44% 
  1.15% 
  0.57%

 
 Return on average common equity 
  8.71% 
  7.24% 
  29.46% 
  7.13% 
  2.57% 
  7.84% 
  13.96%

 
 Operating return on average common equity(1) 
  5.17% 
  7.96% 
  2.36% 
  7.13% 
  (3.40)% 
  6.56% 
  0.19%

 
 Operating return on average tangible common equity(1) 
  6.65% 
  10.19% 
  3.07% 
  9.45% 
  (4.51)% 
  8.38% 
  0.26%

 
 Cost of funds 
  2.46% 
  2.46% 
  2.52% 
  2.62% 
  2.67% 
  2.46% 
  2.67%

 
 Net interest margin 
  3.45% 
  3.43% 
  3.28% 
  3.18% 
  2.86% 
  3.44% 
  3.00%

 
 Gross loans to deposits 
  100.58% 
  99.22% 
  96.70% 
  95.92% 
  93.65% 
  100.58% 
  93.65%

 
 Efficiency ratio 
  68.48% 
  73.97% 
  52.14% 
  78.81% 
  73.92% 
  70.95% 
  63.25%

 
 Operating efficiency ratio(1) 
  76.51% 
  73.97% 
  91.05% 
  78.81% 
  88.67% 
  70.95% 
  90.27%

 
   
     
     
     
     
     
     
    

 
 Per Common Share Data: 
     
     
     
     
     
     
    

 
 Earnings per common share - Basic 
 $0.38  
 $0.30  
 $1.20  
 $0.28  
 $0.10  
 $0.68  
 $1.01 

 
 Operating earnings per common share - Basic(1) 
 $0.23  
 $0.33  
 $0.10  
 $0.28  
 $(0.13) 
 $0.55  
 $0.01 

 
 Earnings per common share - Diluted 
 $0.38  
 $0.30  
 $1.20  
 $0.28  
 $0.10  
 $0.68  
 $1.01 

 
 Operating earnings per common share - Diluted(1) 
 $0.23  
 $0.33  
 $0.10  
 $0.28  
 $(0.13) 
 $0.55  
 $0.01 

 
 Book value per common share 
 $17.49  
 $17.25  
 $17.12  
 $15.51  
 $15.27  
 $17.49  
 $15.27 

 
 Tangible book value per common share(1) 
 $13.72  
 $13.47  
 $13.34  
 $11.71  
 $11.48  
 $13.72  
 $11.48 

 
 Cash dividend per common share 
 $0.10  
 $0.10  
 $0.10  
 $0.10  
 $0.10  
 $0.20  
 $0.20 

 
 Weighted average shares outstanding - Basic 
  24,731,956  
  24,665,011  
  24,634,544  
  24,632,202  
  24,701,319  
  24,698,677  
  24,703,942 

 
 Weighted average shares outstanding - Diluted 
  24,788,023  
  24,719,255  
  24,654,037  
  24,643,889  
  24,714,229  
  24,751,058  
  24,718,458 

 
 Shares outstanding at end of period 
  24,799,072  
  24,772,072  
  24,695,385  
  24,644,385  
  24,643,185  
  24,799,072  
  24,643,185 

 
   
     
     
     
     
     
     
    

 
 Asset Quality Ratios: 
     
     
     
     
     
     
    

 
 Non-performing assets as a percent of total assets, excluding SBA guarantees 
  1.45% 
  2.35% 
  2.03% 
  2.07% 
  1.90% 
  1.45% 
  1.90%

 
 Net charge-offs (recoveries) as a percent of average loans (annualized) 
  0.65% 
  0.12% 
  0.16% 
  0.14% 
  0.80% 
  0.41% 
  1.13%

 
 Core net charge-offs (recoveries) as a percent of average
 loans (annualized)(1) 
  0.53% 
  0.06% 
  0.05% 
  0.03% 
  0.15% 
  0.30% 
  0.11%

 
 Allowance for credit losses to total loans 
  1.33% 
  1.37% 
  1.40% 
  1.40% 
  1.47% 
  1.33% 
  1.47%

 
   
     
     
     
     
     
     
    

 
 Capital Ratios: 
     
     
     
     
     
     
    

