10.	Recent Accounting Pronouncements

The following are summaries of recently issued or adopted accounting pronouncements that impact the accounting and reporting practices of the Company:

May 2014,

the FASB issued ASU

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

)

. The update provides a

five

-step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are included in the scope of other standards). The guidance requires an entity to recognize the 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 and services. For public entities, the guidance was originally to be effective for annual reporting periods beginning after

December 15, 2016,

including interim periods within that reporting period. However, with the issuance of ASU

No.

2015

August 2015,

the FASB deferred the effective date of ASU

No.

2014

one

year for all entities, making the amendments effective for public entities for annual reporting periods beginning after

December 15, 2017,

including interim periods within those reporting periods. The adoption of this update as of

January 1, 2018

did

not

have a material impact on the Company’s consolidated financial position or results of operations. See Note

for further discussion.

January 2016,

the FASB issued ASU

No.

2016

01,

Financial Instruments – Overall (Subtopic

825

) – Recognition and Measurement of Financial Assets and Financial Liabilities

. The guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. In particular, the guidance revises an entity’s accounting related to (

) the classification and measurement of investments in equity securities and (

) the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with fair value of financial instruments. For public business entities, the guidance is effective for fiscal years beginning after

December 15, 2017,

including interim periods within those fiscal years. Entities should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The adoption of this update as of

January 1, 2018

did

not

have a material impact on the Company’s consolidated financial position or results of operations.

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

)

. The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of

months or less, a lessee is permitted to make an accounting policy election

not

to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Management is evaluating the new guidance, but does

not

expect the adoption of this update to have a material impact on the Company’s consolidated financial position or results of operations.

June 2016,

the FASB issued ASU

No.

2016

13,

Financial Instruments – Credit Losses (Topic

326

)

. The update replaces the incurred loss methodology for recognizing credit losses under current GAAP 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. Under the new guidance, an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The expected loss model will apply to loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. The impairment model for available-for-sale debt securities will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. For the Company, the amendments in the update are effective for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years. Early adoption is permitted as of fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. The Company is currently assessing the impact the guidance will have upon adoption, but management expects 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. In planning for the implementation of ASU

2016

13,

the Company has formed a current expected credit loss (“CECL”) implementation team consisting of members of senior management that meets on a periodic basis and is currently evaluating software solutions, data requirements and loss methodologies.

August 2016,

the FASB issued ASU

No.

2016

15,

Statement of Cash Flows (Topic

230

) – Classification of Certain Cash Receipts and Cash Payments

. The update addresses

eight

specific cash flow issues with the objective of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in the update are effective for public business entities for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period, and all amendments must be adopted in the same period. The adoption of this update is

not

expected to have a material impact on the Company’s consolidated financial position or results of operations.

March 2017,

the FASB issued ASU

No.

2017

08,

Receivables – Nonrefundable Fees and Other Costs (Subtopic

310

) – Premium Amortization on Purchased Callable Debt Securities

. The update shortens the amortization period for certain callable debt securities held at a premium. Specifically, the update requires the premium to be amortized to the earliest call date. The update does

not

require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in the update are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2018.

Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. The adoption of this update is

not

expected to have a material impact on the Company’s consolidated financial position or results of operations.