Primis Financial announces deconsolidation of Panacea Financial Holdings

Primis Financial (FRST) reported that it has deconsolidated Panacea Financial Holdings, effective March 31. Accordingly, the company will be revising its earnings release dated April 29 to reflect certain gains associated with recognizing the value of the company’s investment in PFH. The Company engaged an independent third party to evaluate the fair market value of its investment in PFH and it was determined that, as of March 31, 2025, the Company’s investment was valued at $21.2 million. Additionally, the company expects to recoup certain consolidated operating losses totaling $3.4M. Portions of these amounts are non-taxable and, taken together, the company expects the after-tax gain recorded upon deconsolidation to be approximately $20M, or 81c per share. Commenting on the deconsolidation of PFH, Dennis Zember, Jr., President and CEO said, “Deconsolidating PFH is a welcome step in our path forward. The boost to capital levels and tangible book value is welcome, but importantly, it simplifies our financial statement presentation and positively impacts our reported operating ratios. Our ROA will improve by ten basis points and our operating efficiency ratio will decrease by approximately 14 points. Lastly, Primis Bank will continue to be the exclusive banking partner for all loans and deposits through its Panacea division.”