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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 2016
Loans and Leases Receivable Disclosure [Abstract]  
Composition of the loan portfolio by type
The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands):
 
 
June 30, 2016
 
December 31, 2015
Commercial and agricultural:
 
 
 
 
Commercial and industrial
 
$
189,913

 
$
192,197

Agricultural
 
1,153

 
1,036

Commercial mortgages:
 
 

 
 

Construction
 
40,937

 
41,131

Commercial mortgages, other
 
510,871

 
465,347

Residential mortgages
 
196,200

 
195,778

Consumer loans:
 
 

 
 

Credit cards
 
1,338

 
1,483

Home equity lines and loans
 
98,758

 
101,726

Indirect consumer loans
 
144,014

 
151,327

Direct consumer loans
 
17,972

 
18,608

Total loans, net of deferred origination fees and costs
 
$
1,201,156

 
$
1,168,633

Interest receivable on loans
 
2,964

 
2,870

Total recorded investment in loans
 
$
1,204,120

 
$
1,171,503
Allowance for loan losses by portfolio segment
The following tables present the activity in the allowance for loan losses by portfolio segment for the three and six month periods ended June 30, 2016 and 2015 (in thousands):
 
Three Months Ended June 30, 2016
Allowance for loan losses
Commercial and Agricultural
 
Commercial Mortgages
 
Residential Mortgages
 
Consumer Loans
 
Total
Beginning balance
$
1,795

 
$
7,532

 
$
1,482

 
$
3,718

 
$
14,527

Charge-offs
(9
)
 
—

 
(58
)
 
(272
)
 
(339
)
Recoveries
18

 
2

 
—

 
72

 
92

Net recoveries (charge-offs)
9

 
2

 
(58
)
 
(200
)
 
(247
)
Provision
(33
)
 
220

 
80

 
121

 
388

Ending balance
$
1,771

 
$
7,754

 
$
1,504

 
$
3,639

 
$
14,668

 
Three Months Ended June 30, 2015
Allowance for loan losses
Commercial and Agricultural
 
Commercial Mortgages
 
Residential Mortgages
 
Consumer Loans
 
Total
Beginning balance
$
1,671

 
$
6,530

 
$
1,594

 
$
4,097

 
$
13,892

Charge-offs
—

 
(28
)
 
(10
)
 
(245
)
 
(283
)
Recoveries
23

 
17

 
—

 
120

 
160

Net recoveries (charge-offs)
23

 
(11
)
 
(10
)
 
(125
)
 
(123
)
Provision
131

 
106

 
(39
)
 
61

 
259

Ending balance
$
1,825

 
$
6,625

 
$
1,545

 
$
4,033

 
$
14,028

 
Six Months Ended June 30, 2016
Allowance for loan losses
Commercial and Agricultural
 
Commercial Mortgages
 
Residential Mortgages
 
Consumer Loans
 
Total
Beginning balance:
$
1,831

 
$
7,112

 
$
1,464

 
$
3,853

 
$
14,260

Charge-offs:
(17
)
 
—

 
(58
)
 
(715
)
 
(790
)
Recoveries:
50

 
9

 
—

 
156

 
215

Net recoveries (charge-offs)
33

 
9

 
(58
)
 
(559
)
 
(575
)
Provision
(93
)
 
633

 
98

 
345

 
983

Ending balance
$
1,771

 
$
7,754

 
$
1,504

 
$
3,639

 
$
14,668

 
Six Months Ended June 30, 2015
Allowance for loan losses
Commercial and Agricultural
 
Commercial Mortgages
 
Residential Mortgages
 
Consumer Loans
 
Total
Beginning balance:
$
1,460

 
$
6,326

 
$
1,572

 
$
4,328

 
$
13,686

Charge-offs:
—

 
(28
)
 
(32
)
 
(613
)
 
(673
)
Recoveries:
38

 
84

 
—

 
244

 
366

Net recoveries (charge-offs)
38

 
56

 
(32
)
 
(369
)
 
