After nearly three years and $3.5 million of expenses, a northern Virginia community bank appears poised to reap substantial bottom-line benefits from an online lending unit that caters to doctors, dentists and veterinarians.
Primis Financial’s Panacea division — which sprang from an alliance between the bank and two doctors-turned-entrepreneurs — generated $750,000 in pretax, pre-provision net income during the fourth quarter, up from $225,000 three months earlier. Now, with Panacea’s buildout essentially complete and loan originations projected to reach as high as $200 million, the McLean-based Primis is projecting significant profit growth throughout 2023.
The results highlight the potential benefits of prudent partnerships between fintechs and small banks. It’s also a lesson about the importance of diversified business lines, one expert said.
