Primis Financial Corp. (FRST): Business Model Canvas [Dec-2025 Updated]

You're trying to map out Primis Financial Corp. (FRST)'s game plan, and it's not your typical regional bank story; it's a calculated hybrid play. Honestly, their Business Model Canvas shows they are driving toward that crucial ROA target by leaning hard into specialized, high-margin areas like Panacea Financial and Primis Mortgage, while simultaneously working to cut core processing expenses. With key metrics like a Q3 2025 Net Interest Margin of 3.18% and total assets around $4.0 billion, the strategy is clearly focused on tech-enabled efficiency meeting localized, expert service. See the full nine-block breakdown below to understand exactly how they are balancing FDIC stability with fintech agility.

Primis Financial Corp. (FRST) - Canvas Business Model: Key Partnerships

You're looking at the relationships Primis Financial Corp. relies on to execute its strategy, especially as they clean up legacy books and push growth in their specialized lines. These aren't just vendor agreements; they are core to how Primis generates revenue and manages its balance sheet in late 2025.

Exclusive banking partner for Panacea Financial's specialized loans and deposits

Primis Bank remains the exclusive banking partner for all loans and deposits flowing through its Panacea division, even after deconsolidating Panacea Financial Holdings (PFH) effective March 31, 2025. This structure allows Primis Bank to capture the asset growth and associated interest income while simplifying its financial presentation. The deconsolidation itself was expected to improve the Return on Assets (ROA) by ten basis points. The drag from the consolidated losses of PFH is expected to be removed, which management believes would double the overall ROA.

The Panacea division is a key growth engine, focusing on the medical community. Here's how that partnership looked as of the third quarter of 2025:

The digital platform is crucial here, as it funds Panacea's excess lending. So, the technology partnership directly fuels the Panacea partnership's asset growth.

Technology vendors for the digital platform and core processing systems

Managing two core systems-a traditional one and a digital one-was a near-term focus for cost savings. Management expected to complete the analysis to consolidate these cores in the second quarter of 2025. This move is a big deal for partnership efficiency; they project annual savings of approximately $6 million to $7 million in technology spend, which translates to another 15 basis points improvement in ROA. To be fair, the initial projection for a single core consolidation was a 15-18 basis point ROA pickup and a technology expense reduction of up to 9%, or $1.5-$2 million per quarter. The digital platform itself is a key resource, with its proprietary V1BE service directly supporting more than $200 million of commercial clients. Furthermore, they are working to make V1BE easier to license, expecting the first external customer onboard before the end of 2025.

The success of this digital infrastructure is visible in deposit gathering:

• Digital deposits exceeded $1.0 billion at the end of Q3 2025.
• Noninterest-bearing demand deposits stood at $490 million on September 30, 2025, marking a 16% annualized growth rate versus September 30, 2024.

Mortgage brokers and real estate professionals for loan origination

The Mortgage Warehouse division is clearly a major partner channel, showing massive balance sheet growth through originations facilitated by external professionals. Mortgage warehouse outstandings hit $327 million at the end of Q3 2025. That's a staggering 411% increase from the $64 million outstanding at December 31, 2024. Primis Mortgage closed $308 million in volume in Q3 2025, which was up 34% year-over-year, following a 52% increase in Q2 2025 volume ($323 million). Pre-tax earnings for the mortgage segment were approximately $1.9 million in Q3 2025.

Here's a quick look at the Mortgage Warehouse asset growth, which relies heavily on external origination partners:

This division also brought in low-cost funding, with associated customer noninterest-bearing deposit balances totaling $34 million at September 30, 2025, up 66% from June 30, 2025.

Correspondent banks for interbank services and liquidity

While Primis Financial Corp. emphasizes low reliance on wholesale funding, it does use correspondent services for liquidity management when needed. At September 30, 2025, the Company reported FHLB advances totaling $85 million outstanding, which management noted resulted from a spike in mortgage activity late in the quarter. This is set against a backdrop of zero brokered deposits. The cost of deposits overall improved to 1.73% in Q3 2025, down from 2.29% in Q3 2024, showing effective management of their primary funding source-deposits-which totaled $3.3 billion at September 30, 2025. Finance: draft 13-week cash view by Friday.

