The Company acquired loans in transfers during the fiscal years ended June 30, 2011 and June 30, 2015. At acquisition, certain transferred loans evidenced 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. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and nonaccrual status, borrower credit scores and recent loan to value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds.

The carrying amount of those loans is included in the balance sheet amounts of loans receivable at September 30 and June 30, 2015. The amount of these loans is shown below:

(dollars in thousands)	September 30, 2015	June 30, 2015
Residential real estate	$3,397	$3,542
Construction real estate	2,783	2,806
Commercial real estate	12,401	12,523
Consumer loans	-	207
Commercial loans	1,161	1,180
Outstanding balance	$19,742	$20,258
Carrying amount, net of fair value adjustment of $3,083 and $3,132 at September 30, 2015 and June 30, 2015, respectively	$16,659	$17,126

	For the three-month period ending
(dollars in thousands)	September 30 2015	September 30, 2014
Balance at beginning of period	$547	$380
Additions	-	4
Accretion	(49)	(60)
Reclassification from nonaccretable difference	84	-
Disposals	-	-
Balance at end of period	$582	$324

During the three-month periods ended September 30, 2015 and September 30, 2014, the Company did not increase the allowance for loan losses related to these purchased credit impaired loans. During the same periods, the Company did not reverse the allowance for loan losses related to these loans.