Citizens Community Bancorp Inc. (CZWI) - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Citizens Community Bancorp Inc., a Maryland corporation, on March 12, 2020. The report discloses a change in the Company's independent registered public accounting firm for the fiscal year ending December 31, 2020.
Financial Metrics
The filing does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the administrative change of the external auditor.
Material Changes
The primary material change reported is the termination of the relationship with Baker Tilly Virchow Krause, LLP, and the selection of Eide Bailly LLP as the new independent registered public accounting firm. This decision was approved by the Audit Committee on March 12, 2020, following a competitive process.
Management Commentary and Risks
- Audit History: Baker Tilly's reports for the fiscal years ended December 31, 2019, and the transition period ended December 31, 2018, did not contain adverse opinions or disclaimers. However, they included specific exclusions regarding internal control assessments for acquired entities (United Bank and F. & M. Bancorp. of Tomah, Inc.) which constituted less than 25% of consolidated assets and revenues at the time of acquisition.
- Disagreements: The Company confirmed there were no disagreements with Baker Tilly regarding accounting principles, financial statement disclosures, or auditing scope during the relevant periods.
- Consultation: The Company has not consulted with Eide Bailly regarding accounting principles or audit opinions prior to this selection.
- Shareholder Action: The selection of Eide Bailly will be presented to shareholders for ratification at the 2020 Annual Meeting of Shareholders.
Key Facts for Investor Verification
- Verify the ratification of Eide Bailly LLP at the upcoming 2020 Annual Meeting of Shareholders.
- Review the letter from Baker Tilly Virchow Krause, LLP (Exhibit 16.1) to confirm their agreement with the Company's disclosures regarding the change.
- Monitor future filings for the first financial statements audited by Eide Bailly LLP to assess any changes in audit scope or reporting style.
- Note that the change in auditor does not indicate any financial distress or accounting irregularities, as no disagreements or reportable events were cited.