Note 5: Loans

Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, charge-offs, and acquisition accounting adjustments (discounts) on acquired loans. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield over the contractual term of the loan, adjusted for early pay-offs, where applicable.

All interest accrued but not collected for loans that are placed on non-accrual or charged off are reversed against interest income. Any subsequent interest received on these loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual. Generally, a loan is returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or it becomes well secured and in the process of collection.

The following is a summary of the balances of loans as of the dates stated.

	June 30, 2018			December 31, 2017
Mortgage loans on real estate:
Construction, Land and Land Development	$	81,059		$	66,042
Farmland		770			923
Commercial Mortgages (Non-Owner Occupied)		156,891			146,757
Commercial Mortgages (Owner Occupied)		80,258			80,052
Residential First Mortgages		285,477			269,365
Residential Revolving and Junior Mortgages		39,747			46,498
Commercial and Industrial		124,563			114,093
Consumer		32,767			42,566
Total loans		801,532			766,296
Net unamortized deferred loan costs		24			200
Allowance for loan losses		(7,113	)		(7,770	)
Loans, net	$	794,443		$	758,726

The recorded investment for past due and nonaccruing loans is shown in the following tables as of the dates stated. A loan past due by 90 days or more is generally placed on nonaccrual unless it is both well secured and in the process of collection. Loans presented below as 90 days or more past due and still accruing include PCI loans.

June 30, 2018	30-89 Days Past Due		90 Days or More Past Due and Still Accruing		Nonaccruals		Total Past Due and Nonaccruals		Current		Total Loans
Mortgage Loans on Real Estate:
Construction, Land and Land Development	$	250	$	—	$	538	$	788	$	80,271	$	81,059
Farmland		—		—		—		—		770		770
Commercial Mortgages (Non-Owner Occupied)		560		—		448		1,008		155,883		156,891
Commercial Mortgages (Owner Occupied)		121		—		939		1,060		79,198		80,258
Residential First Mortgages		2,323		65		1,055		3,443		282,034		285,477
Residential Revolving and Junior Mortgages		72		19		370		461		39,286		39,747
Commercial and Industrial		202		—		—		202		124,361		124,563
Consumer		351		3		124		478		32,289		32,767
Total loans	$	3,879	$	87	$	3,474	$	7,440	$	794,092	$	801,532

December 31, 2017	30-89 Days Past Due		90 Days or More Past Due and Still Accruing		Nonaccruals		Total Past Due and Nonaccruals		Current		Total Loans
Mortgage Loans on Real Estate:
Construction, Land and Land Development	$	261	$	—	$	1,237	$	1,498	$	64,544	$	66,042
Farmland		—		48		—		48		875		923
Commercial Mortgages (Non-Owner Occupied)		449		—		—		449		146,308		146,757
Commercial Mortgages (Owner Occupied)		573		—		1,752		2,325		77,727		80,052
Residential First Mortgages		2,670		141		1,942		4,753		264,612		269,365
Residential Revolving and Junior Mortgages		449		20		1,338		1,807		44,691		46,498
Commercial and Industrial		331		—		92		423		113,670		114,093
Consumer		288		4		135		427		42,139		42,566
Total loans	$	5,021	$	213	$	6,496	$	11,730	$	754,566	$	766,296

The following tables include an aging analysis, based upon contractual terms, of the recorded investment of PCI loans as of the dates stated, included in the tables above.

June 30, 2018	30-89 Days Past Due		90 Days or More Past Due and Still Accruing		Nonaccruals		Total Past Due and Nonaccruals		Current		Total PCI Loans
Mortgage Loans on Real Estate:
Construction, Land and Land Development	$	—	$	—	$	—	$	—	$	1,390	$	1,390
Commercial Mortgages (Non-Owner Occupied)		—		—		—		—		156		156
Commercial Mortgages (Owner Occupied)		121		—		—		121		182		303
Residential First Mortgages		23		65		—		88		3,599		3,687
Residential Revolving and Junior Mortgages		—		19		—		19		23		42
Consumer		—		3		—		3		57		60
Total purchased credit-impaired loans	$	144	$	87	$	—	$	231	$	5,407	$	5,638

December 31, 2017	30-89 Days Past Due		90 Days or More Past Due and Still Accruing		Nonaccruals		Total Past Due and Nonaccruals		Current		Total PCI Loans
Mortgage Loans on Real Estate:
Construction, Land and Land Development	$	—	$	—	$	—	$	—	$	1,405	$	1,405
Commercial Mortgages (Non-Owner Occupied)		—		—		—		—		171		171
Commercial Mortgages (Owner Occupied)		161		—		—		161		160		321
Residential First Mortgages		349		141		—		490		3,320		3,810
Residential Revolving and Junior Mortgages		—		20		—		20		29		49
Consumer		—		4		—		4		65		69
Total purchased credit-impaired loans	$	510	$	165	$	—	$	675	$	5,150	$	5,825