In the FASB issued ASU - . The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. The amendments in this ASU are effective for public business entities for annual periods and interim periods within those annual periods beginning after Early application of this ASU is permitted for all entities. In the FASB issued a proposal to allow an additional transition method that would allow entities to apply the guidance in ASU - in the comparative periods presented in the financial statements and instead recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has reviewed its current lessee portfolio and is assessing the impact of the new standard on its financial statements, related disclosures, systems, and internal controls. The accounting changes are expected to relate primarily to its leased branches and office space which are currently accounted for as operating leases. Based upon leases that were outstanding as of the Company anticipates recognizing a right of use asset and a lease liability related to substantially all the million of operating lease commitments summarized in Item “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of this Form -Q. However, the lease commitments requiring balance sheet recognition continue to be evaluated. Management anticipates that the addition of the right of use asset will decrease the Company’s risk-based capital ratios but does believe the impact will be material. Other aspects of the amendments are expected to have a material impact on the Company’s Consolidated Financial Statements.

 

In the FASB issued ASU - , which is essentially the final rule on use of the so-called CECL model, or current expected credit losses. Among other things, the amendments in this ASU require the measurement of 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. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For SEC filers, the amendments in this ASU are effective for fiscal years and interim periods within those fiscal years beginning after with later effective dates for non-SEC registrant public companies and other organizations. Early adoption will be permitted for all organizations for fiscal years and interim periods within those fiscal years beginning after The Company has contracted with a -party provider to implement enhanced modeling techniques that incorporate the loss measurement requirements in these amendments as part of adopting the ASU.

 

In the FASB issued ASU - The amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after Early adoption is permitted. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The amendments in this ASU will impact the Company’s Consolidated Financial Statements, as it has always amortized premiums to the call date.

 

In the FASB issued ASU - These amendments expand the scope of Topic Compensation - Stock Compensation, which currently only includes share-based payments to employees, to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The ASU supersedes Subtopic - Equity – Equity-Based Payments to Non-Employees. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after Early adoption is permitted, but earlier than a company’s adoption date of Topic Revenue from Contracts with Customers. The Company will adopt this ASU effective The amendments are expected to have an impact on the Company’s Consolidated Financial Statements because it does have any stock-based payment awards currently outstanding to nonemployees.

 

In the FASB issued ASU - The amendments represent changes to clarify, correct errors in, or make improvements to the Accounting Standards Codification, eliminating inconsistencies and providing clarifications in current guidance. The amendments include those made to: Subtopic - Income Statement- Reporting Comprehensive Income-Overall; Subtopic - Debt-Modifications and Extinguishments; Subtopic - Distinguishing Liabilities from Equity-Overall; Subtopic - Compensation-Stock Compensation-Income Taxes; Subtopic - Business Combinations-Income Taxes; Subtopic - Derivatives and Hedging-Overall; Subtopic - Fair Value Measurement-Overall; Subtopic - Financial Services-Brokers and Dealers-Liabilities; and Subtopic - Plan Accounting-Defined Contribution Pension Plans-Investments-Other. The transition and effective date guidance of these amendments are based on the facts and circumstances of each amendment. Some of the amendments do require transition guidance and will be effective upon issuance. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after for public business entities. Management is reviewing each subtopic impacted by the amendments to determine their applicability and potential impact to the Company’s Consolidated Financial Statements but does currently believe they will have a material impact.

 

In the FASB issued ASU - These amendments affect narrow aspects of the guidance issued in the amendments in ASU - including those regarding residual value guarantees, rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase option, variable lease payments that depend on an index or a rate, investment tax credits, lease term and purchase option, transition guidance for amounts previously recognized in business combinations, certain transition adjustments, transition guidance for leases previously classified as capital leases under Topic transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic transition guidance for sale and leaseback transactions, impairment of net investment in the lease, unguaranteed residual asset, effect of initial direct costs on rate implicit in the lease, and failed sale and leaseback transactions. For entities that early adopted Topic the amendments are effective upon issuance of ASU - and the transition requirements are the same as those in Topic For entities that have adopted Topic the effective date and transition requirements will be the same as the effective date and transition requirements in Topic Management is reviewing the amendments to determine what impact, if any, they will have beyond the impact that existing, but -yet-adopted, amendments under Topic will have on the Company’s Consolidated Financial Statements.

 

In the FASB issued ASU - These amendments provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic Leases). The amendments also provide lessors with a practical expedient, by class of underlying asset, to separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic ) and certain criteria are met. If the non-lease component or components associated with the lease component are the predominant component of the combined component, an entity is required to account for the combined component in accordance with Topic Otherwise, the entity must account for the combined component as an operating lease in accordance with Topic For entities that have adopted Topic before the issuance of ASU - the effective date and transition requirements for the amendments related to separating components of a contract are the same as the effective date and transition requirements in ASU - All entities, including early adopters, that elect the practical expedient related to separating components of a contract in ASU - must apply the expedient, by class of underlying asset, to all existing lease transactions that qualify for the expedient at the date elected. Management expects to elect both transition options. The amendments are expected to have a material impact on the Company’s Consolidated Financial Statements.

 

In the FASB issued ASU -

 

In the FASB issued ASU - These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is affected by these amendments. For public business entities, the amendments are effective for annual periods, including interim periods within those annual periods, beginning after For all other entities, the amendments are effective for annual periods beginning after and interim periods in annual periods beginning after Early adoption is permitted. Management is reviewing these amendments with respect to its use of software solutions for its operations, which are fairly extensive, to determine the possible impact but does currently believe they will have a material impact to its Consolidated Financial Statements.