10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

(Mark One)    FORM 10-K 

☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022

	OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

 For the transition period from ____________ to ____________

 

Commission File Number 1-13006

PARK NATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

  

Ohio	31-1179518
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

50 North Third Street,	P.O. Box 3500	Newark,	Ohio	43058-3500
(Address of principal executive offices) (Zip Code)

 

(740)	349-8451
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, without par value	PRK	NYSE American

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

xYes ¨No

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

¨Yes xNo

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

xYes ¨No

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).

xYes ¨No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the Registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262 (b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).

☐Yes xNo

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the Registrant’s most recently completed second fiscal quarter: As of June 30, 2022, the aggregate market value of the Registrant’s common shares (the only common equity of the Registrant) held by non-affiliates of the Registrant was $1,919,044,873 based on the closing sale price as reported on NYSE American. For this purpose, executive officers and directors of the Registrant are considered affiliates.

Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the latest practicable date:

16,263,583 Common Shares, no par value per share, outstanding at February 28, 2023. 

DOCUMENT INCORPORATED BY REFERENCE

Document	Part Into Which Incorporated
Portions of the Registrant’s Definitive Proxy Statement for the Annual Meeting of Shareholders to be held on April 24, 2023	Part III

Glossary of Abbreviations and Acronyms

Park has identified the following list of abbreviations and acronyms that are used in this Annual Report on Form 10-K:

ACL	Allowance for credit losses	LGD	Loss given default
AFS	Available-for-sale	LIBOR	London Inter-bank Offered Rate
Allowance	Allowance for credit losses	MSRs	Mortgage servicing rights
AOCI	Accumulated other comprehensive (loss) income, net of taxes	NAV	Net asset value
ASC	Accounting standards codification	NewDominion	NewDominion Bank
ASU	Accounting standards update	OCI	Other comprehensive income (loss)
AUCL	Allowance for unfunded credit losses	OREO	Other real estate owned
CABF	CAB Financial Corporation and its subsidiaries	OWS	One-way sell
CARES Act	Coronavirus Aid, Relief, and Economic Security Act	Park	Park National Corporation and its subsidiaries unless context otherwise requires
Carolina Alliance	CAB Financial Corporation and its subsidiaries	Park National Bank	The Park National Bank
CECL	Current expected credit loss	PBRSUs	Performance-based restricted stock units
CME	Chicago Mercantile Exchange	PCD	Purchased credit deteriorated
Corporation	Park National Corporation and its subsidiaries	PCI	Purchased credit impaired
COVID-19	Novel coronavirus	PD	Probability of default
CRE	Commercial real estate	PNB	The Park National Bank
DCF	Discounted cash flow	PPP	CARES Act Paycheck Protection Program
FASB	Financial Accounting Standards Board	ROU	Right-of-use
Federal Reserve Board	Board of Governors of Federal Reserve System	SARs	Stock appreciation rights
FHLB	Federal Home Loan Bank	SBA	Small Business Administration
FRB	Federal Reserve Bank	SEC	U.S. Securities and Exchange Commission
GDP	Gross domestic product	SEPH	SE Property Holdings, LLC
GFSC	Guardian Financial Services Company	SOFR	Secured overnight financing rate
Guardian Finance	Guardian Financial Services Company	TBRSUs	Time-based restricted stock units
HPI	Home price index	TDRs	Troubled debt restructurings
HTM	Held-to-maturity	United States	United States of America
KSOP	Park's qualified retirement plan that combines an employee stock ownership plan (ESOP) with a 401(k) plan	U.S.	United States
IRLC	Interest rate lock commitment	U.S. GAAP	United States generally accepted accounting principles
LDA	Loss driver analysis	Vision	Vision Bancshares, Inc.

PART I

ITEM 1. BUSINESS.

The disclosures set forth in this Item are qualified by "ITEM 1A. RISK FACTORS" and the section captioned "FORWARD-LOOKING STATEMENTS" in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K and other cautionary statements set forth elsewhere in this Annual Report on Form 10-K.

General

Park National Corporation (“Park”) is a financial holding company subject to regulation under the Bank Holding Company Act of 1956, as amended (the “Bank Holding Company Act”). Park was initially incorporated under Delaware law in 1986 and began operations as a bank holding company in 1987.  In 1992, Park changed its state of incorporation to Ohio. Park’s principal executive offices are located at 50 North Third Street, Newark, Ohio 43055, and its telephone number is (740) 349-8451. Park’s common shares, each without par value (the “common shares”), are listed on NYSE American, under the symbol “PRK.”

Park maintains an internet site which can be accessed at http://www.parknationalcorp.com. Information contained in Park’s internet site does not constitute part of, and is not incorporated into, this Annual Report on Form 10-K. Park makes available free of charge on or through its internet site Park’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as Park’s definitive proxy statements filed pursuant to Section 14 of the Exchange Act, in each case as soon as reasonably practicable after Park electronically files such material with, or furnishes it to, the Securities and Exchange Commission (the “SEC”).

Park’s principal business consists of owning and supervising its subsidiaries. Although Park directs the overall policies of its subsidiaries, including lending policies and financial resources, most day-to-day affairs are managed by the respective officers of Park’s subsidiaries.

Human Capital

Park is a family of community banking teams that deliver an exceptional breadth and depth of resources to individuals and businesses. Our culture is deeply rooted in the values of service and philanthropy, and we believe strong communities are built with local volunteers, donations and leadership.

We believe the way we treat our clients, associates, and communities is what sets us apart from the competition and sustains our success.

Our associates are our most valued resource. We provide opportunities for growth and advancement by empowering our associates and offering ongoing training to develop knowledge and skills. We strive to provide a safe, fair, caring and courteous work environment.

Associate Profile

We operate 96 financial service offices in Ohio, northern Kentucky, and the Carolinas, with support staff located throughout our footprint and at various administration offices. As of December 31, 2022, we had 1,794 active associates, consisting of 1,632 full-time and 162 part-time.

Our branch delivery channels employ 33% of those associates. At December 31, 2022, our associate population was 69% female and 31% male, with an average tenure with Park of eight years.

Talent

We are committed to providing equal employment opportunities for all individuals. Our policy is to hire and promote individuals who best meet the requirements of available positions and who have the best potential for advancement.

Our Performance Management philosophy is to reward for performance. We have an annual goal setting process, with prompts for quarterly updates for supervisors and associates to review progress. We conduct an annual associate evaluation

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process that directly correlates with annual base salary reviews. Associates are encouraged to seek opportunities for improvement, both personally and professionally. We rely on their experience and knowledge to help us identify areas for improvement.

Career Pathways and Professional Development

Through Learning & Development ("L&D"), we work to foster professional growth by providing development opportunities to maximize associate performance, strengthen engagement and drive our competitive advantage. We enhance associates' knowledge and skills with high-quality, accessible training and professional development opportunities to support Park's mission of promoting long-term prosperity of the people and organizations we serve.

Our L&D team is a strategic business partner dedicated to supporting the organization and helping others meet their objectives. In 2022, this team continued building a strategic infrastructure for the development of associates aligned with overall business outcomes. This included streamlining training, enhancing the onboarding experience, overseeing associate development, finding learning solutions that promote belonging and connection, and supporting training needs across all lines of business.

Compensation & Benefits

Our compensation program includes market-aligned salary grades, an annual incentive compensation program for eligible associates, referral and rewards incentive programs available to associates based on job function, a long-term incentive plan ("LTIP") for select associates, and premium pay for associates working extended hours. We are in the process of reviewing and updating our compensation strategy to ensure we prioritize regular reviews and comparisons to current market data as an industry best practice.

Park offers comprehensive benefit options to encourage and support associates to live healthy and financially secure lives. Available benefits include an employee stock ownership plan ("KSOP") with a company matching contribution, a defined benefit pension plan, health and life insurance, dependent care assistance, a health flexible spending plan, a long-term disability plan, paid time off, tuition reimbursement for qualified schooling and an employee assistance program. As part of our strategic plan, we conducted a comprehensive review of all associate benefits. The first phase of this review, covering paid time off ("PTO") and the pension plan, was completed in 2022. The resulting enhancements to PTO and the pension plan took effect January 1, 2023 and position us to attract and retain associates. We will continue to review other components of our benefits package in 2023.

Health and Safety

We are committed to providing a safe environment for associates and customers, and the safe preservation and maintenance of our facilities and equipment.

Diversity, Equity and Inclusion ("DEI")

Diversity and inclusion are embedded in Park National Bank’s values and culture. We respect excellence, character and integrity – and we believe these virtues transcend culture, race, gender and age. We condemn prejudice on any level or any grounds. Our commitment to diversity and inclusion means providing every client or prospective client an equal opportunity to succeed financially. We believe it also means supporting a wide variety of community organizations and programs, and hiring associates from different backgrounds, locations and experiences.

In 2022, we expanded our DEI efforts by exploring new avenues for training and development for our associates. A group of associates attended a pilot DEI-focused workshop that included the opportunity to consider authentic stories from around the world that draw people into a bigger story where everyone is included. The purpose of the training is to:

•Create conditions that foster safe, honest, self-reflective, and productive dialogue;

•Encourage connection, listening, and curiosity to further appreciate differences and experiences; and

•Apply frameworks and tools to promote inclusion and influence change.

Park’s Board of Directors, leaders and DEI task force continue to pursue key goals in 2023 related to diversity, equity and inclusion.

Employee Culture & Retention

Our organization celebrates a unique culture based on shared values. Park associates are united by a spirit of empathy and compassion and a genuine desire to serve others, whether customers, communities or colleagues. Associates value an

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environment where they can grow personally and professionally. We believe that is why so many choose to build a career and stay with Park.

Our voluntary turnover was 19% for 2022. At the end of our KSOP plan year, October 1, 2022, 83% of our associates were shareholders through participation in our KSOP, under which we provide a discretionary 50% match for each associate’s regular contribution.

Our associate tenure reflects the effect of our efforts. By the end of 2022, 34% of our associates had been with our organization 10 years or more.

Banking Operations

Park’s banking operations are conducted through The Park National Bank, a national banking association ("Park National Bank" or "PNB"). Park National Bank engages in the commercial banking and trust business, generally in small and medium population areas in Ohio, North Carolina and South Carolina communities in addition to operations within the metropolitan areas of Columbus and Cincinnati, Ohio, Charlotte, North Carolina, and Louisville, Kentucky. As of the date of this Annual Report on Form 10-K, Park National Bank operated 96 financial service offices, including 92 branches, in Ohio, Kentucky, North Carolina and South Carolina. Park National Bank delivers financial products and services through its 96 financial service offices and a network of 115 automated teller machines, as well as telephone and internet-based banking through both personal computers and mobile devices, including ParkDirect, a mobile bank experience.

The reportable segment for the Corporation is PNB.

Consumer Finance Subsidiary

Guardian Finance, an Ohio consumer finance company, operates as a separate subsidiary of Park. Guardian Finance formerly provided consumer finance services in the central Ohio area. As of the date of this Annual Report on Form 10-K, Guardian Finance had one administrative office in Licking County, Ohio. During 2019, Guardian Finance stopped seeking new loans. At December 31, 2022, Guardian Finance loans outstanding totaled $529,000.

SE Property Holdings, LLC ("SEPH")

SEPH is a limited liability company, organized in 2011 under the laws of the State of Ohio, and a direct subsidiary of Park. The initial purpose of SEPH was to purchase other real estate owned (“OREO”) from Vision Bank, a bank subsidiary of Park until February 16, 2012, and continue to market such properties for sale. By letter dated January 30, 2012, the Federal Reserve Board authorized Park to engage in the business of extending credit through SEPH. As a result, SEPH is permitted to engage in lending activities and was able to succeed to the rights and obligations of Vision Bank in respect of the loans held by Vision Bank when Vision Bank merged into SEPH on February 16, 2012 (the "Vision Bank-SEPH Merger"). SEPH has operations in Ohio, with the sole purpose of such operations being to sell OREO in an effective and efficient manner and work out or sell problem loan situations with the respective borrowers.

Scope Leasing, Inc.

Scope Leasing, Inc. (which does business as “Scope Aircraft Finance”), a subsidiary of Park National Bank, specializes in aircraft financing. The customers of Scope Aircraft Finance include small businesses and entrepreneurs who utilize the aircraft for business or pleasure. Scope Aircraft Finance serves customers throughout the U.S. and Canada.

Vision Bancshares Trust I

In connection with the merger of Vision Bancshares, Inc. (“Vision”) into Park in March of 2007 (the “Vision Merger”), Park became the successor to Vision under (i) the Junior Subordinated Indenture, dated as of December 5, 2005 (the “Indenture”), pursuant to which Vision issued $15.5 million of junior subordinated notes to Vision Bancshares Trust I, a Delaware statutory trust (the “Vision Trust”). The junior subordinated notes were issued by Vision in connection with the sale by the Vision Trust of $15.0 million of floating rate preferred securities to institutional investors on December 5, 2005. Park also became the successor to Vision in (i) the Amended and Restated Trust Agreement of the Vision Trust, dated as of December 5, 2005 (the “Trust Agreement”), and (ii) the Guarantee Agreement, dated as of December 5, 2005 (the “Guarantee Agreement”). Through these contractual obligations, Park has fully and unconditionally guaranteed all of the Vision Trust’s obligations with respect to the floating rate preferred securities.

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Both the junior subordinated notes and the floating rate preferred securities mature on December 30, 2035 (which maturity may be shortened), and carry a floating interest rate per annum, reset quarterly, equal to the sum of three-month LIBOR plus 148 basis points. Effective June 30, 2023, LIBOR will cease to be the benchmark rate on the junior subordinated notes and floating rate preferred securities and will be replace by three-month CME Term SOFR as adjusted by the spread adjustment of 0.26161%. Payment of interest on the junior subordinated notes, and payment of cash distributions on the floating rate preferred securities, may be deferred at any time or from time to time for a period not to exceed 20 consecutive quarters, subject to specified conditions.

Under the terms of the Indenture and the related Guarantee Agreement, Park, as successor to Vision, is prohibited, subject to limited exceptions, from declaring or paying dividends or distributions on, or redeeming, repurchasing, acquiring or making any liquidation payments with respect to, any shares of Park’s capital stock (i) if an event of default under the Indenture has occurred and continues; (ii) if Park is in default with respect to the payment of any obligations under the Guarantee Agreement; or (iii) during any period in which the payment of interest on the junior subordinated notes by Park (and the payment of cash distributions on the floating rate preferred securities by the Vision Trust) is being deferred. The floating rate preferred securities are considered Tier 1 Capital under regulatory capital standards.

Other Subsidiaries

Park Investments, Inc. ("PII"), which is a subsidiary of Park National Bank, operates as an asset management company. Commencing in 2015, Park began purchasing and holding municipal bonds within PII. As of December 31, 2022, PII held municipal securities with an amortized cost of $423.3 million.

NSCB 2, LLC, River Park Properties, LLC, Park ABQ, LLC, and X Holdings, LLC are subsidiaries of Park National Bank that hold certain OREO properties or other nonperforming assets. The operations of these subsidiaries are not significant to the consolidated Park entity.

87A Orange Beach, LLC, Morningside Holding, LLC, Swindall Holdings, LLC, Swindall Partnership Holdings, LLC, Farm Holdings, LLC, Marina Holdings Z, LLC, Marina Holding WE, LLC, Alabama Apartment Holdings, LLC and Vision-Park Properties, L.L.C. are subsidiaries of SEPH that hold certain OREO properties. The operations of these subsidiaries are not significant to the consolidated Park entity.

Services Provided by Park’s Subsidiaries

Park National Bank provides the following principal services:

•the acceptance of deposits for demand, savings and time accounts and the servicing of those accounts;

•commercial, industrial, consumer and real estate lending, including installment loans, credit cards (which are offered through a third party), home equity lines of credit and commercial leasing;

•a national portfolio of loans to non-bank consumer finance companies;

•trust and wealth management services;

•aircraft financing;

•cash management;

•safe deposit operations;

•electronic funds transfers;

•internet and mobile banking solutions with bill pay service; and

•ParkDirect, a personal banking app.

Park believes that the deposit mix of Park National Bank is currently such that no material portion has been obtained from a single customer and, consequently, the loss of any one customer of Park National Bank would not have a materially adverse effect on the business of Park National Bank.

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Guardian Finance formerly provided consumer finance services. During 2019, Guardian Finance stopped seeking new loans.

Lending Activities

Park National Bank deals with consumers and a wide cross-section of businesses and corporations located primarily in the 26 Ohio counties, one Kentucky county, four North Carolina counties and four South Carolina counties served by the financial service offices of Park National Bank. At December 31, 2022, Park National Bank had no concentration of loans to borrowers engaged in the same or similar industries that exceeded 10% of total loans nor did it have any loans outstanding to persons domiciled outside the U.S. As a result of the Vision Bank-SEPH Merger, SEPH holds loans originated by Vision Bank previously serviced by the financial service offices of Vision Bank. It is expected that SEPH will originate loans only to further the collection efforts with respect to the loans transferred to SEPH by operation of law as a result of the Vision Bank-SEPH Merger. Such origination (or modification) volume has been and is expected to continue to be insignificant to the consolidated Park entity.

Park National Bank makes lending decisions in accordance with the written loan policies adopted by Park which are designed to maintain acceptable loan quality. Park National Bank originates and retains for its own portfolio commercial and commercial real estate loans, commercial leases, residential real estate loans, home equity lines of credit, and installment loans. Park National Bank also originates fixed-rate residential real estate loans for sale to the secondary market.

There are certain risks inherent in making loans. These risks include changes in the credit worthiness of borrowers over the time period in which loans may be repaid, interest rate changes over the time period in which loans may be repaid, risks resulting from changes in the national and local economies, risks inherent in dealing with borrowers and, in the case of loans secured by collateral, risks resulting from uncertainties about the future value of the collateral.

Commercial Loans

At December 31, 2022, Park’s subsidiaries (including Scope Aircraft Finance) had approximately $3,115 million in commercial loans (commercial, financial and agricultural loans and commercial real estate loans) and commercial leases outstanding, representing approximately 43.6% of their total aggregate loan portfolio as of that date. Of this amount, approximately $1,301 million represented commercial, financial and agricultural loans, $1,794 million represented commercial real estate loans, and $20 million represented commercial leases.

Commercial loans are made for a wide variety of general corporate purposes, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, commercial leasing, and loans originated by consumer finance companies. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. Information concerning the loan maturity distribution within the commercial loan portfolio is provided in "Table 15 - Loan Maturity Distribution" included in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K.

The commercial loan portfolio of Park’s current subsidiaries includes loans to a wide variety of corporations and businesses across many industrial classifications in the 26 Ohio counties, one Kentucky county, four North Carolina counties and four South Carolina counties where Park National Bank operates, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies. The primary industries represented by these customers include real estate rental and leasing, finance and insurance, construction, health care and social assistance, accommodation and food services, manufacturing, other services, retail trade, and agriculture, forestry, fishing and hunting.

Commercial loans are evaluated for the adequacy of repayment sources at the time of approval and are regularly reviewed for any possible deterioration in the ability of the borrower to repay the loan. The credit information required generally includes, depending on the amount of money lent, financial statements, third-party prepared financial statements, two years of federal income tax returns and a current credit report. Loan terms include amortization schedules commensurate with the purpose of each loan, identification of the source of each repayment and the risk involved. In most instances, collateral is required to provide an additional source of repayment in the event of default by a commercial borrower. The structure of the collateral package, including the type and amount of the collateral, varies from loan to loan depending on the financial strength of the borrower, the amount and terms of the loan and the collateral available to be pledged by the borrower. Most often, the collateral is inventory, machinery, accounts receivable and/or real estate. The guarantee of the business owners/principals is generally required on loans made to closely-held business entities.

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Commercial real estate loans (“CRE loans”) include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for CRE loans is the underlying commercial real estate. Park National Bank generally requires that the CRE loan amount be no more than 85% of the purchase price or the appraised value of the commercial real estate securing the CRE loan, whichever is less. CRE loans made for Park National Bank’s portfolio generally have a variable interest rate. For more information concerning the loan maturity distribution in the CRE loan portfolio, please see "Table 15 - Loan Maturity Distribution" included in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K.

The regulatory limit for loans made to one borrower by Park National Bank was $144.0 million at December 31, 2022. Participations in a loan by Park National Bank in an amount larger than $47.0 million are generally sold to third-party banks or financial institutions. While Park National Bank has a loan limit of $144.0 million, the total exposure of the largest single borrower within the commercial portfolio was $75.0 million at December 31, 2022.

Park has an independent, internal loan review program which annually evaluates all loans greater than $1.0 million, all new loans greater than $1.0 million in its metropolitan markets of Columbus, Ohio, Cincinnati, Ohio, Louisville, Kentucky, and Charlotte, North Carolina, all new loans greater than $500,000 in all other markets, and a risk-based sample of loans less than $1.0 million. If a loan has deteriorated, Park takes prompt action designed to increase the likelihood that it will be repaid. Upon detection of the reduced ability of a borrower to service interest and/or principal on a loan, Park may downgrade the loan and, under certain circumstances, place the loan on nonaccrual status. Park then works with the borrower to develop a payment schedule which it anticipates will permit service of the principal and interest on the loan by the borrower. Loans which deteriorate and show the inability of a borrower to repay principal are charged down to the net realizable value of collateral. A collection specialist/work-out officer is available to assist when a credit deteriorates. Information about Park’s policy for placing loans on nonaccrual status is included under the caption “Loans” in "Note 1 - Summary of Significant Accounting Policies" of the Notes to Consolidated Financial Statements found in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K.

Commercial loans are generally viewed as having a higher credit risk than consumer loans because commercial loans typically involve larger loan balances to a single borrower and are more susceptible to a risk of default during an economic downturn. Commercial loans also generally have variable interest rates. Park uses several indices for commercial loans that help determine loan interest rates, but the national prime rate is the most common index used. Credit risk for commercial loans arises from borrowers lacking the ability or willingness to pay principal or interest and, in the case of secured loans, by a shortfall in the collateral value in relation to the outstanding loan balance in the event of a default and subsequent liquidation of collateral. The underwriting of generally all commercial loans, regardless of type, includes cash flow analyses with rates shocked by 400 basis points. In the case of commercial loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of each borrower to collect amounts due from the borrower's customers. In the case of Park's commercial loans to non-bank consumer finance companies, the underlying cash flows are supported at times by sub-prime individual borrowers and present a higher level of risk compared to a more typical commercial loan to a business. Other collateral securing commercial loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the borrower’s business. Information concerning the loan loss experience and the allocation of the allowance for credit losses related to the commercial, financial and agricultural loan portfolio, the commercial real estate portfolio and the commercial lease portfolio is provided in "Table 30 - Summary of Loan Credit Loss Experience" and "Table 32 - Allocation of Allowance for Credit Losses", respectively, included in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" found in Annual Report on Form 10-K.

Loans to Non-Bank Consumer Finance Companies

At December 31, 2022, Park National Bank had $417 million in loans outstanding to non-bank consumer finance companies. This is a national lending unit of Park National Bank. These asset-based loans are collateralized by cash flows from individuals, typically auto loans issued by a consumer finance company that is, in turn, a borrower from Park National Bank. These loans typically present a higher level of risk due to the underlying collateral and such risks are mitigated by more conservative underwriting and an intensive loan monitoring regimen commensurate with asset-based lending.

Aircraft Financing

Scope Aircraft Finance specializes in aircraft financing. The customers of Scope Aircraft Finance include small businesses and entrepreneurs intending to use the aircraft for business or pleasure. The customers of Scope Aircraft Finance are located throughout the United States. The lending officers of Scope Aircraft Finance are experienced in the aircraft financing industry and rely upon such experience and certain industry guides in determining whether to grant an aircraft loan or lease. At

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December 31, 2022, Scope Aircraft Finance had $296 million in loans outstanding, primarily secured by aircraft (which are included in the commercial loan portfolio).

Consumer Loans

At December 31, 2022, Park's subsidiaries had outstanding consumer loans (including automobile loans) in an aggregate amount of $1,905 million, constituting approximately 26.7% of their aggregate total loan portfolio. Park makes installment credit available to customers and prospective customers in their primary market areas through direct and indirect loans. Indirect loans are facilitated through an automobile and other vehicle dealer; whereas, direct loans are originated through direct customer interaction within Park's regions. For both direct and indirect loans, the final credit decisions are made by Park with the assistance of an automated underwriting platform (system). At December 31, 2022, of the $1,905 million in consumer loans, $1,714 million were originated through indirect lending, while the remaining $191 million were considered direct loans. At December 31, 2022, of the $1,905 million in consumer loans, GFSC had outstanding consumer loans of $274,000 and Park National Bank held the balance.

Credit approval for direct and indirect consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. It is the policy of Park to adhere strictly to all laws and regulations governing consumer lending. A compliance officer, along with the appropriate line of business leaders, is responsible for monitoring performance and advising and updating loan personnel in this area. Loans are charged off in accordance with Park's policy. Information about Park’s policy for placing loans on nonaccrual status and charging off loans is included under the caption “Loans” in "Note 1 - Summary of Significant Accounting Policies" of the Notes to Consolidated Financial Statements found in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K.

Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on borrowers' continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount that can be recovered on these loans. Information concerning the loan credit loss experience and the allocation of the allowance for credit losses related to the consumer loan portfolio is provided in "Table 30 - Summary of Loan Credit Loss Experience" and "Table 32 - Allocation of Allowance for Credit Losses", respectively, included in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K.

Residential Real Estate and Construction Loans

At December 31, 2022, Park's subsidiaries had outstanding approximately $2,122 million in construction real estate loans and residential real estate loans, representing approximately 29.7% of total loans outstanding. Of the $2,122 million, approximately $1,797 million was included within the residential real estate loan segment, which included $550 million of commercial loans secured by residential real estate, $1,076 million of mortgage loans, $167 million of home equity lines of credit and $4 million of installment loans. The remaining $325 million was included within the construction real estate loan segment, which included $209 million of commercial land and development loans and $116 million of 1-4 family residential construction loans. The market area for real estate lending by Park National Bank is concentrated in Ohio, Kentucky, North Carolina and South Carolina.

Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and a current independent third-party appraisal providing the market value of the real estate securing the loan. Residential real estate loans are generally analyzed through an automated underwriting platform (system) to determine a risk classification. All loans receiving a risk classification of caution require review by a senior lender and generally require additional documentation if the loan is approved.

Park National Bank generally requires that the residential real estate loan amount be no more than 80% of the purchase price or the appraised value of the real estate securing the loan, whichever is less, unless private mortgage insurance is obtained by the borrower. Loans in this lending category that are made to be held in Park National Bank's portfolio are both fixed-rate and adjustable-rate, fully amortized mortgages. The rates used are generally fully-indexed rates. From time to time, Park may offer a limited-time promotional rate on funds advanced on newly-originated home equity lines of credit. Park National Bank also originates fixed-rate real estate loans for sale to the secondary market. Park’s management may decide to retain certain 15-year, fixed-rate residential mortgage loans, rather than sell in the secondary market. Park's management made a decision to retain certain 15-year, fixed-rate residential mortgage loans in 2022. At December 31, 2022 and 2021, Park reported $550

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million and $573 million, respectively, of 15-year, fixed-rate residential mortgage loans on Park's Consolidated Balance Sheets. Real estate loans are typically secured by first mortgages with evidence of title in favor of the lender in the form of an attorney’s opinion of title or a title insurance policy. Park National Bank has also required proof of hazard insurance with the lender named as the mortgagee and as the loss payee. Independent third-party appraisals are generally obtained for consumer real estate loans.

Home equity lines of credit are generally secured by second mortgages in favor of Park National Bank. The maximum amount of a home equity line of credit is generally limited to 85% of the appraised value of the property less the balance of the first mortgage. The home equity lines of credit are written with ten-year terms. A variable interest rate is generally charged on the home equity lines of credit.

Information concerning the loan credit loss experience and the allocation of the allowance for credit losses related to the residential real estate portfolio is provided in "Table 30 - Summary of Loan Credit Loss Experience" and "Table 32 - Allocation of Allowance for Credit Losses", respectively, included in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K.

Construction loans include commercial construction loans as well as residential construction loans. Construction loans may be in the form of a permanent loan or a short-term construction loan, depending on the needs of the individual borrower. Generally, the permanent construction loans have a variable interest rate although a permanent construction loan may be made with a fixed interest rate for a term generally not exceeding five years. Short-term construction loans are generally made with variable interest rates. Information concerning the loan maturity distribution within the construction financing portfolio is provided in "Table 15 - Loan Maturity Distribution" included in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS of this Annual Report on Form 10-K.

Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, Park National Bank may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, Park National Bank may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event a default on a construction loan occurs and foreclosure follows, Park National Bank must take control of the project and attempt either to arrange for completion of construction or to dispose of the unfinished project. Additional risk exists with respect to a loan made to a developer who does not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. Park National Bank attempts to reduce such risks on loans to developers by requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer. For additional information concerning the loan credit loss experience, please see “ITEM 1A. RISK FACTORS – Economic, Political and Market Risks – Changes in economic and political conditions could adversely affect our earnings and capital through declines in deposits, quality of investment securities, loan demand, our borrowers’ ability to repay loans, and the value of the collateral securing our loans.” and “– Business Operations Risks – Our allowance for credit losses may prove to be insufficient to absorb the expected, lifetime losses in our loan portfolio.” in this Annual Report on Form 10-K. Information concerning the loan credit loss experience and the allocation of the allowance for credit losses related to the construction financing portfolio is provided in "Table 30 - Summary of Loan Credit Loss Experience" and "Table 32 - Allocation of Allowance for Credit Losses", respectively, included in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K.

