Business Context and Reporting Period
This Form 8-K Current Report was filed by First Guaranty Bancshares, Inc. on April 8, 2022. The filing addresses a corporate governance event regarding the company's independent registered public accounting firm.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on the change in the registrant's certifying accountant.
Material Changes
- Accountant Resignation: Castaing, Hussey & Lolan, LLC advised the Audit Committee on April 8, 2022, that it is declining reappointment as the independent registered public accounting firm for the fiscal year ending December 31, 2022.
- Continued Service: The firm will continue to serve as the independent auditor for interim periods in 2022 until a successor is appointed.
- Scope of Work: Castaing, Hussey & Lolan, LLC will continue to provide tax compliance services and audit the employee benefit plan.
Outlook, Risks, and Management Commentary
- Audit History: The audit reports for the years ended December 31, 2021, and 2020, did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles.
- Disagreements: There were no disagreements with the outgoing firm on accounting principles, practices, financial statement disclosures, or auditing scope/procedures during the relevant periods.
- Succession Plan: First Guaranty is currently interviewing alternative independent registered public accounting firms to succeed the outgoing firm.
- Regulatory Compliance: The company provided the disclosure to the outgoing firm prior to filing, and the firm's response letter is attached as Exhibit 16.1.
Key Facts for Investor Verification
- Verify the appointment of a new independent registered public accounting firm for the 2022 fiscal year.
- Review the attached letter from Castaing, Hussey & Lolan, LLC (Exhibit 16.1) for any additional context regarding the decline of reappointment.
- Monitor future filings for the name of the successor auditor and the effective date of the transition.