FRST earnings analysis
What we found in FRST's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Primis delivered a substantially improved second quarter, with diluted EPS rising to $0.38 from $0.10 year over year and $0.30 in Q1 2026. Net interest income and margin expanded materially, mortgage banking returned to profitability, loan growth accelerated and nonperforming assets declined. However, operating cash flow was negative $60.066 million, FHLB borrowings increased to $300 million, commercial real estate remains 35% of loans, and the previously disclosed material weakness in internal controls remains unresolved.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Sharp year-over-year earnings improvement
- Q2 net income attributable to common shareholders rose to $9.426 million, or $0.38 diluted EPS, from $2.437 million and $0.10 in Q2 2025. EPS also increased from $0.30 in Q1 2026.
- Margin and net interest income expanded
- Net interest income increased $8.575 million year over year to $33.755 million, while net interest margin expanded 59 basis points to 3.45% from 2.86%. Management cited higher earning-asset balances, loan repricing and favorable deposit pricing.
- Mortgage segment returned to profitability
- Primis Mortgage generated $11.388 million of mortgage banking income, up from $7.893 million, while closed loan volume for the first six months increased 61% year over year to $788 million. Segment net income improved to $2.534 million from a $2.929 million loss.
- Earning assets grew materially
- Total assets increased $306.226 million, or 8%, to $4.354 billion, driven by net loans increasing $182.624 million to $3.420 billion and loans held for sale increasing $65.924 million to $231.990 million.
- Nonperforming assets declined
- Asset quality improved: nonaccrual loans declined $22.976 million to $61.847 million, while nonperforming loans excluding SBA-guaranteed amounts fell to 1.45% of total assets from 2.03%. The allowance covered 74.32% of nonaccrual loans versus 54.09% at year-end.
- Liquidity and deposit funding improved
- Cash and cash equivalents increased $33.218 million to $176.825 million. Deposits rose $50.756 million to $3.446 billion, including $93 million of year-over-year growth in average noninterest-bearing deposits, helping support loan growth.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Negative operating cash flow
- Operating cash flow was negative $60.066 million for the six months ended June 30, 2026, versus negative $6.587 million in the prior-year period. The company does not disclose free cash flow, and loan originations and growth consumed significant cash.
- Greater borrowing and funding reliance
- FHLB advances increased $275 million from December 31, 2025 to $300 million at June 30, 2026, while the gross-loans-to-deposits ratio rose to 100.6% from 96.7%. This indicates greater reliance on wholesale borrowing to fund loan growth.
- Commercial real estate concentration
- Commercial real estate represented 35% of the loan portfolio at June 30, 2026. Commercial real estate non-owner-occupied loans included $69.832 million classified as substandard and $39.102 million past due 90 days or more.
- Credit losses remain material
- Nonaccrual loans remained $61.847 million and total nonperforming loans were $67.674 million at June 30, 2026. The quarter also included $4.369 million of commercial-loan charge-offs and $2.440 million of consumer-loan charge-offs.
- Unremediated internal-control weakness
- Disclosure controls and procedures were concluded to be ineffective as of June 30, 2026 because a previously identified material weakness had not been fully remediated. Management stated the weakness will not be remediated until controls operate effectively for a sufficient period.
- Uninsured and digital deposit exposure
- The company held $886 million of uninsured deposits, equal to 26% of total deposits, at June 30, 2026. In addition, approximately $1.0 billion of deposits came from the digital banking platform, including customers outside the local branch footprint.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.38
- Segment
- Primis Mortgage: mortgage banking income $11.388 million in Q2 2026 versus $8.391 million in Q2 2025; net income attributable to common shareholders was $2.534 million versus a $2.929 million loss.
- Segment
- Primis Bank: net interest income $31.969 million in Q2 2026 versus $25.008 million in Q2 2025; net income attributable to common shareholders was $9.181 million versus $4.621 million.
- Segment
- Other: loss attributable to common shareholders was $2.289 million in Q2 2026 versus no separately reported loss in Q2 2025.
What they said about what is next.
No explicit quantitative company-wide revenue or EPS guidance was provided. Management stated that Panacea and SBA loan sales are expected to continue during the last six months of 2026, that a $33 million Panacea loan portfolio classified as held for sale is expected to sell in Q3 2026, and that bank-owned life insurance income is expected to improve further in the second half of 2026.
The filing reads better than the one before it.
What came before.
- 10-Q · May 8, 2026
- Primis Financial Corp. reported strong Q1 2026 results, with net income of $7 million or $0.30 per share, compared to $22.6 million or $0.92 per share in Q1 2025. This reflects growth in net interest income driven by…
- 10-K · March 16, 2026
- Primis Financial reported a clear recovery in 2025 versus 2024: quarterly revenue accelerated to $103M in 2025Q4 (from $64M in 2024Q4) and full-year revenue increased to roughly $313M (sum of 2025 quarters 80M + 66M +…
- 10-Q · August 11, 2025
- Primis reported quarterly revenue (net interest income + noninterest income) of $43,210,000 for Q2 2025, up from $35,705,000 in Q2 2024, while diluted EPS fell to $0.10 in Q2 2025 from $0.14 in Q2 2024. MD&A activity…
- 10-Q · November 9, 2023
- Primis Financial reported total revenue of $37,067,000 for Q3 2023, up from $33,035,000 in Q3 2022, but recorded a net loss of $3,567,000 (diluted loss per share $0.14) versus net income of $5,025,000 (diluted EPS…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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