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Note 7 - FDIC Indemnification Asset

9 Months Ended

Sep. 30, 2020

FDIC Loss Share Agreement Receivable [Text Block]

Note 7. FDIC Indemnification Asset

In connection with the FDIC-assisted acquisition of Waccamaw Bank in 2012, the Company entered into loss share agreements with the FDIC in which the FDIC agrees to cover 80% of most loan and foreclosed real estate losses and reimburse certain expenses incurred in relation to those covered assets. Loss share coverage for commercial loans expired June 30, 2017, with recoveries ending June 30, 2020. Loss share coverage on single family loans will expire June 30, 2022. The Company’s condensed statements of income include the expense on covered assets net of estimated reimbursements. The following table presents the changes in the FDIC indemnification asset and total covered loans and OREO for the periods indicated:

	*Three Months Ended September 30,*						*Nine Months Ended September 30,*
	*2020*			*2019*			*2020*			*2019*
(Amounts in thousands)
Beginning balance	$	1,943		$	4,020		$	2,883		$	5,108
Reimbursable expenses to the FDIC		-			-			-			-
Net amortization		(383	)		(719	)		(1,352	)		(1,787	)
Payments to the FDIC		38			157			67			137
Ending balance	$	1,598		$	3,458		$	1,598		$	3,458