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Accounting for Certain Loans Acquired in a Transfer | 9 Months Ended
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Sep. 30, 2014
Transfers and Servicing [Abstract] |
Accounting for Certain Loans Acquired in a Transfer | Note 5 – Accounting for Certain Loans Acquired in a Transfer The Company acquired loans in acquisitions and the transferred loans had evidence of 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 non-accrual 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 amounts of those loans is included in the balance sheet amounts of loans receivable are as follows:
|  | September 30 |  |  | September 30 |  |  | September 30 |
|  | 2014 |  |  | 2014 |  |  | 2014 |
|  | Heartland |  |  | Summit |  |  | Total |
Commercial |  |  | 18,527 |  |  |  | 67,646 |  |  | $ | 86,173 |
Real estate |  |  | 10,055 |  |  |  | 24,747 |  |  |  | 34,802 |
Consumer |  |  | 8,287 |  |  |  | 9,106 |  |  |  | 17,393 |
Outstanding balance |  | $ | 36,869 |  |  | $ | 101,499 |  |  | $ | 138,368 |
Carrying amount, net of allowance of $205 |  |  |  |  |  |  |  |  |  | $ | 138,163 |
|  | December 31 |  |  | December 31 |  |  | December 31 |
|  | 2013 |  |  | 2013 |  |  | 2013 |
|  | Heartland |  |  | Summit |  |  | Total |
Commercial |  | $ | 37,048 |  |  | $ | — |  |  | $ | 37,048 |
Real estate |  |  | 11,761 |  |  |  | — |  |  |  | 11,761 |
Consumer |  |  | 11,485 |  |  |  | — |  |  |  | 11,485 |
Outstanding balance |  | $ | 60,294 |  |  | $ | — |  |  | $ | 60,294 |
Carrying amount, net of allowance of $389 |  |  |  |  |  |  |  |  |  | $ | 59,905 |
Accretable yield, or income expected to be collected for the nine months ended September 30, is as follows:
|  | Nine Months Ended September 30, 2014 |
|  | Heartland |  |  | Summit |  |  | Total |
Balance at January 1 |  | $ | 3,185 |  |  | $ | - |  |  | $ | 3,185 |
Additions |  |  | - |  |  |  | 1,688 |  |  |  | 1,688 |
Accretion |  |  | (425 | ) |  |  | (222 | ) |  |  | (647 | )
Reclassification from nonaccreatable difference |  |  | - |  |  |  | 0 |  |  |  | 0 |
Disposals |  |  | (210 | ) |  |  | (46 | ) |  |  | (256 | )
Balance at September 30 |  | $ | 2,550 |  |  | $ | 1,420 |  |  | $ | 3,970 |
|  | Nine Months Ended September 30, 2013 |
|  | Heartland |  |  | Summit |  |  | Total |
Balance at January 1 |  | $ | 6,111 |  |  | $ | — |  |  | $ | 6,111 |
Additions |  |  | — |  |  |  | — |  |  |  | — |
Accretion |  |  | (1,016 | ) |  |  | — |  |  |  | (1,016 | )
Reclassification from nonaccreatable difference |  |  | — |  |  |  | — |  |  |  | — |
Disposals |  |  | (1,629 | ) |  |  | — |  |  |  | (1,629 | )
Balance at September 30 |  | $ | 3,466 |  |  | $ | — |  |  | $ | 3,466 |
During the three and nine months ended September 30, 2014, the Company increased the allowance for loan losses by a charge to the income statement of $0 and $253,000, respectively and for the three and nine months ended September 30, 2013, $100,000 and $1.5 million, respectively. $134,000 of allowances for loan losses were reversed for the three and nine months ended September 30, 2014 and $0 of allowance for loan losses were reversed for the three and nine months ended September 30, 2013.

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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=35738203&loc=d3e5212-111524 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15029-111544 + Details
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