NOTE

18:

NEW ACCOUNTING STANDARDS

February

2015,

the FASB issued ASU

2015

–

Consolidation (Topic

810):

Amendments to the Consolidation Analysis

(“ASU

2015

02”).

ASU

2015

amends the consolidation requirements of ASU

810

by changing the consolidation analysis required under GAAP. The revised guidance amends the consolidation analysis based on certain fee arrangements or relationships to the reporting entity and, for limited partnerships, requires entities to consider the limited partner’s rights relative to the general partner. ASU

2015

became effective for annual and interim periods beginning after

December

15,

2015.

The adoption of this standard has not had a material effect on the Company’s results of operations, financial position or disclosures.

May

2015,

the FASB issued ASU

2015

–

Business Combinations: Pushdown Accounting – Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No.

115

(“ASU

2015

08”).

ASU

2015

removes references to the SEC’s Staff Accounting Bulletin (SAB) Topic

5.J

on pushdown accounting from ASC

805

50,

thereby conforming the FASB’s guidance on pushdown accounting with the SEC’s guidance on this topic. ASU

2015

became effective upon issuance. The adoption of this standard has not had a material effect on the Company’s results of operations, financial position or disclosures.

August

2015,

the FASB issued ASU

2015

–

Revenue from Contracts with Customers: Deferral of the Effective Date

(“ASU

2015

14”).

ASU

2015

is an update to the effective date in ASU

2014

–

Revenue from Contracts with Customers

(“ASU

2014

09”).

ASU2014

provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU

2015

is effective prospectively, for annual and interim periods, beginning after

December

15,

2017.

The adoption of this standard is not expected to have a material effect on the Company’s results of operations, financial position or disclosures. The guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, which comprises a significant portion of our revenue stream. We believe that for most revenue streams within the scope of ASU

2015

14,

the amendments will not change the timing of when the revenue is recognized. We will continue to evaluate the impact focusing on noninterest income sources within the scope of ASU

2015

14;

however, we do not expect adoption to have a material impact on the Company’s results of operations, financial position or disclosures.

September

2015,

the FASB issued ASU

2015

–

Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments

(“ASU

2015

16”).

ASU

2015

requires entities to recognize measurement period adjustments during the reporting period in which the adjustments are determined. The income effects, if any, of a measurement period adjustment are cumulative and are to be reported in the period in which the adjustment to a provisional amount is determined. Also, ASU

2015

requires presentation on the face of the income statement or in the notes, the effect of the measurement period adjustment as if the adjustment had been recognized at acquisition date. ASU

2015

is effective for fiscal periods beginning after

December

15,

2016

and should be applied prospectively to measurement period adjustments that occur after the effective date. The adoption of this standard is not expected to have a material effect on the Company’s results of operations, financial position or disclosures.

119

January

2016,

the FASB issued ASU

2016

–

Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities

(“ASU

2016

01”).

ASU

2016

makes changes primarily affecting the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU

2016

is effective for fiscal periods beginning after

December

15,

2017,

including interim periods within those fiscal years. The Company is currently evaluating the impact this standard will have on the Company’s results of operations, financial position or disclosures, but it is not expected to have a material impact.

February

2016,

the FASB issued ASU

2016

–

Leases

(“ASU

2016

02”).

ASU

2016

establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. The new guidance results in a more consistent representation of the rights and obligations arising from leases by requiring lessees to recognize the lease asset and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. ASU

2016

is effective for fiscal years beginning after

December

15,

2018,

including interim periods within those fiscal years. Based on leases outstanding as of

December

31,

2016,

we do not expect the new standard to have a material impact on our results of operations, but anticipate increases in our assets and liabilities. Decisions to repurchase, modify or renew leases prior to the implementation date will impact the level of materiality.

March

2016,

the FASB issued ASU

2016

–

Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting

(“ASU

2016

09”).

ASU

2016

simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU

2016

is effective for annual periods beginning after

December

15,

2016,

and interim periods within those annual periods. The adoption of this standard is not expected to have a material effect on the Company’s results of operations, financial position or disclosures.

June

2016,

the FASB issued ASU

2016

–

Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments

(“ASU

2016

13”).

ASU

2016

requires earlier measurement of credit losses, expands the range of information considered in determining expected credit losses and enhances disclosures. The main objective of ASU

2016

is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in ASU

2016

replace the incurred loss impairment methodology in current GAAP (“Accounting Principles Generally Accepted in the United States of America”) with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU

2016

is effective for fiscal years beginning after

December

15,

2019,

including interim periods within those fiscal years. We have formed a cross functional team that is assessing our data and system needs and is evaluating the impact of adopting the new guidance. We expect to recognize a

one

-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the

first

reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such

one

-time adjustment or the overall impact on the Company’s results of operations, financial position or disclosures.

August

2016

the FASB issued ASU

2016

–

Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments

(“ASU

2016

15”).

ASU

2016

is designed to address the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard also provides guidance on when an entity should separate or aggregate cash flows based on the predominance principle. ASU

2016

is effective for fiscal years beginning after

December

15,

2017,

Presently, the Company is not aware of any other changes to the Accounting Standards Codification that will have a material impact on the Company’s present or future financial position or results of operations.