Primis Financial in McLean, Va., will restate three quarters of financial statements – and amend a fourth – to address accounting issues.
The $3.9 billion-asset company disclosed in a regulatory filing that, following discussions with its accounting firm, it will restate filings for the first three quarters of 2023.
The issue is tied to $33.7 million of loans transferred by Primis Bank to other financial institutions. The company determined that the transfers, which were accounted for as sales, should have been treated as secured borrowings.
The moves will lower net income for the first nine months of 2023 by 26%, to $1.6 million.
Primis also plans to amend its fourth-quarter results to address accounting tied to a third-party managed loan portfolio. The change will increase quarterly net income by 4%, to $6.1 mllion.
The company that, as a result of the inaccuracies, it plans report a material weakness in its internal controls.
“Management intends to implement and enhance controls to remediate any control deficiencies that exist,” the filing said. A remediation plan will be described in the company’s annual report.