Loans (Tables)

3 Months Ended

Mar. 31, 2021

Loans and Leases Receivable Disclosure [Line Items]

Composition Of Loan Portfolio By Class Of Loan

The composition of the loan portfolio, by class of loan, at March 31, 2021 and December 31, 2020 was as follows:

	March 31, 2021		December 31, 2020
(In thousands)	Amortized Cost		Amortized Cost		Accrued Interest Receivable		Recorded Investment
Commercial, financial and agricultural: (1)			$	1,588,989	$	6,528	$	1,595,517
Commercial, financial and agricultural (1)	$	1,198,615	(2)		(2)		(2)
PPP loans	386,990		(2)		(2)		(2)
Overdrafts	2,373		(2)		(2)		(2)
Commercial real estate (1)	1,756,921		1,748,189		6,017		1,754,206
Construction real estate:
Commercial	223,318		226,991		572		227,563
Retail	114,110		116,430		235		116,665
Residential real estate:
Commercial	541,968		526,222		1,161		527,383
Mortgage	1,077,696		1,096,358		947		1,097,305
HELOC	171,388		182,028		647		182,675
Installment	7,601		8,436		22		8,458
Consumer:			1,659,704		4,510		1,664,214
Consumer	1,657,874		(2)		(2)		(2)
Guardian ("GFSC")	5,225		(2)		(2)		(2)
Check loans	2,109		(2)		(2)		(2)
Leases	22,557		24,438		14		24,452
Total	$	7,168,745	$	7,177,785	$	20,653	$	7,198,438
Allowance for credit losses	(86,886)		(85,675)
Net loans	$	7,081,859	$	7,092,110

(1) Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

(2) Results for reporting periods beginning after January 1, 2021 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. Category was not broken out as a separate class at December 31, 2020.

Recorded Investment In Nonaccrual Restructured And Loans Past Due 90 Days Or More And Accruing

The following table presents the amortized cost of nonaccrual loans, accruing TDRs, and loans past due 90 days or more and still accruing, by class of loan, at March 31, 2021:

	March 31, 2021
(In thousands)	Nonaccrual Loans		Accruing TDRs		Loans Past Due 90 Days  or More and Accruing		Total Nonperforming Loans
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	21,121	$	590	$	—	$	21,711
PPP loans	—		—		18		18
Overdrafts	—		—		—		—
Commercial real estate	66,353		2,545		24		68,922
Construction real estate:
Commercial	2,962		—		—		2,962
Retail	13		28		—		41
Residential real estate:
Commercial	5,119		284		—		5,403
Mortgage	14,090		7,806		491		22,387
HELOC	1,438		825		—		2,263
Installment	185		1,772		—		1,957
Consumer:
Consumer	1,754		949		239		2,942
GFSC	198		18		30		246
Check loans	—		—		—		—
Leases	1,475		—		—		1,475
Total loans	$	114,708	$	14,817	$	802	$	130,327

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, at December 31, 2020:

	December 31, 2020
(In thousands)	Nonaccrual Loans		Accruing TDRs		Loans Past Due 90 Days or More and Accruing		Total Nonperforming Loans
Commercial, financial and agricultural	$	23,261	$	5,619	$	—	$	28,880
Commercial real estate	67,426		2,931		377		70,734
Construction real estate:
Commercial	3,110		—		—		3,110
Mortgage	14		31		—		45
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
Consumer	2,172		1,017		724		3,913
Leases	1,595		—		—		1,595
Total loans	$	117,368	$	20,888	$	1,594	$	139,850

Financing Receivable, Nonaccrual

The following table provides additional detail on nonaccrual loans and the related ACL, by class of loan, at March 31, 2021:

	March 31, 2021
(In thousands)	Nonaccrual Loans With No ACL		Nonaccrual Loans With an ACL		Related ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	15,166	$	5,955	$	4,276
PPP loans	—		—		—
Overdrafts	—		—		—
Commercial real estate	59,563		6,790		384
Construction real estate:
Commercial	2,962		—		—
Retail	—		13		—
Residential real estate:
Commercial	4,815		304		22
Mortgage	—		14,090		136
HELOC	—		1,438		194
Installment	—		185		39
Consumer
Consumer	—		1,754		570
GFSC	—		198		23
Check loans	—		—		—
Leases	558		917		232
Total loans	$	83,064	$	31,644	$	5,876

Schedule of impaired financing receivables additional info

The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2020:

	12/31/2020
(In thousands)	Unpaid Principal Balance		Recorded Investment		ACL Allocated
With no related allowance recorded
Commercial, financial and agricultural	$	23,316	$	22,970	$	—
Commercial real estate	63,639		63,467		—
Construction real estate:
Commercial	3,110		3,110		—
Residential real estate:
Commercial	4,522		4,448		—
Leases	568		568		—
With an allowance recorded
Commercial, financial and agricultural	5,881		5,866		3,758
Commercial real estate	6,890		6,890		1,316
Construction real estate:
Commercial	—		—		—
Residential real estate:
Commercial	109		109		16
Leases	1,027		1,027		344
Total	$	109,062	$	108,455	$	5,434

The following table provides the amortized cost basis of collateral-dependent loans by class of loan, as of March 31, 2021:

	March 31, 2021
(In thousands)	Real Estate		Business Assets		Other		Total
Commercial, financial and agricultural
Commercial, financial and agricultural	$	8,482	$	12,288	$	1,204	$	21,974
Commercial real estate	67,253		8,482		60		75,795
Construction real estate:
Commercial	3,946		—		—		3,946
Residential real estate:
Commercial	6,880		—		—		6,880
Mortgage	383		—		—		383
HELOC	136		—		—		136
Leases	—		1,577		—		1,577
Total loans	$	87,080	$	22,347	$	1,264	$	110,691

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 interest income recognized on nonaccrual loans for the three-month period ended March 31, 2021:

(In thousands)	Interest Income Recognized
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	57
PPP loans	—
Overdrafts	—
Commercial real estate	515
Construction real estate:
Commercial	33
Retail	1
Residential real estate:
Commercial	46
Mortgage	79
HELOC	4
Installment	1
Consumer:
Consumer	23
GFSC	5
Check loans	—
Leases	20
Total loans	$	784

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 months ended March 31, 2020:

			Three months ended March 31, 2020
(In thousands)	Recorded Investment as of March 31, 2020		Average Recorded Investment		Interest Income Recognized
Commercial, financial and agricultural	$	29,542	$	31,657	$	204
Commercial real estate	50,147		44,457		481
Construction real estate:
Commercial	452		424		4
Residential real estate:
Commercial	5,581		2,925		23
Leases	129		132		—
Total	$	85,851	$	79,595	$	712

Financing Receivable, Past Due

The following table presents the aging of the amortized cost in past due loans at March 31, 2021 by class of loan:

	March 31, 2021
(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  Amortized Cost
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	4,197	$	11,328	$	15,525	$	1,183,090	$	1,198,615
PPP loans	—		18		18		386,972		386,990
Overdrafts	—		—		—		2,373		2,373
Commercial real estate	2,099		795		2,894		1,754,027		1,756,921
Construction real estate:
Commercial	—		25		25		223,293		223,318
Retail	—		—		—		114,110		114,110
Residential real estate:
Commercial	16		395		411		541,557		541,968
Mortgage	4,491		6,902		11,393		1,066,303		1,077,696
HELOC	57		663		720		170,668		171,388
Installment	71		68		139		7,462		7,601
Consumer:
Consumer	1,854		543		2,397		1,655,477		1,657,874
GFSC	241		160		401		4,824		5,225
Check loans	6		—		6		2,103		2,109
Leases	133		41		174		22,383		22,557
Total loans	$	13,165	$	20,938	$	34,103	$	7,134,642	$	7,168,745

(1) Includes an aggregate of $0.8 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.