(307
)
Provision
327

 
243

 
5

 
74

 
649

Ending balance
$
1,825

 
$
6,625

 
$
1,545

 
$
4,033

 
$
14,028
Allowance for loan losses and the recorded investment in loans based on impairment method
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2016 and December 31, 2015 (in thousands):
 
June 30, 2016
Allowance for loan losses:
Commercial and Agricultural
 
Commercial Mortgages
 
Residential Mortgages
 
Consumer Loans
 
Total
Ending allowance balance attributable to loans:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
—

 
$
1,528

 
$
—

 
$
122

 
$
1,650

Collectively evaluated for impairment
1,771

 
6,167

 
1,479

 
3,517

 
12,934

Loans acquired with deteriorated credit quality
—

 
59

 
25

 
—

 
84

   Total ending allowance balance
$
1,771

 
$
7,754

 
$
1,504

 
$
3,639

 
$
14,668

 
December 31, 2015
Allowance for loan losses:
Commercial and Agricultural
 
Commercial Mortgages
 
Residential Mortgages
 
Consumer Loans
 
Total
Ending allowance balance attributable to loans:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
8

 
$
1,481

 
$
—

 
$
77

 
$
1,566

Collectively evaluated for impairment
1,823

 
5,572

 
1,424

 
3,776

 
12,595

Loans acquired with deteriorated credit quality
—

 
59

 
40

 
—

 
99

   Total ending allowance balance
$
1,831

 
$
7,112

 
$
1,464

 
$
3,853

 
$
14,260

 
June 30, 2016
Loans:
Commercial
and
Agricultural
 
Commercial Mortgages
 
Residential Mortgages
 
Consumer Loans
 
Total
Loans individually evaluated for impairment
$
1,054

 
$
11,626

 
$
486

 
$
464

 
$
13,630

Loans collectively evaluated for  impairment
190,477

 
539,746

 
196,120

 
262,272

 
1,188,615

Loans acquired with deteriorated credit quality
—

 
1,782

 
93

 
—

 
1,875

   Total ending loans balance
$
191,531

 
$
553,154

 
$
196,699

 
$
262,736

 
$
1,204,120

 
December 31, 2015
Loans:
Commercial
and
Agricultural
 
Commercial Mortgages
 
Residential Mortgages
 
Consumer Loans
 
Total
Loans individually evaluated for impairment
$
1,498

 
$
12,773

 
$
235

 
$
474

 
$
14,980

Loans collectively evaluated for  impairment
192,202

 
493,102

 
195,731

 
273,393

 
1,154,428

Loans acquired with deteriorated credit quality
—

 
1,825

 
270

 
—

 
2,095

   Total ending loans balance
$
193,700

 
$
507,700

 
$
196,236

 
$
273,867

 
$
1,171,503
Summary of impaired financing receivables
The following table presents loans individually evaluated for impairment recognized by class of loans as of June 30, 2016 and December 31, 2015 (in thousands):
 
June 30, 2016
 
December 31, 2015
With no related allowance recorded:
Unpaid Principal Balance
 
Recorded Investment
 
Allowance for Loan Losses Allocated
 
Unpaid Principal Balance
 
Recorded Investment
 
Allowance for Loan Losses Allocated
Commercial and agricultural:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
1,050

 
$
1,054

 
$
—

 
$
1,487

 
$
1,489

 
$
—

Commercial mortgages:
 

 
 

 
 

 
 

 
 

 
 

Construction
333

 
334

 
—

 
349

 
350

 
—

Commercial mortgages, other
6,220

 
6,251

 
—

 
7,551

 
7,577

 
—

Residential mortgages
485

 
486

 
—

 
234

 
235

 
—

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 

Home equity lines and loans
101

 
103

 
—

 
107

 
108

 
—

With an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 

Commercial and agricultural:
 
 
 

 
 

 
 

 
 

 
 

Commercial and industrial
—

 
—

 
—

 
9

 
9

 
8

Commercial mortgages:
 

 
 

