8-K: BayCom Corp Appoints Baker Tilly as New Auditor Following Moss Adams Merger

BayCom Corp has announced a change in its independent registered public accounting firm from Moss Adams LLP to Baker Tilly US, LLP, effective June 3, 2025, due to a merger between the two accounting firms.

Summary

• BayCom Corp's independent registered public accounting firm, Moss Adams LLP, merged with Baker Tilly US, LLP on June 3, 2025, with the combined audit practices operating as Baker Tilly US, LLP.
• In connection with the merger, Moss Adams LLP resigned as the Company's auditors.
• The Audit Committee of BayCom Corp's Board of Directors approved the appointment of Baker Tilly US, LLP as the successor independent registered public accounting firm.
• Moss Adams LLP's audit reports for the years ended December 31, 2024, and 2023, did not contain any adverse opinions, disclaimers, qualifications, or modifications.
• There were no disagreements with Moss Adams LLP on any accounting principles, financial statement disclosures, or auditing scope/procedures during the fiscal years 2023, 2024, or the subsequent interim period through June 3, 2025.
• BayCom Corp did not consult with Baker Tilly US, LLP regarding accounting principles or audit opinions prior to their appointment.
• Moss Adams LLP provided a letter to the SEC confirming their agreement with the statements made by BayCom Corp in the Form 8-K filing.

Sentiment

Score: 8

Explanation: The sentiment is positive because the auditor change is a result of a merger, not due to any issues with the company's financial statements or disagreements with the auditor. The outgoing auditor provided clean opinions and confirmed agreement with the company's statements, indicating a smooth and routine transition.

Positives

• The change in auditors was a result of a merger between accounting firms, not due to any disagreements or issues with BayCom Corp's financial reporting or internal controls.
• Moss Adams LLP's audit reports for the fiscal years 2023 and 2024 were clean, containing no adverse opinions, disclaimers, or qualifications.
• There were no reported disagreements on accounting principles, financial statement disclosure, or auditing scope/procedure with the outgoing auditor, Moss Adams LLP.
• The Audit Committee of the Board of Directors formally approved the appointment of Baker Tilly US, LLP, ensuring proper corporate governance in the transition.

Future Outlook

The document primarily reports a change in the company's independent registered public accounting firm due to a merger and does not provide forward-looking statements or guidance regarding the company's financial performance or strategic outlook.

Management Comments

• "BayCom Corp was notified that Moss Adams LLP merged with Baker Tilly US, LLP effective on June 3, 2025."
• "The Audit Committee of the Company's Board of Directors approved the appointment of Baker Tilly, as the successor to Moss Adams, as the Company's independent registered public accounting firm."
• "The audit reports of Moss Adams on the Company's consolidated financial statements for the years ended December 31, 2024 and 2023, did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles."
• "During the years ended December 31, 2024 and 2023, and the subsequent interim period through June 3, 2025, there were no disagreements with Moss Adams on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure."

Industry Context

The accounting industry frequently experiences mergers and acquisitions among firms, leading to changes in auditor relationships for their clients. This specific change reflects a consolidation within the auditing sector, where Moss Adams LLP's audit practice was absorbed by Baker Tilly US, LLP. Such transitions are common and generally do not indicate issues with the client company's financial health, especially when the change is driven by the auditor's corporate actions rather than client-initiated dissatisfaction.

Comparison to Industry Standards

• The transition of auditors due to a merger of accounting firms is a common occurrence in the financial industry, aligning with standard practices when audit firms consolidate.
• The absence of any reported disagreements on accounting principles or auditing scope, and the clean audit opinions from Moss Adams for 2023 and 2024, indicate a smooth and non-contentious transition, which is a positive sign compared to auditor changes driven by financial reporting disputes.
• This situation is comparable to other companies whose auditors have undergone mergers, such as when Grant Thornton merged with other firms or when regional firms are acquired by larger national players, typically resulting in a seamless transfer of audit responsibilities without impacting the client's financial integrity.

Corporate Governance

Stakeholder Impact

• Shareholders: Minimal impact, as the change is administrative and not indicative of financial issues. Provides assurance of continued independent oversight.
• Creditors: Provides assurance of continued independent audit, maintaining confidence in financial reporting.

Key Dates

Keywords

BayCom Corp, BCML, SEC filing, 8-K, auditor change, independent auditor, Moss Adams LLP, Baker Tilly US LLP, accounting firm, financial reporting, corporate governance, audit committee