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Loans
 6 Months Ended
Jun. 30, 2020
Loans and Leases Receivable Disclosure [Abstract]  
Loans Loans
 
The composition of the loan portfolio, by class of loan, at June 30, 2020 and December 31, 2019 was as follows:
 
 June 30, 2020December 31, 2019
(In thousands)Loan
Balance		Accrued
Interest
Receivable		Recorded
Investment		Loan
Balance		Accrued
Interest
Receivable		Recorded
Investment
Commercial, financial and agricultural *$1,736,696  $5,313  $1,742,009  $1,185,110  $4,393  $1,189,503  
Commercial real estate *1,632,625  6,830  1,639,455  1,609,413  5,571  1,614,984  
Construction real estate:      
Commercial245,339  792  246,131  233,637  826  234,463  
Mortgage105,489  261  105,750  96,574  228  96,802  
Installment1,156  4  1,160  1,488  4  1,492  
Residential real estate:      
Commercial498,697  1,311  500,008  479,081  1,339  480,420  
Mortgage1,234,017  1,951  1,235,968  1,176,316  1,381  1,177,697  
HELOC204,442  740  205,182  224,766  1,113  225,879  
Installment10,718  32  10,750  12,563  32  12,595  
Consumer1,506,434  4,620  1,511,054  1,452,375  4,314  1,456,689  
Leases28,832  13  28,845  30,081  20  30,101  
Total loans$7,204,445  $21,867  $7,226,312  $6,501,404  $19,221  $6,520,625  
* Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that are not broken out by class.

In order to support customers, Park participated in the CARES Act Paycheck Protection Program ("PPP"). Included within commercial, financial and agricultural loans are $543.1 million of PPP loans. For its assistance in making and retaining these loans, Park received an aggregate of $20.2 million in fees from the SBA, of which $2.8 million were recognized during the three months ended June 30, 2020.

Loans are shown net of deferred origination fees, costs and unearned income of $32.9 million and $16.3 million at June 30, 2020 and December 31, 2019, respectively, which represented a net deferred income position at each date. At June 30, 2020, included in the net deferred origination fees, costs and unearned income of $32.9 million were $16.8 million in net origination fees related to PPP loans. At June 30, 2020 and December 31, 2019, loans included purchase accounting adjustments of $9.2 million and $11.7 million, respectively, which represented a net deferred income position at each date. This fair market value purchase accounting adjustment related to loans which are not PCI, is expected to be recognized into interest income on a level yield basis over the remaining expected life of the loans.

Overdrawn deposit accounts of $3.7 million and $2.2 million had been reclassified to loans at June 30, 2020 and December 31, 2019, respectively, and are included in the commercial, financial and agricultural loan class above.
Credit Quality
 
The following tables present the recorded investment in nonaccrual loans, accruing TDRs, and loans past due 90 days or more and still accruing by class of loan at June 30, 2020 and December 31, 2019:
 
 June 30, 2020
(In thousands)Nonaccrual
Loans		Accruing
TDRs		Loans Past Due
90 Days or More
and Accruing		Total
Nonperforming
Loans
Commercial, financial and agricultural$21,897  $8,297  $—  $30,194  
Commercial real estate50,490  3,581  645  54,716  
Construction real estate:    
Commercial631  —  —  631  
Mortgage520  17  —  537  
Installment—  16  —  16  
Residential real estate:    
Commercial5,257  —  —  5,257  
Mortgage15,415  8,406  784  24,605  
HELOC1,790  869  14  2,673  
Installment435  1,897  —  2,332  
Consumer2,330  974  320  3,624  
Leases1,641  —  —  1,641  
Total loans$100,406  $24,057  $1,763  $126,226  
 
