Note 9 - Recently Issued Accounting Pronouncements -	3 Months Ended
Mar. 31, 2019
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	N ote 9 – Recently Issued Accounting Pronouncements – Accounting Standards Adopted in Current Period In February 2016, the FASB issued ASU 2016 - 02, Leases (Topic 842 ), Conforming Amendments Related to Leases . This ASU amends the codification regarding leases in order to increase transparency and comparability. The ASU requires companies to recognize lease assets and liabilities on the statement of condition and disclose key information about leasing arrangements. A lessee would recognize a liability to make lease payments and a right-of-use asset representing its right to use the leased asset for the lease term. The ASU was effective on January 1, 2019. The Company elected certain practical expedients offered by the FASB, including foregoing the restatement of prior periods at adoption. The Company recognized a right-of-use asset and lease liability of approximately $11.9 million as of March 31, 2019. The right-of-use asset and lease liability are recorded within premises and equipment and other liabilities, respectively. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016 - 13, Financial Instruments – Credit Losses (Topic 326 ), Measurement of Credit Losses on Financial Instruments . The amendments introduce an impairment model that is based on current expected credit losses (“CECL”), rather than incurred losses, to estimate credit losses on certain types of financial instruments (ex. loans and held to maturity securities), including certain off-balance sheet financial instruments (ex. commitments to extend credit and standby letters of credit that are not unconditionally cancellable). The CECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Financial instruments with similar risk characteristics may be grouped together when estimating the CECL. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial estimate of expected credit loss would be recognized through an allowance for credit losses with an offset (i.e. increase) to the purchase price at acquisition. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. The ASU also amends the current available for sale security impairment model for debt securities whereby credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. This ASU is effective for fiscal years beginning after December 31, 2019. The amendments will be applied through a modified retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently planning for the implementation of this ASU. Management is currently evaluating the potential impact of ASU 2016 - 13 on the Company’s consolidated financial statements. The adoption of this ASU may have a material effect on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017 - 01, Business Combinations (Topic 805 ): Clarifying the Definition of a Business, which introduces amendments intended to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments will be applied prospectively and are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those periods. The adoption of this ASU is not expected to have a significant impact on the Company’s consolidated financial statements. On January 26, 2017, the FASB issued ASU 2017 - 04, Intangibles – Goodwill and Other (Topic 350 ) which simplifies the accounting for goodwill impairment. The guidance in this ASU removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. The goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one -step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. The revised guidance will be applied prospectively, and is effective for calendar year-end ending in 2020 for public business entities. Early adoption is permitted for any impairment tests performed after January 1, 2017. Based on recent goodwill impairment tests, which did not require the application of Step 2, the Company does not expect the adoption of this ASU to have any immediate impact on the consolidated financial statements.

ote

–

Recently Issued Accounting Pronouncements

–

Accounting Standards Adopted in Current Period

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

), Conforming Amendments Related to Leases

. This ASU amends the codification regarding leases in order to increase transparency and comparability. The ASU requires companies to recognize lease assets and liabilities on the statement of condition and disclose key information about leasing arrangements. A lessee would recognize a liability to make lease payments and a right-of-use asset representing its right to use the leased asset for the lease term. The ASU was effective on

January 1, 2019.

The Company elected certain practical expedients offered by the FASB, including foregoing the restatement of prior periods at adoption. The Company recognized a right-of-use asset and lease liability of approximately

$11.9

million as of

March 31, 2019.

The right-of-use asset and lease liability are recorded within premises and equipment and other liabilities, respectively.

Accounting Standards

Not

Yet Adopted

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments – Credit Losses (Topic

326

), Measurement of Credit Losses on Financial Instruments

. The amendments introduce an impairment model that is based on current expected credit losses (“CECL”), rather than incurred losses, to estimate credit losses on certain types of financial instruments (ex. loans and held to maturity securities), including certain off-balance sheet financial instruments (ex. commitments to extend credit and standby letters of credit that are

not

unconditionally cancellable). The CECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Financial instruments with similar risk characteristics

may

be grouped together when estimating the CECL. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial estimate of expected credit loss would be recognized through an allowance for credit losses with an offset (i.e. increase) to the purchase price at acquisition. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. The ASU also amends the current available for sale security impairment model for debt securities whereby credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. This ASU is effective for fiscal years beginning after

December 31, 2019.

The amendments will be applied through a modified retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the

first

reporting period in which the guidance is effective. The Company is currently planning for the implementation of this ASU. Management is currently evaluating the potential impact of ASU

2016

on the Company’s consolidated financial statements. The adoption of this ASU

may

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

January 2017,

the FASB issued ASU

2017

01,

Business Combinations (Topic

805

): Clarifying the Definition of a Business,

which introduces amendments intended to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments will be applied prospectively and are effective for annual reporting periods beginning after

December 15, 2017,

including interim reporting periods within those periods. The adoption of this ASU is

not

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

January 26, 2017,

the FASB issued ASU

2017

04,

Intangibles – Goodwill and Other (Topic

350

)

which simplifies the accounting for goodwill impairment. The guidance in this ASU removes Step

of the goodwill impairment test, which requires a hypothetical purchase price allocation. The goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value,

not

to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same

one

-step impairment test will be applied to goodwill at all reporting units, even those with

zero

or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with

zero

or negative carrying amounts. The revised guidance will be applied prospectively, and is effective for calendar year-end ending in

2020

for public business entities. Early adoption is permitted for any impairment tests performed after

January 1, 2017.

Based on recent goodwill impairment tests, which did

not

require the application of Step

the Company does

not

expect the adoption of this ASU to have any immediate impact on the consolidated financial statements.