Primis Financial Corp. (FRST) - Canvas Business Model: Key Activities

You're looking at how Primis Financial Corp. actually makes money and runs its day-to-day operations as of late 2025. It's a hybrid model, blending traditional community banking with high-growth, specialized national platforms. The key activities really center on managing these distinct, yet interconnected, revenue engines.

The core activity is definitely commercial and retail loan origination and servicing, rooted in the Virginia and Maryland footprint. As of June 30, 2025, the total loans held for investment stood at $3.1 billion. By September 30, 2025, the core bank loans specifically totaled $2.1 billion. This activity is supported by the bank's 24 full-service branches across Virginia and Maryland.

Managing the proprietary digital banking platform and mobile app is a crucial, scalable activity. This platform funds the national strategies without pressuring the core bank relationships. The digital platform ended the third quarter of 2025 with over $1.0 billion of deposits. A key component of deposit gathering is the non-interest-bearing demand deposit (DDA) accounts, which grew 16% year-over-year to reach $490 million at September 30, 2025. Management is also working on making the V1BE delivery app easier to license, expecting the first customer onboard before the end of 2025.

Specialized lending through Primis Mortgage and Panacea Financial represents the high-growth, high-yield side of the business. Even though Panacea Financial Holdings was deconsolidated effective March 31, 2025, Primis Bank continues to be the exclusive banking partner for its loans and deposits. Panacea's loan balances grew to $548 million by Q3 2025, marking a 40% year-over-year increase. For Primis Mortgage, the origination run-rates were about $100-120 million/month in Q3 2025, with pre-tax earnings for the mortgage division reaching approximately $1.9 million in that same quarter.

Deposit gathering and cost of funds management is the foundational activity that fuels the lending engine. The overall cost of interest-bearing deposits for the third quarter of 2025 was reported at 2.88%. This is a significant improvement from 3.48% in the same quarter in 2024. The core bank's cost of deposits was even more attractive at 1.73% in Q3 2025. Anyway, the digital platform's cost of deposits in September 2025 was 4.07%.

Here's a quick look at the performance metrics tied to these key activities in Q3 2025:

The management of these activities is also reflected in the overall balance sheet health and operational focus:

• Net Interest Margin (NIM) was 3.18% in Q3 2025.
• Core NIM was 3.15% for Q3 2025.
• Mortgage warehouse balances grew 411% since December 31, 2024.
• The company expects to reduce quarterly expenses by approximately $1.5 million through technology cost reductions.
• New and renewed loan yields are booking near 7% with incremental spreads around 4.65%.

The company is defintely focused on scaling the national strategies while maintaining a strong, low-cost core deposit base.

Primis Financial Corp. (FRST) - Canvas Business Model: Key Resources

You're looking at the hard assets that power Primis Financial Corp.'s hybrid strategy-the blend of traditional banking footprint and scalable, tech-driven niche businesses. These aren't just line items on a balance sheet; they are the engines driving the firm's recent profitability improvements.

The sheer scale of the balance sheet provides the foundation. As of September 30, 2025, Primis Financial Corp. reported total assets of approximately $4.0 billion. This asset base supports the entire operation, from the local branch network to the national digital initiatives.

Physical and Digital Infrastructure

Primis Financial Corp. maintains a physical presence that anchors its core community banking, but its competitive edge is increasingly tied to its proprietary technology. The physical footprint consists of a 24 full-service branch network strategically located across Virginia and Maryland. This localized presence helps secure core, low-cost deposits and fosters deep customer relationships.

However, the digital asset is the true differentiator. The firm developed and owns the V1BE (Virtual Interactive Banking Experience) platform, which is described as the nation's first fully digital checking account that also delivers full branch capabilities to the customer's location. You can see the impact of this tech in the deposit mix; by the end of the second quarter of 2025, the digital platform powered by V1BE held almost $1.1 billion in deposits. The company is actively working to turn this internal asset into an external revenue stream, planning to license V1BE to other banks, expecting the first customer onboard before the end of 2025.

