Primis Financial Q2 Net Income Surges to $9.4M, NIM Expands 59bps
FRST sits 70% above its 52-week low of $9.55.
Summary
Primis Financial reported Q2 2026 net income of $9.4M ($0.38 EPS), up from $2.4M a year ago, driven by a 59bps NIM expansion and strong loan growth. Asset quality improved, but a material weakness in internal controls persists.
Key Events · Earnings and Guidance · FRST
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Net Income Surges to $9.4M
Q2 2026 net income available to common shareholders reached $9.4 million ($0.38 EPS), up from $2.4 million ($0.10 EPS) in Q2 2025, driven by higher net interest income and improved credit quality.
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Net Interest Margin Expands 59bps
Net interest margin widened to 3.45% from 2.86% a year ago, as earning asset yields rose 34bps while deposit costs fell 25bps, reflecting effective balance sheet management.
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Loan Growth Led by Mortgage Warehouse
Total loans held for investment grew 6% from year-end to $3.5 billion, with mortgage warehouse loans up 71% and Panacea division loans up 13%, offsetting declines in consumer and CRE portfolios.
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Asset Quality Improves Significantly
Nonperforming assets to total assets (ex-SBA guarantees) fell to 1.45% from 2.03% at year-end, driven by a $23 million decline in nonaccrual loans after a large commercial relationship refinanced with another bank.
Analysis · FRST · Finance
A standout second quarter saw net income available to common shareholders climb to $9.4 million, or $0.38 per share, from $2.4 million a year ago. The primary catalyst was a 59-basis-point expansion in net interest margin to 3.45%, powered by higher earning asset yields and lower deposit costs. Loan growth remained robust, highlighted by a 71% jump in mortgage warehouse balances and a 13% increase in Panacea division loans. Asset quality improved markedly, with nonperforming assets falling 58 basis points to 1.45% of total assets, thanks to the resolution of a large commercial relationship. The company continues to operate under a material weakness in internal controls, which management is actively remediating.
At the time of this filing, FRST was trading at $16.25 on NASDAQ in the Finance sector, with a market capitalization of approximately $404.3M. The 52-week trading range was $9.55 to $16.77. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.