It looks like Escallonia, which is widely sold here. I can't say which variety it is. I had a similarly coloured one years ago but it grew too big and straggly, the flowers were quite small and a dark pink. I bought Apple Blossom more recently, it tends to get some yellow leaves, maybe it's the type of soil it's growing in.
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Are you sure the white stuff is fungus, or could it be a type of lichen? If the wood is getting very old and gnarly that part which is going yellow could be attached to some dying wood. Dying wood will get fungi growing on it. It could be that part of the wood has split due to age, shrubs don't necessarily live forever.
My palm, Trachycarpus fortuneii looks like that Sue. The older leaves get a bit bashed and yellow, new ones growing from the centre are fine. It's the only palm which will survive the occasional extreme temperatures here. I grew mine from a young plug plant seedling which I got around late 1999 or early 2000, this year it's got four flower spikes!
I have a small Mahonia plant which looks yellow too, it's in poor soil near the base of an Oak tree. Some organic compost on the ground around it might help it.
