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Primis Financial (FRST)
NASDAQ:FRST
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Primis Financial
(NASDAQ:FRST)
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Rating:64Neutral
Price Target:
$12.50
▼(-6.58% Downside)
Primis Financial's overall stock score is driven by strong technical momentum and positive corporate events, such as the sale-leaseback transaction and dividend announcement. However, challenges in financial performance, particularly in revenue generation and cash flow management, along with a high P/E ratio, temper the overall outlook.
Positive Factors
Mortgage Division Expansion
The significant increase in mortgage production demonstrates Primis Financial's ability to scale operations and capture market share, indicating strong growth potential in its core business segment.
Sale-Leaseback Transaction
This transaction strengthens Primis Financial's balance sheet by generating capital and improving operating earnings, supporting future growth and financial stability.
Noninterest-bearing Deposit Growth
Growth in noninterest-bearing deposits improves the deposit mix, reducing funding costs and enhancing profitability, which is beneficial for long-term financial health.
Negative Factors
Declining Revenue
A decline in revenue growth indicates challenges in market competitiveness and product demand, potentially impacting long-term profitability and market position.
Cash Flow Challenges
Persistent cash flow issues can limit Primis Financial's ability to invest in growth opportunities and meet financial obligations, affecting long-term sustainability.
Credit Concerns
Credit concerns with nonaccrual loans could lead to increased provisioning and impact financial results, posing risks to asset quality and profitability.
Primis Financial (FRST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$265.16M
Dividend Yield2.99%
Average Volume (3M)78.85K
Price to Earnings (P/E)31.0
Beta (1Y)1.15
Revenue Growth9.90%
EPS GrowthN/A
CountryUS
Employees592
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.28
Shares Outstanding24,643,185
10 Day Avg. Volume73,083
30 Day Avg. Volume78,846
Financial Highlights & Ratios
PEG Ratio-0.17
Price to Book (P/B)0.82
Price to Sales (P/S)1.13
P/FCF Ratio15.70
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue1.45
Enterprise Value/Gross Profit3.25
Enterprise Value/Ebitda120.28
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Primis Financial Business Overview & Revenue Model
Company DescriptionPrimis Financial (FRST) is a financial services company specializing in mortgage banking and related financial services. The company primarily operates in the residential mortgage market, offering a range of products including conventional mortgages, government-backed loans, and refinancing options. Primis is committed to providing innovative solutions to enhance the borrowing experience, utilizing technology to streamline the application and approval processes.
How the Company Makes MoneyPrimis Financial generates revenue primarily through interest income on loans it originates and services. The company earns money by charging borrowers interest on the mortgages it provides, which can include both fixed and variable rates depending on the loan products. Additionally, Primis may generate revenue through origination fees, which are charged at the time of loan closing. The company also benefits from servicing fees earned on the loans it manages over time. Significant partnerships with financial institutions and technology platforms further enhance its operational efficiencies and market reach, contributing to its overall earnings.
Primis Financial Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, with significant growth in net earnings, improved return metrics, and successful expansion in key business divisions. However, credit concerns with nonaccrual loans present a challenge that needs resolution.Q3-2025 Updates
Positive Updates
Significant Improvement in Net Earnings
Primis Financial reported $6.8 million in net earnings and $0.28 per share for Q3 2025, compared to $2 million and $0.08 per share in Q3 2024.
Improved Return Metrics
ROA and ROTCE improved to 70 basis points and 9.45%, with core ROA expected to reach 90 basis points, indicating strong ongoing performance.
Core Margin Growth
Core margin increased to 3.15%, up from 3.12% in Q2 2025 and 35 basis points higher than a year ago.
Noninterest-bearing Deposit Growth
Noninterest-bearing checking accounts grew by 16% year-over-year, improving the deposit mix and reducing the cost of deposits by 20%.
Mortgage Division Expansion
Monthly production in the mortgage division increased from $20 million to $100-$120 million, with pretax earnings of $1.9 million, marking the strongest quarter yet.
Panacea Division Success
Panacea's loan balances and deposits grew significantly, with deposits increasing by 50% year-over-year, and a cost of deposits at 1.37%, lower than the core bank.
Negative Updates
Credit Concerns with Nonaccrual Loans
Issues with two office real estate properties and two other loans, one with a $7.5 million exposure, led to credit concerns and nonaccrual status, impacting financial results.
