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,
	2015					2014
(Amounts in thousands)	Amount		Percent			Amount		Percent
Non-covered loans held for investment
Commercial loans
Construction, development, and other land	$	48,896		2.86	%	$	41,271		2.44	%
Commercial and industrial		88,903		5.21	%		83,099		4.92	%
Multi-family residential		95,026		5.57	%		97,480		5.77	%
Single family non-owner occupied		149,351		8.75	%		135,171		8.00	%
Non-farm, non-residential		485,460		28.45	%		473,906		28.05	%
Agricultural		2,911		0.17	%		1,599		0.09	%
Farmland		27,540		1.61	%		29,517		1.75	%

Total commercial loans		898,087		52.62	%		862,043		51.02	%
Consumer real estate loans
Home equity lines		107,367		6.29	%		110,957		6.57	%
Single family owner occupied		495,209		29.02	%		485,475		28.74	%
Owner occupied construction		43,505		2.55	%		32,799		1.94	%

Total consumer real estate loans		646,081		37.86	%		629,231		37.25	%
Consumer and other loans
Consumer loans		72,000		4.22	%		69,347		4.10	%
Other		7,338		0.43	%		6,555		0.39	%

Total consumer and other loans		79,338		4.65	%		75,902		4.49	%

Total non-covered loans		1,623,506		95.13	%		1,567,176		92.76	%
Total covered loans		83,035		4.87	%		122,240		7.24	%

Total loans held for investment, net of unearned income	$	1,706,541		100.00	%	$	1,689,416		100.00	%

Loans held for sale	$	—				$	1,792

Customer overdrafts reclassified as loans totaled $1.24 million as of December 31, 2015, and $1.44 million as of December 31, 2014. Deferred loan fees totaled $3.78 million in 2015, and $3.39 million in 2014. For information concerning off-balance sheet financing, see Note 20, “Litigation, Commitments and Contingencies,” to the Consolidated Financial Statements of this report.

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)	2015		2014
Covered loans
Commercial loans
Construction, development, and other land	$	6,303	$	13,100
Commercial and industrial		1,170		2,662
Multi-family residential		640		1,584
Single family non-owner occupied		2,674		5,918
Non-farm, non-residential		14,065		25,317
Agricultural		34		43
Farmland		643		716

Total commercial loans		25,529		49,340
Consumer real estate loans
Home equity lines		48,565		60,391
Single family owner occupied		8,595		11,968
Owner occupied construction		262		453

Total consumer real estate loans		57,422		72,812
Consumer and other loans
Consumer loans		84		88

Total covered loans	$	83,035	$	122,240

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, Waccamaw serviced home equity lines, Waccamaw residential, Peoples commercial, and Peoples residential. The Company closed the Waccamaw consumer loan pool during the first quarter of 2015 due to an insignificant remaining balance. 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:


	December 31,
	2015				2014
(Amounts in thousands)	Carrying Balance		Unpaid Principal Balance		Carrying Balance		Unpaid Principal Balance
PCI Loans, by acquisition
Peoples Bank of Virginia	$	6,681	$	11,249	$	7,090	$	13,669
Waccamaw Bank		34,707		63,151		53,835		86,641
Other acquired		1,254		1,297		1,358		1,401

Total PCI Loans	$	42,642	$	75,697	$	62,283	$	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, 2015	$	4,745		$	19,048		$	—		$	23,793
Additions		—			2			—			2
Accretion		(2,712	)		(6,459	)		—			(9,171	)
Reclassifications from nonaccretable difference		1,283			6,564			—			7,847
Other changes, net		273			6,954			—			7,227

Balance, December 31, 2015	$	3,589		$	26,109		$	—		$	29,698

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
Other changes, net		(581	)		(1,598	)		—			(2,179	)

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

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
Other changes, net		(1,511	)		(2,574	)		—			(4,085	)

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