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Mar 30, 2025
Primis Q1 2025 Earnings Report
Primis Financial Corp. reported its first quarter 2025 earnings, showing improved profitability despite challenges.
Key Takeaways
Primis Financial Corp. reported net income of $2.7 million, or $0.11 earnings per basic and diluted share, for the first quarter of 2025. This marks a significant improvement from a net loss of $23.3 million in the previous quarter. The company's normalized operations, excluding non-recurring costs, yielded a return on assets of 0.56%.
Net income available to common shareholders was $2.7 million, or $0.11 per basic and diluted share, for Q1 2025.
The company reclassified its consumer loan book back to held for investment, resulting in an additional $1.9 million provision for the portfolio.
Primis Mortgage earned approximately $0.8 million pre-tax, a significant improvement from a loss in the prior quarter.
Total deposits slightly decreased to $3.16 billion, but noninterest bearing demand deposits increased to $446 million.
Forward Guidance
The Company anticipates continued improvement in profitability and growth, driven by strategic initiatives and cost savings. The focus remains on increasing earning assets and optimizing operations.
Positive Outlook
- Expect earning assets to grow back to $3.75 billion, adding 21 basis points to ROA.
- Primis Mortgage results are expected to add 0.15% to ROA in 2025, up from 0.05% in 2024.
- Anticipate very low expense growth in 2025 due to continued focus on operating expense management.
- Substantial reduction in technology spend and data processing expected from core consolidation, potentially saving $6-7 million per year.
- The company is well-positioned for future growth and meaningful results.
Challenges Ahead
- The consumer loan book overhang is largely behind, but promotional loans are still $17.2 million.
- The full impact of technology savings will not be realized until the second quarter of 2025.
- The company is still working to double its return on assets from the current normalized 0.56%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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