Loans | 90 days and Accruing Dollars in thousands 30-59 days 60-89 days > 90 days Total Current Commercial $ 254 $ 51 $ 483 $ 788 $ 193,527 $ — Commercial real estate Owner-occupied — — 612 612 265,750 — Non-owner occupied 156 255 1,756 2,167 562,659 — Construction and development Land and land development 190 4 3,174 3,368 65,465 — Construction — — — — 24,731 — Residential mortgage Non-jumbo 4,120 2,235 3,753 10,108 326,869 — Jumbo — — 675 675 72,924 — Home equity 754 261 181 1,196 79,714 — Mortgage warehouse lines — — — — 39,140 — Consumer 502 121 125 748 31,712 36 Other 31 — — 31 12,868 — Total $ 6,007 $ 2,927 $ 10,759 $ 19,693 $ 1,675,359 $ 36 At December 31, 2017 Past Due > 90 days and Accruing Dollars in thousands 30-59 days 60-89 days > 90 days Total Current Commercial $ 488 $ 98 $ 229 $ 815 $ 189,166 $ — Commercial real estate Owner-occupied 626 162 507 1,295 248,907 — Non-owner occupied 369 150 2,065 2,584 482,318 237 Construction and development Land and land development 1,132 — 3,563 4,695 62,524 — Construction — — — — 33,412 — Residential mortgage Non-jumbo 4,220 2,379 4,451 11,050 343,051 — Jumbo — — — — 62,267 — Home equity 1,978 — 530 2,508 81,520 — Mortgage warehouse lines — — — — 30,757 — Consumer 417 196 167 780 35,422 37 Other — — — — 13,238 — Total $ 9,230 $ 2,985 $ 11,512 $ 23,727 $ 1,582,582 $ 274 Nonaccrual loans: The following table presents the nonaccrual loans included in the net balance of loans at December 31, 2018 and 2017 . Dollars in thousands 2018 2017 Commercial $ 935 $ 696 Commercial real estate Owner-occupied 1,028 726 Non-owner occupied 2,210 2,201 Construction and development Land & land development 3,198 3,569 Construction — — Residential mortgage Non-jumbo 6,532 6,944 Jumbo 675 — Home equity 299 712 Mortgage warehouse lines — — Consumer 112 201 Total $ 14,989 $ 15,049 Impaired loans: Impaired loans include the following: ▪ Loans which we risk-rate (consisting of loan relationships having aggregate balances in excess of $2.5 million , or loans exceeding $500,000 and exhibiting credit weakness) through our normal loan review procedures and which, based on current information and events, it is probable that we will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement. Risk-rated loans with insignificant delays or insignificant short falls in the amount of payments expected to be collected are not considered to be impaired. ▪ Loans that have been modified in a troubled debt restructuring. Both commercial and consumer loans are deemed impaired upon being contractually modified in a troubled debt restructuring. Troubled debt restructurings typically result from our loss mitigation activities and occur when we grant a concession to a borrower who is experiencing financial difficulty in order to minimize our economic loss and to avoid foreclosure or repossession of collateral. Once restructured, a loan is generally considered impaired until its maturity, regardless of whether the borrower performs under the modified terms. Although such a loan may be returned to accrual status if the criteria set forth in our accounting policy are met, the loan would continue to be evaluated for an asset-specific allowance for loan losses and we would continue to report the loan in the impaired loan table below. The following tables present loans individually evaluated for impairment at December 31, 2018 and 2017 . December 31, 2018 Dollars in thousands Recorded Investment Unpaid Principal Balance Related Allowance Average Impaired Balance Interest Income Recognized while impaired Without a related allowance Commercial $ 1,019 $ 1,253 $ — $ 321 $ 16 Commercial real estate Owner-occupied 8,600 8,605 — 7,730 318 Non-owner occupied 9,666 9,673 — 9,753 493 Construction and development Land & land development 4,767 4,767 — 4,947 102 Construction — — — — — Residential real estate Non-jumbo 3,279 3,284 — 3,401 180 Jumbo 4,132 4,130 — 3,517 166 Home equity 523 523 — 523 30 Mortgage warehouse lines — — — — — Consumer 