Note 4.

Loans

Loan Portfolio

The Company’s loans held for investment are grouped into three segments (commercial loans, consumer real estate loans, and consumer and other loans) with each segment divided into various classes. Covered loans are defined as loans acquired in FDIC-assisted transactions that are covered by loss share agreements. The following table presents loans, net of unearned income and disaggregated by class, as of the periods indicated:


	December 31,
	2014					2013
(Amounts in thousands)	Amount		Percent			Amount		Percent
Non-covered loans held for investment
Commercial loans
Construction, development, and other land	$	41,271		2.44	%	$	35,255		2.06	%
Commercial and industrial		83,099		4.92	%		95,455		5.58	%
Multi-family residential		97,480		5.77	%		70,197		4.10	%
Single family non-owner occupied		135,171		8.00	%		135,559		7.92	%
Non-farm, non-residential		473,906		28.05	%		475,911		27.82	%
Agricultural		1,599		0.09	%		2,324		0.14	%
Farmland		29,517		1.75	%		32,614		1.91	%

Total commercial loans		862,043		51.02	%		847,315		49.53	%
Consumer real estate loans
Home equity lines		110,957		6.57	%		111,770		6.53	%
Single family owner occupied		485,475		28.74	%		496,012		28.99	%
Owner occupied construction		32,799		1.94	%		28,703		1.68	%

Total consumer real estate loans		629,231		37.25	%		636,485		37.20	%
Consumer and other loans
Consumer loans		69,347		4.10	%		71,313		4.17	%
Other		6,555		0.39	%		3,926		0.23	%

Total consumer and other loans		75,902		4.49	%		75,239		4.40	%

Total non-covered loans		1,567,176		92.76	%		1,559,039		91.13	%
Total covered loans		122,240		7.24	%		151,682		8.87	%

Total loans held for investment, net of unearned income	$	1,689,416		100.00	%	$	1,710,721		100.00	%

Loans held for sale	$	1,792				$	883

The following table presents the components of the Company’s covered loan portfolio, disaggregated by class, as of the dates indicated:


	December 31,
(Amounts in thousands)	2014		2013
Covered loans
Commercial loans
Construction, development, and other land	$	13,100	$	15,865
Commercial and industrial		2,662		3,325
Multi-family residential		1,584		1,933
Single family non-owner occupied		5,918		7,449
Non-farm, non-residential		25,317		34,646
Agricultural		43		164
Farmland		716		873

Total commercial loans		49,340		64,255
Consumer real estate loans
Home equity lines		60,391		69,206
Single family owner occupied		11,968		16,919
Owner occupied construction		453		1,184

Total consumer real estate loans		72,812		87,309
Consumer and other loans
Consumer loans		88		118

Total covered loans	$	122,240	$	151,682

Customer overdrafts reclassified as loans totaled $1.44 million as of December 31, 2014, and $1.42 million as of December 31, 2013. Deferred loan fees totaled $3.39 million in 2014, $3.16 million in 2013, and $2.36 million in 2012. For information concerning off-balance sheet financing, see Note 20, “Litigation, Commitments and Contingencies,” to the Consolidated Financial Statements of this report.

Purchased Credit Impaired Loans

Certain purchased loans are identified as impaired when fair values are established at acquisition. These PCI loans are aggregated into loan pools that have common risk characteristics. The Company’s loan pools consist of Waccamaw commercial, Waccamaw lines of credit, Peoples commercial, Waccamaw serviced home equity lines, Waccamaw residential, Peoples residential, and Waccamaw consumer. The Company estimates cash flows to be collected on PCI loans and discounts those cash flows at a market rate of interest. The following table presents the carrying and contractual unpaid principal balance of PCI loans, by acquisition, as of the dates indicated:


(Amounts in thousands)	Peoples		Waccamaw		Other		Total
Carrying balance, January 1, 2012	$	—	$	—	$	2,886	$	2,886
Impaired loans acquired		32,603		117,572		—		150,175
Carrying balance, December 31, 2012		26,907		112,093		2,340		141,340
Unpaid principal balance, December 31, 2012		34,644		157,781		5,918		198,343
Carrying balance, January 1, 2013	$	26,907	$	112,093	$	2,340	$	141,340
Carrying balance, December 31, 2013		9,196		70,584		1,931		81,711
Unpaid principal balance, December 31, 2013		17,431		105,677		5,390		128,498
Carrying balance, January 1, 2014	$	9,196	$	70,584	$	1,931	$	81,711
Carrying balance, December 31, 2014		7,090		53,835		1,358		62,283
Unpaid principal balance, December 31, 2014		13,669		86,641		1,401		101,711

The following table presents the activity in the accretable yield related to PCI loans, by acquisition, in the periods indicated:


(Amounts in thousands)	Peoples			Waccamaw			Other			Total
Balance, January 1, 2012	$	—		$	—		$	919		$	919
Additions		3,400			26,481			—			29,881
Accretion		(856	)		(3,315	)		(1,089	)		(5,260	)
Reclassifications from nonaccretable difference		—			—			185			185
Disposals		(202	)		(1,280	)		—			(1,482	)

Balance, December 31, 2012	$	2,342		$	21,886		$	15		$	24,243

Balance, January 1, 2013	$	2,342		$	21,886		$	15		$	24,243
Additions		148			281			—			429
Accretion		(1,840	)		(6,288	)		(119	)		(8,247	)
Reclassifications from (to) nonaccretable difference		6,155			(2,967	)		112			3,300
Disposals		(1,511	)		(2,574	)		—			(4,085	)

Balance, December 31, 2013	$	5,294		$	10,338		$	8		$	15,640

Balance, January 1, 2014	$	5,294		$	10,338		$	8		$	15,640
Additions		267			26			—			293
Accretion		(2,147	)		(6,118	)		(37	)		(8,302	)
Reclassifications from nonaccretable difference		1,912			16,400			29			18,341
Disposals		(581	)		(1,598	)		—			(2,179	)

Balance, December 31, 2014	$	4,745		$	19,048		$	—		$	23,793