Here's a quick look at the V1BE service metrics:

• Services are 100% free for personal and business deposit account holders.
• Services include cash delivery, deposit pickups, and cashier's checks.
• The app allows scheduling of same-day service, with a two-hour response window.

Specialized Lending Teams and Niche Markets

The Key Resources also include the specialized teams that generate higher-margin, scalable revenue outside the immediate branch footprint. The most prominent is Panacea Financial, which focuses on serving medical professionals and their practices nationwide. This division is a clear example of a defensible niche market resource.

The growth in these specialized areas has been substantial, especially following the strategic deconsolidation of the Panacea Financial Holdings entity as of March 31, 2025, which simplified reported operating ratios.

The performance of these niche businesses as of late 2025 is detailed below:

The Mortgage Warehouse team, expanded in the fall of 2024, shows rapid scaling; its outstanding loan balances grew 411% from $64 million at December 31, 2024, to $327 million by September 30, 2025. That's real growth in a non-local, scalable asset class. The Panacea division also continues to target significant growth, aiming to bank 10,000 professionals by the end of 2025.

Honestly, the combination of the $4.0 billion asset base, the proprietary V1BE technology, and the high-growth, tech-enabled niche lending teams forms the core resource advantage for Primis Financial Corp. Finance: draft 13-week cash view by Friday.

Primis Financial Corp. (FRST) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Primis Financial Corp. (FRST) over competitors, grounded in their late 2025 positioning. It's a blend of traditional security and modern digital speed.

Hybrid model: FDIC-insured stability with fintech innovation.

Primis Financial Corp. offers the safety of an FDIC-insured institution combined with the agility of a tech company. As of September 30, 2025, Primis had total assets of $4.0 billion. The company maintained a tangible common equity ratio of 7.48% of tangible assets at the end of the third quarter of 2025, totaling $289 million. This structure supports a digital platform that drives funding quality, with noninterest-bearing demand deposits reaching $490 million at September 30, 2025, representing an annualized growth rate of 16% compared to September 30, 2024.

Zero-fee checking accounts and ATM fee refunds.

The value proposition for consumers is heavily weighted toward fee elimination and high yield on checking. The Primis Premium Checking account is recognized as a top offering for 2025.

• No annual or monthly fees.
• No overdraft fees.
• ATM transaction fees at non-Primis ATMs are refunded.
• Minimum opening deposit of just $1.

For example, the Primis Premium high-yield checking account was reported to pay an Annual Percentage Yield (APY) of 5.07% in one report, while another source noted a rate of 4.05% effective July 18, 2025.

Specialized financial products for medical professionals (Panacea).

Panacea Financial, a division of Primis Bank, specifically targets physicians, dentists, and veterinarians, aiming to defend their time and enhance financial freedom. This division, alongside Mortgage Warehouse lending, is cited as a driver of revenue strength. As of the third quarter of 2025, Panacea loans stood at $548 million, marking a year-over-year increase of 40%. Primis also recorded a pre-tax gain between $6.5 million and $7.0 million from the sale of a portion of its stake in Panacea Financial Holdings in mid-2025.

High-touch, localized commercial banking for SMBs.

Primis Bank supports small- and medium-sized businesses through its physical presence and strong deposit base. The bank operates 25 full-service locations across Virginia and Maryland. The core bank's balance sheet strength is highlighted by its low concentration in Investor CRE, which represented 213% of regulatory capital as of September 30, 2025. The company emphasizes operational leverage, with core operating expenses reported at $21.6 million in Q3 2025.

Here's a quick look at key metrics tied to these value propositions as of Q3 2025:

Early direct deposit up to two days early.

A key digital benefit is the ability for customers to access funds faster than traditional schedules allow. Primis Financial Corp. offers early direct deposit, which can credit customer accounts up to two days early compared to the scheduled payday. This feature is part of the package that helped the Primis Premium Checking account win the WalletHub Best Overall Online Checking Account for 2025 award.

