Primis Financial Corp. reported net income available to common shareholders of $8.4 million, or $0.34 per diluted share, for the second quarter ended June 30, 2025. This represents a significant increase from $3.4 million, or $0.14 per diluted share, in the same quarter of 2024. For the first six months of 2025, net income reached $31.1 million, or $1.26 per diluted share.
The company's operating results showed improved profitability and momentum, with run-rate pre-tax pre-provision earnings of approximately $8.4 million in Q2 2025. Management anticipates future pre-tax pre-provision earnings of $10.5 million to $11 million, driven by profitable growth and balance sheet repricing, along with an expected $1.5 million reduction in quarterly expenses from technology cost reductions and the end of core deposit amortization.
Primis Mortgage closed $323 million in volume, a 52% increase compared to Q2 2024. The Mortgage Warehouse lending division saw outstanding loan balances grow 60% to $185 million from Q1 2025, with committed facilities reaching $804 million. Panacea Financial's loans outstanding increased 34% to $505 million compared to Q2 2024, supported by a 58% rise in customer deposits to $107 million.
Net interest income decreased to $25.5 million due to the final significant write-off of accrued interest on the Consumer Program loan portfolio. However, excluding these impacts, the net interest margin was 3.15%, up two basis points from Q1 2025. The cost of deposits continued to improve, reaching 2.52% in Q2 2025, down from 2.98% in Q2 2024.
Noninterest income included a $7.4 million gain from the sale of a portion of the company's PFH shares and remeasurement of the remaining shares. Noninterest expense decreased to $31.9 million from $32.5 million in Q1 2025, with management noting that core operating expenses, adjusted for certain non-recurring items, would have been less than $21 million, aligning with previous estimates.
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