 December 31, 2019
(In thousands)Nonaccrual
Loans		Accruing
TDRs		Loans Past Due
90 Days or More
and Accruing		Total
Nonperforming
Loans
Commercial, financial and agricultural$26,776  $6,349  $28  $33,153  
Commercial real estate39,711  2,080  625  42,416  
Construction real estate:   
Commercial453  —  —  453  
Mortgage25  84  —  109  
Installment72  5  —  77  
Residential real estate:    
Commercial2,025  —  —  2,025  
Mortgage15,271  8,826  1,209  25,306  
HELOC2,062  1,010  44  3,116  
Installment462  1,964  —  2,426  
Consumer3,089  980  645  4,714  
Leases134  —  186  320  
Total loans$90,080  $21,298  $2,737  $114,115  
The following table provides additional information regarding those nonaccrual and accruing TDR loans that are individually evaluated for impairment and those collectively evaluated for impairment at June 30, 2020 and December 31, 2019.
 
June 30, 2020December 31, 2019
 
(In thousands)		Nonaccrual and Accruing TDRsLoans Individually Evaluated for ImpairmentLoans Collectively Evaluated for ImpairmentNonaccrual and Accruing TDRsLoans Individually Evaluated for ImpairmentLoans Collectively Evaluated for Impairment
Commercial, financial and agricultural$30,194  $30,183  $11  $33,125  $33,088  $37  
Commercial real estate54,071  54,071  —  41,791  41,791  —  
Construction real estate:
Commercial
631  631  —  453  453  —  
Mortgage
537  —  537  109—  109
Installment
16  —  16  77—  77
Residential real estate:
Commercial
5,257  5,257  —  2,025  2,025  —  
Mortgage
23,821  —  23,821  24,097  —  24,097  
HELOC
2,659  —  2,659  3,072  —  3,072  
Installment
2,332  —  2,332  2,426  —  2,426  
Consumer3,304  —  3,304  4,069  —  4,069  
Leases1,641  1,641  —  134  134  —  
Total loans$124,463  $91,783  $32,680  $111,378  $77,491  $33,887  
 
All of the loans individually evaluated for impairment were evaluated using the fair value of the collateral or the present value of expected future cash flows as the measurement method.
The following table presents loans individually evaluated for impairment by class of loan at June 30, 2020 and December 31, 2019.
 
June 30, 2020December 31, 2019
(In thousands)Unpaid Principal BalanceRecorded InvestmentAllowance for Loan Losses AllocatedUnpaid Principal BalanceRecorded InvestmentAllowance for Loan Losses Allocated
With no related allowance recorded
Commercial, financial and agricultural$16,019  $15,897  $—  $21,194  $21,010  $—  
Commercial real estate53,709  53,505  —  41,696  41,471  —  
Construction real estate:
Commercial631  631  —  453  453  —  
Residential real estate:
Commercial5,225  5,157  —  1,921  1,854  —  
Leases216  216  —  —  —  —  
With an allowance recorded
Commercial, financial and agricultural14,483  14,286  5,239  12,289  12,078  5,104  
Commercial real estate566  566  80  320  320  35  
Construction real estate:
Commercial—  —  —  —  —  —  
Residential real estate:
Commercial100  100  22  171  171  42  
Leases1,425  1,425  467  134  134  49  
Total$92,374  $91,783  $5,808  $78,178  $77,491  $5,230  
 
Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. At both June 30, 2020 and December 31, 2019, there were $0.5 million of partial charge-offs on loans individually evaluated for impairment with no related allowance recorded and $197,000 and $210,000, respectively, of partial charge-offs on loans individually evaluated for impairment that also had a specific reserve allocated.
 
