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Loans
 12 Months Ended
Dec. 31, 2020
Loans and Leases Receivable Disclosure [Abstract]  
Loans Loans
The composition of the loan portfolio, by class of loan, as of December 31, 2020 and December 31, 2019 was as follows:

12/31/202012/31/2019
(In thousands)Loan BalanceAccrued Interest ReceivableRecorded InvestmentLoan BalanceAccrued Interest ReceivableRecorded Investment
Commercial, financial and agricultural *
$1,588,989 $6,528 $1,595,517 $1,185,110 $4,393 $1,189,503 
Commercial real estate *
1,748,189 6,017 1,754,206 1,609,413 5,571 1,614,984 
Construction real estate:
Commercial
226,991 572227,563 233,637 826234,463 
Mortgage
115,492 232115,724 96,574 22896,802 
Installment
938 3941 1,488 41,492 
Residential real estate:
Commercial
526,222 1,161 527,383 479,081 1,339 480,420 
Mortgage
1,096,358 947 1,097,305 1,176,316 1,381 1,177,697 
HELOC
182,028 647 182,675 224,766 1,113 225,879 
Installment
8,436 228,458 12,563 3212,595 
Consumer
1,659,704 4,510 1,664,214 1,452,375 4,314 1,456,689 
Leases
24,438 1424,452 30,081 2030,101 
Total loans
$7,177,785 $20,653 $7,198,438 $6,501,404 $19,221 $6,520,625 
* Included within commercial, financial and agricultural loans and commercial real estate loans was an immaterial amount of consumer loans that were not broken out by class.
In order to support customers, Park participated in the CARES Act Paycheck Protection Program ("PPP"), approving and funding 4,439 loans totaling $543.1 million under the PPP. Included within commercial, financial and agricultural loans are $337.1 million of PPP loans at December 31, 2020. For its assistance in originating and retaining these loans, Park received an aggregate of $20.2 million in fees from the SBA. Of this $20.2 million of PPP fees, Park recognized $13.7 million during the year ended December 31, 2020.

Loans are shown net of deferred origination fees, costs and unearned income of $23.6 million at December 31, 2020 and of $16.3 million at December 31, 2019, which represented a net deferred income position in both years. At December 31, 2020, included in the net deferred origination fees, costs and unearned income of $23.6 million were $6.5 million in net origination fees related to PPP loans. At December 31, 2020 and December 31, 2019, loans included purchase accounting adjustments of $7.2 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 $2.0 million and $2.2 million had been reclassified to loans at December 31, 2020 and December 31, 2019, respectively, and are included in the commercial, financial and agricultural loan class above.
 
Credit Quality
The following table presents the recorded investment in nonaccrual loans, accruing TDRs, and loans past due 90 days or more and still accruing by class of loan as of December 31, 2020 and December 31, 2019:
 
12/31/2020
(In thousands)Nonaccrual LoansAccruing TDRsLoans Past Due 90 Days or More and AccruingTotal Nonperforming Loans
Commercial, financial and agricultural$23,261 $5,619 $— $28,880 
Commercial real estate67,426 2,931 377 70,734 
Construction real estate:
Commercial
3,110 — — 3,110 
Mortgage
— 30 — 30 
Installment
14 1 — 15 
Residential real estate:
Commercial
4,304 253 — 4,557 
Mortgage
14,016 8,400 416 22,832 
HELOC
1,286 909 77 2,272 
Installment
184 1,728 — 1,912 
Consumer2,172 1,017 724 3,913 
Leases1,595 — — 1,595 
Total loans$117,368 $20,888 $1,594 $139,850 
12/31/2019
(In thousands)Nonaccrual LoansAccruing TDRsLoans Past Due 90 Days or More and AccruingTotal 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:
Commercial
453 — — 453 
Mortgage
25 84 — 109 
Installment
72 5 — 77 
Residential real estate:
Commercial
2,025 — — 2,025 
Mortgage
15,271 8,826 1,209 25,306 
HELOC
2,062 1,010 44 3,116 
Installment
462 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 as of December 31, 2020 and December 31, 2019.
 
