coastal financial appoints baker tilly as new auditor after merger

Coastal Financial Corporation (NASDAQ:CCB), a $1.3 billion market cap financial institution with a "GREAT" financial health score according to InvestingPro, has announced a change in its independent registered public accounting firm following a merger involving its former auditor. On Monday, the company was informed that Moss Adams LLP, its previous auditor, merged with Baker Tilly US, LLP. As a result, Moss Adams resigned as Coastal Financial’s auditor, and the company’s Audit Committee approved the appointment of Baker Tilly as the new independent auditor.

The audit reports provided by Moss Adams for Coastal Financial’s consolidated financial statements for the fiscal years ending December 31, 2024, and 2023 did not contain any adverse opinions or disclaimers. However, the audit report on the company’s internal control over financial reporting as of December 31, 2024, included an adverse opinion. During the reported period and the interim period up to the merger date, there were no disagreements between Coastal Financial and Moss Adams on accounting principles, practices, or audit procedures that would have required disclosure. The company has maintained strong financial performance, with revenue growth of 25.4% in the last twelve months and robust profitability metrics, as reported by InvestingPro.

Coastal Financial confirmed that no consultations occurred with Baker Tilly regarding accounting principles or audit opinions during the same periods. The company has provided Moss Adams with a copy of the 8-K filing and requested a letter to the Securities and Exchange Commission (SEC) confirming agreement with the statements made in the filing. Moss Adams’ response has been filed as an exhibit to the 8-K.

This information is based on a press release statement filed with the SEC.

In other recent news, Coastal Financial Corporation has made significant amendments to its bylaws, including the removal of an age limit for directors, allowing for more flexibility in board member selection. The company also held its annual shareholder meeting, where four directors were elected, and several proposals, including an amendment to the 2018 Omnibus Incentive Plan, were approved. Additionally, shareholders ratified the selection of Moss Adams LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Analyst firm Keefe, Bruyette & Woods maintained an Outperform rating on Coastal Financial, reiterating a price target of $114.00, despite the company’s recent announcement of a financial restatement due to a material weakness. The analysts emphasized that the restatement has no impact on the bank’s earnings per share or core financial metrics. Keefe, Bruyette & Woods also highlighted Coastal Financial’s strategic partnerships with companies like Robinhood (NASDAQ:HOOD), Dave, and T-Mobile, viewing these as growth opportunities in the Banking as a Service sector. Coastal Financial’s proactive measures to address the financial restatement and its commitment to digital banking innovation have been noted positively by analysts. The firm’s outlook for Coastal Financial remains optimistic, citing strong regulatory positioning and projected earnings growth.

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