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 Federal Deposit Insurance Corporation (“FDIC”) assisted transactions that are covered by loss share agreements. The following table presents loans, net of unearned income and disaggregated by class, as of the periods indicated:


	September 30, 2016					December 31, 2015
(Amounts in thousands)	Amount		Percent			Amount		Percent
Non-covered loans held for investment
Commercial loans
Construction, development, and other land	$	49,799		2.71	%	$	48,896		2.86	%
Commercial and industrial		90,362		4.92	%		88,903		5.21	%
Multi-family residential		127,468		6.94	%		95,026		5.57	%
Single family non-owner occupied		144,023		7.84	%		149,351		8.75	%
Non-farm, non-residential		596,015		32.46	%		485,460		28.45	%
Agricultural		5,786		0.32	%		2,911		0.17	%
Farmland		31,974		1.74	%		27,540		1.61	%

Total commercial loans		1,045,427		56.93	%		898,087		52.62	%
Consumer real estate loans
Home equity lines		108,108		5.89	%		107,367		6.29	%
Single family owner occupied		497,695		27.10	%		495,209		29.02	%
Owner occupied construction		43,925		2.39	%		43,505		2.55	%

Total consumer real estate loans		649,728		35.38	%		646,081		37.86	%
Consumer and other loans
Consumer loans		76,363		4.16	%		72,000		4.22	%
Other		3,029		0.16	%		7,338		0.43	%

Total consumer and other loans		79,392		4.32	%		79,338		4.65	%

Total non-covered loans		1,774,547		96.63	%		1,623,506		95.13	%
Total covered loans		61,837		3.37	%		83,035		4.87	%

Total loans held for investment, net of unearned income	$	1,836,384		100.00	%	$	1,706,541		100.00	%

Customer overdrafts reclassified as loans totaled $1.18 million as of September 30, 2016, and $1.24 million as of December 31, 2015. Deferred loan fees totaled $5.29 million as of September 30, 2016, and $3.78 million as of December 31, 2015. For information concerning off-balance sheet financing, see Note 14, “Litigation, Commitments and Contingencies,” to the Condensed Consolidated Financial Statements of this report.

The following table presents the covered loan portfolio, disaggregated by class, as of the dates indicated:


(Amounts in thousands)	September 30, 2016		December 31, 2015
Commercial loans
Construction, development, and other land	$	4,699	$	6,303
Commercial and industrial		941		1,170
Multi-family residential		43		640
Single family non-owner occupied		1,328		2,674
Non-farm, non-residential		8,312		14,065
Agricultural		26		34
Farmland		412		643

Total commercial loans		15,761		25,529
Consumer real estate loans
Home equity lines		38,737		48,565
Single family owner occupied		7,058		8,595
Owner occupied construction		201		262

Total consumer real estate loans		45,996		57,422
Consumer and other loans
Consumer loans		80		84

Total covered loans	$	61,837	$	83,035

The Company identifies certain purchased loans as impaired when fair values are established at acquisition and aggregates 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 carrying and contractual unpaid principal balance of PCI loans, by acquisition, as of the dates indicated:


	September 30, 2016				December 31, 2015
(Amounts in thousands)	Carrying Balance		Unpaid Principal Balance		Carrying Balance		Unpaid Principal Balance
Peoples Bank of Virginia	$	5,798	$	9,762	$	6,681	$	11,249
Waccamaw Bank		24,877		48,642		34,707		63,151
Other acquired		1,121		1,147		1,254		1,297

Total PCI Loans	$	31,796	$	59,551	$	42,642	$	75,697

The following tables present the activity in the accretable yield on PCI loans, by acquisition, for the periods indicated:


	Nine Months Ended September 30, 2016
(Amounts in thousands)	Peoples			Waccamaw			Total
Beginning balance	$	3,589		$	26,109		$	29,698
Accretion		(982	)		(4,408	)		(5,390	)
Reclassifications from nonaccretable difference		231			848			1,079
Removals, extensions, and other events, net		1,774			4			1,778

Ending balance	$	4,612		$	22,553		$	27,165


	Nine Months Ended September 30, 2015
(Amounts in thousands)	Peoples			Waccamaw			Total
Beginning balance	$	4,745		$	19,048		$	23,793
Additions		—			2			2
Accretion		(1,906	)		(5,069	)		(6,975	)
Reclassifications from nonaccretable difference		583			3,225			3,808
Removals, extensions, and other events, net		(27	)		5,203			5,176

Ending balance	$	3,395		$	22,409		$	25,804