 
 

 
 

 
 

 
 

Commercial mortgages, other
5,108

 
5,041

 
1,528

 
4,913

 
4,846

 
1,481

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 

Home equity lines and loans
361

 
361

 
122

 
364

 
366

 
77

Total
$
13,658

 
$
13,630

 
$
1,650

 
$
15,014

 
$
14,980

 
$
1,566


The following table presents the average recorded investment and interest income recognized by class of loans as of the three and six month periods ended June 30, 2016 and 2015 (in thousands):

 
 
Three Months Ended 
 June 30, 2016
 
Three Months Ended 
 June 30, 2015
 
Six Months Ended 
 June 30, 2016
 
Six Months Ended 
 June 30, 2015
With no related allowance recorded:
 
Average Recorded Investment
 
Interest Income Recognized
(1)
 
Average Recorded Investment
 
Interest Income Recognized
(1)
 
Average Recorded Investment
 
Interest Income Recognized
(1)
 
Average Recorded Investment
 
Interest Income Recognized
(1)
Commercial and agricultural:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
1,048

 
$
12

 
$
1,467

 
$
17

 
$
1,195

 
$
25

 
$
1,433

 
$
32

Commercial mortgages:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Construction
 
340

 
3

 
1,172

 
4

 
343

 
7

 
1,418

 
29

Commercial mortgages, other
 
6,733

 
59

 
7,636

 
63

 
7,014

 
121

 
7,660

 
126

Residential mortgages
 
399

 
1

 
246

 
1

 
344

 
1

 
249

 
2

Consumer loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Home equity lines & loans
 
104

 
1

 
482

 
6

 
105

 
3

 
465

 
12

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial and agricultural:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
4

 
—

 
274

 
—

 
6

 
—

 
212

 
3

Commercial mortgages:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial mortgages, other
 
4,942

 
1

 
4,611

 
24

 
4,910

 
3

 
4,438

 
47

Consumer loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Home equity lines and loans
 
362

 
—

 
—

 
—

 
363

 
—

 
18

 
—

Total
 
$
13,932

 
$
77

 
$
15,888

 
$
115

 
$
14,282

 
$
161

 
$
13

 
$
251

(1)Cash basis interest income approximates interest income recognized.

The following tables present the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loans as of June 30, 2016 and December 31, 2015 (in thousands):

 
 
Non-accrual
 
Loans Past Due 90 Days or More and Still Accruing
 
 
June 30, 2016
 
December 31, 2015
 
June 30, 2016
 
December 31, 2015
Commercial and agricultural:
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
55

 
$
13

 
$
8

 
$
3

Agricultural
 
—

 
—

 
—

 
—

Commercial mortgages:
 
 
 
 
 
 
 
 
Construction
 
61

 
63

 
—

 
—

Commercial mortgages
 
6,578

 
7,203

 
2,271

 
—

Residential mortgages
 
4,132

 
3,610

 
—

 
—

Consumer loans:
 
 
 
 
 
 
 
 
Credit cards
 
—

 
—

 
12

 
15

Home equity lines and loans
 
1,286

 
758

 
—

 
—

Indirect consumer loans
 
277

 
542

 
—

 
—

Direct consumer loans
 
40

 
43

 
—

 
—

Total
 
$
12,429

 
$
12,232

 
$
2,291

 
$
18
Recorded investment in past due and non-accrual status by class of loans
The following tables present the aging of the recorded investment in loans as of June 30, 2016 and December 31, 2015 (in thousands):
 
June 30, 2016
 
30 - 59 Days Past Due
 
60 - 89 Days Past Due
 
90 Days or More Past Due
 
Total Past Due
 
Loans Acquired with Deteriorated Credit Quality
 
Loans Not Past Due
 
Total
Commercial and agricultural:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
276

 
$
2

 
$
63

 
$
341

 
$
—

 
$
190,035

 
$
190,376

Agricultural
—

 
—

 
—

 
—

 
—

 
1,155

 
1,155

Commercial mortgages:
 

