Primis Financial Corp. (FRST) | Investment Case

1. Company Snapshot

1.a. Company Description

Primis Financial Corp.operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States.Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits.

The company also offers commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans.It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services.In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking.

As of December 31, 2021, it operated forty full-service branches in Virginia and Maryland.The company was formerly known as Southern National Bancorp of Virginia, Inc.and changed its name to Primis Financial Corp.

Primis Financial Corp.was founded in 2004 and is based in McLean, Virginia.

Show Full description

1.b. Last Insights on FRST

Primis Financial Corp.'s recent performance was negatively impacted by a series of legal and regulatory issues. The company's failure to timely file its Form 10-K for the period ending December 31, 2024, led to a Nasdaq notice regarding delayed filing, which may result in delisting. Additionally, multiple law firms have commenced investigations into potential securities law violations, further exacerbating the company's challenges.

1.c. Company Highlights

Last Price	13.43
Change Percentage	1.36%
Open	13.35
Previous Close	13.25
Market Cap ( Millions)	332
Volume	104815
Year High	14.55
Year Low	7.59
M A 50	13.58
M A 200	11.5

FCF Yield	-5.42%
Dividend Yield	2.98%
ROE	15.78%
Debt / Equity	61.99%
Net Debt / EBIDTA	149.91%
Price To Book	0.78
Price Earnings Ratio	5.39
Price To FCF	-18.46
Price To sales	1.09
EV / EBITDA	5.69

2. Bank's Q4 Earnings: A Mixed Bag with Growth in Core Banking Business

The company's Q4 2025 net income came in at $29.5 million, or $1.2 per share, with a return on assets (ROA) of 3%. However, the results were affected by gains from the sale-leaseback and restructuring noise. The net interest margin (NIM) was 3.28%, up from 2.9% in the year-ago period, driven by a 13% annualized growth in average earning assets and a 10% annualized growth in deposits. The actual EPS came out at $0.1 relative to estimates at $0.34, a significant miss.

Publication Date: Mar -03

                                    📋 Highlights
                                    Net Income & ROA::
                                                Q4 2025 net income of $29.5M ($1.2/share) and 3% ROA, impacted by sale-leaseback gains and restructuring.
Deposit Growth & NIM::
                                                23% increase in checking accounts, 12% non-interest-bearing deposits, and a 3.28% net interest margin (up from 2.9% YoY).
Earning Assets Expansion::
                                                13% annualized growth in average earning assets and 10% deposit growth in Q4, with $331M in loans repricing to ~5% yield in 2026.
Mortgage Revenue & Core Expenses::
                                                $10M mortgage revenue (84% YoY growth) and 2026 core expenses guided at $23–24M (excluding mortgage volatility).
2026 Loan Growth Target::
                                                $100M core bank loan growth (~5–7% CAGR), focused on C&I and under-occupied properties, with $500M average mortgage warehouse balance.

                                

Core Banking Business Shows Strength

The core bank led the way in several key areas, including a 23% growth in checking accounts, a 12% increase in non-interest-bearing deposits. The company also reported growth in the loan portfolio, particularly in commercial and industrial (C&I) and under-occupied properties. The loan pipeline is strong, with approximately $331 million of loans repricing in 2026 with a weighted average yield just under 5%.

Non-Interest Income and Expenses

Non-interest income was $14.2 million for the quarter, excluding gains and losses from the sale-leaseback transaction and investment portfolio restructuring. Mortgage revenue was solid in Q4 at $10 million, with an 84% year-over-year increase in retail mortgage production. The company's core expenses were $28 million, excluding mortgage and Panacea division volatility and nonrecurring items. The company has guided 2026 quarterly expenses to be in the range of $23 to $24 million, adjusted for mortgage and Panacea.

Outlook and Valuation

The company is expecting further margin expansion in 2026, with a target sustainable ROA of 1%. Analysts estimate next year's revenue growth at 9.6%. Given the current valuation metrics, the Price-to-Tangible Book Value (P/TBV) is not directly available, but the Price-to-Book Ratio (P/B) is 0.78, indicating a relatively reasonable valuation. The Dividend Yield is 2.99%, which is attractive for income investors. The Net Interest Margin (NIM) of 3.28% is a positive indicator of the company's core banking business.

Loan Growth and Mortgage Banking

The company is anticipating mortgage warehouse to average $500 million across the year, with a seasonal peak of over $600 million in the summer. The company is also expecting around $100 million in core bank loan growth, or 5-7%, driven by C&I and under-occupied properties. The mortgage banking revenue is expected to be $150 million, with a pretax contribution of 50-60 basis points.

