Primis Financial (FRST) Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, January 30, 2026 astatine 10:08 AM CST 27 min read

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Friday, January 30, 2026 astatine 10 a.m. ET

• President and Chief Executive Officer — Dennis J. Zember

• Executive Vice President and Chief Financial Officer — Matthew Alan Switzer

Dennis J. Zember: Thank you, Matt. And convey you to each of you that person joined our 4th fourth 2025 league call. We're precise pleased to beryllium reporting our 2025 results contiguous and truly excited astir what 2026 is going to look like. For the quarter, we're reporting net of $29.5 cardinal oregon $1.2 per share, which works retired to astir a 3% ROA. I archer radical each the clip that your champion effect ever isn't bully capable tomorrow. And that you person to strive to support reaching higher, which whitethorn person trashed me.

But, obviously, successful the quarter, we had conscionable this summation from the merchantability leaseback and rather a spot of related sound from the restructure and immoderate different items that we were afforded due to the fact that of the extracurricular gain. The astir important happening you tin instrumentality distant from this telephone is this. In 2025, Matt and I are showing our tally complaint net astatine astir $8 million, which works retired to astir an 80 ground constituent ROA connected astir $4 cardinal of mean assets. That reflects virtually nary betterment from the restructure that we announced. And it includes a seasonally dilatory 4th mortgage. So taken together, going into 2026, we spot important momentum and a batch of accidental to deed our goals.

I privation to speech astir immoderate of the existent notable improvements this year. When you look astatine the 4th fourth oregon you look astatine December 31 of immoderate twelvemonth versus the anterior year, you know, what bash you notice? For us, we noticed that our borderline accrued from 2.90% successful the 4th fourth of past twelvemonth to 3.28% successful the 4th fourth of this year. Excuse me. The restructure had virtually nary interaction connected 4th fourth margins. And our property merchandise showed that erstwhile it's afloat implemented, it went astatine astir 28 ground points.

Pushing this benignant of borderline successful our institution to a spot wherever 3.5% margins are successful scope is precise awesome against our adjacent radical and our region. And our halfway slope has led the drive. Next, we grew checking accounts, which has been a large absorption of the bank. We grew checking accounts by implicit 23% during the year. Talk a small much astir this. But from a percent basis, we person to beryllium successful the apical 10 banks nationwide connected checking relationship growth. We achieved this by leveraging our proprietary transportation app successful our marketplace and abroad. We grew our C&I portfolio substantially and saw the mean deposit balances you would expect from this effort amusement up.