Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2014

Aggregate Activity in Allowance for Loan Losses

The following tables present the aggregate activity in the allowance for loan losses in the periods indicated:


(Amounts in thousands)	Allowance Excluding PCI Loans			Allowance for PCI Loans			Total Allowance
Three months ended September 30, 2013
Beginning balance	$	23,114		$	8		$	23,122
Provision for loan losses		2,110			1,035			3,145
Benefit attributable to the FDIC indemnification asset		—			(812	)		(812	)

Provision for loan losses charged to operations		2,110			223			2,333
Provision for loan losses recorded through the FDIC indemnification asset		—			812			812
Charge-offs		(3,022	)		—			(3,022	)
Recoveries		1,420			—			1,420

Net charge-offs		(1,602	)		—			(1,602	)

Ending balance	$	23,622		$	1,043		$	24,665

Three months ended September 30, 2014
Beginning balance	$	23,493		$	418		$	23,911
Recovery of loan losses		(2,335	)		(214	)		(2,549	)
Benefit attributable to the FDIC indemnification asset		—			110			110

Recovery of loan losses charged to operations		(2,335	)		(104	)		(2,439	)
Recovery of loan losses recorded through the FDIC indemnification asset		—			(110	)		(110	)
Charge-offs		(1,118	)		—			(1,118	)
Recoveries		915			—			915

Net charge-offs		(203	)		—			(203	)

Ending balance	$	20,955		$	204		$	21,159


(Amounts in thousands)	Allowance Excluding PCI Loans			Allowance for PCI Loans			Total Allowance
Nine months ended September 30, 2013
Beginning balance	$	25,762		$	8		$	25,770
Provision for loan losses		6,457			1,035			7,492
Benefit attributable to the FDIC indemnification asset		—			(812	)		(812	)

Provision for loan losses charged to operations		6,457			223			6,680
Provision for loan losses recorded through the FDIC indemnification asset		—			812			812
Charge-offs		(11,511	)		—			(11,511	)
Recoveries		2,914			—			2,914

Net charge-offs		(8,597	)		—			(8,597	)

Ending balance	$	23,622		$	1,043		$	24,665

Nine months ended September 30, 2014
Beginning balance	$	23,322		$	755		$	24,077
Provision for (recovery of) loan losses		733			(551	)		182
Benefit attributable to the FDIC indemnification asset		—			451			451

Provision for (recovery of) loan losses charged to operations		733			(100	)		633
Recovery of loan losses recorded through the FDIC indemnification asset		—			(451	)		(451	)
Charge-offs		(5,119	)		—			(5,119	)
Recoveries		2,019			—			2,019

Net charge-offs		(3,100	)		—			(3,100	)

Ending balance	$	20,955		$	204		$	21,159

Allowance for Loan Losses and Recorded Investment in Loans

The following tables present the Company’s allowance for loan losses and recorded investment in loans, excluding PCI loans, by loan class, as of the dates indicated:


	September 30, 2014
(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	$	—	$	—	$	52,809	$	1,189
Commercial and industrial		1,258		—		89,680		1,064
Multi-family residential		5,567		500		95,666		1,786
Single family non-owner occupied		637		46		144,344		3,299
Non-farm, non-residential		9,850		623		493,317		4,910
Agricultural		—		—		2,300		18
Farmland		—		—		32,667		236

Total commercial loans		17,312		1,169		910,783		12,502
Consumer real estate loans
Home equity lines		—		—		136,429		1,346
Single family owner occupied		5,161		504		503,846		4,503
Owner occupied construction		—		—		45,212		304

Total consumer real estate loans		5,161		504		685,487		6,153
Consumer and other loans
Consumer loans		—		—		71,336		627
Other		—		—		7,308		—

Total consumer and other loans		—		—		78,644		627

Total loans, excluding PCI loans	$	22,473	$	1,673	$	1,674,914	$	19,282


	December 31, 2013
(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	$	—	$	—	$	46,404	$	1,141
Commercial and industrial		5,189		3,794		92,612		1,421
Multi-family residential		—		—		71,669		1,211
Single family non-owner occupied		664		47		136,567		3,502
Non-farm, non-residential		5,952		114		483,126		4,536
Agricultural		—		—		2,488		23
Farmland		351		—		33,136		301

Total commercial loans		12,156		3,955		866,002		12,135
Consumer real estate loans
Home equity lines		472		52		136,896		1,309
Single family owner occupied		6,850		735		502,229		4,295
Owner occupied construction		—		—		29,090		206

Total consumer real estate loans		7,322		787		668,215		5,810
Consumer and other loans
Consumer loans		—		—		71,389		635
Other		—		—		3,926		—

Total consumer and other loans		—		—		75,315		635

Total loans, excluding PCI loans	$	19,478	$	4,742	$	1,609,532	$	18,580

Allowance Excluding Purchased Credit Impaired

Aggregate Activity in Allowance for Loan Losses

The following tables present the components of the activity in the allowance for loan losses, excluding PCI loans, by loan segment, in the periods indicated:


				Consumer			Consumer
(Amounts in thousands)	Commercial			Real Estate			and Other			Total
Three months ended September 30, 2013
Beginning balance	$	15,873		$	6,658		$	583		$	23,114
Provision for (recovery of) loan losses charged to operations		1,551			(807	)		1,366			2,110
Loans charged off		(2,561	)		1,026			(1,487	)		(3,022	)
Recoveries credited to allowance		1,194			39			187			1,420