 
 Common equity to assets 
  9.96% 
  10.04% 
  10.45% 
  9.66% 
  9.72% 
     
    

 
 Tangible common equity to tangible assets(1) 
  7.99% 
  8.02% 
  8.33% 
  7.48% 
  7.49% 
     
    

 
 Leverage ratio(2) 
  8.63% 
  8.76% 
  8.80% 
  8.32% 
  8.34% 
     
    

 
 Common equity tier 1 capital ratio(2) 
  9.48% 
  9.18% 
  9.36% 
  8.62% 
  8.92% 
     
    

 
 Tier 1 risk-based capital ratio(2) 
  9.75% 
  9.45% 
  9.64% 
  8.91% 
  9.22% 
     
    

 
 Total risk-based capital ratio(2) 
  12.32% 
  12.01% 
  12.40% 
  12.02% 
  12.43% 
     
    

 

 

 

(1)See Reconciliation of Non-GAAP financial measures.

(2)Ratios are estimated and may be subject to change pending the
final filing of the FR Y-9C.

 

 8 

  

 

 

Primis
Financial Corp. 

(Dollars in thousands)

Condensed Consolidated Balance Sheets
(unaudited)

 

 
   
 For Three Months Ended: 

 
   
 2Q 2026  
 1Q 2026  
 4Q 2025  
 3Q 2025  
 2Q 2025 

 
 Assets 
     
     
     
     
    

 
 Cash and cash equivalents 
 $176,825  
 $159,881  
 $143,607  
 $63,881  
 $94,074 

 
 Investment securities-available for sale 
  168,285  
  171,877  
  171,377  
  234,660  
  242,073 

 
 Investment securities-held to maturity 
  6,588  
  6,792  
  6,981  
  8,550  
  8,850 

 
 Loans held for sale 
  231,990  
  223,180  
  166,066  
  202,372  
  126,869 

 
 Loans held for investment 
  3,466,388  
  3,396,366  
  3,283,683  
  3,200,234  
  3,130,521 

 
 Allowance for credit losses 
  (45,964) 
  (46,381) 
  (45,883) 
  (44,766) 
  (45,985)

 
 Net loans 
  3,420,424  
  3,349,985  
  3,237,800  
  3,155,468  
  3,084,536 

 
 Stock in Federal Reserve Bank and Federal Home Loan Bank 
  27,487  
  24,162  
  14,185  
  17,035  
  12,998 

 
 Bank premises and equipment, net 
  5,955  
  5,924  
  6,070  
  19,380  
  19,642 

 
 Operating lease right-of-use assets 
  64,233  
  64,781  
  65,596  
  9,427  
  9,927 

 
 Goodwill and other intangible assets 
  93,482  
  93,488  
  93,495  
  93,502  
  93,508 

 
 Assets held for sale, net 
  776  
  776  
  776  
  775  
  2,181 

 
 Bank-owned life insurance 
  77,515  
  76,958  
  68,969  
  68,504  
  68,048 

 
 Deferred tax assets, net 
  15,914  
  14,593  
  14,683  
  17,328  
  19,466 

 
 Investment in Panacea Financial Holdings, Inc. common stock 
  7,299  
  6,899  
  6,899  
  6,880  
  6,586 

 
 Other assets 
  56,841  
  57,372  
  50,884  
  57,087  
  82,968 

 
 Total assets 
 $4,353,614  
 $4,256,668  
 $4,047,388  
 $3,954,849  
 $3,871,726 

 
   
     
     
     
     
    

 
 Liabilities and stockholders' equity 
     
     
     
     
    

 
 Demand deposits 
 $505,758  
 $541,168  
 $554,442  
 $489,728  
 $477,705 

 
 NOW accounts 
  878,976  
  844,528  
  862,735  
  831,709  
  858,624 

 
 Money market accounts 
  794,540  
  778,366  
  740,886  
  737,634  
  744,321 

 
 Savings accounts 
  960,343  
  942,847  
  922,337  
  958,416  
  935,527 

 
 Time deposits 
  306,724  
  316,156  
  315,185  
  318,865  
  326,496 

 
 Total deposits 
  3,446,341  
  3,423,065  
  3,395,585  
  3,336,352  
  3,342,673 

