Primis Financial's Q1 2025: Unraveling Key Contradictions in Deposits, Consolidation, and Loan Resolutions

Core bank deposit and digital platform deposit strategy, Panacea savings and consolidation impact, Panacea Holdings deconsolidation and financial impact, consumer loan resolution timeline are the key contradictions discussed in Primis Financial's latest 2025Q1 earnings call.



Earning Assets and Loan Growth:
- Primis Financial Corp. planned to grow earning assets back to $3.75 billion by the second quarter of 2025, with expected growth of $100 million from the core bank, $150 million from Warehouse, and $125 million from Panacea.
- The company is focusing on expanding earning assets without increasing operating expenses, aiming to enhance return on assets (ROA) by 20-25 basis points.

Mortgage Division Expansion:
- Primis Financial's Mortgage division aimed to add 20 basis points to its return on assets compared to the previous year's contribution of 5 basis points.
- This growth is supported by the acquisition of top-producing teams in Nashville and Wilmington, which are expected to close $150 million to $175 million and $175 million to $200 million annually, respectively.

Panacea Deconsolidation and Impact:
- The company is working towards deconsolidating Panacea, which could potentially reduce the operating ROA by 10 basis points.
- Successful deconsolidation could result in a gain of $20 million or more, improving the company's operating results.

Consumer Loan Portfolio Management:
- The consumer loan portfolio with promotional features declined from $90 million to $17 million, with reserves at 75% of the principal balance.
- The portfolio is expected to amortize, with a pay-off rate of 7% per quarter, reducing the risk and volatility associated with the portfolio.