NOTE 3: LOANS

Loans by loan class as of the dates shown below were as follows:



(Dollars in thousands)	June 30, 2018				December 31, 2017
Commercial and industrial	$	565,850	23.5	%	$	559,363	24.1	%
Real estate:
Commercial real estate		780,224	32.4	%		738,293	31.9	%
Construction and development		449,390	18.6	%		449,211	19.4	%
1-4 family residential		279,227	11.6	%		258,584	11.2	%
Multi-family residential		229,609	9.5	%		220,305	9.5	%
Consumer		41,833	1.7	%		40,433	1.7	%
Agriculture		10,951	0.5	%		11,256	0.5	%
Other		53,376	2.2	%		40,344	1.7	%
Total gross loans		2,410,460	100.0	%		2,317,789	100.0	%
Less deferred loan fees		(5,546)				(4,555)
Less unearned discount on retained portion of loans sold		(222)				(230)
Less allowance for loan loss		(25,746)				(24,778)
Total loans, net		2,378,946				2,288,226
Less loans held for sale		560				1,460
Loans, net	$	2,378,386			$	2,286,766

Accrued interest receivable for loans is $6.6 million and $6.1 million at June 30, 2018 and December 31, 2017, respectively and is included in other assets in the condensed consolidated balance sheets.

Loan Participations Purchased and Sold

From time to time, the Company will acquire and dispose of interests in loans under participation agreements with other financial institutions. Loan participations purchased and sold during the six months ending June 30, 2018 and 2017, by loan class, were as follows:


	Participations		Participations
	Purchased		Sold
	During the		During the
(Dollars in thousands)	Period		Period
June 30, 2018
Commercial and industrial	$	7,000	$	—
Commercial real estate		13,446		35,000
	$	20,446	$	35,000
June 30, 2017
Commercial and industrial	$	—	$	10,230
Commercial real estate		—		12,298
Construction and development		1,297		2,450
	$	1,297	$	24,978

Loans Guaranteed by the Small Business Administration

The Company participates in the Small Business Administration, or SBA, loan program. When advantageous, the Company will sell the guaranteed portions of these loans with servicing retained. SBA loans that were sold with servicing retained during the six months ended June 30, 2018 and 2017 totaled $1.5 million and $2.2 million, respectively.