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Loans
 3 Months Ended
Mar. 31, 2022
Loans and Leases Receivable Disclosure [Abstract]  
Loans Loans
 
The composition of the loan portfolio at March 31, 2022 and December 31, 2021 was as follows:
 
March 31, 2022December 31, 2021
(In thousands)Amortized CostAmortized Cost
Commercial, financial and agricultural: (1)
Commercial, financial and agricultural (1)
$1,260,840 $1,223,079 
PPP loans37,424 74,420 
Overdrafts2,055 1,127 
Commercial real estate (1)
1,780,605 1,801,792 
Construction real estate:  
Commercial201,184 214,561 
Retail103,174 107,225 
Residential real estate:  
Commercial542,945 533,802 
Mortgage1,020,857 1,033,658 
HELOC159,582 165,605 
Installment5,157 5,642 
Consumer:
Consumer1,685,217 1,685,793 
GFSC1,156 1,793 
Check loans2,033 2,093 
Leases19,377 20,532 
Total$6,821,606 $6,871,122 
Allowance for credit losses(78,861)(83,197)
Net loans$6,742,745 $6,787,925 
(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.

In order to support customers, Park participated in the CARES Act Paycheck Protection Program ("PPP"). For its assistance in originating the first round of PPP loans during 2020, Park received an aggregate of $20.2 million in fees from the SBA, and for its assistance in originating additional PPP loans during 2021, Park received an aggregate of $12.9 million in fees from the SBA. During the three months ended March 31, 2022 and March 31, 2021, $1.5 million and $4.6 million, respectively, of PPP fee income were recognized within loan interest income.

Loans are shown net of deferred origination fees, costs and unearned income of $18.1 million at March 31, 2022, and of $19.5 million at December 31, 2021, which represented a net deferred income position in both years. At March 31, 2022 and December 31, 2021, included in the net deferred origination fees, costs and unearned income were $1.4 million and $2.8 million, respectively, in net origination fees related to PPP loans. At March 31, 2022 and December 31, 2021, loans included purchase accounting adjustments of $3.8 million and $4.2 million, respectively, which represented a net deferred
income position at each date. This fair market value purchase accounting adjustment 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 $2.1 million and $1.1 million were reclassified to loans at March 31, 2022 and December 31, 2021, respectively.

Credit Quality
The following tables present 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, 2022 and December 31, 2021:
 
 March 31, 2022
(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$12,731 $9,474 $— $22,205 
PPP loans— — 66 66 
Overdrafts— — — — 
Commercial real estate24,613 12,933 — 37,546 
Construction real estate:    
Commercial50 158 — 208 
Retail710 8 — 718 
Residential real estate:    
Commercial2,018 296 — 2,314 
Mortgage9,951 6,904 120 16,975 
HELOC1,572 610 4 2,186 
Installment81 1,390 — 1,471 
Consumer:
Consumer1,187 652 250 2,089 
GFSC54 3 5 62 
Check loans— — — — 
Leases1,051 — — 1,051 
Total loans$54,018 $32,428 $445 $86,891 
 
 December 31, 2021
(In thousands)Nonaccrual
Loans		Accruing
TDRs		Loans Past Due 90 Days or More and AccruingTotal
Nonperforming
Loans
Commercial, financial and agricultural
Commercial, financial and agricultural$13,271 $9,396 $— $22,667 
PPP loans— — 793 793 
Overdrafts— — — — 
Commercial real estate40,142 7,713 — 47,855 
Construction real estate:   
Commercial52 169 — 221 
Retail716 9 — 725 
Residential real estate:    
Commercial2,366 240 — 2,606 
Mortgage11,718 7,779 372 19,869 
HELOC1,590 803 — 2,393 
Installment82 1,508 — 1,590 
Consumer
Consumer1,518 700 431 2,649 
GFSC79 6 11 96 
Check loans— — — — 
Leases1,188 — — 1,188 
Total loans$72,722 $28,323 $1,607 $102,652 
The following tables provide additional detail on nonaccrual loans and the related ACL, by class of loan, at March 31, 2022 and December 31, 2021:

March 31, 2022
(In thousands)Nonaccrual Loans With No ACLNonaccrual Loans With an ACLRelated ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural$11,193 $1,538 $1,212 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate23,927 686 144 
Construction real estate:
Commercial50 — — 
Retail— 710 65 
Residential real estate:
Commercial2,018 — — 
Mortgage— 9,951 62 
HELOC— 1,572 66 
Installment— 81 36 
Consumer
Consumer— 1,187 316 
GFSC— 54 7 
Check loans— — — 
Leases882 169 24 
Total loans$38,070 $15,948 $1,932 
December 31, 2021
(In thousands)Nonaccrual Loans With No ACLNonaccrual Loans With an ACLRelated ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural$11,494 $1,777 $1,343 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate39,151 991 188 
Construction real estate:
Commercial52 — — 
Retail— 716 67 
Residential real estate:
Commercial2,366 — — 
Mortgage— 11,718 73 
HELOC— 1,590 99 
Installment— 82 24 
Consumer
Consumer— 1,518 393 
GFSC— 79 10 
Check loans— — — 
Leases914 274 43 
Total$53,977 $18,745 $2,240 

Nonaccrual commercial loans are evaluated on an individual basis and are excluded from the collective evaluation. Management’s general practice is to proactively charge down loans individually evaluated to the fair value of the underlying collateral. Nonaccrual consumer loans are collectively evaluated based on similar risk characteristics.

The following tables provide the amortized cost basis of collateral-dependent loans by class of loan, as of March 31, 2022 and December 31, 2021:

 March 31, 2022
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$8,343 $13,742 $201 $22,286 
Commercial real estate42,534 35 — 42,569 
Construction real estate:
Commercial1,152 — — 1,152 
Residential real estate:
Commercial2,620 20 — 2,640 
Mortgage366 — — 366 
HELOC124 — — 124 
Leases— 1,059 — 1,059 
Total loans$55,139 $14,856 $201 $70,196 
 December 31, 2021
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$9,321 $13,366 $156 $22,843 
Commercial real estate52,901 37 — 52,938 
Construction real estate:
Commercial1,178 — — 1,178 
Residential real estate:
Commercial2,906 — 57 2,963 
Mortgage370 — — 370 
HELOC148 — — 148 
Leases— 1,211 — 1,211 
Total loans$66,824 $14,614 $213 $81,651 

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 periods ended March 31, 2022 and 2021:

Interest Income Recognized
(In thousands)Three Months Ended
March 31, 2022		Three Months Ended
March 31, 2021
Commercial, financial and agricultural:
Commercial, financial and agricultural$17 $57 
PPP loans— — 
Overdrafts— — 
Commercial real estate257 515 
Construction real estate:
Commercial1 33 
Retail4 1 
Residential real estate:
Commercial20 46 
Mortgage33 79 
HELOC4 4 
Installment2 1 
Consumer:
Consumer14 23 
GFSC2 5 
Check loans— — 
Leases14 20 
Total loans$368 $784 
The following tables present the aging of the amortized cost in past due loans at March 31, 2022 and December 31, 2021 by class of loan:

 March 31, 2022
(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$686 $9,500 $10,186 $1,250,654 $1,260,840 
PPP loans— 66 66 37,358 37,424 
Overdrafts— — — 2,055 2,055 
Commercial real estate158 801 959 1,779,646 1,780,605 
Construction real estate:
Commercial— — — 201,184 201,184 
Retail314 654 968 102,206 103,174 
Residential real estate:
Commercial85 397 482 542,463 542,945 
Mortgage4,551 5,319 9,870 1,010,987 1,020,857 
HELOC833 849 1,682 157,900 159,582 
Installment71 16 87 5,070 5,157 
Consumer:
Consumer2,894 417 3,311 1,681,906 1,685,217 
GFSC101 28 129 1,027 1,156 
Check loans9 — 9 2,024 2,033 
Leases— — — 19,377 19,377 
Total loans$9,702 $18,047 $27,749 $6,793,857 $6,821,606 
(1) Includes an aggregate of $0.4 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.
(2) Includes an aggregate of $36.4 million of nonaccrual loans which were current in regards to contractual principal and interest payments.
 December 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$2,908 $9,547 $12,455 $1,210,624 $1,223,079 
PPP loans242 793 1,035 73,385 74,420 
Overdrafts— — — 1,127 1,127 
Commercial real estate65 1,461 1,526 1,800,266 1,801,792 
Construction real estate:
Commercial— — — 214,561 214,561 
Retail346 660 1,006 106,219 107,225 
Residential real estate:
Commercial283 438 721 533,081 533,802 
Mortgage6,170 5,933 12,103 1,021,555 1,033,658 
HELOC565 1,011 1,576 164,029 165,605 
Installment49 31 80 5,562 5,642 
Consumer
Consumer2,614 618 3,232 1,682,561 1,685,793 
GFSC153 52 205 1,588 1,793 
Check loans10 — 10 2,083 2,093 
Leases60 526 586 19,946 20,532 
Total loans$13,465 $21,070 $34,535 $6,836,587 $6,871,122 
(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 $53.3 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 March 31, 2022 and December 31, 2021 is included in the previous tables. The past due information is the primary credit quality indicator within the following classes of loans: (1) overdrafts in the commercial, financial and agricultural portfolio segment; (2) retail loans in the construction real estate portfolio segment; (3) mortgage loans, HELOC and installment loans in the residential real estate portfolio segment; and (4) consumer loans, GFSC loans, and check loans in the consumer portfolio segment. 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 PD is applied 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 PD is applied 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 individually evaluated category. A commercial loan is deemed nonaccrual, and is individually evaluated, 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.