Company Guidance
During the Primis Financial Corp. third quarter earnings call, the company reported $6.8 million in net earnings, translating to $0.28 per share, significantly up from $2 million and $0.08 per share in the same quarter of 2024. The company's Return on Assets (ROA) improved to 70 basis points, and Return on Tangible Common Equity (ROTCE) rose to 9.45%. They anticipate a core ROA of approximately 90 basis points, aligning with their 1% ROA target. The core margin increased to 3.15%, driven by replacing loans at yields 200 basis points higher, and is expected to improve by another 6 to 8 basis points, enhancing pretax earnings by $1.6 million per quarter. Noninterest-bearing checking accounts grew by 16%, enhancing the deposit mix and reducing the cost of deposits by nearly 20%. New and renewed loans were issued at 7.16%, while new deposit business averaged 2.51%, achieving spreads of 4.65%. The mortgage division increased production to $100 million-$120 million a month, with core results showing pretax earnings of $1.9 million. The mortgage warehouse ended with balances of $327 million, contributing $1.6 million in pretax earnings and achieving an efficiency ratio of 27%. Panacea's loan and deposit growth was notable, with loan balances averaging $530 million and deposits at $132 million, a 50% year-over-year increase, with deposit costs at 1.37%. Overall, Primis Financial Corp. highlighted significant improvements and strategic initiatives aimed at achieving long-term profitability goals.Primis Financial Financial Statement Overview
Summary
Primis Financial faces challenges with declining revenue and profitability, as evidenced by negative growth rates and low margins. The balance sheet remains stable with moderate leverage, but cash flow issues persist, impacting overall financial health. The company needs to address revenue generation and cash flow management to improve its financial standing.Income Statement
Primis Financial's income statement shows a decline in revenue with a negative growth rate of -10.29% TTM, indicating challenges in revenue generation. The gross profit margin improved to 51.80% TTM from 38.07% in the previous year, suggesting better cost management. However, the net profit margin remains low at 1.21% TTM, and EBIT margin is negative, reflecting ongoing profitability issues.45
Neutral
Balance Sheet
The balance sheet indicates a stable debt-to-equity ratio of 0.34 TTM, showing moderate leverage. Return on equity is low at 0.80% TTM, suggesting limited profitability from shareholders' equity. The equity ratio is healthy, indicating a strong capital structure with adequate equity backing total assets.60
Neutral
Cash Flow
Cash flow analysis reveals negative free cash flow growth of -170.45% TTM, highlighting cash management challenges. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. However, the free cash flow to net income ratio is slightly above 1, suggesting some ability to convert earnings into cash.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 268.67M | 254.11M | 237.87M | 141.64M | 123.71M | 131.40M |
| Gross Profit | 119.65M | 96.74M | 111.42M | 108.78M | 110.47M | 85.81M |
| EBITDA | 3.23M | -19.98M | -2.09M | 24.77M | 47.61M | 26.91M |
| Net Income | 2.97M | -16.20M | -7.83M | 14.15M | 31.11M | 22.98M |
Balance Sheet | ||||||
| Total Assets | 3.87B | 3.69B | 3.86B | 3.57B | 3.41B | 3.09B |
| Cash, Cash Equivalents and Short-Term Investments | 336.15M | 243.22M | 305.97M | 314.17M | 801.50M | 349.42M |
| Total Debt | 128.03M | 128.56M | 160.72M | 432.52M | 211.49M | 239.63M |
| Total Liabilities | 3.50B | 3.33B | 3.46B | 3.18B | 3.00B | 2.70B |
| Stockholders Equity | 376.42M | 351.76M | 376.16M | 388.97M | 411.88M | 390.55M |
Cash Flow | ||||||
| Free Cash Flow | -37.83M | 18.34M | 26.89M | 11.42M | 24.86M | 25.11M |
| Operating Cash Flow | -36.63M | 19.53M | 28.82M | 12.43M | 27.32M | 26.20M |
| Investing Cash Flow | 160.54M | 108.30M | -312.76M | -616.86M | 10.53M | -200.81M |
| Financing Cash Flow | -96.42M | -140.88M | 283.63M | 152.10M | 296.21M | 338.87M |
Primis Financial Technical Analysis
Positive
13.38
Price Trends
10.82
Positive
10.87
Positive
10.19
Positive
Market Momentum
0.56
Negative
80.42
Negative
95.07
Negative
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 13.38 is above the 20-day moving average (MA) of 11.47, above the 50-day MA of 10.82, and above the 200-day MA of 10.19, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 80.42 is Negative, neither overbought nor oversold. The STOCH value of 95.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRST.
Primis Financial Risk Analysis
Primis Financial disclosed 38 risk factors in its most recent earnings report. Primis Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Primis Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $292.12M | 10.09 | 11.48% | 2.81% | 8.17% | 21.95% | |
78 Outperform | $242.13M | 18.09 | 5.69% | 2.24% | -6.25% | -38.79% | |
75 Outperform | $317.17M | 17.59 | 8.27% | 2.28% | 7.29% | 33.75% | |
74 Outperform | $251.05M | 9.65 | 11.95% | 3.35% | 17.97% | 68.34% | |
70 Neutral | $287.92M | 8.76 | 11.15% | 2.85% | 12.91% | 21.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $265.16M | 30.96 | 2.25% | 2.99% | 9.90% | ― |
* Financial Sector Average
FRST
Primis Financial
13.38
1.38
11.50%
PKBK
Parke Bancorp
25.23
3.67
17.02%
TSBK
Timberland Bancorp
37.32
5.86
18.63%
CHMG
Chemung Financial
57.60
4.90
9.30%
FDBC
Fidelity D & D Bancorp
48.72
-4.22
-7.97%
ISBA
Isabella Bank
49.06
25.16
105.27%
Primis Financial Corporate Events
Business Operations and StrategyFinancial Disclosures
Primis Financial Completes Sale-Leaseback for $50 Million Gain
Positive
Dec 8, 2025
On December 5, 2025, Primis Bank completed a sale-leaseback transaction involving 18 retail banking branches, generating a pre-tax gain of approximately $50 million. This strategic move is part of Primis Financial‘s broader effort to restructure its balance sheet, improve earnings, and bolster capital levels to support future growth. The transaction is expected to enhance the company’s financial metrics, including an increase in tangible book value and earnings per share. Additionally, Primis plans to restructure its investment and insurance portfolios and refinance its debt, aiming to further strengthen its financial position and operational efficiency.
DividendsBusiness Operations and StrategyFinancial Disclosures
Primis Financial Announces Quarterly Dividend Amid Growth
Positive
Oct 23, 2025
On October 23, 2025, Primis Financial Corp. announced a quarterly cash dividend of $0.10 per share, payable on November 21, 2025, reflecting its improved financial performance. The company reported significant growth in net income and earnings per share for the third quarter of 2025, driven by improved net interest margins, increased mortgage volumes, and strategic divestments. Primis has demonstrated strong operational momentum across its business lines, including its core community bank, mortgage operations, and digital platform, positioning itself for continued profitability and growth into 2026.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.