Business Context and Reporting Period
Company: South Plains Financial, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: October 21, 2021
Reporting Period: The filing addresses a corporate governance event occurring on October 20, 2021, regarding the appointment of an independent registered public accounting firm for the fiscal year ending December 31, 2022.
Key Financial Metrics
This filing is a current report regarding a change in certifying accountant and does not contain financial performance data. The filing text does not provide values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
The primary material change disclosed is the replacement of the Company's independent registered public accounting firm:
- Outgoing Firm: Weaver and Tidwell, L.L.P. ("Weaver") was dismissed effective upon the completion of procedures for the year ending December 31, 2021, and immediately following the filing of the 2021 Form 10-K.
- Incoming Firm: BKD, LLP ("BKD") was appointed as the independent registered public accounting firm for the fiscal year ending December 31, 2022, effective on the same date as Weaver's dismissal.
- Process: The Audit Committee conducted a competitive review process involving several firms, including the incumbent.
Guidance, Outlook, and Risks
Management Commentary and Disagreements:
The Company reported no disagreements with Weaver during the two most recent fiscal years and the subsequent interim period through October 21, 2021, regarding accounting principles, financial statement disclosure, or auditing scope. Weaver's reports for 2019 and 2020 were unqualified and did not contain adverse opinions or disclaimers.
Consultations with New Firm:
Prior to BKD's appointment, the Company did not consult BKD regarding accounting principles, audit opinions, or any matters that would constitute a "disagreement" or "reportable event."
Risks and Contingencies:
The filing does not disclose specific financial risks or contingencies beyond the standard transition of audit firms.
Investor Verification Checklist
- Verify the effective date of the transition from Weaver to BKD relative to the filing of the 2021 Form 10-K.
- Review the attached letter from Weaver and Tidwell, L.L.P. (Exhibit 16.1) to confirm their agreement with the statements regarding the dismissal.
- Monitor the upcoming Form 10-K for the fiscal year ended December 31, 2021, to ensure the audit opinion remains unqualified.
- Confirm that BKD has completed its standard client acceptance procedures as noted in the filing.