Based on the most recent analysis performed, the risk category of loans by class of loans as of March 31, 2022 and December 31, 2021 were as follows:

March 31, 2022Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass$94,782 $249,967 $195,914 $85,396 $45,140 $73,989 $486,123 $1,231,311 
Special Mention— 1,654 873 631 61 243 13,213 16,675 
Substandard50 181 219 363 1,339 8,265 1,160 11,577 
Doubtful— — 22 144 179 448 484 1,277 
Total $94,832 $251,802 $197,028 $86,534 $46,719 $82,945 $500,980 $1,260,840 
Commercial, financial and agricultural: PPP
Risk rating
Pass$— $34,269 $3,155 $— $— $— $— $37,424 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total$— $34,269 $3,155 $— $— $— $— $37,424 
Commercial real estate (1)
Risk rating
Pass$70,391 $383,420 $436,952 $251,262 $126,209 $396,986 $13,412 $1,678,632 
Special Mention407 968 4,391 28,352 17,896 23,636 997 76,647 
Substandard— 2,806 2,195 1,500 5,649 12,118 409 24,677 
Doubtful— — — — — 649 — 649 
Total$70,798 $387,194 $443,538 $281,114 $149,754 $433,389 $14,818 $1,780,605 
Construction real estate: Commercial
Risk rating
Pass$17,339 $92,262 $52,548 $5,859 $3,312 $4,090 $23,824 $199,234 
Special Mention— 956 — — 683 — — 1,639 
Substandard— — 50 — 261 — — 311 
Doubtful— — — — — — — — 
Total$17,339 $93,218 $52,598 $5,859 $4,256 $4,090 $23,824 $201,184 
Residential Real Estate: Commercial
Risk rating
Pass$27,402 $136,059 $160,097 $64,936 $42,159 $89,919 $16,616 $537,188 
Special Mention— 95 1,519 697 — 1,017 145 3,473 
Substandard— 831 22 92 318 1,021 — 2,284 
Doubtful— — — — — — — — 
Total$27,402 $136,985 $161,638 $65,725 $42,477 $91,957 $16,761 $542,945 
March 31, 2022Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisTotal
Leases
Risk rating
Pass$2,595 $5,190 $4,994 $2,282 $1,686 $1,055 $— $17,802 
Special Mention20 143 133 156 58 14 — 524 
Substandard— — 660 90 — 81 — 831 
Doubtful— — — 186 15 19 — 220 
Total$2,615 $5,333 $5,787 $2,714 $1,759 $1,169 $— $19,377 
Total Commercial Loans
Risk rating
Pass$212,509 $901,167 $853,660 $409,735 $218,506 $566,039 $539,975 $3,701,591 
Special Mention427 3,816 6,916 29,836 18,698 24,910 14,355 98,958 
Substandard50 3,818 3,146 2,045 7,567 21,485 1,569 39,680 
Doubtful— — 22 330 194 1,116 484 2,146 
Total$212,986 $908,801 $863,744 $441,946 $244,965 $613,550 $556,383 $3,842,375 
(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.

December 31, 2021Term Loans Amortized Cost Basis by Origination Year
(In thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass$267,016 $208,078 $100,736 $52,705 $36,528 $59,909 $468,749 $1,193,721 
Special Mention1,608 1,592 429 59 277 — 11,986 15,951 
Substandard106 906 401 1,345 549 7,818 484 11,609 
Doubtful— 30 465 227 463 125 488 1,798 
Total $268,730 $210,606 $102,031 $54,336 $37,817 $67,852 $481,707 $1,223,079 
Commercial, financial and agricultural: PPP
Risk rating
Pass$69,588 $4,832 $— $— $— $— $— $74,420 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total$69,588 $4,832 $— $— $— $— $— $74,420 
Commercial real estate (1)
Risk rating
Pass$376,468 $445,780 $263,786 $154,637 $115,571 $317,371 $14,890 $1,688,503 
Special Mention786 6,206 32,965 9,354 4,297 17,829 996 72,433 
Substandard3,897 2,578 1,385 11,373 5,967 14,541 450 40,191 
Doubtful— — — — 47 618 — 665 
Total$381,151 $454,564 $298,136 $175,364 $125,882 $350,359 $16,336 $1,801,792 
December 31, 2021Term Loans Amortized Cost Basis by Origination Year
(In thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisTotal
Construction real estate: Commercial
Risk rating
Pass$96,929 $76,867 $7,003 $4,841 $1,856 $3,412 $22,444 $213,352 
Special Mention202 — — 691 — — — 893 
Substandard— 52 — 264 — — — 316 
Doubtful— — — — — — — — 
Total$97,131 $76,919 $7,003 $5,796 $1,856 $3,412 $22,444 $214,561 
Residential Real Estate: Commercial
Risk rating
Pass$138,801 $165,202 $67,921 $44,896 $26,583 $70,434 $15,507 $529,344 
Special Mention95 884 106 79 — 497 135 1,796 
Substandard735 22 691 41 95 993 29 2,606 
Doubtful56 — — — — — — 56 
Total$139,687 $166,108 $68,718 $45,016 $26,678 $71,924 $15,671 $533,802 
Leases
Risk rating
Pass$6,705 $5,729 $2,628 $2,151 $705 $845 $— $18,763 
Special Mention198 111 184 67 21 — — 581 
Substandard— 698 — 23 19 78 — 818 
Doubtful— — 332 16 22 — — 370 
Total$6,903 $6,538 $3,144 $2,257 $767 $923 $— $20,532 
Total Commercial Loans
Risk rating
Pass$955,507 $906,488 $442,074 $259,230 $181,243 $451,971 $521,590 $3,718,103 
Special Mention2,889 8,793 33,684 10,250 4,595 18,326 13,117 91,654 
Substandard4,738 4,256 2,477 13,046 6,630 23,430 963 55,540 
Doubtful56 30 797 243 532 743 488 2,889 
Total$963,190 $919,567 $479,032 $282,769 $193,000 $494,470 $536,158 $3,868,186 
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, 2022Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Overdrafts
Performing$2,055 $— $— $— $— $— $— $2,055 
Nonperforming— — — — — — — — 
Total $2,055 $— $— $— $— $— $— $2,055 
Construction Real Estate: Retail
Performing$8,712 $70,522 $12,341 $5,222 $2,514 $3,067 $78 $102,456 
Nonperforming— — 642 56 — 20 — 718 
Total $8,712 $70,522 $12,983 $5,278 $2,514 $3,087 $78 $103,174 
Residential Real Estate: Mortgage
Performing$50,958 $215,287 $210,169 $105,211 $63,167 $359,090 $— $1,003,882 
Nonperforming— — — 290 799 15,886 — 16,975 
Total $50,958 $215,287 $210,169 $105,501 $63,966 $374,976 $— $1,020,857 
Residential Real Estate: HELOC
Performing$— $322 $25 $160 $43 $3,018 $153,828 $157,396 
Nonperforming— — 38 — 36 1,825 287 2,186 
Total $— $322 $63 $160 $79 $4,843 $154,115 $159,582 
Residential Real Estate: Installment
Performing$— $— $2 $356 $96 $3,232 $— $3,686 
Nonperforming— — 11 5 24 1,431 — 1,471 
Total $— $— $13 $361 $120 $4,663 $— $5,157 
Consumer: Consumer
Performing$158,137 $606,826 $455,469 $227,119 $101,270 $111,977 $22,330 $1,683,128 
Nonperforming— 136 421 611 332 589 — 2,089 
Total $158,137 $606,962 $455,890 $227,730 $101,602 $112,566 $22,330 $1,685,217 
Consumer: GFSC
Performing$— $— $170 $621 $181 $35 $87 $1,094 
Nonperforming— — — 52 7 3 — 62 
Total $— $— $170 $673 $188 $38 $87 $1,156 
Consumer: Check loans
Performing$— $— $— $— $— $— $2,033 $2,033 
Nonperforming— — — — — — — — 
Total $— $— $— $— $— $— $2,033 $2,033 
Total Consumer Loans
Performing$219,862 $892,957 $678,176 $338,689 $167,271 $480,419 $178,356 $2,955,730 
Nonperforming
— 136 1,112 1,014 1,198 19,754 287 23,501 
Total $219,862 $893,093 $679,288 $339,703 $168,469 $500,173 $178,643 $2,979,231 
December 31, 2021Term Loans Amortized Cost Basis by Origination Year
(In thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Overdrafts
Performing$1,127 $— $— $— $— $— $— $1,127 
Nonperforming— — — — — — — — 
Total 1,127 $— $— $— $— $— $— $1,127 
Construction Real Estate: Retail
Performing$68,374 $26,247 $5,710 $2,743 $1,505 $1,842 $79 $106,500 
Nonperforming— 647 57 — — 21 — 725 
Total $68,374 $26,894 $5,767 $2,743 $1,505 $1,863 $79 $107,225 
Residential Real Estate: Mortgage
Performing$230,299 $217,022 $114,077 $68,774 $59,939 $323,678 $— $1,013,789 
Nonperforming— 626 785 824 574 17,060 — 19,869 
Total $230,299 $217,648 $114,862 $69,598 $60,513 $340,738 $— $1,033,658 
Residential Real Estate: HELOC
Performing$400 $— $121 $58 $41 $2,640 $159,952 $163,212 
Nonperforming89 40 — 37 90 1,811 326 2,393 
Total $489 $40 $121 $95 $131 $4,451 $160,278 $165,605 
Residential Real Estate: Installment
Performing$— $3 $418 $111 $1,049 $2,471 $— $4,052 
Nonperforming— 12 5 26 78 1,469 — 1,590 
Total $— $15 $423 $137 $1,127 $3,940 $— $5,642 
Consumer: Consumer
Performing$649,638 $505,555 $259,230 $119,222 $64,699 $62,136 $22,664 $1,683,144 
Nonperforming241 506 755 399 155 593 — 2,649 
Total $649,879 $506,061 $259,985 $119,621 $64,854 $62,729 $22,664 $1,685,793 
Consumer: GFSC
Performing$— $243 $986 $292 $63 $5 $108 $1,697 
Nonperforming— 9 73 5 9 — — 96 
Total $— $252 $1,059 $297 $72 $5 $108 $1,793 
Consumer: Check loans
Performing$— $— $— $— $— $— $2,093 $2,093 
Nonperforming— — — — — — — — 
Total $— $— $— $— $— $— $2,093 $2,093 
Total Consumer Loans
Performing$949,838 $749,070 $380,542 $191,200 $127,296 $392,772 $184,896 $2,975,614 
Nonperforming
330 1,840 1,675 1,291 906 20,954 326 27,322 
Total $950,168 $750,910 $382,217 $192,491 $128,202 $413,726 $185,222 $3,002,936 

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 (ASC 310-30) with a book value of $5.1 million were recorded at the initial fair value of $4.9 million. 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 (ASC 310-30) with a book value of $19.9 million were recorded at the initial fair value of $18.4 million.

Upon adoption of CECL on January 1, 2021, $52,000 of the credit discount on PCD loans was reclassified to the allowance for credit losses. At March 31, 2022, there was no allowance for credit losses on PCD loans. The carrying amount of loans acquired with deteriorated credit quality at March 31, 2022 and December 31, 2021 was $7.0 million and $7.1 million, respectively.

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.

Park has worked with borrowers and provided modifications in the form of either interest only deferral or principal and interest deferral, in each case, for initial periods of up to 90 days. As necessary, Park made available a second 90-day interest only deferral or principal and interest deferral bringing the total potential deferral period to six months. Modifications were structured in a manner to best address each individual customer's then current situation. A majority of these modifications were excluded from the TDR classification under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators. The modified loans were considered current and continued to accrue interest during the deferral period.

Certain other loans which were modified during the three-month periods ended March 31, 2022 and 2021 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 March 31, 2022 and December 31, 2021, there were $16.2 million and $20.9 million, respectively, of TDRs included in the nonaccrual loan totals. At March 31, 2022 and December 31, 2021, $6.1 million and $10.5 million, respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured notes. At March 31, 2022 and December 31, 2021, loans totaling $32.4 million and $28.3 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 March 31, 2022 and December 31, 2021, Park had commitments to lend $3.2 million and $3.0 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR.
 
At March 31, 2022 and December 31, 2021, there were $0.2 million and $0.3 million, respectively, of specific reserves related to TDRs. Modifications made in 2022 and 2021 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 respective borrowers 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 the three-month periods ended March 31, 2022 or March 31, 2021, respectively, 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 will 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. There were $171,000 of TDR classifications removed during the three months ended March 31, 2022. The TDR classification was removed on $3.9 million of loans during the three-month period ended March 31, 2021.

The terms of certain other loans were modified during the three-month periods ended March 31, 2022 and 2021 that did not meet the definition of a TDR. Excluding COVID-19 related modifications, there were no substandard commercial loans modified during either of the three-month periods ended March 31, 2022 and March 31, 2021, which did not meet the definition of a TDR. Excluding COVID-19 related modifications, consumer loans modified during the three-month periods ended March 31, 2022 and March 31, 2021, which did not meet the definition of a TDR, had a total amortized cost of $12.0 million and $9.8 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.

The following tables detail the number of contracts modified as TDRs during the three-month periods ended March 31, 2022 and 2021, as well as the amortized cost of these contracts at March 31, 2022 and 2021. The amortized cost pre-and post-modification is generally the same due to the fact that Park does not typically forgive principal.

 Three Months Ended
March 31, 2022
(In thousands)Number of
Contracts		AccruingNonaccrualTotal Amortized Cost
Commercial, financial and agricultural
Commercial, financial and agricultural2 $— $752 $752 
PPP loans— — — — 
Overdrafts— — — — 
Commercial real estate4 600 174 774 
Construction real estate:    
  Commercial— — — — 
  Retail— — — — 
Residential real estate:    
  Commercial1 — 107 107 
  Mortgage3 — 81 81 
  HELOC1 — 20 20 
  Installment4 28 27 55 
Consumer:
Consumer24 35 215 250 
GFSC— — — — 
Check loans— — — — 
Leases— — — — 
Total loans39 $663 $1,376 $2,039 
 Three Months Ended
March 31, 2021
(In thousands)Number of
Contracts		AccruingNonaccrualTotal Amortized Cost
Commercial, financial and agricultural
Commercial, financial and agricultural1 $— $200 $200 
PPP loans— — — — 
Overdrafts— — — — 
Commercial real estate5 272 1,353 1,625 
Construction real estate:
  Commercial— — — — 
  Retail— — — — 
Residential real estate:
  Commercial— — — — 
  Mortgage6 137 139 276 
  HELOC— — — — 
  Installment5 118 28 146 
Consumer:
Consumer34 72 287 359 
GFSC— — — — 
Check loans— — — — 
Leases— — — — 
Total loans51 599 2,007 2,606 

Of those loans which were modified and determined to be a TDR during the three-month period ended March 31, 2022, $0.6 million were on nonaccrual status at December 31, 2021. 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.
The following table presents the amortized cost 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, 2022 and 2021, respectively. 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 ACL resulting from the defaults on TDR loans was immaterial.
 
 Three Months Ended
March 31, 2022		Three Months Ended
March 31, 2021
(In thousands)Number of
Contracts		Amortized CostNumber of
Contracts		Amortized Cost
Commercial, financial and agricultural:
Commercial, financial and agricultural— $— — $— 
PPP loans— — — — 
Overdrafts— — — — 
Commercial real estate— — — — 
Construction real estate:
Commercial— — — — 
Retail1 643 — — 
Residential real estate:
Commercial— — — — 
Mortgage3 194 10 763 
HELOC2 58 — — 
Installment— — 2 36 
Consumer
Consumer16 128 19 210 
GFSC— — 5 25 
Check loans— — — — 
Leases— — — — 
Total loans 22 $1,023 36 $1,034 

Of the $1.0 million in modified TDRs which defaulted during the three-month period ended March 31, 2022, $4,000 were accruing loans and $1.0 million were nonaccrual loans. 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.