 
 

 
 

 
 

 
 

 
 

 
 
Construction
1,104

 
—

 
—

 
1,104

 
—

 
39,933

 
41,037

Commercial mortgages, other
553

 
5,383

 
5,516

 
11,452

 
1,782

 
498,883

 
512,117

Residential mortgages
1,585

 
557

 
2,027

 
4,170

 
93

 
192,436

 
196,699

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 
 
 
Credit cards
17

 
1

 
12

 
30

 
—

 
1,308

 
1,338

Home equity lines and loans
697

 
239

 
482

 
1,418

 
—

 
97,595

 
99,013

Indirect consumer loans
1,166

 
303

 
238

 
1,708

 
—

 
142,639

 
144,347

Direct consumer loans
65

 
32

 
10

 
106

 
—

 
17,932

 
18,038

Total
$
5,463

 
$
6,517

 
$
8,348

 
$
20,329

 
$
1,875

 
$
1,181,916

 
$
1,204,120



 
December 31, 2015
 
30 - 59 Days Past Due
 
60 - 89 Days Past Due
 
90 Days or More Past Due
 
Total Past Due
 
Loans Acquired with Deteriorated Credit Quality
 
Loans Not Past Due
 
Total
Commercial and agricultural:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
398

 
$
3

 
$
12

 
$
413

 
$
—

 
$
192,248

 
$
192,661

Agricultural
—

 
—

 
—

 
—

 
—

 
1,039

 
1,039

Commercial mortgages:
 

 
 

 
 

 
 

 
 

 
 

 
 
Construction
—

 
—

 
—

 
—

 
—

 
41,231

 
41,231

Commercial mortgages, other
4,197

 
199

 
5,239

 
9,635

 
1,825

 
455,009

 
466,469

Residential mortgages
2,983

 
725

 
1,703

 
5,411

 
270

 
190,555

 
196,236

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 
 
 
Credit cards
30

 
4

 
15

 
49

 
—

 
1,434

 
1,483

Home equity lines and loans
233

 
77

 
239

 
549

 
—

 
101,427

 
101,976

Indirect consumer loans
1,744

 
4

 
447

 
2,195

 
—

 
149,531

 
151,726

Direct consumer loans
208

 
—

 
19

 
227

 
—

 
18,455

 
18,682

Total
$
9,793

 
$
1,012

 
$
7,674

 
$
18,479

 
$
2,095

 
$
1,150,929

 
$
1,171,503
Loans by class modified as troubled debt restructurings
The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the six months ended June 30, 2016:

 
 
Number of Loans
 
Recorded Investment
Commercial mortgages:
 
 
 
 
Commercial mortgages
 
2
 
$
2,120

Total
 
2
 
$
2,120

The following table presents loans by class modified as TDRs that occurred during the three months ended June 30, 2016 and 2015 (dollars in thousands):
June 30, 2016
 
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Troubled debt restructurings:
 
 
 
 
 
 
Commercial mortgages:
 
 
 
 
 
 
Commercial mortgages
 
5

 
$
312

 
$
310

Residential mortgage
 
1

 
174

 
182

Consumer loans:
 
 
 
 
 
 
Home equity lines and loans
 
1

 
74

 
74

Total
 
7

 
$
560

 
$
566


June 30, 2015
 
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Troubled debt restructurings:
 
 
 
 
 
 
Commercial mortgages:
 
 

 
 

 
 

Commercial mortgages
 
1

 
$
110

 
$
110

Total
 
1

 
$
110

 
$
110



The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the three months ended June 30, 2016. The TDRs described above increased the allowance for loan losses by less than $0.1 million and resulted in no charge-offs during the three months ended June 30, 2015.

