Primis Bank Enhances Capital Levels Through $50M Sale-Leaseback Transaction
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 08 2025
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Should l Buy FRST?
Source: PRnewswire
- Capital Restructuring: Primis Bank's sale-leaseback transaction involving 18 branch properties generates a pre-tax gain of $50 million, significantly enhancing capital levels and laying the groundwork for growth in 2026 and 2027.
- Profitability Improvement: The transaction is expected to increase earnings per share by $1.54, further enhancing the company's earnings outlook after 12 months of profitable growth.
- Balance Sheet Optimization: The bank plans to sell approximately $144 million in securities, anticipating a pre-tax loss of $14.8 million, but will reinvest in securities yielding around 4.50% to support loan growth.
- Debt Management: The company aims to reduce subordinated debt by approximately $27 million, with plans to refinance to lower costs, which is expected to improve pre-tax earnings by about $3 million annually.
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Analyst Views on FRST
About FRST
Primis Financial Corp. is the bank holding company for Primis Bank (the Bank), a Virginia state-chartered bank. The Bank provides a range of financial services to individuals and small- and medium-sized businesses through approximately 24 full-service branches in Virginia and Maryland and provides services to customers through certain online and mobile applications. The Company's segments include Primis Bank and Primis Mortgage. The Primis Bank segment specializes in providing financing services to businesses in various industries and deposit-related services to businesses, consumers and other customers. The Primis Mortgage segment specializes in originating mortgages in a majority of the United States. The Bank invests in real estate-related securities, including collateralized mortgage obligations and agency mortgage-backed securities. The Bank offers a broad range of deposit products, including checking (NOW), savings, money market accounts and certificates of deposit.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Deposit Growth: The company’s noninterest-bearing deposits reached $554 million by year-end, accounting for 16% of total deposits, up from 14% in 2024, showcasing successful customer acquisition through its proprietary app and enhancing market competitiveness.
- Mortgage Performance: Primis Mortgage closed $1.2 billion in loans during Q4, a 50% increase over 2024, with $143 million closed in December alone, reflecting strong market demand and improved profitability.
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- Asset and Loan Growth: As of December 31, 2025, total assets reached $4.047 billion, a 10% increase from 2024, with total loans amounting to $3.284 billion, up 14%, reflecting the company's competitive position and strong customer demand in the market.
- Significant Increase in Non-Interest Income: Non-interest income surged to $50 million in Q4 2025, compared to $13 million in Q4 2024, primarily driven by a $51 million gain from a sale-leaseback transaction, showcasing the company's success in diversifying its revenue streams.
- Continuous Dividend Growth: The Board declared a cash dividend of $0.10 per share, marking Primis' 57th consecutive quarterly dividend, reflecting strong cash flow and a commitment to shareholder returns, thereby enhancing investor confidence.
See More
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- Solid Financial Health: Alongside its earnings report, the company provided historical earnings data and dividend scorecards, demonstrating a stable financial foundation and ongoing commitment to shareholders, which enhances market confidence in its long-term growth prospects.
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- Earnings Performance: Primis Financial reported a net income of $29.5 million for Q4 2025, translating to $1.20 per share, indicating a stable asset management performance with an 80 basis point ROA despite virtually no improvement post-restructuring.
- Deposit Growth: The company’s noninterest-bearing deposits reached $554 million by year-end, accounting for 16% of total deposits, up from 14% in 2024, showcasing successful customer acquisition through its proprietary app and enhancing market competitiveness.
- Mortgage Performance: Primis Mortgage closed $1.2 billion in loans during Q4, a 50% increase over 2024, with $143 million closed in December alone, reflecting strong market demand and improved profitability.
- Future Outlook: Management anticipates achieving a 1% ROA in 2026, although the first quarter may fall short, with expectations for recovery in the second half, demonstrating confidence in future profitability.
See More
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- Quarterly Dividend Announcement: Primis Financial has declared a quarterly dividend of $0.10 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is expected to bolster investor confidence.
- Yield Information: The forward yield of this dividend stands at 2.95%, providing investors with a relatively attractive return, reflecting the company's competitiveness in the current market environment.
- Payment and Record Dates: The dividend will be payable on February 27, with a record date of February 13 and an ex-dividend date also on February 13, ensuring eligible shareholders receive their dividends promptly.
- Stock Repurchase Program: The company has reauthorized its stock repurchase program, signaling management's confidence in the company's future performance and potentially enhancing earnings per share, thereby increasing shareholder value.
See More
Primis Financial Declares Quarterly Cash Dividend of $0.10
- Net Income Reversal: In Q4 2025, Primis Financial reported a net income of $30 million, or $1.20 per diluted share, a significant turnaround from a net loss of $23 million in Q4 2024, indicating a robust recovery in profitability that is expected to drive continued growth in 2026.
- Asset and Loan Growth: As of December 31, 2025, the company’s total assets reached $4.047 billion, a 10% increase from 2024, while total loans held for investment rose to $3.284 billion, up 14% year-over-year, reflecting the company’s enhanced competitiveness and market share.
- Significant Increase in Noninterest Income: Noninterest income surged to $50 million in Q4 2025, compared to $13 million in Q4 2024, primarily driven by a $51 million gain from a sale-leaseback transaction, showcasing the company’s success in diversifying its revenue streams.
- Ongoing Shareholder Returns: The Board declared a cash dividend of $0.10 per share, marking the company’s 57th consecutive quarterly dividend, reflecting strong cash flow and commitment to shareholders, which is expected to bolster investor confidence and attract further investment.
See More
Primis Financial Declares Quarterly Cash Dividend of $0.10 Per Share
- Net Income Reversal: In Q4 2025, Primis Financial reported a net income of $30 million, or $1.20 per diluted share, a significant turnaround from a net loss of $23 million in Q4 2024, indicating a robust recovery in profitability that is expected to drive sustained growth into 2026.
- Asset and Loan Growth: As of December 31, 2025, total assets reached $4.047 billion, a 10% increase from 2024, with total loans amounting to $3.284 billion, up 14%, reflecting the company's competitive position and strong customer demand in the market.
- Significant Increase in Non-Interest Income: Non-interest income surged to $50 million in Q4 2025, compared to $13 million in Q4 2024, primarily driven by a $51 million gain from a sale-leaseback transaction, showcasing the company's success in diversifying its revenue streams.
- Continuous Dividend Growth: The Board declared a cash dividend of $0.10 per share, marking Primis' 57th consecutive quarterly dividend, reflecting strong cash flow and a commitment to shareholder returns, thereby enhancing investor confidence.
See More
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- Strong Earnings Performance: Primis Financial reported a Q4 GAAP EPS of $1.20, beating expectations by $0.09, which highlights a significant improvement in profitability and boosts investor confidence.
- Substantial Revenue Growth: The company achieved quarterly revenue of $80.87 million, reflecting a remarkable 105.8% year-over-year increase, indicating robust business expansion and strong market demand, suggesting continued growth potential ahead.
- Stock Repurchase Program Reauthorized: Primis Financial has reauthorized its stock repurchase program, signaling confidence in its stock value while potentially enhancing shareholder returns by reducing the number of outstanding shares, which could further increase EPS.
- Solid Financial Health: Alongside its earnings report, the company provided historical earnings data and dividend scorecards, demonstrating a stable financial foundation and ongoing commitment to shareholders, which enhances market confidence in its long-term growth prospects.
See More
Elevated Volatility in US Options Market Post Earnings
- Options Market Volatility: The options market is experiencing heightened volatility due to the upcoming Federal Reserve policy decision, with some stocks showing implied volatility nearing 50% ahead of earnings reports.
- Capitol Federal Financial: CFFN is set to report earnings on January 28, with analysts expecting earnings per share of 15 cents and revenue of $57.51 million, reflecting a significant implied move of 48.48%.
- Other Bank Stocks: Stocks like First Financial Bancorp and Provident Financial Services are also seeing implied moves exceeding 39%, indicating cautious market sentiment regarding their earnings performance.
- Market Reaction: Overall, the market is reacting strongly to the impending earnings reports, particularly among regional banks, highlighting investor concerns over future earnings uncertainty and potential risks.
See More
