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Note 5 - Allowance for Loan Losses
 9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Allowance for Credit Losses [Text Block]
Note
5
. 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
September 30, 2018,
or
December 31, 2017.
 
   
Three Months Ended September 30, 2018
  
(Amounts in thousands)
  
Commercial
    
Consumer Real
Estate
    
Consumer and
Other
    
Total
Allowance
  
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
10,902
     $
7,867
     $
814
     $
19,583
  
(Recovery of) provision for loan losses charged to operations
    
(300
 )    
376
      
419
      
495
  
Charge-offs
    
(201
 )    
(1,598
 )    
(378
 )    
(2,177
 )
Recoveries
    
88
      
187
      
80
      
355
  
Net charge-offs
    
(113
 )    
(1,411
 )    
(298
 )    
(1,822
 )
Ending balance
   $
10,489
     $
6,832
     $
935
     $
18,256
  
 
   
Three Months Ended September 30, 2017
  
(Amounts in thousands)
  
Commercial
    
Consumer Real
Estate
    
Consumer and
Other
    
Total
Allowance
  
Allowance, excluding PCI
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
12,283
     $
5,802
     $
793
     $
18,878
  
Provision for loan losses charged to operations
    
358
      
75
      
305
      
738
  
Charge-offs
    
(207
 )    
(137
 )    
(373
 )    
(717
 )
Recoveries
    
170
      
67
      
70
      
307
  
Net charge-offs
    
(37
 )    
(70
 )    
(303
 )    
(410
 )
Ending balance
   $
12,604
     $
5,807
     $
795
     $
19,206
  
                                 
PCI allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
-
     $
8
     $
-
     $
8
  
Recovery of loan losses
    
-
      
(8
 )    
-
      
(8
 )
Benefit attributable to the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Recovery of loan losses charged to operations
    
-
      
(8
 )    
-
      
(8
 )
Recovery of loan losses recorded through the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Ending balance
   $
-
     $
-
     $
-
     $
-
  
                                 
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
12,283
     $
5,810
     $
793
     $
18,886
  
Provision for loan losses
    
358
      
67
      
305
      
730
  
Benefit attributable to the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Provision for loan losses charged to operations
    
358
      
67
      
305
      
730
  
Recovery of loan losses recorded through the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Charge-offs
    
(207
 )    
(137
 )    
(373
 )    
(717
 )
Recoveries
    
170
      
67
      
70
      
307
  
Net charge-offs
    
(37
 )    
(70
 )    
(303
 )    
(410
 )
Ending balance
   $
12,604
     $
5,807
     $
795
     $
19,206
  
 
 
   
Nine Months Ended September 30, 2018
  
(Amounts in thousands)
  
Commercial
    
Consumer Real
Estate
    
Consumer and
Other
    
Total
Allowance
  
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
11,672
     $
6,810
     $
794
     $
19,276
  
(Recovery of) provision for loan losses charged to operations
    
(1,025
 )    
1,519
      
991
      
1,485
  
Charge-offs
    
(670
 )    
(1,853
 )    
(1,102
 )    
(3,625
 )
Recoveries
    
512
      
356
      
252
      
1,120
  
Net charge-offs
    
(158
 )    
(1,497
 )    
(850
 )    
(2,505
 )
Ending balance
   $
10,489
     $
6,832
     $
935
     $
18,256
  
 
   
Nine Months Ended September 30, 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
    
822
      
561
      
785
      
2,168
  
Charge-offs
    
(493
 )    
(535
 )    
(948
 )    
(1,976
 )
Recoveries
    
585
      
294
      
199
      
1,078
  
Net recoveries (charge-offs)
    
92
      
(241
 )    
(749
 )    
(898
 )
Ending balance
   $
12,604
     $
5,807
     $
795
     $
19,206
  
                                 
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
    
822
      
549
      
785
      
2,156
  
Benefit attributable to the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Provision for loan losses charged to operations
    
822
      
549
      
785
      
2,156
  
Recovery of loan losses recorded through the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Charge-offs
    
(493
 )    
(535
 )    
(948
 )    
(1,976
 )
Recoveries
    
585
      
294
      
199
      
1,078
  
Net recoveries (charge-offs)
    
92
      
(241
 )    
(749
 )    
(898
 )
Ending balance
   $
12,604
     $
5,807
     $
795
     $
19,206
  
 
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:
 
   
September 30, 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
   $
-
     $
-
     $
62,053
     $
394
  
Commercial and industrial
    
-
      
-
      
105,597
      
587
  
Multi-family residential
    
536
      
235
      
112,174
      
987
  
Single family non-owner occupied
    
842
      
238
      
139,958
      
6,296
  
Non-farm, non-residential
    
582
      
-
      
602,017
      
1,363
  
Agricultural
    
-
      
-
      
9,016
      
89
  
Farmland
    
925
      
158
      
19,947
      
142
  
Total commercial loans
    
2,885
      
631
      
1,050,762
      
9,858
  
Consumer real estate loans
                                
Home equity lines
    
65
      
66
      
107,452
      
687
  
Single family owner occupied
    
5,627
      
1,017
      
517,450
      
4,938
  
Owner occupied construction
    
-
      
-
      
17,889
      
124
  
Total consumer real estate loans
    
5,692
      
1,083
      
642,791
      
5,749
  
Consumer and other loans
                                
Consumer loans
    
-
      
-
      
69,974
      
935
  
Other
    
-
      
-
      
5,132
      
-
  
Total consumer and other loans
    
-
      
-
      
75,106
      
935
  
Total loans, excluding PCI loans
   $
8,577
     $
1,714
     $
1,768,659
     $
16,542
  
 
   
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
  
 
The following table presents the recorded investment in PCI loans and the allowance for loan losses on PCI loans, by loan pool, as of the dates indicated:
 
   
September 30, 2018
    
December 31, 2017
  
(Amounts in thousands)
  
Recorded
Investment
    
Allowance for
Loan Pools With
Impairment
    
Recorded
Investment
    
Allowance for
Loan Pools With
Impairment
  
Commercial loans
                                
Waccamaw commercial
   $
426
     $
-
     $
64
     $
-
  
Peoples commercial
    
4,476
      
-
      
4,279
      
-
  
Other
    
899
      
-
      
986
      
-
  
Total commercial loans
    
5,801
      
-
      
5,329
      
-
  
Consumer real estate loans
                                
Waccamaw serviced home equity lines
    
6,106
      
-
      
11,118
      
-
  
Waccamaw residential
    
822
      
-
      
994
      
-
  
Peoples residential
    
944
      
-
      
999
      
-
  
Total consumer real estate loans
    
7,872
      
-
      
13,111
      
-
  
Total PCI loans
   $
13,673
     $
-
     $
18,440
     $
-
  
 
Management believed the allowance was adequate to absorb probable loan losses inherent in the loan portfolio as of
September 30, 2018.