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 purchased credit impaired loans is included in the balance sheet amounts of loans receivable at March 31, 2017 and June 30, 2016. The amount of these loans is shown below:

(dollars in thousands)	March 31, 2017	June 30, 2016
Residential real estate	$3,147	$3,254
Construction real estate	1,583	1,777
Commercial real estate	10,800	11,523
Consumer loans	109	-
Commercial loans	932	1,103
Outstanding balance	$16,571	$17,657
Carrying amount, net of fair value adjustment of $2,130 and $2,347 at March 31, 2017 and June 30, 2016, respectively	$14,441	$15,310

	For the three-month period ended
(dollars in thousands)	March 31, 2017	March 31, 2016
Balance at beginning of period	$626	$666
Additions	-	-
Accretion	(56)	(59)
Reclassification from nonaccretable difference	61	68
Disposals	-	-
Balance at end of period	$631	$675

	For the nine-month period ended
(dollars in thousands)	March 31, 2017	March 31, 2016
Balance at beginning of period	$656	$548
Additions	-	-
Accretion	(217)	(363)
Reclassification from nonaccretable difference	192	490
Disposals	-	-
Balance at end of period	$631	$675

During the three- and nine-month periods ended March 31, 2017 and 2016, the Company did not increase or reverse the allowance for loan losses related to these purchased credit impaired loans.