Primis Financial Q3 net income rises, interest margin expands

By Reuters News


Overview

  • U.S. regional bank's Q3 net income and EPS rose yr/yr

  • Net interest income and margin improved yr/yr, offsetting lower retail mortgage revenue

  • Company maintained quarterly dividend at $0.10 per share


Outlook

  • Company expects $3 mln in annualized savings from vendor consolidation and statement services starting early 2027

  • Primis says it is making changes to address lower retail mortgage volumes and preserve future upside


Result Drivers

  • CORE BANK MARGIN EXPANSION - Co said core margin expanded 14 basis points linked-quarter, supporting steady growth at attractive margins

  • NET INTEREST INCOME GROWTH - Net interest income rose 25% yr/yr, driven by earning asset growth funded at attractive incremental margins

  • RETAIL MORTGAGE PIPELINE IMPACT - Retail mortgage pipeline fell 37%, reducing revenue by $2.3 mln vs Q2, per CEO Dennis J. Zember, Jr.


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.35

Q3 Net Income

$8.70 mln

Q3 Dividend

$0.10


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for Primis Financial Corp is $18.88, about 18.4% above its October 22 closing price of $15.94

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 22 - Civista Bancshares Q3 net income rises as margin expands

  • Oct 22 - First Bank Q3 net income rises, margin expands on higher loan yields

  • Oct 20 - Metropolitan Bank Q3 net interest margin rises on higher yields and loan payoffs


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.