12/31/202012/31/2019
 
(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$28,880 $28,836 $44 $33,125 $33,088 $37 
Commercial real estate70,357 70,357 — 41,791 41,791 — 
Construction real estate:
Commercial
3,110 3,110 — 453 453 — 
Mortgage
30 — 30 109— 109
Installment
15 — 15 77— 77
Residential real estate:
Commercial
4,557 4,557 — 2,025 2,025 — 
Mortgage
22,416 — 22,416 24,097 — 24,097 
HELOC
2,195 — 2,195 3,072 — 3,072 
Installment
1,912 — 1,912 2,426 — 2,426 
Consumer3,189 — 3,189 4,069 — 4,069 
Leases1,595 1,595 — 134 134 — 
Total loans$138,256 $108,455 $29,801 $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 as of December 31, 2020 and December 31, 2019.
 
12/31/202012/31/2019
(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$23,316 $22,970 $— $21,194 $21,010 $— 
Commercial real estate63,639 63,467 — 41,696 41,471 — 
Construction real estate:
Commercial3,110 3,110 — 453 453 — 
Residential real estate:
Commercial4,522 4,448 — 1,921 1,854 — 
Leases568 568 — — — — 
With an allowance recorded
Commercial, financial and agricultural5,881 5,866 3,758 12,289 12,078 5,104 
Commercial real estate6,890 6,890 1,316 320 320 35 
Construction real estate:
Commercial— — — — — — 
Residential real estate:
Commercial109 109 16 171 171 42 
Leases1,027 1,027 344 134 134 49 
Total$109,062 $108,455 $5,434 $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 December 31, 2020 and December 31, 2019, there were $0.6 million and $0.5 million, respectively, of partial charge-offs on loans individually evaluated for impairment with no related allowance recorded and $16,000 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 December 31, 2020 and 2019 of $5.4 million and $5.2 million, respectively. These loans with specific reserves had a recorded investment of $13.9 million and $12.7 million as of December 31, 2020 and 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 years ended December 31, 2020, 2019, and 2018:
  
Year ended December 31, 2020
(In thousands)Recorded Investment as of December 31, 2020Average Recorded InvestmentInterest Income Recognized
Commercial, financial and agricultural$28,836 $30,280 $735 
Commercial real estate70,357 55,279 1,890 
Construction real estate:
   Commercial3,110 1,291 50 
Residential real estate:
   Commercial4,557 4,329 204 
Consumer— — — 
Leases1,595 1,115 — 
Total$108,455 $92,294 $2,879 

Year ended December 31, 2019
(In thousands)Recorded Investment as of December 31, 2019Average Recorded InvestmentInterest Income Recognized
 Commercial, financial and agricultural$33,088 $21,415 $527 
 Commercial real estate41,791 32,132 1,241 
 Construction real estate:
     Commercial453 1,987 26
 Residential real estate:
     Commercial2,025 2,175 99 
 Consumer— — — 
Leases134 59 — 
Total$77,491 $57,768 $1,893 
Year ended December 31, 2018
(In thousands)Recorded Investment as of December 31, 2018Average Recorded InvestmentInterest Income Recognized
 Commercial, financial and agricultural$15,120 $21,000 $695 
 Commercial real estate28,426 23,024 1,047
 Construction real estate:
     Commercial1,866 1,709 34
 Residential real estate:
     Commercial2,732 5,308 114 
 Consumer— — — 
Leases— — — 
Total$48,144 $51,041 $1,890 

The following tables present the aging of the recorded investment in past due loans as of December 31, 2020 and December 31, 2019 by class of loan.

12/31/2020
(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$7,372 $13,968 $21,340 $1,574,177 $1,595,517 
Commercial real estate82 972 1,054 1,753,152 1,754,206 
Construction real estate:
Commercial— 39 39 227,524 227,563 
Mortgage77 — 77 115,647 115,724 
Installment12 — 12 929 941 
Residential real estate:
Commercial17 493 510 526,873 527,383 
Mortgage9,538 7,814 17,352 1,079,953 1,097,305 
HELOC805 810 1,615 181,060 182,675 
Installment67 71 138 8,320 8,458 
Consumer5,496 1,213 6,709 1,657,505 1,664,214 
Leases186 984 1,170 23,282 24,452 
Total loans$23,652 $26,364 $50,016 $7,148,422 $7,198,438 
(1) Includes an aggregate of $1.6 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans.
(2) Includes an aggregate of $92.6 million of nonaccrual loans which are current in regards to contractual principal and interest payments.
12/31/2019
(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— 39796,405 96,802 
Installment24—241,468 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 are past due, nonaccrual loans.
(2) Includes an aggregate of $66.3 million of nonaccrual loans which are 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 as of December 31, 2020 and 2019 is included in the tables above. 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 December 31, 2020 and December 31, 2019 for all commercial loans:
 
