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Note 5 - Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2019
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
June 30, 2019.
 
   
Three Months Ended June 30, 2019
  
(Amounts in thousands)
  
Commercial
    
Consumer Real Estate
    
Consumer and Other
    
Total Allowance
  
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
10,065
     $
6,856
     $
1,322
     $
18,243
  
Provision for (Recovery of) loan losses charged to operations
    
1,263
      
(68
 )    
390
      
1,585
  
Charge-offs
    
(1,514
 )    
(191
 )    
(409
 )    
(2,114
 )
Recoveries
    
402
      
284
      
140
      
826
  
Net (charge-offs) recoveries
    
(1,112
 )    
93
      
(269
 )    
(1,288
 )
Ending balance
   $
10,216
     $
6,881
     $
1,443
     $
18,540
  
 
   
Six Months Ended June 30, 2019
  
(Amounts in thousands)
  
Commercial
    
Consumer Real Estate
    
Consumer and Other
    
Total Allowance
  
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
10,499
     $
6,732
     $
1,036
     $
18,267
  
Provision for loan losses charged to operations
    
1,157
      
749
      
899
      
2,805
  
Charge-offs
    
(2,006
 )    
(950
 )    
(780
 )    
(3,736
 )
Recoveries
    
566
      
350
      
288
      
1,204
  
Net (charge-offs)
    
(1,440
 )    
(600
 )    
(492
 )    
(2,532
 )
Ending balance
   $
10,216
     $
6,881
     $
1,443
     $
18,540
  
 
 
   
Three Months Ended June 30, 2018
  
(Amounts in thousands)
  
Commercial
    
Consumer Real Estate
    
Consumer and Other
    
Total Allowance
  
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
11,778
     $
6,963
     $
759
     $
19,500
  
(Recovery of) provision for loan losses charged to operations
    
(684
 )    
906
      
273
      
495
  
Charge-offs
    
(328
 )    
(124
 )    
(298
 )    
(750
 )
Recoveries
    
136
      
122
      
80
      
338
  
Net (charge-offs)
    
(192
 )    
(2
 )    
(218
 )    
(412
 )
Ending balance
   $
10,902
     $
7,867
     $
814
     $
19,583
  
 
   
Six Months Ended June 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
    
(725
 )    
1,143
      
572
      
990
  
Charge-offs
    
(469
 )    
(255
 )    
(724
 )    
(1,448
 )
Recoveries
    
424
      
169
      
172
      
765
  
Net (charge-offs)
    
(45
 )    
(86
 )    
(552
 )    
(683
 )
Ending balance
   $
10,902
     $
7,867
     $
814
     $
19,583
  
 
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:
 
   
June 30, 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
   $
-
     $
-
     $
61,683
     $
417
  
Commercial and industrial
    
536
      
-
      
91,768
      
585
  
Multi-family residential
    
536
      
-
      
100,033
      
970
  
Single family non-owner occupied
    
-
      
-
      
138,006
      
1,448
  
Non-farm, non-residential
    
3,673
      
175
      
588,715
      
6,087
  
Agricultural
    
-
      
-
      
9,462
      
130
  
Farmland
    
537
      
-
      
16,785
      
187
  
Total commercial loans
    
5,282
      
175
      
1,006,452
      
9,824
  
Consumer real estate loans
                                
Home equity lines
    
-
      
-
      
96,779
      
667
  
Single family owner occupied
    
5,587
      
764
      
490,397
      
5,214
  
Owner occupied construction
    
-
      
-
      
13,755
      
104
  
Total consumer real estate loans
    
5,587
      
764
      
600,931
      
5,985
  
Consumer and other loans
                                
Consumer loans
    
-
      
-
      
88,352
      
1,412
  
Other
    
-
      
-
      
4,497
      
-
  
Total consumer and other loans
    
-
      
-
      
92,849
      
1,412
  
Total loans, excluding PCI loans
   $
10,869
     $
939
     $
1,700,232
     $
17,221
  
 
 
   
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
  
 
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 recorded investment in PCI loans and the allowance for loan losses on PCI loans, by loan pool, as of the dates indicated:
 
   
June 30, 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
    
4,314
      
-
      
4,405
      
-
  
Other
    
371
      
-
      
868
      
-
  
Total commercial loans
    
4,685
      
-
      
5,273
      
-
  
Consumer real estate loans
                                
Waccamaw serviced home equity lines
    
3,569
      
-
      
5,017
      
-
  
Waccamaw residential
    
687
      
-
      
788
      
-
  
Peoples residential
    
886
      
-
      
925
      
-
  
Total consumer real estate loans
    
5,142
      
-
      
6,730
      
-
  
Total PCI loans
   $
9,827
     $
-
     $
12,003
     $
-
  
 
Management believed the allowance was adequate to absorb probable loan losses inherent in the loan portfolio as of
June 30, 2019.