Loans (Tables)

6 Months Ended

Jun. 30, 2021

Loans and Leases Receivable Disclosure [Line Items]

Composition Of Loan Portfolio By Class Of Loan

The composition of the loan portfolio at June 30, 2021 and December 31, 2020 was as follows:

 

	June 30, 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)	$	1,211,258	(2)		(2)		(2)
PPP loans	248,880		(2)		(2)		(2)
Overdrafts	1,536		(2)		(2)		(2)
Commercial real estate (1)	1,777,806		1,748,189		6,017		1,754,206
Construction real estate:
Commercial	210,681		226,991		572		227,563
Retail	118,819		116,430		235		116,665
Residential real estate:
Commercial	517,114		526,222		1,161		527,383
Mortgage	1,062,865		1,096,358		947		1,097,305
HELOC	167,522		182,028		647		182,675
Installment	6,911		8,436		22		8,458
Consumer:			1,659,704		4,510		1,664,214
Consumer	1,683,749		(2)		(2)		(2)
GFSC	3,750		(2)		(2)		(2)
Check loans	2,082		(2)		(2)		(2)
Leases	22,673		24,438		14		24,452
Total	$	7,035,646	$	7,177,785	$	20,653	$	7,198,438
Allowance for credit losses	(83,577)		(85,675)
Net loans	$	6,952,069	$	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 June 30, 2021:

 

	June 30, 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	$	19,655	$	2,509	$	—	$	22,164
PPP loans	—		—		18		18
Overdrafts	—		—		—		—
Commercial real estate	52,995		3,691		—		56,686
Construction real estate:
Commercial	361		98		—		459
Retail	12		27		—		39
Residential real estate:
Commercial	5,808		265		—		6,073
Mortgage	13,216		7,470		63		20,749
HELOC	1,297		773		259		2,329
Installment	160		1,632		—		1,792
Consumer:
Consumer	1,562		941		153		2,656
GFSC	159		14		22		195
Check loans	—		—		—		—
Leases	1,535		—		—		1,535
Total loans	$	96,760	$	17,420	$	515	$	114,695

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 June 30, 2021:

	June 30, 2021
(In thousands)	Nonaccrual Loans With No ACL		Nonaccrual Loans With an ACL		Related ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	13,250	$	6,405	$	3,334
PPP loans	—		—		—
Overdrafts	—		—		—
Commercial real estate	50,922		2,073		360
Construction real estate:
Commercial	361		—		—
Retail	—		12		—
Residential real estate:
Commercial	5,709		99		23
Mortgage	—		13,216		143
HELOC	—		1,297		161
Installment	—		160		37
Consumer
Consumer	—		1,562		493
GFSC	—		159		18
Check loans	—		—		—
Leases	569		966		205
Total loans	$	70,811	$	25,949	$	4,774

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 June 30, 2021:

	June 30, 2021
(In thousands)	Real Estate		Business Assets		Other		Total
Commercial, financial and agricultural
Commercial, financial and agricultural	$	8,498	$	12,958	$	942	$	22,398
Commercial real estate	63,276		41		60		63,377
Construction real estate:
Commercial	1,435		—		—		1,435
Residential real estate:
Commercial	7,524		—		—		7,524
Mortgage	379		—		—		379
HELOC	140		—		—		140
Leases	—		1,628		—		1,628
Total loans	$	81,252	$	14,627	$	1,002	$	96,881

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 and six-month periods ended June 30, 2021:

	Interest Income Recognized
(In thousands)	Three months ended June 30, 2021		Six months ended June 30, 2021
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	50	$	107
PPP loans	—		—
Overdrafts	—		—
Commercial real estate	507		1,022
Construction real estate:
Commercial	4		37
Retail	—		1
Residential real estate:
Commercial	74		120
Mortgage	64		143
HELOC	6		10
Installment	1		2
Consumer:
Consumer	25		48
GFSC	3		8
Check loans	—		—
Leases	24		44
Total loans	$	758	$	1,542