SEPH

SEPH is a non-bank subsidiary of Park that holds OREO property and non-performing loans. In addition to approximately $1.4 million in OREO property, SEPH also held non-performing loans that were fully charged off as of December 31, 2022, all of which were on nonaccrual status. SEPH has one office in Licking County, Ohio. The SEPH employees work with a third-party work-out specialist to ensure effective and efficient resolution to the non-performing loans and OREO, while working closely with the borrowers of the loans to maximize collection efforts. Park expects that the OREO will reduce over time and result in cash inflow to Park.

Competition

The financial services industry is highly competitive. Park’s subsidiaries compete with other local, regional and national service providers, including banks, savings associations, credit unions and other types of financial institutions and

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finance companies. Other competitors include securities dealers, brokers, mortgage bankers, investment advisors and financial services subsidiaries of commercial and manufacturing companies. Competition for quality customers has intensified as a result of changes in regulations, mergers and acquisitions, advances in technology and product delivery systems, consolidation among financial service providers, bank failures and the conversion of former investment banks to bank holding companies.

The primary factors in competing for loans are the terms of the loan, interest rates charged and overall services provided to borrowers. The primary factors in competing for deposits are interest rates paid on deposits, account liquidity, convenience and hours of office locations, convenience and availability of mobile banking options, and accessibility to trained and competent staff. Competitors of Park may have greater resources and, as such, additional technology offerings and higher lending limits, which may adversely affect the ability of Park to compete. In addition, certain nonfinancial institutions with which Park competes enjoy the benefits of fewer regulatory constraints, broader geographic service areas, greater capital and lower cost structures. Financial technology companies, or "fintechs," are also providing nontraditional, but increasingly strong competition for our borrowers, depositors and other customers.

Associates

At December 31, 2022, Park and its subsidiaries had 1,794 active associates, consisting of 1,632 full-time and 162 part-time, resulting in 1,725 full-time equivalent associates.

Supervision and Regulation of Park and Park's Subsidiaries

Park, Park National Bank and Park’s other subsidiaries are subject to extensive regulation by federal and state agencies. The regulation of financial holding companies and their subsidiaries is intended primarily for the protection of consumers, depositors, borrowers, the Deposit Insurance Fund (the "DIF") of the Federal Deposit Insurance Corporation (the "FDIC") and the banking system as a whole and not for the protection of shareholders. Applicable laws and regulations restrict permissible activities and investments and require actions to protect loan, deposit, brokerage, fiduciary and other customers, as well as the DIF. Such laws and regulations may also restrict Park’s ability to repurchase its common shares or to receive dividends from Park National Bank and may impose capital adequacy and liquidity requirements.

As a financial holding company, Park is subject to regulation by the Federal Reserve Board under the Bank Holding Company Act and to inspection, examination and supervision by the Federal Reserve Board. Park is also subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended (the "Securities Act"), and the Exchange Act, as administered by the SEC. Park’s common shares are listed on NYSE American under the trading symbol “PRK,” which subjects Park to the requirements under the applicable sections of the NYSE American Company Guide for listed companies.

Park National Bank, as a national banking association, is subject to regulation, supervision and examination primarily by the Office of the Comptroller of the Currency (the "OCC") and secondarily by the FDIC.

    The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended (the "Dodd-Frank Act"), established the Consumer Financial Protection Bureau (the "CFPB"), which regulates consumer financial products and services and certain financial services providers. The CFPB is authorized to prevent unfair, deceptive or abusive acts or practices and ensures consistent enforcement of laws so that consumers have access to fair, transparent and competitive markets for consumer financial products and services. Since its establishment, the CFPB has extensively exercised its rulemaking and interpretative authority.

Guardian Finance, a subsidiary of Park and an Ohio state-chartered consumer finance company, is subject to regulation, supervision and examination by the Ohio Division of Financial Institutions (the "ODFI") and the Federal Reserve Board.

As a subsidiary of Park, SEPH is also subject to inspection, examination and supervision by the Federal Reserve Board.

The following information describes selected federal and state statutory and regulatory provisions and is qualified in its entirety by reference to the full text of such provisions. These statutes and regulations are continually under review by the U.S. Congress and state legislatures and federal and state regulatory agencies. A change in statutes, regulations or regulatory policies applicable to Park and Park's subsidiaries could have a material effect on their respective businesses.

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Regulation of Financial Holding Companies

As a financial holding company, Park’s activities are subject to regulation by the Federal Reserve Board. Park is subject to regular examinations by the Federal Reserve Board and is required to file reports and such additional information as the Federal Reserve Board may require.

The Federal Reserve Board also has enforcement authority over financial holding companies, including, but not limited to, the ability to:

•assess civil money penalties;

•issue cease and desist or removal orders; and

•require that a financial holding company divest subsidiaries (including a subsidiary bank).

In general, the Federal Reserve Board may initiate enforcement actions for violations of laws and regulations and unsafe or unsound practices.

A financial holding company is required by law and Federal Reserve Board policy to act as a source of financial and managerial strength to each subsidiary bank and to commit resources to support each such subsidiary bank. The Federal Reserve Board may require a financial holding company to contribute additional capital to an undercapitalized subsidiary bank and may disapprove of the payment of dividends to shareholders if the Federal Reserve Board believes the payment of such dividends would be an unsafe or unsound practice.

The Bank Holding Company Act requires the prior approval of the Federal Reserve Board in any case where a financial holding company proposes to:

•acquire direct or indirect ownership or control of more than 5% of the voting shares of any bank that is not already majority-owned by the financial holding company;

•acquire all or substantially all of the assets of another bank or another financial or bank holding company; or

•merge or consolidate with any other financial or bank holding company.

A qualifying bank holding company may elect to become a financial holding company and thereby affiliate with securities firms and insurance companies and engage in other activities that are financial in nature and not otherwise permissible for a bank holding company, if: (i) the holding company is "well managed" and "well capitalized" and (ii) each of its subsidiary banks (a) is well capitalized under the Federal Deposit Insurance Corporation Act of 1991 prompt corrective action provisions, (b) is well managed, and (c) has at least a "satisfactory" rating under the Community Reinvestment Act (the “CRA”). Park became a financial holding company in 2014. No regulatory approval is required for a financial holding company to acquire a company, other than a bank or savings association, engaged in activities that are financial in nature or incidental to activities that are financial in nature, as determined by the Federal Reserve Board.

The Financial Services Modernization Act defines “financial in nature” to include:

•securities underwriting, dealing and market making;

•sponsoring mutual funds and investment companies;

•insurance underwriting and agency;

•merchant banking; and

•activities that the Federal Reserve Board has determined to be closely related to banking.

A national bank also may engage, subject to limitations on investment, in activities that are financial in nature, other than insurance underwriting, insurance company portfolio investment, real estate development and real estate investment, through a financial subsidiary of the bank if the bank is well capitalized and well managed and has at least a satisfactory CRA rating. If a financial holding company or a subsidiary bank fails to maintain all requirements for the holding company to

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maintain financial holding company status, material restrictions may be placed on the activities of the holding company and its subsidiaries and on the ability of the holding company to enter into certain transactions and obtain regulatory approvals for new activities and transactions. The holding company could also be required to divest itself of subsidiaries that engage in activities that are not permitted for bank holding companies that are not financial holding companies. If restrictions are imposed on the activities of a financial holding company, the existence of such restrictions may not be made publicly available pursuant to confidentiality regulations of the bank regulatory agencies.

Each subsidiary bank of a financial holding company is subject to certain restrictions on the maintenance of reserves against deposits, extensions of credit to the financial holding company and its subsidiaries, investments in the stock and other securities of the financial holding company and its subsidiaries and the taking of such stock and securities as collateral for loans to borrowers. Further, a financial holding company and its subsidiaries are prohibited from engaging in certain tying arrangements in connection with any extension of credit, lease or sale of property or furnishing of any services. Various consumer laws and regulations also affect the operations of these subsidiaries.

In April 2020, the Federal Reserve Board adopted a final rule to revise its regulations related to determinations of whether a company has the ability to exercise a controlling influence over another company for purposes of the Bank Holding Company Act. The final rule expands and codifies the presumptions for use in such determinations. By codifying the presumptions, the final rule provides greater transparency on the types of relationships that the Federal Reserve Board generally views as supporting a facts-and-circumstances determination that one company controls another company. The Federal Reserve Board’s final rule applies to questions of control under the Bank Holding Company Act, but does not extend to the Change in Bank Control Act.

Economic Growth, Regulatory Relief and Consumer Protection Act

On May 25, 2018, the Economic Growth, Regulatory Relief and Consumer Protection Act (the "Regulatory Relief Act") was enacted, which repealed or modified certain provisions of the Dodd-Frank Act and eased restrictions on all but the largest banks (those with consolidated assets in excess of $250 billion). Bank holding companies with consolidated assets of less than $100 billion, including Park, are no longer subject to enhanced prudential standards. The Regulatory Relief Act also relieves bank holding companies and banks with consolidated assets of less than $100 billion, including Park, from certain record-keeping, reporting and disclosure requirements. Certain other regulatory requirements applied only to banks with consolidated assets in excess of $50 billion and so did not apply to Park even before the enactment of the Regulatory Relief Act.

Transactions with Affiliates, Directors, Executive Officers and Shareholders

Sections 23A and 23B of the Federal Reserve Act and Federal Reserve Board Regulation W generally:

•limit the extent to which a bank or its subsidiaries may engage in “covered transactions” with any one affiliate to an amount equal to 10.0% of the bank's capital stock and surplus;

•limit the extent to which a bank or its subsidiaries may engage in “covered transactions” with all affiliates to an amount equal to 20.0% of the bank's capital stock and surplus; and

•require that all such transactions be on terms substantially the same, or at least as favorable to the bank or subsidiary, as those provided to a non-affiliate.

An affiliate of a bank is any company or entity that controls, is controlled by or is under common control with the bank. The term “covered transaction” includes the making of loans to the affiliate, the purchase of assets from the affiliate, the issuance of a guarantee on behalf of the affiliate, the purchase of securities issued by the affiliate and other similar types of transactions.

A bank’s authority to extend credit to executive officers, directors and greater than 10.0% shareholders, as well as entities such persons control, is subject to Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O promulgated thereunder by the Federal Reserve Board. Among other things, these loans must be made on terms (including interest rates charged and collateral required) substantially similar to those offered to unaffiliated individuals or be made as part of a benefit or compensation program on terms widely available to employees and must not involve a greater than normal risk of repayment. In addition, the amount of loans a bank may make to these persons is based, in part, on the bank’s capital position, and specified approval procedures must be followed in making loans which exceed specified amounts.

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Regulation of Nationally-Chartered Banks

As a national banking association, Park National Bank is subject to regulation under the National Bank Act and is periodically examined by the OCC. OCC regulations govern permissible activities, capital requirements, dividend limitations, investments, loans and other matters. Furthermore, Park National Bank is subject, as a member bank, to certain rules and regulations of the Federal Reserve Board, many of which restrict activities and prescribe documentation to protect consumers. Park National Bank is an insured depository institution and a member of the DIF. As a result, it is subject to regulation and deposit insurance assessments by the FDIC. In addition, the establishment of branches by Park National Bank is subject to prior approval of the OCC. The OCC has broad enforcement powers over national banks, including the power to impose fines and other civil and criminal penalties and to appoint a conservator or receiver if any of a number of conditions are met.

The CFPB regulates consumer financial products and services provided by Park National Bank through regulations designed to protect consumers. Currently, the OCC is primarily responsible for examining Park National Bank’s compliance with the CFPB regulations and federal consumer financial protection laws. However, should Park’s total consolidated assets exceed $10.0 billion for four consecutive quarters, the CFPB will become primarily responsible for examining Park National Bank’s compliance with such laws and regulations.

Federal Deposit Insurance

The FDIC is an independent federal agency which insures the deposits, up to prescribed statutory limits, of federally-insured banks and savings associations and safeguards the safety and soundness of the financial institution industry. The general insurance limit is $250,000 per separately insured depositor. This insurance is backed by the full faith and credit of the U.S. government.

As insurer, the FDIC is authorized to conduct examinations of and to require reporting by insured institutions, including Park National Bank, to prohibit any insured institution from engaging in any activity the FDIC determines by regulation or order to pose a threat to the DIF, and to take enforcement actions against insured institutions. The FDIC may terminate insurance of deposits of any insured institution if the FDIC finds that the insured institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC or any other regulatory agency.

The FDIC assesses a quarterly deposit insurance premium on each insured institution based on perceived risk characteristics of the insured institution to the DIF, with institutions deemed less risky paying lower rates. Currently, assessments for institutions of less than $10.0 billion of total assets are based on financial measures and supervisory ratings derived from statistical models estimating the probability of failure within three years. The FDIC may increase or decrease the range of assessments uniformly, except that no adjustment can deviate more than two basis points from the base assessment rate without notice and comment rulemaking. The FDIC may also impose special assessments in emergency situations. The premiums fund the DIF.

The FDIC has established 2.0% as the designated reserve ratio ("DRR"), which is the amount in the DIF as a percentage of all DIF insured deposits. In March 2016, the FDIC adopted final rules designed to meet the statutory minimum DRR of 1.35% by September 30, 2020, the deadline imposed by the Dodd-Frank Act. The Dodd-Frank Act required the FDIC to offset the effect on insured institutions with assets of less than $10.0 billion of the increase in the statutory minimum DRR to 1.35% from the former statutory minimum of 1.15%. Although the FDIC's rules reduced assessment rates on all banks, they imposed a surcharge on banks with assets of $10.0 billion or more to be paid until the DRR reached 1.35%. The DRR reached 1.35% on September 30, 2018. As a result, the previous surcharge imposed on banks with assets of $10.0 billion or more was lifted. In addition, preliminary assessment credits were determined by the FDIC for banks with assets of less than $10 billion for the portion of their assessments that contributed to the increase of the DRR to 1.35%. On June 30, 2019, the DRR reached 1.40%, and the FDIC applied credits for banks with assets of less than $10.0 billion ("small bank credits") beginning September 30, 2019. As of June 30, 2020, the DRR fell below the minimum DRR to 1.30%. As a result, the FDIC adopted a restoration plan requiring the restoration of the DRR to 1.35% within eight years of the plan establishment, by September 30, 2028. The DRR was 1.26% as of September 30, 2022. Since the DRR remained below the statutory minimum, the FDIC adopted a final rule in October 2022 increasing the assessment rate from three basis points to five basis points beginning with the first quarterly assessment period of 2023 (i.e., January 1 through March 31, 2023). The revised rate schedules are intended to increase the likelihood that the DRR reaches the statutory minimum level of 1.35% by September 30, 2028. As of December 31, 2022, the DRR remained below the statutory minimum of 1.35%.

The FDIC rules further changed the method of determining risk-based assessment rates for established banks with less than $10.0 billion in assets to better ensure that banks taking on greater risks pay more for deposit insurance than banks that take on less risk. In the event Park’s total consolidated assets exceed $10.0 billion for four consecutive quarters, Park National Bank will become subject to the FDIC’s large bank pricing methodology, which may result in a different, and potentially higher, assessment rate.

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Federal Home Loan Bank

The Federal Home Loan Banks (“FHLB”) provide credit to their members in the form of advances. Park National Bank is a member of the FHLB of Cincinnati. As an FHLB member, Park National Bank must maintain an investment in the capital stock of the FHLB of Cincinnati.

Upon the origination or renewal of a loan or advance, each FHLB is required by law to obtain and maintain a security interest in certain types of collateral. Each FHLB is required to establish standards of community investment or service that its members must maintain for continued access to long-term advances from the FHLB. The standards take into account a member’s performance under the CRA, and the member’s record of lending to first-time home buyers.

Regulatory Capital

The Federal Reserve Board has adopted risk-based capital guidelines for financial holding companies and other bank holding companies as well as state member banks. The OCC and the FDIC have adopted risk-based capital guidelines for national banks and state non-member banks, respectively. The guidelines provide a systematic analytical framework which makes regulatory capital requirements sensitive to differences in risk profiles among banking organizations, takes off-balance sheet exposures expressly into account in evaluating capital adequacy, and minimizes disincentives to holding liquid, low-risk assets. Capital levels, as measured by these standards, are also used to categorize financial institutions for purposes of certain prompt corrective action regulatory provisions.

In July 2013, the U.S. banking regulators issued capital rules applicable to smaller banking organizations which also implement certain of the provisions of the Dodd-Frank Act (the “Basel III Capital Rules”). Community banking organizations, including Park and Park National Bank, began transitioning to the new rules on January 1, 2015. The minimum capital requirements became effective on January 1, 2015; whereas, the capital conservation buffer and deductions from common equity capital phased in from January 1, 2016 through January 1, 2019, and most deductions from common equity tier 1 capital phased in from January 1, 2015 through January 1, 2019.

The Basel III Capital Rules include: (i) a minimum common equity tier 1 capital ratio of 4.5%; (ii) a minimum tier 1 capital ratio of 6.0%; (iii) a minimum total capital ratio of 8.0%; and (iv) a minimum leverage ratio of 4.0%.

Common equity for the common equity tier 1 capital ratio generally consists of common stock (plus related surplus), retained earnings, accumulated other comprehensive income (unless an institution elects to exclude such income from regulatory capital), and limited amounts of minority interests in the form of common stock, subject to applicable regulatory adjustments and deductions.

Tier 1 capital generally consists of common equity as defined for the common equity tier 1 capital ratio, plus certain non-cumulative preferred stock and related surplus, cumulative preferred stock and related surplus, trust preferred securities that have been grandfathered (but which are not otherwise permitted), and limited amounts of minority interests in the form of additional tier 1 capital instruments, less certain deductions.

Tier 2 capital, which can be included in the total capital ratio, generally consists of other preferred stock and subordinated debt meeting certain conditions plus limited amounts of the allowance for credit losses, subject to specified eligibility criteria, less applicable deductions.

The deductions from common equity tier 1 capital include goodwill and other intangibles, certain deferred tax assets, mortgage-servicing assets above certain levels, gains on sale in connection with a securitization, investments in a banking organization’s own capital instruments and investments in the capital of unconsolidated financial institutions (above certain levels).

Under the guidelines, capital is compared to the relative risk included in the balance sheet. To derive the risk included in the balance sheet, one of several risk weights is applied to different balance sheet and off-balance sheet assets, primarily based on the relative credit risk of the counterparty. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The Basel III Capital Rules also place restrictions on the payment of capital distributions, including dividends and stock repurchases, and certain discretionary bonus payments to executive officers if the banking organization does not hold a capital conservation buffer of greater than 2.5% composed of common equity tier 1 capital above its minimum risk-based

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capital requirements, or if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5% at the beginning of the quarter.

In December 2018, the federal banking agencies issued a final rule to address regulatory treatment of credit loss allowances under CECL. The rule revised the federal banking agencies’ regulatory capital rules to identify which credit loss allowances under the CECL model are eligible for inclusion in regulatory capital and to provide banking organizations the option to phase in over three years the day-one adverse effects on regulatory capital that may result from the adoption of the CECL model. Concurrent with the enactment of the CARES Act, in March 2020, federal banking agencies issued an interim final rule that delayed the estimated impact on regulatory capital resulting from the adoption of CECL. The interim final rule provided banking organizations that implemented CECL prior to the end of 2020 the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of capital benefit provided during the initial two-year delay. On August 26, 2020, the federal banking agencies issued a final rule that made certain technical changes to the interim final rule, including expanding the pool of eligible institutions. The changes in the final rule applied only to those banking organizations that elected the CECL transition relief provided for under the rule. Under the Consolidated Appropriations Act, 2021, bank holding companies and their affiliates had the option of postponing implementation of CECL until the earlier of (i) the first day of the fiscal year that begins after the date on which the national emergency concerning COVID-19 terminates or (ii) January 1, 2022. Congress provided this reprieve for a variety of reasons, including the fact that COVID-19 had created a volatile, uncertain lending environment that may result in significant credit losses for banks. Park adopted CECL on January 1, 2021.

In September 2019, consistent with Section 201 of the Regulatory Relief Act, the Federal Reserve Board, along with the other federal bank regulatory agencies, issued a final rule, effective January 1, 2020, that gave community banks, including Park National Bank, the option to calculate a simple leverage ratio to measure capital adequacy, if the community banks met certain requirements. Under the rule, a community bank was eligible to elect the Community Bank Leverage Ratio (“CBLR”) framework if it had less than $10.0 billion in total consolidated assets, limited amounts of certain trading assets and liabilities, limited amounts of off-balance sheet exposures and a leverage ratio greater than 9.0%. Pursuant to the CARES Act, on August 26, 2020, the federal banking agencies adopted a final rule, effective on October 1, 2020, that temporarily lowered the CBLR threshold and provided a gradual transition back to the prior level. Specifically, the CBLR threshold was reduced to 8.0% for the remainder of 2020, increased to 8.5% for 2021, and returned to 9.0% on January 1, 2022. Park did not utilize the CBLR in assessing capital adequacy.

In October 2021, effective in November 2021, the FDIC issued a final rule to incorporate the CBLR rule into the Real Estate Lending Standards. This rule calculates the ratio of loans in excess of the supervisory loan-to-value limits (“LTV Limits”) using tier 1 capital plus the appropriate allowance for credit losses in the denominator. This rule was adopted to allow a consistent approach for calculating the ratio of loans in excess of the supervisory LTV Limits at all FDIC supervised institutions, and to avoid any regulatory burden that could arise if an FDIC supervised institution subsequently decides to switch between different capital frameworks.

The federal banking agencies have established a system of prompt corrective action to resolve certain of the problems of undercapitalized depository institutions. This system is based on five capital level categories for insured depository institutions: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized.”

The federal banking agencies may (or in some cases must) take certain supervisory actions depending upon a bank’s capital level. For example, the federal banking agencies must appoint a receiver or conservator for a bank within 90 days after the bank becomes “critically undercapitalized” unless the bank’s primary regulator determines, with the concurrence of the FDIC, that other action would better achieve regulatory purposes. Banking operations otherwise may be significantly affected depending on a bank’s capital category. For example, a bank that is not “well capitalized” generally is prohibited from accepting brokered deposits and offering interest rates on deposits higher than the prevailing rate in its market, and the holding company of any undercapitalized depository institution must guarantee, in part, specific aspects of the bank’s capital plan for the plan to be acceptable.

In order to be “well-capitalized,” a bank must have a common equity tier 1 capital ratio of at least 6.5%, a total risk-based capital of at least 10.0%, a tier 1 risk-based capital ratio of at least 8.0% and a leverage ratio of at least 5.0%, and the bank must not be subject to any written agreement, order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. Park’s management believes that Park National Bank meets the ratio requirements to be deemed “well-capitalized” according to the guidelines described above. See "Note 28 - Capital Ratios" of

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the Notes to Consolidated Financial Statements found in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K.

Fiscal and Monetary Policies

The business and earnings of Park and Park's subsidiaries are affected significantly by the fiscal policies of the U.S. government and its agencies. Park National Bank is particularly affected by the monetary policies of the Federal Reserve Board, which regulates the supply of money and credit in the U.S. primarily through open market operations in U.S. government securities, changes in the discount rate on bank borrowings, and changes in the reserve requirements against deposits of depository institutions. These policies are used in varying degrees and combinations to directly affect the overall growth and distribution of bank loans, investments and deposits, as well as the interest rates charged on loans and paid on deposits. In light of the changing conditions in the U.S. economy, including with respect to inflation, the money markets and the activities of fiscal and monetary authorities, Park can make no definitive predictions as to future changes in interest rates, credit availability or deposit levels.

Limits on Dividends and Other Payments

There are various legal limitations on the extent to which a subsidiary bank may finance or otherwise supply funds to its parent holding company. Under applicable federal and state laws, a subsidiary bank may not, subject to certain limited exceptions, make loans or extensions of credit to, or investments in the securities of, its parent holding company. A subsidiary bank is also subject to collateral security requirements for any loan or extension of credit permitted by such exceptions.

The ability of Park to obtain funds for the payment of dividends and for other cash requirements is largely dependent on the amount of dividends which may be declared by Park National Bank. The Federal Reserve Board also expects Park to serve as a source of strength to Park National Bank, which may require Park to retain capital for further investment in Park National Bank, rather than pay dividends to the Park shareholders.

Park National Bank may not pay dividends out of its surplus if, after paying these dividends, Park National Bank would fail to satisfy all of the capital adequacy regulations and guidelines established by the OCC, including having a capital conservation buffer that is greater than 2.5%. In addition, Park National Bank must have the approval of the OCC if a dividend in any year would cause the total dividends for that year to exceed the sum of Park National Bank’s net income for the current year and the retained net income for the preceding two years, less required transfers to surplus. Payment of dividends by Park National Bank may be restricted at any time at the discretion of its regulatory authorities, if such regulatory authorities deem such dividends to constitute unsafe and/or unsound banking practices or if necessary to maintain adequate capital. These provisions could have the effect of limiting Park’s ability to pay dividends on Park's common shares.

At December 31, 2022, approximately $121.4 million of the total shareholders’ equity of Park National Bank was available for payment to Park without the approval of the OCC. See "Note 25 - Dividend Restrictions" of the Notes to Consolidated Financial Statements found in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K.

The Federal Reserve Board has also issued a policy statement with regard to the payment of cash dividends by financial holding companies and other bank holding companies. The policy statement provides that, as a matter of prudent banking, a financial holding company or bank holding company should not maintain a rate of cash dividends unless its net income available to common shareholders over the past year has been sufficient to fully fund the dividends, and the prospective rate of earnings retention appears to be consistent with the financial holding company's or bank holding company’s capital needs, asset quality, and overall financial condition. Accordingly, a financial holding company or a bank holding company should not pay cash dividends that exceed its net income or that can only be funded in ways that weaken the financial holding company's or bank holding company’s financial health, such as by borrowing. In addition, Park may not pay dividends that would cause Park to fail to satisfy the capital adequacy regulations applicable to bank holding companies which qualify as financial holding companies, including having a capital conservation buffer that is greater than 2.5%.

Park is subject to contractual restrictions on the declaration and payment of dividends under the terms of certain of Park's debt instruments.

Under the terms of the Indenture governing the $15.5 million of junior subordinated notes issued by Vision to the Vision Trust and the related Guarantee Agreement, Park, as successor to Vision in accordance with the First Supplemental Indenture, is prohibited, subject to limited exceptions, from declaring or paying any dividends or distributions on any shares of its capital stock: (i) if an event of default under the Indenture has occurred and continues; (ii) if Park is in default with respect to

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the payment of any obligations under the Guarantee Agreement; or (iii) during any period in which the payment of interest on the junior subordinated notes by Park (and the payment of cash distributions on the floating rate preferred securities of the Vision Trust) is being deferred.

Volcker Rule

In December 2013, five federal agencies adopted a final regulation implementing the Volcker Rule provision of the Dodd-Frank Act (the "Volcker Rule"). The Volcker Rule placed limits on the trading activity of insured depository institutions and entities affiliated with depository institutions, subject to certain exceptions. Such trading activity included the purchase or sale as principal of a security, derivative, commodity future, option or similar instrument in order to benefit from short-term price movements or to realize short-term profits. The Volcker Rule exempted trading in specified U.S. government, agency, state and/or municipal obligations. The Volcker Rule also excepted (i) trading conducted in certain capacities, including as a broker or other agent, through a deferred compensation or pension plan, as a fiduciary on behalf of customers; (ii) trading to satisfy a debt previously contracted; (iii) trading under certain repurchase and securities lending agreements; and (iv) trading in connection with risk-mitigating hedging activities. In addition, the Volcker Rule prohibited a banking entity from having an ownership interest in, or certain relationships with, a hedge fund or private equity fund, also known as “covered funds,” subject to a number of exceptions.

In July 2019, the federal bank regulatory agencies that adopted the Volcker Rule adopted a final rule to exempt certain community banks, including Park National Bank, from such rule consistent with the Regulatory Relief Act. Under the final rule, community banks with $10.0 billion or less in total consolidated assets and total trading assets and liabilities of 5.0% or less of total consolidated assets were excluded from the restrictions of the Volcker Rule. However, in the event Park’s total consolidated assets exceed $10.0 billion for four consecutive quarters, Park National Bank will become subject to the Volcker Rule. On June 25, 2020, the federal bank regulatory agencies also finalized a rule modifying the Volcker Rule’s prohibition on banking entities investing in or sponsoring covered funds. Such rule permits certain banking entities to offer financial services and engage in other activities that do not raise concerns that the Volcker Rule was originally intended to address.

To the extent that Park National Bank engages in any of the trading activities or has any ownership interest in or relationship with any of the types of funds regulated by the Volcker Rule, Park National Bank believes that its activities and relationships comply with such rule, as amended.

Financial Privacy Provisions

Federal and state regulations limit the ability of banks and other financial institutions to disclose non-public information about consumers to non-affiliated third parties. These limitations require disclosure of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to a non-affiliated third party. These regulations affect how consumer information is transmitted through diversified financial companies and is conveyed to outside vendors.

Park National Bank is also subject to regulatory guidelines establishing standards for safeguarding customer information. These guidelines describe the federal bank regulatory agencies' expectations for the creation, implementation and maintenance of an information security program, which is to include administrative, technical and physical safeguards appropriate to the size and complexity of the institution and the nature and scope of its activities. The standards set forth in the guidelines are intended to ensure the security and confidentiality of customer records and information, protect against any anticipated threats or hazards to the security or integrity of such records and protect against unauthorized access to or use of such records or information that could result in substantial harm or inconvenience to any customer.

