Company Quick10K Filing
Peoples Bancorp of North Carolina
Price28.60 EPS2
Shares6 P/E12
MCap171 P/FCF20
Net Debt-130 EBIT20
TEV41 TEV/EBIT2
TTM 2019-09-30, in MM, except price, ratios
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8-K 2018-01-22

PEBK 10Q Quarterly Report

EX-31.1 pebk_ex31a.htm
EX-31.2 pebk_ex31b.htm
EX-32.1 pebk_ex32.htm

Peoples Bancorp of North Carolina Earnings 2020-09-30

Balance SheetIncome StatementCash Flow

10-Q 1 pebk_10q.htm QUARTERLY REPORT pebk_10q
 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended: September 30, 2020
 
OR
 
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from __________ to __________
 
000-27205
(Commission File No.)
 
PEOPLES BANCORP OF NORTH CAROLINA, INC.
(Exact name of registrant as specified in its charter)
 
North Carolina
56-2132396
 (State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)
 
518 West C Street, Newton, North Carolina
28658
(Address of principal executive offices)
(Zip Code)
 
(828) 464-5620
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name on each exchange on which registered
 
 
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
 
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a)
 
Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2 of the Exchange Act).
Yes No
 
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. 5,787,504 shares of common stock, outstanding at October 31, 2020.
 

 
 
INDEX
 
 
 
PAGE(S)
 
 
 
 
 
3
 
 
 
 
4
 
 
 
 
5
 
 
 
 
6
 
 
 
 
7-8
 
 
 
 
9-30
 
 
 
30-44
 
 
 
45
 
 
 
45
 
 
 
Statements made in this Form 10-Q, other than those concerning historical information, should be considered forward-looking statements pursuant to the safe harbor provisions of the Securities Exchange Act of 1934 and the Private Securities Litigation Act of 1995. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management and on the information available to management at the time that this Form 10-Q was prepared. These statements can be identified by the use of words like “expect,” “anticipate,” “estimate,” and “believe,” variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (1) competition in the markets served by the registrant and its subsidiaries, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environments and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in other filings with the Securities and Exchange Commission, including but not limited to, those described in the registrant’s Annual Report on Form 10-K for the year ended December 31, 2019.
 
 
 
PART I.      
FINANCIAL INFORMATION
 
Item 1.          
Financial Statements
 
PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Balance Sheets
September 30, 2020 and December 31, 2019
(Dollars in thousands)
 
 
 
September 30,
 
 
December 31,
 
Assets
 
 2020
 
 
 2019
 
 
 
 (Unaudited)
 
 
 (Audited)
 
 
 
 
 
 
 
 
Cash and due from banks, including reserve requirements
 
 
 
 
 
 
of $0 at 9/30/20 and $13,210 at 12/31/19
 $48,355 
  48,337 
Interest-bearing deposits
  15,778 
  720 
Federal funds sold
  140,095 
  3,330 
Cash and cash equivalents
  204,228 
  52,387 
 
    
    
Investment securities available for sale
  222,991 
  195,746 
Other investments
  7,163 
  4,231 
Total securities
  230,154 
  199,977 
 
    
    
Mortgage loans held for sale
  8,960 
  4,417 
 
    
    
Loans
  970,232 
  849,874 
Less allowance for loan losses
  (9,892)
  (6,680)
Net loans
  960,340 
  843,194 
 
    
    
Premises and equipment, net
  19,057 
  18,604 
Cash surrender value of life insurance
  16,742 
  16,319 
Other real estate
  128 
  -   
Right of use lease asset
  3,097 
  3,622 
Accrued interest receivable and other assets
  15,903 
  16,362 
Total assets
 $1,458,609 
  1,154,882 
 
    
    
Liabilities and Shareholders' Equity
    
    
 
    
    
Deposits:
    
    
Noninterest-bearing demand
 $455,199 
  338,004 
NOW, MMDA & savings
  626,674 
  516,757 
Time, $250,000 or more
  24,717 
  34,269 
Other time
  79,806 
  77,487 
Total deposits
  1,186,396 
  966,517 
 
    
    
Securities sold under agreements to repurchase
  34,151 
  24,221 
FHLB borrowings
  70,000 
  - 
Junior subordinated debentures
  15,464 
  15,619 
Lease liability
  3,139 
  3,647 
Accrued interest payable and other liabilities
  10,008 
  10,758 
Total liabilities
  1,319,158 
  1,020,762 
 
