Note 2 - New Accounting Pronouncements	12 Months Ended
Dec. 31, 2019
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU 2014 - 09 Revenue from Contracts with Clients (Topic 606 ). ASU 2014 - 09 was effective for public business entities for interim and annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2014 - 09 and its related amendments on its required effective date of January 1, 2018. The scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, and securities. The Company has performed an assessment of revenue streams that are within the scope of the standard and concluded that ASU 2014 - 09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. The assessment did not identify material changes to the timing of amount of revenue recognition as the Company's current practices are consistent with the standard. In January 2016, the FASB issued ASU 2016 - 01, Recognition and Measurement of Financial Assets and Liabilities. This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: ( 1 ) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; ( 2 ) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; ( 3 ) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; ( 4 ) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; ( 5 ) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; ( 6 ) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; ( 7 ) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans receivable) on the balance sheet or the accompanying notes to the financial statements; and ( 8 ) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The adoption of ASU No. 2016 - 01 on January 1, 2018, did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016 - 02, Leases (Topic 842 ). The ASU requires a lessee to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. Unlike prior GAAP, which required that only capital leases be recognized on the balance sheet, the ASC requires that both types of leases by recognized on the balance sheet. For public companies, this update is effective for interim and annual periods beginning after December 15, 2018. The adoption of ASU No. 2016 - 02 effective January 1, 2019 resulted in an increase to other assets and other liabilities of $2,168,000 . The Corporation chose the effective date as the date of initial application. Consequently, prior period financial information has not been updated or restated. In June 2016, the FASB issued ASU 2016 - 13, Financial Instruments Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments. The ASU requires an organization to measure 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. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2019. Management has developed four different models for calculating the allowance for loan losses under the requirements of ASU 2016 - 13 and are running them parallel to the Bank’s existing methodology throughout 2019. Once management determines which method will be utilized, a third party will be contracted to perform a model validation prior to December 31, 2019. Management has not yet determined the expected impact the adoption of ASU 2016 - 13 will have on the consolidated financial statements. On October 16, 2019, the FASB extended the implementation deadline until the fiscal year and interim periods beginning after December 15, 2022. Management will continue to monitor any new developments regarding this accounting standard. In January 2017, the FASB issued ASU 2017 - 04, Intangibles-Goodwill and Other (Topic 350 ): Simplifying the Test for Goodwill Impairment. The guidance in this update eliminates the Step 2 from the goodwill impairment test. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual goodwill impairment test with a measurement date after January 1, 2017. The Corporation does not expect the guidance to have a material impact on the consolidated financial statements but Management is still evaluating. In August 2017, the FASB issued ASU 2017 - 12, Derivatives and Hedging (Topic 815 ): Targeted Improvements to Accounting for Hedging Activities. This ASU better aligns an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments in this ASU are effective for the reporting periods after December 15, 2018. The Corporation adopted ASU No. 2017 - 12 effective January 1, 2019. There was no significant impact to the consolidated financial statements as a result of the adoption of ASU 2017 - 12. In August 2018, the FASB issued ASU 2018 - 13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds, and modifies certain disclosure requirements for estimated fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfer between Level 1 and Level 2 of the estimated fair value hierarchy, but will be required to disclose the range and weighted-average used to develop significant unobservable inputs for Level 3 estimated fair value measurements. ASU 2018 - 13 is effective for all entities for interim and annual reporting periods beginning after December 15, 2019. The revised disclosure requirements are not expected to have a material impact on the Company's consolidated financial statements, but Management is still evaluating. In April, 2109, the FASB issued ASU 2019 - 04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. This update is not expected to have a significant impact on the Company's consolidated financial statements. In December, 2019, the FASB issued ASU 2019 - 12, Income Taxes (Topic 740 ), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for the areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company is currently reviewing the provisions of this new pronouncement, but does not expect adoption of this guidance to have a material impact on the Company's consolidated financial statements.

NOTE

- NEW ACCOUNTING PRONOUNCEMENTS

May 2014,

the FASB issued ASU

2014

Revenue from Contracts with Clients (Topic

606

). ASU

2014

was effective for public business entities for interim and annual reporting periods beginning after

December 15, 2017.

The Company adopted ASU

2014

and its related amendments on its required effective date of

January 1, 2018.

The scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, and securities. The Company has performed an assessment of revenue streams that are within the scope of the standard and concluded that ASU

2014

did

not

materially change the method in which the Company currently recognizes revenue for these revenue streams. The assessment did

not

identify material changes to the timing of amount of revenue recognition as the Company's current practices are consistent with the standard.

January 2016,

the FASB issued ASU

2016

01,

Recognition and Measurement of Financial Assets and Liabilities. This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (

) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity

may

choose to measure equity investments that do

not

have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (

) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (

) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are

not

public business entities; (

) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (

) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (

) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (

) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans receivable) on the balance sheet or the accompanying notes to the financial statements; and (

) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The adoption of ASU

No.

2016

January 1, 2018,

did

not

have a material impact on the Company’s consolidated financial statements.

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

). The ASU requires a lessee to recognize on the balance sheet assets and liabilities for leases with lease terms of more than

months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. Unlike prior GAAP, which required that only capital leases be recognized on the balance sheet, the ASC requires that both types of leases by recognized on the balance sheet. For public companies, this update is effective for interim and annual periods beginning after

December 15, 2018.

The adoption of ASU

No.

2016

effective

January 1, 2019

resulted in an increase to other assets and other liabilities of

$2,168,000

The Corporation chose the effective date as the date of initial application. Consequently, prior period financial information has

not

been updated or restated.

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments. The ASU requires an organization to measure 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. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For public companies, this update will be effective for interim and annual periods beginning after

December 15, 2019.

Management has developed

four

different models for calculating the allowance for loan losses under the requirements of ASU

2016

and are running them parallel to the Bank’s existing methodology throughout

2019.

Once management determines which method will be utilized, a

third

party will be contracted to perform a model validation prior to

December 31, 2019.

Management has

not

yet determined the expected impact the adoption of ASU

2016

will have on the consolidated financial statements. On

October 16, 2019,

the FASB extended the implementation deadline until the fiscal year and interim periods beginning after

December 15, 2022.

Management will continue to monitor any new developments regarding this accounting standard.

January 2017,

the FASB issued ASU

2017

04,

Intangibles-Goodwill and Other (Topic

350

): Simplifying the Test for Goodwill Impairment. The guidance in this update eliminates the Step

from the goodwill impairment test. For public companies, this update will be effective for interim and annual periods beginning after

December 15, 2019,

with early adoption permitted for interim and annual goodwill impairment test with a measurement date after

January 1, 2017.

The Corporation does

not

expect the guidance to have a material impact on the consolidated financial statements but Management is still evaluating.

August 2017,

the FASB issued ASU

2017

12,

Derivatives and Hedging (Topic

815

): Targeted Improvements to Accounting for Hedging Activities. This ASU better aligns an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments in this ASU are effective for the reporting periods after

December 15, 2018.

The Corporation adopted ASU

No.

2017

effective

January 1, 2019.

There was

significant impact to the consolidated financial statements as a result of the adoption of ASU

2017

12.

August 2018,

the FASB issued ASU

2018

13,

Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds, and modifies certain disclosure requirements for estimated fair value measurements. Among the changes, entities will

longer be required to disclose the amount of and reasons for transfer between Level

and Level

of the estimated fair value hierarchy, but will be required to disclose the range and weighted-average used to develop significant unobservable inputs for Level

estimated fair value measurements. ASU

2018

is effective for all entities for interim and annual reporting periods beginning after

December 15, 2019.

The revised disclosure requirements are

not

expected to have a material impact on the Company's consolidated financial statements, but Management is still evaluating.

April,

2109,

the FASB issued ASU

2019

04,

Codification Improvements to Topic

326,

Financial Instruments - Credit Losses, Topic

815,

Derivatives and Hedging, and Topic

825,

Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. This update is

not

expected to have a significant impact on the Company's consolidated financial statements.

December, 2019,

the FASB issued ASU

2019

12,

Income Taxes (Topic

740

), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic

740.

The amendments also improve consistent application of and simplify GAAP for the areas of Topic

740

by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years beginning after

December 15, 2020.

Early adoption of the amendments is permitted, including adoption in any interim period for which financial statements have

not

yet been issued. The Company is currently reviewing the provisions of this new pronouncement, but does

not

expect adoption of this guidance to have a material impact on the Company's consolidated financial statements.