(2) Includes an aggregate of $94.6 million of nonaccrual loans which were current in regards to contractual principal and interest payments.

The following table presents the aging of the recorded investment in past due loans at December 31, 2020 by class of loan:

	December 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 estate	82		972		1,054		1,753,152		1,754,206
Construction real estate:
Commercial	—		39		39		227,524		227,563
Mortgage	77		—		77		115,647		115,724
Installment	12		—		12		929		941
Residential real estate:
Commercial	17		493		510		526,873		527,383
Mortgage	9,538		7,814		17,352		1,079,953		1,097,305
HELOC	805		810		1,615		181,060		182,675
Installment	67		71		138		8,320		8,458
Consumer	5,496		1,213		6,709		1,657,505		1,664,214
Leases	186		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 loans were past due nonaccrual loans.

    (2) Includes an aggregate of $92.6 million of nonaccrual loans which were current in regards to contractual principal and interest payments.

Financing Receivable Credit Quality Indicators

Based on the most recent analysis performed, the risk category of loans by class of loans as of March 31, 2021 follows:

March 31, 2021	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass	$	64,238	$	274,617	$	152,264	$	81,010	$	57,500	$	101,673	$	431,548	$	1,162,850
Special Mention	—		2,650		906		485		675		48		9,612		14,376
Substandard	671		983		2,110		2,665		735		7,750		797		15,711
Doubtful	1,490		34		—		240		2,028		1,386		500		5,678
Total	$	66,399	$	278,284	$	155,280	$	84,400	$	60,938	$	110,857	$	442,457	$	1,198,615

Commercial, financial and agricultural: PPP
Risk rating
Pass	$	198,993	$	187,997	$	—	$	—	$	—	$	—	$	—	$	386,990
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	$	198,993	$	187,997	$	—	$	—	$	—	$	—	$	—	$	386,990

Commercial real estate (1)
Risk rating
Pass	$	78,310	$	461,291	$	284,715	$	203,496	$	132,084	$	419,891	$	14,667	$	1,594,454
Special Mention	272		8,999		36,259		9,666		8,265		24,458		3,589		91,508
Substandard	—		5,656		15,227		4,900		15,347		17,835		536		59,501
Doubtful	—		—		—		6,258		—		5,200		—		11,458
Total	$	78,582	$	475,946	$	336,201	$	224,320	$	155,696	$	467,384	$	18,792	$	1,756,921

March 31, 2021	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Construction real estate: Commercial
Risk rating
Pass	$	14,483	$	113,857	$	50,274	$	11,832	$	2,679	$	7,100	$	16,012	$	216,237
Special Mention	—		2,971		—		163		—		—		—		3,134
Substandard	—		96		8		1,010		—		—		256		1,370
Doubtful	—		—		—		2,577		—		—		—		2,577
Total	$	14,483	$	116,924	$	50,282	$	15,582	$	2,679	$	7,100	$	16,268	$	223,318

Residential Real Estate: Commercial
Risk rating
Pass	$	40,074	$	194,242	$	77,477	$	60,448	$	35,732	$	108,139	$	16,402	$	532,514
Special Mention	—		150		—		—		2,131		336		281		2,898
Substandard	—		—		1,140		3,522		320		1,054		—		6,036
Doubtful	—		—		—		43		216		30		231		520
Total	$	40,074	$	194,392	$	78,617	$	64,013	$	38,399	$	109,559	$	16,914	$	541,968

Leases
Risk rating
Pass	$	1,263	$	7,397	$	5,391	$	3,665	$	1,378	$	1,576	$	—	$	20,670
Special Mention	—		245		66		—		42		—		—		353
Substandard	—		477		—		60		26		54		—		617
Doubtful	—		519		213		45		64		76		—		917
Total	$	1,263	$	8,638	$	5,670	$	3,770	$	1,510	$	1,706	$	—	$	22,557

Total Commercial Loans
Risk rating
Pass	$	397,361	$	1,239,401	$	570,121	$	360,451	$	229,373	$	638,379	$	478,629	$	3,913,715
Special Mention	272		15,015		37,231		10,314		11,113		24,842		13,482		112,269
Substandard	671		7,212		18,485		12,157		16,428		26,693		1,589		83,235
Doubtful	1,490		553		213		9,163		2,308		6,692		731		21,150
Total	$	399,794	$	1,262,181	$	626,050	$	392,085	$	259,222	$	696,606	$	494,431	$	4,130,369

 (1) 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.