    
    
Commitments
    
    
 
    
    
Shareholders' equity:
    
    
Preferred stock, no par value; authorized
    
    
5,000,000 shares; no shares issued and outstanding
  - 
  - 
Common stock, no par value; authorized
    
    
20,000,000 shares; issued and outstanding 5,787,504 shares
    
    
at September 30, 2020 and 5,912,300 shares at December 31, 2019
  56,871 
  59,813 
Retained earnings
  76,580 
  70,663 
Accumulated other comprehensive income
  6,000 
  3,644 
Total shareholders' equity
  139,451 
  134,120 
Total liabilities and shareholders' equity
 $1,458,609 
  1,154,882 
 
See accompanying Notes to Consolidated Financial Statements.
 
 
3
 
 
PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Statements of Earnings
Three and Nine Months Ended September 30, 2020 and 2019
(Dollars in thousands, except per share amounts)
 
 
 
Three months ended
 
 
Nine months ended
 
 
 
September 30,
 
 
September 30,
 
 
 
 2020
 
 
 2019
 
 
 2020
 
 
 2019
 
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
 $10,507 
  11,004 
  31,367 
  32,517 
Interest on due from banks
  19 
  87 
  103 
  136 
Interest on fededal funds sold
  33 
  - 
  178 
  - 
Interest on investment securities:
    
    
    
    
U.S. Government sponsored enterprises
  528 
  628 
  1,864 
  1,942 
State and political subdivisions
  717 
  671 
  2,042 
  2,265 
Other
  64 
  40 
  202 
  128 
Total interest income
  11,868 
  12,430 
  35,756 
  36,988 
 
    
    
    
    
Interest expense:
    
    
    
    
NOW, MMDA & savings deposits
  482 
  455 
  1,455 
  1,057 
Time deposits
  224 
  259 
  725 
  581 
FHLB borrowings
  103 
  21 
  269 
  70 
Junior subordinated debentures
  76 
  210 
  296 
  656 
Other
  57 
  49 
  150 
  168 
Total interest expense
  942 
  994 
  2,895 
  2,532 
Net interest income
  10,926 
  11,436 
  32,861 
  34,456 
 
    
    
    
    
Provision for loan losses
  522 
  422 
  3,460 
  677 
Net interest income after provision for loan losses
  10,404 
  11,014 
  29,401 
  33,779 
 
    
    
    
    
Non-interest income:
    
    
    
    
Service charges
  809 
  1,178 
  2,635 
  3,409 
Other service charges and fees
  188 
  202 
  543 
  548 
Gain/(loss) on sale of investment securities
  1,688 
  (5)
  2,145 
  226 
Mortgage banking income
  750 
  376 
  1,635 
  834 
Insurance and brokerage commissions
  200 
  206 
  647 
  642 
Appraisal management fee income
  1,871 
  1,311 
  4,955 
  3,285 
Gain/(loss) on sale and write-down of
    
    
    
    
other real estate
  (47)
  (1)
  (47)
  (18)
Miscellaneous
  1,673 
  1,441 
  4,453 
  4,287 
Total non-interest income
  7,132 
  4,708 
  16,966 
  13,213 
 
    
    
    
    
Non-interest expense:
    
    
    
    
Salaries and employee benefits
  5,737 
  5,695 
  16,996 
  17,060 
Occupancy
  1,943 
  1,861 
  5,725 
  5,409 
Professional fees
  374 
  237 
  1,121 
  955 
Advertising
  152 
  234 
  566 
  775 
Debit card expense
  278 
  201 
  766 
  667 
FDIC Insurance
  81 
  (36)
  169 
  116 
Appraisal management fee expense
  1,478 
  1,012 
  3,845 
  2,538 
Other
  1,871 
  2,063 
  5,627 
  5,907 
Total non-interest expense
  11,914 
  11,267 
  34,815 
  33,427 
Earnings before income taxes
  5,622 
  4,455 
  11,552 
  13,565 
 
    
    
    
    
Income tax expense
  1,113 
  834 
  2,115 
  2,464 
 
    
    
    
    
Net earnings
 $4,509 
  3,621 
  9,437 
  11,101 
 
    
    
    
    
Basic net earnings per share
 $0.78 
  0.62 
  1.62 
  1.87 
Diluted net earnings per share
 $0.78 
  0.61 
  1.62 
  1.86 
Cash dividends declared per share
 $0.15 
  0.14 
  0.60 
  0.52 
 
See accompanying Notes to Consolidated Financial Statements.
 