Cybersecurity

In March 2015, federal regulators issued two related statements regarding cybersecurity. One statement indicates that financial institutions should design multiple layers of security controls to establish several lines of defense and to ensure that their risk management processes also address the risk posed by compromised customer credentials, including security measures to reliably authenticate customers accessing internet-based services of the financial institution. The other statement indicates that a financial institution’s management is expected to maintain sufficient business continuity planning processes to ensure the rapid recovery, resumption and maintenance of the financial institution’s operations after a cybersecurity attack involving destructive malware. A financial institution is also expected to develop appropriate processes to enable recovery of data and business operations and address rebuilding network capabilities and restoring data if the financial institution or its critical service providers fall victim to this type of cybersecurity attack. If Park National Bank fails to observe the regulatory guidance, it could be subject to various regulatory sanctions, including financial penalties.

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In February 2018, the SEC published interpretive guidance to assist public companies in preparing disclosures about cybersecurity risks and incidents. These SEC guidelines, and any other regulatory guidance, are in addition to notification and disclosure requirements under state and federal banking law and regulations.

In November 2021, the OCC, the Federal Reserve Board and the FDIC issued a final rule that became effective in May 2022, requiring banking organizations that experience a computer-security incident to notify certain entities. A computer-security incident occurs when actual or potential harm to the confidentiality, integrity or availability of an information system or the information occurs, or there is a violation or imminent threat of a violation to banking security policies and procedures. The affected bank must notify its respective federal regulator of the computer-security incident as soon as possible and no later than 36 hours after the bank determines a computer-security incident that rises to the level of a notification incident has occurred. These notifications are intended to promote early awareness of threats to banking organizations and will help banks react to those threats before they manifest into larger incidents. This rule also requires bank service providers to notify their bank organization customers of a computer-security incident that has caused, or is reasonably likely to cause, a material service disruption or degradation for four or more hours.

Furthermore, once final rules are adopted, the Cyber Incident Reporting for Critical Infrastructure Act, enacted in March 2022, will require certain covered entities to report a covered cyber incident to the U.S. Department of Homeland Security’s Cybersecurity & Infrastructure Security Agency (“CISA”) within 72 hours after a covered entity reasonably believes an incident has occurred. Separate reporting to CISA will also be required within 24 hours if a ransom payment is made as a result of a ransomware attack.

State regulators have also been increasingly active in implementing privacy and cybersecurity standards and regulations. Recently, several states have adopted regulations requiring certain financial institutions to implement cybersecurity programs and providing detailed requirements with respect to these programs, including data encryption requirements. Many states have also recently implemented or modified their data breach notification and data privacy requirements. Park expects this trend of state-level activity in those areas to continue, and continues to monitor developments in the states in which our customers are located.

In the ordinary course of business, Park relies on electronic communications and information systems to conduct its operations and to store sensitive data. Park employs an in-depth, layered, defensive approach that leverages people, processes, encryption and multi-factor authentication technology to manage and maintain cybersecurity controls. Park employs a variety of preventative and detective tools to monitor, block and provide alerts regarding suspicious activity, as well as to report on any suspected advanced persistent threats. Notwithstanding the strength of Park’s defensive measures, the threat from cybersecurity attacks is severe, attacks are sophisticated and increasing in volume, and attackers respond rapidly to changes in defensive measures. While to date, Park has not detected a significant compromise, significant data loss or any material financial losses related to cybersecurity attacks, Park’s systems and those of its customers and third-party service providers are under constant threat and it is possible that Park could experience a significant event in the future. Risks and exposures related to cybersecurity attacks are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of internet banking, mobile banking and other technology-based products and services by us and our customers. See “ITEM 1A. RISK FACTORS” for a further discussion of risks related to cybersecurity.

Anti-Money Laundering and the Patriot Act

A major focus of governmental policy on financial institutions in recent years has been aimed at combating money laundering and terrorist financing. The Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, as amended (the “Patriot Act”), substantially broadened the scope of U.S. anti-money laundering laws and regulations by imposing significant new compliance and due diligence obligations, creating new crimes and penalties and expanding the extra-territorial jurisdiction of the U.S. The Patriot Act gives the U.S. government powers to address terrorist threats through enhanced domestic security measures, expanded surveillance powers, increased information sharing and broadened anti-money laundering requirements. Title III of the Patriot Act encourages information sharing among bank regulatory agencies and law enforcement bodies. Further, certain provisions of Title III impose affirmative obligations on a broad range of financial institutions. Among other requirements, Title III and related regulations require regulated financial institutions to establish a program specifying procedures for obtaining identifying information from customers seeking to open new accounts and establish enhanced due diligence policies, procedures and controls designed to detect and report suspicious activity. Park National Bank has established policies and procedures that Park National Bank believes comply with the requirements of the Patriot Act.

The Anti-Money Laundering Act of 2020 (the "AMLA"), which amends the Bank Secrecy Act of 1970 (the "BSA"), was enacted in January 2021. The AMLA is intended to be a comprehensive reform and modernization to U.S. bank secrecy

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and anti-money laundering laws. Among other things, it codifies a risk-based approach to anti-money laundering compliance for financial institutions; requires the development of standards for evaluating technology and internal processes for BSA compliance; and expands enforcement-related and investigation-related authority, including increasing available sanctions for certain BSA violations and instituting BSA whistleblower initiatives and protections.

Office of Foreign Assets Control Regulation

The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) administers and enforces economic and trade sanctions against targeted foreign countries and regimes, under authority of various laws, including designated foreign countries, nationals and others. OFAC publishes lists of specially designated targets and countries. Park is responsible for, among other things, blocking accounts of, and transactions with, such targets and countries, prohibiting unlicensed trade and financial transactions with them and reporting blocked transactions after their occurrence. Failure to comply with these sanctions could have serious financial, legal and reputational consequences, including causing applicable bank regulatory authorities not to approve merger or acquisition transactions when regulatory approval is required or to prohibit such transactions even if approval is not required. Regulatory authorities have imposed cease and desist orders and civil money penalties against institutions found to be violating these obligations.

Community Reinvestment Act

The CRA requires Park National Bank's primary federal regulatory agency, the OCC, to assess Park National Bank's record in meeting the credit needs of the communities served by Park National Bank consistent with safe and sound banking practice. Under the CRA, each depository institution is required to help meet the credit needs of its market area by, among other things, providing credit to low-income and moderate-income individuals and communities. Depository institutions are periodically examined for compliance with the CRA and are assigned ratings that must be publically disclosed. The OCC assigns one of four ratings: outstanding, satisfactory, needs to improve or substantial noncompliance. The rating assigned to a financial institution is considered in connection with various applications submitted by the financial institution or its holding company to its banking regulators, including applications to acquire another financial institution or to open or close a branch office. In addition, all subsidiary banks of a financial holding company must maintain a satisfactory or outstanding rating in order for the financial holding company to avoid limitations on its activities. Park National Bank received a rating of "satisfactory" in its latest CRA examination.

Corporate Governance

As mandated by the Sarbanes-Oxley Act of 2002, as amended, the SEC has adopted rules and regulations governing, among other issues, corporate governance, auditing and accounting, executive compensation and enhanced and timely disclosure of corporate information. NYSE American has also adopted corporate governance rules. The Board of Directors of Park has taken a series of actions to strengthen and improve Park’s already strong corporate governance practices in light of the rules of the SEC and NYSE American. The Board of Directors has adopted and annually reviews charters for the Audit Committee, the Compensation Committee, the Executive Committee, the Nominating and Corporate Governance Committee (including as Exhibit A thereto, Corporate Governance Guidelines) and the Risk Committee, as well as a Code of Business Conduct and Ethics governing the directors, officers and associates of Park and Park's subsidiaries.

Executive and Incentive Compensation

The Dodd-Frank Act requires that the federal bank regulatory agencies, including the Federal Reserve Board and the OCC, establish joint regulations or guidelines related to incentive-based compensation. No final rule implementing this provision of the Dodd-Frank Act has, as of the date of the filing of this Annual Report on Form 10-K, been adopted, but a proposed rule was published in 2016 that expanded upon a prior proposed rule published in 2011. The proposed rule is intended to: (i) prohibit incentive-based payment arrangements that the bank regulatory agencies determine could encourage certain financial institutions to take inappropriate risks by providing excessive compensation or that could lead to material financial loss; (ii) require the board of directors of those financial institutions to take certain oversight actions related to incentive-based compensation; and (iii) require those financial institutions to disclose information concerning incentive-based compensation arrangements to the appropriate federal regulator. Although a final rule has not been issued, Park and Park National Bank have undertaken efforts to ensure that their incentive compensation plans do not encourage inappropriate risks, consistent with the principles identified above.

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In June 2010, the Federal Reserve Board, the OCC and the FDIC issued comprehensive final guidance on incentive compensation policies intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. The guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization's incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond the organization's ability to effectively identify and manage risks, (ii) be compatible with effective internal controls and risk management and (iii) be supported by strong corporate governance, including active and effective oversight by the organization's board of directors. These three principles are incorporated into the proposed joint compensation regulations under the Dodd-Frank Act, described above.

The Federal Reserve Board and the OCC review, as part of their respective regular, risk-focused examination process, the incentive compensation arrangements of banking organizations, such as Park and Park National Bank, that are not "large, complex banking organizations." These reviews are tailored to each organization based on the scope and complexity of the organization's activities and the prevalence of incentive compensation arrangements. Deficiencies will be incorporated into the organization's supervisory ratings, which can affect the organization's ability to make acquisitions and take other actions. Enforcement actions may be taken against a banking organization if its incentive compensation arrangements, or related risk-management control or governance processes, pose a risk to the organization's safety and soundness and the organization is not taking prompt and effective measures to correct the deficiencies.

Public company compensation committee members must meet heightened independence requirements and consider the independence of compensation consultants, legal counsel and other advisors to the compensation committee. A compensation committee must have the authority to hire advisors and the public company must fund the reasonable compensation of such advisors.

SEC regulations require public companies to provide various disclosures about executive compensation in annual reports and proxy statements and to present to their shareholders a non-binding vote on the approval of executive compensation.

Public companies will be required, once stock exchanges adopt additional listing requirements under the Dodd-Frank Act and rules adopted by the SEC in October 2022, to adopt and implement "clawback" policies for incentive compensation payments and to disclose the details of the procedures which allow recovery of incentive compensation that was paid on the basis of erroneous financial information necessitating an accounting restatement due to material noncompliance with financial reporting requirements. This clawback policy is intended to apply to compensation paid within the three completed fiscal years immediately preceding the date the issuer is required to prepare a restatement and would cover all executives (including former executives) who received incentive awards.

Consumer Protection Laws and Regulations

Banks are subject to regular examination to ensure compliance with federal consumer protection statutes and regulations, including, but not limited to, the following:

•Equal Credit Opportunity Act (prohibiting discrimination in any credit transaction on the basis of any of various criteria)

•Truth in Lending Act (requiring that credit terms be disclosed in a manner that permits a consumer to understand and compare credit terms more readily and knowledgeably)

•Fair Housing Act (making it unlawful for a lender to discriminate in its housing-related lending activities against any person on the basis of certain criteria)

•Home Mortgage Disclosure Act (requiring financial institutions to collect data that enables regulatory agencies to determine whether financial institutions are serving the housing credit needs of the communities in which they are located)

•Real Estate Settlement Procedures Act (requiring that lenders provide borrowers with disclosures regarding the nature and cost of real estate settlements and prohibits abusive practices that increase borrowers' costs)

•Fair Credit Reporting Act (governing the provision of consume information to credit reporting agencies and the use of consumer information)

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•Fair Debt Collection Practices Act (governing the manner in which consumer debts may be collected by collection agencies)

•Truth in Savings Act (requiring disclosure of deposit terms to consumers)

•Electronic Funds Transfer Act (governing automatic deposits to and withdrawals from deposit accounts and customers' rights and liabilities arising from the use of ATMs and other electronic banking services)

The bank regulators also use their authority under the Federal Trade Commission Act to take supervisory or enforcement action with respect to unfair or deceptive acts or practices by banks that may not necessarily fall within the scope of a specific banking or consumer finance law.

In October 2017, the OCC rescinded its guidance on deposit advance products in light of the CFPB’s pending small dollar loan rule related to payday, vehicle title and certain high cost installment loans that was issued in November 2013 (the “Small Dollar Rule”). The Small Dollar Rule, however, has been the subject of further regulatory review and a court order staying compliance in connection with a legal challenge. The CFPB issued its final Small Dollar Rule on July 22, 2020, which became fully effective on October 20, 2020. Specifically, the CFPB revoked provisions that: (i) provide that it is an unfair and abusive practice for a lender to make a covered short-term or longer term balloon-payment loan, including payday and vehicle title loans, without reasonably determining that consumers have the ability to repay those loans according to their terms; (ii) prescribe mandatory underwriting requirements for making the ability-to-repay determination; (iii) exempt certain loans from the mandatory underwriting requirements; and (iv) establish related definitions, reporting, and recordkeeping requirements. In August 2021, the court overseeing the litigation challenging the Small Dollar Rule found in the CFPB’s favor, and ordered the compliance date to be 286 days after the final judgment. In October 2022, the Fifth Circuit Court of Appeals reversed the lower court’s decision and vacated the Small Dollar Rule. In November 2022, the CFPB filed a petition for a writ of certiorari with the U.S. Supreme Court seeking an expedited review of the appellate court decision.

Separately, in May 2018, the OCC published guidance that encourages national banks and federal savings associations to offer responsible short-term, small-dollar installment loans with terms between two and twelve months and equal amortizing payments. Pursuant to the OCC’s guidance on this issue, banks are encouraged to offer these products in a manner that is consistent with sound risk management principles and clear, documented underwriting guidelines. Further, the federal bank regulatory agencies issued interagency guidance on May 20, 2020, to encourage banks, savings associations, and credit unions to offer responsible small-dollar loans to customers for consumer and small business purposes. As of the date of the filing of this Annual Report on Form 10-K, Park National Bank has not decided to offer such products, although this position may change as Park National Bank refines its business plan in the future.

As a consumer finance company incorporated under Ohio law, Guardian Finance is subject to regulation and supervision by the ODFI. ODFI regulation and supervision are designed to protect consumers and can affect the lending activities of Guardian Finance, including interest rates, loan terms, advertising and record retention. If grounds provided by law exist, the ODFI may suspend or revoke an Ohio consumer finance company’s ability to make loans.

Legislative and Regulatory Initiatives

From time to time, various legislative and regulatory initiatives are introduced in the U.S. Congress and state legislatures, as well as by regulatory agencies. Such initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions or proposals to substantially change the financial institution regulatory system. Such legislation could change banking statutes and the operating environment of Park and Park National Bank in substantial and unpredictable ways. If enacted, such legislation could increase or decrease the cost of doing business, limit or expand permissible activities or affect the competitive balance among banks, savings associations, credit unions and other financial institutions. Park cannot predict whether any such legislation will be enacted, and, if enacted, the effect that such legislation, or any implementing regulations, would have on the financial condition or results of operations of Park. A change in statutes, regulations or regulatory policies applicable to Park or any of Park's subsidiaries could have a material effect on Park's business, financial condition and results of operations.

Effect of Environmental Regulation

Compliance with federal, state and local provisions regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, has not had a material effect upon the capital expenditures, earnings or competitive position of Park and Park's subsidiaries. Park believes the nature of the operations of Park's subsidiaries has little, if any, environmental impact. As a result, Park, anticipates no material capital expenditures for environmental control facilities for Park's current fiscal year or for the foreseeable future.

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Park believes its primary exposure to environmental risk is through the lending activities of Park's subsidiaries. In cases where management believes environmental risk potentially exists, Park’s subsidiaries mitigate their environmental risk exposures by requiring environmental site assessments at the time of loan origination to confirm collateral quality as to commercial real estate parcels posing higher than normal potential for environmental impact, as determined by reference to present and past uses of the subject property and adjacent sites. In addition, environmental assessments are typically required prior to any foreclosure activity involving non-residential real estate collateral.

ITEM 1A.RISK FACTORS.

Cautionary Statement Regarding Forward-Looking Information

Certain statements contained in this Annual Report on Form 10-K and the documents incorporated herein by reference that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), including, without limitation, the statements specifically identified as forward-looking statements within this Annual Report on Form 10-K. In addition, certain statements in future filings by Park with the SEC, in press releases, and in oral and written statements made by or with the approval of Park which are not statements of historical fact constitute forward-looking statements within the meaning of the PSLRA. Examples of forward-looking statements include: (i) projections of income or expense, earnings per share, the payment or non-payment of dividends, capital structure and other financial items; (ii) statements of plans and objectives of Park or our management or Board of Directors, including those relating to products or services or to potential or pending acquisitions; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted” and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. The PSLRA provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those discussed in the forward-looking statements. Park desires to take advantage of the “safe harbor” provisions of the PSLRA. Forward-looking statements involve risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events, including those factors and events identified below. There is also the risk that Park’s management or Park's Board of Directors incorrectly analyzes these risks and uncertainties or that the strategies Park develops to address such risks and uncertainties are unsuccessful. Forward-looking statements speak only as of the date on which they are made, and, except as may be required by applicable law, Park undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made. All subsequent written and oral forward-looking statements attributable to Park or any person acting on Park’s behalf are qualified in their entirety by the preceding cautionary statements.

Economic, Political and Market Risks

The economic impact of COVID-19 or any other pandemic could adversely affect our business, financial condition, liquidity, and results of operations.

COVID-19 has negatively impacted global, national and local economies, disrupted global and national supply chains, lowered equity market valuations, and created significant volatility and disruption in financial markets. The extent to which COVID-19 will continue to impact Park’s business, results of operations, and financial condition, as well as Park’s regulatory capital and liquidity ratios, will depend on future developments, which are highly uncertain and cannot be predicted.

As of December 31, 2022, we hold and service PPP loans. These PPP loans are subject to the provisions of the CARES Act and to complex and evolving rules and guidance issued by the SBA and other government agencies. While a large number of our PPP borrowers have applied for and received full or partial forgiveness of their loan obligations, we still have credit risk on the remaining PPP loans in the event the SBA determines that there is a deficiency in the manner in which we originated, funded or serviced such PPP loans, including any issue with the eligibility of a borrower to receive funding. We could face additional risks in our administrative capabilities to service our PPP loans and to properly determine loan forgiveness. In the event of a loss resulting from a default on a PPP loan and a determination by the SBA that there was a deficiency in the manner in which we originated, funded or serviced the PPP loan, the SBA may deny the SBA's liability under the guaranty, reduce the amount of the guaranty, or, if the SBA has already paid under the guaranty, seek recovery of any loss related to the deficiency.

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Changes in economic and political conditions could adversely affect our earnings and capital through declines in deposits, quality of investment securities, loan demand, our borrowers’ ability to repay loans, and the value of the collateral securing our loans.

Our success depends, to a certain extent, upon local and national economic and political conditions, as well as governmental fiscal and monetary policies. Conditions such as inflation, recession, unemployment, changes in interest rates, fiscal and monetary policy, an increasing U.S. federal government budget deficit, the failure of the U.S federal government to raise the federal debt ceiling, slowing gross domestic product, tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars, and other factors beyond our control may adversely affect our deposit levels and composition, the quality of our assets including investment securities available for purchase and the demand for loans, which, in turn, may adversely affect our earnings and capital. Recent political developments have resulted in substantial changes in economic and political conditions for the U.S. and the remainder of the world. For example, on February 24, 2022, Russian military forces invaded Ukraine, and sustained conflict and disruption in the region have occurred and remain likely to continue. Although the length, impact, and outcome of the ongoing war in Ukraine is highly unpredictable, this conflict has resulted, and could continue to result, in significant market and other disruptions, including significant volatility in commodity prices and supply of energy resources, instability in financial markets, supply chain interruptions, political and social instability, changes in consumer or purchaser preferences, as well as increases in cyberattacks and espionage. The extent and duration of the military action, sanctions and resulting market disruptions could be significant and could potentially have substantial impact on the global economy and Park’s business for an unknown period of time. In addition, disruptions in U.S. and global financial markets and changes in oil production in the Middle East affect the economy and stock prices in the U.S., which can affect our earnings and our capital, as well as the ability of our customers to repay loans. Because we have a significant number of real estate loans, decreases in real estate values could adversely affect the value of property used as collateral and our ability to sell the collateral upon foreclosure. Adverse changes in the economy, including those resulting from pandemics, rising inflation, and increases in interest rates, may also have a negative effect on the ability of our borrowers to make timely repayments of their loans, which would have an adverse impact on our earnings and cash flows.

Changes in interest rates could have a material adverse effect on our financial condition, results of operations and cash flows.

Our earnings and cash flows depend substantially on our interest rate spread, which is the difference between: (i) the rates we earn on loans, investment securities and other interest earning assets; and (ii) the interest rates we pay on deposits and our borrowings. These rates are highly sensitive to many factors beyond our control, including general economic conditions and the policies of various governmental and regulatory authorities and, in particular, the Federal Reserve Board. Changes in monetary policy influence the origination of loans, the prepayment speed of loans, the purchase of investments, the generation of deposits and rates of interest received and paid. If market interest rates rise, Park will have competitive pressure to increase the rates that Park pays on deposits, which could result in a decrease of Park's net interest income. If market rates decline, Park could experience fixed-rate loan prepayments and higher investment portfolio cash flows, resulting in a lower yield on earning assets. Park's earnings can also be impacted by the spread between short-term and long-term market interest rates.

While we have taken measures intended to manage the risks of operating in a changing interest rate environment, there can be no assurance that such measures will be effective in avoiding undue interest rate risk, especially in light of the continued economic effects of sustained inflation. Information pertaining to the impact changes in interest rates could have on our net income is included in "Table 38 - Interest Rate Sensitivity" in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K, and is incorporated herein by reference.

Changes in the general economic conditions and real estate valuations in our primary market areas could adversely impact results of operations, financial condition and cash flows.

Our lending and deposit gathering activities are concentrated primarily in Ohio, Kentucky, North Carolina and South Carolina. Our success depends on the general economic conditions of our primary market areas, particularly given that a significant portion of our lending relates to real estate located in these regions. Adverse changes in the regional and general economic conditions could reduce our growth rate, impair our ability to collect payments on loans, increase loan delinquencies, increase problem assets and foreclosures, increase claims and lawsuits, increase devaluations recognized within our OREO portfolio, decrease the demand for our products and services and decrease the value of collateral for loans, especially real estate values, which could have a material adverse effect on our financial condition, results of operations and cash flows.

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The transition away from the London Interbank Offered Rate ("LIBOR") as a reference rate for financial instruments could negatively affect our income and expenses and the value of various financial instruments.

LIBOR was used extensively in the U.S. and globally as a benchmark for various commercial and financial contracts, including adjustable rate mortgages, corporate debt, interest rate swaps and other derivative financial instruments. LIBOR is set based on interest rate information reported by certain banks, which are set to stop reporting such information after June 30, 2023. In the U.S., the Alternative Reference Rate Committee (“ARRC”) has recommended the use of a Secured Overnight Funding Rate (“SOFR”) as the set of alternative U.S. dollar reference interest rates. SOFR is different from LIBOR in that it is a backward-looking secured rate rather than a forward-looking unsecured rate.

These differences could lead to a greater disconnect between our costs to raise funds for SOFR as compared to LIBOR. For cash products and loans, ARRC has also recommended Term SOFR, which is a forward-looking SOFR based on SOFR futures and may in part reduce differences between SOFR and LIBOR. There are operational issues which may create a delay in the transition to SOFR or other substitute indices, leading to uncertainty across the industry. These consequences cannot be entirely predicted and could have an adverse impact on the market value for or value of LIBOR-linked securities, loans, and other financial obligations or extensions of credit.

Park has limited exposure to LIBOR, with total exposure at December 31, 2022 of approximately $608.4 million, consisting of $76.9 million of loans, $516.5 million of investment securities, and $15.0 million of subordinated notes. We do not believe the change to a benchmark like SOFR will have a material impact on our financial condition, results of operations or cash flows.

Business Operations Risks

We are exposed to operational risk.

Similar to any large organization, we are exposed to many types of operational risk, including those discussed in more detail elsewhere in this Item, such as reputational risk, legal and compliance risk, the risk of fraud or theft by employees or outsiders, unauthorized transactions by employees or operational errors, including clerical or record-keeping errors or those resulting from faulty or disabled computer or telecommunications systems.

We may be subject to disruptions of our operating systems arising from events that are wholly or partially beyond our control, which may include, for example, computer viruses, cybersecurity attacks including cybersecurity attacks on third-party vendors, spikes in transaction volume and/or customer activity, electrical or telecommunications outages, or natural disasters. We could be adversely affected by operating systems disruptions if new or upgraded business management systems are defective, not installed properly or not properly integrated into existing operating systems. Although we have programs in place related to business continuity, disaster recovery and information security to maintain the confidentiality, integrity and availability of our operating systems, business applications and customer information, such disruptions may give rise to interruptions in service to customers, loss of data privacy, and loss or liability to us.

Any failure or interruption in our operating or information systems, or any security or data breach, could cause reputational damage, jeopardize the confidentiality of customer information, result in a loss of customer business, subject us to regulatory intervention or expose us to civil litigation and financial loss or liability, any of which could have a material adverse effect on us.

Negative public opinion can result from our actual or alleged conduct in any number of activities, including lending practices, corporate governance and acquisitions, social media and other marketing activities, and the implementation of environmental, social, and governance practices, and from actions taken by governmental regulators and community organizations in response to any of the foregoing. Negative public opinion could adversely affect our ability to attract and keep customers, could expose us to potential litigation or regulatory action, and could have a material adverse effect on the price of our common shares or result in heightened volatility.

Given the volume of transactions we process, certain errors may be repeated or compounded before they are discovered and successfully rectified. Our necessary dependence upon automated systems to record and process our transaction volume may further increase the risk that technical system flaws or employee tampering or manipulation of those systems will result in losses that are difficult to detect, which may give rise to disruption of service to customers and to financial loss or liability. We are further exposed to the risk that our external vendors may be unable to fulfill their contractual obligations (or will be subject to the same risk of fraud or operational errors by their respective employees as we are) or that our (or our vendors’) consumer compliance, business continuity, and data security systems will prove to be inadequate.

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Our business could be adversely affected by third-party service providers, data breaches and cyber-attacks.

We face the risk of operational disruption, failure or capacity constraints due to our dependency on third-party vendors for components of our business infrastructure. While we have selected these third-party vendors through our vendor management process, we do not control their operations. As such, our business and operations could be adversely affected in the event these third-party vendors are unable to perform their various responsibilities and we are unable to timely and cost-effectively identify acceptable substitute providers.

Regulatory guidance adopted by federal bank regulatory agencies addressing how banks select, engage and manage their third-party relationships could affect the circumstances and conditions under which we work with third-party service providers and the costs of managing such relationships.

Our assets at risk for cybersecurity attacks include financial assets and non-public information belonging to customers. We use several third-party vendors who have access to our assets via electronic media. Certain cybersecurity risks arise due to this access, including cybersecurity espionage, blackmail, ransom, malware, and theft. We employ many preventive and detective controls to protect our assets, and we provide mandatory recurring information security training to all employees. To date, we have not experienced any material losses relating to cybersecurity attacks or other information security breaches, but there can be no assurance that we will not suffer such attacks or attempted breaches, or incur resulting losses in the future. Our risk and exposure to these matters remains heightened due to, among other factors, the evolving nature of these threats, our plans to continue to implement or expand Internet and mobile banking to meet customer demand, and the current economic and political environment. As cybersecurity and other data security threats continue to evolve, we may be required to expend significant additional resources to continue to modify and enhance our protective measures or to investigate and remediate any security vulnerabilities.

Failures or material breaches in security of our systems, or those of third-party service providers, may have a material adverse effect on our results of operations and financial condition and the price of our common shares.

We collect, process and store sensitive consumer data by utilizing computer systems and telecommunications networks operated by both us and third-party service providers. Our dependence upon automated systems to record and process our transactions poses the risk that technical system flaws, employee errors, tampering or manipulation of those systems, or attacks by third parties will result in losses and may be difficult to detect. We have security and backup and recovery systems in place, as well as a business continuity plan, to ensure the computer systems will not become inoperable, to the extent possible. We also routinely review documentation of such controls and backups related to third-party service providers. Our inability to use or access these information systems at critical points in time could unfavorably impact the timeliness and efficiency of our business operations. In recent years, several banks have experienced denial of service attacks in which individuals or organizations flood the bank's website with extraordinarily high volumes of traffic, with the goal and effect of disrupting the ability of the bank to process transactions. Other businesses have been victims of ransomware attacks in which the business becomes unable to access its own information and is presented with a demand to pay a ransom in order to once again have access to its information. We could be adversely affected if one of our employees or a third-party service provider causes a significant operational break-down or failure, either as a result of human error or where the individual purposefully sabotages or fraudulently manipulates our operations or systems. We may not be able to prevent employee or third-party errors or misconduct, and the precautions we take to detect this type of activity might prove ineffective. We are further exposed to the risk that the third-party service providers may be unable to fulfill their contractual obligations (or will be subject to the same risks that we are). These disruptions may interfere with service to our customers, cause additional regulatory scrutiny and result in a financial loss or liability. We are also at risk of the impact of natural disasters, terrorism and international hostilities on our systems or for the effects of outages or other failures involving power or communications systems operated by others.

