Primis Financial Corp. (FRST): auditor change — Primis Financial restates 2023 interim results; loan transfers wrongly treated as sales; Q4 earnings no longer reliable

Primis Financial Corp.

Restates Q1-Q3 2023 results: $33.7M loan transfers mischaracterized as sales; accounted as secured borrowings.
Q1 2023 net income revised from $5.953M to $5.692M; EPS from $0.24 to $0.23; loans and borrowings increased.
Q4 2023 earnings release withdrawn due to subsequent event recognition and insufficient allowance for credit losses.
Management expects to report a material weakness in internal control over financial reporting.
Preliminary restated Q4 2023 shows EPS changed from $0.33 to $0.34; no material impact on net income.

item 4.02

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Primis Financial Corp. reported that prior financial statements should not be relied upon.

Action: non reliance
Auditor: FORVIS, LLP

Exact text from the filing

iscussions with the Company’s independent registered public accounting firm, FORVIS, LLP, that the Company’s previously-issued unaudited interim consolidated financial statements as of and for the three months ended March 31, 2023, the three and six months ended June 30, 2023, and the three and nine months ended September 30, 2023 (the “ Impacted Financial Statements ”) should no longer be relied upon. The accounting matters underlying the Company’s conclusion relate to transfers of loans by the Company’s subsidiary, Primis Bank, of approximately $33.7 million (the “Transferred Loans”) to other financial institutions over the first, second, and third quarters of 2023. As part of the Company’s year-end reporting process in the first quarter of 2024, the Company determined that the transfer of the Transferred Loans from Primis Bank to other financial institutions did not qualify for sales

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Source: SEC EDGAR

accession 0001104659-24-030038

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