Audited Financial Statements Impaired loans page 57 (2) Charge-offs and payments applied represents cumulative charge-offs taken, as well as interest payments that have been applied against the outstanding principal balance. (3) Recorded investment represents the unpaid principal balance less charge-offs and payments applied; it is shown before any related allowance for loan losses. December 31, 2011 (In thousands) Unpaid principal balance (1) Charge-offs and payments applied (2) Recorded  investment (3) Related  allowance With no allowance recorded: Commercial and industrial $ 216 — 216 Construction and land development 3,958 (1,572) 2,386 Commercial real estate: Owner occupied 361 (11) 350 Other 655 (50) 605 Total commercial real estate 1,016 (61) 955 Residential real estate: Consumer mortgages — — — Investment property Total residential real estate — — — Consumer installment Total  $ 5,190 (1,633) 3,557 With allowance recorded: Commercial and industrial $ — — — $ — Construction and land development 2,882 (173) 2,709 147 Commercial real estate: Owner occupied 2,255 (29) 2,226 544 Other 1,242 (41) 1,201 264 Total commercial real estate 3,497 (70) 3,427 808 Residential real estate: Consumer mortgages 1,707 (797) 910 103 Investment property 390 (7) 383 163 Total residential real estate 2,097 (804) 1,293 266 Consumer installment — — — — Total  $ 8,476 (1,047) 7,429 $ 1,221 Total impaired loans $ 13,666 (2,680) 10,986 $ 1,221 The following table sets forth certain information regarding the Company’s impaired loans that were individually  evaluated for impairment at December 31, 2011 and 2010. The following table presents details related to the Company’s impaired loans. Loans which have been fully charged-off  do not appear in the following table. The related allowance generally represents the following components which correspond  to impaired loans: • Individually evaluated impaired loans equal to or greater than $500,000 secured by real estate (nonaccrual  construction and land development, commercial real estate, and residential real estate loans). • Individually evaluated impaired loans equal to or greater than $250,000 not secured by real estate (nonaccrual  commercial and industrial and consumer loans). (1) Unpaid principal balance represents the contractual obligation due from the customer.