b'Recently Adopted Accounting Standards: ASU 2018-02Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income On December 22, 2017, the U.S. federal government enacted the Tax Cuts and Jobs Act of 2017. As a result of the newly enacted tax laws and rates, in accordance with generally accepted accounting principles, the Bank remeasured their future tax benefits and liabilities using the newly enacted tax rates. Generally accepted accounting principles require that the effect of tax law and rate changes be recognized in income tax from continuing operations, even if the deferred tax asset or liability originally related to items recognized in other comprehensive income. Because of this, the tax effect of items within accumulated other comprehensive income (AOCI) do not reflect the appropriate tax rate. For additional information regarding the additional income tax expense recognized as a result of the remeasurement of the Banks net deferred tax asset, see Note 18.In February 2018, FASB finalized Accounting Standards Update (ASU) 2018-02 to allow reclassifying the effect of remeasuring deferred tax assets and liabilities related to items within AOCI to retained earnings, effectively correcting the stranded tax effects created by the newly enacted tax rates. CNB elected to early adopt ASU 2018-02 in 2017 to properly reflect the effective tax rate within AOCI. This change in accounting principle caused the Bank to reclassify $582,144 from AOCI to retained earnings during the year ended December 31, 2017.ASU 2014-09Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standards Codification (ASC) Update 2014-09, Revenue from Contracts with Customers.This standard update established a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance.The core principle prescribed by this standards update is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.The standard applies to all contracts with customers, except those that are within the scope of other topics in the FASB ASC.The Bank adopted this standard, and all subsequent Accounting Standards Updates that modified the standard, on January 1, 2018 under the modified retrospective approach with no material impact on its consolidated financial statements.ASU 2016-01Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities.This standard update amended the guidance on the classification and measurement of financial instruments.Certain amendments within this update include 1) requiring equity investments to be measured at fair value with changes in fair value recognized in net income, 2) simplifying the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, 3) requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.The adoption of this standard had no material impact on CNBs financial statements.Comprehensive Income: Comprehensive income is defined as the change in equity from transactions and other events from non-owner sources.It includes all changes in equity except those resulting from investments by shareholders and distributions to shareholders.Comprehensive income includes net income and certain elements of other comprehensive income including: employers accounting for pensions and accounting for certain investments in debt and equity securities. CNB reports its comprehensive income in a separate statement following the consolidated statements of income.12'