8-K: First Northwest Bancorp Announces Auditor Change Following Moss Adams Merger with Baker Tilly

First Northwest Bancorp has appointed Baker Tilly US, LLP as its new independent registered public accounting firm, succeeding Moss Adams LLP, due to a merger between Moss Adams and Baker Tilly.

Summary

• First Northwest Bancorp (the "Company") announced a change in its independent registered public accounting firm.
• Moss Adams LLP ("Moss Adams"), the Company's previous auditor, ceased to serve in that capacity effective June 3, 2025, due to its merger with Baker Tilly US, LLP ("Baker Tilly").
• The combined audit practices will now operate under the name Baker Tilly US, LLP.
• The Audit Committee of the Company's Board of Directors approved the appointment of Baker Tilly as the successor to Moss Adams.
• Audit reports issued by Moss Adams for the years ended December 31, 2024, and 2023, and for internal control over financial reporting as of December 31, 2024, did not contain any adverse opinions, disclaimers, or qualifications.
• There were no disagreements on accounting principles, financial statement disclosure, or auditing scope/procedure with Moss Adams during the years ended December 31, 2024, and 2023, or the subsequent interim period through June 3, 2025.
• No reportable events requiring disclosure pursuant to Item 304(a)(1)(v) of Regulation S-K occurred.
• The Company did not consult with Baker Tilly regarding accounting principles or audit opinions prior to the merger's effectiveness.
• Moss Adams LLP provided a letter to the SEC confirming its agreement with the statements made by First Northwest Bancorp in the Form 8-K.

Sentiment

Score: 7

Explanation: The sentiment is positive because the change in auditor is due to a merger, not performance issues or disagreements. The company explicitly states there were no adverse opinions, disclaimers, or disagreements with the outgoing auditor, indicating a smooth and routine transition.

Positives

• The transition of the independent registered public accounting firm was a result of a merger between the previous firm and the new firm, indicating a non-contentious change.
• Moss Adams LLP's audit reports for the years ended December 31, 2024, and 2023, and internal control over financial reporting as of December 31, 2024, contained no adverse opinions, disclaimers, or qualifications.
• There were no disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure with Moss Adams.
• No reportable events requiring disclosure were identified during the specified periods, indicating a clean audit history with the outgoing firm.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding the company's financial performance or strategic direction, focusing solely on the change in its certifying accountant.

Management Comments

• Matthew P. Deines, President and Chief Executive Officer, signed the report on behalf of First Northwest Bancorp.

Industry Context

Changes in a company's independent registered public accounting firm are common occurrences in the financial industry, often stemming from mergers and acquisitions among accounting firms, or a company's decision to seek new audit services. This specific change is a direct result of a merger between two significant accounting firms, Moss Adams and Baker Tilly, which is a broader industry trend of consolidation among professional services firms. Such changes are closely monitored by investors to ensure continuity of audit quality and independence.

Corporate Governance

Stakeholder Impact

• Shareholders: The change in auditor, being a result of a merger and without any reported disagreements or issues, provides continuity in the independent oversight of financial statements, which is crucial for investor confidence.
• Employees: No direct impact on company employees is indicated, but employees of the former Moss Adams LLP audit team working on First Northwest Bancorp's account would now be part of Baker Tilly US, LLP.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated by this filing.

Key Dates

Keywords

First Northwest Bancorp, FNWB, SEC filing, Form 8-K, auditor change, independent registered public accounting firm, Moss Adams LLP, Baker Tilly US LLP, accounting firm merger, audit committee, financial reporting, corporate governance