Note

Allowance for Loan Losses

The following tables present the

changes in the allowance for loan losses, by loan segment, during the periods indicated:

	Year Ended December 31, 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		103			1,608			1,072			2,783
Charge-offs		(922	)		(699	)		(1,322	)		(2,943	)
Recoveries		801			414			285			1,500
Net charge-offs		(121	)		(285	)		(1,037	)		(1,443	)
Ending balance	$	11,672		$	6,810		$	794		$	19,276

PCI allowance
Beginning balance	$	-		$	12		$	-		$	12
Recovery of loan losses		-			(12	)		-			(12	)
Benefit attributable to the FDIC indemnification asset		-			-			-			-
Recovery of loan losses charged to operations		-			(12	)		-			(12	)
Recovery of loan losses recorded through the FDIC indemnification asset		-			-			-			-
Ending balance	$	-		$	-		$	-		$	-

Total allowance
Beginning balance	$	11,690		$	5,499		$	759		$	17,948
Provision for loan losses		103			1,596			1,072			2,771
Benefit attributable to the FDIC
indemnification asset		-			-			-			-
Provision for loan losses charged to operations		103			1,596			1,072			2,771
Recovery of loan losses recorded through the FDIC indemnification asset		-			-			-			-
Charge-offs		(922	)		(699	)		(1,322	)		(2,943	)
Recoveries		801			414			285			1,500
Net charge-offs		(121	)		(285	)		(1,037	)		(1,443	)
Ending balance	$	11,672		$	6,810		$	794		$	19,276

	Year Ended December 31, 2016
(Amounts in thousands)	Commercial			Consumer Real Estate			Consumer and Other			Total Allowance
Allowance, excluding PCI
Beginning balance	$	13,133		$	6,356		$	690		$	20,179
Provision for loan losses charged to operations		30			385			881			1,296
Charge-offs		(2,392	)		(1,612	)		(1,172	)		(5,176	)
Recoveries		919			358			360			1,637
Net charge-offs		(1,473	)		(1,254	)		(812	)		(3,539	)
Ending balance	$	11,690		$	5,487		$	759		$	17,936

PCI allowance
Beginning balance	$	-		$	54		$	-		$	54
Recovery of loan losses		-			(42	)		-			(42	)
Benefit attributable to the FDIC indemnification asset		-			1			-			1
Recovery of loan losses charged to operations		-			(41	)		-			(41	)
Recovery of loan losses recorded through the FDIC indemnification asset		-			(1	)		-			(1	)
Ending balance	$	-		$	12		$	-		$	12

Total allowance
Beginning balance	$	13,133		$	6,410		$	690		$	20,233
Provision for loan losses		30			343			881			1,254
Benefit attributable to the FDIC indemnification asset		-			1			-			1
Provision for loan losses charged to operations		30			344			881			1,255
Recovery of loan losses recorded through the FDIC indemnification asset		-			(1	)		-			(1	)
Charge-offs		(2,392	)		(1,612	)		(1,172	)		(5,176	)
Recoveries		919			358			360			1,637
Net charge-offs		(1,473	)		(1,254	)		(812	)		(3,539	)
Ending balance	$	11,690		$	5,499		$	759		$	17,948

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, 2017
(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	$	-	$	-	$	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

	December 31, 2016
(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	$	-	$	-	$	60,281	$	889
Commercial and industrial		-		-		93,099		495
Multi-family residential		281		-		133,947		1,157
Single family non-owner occupied		1,910		31		139,711		2,721
Non-farm, non-residential		1,454		-		600,915		6,185
Agricultural		-		-		6,028		43
Farmland		981		18		31,145		151
Total commercial loans		4,626		49		1,065,126		11,641
Consumer real estate loans
Home equity lines		-		-		122,000		895
Single family owner occupied		5,120		770		501,617		3,594
Owner occupied construction		336		-		44,199		228
Total consumer real estate loans		5,456		770		667,816		4,717
Consumer and other loans
Consumer loans		-		-		77,524		759
Other		-		-		3,971		-
Total consumer and other loans		-		-		81,495		759
Total loans, excluding PCI loans	$	10,082	$	819	$	1,814,437	$	17,117

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, 2017				December 31, 2016
(Amounts in thousands)	Recorded Investment		Allowance for Loan Pools With Impairment		Recorded Investment		Allowance for Loan Pools With Impairment
Commercial loans
Waccamaw commercial	$	64	$	-	$	260	$	-
Peoples commercial		4,279		-		4,491		-
Other		986		-		1,095		-
Total commercial loans		5,329		-		5,846		-
Consumer real estate loans
Waccamaw serviced home equity lines		11,118		-		20,178		-
Waccamaw residential		994		-		1,320		-
Peoples residential		999		-		1,085		12
Total consumer real estate loans		13,111		-		22,583		12
Total PCI loans	$	18,440	$	-	$	28,429	$	12

Management believed the allowance was adequate to absorb probable loan losses inherent in the loan portfolio as of

December 31,

201