MCLEAN, Va. - Primis Financial Corp. (NASDAQ: FRST), a bank holding company, has received a delinquency notice from Nasdaq due to its failure to file required periodic financial reports on time. The notification, dated August 21, 2024, indicates non-compliance with Nasdaq Listing Rule 5250(c)(1) after the company did not submit its Quarterly Report for the quarter ended June 30, 2024, as well as previous reports for the year ended December 31, 2023, and the quarter ended March 31, 2024.
The company had previously communicated delays in filing its Annual Report and Quarterly Reports, attributing the need for additional time to a restatement of certain financial statements and consultations with the Office of the Chief Accountant of the Securities and Exchange Commission (SEC). Primis Financial has been granted an extension by Nasdaq until September 30, 2024, to file the overdue reports and plans to update its compliance plan by September 5, 2024.
Despite the delinquency notice, there is no immediate impact on the listing of Primis Financial's securities on Nasdaq. The company has stated its commitment to working diligently to complete the necessary reports and regain compliance with the Listing Rule.
Primis Financial, as of June 30, 2024, reported $4.0 billion in total assets and operates twenty-four full-service branches in Virginia and Maryland, providing financial services to individuals and small- to medium-sized businesses. The company is actively addressing the issues that led to the delayed filings and is focused on meeting its regulatory obligations.
This news is based on a press release statement from Primis Financial Corp. and does not include any speculative information regarding the company's future performance or potential industry trends.
In other recent news, Primis Financial Corp. reported a strong Q2 performance with earnings of $7.8 million, a notable improvement from the net loss of $311,000 in the same period last year. The company's core banking operations demonstrated resilience with steady margins and effective cost controls, contributing to a robust quarter. Total loans reached $835 million and total deposits were just under $1 billion across all business lines. The mortgage division also reported over $1 million in net income.
These recent developments indicate a positive trajectory for Primis Financial Corp. The company anticipates continued strength in its operating results, focusing on deposit growth, commercial lending, and digital capabilities. Plans are also underway to deconsolidate PFH, which is expected to enhance tangible book value and capital ratios.
Analysts, such as Matthew Switzer, expect expenses to be around the mid-$19 million range in future quarters. CEO Dennis Zember highlighted the success of digital account openings and deposit gathering, with a focus on business accounts to strengthen the core market. The company aims to maintain a net interest margin above 3% and sees potential growth opportunities for Panacea and Life Premium Finance.
InvestingPro Insights
Amidst the recent delinquency notice, Primis Financial Corp. (NASDAQ: FRST) has shown signs of financial resilience and potential for future growth. According to InvestingPro data, the company's market capitalization stands at $302.6 million, reflecting its substantial presence in the financial sector. Notably, Primis Financial has maintained a consistent dividend payment history, with dividends being paid for 13 consecutive years, showcasing a commitment to shareholder returns. This is particularly reassuring for investors during a period of uncertainty related to the company's delayed financial filings.
An InvestingPro Tip indicates that analysts expect net income growth for Primis Financial this year, which could signal improving financial health and operational efficiency. Moreover, two analysts have revised their earnings estimates upwards for the upcoming period, suggesting a positive outlook on the company's performance. Additionally, the company has experienced a strong return over the last three months, with a 16.63% price total return, pointing towards investor confidence in its stock.
However, it's important to note that Primis Financial is trading at a high earnings multiple, with a P/E ratio of 30.32. This may indicate a premium valuation compared to the industry average. Also, the company has been quickly burning through cash, which could raise concerns about its liquidity and long-term financial stability. Investors may want to keep an eye on these factors when considering the stock's future prospects.
For those seeking more detailed analysis and additional InvestingPro Tips, there are 6 more tips available at InvestingPro for Primis Financial, which could provide deeper insights into the company's financial metrics and future outlook.
The information provided here is intended to offer a snapshot of Primis Financial's current financial position and analyst expectations, which could be valuable for investors following the company's compliance journey with Nasdaq's Listing Rules.
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