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Note 5 - Recent Accounting Pronouncements
 9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
Note
5
:
Recent Accounting Pronouncements
In
February 2016,
the FASB issued ASU
No.
2016
-
02,
“Leases (Topic
842
).” Among other things, in the amendments in ASU
2016
-
02,
lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (
1
) A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (
2
) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic
606,
Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after
December 15, 2018,
including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would
not
require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors
may
not
apply a full retrospective transition approach. The FASB made subsequent amendments to Topic
842
in
July 2018
through ASU
2018
-
10
(“Codification Improvements to Topic
842,
Leases.”) and ASU
2018
-
11
(“Leases (Topic
842
): Targeted Improvements.”) Among these amendments is the provision in ASU
2018
-
11
that provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic
840,
Leases). The Company is currently assessing the impact that ASU
2016
-
02
(as amended) will have on its consolidated financial statements. The Company is the lessee of
six
banking locations and
one
ATM location.  At the effective date, the Company will recognize a lease liability and a right-of-use asset for each of the leases. Pro-forma analysis based on current lease contracts indicates that the lease liability and the right-of-use asset are similar in amount, with only nominal difference.
In
June 2016,
the FASB issued ASU
No.
2016
-
13,
“Financial Instruments – Credit Losses (Topic
326
): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2019.
The Company is currently assessing the impact that ASU
2016
-
13
will have on its consolidated financial statements. The Company has formed a working group to address information requirements, determine methodology, research forecasts and ensure readiness and compliance with the standard. The Company’s existing model provider has released a CECL model and the Company will run multiple concurrent models prior to the effective date.
 
In
January 2017,
the FASB issued ASU
No.
2017
-
04,
“Intangibles – Goodwill and Other (Topic
350
): Simplifying the Test for Goodwill Impairment”. The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step
2
from the goodwill impairment test. Step
2
measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are U.S. Securities and Exchange Commission (SEC) filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after
December 15, 2019.
Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after
January 1, 2017.
The Company does
not
expect the adoption of ASU
2017
-
04
to have a material impact on its consolidated financial statements.
In
March 2017,
the FASB issued ASU
2017‐08,
“Receivables—Nonrefundable Fees and Other Costs (Subtopic
310‐20
), Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities purchased at a premium. Upon adoption of the standard, premiums on these qualifying callable debt securities will be amortized to the earliest call date. Discounts on purchased debt securities will continue to be accreted to maturity. The amendments are effective for fiscal years beginning after
December 15, 2018,
and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Upon transition, entities should apply the guidance on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and provide the disclosures required for a change in accounting principle. The Company is currently assessing the impact that adoption of ASU
2017
-
08
will have on its consolidated financial statements, but does
not
expect a material impact.
In
June 2018,
the FASB issued ASU
2018
-
07,
“Compensation- Stock Compensation (Topic
718
): Improvements to Nonemployee Share-Based Payment Accounting.” The amendments expand the scope of Topic
718
to include share-based payments issued to non-employees for goods or services, which were previously excluded. The amendments will align the accounting for share-based payments to nonemployees and employees more similarly. The amendments are effective for fiscal years beginning after
December 15, 2018,
and interim periods within those fiscal years. Early adoption is permitted. The Company does
not
expect the adoption of ASU
2018
-
07
to have a material impact on its consolidated financial statements.
In
August 2018,
the FASB issued ASU
2018
-
13,
“Fair Value Measurement (Topic
820
): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments modify the disclosure requirements in Topic
820
to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level
3
fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic
820
are also removed or modified. The amendments are effective for fiscal years beginning after
December 15, 2019,
and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. The Company does
not
expect the adoption of ASU
2018
-
13
to have a material impact on its consolidated financial statements.
In
August 2018,
the FASB issued ASU
2018
-
14,
“Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic
715
-
20
): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been deleted while the following disclosure requirements have been added: the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph
715
-
20
-
50
-
3,
which state that the following information for defined benefit pension plans should be disclosed: The projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal years ending after
December 15, 2020.
Early adoption is permitted. The Company does
not
expect the adoption of ASU
2018
-
14
to have a material impact on its consolidated financial statements.