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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 1, 1999
ARCADIA FINANCIAL LTD.
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(Exact name of registrant as specified in its charter)
Minnesota 0-20526 41-1664848
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(State or other jurisdiction (Commission file number) (IRS employer
of incorporation) identification No.)
7825 Washington Avenue South, Minneapolis, Minnesota 55439-2435
(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 942-9880
Not Applicable
(Former name or former address, if changed since last report)
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Item 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
On March 1, 1999, the Company dismissed Ernst & Young LLP ("Ernst &
Young") as the Company's independent auditors effective immediately following
the filing of the Company's Quarterly Report on Form 10-Q for the quarter
ending March 31, 1999. The decision to dismiss Ernst & Young has been
approved by the Audit Committee of the Board of Directors of the Company.
Ernst & Young's reports on the Company's financial statements for the
past two fiscal years ended December 31, 1997 did not contain any adverse
opinion or a disclaimer of opinion, and were not qualified or modified as to
uncertainty, audit scope, or accounting principles. However, as previously
announced by the Company, the Company's financial statements as of and for
the years ended December 31, 1996 and 1997 will be restated to reflect
adoption of the "cash-out" accounting method pursuant to the FASB's special
report, "A Guide to Implementation of Statement 125 on Accounting for
Transfers and Servicing of Financial Assets and Extinguishment of
Liabilities, Second Edition," dated December 1998, and public comments from
the Securities and Exchange Commission released on December 8, 1998. During
these fiscal years and all subsequent periods preceding the decision to
dismiss Ernst & Young, there have been no disagreements between the Company
and Ernst & Young on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which
disagreements, if not resolved to the satisfaction of Ernst & Young, would
have caused Ernst & Young to make a reference to the subject matter of the
disagreements in connection with any of its reports.
Ernst & Young expects to issue a report on the Company's financial
statements for the year ended December 31, 1998.
The Company has provided Ernst & Young with a copy of the disclosures set
forth above. Ernst & Young's letter addressed to the Commission stating that
Ernst & Young LLP agrees with the statements made above is filed as an Exhibit
hereto.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS AND EXHIBITS.
The following exhibit is filed with this report:
EXHIBIT NO. DESCRIPTION
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16 Letter, dated March 2, 1999, of Ernst & Young LLP
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
March 2, 1999 ARCADIA FINANCIAL LTD.
By: /s/ James D. Atkinson III
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James D. Atkinson III
Senior Vice President
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EXHIBIT 16 TO FORM 8-K
March 2, 1999
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Gentlemen:
We have read Item 4. of Form 8-K dated March 1, 1999, of Arcadia Financial Ltd.
and are in agreement with the statements contained therein.
/s/ Ernst & Young LLP