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 and six months ended June 30, 2020:

  

			Three months ended June 30, 2020				Six months ended June 30, 2020
(In thousands)	Recorded Investment as of June 30, 2020		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial and agricultural	$	30,183	$	29,859	$	180	30,931		384
Commercial real estate	54,071		49,599		409		46,582		890
Construction real estate:
Commercial	631		493		4		460		8
Residential real estate:
Commercial	5,257		5,400		78		3,960		101
Leases	1,641		506		—		346		—
Total	$	91,783	$	85,857	$	671	$	82,279	$	1,383

Financing Receivable, Past Due

The following table presents the aging of the amortized cost in past due loans at June 30, 2021 by class of loan:

	June 30, 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	$	3,152	$	11,688	$	14,840	$	1,196,418	$	1,211,258
PPP loans	—		18		18		248,862		248,880
Overdrafts	—		—		—		1,536		1,536
Commercial real estate	76		722		798		1,777,008		1,777,806
Construction real estate:
Commercial	815		—		815		209,866		210,681
Retail	36		—		36		118,783		118,819
Residential real estate:
Commercial	—		391		391		516,723		517,114
Mortgage	6,222		6,321		12,543		1,050,322		1,062,865
HELOC	476		979		1,455		166,067		167,522
Installment	123		54		177		6,734		6,911
Consumer:
Consumer	2,178		261		2,439		1,681,310		1,683,749
GFSC	324		130		454		3,296		3,750
Check loans	6		—		6		2,076		2,082
Leases	15		37		52		22,621		22,673
Total loans	$	13,423	$	20,601	$	34,024	$	7,001,622	$	7,035,646

(1) Includes an aggregate of $0.5 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.

(2) Includes an aggregate of $76.7 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 June 30, 2021 follows:

June 30, 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	$	128,054	$	250,325	$	134,327	$	73,060	$	51,532	$	81,855	$	463,559	$	1,182,712
Special Mention	100		1,837		834		651		199		20		5,089		8,730
Substandard	1,039		1,794		358		1,302		741		8,129		1,202		14,565
Doubtful	1,257		41		221		492		1,938		730		572		5,251
Total	$	130,450	$	253,997	$	135,740	$	75,505	$	54,410	$	90,734	$	470,422	$	1,211,258

Commercial, financial and agricultural: PPP
Risk rating
Pass	$	175,025	$	73,855	$	—	$	—	$	—	$	—	$	—	$	248,880
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	$	175,025	$	73,855	$	—	$	—	$	—	$	—	$	—	$	248,880

Commercial real estate (1)
Risk rating
Pass	$	190,442	$	466,970	$	279,205	$	179,538	$	126,126	$	384,277	$	8,339	$	1,634,897
Special Mention	1,601		7,656		36,032		10,743		7,063		21,408		3,590		88,093
Substandard	207		3,908		6,541		12,912		10,427		19,810		442		54,247
Doubtful	—		—		—		—		60		509		—		569
Total	$	192,250	$	478,534	$	321,778	$	203,193	$	143,676	$	426,004	$	12,371	$	1,777,806

Construction real estate: Commercial
Risk rating
Pass	$	37,121	$	90,656	$	45,251	$	6,447	$	2,547	$	6,041	$	18,269	$	206,332
Special Mention	—		2,913		98		—		—		—		—		3,011
Substandard	—		57		8		976		—		—		297		1,338
Doubtful	—		—		—		—		—		—		—		—
Total	$	37,121	$	93,626	$	45,357	$	7,423	$	2,547	$	6,041	$	18,566	$	210,681

Residential Real Estate: Commercial
Risk rating
Pass	$	71,502	$	175,044	$	70,072	$	50,486	$	31,383	$	95,804	$	14,825	$	509,116
Special Mention	—		—		108		81		—		332		277		798
Substandard	502		23		712		3,399		1,353		1,033		—		7,022
Doubtful	—		—		—		42		—		—		136		178
Total	$	72,004	$	175,067	$	70,892	$	54,008	$	32,736	$	97,169	$	15,238	$	517,114

Leases
Risk rating
Pass	$	3,970	$	6,908	$	4,585	$	3,103	$	1,164	$	1,351	$	—	$	21,081
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		426		210		74		25		36		—		771
Doubtful	—		491		172		37		53		68		—		821
Total	$	3,970	$	7,825	$	4,967	$	3,214	$	1,242	$	1,455	$	—	$	22,673

June 30, 2021	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021	2020	2019	2018	2017	Prior	Revolving Loans Amortized Cost Basis	Total

Total Commercial Loans
Risk rating
Pass	$	606,114	$	1,063,758	$	533,440	$	312,634	$	212,752	$	569,328	$	504,992	$	3,803,018
Special Mention	1,701		12,406		37,072		11,475		7,262		21,760		8,956		100,632
Substandard	1,748		6,208		7,829		18,663		12,546		29,008		1,941		77,943
Doubtful	1,257		532		393		571		2,051		1,307		708		6,819
Total	$	610,820	$	1,082,904	$	578,734	$	343,343	$	234,611	$	621,403	$	516,597	$	3,988,412

(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.

June 30, 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	$	1,536	$	—	$	—	$	—	$	—	$	—	$	—	$	1,536
Nonperforming	—		—		—		—		—		—		—		—
Total	$	1,536	$	—	$	—	$	—	$	—	$	—	$	—	$	1,536

Construction Real Estate: Retail
Performing	$	26,301	$	74,144	$	10,309	$	3,450	$	1,960	$	2,538	$	78	$	118,780
Nonperforming	—		—		—		—		16		23		—		39
Total	$	26,301	$	74,144	$	10,309	$	3,450	$	1,976	$	2,561	$	78	$	118,819

Residential Real Estate: Mortgage
Performing	$	145,384	$	217,356	$	137,995	$	86,362	$	70,931	$	384,088	$	—	$	1,042,116
Nonperforming	—		—		703		981		979		18,086		—		20,749
Total	$	145,384	$	217,356	$	138,698	$	87,343	$	71,910	$	402,174	$	—	$	1,062,865

Residential Real Estate: HELOC
Performing	$	—	$	—	$	86	$	23	$	48	$	2,999	$	162,037	$	165,193
Nonperforming	—		—		—		—		74		1,853		402		2,329
Total	$	—	$	—	$	86	$	23	$	122	$	4,852	$	162,439	$	167,522

Residential Real Estate: Installment
Performing	$	—	$	79	$	645	$	159	$	1,329	$	2,907	$	—	$	5,119
Nonperforming	—		15		2		46		90		1,639		—		1,792
Total	$	—	$	94	$	647	$	205	$	1,419	$	4,546	$	—	$	6,911

Consumer: Consumer
Performing	$	373,933	$	620,977	$	333,082	$	160,404	$	92,823	$	89,690	$	10,184	$	1,681,093
Nonperforming	40		463		687		450		248		768		—		2,656
Total	$	373,973	$	621,440	$	333,769	$	160,854	$	93,071	$	90,458	$	10,184	$	1,683,749

Consumer: GFSC
Performing	$	—	$	438	$	2,210	$	687	$	181	$	(106)	$	145	$	3,555
Nonperforming	—		19		96		53		22		5		—		195
Total	$	—	$	457	$	2,306	$	740	$	203	$	(101)	$	145	$	3,750

Consumer: Check loans
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	2,082	$	2,082
Nonperforming	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	2,082	$	2,082

Total Consumer Loans
Performing	$	547,154	$	912,994	$	484,327	$	251,085	$	167,272	$	482,116	$	174,526	$	3,019,474
Nonperforming	40		497		1,488		1,530		1,429		22,374		402		27,760
Total	$	547,194	$	913,491	$	485,815	$	252,615	$	168,701	$	504,490	$	174,928	$	3,047,234

