Wood Termite Damage
Termite damage is usually not that hard to spot
and you'll be looking for holes in the wood, missing sections of wood
and what looks to be like paint flaking off of the wood.
As you can see in the picture above the paint looks like it is flaking
off of the wood and could give you the illusion that there is only paint
damage.
To check for further damage you can always use a awl and try to press it
into the wood looking for soft spots.
Usually if you have some termite damage you have more termite damage so
examine the building more closely.
Exterior termite damage like this is usually easy to find because you
can visually see it, the only problem is most of the time you can't see
all of the termite damage throughout the home.
I would recommend replacing instead repairing with wood filler this
damage because it looks pretty bad.