Primis Financial: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 23, 2026, Primis Financial (NASDAQ:FRST) reported net earnings of $8.7 million as expanding margins and loan repricing drove profitability higher. Controlling funding costs while repricing older loans provides a steady engine for expanding earnings per share.

Three things management said stand out.

1. Disciplined Loan Repricing Expands Net Interest Margins

Net interest margin, or the profit spread between interest earned on loans and interest paid on deposits, expanded as older five-year loans repriced at higher rates. Management relies on a core deposit base rather than wholesale borrowing to keep funding costs steady.

The balance sheet restructuring we did at the end of '25 definitely helped, but staying disciplined on both sides of the balance sheet and with loan repricing has been the real driver.
-- Dennis J. Zember Jr., President and Chief Executive Officer

2. Fixed Cost Cuts Restructure the Mortgage Division

Higher mortgage interest rates reduced annual origination expectations, prompting management to trim expenses across support roles and vendor contracts. These structural cuts adjust operating costs so the mortgage unit remains viable without relying on market recovery.

Knowing this might be a new normal, we have been rightsizing costs mostly in support and vendor categories. Since mid September and have reduced fixed costs by about $4 million a year.
-- Dennis J. Zember Jr., President and Chief Executive Officer

3. Vendor Consolidation Drives Multiyear Operating Leverage

Management is cutting core operating expenses by consolidating vendor contracts and statement services. These ongoing cost reductions lower fixed overhead and improve operating leverage, which measures how revenue gains translate into higher operating income.

We continue to expect approximately $3 million of annualized savings from vendor consolidation and statement services beginning early in 2027. These savings are an important part of our effort to drive continued operating leverage through 2027.
-- Matthew Alan Switzer, Chief Financial Officer

Looking Ahead

Profitability is accelerating through steady margin expansion, and management isn't hiding its satisfaction about the momentum. The bank relies on its proprietary mobile app to pull in low-cost commercial deposits while watching pricing discipline and operating leverage.

We like how we are positioned right now and we could not be more confident that profitability is going to continue to improve as planned.
-- Matthew Alan Switzer, Chief Financial Officer

Capital ratios are rising as heavy development spending ends, leaving the core platform intact.

Some of the things that we have been doing over the years in and building stuff around here, we are done with that. We are simply harvesting the good that all of our efforts have provided.
-- Dennis J. Zember Jr., President and Chief Executive Officer

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