Primis Financial Surges 108% in Q4 Why Profits Far Outpaced Expectations

Primis Financial (FRST) delivered a stunning turnaround in its fiscal 2025 Q4 earnings, reporting $80.87 million in revenue (up 108.6% year-over-year) and $29.54 million in net income (212.9% positive swing from 2024). The results far exceeded forecasts, with EPS at $1.20 versus an expected $0.39. Management also outlined ambitious 2026 guidance, including a 50% increase in mortgage loan closings and a 5-7% core bank loan growth target.

Revenue

The total revenue of Primis Financial surged by 108.6% to $80.87 million in 2025 Q4, a dramatic leap from $38.78 million in 2024 Q4. This growth was driven by robust performance across its digital banking platform and mortgage operations, which closed $1.2 billion in loans—a 50% increase year-over-year.

Earnings/Net Income

Primis Financial returned to profitability with EPS of $1.20 in 2025 Q4, reversing from a loss of $0.94 per share in 2024 Q4 (226.7% positive change). The company achieved a remarkable turnaround with net income of $29.54 million in 2025 Q4, representing a 212.9% positive swing from the net loss of $-26.16 million in 2024 Q4. This reflects a sustained profitability streak of 20 years for the corresponding fiscal quarter. The EPS result was strong, marking a significant improvement from the prior year’s loss.

Price Action

The stock price of Primis Financial has edged down 1.61% during the latest trading day, has edged down 0.85% during the most recent full trading week, and has tumbled 8.76% month-to-date.

Post-Earnings Price Action Review

Despite the impressive earnings beat, Primis Financial’s shares have faced downward pressure in the short term. The stock declined 1.61% in a single trading day and 0.85% over the preceding week, with a more pronounced 8.76% drop month-to-date. The sell-off may reflect investor skepticism about sustaining the current momentum or concerns over broader market conditions, though the company’s long-term profitability trajectory remains intact.

CEO Commentary

120-word summary:

CEO Dennis Zember highlighted the company’s strategic focus on margin expansion and cost discipline, noting a 3.28% net interest margin (up from 2.90% YoY). He emphasized the digital banking platform’s $993 million in deposits and 20,000+ customers as a growth engine, alongside mortgage operations closing $1.2 billion in loans. Zember reiterated confidence in achieving 1% ROA for 2026, projecting net interest margin in the mid-3.4% range. He underscored cost control, stating, “There’s virtually no pressure anywhere in our company for OpEx growth,” while reaffirming commitment to core bank loan growth of 5-7% and mortgage loan closings of $1.6–$2 billion.

Guidance

100-word summary:

Primis Financial outlined 2026 guidance targeting 1% ROA, net interest margin of 3.4–3.5%, and mortgage loan closings of $1.6–$2 billion. The company projects core bank loan growth of 5–7% and quarterly core expenses between $23–24 million. Management emphasized cost discipline and margin expansion as key priorities, with a focus on scaling mortgage operations and digital banking. Noninterest income, including one-time gains, is expected to contribute to profitability, though the 2025 results included $112.4 million in noninterest income.

Additional News

Primis Financial’s mortgage business closed $1.2 billion in loans in 2025 Q4, a 50% increase from 2024, driven by strong market demand and operational efficiency. The digital banking platform reached $993 million in deposits, expanding its customer base to over 20,000. In dividend news, the company’s ex-dividend date was set for March 15, 2026, with a yield reflecting its growing profitability. Additionally, the 2025 10-K report revealed a strategic pivot away from Consumer Program originations, with loans reclassified between held-for-sale and held-for-investment categories to align with long-term growth goals.