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Note 3 - Loans
 6 Months Ended
Jun. 30, 2018
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
$1.70
million as of
June 30, 2018,
and
$1.71
million as of
December 31, 2017.
Deferred loan fees, net of loan costs, totaled
$4.42
million as of
June 30, 2018,
and
$4.44
million as of
December 31, 2017.
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 the non-covered portfolio by loan class, as of the dates indicated:
 
   
June 30, 2018
    
December 31, 2017
  
(Amounts in thousands)
  
Amount
    
Percent
    
Amount
    
Percent
  
Non-covered loans held for investment
                                
Commercial loans
                                
Construction, development, and other land
   $
57,986
      
3.22
 %   $
60,017
      
3.30
 %
Commercial and industrial
    
96,614
      
5.37
 %    
92,188
      
5.07
 %
Multi-family residential
    
110,067
      
6.12
 %    
125,202
      
6.89
 %
Single family non-owner occupied
    
142,076
      
7.90
 %    
141,670
      
7.80
 %
Non-farm, non-residential
    
624,999
      
34.74
 %    
616,633
      
33.93
 %
Agricultural
    
8,895
      
0.49
 %    
7,035
      
0.39
 %
Farmland
    
22,055
      
1.23
 %    
25,649
      
1.41
 %
Total commercial loans
    
1,062,692
      
59.07
 %    
1,068,394
      
58.79
 %
Consumer real estate loans
                                
Home equity lines
    
100,194
      
5.57
 %    
103,205
      
5.68
 %
Single family owner occupied
    
517,058
      
28.74
 %    
502,686
      
27.66
 %
Owner occupied construction
    
22,647
      
1.26
 %    
39,178
      
2.16
 %
Total consumer real estate loans
    
639,899
      
35.57
 %    
645,069
      
35.50
 %
Consumer and other loans
                                
Consumer loans
    
68,885
      
3.83
 %    
70,772
      
3.89
 %
Other
    
4,636
      
0.26
 %    
5,001
      
0.28
 %
Total consumer and other loans
    
73,521
      
4.09
 %    
75,773
      
4.17
 %
Total non-covered loans
    
1,776,112
      
98.73
 %    
1,789,236
      
98.46
 %
Total covered loans
    
22,919
      
1.27
 %    
27,948
      
1.54
 %
Total loans held for investment, net of unearned income
   $
1,799,031
      
100.00
 %   $
1,817,184
      
100.00
 %
 
The following table presents the covered loan portfolio, by loan class, as of the dates indicated:
 
   
June 30, 2018
    
December 31, 2017
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
Covered loans
                
Commercial loans
                
Construction, development, and other land
   $
35
     $
39
  
Single family non-owner occupied
    
252
      
284
  
Non-farm, non-residential
    
8
      
9
  
Total commercial loans
    
295
      
332
  
Consumer real estate loans
                
Home equity lines
    
19,151
      
23,720
  
Single family owner occupied
    
3,473
      
3,896
  
Total consumer real estate loans
    
22,624
      
27,616
  
Total covered loans
   $
22,919
     $
27,948
  
 
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:
 
   
June 30, 2018
    
December 31, 2017
  
(Amounts in thousands)
  
Recorded Investment
    
Unpaid Principal Balance
    
Recorded Investment
    
Unpaid Principal Balance
  
PCI Loans, by acquisition
                                
Peoples
   $
5,443
     $
7,772
     $
5,278
     $
8,111
  
Waccamaw
    
9,815
      
26,137
      
12,176
      
31,335
  
Other acquired
    
923
      
949
      
986
      
1,012
  
Total PCI Loans
   $
16,181
     $
34,858
     $
18,440
     $
40,458
  
 
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, 2017
   $
4,392
     $
21,834
     $
26,226
  
Accretion
    
(606
 )    
(3,325
 )    
(3,931
 )
Reclassifications from nonaccretable difference
(1)
    
681
      
1,621
      
2,302
  
Other changes, net
    
(41
 )    
(624
 )    
(665
 )
Balance June 30, 2017
   $
4,426
     $
19,506
     $
23,932
  
                         
Balance January 1, 2018
   $
3,388
     $
19,465
     $
22,853
  
Accretion
    
(686
 )    
(3,167
 )    
(3,853
 )
Reclassifications (to) from nonaccretable difference
(1)
    
(22
 )    
1,221
      
1,199
  
Other changes, net
    
212
      
(74
 )    
138
  
Balance June 30, 2018
   $
2,892
     $
17,445
     $
20,337
  
                         
(
1
) Represents changes attributable to expected loss assumptions