The allowance for loan losses included specific reserves related to loans individually evaluated for impairment at June 30, 2020 and December 31, 2019, of $5.8 million and $5.2 million, respectively. These loans with specific reserves had a recorded investment of $16.4 million and $12.7 million at June 30, 2020 and December 31, 2019, respectively.
Interest income on nonaccrual loans individually evaluated for impairment is recognized on a cash basis only when Park expects to receive the entire recorded investment in the loans. Interest income on accruing TDRs individually evaluated for impairment continues to be recorded on an accrual basis. The following table presents the average recorded investment and interest income recognized subsequent to impairment on loans individually evaluated for impairment as of and for the three-month and six-month periods ended June 30, 2020 and 2019:

 Three Months Ended
June 30, 2020		Three Months Ended
June 30, 2019
(In thousands)Recorded Investment at June 30, 2020Average
Recorded
Investment		Interest
Income
Recognized		Recorded Investment at June 30, 2019Average
Recorded
Investment		Interest
Income
Recognized
Commercial, financial and agricultural$30,183  $29,859  $180  $19,586  $16,136  $90  
Commercial real estate54,071  49,599  409  26,461  30,050  255  
Construction real estate:
   Commercial631  493  4  2,243  2,559  10  
Residential real estate:
   Commercial5,257  5,400  78  1,874  1,909  25  
Leases1,641  506  —  91  23  —  
Total$91,783  $85,857  $671  $50,255  $50,677  $380  


 Six Months Ended
June 30, 2020		Six Months Ended
June 30, 2019
(In thousands)Recorded Investment at June 30, 2020Average
Recorded
Investment		Interest
Income
Recognized		Recorded Investment at June 30, 2019Average
Recorded
Investment		Interest
Income
Recognized
Commercial, financial and agricultural$30,183  $30,931  $384  $19,586  $15,628  $137  
Commercial real estate54,071  46,582  890  26,461  29,209  526  
Construction real estate:
   Commercial631  460  8  2,243  2,330  22  
Residential real estate:
   Commercial5,257  3,960  101  1,874  2,277  45  
Leases1,641  346  —  91  13  —  
Total$91,783  $82,279  $1,383  $50,255  $49,457  $730  
The following tables present the aging of the recorded investment in past due loans at June 30, 2020 and December 31, 2019 by class of loan. 

 June 30, 2020
(In thousands)Accruing Loans
Past Due 30-89
Days
Past Due 
Nonaccrual
Loans and Loans Past
Due 90 Days or
More and 
Accruing (1)
Total Past Due
Total Current (2)
Total Recorded
Investment
Commercial, financial and agricultural$1,887  $12,239  $14,126  $1,727,883  $1,742,009  
Commercial real estate144  1,351  1,495  1,637,960  1,639,455  
Construction real estate:     
Commercial—  25  25  246,106  246,131  
Mortgage398  —  398  105,352  105,750  
Installment14  —  14  1,146  1,160  
Residential real estate:     
Commercial152  797  949  499,059  500,008  
Mortgage6,390  8,332  14,722  1,221,246  1,235,968  
HELOC347  718  1,065  204,117  205,182  
Installment62  180  242  10,508  10,750  
Consumer3,367  902  4,269  1,506,785  1,511,054  
Leases—  26  26  28,819  28,845  
Total loans$12,761  $24,570  $37,331  $7,188,981  $7,226,312  
(1) Includes an aggregate of $1.8 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.
(2) Includes an aggregate of $77.6 million of nonaccrual loans which were current in regards to contractual principal and interest payments.

 December 31, 2019
(in thousands)Accruing Loans
Past Due 30-89
Days
Past Due 
Nonaccrual
Loans and Loans Past
Due 90 Days or
More and 
Accruing (1)
Total Past Due
Total Current (2)
Total Recorded
Investment
Commercial, financial and agricultural$582  $12,407  $12,989  $1,176,514  $1,189,503  
Commercial real estate160  1,143  1,303  1,613,681  1,614,984  
Construction real estate:    
Commercial—  —  —  234,463  234,463  
Mortgage397  —  397  96,405  96,802  
Installment24  —  24  1,468  1,492  
Residential real estate:     
Commercial—  908  908  479,512  480,420  
Mortgage12,841  9,153  21,994  1,155,703  1,177,697  
HELOC652  779  1,431  224,448  225,879  
Installment164  338  502  12,093  12,595  
Consumer6,561  1,621  8,182  1,448,507  1,456,689  
Leases368  186  554  29,547  30,101  
Total loans$21,749  $26,535  $48,284  $6,472,341  $6,520,625  
(1) Includes an aggregate of $2.7 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.
        (2) Includes an aggregate of $66.3 million of nonaccrual loans which were current in regards to contractual principal and interest payments.
Credit Quality Indicators
 