9 10 — 13 1 Total without a related allowance $ 31,995 $ 32,245 $ — $ 30,205 $ 1,306 With a related allowance Commercial $ 3,343 $ 3,342 $ 682 $ 705 $ 39 Commercial real estate Owner-occupied 2,969 2,969 462 2,397 117 Non-owner occupied 189 191 9 226 16 Construction and development Land & land development 1,057 1,057 298 1,073 56 Construction — — — — — Residential real estate Non-jumbo 2,982 2,981 585 2,539 98 Jumbo 821 822 106 827 48 Home equity — — — — — Mortgage warehouse lines — — — — — Consumer — — — — — Total with a related allowance $ 11,361 $ 11,362 $ 2,142 $ 7,767 $ 374 Total Commercial $ 31,610 $ 31,857 $ 1,451 $ 27,152 $ 1,157 Residential real estate 11,737 11,740 691 10,807 522 Consumer 9 10 — 13 1 Total $ 43,356 $ 43,607 $ 2,142 $ 37,972 $ 1,680 The above table does not include PCI loans. December 31, 2017 Dollars in thousands Recorded Investment Unpaid Principal Balance Related Allowance Average Impaired Balance Interest Income Recognized while impaired Without a related allowance Commercial $ 243 $ 243 $ — $ 259 $ 13 Commercial real estate Owner-occupied 7,109 7,111 — 5,149 265 Non-owner occupied 9,105 9,106 — 9,736 684 Construction and development Land & land development 5,018 5,018 — 4,743 329 Construction — — — — — Residential real estate Non-jumbo 4,190 4,199 — 4,214 240 Jumbo 3,555 3,554 — 3,592 228 Home equity 523 523 — 523 35 Mortgage warehouse lines — — — — — Consumer 17 17 — 28 3 Total without a related allowance $ 29,760 $ 29,771 $ — $ 28,244 $ 1,797 With a related allowance Commercial $ 252 $ 252 $ 252 $ 262 $ — Commercial real estate Owner-occupied 2,436 2,436 125 2,451 161 Non-owner occupied 1,338 1,344 517 676 43 Construction and development Land & land development 1,464 1,464 524 1,477 74 Construction — — — — — Residential real estate Non-jumbo 1,717 1,718 158 1,691 100 Jumbo 838 839 14 845 57 Home equity — — — — — Mortgage warehouse lines — — — — — Consumer — — — — — Total with a related allowance $ 8,045 $ 8,053 $ 1,590 $ 7,402 $ 435 Total Commercial $ 26,965 $ 26,974 $ 1,418 $ 24,753 $ 1,569 Residential real estate 10,823 10,833 172 10,865 660 Consumer 17 17 — 28 3 Total $ 37,805 $ 37,824 $ 1,590 $ 35,646 $ 2,232 The above table does not include PCI loans. The average recorded investment of impaired loans during 2016 was $37.9 million and $1.3 million interest income was recognized on those loans while impaired. A modification of a loan is considered a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification constitutes a concession that we would not otherwise consider. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of both. A loan continues to be classified as a TDR for the life of the loan. Included in impaired loans are TDRs of $27 million , of which $26.6 million were current with respect to restructured contractual payments at December 31, 2018 and $28.4 million , all of which were current with respect to restructured contractual payments at December 31, 2017 . There were no commitments to lend additional funds under these restructurings at either balance sheet date. The following table presents by class the TDRs that were restructured during 2018 and 2017 . Generally, the modifications were extensions of term, modifying the payment terms from principal and interest to interest only for an extended period, or reduction in interest rate. All TDRs are evaluated individually for allowance for loan loss purposes. 2018 2017 Dollars in thousands Number of Modifications Pre-modification Recorded Investment Post-modification Recorded Investment Number of Modifications Pre-modification Recorded Investment Post-modification Recorded Investment Commercial 2 $ 157 $ 157 — $ — $ — Commercial real estate Owner-occupied — — — 1 2,302 2,302 Non-owner occupied 2 183 183 2 489 489 Construction and development Land & land development — — — 1 438 438 Residential real estate Non-jumbo 8 899 899 4 642 642 Total 12 $ 1,239 $ 1,239 8 $ 3,871 $ 3,871 The following table presents defaults during the stated period of TDRs that were restructured during the past twelve months. For purposes of these tables, a default is considered as either the loan was past due 30 days or more at any time during the period, or the loan was fully or partially charged off during the period. 