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Acquired Credit Impaired Loans
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Acquired Credit Impaired Loans Acquired Credit Impaired Loans
Loans acquired through mergers are recorded at fair value with no carryover of the acquired entity's previously established allowance for loan losses.  The excess of expected cash flows over the estimated fair value of acquired loans is recognized as interest income over the remaining contractual lives of the loans using the level yield method. Subsequent decreases in expected cash flows will require additions to the allowance for loan losses.  Subsequent improvements in expected cash flows result in the recognition of additional interest income over the then-remaining contractual lives of the loans.

Impaired loans acquired are accounted for under ASC 310-30.  Factors considered in evaluating whether an acquired loan was impaired include delinquency status and history, updated borrower credit status, collateral information, and updated loan-to-value information.  The difference between contractually required payments at the time of acquisition and the cash flows expected to be collected is referred to as the nonaccretable difference. The interest component of the cash flows expected to be collected is referred to as the accretable yield and is recognized as interest income over the remaining contractual life of the loan using the level yield method.   Subsequent decreases in expected cash flows will require additions to the allowance for loan losses.  Subsequent improvements in expected cash flows will result in a reclassification from the nonaccretable difference to the accretable yield.
The following table provides at September 30, 2020 and December 31, 2019 the major classifications of acquired credit impaired loans that are accounted for in accordance with ASC 310-30 (in thousands):
September 30, 2020December 31, 2019
Acquired from First Capital Bancshares, Inc.
Commercial & industrial$2 5 
Commercial, secured by real estate— 792 
Residential real estate453 551 
Other loans, including deposit overdrafts— — 
  Loans, gross455 1,348 
Less allowance for loan losses— — 
  Loans, net$455 1,348 
Acquired from Eaton National Bank & Trust Co.
Commercial & industrial$547 423 
Commercial, secured by real estate622 815 
Residential real estate606 685 
Other loans, including deposit overdrafts230 263 
  Loans, gross2,005 2,186 
Less allowance for loan losses— — 
  Loans, net$2,005 2,186 
Acquired from BNB Bancorp, Inc.
Commercial & industrial$— — 
Commercial, secured by real estate802 1,219 
Residential real estate87 100 
Other loans, including deposit overdrafts— — 
  Loans, gross889 1,319 
Less allowance for loan losses— — 
  Loans, net$889 1,319 
Acquired from Columbus First Bancorp, Inc.
Commercial & industrial$126 283 
Commercial, secured by real estate680 705 
Residential real estate1,178 1,382 
Other loans, including deposit overdrafts— — 
  Loans, gross1,984 2,370 
Less allowance for loan losses— — 
  Loans, net$1,984 2,370 
Total
Commercial & industrial$675 711 
Commercial, secured by real estate2,104 3,531 
Residential real estate2,324 2,718 
Other loans, including deposit overdrafts230 263 
Loans, gross5,333 7,223 
Less allowance for loan losses— — 
  Loans, net$5,333 7,223 
The following table provides the outstanding balance and related carrying amount for acquired credit impaired loans at the dates indicated (in thousands):
September 30, 2020December 31, 2019
Outstanding balance$6,590 9,139 
Carrying amount5,333 7,223 

Activity during the three and nine months ended September 30, 2020 and 2019 for the accretable discount related to acquired credit impaired loans is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Accretable discount at beginning of period$204 626 480 743 
Reclassification from nonaccretable discount to accretable discount6 136 368 195 
Disposals— — — 1 
Accretion(27)(131)(665)(308)
Accretable discount at end of period$183 631 183 631