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		PCI		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 June 30, 2021 and 2020, as well as the amortized cost/recorded investment of these contracts at June 30, 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 June 30, 2021
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Amortized Cost
Commercial, financial and agricultural
Commercial, financial and agricultural	3	$	—	$	334	$	334
PPP loans	—	—		—		—
Overdrafts	—	—		—		—
Commercial real estate	3	1,601		207		1,808
Construction real estate:
Commercial	1	98		—		98
Retail	—	—		—		—
Residential real estate:
Commercial	3	—		406		406
Mortgage	4	58		195		253
HELOC	4	134		33		167
Installment	1	2		—		2
Consumer:
Consumer	42	77		289		366
GFSC	—	—		—		—
Check loans	—	—		—		—
Leases	1	—		362		362
Total loans	62	$	1,970	$	1,826	$	3,796

	Three Months Ended June 30, 2020
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Total Recorded Investment
Commercial, financial and agricultural	3	$	82	$	2	$	84
Commercial real estate	2	—		1,643		1,643
Construction real estate:
Commercial	—	—		—		—
Mortgage	—	—		—		—
Installment	—	—		—		—
Residential real estate:
Commercial	1	—		16		16
Mortgage	13	868		922		1,790
HELOC	2	—		28		28
Installment	5	108		32		140
Consumer	56	88		426		514
Total loans	82	$	1,146	$	3,069	$	4,215

Of those loans which were modified and determined to be a TDR during the three-month period ended June 30, 2021, $0.6 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 June 30, 2020, $43,000 were on nonaccrual status at December 31, 2019.

The following tables detail the number of contracts modified as TDRs during the six-month periods ended June 30, 2021 and 2020, as well as the amortized cost/recorded investment of these contracts at June 30, 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.

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 and six-month periods ended June 30, 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 June 30, 2021			Three Months Ended June 30, 2020
(In thousands)	Number of Contracts	Amortized Cost		Number of Contracts	Recorded Investment
Commercial, financial and agricultural:				1	$	4,043
Commercial, financial and agricultural	—	$	—	(1)	(1)
PPP loans	—	—		(1)	(1)
Overdrafts	—	—		(1)	(1)
Commercial real estate	1	220		—	—
Construction real estate:
Commercial	—	—		—	—
Retail	—	—		1	14
Residential real estate:
Commercial	—	—		1	16
Mortgage	5	334		3	294
HELOC	—	—		2	37
Installment	1	6		2	30
Consumer				20	179
Consumer	14	100		(1)	(1)
GFSC	—	—		(1)	(1)
Check loans	—	—		(1)	(1)
Leases	—	—		—	—
Total loans	21	$	660	30	$	4,613

(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 $0.7 million in modified TDRs which defaulted during the three-month period ended June 30, 2021, $44,000 were accruing loans and $0.6 million were nonaccrual loans. 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.

	Six Months Ended June 30, 2021			Six Months Ended June 30, 2020
(In thousands)	Number of Contracts	Amortized Cost		Number of Contracts	Recorded Investment
Commercial, financial and agricultural:				2	4,051
Commercial, financial and agricultural	—	—		(1)	(1)
PPP loans	—	—		(1)	(1)
Overdrafts	—	—		(1)	(1)
Commercial real estate	1	220		—	—
Construction real estate:
Commercial	—	—		—	—
Retail	—	—		1	14
Residential real estate:
Commercial	—	—		1	16
Mortgage	6	373		3	294
HELOC	—	—		2	37
Installment	2	34		2	30
Consumer				23	218
Consumer	17	113		(1)	(1)
GFSC	—	—		(1)	(1)
Check loans	—	—		(1)	(1)
Leases	1	362		—	—
Total loans	27	$	1,102	34	$	4,660

(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.