Note 7 - FDIC Indemnification Asset

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

FDIC Loss Share Agreement Receivable [Text Block]

Note 7. FDIC Indemnification Asset

In connection with the FDIC-assisted acquisition of Waccamaw Bank in 2012, the Company entered into loss share agreements with the FDIC in which the FDIC agrees to cover 80% of most loan and foreclosed real estate losses and reimburse certain expenses incurred in relation to those covered assets. Loss share coverage on commercial loans expired June 30, 2017, with recoveries continuing until June 30, 2020. Loss share coverage on single family loans will expire June 30, 2022. 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 and total covered loans for the periods indicated:

	Year Ended December 31,
	2020			2019
(Amounts in thousands)
Beginning balance	$	2,883		$	5,108
Net amortization		(1,690	)		(2,377	)
Payments to the FDIC		30			152
Ending balance	$	1,223		$	2,883
Covered loans	$	9,680		$	12,861