Note 4.

Loans

The Company groups loans held for investment into three segments (commercial loans, consumer real estate loans, and consumer and other loans) with each segment divided into various classes. Covered loans are those loans acquired in FDIC assisted transactions that are covered by loss share agreements. Customer overdrafts reclassified as loans totaled $1.41 million as of December 31, 2016, and $1.24 million as of December 31, 2015. Deferred loan fees totaled $3.90 million in 2016, $3.78 million in 2015, and $3.39 million in 2014. For information about off-balance sheet financing, see Note 20, “Litigation, Commitments, and Contingencies,” to the Consolidated Financial Statements of this report.

The following table presents loans, net of unearned income with non-covered loans and by loan class, as of the dates indicated:


	December 31,
	2016					2015
(Amounts in thousands)	Amount		Percent			Amount		Percent
Non-covered loans held for investment
Commercial loans
Construction, development, and other land	$	56,948		3.07	%	$	48,896		2.86	%
Commercial and industrial		92,204		4.98	%		88,903		5.21	%
Multi-family residential		134,228		7.24	%		95,026		5.57	%
Single family non-owner occupied		142,965		7.72	%		149,351		8.75	%
Non-farm, non-residential		598,674		32.31	%		485,460		28.45	%
Agricultural		6,003		0.32	%		2,911		0.17	%
Farmland		31,729		1.71	%		27,540		1.61	%

Total commercial loans		1,062,751		57.35	%		898,087		52.62	%
Consumer real estate loans
Home equity lines		106,361		5.74	%		107,367		6.29	%
Single family owner occupied		500,891		27.03	%		495,209		29.02	%
Owner occupied construction		44,535		2.41	%		43,505		2.55	%

Total consumer real estate loans		651,787		35.18	%		646,081		37.86	%
Consumer and other loans
Consumer loans		77,445		4.18	%		72,000		4.22	%
Other		3,971		0.21	%		7,338		0.43	%

Total consumer and other loans		81,416		4.39	%		79,338		4.65	%

Total non-covered loans		1,795,954		96.92	%		1,623,506		95.13	%
Total covered loans		56,994		3.08	%		83,035		4.87	%

Total loans held for investment, net of unearned income	$	1,852,948		100.00	%	$	1,706,541		100.00	%

The following table presents the covered loan portfolio, by loan class, as of the dates indicated:


	December 31,
(Amounts in thousands)	2016		2015
Covered loans
Commercial loans
Construction, development, and other land	$	4,570	$	6,303
Commercial and industrial		895		1,170
Multi-family residential		8		640
Single family non-owner occupied		962		2,674
Non-farm, non-residential		7,512		14,065
Agricultural		25		34
Farmland		397		643

Total commercial loans		14,369		25,529
Consumer real estate loans
Home equity lines		35,817		48,565
Single family owner occupied		6,729		8,595
Owner occupied construction		—		262

Total consumer real estate loans		42,546		57,422
Consumer and other loans
Consumer loans		79		84

Total covered loans	$	56,994	$	83,035

The Company identifies certain purchased loans as impaired when fair values are established at acquisition and groups those PCI loans into loan pools with common risk characteristics. 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 recorded investment and contractual unpaid principal balance of PCI loans, by acquisition, as of the dates indicated:


	December 31,
	2016				2015
(Amounts in thousands)	Recorded Investment		Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance
PCI Loans, by acquisition
Peoples	$	5,576	$	9,397	$	6,681	$	11,249
Waccamaw		21,758		45,030		34,707		63,151
Other acquired		1,095		1,121		1,254		1,297

Total PCI Loans	$	28,429	$	55,548	$	42,642	$	75,697

The following table presents the changes in the accretable yield on PCI loans, by acquisition, during the periods indicated:


(Amounts in thousands)	Peoples			Waccamaw			Other			Total
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, 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, 2016	$	3,589		$	26,109		$	—		$	29,698
Accretion		(1,237	)		(5,380	)		—			(6,617	)
Reclassifications from nonaccretable difference		287			1,620			—			1,907
Other changes, net		1,753			(515	)		—			1,238

Balance December 31, 2016	$	4,392		$	21,834		$	—		$	26,226