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MCLEAN, Va. - Primis Financial Corp. (NASDAQ: FRST), a Virginia-based financial institution, has recently announced its efforts to comply with Nasdaq's listing requirements after experiencing delays in its financial reporting. The company filed its restated Annual Report for 2022 on Monday and expects to file its 2023 Annual Report by October 11, 2024. Primis is also aiming to submit its overdue Quarterly Reports by October 31, which should restore its compliance with Nasdaq standards.
Primis encountered difficulties meeting the original Nasdaq deadline, leading to a notification on October 3 that its shares might face delisting. In response, the company has appealed for a hearing, which has temporarily halted any trading suspension until at least October 23. Primis is seeking an extension of this stay until a final decision is reached by the Nasdaq Hearings Panel.
The delay in filings relates to noncompliance with Nasdaq Listing Rule 5250(c)(1), which mandates timely submission of periodic reports. Despite the notice, Primis shares continue to trade on Nasdaq, and the company does not expect any change in its listing status before completing its filings.
Primis, with $4.0 billion in assets and a network of full-service branches in Virginia and Maryland, remains focused on resolving its reporting delays and regaining full compliance with Nasdaq's listing requirements. The company's progress report is based on a press release statement and reflects its current status and plans for addressing Nasdaq's compliance concerns.
In other recent news, Primis Financial Corp has reported significant changes in its financial reporting and auditing procedures. The company has announced an auditor change, with Forvis Mazars LLP not standing for re-appointment after the fiscal year ending December 2024. Additionally, Primis Financial has disclosed material weaknesses in its internal control over financial reporting for fiscal years 2022 and 2023, related to evaluating complex agreements, accounting for asset transfers, and assessing credit losses.
The company has also revealed plans to restate its financial reports due to accounting errors discovered in a portfolio of consumer loans. This restatement, carried out in collaboration with Forvis Mazars LLP, has resulted in a reevaluation of the company's internal controls over financial reporting. The company has been grappling with Nasdaq delinquency due to late financial filings, attributed to the need for this restatement, and has been granted an extension until September 30, 2024, to file the overdue reports.
Despite these challenges, Primis Financial Corp reported strong Q2 performance, with earnings reaching $7.8 million. This is a significant improvement from the net loss of $311,000 in the same period last year. The company's total loans hit $835 million and total deposits neared $1 billion across all business lines. Analyst Matthew Switzer anticipates future expenses to hover around the mid-$19 million range. The company is also planning to deconsolidate PFH, a move expected to enhance tangible book value and capital ratios.
InvestingPro Insights
As Primis Financial Corp. (NASDAQ: FRST) works to regain compliance with Nasdaq's listing requirements, recent financial data and analyst insights from InvestingPro offer a more comprehensive view of the company's current position.
Despite the reporting delays, Primis has shown strong revenue growth. According to InvestingPro data, the company's revenue grew by 25.45% over the last twelve months as of Q4 2023, reaching $135.6 million. This growth trend is even more pronounced in the quarterly figures, with a 35.18% increase in Q4 2023. These metrics suggest that Primis's core business remains robust despite its regulatory challenges.
InvestingPro Tips highlight that analysts expect Primis to be profitable this year, with net income projected to grow. This positive outlook is supported by the fact that two analysts have revised their earnings estimates upward for the upcoming period. These projections could provide some reassurance to investors concerned about the company's financial health amidst its reporting issues.
It's worth noting that Primis has maintained dividend payments for 13 consecutive years, as per another InvestingPro Tip. This consistency in shareholder returns, coupled with a current dividend yield of 3.5%, may help retain investor confidence during this period of regulatory uncertainty.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. The platform currently lists 7 more tips for Primis Financial Corp., providing a deeper understanding of the company's financial position and future prospects.
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