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Note 3 - Loans
 9 Months Ended
Sep. 30, 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
$1.45
million as of
September 30, 2017,
and
$1.41
million as of
December 31, 2016.
Deferred loan fees totaled
$4.48
million as of
September 30, 2017,
and
$5.34
million as of
December 31, 2016.
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 loan
s, net of unearned income, with the non-covered portfolio by loan class, as of the dates indicated:
 
   
September 30, 2017
    
December 31, 2016
  
(Amounts in thousands)
  
Amount
    
Percent
    
Amount
    
Percent
  
Non-covered loans held for investment
                                
Commercial loans
                                
Construction, development, and other land
   $
72,952
      
3.97
 %   $
56,948
      
3.07
 %
Commercial and industrial
    
90,184
      
4.91
 %    
92,204
      
4.98
 %
Multi-family residential
    
125,997
      
6.86
 %    
134,228
      
7.24
 %
Single family non-owner occupied
    
143,213
      
7.79
 %    
142,965
      
7.72
 %
Non-farm, non-residential
    
613,380
      
33.38
 %    
598,674
      
32.31
 %
Agricultural
    
6,096
      
0.33
 %    
6,003
      
0.32
 %
Farmland
    
27,897
      
1.52
 %    
31,729
      
1.71
 %
Total commercial loans
    
1,079,719
      
58.76
 %    
1,062,751
      
57.35
 %
Consumer real estate loans
                                
Home equity lines
    
102,888
      
5.60
 %    
106,361
      
5.74
 %
Single family owner occupied
    
501,242
      
27.27
 %    
500,891
      
27.03
 %
Owner occupied construction
    
47,034
      
2.56
 %    
44,535
      
2.41
 %
Total consumer real estate loans
    
651,164
      
35.43
 %    
651,787
      
35.18
 %
Consumer and other loans
                                
Consumer loans
    
70,695
      
3.85
 %    
77,445
      
4.18
 %
Other
    
4,856
      
0.26
 %    
3,971
      
0.21
 %
Total consumer and other loans
    
75,551
      
4.11
 %    
81,416
      
4.39
 %
Total non-covered loans
    
1,806,434
      
98.30
 %    
1,795,954
      
96.92
 %
Total covered loans
    
31,287
      
1.70
 %    
56,994
      
3.08
 %
Total loans held for investment, net of unearned income
   $
1,837,721
      
100.00
 %   $
1,852,948
      
100.00
 %
 
The following table presents the covered loan portfolio, by loan class, as of the dates indicated:
 
   
September 30, 2017
    
December 31, 2016
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
Covered loans
                
Commercial loans
                
Construction, development, and other land
   $
40
     $
4,570
  
Commercial and industrial
    
-
      
895
  
Multi-family residential
    
-
      
8
  
Single family non-owner occupied
    
292
      
962
  
Non-farm, non-residential
    
10
      
7,512
  
Agricultural
    
-
      
25
  
Farmland
    
-
      
397
  
Total commercial loans
    
342
      
14,369
  
Consumer real estate loans
                
Home equity lines
    
26,850
      
35,817
  
Single family owner occupied
    
4,095
      
6,729
  
Total consumer real estate loans
    
30,945
      
42,546
  
Consumer and other loans
                
Consumer loans
    
-
      
79
  
Total covered loans
   $
31,287
     $
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:
 
   
September 30, 2017
    
December 31, 2016
  
(Amounts in thousands)
  
Recorded Investment
    
Unpaid Principal Balance
    
Recorded Investment
    
Unpaid Principal Balance
  
PCI Loans, by acquisition
                                
Peoples
   $
5,179
     $
8,328
     $
5,576
     $
9,397
  
Waccamaw
    
14,903
      
34,420
      
21,758
      
45,030
  
Other acquired
    
1,011
      
1,037
      
1,095
      
1,121
  
Total PCI Loans
   $
21,093
     $
43,785
     $
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
    
(982
 )    
(4,408
 )    
(5,390
 )
Reclassifications from nonaccretable difference
(1)
    
231
      
848
      
1,079
  
Other changes, net
    
1,774
      
4
      
1,778
  
Balance September 30, 2016
   $
4,612
     $
22,553
     $
27,165
  
                         
Balance January 1, 2017
   $
4,392
     $
21,834
     $
26,226
  
Accretion
    
(969
 )    
(4,690
 )    
(5,659
 )
Reclassifications from nonaccretable difference
(1)
    
782
      
2,525
      
3,307
  
Other changes, net
    
(375
 )    
(311
 )    
(686
 )
Balance September 30, 2017
   $
3,830
     $
19,358
     $
23,188
  
                         
(1) Represents changes attributable to expected loss assumptions