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 nonaccrual or charged off are reversed against interest income at the time the loan is classified as nonaccrual. Any subsequent interest received on these loans is recognized as interest income on the cash basis until the loan qualifies to return to accrual status. 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.

	September 30, 2018			December 31, 2017
Mortgage loans on real estate:
Construction, land and land development	$	94,750		$	66,042
Farmland		748			923
Commercial mortgages (non-owner occupied)		171,996			146,757
Commercial mortgages (owner occupied)		82,391			80,052
Residential first mortgages		293,266			269,365
Residential revolving and junior mortgages		39,170			46,498
Commercial and industrial		144,118			114,093
Consumer		27,920			42,566
Total loans		854,359			766,296
Net unamortized deferred loan (fees) costs		(79	)		200
Allowance for loan losses		(7,287	)		(7,770	)
Loans receivable, net	$	846,993		$	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 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 purchased credit-impaired (“PCI”) loans.

September 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	$	112	$	—	$	499	$	611	$	94,139	$	94,750
Farmland		—		—		—		—		748		748
Commercial mortgages (non-owner occupied)		—		—		1,003		1,003		170,993		171,996
Commercial mortgages (owner occupied)		539		28		1,120		1,687		80,704		82,391
Residential first mortgages		1,342		78		1,092		2,512		290,754		293,266
Residential revolving and junior mortgages		119		20		385		524		38,646		39,170
Commercial and industrial		98		—		48		146		143,972		144,118
Consumer		357		3		57		417		27,503		27,920
Total loans	$	2,567	$	129	$	4,204	$	6,900	$	847,459	$	854,359

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.

September 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	$	—	$	—	$	—	$	—	$	1,385	$	1,385
Commercial mortgages (non-owner occupied)		—		—		—		—		149		149
Commercial mortgages (owner occupied)		32		28		—		60		238		298
Residential first mortgages		—		78		—		78		3,448		3,526
Residential revolving and junior mortgages		—		20		—		20		21		41
Commercial and industrial		—		—		—		—		—		—
Consumer		—		3		—		3		54		57
Total purchased credit-impaired loans	$	32	$	129	$	—	$	161	$	5,295	$	5,456

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
Commercial and industrial		—		—		—		—		—		—
Consumer		—		4		—		4		65		69
Total purchased credit-impaired loans	$	510	$	165	$	—	$	675	$	5,150	$	5,825