In addition, there have been instances where financial institutions have been victims of fraudulent activity in which criminals pose as customers to initiate wire and automated clearinghouse transactions out of customer accounts. Although we have policies and procedures in place to verify the authenticity of our customers, we cannot assure that such policies and procedures will prevent all fraudulent transfers.

We have implemented security controls to prevent unauthorized access to our computer systems, and we require that our third-party service providers maintain similar controls. However, Park's management cannot be certain that these measures will be successful. A security breach of the computer systems and loss of confidential information, such as customer account numbers and related information, could result in a loss of customers’ confidence and, thus, loss of business. We could also lose revenue if competitors gain access to confidential information about our business operations and use it to compete with us. While we maintain specific "cybersecurity" insurance coverage, which would apply in the event of various breach scenarios, the amount of coverage may not be adequate in any particular case. Furthermore, because cybersecurity threat scenarios are

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inherently difficult to predict and can take many forms, some breaches may not be covered under our cybersecurity insurance coverage.

Further, we may be affected by data breaches at retailers and other third parties who participate in data interchanges with us and our customers that involve the theft of customer credit and debit card data, which may include the theft of our debit card PIN numbers and commercial card information used to make purchases at such retailers and other third parties. Such data breaches could result in us incurring significant expenses to reissue debit cards and cover losses, which could result in a material adverse effect on our results of operations.

All of the types of cybersecurity incidents discussed above could result in damage to our reputation, loss of customer business, increased costs of incentives to customers or business partners in order to maintain their relationships, litigation, increased regulatory scrutiny and potential enforcement actions, repairs of system damage, increased investments in cybersecurity (such as obtaining additional technology, making organizational changes, deploying additional personnel, training personnel and engaging consultants), increased insurance premiums, and loss of investor confidence and a reduction in the price of our common shares, all of which could result in financial loss and material adverse effects on our results of operations and financial condition.

We extend credit to a variety of customers based on certain internal standards and the judgment of our loan officers. Our credit standards and on-going process of credit assessment might not protect us from significant credit losses.

We take credit risk by virtue of making loans and leases, extending loan commitments and letters of credit and, to a lesser degree, purchasing municipal bonds and purchasing collateralized loan obligations. Our exposure to credit risk is managed through the use of consistent underwriting standards that emphasize “in-market” lending while avoiding highly leveraged transactions as well as excessive industry and other concentrations. Our loans to non-bank consumer finance companies are made nationally and present different risks than our "in-market" lending due to the variability of cash flows that support the asset-based loans. Our credit administration function employs risk management techniques to ensure that loans and leases adhere to corporate policy and problem loans and leases are promptly identified. While these procedures are designed to provide us with the information needed to implement policy adjustments where necessary, and to take proactive corrective actions, there can be no assurance that such measures will be effective in avoiding undue credit risk.

Our business and financial results are subject to risks associated with the creditworthiness of our customers and counterparties.

Credit risk is inherent in the financial services business and results from, among other factors, extending credit to customers, purchasing non-governmental securities, and entering into certain guarantee contracts. Credit risk is one of the most significant risks to our business, particularly given the high percentage of our assets represented directly and indirectly by loans and the importance of lending to our overall business. As discussed in the immediately preceding risk factor, many factors impact credit risk, and we manage this by periodically assessing and monitoring the creditworthiness of our customers and by diversifying our loan portfolio.

A borrower's ability to repay a loan can be adversely affected by individual factors, such as business performance, job losses or health issues. A weak or deteriorating economy and changes in the U.S. or global markets and changes in interest rates also could adversely impact the ability of our borrowers to repay outstanding loans. Any decrease in our borrowers' ability to repay loans would result in higher levels of nonperforming loans, net charge-offs and provision for credit losses.

Financial services institutions are interrelated as a result of trading, clearing and other relationships. We have exposure to many different industries and counterparties, and we routinely execute transactions with counterparties in the financial services industry. Many of these transactions expose us to credit risk in the event of default of our counterparty or client.

Despite maintaining a diversified portfolio, our operations may result in concentrated credit exposure to a particular person, entity, industry or counterparty. Events adversely affecting specific customers, industries, or markets, a decrease in the credit quality of a customer base, or an adverse change in the risk profile of a market, industry, or group of customers could adversely affect our results of operations.

Our credit risk may be exacerbated when collateral held by us to secure obligations to us cannot be realized upon by us or is liquidated at prices that are not sufficient to recover the full amount of the loan.

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Up until 2020, Park's provision for credit losses had declined since the end of the most recent recession, which ended in June 2009, primarily due to improvement in general economic conditions, as well as actions taken by us to better manage our loan portfolio. During 2020, Park experienced elevated provision for credit losses primarily due to the impact of COVID-19. During 2021 and 2022, the provision fluctuated as a result of changes in economic forecasts and other assumptions. If we were to experience higher levels of provision for credit losses, it could result in lower levels of net income.

Our expansion into Kentucky, South Carolina and North Carolina may also expose Park to additional geographic risk.

Our allowance for credit losses may prove to be insufficient to absorb the expected, lifetime losses in our loan portfolio.

We maintain an allowance for credit losses that we believe is a reasonable estimate of the expected losses within the CECL model, based on management’s quarterly analysis of our loan portfolio. The determination of the allowance for credit losses requires management to make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of real estate and other assets serving as collateral for the repayment of loans. Additional information regarding our allowance for credit losses methodology and the sensitivity of the estimates can be found in the discussion of “CRITICAL ACCOUNTING POLICIES” included in “ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS” of this Annual Report on Form 10-K.

Our estimation of future credit losses is susceptible to changes in economic, operating and other conditions, including changes in regulations and interest rates, which may be beyond our control, and the losses may exceed current estimates. We cannot be assured of the amount of timing of losses, nor whether the allowance for credit losses will be adequate in the future.

If our assumptions prove to be incorrect, our allowance for credit losses may not be sufficient to cover the expected losses from our loan portfolio, resulting in the need for additions to the allowance for credit losses which could have a material adverse impact on our financial condition and results of operations. In addition, bank regulators periodically review our allowance for credit losses as part of their examination process and may require management to increase the allowance or recognize further loan charge-offs based on judgments different than those of management.

In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13 “Financial Instruments – Credit Losses,” which replaced the incurred loss model with the CECL model, an expected loss model. The accounting guidance was to have been adopted by Park as of January 1, 2020. However, Section 4014 of the CARES Act provided financial institutions with optional temporary relief from having to comply with the CECL methodology which would have expired on December 31, 2020, and Section 540 of the Consolidated Appropriations Act, 2021 (the "CAA"), further extended the relief period to the earlier of the first day of the fiscal year that begins after the date on which the national emergency concerning COVID-19 terminates or January 1, 2022. Park elected to delay the implementation of CECL following the approval of the CARES Act and the CAA, and adopted CECL as of January 1, 2021.

The accounting guidance under the CECL model requires banks to record, at the time of origination, credit losses expected throughout the life of financial assets measured at amortized cost, including loan receivables, HTM debt securities and reinsurance receivables, and off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees and other similar instruments) and net investments in leases recognized by a lessor. Under the CECL model, we are required to use historical information, current conditions and reasonable and supportable forecasts to estimate the expected credit losses. If the methodologies and assumptions we use in the CECL model prove to be incorrect, or inadequate, the allowance for credit losses may not be sufficient, resulting in the need for additional provisions for credit losses to be recorded, which could have a material adverse impact on our financial condition and results of operations.

The adoption of the CECL model by Park resulted in a net decrease to retained earnings of $8.0 million as of January 1, 2021 for the cumulative effect of adopting ASC 326 and a net recovery of credit losses of $11.9 million for the year ended December 31, 2021. The provision for credit losses for the year ended December 31, 2022 amounted to $4.6 million. As a result of the implementation of the CECL model, the time horizon over which we are required to estimate future credit losses expanded, which could result in increased volatility in future provisions for credit losses. We may also experience a higher or more volatile provision for credit losses due to higher levels of nonperforming loans and net charge-offs if commercial and consumer customers are unable to make scheduled loan payments.

We depend upon the accuracy and completeness of information about customers and counterparties.

In deciding whether to extend credit or enter into other transactions with customers and counterparties, we may rely on information provided to us by customers and counterparties, including financial statements and other financial information. We may also rely on representations of customers and counterparties as to the accuracy and completeness of that information and,

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with respect to financial statements, on reports of independent auditors. For example, in deciding whether to extend credit to a business, we may assume that the customer’s audited financial statements conform with U.S. GAAP and present fairly, in all material respects, the financial condition, results of operations and cash flows of the customer. We may also rely on the audit report covering those financial statements. Our financial condition, results of operations and cash flows could be negatively impacted to the extent that we rely on financial statements that do not comply with U.S. GAAP or on financial statements and other financial information that are materially misleading.

We may be required to repurchase loans we have sold or to indemnify loan purchasers under the terms of the sale agreements, which could adversely affect our liquidity, results of operations and financial condition.

When we sell a mortgage loan, we may agree to repurchase or substitute a mortgage loan if we are later found to have breached any representation or warranty we made about the loan or if the borrower is later found to have committed fraud in connection with the origination of the loan. While we have underwriting policies and procedures designed to avoid breaches of representations and warranties we have made and borrower fraud, there can be no assurance that no breach or fraud will ever occur. Required repurchases, substitutions or indemnifications could have an adverse effect on our liquidity, results of operations and financial condition.

We are subject to environmental liability risk associated with lending activities.

A significant portion of our loan portfolio is secured by real property. During the ordinary course of business, we foreclose on and take title to properties securing certain loans. In doing so, there is a risk that hazardous or toxic substances could be found on these properties. If hazardous or toxic substances are found, we may be liable for remediation costs, as well as for personal injury and property damage. Environmental laws and evolving regulation may require us to incur substantial expenses and may materially reduce the affected property’s value or limit our ability to use or sell the affected property. In addition, future laws and regulations or more stringent interpretations or enforcement policies with respect to existing laws or regulations may increase our exposure to environmental liability. Environmental reviews of real property before initiating foreclosure actions may not be sufficient to detect all potential environmental hazards. The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on our business, financial condition and results of operations.

Noncompliance with the BSA and other anti-money laundering statutes and regulations could cause us to experience a material financial loss.

The BSA and the Patriot Act contain anti-money laundering and financial transparency provisions intended to detect and prevent the use of the U.S. financial system for money laundering and terrorist financing activities. The BSA, as amended by the Patriot Act and the AMLA, requires depository institutions and their holding companies to undertake activities including maintaining an anti-money laundering program, verifying the identity of clients, monitoring for and reporting suspicious transactions, reporting on cash transactions exceeding specified thresholds, and responding to requests for information by regulatory authorities and law enforcement agencies. Financial Crimes Enforcement Network (also known as FinCEN), a unit of the U.S. Treasury Department that administers the BSA, is authorized to impose significant civil money penalties for violations of those requirements and has recently engaged in coordinated enforcement efforts with the federal bank regulatory agencies, as well as the U.S. Department of Justice, the U.S. Drug Enforcement Administration, and the U.S. Internal Revenue Service. The AMLA is intended to be a comprehensive reform and modernization to U.S. bank secrecy and anti-money laundering laws. Among other things, it codifies a risk-based approach to anti-money laundering compliance for financial institutions; requires the development of standards for evaluating technology and internal processes for BSA compliance; and expands enforcement-related and investigation-related authority, including increasing available sanctions for certain BSA violations and instituting BSA whistleblower incentives and protections.

There is also increased scrutiny of compliance with the rules enforced by OFAC. If our policies, procedures and systems are deemed deficient, or if the policies, procedures and systems of the financial institutions that we have already acquired or may acquire in the future are deficient, we may be subject to liability, including fines and regulatory actions such as restrictions on our ability to pay dividends and the necessity to obtain regulatory approvals to proceed with certain planned business activities, including acquisition plans, which could negatively impact our business, financial condition and results of operations. Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us.

For a more complete discussion of the BSA, the Patriot Act and the AMLA as well as OFAC, see the section captioned "Supervision and Regulation of Park and Park's Subsidiaries" in "ITEM 1. BUSINESS" of this Annual Report on Form 10-K.

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We operate in a highly competitive environment, in terms of the products and services we offer and the geographic markets in which we conduct business, as well as in our labor markets where we compete for talented employees. Competition could adversely impact our customer acquisition, growth and retention, as well as our credit spreads and product pricing, causing us to lose market share and deposits and revenues.

We are subject to intense competition from various financial institutions as well as from non-bank entities that engage in many similar activities without being subject to bank regulatory supervision and restrictions. This competition is described in "ITEM 1. BUSINESS" of this Annual Report on Form 10-K under the caption "Competition." Competition in our industry could intensify as a result of the increasing consolidation of financial services companies, in connection with current market conditions, or otherwise. Consumers may also move money out of bank deposits in favor of other investments, including digital or cryptocurrency. Customers have increasingly used bill payment services that do not utilize banks, and these trends may result in losses of deposits and fee income.

The principal bases for competition are pricing (including the interest rates charged on loans or paid on interest bearing deposits), product structure, the range of products and services offered, and the quality of customer service (including convenience and responsiveness to customer needs and concerns). Digital or cryptocurrencies, blockchain, and other “fintech” technologies are designed to enhance transactional security and have the potential to disrupt the financial industry, change the way banks do business, and reduce the need for banks as financial deposit-keepers and intermediaries. The ability to access and use technology is an increasingly important competitive factor in the financial services industry, and it is a critically important component to customer satisfaction as it affects our ability to deliver the right products and services.

Another increasingly competitive factor in the financial services industry is the competition to attract and retain talented associates across many of our business and support areas. This competition leads to increased expenses in many business areas and can also cause us to not pursue certain business opportunities.

A failure to adequately address the competitive pressures we face could make it harder for us to attract and retain customers across our businesses. On the other hand, meeting these competitive pressures could require us to incur significant additional expense, to reevaluate the number of branches through which we serve our customers, or to accept risk beyond what we would otherwise view as desirable under the circumstances. In addition, in our interest rate sensitive businesses, pressures to increase rates on deposits or decrease rates on loans could reduce our net interest margin with a resulting negative impact on our net interest income.

We may not be able to adapt to technological change.

The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services. The effective use of technology increases efficiency and enables financial institutions to better serve customers while reducing costs. Our future success depends, in part, upon our ability to address customer needs by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in our operations. This could include the development, implementation, and adaptation of digital or cryptocurrency, blockchain, and other “fintech” technology. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers. Failure to successfully keep pace with technological changes affecting the financial services industry could negatively affect our growth, revenue and net income.

We may elect or be compelled to seek additional capital in the future, but that capital may not be available when it is needed.

We are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations. Federal bank regulatory agencies have adopted extensive changes to their capital requirements, including raising required amounts and eliminating the inclusion of certain instruments from the calculation of capital. If we experience significant loan losses, additional capital may need to be infused. In addition, we may elect to raise additional capital to support our business or to finance acquisitions, if any, or we may otherwise elect or be required to raise additional capital. Our ability to raise additional capital, if needed, will depend on our financial performance, conditions in the capital markets, economic conditions and a number of other factors, many of which are outside our control. Accordingly, there can be no assurance that we will be able to raise additional capital if needed or that the terms of available capital will be acceptable to us. If we cannot raise additional capital when needed, it may have a material adverse effect on our financial condition, results of operations and prospects.

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In addition, prior debt offerings could potentially have important consequences to us and our debt and equity investors, including:

•requiring a substantial portion of our cash flow from operations to make interest payments;

•making it more difficult to satisfy debt service and other obligations;

•increasing the risk of a future credit ratings downgrade of our debt, which could increase future debt costs and limit the future availability of debt financing;

•increasing our vulnerability to general adverse economic and industry conditions;

•reducing the cash flow available to fund capital expenditures and other corporate purposes and to grow our business;

•limiting our flexibility in planning for, or reacting to, changes in our business and the industry;

•placing us at a competitive disadvantage relative to our competitors that may not be as highly leveraged with debt; and

•limiting our ability to borrow additional funds as needed or take advantage of business opportunities as they arise, pay cash dividends or repurchase securities.

We continue to evaluate these risks on an ongoing basis.

Our ability to pay dividends on our common shares is limited.

Although we have paid a dividend on our common shares every quarter since becoming a public company, our Board of Directors reviews the dividend on a quarterly basis and establishes the dividend rate based on our financial condition, results of operations, capital and other regulatory requirements, and other factors that our Board of Directors deems relevant. As a financial holding company, we are a legal entity separate and distinct from our subsidiaries and affiliates. Our principal source of funds to pay dividends on our common shares and service our debt is dividends from our subsidiaries. In the event our subsidiaries become unable to pay dividends to us, we may not be able to service our debt, pay our other obligations or pay dividends on our common shares. Accordingly, our inability to receive dividends from our subsidiaries could also have a material adverse effect on our business, financial condition and results of operations.

Various federal and state statutory provisions and regulations limit the amount of dividends that Park National Bank and our other subsidiaries may pay to us without regulatory approval. In addition, the Federal Reserve Board and the OCC have issued policy statements that provide that insured banks as well as financial holding companies and other bank holding companies should generally only pay dividends out of current operating earnings. Thus, the ability of Park National Bank to pay dividends in the future is currently influenced, and could be further influenced, by bank regulatory policies and capital guidelines and may restrict our ability to declare and pay dividends to our shareholders.

Payment of dividends could also be subject to regulatory limitations if Park National Bank were to become “undercapitalized” for purposes of the applicable “prompt corrective action” regulations. Throughout 2022 and 2023 to date, Park National Bank has been in compliance with all regulatory capital requirements and had sufficient capital under the “prompt corrective action” regulations to be deemed “well-capitalized.” There are also restrictions on the ability of Park National Bank to pay dividends if it does not hold the applicable capital conservation buffer.

If any of our subsidiaries becomes insolvent, the direct creditors of that subsidiary will have a prior claim on that subsidiary’s assets. Our rights and the rights of our creditors will be subject to that prior claim, unless we are also a direct creditor of that subsidiary.

 Derivative transactions may expose us to unexpected risk and potential losses.

We are party to a number of derivative transactions. Many of these derivative instruments are individually negotiated and non-standardized, which can make exiting, transferring or settling the position difficult. We carry borrowings which contain embedded derivatives. These borrowing arrangements require that we deliver underlying securities to the counterparty as collateral. We are dependent on the creditworthiness of the counterparties and are therefore susceptible to credit and operational risk in these situations.

Derivative instruments and other transactions entered into with third parties are not always confirmed by the counterparties on a timely basis. While the transaction remains unconfirmed, we are subject to heightened credit and operational risk and, in the event of a default, we may find it more difficult to enforce the underlying derivative instrument. In addition, as new and more complex derivative products are created, covering a wider array of underlying credit and other instruments, disputes about the terms of the underlying derivative instruments could arise, which could impair our ability to effectively manage our risk exposures from these products and subject us to increased costs. Any regulatory effort to create an exchange or trading platform for credit derivatives and other over-the-counter derivative instruments, or a market shift toward standardized

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derivative instruments, could reduce the risk associated with such transactions, but under certain circumstances could also limit our ability to develop derivative instruments that best suit our needs and those of our clients and adversely affect our profitability.

Legislative, Regulatory and Accounting Change Risks

Legislative or regulatory changes or actions could adversely impact us or the businesses in which we are engaged.

The financial services industry is extensively regulated. We are subject to extensive state and federal regulation, supervision and legislation that govern almost all aspects of our operations. Laws and regulations may change from time to time and are primarily intended for the protection of consumers, depositors, borrowers, the DIF and the banking system as a whole, and not to benefit our shareholders. Regulations affecting banks and financial services businesses are undergoing continuous change and management cannot predict the effect of these changes. While such changes are generally intended to lessen the regulatory burden on financial institutions, the impact of any changes to laws and regulations or other actions by regulatory agencies may negatively impact us or our ability to increase the value of our business. Regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the imposition of restrictions on the operation of a financial institution, the classification of assets held by a financial institution, the adequacy of a financial institution’s allowance for credit losses and the ability to complete acquisitions. Additionally, actions by regulatory agencies against us could cause us to devote significant time and resources to defending our business and may lead to penalties that materially affect us and our shareholders. Even the reduction of regulatory restrictions could have an adverse effect on us and our shareholders if such lessening of restrictions increases competition within our industry or our market area.

In light of conditions in the global financial markets and the global economy that occurred in the last fifteen years, regulators have increased their focus on the regulation of the financial services industry. Most recently, the U.S. Congress and the federal agencies regulating the financial services industry have acted on an unprecedented scale in responding to the stresses experienced in the global financial markets. Some of the laws enacted by the U.S. Congress and regulations promulgated by federal bank regulatory agencies subject us, and other financial institutions to which such laws and regulations apply, to additional restrictions, oversight and costs that may have an impact on our business, results of operations or the trading price of our common shares. In addition to laws, regulations and supervisory and enforcement actions directed at the operations of financial institutions, proposals to reform the housing finance market consider significant changes to Fannie Mae and Freddie Mac, which could negatively affect our sales of loans.

Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.

Financial institutions are facing increasing scrutiny from customers, regulators, investors, and other stakeholders related to their environmental, social and governance ("ESG") practices and disclosure. Investor advocacy groups, investment funds and influential investors are also increasingly focused on these practices, especially as they relate to the environment, health and safety, diversity, labor conditions and human rights. Increased ESG-related compliance costs for us as well as among our third-party suppliers, vendors and various other parties within our supply chain could result in increases to our overall operational costs. Failure to adapt to or comply with regulatory requirements or investor or stakeholder expectations and standards could negatively impact our reputation, ability to do business with certain partners, access to capital, and the price of our Common Shares.

Deposit insurance premiums assessed on Park National Bank may increase and have a negative effect on Park’s results of operations.

We have limited ability to control the amount of premiums we are required to pay for FDIC insurance. The DIF is funded by fees assessed on insured depository institutions. If the costs of future bank failures increase, deposit insurance premiums may also increase. The FDIC has adopted rules revising the FDIC's assessments in a manner benefiting banks with assets totaling less than $10 billion. There can be no assurance, however, that assessments will not be changed in the future. Federal deposit insurance is described in more detail in the section captioned "Supervision and Regulation of Park and Park's Subsidiaries – Federal Deposit Insurance" in "ITEM 1. BUSINESS" of this Annual Report on Form 10-K.

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Changes in accounting standards, policies, estimates or procedures could impact our reported financial condition or results of operations.

The entities responsible for setting accounting standards, including the FASB, the SEC and other regulatory bodies, periodically change the financial accounting and reporting guidance that governs the preparation of our consolidated financial statements. Changes in accounting standards can be hard to predict and could materially impact how we record and report our financial condition and results of operations. In some cases, we could be required to apply new or revised guidance retroactively, resulting in the restatement of prior period financial statements. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make significant estimates that affect the financial statements. Due to the inherent nature of these estimates, actual results may vary materially from management’s estimates.

Additional information regarding Park’s critical accounting policies and the sensitivity of estimates can be found in our discussion of “CRITICAL ACCOUNTING POLICIES” in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K.

Our accounting estimates and risk management processes rely on analytical and forecasting models.

The processes we use to estimate our credit losses and to measure the fair value of financial instruments, as well as the processes used to estimate the effects of changing interest rates and other market measures on our financial condition and results of operations, depends upon the use of analytical and, in some cases, forecasting models. These models reflect assumptions that may not be accurate, particularly in times of market stress or other unforeseen circumstances. Even if these assumptions are adequate, the models may prove to be inadequate or inaccurate because of other flaws in their design or their implementation. If the models we use for interest rate risk and asset-liability management are inadequate, we may incur increased or unexpected losses upon changes in market interest rates or other market measures. If the model we use for determining our expected credit losses is inadequate, the allowance for credit losses may not be sufficient to support charge-offs. If the models we use to measure the fair value of financial instruments are inadequate, the fair value of such financial instruments may fluctuate unexpectedly or may not accurately reflect what we could realize upon sale or settlement of such financial instruments. Any such failure in our analytical or forecasting models could have a material adverse effect on our business, financial condition and results of operations.

Strategic Risks

Future expansion may adversely affect our financial condition and results of operations as well as dilute the interests of our shareholders and negatively affect the price of our common shares.

We may acquire other financial institutions, or branches or assets of other financial institutions, in the future. We may also open new branches and enter into new lines of business or offer new products or services. Any such expansion of our business will involve a number of expenses and risks, which may include:

•the time and expense associated with identifying and evaluating potential expansions;

•the potential inaccuracy of estimates and judgments used to evaluate credit, operations, management and market risk with respect to target financial institutions;

•potential exposure to unknown or contingent liabilities of the target financial institution;

•exposure to potential asset quality issues of the target financial institution;

•the time and costs of evaluating new markets, hiring local management and opening new offices, and the delay between commencing these activities and the generation of profits from the expansion;

•our financing of the expansion;

•the diversion of management’s attention to the negotiation of a transaction and the integration of the operations and personnel of the combining businesses;

•risks associated with entry into unfamiliar markets;

•the introduction of new products and services into our existing business;

•the incurrence and possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on our results of operations;

•the risk of loss of key employees and customers;

•the risk associated with differing company cultures; and

•difficulty in receiving appropriate regulatory approval for any proposed transaction.

We may incur substantial costs to expand, and such expansion may not result in the levels of profits we expect. Integration efforts for any future acquisitions may not be successful. We may issue equity securities in connection with acquisitions, which could dilute the economic and voting interests of our existing shareholders.

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Any merger or acquisition opportunity that we decide to pursue will ultimately be subject to regulatory approval or other closing conditions. We may expend substantial time and resources pursing potential acquisitions which may not be consummated because regulatory approval or other closing conditions are not satisfied.

Changes in retail distribution strategies and consumer behavior may adversely impact our investments in our financial service office premises and equipment and other assets and may lead to increased expenditures to change our retail distribution channel.

We have significant investments in financial service office premises and equipment for our financial service office network, including 96 financial service offices as well as our retail work force and other financial service office banking assets. Advances in technology such as e-commerce, telephone, internet and mobile banking, and in-branch self-service technologies including automatic teller machines and other equipment, as well as changing customer preferences for these other methods of accessing our products and services, could affect the value of our financial service office network or other retail distribution assets and may cause us to change our retail distribution strategy, close and/or sell certain financial service offices and restructure or reduce our remaining financial service offices and work force. Further advances in technology and/or changes in customer preferences including those related to social media, digital or cryptocurrency, blockchain, and other “fintech” technologies could result in additional changes in our retail distribution strategy and/or financial service office network. These actions could lead to losses on these assets or could adversely impact the carrying value of other long-lived assets and may lead to increased expenditures to renovate and reconfigure remaining financial service offices or to otherwise reform our retail distribution channel.

General Risk Factors

If our total consolidated assets exceed $10.0 billion, we will become subject to additional regulations

As of December 31, 2022, Park had total consolidated assets of $9.9 billion. However, should our total consolidated assets exceed $10.0 billion, Park and Park National Bank will become subject to heightened regulatory requirements stemming largely from the Dodd-Frank Act. These requirements include, but are not limited to, the following: (i) supervision, examination and enforcement by the CFPB with respect to federal consumer financial protection laws; (ii) a modified methodology and scorecard for calculating FDIC insurance assessments and, depending on the result of Park National Bank’s performance under the scorecard, potentially higher assessment rates; (iii) limitations on interchange transaction fees for debit card transactions; (iv) heightened compliance standards under the Volcker Rule; (v) enhanced supervision by the OCC and the Federal Reserve Board; and (vi) no longer being eligible to elect to be subject to the CBLR. The imposition of these regulatory requirements and increased supervision, should the $10.0 billion threshold be crossed, may require the additional commitment of financial resources to regulatory compliance and may increase Park National Bank’s cost of operations and provide greater limitations on the products and services that can be offered.

Compliance with these additional ongoing requirements may necessitate additional personnel, the design and implementation of additional internal controls, or the incurrence of other significant expenses, any of which could have a significant adverse effect on our business, financial condition, or results of operations. Our regulators may also consider our preparation for compliance with these regulatory requirements in the course of examining our operations generally or when considering any request from us or Park National Bank.

We may be a defendant from time to time in a variety of litigation and other actions, which could have a material adverse effect on our financial condition, results of operations and cash flows.

We may be involved from time to time in a variety of litigation arising out of our business. The risk of litigation increases in times of increased troubled loan collection activity. Our insurance may not cover all claims that may be asserted against us, and any claims asserted against us, regardless of merit or eventual outcome, may harm our reputation. Should the ultimate judgments or settlements in any litigation exceed our insurance coverage, they could have a material adverse effect on our financial condition, results of operations and cash flows. In addition, we may not be able to obtain appropriate types or levels of insurance in the future or obtain adequate replacement policies with acceptable terms.

A default by another larger financial institution could adversely affect financial markets generally.

Many financial institutions and their related operations are closely intertwined, and the soundness of such financial institutions may, to some degree, be interdependent. As a result, concerns about, or a default or threatened default by, one financial institution could lead to significant market-wide liquidity and credit problems and/or losses or defaults by other financial institutions. This “systemic risk” may adversely affect our business.

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We are at risk of increased losses from fraud.

Criminals are committing fraud at an increasing rate and are using more sophisticated techniques. In some cases, these individuals are part of larger criminal rings, which allow them to be more effective. Such fraudulent activity has taken many forms, ranging from wire fraud, debit card fraud, check fraud, mechanical devices attached to ATM machines, social engineering and phishing attacks to obtain personal information, or impersonation of clients through the use of falsified or stolen credentials. Additionally, an individual or business entity may properly identify itself, yet seek to establish a business relationship for the purpose of perpetrating fraud. An emerging type of fraud even involves the creation of synthetic identification in which fraudsters "create" individuals for the purpose of perpetrating fraud. In addition to fraud committed directly against us, we may suffer losses as a result of fraudulent activity committed against third parties. Increased deployment of technologies, such as chip card technology, defray and reduce certain aspects of fraud; however, criminals are turning to other sources to steal personally identifiable information, such as unaffiliated healthcare providers and government entities, in order to impersonate consumers and thereby commit fraud.

Changes in tax laws could adversely affect our performance.

We are subject to extensive federal, state and local taxes, including income, excise, sales/use, payroll, franchise, withholding and ad valorem taxes. Changes to our taxes could have a material adverse effect on our results of operations, fair values of net deferred tax assets and obligations of states and political subdivisions held in our investment securities portfolio. In addition, our customers are subject to a wide variety of federal, state and local taxes. Changes in taxes paid by our customers may adversely affect their ability to purchase homes or consumer products, which could adversely affect their demand for our loans and deposit products. In addition, such negative effects on our customers could result in defaults on the loans we have made and decrease the value of mortgage-backed securities in which we have invested.

Adverse changes in the financial markets may adversely impact our results of operations.

While we generally invest in securities issued by U.S. government agencies and sponsored entities and domestic state and local governments with limited credit risk, certain investment securities we hold possess higher credit risk since they represent beneficial interests in structured investments collateralized by residential mortgages, debt obligations and other similar asset-backed assets. Even securities issued by U.S. governmental agencies and sponsored entities may entail risk depending on political and economic changes. Regardless of the level of credit risk, all investment securities are subject to changes in market value due to changing interest rates, implied credit spreads and credit ratings.

Park National Bank will become subject to additional requirements and restrictions imposed by the U.S. Department of Justice (the “DOJ”) if the proposed DOJ Consent Order is approved by the U.S. District Court for the Southern District of Ohio, Western Division.

On February 28, 2023, Park National Bank reached an agreement with the DOJ to increase the efforts of Park National Bank to promote home lending in the Columbus, Ohio market. The agreement, which is reflected in the proposed consent order filed on February 28, 2023, in the U.S. District Court for the Southern District of Ohio, Western Division (the “DOJ Consent Order”), serves to voluntarily resolve all claims of the U.S. alleging that Park National Bank’s mortgage lending practices within the Columbus, Ohio Metropolitan Statistical Area violated the Fair Housing Act and the Equal Credit Opportunity Act.

In accordance with the terms of the DOJ Consent Order, Park National Bank will invest a minimum of $7.75 million over five years in a loan subsidy fund to increase credit opportunities for home mortgage loans, home improvement loans, home refinance loans and home equity loans and lines of credit for consumers applying for loans in majority-minority census tracts ("MMCTs") in Fairfield, Franklin, Hocking, Licking, Morrow and Perry counties in Ohio (the “Columbus Lending Area”). Park National Bank will also devote a minimum of $500,000 over five years toward one or more community development partnership programs that provide services to residents of MMCTs in the Columbus Lending Area related to credit, financial education, homeownership and foreclosure prevention; and at least $750,000 over five years toward advertising, community outreach, consumer financial education and credit counseling in the Columbus Lending Area. Park National Bank will also establish one new mortgage loan production office and one new full-service branch in MMCTs in the Columbus Lending Area and hire four lenders, one of whom will be Spanish-speaking, focused on serving these communities. In addition, Park National Bank will continue to maintain, throughout the term of the DOJ Consent Order, Park National Bank’s full-time Director of Community Home Lending and Development position, who will oversee Park National Bank’s lending in MMCTs in the Columbus Lending Area.

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The DOJ Consent Order must be approved by the U.S. District Court for the Southern District of Ohio, Western Division, and once approved and entered by that Court, the DOJ Consent Order will resolve all claims by the U.S. against Park National Bank.

Park is committed to investing at least $9.0 million over five years and will record the related expenses incurred in the

period in which the associated activities occur.

Although Park and Park National Bank are committed to full compliance with the DOJ Consent Order, achieving such compliance will require significant management attention from Park and may cause Park to incur unanticipated costs and expenses. Actions taken to achieve compliance with the DOJ Consent Order may affect Park’s financial performance and may require us to reallocate resources away from existing businesses or to undertake significant changes to our businesses, operations, products and services, and risk management practices. In addition, Park and Park National Bank could be subject to other enforcement actions relating to the alleged violations resolved by the DOJ Consent Order.

ITEM 1B.UNRESOLVED STAFF COMMENTS.

No response required.

ITEM 2.PROPERTIES.

Park’s principal executive offices are located at 50 North Third Street, Newark, Ohio 43055.

Park National Bank

As of the date of this Annual Report on Form 10-K, Park National Bank and its subsidiary Scope Leasing, Inc. had a total of 96 financial service offices in Ohio, Kentucky, North Carolina and South Carolina. Park National Bank has three financial service offices (including its main office) and three operations centers in Newark in Licking County, Ohio. We operate a total of 86 financial service offices in Ohio, one financial service office in Kentucky, four financial service offices in North Carolina and five financial service offices in South Carolina. Of the financial service offices described above, 16 are leased and the remainder are owned. Park National Bank also operates 28 off-site automated teller machines.

Scope Leasing, Inc. has an office located in Columbus in Franklin County, Ohio, which it leases.

Guardian Finance

As of the date of this Annual Report on Form 10-K, Guardian Finance had one administrative office in Newark in Licking County, Ohio, which it leases from Park National Bank.

SE Property Holdings, LLC

SEPH has one administrative office located in Newark in Licking County, Ohio, which it leases from Park National Bank.

ITEM 3.LEGAL PROCEEDINGS.

We are routinely engaged in various litigation and other legal matters. These include defending against claims of improper loan, deposit account, and other banking practices, as well as trust and investment, intellectual property, contract, and other legal matters, and we have a number of unresolved lawsuits and open matters pending resolution. In addition, we are parties to litigation involving the collection of delinquent accounts, challenges to security interests in collateral, foreclosure lawsuits, and similar matters which are part of, or incidental to, our ordinary course of business. While the ultimate liability with respect to these matters and claims cannot be determined at this time, we believe that losses, damages, or liabilities, if any, and other amounts relating to pending matters are not likely to be material to our consolidated financial position or results of operations. Reserves are established for these various litigation and other legal matters, when appropriate under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel.

ITEM 4.MINE SAFETY DISCLOSURES.

Not applicable.

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PART II

ITEM 5.MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Park's common shares (symbol: PRK) are traded on NYSE American. At December 31, 2022, Park had 3,333 shareholders of record. Park currently intends to continue to pay quarterly cash dividends comparable to the regular quarterly cash dividends paid during the year ended December 31, 2022, subject to the regulatory restrictions described in "Note 25 - Dividend Restrictions" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA," as well as in the section captioned "Supervision and Regulation of Park and Park's Subsidiaries – Limits on Dividends and Other Payments" in "ITEM 1. BUSINESS" of this Annual Report on Form 10-K.

Performance Graph

The following graph compares the cumulative total shareholder return performance for Park's common shares with the NYSE Composite Index, the KBW NASDAQ Bank Index, and the S&P U.S. SmallCap Banks Index for the five-year period from December 31, 2017 to December 31, 2022. The NYSE Composite Index is a market capitalization-weighted index of the stocks listed on NYSE. The KBW NASDAQ Bank Index is comprised of 24 banking stocks representing the large U.S. national money centers, regional banks and thrift institutions and focuses specifically on banking and de-emphasizes components that would be heavily insurance-related or investment-oriented. The S&P U.S. SmallCap Banks Index is a market capitalization-weighted index comprised of common stocks of U.S. financial services companies that are principally engaged in the business of providing services and products, including banking, investment services, insurance and real estate finance services.

Park believes that the KBW NASDAQ Bank Index and the S&P U.S. SmallCap Banks Index are the appropriate industry indices for Park to use for the five-year total shareholder return performance comparison given the nature of the services provided by the financial services companies included in each.

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Total Return Performance
	Period Ended
Index	12/31/17	12/31/18	12/31/19	12/31/20	12/31/21	12/31/22
Park National Corporation	100.00	84.93	106.94	115.08	156.00	165.56
NYSE Composite Index	100.00	91.05	114.28	122.26	147.54	133.75
KBW NASDAQ Bank Index	100.00	82.29	112.01	100.46	138.97	109.23
S&P U.S. SmallCap Banks Index	100.00	83.44	104.69	95.08	132.36	116.69

The annual compound total return on Park’s common shares for the past five years was a positive 10.6%.  By comparison, the annual compound total returns for the past five years on the NYSE Composite Index, the KBW NASDAQ Bank Index, and the S&P U.S. SmallCap Banks Index were a positive 6.0%, a positive 1.8% and a positive 3.1%, respectively.

Issuer Purchases of Equity Securities

The following table provides information regarding purchases of Park's common shares made by or on behalf of Park or any "affiliated purchaser" as defined in Rule 10b-18(a)(3) under the Exchange Act during the fiscal quarter ended December 31, 2022, as well as the maximum number of common shares that may be purchased under Park’s previously announced stock repurchase authorizations to fund the 2017 Long-Term Incentive Plan for Employees (the "2017 Employees LTIP") and the 2017 Long-Term Incentive Plan for Non-Employee Directors (the "2017 Non-Employee Directors LTIP") and Park's previously announced 2017 and 2019 stock repurchase authorizations:

Period	Total Number of Common Shares Purchased	Average Price Paid per Common Share	Total Number of Common Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Common Shares that May Yet Be Purchased under the Plans or Programs (1)
October 1 through October 31, 2022	—	—	—	1,195,088
November 1 through November 30, 2022	—	—	—	1,195,088
December 1 through December 31, 2022	—	—	—	1,195,088
Total	—	—	—	1,195,088

(1)The number shown represents, as of the end of each period, the maximum number of common shares that may yet be purchased as part of Park’s publicly announced stock repurchase authorizations to fund the 2017 Employees LTIP and the 2017 Non-Employee Directors LTIP, both of which became effective on April 24, 2017; Park's publicly announced stock repurchase authorization covering 500,000 common shares which was announced on January 23, 2017; and Park's stock repurchase authorization covering 500,000 common shares which was announced on January 28, 2019 and as to which approval from the Federal Reserve was obtained in the form of correspondence from the Federal Reserve Bank of Cleveland dated April 19, 2019.

At the 2017 Annual Meeting of Shareholders held on April 24, 2017, Park's shareholders approved the 2017 Employees LTIP and the 2017 Non-Employee Directors LTIP. The common shares to be issued and delivered under the 2017 Employees LTIP and the 2017 Non-Employee Directors LTIP may consist of either common shares currently held or common shares subsequently acquired by Park as treasury shares. No newly-issued common shares will be delivered under the 2017 Employees LTIP or the 2017 Non-Employee Directors LTIP. On April 24, 2017, Park's Board of Directors authorized the purchase, from time to time, of up to 750,000 Park common shares and 150,000 Park common shares, respectively, to be held as treasury shares for subsequent issuance and delivery under the 2017 Employees LTIP and the 2017 Non-Employee Directors LTIP.

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On January 23, 2017, Park announced that on that same day, the Park Board of Directors authorized Park to purchase, from time to time, up to an aggregate of 500,000 Park common shares. On January 28, 2019, Park announced that on that same day, the Park Board of Directors authorized Park to repurchase, from time to time following receipt of any required approval from the Federal Reserve, up to 500,000 Park common shares in addition to the 500,000 Park common shares which had been authorized for repurchase by the Park Board of Directors on January 23, 2017 and remained available for repurchase as of January 28, 2019. The required approval was received by Park in the form of correspondence from the Federal Reserve Bank of Cleveland dated April 19, 2019.

Purchases may be made through NYSE American, in the over-the-counter market or in privately negotiated transactions, in each case in compliance with the Ohio General Corporation Law, applicable federal and state securities laws, the rules applicable to issuers having securities listed on NYSE American, regulations promulgated by the Federal Reserve Board and all applicable laws and regulations, each as in effect at the time of each such purchase. Purchases will be made upon such terms and conditions and at such times and in such amounts as any one or more of the authorized officers of Park deem to be appropriate, subject to market conditions, regulatory requirements, any contractual obligations of Park and Park's subsidiaries and other factors, and in the best interest of Park and Park's shareholders. The January 23, 2017 stock repurchase authorization and the January 28, 2019 stock repurchase authorization are distinct from the stock repurchase authorizations to fund the 2017 Employees LTIP and the 2017 Non-Employee Directors LTIP.

ITEM 6.[RESERVED]

ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

FORWARD-LOOKING STATEMENTS

Management's discussion and analysis addresses the financial condition and results of operations for Park National Corporation and our subsidiaries (unless the context otherwise requires, collectively, "Park" or the "Corporation"). This discussion should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. Management’s discussion and analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.

Risks and uncertainties that could cause actual results to differ materially include, without limitation:

•Park's ability to execute our business plan successfully and within the expected timeframe as well as our ability to manage strategic initiatives;

•current and future economic and financial market conditions, either nationally or in the states in which Park and our subsidiaries do business, including the effects of higher unemployment rates, an acceleration in the pace of inflation, interest rate fluctuations, changes in the economy or global supply chain, supply-demand imbalances affecting local real estate prices, U.S. fiscal debt, budget and tax matters, geopolitical matters (including the impact of the Russia-Ukraine conflict and associated sanctions and export controls), and any slowdown in global economic growth, in addition to the continuing impact of the COVID-19 pandemic and recovery therefrom on our customers’ operations and financial condition, any of which may result in adverse impacts on the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties' inability to meet credit and other obligations and the possible impairment of collectability of loans;

•factors that can impact the performance of our loan portfolio, including changes in real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions;

•the effect of monetary and other fiscal policies (including the impact of money supply, market interest rate policies and policies impacting inflation, of the Federal Reserve Board, the U.S. Treasury and other governmental agencies) as well as disruption in the liquidity and functioning of U.S. financial markets, may adversely impact prepayment penalty income, mortgage banking income, income from fiduciary activities, the value of securities, deposits and other financial instruments, in addition to the loan demand and the performance of our loan portfolio, and the interest rate sensitivity of our consolidated balance sheet as well as reduce net interest margins;

•changes in the federal, state, or local tax laws may adversely affect the fair values of net deferred tax assets and obligations of state and political subdivisions held in Park's investment securities portfolio and otherwise negatively impact our financial performance;

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•the impact of the changes in federal, state and local governmental policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation that may increase tax rates, infrastructure spending and social programs;

•changes in laws or requirements imposed by Park's regulators impacting Park's capital actions, including dividend payments and stock repurchases;

•changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behaviors, changes in business and economic conditions, legislative and regulatory initiatives, or other factors may be different than anticipated;

•changes in customers', suppliers', and other counterparties' performance and creditworthiness, and Park's expectations regarding future credit losses and our allowance for credit losses, may be different than anticipated due to the continuing impact of and the various responses to inflationary pressures;

•Park may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral;

•the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors;

•the adequacy of our internal controls and risk management program in the event of changes in the market, economic, operational (including those which may result from our associates working remotely), asset/liability repricing, legal, compliance, strategic, cybersecurity, liquidity, credit and interest rate risks associated with Park's business;

•competitive pressures among financial services organizations could increase significantly, including product and pricing pressures (which could in turn impact our credit spreads), changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Park's ability to attract, develop and retain qualified banking professionals;

•uncertainty regarding the nature, timing, cost and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and our subsidiaries, including major reform of the regulatory oversight structure of the financial services industry and changes in laws and regulations concerning taxes, FDIC insurance premium levels, pensions, bankruptcy, consumer protection, rent regulation and housing, financial accounting and reporting, environmental protection, insurance, bank products and services, bank and bank holding company capital and liquidity standards, fiduciary standards, securities and other aspects of the financial services industry, specifically the reforms provided for in the Coronavirus Aid, Relief and Economic Security (CARES) Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and the Basel III regulatory capital reforms, as well as regulations already adopted and which may be adopted in the future by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board, to implement the provisions of the CARES Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the provisions of the American Rescue Plan Act of 2021, the provisions of the Dodd-Frank Act, and the Basel III regulatory capital reforms;

•Park's ability to meet heightened supervisory requirements and expectations;

•the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board (the "FASB"), the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, may adversely affect Park's reported financial condition or results of operations;

•Park's assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate or not predictive of actual results;

•the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions;

•the impact of Park's ability to anticipate and respond to technological changes on Park's ability to respond to customer needs and meet competitive demands;

•operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Park and our subsidiaries are highly dependent;

•the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Park's third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Park and/or result in Park incurring a financial loss;

•a failure in or breach of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers, resulting in failures or disruptions in customer account management, general ledger, deposit, loan, or other systems, including as a result of cybersecurity attacks;

•the impact on Park's business and operating results of any costs associated with obtaining rights in intellectual property claimed by others and of the adequacy of Park's intellectual property protection in general;

•the existence or exacerbation of general geopolitical instability and uncertainty as well as the effect of trade policies (including the impact of potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, closing of border crossings and changes in the relationship of the U.S. and its global trading partners);

•the impact on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the growth rates and financial stability of certain sovereign governments,

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supranationals and financial institutions in Europe and Asia and the risk they may face difficulties servicing their sovereign debt;

•the effect of a fall in stock market prices on Park's asset and wealth management businesses;

•our litigation and regulatory compliance exposure, including the costs and effects of any adverse developments in legal proceedings or other claims, the costs and effects of unfavorable resolution of regulatory and other governmental examinations or other inquiries, and liabilities and business restrictions resulting from litigation and regulatory investigations;

•continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends;

•the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties;

•the impact of widespread natural and other disasters, pandemics, dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities (especially in light of the Russia-Ukraine conflict) on the economy and financial markets generally and on us or our counterparties specifically;

•a worsening of the U.S. economy due to financial, political, or other shocks;

•the effect of healthcare laws in the U.S. and potential changes for such laws which may increase our healthcare and other costs and negatively impact our operations and financial results;

•risk and uncertainties associated with Park's entry into new geographic markets with our most recent acquisitions, including expected revenue synergies and cost savings from recent acquisitions not being fully realized or realized within the expected time frame;

•uncertainty surrounding the transition from the London Inter-Bank Offered Rate (LIBOR) to an alternate reference rate;

•and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the SEC including those described in "Item 1A. Risk Factors" of this Annual Report on Form 10-K.

Park does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.

NON-U.S. GAAP FINANCIAL MEASURES

Management's discussion and analysis contains non-U.S. GAAP financial measures where management believes it to be helpful in understanding Park’s results of operations or financial position. Where non-U.S. GAAP financial measures are used, the comparable U.S. GAAP financial measure, as well as the reconciliation to the comparable U.S. GAAP financial measure, can be found herein.

Items Impacting Comparability of Period Results

From time to time, revenue, expenses and/or taxes are impacted by items judged by management of Park to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by management of Park at that time to be infrequent or short-term in nature. Most often, these items impacting comparability of period results are due to merger and acquisition activities and revenue and expenses related to former Vision Bank loan relationships. In other cases, they may result from management's decisions associated with significant corporate actions outside of the ordinary course of business.

Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in market and economic environment conditions, as a general rule volatility alone does not result in the inclusion of an item as one impacting comparability of period results. For example, changes in the provision for / (recovery of) credit losses (aside from those related to former Vision Bank loan relationships), gains (losses) on equity securities, net, and asset valuation adjustments, reflect ordinary banking activities and are, therefore, typically excluded from consideration as items impacting comparability of period results.

Management believes the disclosure of items impacting comparability of period results provides a better understanding of Park's performance and trends and allows management to ascertain which of such items, if any, to include or exclude from an analysis of Park's performance; i.e., within the context of determining how that performance differed from expectations, as well as how, if at all, to adjust estimates of future performance taking such items into account.

Items impacting comparability of the results of particular periods are not intended to be a complete list of items that may materially impact current or future period performance.

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Non-U.S. GAAP Financial Measures

Park's management uses certain non-U.S. GAAP financial measures to evaluate Park's performance. Specifically, management reviews the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-tax, pre-provision net income.

Management has included in this Management's Discussion and Analysis of Financial Condition and Results of Operation, information relating to the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-tax, pre-provision net income for the years ended December 31, 2022 and December 31, 2021. For the purpose of calculating the return on average tangible equity, a non-GAAP financial measure, net income for each period is divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating the return on average tangible assets, a non-GAAP financial measure, net income for each period is divided by average tangible assets during the period. Average tangible assets equals average assets during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating the tangible equity to tangible assets ratio, a non-GAAP financial measure, tangible equity is divided by tangible assets. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at period end. Tangible assets equal total assets less goodwill and other intangible assets, in each case at period end. For the purpose of calculating pre-tax, pre-provision net income, a non-GAAP financial measure, income taxes and the provision for (recovery of) credit losses are added back to net income, in each case during the applicable period.

Management believes that the disclosure of the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-tax, pre-provision net income presents additional information to the reader of the consolidated financial statements, which, when read in conjunction with the consolidated financial statements prepared in accordance with U.S. GAAP, assists in analyzing Park's operating performance, ensures comparability of operating performance from period to period, and facilitates comparisons with the performance of Park's peer financial holding companies and bank holding companies, while eliminating certain non-operational effects of acquisitions. In the tables included within the "ANALYSIS OF EARNINGS - Items Impacting Comparability" section of this Management's Discussion and Analysis of Financial Condition and Results of Operations, Park has provided a reconciliation of average tangible equity to average shareholders' equity, average tangible assets to average assets, tangible equity to total shareholders' equity, tangible assets to total assets, and pre-tax, pre-provision net income to net income solely for the purpose of complying with SEC Regulation G and not as an indication that the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, and pre-provision net income are substitutes for the return on average equity, the return on average assets, the total shareholders' equity to total assets ratio, and net income, respectively, as determined in accordance with U.S. GAAP

FTE (fully taxable equivalent) Financial Measures

Interest income, yields, and ratios on a FTE basis are considered non-U.S. GAAP financial measures. Management believes net interest income on a FTE basis provides an insightful picture of the interest margin for comparison purposes. The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The FTE basis assumes a corporate federal statutory tax rate of 21%. In the tables included within the "ANALYSIS OF EARNINGS - Net Interest Income" section of this Management's Discussion and Analysis of Financial Condition and Results of Operations, Park has provided detail of FTE interest income solely for the purpose of complying with SEC Regulation G and not as an indication that FTE interest income, yields and ratios are substitutes for interest income, yields and ratios, as determined in accordance with U.S. GAAP.

Paycheck Protection Program ("PPP") Loans

Park originated $764.7 million in loans as part of the PPP. These loans are not typical of Park's loan portfolio in that they are part of a specific government program to support businesses during the COVID-19 pandemic and are 100% guaranteed by the Small Business Administration ("SBA"). As such, management considers growth in the loan portfolio excluding PPP loans, the total allowance for credit losses to total loans ratio (excluding PPP loans), and general reserve on collectively evaluated loans as a percentage of total collectively evaluated loans (excluding PPP loans) in addition to the related U.S. GAAP metrics which are not adjusted for PPP loans.

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OVERVIEW

COVID-19 Considerations

During 2022 and 2021, Park provided calamity pay and special bonuses to certain associates related to the COVID-19 pandemic. The cost of the calamity pay and special bonuses was $747,000, $2.1 million and $3.6 million, for the years ended December 31, 2022, 2021, and 2020, respectively, and is included within "Salaries" expense.

Paycheck Protection Program

During 2020 and 2021, Park approved and funded 7,701 loans totaling $764.7 million as part of the PPP. For its assistance in making and retaining these loans, Park received an aggregate of $33.1 million in fees from the SBA, of which $3.0 million and $16.3 million were recognized within loan interest income during the years ended December 31, 2022 and 2021, respectively. At December 31, 2022, the remaining balance of PPP loans was $4.2 million.

Loan Modifications

During the COVID-19 pandemic, Park 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 troubled debt restructuring ("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. As of December 31, 2022, there were no loans which were still within the COVID-19 deferral period.

Financial Results by Segment

The following table reflects the net income (loss) by segment for the years ended December 31, 2022, 2021 and 2020. Park's segments include PNB and "All Other" which primarily consists of Park as the "Parent Company", GFSC and SEPH.

Table 1 - Net Income (Loss) by Segment
(In thousands)	2022		2021		2020
PNB	$	143,243	$	159,461	$	123,730
All Other	5,108		(5,516)		4,193
Total Park	$	148,351	$	153,945	$	127,923

Highlights from the years ended December 31, 2022 and 2021 included:

•Net income for the year ended December 31, 2022 of $148.4 million represented a $5.6 million, or 3.6%, decrease compared to $153.9 million for the year ended December 31, 2021.

•Pre-tax, pre-provision net income for the year ended December 31, 2022 of $185.0 million represented a $8.7 million, or 4.9%, increase compared to $176.3 million for the year ended December 31, 2021.

•During the year ended December 31, 2022, Park recorded interest income of $3.1 million related to PPP loans, compared to $18.0 million during the year ended December 31, 2021.

•Park recognized a $5.6 million gain on the sale of OREO, net, during the year ended December 31, 2022 related to former Vision Bank relationships. There was no gain on the sale of OREO, net, related to former Vision Bank relationships during the the year ended December 31, 2021.

•Park recognized a $12.0 million OREO valuation markup during the year ended December 31, 2022 related to the foreclosure and subsequent sale of a property collateralizing a former Vision Bank relationship. There was no OREO valuation markup related to former Vision Bank relationships during the the year ended December 31, 2021.

•During the year ended December 31, 2022, Park recorded income of $1.2 million as a result of an annual Visa incentive, compared to $1.1 million during the year ended December 31, 2021.

•During the year ended December 31, 2022, Park recognized expense of $3.2 million related to one-time bonuses compared to $2.5 million during the year ended December 31, 2021.

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•During the year ended December 31, 2022, Park incurred expenses of $1.8 million, reflecting direct expenses related to the collection of payments on former Vision Bank loan relationships, compared to $1.4 million for the year ended December 31, 2021.

•During each of the years ended December 31, 2022 and 2021, Park contributed $4.0 million to its charitable foundation.

•PNB loan growth (excluding PPP loans) of 5.0% for the year ended December 31, 2022 compared to a decrease in loans (excluding PPP loans) of 0.6% for the year ended December 31, 2021.

•PNB total deposits, including off balance sheet deposits, decreased 4.5% for the year ended December 31, 2022 compared to an increase of 7.1% for the year ended December 31, 2021.

•Continued good credit quality with net loan charge-offs as a percentage of average loans of 0.03% for the year ended December 31, 2022, compared to net loan recoveries as a percentage of average loans of 0.05% for the year ended December 31, 2021.

Net income for both the year ended December 31, 2022 and the year ended December 31, 2021 included several items of income and expense that impact the comparability of period results. These items are detailed in the "ANALYSIS OF EARNINGS - Items Impacting Comparability" section of this Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion provides additional information regarding the PNB segment, followed by additional information regarding All Other.

The Park National Bank (PNB)

The table below reflects PNB's net income for the years ended December 31, 2022, 2021 and 2020.

Table 2 - PNB Summary Income Statement
(In thousands)	2022		2021		2020
Net interest income	$	350,646	$	328,398	$	326,375
Provision for (recovery of) credit losses (1)	5,834		(8,554)		30,813
Other income	115,211		126,802		124,231
Other expense	283,670		266,678		268,938
Income before income taxes	$	176,353	$	197,076	$	150,855
Income tax expense	33,110		37,615		27,125
Net income	$	143,243	$	159,461	$	123,730

(1) Park adopted ASU 2016-13 effective January 1, 2021. The allowance for credit losses and the related provision for (recovery of) credit losses for all periods subsequent to the date of adoption were calculated utilizing this guidance.

Net interest income of $350.6 million for the year ended December 31, 2022 represented a $22.2 million, or 6.8%, increase compared to $328.4 million for the year ended December 31, 2021. The increase was a result of a $37.5 million increase in interest income, partially offset by a $15.3 million increase in interest expense.

The $37.5 million increase in interest income was primarily due to a $26.5 million increase in investment income and a $11.0 million increase in interest income on loans. The $26.5 million increase in investment income was primarily the result of a $254.1 million increase in average investments, including money market investments, from $2.00 billion for the year ended December 31, 2021 to $2.26 billion for the year ended December 31, 2022. The increase was also the result of an increase in the yield on investments, which increased 103 basis points to 2.56% for the year ended December 31, 2022, compared to 1.53% for the year ended December 31, 2021. The increase in interest income on loans was primarily the result of a $176.9 million increase in average loans, excluding PPP loans, from $6.75 billion for the year ended December 31, 2021 to $6.93 billion for the year ended December 31, 2022, as well as an increase in the yield on loans, excluding PPP loans, which increased 26 basis points to 4.57% for the year ended December 31, 2022, compared to 4.31% for the year ended December 31, 2021. These increases were partially offset by a $15.0 million decrease in interest and fee income from PPP loans, which was $3.1 million for the year ended December 31, 2022, compared to $18.0 million for the year ended December 31, 2021.

