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Note 4 - Loans | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 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 $1.13 million as of December 31, 2020, and $2.20 million as of December 31, 2019. Deferred loan fees were $5.58 million as of December 31, 2020, and $4.60 million as of December 31, 2019. 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, |
|  | 2020 |  |  | 2019 |
(Amounts in thousands) |  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |
Non-covered loans held for investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 44,649 |  |  |  | 2.04 | % |  | $ | 48,659 |  |  |  | 2.30 | %
Commercial and industrial |  |  | 173,024 |  |  |  | 7.91 | % |  |  | 142,962 |  |  |  | 6.76 | %
Multi-family residential |  |  | 115,161 |  |  |  | 5.27 | % |  |  | 121,840 |  |  |  | 5.76 | %
Single family non-owner occupied |  |  | 187,598 |  |  |  | 8.58 | % |  |  | 163,181 |  |  |  | 7.72 | %
Non-farm, non-residential |  |  | 734,793 |  |  |  | 33.60 | % |  |  | 727,261 |  |  |  | 34.39 | %
Agricultural |  |  | 9,749 |  |  |  | 0.45 | % |  |  | 11,756 |  |  |  | 0.56 | %
Farmland |  |  | 19,761 |  |  |  | 0.90 | % |  |  | 23,155 |  |  |  | 1.10 | %
Total commercial loans |  |  | 1,284,735 |  |  |  | 58.75 | % |  |  | 1,238,814 |  |  |  | 58.59 | %
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 89,432 |  |  |  | 4.09 | % |  |  | 110,078 |  |  |  | 5.21 | %
Single family owner occupied |  |  | 658,678 |  |  |  | 30.12 | % |  |  | 620,697 |  |  |  | 29.35 | %
Owner occupied construction |  |  | 17,720 |  |  |  | 0.81 | % |  |  | 17,241 |  |  |  | 0.82 | %
Total consumer real estate loans |  |  | 765,830 |  |  |  | 35.02 | % |  |  | 748,016 |  |  |  | 35.38 | %
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 120,373 |  |  |  | 5.50 | % |  |  | 110,027 |  |  |  | 5.20 | %
Other |  |  | 6,014 |  |  |  | 0.28 | % |  |  | 4,742 |  |  |  | 0.22 | %
Total consumer and other loans |  |  | 126,387 |  |  |  | 5.78 | % |  |  | 114,769 |  |  |  | 5.42 | %
Total non-covered loans |  |  | 2,176,952 |  |  |  | 99.56 | % |  |  | 2,101,599 |  |  |  | 99.39 | %
Total covered loans |  |  | 9,680 |  |  |  | 0.44 | % |  |  | 12,861 |  |  |  | 0.61 | %
Total loans held for investment, net of unearned income |  | $ | 2,186,632 |  |  |  | 100.00 | % |  | $ | 2,114,460 |  |  |  | 100.00 | %
Loans held for Sale |  | $ | — |  |  | $ | — |  |  | $ | 263 |  |  | $ | — |
Commercial and industrial loan balances grew significantly compared to December 31, 2019. The Company began participating as a Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) lender during the second quarter of 2020. At December 31, 2020, the PPP loans had a current balance of $57.06 million, and were included in commercial and industrial loan balances. Deferred loan origination fees related to the PPP loans, net of deferred loan origination costs, which totaled $2.30 million at December 31, 2020, were also recorded. During 2020, the Company recorded amortization of net deferred loan origination fees of $868 thousand on PPP loans. The remaining net deferred loan origination fees will be amortized over the expected life of the respective loans, or until forgiven by the SBA, and will be recognized in net interest income. As of December 31, 2020, $3.94 million, or 6.46%, of the Company's Paycheck Protection Program loan balances had been forgiven by the SBA. The following table presents the covered loan portfolio, by loan class, as of the dates indicated.