Management utilizes past due information as a credit quality indicator across the loan portfolio. Past due information at June 30, 2020 and December 31, 2019 is included in the previous tables. The past due information is the primary credit quality indicator within the following classes of loans: (1) mortgage loans and installment loans in the construction real estate segment; (2) mortgage loans, HELOC and installment loans in the residential real estate segment; and (3) consumer loans. The primary credit indicator for commercial loans is based on an internal grading system that grades all commercial loans on a scale from 1 to 8. Credit grades are continuously monitored by the responsible loan officer and adjustments are made when appropriate. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans that are pass-rated (graded a 1 through a 4) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans. Loans classified as special mention have potential weaknesses that require management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of Park’s credit position at some future date. Commercial loans graded a 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or the value of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Park will sustain some loss if the deficiencies are not corrected. Commercial loans graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Certain 6-rated loans and all 7-rated loans are placed on nonaccrual status and included within the impaired category. A loan is deemed impaired when management determines the borrower's ability to perform in accordance with the contractual loan agreement is in doubt. Any commercial loan graded an 8 (loss) is completely charged off.

The tables below present the recorded investment by loan grade at June 30, 2020 and December 31, 2019 for all commercial loans:
 
 June 30, 2020
(In thousands)5 Rated6 RatedNonaccrual and Accruing TDRs
Purchase Credit Impaired (1)
Pass-RatedRecorded
Investment
Commercial, financial and agricultural *$11,216  $—  $30,194  $453  $1,700,146  $1,742,009  
Commercial real estate *63,235  113  54,071  8,547  1,513,489  1,639,455  
Construction real estate:
Commercial—  —  631  1,022  244,478  246,131  
Residential real estate:
Commercial542  25  5,257  1,556  492,628  500,008  
Leases436  —  1,641  140  26,628  28,845  
Total commercial loans$75,429  $138  $91,794  $11,718  $3,977,369  $4,156,448  
 * Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that are not broken out by class.
(1) There were no loans acquired with deteriorated credit quality which were nonaccrual or TDRs at June 30, 2020.
 December 31, 2019
(In thousands)5 Rated6 RatedNonaccrual and Accruing TDRs
Purchase Credit Impaired (1)
Pass-RatedRecorded
Investment
Commercial, financial and agricultural *$11,981  $3  $33,125  $966  $1,143,428  $1,189,503  
Commercial real estate *6,796  945  41,791  9,182  1,556,270  1,614,984  
Construction real estate:
Commercial4,857  1  453  1,044  228,108  234,463  
Residential real estate:
Commercial3,839  30  2,025  1,754  472,772  480,420  
Leases—  —  134  523  29,444  30,101  
Total Commercial Loans$27,473  $979  $77,528  $13,469  $3,430,022  $3,549,471  
 * Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that are not broken out by class.
(1) Excludes loans acquired with deteriorated credit quality which are nonaccrual or TDRs due to additional credit deterioration or modification post acquisition. These loans had a recorded investment of $6,000 at December 31, 2019.
 
Loans and Leases Acquired with Deteriorated Credit Quality

In conjunction with the NewDominion acquisition, Park acquired loans with a book value of $277.9 million as of the July 1, 2018 acquisition date. These loans were recorded at the initial fair value of $272.8 million. Loans acquired with deteriorated credit quality with a book value of $5.1 million were recorded at the initial fair value of $4.9 million. The carrying amount of loans acquired with deteriorated credit quality at June 30, 2020 and December 31, 2019 was $2.1 million and $3.0 million, respectively, while the outstanding customer balance was $2.3 million and $3.2 million, respectively. At June 30, 2020 and December 31, 2019, an allowance for loan losses of $5,000 and $101,000, respectively, had been recognized related to the acquired impaired loans.

In conjunction with the Carolina Alliance acquisition, Park acquired loans and leases with a book value of $589.7 million as of the April 1, 2019 acquisition date. These loans and leases were recorded at the initial fair value of $578.6 million. Loans and leases acquired with deteriorated credit quality with a book value of $19.9 million were recorded at the initial fair value of $18.4 million. The carrying amount of loans and leases acquired with deteriorated credit quality at June 30, 2020 and December 31, 2019 was $10.4 million and $11.3 million, respectively, while the outstanding customer balance was $12.8 million and $13.8 million, respectively. At June 30, 2020 and December 31, 2019, an allowance for loan losses of $101,000 and $167,000, respectively, had been recognized related to the acquired impaired loans and leases.

Troubled Debt Restructurings
 
Management typically classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession to the borrower as part of a modification or in the loan renewal process. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. A court's discharge of a borrower's debt in a Chapter 7 bankruptcy is considered a concession when the borrower does not reaffirm the discharged debt.

Additionally, Park is working with borrowers impacted by the COVID-19 pandemic and providing modifications to include either interest only deferral or principal and interest deferral, in each case, for initial periods up to 90 days. As necessary, Park is making available a second 90-day interest only deferral or principal and interest deferral bringing the total potential deferral period to six months. A majority of these modifications are excluded from TDR classification under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators. In accordance with this guidance, such modified loans will be considered current and will continue to accrue interest during the deferral period.

Certain other loans which were modified during the three-month periods ended June 30, 2020 and June 30, 2019 did not meet the definition of a TDR as the modification was a delay in a payment that was considered to be insignificant. Management considers a forbearance period of up to three months or a delay in payment of up to 30 days to be insignificant. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the
restructured note. Management reviews all accruing TDRs quarterly to ensure payments continue to be made in accordance with the modified terms.

At June 30, 2020 and December 31, 2019, there were $27.3 million and $34.3 million, respectively, of TDRs included in the nonaccrual loan totals. At June 30, 2020 and December 31, 2019, $16.7 million and $23.2 million, respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured note. At June 30, 2020 and December 31, 2019, loans with a recorded investment of $24.1 million and $21.3 million, respectively, were included in accruing TDR loan totals. Management will continue to review the restructured loans and may determine it is appropriate to move certain nonaccrual TDRs to accrual status in the future.

At June 30, 2020 and December 31, 2019, Park had commitments to lend $3.3 million and $7.9 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR.
 
At June 30, 2020 and December 31, 2019, there were $2.1 million and $2.2 million, respectively, of specific reserves related to TDRs. Modifications made in 2020 and 2019 were largely the result of renewals and extending the maturity date of the loans at terms consistent with the original notes. These modifications were deemed to be TDRs primarily due to Park’s conclusion that the borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as impaired loans, and thus were also previously evaluated for impairment under ASC 310. There were no additional specific reserves recorded during either of the three-month or six-month periods ended June 30, 2020 as a result of TDRs identified in the period. There were $1,000 of additional specific reserves recorded during both the three-month and six-month periods ended June 30, 2019 as a result of TDRs identified in the period.

Quarterly, management reviews renewals/modifications of loans previously identified as TDRs to consider if it is appropriate to remove the TDR classification. If the borrower is no longer experiencing financial difficulty and the renewal/modification did not contain a concessionary interest rate or other concessionary terms and the terms of the renewal/modification are considered to be market terms based on the current risk characteristics of the borrower, management considers the potential removal of the TDR classification. If deemed appropriate, the TDR classification is removed if the borrower has complied with the terms of the loan at the date of the renewal/modification and there was a reasonable expectation that the borrower would continue to comply with the terms of the loan subsequent to the date of the renewal/modification. The majority of these TDRs were originally considered restructurings in a prior year as a result of a renewal/modification with an interest rate that was not commensurate with the risk of the underlying loan at the time of the renewal/modification. The TDR classification was removed on $884,000 of loans during the three-month and six-month periods ended June 30, 2020. There were no TDR classifications removed during the three-month period ended June 30, 2019. The TDR classification was removed on $23,000 of loans during the six-month period ended June 30, 2019.

