Purchased Credit Impaired Loans

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Purchased Credit Impaired Loans

PURCHASED CREDIT IMPAIRED LOANS

Purchased Credit Impaired Loans are included in NOTE 4. LOANS AND ALLOWANCE, in the Notes to Consolidated Condensed Financial Statements of this Quarterly Report on Form 10-Q. As described in NOTE 4, purchased loans are recorded at the acquisition date fair value, which could result in a fair value discount or premium. Purchased loans with evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments are accounted for under ASC 310-30, Loans Acquired with Deteriorated Credit Quality. The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into earnings over the term of the loans.

The carrying amount of Purchased Credit Impaired Loans as of June 30, 2019 and December 31, 2018 was $15.9 million and $17.3 million, respectively; with no required allowance for loan losses. As customer cash flow expectations improve, nonaccretable yield can be reclassified to accretable yield. The accretable yield, or income expected to be collected, and reclassifications from nonaccretable, are identified in the table below.

	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Accretable yield beginning balance	$	2,064		$	2,143
Additions	—			—
Accretion	(638		)	(1,218		)
Reclassification from nonaccretable	488			989
Disposals	—			—
Accretable yield ending balance	$	1,914		$	1,914

	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Accretable yield beginning balance	$	2,675		$	2,890
Additions	—			—
Accretion	(927		)	(1,437		)
Reclassification from nonaccretable	675			970
Disposals	—			—
Accretable yield ending balance	$	2,423		$	2,423

There were no loans acquired during the six months ended June 30, 2019 and 2018, for which it was probable that all contractually required payments would not be collected.