Primis Financial Corp. · NASDAQ:FRST
Primis Financial — Q2 2025 Earnings Presentation
21 slides from Primis Financial's earnings presentation, Jul 24, 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, Key Metrics and Valuation
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 20. (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 20. • Attractive Entry Point Attractive entry point for a bank uniquely positioned in our region at 102% of TB
Slide 6: Pre-Tax Pre-Provision Earnings Run Rate
6 (1) See reconciliation of Non - GAAP financial measures beginning on slide 20. Q2 2025 $11,591 Reported PTPP Earnings (7,450) PFH Gain 232 Nonrecurring $4,373 Operating PTPP Earnings 2,037 Consumer Program Reversal 289 Core Deposit Intangibles 1,700 Normalized Expense $8,399 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 %'s 35,533 22,347 1
Slide 8: Core Bank Balance Sheet & Earnings
8 Core Bank results based on management reporting excluding business lines and with estimated corporate allocations. Core Bank Balance Sheet & Earnings Core Bank Developments • Core Bank is 100% core funded with customers that walk in our branches or use our technology • V1BE (proprietary branch del
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
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 20 • 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: Virtually No Growth in 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 Loan Composition
16 Core NCOs / Average Loans (1) Criticized & Classified Loans / Total Loans (Ex. PPP) 3.02% 3.20% 3.32% 3.09% 2.87% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 (0.07%) 0.11% 0.05% 0.06% 0.17% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Core C/O's (1) See reconciliation of Non - GAAP financial measures beginning on slide 20. C
Slide 17: Loans with Virtually No Credit Risk
17 Dollars in millions. Loans with Virtually No Credit Risk to Primis Bank • Intentional strategy to focus the Bank’s growth on lower risk asset classes drives confidence in long - term asset quality • Cumulative losses (excluding loan sales) of only $0.3 million on this portfolio since January 2020
Slide 18: Consumer Program Loans
18 • 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 19: TBV and Capital Levels
19 (1) See reconciliation of Non - GAAP financial measures beginning on slide 20 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 from
Slide 20: Net Income Reconciliation
20 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Reconciliation of Non - GAAP items: $8,427 $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 21: Efficiency Ratio and EPS Reconciliation
21 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Reconciliation of Non - GAAP items: 73.37% 55.39% 96.36% 82.98% 83.42% Efficiency ratio 14.51% 36.58% 2.54% (2.87%) (3.79%) Effect of adjustment for nonrecurring income and expenses 87.88% 91.97% 98.90% 80.11% 79.63% Operating efficiency ratio $0.34 $0.92 ($0.94) $0.