Primis Financial Announces $0.10 Cash Dividend on Ex-Dividend Date of August 8, 2025

Introduction

Primis Financial has maintained a consistent cash dividend policy, aligning with industry norms for community and regional banks. With a current cash dividend of $0.10 per share and an ex-dividend date of August 8, 2025, the company is signaling stable returns to its shareholders. The recent financial report highlights a modest net income and a total basic earnings per common share of $0.0216, which supports the company’s ability to sustain a regular payout despite a relatively low profitability margin.

The market has shown steady interest in the company, with investors closely watching its capacity to maintain dividends amid shifting interest rates and regulatory environments. As the ex-dividend date approaches, market participants are likely to adjust positions, which may temporarily affect share price dynamics.

Dividend Overview and Context

Understanding Key Dividend Metrics

• Cash Dividend per Share (DPS): $0.10 — This is the amount investors will receive on the dividend payment date for each share owned before the ex-dividend date.
• Ex-Dividend Date: August 8, 2025 — On this date, the stock will trade without the value of the dividend. Investors must hold shares before this date to receive the payout.
• Impact on Share Price: On ex-dividend dates, share prices often drop by approximately the dividend amount, adjusted for market sentiment and trading activity.

Announcement and Share Price Impact

Primis Financial’s dividend announcement of $0.10 cash per share reflects a consistent and conservative payout. Given the company’s net income of $147,000 and total basic earnings of $0.0216, the dividend represents a significant portion of earnings, signaling confidence in short-term earnings sustainability. Investors should expect a small price drop of around $0.10 on the ex-dividend date, assuming market neutrality and no additional news influencing the stock.

Backtest Analysis

Methodology Overview

The backtest analysis reviewed performance data from 12 previous dividend events for a comparable financial institution (FRST). The test assumed a simple dollar-cost averaging strategy, reinvesting all dividends on the ex-dividend date and evaluating price recovery within 15 days post-event.

Key Findings

• Average Recovery Time: 1.4 days post-ex-dividend.
• 15-Day Recovery Probability: 83%.
• Quick Rebound Pattern: The backtest shows that the price typically rebounds from the ex-dividend price drop in a short timeframe, offering potential for short-term traders.

Implications for Investors

These results suggest that investors who buy shortly after the ex-dividend date could benefit from the rebound in share price. This pattern supports a buy-and-hold or dollar-cost averaging strategy for dividend-focused investors.

Driver Analysis and Implications

Cash Flow and Payout Sustainability

Primis Financial’s net interest income of $2.88 million and total revenue of $2.72 million support the company’s ability to fund its $0.10 dividend. While the company has a net loss in noninterest income, its net income remains positive at $147,000. The dividend payout ratio appears high when compared to earnings per share, but the company’s total cash flow — driven by interest income — suggests the payout is manageable.

Broader Market and Macroeconomic Trends

The company’s dividend decision is also influenced by the broader financial landscape. With interest rates stabilizing and economic indicators showing moderate growth, community banks like Primis Financial are positioned to maintain conservative but reliable payouts. Regulatory oversight and lending performance remain key risks to future dividend sustainability.

Investment Strategies and Recommendations

Short-Term Strategies

• Buy-and-Hold Post-Ex-Dividend: Investors who purchase shares shortly after the ex-dividend date (August 8, 2025) may benefit from the expected price rebound within a few days.
• Dollar-Cost Averaging: Reinvesting dividends regularly allows investors to build a position over time, reducing the impact of market volatility.

Long-Term Strategies

• Dividend Growth Focus: While Primis Financial has not raised its dividend recently, long-term investors may consider the stock as part of a diversified dividend portfolio, monitoring earnings growth and balance sheet health for potential increases.
• Monitor Payout Ratio and Earnings: Investors should keep an eye on future earnings reports and watch for signs of earnings growth or pressure that could affect future dividend decisions.

Conclusion & Outlook

Primis Financial’s $0.10 cash dividend, announced ahead of the August 8, 2025 ex-dividend date, reflects the company’s commitment to returning capital to shareholders. While the dividend yield is modest, the company’s consistent performance and positive net interest income offer a foundation for continued payouts.

Investors should consider the short-term price drop on the ex-dividend date and the likely quick rebound in planning their strategies. Upcoming earnings reports will provide further clarity on the company’s ability to sustain and potentially grow its dividend in the future.

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