2018 2017 Dollars in thousands Number of Defaults Recorded Investment at Default Date Number of Defaults Recorded Investment at Default Date Commercial 2 $ 157 — $ — Commercial real estate Owner-occupied — — 1 2,291 Construction and development Land & land development — — 1 437 Residential real estate Non-jumbo 7 847 3 767 Total 9 $ 1,004 5 $ 3,495 The following table details the activity regarding TDRs by loan type during 2018 and the related allowance on TDRs. 2018 Construction & Land Development Commercial Real Estate Residential Real Estate Dollars in thousands Land & Land Develop- ment Construc- tion Commer- cial Owner Occupied Non- Owner Occupied Non- jumbo Jumbo Home Equity Mortgage Warehouse Lines Con- sumer Other Total Troubled debt restructurings Balance January 1, 2018 $ 3,043 $ — $ 412 $ 9,545 $ 5,234 $ 5,195 $ 4,393 $ 523 $ — $ 18 $ — $ 28,363 Additions — — 157 — 183 899 — — — — — 1,239 Charge-offs — — — — — (55 ) — — — — — (55 ) Net (paydowns) advances (389 ) — (296 ) (180 ) (13 ) (1,549 ) (115 ) — — (8 ) — (2,550 ) Transfer into foreclosed properties — — — — — — — — — — — — Refinance out of TDR status — — — — — — — — — — — — Balance, December 31, 2018 $ 2,654 $ — $ 273 $ 9,365 $ 5,404 $ 4,490 $ 4,278 $ 523 $ — $ 10 $ — $ 26,997 Allowance related to troubled debt restructurings $ 298 $ — $ 9 $ 270 $ 8 $ 189 $ 105 $ — $ — $ — $ — $ 879 We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. We internally grade all commercial loans at the time of loan origination. In addition, we perform an annual loan review on all non-homogenous commercial loan relationships with an aggregate exposure of $2.5 million , at which time these loans are re-graded. We use the following definitions for our risk grades: Pass: Loans graded as Pass are loans to borrowers of acceptable credit quality and risk. They are higher quality loans that do not fit any of the other categories described below. OLEM (Special Mention): Commercial loans categorized as OLEM are potentially weak. The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the asset may weaken or inadequately protect our position in the future. Substandard: Commercial loans categorized as Substandard are inadequately protected by the borrower’s ability to repay, equity and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the identified weaknesses are not mitigated. Doubtful: Commercial loans categorized as Doubtful have all the weaknesses inherent in those loans classified as Substandard, with the added elements that the full collection of the loan is improbable and the possibility of loss is high. Loss: Loans classified as loss are considered to be non-collectible and of such little value that their continuance as a bankable asset is not warranted. This does not mean that the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. The following table presents the recorded investment in construction and development, commercial and commercial real estate loans which are generally evaluated based upon our internal risk ratings defined above. Loan Risk Profile by Internal Risk Rating Construction and Development Commercial Real Estate Land and Land Development Construction Commercial Owner Occupied Non-Owner Occupied Mortgage Warehouse Lines Dollars in thousands 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Pass $ 63,743 $ 60,850 $ 24,589 $ 33,412 $ 182,651 $ 186,941 $ 259,360 $ 242,702 $ 556,609 $ 474,522 $ 39,140 $ 30,757 OLEM (Special Mention) 472 1,397 142 — 6,748 2,267 1,864 3,534 1,554 2,221 — — Substandard 4,618 4,972 — — 4,916 773 5,138 3,966 6,663 8,159 — — Doubtful — — — — — — — — — — — — Loss — — — — — — — — — — — — Total $ 68,833 $ 67,219 $ 24,731 $ 33,412 $ 194,315 $ 189,981 $ 266,362 $ 250,202 $ 564,826 $ 484,902 $ 39,140 $ 30,757 The following table presents the recorded investment in consumer, residential real estate and home equity loans, which are generally evaluated based on the aging status of the loans, which was previously presented, and payment activity. Performing Nonperforming Dollars in thousands 2018 2017 2018 2017 Residential real estate Non-jumbo $ 330,445 $ 347,183 $ 6,532 $ 6,918 Jumbo 72,924 62,267 675 — Home Equity 80,611 83,316 299 712 Consumer 32,312 35,932 148 270 Other 12,899 13,238 — — Total $ 529,191 $ 541,936 $ 7,654 $ 7,900 Industry concentrations: At December 31, 2018 and 2017 , we had no concentrations of loans to any single industry in excess of 10% of total loans. Loans to related parties : We have had, and may be expected to have in the future, banking transactions in the ordinary course of business with our directors, principal officers, their immediate families and affiliated companies in which they are principal shareholders (commonly referred to as related parties). These transactions have been, in our opinion, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others. The following presents the activity with respect to related party loans aggregating $60,000 or more to any one related party (other changes represent additions to and changes in director and executive officer status): Dollars in thousands 2018 2017 Balance, beginning $ 45,698 $ 45,164 Additions 6,750 13,497 Amounts collected (6,992 ) (11,802 ) Other changes, net (1,557 ) (1,161 ) Balance, ending $ 43,899 $ 45,698" id="sjs-B4">LOANS Loans are generally stated at the amount of unpaid principal, reduced by unearned discount and allowance for loan losses. Interest on loans is accrued daily on the outstanding balances. Loan origination fees and certain direct loan origination costs are deferred and amortized as adjustments of the related loan yield over its contractual life. We categorize residential real estate loans in excess of $ 600,000 as jumbo loans. Generally, loans are placed on nonaccrual status when principal or interest is greater than 90 days past due based upon the loan's contractual terms. Interest is accrued daily on impaired loans unless the loan is placed on nonaccrual status. Impaired loans are placed on nonaccrual status when the payments of principal and interest are in default for a period of 90 days, unless the loan is both well-secured and in the process of collection. Interest on nonaccrual loans is recognized primarily using the cost-recovery method. Loans may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loans. Commercial-related loans or portions thereof are charged off to the allowance for loan losses when the loss has been confirmed. This determination is made on a case by case basis considering many factors, including the prioritization of our claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity. We deem a loss confirmed when a loan or a portion of a loan is classified “loss” in accordance with bank regulatory classification guidelines, which state, “Assets classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted”. Consumer-related loans are generally charged to the allowance for loan losses upon reaching specified stages of delinquency, in accordance with the Federal Financial Institutions Examination Council policy. For example, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier. Residential mortgage loans are generally charged off to net realizable value no later than when the account becomes 180 days past due. Other consumer loans, if collateralized, are generally charged off to net realizable value at 120 days past due. Loans are summarized as follows: Dollars in thousands 2018 2017 Commercial $ 194,315 $ 189,981 Commercial real estate Owner-occupied 266,362 250,202 Non-owner occupied 564,826 484,902 Construction and development Land and land development 68,833 67,219 Construction 24,731 33,412 Residential real estate Non-jumbo 336,977 354,101 Jumbo 73,599 62,267 Home equity 80,910 84,028 Mortgage warehouse lines 39,140 30,757 Consumer 32,460 36,202 Other 12,899 13,238 Total loans, net of unearned fees 1,695,052 1,606,309 Less allowance for loan losses 13,047 12,565 Loans, net $ 1,682,005 $ 1,593,744 The outstanding balance and the recorded investment of acquired loans included in the consolidated balance sheet at December 31, 2018 and 2017 are as follows: Acquired Loans 2018 2017 Dollars in thousands Purchased Credit Impaired Purchased Performing Total Purchased Credit Impaired Purchased Performing Total Outstanding balance $ 4,275 $ 138,167 $ 142,442 $ 5,923 $ 220,131 $ 226,054 Recorded investment Commercial $ — $ 3,934 $ 3,934 $ 9 $ 25,125 $ 25,134 Commercial real estate Owner-occupied — 16,133 16,133 689 21,893 22,582 Non-owner occupied 1,162 23,431 24,593 1,837 33,293 35,130 Construction and development Land and land development — 5,161 5,161 — 7,512 7,512 Construction — — — — 2,760 2,760 Residential real estate Non-jumbo 1,374 77,894 79,268 1,485 109,570 111,055 Jumbo 975 2,577 3,552 999 3,400 4,399 Home equity — 2,805 2,805 — 3,311 3,311 Consumer — 4,630 4,630 — 11,229 11,229 Other — 122 122 — 211 211 Total recorded investment $ 3,511 $ 136,687 $ 140,198 $ 5,019 $ 218,304 $ 223,323 The following table presents a summary of the change in the accretable yield of the purchased credit impaired ("PCI") loan portfolio during 2018 and 2017: Dollars in thousands 2018 2017 Accretable yield, January 1 $ 745 $ 290 Additions for First Century Bankshares, Inc. acquisition — 661 Accretion (115 ) (162 ) Reclassification of nonaccretable difference due to improvement in expected cash flows — (31 ) Other changes, net 2 (13 ) Accretable yield, December 31 $ 632 $ 745 The following presents loan maturities at December 31, 2018 : Within After 1 but After Dollars in thousands 1 Year within 5 Years 5 Years Commercial $ 96,076 $ 63,124 $ 35,115 Commercial real estate 37,675 113,790 679,723 Construction and development 29,718 23,207 40,639 Residential real estate 22,176 50,982 418,328 Mortgage warehouse lines 39,140 — — Consumer 5,181 23,172 4,107 Other 1,229 2,302 9,368 $ 231,195 $ 276,577 $ 1,187,280 Loans due after one year with: Variable rates $ 546,499 Fixed rates 917,358 $ 1,463,857 The following table presents the contractual aging of the recorded investment in past due loans by class as of December 31, 2018 and 2017 . At December 31, 2018 Past Due > 90 days and Accruing Dollars in thousands 30-59 days 60-89 days > 90 days Total Current Commercial $ 254 $ 51 $ 483 $ 788 $ 193,527 $ — Commercial real estate Owner-occupied — — 612 612 265,750 — Non-owner occupied 156 255 1,756 2,167 562,659 — Construction and development Land and land development 190 4 3,174 3,368 65,465 — Construction — — — — 24,731 — Residential mortgage Non-jumbo 4,120 2,235 3,753 10,108 326,869 — Jumbo — — 675 675 72,924 — Home equity 754 261 181 1,196 79,714 — Mortgage warehouse lines — — — — 39,140 — Consumer 502 121 125 748 31,712 36 Other 31 — — 31 12,868 — Total $ 6,007 $ 2,927 $ 10,759 $ 19,693 $ 1,675,359 $ 36 At December 31, 2017 Past Due > 90 days and Accruing Dollars in thousands 30-59 days 60-89 days > 90 days Total Current Commercial $ 488 $ 98 $ 229 $ 815 $ 189,166 $ — Commercial real estate Owner-occupied 626 162 507 1,295 248,907 — Non-owner occupied 369 150 2,065 2,584 482,318 237 Construction and development Land and land development 1,132 — 3,563 4,695 62,524 — Construction — — — — 33,412 — Residential mortgage Non-jumbo 4,220 2,379 4,451 11,050 343,051 — Jumbo — — — — 62,267 — Home equity 1,978 — 530 2,508 81,520 — Mortgage warehouse lines — — — — 30,757 — Consumer 417 196 167 780 35,422 37 Other — — — — 13,238 — Total $ 9,230 $ 2,985 $ 11,512 $ 23,727 $ 1,582,582 $ 274 Nonaccrual loans: The following table presents the nonaccrual loans included in the net balance of loans at December 31, 2018 and 2017 . Dollars in thousands 2018 2017 Commercial $ 935 $ 696 Commercial real estate Owner-occupied 1,028 726 Non-owner occupied 2,210 2,201 Construction and development Land & land development 3,198 3,569 Construction — — Residential mortgage Non-jumbo 6,532 6,944 Jumbo 675 — Home equity 299 712 Mortgage warehouse lines — — Consumer 112 201 Total $ 14,989 $ 15,049 Impaired loans: Impaired loans include the following: ▪ Loans which we risk-rate (consisting of loan relationships having aggregate balances in excess of $2.5 million , or loans exceeding $500,000 and exhibiting credit weakness) through our normal loan review procedures and which, based on current information and events, it is probable that we will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement. Risk-rated loans with insignificant delays or insignificant short falls in the amount of payments expected to be collected are not considered to be impaired. ▪ Loans that have been modified in a troubled debt restructuring. Both commercial and consumer loans are deemed impaired upon being contractually modified in a troubled debt restructuring. Troubled debt restructurings typically result from our loss mitigation activities and occur when we grant a concession to a borrower who is experiencing financial difficulty in order to minimize our economic loss and to avoid foreclosure or repossession of collateral. Once restructured, a loan is generally considered impaired until its maturity, regardless of whether the borrower performs under the modified terms. Although such a loan may be returned to accrual status if the criteria set forth in our accounting policy are met, the loan would continue to be evaluated for an asset-specific allowance for loan losses and we would continue to report the loan in the impaired loan table below. The following tables present loans individually evaluated for impairment at December 31, 2018 and 2017 . December 31, 2018 Dollars in thousands Recorded Investment Unpaid Principal Balance Related Allowance Average Impaired Balance Interest Income Recognized while impaired Without a related allowance Commercial $ 1,019 $ 1,253 $ — $ 321 $ 16 Commercial real estate Owner-occupied 8,600 8,605 — 7,730 318 Non-owner occupied 9,666 9,673 — 9,753 493 Construction and development Land & land development 4,767 4,767 — 4,947 102 Construction — — — — — Residential real estate Non-jumbo 3,279 3,284 — 3,401 180 Jumbo 4,132 4,130 — 3,517 166 Home equity 523 523 — 523 30 Mortgage warehouse lines — — — — — Consumer 9 10 — 13 1 Total without a related allowance $ 31,995 $ 32,245 $ — $ 30,205 $ 1,306 With a related allowance Commercial $ 3,343 $ 3,342 $ 682 $ 705 $ 39 Commercial real estate Owner-occupied 2,969 2,969 462 2,397 117 Non-owner occupied 189 191 9 226 16 Construction and development Land & land development 1,057 1,057 298 1,073 56 Construction — — — — — Residential real estate Non-jumbo 2,982 2,981 585 2,539 98 Jumbo 821 822 106 827 48 Home equity — — — — — Mortgage warehouse lines — — — — — Consumer — — — — — Total with a related allowance $ 11,361 $ 11,362 $ 2,142 $ 7,767 $ 374 Total Commercial $ 31,610 $ 31,857 $ 1,451 $ 27,152 $ 1,157 Residential real estate 11,737 11,740 691 10,807 522 Consumer 9 10 — 13 1 Total $ 43,356 $ 43,607 $ 2,142 $ 37,972 $ 1,680 The above table does not include PCI loans. December 31, 2017 Dollars in thousands Recorded Investment Unpaid Principal Balance Related Allowance Average Impaired Balance Interest Income Recognized while impaired Without a related allowance Commercial $ 243 $ 243 $ — $ 259 $ 13 Commercial real estate Owner-occupied 7,109 7,111 — 5,149 265 Non-owner occupied 9,105 9,106 — 9,736 684 Construction and development Land & land development 5,018 5,018 — 4,743 329 Construction — — — — — Residential real estate Non-jumbo 4,190 4,199 — 4,214 240 Jumbo 3,555 3,554 — 3,592 228 Home equity 523 523 — 523 35 Mortgage warehouse lines — — — — — Consumer 17 17 — 28 3 Total without a related allowance $ 29,760 $ 29,771 $ — $ 28,244 $ 1,797 With a related allowance Commercial $ 252 $ 252 $ 252 $ 262 $ — Commercial real estate Owner-occupied 2,436 2,436 125 2,451 161 Non-owner occupied 1,338 1,344 517 676 43 Construction and development Land & land development 1,464 1,464 524 1,477 74 Construction — — — — — Residential real estate Non-jumbo 1,717 1,718 158 1,691 100 Jumbo 838 839 14 845 57 Home equity — — — — — Mortgage warehouse lines — — — — — Consumer — — — — — Total with a related allowance $ 8,045 $ 8,053 $ 1,590 $ 7,402 $ 435 Total Commercial $ 26,965 $ 26,974 $ 1,418 $ 24,753 $ 1,569 Residential real estate 10,823 10,833 172 10,865 660 Consumer 17 17 — 28 3 Total $ 37,805 $ 37,824 $ 1,590 $ 35,646 $ 2,232 The above table does not include PCI loans. The average recorded investment of impaired loans during 2016 was $37.9 million and $1.3 million interest income was recognized on those loans while impaired. A modification of a loan is considered a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification constitutes a concession that we would not otherwise consider. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of both. A loan continues to be classified as a TDR for the life of the loan. Included in impaired loans are TDRs of $27 million , of which $26.6 million were current with respect to restructured contractual payments at December 31, 2018 and $28.4 million , all of which were current with respect to restructured contractual payments at December 31, 2017 . There were no commitments to lend additional funds under these restructurings at either balance sheet date. The following table presents by class the TDRs that were restructured during 2018 and 2017 . Generally, the modifications were extensions of term, modifying the payment terms from principal and interest to interest only for an extended period, or reduction in interest rate. All TDRs are evaluated individually for allowance for loan loss purposes. 2018 2017 Dollars in thousands Number of Modifications Pre-modification Recorded Investment Post-modification Recorded Investment Number of Modifications Pre-modification Recorded Investment Post-modification Recorded Investment Commercial 2 $ 157 $ 157 — $ — $ — Commercial real estate Owner-occupied — — — 1 2,302 2,302 Non-owner occupied 2 183 183 2 489 489 Construction and development Land & land development — — — 1 438 438 Residential real estate Non-jumbo 8 899 899 4 642 642 Total 12 $ 1,239 $ 1,239 8 $ 3,871 $ 3,871 The following table presents defaults during the stated period of TDRs that were restructured during the past twelve months. For purposes of these tables, a default is considered as either the loan was past due 30 days or more at any time during the period, or the loan was fully or partially charged off during the period. 2018 2017 Dollars in thousands Number of Defaults Recorded Investment at Default Date Number of Defaults Recorded Investment at Default Date Commercial 2 $ 157 — $ — Commercial real estate Owner-occupied — — 1 2,291 Construction and development Land & land development — — 1 437 Residential real estate Non-jumbo 7 847 3 767 Total 9 $ 1,004 5 $ 3,495 The following table details the activity regarding TDRs by loan type during 2018 and the related allowance on TDRs. 2018 Construction & Land Development Commercial Real Estate Residential Real Estate Dollars in thousands Land & Land Develop- ment Construc- tion Commer- cial Owner Occupied Non- Owner Occupied Non- jumbo Jumbo Home Equity Mortgage Warehouse Lines Con- sumer Other Total Troubled debt restructurings Balance January 1, 2018 $ 3,043 $ — $ 412 $ 9,545 $ 5,234 $ 5,195 $ 4,393 $ 523 $ — $ 18 $ — $ 28,363 Additions — — 157 — 183 899 — — — — — 1,239 Charge-offs — — — — — (55 ) — — — — — (55 ) Net (paydowns) advances (389 ) — (296 ) (180 ) (13 ) (1,549 ) (115 ) — — (8 ) — (2,550 ) Transfer into foreclosed properties — — — — — — — — — — — — Refinance out of TDR status — — — — — — — — — — — — Balance, December 31, 2018 $ 2,654 $ — $ 273 $ 9,365 $ 5,404 $ 4,490 $ 4,278 $ 523 $ — $ 10 $ — $ 26,997 Allowance related to