Note 23 - Subsequent Event

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

Note 23. Subsequent Event

Pandemic events could have a material adverse effect on our operations and our financial condition. The outbreak of disease on a national or global level, such as the spread of the COVID-

19

coronavirus, could have a material adverse effect on commerce, which

may,

in turn impact our lines of business. Such an event

may

also impact our ability to manage those portions of our business or operations which rely on vendors and suppliers from other countries or regions impacted by such a pandemic event.

The Company evaluated its

December 31, 2019

consolidated financial statements for subsequent events through the date the consolidated financial statements were issued. As a result of the spread of the COVID-

19

coronavirus, economic uncertainties have arisen which are likely to negatively impact net interest income as the result of the sharp decline in market interest rates experienced in

March

of

2020.

Other financial impacts, including a possible increase in the Allowance for Loan Losses as the result of underlying cash flow problems incurred by our loan customers, could also be experienced. The magnitude of the financial impact is unknown at this time and continues to be evaluated.

On

March 27, 2020,

the "Coronavirus Aid, Relief and Economic Security (CARES) Act" was signed into law. The Act includes provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company is currently analyzing the impact of these changes and therefore an estimate of the impact to income taxes is

not

yet available.