 
 Securities sold under agreements to repurchase - short term 
  3,974  
  3,525  
  3,552  
  3,954  
  4,370 

 
 Federal Home Loan Bank advances 
  300,000  
  230,000  
  25,000  
  85,000  
  - 

 
 Secured borrowings 
  14,165  
  14,450  
  14,773  
  15,403  
  16,449 

 
 Subordinated debt and notes 
  69,358  
  69,311  
  96,162  
  96,091  
  96,020 

 
 Operating lease liabilities 
  60,573  
  60,832  
  61,340  
  10,682  
  11,195 

 
 Other liabilities 
  25,374  
  28,287  
  28,080  
  25,214  
  24,604 

 
 Total liabilities 
  3,919,785  
  3,829,470  
  3,624,492  
  3,572,696  
  3,495,311 

 
 Total stockholders' equity 
  433,829  
  427,198  
  422,896  
  382,153  
  376,415 

 
 Total liabilities and stockholders' equity 
 $4,353,614  
 $4,256,668  
 $4,047,388  
 $3,954,849  
 $3,871,726 

 
   
     
     
     
     
    

 
 Tangible common equity(1) 
 $340,347  
 $333,710  
 $329,401  
 $288,651  
 $282,907 

 

 

 

(1)See Reconciliation of Non-GAAP financial measures.

 

 9 

  

 

 

Primis
Financial Corp.

(Dollars
in thousands)

Condensed Consolidated Statement of
Operations (unaudited)

 

 
   
 For Three Months Ended:  
 For Six Months Ended: 

 
   
 2Q 2026  
 1Q 2026  
 4Q 2025  
 3Q 2025  
 2Q 2025  
 2Q 2026  
 2Q 2025 

 
 Interest and dividend income 
 $56,322  
 $53,526  
 $53,326  
 $51,766  
 $47,627  
 $109,848  
 $95,350 

 
 Interest expense 
  22,567  
  21,452  
  22,474  
  22,734  
  22,447  
  44,019  
  43,806 

 
 Net interest income 
  33,755  
  32,074  
  30,852  
  29,032  
  25,180  
  65,829  
  51,544 

 
 Provision for (recovery of) credit losses 
  5,452  
  1,549  
  2,439  
  (49) 
  8,303  
  7,001  
  9,899 

 
 Net interest income after provision for credit losses 
  28,303  
  30,525  
  28,413  
  29,081  
  16,877  
  58,828  
  41,645 

 
 Account maintenance and deposit service fees 
  1,699  
  1,246  
  1,292  
  1,358  
  1,675  
  2,945  
  3,014 

 
 Mortgage banking income 
  11,388  
  10,760  
  9,992  
  8,887  
  7,893  
  22,148  
  13,508 

 
 Gain on sale of loans 
  1,582  
  567  
  1,470  
  249  
  210  
  2,149  
  210 

 
 Gains on Panacea Financial Holdings investment 
  400  
  -  
  20  
  294  
  7,450  
  400  
  32,028 

 
 Gain on sale-leaseback 
  -  
  -  
  50,573  
  -  
  -  
  -  
  - 

 
 Loss on sales of investment securities 
  -  
  -  
  (14,777) 
  -  
  -  
  -  
  - 

 
 Gain (loss) on other investments 
  5,961  
  49  
  33  
  381  
  (308) 
  6,010  
  (255)

 
 Other 
  1,004  
  933  
  1,413  
  800  
  1,110  
  1,937  
  1,860 

 
 Noninterest income 
  22,034  
  13,555  
  50,016  
  11,969  
  18,030  
  35,589  
  50,365 

 
 Employee compensation and benefits 
  20,267  
  19,556  
  25,535  
  18,523  
  17,060  
  39,823  
  35,001 

 
 Occupancy and equipment expenses 
  4,799  
  4,617  
  4,459  
  3,481  
  3,127  
  9,416  
  6,412 

 
 Virginia franchise tax expense 
  695  
  611  
  577  
  576  
  577  
  1,306  
  1,154 

 
 FDIC Insurance assessment 
  854  
  738  
  918  
  999  
  1,021  
  1,592  
  1,814 

 
 Data processing expense 
  2,342  
  2,188  
  2,421  
  2,369  
  3,037  
  4,530  
  5,886 

