b'The following table sets forth certain information with respect to our loan portfolio delinquencies and nonaccrual loans by loan class and amount as of December 31, 2018 and 2017:2018 2017RecordedRecorded Investment > Investment >90 Days and 90 Days andAccruing Nonaccrual Accruing NonaccrualSecured by Real Estate:1-4 Family 1st Lien $ -$1 ,024,869 $- $2,008,6461-4 Family Jr.Lien - 1 1,688Secured by construction, land and land development - - Secured by nonfarmnonresidential -1 4,134Commercial and industrial loans - 70,423 -71,923Consumer loans - 57,547 - 5 8,090Total $- $1 ,152,839 $- $ 2 ,164,481 The Bank accounts for impaired loans under generally accepted accounting principles.An impaired loan generally is one for which it is probable, based on current information and events, that the Bank will not collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement.Commercial and commercial real estate loans that are risk rated substandard, doubtful or loss with a current balance greater than the average loan balance for that call report code are evaluated individually for impairment by management.Also, troubled debt restructurings and loans in the process of foreclosure, not included in the criteria above, are evaluated individually for impairment.Interest income generally is not recognized on specific impaired loans unless the likelihood of further loss is remote.Cash collections on such loans are applied as reductions of the loan principal and no interest income is recognized on those loans until the principal balance has been collected.Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrowers prior payment record, and the amount of the shortfall in relation to the principal and interest owed.The Bank further identifies all loans in nonaccrual status and troubled debt restructured loans as impaired loans, except large groups of smaller balance homogeneous loans that are collectively evaluated for impairment.Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures, unless the loans are the subject of a restructuring agreement.Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loans effective interest rate, the loans obtainable market price, or the fair value of the collateral if the loan is collateral dependent.When the measure of an impaired loan results in a realizable value that is less than the recorded investment in the loan, the difference is recorded as a specific valuation allowance against that loan or a partial charge off is recorded and the Bank will make the appropriate adjustment to the allowance for loan losses. 25'