The $15.3 million increase in interest expense was primarily due to a $14.7 million increase in interest expense on deposits, as well as a $628,000 increase in interest expense on borrowings. The increase in interest expense on deposits was the result of a $108.2 million increase in average on-balance sheet interest bearing deposits from $5.25 billion for the year ended December 31, 2021, to $5.36 billion for the year ended December 31, 2022 as well as the result of an increase in the cost of deposits of 27

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basis points, from 0.12% for the year ended December 31, 2021 to 0.39% for the year ended December 31, 2022. The increase in on-balance sheet interest bearing deposits was due an increase in transaction accounts, which was partially offset by decreases in both savings and time deposits. During the years ended December 31, 2022 and 2021, Park made the decision to continue its participation in a program to transfer deposits off-balance sheet, at the end of each quarter, in order to manage growth of the balance sheet.

The provision for credit losses of $5.8 million for the year ended December 31, 2022 represented a difference of $14.4 million, compared to a recovery of credit losses of $8.6 million for the year ended December 31, 2021. Refer to the “CREDIT METRICS AND PROVISION FOR (RECOVERY OF) CREDIT LOSSES" section for additional details regarding the level of the provision for (recovery of) credit losses recognized in each period presented above.

Other income of $115.2 million for the year ended December 31, 2022 represented a decrease of $11.6 million, or 9.1%, compared to $126.8 million for the year ended December 31, 2021. The $11.6 million decrease was primarily related to a $14.8 million decrease in other service income, which was primarily due to declines in fee income from mortgage loan originations and mortgage servicing rights, partially offset by increases in income from investor rate locks and mortgage loans held for sale. The decrease was also related to (i) a $1.7 million decrease in gain on equity securities, net; (ii) a $390,000 decrease in other miscellaneous income; and (iii) a $358,000 decrease in fiduciary income. These decreases were partially offset by increases of (i) $3.9 million in other components of net periodic benefit income; and (ii) $1.3 million in income from service charges on deposit accounts.

A summary of mortgage loan originations for each quarter of 2022 and 2021 and for the years ended December 31, 2022 and 2021 follows.

Table 3 - PNB Mortgage Loan Originations
(Dollars in thousands)	Q1 2022			Q2 2022			Q3 2022			Q4 2022			YTD 2022
Mortgage Loan Origination Volume
Sold	$	69,053		$	50,013		$	27,025		$	13,051		$	159,142
Portfolio	53,498			63,104			90,551			56,134			263,287
Construction	32,928			34,044			34,026			19,796			120,794
Service released	4,660			4,580			2,537			2,961			14,738
Total mortgage loan originations	$	160,139		$	151,741		$	154,139		$	91,942		$	557,961
Refinances as a % of Total Mortgage Loan Originations	41.7		%	25.9		%	24.0		%	22.8		%	29.4		%
	Q1 2021			Q2 2021			Q3 2021			Q4 2021			YTD 2021
Mortgage Loan Origination Volume
Sold	$	191,116		$	142,398		$	123,757		$	98,007		$	555,278
Portfolio	82,613			74,670			66,718			60,685			284,686
Construction	28,987			37,266			28,486			24,816			119,555
Service released	1,266			2,204			4,537			5,795			13,802
Total mortgage loan originations	$	303,982		$	256,538		$	223,498		$	189,303		$	973,321
Refinances as a % of Total Mortgage Loan Originations	71.1		%	50.0		%	44.8		%	44.2		%	54.2		%

Total mortgage loan originations decreased $415.4 million, or 42.7%, to $558.0 million for the year ended December 31, 2022 compared to $973.3 million for the year ended December 31, 2021.

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The table below reflects PNB's other expense for the years ended December 31, 2022 and 2021.

Table 4 - PNB Other Expense Information
(Dollars in thousands)	December 31, 2022		December 31, 2021		$ change		% change
Salaries	$	129,378	$	120,949	$	8,429	7.0	%
Employee benefits	40,066		40,895		(829)		(2.0)	%
Occupancy expense	13,842		12,555		1,287		10.3	%
Furniture and equipment expense	11,900		10,880		1,020		9.4	%
Data processing fees	32,293		30,202		2,091		6.9	%
Professional fees and services	23,774		19,980		3,794		19.0	%
Marketing	5,304		6,072		(768)		(12.6)	%
Insurance	5,397		5,621		(224)		(4.0)	%
Communication	3,857		3,498		359		10.3	%
State tax expense	4,327		3,821		506		13.2	%
Amortization of intangible assets	1,487		1,798		(311)		(17.3)	%
Foundation contributions	4,000		4,000		—		—	%
Miscellaneous	8,045		6,407		1,638		25.6	%
Total other expense	$	283,670	$	266,678	$	16,992	6.4	%

Total other expense of $283.7 million for the year ended December 31, 2022 represented an increase of $17.0 million, or 6.4%, compared to $266.7 million for the year ended December 31, 2021. The increase in salaries expense was primarily related to increases in base salary expense and vacation accrual expense. The decrease in employee benefits expense was primarily related to a decrease in group insurance expense, partially offset by increases in payroll tax expense and other employee benefits, including retirement benefit expense. The increase in occupancy expense was primarily related to an increase in rental lease expense, including an impairment charge related to a leased office location. The increase in furniture and equipment expense was primarily related to an increase in depreciation expense. The increase in data processing fees was primarily related to an increase in software data processing expense, partially offset by a decrease in debit card processing expense. The increase in professional fees and services expense was primarily due to increases in legal expense, other fees and recruiting fees. The decrease in marketing expense was due to a decrease in advertising expenses. The increase in miscellaneous expense was due to increased expense for the allowance for unfunded lines of credit and increased training and travel-related expenses, which were partially offset by a decrease in operating lease depreciation expense.

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The table below provides certain balance sheet information and financial ratios for PNB as of or for the years ended December 31, 2022 and 2021.

Table 5 - PNB Balance Sheet Information and Financial Ratios
(Dollars in thousands)	December 31, 2022			December 31, 2021			% change from 12/31/21
Loans	$	7,141,362		$	6,868,935		3.97	%
Loans less PPP loans (1)	7,137,156			6,794,515			5.04	%
Allowance for credit losses	85,370			83,111			2.72	%
Net loans	7,055,992			6,785,824			3.98	%
Investment securities	1,796,613			1,807,392			(0.60)	%
Total assets	9,815,951			9,538,217			2.91	%
Total deposits	8,534,320			8,157,720			4.62	%
Average assets (2)	10,011,932			9,814,766			2.01	%
Efficiency ratio (3)	60.43		%	58.21		%	3.81	%
Return on average assets	1.43		%	1.62		%	(11.73)	%

(1) Excludes $4.2 million and $74.4 million of PPP loans at December 31, 2022 and December 31, 2021.

(2) Average assets for the years ended December 31, 2022 and 2021.

(3) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustments were $3.5 million for the year ended December 31, 2022 and $2.9 million for the year ended December 31, 2021.

Loans outstanding at December 31, 2022 were $7.14 billion, compared to $6.87 billion at December 31, 2021, an increase of $272.4 million, and compared to $7.10 billion at September 30, 2022, an increase of $38.9 million. Excluding $4.2 million, $5.7 million and $74.4 million of PPP loans at December 31, 2022, September 30, 2022 and December 31, 2021, respectively, loans outstanding were $7.14 billion at December 31, 2022, compared to $6.79 billion at December 31, 2021, an increase of $342.6 million, and compared to $7.10 billion at September 30, 2022, an increase of $40.4 million. The table below breaks out the change in loans outstanding, by loan type.

Table 6 - PNB Loan Information
(In thousands)	December 31, 2022		September 30, 2022		December 31, 2021		$ change from 9/30/22		% change from 9/30/22		$ change from 12/31/21		% change from 12/31/21
Home equity	$	167,232	$	167,072	$	165,691	$	160	0.1	%	$	1,541	0.9	%
Installment	1,921,059		1,948,819		1,685,687		(27,760)		(1.4)	%	235,372		14.0	%
Real estate	1,195,037		1,171,079		1,142,991		23,958		2.0	%	52,046		4.6	%
Commercial (excluding PPP loans) (1)	3,850,477		3,807,976		3,797,673		42,501		1.1	%	52,804		1.4	%
PPP loans	4,206		5,715		74,420		(1,509)		(26.4)	%	(70,214)		(94.3)	%
Other	3,351		1,842		2,473		1,509		81.9	%	878		35.5	%
Total loans	$	7,141,362	$	7,102,503	$	6,868,935	$	38,859	0.5	%	$	272,427	4.0	%
Total loans (excluding PPP loans) (1)	$	7,137,156	$	7,096,788	$	6,794,515	$	40,368	0.6	%	$	342,641	5.0	%

(1) Excludes $4.2 million of PPP loans at December 31, 2022, $5.7 million of PPP loans at September 30, 2022, and $74.4 million of PPP loans at December 31, 2021.

PNB's allowance for credit losses increased by $2.3 million, or 2.7%, to $85.4 million at December 31, 2022, compared to $83.1 million at December 31, 2021. Net charge-offs were $3.6 million, or 0.05% of total average loans, for the year ended December 31 2022 and net recoveries were $640,000, or 0.01% of total average loans, for the year ended December 31, 2021. Refer to the “CREDIT METRICS AND PROVISION FOR (RECOVERY OF) CREDIT LOSSES" section for additional information regarding PNB's loan portfolio and the level of provision for credit losses recognized in each period presented.

Total deposits at December 31, 2022 were $8.53 billion, compared to $8.16 billion at December 31, 2021, an increase of $376.6 million, or 4.6%. Total deposits at December 31, 2022 were $8.53 billion, compared to $8.61 billion at September 30, 2022, a

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decrease of $72.0 million, or 0.8%. During the years ended December 31, 2022 and 2021, Park made the decision to continue participation in two programs to transfer deposits off-balance sheet in order to manage growth of the balance sheet, as deposits increased significantly throughout the COVID-19 pandemic. At December 31, 2022, September 30, 2022 and December 31, 2021, Park had $195.9 million, $766.2 million, and $983.1 million, respectively, in deposits which were off-balance sheet. Total deposits would have decreased $410.5 million, or 4.5%, compared to December 31, 2021 had the $195.9 million and $983.1 million in deposits remained on the balance sheet at the respective dates. Total deposits would have decreased $642.2 million, or 6.9%, compared to September 30, 2022 had the $195.9 million and $766.2 million in deposits remained on the balance sheet at the respective dates. The table below breaks out the change in deposit balances, by deposit type.

Table 7 - PNB Deposit Information
(Dollars in thousands)	December 31, 2022		September 30, 2022		December 31, 2021		$ change from 9/30/22		% change from 9/30/22		$ change from 12/31/21		% change from 12/31/21
Non-interest bearing deposits	$	3,374,269	$	3,435,307	$	3,320,413	$	(61,038)	(1.8)	%	$	53,856	1.6	%
Transaction accounts	1,988,106		1,989,340		1,502,876		(1,234)		(0.1)	%	485,230		32.3	%
Savings	2,617,500		2,568,404		2,622,771		49,096		1.9	%	(5,271)		(0.2)	%
Certificates of deposit	554,445		613,222		711,660		(58,777)		(9.6)	%	(157,215)		(22.1)	%
Total deposits	$	8,534,320	$	8,606,273	$	8,157,720	$	(71,953)	(0.8)	%	$	376,600	4.6	%
Off balance sheet deposits	195,937		766,184		983,053		(570,247)		(74.4)	%	(787,116)		(80.1)	%
Total deposits including off balance sheet deposits	$	8,730,257	$	9,372,457	$	9,140,773	$	(642,200)	(6.9)	%	$	(410,516)	(4.5)	%

All Other

The table below summarizes the All Other net income (loss) for the years ended December 31, 2022, 2021, and 2020.

Table 8 - All Other Income Statement
(In thousands)	2022		2021		2020
Net interest (expense) income	$	(3,587)	$	1,495	$	1,255
Recovery of credit losses (1)	(1,277)		(3,362)		(18,759)
Other income	20,724		3,142		1,433
Other expense	14,308		16,840		17,657
Net income (loss) before income tax benefit	$	4,106	$	(8,841)	$	3,790
Income tax benefit	(1,002)		(3,325)		(403)
Net income (loss)	$	5,108	$	(5,516)	$	4,193

(1) Park adopted ASU 2016-13 effective January 1, 2021. The allowance for credit losses and the related recovery of credit losses for all periods subsequent to the date of adoption were calculated utilizing this guidance.

The net interest (expense) income for All Other included, for all periods presented, interest income on subordinated debt investments in PNB, which was eliminated in the consolidated Park National Corporation totals, as well as interest income on GFSC loans and SEPH impaired loan relationships. The net interest (expense) income for All Other also included interest expense on $175.0 million aggregate principal amount of 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030 issued by Park in August 2020 (the "Park Subordinated Notes").

Net interest (expense) income reflected net interest expense of $3.6 million for the year ended December 31, 2022, compared to net interest income of $1.5 million for the year ended December 31, 2021. The change was largely the result of a decrease of $4.2 million in loan interest income related to payment collections at SEPH and a decrease of $929,000 in net interest income from GFSC, partially offset by a decrease in interest expense on borrowings of $58,000 mainly related to the Park Subordinated Notes.

Refer to the “CREDIT METRICS AND PROVISION FOR (RECOVERY OF) CREDIT LOSSES" section for additional information regarding the All Other loan portfolio and the level of recovery of credit losses recognized in each period presented.

All Other had other income of $20.7 million for the year ended December 31, 2022, compared to $3.1 million for the year

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ended December 31, 2021. The change was largely due to (i) a $12.0 million increase in income from an OREO valuation markup; (ii) a $5.6 million increase in gain on the sale of OREO, net; (iii) a $749,000 increase in income from bank owned life insurance, mainly related to a death benefit payout; and (iv) a $304,000 increase in gain on equity securities carried at fair value or modified cost, which went from a $361,000 gain for the year ended December 31, 2021 to a $665,000 gain for the year ended December 31, 2022. The foregoing increases were partially offset by a $594,000 decrease in income due to an OREO devaluation and a $634,000 decrease in income related to partnership investments, which went from a $857,000 gain for the year ended December 31, 2021 to a $223,000 gain for the year ended December 31, 2022.

All Other had other expense of $14.3 million for the year ended December 31, 2022, compared to $16.8 million for the year ended December 31, 2021. The decrease was largely due to (i) a $715,000 decrease in salaries expense, (ii) a $460,000 decrease in occupancy expense, (iii) a $408,000 decrease in professional fees and services, (iv) a $284,000 decrease in employee benefits expense and (v) a $280,000 decrease in other insurance expense.

The table below provides certain balance sheet information for All Other as of or for the years ended December 31, 2022 and 2021.

Table 9 - All Other Balance Sheet Information
(Dollars in thousands)	December 31, 2022		December 31, 2021		% change from 12/31/21
Loans	$	529	$	2,187	(75.81)	%
Allowance for credit losses	9		86		(89.53)	%
Net loans	520		2,101		(75.25)	%
Total assets	39,042		22,037		77.17	%
Average assets (1)	32,276		32,692		(1.27)	%

(1) Average assets for the years ended December 31, 2022 and 2021, respectively.

Park National Corporation

The table below summarizes Park's net income for the years ended December 31, 2022, 2021, and 2020.

Table 10 - Park Summary Income Statement
(In thousands)	2022		2021		2020
Net interest income	$	347,059	$	329,893	$	327,630
Provision for (recovery of) credit losses (1)	4,557		(11,916)		12,054
Other income	135,935		129,944		125,664
Other expense	297,978		283,518		286,595
Income before income taxes	$	180,459	$	188,235	$	154,645
Income tax expense	32,108		34,290		26,722
Net income	$	148,351	$	153,945	$	127,923

(1) Park adopted ASU 2016-13 effective January 1, 2021. The allowance for credit losses and the related provision for (recovery of) credit losses for all periods subsequent to the date of adoption were calculated utilizing this guidance.

DIVIDENDS ON COMMON SHARES

Cash dividends declared on Park's common shares were $4.66 in 2022, $4.52 in 2021 and $4.28 in 2020. The quarterly cash dividend on Park's common shares was $1.04 per share for the first, second and third quarter of 2022, and $1.54 per share for the fourth quarter of 2022. The fourth quarter of 2022 included a one-time special cash dividend of $0.50 per share. This was the fifth year in a row that Park has declared a special cash dividend ($0.50 in 2022, $0.20 twice in 2021, $0.20 in both 2020 and 2019, and $0.25 in 2018), which began in 2018 when the corporate federal income tax rate was reduced from 35% to 21% and has continued each year that the tax rates have remained at the lower level. The quarterly cash dividend on Park's common shares was $1.23 per share for the first quarter of 2021, $1.03 per share for the second and third quarter of 2021, and $1.23 per share for the fourth quarter of 2021. The first and fourth quarters of 2021 included a one-time special cash dividend of $0.20 per share. The quarterly cash dividend on Park's common shares was $1.22 per share for the first quarter of 2020, and $1.02 per share for the second, third, and fourth quarter of 2020. The first quarter of 2020 included a one-time special cash dividend of

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$0.20 per share. Please see the discussion of limitations on Park's ability to pay dividends in the section captioned "Supervision and Regulation of Park and its Subsidiaries – Limits on Dividends and Other Payments" in "ITEM 1. BUSINESS" of this Annual Report on Form 10-K.

CRITICAL ACCOUNTING POLICIES

The significant accounting policies used in the development and presentation of Park’s consolidated financial statements are listed in "Note 1 - Summary of Significant Accounting Policies" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA."  The accounting and reporting policies of Park conform with U.S. GAAP and general practices within the financial services industry.  The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes.  Actual results could differ from those estimates.

The COVID-19 pandemic and subsequent economic uncertainty have caused significant, unprecedented disruption around the world that has affected daily living and negatively impacted the global economy. Additionally, geopolitical conflict (including the conflict in Ukraine) and inflationary pressures have added uncertainty to the overall economic environment. The effects of the COVID-19 pandemic, geopolitical conflict, and inflationary pressures may meaningfully impact significant estimates such as the allowance for credit losses, goodwill, and pension plan obligations and related expenses.

Allowance for Credit Losses: Park believes the determination of the allowance for credit losses involves a higher degree of judgment and complexity than its other significant accounting policies. The allowance for credit losses is calculated with the objective of maintaining a reserve level believed by management to be sufficient to absorb estimated credit losses over the life of an asset or an off-balance sheet credit exposure. Management’s determination of the adequacy of the allowance for credit losses is based on periodic evaluations of past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. However, this evaluation has subjective components requiring material estimates, including expected default probabilities, the expected loss given default, the amounts and timing of expected future cash flows on individually evaluated loans, and estimated losses based on historical loss experience and forecasted economic conditions. All of these factors may be susceptible to significant change. To the extent that actual results differ from management estimates, additional provisions for credit losses may be required that would adversely impact earnings in future periods.

One of the most significant judgments impacting the ACL estimate is the economic forecast for Ohio unemployment, Ohio GDP, and Ohio HPI. Changes in the economic forecast could significantly affect the estimated credit losses which could potentially lead to materially different allowance levels from one reporting period to the next.

In calculating the ACL, management weighs several different scenarios, including a baseline (most likely) scenario and an adverse scenario. To create hypothetical sensitivity analyses, management calculated a quantitative allowance using a 100% weighting applied to a baseline scenario and a quantitative allowance using a 100% weighting applied to an adverse scenario. The adverse scenario assumes among other things that: (1) the military conflict between Russia and Ukraine worsens significantly and persists longer than anticipated resulting in a disruption in oil supply, exports of goods and food, and increased inflation; (2) supply chain issues erode, with increased shortages of many goods, also boosting inflation; (3) inflation remains elevated, which leads to a recession and increased unemployment; (4) the Federal Reserve Board continues to increase interest rates, at a higher degree than the baseline scenario, to combat high inflation affecting consumer spending as well as causing businesses to have higher costs associated with obtaining capital, therefore slowing down growth; and (5) new cases, hospitalizations and deaths from COVID-19 start to rise significantly again, slowing growth in spending on air travel, retail and hotels. The adverse scenario forecasts Ohio unemployment for the next twelve months to range from 6.4% to 8.5%. Excluding consideration of general reserve adjustments, this sensitivity analysis would result in a hypothetical increase in Park's ACL of $27.5 million as of December 31, 2022 if only the adverse scenario was used. Excluding consideration of general reserve adjustments, a corresponding $27.5 million decrease in Park's ACL would occur in a hypothetical scenario if only the baseline (most likely) scenario was used.

Refer to the “CREDIT METRICS AND PROVISION FOR (RECOVERY OF) CREDIT LOSSES” section within this "ITEM 7: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" for additional discussion.

Goodwill: Management believes that the accounting for goodwill also involves a higher degree of judgment than most other significant accounting policies. U.S. GAAP establishes standards for the impairment assessment of goodwill. Goodwill arising

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from business combinations represents the value attributable to unidentifiable intangible assets in each business acquired. Park’s goodwill, as of December 31, 2022, relates to the value inherent in the banking industry and that value is dependent upon the ability of Park’s national bank subsidiary, PNB, to provide quality, cost-effective banking services in a competitive marketplace. The goodwill value is supported by revenue that is in part driven by the volume of business transacted. A decrease in earnings resulting from a decline in the customer base, the inability to deliver cost-effective services over sustained periods or significant credit problems could lead to impairment of goodwill that could, in turn, adversely impact earnings in future periods.

U.S. GAAP requires an annual evaluation of goodwill for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Park evaluates goodwill for impairment during the second quarter of each year, with financial data as of March 31. Based on the qualitative analysis performed as of April 1, 2022, the Company determined that goodwill for Park's reporting unit, PNB, was not impaired. The fair value of the goodwill, which resides on the books of PNB, is evaluated for potential impairment by reviewing the past and projected operating results for PNB, deposit and loan totals for PNB and banking industry comparable information.

Pension Plan: The determination of pension plan obligations and related expenses requires the use of assumptions to estimate the amount of benefits that employees will earn while working, as well as the present value of those benefits. Annual pension expense is principally based on four components: (1) the value of benefits earned by employees for working during the year (service cost), (2) the increase in the liability due to the passage of time (interest cost), and (3) other gains and losses, reduced by (4) the expected return on plan assets for our pension plan.

Significant assumptions used to measure our annual pension expense include:

•the interest rate used to determine the present value of liabilities (discount rate);

•certain employee-related factors, such as turnover, retirement age and mortality;

•the expected return on assets in our funded pension plan; and

•the rate of salary increases where benefits are based on earnings.

The most significant of these assumptions are the discount rate and the expected return on assets. The discount rate utilized for the December 31, 2022 calculation was 5.32% and the expected return on plan assets was 6.92%. Presented below is the estimated impact on Park's projected benefit obligation ("PBO") and 2023 pension expense assuming changes in the significant assumptions.

Table 11-Pension Sensitivity
	Discount Rate				Expected Return on Plan Assets
(In thousands)	- 25 BPS		+25 BPS		- 50 BPS		+50 BPS
Change in PBO	$	3,270	$	(3,110)	N.A.		N.A.
Change in Pension Expense	70		(70)		$	1,020	$	(1,020)

Our assumptions reflect our historical experience and management’s best judgment regarding future expectations. Due to the significant management judgment involved, our assumptions could have a material impact on the measurement of our pension plan expense and obligation. 

ABOUT OUR BUSINESS

Through our national bank subsidiary, PNB, Park is engaged in a general commercial banking and trust business, primarily in Ohio, Kentucky, North Carolina and South Carolina, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies. Management believes there are a significant number of consumers and businesses that seek long-term relationships with community-based financial institutions of quality and strength.  While not engaging in activities such as foreign lending, nationally syndicated loans or investment banking, Park attempts to meet the needs of our customers for commercial, real estate and consumer loans, and investment, fiduciary and deposit services.

Park’s subsidiaries compete for deposits and loans with other banks, savings associations, credit unions and other types of financial institutions.  At December 31, 2022, Park operated 96 financial service offices (including those of PNB and Scope Leasing, Inc. ("Scope Aircraft Finance")) and a network of 115 automated teller machines in 26 Ohio counties, four North Carolina counties, four South Carolina counties and one Kentucky county. SEPH and Guardian each operated one administrative office, located in Newark, Ohio.

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SOURCE OF FUNDS

Deposits: Park’s major source of funds is deposits from individuals, businesses and local government entities.  These deposits consist of non-interest bearing and interest bearing deposits.

Average total deposits were $8,450 million in 2022, compared to $8,187 million in 2021 and $7,633 million in 2020. The table below provides a summary of deposit balances as of December 31, 2022 and 2021, along with the change over the past year.

 

Table 12 - Year-End Deposits
December 31 (In thousands)	2022		2021		Change
Non-interest bearing checking	$	3,074,276	$	3,066,419	$	7,857
Interest bearing transaction accounts	1,988,106		1,502,876		485,230
Savings	2,616,563		2,622,108		(5,545)
Time deposits	554,445		711,660		(157,215)
Other	1,325		1,465		(140)
Total	$	8,234,715	$	7,904,528	$	330,187
Off balance sheet deposits	195,937		983,053		(787,116)
Total deposits including off balance sheet deposits	$	8,430,652	$	8,887,581	$	(456,929)

During the years ended December 31, 2022 and 2021, Park made the decision to participate in two programs in order to manage growth of the balance sheet, as deposits increased significantly throughout the COVID-19 pandemic. At December 31, 2022 and December 31, 2021, Park had $195.9 million and $983.1 million, respectively, in off balance sheet deposits. Total deposits would have decreased $456.9 million, or 5.1%, compared to December 31, 2021 had the $195.9 million and $983.1 million in deposits remained on the balance sheet.

The average interest rate paid on interest bearing deposits was 0.39% in 2022, compared to 0.12% in 2021 and 0.41% in 2020. The average cost of interest bearing deposits for each quarter of 2022 was 0.81% for the fourth quarter, 0.46% for the third quarter, 0.16% for the second quarter and 0.08% for the first quarter. 

As of December 31, 2022 and 2021, approximately $2.4 billion and $1.7 billion, respectively, of our deposit portfolio was uninsured. The uninsured amounts, those in excess of the $250,000 FDIC insurance limit, are estimates based on the methodologies used for the Corporation's regulatory reporting requirements.

The following table provides a summary of the portion of the Corporation's time deposits, by account, that are in excess of the FDIC insurance limit of $250,000, by remaining time until maturity, as of December 31, 2022:

 

Table 13 - Maturities of Time Deposits in Excess of FDIC Insurance Limit
December 31 (In thousands)	2022
3 months or less	$	3,849
Over 3 months through 6 months	7,898
Over 6 months through 12 months	12,255
Over 12 months	20,027
Total	$	44,029

Short-Term Borrowings: Short-term borrowings consist of securities sold under agreements to repurchase, Federal Home Loan Bank advances, Federal Funds purchased and other borrowings.  These funds are used to manage the Corporation’s liquidity needs and interest rate sensitivity risk.  The average rate paid on short-term borrowings generally moves closely with changes in market interest rates for short-term investments.  The average rate paid on short-term borrowings was 0.67% in 2022, compared to 0.27% in 2021 and 0.40% in 2020. The year-end balance for short-term borrowings was $227 million at December 31, 2022, compared to $239 million at December 31, 2021 and $342 million at December 31, 2020. 

Long-Term Debt: Long-term debt primarily consists of borrowings from the Federal Home Loan Bank. In addition, Park had a term note with another financial institution which was paid off on August 2, 2021. The average balance of long-term debt and the average cost of long-term debt include the subordinated notes discussed in the following section. In 2022, the average

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balance of long-term debt was $188 million, compared to $206 million in 2021 and $216 million in 2020. The average interest rate paid on long-term debt was 4.69% in 2022, compared to 4.32% in 2021 and 3.55% in 2020. Average total debt (long-term and short-term) was $396 million in 2022, compared to $493 million in 2021 and $495 million in 2020. Average total debt decreased by $97.4 million, or 19.8%, in 2022 compared to 2021, and decreased by $2 million, or 0.3%, in 2021 compared to 2020. Average long-term debt was 48% of average total debt in 2022, compared to 42% of average total debt in 2021 and 44% of average total debt in 2020.

Subordinated Notes: Park assumed, with the 2007 acquisition of Vision's parent holding company, $15.5 million of floating rate junior subordinated notes.  The $15.5 million of junior subordinated notes were purchased by Vision Bancshares Trust I ("Trust I") following the issuance of Trust I's $15.0 million of floating rate preferred securities. The interest rate on these junior subordinated notes adjusts every quarter at 148 basis points above the three-month LIBOR interest rate.  The maturity date for the junior subordinated notes is December 30, 2035 and since December 30, 2010, Park has had the right to prepay the junior subordinated notes, without penalty.  These junior subordinated notes qualify as Tier 1 capital under current Federal Reserve Board guidelines.

On August 20, 2020, Park completed the issuance and sale of $175 million aggregate principal amount of its 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030 (the "Subordinated Notes"). The Subordinated Notes initially bear a fixed interest rate of 4.50% per year, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021. Commencing on September 1, 2025, the Subordinated Notes will bear interest at a floating rate per annum equal to the Benchmark rate, which is expected to be Three-Month Term SOFR, plus a spread of 439 basis points for each quarterly interest period during the floating rate period, payable quarterly in arrears; provided, however, that if the Benchmark rate is less than zero, then the Benchmark rate will be deemed to be zero. The Company may, at its option, beginning with the interest payment date of September 1, 2025 and on any interest payment date thereafter, redeem the Subordinated Notes, in whole or in part, from time to time, subject to obtaining the prior approval of the Federal Reserve Board to the extent the approval of the Federal Reserve Board is then required under the capital adequacy rules of the Federal Reserve Board, at a redemption price equal to 100% of the principal amount of the Subordinated Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption. The Subordinated Notes qualify as Tier 2 capital for Park under the Federal Reserve Board's capital adequacy rules.