12/31/2020
(In thousands)5 Rated6 RatedNonaccrual and Accruing TDRs
Purchased Credit Impaired (1)
Pass-RatedRecorded
Investment
Commercial, financial and agricultural*$14,638 $— $28,880 $337 $1,551,662 $1,595,517 
Commercial real estate*87,439 117 70,357 7,461 1,588,832 $1,754,206 
Construction real estate:
  Commercial164 — 3,110 1,002 223,287 $227,563 
Residential real estate:
  Commercial798 22 4,557 1,510 520,496 $527,383 
Leases331 — 1,595 112 22,414 $24,452 
Total Commercial Loans$103,370 $139 $108,499 $10,422 $3,906,691 $4,129,121 
* Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.
(1) There were no loans acquired with deteriorated credit quality which were nonaccrual or TDRs at December 31, 2020.

12/31/2019
(In thousands)5 Rated6 RatedNonaccrual and Accruing TDRs
Purchased 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 commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were 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 December 31, 2020 and December 31, 2019 was $1.6 million and $3.0 million, respectively, while the outstanding customer balance was $1.7 million and $3.2 million, respectively. At December 31, 2020 and December 31, 2019, an allowance for loan losses of $1,000 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 December 31, 2020 and December 31, 2019 was $9.5 million and $11.3 million, respectively, while the outstanding customer balance was $11.8 million and $13.8 million, respectively. At December 31, 2020 and December 31, 2019, an allowance for loan losses of $166,000 and $167,000, respectively, had been recognized related to the acquired impaired loans.
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 loans which were modified during the years ended December 31, 2020 and December 31, 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 December 31, 2020 and 2019, there were $25.8 million and $34.3 million, respectively, of TDRs included in the nonaccrual loan totals. At December 31, 2020 and 2019, $12.9 million and $23.2 million, respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured notes. At December 31, 2020 and 2019, loans with a recorded investment of $20.9 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 December 31, 2020 and 2019, Park had commitments to lend $6.7 million and $7.9 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR.

At December 31, 2020 and 2019, there were $0.2 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.
Additional specific reserves of $7,000 were recorded during the year ended December 31, 2020, as a result of TDRs identified in the 2020 year. Additional specific reserves of $1,300 were recorded during the year ended December 31, 2019, as a result of TDRs identified in the 2019 year. Additional specific reserves of $0.2 million were recorded during the year ended December 31, 2018, as a result of TDRs identified in the 2018 year.

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. During the years ended December 31, 2020 and 2019, Park removed the TDR classification on $2.3 million and $38,000, respectively, of loans that met the requirements discussed above.
The terms of certain other loans were modified during the years ended December 31, 2020 and 2019 that did not meet the definition of a TDR. Excluding COVID-19 related modifications, there were $0.2 million of substandard commercial loans modified during the year ended December 31, 2020 which did not meet the definition of a TDR. There were $0.6 million of substandard commercial loans modified during the year ended December 31, 2019 which did not meet the definition of a TDR.
Excluding COVID-19 related modifications, consumer loans modified during 2020 which did not meet the definition of a TDR had a total recorded investment as of December 31, 2020 of $57.9 million. Consumer loans modified during 2019 which did not meet the definition of a TDR had a total recorded investment as of December 31, 2019 of $36.2 million. Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds.

During the year ended December 31, 2020, Park modified 5,005 consumer loans, with an aggregate balance of $103.5 million, and modified 1,399 commercial loans, with an aggregate balance of $563.7 million, in each case related to a hardship
caused by the COVID-19 pandemic and responses thereto. Of the $103.5 million in consumer COVID-19 related
modifications, $2.1 million were already classified as TDRs due to previous modifications and $949,000 were classified as
TDRs due to the COVID-19 modification. Of the $563.7 million in commercial COVID-19 related modifications, $6.3 million
were already classified as TDRs due to previous modifications and $109,000 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 years ended December 31, 2020, 2019 and 2018 as well as the recorded investment of these contracts at December 31, 2020, 2019, and 2018. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal.