The terms of certain other loans were modified during the three-month and six-month periods ended June 30, 2020 and June 30, 2019 that did not meet the definition of a TDR. Excluding COVID-19 related modifications, there were $0.1 million and $0.2 million of substandard commercial loans modified during the three-month and six-month periods ended June 30, 2020, respectively, which did not meet the definition of a TDR. There were no substandard commercial loans modified during the three-month and six-month periods ended June 30, 2019 which did not meet the definition of a TDR. Excluding COVID-19 related modifications, consumer loans modified during the three-month and six-month periods ended June 30, 2020 which did not meet the definition of a TDR had a total recorded investment of $39.4 million and $45.3 million, respectively. Consumer loans modified during the three-month and six-month periods ended June 30, 2019 which did not meet the definition of a TDR had a total recorded investment of $7.4 million and $13.4 million, respectively. Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds.

Park modified $386.9 million and $635.0 million of commercial loans in COVID-19 related modifications during the three-month and six-month periods ended June 30, 2020, respectively. Of the $635.0 million in commercial COVID-19 related modifications, $6.1 million were already classified as TDRs due to previous modifications and $82,000 were classified as TDRs due to the COVID-19 modification. The remaining loans met the exclusion criteria for TDR accounting either in Section 4013 of the CARES Act or in applicable interagency guidance. During the three-month and six-month periods ended June 30, 2020, Park modified $108.3 million and $113.3 million, respectively, of consumer loans in COVID-19 related modifications. Of the $113.3 million in consumer COVID-19 modifications, $1.7 million were already classified as TDRs due to previous modifications and $655,000 were classified as TDRs due to the COVID-19 modification. The remaining loans met the exclusion criteria for TDR accounting either in Section 4013 of the CARES Act or in applicable interagency guidance.
The following tables detail the number of contracts modified as TDRs during the three-month periods ended June 30, 2020 and June 30, 2019, as well as the recorded investment of these contracts at June 30, 2020 and June 30, 2019. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal.

 Three Months Ended
June 30, 2020
(In thousands)Number of
Contracts		AccruingNonaccrualTotal
Recorded
Investment
Commercial, financial and agricultural3  $82  $2  $84  
Commercial real estate2  —  1,643  1,643  
Construction real estate:    
  Commercial—  —  —  —  
  Mortgage—  —  —  —  
  Installment—  —  —  —  
Residential real estate:    
  Commercial1  —  16  16  
  Mortgage13  868  922  1,790  
  HELOC2  —  28  28  
  Installment5  108  32  140  
Consumer56  88  426  514  
Total loans82  $1,146  $3,069  $4,215  

 Three Months Ended
June 30, 2019
(In thousands)Number of
Contracts		AccruingNonaccrualTotal
Recorded
Investment
Commercial, financial and agricultural11  $1,802  $642  $2,444  
Commercial real estate2  —  780  780  
Construction real estate:    
  Commercial—  —  —  —  
  Mortgage1  71  —  71  
  Installment—  —  —  —  
Residential real estate:   
  Commercial1  —  36  36  
  Mortgage6  —  374  374  
  HELOC5  99  67  166  
  Installment8  365  45  410  
Consumer105  60  903  963  
Total loans139  $2,397  $2,847  $5,244  

Of those loans which were modified and determined to be a TDR during the three-month period ended June 30, 2020, $43,000 were on nonaccrual status at December 31, 2019. Of those loans which were modified and determined to be a TDR during the three-month period ended June 30, 2019, $0.6 million were on nonaccrual status at December 31, 2018.
The following tables detail the number of contracts modified as TDRs during the six-month periods ended June 30, 2020 and June 30, 2019, as well as the recorded investment of these contracts at June 30, 2020 and June 30, 2019. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal.

 Six Months Ended
June 30, 2020
(In thousands)Number of
Contracts		AccruingNonaccrualTotal
Recorded
Investment
Commercial, financial and agricultural7  $82  $1,074  $1,156  
Commercial real estate4  1,141  1,703  2,844  
Construction real estate:
  Commercial—  —  —  —  
  Mortgage1  10  —  10  
  Installment1  14  —  14  
Residential real estate:
  Commercial1  —  16  16  
  Mortgage19  980  1,123  2,103  
  HELOC5  3  37  40  
  Installment13  213  49  262  
Consumer113  136  539  675  
Total loans164  $2,579  $4,541  $7,120  

 Six Months Ended
June 30, 2019
(In thousands)Number of
Contracts		AccruingNonaccrualTotal
Recorded
Investment
Commercial, financial and agricultural16  $1,801  $1,099  $2,900  
Commercial real estate4  —  2,995  2,995  
Construction real estate:
  Commercial1  456  —  456  
  Mortgage1  71  —  71  
  Installment—  —  —  —  
Residential real estate:
  Commercial1  —  36  36  
  Mortgage14  54  619  673  
  HELOC8  100  136  236  
  Installment16  550  46  596  
Consumer174  60  1,159  1,219  
Total loans235  $3,092  $6,090  $9,182  

Of those loans which were modified and determined to be a TDR during the six-month period ended June 30, 2020, $0.3 million were on nonaccrual status at December 31, 2019. Of those loans which were modified and determined to be a TDR during the six-month period ended June 30, 2019, $1.3 million were on nonaccrual status at December 31, 2018.
The following tables present the recorded investment in loans which were modified as TDRs within the previous 12 months and for which there was a payment default during the three-month and six-month periods ended June 30, 2020 and June 30, 2019, respectively. For these tables, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms. The additional allowance for loan loss resulting from the defaults on TDR loans was immaterial.
 
 Three Months Ended
June 30, 2020		Three Months Ended
June 30, 2019
(In thousands)Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Commercial, financial and agricultural1  $4,043  6  $91  
Commercial real estate—  —  —  —  
Construction real estate:  
Commercial—  —  —  —  
Mortgage—  —  —  —  
Installment1  14  —  —  
Residential real estate:  
Commercial1  16  —  —  
Mortgage3  294  5  345  
HELOC2  37  5  67  
Installment2  30  2  67  
Consumer20  179  61  674  
Leases—  —  —  —  
Total loans 30  $4,613  79  $1,244  

Of the $4.6 million in modified TDRs which defaulted during the three-month period ended June 30, 2020, $4.2 million were accruing loans and $0.4 million were nonaccrual loans. Of the $1.2 million in modified TDRs which defaulted during the three-month period ended June 30, 2019, $30,000 were accruing loans and $1.2 million were nonaccrual loans.


 Six Months Ended
June 30, 2020		Six Months Ended
June 30, 2019
(In thousands)Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Commercial, financial and agricultural2  $4,051  7  $160  
Commercial real estate—  —  —  —  
Construction real estate:
Commercial—  —  —  —  
Mortgage—  —  —  —  
Installment1  14  —  —  
Residential real estate:
Commercial1  16  —  —  
Mortgage3  294  7  382  
HELOC2  37  5  67  
Installment2  30  2  67  
Consumer23  218  69  720  
Leases—  —  —  —  
Total loans 34  $4,660  90  $1,396  

Of the $4.7 million in modified TDRs which defaulted during the six-month period ended June 30, 2020, $4.2 million were accruing loans and $0.5 million were nonaccrual loans. Of the $1.4 million in modified TDRs which defaulted during the six-month period ended June 30, 2019, $30,000 were accruing loans and $1.4 million were nonaccrual loans.