 
4
 
 
PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Statements of Comprehensive Income
Three and Nine Months Ended September 30, 2020 and 2019
(Dollars in thousands)
 
 
 
Three months ended
 
 
Nine months ended
 
 
 
September 30,
 
 
September 30,
 
 
 
 2020
 
 
 2019
 
 
 2020
 
 
 2019
 
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 $4,509 
  3,621 
  9,437 
  11,101 
 
    
    
    
    
Other comprehensive income:
    
    
    
    
Unrealized holding gains on securities
    
    
    
    
available for sale
  93 
  700 
  5,204 
  4,584 
Reclassification adjustment for (gains) losses on
    
    
    
    
securities available for sale
    
    
    
    
included in net earnings
  (1,688)
  5 
  (2,145)
  (226)
 
    
    
    
    
Total other comprehensive income (loss),
    
    
    
    
before income taxes
  (1,595)
  705 
  3,059 
  4,358 
 
    
    
    
    
Income tax expense related to other
    
    
    
    
comprehensive income:
    
    
    
    
 
    
    
    
    
Unrealized holding gains on securities
    
    
    
    
available for sale
  21 
  161 
  1,196 
  1,054 
Reclassification adjustment for (gains) losses
    
    
    
    
on securities available for sale
    
    
    
    
included in net earnings
  (388)
  1 
  (493)
  (52)
 
    
    
    
    
Total income tax expense related to
    
    
    
    
other comprehensive income (loss)
  (367)
  162 
  703 
  1,002 
 
    
    
    
    
Total other comprehensive income (loss),
    
    
    
    
net of tax
  (1,228)
  543 
  2,356 
  3,356 
 
    
    
    
    
Total comprehensive income
 $3,281 
  4,164 
  11,793 
  14,457 
 
See accompanying Notes to Consolidated Financial Statements.
 
 
5
 
 
PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Statements of Changes in Shareholders' Equity
Three and Nine Months Ended September 30, 2020 and 2019
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 Accumulated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Other
 
 
 
 
 
 
 Common Stock
 
 
 
 
 
 Retained
 
 
 Comprehensive
 
 
 
 
 
 
Shares
 
 
Amount
 
 
 Earnings
 
 
 Income
 
 
 Total
 
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2019
  5,912,300 
 $59,813 
  70,663 
  3,644 
  134,120 
 
    
    
    
    
    
Common stock repurchase
  (126,800)
  (2,999)
  - 
  - 
  (2,999)
Cash dividends declared on
    
    
    
    
    
common stock
  - 
  - 
  (1,779)
  - 
  (1,779)
Restricted stock units exercised
  2,004 
  57 
  - 
  - 
  57 
Net earnings
  - 
  - 
  2,367 
  - 
  2,367 
Change in accumulated other
    
    
    
    
    
comprehensive income, net of tax
  - 
  - 
  - 
  2,090 
  2,090 
Balance, March 31, 2020
  5,787,504 
  56,871 
  71,251 
  5,734 
  133,856 
 
    
    
    
    
    
Cash dividends declared on
    
    
    
    
    
common stock
  - 
  - 
  (870)
  - 
  (870)
Net earnings
  - 
  - 
  2,561 
  - 
  2,561 
Change in accumulated other
    
    
    
    
    
comprehensive income, net of tax
  - 
  - 
  - 
  1,494 
  1,494 
Balance, June 30, 2020
  5,787,504 
 $56,871 
  72,942 
  7,228 
  137,041 
 
    
    
    
    
    
Cash dividends declared on
    
    
    
    
    
common stock
  - 
  - 
  (871)
  - 
  (871)
Net earnings
  - 
  - 
  4,509 
  - 
  4,509 
Change in accumulated other
    
    
    
    
    
comprehensive income, net of tax
  - 
  - 
  - 
  (1,228)
  (1,228)
Balance, September 30, 2020
  5,787,504 
 $56,871 
  76,580 
  6,000 
  139,451 
 
    
    
    
    
    
 
    
    
    
    
    
Balance, December 31, 2018
  5,995,256 
 $62,096 
  60,535 
  986 
  123,617 
 
    
    
    
    
    
Common stock repurchase
  (5,518)
  (152)
  - 
  - 
  (152)
Cash dividends declared on
    
    
    
    
    
common stock
  - 
  - 
  (1,445)
  - 
  (1,445)
Restricted stock units exercised
  7,398 
  207 
  - 
  - 
  207 
Net earnings
  - 
  - 
  3,667 
  - 
  3,667 
Change in accumulated other
    
    
    
    
    
comprehensive income, net of tax
  - 
  - 
  - 
  690 
  690 
Balance, March 31, 2019
  5,997,136 
  62,151 
  62,757 
  1,676 
  126,584 
 
    
    
    
    
    
Common stock repurchase
  (63,996)
  (1,761)
  - 
  - 
  (1,761)
Cash dividends declared on
    
    
    
    
    
common stock
  - 
  - 
  (832)
  - 
  (832)
Net earnings
  - 
  - 
  3,813 
  - 
  3,813 
Change in accumulated other
    
    
    
    
    
comprehensive income, net of tax
  - 
  - 
  - 
  2,123 
  2,123 
Balance, June 30, 2019
  5,933,140 
 $60,390 
  65,738 
  3,799 
  129,927 
 
    
    
    
    
    
Common stock repurchase
  (20,840)
  (577)
  - 
  - 
  (577)
Cash dividends declared on
    
    
    
    
    
common stock
  - 
  - 
  (831)
  - 
  (831)
Restricted stock units exercised
  - 
  - 
  - 
  - 
  - 
Net earnings
  - 
  - 
  3,621 
  - 
  3,621 
Change in accumulated other
    
    
    
    
    
comprehensive income, net of tax
  - 
  - 
  - 
  543 
  543 
Balance, September 30, 2019
  5,912,300 
 $59,813 
  68,528 
  4,342 
  132,683 
 
See accompanying Notes to Consolidated Financial Statements.
 
 
6
 
 
PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Statements of Cash Flows
Nine Months Ended Septemer 30, 2020 and 2019
(Dollars in thousands)
 
 
 
 2020
 
 
 2019
 
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
Net earnings
 $9,437 
  11,101 
Adjustments to reconcile net earnings to
    
    
net cash provided by operating activities:
    
    
Depreciation, amortization and accretion
  3,080 
  2,949 
Provision for loan losses
  3,460 
  677 
Deferred income taxes
  (25)
  (7)
Gain on sale of investment securities
  (2,145)
  (226)
Loss (gain) on sale of other real estate
  - 
  1 
Write-down of other real estate
  47 
  17 
Loss on sale of premises and equipment
  - 
  138 
Restricted stock expense
  (73)
  201 
Proceeds from sales of mortgage loans held for sale
  78,526 
  34,002 
Origination of mortgage loans held for sale
  (83,069)
  (37,585)
Change in:
    
    
Cash surrender value of life insurance
  (283)
  (286)
Right of use lease asset
  525 
  585 
Other assets
  (219)
  (790)
Lease liabilty
  (508)
  (935)
Other liabilities
  (677)
  (765)
Net cash provided by operating activities
  8,076 
  9,077 
 
    
    
Cash flows from investing activities:
    
    
Purchases of investment securities available for sale
  (90,233)
  (36,515)
Proceeds from sales, calls and maturities of investment securities
    
    
available for sale
  52,289 
  36,700 
Proceeds from paydowns of investment securities available for sale
  14,635 
  11,416 
Purchases of other investments
  - 
  - 
Proceeds from paydowns on other investments
  132 
  132 
Purchases of FHLB stock
  (3,031)
  (2,976)
Net change in loans
  (120,781)
  (42,146)
Purchases of premises and equipment
  (2,298)
  (2,800)
Purchases of bank owned life insurance
  (140)
  - 
Proceeds from sale of premises and equipment
  - 
  697 
Proceeds from sale of other real estate and repossessions
  - 
  9 
Net cash used by investing activities
  (149,427)
  (35,483)
 
    
    
Cash flows from financing activities:
    
    
Net change in deposits
  219,879 
  84,355 
Net change in securities sold under agreement to repurchase
  9,930 
  (36,168)
Proceeds from FHLB borrowings
  70,000 
  184,500 
Repayments of FHLB borrowings
  - 
  (114,500)
Proceeds from Fed Funds purchased
  6,935 
  100,075 
Repayments of Fed Funds purchased
  (6,935)
  (100,075)
Repayment of Junior Subordinated Debt
  (155)
  - 
Restricted stock units exercised
  57 
  - 
Common stock repurchased
  (2,999)
  (2,490)
Cash dividends paid on common stock
  (3,520)
  (3,108)
Net cash provided by financing activities
  293,192 
  112,589 
 