Year ended
December 31, 2020
(In thousands)Number of ContractsAccruingNonaccrualRecorded Investment
Commercial, financial and agricultural12 $107 $3,706 $3,813 
Commercial real estate9 — 3,235 3,235 
Construction real estate:
Commercial— — — — 
Mortgage1 26 — 26 
Installment1 — 14 14 
Residential real estate:
Commercial3 153 3 156 
Mortgage27 888 1,068 1,956 
HELOC7 14 52 66 
Installment18 163 65 228 
Consumer214 218 634 852 
Total loans292$1,569 $8,777 $10,346 
Year ended
December 31, 2019
(In thousands)Number of ContractsAccruingNonaccrualRecorded Investment
Commercial, financial and agricultural30$6,040 $7,821 $13,861 
Commercial real estate8415 7,855 8,270 
Construction real estate:
Commercial3 — 415 415 
Mortgage2 77 — 77 
Installment— — — — 
Residential real estate:
Commercial3— 100 100 
Mortgage21535 589 1,124 
HELOC18126 234 360 
Installment341,047 28 1,075 
Consumer324225 1,166 1,391 
Total loans443$8,465 $18,208 $26,673 
 
Year ended
December 31, 2018
(In thousands)Number of ContractsAccruingNonaccrualRecorded Investment
Commercial, financial and agricultural21$28 $829 $857 
Commercial real estate17414 3,172 3,586 
Construction real estate:
Commercial1— — — 
Mortgage— — — — 
Installment2 10 — 10 
Residential real estate:
Commercial354 363 417 
Mortgage25842 854 1,696 
HELOC21558 86 644 
Installment19459 69 528 
Consumer283204 1,249 1,453 
Total loans392$2,569 $6,622 $9,191 
 
Of those loans which were modified and determined to be a TDR during the year ended December 31, 2020, $0.4 million were on nonaccrual status as of December 31, 2019. Of those loans which were modified and determined to be a TDR during the year ended December 31, 2019, $2.1 million were on nonaccrual status as of December 31, 2018. Of those loans which were modified and determined to be a TDR during the year ended December 31, 2018, $0.5 million were on nonaccrual status as of December 31, 2017.

The following table presents the recorded investment in financing receivables which were modified as TDRs within the previous 12 months and for which there was a payment default during the year ended December 31, 2020, December 31, 2019, and December 31, 2018. For this table, 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.
 
Year ended
December 31, 2020		Year ended
December 31, 2019		Year ended
December 31, 2018
(In thousands)Number of ContractsRecorded InvestmentNumber of ContractsRecorded InvestmentNumber of ContractsRecorded Investment
Commercial, financial and agricultural4 $2,776 1 $20 3 $104 
Commercial real estate1 223 — — — — 
Construction real estate:
Commercial— — — — — — 
Mortgage— — — — — — 
Installment1 14 — — — — 
Residential real estate:
Commercial1 3 — — — — 
Mortgage11 993 7 665 8 518 
HELOC— — 6 141 2 32 
Installment3 32 — — 1 29 
Consumer34 360 56 539 59 636 
Leases— — — — — — 
Total loans55 $4,401 $70 $1,365 73 $1,319 

Of the $4.4 million in modified TDRs which defaulted during the year ended December 31, 2020, $706,000 were accruing loans and $3.7 million were nonaccrual loans. Of the $1.4 million in modified TDRs which defaulted during the year ended December 31, 2019, $350,000 were accruing loans and $1.0 million were nonaccrual loans. Of the $1.3 million in modified TDRs which defaulted during the year ended December 31, 2018, $86,000 were accruing loans and $1.2 million were nonaccrual loans.
 
Certain of the Corporation’s executive officers, directors and related entities of directors are loan customers of PNB. As of December 31, 2020 and 2019, credit exposure aggregating approximately $51.3 million and $44.3 million, respectively, was outstanding to such parties. Of this total exposure, approximately $32.0 million and $28.7 million was outstanding at December 31, 2020 and 2019, respectively, with the remaining balance representing available credit. During 2020, new loans and advances on existing loans were made to these executive officers, directors and related entities of directors totaling $0.6 million and $12.4 million, respectively. These extensions of credit were offset by principal payments of $9.7 million. During 2019, new loans and advances on existing loans were $9.2 million and $8.9 million, respectively. These extensions of credit were offset by principal payments of $15.3 million.