Accounting for Certain Loans Acquired in a Transfer

12 Months Ended

Dec. 31, 2018

Accounting for Certain Loans Acquired in a Transfer [Abstract]

Accounting for Certain Loans Acquired in a Transfer

Note 11: Accounting for Certain Loans Acquired in a Transfer

The Company acquired loans in the acquisition of Universal and a few of the transferred loans had evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected.

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. The Company acquired two loans with evidence of credit deterioration recorded at a fair value of $313,000.

The following table presents the carrying amounts of the acquired loans included in the balance sheet amounts of loans receivable as of December 31, 2018.

	December 31, 2018
Outstanding balance
Real estate
Commercial	$	120,249
Commercial construction and development		8,664
Consumer closed end first mortgage		30,694
Consumer open end and junior liens		8,032
Total real estate loans		167,639
Other loans
Consumer loans
Auto		1,138
Boat/RVs		97
Other		523
Commercial and industrial		10,571
Total other loans		12,329
Total loans	$	179,968
Carrying amount	$	177,169
Allowance		-
Carrying amount net of allowance	$	177,169

Accretable yield, or income expected to be collected as of December 31, 2018 is $2.8 million.