    
    
Net change in cash and cash equivalents
  151,841 
  86,183 
 
    
    
Cash and cash equivalents at beginning of period
  52,387 
  43,370 
 
    
    
Cash and cash equivalents at end of period
 $204,228 
  129,553 
 
 
7
 
 
PEOPLES BANCORP OF NORTH CAROLINA, INC.
Consolidated Statements of Cash Flows, continued
Nine Months Ended September 30, 2020 and 2019
(Dollars in thousands)
 
 
 
 2020
 
 
 2019
 
 
 
 (Unaudited)
 
 
 (Unaudited)
 
 
 
 
 
 
 
 
Supplemental disclosures of cash flow information:
 
 
 
 
 
 
Cash paid during the period for:
 
 
 
 
 
 
Interest
 $1,908 
  2,510 
Income taxes
 $1,651 
  2,463 
 
    
    
Noncash investing and financing activities:
    
    
Change in unrealized gain on investment securities
    
    
 available for sale, net
 $2,356 
  3,356 
Issuance of accrued restricted stock units
 $57 
  207 
Transfers of loans to other real estate and repossessions
 $175 
  26 
Initial recognition of lease right of use asset and lease liability
 $450 
  4,401 
 
See accompanying Notes to Consolidated Financial Statements.
 
 
8
 
PEOPLES BANCORP OF NORTH CAROLINA, INC.
 
Notes to Consolidated Financial Statements (Unaudited)
 
(1) 
Summary of Significant Accounting Policies
 
The consolidated financial statements include the financial statements of Peoples Bancorp of North Carolina, Inc. and its wholly owned subsidiary, Peoples Bank (the “Bank”), along with the Bank’s wholly owned subsidiaries, Peoples Investment Services, Inc. (“PIS”), Real Estate Advisory Services, Inc. (“REAS”), Community Bank Real Estate Solutions, LLC (“CBRES”) and PB Real Estate Holdings, LLC (collectively called the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.
 
The Bank operates three banking offices focused on the Latino population that were formerly operated as a division of the Bank under the name Banco de la Gente (“Banco”). These offices are now branded as Bank branches and considered a separate market territory of the Bank as they offer normal and customary banking services as are offered in the Bank’s other branches such as the taking of deposits and the making of loans.
 
The consolidated financial statements in this report (other than the Consolidated Balance Sheet at December 31, 2019) are unaudited. In the opinion of management, all adjustments (none of which were other than normal accruals) necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”). Actual results could differ from those estimates.
 
The Company’s accounting policies are fundamental to understanding management’s discussion and analysis of results of operations and financial condition. Many of the Company’s accounting policies require significant judgment regarding valuation of assets and liabilities and/or significant interpretation of the specific accounting guidance. A description of the Company’s significant accounting policies can be found in Note 1 of the Notes to Consolidated Financial Statements in the Company’s 2019 Annual Report to Shareholders which is Appendix A to the Proxy Statement for the May 7, 2020 Annual Meeting of Shareholders.
 
Recent Accounting Pronouncements
 
The following table provides a summary of Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”) that the Company has recently adopted.
 
Recently Adopted Accounting Guidance
 
 
 
 
 
 
ASU
Description
Effective Date
Effect on Financial Statements or Other Significant Matters
ASU 2016-02: Leases
Increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.
January 1, 2019
See section titled "ASU 2016-02" below for a description of the effect on the Company’s results of operations, financial position and disclosures.
ASU 2017-08: Premium Amortization on Purchased Callable Debt Securities
Amended the requirements related to the amortization period for certain purchased callable debt securities held at a premium.
January 1, 2019
The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures.
ASU 2018-11: Leases (Topic 842): Targeted Improvements
Intended to reduce costs and ease implementation of ASU 2016-02.
January 1, 2019
The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures.
ASU 2018-20: Narrow- Scope Improvements for Lessors
Provides narrow-scope improvements for lessors, that provide relief in the accounting for sales, use and similar taxes, the accounting for other costs paid by a lessee that may benefit a lessor, and variable payments when contracts have lease and non-lease components.
January 1, 2019
See comments for ASU 2016-02 below.
ASU 2019-07: Codification Updates to SEC Sections
Guidance updated for various Topics of the ASC to align the guidance in various SEC sections of the ASC with the requirements of certain SEC final rules.
Effective upon issuance
The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures.
  
 
9
 
 
ASU
Description