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Purchased Credit Impaired Loans
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Purchased Credit Impaired Loans
PURCHASED CREDIT IMPAIRED LOANS

Purchased Credit Impaired Loans are included in NOTE 4. LOANS AND ALLOWANCE of these Notes to Consolidated Condensed Financial Statements. 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 September 30, 2019 was $18.5 million with allowance for loan loss of $453,000. The carrying amount of Purchased Credit Impaired Loans as of December 31, 2018 was $17.3 million 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 September 30, 2019

Nine Months Ended September 30, 2019
Accretable yield beginning balance
$
1,914


$
2,143

Additions
576


576

Accretion
(420
)

(1,638
)
Reclassification from nonaccretable
374


1,363

Disposals
(165
)

(165
)
Accretable yield ending balance
$
2,279


$
2,279



Three Months Ended September 30, 2018

Nine Months Ended September 30, 2018
Accretable yield beginning balance
$
2,423


$
2,890

Additions
—


—

Accretion
(1,004
)

(2,441
)
Reclassification from nonaccretable
798


1,768

Disposals
(16
)

(16
)
Accretable yield ending balance
$
2,201


$
2,201




The following table presents loans acquired, as of the acquisition date, during the nine months ended September 30, 2019, for which it was probable that all contractually required payments would not be collected. There were no loans acquired during the nine months ended September 30, 2018.
 
MBT
Contractually required payments receivable at acquisition date
$
6,840

Nonaccretable difference
2,733

Expected cash flows at acquisition date
4,107

Accretable difference
576

Basis in loans at acquisition date
$
3,531