Primis Financial Q2 net income jumps on insurance gain, mortgage growth

Primis Financial

23/07/2026 21:38

    

    Overview
  
U.S. regional bank's Q2 net income and EPS rose sharply yr/yr
Company's results aided by insurance agency sale gain and mortgage lending growth
Quarterly dividend maintained at $0.10 per share

    

    Outlook
  
Company expects $6.1 mln in annual earnings improvements from digital core conversion, phased in late 2026-2027
Primis anticipates SBA gain on sale income of $500,000-$600,000 per qtr from Core Bank starting 3Q26
Company expects effective tax rate of about 22% for the rest of 2026

    

    Result Drivers
  
INSURANCE SALE GAIN - Q2 results included a $5.9 mln pre-tax gain from the sale of Bearing Insurance
MORTGAGE LENDING GROWTH - Primis Mortgage closed volume rose 30% yr/yr to $421 mln, and mortgage warehouse balances increased 195% yr/yr to $544 mln
NET INTEREST INCOME AND MARGIN - Net interest income rose 34% yr/yr, with margin up to 3.45% from 2.86%, driven by earning asset growth and lower funding costs

    
Company press release: ID:nPn2Kj6PKa

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 EPS
 
$0.38
 
Q2 Net Income
 
$9.40 mln
 
Q2 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 $18.00, about 14.3% above its July 22 closing price of $15.75
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

    

    Reuters Recommended Reads
  
July 23 - Carter Bankshares Q2 profit beats, boosted by gain from Bearing Insurance stake sale 
July 23 - South Atlantic Bancshares Q2 profit rises on loan growth, lower funding costs
July 21 - Capital One second-quarter profit rises on higher interest income

    
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(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.)