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Note 4 - Loans
 12 Months Ended
Dec. 31, 2018
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
$1.79
million as of
December 31, 2018,
and
$1.71
million as of
December 31, 2017.
Deferred loan fees were
$4.60
million as of
December 31, 2018,
and
$4.44
million as of
December 31, 2017.
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,
  
   
2018
    
2017
  
(Amounts in thousands)
  
Amount
    
Percent
    
Amount
    
Percent
  
Non-covered loans held for investment
                                
Commercial loans
                                
Construction, development, and other land
   $
63,508
      
3.58
 %   $
60,017
      
3.30
 %
Commercial and industrial
    
104,863
      
5.91
 %    
92,188
      
5.07
 %
Multi-family residential
    
107,012
      
6.03
 %    
125,202
      
6.89
 %
Single family non-owner occupied
    
140,097
      
7.89
 %    
141,670
      
7.80
 %
Non-farm, non-residential
    
613,877
      
34.58
 %    
616,633
      
33.93
 %
Agricultural
    
8,545
      
0.48
 %    
7,035
      
0.39
 %
Farmland
    
18,905
      
1.07
 %    
25,649
      
1.41
 %
Total commercial loans
    
1,056,807
      
59.54
 %    
1,068,394
      
58.79
 %
Consumer real estate loans
                                
Home equity lines
    
93,466
      
5.27
 %    
103,205
      
5.68
 %
Single family owner occupied
    
510,963
      
28.78
 %    
502,686
      
27.66
 %
Owner occupied construction
    
18,171
      
1.02
 %    
39,178
      
2.16
 %
Total consumer real estate loans
    
622,600
      
35.07
 %    
645,069
      
35.50
 %
Consumer and other loans
                                
Consumer loans
    
71,552
      
4.03
 %    
70,772
      
3.89
 %
Other
    
5,310
      
0.30
 %    
5,001
      
0.28
 %
Total consumer and other loans
    
76,862
      
4.33
 %    
75,773
      
4.17
 %
Total non-covered loans
    
1,756,269
      
98.94
 %    
1,789,236
      
98.46
 %
Total covered loans
    
18,815
      
1.06
 %    
27,948
      
1.54
 %
Total loans held for investment, net of unearned income
   $
1,775,084
      
100.00
 %   $
1,817,184
      
100.00
 %
 
The following table presents the covered loan portfolio, by loan class, as of the dates indicated.
 
 
   
December 31,
  
(Amounts in thousands)
  
2018
    
2017
  
Covered loans
                
Commercial loans
                
Construction, development, and other land
   $
35
     $
39
  
Single family non-owner occupied
    
238
      
284
  
Non-farm, non-residential
    
6
      
9
  
Total commercial loans
    
279
      
332
  
Consumer real estate loans
                
Home equity lines
    
15,284
      
23,720
  
Single family owner occupied
    
3,252
      
3,896
  
Total consumer real estate loans
    
18,536
      
27,616
  
Total covered loans
   $
18,815
     $
27,948
  
 
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. The following table presents the recorded investment and contractual unpaid principal balance of PCI loans, by acquisition, as of the dates indicated:
 
   
December 31,
  
   
2018
    
2017
  
(Amounts in thousands)
  
Recorded
Investment
    
Unpaid Principal
Balance
    
Recorded
Investment
    
Unpaid Principal
Balance
  
PCI Loans, by acquisition
                                
Peoples
   $
5,330
     $
7,272
     $
5,278
     $
8,111
  
Waccamaw
    
5,805
      
19,602
      
12,176
      
31,335
  
Other acquired
    
868
      
894
      
986
      
1,012
  
Total PCI Loans
   $
12,003
     $
27,768
     $
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, 2016
   $
3,589
     $
26,109
     $
29,698
  
Accretion
    
(1,237
 )    
(5,380
 )    
(6,617
 )
Reclassifications from nonaccretable difference
(1)
    
287
      
1,620
      
1,907
  
Other changes, net
    
1,753
      
(515
 )    
1,238
  
Balance December 31, 2016
   $
4,392
     $
21,834
     $
26,226
  
                         
Balance January 1, 2017
   $
4,392
     $
21,834
     $
26,226
  
Accretion
    
(1,379
 )    
(5,664
 )    
(7,043
 )
Reclassifications from nonaccretable difference
(1)
    
825
      
3,378
      
4,203
  
Other changes, net
    
(450
 )    
(83
 )    
(533
 )
Balance December 31, 2017
   $
3,388
     $
19,465
     $
22,853
  
                         
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
  
                                                                                                                                  
(
1
)
Respresents changes attributable to expected loss assumptions