The following table presents loans by class modified as TDRs that occurred during the six months ended June 30, 2016 and 2015 (dollars in thousands):
June 30, 2016
 
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Troubled debt restructurings:
 
 
 
 
 
 
Commercial mortgages:
 
 

 
 

 
 

Commercial mortgages
 
5

 
$
312

 
$
310

Residential mortgages
 
2

 
295

 
307

Consumer loans:
 
 
 
 
 
 
Home equity lines and loans
 
1

 
74

 
74

Total
 
8

 
$
681

 
$
691

June 30, 2015
 
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Troubled debt restructurings:
 
 
 
 
 
 
Commercial and agricultural:
 
 
 
 
 
 
Commercial and industrial
 
1

 
$
477

 
$
477

Commercial mortgages:
 
 

 
 

 
 

Commercial mortgages
 
1

 
110

 
110

Total
 
2

 
$
587

 
$
587
Risk category of the recorded investment of loans by class of loans
Commercial loans not meeting the criteria above to be considered criticized or classified are considered to be pass rated loans.  Loans listed as not rated are included in groups of homogeneous loans performing under terms of the loan notes.  Based on the analyses performed as of June 30, 2016 and December 31, 2015, the risk category of the recorded investment of loans by class of loans is as follows (in thousands):
 
June 30, 2016
 
Not Rated
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Loans acquired with deteriorated credit quality
 
Total
Commercial and agricultural:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
—

 
$
186,300

 
$
2,543

 
$
1,533

 
$
—

 
$
—

 
$
190,376

Agricultural
—

 
1,155

 
—

 


 
—

 
—

 
1,155

Commercial mortgages:
 

 
 

 
 

 
 

 
 

 
 

 
 
Construction
—

 
39,518

 
1,458

 
61

 
—

 
—

 
41,037

Commercial mortgages
—

 
484,606

 
8,364

 
12,954

 
4,411

 
1,782

 
512,117

Residential mortgages
192,474

 
—

 
—

 
4,132

 
—

 
93

 
196,699

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 

 
 
Credit cards
1,338

 
—

 
—

 
—

 
—

 
—

 
1,338

Home equity lines and loans
97,727

 
—

 
—

 
1,286

 
—

 
—

 
99,013

Indirect consumer loans
144,070

 
—

 
—

 
277

 
—

 
—

 
144,347

Direct consumer loans
17,998

 
—

 
—

 
40

 
—

 
—

 
18,038

Total
$
453,607

 
$
711,579

 
$
12,365

 
$
20,283

 
$
4,411

 
$
1,875

 
$
1,204,120

 
December 31, 2015
 
Not Rated
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Loans acquired with deteriorated credit quality
 
Total
Commercial and agricultural:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
—

 
$
186,359

 
$
3,772

 
$
2,521

 
$
9

 
$
—

 
$
192,661

Agricultural
—

 
1,039

 
—

 
—

 
—

 
—

 
1,039

Commercial mortgages:
 

 
 

 
 

 
 

 
 

 
 

 
 
Construction
—

 
40,881

 
287

 
63

 
—

 
—

 
41,231

Commercial mortgages
—

 
437,549

 
8,437

 
14,454

 
4,204

 
1,825

 
466,469

Residential mortgages
192,245

 
—

 
—

 
3,721

 
—

 
270

 
196,236

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 

 
 
Credit cards
1,483

 
—

 
—

 
—

 
—

 
—

 
1,483

Home equity lines and loans
101,218

 
—

 
—

 
758

 
—

 
—

 
101,976

Indirect consumer loans
151,184

 
—

 
—

 
542

 
—

 
—

 
151,726

Direct consumer loans
18,639

 
—

 
—

 
43

 
—

 
—

 
18,682

Total
$
464,769

 
$
665,828

 
$
12,496

 
$
22,102

 
$
4,213

 
$
2,095

 
$
1,171,503
Recorded investment in residential and consumer loans based on payment activity
The following table presents the recorded investment in residential and consumer loans based on payment activity as of June 30, 2016 and December 31, 2015 (in thousands):

 
June 30, 2016
 
 
 