See "Note 18 - Subordinated Notes" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K for additional information about the Subordinated Notes.

Shareholders' Equity: The ratio of total shareholders' equity to total assets was 10.85% at December 31, 2022, compared to 11.62% at December 31, 2021 and 11.21% at December 31, 2020. The ratio of tangible shareholders’ equity [shareholders' equity ($1,069.2 million) less goodwill ($159.6 million) and other intangible assets ($6.0 million)] to tangible assets [total assets ($9,855.0 million) less goodwill ($159.6 million) and other intangible assets ($6.0 million)] was 9.33% at December 31, 2022, compared to 10.05% at December 31, 2021 and 9.57% at December 31, 2020.

In accordance with U.S. GAAP, Park reflects any unrealized holding gain or loss on AFS debt securities, any unrealized net holding gain or loss on cash flow hedging derivatives and any change in the funded status of Park's Pension Plan, in each case, net of income taxes, as accumulated other comprehensive (loss) income which is part of Park’s shareholders’ equity.  

The unrealized net holding loss, net of income taxes, on AFS debt securities was $95.7 million at year-end 2022, compared to an unrealized net holding gain, net of income taxes, of $21.2 million at year-end 2021 and of $40.7 million at year-end 2020.

The unrealized net holding loss, net of income taxes, on cash flow hedging derivatives was zero at year-end 2022, compared to $206,000 at year-end 2021 and $698,000 at year-end 2020.

In accordance with U.S. GAAP, Park adjusts accumulated other comprehensive (loss) income to recognize the net actuarial gain or loss and prior service cost or credit reflected in the funding status of Park’s pension plan.  See "Note 21 - Benefit Plans" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K for information on the accounting for Park’s pension plan. Pertaining to the funding status of the pension plan, Park recognized net other comprehensive loss of $888,000 in 2022, compared to net other comprehensive income of $28.6 million in 2021, and net other comprehensive loss of $7.7 million in 2020.

The net other comprehensive loss in 2022 was largely due to $1.9 million in prior service cost, as a result of plan amendments, partially offset by a $784,000 net actuarial gain. The $784,000 net actuarial gain was due to lower than expected investment

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returns on pension plan assets which were more than offset by a decrease in benefit obligations due to assumption changes. The net other comprehensive gain in 2021 was due to greater than expected investment returns on pension plan assets as well as a net decrease in the benefit obligation due to assumption changes. The net other comprehensive loss in 2020 was due to changes in actuarial assumptions which were partially offset by increased investment returns on pension plan assets.

At year-end 2022, the balance in accumulated other comprehensive loss pertaining to the pension plan was an unrealized loss of $6.7 million, compared to $5.8 million at December 31, 2021 and $34.4 million at December 31, 2020.

INVESTMENT OF FUNDS

Loans:  Average loans were $6,956 million in 2022, compared to $7,015 million in 2021 and $6,990 million in 2020. The average yield on average loan balances was 4.65% in 2022, compared to 4.53% in 2021 and 4.71% in 2020. Approximately 42% of Park’s loan balances mature or reprice within one year (see Table 38).  The average yield on average loan balances for each quarter of 2022 was 5.00% for the fourth quarter, 4.72% for the third quarter, 4.57% for the second quarter and 4.31% for the first quarter.  

Loan interest income for 2022, 2021, and 2020 included $3.7 million, $8.0 million and $453,000, respectively, related to payments received on certain SEPH nonaccrual loan relationships, some of which are participated with PNB. In addition, loan interest income included $1.8 million, $3.3 million and $4.4 million, respectively, of the accretion of loan purchase accounting adjustments related to the acquisitions of NewDominion and Carolina Alliance. Loan interest income for 2022, 2021 and 2020 included interest and fee income related to PPP loans of $3.1 million, $18.0 million and $16.7 million, respectively. Excluding the impact of the purchase accounting accretion, SEPH income, and PPP income, the average yield on loans was 4.55%, 4.27% and 4.63%, for the years ended December 31, 2022, 2021, and 2020. Excluding the impact of the purchase accounting accretion, SEPH income, and PPP income, the average yield on loans was 4.94% for the fourth quarter of 2022, 4.64% for the third quarter of 2022, 4.36% for the second quarter of 2022, and 4.22% for the first quarter of 2022.

At December 31, 2022, loan balances were $7,142 million, compared to $6,871 million at year-end 2021, an increase of $271 million, or 3.9%. Excluding $4.2 million and $74.4 million of PPP loans at December 31, 2022 and 2021, respectively, loans outstanding at December 31, 2022 were $7,138 million, compared to $6,797 million, an increase of $341 million, or 5.0%. At December 31, 2021, loan balances were $6,871 million, compared to $7,178 million at year-end 2020, a decrease of $307 million, or 4.3%. Excluding $74.4 million and $331.6 million of PPP loans at December 31, 2021 and 2020, respectively, loans outstanding at December 31, 2021 were $6,797 million, a decrease of $49 million, or 0.7%, compared to $6,846 million at December 31, 2020.

The table below reports year-end loan balances by type of loan for the past three years.

Table 14  -  Loans by Type
December 31 (In thousands)	2022		2021		2020
Commercial, financial and agricultural	$	1,300,933	$	1,298,626	$	1,588,989
Construction real estate	325,415		321,786		343,421
Residential real estate	1,796,871		1,738,707		1,813,044
Commercial real estate	1,794,054		1,801,792		1,748,189
Consumer	1,904,981		1,689,679		1,659,704
Leases	19,637		20,532		24,438
Total loans	$	7,141,891	$	6,871,122	$	7,177,785
PPP loans (1)	4,206		74,420		331,571
Total loans less PPP loans	$	7,137,685	$	6,796,702	$	6,846,214

(1) PPP loans are included in Commercial, financial and agricultural above.

On a combined basis, year-end commercial, financial and agricultural loans, construction real estate loans and commercial real estate loans decreased by $1.8 million, or 0.1%, in 2022. The decrease in 2022 was due to a decrease in commercial real estate loans of $7.7 million, which were partially offset by an increase in commercial, financial and agricultural loans of $2.3 million and an increase in construction real estate loans of $3.6 million. On a combined basis, year-end commercial, financial and agricultural loans, construction real estate loans and commercial real estate loans decreased by $258 million, or 7.0%, in 2021. The decrease in 2021 was due to a decrease in commercial, financial and agricultural loans of $290.4 million and a decrease in construction real estate loans of $21.6 million, which were partially offset by an increase in commercial real estate loans of

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$53.6 million. Included within commercial, financial and agricultural loans were $4.2 million, $74.4 million and $331.6 million of PPP loans. Excluding $4.2 million, $74.4 million and $331.6 million of PPP loans at December 31, 2022, 2021 and 2020, respectively, commercial, financial and agricultural loans increased $72.5 million, or 5.9%, in 2022 and decreased $33 million, or 2.6% in 2021.

Consumer loans increased by $215.3 million, or 12.7%, in 2022 and increased $30.0 million, or 1.8%, in 2021. The increase in consumer loans in each of 2022 and 2021 was primarily due to an increase in automobile lending in Ohio.

Residential real estate loans increased by $58.2 million, or 3.3%, in 2022 and decreased by $74.3 million, or 4.1%, in 2021. The increase in 2022 was due to an increase in mortgage loans secured by residential real estate of $41.8 million, an increase in commercial loans secured by residential real estate of $16.4 million, and an increase in home equity loans secured by residential real estate of $1.5 million, partially offset by a decrease in installment loans secured by residential real estate of $1.6 million.   

Leases decreased by $895,000 to $19.6 million in 2022, and decreased $3.9 million to $20.5 million in 2021.

The table below summarizes the distribution of maturities for loan segments as of December 31, 2022:

Table 15 - Loan Maturity Distribution
	One Year or Less (1)		Over One Through Five Years		Over Five Through Fifteen Years		Over  Fifteen  Years		Total
December 31, 2022
(In thousands)
Commercial, financial and agricultural	$	304,912	$	751,751	$	146,815	$	97,455	$	1,300,933
Construction real estate	69,194		66,946		85,953		103,322		325,415
Residential real estate	49,832		180,006		809,857		757,176		1,796,871
Commercial real estate	56,331		355,898		729,526		652,299		1,794,054
Consumer	27,506		777,683		1,079,682		20,110		1,904,981
Leases	3,103		15,596		938		—		19,637
Total loans and leases	$	510,878	$	2,147,880	$	2,852,771	$	1,630,362	$	7,141,891

(1) Nonaccrual loans of $79.7 million are included within the one year or less classification above.

The table below summarizes the composition of the loan portfolio by fixed and adjustable rate as of December 31, 2022 that are contractually due after December 31, 2023:

Table 16 - Amounts Due After One Year
(In thousands)	Fixed		Adjustable		Total
Commercial, financial and agricultural	$	458,364	$	537,657	$	996,021
Construction real estate	53,741		202,480		256,221
Residential real estate	647,283		1,099,756		1,747,039
Commercial real estate	474,398		1,263,325		1,737,723
Consumer	1,873,290		4,185		1,877,475
Leases	16,534		—		16,534
Total loans and leases	$	3,523,610	$	3,107,403	$	6,631,013

Investment Securities: Park’s investment securities portfolio is structured to minimize credit risk, provide liquidity and contribute to earnings. As conditions change over time, Park’s overall interest rate risk, liquidity needs and potential return on the investment portfolio will change.  Management regularly evaluates the securities in the investment portfolio as circumstances evolve.  Circumstances that could result in the sale of a security include: to better manage interest rate risk; to meet liquidity needs; or to improve the overall yield in the investment portfolio.

AFS debt securities are carried on the books at their estimated fair value with the unrealized holding gain or loss, net of income taxes, accounted for as accumulated other comprehensive (loss) income. The debt securities that are classified as AFS are free to be sold in future periods in carrying out Park’s investment strategies.

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Beginning in 2021, Park began investing in the AAA and AA rated tranches of Collateralized Loan Obligations ("CLOs"). CLOs had a fair value as of December 31, 2022 of $516.5 million. Management closely monitors the credit status of these securities. At December 31, 2022 the market value over collateralization was greater than 119% for each CLO. The market value over collateralization is a measure of the overall CLO instrument and does not take into account tranche position, and our AAA or AA rated tranche is supported by subordinate tranches.

Average taxable debt investment securities were $1,475 million in 2022, compared to $1,060 million in 2021 and $858 million in 2020. The average yield on taxable debt investment securities was 2.44% in 2022, compared to 1.84% in 2021 and 2.31% in 2020. Average tax-exempt debt investment securities were $405 million in 2022, compared to $288 million in 2021 and $289 million in 2020. The average tax-equivalent yield on tax-exempt debt investment securities was 3.43% in 2022, compared to 3.65% in 2021 and 3.69% in 2020.

Total debt securities (at amortized cost) were $1,855 million at December 31, 2022, compared to $1,727 million at December 31, 2021 and compared to $1,008 million at December 31, 2020. Management purchased debt securities totaling $317 million in 2022, $954 million in 2021 and $354 million in 2020. Proceeds from repayments, redemptions and maturities of debt securities were $186 million in 2022, compared to $232 million in 2021 and $224 million in 2020.  

There were no sales of AFS debt securities in 2022 or 2021. During 2020, Park sold certain AFS debt securities with a book value of $112.5 million at a gross loss of $64,000, and sold certain AFS debt securities with a book value of $196.4 million at a gross gain of $3.4 million.

For the years ended December 31, 2022, 2021, and 2020, the average tax-equivalent yield on the total investment portfolio was 2.66%, 2.22% and 2.66%, respectively.  The weighted average remaining maturity of the total investment portfolio was 5.0 years at December 31, 2022, 4.8 years at December 31, 2021 and 3.5 years at December 31, 2020. Obligations of U.S. Government sponsored entities and U.S. Government sponsored entities' asset-backed securities were approximately 43.6% of the total investment portfolio at year-end 2022, 47.1% of the total investment portfolio at year-end 2021 and 66.9% of the total investment portfolio at year-end 2020. 

Other investment securities (as shown on Park's Consolidated Balance Sheets) consist of restricted stock investments in the FHLB and the FRB and equity securities which include equity investments in limited partnerships which provide mezzanine funding.  Total other investment securities were $87 million at December 31, 2022, compared to $61 million at December 31, 2021 and $65 million at December 31, 2020. Management purchased equity securities totaling $3.6 million in 2020. There were no equity security purchases in 2022 or 2021. There were no FRB stock purchases in 2022, 2021 or 2020. Proceeds from the redemption/repurchase of FHLB stock were $2.2 million in 2022, compared to $8.7 million in 2021 and $8.0 million in 2020.

"Gain on equity securities, net" on Park's Consolidated Statements of Income were $3.0 million, $5.0 million and $2.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. These gains on equity securities were made up of gains (losses) on equity investments carried at fair value as well as gains on equity investments carried at NAV.

For the years ended December 31, 2022, 2021 and 2020, $601,000, $552,000 and $(239,000), respectively, of gains (losses) on equity investments carried at fair value were recorded within "Gain on equity securities, net" on Park's Consolidated Statements of Income.

For the years ended December 31, 2022, 2021 and 2020, $2.4 million, $4.5 million and $2.4 million, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net" on Park's Consolidated Statements of Income.

The average maturity of the investment portfolio would lengthen if long-term interest rates were to increase as principal repayments from mortgage-backed securities and CMOs would decrease and callable securities would price to their maturity dates.  At year-end 2022, management estimated that the average maturity of the investment portfolio would lengthen to 5.1 years with a 100 basis point increase in long-term interest rates and would lengthen to 5.7 years with a 200 basis point increase in long-term interest rates. Likewise, the average maturity of the investment portfolio would shorten if long-term interest rates were to decrease as the principal repayments from mortgage-backed securities and CMOs would increase and callable securities would price to their call dates. At year-end 2022, management estimated that the average maturity of the investment portfolio would decrease to 4.6 years with a 100 basis point decrease in long-term interest rates and to 4.4 years with a 200 basis point decrease in long-term interest rates.

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The table below sets forth the carrying value of investment securities, as well as the percentage held within each category at year-end 2022, 2021 and 2020:

Table 17  -  Investment Securities
December 31 (In thousands)	2022			2021			2020
Obligations of U.S. Government sponsored entities	$	37,213		$	—		$	—
Obligations of states and political subdivisions	406,711			389,591			305,218
U.S. Government sponsored entities' asset-backed securities	756,761			854,463			752,109
Collateralized loan obligations	516,539			498,674			—
Corporate debt securities	16,472			11,412			2,014
FHLB stock	11,197			13,413			22,090
FRB stock	14,653			14,653			14,653
Equities	61,241			33,202			28,722
Total	$	1,820,787		$	1,815,408		$	1,124,806
Investments by category as a percentage of total investment securities
Obligations of U.S. Government sponsored entities	2.0		%	—		%	—		%
Obligations of states and political subdivisions	22.3		%	21.5		%	27.1		%
U.S. Government sponsored entities' asset-backed securities	41.6		%	47.1		%	66.9		%
Collateralized loan obligations	28.4		%	27.5		%	—		%
Corporate debt securities	0.9		%	0.6		%	0.2		%
FHLB stock	0.6		%	0.7		%	2.0		%
FRB stock	0.8		%	0.8		%	1.2		%
Equities	3.4		%	1.8		%	2.6		%
Total	100.0		%	100.0		%	100.0		%

The carrying value of investments in debt securities at December 31, 2022, is shown in the following table by contractual maturity, except for asset-backed securities and collateralized loan obligations, which are shown as a single total, due to the unpredictability of the timing in principal repayments. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Table 18 - Investment Maturity Distribution
	Over One Through Five Years		Over Five Through Ten Years		Over  Ten  Years		Total
December 31, 2022
(In thousands)
Corporate debt securities	$	—	$	16,472	$	—	$	16,472
Obligations of U.S. Government sponsored entities	37,213		—		—		37,213
Obligations of states and political subdivisions	2,278		271,658		132,775		406,711
Total	$	39,491	$	288,130	$	132,775	$	460,396
U.S. Government sponsored entities' asset-backed securities							$	756,761
Collateralized loan obligations							516,539

ANALYSIS OF EARNINGS

Net Interest Income: Park’s principal source of earnings is net interest income, the difference between total interest income and total interest expense.  Net interest income results from average balances outstanding for interest earning assets and interest bearing liabilities in conjunction with the average rates earned and paid on them.  (See the table below for three years of history on the average balances of the balance sheet categories as well as the average rates earned on interest earning assets and the average rates paid on interest bearing liabilities.)

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Table 19 - Distribution of Assets, Liabilities and Shareholders' Equity
December 31,	2022						2021						2020
(In thousands)	Daily Average		Interest		Average Rate		Daily Average		Interest		Average Rate		Daily Average		Interest		Average Rate
ASSETS
Loans (1)(2)	$	6,955,674	$	323,734	4.65	%	$	7,014,517	$	317,912	4.53	%	$	6,990,458	$	329,350	4.71	%
Taxable investment securities	1,474,659		36,047		2.44	%	1,059,809		19,458		1.84	%	857,752		19,818		2.31	%
Tax-exempt investment securities (3)	404,788		13,878		3.43	%	288,300		10,514		3.65	%	289,366		10,679		3.69	%
Money market instruments	392,256		8,129		2.07	%	665,714		880		0.13	%	280,952		739		0.26	%
Total interest earning assets	9,227,377		381,788		4.14	%	9,028,340		348,764		3.86	%	8,418,528		360,586		4.28	%
Non-interest earning assets:
Allowance for credit losses	(81,736)						(87,233)						(71,221)
Cash and due from banks	157,295						139,678						127,214
Premises and equipment, net	86,322						89,758						81,357
Other assets	654,950						676,915						685,755
TOTAL	$	10,044,208					$	9,847,458					$	9,241,633
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing liabilities:
Transaction accounts	$	1,932,752	$	6,880	0.36	%	$	1,550,138	$	357	0.02	%	$	1,687,417	$	3,582	0.21	%
Savings deposits	2,771,016		10,766		0.39	%	2,924,504		1,238		0.04	%	2,556,475		5,560		0.22	%
Time deposits	653,041		3,314		0.51	%	774,825		4,711		0.61	%	994,255		12,186		1.23	%
Total interest bearing deposits	5,356,809		20,960		0.39	%	5,249,467		6,306		0.12	%	5,238,147		21,328		0.41	%
Federal funds purchased	68		1		0.95	%	68		—		0.10	%	1,872		2		0.12	%
Repurchase agreements	199,813		1,134		0.57	%	261,967		95		0.04	%	250,265		472		0.19	%
Short-term borrowings	7,195		260		3.62	%	25,025		672		2.69	%	26,750		636		2.38	%
Long-term debt (4)	188,439		8,833		4.69	%	205,883		8,887		4.32	%	215,645		7,652		3.55	%
Total interest bearing liabilities	5,752,324		31,188		0.54	%	5,742,410		15,960		0.28	%	5,732,679		30,090		0.52	%

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Table 19 - Distribution of Assets, Liabilities and Shareholders' Equity-continued
December 31,	2022						2021						2020
(In thousands)	Daily Average		Interest		Average Rate		Daily Average		Interest		Average Rate		Daily Average		Interest		Average Rate
Non-interest bearing liabilities:
Demand deposits	3,093,019						2,937,035						2,394,717
Other	121,986						102,553						105,135
Total non-interest bearing liabilities	3,215,005						3,039,588						2,499,852
Shareholders' equity	1,076,879						1,065,460						1,009,102
TOTAL	$	10,044,208					$	9,847,458					$	9,241,633
Tax equivalent net interest income			$	350,600					$	332,804					$	330,496
Net interest spread					3.60	%					3.58	%					3.76	%
Net yield on interest earning assets (net interest margin)					3.80	%					3.69	%					3.93	%

(1)Loan income includes net loan-related fee (expense) income, purchase accounting accretion and origination expense in the aggregate amount of $(5.5) million in 2022, $11.1 million in 2021 and $12.9 million in 2020.  Loan income also includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate in 2022, 2021 and 2020. The taxable equivalent adjustments were $627,000 in 2022, $704,000 in 2021 and $623,000 in 2020.

(2)For the purpose of the computation for loans, nonaccrual loans are included in the daily average loans outstanding.

(3)Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate in 2022, 2021 and 2020. The taxable equivalent adjustments were $2.9 million in 2022, $2.2 million in 2021 and $2.2 million in 2020.

(4)Includes subordinated notes.

Average interest earning assets for 2022 increased by $199 million, or 2.2% to $9,227 million, compared to $9,028 million for 2021. Average interest earning assets for 2021 increased by $610 million, or 7.2%, to $9,028 million, compared to $8,419 million for 2020. The average yield on interest earning assets increased by 28 basis points to 4.14% for 2022, compared to 3.86% for 2021, and was 4.28% for 2020.

Interest income for 2022, 2021, and 2020 included $3.7 million, $8.0 million and $453,000, respectively, related to payments received on certain SEPH nonaccrual loan relationships, some of which are participated with PNB as well as $1.8 million, $3.3 million and $4.4 million of purchase accounting accretion for 2022, 2021 and 2020, respectively. Interest income for 2022, 2021 and 2020 included $3.1 million, $18.0 million and $16.7 million, respectively, of income related to PPP loans. Excluding the impact of the purchase accounting accretion, SEPH income, and PPP income, the average yield on loans was 4.55%, 4.27% and 4.63%, for the years ended December 31, 2022, 2021 and 2020, respectively, the average yield on earning assets was 4.06%, 3.64% and 4.20%, for the years ended December 31, 2022, 2021 and 2020, respectively, and the net interest margin was 3.72%, 3.46% and 3.82%, for the years ended December 31, 2022, 2021 and 2020, respectively.

Average interest bearing liabilities for 2022 increased by $10 million, or 0.2%, to $5,752 million, compared to $5,742 million for 2021. Average interest bearing liabilities for 2021 increased by $10 million, or 0.2%, to $5,742 million, compared to $5,733 million for 2020. The average cost of interest bearing liabilities increased by 26 basis points to 0.54% for 2022, compared to 0.28% for 2021, and was 0.52% for 2020.

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The table below shows for the years ended December 31, 2022, 2021, and 2020, the average balance and tax equivalent yield by type of loan.

Table 20 - Average Loans and Tax Equivalent Yield
Year Ended December 31,	2022				2021				2020
(Dollars in thousands)	Average balance		Tax equivalent  yield		Average balance		Tax equivalent  yield		Average balance		Tax equivalent  yield
Home equity	$	163,388	5.03	%	$	168,708	3.71	%	$	205,492	4.04	%
Installment loans	1,818,778		4.74	%	1,688,966		4.80	%	1,548,059		5.17	%
Real estate loans	1,145,989		3.81	%	1,176,885		3.73	%	1,268,181		4.11	%
Commercial loans (1)	3,823,481		4.85	%	3,977,165		4.69	%	3,964,853		4.75	%
Other	4,038		8.47	%	2,793		12.07	%	3,873		10.71	%
Total loans and leases before allowance for credit losses	$	6,955,674	4.65	%	$	7,014,517	4.53	%	$	6,990,458	4.71	%

(1) Commercial loan interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate in 2022, 2021 and 2020. The taxable equivalent adjustments were $627,000 in 2022, $704,000 in 2021 and $623,000 in 2020.

Loan interest income for 2022, 2021, and 2020 included $3.7 million, $8.0 million and $453,000, respectively, related to payments received on certain SEPH nonaccrual loan relationships, some of which are participated with PNB, as well as $1.8 million, $3.3 million and $4.4 million of purchase accounting accretion for 2022, 2021 and 2020, respectively. Interest income for 2022, 2021 and 2020 included $3.1 million, $18.0 million and $16.7 million, respectively, of income related to PPP loans. Below is a summary of the impact of these items on the tax equivalent yield of loans.

•The amount of interest related to SEPH nonaccrual loan relationships and purchase accounting accretion included in home equity loan interest income for 2022, 2021 and 2020 was $173,000, $479,000 and $395,000, respectively. Excluding the impact of these items, the average tax equivalent yield on home equity loans was 4.93%, 3.41% and 3.83%, respectively.

•The amount of interest related to SEPH nonaccrual loan relationships and purchase accounting accretion included in real estate loan interest income for 2022, 2021 and 2020 was $170,000, $243,000 and $391,000, respectively. Excluding the impact of these items, the average tax equivalent yield on real estate loans was 3.80%, 3.71% and 4.08%, respectively.

•The amount of interest related to PPP income, SEPH nonaccrual loan relationships and purchase accounting accretion included in commercial loan interest income for 2022, 2021, and 2020 was $8.2 million, $28.5 million and $19.9 million, respectively. Excluding the impact of these items, the average tax equivalent yield on commercial loans was 4.66%, 4.24% and 4.66%, for 2022, 2021, and 2020, respectively.

•Excluding the impact of interest related to PPP income, SEPH nonaccrual loan relationships and purchase accounting accretion, the average tax equivalent yield on total loans and leases was 4.55%, 4.27% and 4.63%, for 2022, 2021, and 2020, respectively.

The table below shows for the years ended December 31, 2022, 2021, and 2020, the average balance and cost of funds by type of deposit.

Table 21 - Average Deposits and Cost of Funds
Year Ended December 31,	2022				2021				2020
(Dollars in thousands)	Average balance		Cost of funds		Average balance		Cost of funds		Average balance		Cost of funds
Transaction accounts	$	1,932,752	0.36	%	$	1,550,138	0.02	%	$	1,687,417	0.21	%
Savings deposits and clubs	2,771,016		0.39	%	2,924,504		0.04	%	2,556,475		0.22	%
Time deposits (1)	653,041		0.51	%	774,825		0.61	%	994,255		1.23	%
Total interest bearing deposits (1)	$	5,356,809	0.39	%	$	5,249,467	0.12	%	$	5,238,147	0.41	%

(1) Time deposit interest expense for 2022, 2021 and 2020 benefited from $7,000, $46,000 and $226,000, respectively, of purchase accounting accretion related to the acquisitions of NewDominion and Carolina Alliance. Excluding the impact of this accretion, the average cost of funds on time deposits for 2022, 2021 and 2020 was 0.51%, 0.61% and 1.25%, respectively, and the average cost of funds on total interest bearing deposits for 2022, 2021 and 2020 was 0.39%, 0.12% and 0.41%, respectively.

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The following table displays (for each quarter of 2022) the average balance of interest earning assets, the net interest income and the tax equivalent net interest income and net interest margin.

Table 22  - Quarterly Net Interest Margin
(In thousands)	Average Interest Earning Assets		Net Interest Income (1)		Tax Equivalent Net Interest Income (1)		Tax Equivalent Net Interest Margin (1)
First Quarter	$	8,959,109	$	77,686	$	78,505	3.55	%
Second Quarter	8,857,089		83,939		84,811		3.84	%
Third Quarter	9,565,710		90,828		91,760		3.81	%
Fourth Quarter	9,517,746		94,606		95,524		3.98	%
2022	$	9,227,377	$	347,059	$	350,600	3.80	%

 (1) Net interest income for the first, second, third and fourth quarters of 2022 included $42,000, $2.3 million, $649,000 and $707,000, respectively, related to payments received on certain SEPH nonaccrual loan relationships, some of which are participated with PNB. Net interest income for the first, second, third, and fourth quarters of 2022 included $480,000, $547,000, $495,000 and $258,000, respectively, of purchase accounting accretion related to the acquisitions of NewDominion and Carolina Alliance. Net interest income for the first, second, third, and fourth quarters of 2022 included $1.6 million, $1.0 million, $361,000 and $78,000, respectively, related to PPP loans. Excluding the impact of these loan payments and accretion, the tax equivalent net interest margin was 3.48%, 3.68%, 3.75%, and 3.94%, for the first, second, third, and fourth quarters of 2022, respectively, and 3.72% for the year ended December 31, 2022.

In the following table, the change in tax equivalent interest due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.

 

Table 23 - Volume/Rate Variance Analysis
	Change from 2021 to 2022						Change from 2020 to 2021
(In thousands)	Volume		Rate		Total		Volume		Rate		Total
Increase (decrease) in:
Interest income:
Total loans	$	(2,666)	$	8,488	$	5,822	$	1,134	$	(12,572)	$	(11,438)
Taxable investments	7,617		8,972		16,589		4,668		(5,028)		(360)
Tax-exempt investments	4,248		(884)		3,364		(39)		(126)		(165)
Money market instruments	(361)		7,610		7,249		1,014		(873)		141
Total interest income	8,838		24,186		33,024		6,777		(18,599)		(11,822)
Interest expense:
Transaction accounts	$	88	$	6,435	$	6,523	$	(291)	$	(2,934)	$	(3,225)
Savings accounts	(65)		9,593		9,528		800		(5,122)		(4,322)
Time deposits	(741)		(656)		(1,397)		(2,690)		(4,785)		(7,475)
Short-term borrowings	(214)		842		628		33		(376)		(343)
Long-term debt	(753)		699		(54)		(346)		1,581		1,235
Total interest expense	(1,685)		16,913		15,228		(2,494)		(11,636)		(14,130)
Net variance	$	10,523	$	7,273	$	17,796	$	9,271	$	(6,963)	$	2,308

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Other Income:  Other income was $135.9 million for 2022, compared to $129.9 million for 2021 and $125.7 million for 2020.

