SHORE BANCSHARES, INC. (NASDAQ:SHBI) Files An 8-K Changes in Registrant’s Certifying AccountantItem 4.01.
(a)Dismissal of Previous Independent Registered Public Accounting Firm
On September 22, 2017, Shore Bancshares, Inc. (the “Company”) notified Dixon Hughes Goodman LLC (“DHG”) of the decision of the audit committee (the “Audit Committee”) of the board of directors of the Company to dismiss DHG as the Company’s independent registered public accounting firm.
The reports of the independent registered public accounting firm of DHG regarding the Company’s financial statements for the fiscal year ended December31, 2016 and Stegman & Company (“Stegman”) for the fiscal year ended December 31, 2015 did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. The Company previously reported on the Current Report on Form 8-K filed on June 3, 2016 that, effective June 1, 2016, substantially all directors and employees of Stegman joined DHG.
During the years ended December31, 2016 and 2015, and during the interim period from the end of the most recently completed fiscal year through September 22, 2017, the date of dismissal, there were no disagreements with DHG or Stegman on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of DHG or Stegman would have caused them to make reference to such disagreement in their reports.
The Company provided DHG and Stegman with a copy of this Current Report on Form 8-K prior to its filing with the Securities and Exchange Commission and requested that DHG and Stegman furnish the Company with letters addressed to the Securities and Exchange Commission stating whether they agree with the above statements and, if they do not agree, the respects in which they do not agree. A copy of the letters furnished by DHG and Stegman, dated September 25, 2017, are filed as Exhibits 16.1 and 16.2 to this current report on Form 8-K.
(b)Appointment of New Independent Registered Public Accounting Firm
On September 22, 2017, the Audit Committee engaged Yount, Hyde & Barbour, P.C. (“YHB”) to serve as its independent registered public accounting firm for the year ending December31, 2017.
During the years ended December31, 2016 and 2015, and during the interim period from the end of the most recently completed fiscal year through September 22, 2017, neither the Company, nor anyone on its behalf, consulted with YHB regarding (i)the application of accounting principles to a specific transaction, either completed or proposed, or regarding the type of audit opinion that might be rendered on the Company’s financial statements, and neither a written report nor oral advice was provided to the Company that YHB concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue, or (ii)any matter that was either the subject of a disagreement or a reportable event (as described in Item 304(a)(1)(iv) and Item 304(a)(1)(v) of Regulation S-K, respectively).
Item 9.01 Financial Statements and Exhibits.
(a)Exhibits.
The exhibits that are filed or furnished with this report are listed in the Exhibit Index that immediately follows the hereto, which list is incorporated herein by reference.
SHORE BANCSHARES INC ExhibitEX-16.1 2 v475762_ex16-1.htm EXHIBIT 16.1 Exhibit 16.1 September 25,…To view the full exhibit click here
About SHORE BANCSHARES, INC. (NASDAQ:SHBI)
Shore Bancshares, Inc. is a financial holding company. The Company acts as the parent company to several financial institution and insurance entities. The Company has two business segments: Community Banking, and Insurance Products and Services. Its Community Banking segment provides services to consumers and small businesses on the Eastern Shore of Maryland and in Delaware. The Company is engaged in the banking business through CNB, a Maryland commercial bank with trust powers and The Talbot Bank of Easton, a Maryland commercial bank (the Banks). Its Insurance Products and Services segment provides a range of insurance products and services to businesses and consumers in the Company’s market areas. The Banks provide a range of commercial and consumer banking products and services to individuals, businesses, and other organizations in Kent County, Queen Anne’s County, Caroline County, Talbot County and Dorchester County in Maryland and in Kent County, Delaware.