Business
Primis Financial Corp. Reports Deconsolidation of Panacea
Primis Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company") today reported that it has deconsolidated Panacea Financial Holdings ("PFH") effective March 31, 2025. Accordingly, the Company will be revising its earnings release dated April 29, 2025 to reflect certain gains associated with recognizing the value of the Company's investment in PFH.
About this update from Primis Financial Corp.
[{"type":"text","content":"Records Pre-Tax Gain of Approximately $24.6 million","length":51,"tagName":"p","attribs":{}},{"type":"text","content":"MCLEAN, Va., May 13, 2025 /PRNewswire/ -- Primis Financial Corp. (NASDAQ: FRST) ("Primis" or the "Company") today reported that it has deconsolidated Panacea Financial Holdings ("PFH") effective March 31, 2025. Accordingly, the Company will be revising its earnings release dated April 29, 2025 to reflect certain gains associated with recognizing the value of the Company's investment in PFH.","length":439,"tagName":"p"},{"type":"image","alt":"Primis (PRNewsfoto/Primis Financial Corporation)","displaySize":"","headline":null,"caption":"Primis (PRNewsfoto/Primis Financial Corporation)","className":"","disableSlideshowImg":false,"size":{"original":{"width":400,"height":101,"url":"https://media.zenfs.com/en/prnewswire.com/bdf5ee89ebd96cfe72bd93c39037df69"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/RxuweEI83M4.2XtdMLGDDw--/YXBwaWQ9aGlnaGxhbmRlcjt3PTcwNTtoPTE3ODtjZj13ZWJw/https://media.zenfs.com/en/prnewswire.com/bdf5ee89ebd96cfe72bd93c39037df69","width":400,"height":101}},"href":"https://mma.prnewswire.com/media/1475393/Primis_Logo.html","hrefExternal":true,"rel":"nofollow"},{"type":"text","content":"The Company engaged an independent third party to evaluate the fair market value of its investment in PFH and it was determined that, as of March 31, 2025, the Company's investment was valued at $21.2 million. Additionally, the Company expects to recoup certain consolidated operating losses totaling $3.4 million. Portions of these amounts are non-taxable and, taken together, the Company expects the after-tax gain recorded upon deconsolidation to be approximately $20.0 million, or $0.81 per share.","length":522,"tagName":"p"},{"type":"text","content":"Commenting on the deconsolidation of PFH, Dennis J. Zember, Jr., President and CEO said, "Deconsolidating PFH is a welcome step in our path forward. The boost to capital levels and tangible book value is welcome, but importantly, it simplifies our financial statement presentation and positively impacts our reported operating ratios. Our ROA will improve by ten basis points and our operating efficiency ratio will decrease by approximately 14 points. Lastly, Primis Bank will conti...