Restricted Investment in Bank Stock (Policy)

9 Months Ended

Sep. 30, 2018

Restricted Investment in Bank Stock [Abstract]

Restricted Investment in Bank Stock

Management evaluates the restricted stock for impairment in accordance with ASC Topic 942, Financial Services – Depository and Lending- (ASC Section 942-325-35).  Management’s evaluation of potential impairment is based on management’s assessment of the ultimate recoverability of the cost of the restricted stock rather than by recognizing temporary declines in value.  The determination of whether a decline affects the ultimate recoverability is influenced by criteria such as (a) the significance of the decline in net assets of the issuing bank as compared to the capital stock amount for that bank and the length of time this situation has persisted, (b) commitments by the issuing bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of that bank, and (c) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuing bank. Management has evaluated the restricted stock for impairment and believes that no impairment charge is necessary as of September 30, 2018.