XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.21.2

Note 3 - Loans | 6 Months Ended
--- | ---
Jun. 30, 2021
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. Customer overdrafts reclassified as loans totaled $1.65 million as of June 30, 2021, and $1.13 million as of December 31, 2020. Deferred loan fees, net of loan costs, totaled $7.59 million as of June 30, 2021, and $5.58 million as of December 31, 2020. For information about off-balance sheet financing, see Note 14, “Litigation, Commitments, and Contingencies,” to the Condensed Consolidated Financial Statements of this report. In accordance with the adoption of ASU 2016-13, the table below reflects the loan portfolio at the amortized cost basis for the current period June 30, 2021, to include net deferred loan fees of $7.59 million and unamortized discount total related to loans acquired of $6.98 million. Accrued interest receivable (AIR) of $8.10 million is accounted for separately and reported in Interest Receivable on the Statement of Condition. The comparative periods in the table below reflect the loan portfolio prior to the adoption of ASU 2016-13. Prior periods were reported as shown in the below tables, with the acquired loans being net of earned income and of related discounts, which includes the credit discount on the acquired credit impaired loans. Included in total loans are covered loans that are generally reimbursable by the FDIC at the applicable loss share percentage of 80%. As of June 30, 2021, covered loan balances totaled $7.50 million; covered loan balances were $9.68 million year-end 2020. The following table presents loans, net of unearned income, within the portfolio by loan class, as of the dates indicated:
|  | June 30, 2021 |  |  | December 31, 2020 |
(Amounts in thousands) |  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |
Loans held for investment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 60,560 |  |  |  | 2.81 | % |  | $ | 44,674 |  |  |  | 2.04 | %
Commercial and industrial |  |  | 147,768 |  |  |  | 6.86 | % |  |  | 173,024 |  |  |  | 7.91 | %
Multi-family residential |  |  | 100,347 |  |  |  | 4.66 | % |  |  | 115,161 |  |  |  | 5.27 | %
Single family non-owner occupied |  |  | 190,008 |  |  |  | 8.82 | % |  |  | 187,783 |  |  |  | 8.59 | %
Non-farm, non-residential |  |  | 713,089 |  |  |  | 33.11 | % |  |  | 734,793 |  |  |  | 33.60 | %
Agricultural |  |  | 8,665 |  |  |  | 0.40 | % |  |  | 9,749 |  |  |  | 0.45 | %
Farmland |  |  | 18,285 |  |  |  | 0.85 | % |  |  | 19,761 |  |  |  | 0.90 | %
Total commercial loans |  |  | 1,238,722 |  |  |  | 57.51 | % |  |  | 1,284,945 |  |  |  | 58.76 | %
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 87,251 |  |  |  | 4.05 | % |  |  | 96,526 |  |  |  | 4.41 | %
Single family owner occupied |  |  | 679,863 |  |  |  | 31.57 | % |  |  | 661,054 |  |  |  | 30.24 | %
Owner occupied construction |  |  | 21,158 |  |  |  | 0.98 | % |  |  | 17,720 |  |  |  | 0.81 | %
Total consumer real estate loans |  |  | 788,272 |  |  |  | 36.60 | % |  |  | 775,300 |  |  |  | 35.46 | %
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 122,067 |  |  |  | 5.67 | % |  |  | 120,373 |  |  |  | 5.50 | %
Other |  |  | 4,670 |  |  |  | 0.22 | % |  |  | 6,014 |  |  |  | 0.28 | %
Total consumer and other loans |  |  | 126,737 |  |  |  | 5.89 | % |  |  | 126,387 |  |  |  | 5.78 | %
Total loans held for investment, net of unearned income |  | $ | 2,153,731 |  |  |  | 100.00 | % |  | $ | 2,186,632 |  |  |  | 100.00 | %
The Company began participating as a Small Business Administration Paycheck Protection Program lender during the second quarter of 2020. At June 30, 2021, the PPP loans had a current balance of $41.63 million, compared to $57.06 million at December 31, 2020, and were included in commercial and industrial loan balances. Deferred loan origination fees related to the PPP loans, net of deferred loan origination costs, totaled $4.34 million at June 30, 2021, and $2.3 million at December 31, 2020, were also recorded. During the second quarter of 2021, the Company recorded amortization of net deferred loan origination fees of $608 thousand on PPP loans and $1.53 million in amortization for the six month period of 2021. 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. Prior to the adoption of ASU 2016-13, the Company identified certain purchased loans as impaired when fair values were established at acquisition and grouped those purchased credit impaired (“PCI”) loans into loan pools with common risk characteristics. The Company estimated cash flows to be collected on PCI loans and discounted 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 were 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 |
|  | Recorded |  |  | Unpaid Principal |
(Amounts in thousands) |  | Investment |  |  | Balance |
PCI Loans, by acquisition |  |  |  |  |  |  |  |
Peoples |  | $ | - |  |  | $ | - |
Waccamaw |  |  | - |  |  |  | - |
Highlands |  |  | 39,662 |  |  |  | 47,514 |
Other acquired |  |  | - |  |  |  | - |
Total PCI Loans |  | $ | 39,662 |  |  | $ | 47,514 |
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, 2020 |  | $ | 1,890 |  |  | $ | 12,574 |  |  | $ | 8,152 |  |  | $ | 22,616 |
Accretion |  |  | - |  |  |  | - |  |  |  | (1,334 | ) |  |  | (1,334 | )
Reclassifications (to) from nonaccretable difference(1) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Other changes, net |  |  | (1,890 | ) |  |  | (12,574 | ) |  |  | - |  |  |  | (14,464 | )
Balance June 30, 2020 |  | $ | - |  |  | $ | - |  |  | $ | 6,818 |  |  | $ | 6,818 |
(1) Represents changes attributable to expected loss assumptions

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration