Primis Financial (FRST) AI Stock Analysis

• Market Cap: $277.48M
• Dividend Yield: 3.6%
• Average Volume (3M): 111.80K
• Price to Earnings (P/E): 93.8
• Beta (1Y): 1.08
• Revenue Growth: 4.72%
• EPS Growth: N/A
• Country: US
• Employees: 592
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.11
• Shares Outstanding: 24,643,185
• 10 Day Avg. Volume: 58,553
• 30 Day Avg. Volume: 111,796
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 3.10
• Enterprise Value/Ebitda: 127.80
• 1Y Price Target: $11.50
• Price Target Upside: 3.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $11.50 ▲(3.42% Upside)

Primis Financial's overall stock score reflects a challenging financial performance with declining profitability and inconsistent revenue growth. While technical indicators show some positive trends, the high P/E ratio suggests overvaluation. The earnings call provided a more optimistic outlook with strong net income growth and operational improvements, which partially offsets the financial challenges.

Primis Financial Business Overview & Revenue Model

Company Description

Primis Financial Corp. operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States. Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits. The company also offers commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services. In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking. As of December 31, 2021, it operated forty full-service branches in Virginia and Maryland. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp. Primis Financial Corp. was founded in 2004 and is based in McLean, Virginia.

How the Company Makes Money

Primis Financial generates revenue primarily through the origination and servicing of mortgage loans. The company earns income from origination fees charged to borrowers at the time of loan closing, as well as interest income accrued on the loans over their lifetime. Additionally, Primis may generate revenue from servicing fees for managing the loans on behalf of investors. Key revenue streams include residential mortgages, commercial loans, and ancillary services such as loan refinancing. Partnerships with technology providers and real estate platforms also play a significant role in expanding their reach and enhancing efficiencies, contributing positively to their overall earnings.

Primis Financial Financial Statement Overview

Summary

Primis Financial faces a challenging financial environment. The income statement shows declining profitability and inconsistent revenue growth. The balance sheet reflects moderate leverage but weakening equity, while the cash flow indicates strong operational cash generation, highlighting the need for strategic management to stabilize finances.

Income Statement

The income statement reveals a challenging period for Primis Financial, with fluctuating revenues and declining margins over recent periods. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of approximately 58.3% and a negative net profit margin of -1.95%, indicating struggles in converting revenue into profit. Revenue growth has been inconsistent, with recent declines contributing to a negative trajectory.

Balance Sheet

Primis Financial's balance sheet shows a moderate level of stability with a debt-to-equity ratio of approximately 0.27, reflecting manageable leverage. However, the declining stockholders' equity over recent periods poses a concern. The equity ratio is around 9.67%, indicating a relatively low equity buffer compared to total assets, which could be a potential risk.

Cash Flow

The cash flow statement highlights a positive operating cash flow, with an operating cash flow to net income ratio of -18.67 in the TTM period, suggesting efficient cash generation relative to reported losses. However, the free cash flow growth has been erratic, and the company faces challenges in sustaining positive cash flow trends given the considerable financing outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	196.67M	107.70M	143.96M	125.81M	123.71M	99.80M
Gross Profit	125.13M	96.74M	135.79M	115.42M	110.47M	91.79M
EBITDA	3.04M	-19.98M	-2.09M	24.77M	47.78M	38.09M
Net Income	3.96M	-16.20M	-7.83M	14.15M	31.25M	23.29M
Balance Sheet
Total Assets	3.68B	3.70B	3.86B	3.57B	3.41B	3.09B
Cash, Cash Equivalents and Short-Term Investments	57.04M	243.96M	230.28M	314.17M	801.50M	349.42M
Total Debt	95.95M	95.88M	157.67M	426.08M	201.53M	223.57M
Total Liabilities	3.31B	3.33B	3.46B	3.18B	201.53M	223.57M
Stockholders Equity	355.60M	360.46M	376.16M	394.40M	411.88M	390.55M
Cash Flow
Free Cash Flow	55.00M	0.00	26.89M	12.09M	24.86M	28.58M
Operating Cash Flow	55.00M	19.53M	28.82M	13.11M	27.32M	29.66M
Investing Cash Flow	-190.01M	0.00	-312.76M	-617.51M	10.46M	-204.27M
Financing Cash Flow	-179.35M	-140.88M	283.63M	152.10M	296.21M	338.87M

Primis Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRST, the sentiment is Positive. The current price of 11.12 is above the 20-day moving average (MA) of 11.09, above the 50-day MA of 11.07, and above the 200-day MA of 10.43, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.80 is Neutral, neither overbought nor oversold. The STOCH value of 73.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRST.

Primis Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCNB	77 Outperform	$226.11M	10.67	8.28%	5.49%	14.84%	169.99%
MBCN	77 Outperform	$251.81M	13.89	8.60%	2.62%	7.42%	15.82%
PWOD	76 Outperform		―		―	14.11%	29.41%
CHMG	72 Outperform	$253.25M	22.28	5.18%	2.33%	-6.64%	-51.99%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
EVBN	60 Neutral		―		―	-6.85%	-51.70%
FRST	57 Neutral	$277.48M	93.83	0.79%	3.60%	4.72%	―

Primis Financial Corporate Events

Primis Financial Reports Strong Q2 2025 Growth

Primis Financial Corp. reported significant financial growth for the second quarter of 2025, with net income rising to $8.4 million from $3.4 million in the same quarter of 2024. The company declared a quarterly cash dividend of $0.10 per share, payable in August 2025. Key drivers of this growth included a successful sale of a portion of its ownership in Panacea Financial Holdings, increased mortgage lending, and strategic cost reductions. The company’s core banking operations showed improved profitability, driven by a robust deposit base and low-cost funding strategies. Primis is also enhancing its proprietary banking technology, V1BE, to extend its reach and licensing potential. The company’s national strategies, including mortgage warehouse lending, have expanded significantly, supported by its digital platform, which has seen a substantial increase in deposits.

Primis Financial Updates Board Structure and Bylaws

On July 2, 2025, Primis Financial Corp. amended its Articles of Incorporation to remove the classified structure of its Board of Directors, effective from the 2026 annual meeting. The company also updated its bylaws to reflect this change. Additionally, the Board adopted the Primis Financial Corp. Omnibus Incentive Plan, which was approved by stockholders at the annual meeting on June 26, 2025.

Primis Financial Holds Annual Stockholders Meeting

On June 26, 2025, Primis Financial Corp. held its Annual Meeting of Stockholders, where 21,611,844 shares were represented. The stockholders elected four directors to the board, approved the amendment to declassify the board, ratified the appointment of Crowe, LLP as auditors, and approved the Omnibus Incentive Plan and executive compensation.