|  | December 31, |
(Amounts in thousands) |  | 2020 |  |  | 2019 |
Covered loans |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 25 |  |  | $ | 28 |
Single family non-owner occupied |  |  | 185 |  |  |  | 199 |
Non-farm, non-residential |  |  | — |  |  |  | 3 |
Total commercial loans |  |  | 210 |  |  |  | 230 |
Consumer real estate loans |  |  |  |  |  |  |  |
Home equity lines |  |  | 7,094 |  |  |  | 9,853 |
Single family owner occupied |  |  | 2,376 |  |  |  | 2,778 |
Total consumer real estate loans |  |  | 9,470 |  |  |  | 12,631 |
Total covered loans |  | $ | 9,680 |  |  | $ | 12,861 |
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. Effective January 1, 2020, the Company consolidated the insignificant PCI loans and discounts for Peoples, Waccamaw, and other acquired loans into the core loan portfolio. The only remaining PCI pools are those loans acquired in the Highlands acquisition on December 31, 2019. The following table presents the recorded investment and contractual unpaid principal balance of PCI loans, by acquisition, as of the dates indicated:
|  | December 31, |
|  | 2020 |  |  | 2019 |
(Amounts in thousands) |  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Recorded Investment |  |  | Unpaid Principal Balance |
PCI Loans, by acquisition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Peoples |  | $ | — |  |  | $ | — |  |  | $ | 5,071 |  |  | $ | 6,431 |
Waccamaw |  |  | — |  |  |  | — |  |  |  | 2,708 |  |  |  | 14,277 |
Highlands |  |  | 39,662 |  |  |  | 47,514 |  |  |  | 53,116 |  |  |  | 64,096 |
Other acquired |  |  | — |  |  |  | — |  |  |  | 352 |  |  |  | 378 |
Total PCI Loans |  | $ | 39,662 |  |  | $ | 47,514 |  |  | $ | 61,247 |  |  | $ | 85,182 |
The Highlands acquisition added $8.15 million in accretable yield. The total fair value of the Highlands PCI loans was $53.12 million at the time of the acquisition. The gross contractual cash flows for the Highlands PCI loans was $76.45 million. The following table presents the changes in the accretable yield on PCI loans, by acquisition, during the periods indicated:
|  | Peoples |  |  | Waccamaw |  |  | Highlands |  |  | Total |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance January 1, 2018 |  | $ | 3,388 |  |  | $ | 19,465 |  |  | $ | — |  |  | $ | 22,853 |
Accretion |  |  | (1,263 | ) |  |  | (6,269 | ) |  |  | — |  |  |  | (7,532 | )
Reclassifications from nonaccretable difference(1) |  |  | 8 |  |  |  | 1,770 |  |  |  | — |  |  |  | 1,778 |
Other changes, net |  |  | 457 |  |  |  | (327 | ) |  |  | — |  |  |  | 130 |
Balance December 31, 2018 |  | $ | 2,590 |  |  | $ | 14,639 |  |  | $ | — |  |  | $ | 17,229 |
Balance January 1, 2019 |  | $ | 2,590 |  |  | $ | 14,639 |  |  | $ | — |  |  | $ | 17,229 |
Accretion |  |  | (950 | ) |  |  | (3,317 | ) |  |  | — |  |  |  | (4,267 | )
Reclassifications from nonaccretable difference(1) |  |  | 17 |  |  |  | 1,440 |  |  |  | — |  |  |  | 1,457 |
Other changes, net |  |  | 233 |  |  |  | (188 | ) |  |  | — |  |  |  | 45 |
Balance December 31, 2019 |  | $ | 1,890 |  |  | $ | 12,574 |  |  | $ | — |  |  | $ | 14,464 |
Balance January 1, 2020 |  | $ | 1,890 |  |  | $ | 12,574 |  |  | $ | — |  |  | $ | 14,464 |
Additions |  |  | — |  |  |  | — |  |  |  | 8,152 |  |  |  | 8,152 |
Accretion |  |  | — |  |  |  | — |  |  |  | (2,497 | ) |  |  | (2,497 | )
Other changes, net |  |  | (1,890 | ) |  |  | (12,574 | ) |  |  | — |  |  |  | (14,464 | )
Balance Balance at December 31, 2020 |  | $ | — |  |  | $ | — |  |  | $ | 5,655 |  |  | $ | 5,655 |
(1) | Represents changes attributable to expected loss assumptions

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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