Primis Financial Corp. · NASDAQ:FRST
Primis Financial — Q2 2025 Earnings Presentation
21 slides from Primis Financial's earnings presentation, Jul 25, 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 27A of the Securities Act of 1933, as amended, and Section 21E of the Secu
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 pre- provi
Slide 4: Company Overview
Company Overview Corp. Headquarters: McLean, VA Bank Headquarters: Glen Allen, VA Branches: 24 Ticker (NASDAQ): FRST Valuation Market Capitalization ($MM): $294 Price / Book Value per Share 0.77x Price / Tangible Book Value(1): 1.02x Price / 2025 Estimated EPS(2): 8.60x Price / 2026 Estimated EPS(2)
Slide 5: Our Value Proposition
Our Value Proposition Significant Upside Just to Peer Group Average(1) • Attractive Entry Point 3.08 Attractive entry point for a bank uniquely positioned in our region at 102% of TBV(2) • Organic Growth Story Steady growth focused on prime quality assets with higher margins and low incremental effi
Slide 6: Expectation of Future Operating Earnings
Expectation of Future Operating Earnings(1) Q2 2025 • Operating earnings going forward will benefit from Reported PTPP Earnings $11,591 lower Consumer Program reversals, no core deposit PFH Gain (7,450) intangible amortization and lower period expenses Nonrecurring 232 Operating PTPP Earnings $4,373
Slide 7: How Profitable Is Our Loan and Deposit Pricing?
Spreads on All Activity are Over 4.50% for 3 Quarters How Profitable Is Our Loan and Deposit Pricing? Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 5.14% New and Renewed Loans 262,544 174,870 178,162 162,034 243,758 New and Renewed Loan Yields 7.25% 7.21% 7.61% 7.46% 7.57% 4.66% 4.68% Core Bank Deposit Production $
Slide 8: Core Bank Balance Sheet & Earnings
Core Bank Balance Sheet & Earnings Core Bank Developments QoQ Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 change • Core Bank is 100% core funded with customers that Loans $2,224.8 $2,216.0 $2,186.7 $2,148.3 $2,118.4 (4.8%) walk in our branches or use our technology Earning Assets $2,569.6 $2,543.2 $2,537.4 $2,471
Slide 9: Impressive Operating Results – Early Stage Highly Scalable Business
Impressive Operating Results – Early Stage Highly Scalable Business – Accretive to all Operating Ratios • June operating ratios on $156 million in average O/S: $1,108 • AT ROAA: 2.44% Monthly Pretax Contribution from Warehouse (000's) • Yields: 7.53% • Margin: 4.18% (with FTP funding): • Efficiency:
Slide 10: Growth Despite Rate Environment
Growth Despite Rate Environment Quarterly Developments in Mortgage $323.5 • Pickup in Q2’25 results from: Quarterly Lock Volume (in Millions) • 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. $212.1 $205.7
Slide 11: Panacea Financial Loan Growth
Total Loans ($MM) $505 • Customer deposits outstanding at Q2’25 of $107 million up 58% since Q2’24 $474 • Banking over 7,000 Doctors compared to 5,000 in Q2’24 $434 • #1 Ranked "Bank for Doctors" on Google $392 $376 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 11
Slide 12: Rebuilding Earning Assets with Quality and Yield
Rebuilding Earning Assets with Quality and Yield $3.77 • Rebuilding earning assets back slowly with growth equally from the core bank, mortgage warehouse and Panacea $3.72 $3.69 $3.63 $3.61 • Expect growth to moderate by year end and manage earning assets in the $3.59 $3.60 $3.75 billion to $3.85 bi
Slide 13: Core Bank Deposit Composition – Q2'25
Core Bank Deposit Composition – Q2’25 NIB Growing Faster than Most of the Industry Savings CDs 13% 13% NIB Deposits (millions) $475.4 $454.0 MMDA $450.1 31% NOW 24% $436.8 $435.2 NIB 19% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 • Core Bank benefitting from V1BE convenience for customer in our • Our Bank is 100
Slide 14: Our Margin Advantages
Our Margin Advantages • Zero pressure across the Company to: Core Net Interest Margin(1) • Compete on rate on any loan offerings in any division • Up-price any deposit relationship to preserve funding levels 3.15% 3.13% • All lending and funding activities are accretive to our current margin • Loan
Slide 15: Core Opex Burden – 5 Quarters
Virtually No Growth in Core Opex Burden Core Opex Burden – 5 Quarters ($ in thousands) Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Core Opex Burden (in Millions) $23.5 Reported Noninterest Expense $29,662 $30,603 $37,841 $32,516 $31,927 PFH Consolidated Expenses ($2,347) ($2,576) ($3,641) ($4,754) - Noninterest E
Slide 16: Criticized & Classified Loans / Core NCOs
Criticized & Classified Loans / Total Loans (Ex. PPP) Other Consumer 2% CRE - OO 11% 15% 3.32% 3.20% 3.09% CRE - NOO 3.02% 19% 2.87% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 C&I 26% Core NCOs / Average Loans (1) C&D 4% 0.17% 0.11% 0.05% 0.06% (0.07%) Residential 23% Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Core C/O's (1)
Slide 17: 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 • ACL covers over 100 years of worth of losses at current levels • Finished
Slide 18: Consumer program promotional loans
• Promotional loans with full deferral have driven volatility • Higher defaults when exiting the promotional window Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 have weighed on credit costs Total Loans (1) $194,217 $175,204 $172,634 $148,265 $123,892 • Required GAAP interest recognition at promo expiration followe
Slide 19: TBV and Capital Levels
Increasing levels of TBV TBV and Capital Levels • Management is slowly building earning asset levels back with substantial operating leverage to achieve ROA goals $11.59 $11.72 $11.38 $11.40 $10.42 • Will have slower growth rates in 2026 and beyond but drive profitability from improved deposit mix a
Slide 20: Reconciliation of Non-GAAP items
Reconciliation of Non-GAAP items: Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Net income (loss) attributable to Primis' common shareholders $3,436 $1,228 ($23,335) $22,636 $8,427 Non-GAAP adjustments to Net Income: Branch Consolidation / Other restructuring $0 $0 $0 $144 $0 Professional fee expense related to acc
Slide 21: Reconciliation of Non-GAAP items
Reconciliation of Non-GAAP items: Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Efficiency ratio 83.42% 82.98% 96.36% 55.39% 73.37% Effect of adjustment for nonrecurring income and expenses (3.79%) (2.87%) 2.54% 36.58% 14.51% Operating efficiency ratio 79.63% 80.11% 98.90% 91.97% 87.88% Earnings per common share -