Consumer Loans
 
Residential Mortgages
 
Credit Card
 
Home Equity Lines and Loans
 
Indirect Consumer Loans
 
Other Direct Consumer Loans
Performing
$
192,567

 
$
1,338

 
$
97,727

 
$
144,070

 
$
17,998

Non-Performing
4,132

 
—

 
1,286

 
277

 
40

 
$
196,699

 
$
1,338

 
$
99,013

 
$
144,347

 
$
18,038

 
December 31, 2015
 
 
 
Consumer Loans
 
Residential Mortgages
 
Credit Card
 
Home Equity Lines and Loans
 
Indirect Consumer Loans
 
Other Direct Consumer Loans
Performing
$
192,626

 
$
1,483

 
$
101,218

 
$
151,184

 
$
18,639

Non-Performing
3,610

 
—

 
758

 
542

 
43

 
$
196,236

 
$
1,483

 
$
101,976

 
$
151,726

 
$
18,682
Summary of changes in contractually required principal and interest on loans acquired
The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the PCI loans from from April 1, 2016 to June 30, 2016 and April 1, 2015 to June 30, 2015 (in thousands):

Three Months Ended June 30, 2016
 
Balance at March 31, 2016
 
Income Accretion
 
All Other Adjustments
 
Balance at June 30, 2016
Contractually required principal and interest
 
$
2,858

 
$
—

 
$
(366
)
 
$
2,492

Contractual cash flows not expected to be collected (nonaccretable discount)
 
(505
)
 
—

 
131

 
(374
)
Cash flows expected to be collected
 
2,353

 
—

 
(235
)
 
2,118

Interest component of expected cash flows (accretable yield)
 
(275
)
 
33

 
(1
)
 
(243
)
Fair value of loans acquired with deteriorating credit quality
 
$
2,078

 
$
33

 
$
(236
)
 
$
1,875


Three Months Ended June 30, 2015
 
Balance at March 31, 2015
 
Income Accretion
 
All Other Adjustments
 
Balance at June 30, 2015
Contractually required principal and interest
 
$
2,945

 
$
—

 
$
91

 
$
3,036

Contractual cash flows not expected to be collected (nonaccretable discount)
 
(595
)
 
—

 
27

 
(568
)
Cash flows expected to be collected
 
2,350

 
—

 
118

 
2,468

Interest component of expected cash flows (accretable yield)
 
(333
)
 
36

 
(27
)
 
(324
)
Fair value of loans acquired with deteriorating credit quality
 
$
2,017

 
$
36

 
$
91

 
$
2,144


The tables below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the PCI loans from January 1, 2016 to June 30, 2016 and January 1, 2015 to June 30, 2015 (in thousands):

Six Months Ended June 30, 2016
 
Balance at December 31, 2015
 
Income Accretion
 
All Other Adjustments
 
Balance at June 30, 2016
Contractually required principal and interest
 
$
2,912

 
$
—

 
$
(420
)
 
$
2,492

Contractual cash flows not expected to be collected (nonaccretable discount)
 
(506
)
 
—

 
132

 
(374
)
Cash flows expected to be collected
 
2,406

 
—

 
(288
)
 
2,118

Interest component of expected cash flows (accretable yield)
 
(311
)
 
70

 
(2
)
 
(243
)
Fair value of loans acquired with deteriorating credit quality
 
$
2,095

 
$
70

 
$
(290
)
 
$
1,875


Six Months Ended June 30, 2015
 
Balance at December 31, 2014
 
Income Accretion
 
All Other Adjustments
 
Balance at June 30, 2015
Contractually required principal and interest
 
$
3,621

 
$
—

 
$
(585
)
 
$
3,036

Contractual cash flows not expected to be collected (nonaccretable discount)
 
(570
)
 
—

 
2

 
(568
)
Cash flows expected to be collected
 
3,051

 
—

 
(583
)
 
2,468

Interest component of expected cash flows (accretable yield)
 
(420
)
 
99

 
(3
)
 
(324
)
Fair value of loans acquired with deteriorating credit quality
 
$
2,631

 
$
99

 
$
(586
)
 
$
2,144