Business Context and Reporting Period
Company: Coastal Financial Corporation (CCB)
Filing Type: Form 8-K (Current Report)
Date of Report: June 3, 2025
Principal Event: Change in Registrant's Certifying Accountant due to a merger.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on the administrative change of the independent registered public accounting firm.
Material Changes Versus Prior Period
- Accountant Merger: Moss Adams LLP merged with Baker Tilly US, LLP effective June 3, 2025.
- Resignation and Appointment: Moss Adams resigned as the Company's auditor. The Audit Committee approved the appointment of Baker Tilly US, LLP as the successor independent registered public accounting firm.
- Audit History: Moss Adams issued unqualified opinions on the consolidated financial statements for the years ended December 31, 2024, and 2023. However, the audit report on internal control over financial reporting as of December 31, 2024, contained an adverse opinion.
- Disagreements: No disagreements regarding accounting principles, practices, or audit scope occurred between the Company and Moss Adams during the relevant periods.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms that no consultations were held with Baker Tilly regarding accounting principles or potential audit opinions prior to the appointment. The Company provided Moss Adams with a copy of this report prior to filing, and Moss Adams' letter of no objection is filed as Exhibit 16.1.
Risks and Contingencies: The primary risk factor disclosed is the historical adverse opinion on internal controls over financial reporting as of December 31, 2024. No new risks or unusual items are disclosed in this specific report.
Important Facts for Investor Verification
- Verify the status of the adverse opinion on internal controls over financial reporting issued for the period ended December 31, 2024, and any remediation plans.
- Confirm the transition timeline and continuity of the audit process between Moss Adams and Baker Tilly US, LLP.
- Review the attached Exhibit 16.1 (Moss Adams Letter) for any additional qualifications or statements not summarized in the main text.