3.	RECENT ACCOUNTING PRONOUNCEMENTS

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update "(ASU") No. 2016-13, Financial Instruments – Credit Losses (Topic 326), which requires that the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This guidance also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this guidance is effective for fiscal years and interim periods beginning after December 31, 2019. The Company has established a committee to oversee the adoption of ASU 2016-13 on its consolidated financial statements. The Company has engaged a third party software provider to assist with the credit loss estimate, and has recently completed the implementation of the software. The Company is working with the third party software provider to confirm segmentation of the loan portfolio, and is reviewing model assumptions. The Company expects to recognize a one-time cumulative effect change to the allowance for loan losses as of the beginning of the reporting period in which ASU 2016-13 takes effect. The Company is currently evaluating the magnitude of the impact on the consolidated financial statements, which is not expected to have a material impact.