8-K: Northrim BanCorp Announces Auditor Change Following Moss Adams Merger with Baker Tilly

Northrim BanCorp, Inc. 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

• Northrim BanCorp, Inc. (the Company) was notified on June 3, 2025, that its independent registered public accounting firm, Moss Adams LLP, merged with Baker Tilly US, LLP.
• Following the merger, the combined audit practices will operate as Baker Tilly US, LLP, leading to Moss Adams LLP's resignation as the Company's auditors.
• The Audit Committee of Northrim BanCorp's Board of Directors approved the appointment of Baker Tilly US, LLP as the new independent registered public accounting firm on June 3, 2025.
• Audit reports issued by Moss Adams LLP 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 with Moss Adams LLP on accounting principles, financial statement disclosure, or auditing scope or procedure during the periods ended December 31, 2024, and 2023, or the subsequent interim period through the merger date.
• The Company did not consult with Baker Tilly US, LLP regarding the application of accounting principles or potential audit opinions prior to their appointment.

Sentiment

Score: 7

Explanation: The sentiment is generally neutral to slightly positive. While an auditor change can sometimes signal underlying issues, this change is due to a merger, and the company explicitly states there were no disagreements or reportable events with the prior auditor, indicating a smooth and non-contentious transition.

Positives

• The audit reports of Moss Adams LLP for the years ended December 31, 2024, and 2023, and internal control over financial reporting as of December 31, 2024, did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified.
• There were no disagreements with Moss Adams LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
• No reportable events requiring disclosure pursuant to Item 304(a)(1)(v) of Regulation S-K occurred with Moss Adams LLP.

Future Outlook

Northrim BanCorp, Inc. will continue its independent audit services with Baker Tilly US, LLP as its new independent registered public accounting firm following the merger.

Management Comments

• "We agree with the statements concerning our Firm contained therein." Moss Adams LLP (referring to Northrim BanCorp's statements in the Form 8-K).

Industry Context

Mergers between large accounting firms are a common occurrence in the professional services industry, often leading to changes in audit engagements for their clients. This specific change reflects a consolidation trend within the auditing sector, where clients transition to the merged entity.

Corporate Governance

Stakeholder Impact

• Shareholders: Minimal direct impact, as the change is due to a merger and not performance issues. Continuity of audit services is maintained, which supports investor confidence.
• Management: Ensures compliance with SEC regulations regarding independent audits and maintains robust financial reporting oversight.
• Employees: No direct impact mentioned in the filing.

Next Steps

• Baker Tilly US, LLP will serve as Northrim BanCorp, Inc.'s independent registered public accounting firm for future audits.

Key Dates

Keywords

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