Primis Financial Corp. (NASDAQ:FRST), a Virginia-based state commercial bank, has announced the appointment of Crowe LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2024. The change comes after the company's previous auditor, Forvis Mazars LLP, declined to stand for reappointment for the upcoming fiscal year.
The decision was made by the Audit Committee of Primis Financial Corp. on September 19, 2024, and Crowe formally accepted the appointment on Wednesday. During the fiscal years of 2023 and 2022, and the subsequent interim period through Wednesday, Primis Financial did not consult Crowe on any matters requiring disclosure under the SEC's regulations, except for advice sought on revenue and expense allocations related to a consumer loan portfolio agreement.
This engagement with Crowe follows the SEC's completion of a consultation on August 9, 2024, regarding the accounting for the said agreement. As a result, the company revised its accounting for the agreement, which has been reflected in its amended 2022 and 2023 fiscal year results.
Primis Financial Corp. is continuing its relationship with Forvis for the restatement of its previously-issued unaudited interim consolidated financial statements for certain periods in 2023, as well as the review of its interim financial statements for the quarter ending March 31, 2024.
In other recent news, Primis Financial Corp. has been navigating a series of significant developments. The company has taken measures to regain compliance with Nasdaq's listing requirements, following delays in its financial reporting. Primis filed its restated Annual Report for 2022 and plans to file its 2023 Annual Report by October 11, 2024, along with its overdue Quarterly Reports by October 31.
Primis Financial has also announced a change in its independent registered public accounting firm, Forvis Mazars LLP, which will not stand for re-appointment after the fiscal year ending December 2024. The company has disclosed material weaknesses in its internal control over financial reporting for fiscal years 2022 and 2023.
The company is restating its financial reports due to accounting errors discovered in a portfolio of consumer loans. Despite these challenges, Primis Financial reported strong Q2 performance, with earnings reaching $7.8 million, a significant improvement from the net loss of $311,000 in the same period last year.
Analyst Matthew Switzer anticipates future expenses to hover around the mid-$19 million range. Primis Financial is also planning to deconsolidate PFH, a move expected to enhance tangible book value and capital ratios. These are recent developments in the company's operations.
InvestingPro Insights
As Primis Financial Corp. (NASDAQ:FRST) navigates this transition in its accounting firm, investors may find additional context from recent financial data and analyst insights valuable. According to InvestingPro, Primis Financial's market capitalization stands at $305.66 million, reflecting its position in the regional banking sector.
Despite recent challenges, InvestingPro Tips highlight some positive indicators for the company. Notably, net income is expected to grow this year, and analysts predict the company will return to profitability. This outlook aligns with the company's efforts to refine its financial reporting and governance, as evidenced by the appointment of Crowe LLP and the ongoing restatement process.
Investors should also note that Primis Financial has maintained dividend payments for 13 consecutive years, demonstrating a commitment to shareholder returns even during periods of transition. The current dividend yield is 3.25%, which may be attractive to income-focused investors.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into Primis Financial's financial health and market position.
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