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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 61.8GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
6.5%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.84%
Trailing Yield
$3.84
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
47%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Primis Financial Corp. (FRST) receives a "Hold" rating with a composite score of 57.8/100, ranked #234 out of 4446 stocks. Key factor scores: Quality 62/100, Value 79/100, Momentum 57/100. This is quantitative analysis only — not investment advice.
Primis Financial Corp. (FRST) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Primis Financial Corp. Do?
Primis Financial Corp. operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States. Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits. The company also offers commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services. In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking. As of December 31, 2021, it operated forty full-service branches in Virginia and Maryland. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp. Primis Financial Corp. was founded in 2004 and is based in McLean, Virginia. Primis Financial Corp. (FRST) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Dennis J. Zember and employs approximately 420 people, headquartered in MCLEAN, Virginia. With a market capitalization of $330M, FRST is one of the notable companies in the Financials sector.
Primis Financial Corp. (FRST) Stock Rating — Hold (April 2026)
As of April 2026, Primis Financial Corp. receives a Hold rating with a composite score of 57.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FRST ranks #234 out of 4,446 stocks in our coverage universe. Within the Financials sector, Primis Financial Corp. ranks #88 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FRST Stock Price and 52-Week Range
Primis Financial Corp. (FRST) currently trades at $13.86. The stock lost $0.17 (1.2%) in the most recent trading session. The 52-week high for FRST is $14.55, which means the stock is currently trading -4.7% from its annual peak. The 52-week low is $7.58, putting the stock 82.7% above its annual trough. Recent trading volume was 73K shares, suggesting relatively thin trading activity.
Is FRST Overvalued or Undervalued? — Valuation Analysis
Primis Financial Corp. (FRST) carries a value factor score of 79/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.24x, compared to the Financials sector average of 14.88x — a discount of 18%. The price-to-book ratio stands at 0.79x, versus the sector average of 1.22x. The price-to-sales ratio is 1.64x, compared to 0.90x for the average Financials stock. On an enterprise value basis, FRST trades at 9.56x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, Primis Financial Corp. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Primis Financial Corp. Profitability — ROE, Margins, and Quality Score
Primis Financial Corp. (FRST) earns a quality factor score of 62/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 6.5%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.7% versus the sector average of 1.2%.
On a margin basis, Primis Financial Corp. reports gross margins of 0.0%. The operating margin is 18.1% (sector: 21.8%). Net profit margin stands at 14.2%, versus 17.7% for the average Financials stock. Revenue growth is running at -0.8% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FRST Debt, Balance Sheet, and Financial Health
Primis Financial Corp. has a debt-to-equity ratio of 857.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.12x, suggesting adequate working capital coverage. Total debt on the balance sheet is $200M. Cash and equivalents stand at $8M.
FRST has a beta of 0.86, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Primis Financial Corp. is 74/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Primis Financial Corp. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Primis Financial Corp. reported revenue of $204M and earnings per share (EPS) of $2.49. Net income for the quarter was $27M. Gross margin was 0.0%. Operating income came in at $35M.
In FY 2025, Primis Financial Corp. reported revenue of $200M and earnings per share (EPS) of $2.49. Net income for the quarter was $58M. Revenue grew -5.0% year-over-year compared to FY 2024. Operating income came in at $73M.
In Q3 2025, Primis Financial Corp. reported revenue of $52M and earnings per share (EPS) of $0.28. Net income for the quarter was $7M. Revenue grew -9.4% year-over-year compared to Q3 2024. Operating income came in at $9M.
In Q2 2025, Primis Financial Corp. reported revenue of $48M and earnings per share (EPS) of $0.10. Net income for the quarter was $2M. Revenue grew -8.8% year-over-year compared to Q2 2024. Operating income came in at $3M.
Over the past 8 quarters, Primis Financial Corp. has demonstrated a growth trajectory, with revenue expanding from $52M to $204M. Investors analyzing FRST stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FRST Dividend Yield and Income Analysis
Primis Financial Corp. (FRST) currently pays a dividend yield of 3.8%. At this yield, a $10,000 investment in FRST stock would generate approximately $$384.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning FRST offers above-average income for its sector. The net margin of 14.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
FRST Momentum and Technical Analysis Profile
Primis Financial Corp. (FRST) has a momentum factor score of 57/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 23/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FRST vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing FRST against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FRST vs S&P 500 (SPY) comparison to assess how Primis Financial Corp. stacks up against the broader market across all factor dimensions.
FRST Next Earnings Date
No upcoming earnings date has been announced for Primis Financial Corp. (FRST) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FRST? — Investment Thesis Summary
Primis Financial Corp. presents a balanced picture with arguments on both sides. The quality score of 62/100 indicates above-average profitability and business fundamentals. The value score of 79/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 74/100) reduces downside risk.
In summary, Primis Financial Corp. (FRST) earns a Hold rating with a composite score of 57.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FRST stock.