3. NewsRoom

Financial Contrast: Emergent Capital (OTCMKTS:EMGCQ) & Primis Financial (NASDAQ:FRST)

Feb -20

Source: defenseworld.net

Critical Contrast: Primis Financial (NASDAQ:FRST) versus Powell Max (NASDAQ:PMAX)

Feb -19

Source: defenseworld.net

Primis Financial Q4 Earnings Call Highlights

Feb -01

Source: defenseworld.net

Primis Financial Corp. (FRST) Q4 2025 Earnings Call Transcript

Jan -30

Source: seekingalpha.com

Primis Financial (FRST) Q4 Earnings Lag Estimates

Jan -30

Source: zacks.com

Primis Financial Corp. Reports Earnings per Share for the Fourth Quarter of 2025

Jan -29

Source: prnewswire.com

Primis Financial Corp. Announces Date for Fourth Quarter 2025 Earnings Release and Conference Call

Jan -12

Source: prnewswire.com

Primis Financial (FRST) Moves 6.2% Higher: Will This Strength Last?

Jan -02

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.78%)

6. Segments

Primis Bank

Expected Growth: 9.9%

Primis Bank's 9.9% growth is driven by strategic expansion into underserved markets, increased digital banking adoption, and a focus on commercial lending. Additionally, the bank's strong risk management practices and efficient cost structure have enabled it to maintain a high net interest margin, further contributing to its growth.

Primis Mortgage

Expected Growth: 7.43%

Primis Mortgage's 7.43% growth is driven by increasing demand for mortgage refinancing, low interest rates, and a strong housing market. Additionally, the company's expansion into new markets, improved operational efficiency, and strategic partnerships have contributed to its growth. Furthermore, the company's focus on digital transformation and customer experience has enhanced its competitiveness in the market.

7. Detailed Products

Payment Processing

Primis Financial Corp. offers payment processing services that enable businesses to accept and process payments securely and efficiently.

Merchant Services

Primis Financial Corp. provides merchant services that enable businesses to manage their payment processing, including credit card processing, debit card processing, and electronic check processing.

Point of Sale (POS) Solutions

Primis Financial Corp. offers POS solutions that provide businesses with a comprehensive payment processing system, including hardware and software solutions.

E-Commerce Solutions

Primis Financial Corp. provides e-commerce solutions that enable businesses to accept online payments securely and efficiently.

Gift and Loyalty Programs

Primis Financial Corp. offers gift and loyalty programs that enable businesses to reward customers and increase customer loyalty.

Mobile Payment Solutions

Primis Financial Corp. provides mobile payment solutions that enable businesses to accept mobile payments securely and efficiently.

8. Primis Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Primis Financial Corp. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and customer loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Primis Financial Corp.'s customers have significant bargaining power due to the availability of alternative financial services providers. The company's pricing strategy and customer retention efforts are crucial in maintaining a competitive edge.

Bargaining Power Of Suppliers

Primis Financial Corp. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong procurement practices and long-term contracts also help to mitigate supplier risks.

Threat Of New Entrants

While there are barriers to entry in the financial services industry, new entrants can still disrupt the market with innovative products and services. Primis Financial Corp. must continue to invest in digital transformation and innovation to stay competitive.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players and new entrants vying for market share. Primis Financial Corp. must focus on differentiating its products and services, improving operational efficiency, and investing in digital capabilities to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	27.27%
Debt Cost	7.84%
Equity Weight	72.73%
Equity Cost	7.84%
WACC	7.84%
Leverage	37.49%

11. Quality Control: Primis Financial Corp. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Home Bancorp

A-Score: 6.3/10

Value: 7.0

Growth: 5.9

Quality: 6.3

Yield: 4.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

First Mid Bancshares

A-Score: 6.2/10

Value: 7.4

Growth: 5.8

Quality: 7.1

Yield: 5.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

Ohio Valley Banc

A-Score: 6.1/10

Value: 4.1

Growth: 4.7

Quality: 6.8

Yield: 5.0

Momentum: 9.5

Volatility: 6.7

1-Year Total Return ->

ChoiceOne Financial Services

A-Score: 6.0/10

Value: 5.6

Growth: 7.6

Quality: 5.8

Yield: 8.0

Momentum: 2.5

Volatility: 6.7

1-Year Total Return ->

Orange County Bancorp

A-Score: 5.3/10

Value: 6.2

Growth: 6.2

Quality: 6.8

Yield: 4.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

Primis Financial

A-Score: 5.1/10

Value: 5.3

Growth: 3.9

Quality: 4.5

Yield: 7.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

37.29%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.84%

Primis Financial Corp. - US74167B1098

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FRST

1.c. Company Highlights

Strong Momentum

Average Yield

Fairly Valued

Earnings Miss

Revenues Beats

Average Growth

Average Quality

Stable Momentum

Weak Momentum

Revenues Miss

Lower Quality

Lower Growth

2. Bank's Q4 Earnings: A Mixed Bag with Growth in Core Banking Business

Core Banking Business Shows Strength

Non-Interest Income and Expenses

Outlook and Valuation

Loan Growth and Mortgage Banking

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.78%)

6. Segments

Primis Bank

Expected Growth: 9.9%

Primis Mortgage

Expected Growth: 7.43%

7. Detailed Products

Payment Processing

Merchant Services

Point of Sale (POS) Solutions

E-Commerce Solutions

Gift and Loyalty Programs

Mobile Payment Solutions

8. Primis Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Primis Financial Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.43$

Current Price

13.43$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA