Primis Financial Corp. Announces Notification of Delinquency with Nasdaq
On May 16, 2024, Primis Financial Corp. (NASDAQ: FRST) received a delinquency notification from Nasdaq for failing to timely file its Quarterly Report for Q1 2024 and its Annual Report for 2023. The notification follows a series of delayed filings, including notices on March 18, April 1, and May 13, 2024, due to the company's need for additional time for restatement and pre-clearance with the SEC. Although the letter has no immediate effect on Primis's Nasdaq listing, the company must submit a compliance plan by June 3, 2024. If accepted, Primis has until September 30, 2024, to regain compliance. As of March 31, 2024, Primis reported $3.9 billion in assets, $3.2 billion in loans, and $3.3 billion in deposits. Primis aims to file the delayed reports promptly to meet Nasdaq’s requirements.
- Primis Financial Corp. reported $3.9 billion in total assets as of March 31, 2024.
- The company has $3.2 billion in total loans and $3.3 billion in total deposits.
- Primis provides a range of financial services through 24 branches in Virginia and Maryland, as well as online and mobile applications.
- Nasdaq may grant Primis up to 180 additional days to file its Annual Report if its compliance plan is accepted.
- Primis failed to timely file its Quarterly Report for Q1 2024 and its Annual Report for 2023.
- The company received a delinquency notification from Nasdaq, indicating non-compliance with Nasdaq Listing Rule 5250(c)(1).
- Primis has experienced delays in its financial reporting due to restatements and pre-clearance processes with the SEC.
- If Primis fails to submit a compliance plan by June 3, 2024, or if the plan is not accepted, it could face delisting from Nasdaq.
Insights
The notification of delinquency from Nasdaq is a critical issue for Primis Financial Corp. because it indicates ongoing compliance problems with financial reporting requirements. This situation raises concerns about the company's financial management and transparency. The delay in filing both the Annual and Quarterly Reports suggests potential issues within the company's accounting practices or internal controls.
From a financial perspective, investors should be cautious. The company has disclosed that it needs additional time to restate certain financial statements, which can be a red flag. Restatements can sometimes indicate past inaccuracies in financial reporting and the need for a 'pre-clearance' process with the SEC’s Office of the Chief Accountant suggests significant scrutiny.
However, it’s important to note that the letter has no immediate effect on the listing of the company’s securities on Nasdaq. For now, Primis has until September 30, 2024, to file its Annual Report and regain compliance. Investors should monitor whether the company meets this deadline and any further delays. The company’s disclosure of $3.9 billion in total assets and $3.3 billion in total deposits provides some reassurance about its financial stability, but these numbers need to be taken with caution until the reports are filed.
In the short term, this uncertainty may lead to increased stock volatility. Long-term investors should look for signs of improvement in the company's compliance and internal controls before making any decisions.
Legal implications of the delinquency notice are significant for Primis Financial Corp. Nasdaq Listing Rule 5250(c)(1) mandates timely filing of periodic financial statements and non-compliance can eventually lead to delisting from the exchange. While the current notification letter doesn’t immediately affect the company’s listing status, it sets a strict timeline for compliance.
The 60-day period ending on June 3, 2024, for submitting a compliance plan is a critical juncture. If the compliance plan is accepted, Primis may receive an extension until September 30, 2024, to file the necessary reports. Failure to meet these deadlines can result in further regulatory action, including potential delisting, which would severely impact investor confidence and limit the stock’s liquidity.
Investors should be aware that ongoing issues with financial reporting can also expose the company to shareholder litigation. Shareholders might allege that the company failed to disclose material information or misrepresented its financial health. The legal scrutiny involved in the 'pre-clearance' process with the SEC’s Office of the Chief Accountant indicates substantial underlying issues that need to be resolved.
In essence, while the company attempts to rectify its compliance issues, the legal oversight and impending deadlines add layers of risk and complexity. Stakeholders must closely monitor the company’s disclosures and compliance efforts in the coming months.
As previously disclosed in the Notification of Late Filing on Form 12b-25 filed on March 18, 2024, Amendment No. 1 filed April 1, 2024, and in the Notification of Late Filing on Form 12b-25 filed on May 13, 2024 by the Company with the SEC, the Company determined that it required additional time to complete its Annual Report and its Quarterly Report in connection with the restatement of certain financial statements and ongoing "pre-clearance" process with the Office of the Chief Accountant of the Securities and Exchange Commission.
As previously disclosed in the Company's Current Report on Form 8-K filed on April 9, 2024, the Company received a separate delinquency notification (the "Initial Notice") from Nasdaq advising the Company that due to the failure to timely file its Annual Report, the Company is not in compliance with the Listing Rule. In the Initial Notice, Nasdaq provided the Company 60 days, or until June 3, 2024, to submit a plan (the "Plan"), to regain compliance with the Listing Rule. If Nasdaq accepts the Company's plan to regain compliance, then Nasdaq may grant the Company up to 180 calendar days from the prescribed due date of its Annual Report, or until September 30, 2024, to file its Annual Report to regain compliance. The Company intends to submit the Plan to Nasdaq no later than June 3, 2024.
The Company continues to work diligently to complete its Annual Report and Quarterly Report and plans to file its Annual Report and Quarterly Report as promptly as practicable, subject to completion of the pre-clearance process, to regain compliance with the Listing Rule.
About Primis Financial Corp.
As of March 31, 2024, Primis had
Contacts: | Address: |
Dennis J. Zember, Jr., President and CEO | Primis Financial Corp. |
Matthew A. Switzer, EVP and CFO | 1676 International Drive, Suite 900 |
Phone: (703) 893-7400 |
Primis Financial Corp., NASDAQ Symbol FRST
Website: www.primisbank.com
Forward-Looking Statements
This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Such statements can generally be identified by such words as "may," "plan," "contemplate," "anticipate," "believe," "intend," "continue," "expect," "project," "predict," "estimate," "could," "should," "would," "will," and other similar words or expressions of the future or otherwise. These forward-looking statements include, but are not limited to, statements regarding our expectations regarding the impact on, and the timing of the completion and audit (including pre-clearance) of, the Company's financial statements and the filing of the Annual Report and Quarterly Report, which reflect the Company's expectations based upon information presently available to the Company and assumptions that it believes to be reasonable.
Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, the Company's management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements.
Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company's management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company's filings with the Securities and Exchange Commission, the Company's Annual Report on Form 10-K for the year ended December 31, 2022, under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors," and in the Company's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements.
View original content to download multimedia:https://www.prnewswire.com/news-releases/primis-financial-corp-announces-notification-of-delinquency-with-nasdaq-302152961.html
SOURCE Primis Financial Corp.
FAQ
What is the latest Nasdaq notification received by Primis Financial Corp. (FRST)?
What is the compliance deadline for Primis Financial Corp. (FRST) to meet Nasdaq requirements?
What were the total assets reported by Primis Financial Corp. (FRST) as of March 31, 2024?
How many branches does Primis Financial Corp. (FRST) operate?
What caused the delay in Primis Financial Corp. (FRST) filing its financial reports?