 
 Marketing expense 
  934  
  760  
  472  
  450  
  720  
  1,694  
  1,234 

 
 Telecommunication and communication expense 
  350  
  311  
  352  
  309  
  324  
  661  
  611 

 
 Professional fees 
  2,886  
  1,860  
  3,730  
  2,509  
  2,413  
  4,746  
  4,638 

 
 Miscellaneous lending expenses 
  1,128  
  728  
  634  
  231  
  900  
  1,856  
  1,734 

 
 Other expenses 
  3,952  
  2,385  
  3,066  
  2,866  
  2,763  
  6,337  
  5,974 

 
 Noninterest expense 
  38,207  
  33,754  
  42,164  
  32,313  
  31,942  
  71,961  
  64,458 

 
 Income before income taxes 
  12,130  
  10,326  
  36,265  
  8,737  
  2,965  
  22,456  
  27,552 

 
 Income tax expense 
  2,704  
  3,014  
  6,725  
  1,907  
  528  
  5,718  
  6,081 

 
 Net Income 
  9,426  
  7,312  
  29,540  
  6,830  
  2,437  
  16,738  
  21,471 

 
 Noncontrolling interest 
  -  
  -  
  -  
  -  
  -  
  -  
  3,602 

 
 Net income available to Primis' common shareholders 
 $9,426  
 $7,312  
 $29,540  
 $6,830  
 $2,437  
 $16,738  
 $25,073 

 

 10 

  

 

 

Primis
Financial Corp.

(Dollars in thousands)

Loan Portfolio Composition

 

 
   
 For Three Months Ended: 

 
   
 2Q 2026  
 1Q 2026  
 4Q 2025  
 3Q 2025  
 2Q 2025 

 
 Loans held for sale 
 $231,990  
 $223,180  
 $166,066  
 $202,372  
 $126,869 

 
 Loans secured by real estate: 
     
     
     
     
    

 
 Commercial real estate - owner occupied 
  560,515  
  534,897  
  510,088  
  495,739  
  480,981 

 
 Commercial real estate - non-owner occupied 
  522,383  
  540,154  
  567,092  
  592,480  
  590,848 

 
 Secured by farmland 
  2,479  
  2,386  
  3,407  
  3,642  
  3,696 

 
 Construction and land development 
  153,906  
  151,426  
  131,757  
  102,227  
  106,443 

 
 Residential 1-4 family 
  558,782  
  560,711  
  576,866  
  564,087  
  571,206 

 
 Multi-family residential 
  137,953  
  150,475  
  140,261  
  137,804  
  157,097 

 
 Home equity lines of credit 
  61,985  
  61,786  
  61,738  
  62,458  
  62,103 

 
 Total real estate loans 
  1,998,003  
  2,001,835  
  1,991,209  
  1,958,437  
  1,972,374 

 
   
     
     
     
     
    

 
 Commercial loans 
  1,184,862  
  1,104,438  
  970,492  
  915,158  
  811,458 

 
 Paycheck Protection Program loans 
  1,713  
  1,716  
  1,719  
  1,723  
  1,729 

 
 Consumer loans 
  277,248  
  283,605  
  315,407  
  319,977  
  339,936 

 
 Total Non-PCD loans 
  3,461,826  
  3,391,594  
  3,278,827  
  3,195,295  
  3,125,497 

 
 PCD loans 
  4,562  
  4,772  
  4,856  
  4,939  
  5,024 

 
 Total loans receivable, net of deferred fees 
 $3,466,388  
 $3,396,366  
 $3,283,683  
 $3,200,234  
 $3,130,521 

 

 

 

 
   
 For Three Months Ended: 

 
 (Dollars in thousands) 
 2Q 2026  
 1Q 2026  
 4Q 2025  
 3Q 2025  
 2Q 2025 

 
 Loans by Risk Grade: 
    
    
    
    
   

 
 Pass Grade 1 - Highest Quality 
 $128  
 $119  
 $87  
 $666  
 $667 

 
 Pass Grade 2 - Good Quality 
  152,946  
  160,228  
  178,999  
  168,177  
  170,560 