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Institutional Research Dossier
Primis Financial Corp. (FRST) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We initiate coverage on Primis Financial Corp. (FRST) with a Buy rating. This rating is primarily driven by the company's compelling valuation, as evidenced by its significantly lower P/E and EV/EBITDA ratios compared to the sector average. While concerns exist regarding revenue growth and profitability metrics, the current valuation appears to more than compensate for these shortcomings, presenting an attractive entry point for investors.
The most critical takeaway is that FRST's current market price does not adequately reflect its earnings potential, particularly if management can execute on strategies to improve operational efficiency and revenue generation. The bank's focus on serving small and medium-sized businesses in Virginia and Maryland, coupled with its diverse range of financial services, provides a solid foundation for future growth, albeit one that requires careful monitoring and execution.
Business Strategy & Overview
Primis Financial Corp. operates as a community bank, providing financial services to individuals and small-to-medium-sized businesses (SMBs) primarily in Virginia and Maryland. The bank's revenue streams are derived from traditional banking activities, including interest income from loans and investment securities, as well as non-interest income from fees associated with deposit accounts, cash management services, and other financial products. FRST's strategic focus appears to be on building relationships with local businesses and offering a comprehensive suite of services tailored to their needs.
The company's product offerings encompass a wide array of deposit products, including checking, savings, and money market accounts, as well as certificates of deposit. On the lending side, FRST provides commercial real estate loans, construction loans, SBA loans, and residential mortgages, among others. This diversified lending portfolio allows the bank to cater to a broad range of customer needs and mitigate risk by avoiding over-concentration in any single loan category. Additionally, the bank offers specialized financing for medical, dental, and veterinary businesses, showcasing a targeted approach to specific market segments.
Primis also provides cash management services, including investment/sweep accounts, wire transfers, and remote deposit capture, which are crucial for attracting and retaining business clients. The company's investment in mobile and online banking platforms reflects an understanding of the evolving needs of its customer base and a commitment to providing convenient and accessible banking services. The operation of forty full-service branches in Virginia and Maryland suggests a strategy that balances physical presence with digital accessibility.
The competitive landscape for Primis is characterized by a mix of large national banks, regional players, and smaller community banks. To differentiate itself, FRST likely emphasizes personalized service, local market expertise, and quick decision-making. However, the bank faces challenges from larger institutions with greater resources and more sophisticated technology. The company's ability to effectively compete will depend on its ability to leverage its local presence, build strong customer relationships, and adapt to changing market conditions.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-0.8%
Sector: 9.4%
-109% VS SCTR
Economic Moat Analysis
Primis Financial Corp.'s economic moat is likely Narrow. Community banks typically struggle to establish wide moats due to the commoditized nature of their services and the intense competition within the banking industry. While FRST may possess some degree of local market advantage, this is unlikely to translate into a sustainable competitive advantage that can generate consistently above-average returns.
One potential source of a narrow moat could be switching costs. Customers, particularly businesses, may be reluctant to switch banks due to the hassle of transferring accounts, establishing new relationships, and retraining employees on new systems. However, these switching costs are not insurmountable, and customers can be lured away by better rates, superior service, or more innovative products.
Another potential moat source is intangible assets, specifically brand reputation within its local markets. A strong reputation for customer service and community involvement can create customer loyalty and attract new business. However, building and maintaining a strong brand requires consistent investment and execution, and FRST's brand recognition is likely limited to its geographic footprint.
FRST does not appear to possess significant cost advantages or benefit from efficient scale. The bank's operating margin of 18.2% is below the sector average of 22.0%, suggesting that it may not be as efficient as its peers. Furthermore, the bank's relatively small size limits its ability to achieve economies of scale in areas such as technology and compliance.
Network effects are generally not a significant factor in the community banking industry. While a larger customer base can generate more deposits and lending opportunities, this does not necessarily create a self-reinforcing cycle that benefits existing customers. Overall, while FRST may have some limited competitive advantages, these are unlikely to create a wide or sustainable economic moat.
Financial Health & Profitability
Primis Financial Corp.'s financial health presents a mixed picture. The company's revenue growth has been inconsistent, with a slight decline of -0.8% in the most recent TTM period compared to a sector average of 9.3%. This is a cause for concern, as it suggests that FRST is struggling to grow its top line in a favorable economic environment. The quarterly financial history reveals volatility in revenue, with fluctuations across different quarters.
Profitability metrics also lag the sector average. While FRST's net margin of 14.2% is positive, it is below the sector average of 17.8%. Similarly, the company's ROE of 6.5% is lower than the sector average of 8.5%. The operating margin has also fluctuated significantly, with a negative operating margin in FY2024 (-13.7%) and FY2023 (-5.8%), followed by a positive operating margin of 36.2% in FY2025. This volatility raises questions about the sustainability of FRST's profitability.
