Q2 2025 Primis Financial Corp Earnings Call Transcript
Key Points
- Primis Financial Corp (FRST) reported a net income of $8.4 million or $0.34 per share for the second quarter.
- The company achieved significant operating leverage with incremental margins in the mid-4% range while maintaining steady or declining operating expenses.
- Primis Financial Corp's digital platform raised $36 million nationwide at competitive rates, demonstrating scalability and targeted marketing.
- The core bank's return on assets (ROA) was 1.38%, supported by a low cost of deposits at 1.75%.
- Primis Mortgage closed $323 million in the quarter, up 52% from the same quarter in the previous year, indicating strong growth in mortgage operations.
- The company experienced a $2 million write-off of noticeable interest on maturing promo loans, impacting financial results.
- Primis Financial Corp's net interest income declined due to significant interest reversals on consumer program promo loans.
- The company incurred $1.2 million in support costs for new teams in Primis Mortgage, affecting profitability.
- Nonrecurring items and mortgage volatility led to core expenses of approximately $22.7 million, higher than the previous quarter.
- The company anticipates slower loan growth in the second half of 2025, with expectations of low to mid-single-digit growth.
Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Primis Financial Corp second quarter earnings call. Today's conference is being recorded. (Operator Instructions)
At this time, I would like to turn the conference over to Matt Switzer, Chief Financial Officer. Please go ahead.
Good morning, and thank you for joining us for Primis Financial Corp's 2025 second quarter webcast and conference call. Before we begin, please note that many of our comments during this call will be forward-looking statements, which involve risk and uncertainty. There are many factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements.
Further discussion of the company's risk factors and other important information regarding our forward-looking statements are part of our
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