 
 Pass Grade 3 - Satisfactory Quality 
  1,537,862  
  1,556,700  
  1,882,934  
  1,842,958  
  1,737,153 

 
 Pass Grade 4 - Pass 
  1,591,207  
  1,469,542  
  1,026,499  
  1,034,035  
  1,050,397 

 
 Pass Grade 5 - Pass/ Watch(1) 
  14,599  
  13,765  
  -  
  -  
  - 

 
 Pass Grade 6 - Special Mention(2) 
  75,213  
  49,308  
  48,683  
  7,004  
  31,902 

 
 Grade 7 - Substandard(2) 
  86,884  
  139,155  
  138,932  
  139,847  
  139,842 

 
 Grade 8 - Doubtful(2) 
  7,549  
  7,549  
  7,549  
  7,547  
  - 

 
 Grade 9 - Loss(2) 
  -  
  -  
  -  
  -  
  - 

 
 Total loans 
 $3,466,388  
 $3,396,366  
 $3,283,683  
 $3,200,234  
 $3,130,521 

 

 

(Dollars in thousands)

Asset Quality Information

 

 
   
 For Three Months Ended: 

 
   
 2Q 2026  
 1Q 2026  
 4Q 2025  
 3Q 2025  
 2Q 2025 

 
 Allowance for Credit Losses: 
     
     
     
     
    

 
 Balance at beginning of period 
 $(46,381) 
 $(45,883) 
 $(44,766) 
 $(45,985) 
 $(44,021)

 
 Recovery of (provision for) credit losses 
  (5,452) 
  (1,549) 
  (2,439) 
  49  
  (8,303)

 
 Net charge-offs 
  5,869  
  1,051  
  1,322  
  1,170  
  6,339 

 
 Ending balance 
 $(45,964) 
 $(46,381) 
 $(45,883) 
 $(44,766) 
 $(45,985)

 
   
     
     
     
     
    

 
 Reserve for Unfunded Commitments: 
     
     
     
     
    

 
 Balance at beginning of period 
 $(870) 
 $(1,006) 
 $(1,133) 
 $(1,152) 
 $(1,134)

 
 Recovery of (provision for) unfunded loan commitment reserve 
  39  
  136  
  127  
  19  
  (18)

 
 Total Reserve for Unfunded Commitments 
 $(831) 
 $(870) 
 $(1,006) 
 $(1,133) 
 $(1,152)

 

 
  
 2Q 2026  
 1Q 2026  
 4Q 2025  
 3Q 2025  
 2Q 2025 

 
 Non-Performing Assets: 
    
    
    
    
   

 
 Nonaccrual loans 
 $61,847  
 $84,949  
 $84,823  
 $84,973  
 $53,059 

 
 Accruing loans delinquent 90 days or more 
  5,827  
  20,222  
  1,713  
  1,713  
  25,188 

 
 Total non-performing assets 
 $67,674  
 $105,171  
 $86,536  
 $86,686  
 $78,247 

 
 SBA guaranteed portion of non-performing loans 
 $4,491  
 $5,033  
 $4,482  
 $4,682  
 $4,750 

 

 

 

(1)In first quarter of 2026. the Company expanded its risk grade
matrix to include Pass Grade 5 - Pass/ Watch.

(2)In first quarter of 2026, due to the expansion of the risk grade
matrix, Special Mention, Substandard, Doubtful and Loss loans that were in risk grades 5, 6, 7 and 8, respectively in 2025, were migrated
to risk grades 6, 7, 8 and 9, respectively in 2026.

 

 11 

  

 

 

Primis
Financial Corp.

(Dollars in thousands)

Average Balance Sheet

 

 
   
 For Three Months Ended:  
 For Six Months Ended: 

 
   
 2Q 2026  
 1Q 2026  
 4Q 2025  
 3Q 2025  
 2Q 2025  
 2Q 2026  
 2Q 2025 

 
 Assets 
     
     
     
     
     
     
    

 
 Loans held for sale 
 $207,590  
 $159,007  
 $162,854  
 $130,061  
 $108,693  
 $183,433  
 $139,431 

 
 Loans, net of deferred fees 
  3,379,938  
  3,297,456  
  3,238,184  
  3,143,155  
  3,074,993  
  3,338,925  
  2,986,727 

