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Note 5 - Allowance for Loan Losses
 9 Months Ended
Sep. 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
September 30, 2019.
 
   
Three Months Ended September 30, 2019
  
(Amounts in thousands)
  
Commercial
    
Consumer Real
Estate
    
Consumer and
Other
    
Total
Allowance
  
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
10,215
     $
6,881
     $
1,444
     $
18,540
  
Provision for (Recovery of) loan losses charged to operations
    
203
      
(338
 )    
810
      
675
  
Charge-offs
    
(159
 )    
(253
 )    
(552
 )    
(964
 )
Recoveries
    
40
      
96
      
106
      
242
  
Net charge-offs
    
(119
 )    
(157
 )    
(446
 )    
(722
 )
Ending balance
   $
10,299
     $
6,386
     $
1,808
     $
18,493
  
 
   
Nine Months Ended September 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
    
1,359
      
411
      
1,710
      
3,480
  
Charge-offs
    
(2,165
 )    
(1,203
 )    
(1,332
 )    
(4,700
 )
Recoveries
    
606
      
446
      
394
      
1,446
  
Net charge-offs
    
(1,559
 )    
(757
 )    
(938
 )    
(3,254
 )
Ending balance
   $
10,299
     $
6,386
     $
1,808
     $
18,493
  
 
   
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
  
 
   
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
  
 
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, 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
   $
-
     $
-
     $
60,876
     $
433
  
Commercial and industrial
    
-
      
-
      
93,627
      
654
  
Multi-family residential
    
-
      
-
      
96,274
      
949
  
Single family non-owner occupied
    
-
      
-
      
134,129
      
1,466
  
Non-farm, non-residential
    
3,115
      
301
      
577,994
      
6,178
  
Agricultural
    
-
      
-
      
9,429
      
133
  
Farmland
    
502
      
-
      
16,226
      
186
  
Total commercial loans
    
3,617
      
301
      
988,555
      
9,999
  
Consumer real estate loans
                                
Home equity lines
    
-
      
-
      
94,537
      
701
  
Single family owner occupied
    
2,664
      
356
      
484,252
      
5,213
  
Owner occupied construction
    
-
      
-
      
14,872
      
116
  
Total consumer real estate loans
    
2,664
      
356
      
593,661
      
6,030
  
Consumer and other loans
                                
Consumer loans
    
-
      
-
      
92,027
      
1,807
  
Other
    
-
      
-
      
4,540
      
-
  
Total consumer and other loans
    
-
      
-
      
96,567
      
1,807
  
Total loans, excluding PCI loans
   $
6,281
     $
657
     $
1,678,783
     $
17,836
  
 
   
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:
 
   
September 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
    
4,352
      
-
      
4,405
      
-
  
Other
    
364
      
-
      
868
      
-
  
Total commercial loans
    
4,716
      
-
      
5,273
      
-
  
Consumer real estate loans
                                
Waccamaw serviced home equity lines
    
2,843
      
-
      
5,017
      
-
  
Waccamaw residential
    
626
      
-
      
788
      
-
  
Peoples residential
    
867
      
-
      
925
      
-
  
Total consumer real estate loans
    
4,336
      
-
      
6,730
      
-
  
Total PCI loans
   $
9,052
     $
-
     $
12,003
     $
-
  
 
Management believed the allowance was adequate to absorb probable loan losses inherent in the loan portfolio as of
September 30, 2019.