Primis Financial Corp. (FRST) SEC Filings & Earnings Calls

Retail mortgage headwinds from higher interest rates reducing pipeline and revenue

“Unprecedented headwinds that reduced our retail mortgage pipeline 37% and reduced revenue by $2.3 million versus the second quarter” · word for word

Dependence on mortgage volume recovery for ROAA target

“In a steady environment for retail mortgage, we would have been at our 1.00% ROAA target this quarter as expected” · word for word

Material weakness in internal controls

“any inability or failure to implement and maintain effective internal control over financial reporting and/or disclosure control or inability to expediently remediate our existing material weakness in our internal controls deemed ineffective” · word for word

CRE concentration risk

“Our highest concentration of credit by loan type is in commercial real estate. As of June 30, 2026, 35% of our loan portfolio was comprised of loans secured by commercial real estate” · word for word

Loan growth outpacing deposit growth

“The ratio of gross loans (excluding loans held for sale) to deposits increased to 100.6% at June 30, 2026, from 96.7% at December 31, 2025 as a result of loan growth outpacing deposit growth in 2026.” · word for word

Provision for loan losses increased due to a larger office CRE loan, indicating potential stress in commercial real estate.

“We offset that gain with a provision for loan losses on a larger office CRE loan and a $0.9 settlement on a nuisance lawsuit regarding mortgage recruiting.” · word for word

Nonperforming assets declined 37% during the quarter, but allowance to NPAs increased to 73%, suggesting improved coverage.

“NPAs declined by 37% during the quarter and our allowance to NPAs increased to 73%.” · word for word

Mortgage segment faces macroeconomic headwinds, though volume grew 30% YoY.

“Primis Mortgage had closed mortgage volume of $421 million in the second quarter of 2026, up 30% compared to the same quarter in 2025, in spite of significant macroeconomic headwinds in the second quarter.” · word for word

Asset quality deterioration

“Asset quality declined from year end with nonperforming assets as a percentage of total assets (excluding SBA guarantees) at 2.35% as of March 31, 2026, compared to 2.03% as of December 31, 2025, a 32 basis point change.” · word for word

Concentration in commercial real estate

“Our highest concentration of credit by loan type is in commercial real estate. As of March 31, 2026, 36% of our loan portfolio was comprised of loans secured by commercial real estate.” · word for word

Consumer Program portfolio credit risk

“Approximately half of our net charge-offs were related to the Consumer Program portfolio during the three months ended March 31, 2026.” · word for word

Activist exit may signal lack of confidence

“As of April 17, 2026, the Reporting Persons have ceased to be the beneficial owner of more than five percent of the Common Stock.” · word for word

Activist exit risk

“Between February 5, 2026 and April 10, 2026 (inclusive), Castle Creek Capital Partners VII, LP sold an aggregate of 556,690 shares of Common Stock for proceeds of $7,721,743.97.” · word for word

Activist exit risk

“Between February 5, 2026 and April 10, 2026 (inclusive), Castle Creek Capital Partners VII, LP sold an aggregate of 556,690 shares of Common Stock for proceeds of $7,721,743.97.” · word for word

Elevated Nonperforming Assets

“The Compensation Committee considered using its discretion to increase general incentive levels for executive management for 2025 in recognition of the substantial progress made during the year but ultimately declined to do so given the elevated level of nonperforming assets experienced during the year.” · word for word

Material Weaknesses in Internal Control

“material weaknesses in the Company's internal control over financial reporting disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and for the Restated Annual Report on Form 10-K/A for the year ended December 31, 2022.” · word for word

Accounting Restatement

“the Company has reflected the change in accounting for the Agreement in its 2022 and 2023 fiscal year results in its 2022 Form 10-K/A and 2023 Form 10-K which has been audited by Forvis Mazars.” · word for word

Regulatory Compliance Burden

“Changes in laws and regulations may alter the structure, regulation and competitive relationships of financial institutions.” · word for word

Credit Risk from Loan Growth

“Because future loan losses are so closely intertwined with our underwriting policy, we have instituted what management believes are well-defined loan underwriting criteria and portfolio management practices.” · word for word

High growth in mortgage warehouse lending may increase credit risk.

“Mortgage warehouse loan balances up 398% YoY to $318M.”

Execution risk on restructuring plans and potential interest rate sensitivity.

“Restructuring of securities portfolio and debt refinancing subject to market conditions.”

Asset quality deterioration

“Nonperforming assets increased $70 million, or 418%, as of September 30, 2025 compared to December 31, 2024, which was driven by an increase in nonaccrual loans.” · word for word

Concentration in commercial real estate

“Our highest concentration of credit by loan type is in commercial real estate. As of September 30, 2025, 38% of our loan portfolio was comprised of loans secured by commercial real estate, including multi-family residential loans and loans secured by farmland.” · word for word