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Sep 30, 2025
Primis Q3 2025 Earnings Report
Primis Financial Corp. reported net income of $7 million, or $0.28 per diluted share, for the third quarter of 2025, showing significant improvement compared to the prior year.
Key Takeaways
Primis Financial Corp. delivered a strong third quarter in 2025, with net income significantly increasing to $7 million, or $0.28 per diluted share, compared to $1 million, or $0.05 per diluted share, in the same period last year. This improvement was driven by strong momentum across all business lines, particularly in mortgage banking and mortgage warehouse lending, and an improved net interest margin. The company also saw a recovery in credit losses and managed to control core operating expenses.
Net income available to common shareholders surged to $7 million, or $0.28 per diluted share, in Q3 2025, up from $1 million, or $0.05 per diluted share, in Q3 2024.
Net interest income increased to $29 million, and the net interest margin improved to 3.18% in Q3 2025, compared to 2.97% in Q3 2024.
Mortgage related income grew 31% to $9 million, and mortgage warehouse outstanding loan balances increased 77% from the previous quarter to $327 million.
The company reported a recovery of credit losses of $49 thousand, a significant improvement from a provision of $8 million in the prior year, driven by a changing loan portfolio mix.
Revenue by Segment
Forward Guidance
Primis Financial Corp. anticipates continued profitability improvement into 2026, driven by momentum in all business lines, strong operating leverage, and strategic initiatives such as licensing V1BE technology and expanding Panacea Financial's capital market strategies.
Positive Outlook
- Management estimates run-rate pre-tax earnings of $11 million in Q3, equating to an approximately 90 basis point return on assets, expected to drive higher profitability into 2026.
- Tremendous momentum in all business lines combined with strong operating leverage is expected to increase profitability.
- Implementation of enhancements to V1BE technology is expected to lead to the first customer onboard in the near future, generating new licensing revenue.
- Growth in mortgage warehouse lending is expected to far outpace runoff in other portfolios, benefiting revenues and margins.
- Additional rate adjustments made after the Federal Reserve's 0.25% rate reduction are expected to drive deposit costs lower in the fourth quarter with an estimated beta of 70%.
Challenges Ahead
- Legal fees associated with mortgage recruiting, totaling $1.1 million in Q3 2025, are expected to normalize in Q4 2025 and Q1 2026, indicating continued elevated expenses in the short term.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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