Primis Financial Corp. (FRST) is a dynamic financial services company dedicated to delivering innovative banking solutions with a community-first approach. Headquartered in McLean, Virginia, Primis operates as the holding company for Primis Bank, which serves individuals, businesses, and organizations across Virginia and Maryland. With 24 full-service branches and a robust digital banking platform, Primis combines the personalized service of a local bank with the technology-driven convenience of a modern financial institution.
Founded on the principles of customer-centricity and innovation, Primis Financial Corp. has redefined what it means to be a community bank. The company’s mission is to empower customers with financial tools and services that drive growth, security, and opportunity. By focusing on customer needs, Primis has cultivated a reputation for reliability, adaptability, and excellence in the banking sector.
Primis Bank offers a comprehensive range of financial products, including personal and business banking, mortgage lending, treasury management, and wealth management services. The company also specializes in high-growth financial solutions, such as mortgage warehouse lending, which reflects its ability to identify and capitalize on profitable market segments.
A cornerstone of Primis’s success is its commitment to innovation. By integrating technology into its operations, Primis delivers seamless banking experiences, ensuring accessibility and convenience for its customers. From digital account management to advanced lending platforms, the bank continues to push the boundaries of traditional banking to meet the evolving demands of its clients.
Primis is also deeply rooted in its communities, providing more than just banking services. The company is a trusted partner, supporting local businesses, fostering economic development, and contributing to community well-being. Its leadership team emphasizes collaboration and forward-thinking strategies, ensuring the bank remains a reliable partner for customers navigating the complexities of modern finance.
With a focus on operational efficiency, profitability, and sustainable growth, Primis Financial Corp. has emerged as a leader in the regional banking landscape. Its strategic decisions, such as the divestment of non-core assets and expansion into high-yield lending markets, underscore its adaptability and long-term vision. As Primis continues to innovate and expand its offerings, it remains steadfast in its mission to deliver exceptional value to customers, shareholders, and the communities it serves.
Whether serving individual clients, small businesses, or large organizations, Primis Financial Corp. is redefining banking by balancing tradition with innovation, ensuring it remains a cornerstone of financial stability and growth in the region.
Strategic Sale of Life Premium Finance Division
In October 2024, Primis announced the sale of its Life Premium Finance Division to EverBank for a $6 million premium. This strategic divestment includes transferring $370 million in loans and the operations of the division to EverBank, with an expected pre-tax gain of $4.5 million to be recorded in the fourth quarter of 2024. This move allows Primis to reallocate resources towards high-growth areas, such as mortgage warehouse lending, which offers yields 125 to 150 basis points higher.
The sale positions Primis to focus on scaling profitable ventures, with CEO Dennis J. Zember, Jr. emphasizing that the decision aligns with the company’s vision to pursue scalable, high-return opportunities. This transition is expected to enhance Primis’s overall profitability while maintaining its commitment to delivering superior financial services.
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Expansion in Mortgage Warehouse Lending
Primis further demonstrated its forward-looking strategy by expanding its mortgage warehouse lending team. In October 2024, the company hired a seasoned team of professionals, bringing extensive expertise to bolster its presence in this high-yielding segment. Mortgage warehouse lending offers attractive returns with low loss rates, making it a lucrative focus area for Primis.
With large banks exiting this market and mortgage volumes projected to increase, Primis is well-positioned to capture market share. CEO Zember highlighted the potential to replace the revenue from the Life Premium Finance Division with more profitable returns from the mortgage warehouse business, reinforcing the company’s ability to pivot effectively.
Improved Financial Performance and Operational Efficiency
Primis’s net interest income grew by 13% quarter-over-quarter to $28 million in Q3 2024, driven by increased interest recognition on previously deferred loans. The net interest margin also expanded to 2.97%, up from 2.72% in the prior quarter, showcasing the company’s ability to manage assets effectively.
Gross loans held for investment reached $2.97 billion, while nonperforming assets remained low at 0.25% of total assets. This stability underscores the company’s disciplined risk management practices. Additionally, Primis’s core expense burden decreased to $19.8 million, reflecting its focus on cost efficiency while investing in growth.
Dividend Consistency and Shareholder Value
Primis declared a quarterly cash dividend of $0.10 per share, maintaining its commitment to rewarding shareholders. This consistency in dividend payments reflects the company’s financial stability and long-term focus on creating value for investors.
Growth Outlook and Market Position
Primis operates 24 full-service branches across Virginia and Maryland, offering a range of financial products to individuals and businesses. The company’s proactive approach, including the divestment of non-core assets and expansion into high-yield segments, positions it as a competitive player in the financial services market.
Primis’s emphasis on leveraging technology, building scalable operations, and maintaining strong customer relationships underscores its potential for sustained growth. With the mortgage warehouse lending team fully operational and the strategic shift away from lower-margin divisions, Primis is poised to deliver enhanced profitability in the coming quarters.
Why Primis Financial Corp. is a Bullish Investment Opportunity
Primis Financial Corp.’s recent strategic decisions demonstrate its adaptability and commitment to driving shareholder value. The divestment of the Life Premium Finance Division and the expansion into mortgage warehouse lending reflect a sharp focus on profitability and growth. Coupled with its improved financial performance, operational efficiency, and strong dividend track record, Primis is well-positioned for long-term success.
As the company continues to scale its operations and capitalize on market opportunities, Primis offers an attractive investment proposition for those seeking exposure to a dynamic and forward-thinking financial institution.
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