Oct 23, 2026 earnings call — Margin gain amid mortgage revenue drop
Primis reported net earnings of $8.7 million, or $0.35 per share, a 28% increase from the same quarter a year ago.
Revenue $0.0B (est $0.1B) · EPS $0.35 (est $0.42)
Key quotes
"Our reported net interest margin was 3.66%, up 21 basis points linked quarter and 48 basis points year over year."
"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."
"For those on the call, and that is basically our proprietary app where we deliver banking services to mostly commercial customers, but commercial and consumer customers."
Analyst Q&A 4
Margin outlook and core expenses
Q (Russell Gunther · Stevens): Analyst asked where margins go into Q4 and next year, and whether expansion continues. He also asked about core expense trends into Q4 and 2027 and whether expense initiatives will reduce costs; plus asked about ROA goals beyond current targets.
A: Management said they expect some incremental margin expansion, but not as dramatic as this quarter because loan repricing from loans put on 5 years ago will keep raising yields over the next 2 to 3 quarters. They do not expect a big move in cost of funds and see a run-rate expense around $22 million to $22.5 million excluding mortgage and Panacea, with roughly $3 million of vendor/statement savings kicking in mid-first quarter to bring expenses lower.
"I think we will continue to see some incremental margin expansion Russell." — Matthew Alan Switzer (CFO)
Loan growth, pricing, and mortgage upside
Q (Raymond James): Where are the best loan growth opportunities now and how to think about growth in Q4 into 2027? Also asked where new loans are pricing today and how much upside exists to the mortgage production range if rates fall.
A: Management said core bank may be flat in Q4 (one big payoff), mortgage warehouse could soften, but they expect about 8% loan growth for the year and similar mid-to-high single digits next year. They said the core bank should be 5%–7% annually, funding mostly with core deposits, and gave pricing examples: Panacea around 5-year plus 225-250 basis points, warehouses generally SOFR plus 275-300 basis points. For mortgage production, at current ~7% to 7.25% rates they see about $1.1 billion and roughly 30-35 basis points pretax; at $1.6 billion (mid-6% rates) profitability could be over 50 basis points.
"I think for the year, we are gonna end up with loan growth in probably the 8% category." — Dennis J. Zember Jr. (CEO)
Banking Valet app and deposits
Q (Christopher Marinac · Brean Capital): Analyst asked Dennis to describe the rebranded Banking Valet (formerly Vibe) and whether it can drive deposit growth from that channel.
A: Management said Banking Valet is their proprietary app delivering virtually any branch service to commercial and consumer customers. They said thousands use it, almost no one deletes it, and many commercial deposit relationships originated because of the app; about half of their checking accounts are rooted in it and it extends each branch’s reach 20–25 miles as a branch enhancement.
"Basically, any service you can get in the branch you can use our app and we will bring that service to you." — Dennis J. Zember Jr. (CEO)
Deposits, expense timing, and credit outlook
Q (Christopher Marinac · Brean Capital): Analyst asked if Banking Valet will help grow core deposits and low-cost funding. He also asked if operating expenses should be slightly down in Q4 and then fall more in Q1, and whether credit losses could decline further.
A: Management said the app contributes to deposit stability and low deposit cost; as betas have shrunk, deposit cost is attractive and noninterest-bearing share should improve if rates stabilize. They expect expenses to be flattish in Q4 and then tick down in Q1 with the $3 million adjustment mainly in Q1. On credit, they saw no migration this quarter, have specific reserves on some classified assets, may charge off some existing reserves before quarter end, and do not expect a need for incremental provisioning now.
"I think we will be flattish in the fourth quarter and then start to tick down in Q1." — Matthew Alan Switzer (CFO)