 
 Investment securities 
  177,451  
  176,582  
  220,343  
  247,008  
  249,485  
  177,019  
  247,362 

 
 Other earning assets 
  164,006  
  161,199  
  115,908  
  101,278  
  98,369  
  162,611  
  92,457 

 
 Total earning assets 
  3,928,985  
  3,794,244  
  3,737,289  
  3,621,502  
  3,531,540  
  3,861,988  
  3,465,977 

 
 Other assets 
  272,805  
  261,466  
  244,183  
  232,636  
  272,910  
  267,167  
  252,469 

 
 Total assets 
 $4,201,790  
 $4,055,710  
 $3,981,472  
 $3,854,138  
 $3,804,450  
 $4,129,155  
 $3,718,446 

 
   
     
     
     
     
     
     
    

 
 Liabilities and equity 
     
     
     
     
     
     
    

 
 Demand deposits 
 $565,815  
 $533,570  
 $498,681  
 $481,697  
 $467,493  
 $549,781  
 $457,007 

 
 Interest-bearing liabilities: 
     
     
     
     
     
     
    

 
 NOW and other demand accounts 
  856,254  
  838,845  
  837,231  
  834,839  
  821,893  
  847,598  
  813,752 

 
 Money market accounts 
  777,265  
  750,380  
  740,915  
  756,361  
  759,107  
  763,896  
  773,507 

 
 Savings accounts 
  950,932  
  922,152  
  934,092  
  922,048  
  882,227  
  936,622  
  818,619 

 
 Time deposits 
  311,192  
  316,281  
  315,943  
  324,614  
  329,300  
  313,722  
  332,484 

 
 Total Deposits 
  3,461,458  
  3,361,228  
  3,326,862  
  3,319,559  
  3,260,020  
  3,411,619  
  3,195,369 

 
 Borrowings 
  219,946  
  181,185  
  205,767  
  117,697  
  117,701  
  200,672  
  117,330 

 
 Total Funding 
  3,681,404  
  3,542,413  
  3,532,629  
  3,437,256  
  3,377,721  
  3,612,291  
  3,312,699 

 
 Other Liabilities 
  86,339  
  86,090  
  50,978  
  36,720  
  36,649  
  86,216  
  37,461 

 
 Total liabilites 
  3,767,743  
  3,628,503  
  3,583,607  
  3,473,976  
  3,414,370  
  3,698,507  
  3,350,160 

 
 Primis common stockholders' equity 
  434,047  
  427,207  
  397,865  
  380,162  
  380,080  
  430,648  
  362,295 

 
 Noncontrolling interest 
  -  
  -  
  -  
  -  
  -  
  -  
  5,991 

 
 Total stockholders' equity 
  434,047  
  427,207  
  397,865  
  380,162  
  380,080  
  430,648  
  368,286 

 
 Total liabilities and stockholders' equity 
 $4,201,790  
 $4,055,710  
 $3,981,472  
 $3,854,138  
 $3,794,450  
 $4,129,155  
 $3,718,446 

 
   
     
     
     
     
     
     
    

 
 Net Interest Income 
     
     
     
     
     
     
    

 
 Loans held for sale 
 $3,142  
 $2,376  
 $2,511  
 $2,085  
 $1,754  
 $5,518  
 $2,810 

 
 Loans 
  49,785  
  47,758  
  47,856  
  46,772  
  42,963  
  97,543  
  86,871 

 
 Investment securities 
  1,950  
  1,911  
  1,841  
  1,894  
  1,928  
  3,862  
  3,834 

 
 Other earning assets 
  1,445  
  1,481  
  1,118  
  1,015  
  982  
  2,925  
  1,835 

 
 Total Earning Assets Income 
  56,322  
  53,526  
  53,326  
  51,766  
  47,627  
  109,848  
  95,350 

 
   
     
     
     
     
     
     
    

 
 Non-interest bearing DDA 
  -  
  -  
  -  
  -  
  -  
  -  
  - 

 
 NOW and other interest-bearing demand accounts 
  4,446  
  4,244  
  4,124  
  4,549  
  4,603  
  8,690  
  9,118 

 
 Money market accounts 
  4,916  
  4,539  
  4,615  
  5,229  
  5,271  
  9,454  
  10,691 