Net (charge-offs) recoveries		(1,367	)		1,065			(1,300	)		(1,602	)

Ending balance	$	16,057		$	6,916		$	649		$	23,622

Three months ended September 30, 2014
Beginning balance	$	16,747		$	6,123		$	623		$	23,493
(Recovery of) provision for loan losses charged to operations		(3,131	)		561			235			(2,335	)
Loans charged off		(558	)		(219	)		(341	)		(1,118	)
Recoveries credited to allowance		613			192			110			915

Net recoveries (charge-offs)		55			(27	)		(231	)		(203	)

Ending balance	$	13,671		$	6,657		$	627		$	20,955


				Consumer			Consumer
(Amounts in thousands)	Commercial			Real Estate			and Other			Total
Nine months ended September 30, 2013
Beginning balance	$	17,259		$	7,906		$	597		$	25,762
Provision for loan losses charged to operations		4,338			422			1,697			6,457
Loans charged off		(7,394	)		(1,747	)		(2,370	)		(11,511	)
Recoveries credited to allowance		1,854			335			725			2,914

Net charge-offs		(5,540	)		(1,412	)		(1,645	)		(8,597	)

Ending balance	$	16,057		$	6,916		$	649		$	23,622

Nine months ended September 30, 2014
Beginning balance	$	16,090		$	6,597		$	635		$	23,322
(Recovery of) provision for loan losses charged to operations		(478	)		592			619			733
Loans charged off		(2,839	)		(1,184	)		(1,096	)		(5,119	)
Recoveries credited to allowance		898			652			469			2,019

Net charge-offs		(1,941	)		(532	)		(627	)		(3,100	)

Ending balance	$	13,671		$	6,657		$	627		$	20,955

Purchased Credit Impaired

Aggregate Activity in Allowance for Loan Losses

The following tables present the components of the activity in the allowance for loan losses for PCI loans, by loan segment, in the periods indicated:


				Consumer			Consumer
(Amounts in thousands)	Commercial			Real Estate			and Other		Total
Three months ended September 30, 2013
Beginning balance	$	8		$	—		$	—	$	8
Purchased impaired provision		158			877			—		1,035
Benefit attributable to FDIC indemnificaton asset		(242	)		(570	)		—		(812	)

(Recovery of) provision for loan losses charged to operations		(84	)		307			—		223
Provision for loan losses recorded through the FDIC indemnificaton asset		242			570			—		812

Ending balance	$	166		$	877		$	—	$	1,043

Three months ended September 30, 2014
Beginning balance	$	16		$	402		$	—	$	418
Purchased impaired recovery		(8	)		(206	)		—		(214	)
Benefit attributable to FDIC indemnificaton asset		—			110			—		110

Recovery of loan losses charged to operations		(8	)		(96	)		—		(104	)
Recovery of loan losses recorded through the FDIC indemnificaton asset		—			(110	)		—		(110	)

Ending balance	$	8		$	196		$	—	$	204


				Consumer			Consumer
(Amounts in thousands)	Commercial			Real Estate			and Other		Total
Nine months ended September 30, 2013
Beginning balance	$	8		$	—		$	—	$	8
Purchased impaired provision		158			877			—		1,035
Benefit attributable to FDIC indemnificaton asset		(242	)		(570	)		—		(812	)

(Recovery of) provision for loan losses charged to operations		(84	)		307			—		223
Provision for loan losses recorded through the FDIC indemnificaton asset		242			570			—		812

Ending balance	$	166		$	877		$	—	$	1,043

Nine months ended September 30, 2014
Beginning balance	$	77		$	678		$	—	$	755
Purchased impaired recovery		(69	)		(482	)		—		(551	)
Benefit attributable to FDIC indemnificaton asset		55			396			—		451

Recovery of loan losses charged to operations		(14	)		(86	)		—		(100	)
Recovery of loan losses recorded through the FDIC indemnificaton asset		(55	)		(396	)		—		(451	)

Ending balance	$	8		$	196		$	—	$	204

Allowance for Loan Losses and Recorded Investment in Loans

The Company aggregates PCI loans into the following loan pools: Waccamaw commercial, Waccamaw lines of credit, Peoples commercial, Waccamaw serviced home equity lines, Waccamaw residential, Peoples residential, and Waccamaw consumer. The following table presents the Company’s allowance for loan losses and recorded investment in PCI loans, by loan pool, as of the dates indicated:


	September 30, 2014				December 31, 2013
(Amounts in thousands)	Loan Pools		Allowance for Loan Pools With Impairment		Loan Pools		Allowance for Loan Pools With Impairment
Commercial loans
Waccamaw commercial	$	13,695	$	—	$	19,851	$	—
Waccamaw lines of credit		820		—		2,594		69
Peoples commercial		6,224		—		7,862		—
Other		1,393		8		1,931		8

Total commercial loans		22,132		8		32,238		77
Consumer real estate loans
Waccamaw serviced home equity lines		39,206		—		43,608		277
Waccamaw residential		2,853		—		4,497		217
Peoples residential		1,208		196		1,334		184

Total consumer real estate loans		43,267		196		49,439		678
Consumer and other loans
Waccamaw consumer		6		—		34		—

Total loans	$	65,405	$	204	$	81,711	$	755