troubled debt restructurings $ 298 $ — $ 9 $ 270 $ 8 $ 189 $ 105 $ — $ — $ — $ — $ 879 We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. We internally grade all commercial loans at the time of loan origination. In addition, we perform an annual loan review on all non-homogenous commercial loan relationships with an aggregate exposure of $2.5 million , at which time these loans are re-graded. We use the following definitions for our risk grades: Pass: Loans graded as Pass are loans to borrowers of acceptable credit quality and risk. They are higher quality loans that do not fit any of the other categories described below. OLEM (Special Mention): Commercial loans categorized as OLEM are potentially weak. The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the asset may weaken or inadequately protect our position in the future. Substandard: Commercial loans categorized as Substandard are inadequately protected by the borrower’s ability to repay, equity and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the identified weaknesses are not mitigated. Doubtful: Commercial loans categorized as Doubtful have all the weaknesses inherent in those loans classified as Substandard, with the added elements that the full collection of the loan is improbable and the possibility of loss is high. Loss: Loans classified as loss are considered to be non-collectible and of such little value that their continuance as a bankable asset is not warranted. This does not mean that the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. The following table presents the recorded investment in construction and development, commercial and commercial real estate loans which are generally evaluated based upon our internal risk ratings defined above. Loan Risk Profile by Internal Risk Rating Construction and Development Commercial Real Estate Land and Land Development Construction Commercial Owner Occupied Non-Owner Occupied Mortgage Warehouse Lines Dollars in thousands 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Pass $ 63,743 $ 60,850 $ 24,589 $ 33,412 $ 182,651 $ 186,941 $ 259,360 $ 242,702 $ 556,609 $ 474,522 $ 39,140 $ 30,757 OLEM (Special Mention) 472 1,397 142 — 6,748 2,267 1,864 3,534 1,554 2,221 — — Substandard 4,618 4,972 — — 4,916 773 5,138 3,966 6,663 8,159 — — Doubtful — — — — — — — — — — — — Loss — — — — — — — — — — — — Total $ 68,833 $ 67,219 $ 24,731 $ 33,412 $ 194,315 $ 189,981 $ 266,362 $ 250,202 $ 564,826 $ 484,902 $ 39,140 $ 30,757 The following table presents the recorded investment in consumer, residential real estate and home equity loans, which are generally evaluated based on the aging status of the loans, which was previously presented, and payment activity. Performing Nonperforming Dollars in thousands 2018 2017 2018 2017 Residential real estate Non-jumbo $ 330,445 $ 347,183 $ 6,532 $ 6,918 Jumbo 72,924 62,267 675 — Home Equity 80,611 83,316 299 712 Consumer 32,312 35,932 148 270 Other 12,899 13,238 — — Total $ 529,191 $ 541,936 $ 7,654 $ 7,900 Industry concentrations: At December 31, 2018 and 2017 , we had no concentrations of loans to any single industry in excess of 10% of total loans. Loans to related parties : We have had, and may be expected to have in the future, banking transactions in the ordinary course of business with our directors, principal officers, their immediate families and affiliated companies in which they are principal shareholders (commonly referred to as related parties). These transactions have been, in our opinion, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others. The following presents the activity with respect to related party loans aggregating $60,000 or more to any one related party (other changes represent additions to and changes in director and executive officer status): Dollars in thousands 2018 2017 Balance, beginning $ 45,698 $ 45,164 Additions 6,750 13,497 Amounts collected (6,992 ) (11,802 ) Other changes, net (1,557 ) (1,161 ) Balance, ending $ 43,899 $ 45,698 |