 
 Savings accounts 
  7,575  
  7,202  
  7,599  
  8,070  
  7,793  
  14,777  
  14,211 

 
 Time deposits 
  2,451  
  2,517  
  2,639  
  2,723  
  2,830  
  4,969  
  5,869 

 
 Total Deposit Costs 
  19,388  
  18,502  
  18,977  
  20,571  
  20,497  
  37,890  
  39,889 

 
   
     
     
     
     
     
     
    

 
 Borrowings 
  3,179  
  2,950  
  3,497  
  2,163  
  1,950  
  6,129  
  3,917 

 
 Total Funding Costs 
  22,567  
  21,452  
  22,474  
  22,734  
  22,447  
  44,019  
  43,806 

 
   
     
     
     
     
     
     
    

 
 Net Interest Income 
 $33,755  
 $32,074  
 $30,852  
 $29,032  
 $25,180  
 $65,829  
 $51,544 

 
   
     
     
     
     
     
     
    

 
 Net Interest Margin 
     
     
     
     
     
     
    

 
 Loans held for sale 
  6.07% 
  6.06% 
  6.12% 
  6.36% 
  6.47% 
  6.07% 
  4.06%

 
 Loans 
  5.91% 
  5.87% 
  5.86% 
  5.90% 
  5.60% 
  5.89% 
  5.87%

 
 Investments 
  4.41% 
  4.39% 
  3.31% 
  3.04% 
  3.10% 
  4.40% 
  3.13%

 
 Other Earning Assets 
  3.53% 
  3.73% 
  3.83% 
  3.98% 
  4.00% 
  3.63% 
  4.00%

 
 Total Earning Assets 
  5.75% 
  5.72% 
  5.66% 
  5.67% 
  5.41% 
  5.74% 
  5.55%

 
   
     
     
     
     
     
     
    

 
 NOW 
  2.08% 
  2.05% 
  1.95% 
  2.16% 
  2.25% 
  2.07% 
  2.26%

 
 MMDA 
  2.54% 
  2.45% 
  2.47% 
  2.74% 
  2.79% 
  2.50% 
  2.79%

 
 Savings 
  3.20% 
  3.17% 
  3.23% 
  3.47% 
  3.54% 
  3.18% 
  3.50%

 
 CDs 
  3.16% 
  3.23% 
  3.31% 
  3.33% 
  3.45% 
  3.19% 
  3.56%

 
 Cost of Interest Bearing Deposits 
  2.69% 
  2.65% 
  2.66% 
  2.88% 
  2.94% 
  2.67% 
  2.94%

 
 Cost of Deposits 
  2.25% 
  2.23% 
  2.26% 
  2.46% 
  2.52% 
  2.24% 
  2.52%

 
   
     
     
     
     
     
     
    

 
 Other Funding 
  5.80% 
  6.60% 
  6.74% 
  7.29% 
  6.65% 
  6.16% 
  6.73%

 
 Total Cost of Funds 
  2.46% 
  2.46% 
  2.52% 
  2.62% 
  2.67% 
  2.46% 
  2.67%

 
   
     
     
     
     
     
     
    

 
 Net Interest Margin 
  3.45% 
  3.43% 
  3.28% 
  3.18% 
  2.86% 
  3.44% 
  3.00%

 
 Net Interest Spread 
  2.84% 
  2.83% 
  2.72% 
  2.62% 
  2.32% 
  2.84% 
  2.46%

 

 

 12 

  

 

 

Primis Financial Corp.                   

(Dollars
in thousands, except per share data)

 

 
   
 For Three Months Ended:  
 For Six Months Ended: 

 
   
 2Q 2026  
 1Q 2026  
 4Q 2025  
 3Q 2025  
 2Q 2025  
 2Q 2026  
 2Q 2025 

 
 Reconciliation of Non-GAAP items: 
    
    
    
    
    
    
   

 
 Net income available to Primis' common shareholders 
 $9,426  
 $7,312  
 $29,540  
 $6,830  
 $2,437  
 $16,738  
 $25,073 

 
 Non-GAAP adjustments to Net Income: 
     
     
     
     
     
     
    

 
 Loss on sale of investment securitie