Primis Financial Reports Strong Q3 2025 Growth with Improved Margins and Asset Management

Primis Financial Corp. Reports Strong Q3 2025 Performance Driven by Improved Margins and Asset Growth

Primis Financial Corp. unveils a robust financial performance for the third quarter of 2025, reporting a net income of $7 million, or $0.28 per diluted share. This marks a remarkable increase from $1 million, or $0.05 per diluted share, in the same quarter of 2024. Over the first nine months of 2025, the company's net income totals $32 million, equating to $1.29 per diluted share, compared to $7 million, or $0.29 per diluted share, during the same period in 2024. CEO Dennis J. Zember, Jr. attributes this significant growth to a strategic focus on enhancing profitability and effective asset management.

The company's net interest margin demonstrates substantial improvement, rising to 3.18% in Q3 2025 from 2.97% a year prior. The core net interest margin also sees an increase, climbing from 2.80% to 3.15%. Notably, had it not been for interest reversals on nonaccrual loans, the core margin would have reached an impressive 3.23%. This positive trend results from Primis actively rebuilding its earning asset levels in a favorable deposit pricing environment. With further anticipated enhancements in Q4 2025, following recent rate cuts, Primis appears well-positioned for continued growth.

Operating leverage is evident as Primis navigates its financial landscape, witnessing a revenue increase of $5 million while expenses rise minimally by only $400,000. This demonstrates the effectiveness of the company's scalable strategies that support its growth potential. Additionally, the spread revenue from its Life Premium Finance (LPF) segment exceeds pre-sale levels from fall 2024, despite only replacing two-thirds of the balances. This resilience underscores Primis Financial’s ability to adapt and thrive in a competitive market. In line with its strong performance, the company declares a quarterly cash dividend of $0.10 per share, signaling its commitment to shareholder value.

In a broader context, Primis Financial's recent results reflect the ongoing trends within the financial services industry. The improved net interest margins and strategic asset management resonate with challenges and opportunities faced by banks and financial institutions in a fluctuating economic environment. As financial institutions grapple with changing interest rates and competitive pressures, Primis's proactive approach places it in a strong position to navigate these complexities.

Overall, Primis Financial's performance highlights its robust financial health and strategic focus on profitability amid evolving market conditions. The company's continued emphasis on operational efficiency and asset management bodes well for its future, as it seeks to enhance shareholder returns and solidify its standing in the financial services sector.