Primis Financial Corp. (FRST) - Canvas Business Model: Customer Relationships

You're looking at how Primis Financial Corp. (FRST) keeps its customers engaged, which is a blend of old-school local banking and modern digital tools. They focus on keeping support local and accessible, which is a key differentiator against purely digital banks.

Dedicated, Virginia-based 24/7/365 customer care center.

Primis Financial Corp. maintains a commitment to human support by staffing its customer care center entirely with its own teammates, explicitly avoiding overseas outsourcing. This center is available 24/7/365. You can reach them at 1-833-4PRIMIS. This local staffing is a core part of their service promise, contrasting with many digital-first competitors.

Automated digital self-service via mobile and online banking.

The digital experience is clearly a major channel. As of the third quarter of 2025, Primis Financial Corp. reported that its digital platform had achieved over $1.0 billion in deposits. Furthermore, their proprietary V1BE delivery app directly supports more than $200 million of mostly commercial client balances within their footprint. The success of this digital approach is shown by the fact that over 1,000 digital accounts were acquired through customer referrals in the period leading up to Q3 2025. To be fair, the digital platform's effectiveness is also recognized externally; one of their digital accounts was named the 2025 Best Overall Checking Account by WalletHub.

• Digital Deposits (Q3 2025): >$1.0 billion.
• Checking Accounts using V1BE weekly (Q2 2025): Approximately $30 million.
• Consumer accounts with over two years tenure (Q3 2025): Approximately 77%.

Personalized relationship managers for commercial and wealth clients.

For their specialized segments, Primis Financial Corp. deploys dedicated relationship management, particularly through its Panacea Financial division, which targets professionals nationwide. Panacea Financial had loan balances reaching $548 million as of the third quarter of 2025, marking a 40% year-over-year increase. They bank over 7,000 professionals and practices across the country, with a stated goal to reach 10,000 customers by the end of 2025. This suggests a high-touch, personalized approach for these higher-value, specialized relationships.

Community-focused service model in core regional markets.

The foundation of Primis Financial Corp.'s relationship model remains its physical presence in its core markets. The core bank operates 24 full-service branches across Virginia and Maryland. This localized decision-making helps them maintain a competitive edge; for instance, the core bank's cost of deposits was reported as up to 100 basis points lower than equal-sized peers in the greater Washington, D.C. region in early 2025.

Here's a quick look at the scale of these relationship-driven segments as of late 2025 data:

The bank's strategy clearly uses its local branch network to secure core, low-cost deposits while using specialized digital platforms like V1BE and Panacea to drive scalable, high-growth relationships outside the immediate region. Finance: draft the Q4 2025 customer acquisition cost analysis by next Tuesday.

Primis Financial Corp. (FRST) - Canvas Business Model: Channels

You're looking at how Primis Financial Corp. gets its value proposition-banking services-out to its customers. It's a hybrid model, blending the traditional community bank feel with scalable national digital plays. This mix is key to their growth story in 2025.

The physical footprint remains important for relationship banking and deposit gathering in their core markets. Primis Bank, the banking subsidiary, maintains an established physical presence, which supports localized decision-making and lending for small and mid-sized businesses in those areas. This foundation is what allows the scalable growth initiatives to work without straining local relationships.

The physical channel is defined by:

• 24 full-service branch locations operating across Virginia and Maryland as of June 30, 2025.
• Specific locations include branches in Ashland, Broad St. Richmond, Burgess, Callao, Colonial Heights, and McLean, among others.

The digital channels are where Primis shows its scalable ambition, especially in funding its national strategies. The digital platform is designed to be highly functional and safe, allowing the company to expand access without needing a corresponding increase in physical branches. In fact, the digital platform ended the third quarter of 2025 with over $1.0 billion of deposits. To be fair, this digital deposit growth is a major component of their overall funding advantage.

