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Note 5 - Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Allowance for Credit Losses [Text Block]
Note
5
. Allowance for Loan Losses
 
The following tables present the changes in the allowance for loan losses, by loan segment, during the periods indicated. There was
no
allowance related to PCI loans as of
June 30, 2018,
or
December 31, 2017.
 
   
Three Months Ended June 30, 2018
  
(Amounts in thousands)
  
Commercial
    
Consumer Real Estate
    
Consumer and Other
    
Total
Allowance
  
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
11,778
     $
6,963
     $
759
     $
19,500
  
(Recovery of) provision for loan losses charged to operations
    
(684
 )    
906
      
273
      
495
  
Charge-offs
    
(328
 )    
(124
 )    
(298
 )    
(750
 )
Recoveries
    
136
      
122
      
80
      
338
  
Net charge-offs
    
(192
 )    
(2
 )    
(218
 )    
(412
 )
Ending balance
   $
10,902
     $
7,867
     $
814
     $
19,583
  
 
   
Six Months Ended June 30, 2018
  
(Amounts in thousands)
  
Commercial
    
Consumer Real Estate
    
Consumer and Other
    
Total
Allowance
  
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
11,672
     $
6,810
     $
794
     $
19,276
  
(Recovery of) provision for loan losses charged to operations
    
(725
 )    
1,143
      
572
      
990
  
Charge-offs
    
(469
 )    
(255
 )    
(724
 )    
(1,448
 )
Recoveries
    
424
      
169
      
172
      
765
  
Net charge-offs
    
(45
 )    
(86
 )    
(552
 )    
(683
 )
Ending balance
   $
10,902
     $
7,867
     $
814
     $
19,583
  
 
   
Three Months Ended June 30, 2017
  
(Amounts in thousands)
  
Commercial
    
Consumer Real Estate
    
Consumer and Other
    
Total
Allowance
  
Allowance, excluding PCI
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
11,972
     $
5,734
     $
740
     $
18,446
  
Provision for loan losses charged to operations
    
379
      
240
      
319
      
938
  
Charge-offs
    
(257
 )    
(321
 )    
(324
 )    
(902
 )
Recoveries
    
189
      
149
      
58
      
396
  
Net charge-offs
    
(68
 )    
(172
 )    
(266
 )    
(506
 )
Ending balance
   $
12,283
     $
5,802
     $
793
     $
18,878
  
                                 
PCI allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
-
     $
12
     $
-
     $
12
  
Recovery of loan losses
    
-
      
(4
 )    
-
      
(4
 )
Benefit attributable to the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Recovery of loan losses charged to operations
    
-
      
(4
 )    
-
      
(4
 )
Recovery of loan losses recorded through the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Ending balance
   $
-
     $
8
     $
-
     $
8
  
                                 
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
11,972
     $
5,746
     $
740
     $
18,458
  
Provision for loan losses
    
379
      
236
      
319
      
934
  
Benefit attributable to the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Provision for loan losses charged to operations
    
379
      
236
      
319
      
934
  
Recovery of loan losses recorded through the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Charge-offs
    
(257
 )    
(321
 )    
(324
 )    
(902
 )
Recoveries
    
189
      
149
      
58
      
396
  
Net charge-offs
    
(68
 )    
(172
 )    
(266
 )    
(506
 )
Ending balance
   $
12,283
     $
5,810
     $
793
     $
18,886
  
 
   
Six Months Ended June 30, 2017
  
(Amounts in thousands)
  
Commercial
    
Consumer Real Estate
    
Consumer and Other
    
Total
Allowance
  
Allowance, excluding PCI
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
11,690
     $
5,487
     $
759
     $
17,936
  
Provision for loan losses charged to operations
    
464
      
486
      
480
      
1,430
  
Charge-offs
    
(286
 )    
(398
 )    
(575
 )    
(1,259
 )
Recoveries
    
415
      
227
      
129
      
771
  
Net recoveries (charge-offs)
    
129
      
(171
 )    
(446
 )    
(488
 )
Ending balance
   $
12,283
     $
5,802
     $
793
     $
18,878
  
                                 
PCI allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
-
     $
12
     $
-
     $
12
  
Recovery of loan losses
    
-
      
(4
 )    
-
      
(4
 )
Benefit attributable to the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Recovery of loan losses charged to operations
    
-
      
(4
 )    
-
      
(4
 )
Recovery of loan losses recorded through the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Ending balance
   $
-
     $
8
     $
-
     $
8
  
                                 
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
11,690
     $
5,499
     $
759
     $
17,948
  
Provision for loan losses
    
464
      
482
      
480
      
1,426
  
Benefit attributable to the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Provision for loan losses charged to operations
    
464
      
482
      
480
      
1,426
  
Recovery of loan losses recorded through the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Charge-offs
    
(286
 )    
(398
 )    
(575
 )    
(1,259
 )
Recoveries
    
415
      
227
      
129
      
771
  
Net recoveries (charge-offs)
    
129
      
(171
 )    
(446
 )    
(488
 )
Ending balance
   $
12,283
     $
5,810
     $
793
     $
18,886
  
 
The following tables present the allowance for loan losses and recorded investment in loans evaluated for impairment, excluding PCI loans, by loan class, as of the dates indicated:
 
   
June 30, 2018
  
(Amounts in thousands)
  
Loans Individually Evaluated for Impairment
(1)
    
Allowance for 
Loans
Individually
Evaluated
    
Loans Collectively Evaluated for Impairment
    
Allowance for 
Loans
Collectively
Evaluated
  
Commercial loans
                                
Construction, development, and other land
   $
-
     $
-
     $
57,375
     $
369
  
Commercial and industrial
    
-
      
-
      
96,602
      
538
  
Multi-family residential
    
-
      
-
      
110,067
      
997
  
Single family non-owner occupied
    
-
      
-
      
139,813
      
1,416
  
Non-farm, non-residential
    
1,378
      
473
      
618,953
      
6,783
  
Agricultural
    
-
      
-
      
8,895
      
100
  
Farmland
    
929
      
105
      
21,126
      
121
  
Total commercial loans
    
2,307
      
578
      
1,052,831
      
10,324
  
Consumer real estate loans
                                
Home equity lines
    
67
      
67
      
111,616
      
680
  
Single family owner occupied
    
7,043
      
2,434
      
512,818
      
4,525
  
Owner occupied construction
    
-
      
-
      
22,647
      
161
  
Total consumer real estate loans
    
7,110
      
2,501
      
647,081
      
5,366
  
Consumer and other loans
                                
Consumer loans
    
-
      
-
      
68,885
      
814
  
Other
    
-
      
-
      
4,636
      
-
  
Total consumer and other loans
    
-
      
-
      
73,521
      
814
  
Total loans, excluding PCI loans
   $
9,417
     $
3,079
     $
1,773,433
     $
16,504
  
 
   
December 31, 2017
  
(Amounts in thousands)
  
Loans Individually Evaluated for Impairment
(1)
    
Allowance for 
Loans Individually
Evaluated
    
Loans Collectively Evaluated for Impairment
    
Allowance for 
Loans Collectively
Evaluated
  
Commercial loans
                                
Construction, development, and other land
   $
-
     $
-
     $
59,386
     $
830
  
Commercial and industrial
    
343
      
270
      
91,845
      
492
  
Multi-family residential
    
-
      
-
      
125,202
      
1,094
  
Single family non-owner occupied
    
770
      
62
      
139,093
      
1,914
  
Non-farm, non-residential
    
1,367
      
15
      
611,477
      
6,582
  
Agricultural
    
-
      
-
      
7,035
      
51
  
Farmland
    
1,219
      
233
      
24,430
      
129
  
Total commercial loans
    
3,699
      
580
      
1,058,468
      
11,092
  
Consumer real estate loans
                                
Home equity lines
    
-
      
-
      
115,807
      
803
  
Single family owner occupied
    
9,471
      
1,978
      
496,348
      
3,732
  
Owner occupied construction
    
-
      
-
      
39,178
      
297
  
Total consumer real estate loans
    
9,471
      
1,978
      
651,333
      
4,832
  
Consumer and other loans
                                
Consumer loans
    
-
      
-
      
70,772
      
794
  
Other
    
-
      
-
      
5,001
      
-
  
Total consumer and other loans
    
-
      
-
      
75,773
      
794
  
Total loans, excluding PCI loans
   $
13,170
     $
2,558
     $
1,785,574
     $
16,718
  
 
The following table presents the recorded investment in PCI loans and the allowance for loan losses on PCI loans, by loan pool, as of the dates indicated:
 
   
June 30, 2018
    
December 31, 2017
  
(Amounts in thousands)
  
Recorded Investment
    
Allowance for Loan Pools With
Impairment
    
Recorded Investment
    
Allowance for Loan Pools With
Impairment
  
Commercial loans
                                
Waccamaw commercial
   $
1,330
     $
-
     $
64
     $
-
  
Peoples commercial
    
4,479
      
-
      
4,279
      
-
  
Other
    
923
      
-
      
986
      
-
  
Total commercial loans
    
6,732
      
-
      
5,329
      
-
  
Consumer real estate loans
                                
Waccamaw serviced home equity lines
    
7,662
      
-
      
11,118
      
-
  
Waccamaw residential
    
823
      
-
      
994
      
-
  
Peoples residential
    
964
      
-
      
999
      
-
  
Total consumer real estate loans
    
9,449
      
-
      
13,111
      
-
  
Total PCI loans
   $
16,181
     $
-
     $
18,440
     $
-
  
 
Management believed the allowance was adequate to absorb probable loan losses inherent in the loan portfolio as of
June 30, 2018.