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Note 5 - Allowance for Loan Losses
 9 Months Ended
Sep. 30, 2017
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:
 
   
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
  
 
 
   
Three Months Ended September 30, 2016
  
(Amounts in thousands)
  
Commercial
    
Consumer Real Estate
    
Consumer and Other
    
Total
Allowance
  
Allowance, excluding PCI
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
13,689
     $
6,625
     $
773
     $
21,087
  
(Recovery of) provision for loan losses
charged to operations
    
(726
 )    
(575
 )    
147
      
(1,154
 )
Charge-offs
    
(272
 )    
(207
 )    
(293
 )    
(772
 )
Recoveries
    
295
      
89
      
76
      
460
  
Net recoveries (charge-offs)
    
23
      
(118
 )    
(217
 )    
(312
 )
Ending balance
   $
12,986
     $
5,932
     $
703
     $
19,621
  
                                 
PCI allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
-
     $
12
     $
-
     $
12
  
Recovery of loan losses
    
-
      
-
      
-
      
-
  
Benefit attributable to the FDIC
indemnification asset
    
-
      
-
      
-
      
-
  
Recovery of loan losses
charged to operations
    
-
      
-
      
-
      
-
  
Recovery of loan losses recorded through the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Ending balance
   $
-
     $
12
     $
-
     $
12
  
                                 
Total allowance
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
13,689
     $
6,637
     $
773
     $
21,099
  
(Recovery of) provision for loan losses
    
(726
 )    
(575
 )    
147
      
(1,154
 )
Benefit attributable to the FDIC
indemnification asset
    
-
      
-
      
-
      
-
  
(Recovery of) provision for loan losses
charged to operations
    
(726
 )    
(575
 )    
147
      
(1,154
 )
Recovery of loan losses recorded through the FDIC indemnification asset
    
-
      
-
      
-
      
-
  
Charge-offs
    
(272
 )    
(207
 )    
(293
 )    
(772
 )
Recoveries
    
295
      
89
      
76
      
460
  
Net recoveries (charge-offs)
    
23
      
(118
 )    
(217
 )    
(312
 )
Ending balance
   $
12,986
     $
5,944
     $
703
     $
19,633
  
 
   
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
  
 
   
Nine Months Ended September 30, 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
  
(Recovery of) provision for loan losses
charged to operations
    
(200
 )    
436
      
560
      
796
  
Charge-offs
    
(747
 )    
(1,135
 )    
(809
 )    
(2,691
 )
Recoveries
    
800
      
275
      
262
      
1,337
  
Net recoveries (charge-offs)
    
53
      
(860
 )    
(547
 )    
(1,354
 )
Ending balance
   $
12,986
     $
5,932
     $
703
     $
19,621
  
                                 
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
  
(Recovery of) provision for loan losses
    
(200
 )    
394
      
560
      
754
  
Benefit attributable to the FDIC
indemnification asset
    
-
      
1
      
-
      
1
  
(Recovery of) provision for loan losses
charged to operations
    
(200
 )    
395
      
560
      
755
  
Recovery of loan losses recorded through the FDIC indemnification asset
    
-
      
(1
 )    
-
      
(1
 )
Charge-offs
    
(747
 )    
(1,135
 )    
(809
 )    
(2,691
 )
Recoveries
    
800
      
275
      
262
      
1,337
  
Net recoveries (charge-offs)
    
53
      
(860
 )    
(547
 )    
(1,354
 )
Ending balance
   $
12,986
     $
5,944
     $
703
     $
19,633
  
 
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, 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
   $
-
     $
-
     $
72,293
     $
1,099
  
Commercial and industrial
    
2,400
      
262
      
87,782
      
478
  
Multi-family residential
    
254
      
-
      
125,743
      
1,133
  
Single family non-owner occupied
    
1,103
      
69
      
140,150
      
2,308
  
Non-farm, non-residential
    
2,561
      
325
      
606,773
      
6,706
  
Agricultural
    
-
      
-
      
6,096
      
44
  
Farmland
    
940
      
50
      
26,957
      
130
  
Total commercial loans
    
7,258
      
706
      
1,065,794
      
11,898
  
Consumer real estate loans
                                
Home equity lines
    
-
      
-
      
116,468
      
825
  
Single family owner occupied
    
8,259
      
754
      
496,264
      
3,852
  
Owner occupied construction
    
-
      
-
      
47,034
      
376
  
Total consumer real estate loans
    
8,259
      
754
      
659,766
      
5,053
  
Consumer and other loans
                                
Consumer loans
    
-
      
-
      
70,695
      
795
  
Other
    
-
      
-
      
4,856
      
-
  
Total consumer and other loans
    
-
      
-
      
75,551
      
795
  
Total loans, excluding PCI loans
   $
15,517
     $
1,460
     $
1,801,111
     $
17,746
  
 
   
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:
 
     
September 30, 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
   $
452
     $
-
     $
260
     $
-
  
Peoples commercial
    
4,159
      
-
      
4,491
      
-
  
Other
    
1,011
      
-
      
1,095
      
-
  
Total commercial loans
    
5,622
      
-
      
5,846
      
-
  
Consumer real estate loans
                                
Waccamaw serviced home equity lines
    
13,270
      
-
      
20,178
      
-
  
Waccamaw residential
    
1,181
      
-
      
1,320
      
-
  
Peoples residential
    
1,020
      
-
      
1,085
      
12
  
Total consumer real estate loans
    
15,471
      
-
      
22,583
      
12
  
Total PCI loans
   $
21,093
     $
-
     $
28,429
     $
12
  
 
Management believed the allowance was adequate to absorb probable loan losses inherent in the loan portfolio as of
September 30, 2017.