Park considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential and consumer loan classes, Park also evaluates credit quality based on the aging status of the loan, which was previously presented, and by performing status. The following tables present the amortized cost in residential and consumer loans based on performing status. Park defines a loan as nonperforming if it is on nonaccrual status, designated as an accruing TDR, or is greater than 90 days past due and accruing.

March 31, 2021	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial, financial and agricultural: Overdrafts
Performing	$	2,373	$	—	$	—	$	—	$	—	$	—	$	—	$	2,373
Nonperforming	—		—		—		—		—		—		—		—
Total	$	2,373	$	—	$	—	$	—	$	—	$	—	$	—	$	2,373

Construction Real Estate: Retail
Performing	$	7,246	$	85,363	$	12,652	$	3,888	$	2,061	$	2,783	$	76	$	114,069
Nonperforming	—		—		—		—		17		24		—		41
Total	$	7,246	$	85,363	$	12,652	$	3,888	$	2,078	$	2,807	$	76	$	114,110

Residential Real Estate: Mortgage
Performing	$	83,060	$	220,655	$	154,818	$	96,678	$	78,671	$	421,427	$	—	$	1,055,309
Nonperforming	—		—		640		724		990		20,033		—		22,387
Total	$	83,060	$	220,655	$	155,458	$	97,402	$	79,661	$	441,460	$	—	$	1,077,696

Residential Real Estate: HELOC
Performing	$	—	$	—	$	151	$	23	$	231	$	3,502	$	165,218	$	169,125
Nonperforming	—		—		—		—		83		1,419		761		2,263
Total	$	—	$	—	$	151	$	23	$	314	$	4,921	$	165,979	$	171,388

Residential Real Estate: Installment
Performing	$	—	$	100	$	713	$	180	$	1,453	$	3,198	$	—	$	5,644
Nonperforming	—		16		2		49		97		1,793		—		1,957
Total	$	—	$	116	$	715	$	229	$	1,550	$	4,991	$	—	$	7,601

Consumer: Consumer
Performing	$	162,761	$	684,477	$	377,476	$	186,795	$	112,054	$	107,435	$	23,934	$	1,654,932
Nonperforming	27		327		796		576		374		842		—		2,942
Total	$	162,788	$	684,804	$	378,272	$	187,371	$	112,428	$	108,277	$	23,934	$	1,657,874

Consumer: GFSC
Performing	$	—	$	535	$	3,008	$	1,061	$	293	$	(99)	$	181	$	4,979
Nonperforming	—		4		130		71		34		7		—		246
Total	$	—	$	539	$	3,138	$	1,132	$	327	$	(92)	$	181	$	5,225

Consumer: Check loans
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	2,109	$	2,109
Nonperforming	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	2,109	$	2,109

Total Consumer Loans
Performing	$	255,440	$	991,130	$	548,818	$	288,625	$	194,763	$	538,246	$	191,518	$	3,008,540
Nonperforming	27		347		1,568		1,420		1,595		24,118		—		29,075
Total	$	255,467	$	991,477	$	550,386	$	290,045	$	196,358	$	562,364	$	191,518	$	3,037,615

Recorded Investment By Loan Grade

The table below presents the recorded investment by loan grade at December 31, 2020 for all commercial loans:

