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Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation
The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America (GAAP). In the opinion of management, the accompanying consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial condition and results of operations at the dates and for the periods presented. The results of operations for the
three
and
nine
months ended
September 30, 2017
are
not
necessarily indicative of the results of operations for the full fiscal year or for any other period. This information should be read in conjunction with the Company’s Annual Report on Form
10
-K for the year ended
December 31, 2016.
Consolidation, Policy [Policy Text Block]
Basis of Consolidation
– The consolidated financial statements include the accounts of Bancorp
34
and the Bank. All significant intercompany accounts and transactions have been eliminated.
Reclassification, Policy [Policy Text Block]
Reclassifications
– Certain reclassifications have been made to prior period’s financial information to conform to the current period presentation. There was
no
impact on stockholder’s equity or net income resulting from these reclassifications.
Use of Estimates, Policy [Policy Text Block]
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include, but are
not
limited to, allowance for loan losses, other-than-temporary impairment of securities, useful lives used in depreciation and amortization, deferred income taxes and related valuation allowance, valuation of other real estate and core deposit intangibles.
Derivatives, Policy [Policy Text Block]
Derivative Financial Instruments -
All contracts that satisfy the definition of a derivative are recorded at fair value in other assets and other liabilities in the consolidated balance sheets. We record the derivatives on a net basis when a right of offset exists, based on transactions with a single counterparty that are subject to a legally enforceable master netting agreement. For additional information on derivative financial instruments, see Note
8
- "Derivative Financial Instruments."
New Accounting Pronouncements, Policy [Policy Text Block]
Summary of Recent Accounting Pronouncements
:
 
Revenue Recognition
- In
May 2014,
the Financial Accounting Standards Board (“FASB”) issued
Accounting Standards Update (“
ASU
”)
2014
-
09,
“Revenue from Contracts with Customers (Topic
606
)
.”
ASU
2014
-
09
implements a comprehensive new revenue recognition standard that will supersede substantially all existing revenue recognition guidance. The new standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation.
ASU
2015
-
4
“Revenue from Contracts with Customers – Deferral of the Effective Date”
deferred the effective date of ASU
2014
-
09
by
one
year and as a result, the new standard will be effective the
first
quarter of
2018.
The Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU
2014
-
09,
and non-interest income. The Company does
not
expect adoption of ASU
2014
-
09
will have a material impact on our consolidated financial statements and disclosures. We plan to adopt the revenue recognition guidance in the
first
quarter of
2018
with a cumulative effect adjustment to opening retained earnings, if management deems such adjustment significant. Our implementation efforts to date include identification of revenue streams within the scope of the guidance.
 
Financial Instruments
- In
January 2016,
the FASB issued ASU
No.
2016
-
01,
"Financial Instruments
– Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic
825
-
10
)." The amendment has a number of provisions including the requirements that public business entities use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, a separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e. securities or loans receivables), and eliminating the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendment is effective for annual and interim reporting periods beginning after
December 15, 2017
and is
not
expected to have a significant impact to the Company’s consolidated financial statements.
 
Leases
In
February 2016,
the FASB issued ASU
2016
-
02
“Leases (Topic
842
)
.” This standard requires entities that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The standard is effective for fiscal years and the interim periods within those fiscal years beginning after
December 15, 2018.
The guidance is required to be applied by the modified retrospective transition approach. Early adoption is permitted. We are currently assessing the impact of the adoption of this authoritative guidance on our consolidated financial statements.
 
Share-Based Payments
In
March 2016,
the FASB issued ASU
No.
2016
-
09,
“Improvements to Employee Share-Based Payment Accounting,
” which simplifies certain aspects of accounting for share-based payment transactions, including transactions in which an employee uses shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures and income taxes when awards vest or are settled. The guidance also requires that tax benefits from employee share-based transactions be run directly through the income statement when realized as adjustments to tax expense or benefit. Therefore, diluted earnings per share computations
no
longer include an adjustment for estimated tax benefits. This guidance is effective for annual periods beginning after
December 15, 2016,
with early adoption permitted. The Company adopted ASU
No.
2016
-
09
beginning as of
January 1, 2017
and the adoption did
not
have a material impact on the Company’s financial statements.
 
Credit Losses -
In
June 2016,
the FASB issued ASU
2016
-
13,
“Financial Instruments—Credit Losses (Topic
326
): Measurement of Credit Losses on Financial Instruments
.” The amendments in this update replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to create credit loss estimates. The new guidance is effective for public companies that are U.S. Securities and Exchange Commission filers for fiscal years beginning after
December 15, 2019
including interim periods within those fiscal years. For all other public companies, the amendments are effective for fiscal years beginning after
December 15, 2020,
including interim periods within those fiscal years. For all other companies, including emerging growth companies, the amendments are effective for fiscal years beginning after
December 15, 2020,
and interim periods within fiscal years beginning after
December 15, 2021.
The guidance is required to be applied by the modified retrospective approach. Early adoption is permitted as of the fiscal years beginning after
December 15, 2018,
including interim periods within those fiscal years. We are currently assessing the impact of the adoption of this authoritative guidance on our consolidated financial statements.
 
Premium on Callable Debt
- In
March 2017,
the FASB issued
ASU
No.
2017
-
08,
"Receivables
–Nonrefundable Fees and Other Costs (Subtopic
310
-
20
)"
to shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Currently, entities generally amortize the premium as a yield adjustment over the contractual life of the security. The guidance does
not
change the accounting for callable debt securities held at a discount. For public business entities, the guidance is effective for fiscal years beginning after
December 15, 2018,
and interim periods within those fiscal years. Early adoption is permitted, including in an interim period. The Company is evaluating the potential impact of the amendment on the Company’s consolidated financial statements.    
Share-Based Payment Modification -
In
May 2017,
the FASB issued ASU
2017
-
09,
“Compensation - Stock Compensation (Subtopic
718
): Scope of Modification Accounting.”
ASU
2017
-
09
clarifies when changes to terms or conditions of a share-based payment award must be accounted for as a modification. Under the new guidance, an entity will
not
apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the fair value of the award, (ii) the vesting conditions of the award, and (iii) the classification of the award as either an equity or liability instrument. ASU
2017
-
09
is effective for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2017.
Early adoption is permitted. We did
not
early adopt ASU
2017
-
09.
The guidance requires companies to apply the requirements prospectively to awards modified on or after the adoption date. ASU
2017
-
09
is
not
expected to have a significant impact on our consolidated financial statements.