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Note 3 - Loans
 3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
Note
3.
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 Federal Deposit Insurance Corporation (“FDIC”) assisted transactions that are covered by loss share agreements. Customer overdrafts reclassified as loans totaled
$1.28
million as of
March
31,
2017,
and
$1.41
million as of
December
31,
2016.
Deferred loan fees totaled
$3.75
million for the
three
months ended
March
31,
2017,
and
$3.94
million for the same period of the prior year. For information about off-balance sheet financing, see Note
14,
“Litigation, Commitments, and Contingencies,” to the Condensed 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:
 
 
 
March 31, 2017
 
 
December 31, 2016
 
(Amounts in thousands)
 
Amount
 
 
Percent
 
 
Amount
 
 
Percent
 
Non-covered loans held for investment
                                
Commercial loans
                                
Construction, development, and other land
   $
61,070
     
3.33
 %   $
56,948
     
3.07
 %
Commercial and industrial
    
88,370
     
4.81
 %    
92,204
     
4.98
 %
Multi-family residential
    
143,847
     
7.84
 %    
134,228
     
7.24
 %
Single family non-owner occupied
    
143,308
     
7.81
 %    
142,965
     
7.72
 %
Non-farm, non-residential
    
584,064
     
31.81
 %    
598,674
     
32.31
 %
Agricultural
    
6,133
     
0.33
 %    
6,003
     
0.32
 %
Farmland
    
29,241
     
1.59
 %    
31,729
     
1.71
 %
Total commercial loans
    
1,056,033
     
57.52
 %    
1,062,751
     
57.35
 %
Consumer real estate loans
                                
Home equity lines
    
104,817
     
5.71
 %    
106,361
     
5.74
 %
Single family owner occupied
    
500,394
     
27.26
 %    
500,891
     
27.03
 %
Owner occupied construction
    
45,346
     
2.47
 %    
44,535
     
2.41
 %
Total consumer real estate loans
    
650,557
     
35.44
 %    
651,787
     
35.18
 %
Consumer and other loans
                                
Consumer loans
    
73,634
     
4.01
 %    
77,445
     
4.18
 %
Other
    
4,147
     
0.23
 %    
3,971
     
0.21
 %
Total consumer and other loans
    
77,781
     
4.24
 %    
81,416
     
4.39
 %
Total non-covered loans
   
1,784,371
     
97.20
 %    
1,795,954
     
96.92
 %
Total covered loans
    
51,412
     
2.80
 %    
56,994
     
3.08
 %
Total loans held for investment, net of unearned income
   $
1,835,783
     
100.00
 %   $
1,852,948
     
100.00
 %
 
The following table presents the covered loan portfolio, by loan class, as of the dates indicated:
 
 
 
March 31, 2017
 
 
December 31, 2016
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
Covered loans
                
Commercial loans
                
Construction, development, and other land
   $
4,337
    $
4,570
 
Commercial and industrial
    
637
     
895
 
Multi-family residential
    
4
     
8
 
Single family non-owner occupied
    
980
     
962
 
Non-farm, non-residential
    
6,020
     
7,512
 
Agricultural
    
25
     
25
 
Farmland
    
386
     
397
 
Total commercial loans
    
12,389
     
14,369
 
Consumer real estate loans
                
Home equity lines
    
32,943
     
35,817
 
Single family owner occupied
    
6,080
     
6,729
 
Total consumer real estate loans
    
39,023
     
42,546
 
Consumer and other loans
                
Consumer loans
    
-
     
79
 
Total covered loans
   $
51,412
    $
56,994
 
 
The Company identifies certain purchased loans as impaired when fair values are established at acquisition and groups those purchased credit impaired (“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:
 
 
 
March 31, 2017
 
 
December 31, 2016
 
(Amounts in thousands)
 
Recorded Investment
 
 
Unpaid Principal
Balance
 
 
Recorded Investment
 
 
Unpaid Principal
Balance
 
PCI Loans, by acquisition
                                
Peoples
   $
5,078
    $
8,713
    $
5,576
    $
9,397
 
Waccamaw
    
19,409
     
41,762
     
21,758
     
45,030
 
Other acquired
    
1,071
     
1,097
     
1,095
     
1,121
 
Total PCI Loans
   $
25,558
    $
51,572
    $
28,429
    $
55,548
 
 
The following table presents the changes in the accretable yield on PCI loans, by acquisition, during the periods indicated:
 
 
 
Peoples
 
 
Waccamaw
 
 
Total
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Balance January 1, 2016
   $
3,589
    $
26,109
    $
29,698
 
Accretion
    
(459
 )    
(1,484
 )    
(1,943
 )
Reclassifications from nonaccretable difference
(1)
    
(221
 )    
(272
 )    
(493
 )
Other changes, net
    
1,724
     
598
     
2,322
 
Balance March 31, 2016
   $
4,633
    $
24,951
    $
29,584
 
                         
Balance January 1, 2017
   $
4,392
    $
21,834
    $
26,226
 
Accretion
    
(295
 )    
(1,270
 )    
(1,565
 )
Reclassifications from nonaccretable difference
(1)
    
578
     
1,301
     
1,879
 
Other changes, net
    
(107
 )    
(175
 )    
(282
 )
Balance March 31, 2017
   $
4,568
    $
21,690
    $
26,258
 
                                                                                          
(1)
  Represents changes attributable to expected loss assumptions