XML 29 R15.htm IDEA: XBRL DOCUMENT
v3.20.4

Accounting for Certain Loans Acquired in a Purchase | 12 Months Ended
--- | ---
Dec. 31, 2020
Receivables [Abstract] |
Accounting for Certain Loans Acquired in a Purchase | ACCOUNTING FOR CERTAIN LOANS ACQUIRED IN A PURCHASE Purchase Credit Impaired Loans are included in NOTE 5. LOANS AND ALLOWANCE of these Notes to Consolidated Financial Statements. As described in NOTE 5, 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 outstanding balance of purchased credit impaired loans as of December 31, 2020 was $15.6 million which had a carrying amount of $9.6 million and $557,000 of related allowance for loan losses. As of December 31, 2019, the outstanding balance of purchased credit impaired loans was $25.3 million with a carrying amount of $16.1 million with $124,000 required allowance for loan losses. As customer cash flow expectations improve, nonaccretable yield can be reclassified to accretable yield. The accretable amount, or income expected to be collected, and reclassifications from nonaccretable, are identified in the table below.
| Twelve Months Ended December 31, 2020 |  | Twelve Months Ended December 31, 2019 |  | Twelve Months Ended December 31, 2018
Beginning balance | $ | 2,132 |  |  | $ | 2,143 |  |  | $ | 2,890 |
Additions | — |  |  | 576 |  |  | — |
Accretion | (2,852) |  |  | (2,387) |  |  | (4,118) |
Reclassification from nonaccretable | 1,947 |  |  | 1,965 |  |  | 3,387 |
Disposals | (7) |  |  | (165) |  |  | (16) |
Ending balance | $ | 1,220 |  |  | $ | 2,132 |  |  | $ | 2,143 |
No loans were acquired during the period ending December 31, 2020. The following table presents loans acquired during the period ending December 31, 2019, for which it was probable at acquisition that all contractually required payments would not be collected.
| 2019 |  |
| 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 |  |  |

X
- Definition The entire disclosure for certain contractual rights to receive money on demand or on fixed or determinable dates with evidence of deterioration of credit quality since origination that were acquired by completion of a transfer for which it is probable, at acquisition, that the investor will be unable to collect all contractually required payments receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=2196854 + Details
Name: | us-gaap_AccountingForCertainLoansAndDebtSecuritiesAcquiredInTransferDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration