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Note 6 - Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Allowance for Credit Losses [Text Block]
Note
6
.
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
December 31, 2019
or
2018.
 
   
Year Ended December 31, 2019
  
(Amounts in thousands)
  
Commercial
    
Consumer Real Estate
    
Consumer and Other
    
Total
Allowance
  
Beginning balance
   $
10,499
     $
6,732
     $
1,036
     $
18,267
  
Provision for (Recovery of) loan losses charged to operations
    
1,411
      
(105
 )    
2,265
      
3,571
  
Charge-offs
    
(2,548
 )    
(1,790
 )    
(1,923
 )    
(6,261
 )
Recoveries
    
873
      
1,488
      
487
      
2,848
  
Net charge-offs
    
(1,675
 )    
(302
 )    
(1,436
 )    
(3,413
 )
Ending balance
   $
10,235
     $
6,325
     $
1,865
     $
18,425
  
 
   
Year Ended December 31, 2018
  
(Amounts in thousands)
  
Commercial
    
Consumer Real Estate
    
Consumer and Other
    
Total
Allowance
  
Beginning balance
   $
11,672
     $
6,810
     $
794
     $
19,276
  
(Recovery of) provision for loan losses charged to operations
    
(660
 )    
1,473
      
1,580
      
2,393
  
Charge-offs
    
(1,236
 )    
(2,005
 )    
(1,666
 )    
(4,907
 )
Recoveries
    
723
      
454
      
328
      
1,505
  
Net charge-offs
    
(513
 )    
(1,551
 )    
(1,338
 )    
(3,402
 )
Ending balance
   $
10,499
     $
6,732
     $
1,036
     $
18,267
  
 
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:
 
   
December 31, 2019
  
(Amounts in thousands)
  
Loans Individually Evaluated for Impairment
    
Allowance for Loans Individually Evaluated
    
Loans Collectively Evaluated for Impairment
    
Allowance for Loans Collectively Evaluated
  
Commercial loans
                                
Construction, development, and other land
   $
-
     $
-
     $
30,334
     $
245
  
Commercial and industrial
    
-
      
-
      
95,659
      
699
  
Multi-family residential
    
944
      
-
      
98,201
      
969
  
Single family non-owner occupied
    
-
      
-
      
128,520
      
1,323
  
Non-farm, non-residential
    
2,575
      
292
      
591,520
      
6,361
  
Agricultural
    
-
      
-
      
9,458
      
145
  
Farmland
    
 
      
-
      
16,146
      
201
  
Total commercial loans
    
3,519
      
292
      
969,838
      
9,943
  
Consumer real estate loans
                                
Home equity lines
    
-
      
-
      
91,999
      
673
  
Single family owner occupied
    
3,016
      
353
      
490,712
      
5,175
  
Owner occupied construction
    
-
      
-
      
16,144
      
124
  
Total consumer real estate loans
    
3,016
      
353
      
598,855
      
5,972
  
Consumer and other loans
                                
Consumer loans
    
-
      
-
      
99,199
      
1,865
  
Other
    
-
      
-
      
4,742
      
-
  
Total consumer and other loans
    
-
      
-
      
103,941
      
1,865
  
Total loans, excluding PCI loans
   $
6,535
     $
645
     $
1,672,634
     $
17,780
  
 
   
December 31, 2018
  
(Amounts in thousands)
  
Loans Individually Evaluated for Impairment
    
Allowance for Loans Individually Evaluated
    
Loans Collectively Evaluated for Impairment
    
Allowance for Loans Collectively Evaluated
  
Commercial loans
                                
Construction, development, and other land
   $
-
     $
-
     $
63,039
     $
417
  
Commercial and industrial
    
-
      
-
      
104,863
      
663
  
Multi-family residential
    
534
      
230
      
106,478
      
962
  
Single family non-owner occupied
    
-
      
-
      
138,451
      
1,442
  
Non-farm, non-residential
    
1,403
      
235
      
608,537
      
6,295
  
Agricultural
    
-
      
-
      
8,545
      
85
  
Farmland
    
513
      
-
      
18,392
      
170
  
Total commercial loans
    
2,450
      
465
      
1,048,305
      
10,034
  
Consumer real estate loans
                                
Home equity lines
    
65
      
65
      
103,668
      
683
  
Single family owner occupied
    
3,631
      
922
      
509,929
      
4,931
  
Owner occupied construction
    
1,596
      
-
      
16,575
      
131
  
Total consumer real estate loans
    
5,292
      
987
      
630,172
      
5,745
  
Consumer and other loans
                                
Consumer loans
    
-
      
-
      
71,552
      
1,036
  
Other
    
-
      
-
      
5,310
      
-
  
Total consumer and other loans
    
-
      
-
      
76,862
      
1,036
  
Total loans, excluding PCI loans
   $
7,742
     $
1,452
     $
1,755,339
     $
16,815
  
 
The year ended
December 31, 2018,
includes a reclassification of
$2.67
million of loans individually evaluated for impairment that were inadvertently reported in loans collectively evaluated for impairment.  Segments affected were as follows:
$563
thousand dollars in Non-farm, non-residential,
$513
thousand in Farmland, and
$1.60
million in Owner occupied construction.
 
The following table presents the allowance for loan losses on PCI loans and recorded investment in PCI loans, by loan pool, as of the dates indicated:
 
   
December 31, 2019
    
December 31, 2018
  
(Amounts in thousands)
  
Recorded Investment
    
Allowance for Loan Pools With Impairment
    
Recorded Investment
    
Allowance for Loan Pools With Impairment
  
Commercial loans
                                
Waccamaw commercial
   $
-
     $
-
     $
-
     $
-
  
Peoples commercial
    
4,371
      
-
      
4,405
      
-
  
Highlands:
                                
1-4 family, senior-commercial
    
4,564
      
-
      
-
      
-
  
Construction & land development
    
1,956
      
-
      
-
      
-
  
Farmland and other agricultural
    
3,722
      
-
      
-
      
-
  
Multifamily
    
1,663
      
-
      
-
      
-
  
Commercial real estate-owner occupied
    
13,024
      
-
      
-
      
-
  
Commercial real estate- non-owner occupied
    
8,686
      
-
      
-
      
-
  
Commercial and industrial
    
2,829
      
-
      
-
      
-
  
Other
    
352
      
-
      
868
      
-
  
Total commercial loans
    
41,167
      
-
      
5,273
      
-
  
Consumer real estate loans
                                
Waccamaw serviced home equity lines
    
2,121
      
-
      
5,017
      
-
  
Waccamaw residential
    
587
      
-
      
788
      
-
  
Highlands:
    
-
      
-
      
-
      
-
  
1-4 family, junior and HELOCS
    
2,157
      
-
      
-
      
-
  
1-4 family, senior-consumer
    
13,174
      
-
      
-
      
-
  
Consumer
    
1,341
      
-
      
-
      
-
  
Peoples residential
    
700
      
-
      
925
      
-
  
Total consumer real estate loans
    
20,080
      
-
      
6,730
      
-
  
Total PCI loans
   $
61,247
     $
-
     $
12,003
     $
-
  
 
Management believed the allowance was adequate to absorb probable loan losses inherent in the loan portfolio as of
December 31, 2019.