Note 6 - FDIC Indemnification Asset

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

FDIC Loss Share Agreement Receivable [Text Block]

Note

6

. FDIC

Indemnification Asset

In connection with the FDIC-assisted acquisition of Waccamaw Bank (“Waccamaw”) in

2012,

the Company entered into loss share agreements with the FDIC that covered

$22.92

million of loans and

$44

thousand of OREO as of

June 30, 2018,

compared to

$27.95

million of loans and

$105

thousand of OREO as of

December 31, 2017.

Under the loss share agreements, the FDIC agrees to cover

80%

of most loan and foreclosed real estate losses and reimburse certain expenses incurred in relation to these covered assets. Loss share coverage expired

June 30, 2017,

for commercial loans, with recoveries continuing until

June 30, 2019.

Loss share coverage will expire

June 30, 2022,

for single family loans. The Company’s consolidated statements of income include the expense on covered assets net of estimated reimbursements. The following table presents the changes in the FDIC indemnification asset during the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
(Amounts in thousands)
Beginning balance	$	6,884		$	9,931		$	7,161		$	12,173
Increase in estimated losses on covered OREO		-			61			-			67
Reimbursable expenses from the FDIC		(15	)		159			(21	)		61
Net amortization		(575	)		(1,586	)		(957	)		(2,918	)
Payments to (reimbursements from) the FDIC		96			(406	)		207			(1,224	)
Ending balance	$	6,390		$	8,159		$	6,390		$	8,159