Accounting Standards Updates
Recent Accounting Standards
ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This update requires public business entities on an annual basis to (i) disclose in the rate reconciliation table additional categories of information about federal, state and foreign income taxes, (ii) to provide more details about the reconciling items in some categories if items that meet a quantitative threshold and (iii) disaggregate income taxes paid, net of refunds, by federal, state and foreign taxes based on a quantitative threshold, among other things. ASU 2023-09 became effective for the Company in 2025 and did not have a significant impact on financial statement disclosures. See Note 11, “Income Taxes”.
ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This update requires that public businesses disclose in tabular format, disaggregating information about prescribed categories underlying any relevant income statement expense caption. The prescribed categories include, among other things, employee compensation, depreciation and intangible asset amortization. ASU 2024-03 will be effective for the Company, on a prospective basis, for annual reporting periods beginning after December 15, 2026. Early adoption
and retrospective application is permitted. ASU 2024-03 is not expected to have a significant impact on the Company’s financial statements.
ASU 2025‑08, “Financial Instruments - Credit Losses (Topic 326): Purchased Loans.” ASU 2025-08 expands the scope of the “gross‑up” method, formerly applicable only to purchased credit‑deteriorated ("PCD") assets, to include acquired non‑PCD loans that meet certain criteria, now referred to as purchased seasoned loans (“PSLs”). Under this model, an allowance for expected credit losses is recognized at acquisition, offsetting the loan’s amortized cost basis, thereby eliminating the day-one credit‑loss expense previously required for non‑PCD assets. PSLs are defined as non‑PCD loans acquired either (i) through a business combination, or (ii) purchased more than 90 days after origination when the acquirer was not involved in origination. ASU 2025-08 will be effective for the Company on a prospective basis for loans acquired on or after the adoption date, for interim and annual reporting periods beginning in 2027, though early adoption is permitted. ASU 2025-08 is not expected to have a significant impact on the Company’s financial statements.