Financial Services Group First Quarter 2020 Update – COVID-19 Information Included

First of all, we hope that each of you and your family are safe and healthy during this pandemic. We continue to be available to you as we have shifted to working remotely throughout our offices. With all of the economic turmoil and the new CARES Act, accounting and financial reporting is heavily impacted.

We have participated in several webcasts over the past two weeks and are very respectful of the work that our community banks and the banking regulators are doing to help support borrowers. Community banks are also facing new challenges in operations and also need to assess certain accounting and financial reporting issues that may be affecting the bank. In this edition of our quarterly communication, we have provided information about all of the financial reporting and accounting issues that we are currently aware of – some of which are currently being evaluated by regulatory agencies and not resolved at this time.

In the Coronaviruses Disease 2019 section, we have included the following resources and articles for your consideration:

• Loan Modifications and Working with Customers Affected by the Coronavirus

• Goodwill Impairment Analysis

• Qualitative and Environmental Factors within the Allowance for Loan Losses

• Coronavirus Aid, Relief, and Economic Security Act

• Portfolio Stress Testing as a Pandemic Risk-Management Strategy

• Coronavirus Leads to Virtual Annual Meetings

• COVID-19 Financial Reporting Considerations

• Cybercriminals Take Advantage of Concerned Public During COVID-19 Pandemic

• Federal Tax Impact of 2020 Families First and CARES Acts on Financial Institutions

We have also have compiled a list of items for your consideration in your financial reporting and disclosures for the first quarter and a summary of recently issued accounting pronouncements (see Appendices for summary of recently issued accounting pronouncements and the related effective dates). Our goal is for you to have up-to-date information available to you prior to finalizing your financial reporting deliverables.

Join us on Wednesday, April 8th, for a one-hour webcast designed to provide insight into recent COVID-19 developments, discussions, actions and pronouncements from the FASB and other accounting regulatory bodies. Find more information and register at: http://www.elliottdavis.com/events

Please review and feel free to contact one of your Elliott Davis engagement team members with any questions.  We look forward to working with you during the audit and throughout the financial reporting process.

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