The company's balance sheet is characterized by a high level of leverage. The debt-to-equity ratio of 857.00 is significantly higher than the sector average of 115.00, indicating that FRST relies heavily on debt financing. This high level of leverage increases the company's financial risk and could limit its ability to invest in growth opportunities or withstand economic downturns. However, the current ratio of 1.12 suggests that the company has sufficient liquid assets to cover its short-term liabilities.
Free cash flow generation is a positive aspect of FRST's financial health. The company generated $103.27 million in free cash flow in the most recent TTM period, which provides it with financial flexibility to invest in growth initiatives, reduce debt, or return capital to shareholders. However, the absence of free cash flow data in the quarterly financial history makes it difficult to assess the consistency of this cash flow generation.
The significant swing from a net loss of -$24.66M in FY2024 to a net income of $57.84M in FY2025 is noteworthy. While this turnaround is encouraging, it is important to understand the drivers behind this improvement and assess whether it is sustainable. The quarterly data shows inconsistent net income figures, suggesting that the company's earnings are subject to volatility.
Valuation Assessment
Primis Financial Corp.'s valuation appears attractive based on several key metrics. The company's P/E ratio of 5.1x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 1.1x is substantially below the sector average of 3.5x, further supporting the argument that FRST is trading at a discount.
However, it is important to consider the company's growth prospects and financial health when assessing its valuation. FRST's revenue growth has been negative, and its profitability metrics lag the sector average. These factors could justify a lower valuation multiple compared to its peers. Nevertheless, the magnitude of the discount appears excessive, particularly given the company's positive free cash flow generation.
A discounted cash flow (DCF) analysis would be helpful in determining the intrinsic value of FRST. However, without detailed projections of future cash flows, it is difficult to conduct a rigorous DCF valuation. Based on the available data, it appears that the market is undervaluing FRST's earnings potential, particularly if the company can improve its operational efficiency and revenue growth.
The low short interest score of 27/100 suggests that there is limited bearish sentiment surrounding the stock. This could indicate that investors are overlooking the company's potential or that the market is already pricing in the risks associated with FRST's business.
Overall, while concerns exist regarding FRST's growth and profitability, the current valuation appears to offer an attractive margin of safety. The stock is trading at a significant discount to its peers, and there is potential for upside if the company can execute on its strategic initiatives and improve its financial performance. The Buy rating is predicated on the belief that the market is underestimating FRST's earnings potential and that the stock will re-rate as the company demonstrates improved financial results.
Risk & Uncertainty
Primis Financial Corp. faces several risks that could negatively impact its financial performance and stock price. One of the most significant risks is interest rate risk. As a bank, FRST's profitability is sensitive to changes in interest rates. A rising interest rate environment could increase the company's funding costs and reduce its net interest margin, while a falling interest rate environment could compress its lending yields. The company's ability to effectively manage its interest rate exposure is crucial to its long-term success.
Another risk is credit risk. FRST's lending portfolio is subject to the risk of borrowers defaulting on their loans. An economic downturn or a deterioration in the credit quality of its borrowers could lead to increased loan losses and reduced profitability. The company's ability to effectively underwrite and manage its loan portfolio is essential to mitigating credit risk.
Regulatory risk is also a concern for FRST. The banking industry is heavily regulated, and changes in regulations could increase the company's compliance costs and limit its business activities. For example, changes in capital requirements or lending regulations could negatively impact FRST's profitability and growth prospects.
Competition within the banking industry is intense. FRST faces competition from larger national banks, regional players, and smaller community banks. The company's ability to effectively compete will depend on its ability to differentiate itself through superior service, innovative products, and competitive pricing. Failure to effectively compete could lead to a loss of market share and reduced profitability.
Finally, execution risk is a concern. FRST's ability to improve its financial performance depends on its ability to effectively execute on its strategic initiatives. This includes improving operational efficiency, growing its loan portfolio, and managing its expenses. Failure to execute on these initiatives could lead to continued underperformance and a decline in the stock price.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPrimis Financial Corp. is significantly undervalued compared to its peers, offering a compelling entry point for investors seeking exposure to the banking sector.
BULL VIEWThe company's strong free cash flow generation provides it with financial flexibility to invest in growth opportunities and return capital to shareholders.
BULL VIEWFRST's focus on serving small and medium-sized businesses in Virginia and Maryland positions it well to benefit from local economic growth.
The Bear Case
BEAR VIEWPrimis Financial Corp.'s negative revenue growth and below-average profitability metrics raise concerns about its long-term prospects.
BEAR VIEWThe company's high level of leverage increases its financial risk and could limit its ability to withstand economic downturns.
BEAR VIEWFRST's lack of a wide economic moat makes it vulnerable to competition from larger and more established banks.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FRST and 4,400+ other equities.
Primis Financial Corp. exhibits a 56% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.7%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
18.1%
Sector: 21.8%
Net Margin
Bottom-line profitability
14.2%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+55%
Income Projection audit
A $10,000 investment would generate approximately $384 annually in dividends at the current trailing rate.
