Primis Financial Corp. · NASDAQ:FRST
Primis Financial — Q2 2025 Earnings Presentation
20 slides from Primis Financial's earnings presentation, Aug 11, 2025
Slide 1: Second Quarter 2025
Second Quarter 2025 NASDAQ: FRST
Slide 2: Forward-looking statements
This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward - looking statements” within the meaning of, and subject to the protections of, Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the
Slide 3: Non-GAAP financial measures
Statements included in this press release include non - GAAP financial measures and should be read along with the accompanying tables . Primis uses non - GAAP financial measures to analyze its performance . The measures entitled net income adjusted for nonrecurring income and expenses ; pre - tax pr
Slide 4: Company Overview and Key Metrics
4 Pricing as of July 22, 2025. Financial data as of or for the three months ended June 30, 2025. (1) See reconciliation of Non - GAAP financial measures beginning on slide 19. (2) Mean analyst estimates per Bloomberg. (3) Includes swept deposits Valuation Market Capitalization ($MM): Price / Book Va
Slide 5: Attractive Entry Point and Investment Case
5 (1) Peers based on FRST proxy compensation peer group (2) Using 6/30/25 Tangible Book Value with pricing at 7/22/25. See reconciliation of Non - GAAP financial measures beginning on slide 19. • Attractive Entry Point Attractive entry point for a bank uniquely positioned in our region at 104% of TB
Slide 6: Pre-Tax Pre-Provision Earnings
6 (1) See reconciliation of Non - GAAP financial measures beginning on slide 19. Q2 2025 $11,286 Reported PTPP Earnings (7,450) PFH Gain 232 Nonrecurring $4,068 Operating PTPP Earnings 2,037 Consumer Program Reversal 289 Core Deposit Intangibles 1,700 Normalized Expense $8,094 Adjusted Operating PTP
Slide 7: How Profitable Is Our Loan and Deposit Pricing?
7 Q2’25 Q1’25 Q4’24 Q3’24 Q2’24 243,758 162,034 178,162 174,870 262,544 New and Renewed Loans 7.57% 7.46% 7.61% 7.21% 7.25% New and Renewed Loan Yields 84,463 75,904 76,904 105,864 168,505 Core Bank Deposit Production $'s 2.40% 2.39% 2.04% 3.04% 4.20% Core Bank Deposit Production Costs 35,533 22,347
Slide 8: Core Bank Balance Sheet & Earnings
8 Core Bank results based on management reporting excluding business lines and with estimated corporate allocations. Q2’25 excludes effects of commercial real estate property downgraded to substandard in the quarter. Core Bank Balance Sheet & Earnings Core Bank Developments • Core Bank is 100% core
Slide 9: Mortgage Warehouse Results
9 • June operating ratios on $156 million in average O/S: • AT ROAA: 2.44% • Yields: 7.53% • Margin: 4.18% (with FTP funding): • Efficiency: 24.7% • O/H Ratio: 1.02% • Ending Q2 balance of $184 million with line usage improving each month • Plan to augment growth with larger top - tier lines and MSR
Slide 10: Quarterly Developments in Mortgage
10 Growth Despite Rate Environment • Pickup in Q2’25 results from: • Recruitment of #4 Nationwide VA lender in 1Q • Recruitment of #1 originator team in Nashville, Tn in 1Q • Top 7 originators up 55% over 2Q 24. • Demonstrated growth in difficult mortgage environment with disciplined recruiting • Re
Slide 11: Panacea Financial: Total Loans
11 $376 $392 $434 $474 $505 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Total Loans ($MM) • Customer deposits outstanding at Q2’25 of $107 million up 58% since Q2’24 • Banking over 7,000 Doctors compared to 5,000 in Q2’24 • #1 Ranked "Bank for Doctors" on Google
Slide 12: Rebuilding Earning Assets with Quality and Yield
12 • Rebuilding earning assets back slowly with growth equally from the core bank, mortgage warehouse and Panacea • Expect growth to moderate by year end and manage earning assets in the $3.75 billion to $3.85 billion for the coming quarters • Management expects this EA growth to carry the margin to
Slide 13: Core Bank Deposit Composition
13 Core Bank Deposit Composition – Q2’25 NIB Growing Faster than Most of the Industry • Our Bank is 100% core funded (zero brokered and limited municipal deposits) • Approximately 15% our commercial checking balances have our proprietary branching app • Even with vastly scalable lending strategies,
Slide 14: Our Margin Advantages
14 (1) See reconciliation of Non - GAAP financial measures beginning on slide 19 • Zero pressure across the Company to: • Compete on rate on any loan offerings in any division • Up - price any deposit relationship to preserve funding levels • All lending and funding activities are accretive to our c
Slide 15: Core Opex Burden
15 • Control of Opex burden drives significant operating leverage as we rebuild EA levels. • The Bank has methodically consolidated positions and systems for almost 8 quarters • Negotiated better contact terms with core provider and other vendors. Expect $0.92 million of savings in 3Q and $1.3 milli
Slide 16: Credit Quality and Office Exposure
Core NCOs / Average Loans (2) Remaining Office Exposure (1) (1) Excludes office real estate balances downgraded in Q2’25. (2) See reconciliation of Non - GAAP financial measures beginning on slide 19. CRE - OO 15% CRE - NOO 19% C&D 4% Residential 23% C&I 26% Consumer 11% Other 2% (0.07%) 0.11% 0.05%
Slide 17: Consumer Program Promotional Loans
17 • Promotional loans with full deferral have driven volatility • Higher defaults when exiting the promotional window have weighed on credit costs • Required GAAP interest recognition at promo expiration followed by large reversals at default in subsequent periods exacerbated revenue noise • Only $
Slide 18: TBV and Capital Levels
18 (1) See reconciliation of Non - GAAP financial measures beginning on slide 19. Increasing levels of TBV • Management is slowly building earning asset levels back with substantial operating leverage to achieve ROA goals • Will have slower growth rates in 2026 and beyond but drive profitability fro
Slide 19: Reconciliation of Non-GAAP Items
19 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Reconciliation of Non - GAAP items: $2,437 $22,636 ($23,335) $1,228 $3,436 Net income (loss) attributable to Primis' common shareholders Non - GAAP adjustments to Net Income: $0 $144 $0 $0 $0 Branch Consolidation / Other restructuring $232 $893 $1,782 $1,352 $1,453 P
Slide 20: Reconciliation of Non-GAAP Items (continued)
20 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Reconciliation of Non - GAAP items: 73.92% 55.39% 96.36% 82.98% 83.42% Efficiency ratio 14.75% 36.58% 2.54% (2.87%) (3.79%) Effect of adjustment for nonrecurring income and expenses 88.67% 91.97% 98.90% 80.11% 79.63% Operating efficiency ratio $0.10 $0.92 ($0.94) $0.