	12/31/2020
(In thousands)	5 Rated		6 Rated		Nonaccrual and Accruing TDRs		Purchased Credit Impaired		Pass-Rated		Recorded Investment
Commercial, financial and agricultural (1)	$	14,638	$	—	$	28,880	$	337	$	1,551,662	$	1,595,517
Commercial real estate (1)	87,439		117		70,357		7,461		1,588,832		1,754,206
Construction real estate:
Commercial	164		—		3,110		1,002		223,287		227,563
Residential real estate:
Commercial	798		22		4,557		1,510		520,496		527,383
Leases	331		—		1,595		112		22,414		24,452
Total Commercial Loans	$	103,370	$	139	$	108,499	$	10,422	$	3,906,691	$	4,129,121

(1) Included within each of commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

TDR Number Of Contracts Modified And Recorded Investment

The following tables detail the number of contracts modified as TDRs during the three-month periods ended March 31, 2021 and 2020, as well as the amortized cost/recorded investment of these contracts at March 31, 2021 and 2020. The amortized cost/recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal.

	Three Months Ended March 31, 2021
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Amortized Cost
Commercial, financial and agricultural
Commercial, financial and agricultural	1	$	—	$	200	$	200
PPP loans	—	—		—		—
Overdrafts	—	—		—		—
Commercial real estate	5	272		1,353		1,625
Construction real estate:
Commercial	—	—		—		—
Retail	—	—		—		—
Residential real estate:
Commercial	—	—		—		—
Mortgage	6	137		139		276
HELOC	—	—		—		—
Installment	5	118		28		146
Consumer:
Consumer	34	72		287		359
GFSC	—	—		—		—
Check loans	—	—		—		—
Leases	—	—		—		—
Total loans	51	$	599	$	2,007	$	2,606

	Three Months Ended March 31, 2020
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Recorded Investment
Commercial, financial and agricultural	4	$	—	$	1,094	$	1,094
Commercial real estate	2	1,136		60		1,196
Construction real estate:
Commercial	—	—		—		—
Mortgage	1	11		—		11
Installment	1	15		—		15
Residential real estate:
Commercial	—	—		—		—
Mortgage	6	111		280		391
HELOC	3	101		9		110
Installment	8	110		17		127
Consumer	57	112		352		464
Total loans	82	$	1,596	$	1,812	$	3,408

Of those loans which were modified and determined to be a TDR during the three-month period ended March 31, 2021, $1.7 million were on nonaccrual status at December 31, 2020. Of those loans which were modified and determined to be a TDR during the three-month period ended March 31, 2020, $0.3 million were on nonaccrual status at December 31, 2019.

Recorded Investment In Financing Receivable Modified As TDR Within 12 Months

The following tables present the amortized cost/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 periods ended March 31, 2021 and 2020, 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 ACL resulting from the defaults on TDR loans was immaterial.

	Three Months Ended March 31, 2021			Three Months Ended March 31, 2020
(In thousands)	Number of Contracts	Amortized Cost		Number of Contracts	Recorded Investment
Commercial, financial and agricultural:				2	$	4,068
Commercial, financial and agricultural	—	$	—	(1)	(1)
PPP loans	—	—		(1)	(1)
Overdrafts	—	—		(1)	(1)
Commercial real estate	—	—		—	—
Construction real estate:
Commercial	—	—		—	—
Mortgage	—	—		2	92
Residential real estate:
Commercial	—	—		—	—
Mortgage	10	763		4	443
HELOC	—	—		4	71
Installment	2	36		1	17
Consumer				36	369
Consumer	19	210		(1)	(1)
GFSC	5	25		(1)	(1)
Check loans	—	—		(1)	(1)
Leases	—	—		—	—
Total loans	36	$	1,034	49	$	5,060

(1) Results for reporting periods beginning after January 1, 2021 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. Category was not broken out as a separate class at December 31, 2020.

Of the $1.0 million in modified TDRs which defaulted during the three-month period ended March 31, 2021, $0.3 million were accruing loans and $0.7 million were nonaccrual loans. Of the $5.1 million in modified TDRs which defaulted during the three-month period ended March 31, 2020, $4.5 million were accruing loans and $0.5 million were nonaccrual loans.