Primis Financial Corp.

What they do

Primis provides retail and commercial banking services to individuals and small/medium businesses across Virginia, Maryland, and the Greater Washington, D.C. market. It operates Primis Mortgage Company, a residential mortgage lender, and the Panacea Financial Division, offering products to healthcare professionals. The company also runs a digital deposit platform and a mortgage warehouse lending line.

Revenue drivers

• Core Community Bank — 24 branches in Virginia and Maryland, representing nearly two-thirds of total balance sheet; stable deposit base with low investor CRE concentration (23% of total loans, 188% of regulatory capital).
• Panacea Financial Division — Healthcare-focused brand with $544 million in loans and $128 million in deposits at year-end 2025, up from $434 million and $92 million respectively in 2024.
• Primis Mortgage Company (PMC) — Retail mortgage lender with funded production of approximately $1.2 billion in 2025, up from roughly $800 million in 2024.
• Mortgage Warehouse Lending — Lends to independent mortgage companies; at year-end 2025 had about $1.2 billion in approved lines, $318 million outstanding, and $29 million in low/no interest customer deposits.

Recent performance

In Q2 2026, Primis reported net income of $9.4 million ($0.38 diluted EPS), up from $2.4 million ($0.10) in Q2 2025; six-month net income was $16.7 million ($0.68) versus $25.1 million ($1.01) in the prior year period. Net interest margin improved to 3.45% in Q2 2026 from 2.86% a year earlier. Total assets were $4.35 billion at June 30, 2026, with deposits of $3.45 billion. Tangible common equity to tangible assets was 7.99% and tangible book value per share was $13.72.

Strategy

Primis aims to grow through three pillars: maintaining a strong community bank in desirable markets, supplementing it with higher-return business lines (Panacea, PMC, mortgage warehouse), and enhancing digital offerings to attract deposits at scale. Management plans to convert the entire bank to a digital, real-time core, which they expect to generate $6.1 million in earnings benefits split equally between revenue and expense gains, phased in from Q4 2026. The company focuses on leveraging management expertise, economies of scale, and strategic acquisitions.

Risks

• CRE and construction concentration — The company has a concentration of commercial real estate and construction/land development loans, which could lead to higher losses if those markets weaken.
• Unsecured consumer loans — A meaningful amount of consumer loans are unsecured, so defaults could result in unrecoverable losses.
• Third-party originated consumer loans — A portion of consumer loans originated by third parties includes a credit enhancement that may not be realizable, and many were originated during a zero-interest period, exposing the company to third-party credit risk on prepayments.
• Economic and market disruptions — Geopolitical events, tariffs, monetary policy, inflation, and potential recession could adversely affect borrowers, depositors, and the company's financial results.

Outlook

Management expects continued profitability improvement, citing strong Q2 2026 results with ROA of 0.90% and declining non-performing assets (down 37% in the quarter). The digital core conversion is projected to add $6.1 million in earnings benefits starting in Q4 2026. They highlight a loan pipeline of $158 million as of June 30, 2026, up 28% from March 31, 2026.