8-K: Fifth District Bancorp Changes Auditors, Appoints EisnerAmper LLP

Fifth District Bancorp dismisses Elliott Davis, LLC and engages EisnerAmper LLP as its new independent registered public accounting firm, effective March 31, 2025.

Summary

• Fifth District Bancorp, Inc. dismissed Elliott Davis, LLC as their independent registered public accounting firm on March 31, 2025.
• The decision was approved by the Audit Committee of the Company's Board of Directors.
• The dismissal was not due to any disagreements on accounting principles, financial statement disclosure, or auditing scope.
• Elliott Davis's audit reports for the years ended December 31, 2023 and December 31, 2024 did not contain any adverse opinions or disclaimers.
• The company engaged EisnerAmper LLP as the new independent registered public accounting firm on March 31, 2025, for the year ending December 31, 2025.
• The Audit Committee also approved the selection of EisnerAmper.
• The company did not consult with EisnerAmper on accounting principles or the type of audit opinion during the past two fiscal years and the interim period.

Sentiment

Score: 7

Explanation: The document describes a routine change in auditors with no indication of underlying issues. The sentiment is neutral to slightly positive as the transition appears smooth and transparent.

Positives

• The change in auditors was not due to any disagreements on accounting principles or practices.
• Elliott Davis agreed with the company's statements regarding their dismissal.

Future Outlook

The company will be audited by EisnerAmper for the year ending December 31, 2025.

Industry Context

Changes in auditors are a normal part of corporate governance, but are closely scrutinized by investors and regulators. The company is required to disclose the reasons for the change and any disagreements with the former auditor.

Comparison to Industry Standards

• Auditor changes are common in the banking industry, with firms like PricewaterhouseCoopers, Deloitte, Ernst & Young, and KPMG often auditing larger institutions.
• Smaller regional banks may use firms like Elliott Davis or EisnerAmper.
• The disclosure requirements surrounding auditor changes are standardized by the SEC, ensuring transparency for investors.

Stakeholder Impact

• Shareholders will be informed about the change in auditors.
• The change should not directly impact employees, customers, suppliers, or creditors.

Next Steps

• EisnerAmper will conduct the audit for the year ending December 31, 2025.

Key Dates

Keywords

auditor, EisnerAmper, Elliott Davis, accounting firm, Fifth District Bancorp