Adoption of New Accounting Standards

3 Months Ended

Mar. 31, 2015

Adoption of New Accounting Standards

Adoption of New Accounting Standards

NOTE 2: Adoption of New Accounting Standards

The Corporation adopted ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, as of January 1, 2015.  As permitted by the guidance, the Corporation has elected to amortize the initial cost of investments in affordable housing projects over the period in which the Corporation will receive related tax credits, which approximates the proportional amortization method, and the resulting amortization is recognized as a component of income taxes attributable to continuing operations.  Historically, the amortization related to these investments were recognized within noninterest expense.  The Corporation adopted this guidance in the first quarter of 2015 with retrospective application as required by ASU 2014-01.  Prior period results have been restated to conform to this presentation.

As of March 31, 2015, the carrying value of the Corporation’s aggregate investment in qualified affordable housing projects was $2.75 million and the aggregate commitment to provide additional capital to these investments was $1.26 million.  Amortization recognized as a component of income tax expense for the three months ended March 31, 2015 and 2014 was $138,000 and $104,000, respectively.