Below is a summary of PCI loans by category at December 31, 2018 and 2017:



	December 31, 2018			December 31, 2017
($ in thousands)	Weighted- Average Risk Rating¹	Recorded Investment PCI Loans		Weighted- Average Risk Rating¹	Recorded Investment PCI Loans
Commercial and industrial	6.09	$	2,159	6.38	$	3,212
Real estate loans:
Commercial - investor owned	7.19	23,939		7.36	42,887
Commercial - owner occupied	7.39	9,669		6.48	11,332
Construction and land development	6.03	4,548		5.99	5,883
Residential	6.40	6,082		5.99	10,781
Total real estate loans		44,238			70,883
Consumer and other	2.18	4		2.84	59
Purchased credit impaired loans		$	46,401		$	74,154

(1) Risk ratings are based on the borrower’s contractual obligation, which is not reflective of the purchase discount.

The aging of the recorded investment in past due PCI loans by portfolio class and category at December 31, 2018 and 2017 is shown below:



	December 31, 2018
(in thousands)	30-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	2,159	$	2,159
Real estate:
Commercial - investor owned	416		88		504		23,435		23,939
Commercial - owner occupied	591		6,279		6,870		2,799		9,669
Construction and land development	—		—		—		4,548		4,548
Residential	146		37		183		5,899		6,082
Consumer and other	—		—		—		4		4
Total	$	1,153	$	6,404	$	7,557	$	38,844	$	46,401



	December 31, 2017
(in thousands)	30-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	3,212	$	3,212
Real estate:
Commercial - investor owned	—		3,034		3,034		39,853		42,887
Commercial - owner occupied	—		673		673		10,659		11,332
Construction and land development	—		—		—		5,883		5,883
Residential	328		255		583		10,198		10,781
Consumer and other	—		—		—		59		59
Total	$	328	$	3,962	$	4,290	$	69,864	$	74,154

The following table is a rollforward of PCI loans, net of the allowance for loan losses, for the years ended December 31, 2018 and 2017.



(in thousands)	Contractual Cashflows			Non-accretable Difference			Accretable Yield			Carrying Amount
Balance January 1, 2018	$	112,711		$	29,006		$	13,962		$	69,743
Acquisitions	—			—			—			—
Principal reductions and interest payments	(45,668		)	—			—			(45,668		)
Accretion of loan discount	—			—			(6,654		)	6,654
Changes in contractual and expected cash flows due to remeasurement	6,114			(13,707		)	5,330			14,491
Reductions due to disposals	—			—			—			—
Balance December 31, 2018	$	73,157		$	15,299		$	12,638		$	45,220

Balance January 1, 2017	$	66,003		$	18,902		$	13,176		$	33,925
Acquisitions	68,763			14,296			5,312			49,155
Principal reductions and interest payments	(24,530		)	—			—			(24,530		)
Accretion of loan discount	—			—			(7,573		)	7,573
Changes in contractual and expected cash flows due to remeasurement	13,978			(1,465		)	5,486			9,957
Reductions due to disposals	(11,503		)	(2,727		)	(2,439		)	(6,337		)
Balance December 31, 2017	$	112,711		$	29,006		$	13,962		$	69,743

The accretable yield is recognized in interest income over the estimated life of the acquired loans using the effective

yield method.

Outstanding customer balances on PCI loans were $64.7 million and $94.9 million as of December 31, 2018, and December 31, 2017, respectively.