Loans acquired with evidence of credit deterioration since origination are accounted for as PCI loans. Subsequent to acquisition of these loans, estimates of cash flows expected to be collected are updated each reporting period based on assumptions regarding default rates, loss severities, and other factors that reflect current market conditions. If the Company has probable decreases in cash flows expected to be collected (other than due to decreases in interest rates), the provision for loan losses is charged, resulting in an increase to the allowance for loan losses. If there are probable and significant increases in cash flows expected to be collected, the Company will first reverse any previously established allowance for loan losses and then increase interest income as a prospective yield adjustment over the remaining life of the loans.Results of the Company's first quarter cash flow re-estimation are summarized as follows.
|(Dollars in thousands)||Impairment||Improvement||Yield||Yield|
|Loan pools with cash flow improvement||$ (181)||$ 688||8.39%||7.53%|
|Loan pools with impairment||1,386||—||6.52%||6.52%|
|Total||$ 1,205||$ 688||7.07%||6.82%|