The digital delivery mechanisms include:

• The Primis Digital Banking mobile application, available on iOS and Android platforms.
• An online banking portal serving both retail and business accounts.
• The V1BE delivery app, which the company is enhancing to make easier to license to other banks, with the first customer expected to onboard in the near future.
• As of Q3 2025, approximately $30 million of checking accounts were associated with customers using V1BE weekly.
• One of Primis Bank's digital accounts was recognized as the 2025 Best Overall Checking Account by WalletHub.

The specialized divisions utilize direct sales teams to push their niche, high-yielding products, which are funded by the core bank and the digital platform. These teams are critical for driving growth in areas outside the traditional community bank footprint. Here's a quick look at the scale of these specialized channels as of the third quarter of 2025:

The direct sales efforts for Panacea Financial are supported by recruiting healthcare bankers, using brand recognition, social media, and endorsements from industry associations to drive loan growth. The mortgage warehouse lending activity saw significant growth, with balances up 411% from December 31, 2024, to September 30, 2025. This growth in specialized lending, supported by direct sales engagement, is a core part of Primis Financial Corp.'s strategy to enhance profitability.

Primis Financial Corp. (FRST) - Canvas Business Model: Customer Segments

Primis Financial Corp. serves distinct customer groups through its core bank operations and specialized national divisions.

Individuals seeking digitally-enabled, no-fee retail banking.

• Digital deposits on the platform exceeded $1.0 billion as of September 30, 2025.
• The platform ended the third quarter of 2025 with over $1.0 billion of deposits.
• Approximately 77% of these consumer accounts have been with Primis Financial Corp. for over two years (as of 3Q25).
• The cost of deposits on the digital platform decreased by 58 basis points in the first quarter of 2025 versus the fourth quarter of 2024.

Small- and medium-sized businesses (SMBs) in the Mid-Atlantic region.

This segment is primarily served by the Core Bank, which maintains a physical presence across the region.

The core bank's cost of deposits was reported at 1.83% in the first quarter of 2025.

Medical professionals nationwide (via Panacea Financial).

Panacea Financial operates as a national brand targeting this specialized professional group.

• Panacea Financial loans outstanding reached $548 million at September 30, 2025.
• This represents growth of 40% over the twelve months ending September 30, 2025.
• Customer deposits attributable to Panacea totaled $133 million at the end of the third quarter of 2025.
• This deposit figure was up 47% from September 30, 2024.
• As of June 30, 2025, Panacea Financial was banking over 7,000 professionals and practices nationwide.
• The stated goal for this segment was reaching 10,000 customers by the end of 2025.

Real estate developers and investors (Commercial Real Estate).

This focus is heavily supported by the Mortgage Warehouse lending activity.

Mortgage warehouse outstandings grew 411% from December 31, 2024, when the balance was $64 million.

Primis Financial Corp. (FRST) - Canvas Business Model: Cost Structure

You're looking at the expense side of Primis Financial Corp.'s (FRST) operations as of late 2025, which is heavily influenced by interest rates and strategic investments in scalable platforms. The cost structure is a mix of traditional banking interest costs and operating expenses tied to their hybrid growth strategy.

The most direct cost tied to funding is the Interest expense on deposits. For the third quarter of 2025, the cost of interest-bearing deposits settled at 2.88%. This is an improvement, down from 3.48% reported in the same quarter of 2024, reflecting successful management of deposit pricing, especially following the late September Federal Reserve rate reduction. Also, note that the digital platform's cost of deposits specifically was 4.07% in September 2025, down from 4.91% the prior year, showing the stickiness and relative cost advantage of those digital relationships.

Total Noninterest expense for the third quarter of 2025 was reported at $32 million. That's a slight increase from the $31 million reported in the third quarter of 2024. Honestly, a good chunk of that increase is tied to specific, non-recurring items that management expects to normalize. For instance, expenses in Q3 2025 included $1.1 million in legal fees related to mortgage recruiting, which they anticipate will decline in the fourth quarter of 2025 and the first quarter of 2026.

When you strip out those temporary items, you get a clearer picture of the run-rate operating costs. Management estimated the core operating expense burden for Q3 2025 was around $21.6 million. This figure is key because it relates directly to the scalability of their technology and personnel structure.

Here's a breakdown of the key cost elements we see in the Q3 2025 reporting:

• Cost of Interest-Bearing Deposits: 2.88%
• Total Noninterest Expense: $32 million
• Legal Fees (Non-recurring component): $1.1 million
• Core Operating Expense Burden (Adjusted): ~$21.6 million
• Noninterest-Bearing Deposits Growth: 16% year-over-year

The focus on Technology and core processing costs is part of driving that core expense burden down. Primis Financial is leveraging its scalable strategies, like the V1BE service, to grow revenue without a proportional increase in operating expenses, which is the definition of operating leverage. This means the cost to service new customers through digital channels should be lower than the cost associated with maintaining legacy infrastructure or expanding physical footprints.

Regarding Personnel costs for branch staff and specialized lending teams, these are embedded within the noninterest expense. The bank maintains an established footprint of 24 branches across Virginia and Maryland, which necessitates staffing costs for branch personnel. However, the growth in specialized divisions like Panacea Financial and Primis Mortgage Company means personnel costs are also shifting toward specialized lending teams, which are expected to drive higher, more profitable revenues. The fact that revenue increased by about $5 million quarter-over-quarter while expenses only rose by about $0.4 million points to this operating leverage working, meaning personnel and tech costs aren't scaling as fast as the revenue they support.

To put the main components side-by-side, here's a look at the reported figures:

The management's goal is clearly to keep the cost of funding low while ensuring that the operating expenses, which include technology and personnel, are generating outsized revenue growth. Finance: draft 13-week cash view by Friday.

Primis Financial Corp. (FRST) - Canvas Business Model: Revenue Streams

You're looking at how Primis Financial Corp. actually brings in the money, focusing on the hard numbers from their latest reported quarter, Q3 2025. It's a mix of traditional banking spread and growth from specialized, scalable platforms. Here's the quick math on the main drivers.

The primary engine remains the spread between what Primis earns on its assets and what it pays for its liabilities. The Net Interest Income (NII) generation showed significant improvement, with the Net Interest Margin (NIM) hitting 3.18% for Q3 2025. This NIM compares favorably to the 2.97% reported in the same quarter of 2024.

The reported NII for the third quarter of 2025 was $29 million. To be fair, this figure was impacted by about $0.7 million in interest reversals on loans that moved to nonaccrual status; without those reversals, the NII would have been closer to $30 million.

Beyond the core lending spread, Noninterest Income from fees and service charges provided a solid contribution, totaling $12 million in Q3 2025. This was an increase from $10.6 million in the linked second quarter.

Here is a breakdown of the key revenue components for Primis Financial Corp. based on Q3 2025 performance:

The Mortgage banking activity income, driven by Primis Mortgage Company, showed strong recovery, posting pre-tax earnings of approximately $1.9 million in Q3 2025. This was a substantial jump from the $0.1 million in pre-tax earnings reported in Q2 2025. The company funded 59% more loans in September 2025 than in September 2024, showing scale in that area.

The growth in specialized lending and deposit services is clearly visible in the scaling of the Panacea Financial division and the mortgage warehouse business. These are designed to be scalable, nationwide revenue generators that complement the core bank footprint. The revenue streams here are tied to the asset balances on their books:

• Panacea Financial loans balance reached $548 million as of September 30, 2025, marking a 40% growth year-over-year.
• Mortgage warehouse outstandings stood at $327 million at the end of Q3 2025.
• This warehouse balance represents a 411% increase from the $64 million reported at December 31, 2024.
• Income from the Consumer Program, which is becoming immaterial, contributed $0.3 million to Noninterest Income in Q3 2025.

The strategy here is clear: use the stable, low-cost deposit base from the 24 Virginia and Maryland branches-where noninterest-bearing deposits grew 16% year-over-year to $490 million-to fund these higher-yielding, scalable niche businesses. Finance: draft Q4 2025 revenue projection based on current loan pipeline growth by Monday.