The following table displays total other income for Park in 2022, 2021 and 2020.

Table 24 - Other Income
Year Ended December 31,
(In thousands)	2022		2021		2020
Income from fiduciary activities	$	34,091	$	34,449	$	28,873
Service charges on deposit accounts	10,091		8,832		8,445
Other service income	15,295		29,812		37,611
Debit card fee income	26,046		25,865		22,160
Bank owned life insurance income	6,100		4,897		4,789
ATM fees	2,273		2,379		1,773
Gain (loss) on the sale of OREO, net	5,611		(4)		1,207
OREO valuation markup	12,039		64		105
Net gain on the sale of debt securities	—		—		3,286
Gain on equity securities, net	2,955		5,011		2,182
Other components of net periodic benefit income	12,108		8,152		7,952
Miscellaneous	9,326		10,487		7,281
Total other income	$	135,935	$	129,944	$	125,664

Income from fiduciary activities decreased by $358,000, or 1.0%, to $34.1 million in 2022, compared to $34.4 million in 2021. The $34.4 million was an increase of $5.6 million, or 19.3%, compared to $28.9 million in 2020. The majority of fiduciary fees are calculated on a lag, based on the market value of the assets under management. The average market value of the trust assets managed by PNB was $7.22 billion in 2022, compared to $7.45 billion in 2021, compared to $6.17 billion in 2020. The decrease in fiduciary fee income in 2022 was primarily related to the decline in equity market values during the year. The increase in fiduciary fee income in 2021 was primarily due to improvements in equity market values and also due to an increase in the total account balances serviced by PNB’s Trust Department. 

Service charges on deposit accounts increased $1.3 million, or 14.3%, to $10.1 million in 2022, compared to $8.8 million in 2021 and increased by $387,000, or 4.6%, in 2021, compared to $8.4 million in 2020. The increases in 2022 and 2021 were related to increases in non-sufficient funds (NSF) fee income and service charges on demand deposit accounts. Total NSF charges increased $851,000, or 16.2%, from $5.2 million in 2021 to $6.1 million in 2022, and increased by $245,000, or 4.9%, in 2021, compared to $5.0 million in 2020. Service charges on demand deposit accounts increased $365,000, or 11.9%, to $3.4 million in 2022, compared to $3.1 million in 2021 and increased by $154,000, or 5.3%, compared to $2.9 million in 2020.

Other service income decreased $14.5 million, or 48.7%, to $15.3 million in 2022, compared to $29.8 million in 2021, and decreased $7.8 million, or 20.7%, in 2021 compared to $37.6 million in 2020. The decrease in 2022 compared to 2021 was primarily related to a decrease in other service income related to mortgage loan originations, including a $13.8 million decrease in fee income related to a $395.2 million decrease in mortgage loan originations to be sold in the secondary market and a $2.6 million decrease in mortgage servicing rights income, partially offset by a $1.4 million increase in income related to investor rate locks and loans held for sale. The decrease in 2021 compared to 2020 was primarily related to a decrease in other service income related to mortgage loan originations, including a $6.4 million decrease in fee income related to a $457.3 million decrease in mortgage loan originations to be sold in the secondary market and a $3.7 million decrease in income related to investor rate locks and loans held for sale, partially offset by a $1.2 million increase in mortgage investor fees and a $927,000 increase in mortgage servicing rights income.

Debit card fee income,which is generated from debit card transactions, increased $181,000, or 0.7%, to $26.0 million in 2022, compared to $25.9 million in 2021, and increased by $3.7 million, or 16.7%, in 2021, compared to $22.2 million in 2020. The increase in 2021 was attributable to continued increases in the volume of debit card transactions, which increased 10.0% in 2021 from 2020, and increases in total sale dollars of debit card transactions, which increased 17.1% in 2021 from 2020. Park continues to focus on deposit offerings that provide incentives for our customers to use their debit card.

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Bank owned life insurance income increased $1.2 million, or 24.6%, to $6.1 million in 2022, compared to $4.9 million in 2021, and increased by $108,000, or 2.3%, in 2021, compared to $4.8 million in 2020. The increase in 2022 related to an increase in death benefit income of $1.4 million recognized in 2022, compared to $440,000 in 2021, and $65,000 in 2020.

Gain (loss) on the sale of OREO, net, reflected a gain of $5.6 million in 2022, an increase of $5.6 million, compared to net loss of $4,000 in 2021, and the net loss of $4,000 in 2021 reflected a decrease of $1.2 million, compared to a net gain of $1.2 million in 2020. A $5.6 million gain on the sale of OREO, net, was recognized during 2022 and related to former Vision Bank relationships. A $1.2 million gain on the sale of two OREO properties was recognized during 2020, one of which was participated to PNB from SEPH.

OREO valuation markup income increased by $12.0 million to $12.0 million in 2022, compared to $64,000 in 2021, and decreased by $41,000 in 2021, compared to $105,000 in 2020. The $12.0 million OREO valuation markup during 2022 related to the foreclosure of a property collateralizing a former Vision Bank relationship. This property was subsequently sold during 2022.

During 2020, Park sold certain AFS debt securities with a book value of $112.5 million at a gross loss of $64,000, and sold certain AFS debt securities with a book value of $196.4 million at a gross gain of $3.4 million. No debt securities were sold in 2022 or 2021.

During the years ended December 31, 2022, 2021 and 2020, $601,000, $552,000 and $(239,000), respectively, of gains (losses) on equity investments carried at fair value were recorded within "Gain on equity securities, net" on Park's Consolidated Statements of Income. For the years ended December 31, 2022, 2021 and 2020, $2.4 million, $4.5 million and $2.4 million, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net" on Park's Consolidated Statements of Income.

Other components of net periodic pension benefit income increased by $3.9 million, or 48.5%, to $12.1 million in 2022, compared to $8.2 million in 2021, and increased $200,000, or 2.5%, to $8.2 million in 2021, compared to $8.0 million in 2020. The increases in 2022 and 2021 were largely due to an increase in the expected return on plan assets as a result of the increased value of plan assets as well as a decrease in the amortization of unrecognized net actuarial losses in 2022.

Miscellaneous income decreased by $1.2 million, or 11.1%, to $9.3 million in 2022, compared to $10.5 million in 2021, and increased $3.2 million, or 44.0%, to $10.5 million in 2021, compared to $7.3 million in 2020. The decrease in 2022 was primarily the result of decreases in brokerage income, operating lease rental income, wire transfer fees, and an increase in OREO devaluations, partially offset by gains on the sale of loans and assets, a decrease in repossessed asset devaluations, and an increase in fees earned on off-balance sheet deposit accounts. The increase in 2021 was primarily related to refunds of a consumer insurance product, an increase in income from printed check sales and an increase in gain on the sale of assets.

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Other Expense: Other expense was $298.0 million in 2022, compared to $283.5 million in 2021 and $286.6 million in 2020. Other expense increased by $14.5 million, or 5.1%, in 2022 and decreased by $3.1 million, or 1.1% in 2021. The following table displays total other expense for Park for 2022, 2021 and 2020.

Table 25 - Other Expense
Year Ended December 31,
(In thousands)	2022		2021		2020
Salaries	$	133,299	$	125,585	$	128,040
Employee benefits	40,490		41,603		37,115
Occupancy expense	13,866		13,039		13,802
Furniture and equipment expense	11,901		10,887		18,805
Data processing fees	32,627		30,539		11,659
Professional fees and services	30,837		27,450		31,303
Marketing	5,335		6,073		5,828
Insurance	5,413		5,917		6,423
Communication	3,891		3,539		4,084
State tax expense	4,585		4,255		3,991
Amortization of intangible assets	1,487		1,798		2,263
FHLB prepayment penalty	—		—		10,529
Foundation contributions	4,000		4,000		3,000
Miscellaneous	10,247		8,833		9,753
Total other expense	$	297,978	$	283,518	$	286,595
Full-time equivalent employees	1,725		1,685		1,755

Salaries expense increased by $7.7 million, or 6.1%, to $133.3 million in 2022, compared to $125.6 million in 2021, and decreased by $2.5 million, or 1.9%, in 2021 compared to $128.0 million in 2020. The increase in 2022 was due to an increase in salaries expense of $7.6 million, a $297,000 increase in expense related to the vacation accrual, and a $565,000 reduction in deferred salary costs, partially offset by a $466,000 decrease in share-based compensation expenses related to PBRSU and TBRSU awards granted under the 2017 Employee LTIP. The decrease in 2021 was due to a $4.2 million decrease in salary expense, primarily related to a $3.2 million decrease in severance and restructuring related expense, a $1.1 million decrease in expense related to the vacation accrual and a $1.0 million decrease in additional compensation expense, partially offset by a $3.3 million increase in incentive compensation expense and a $347,000 increase in share-based compensation expenses related to PBRSU awards granted under the Park 2013 Incentive Plan ("the 2013 Incentive Plan") (prior to 2017) and both PBRSU and TBRSU awards granted under the 2017 Employee LTIP.

Park had 1,725 full-time equivalent employees at year-end 2022, compared to 1,685 full-time equivalent employees at year-end 2021 and 1,755 full-time equivalent employees at year-end 2020.

Employee benefits expense decreased $1.1 million, or 2.7%, to $40.5 million in 2022, compared to $41.6 million in 2021, and increased $4.5 million, or 12.1%, in 2021 compared to $37.1 million in 2020. The decrease in 2022 was due to a $2.2 million decrease in group insurance costs, partially offset by an $826,000 increase in payroll tax expense and a $358,000 increase in the KSOP match. The increase in 2021 was due to a $2.7 million increase in group insurance costs, a $1.6 million increase in pension plan expense and a $693,000 increase in payroll tax expense, partially offset by a $496,000 decrease in miscellaneous employee benefits.

Occupancy expense increased $827,000, or 6.3%, to $13.9 million in 2022, compared to $13.0 million in 2021, and decreased by $763,000, or 5.5%, in 2021 compared to $13.8 million in 2020. The $827,000 increase in 2022 was primarily the result of a $760,000 write-down in the right-of-use lease asset related to an office relocation and an increase in utilities expense, partially offset by a decrease in maintenance and repair expenses and a decline in real estate tax expense. The $763,000 decrease in 2021 was primarily the result of decreased lease expense, which was mainly the result of the closure of some leased branches in 2020.

Furniture and equipment expense increased $1.0 million, or 9.3%, to $11.9 million in 2022, compared to $10.9 million in 2021, and decreased $7.9 million, or 42.1%, in 2021 compared to $18.8 million in 2020. The increase in 2022 was primarily related to

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increased depreciation expense and increased expenses related to repairs and maintenance on equipment. The decrease in 2021 was primarily related to a change in the classification under which software and related maintenance costs are expensed, which are now classified under data processing fees, partially offset by increases in depreciation of furniture and equipment.

Data processing fees increased by $2.1 million, or 6.8%, to $32.6 million in 2022, compared to $30.5 million in 2021, and increased $18.9 million, or 161.9%, in 2021 compared to $11.7 million in 2020. The increase in 2022 primarily related to an increase in software expenses of $2.4 million, partially offset by a decrease in debit card processing costs of $277,000. The increase in 2021 was related to increased other data processing and software costs, partially due to the previously mentioned change in classification from furniture and equipment expense and a change in expensing software costs from other fees within professional fees and services to data processing fees. The increase was also impacted by changes in debit card processing costs, which increased $832,000. Overall data processing and software costs across all line items, excluding debit card processing costs, increased $2.3 million in 2021.

Professional fees and services increased $3.4 million, or 12.3%, to $30.8 million, compared to $27.5 million for 2021, and decreased by $3.9 million, or 12.3%, in 2021 compared to $31.3 million in 2020. This subcategory of total other expense includes legal fees, management consulting fees, directors' fees, audit fees, regulatory examination fees and memberships in industry associations. The $3.4 million increase in 2022 related to an increase in management consulting fees, as well as increases in recruiting fees, vendor single interest insurance costs and fees related to off balance sheet deposit accounts. The decrease in professional fees and services expense in 2021 was primarily due to decreases in other fees (due to the change in expensing software costs under data processing fees), credit monitoring costs and title and appraisal costs, partially offset an increase in legal fees.

Marketing expense decreased by $738,000, or 12.2%, to $5.3 million, compared to $6.1 million in 2021, and increased by $245,000, or 4.2%, in 2021 compared to $5.8 million in 2020. The $738,000 decrease in 2022 was primarily due to a decline in advertising expense. The $245,000 increase in 2021 primarily related to increased community donations expense, partially offset by a decline in advertising expense.

Insurance expense decreased by $504,000, or 8.5%, to $5.4 million, compared to $5.9 million in 2021, and decreased by $506,000, or 7.9%, in 2021 compared to $6.4 million in 2020. The decreases in 2022 and 2021 related to a decrease in FDIC assessments.

On February 18, 2020, Park prepaid $50 million of FHLB advances, incurring a $1.8 million prepayment penalty. These advances had an average interest rate of 3.01% and maturity dates of March 14, 2022 and September 15, 2022. On December 3, 2020, Park prepaid $100 million of FHLB advances, incurring an $8.7 million prepayment penalty. These advances had an interest rate of 3.40% and a maturity date of December 1, 2023. There were no FHLB prepayment penalties paid in 2021 or 2022.

The subcategory "Miscellaneous" other expense includes expenses for supplies, travel, and other miscellaneous expense. The subcategory Miscellaneous other expense increased by $1.4 million, or 16.0%, to $10.2 million in 2022, compared to $8.8 million in 2021. The $8.8 million in 2021 was a decrease of $920,000, or 9.4%, compared to $9.8 million in 2020. The increase in 2022 related to increases in training and travel related expenses and an increase in the provision for unfunded credit losses, partially offset by a decrease in operating lease depreciation. The decrease in 2021 was primarily related to a decrease in supply expense, operating lease depreciation, OREO expense and training and travel related expenses, partially offset by an increase in non-loan related losses.

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Efficiency Ratio: The following table details the calculation of the efficiency ratio for the years ended December 31, 2022, 2021, and 2020.

Table 26- Efficiency ratio(1)	Year Ended December 31,
(In thousands)	2022			2021			2020
Net interest income	$	347,059		$	329,893		$	327,630
Add: Tax equivalent adjustment (2)	3,541			2,911			2,866
Net interest income - Fully tax equivalent	$	350,600		$	332,804		$	330,496
Total other income	$	135,935		$	129,944		$	125,664
Total other expense	$	297,978		$	283,518		$	286,595
Efficiency ratio	61.24		%	61.27		%	62.83		%
(1) Calculated by dividing "Total other expense" by the sum of fully-tax equivalent net interest income and "Total other income."
(2) The tax equivalent adjustment to net interest income was calculated assuming a 21% corporate federal income tax rate for 2022, 2021 and 2020.

Items Impacting Comparability: From time to time, revenue, expenses, and/or taxes are impacted by items judged by management of Park to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by management of Park at that time to be infrequent or short-term in nature. Most often, these items impacting comparability of period results relate to merger and acquisition activities and revenue and expenses related to former Vision Bank loan relationships. In other cases, they may result from management's decisions associated with significant corporate actions outside of the ordinary course of business.

The following table details those items which management believes impacts the comparability of current and prior period amounts.

Table 27 - Items impacting comparability	Year Ended December 31,
(In thousands, except share and per share data)	2022		2021		2020		Affected Line Item
Net interest income	$	347,059	$	329,893	$	327,630
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions	1,773		3,257		4,443		Interest and fees on loans
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions	7		46		226		Interest on deposits
less interest income on former Vision Bank relationships	3,703		7,985		453		Interest and fees on loans
Net interest income - adjusted	$	341,576	$	318,605	$	322,508
Provision for (recovery of) credit losses	$	4,557	$	(11,916)	$	12,054
less recoveries on former Vision Bank relationships	(1,319)		(3,169)		(21,982)		Provision for (recovery of) credit losses
Provision for (recovery of) credit losses - adjusted	$	5,876	$	(8,747)	$	34,036
Total other income	$	135,935	$	129,944	$	125,664
less net gain on sale of former Vision Bank OREO properties	5,607		—		1,208		Gain (loss) on the sale of OREO, net
less other service income related to former Vision Bank relationships	788		525		590		Other service income
less Vision related OREO valuation markup	12,009		—		—		OREO valuation markup
less net gain (loss) on the sale of debt securities in the ordinary course of business	—		—		3,286		Net gain on the sale of debt securities
Total other income - adjusted	$	117,531	$	129,419	$	120,580

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Table 27 - Items impacting comparability (continued)	Year Ended December 31,
(In thousands, except share and per share data)	2022			2021			2020			Affected Line Item
Total other expense	$	297,978		$	283,518		$	286,595
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions	1,487			1,798			2,263			Amortization of intangible assets
less Foundation contributions	4,000			4,000			3,000			Foundation contributions
less management and consulting expenses related to collection of payments on former Vision Bank loan relationships	1,761			1,361			2,383			Professional fees and services
less severance and restructuring charges	—			—			3,596			Salaries
less severance and restructuring charges	—			—			847			Employee benefits
less FHLB prepayment penalty	—			—			10,529			FHLB prepayment penalty
Total other expense - adjusted	$	290,730		$	276,359		$	263,977
Tax effect of adjustments to net income identified above (9)	$	(3,771)		$	(1,643)		$	(2,010)
Net income - reported	$	148,351		$	153,945		$	127,923
Net income - adjusted (8)	$	134,164		$	147,765		$	120,363
Diluted earnings per common share	$	9.06		$	9.37		$	7.80
Diluted earnings per common share, adjusted (8)	$	8.20		$	9.00		$	7.34
Return on average assets (1)(2)	1.48		%	1.56		%	1.38		%
Return on average assets, adjusted (1)(2)(8)	1.34		%	1.50		%	1.30		%
Return on average tangible assets (1)(2)(5)	1.50		%	1.59		%	1.41		%
Return on average tangible assets, adjusted (1)(2)(5)(8)	1.36		%	1.53		%	1.33		%
Return on average shareholders' equity (1)(2)	13.78		%	14.45		%	12.68		%
Return on average shareholders' equity, adjusted (1)(2)(8)	12.46		%	13.87		%	11.93		%
Return on average tangible equity (1)(2)(3)	16.29		%	17.15		%	15.25		%
Return on average tangible equity, adjusted (1)(2)(3)(8)	14.73		%	16.46		%	14.34		%
Efficiency ratio (7)	61.24		%	61.27		%	62.83		%
Efficiency ratio, adjusted (7)(8)	62.84		%	61.29		%	59.19		%
Net interest margin (7)	3.80		%	3.69		%	3.93		%
Net interest margin, adjusted (7)(8)	3.74		%	3.56		%	3.86		%

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Table 27 - Items impacting comparability (continued)
Financial Reconciliations
(1) Reported measure uses net income.
(2) Averages are for the years ended December 31, 2022, December 31, 2021 and December 31, 2020, as appropriate.
(3) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period.
RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY:
	Year Ended December 31,
	2022		2021		2020
AVERAGE SHAREHOLDERS' EQUITY	$	1,076,879	$	1,065,460	$	1,009,102
Less: Average goodwill and other intangible assets	166,337		167,993		170,031
AVERAGE TANGIBLE EQUITY	$	910,542	$	897,467	$	839,071
(4) Tangible equity divided by common shares outstanding at period end. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at the end of the period.
RECONCILIATION OF TOTAL SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY:
	Year Ended December 31,
	2022		2021		2020
TOTAL SHAREHOLDERS' EQUITY	$	1,069,226	$	1,110,759	$	1,040,256
Less: Goodwill and other intangible assets	165,570		167,057		168,855
TANGIBLE EQUITY	$	903,656	$	943,702	$	871,401
(5) Net income for each period divided by average tangible assets during the period. Average tangible assets equal average assets less average goodwill and other intangible assets, in each case during the applicable period.
RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS
	Year Ended December 31,
	2022		2021		2020
AVERAGE ASSETS	$	10,044,208	$	9,847,458	$	9,241,633
Less: Average goodwill and other intangible assets	166,337		167,993		170,031
AVERAGE TANGIBLE ASSETS	$	9,877,871	$	9,679,465	$	9,071,602
(6) Tangible equity divided by tangible assets. Tangible assets equal total assets less goodwill and other intangible assets, in each case at the end of the period.
RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
	Year Ended December 31,
	2022		2021		2020
TOTAL ASSETS	$	9,854,993	$	9,560,254	$	9,279,021
Less: Goodwill and other intangible assets	165,570		167,057		168,855
TANGIBLE ASSETS	$	9,689,423	$	9,393,197	$	9,110,166
(7) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period.
RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
	Year Ended December 31,
	2022		2021		2020
Interest income	$	378,247	$	345,853	$	357,720
FTE adjustment	3,541		2,911		2,866
FTE interest income	$	381,788	$	348,764	$	360,586
Interest expense	31,188		15,960		30,090
FTE net interest income	$	350,600	$	332,804	$	330,496

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(8) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for (recovery of) credit losses, total other income, and total other expense and income taxes.
(9) The tax effect of adjustments to net income was calculated assuming a 21% federal corporate income tax rate.
(10) Pre-tax, pre-provision ("PTPP") net income is calculated as net income, plus income taxes, plus the provision for (recovery of) credit losses, in each case during the applicable period. PTPP net income is a common industry metric utilized in capital analysis and review. PTPP is used to assess the operating performance of Park while excluding the impact of the provision for (recovery of) credit losses.
RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME
	Year Ended December 31,
	2022		2021		2020
Net income	$	148,351	$	153,945	$	127,923
Plus: Income taxes	32,108		34,290		26,722
Plus: Provision for (recovery of) credit losses	4,557		(11,916)		12,054
Pre-tax, pre-provision net income	$	185,016	$	176,319	$	166,699

Income Taxes:

Income tax expense was $32.1 million in 2022 and consisted of federal income tax expense of $30.8 million and state income tax expense of $1.3 million. This compares to income tax expense of $34.3 million for 2021, which consisted of federal income tax expense of $33.2 million and state income tax expense of $1.1 million, and income tax expense of $26.7 million in 2020, which consisted of federal income tax expense of $25.6 million and state income tax expense of $1.1 million. The effective income tax rate was 17.8% in 2022, 18.2% in 2021 and 17.3% in 2020. 

The difference between the statutory federal corporate income tax rate of 21% and Park’s effective tax rate reflected permanent tax differences, primarily consisting of tax-exempt interest income from municipal investments and loans, qualified affordable housing and historical tax credits, bank owned life insurance income, and dividends paid on common shares held within Park’s salary deferral plan, offset by the impact of state income taxes. Park's permanent federal tax differences were approximately $7.1 million in 2022, compared to $6.3 million for 2021. Park expects permanent federal tax differences for 2023 will be approximately $6.5 million.

CREDIT METRICS AND PROVISION FOR (RECOVERY OF) CREDIT LOSSES

The provision for (recovery of) credit losses is the amount added to/subtracted from the allowance for credit losses to ensure the allowance is sufficient to absorb estimated credit losses over the life of a loan. The amount of the provision for (recovery of) credit losses is determined by management based on relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets.

During the first quarter of 2021, Park adopted ASU 2016-13, including the CECL methodology for estimating the ACL. This standard was adopted prospectively on January 1, 2021, resulting in a $6.1 million increase to the ACL and a $3.9 million increase to the allowance for unfunded credit losses. A cumulative effect adjustment resulting in an $8.0 million decrease to retained earnings and a $2.1 million increase to deferred tax assets was also recorded as of the adoption of ASU 2016-13.

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The table below provides additional information on the provision for (recovery of) credits losses and the ACL for 2022, 2021 and 2020.

Table 28 - ACL Activity
(In thousands)	2022			2021			2020
ACL, beginning balance	$	83,197		$	85,675		$	56,679
Cumulative change in accounting principle; adoption of ASU 2016-13	—			6,090			—
Charge-offs	9,133			5,093			10,304
Recoveries	(6,758)			(8,441)			(27,246)
Net charge-offs (recoveries)	2,375			(3,348)			(16,942)
Provision for (recovery of) credit losses:	4,557			(11,916)			12,054
ACL, ending balance	$	85,379		$	83,197		$	85,675
Average loans	$	6,955,674		$	7,014,517		$	6,990,458
Net charge-offs (recoveries) as a percentage of average loans	0.03		%	(0.05)		%	(0.24)		%

For the year ended December 31, 2022, gross income of $4.8 million would have been recognized on loans that were nonaccrual as of December 31, 2022 had these loans been current in accordance with their original terms. Interest income on nonaccrual loans may be recorded on a cash basis and be included in income only when Park expects to receive the entire recorded investment of the loan. Of the $4.8 million that would have been recognized, approximately $3.3 million was included in interest income for the year ended December 31, 2022 as a result of payments made.

Charge-offs for 2022 included the charge-off of $416,000 in specific reserves for which provision expense had been recognized in a prior year, compared to $15,000 for 2021 and $283,000 for 2020. Net charge-offs (recoveries) adjusted for changes in specific reserves as a percentage of average loans for the years ended December 31, 2022, 2021 and 2020 were 0.06%, (0.10)%, and (0.24)%, respectively.

SEPH, as a non-bank subsidiary of Park, does not carry an ACL balance, but recognizes a provision for credit losses when a charge-off is taken and recognizes a recovery of credit losses when a recovery is received.

At year-end 2022, the allowance for credit losses was $85.4 million, or 1.20%, of total loans outstanding, compared to $83.2 million, or 1.21%, of total loans outstanding at year-end 2021, and $85.7 million, or 1.19% of total loans outstanding at year-end 2020.

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The following table provides additional information related to the allowance for credit losses for Park including information related to specific reserves and general reserves, at December 31, 2022, December 31, 2021 and December 31, 2020. Also included is the January 1, 2021 allowance for credit losses calculated under the CECL methodology prescribed in ASU 2016-13.

Table 29- Allowance for Credit Losses Summary
(Dollars in thousands)	12/31/2022 (CECL methodology)			9/30/2022 (CECL methodology)			12/31/2021 (CECL methodology)			1/1/2021 (CECL methodology)			12/31/2020 (Incurred Loss methodology)
Total allowance for credit losses	$	85,379		$	83,961		$	83,197		$	91,764		$	85,675
Allowance on PCD loans (PCI loans for the period ended 2020)	—			—			—			52			167
Allowance on purchased loans excluded from the general reserve (for 2020)	N.A.			N.A.			N.A.			N.A.			678
Specific reserves on individually evaluated loans	3,566			1,750			1,616			5,434			5,434
General reserves on collectively evaluated loans	$	81,813		$	82,211		$	81,581		$	86,278		$	79,396
Total loans	$	7,141,891		$	7,103,246		$	6,871,122		$	7,177,537		$	7,177,785
PCD loans (PCI loans for period ended in 2020)	4,653			4,867			7,149			10,903			11,153
Purchased loans excluded from collectively evaluated loans (for 2020)	N.A			N.A.			N.A.			N.A.			360,056
Individually evaluated loans	78,341			43,670			74,502			108,274			108,407
Collectively evaluated loans	$	7,058,897		$	7,054,709		$	6,789,471		$	7,058,360		$	6,698,169
Allowance for credit losses as a % of period end loans	1.20		%	1.18		%	1.21		%	1.28		%	1.19		%
Allowance for credit losses as a % of period end loans (excluding PPP loans) (1)	1.20		%	1.18		%	1.22		%	1.34		%	1.25		%
General reserve as a % of collectively evaluated loans	1.16		%	1.17		%	1.20		%	1.22		%	1.19		%
General reserve as a % of collectively evaluated loans (excluding PPP loans) (1)	1.16		%	1.17		%	1.21		%	1.28		%	1.24		%

(1) Excludes $4.2 million of PPP loans and $4,000 in related allowance at December 31, 2022; $5.7 million of PPP loans and $6,000 in related allowance at September 30, 2022; $74.4 million of PPP loans and $77,000 in related allowance at December 31, 2021; $331.6 million of PPP loans and $337,000 in related allowance at January 1, 2021; and $331.6 million of PPP loans and $337,000 in related allowance at December 31, 2020.

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The allowance for credit losses of $85.4 million at December 31, 2022 represented an $2.2 million, or 2.6%, increase compared to $83.2 million at December 31, 2021. The increase was largely due to a $2.0 million increase in specific reserves and a $232,000 increase in general reserves, taking into consideration changing economic forecasts while balancing the risks associated with inflation and other economic risks.

The allowance for credit losses of $85.4 million at December 31, 2022 represented a $1.4 million, or 1.7%, increase compared to $84.0 million at September 30, 2022. The increase was largely due to a $1.8 million increase in specific reserves, partially offset by a $398,000 decrease in general reserves, taking into consideration changing economic forecasts while balancing the ongoing risks associated with inflation and other economic risks. Individually evaluated loans were $78.3 million at December 31, 2022, a $34.7 million, or a 79.4%, increase compared to $43.7 million at September 30, 2022. The increase in individually evaluated loans was largely due to a $23.0 million loan to a non-bank consumer finance company which was placed on nonaccrual status as of December 31, 2022. This credit did not have a specific reserve associated with it as of December 31, 2022.

The allowance for credit losses of $83.2 million at December 31, 2021 represented an $8.6 million, or 9.3%, decrease compared to $91.8 million at January 1, 2021 as calculated under the CECL methodology. The decline since January 1, 2021 was largely due to a $4.7 million decrease in general reserves, taking into consideration improved economic forecasts while balancing the risks associated with the COVID-19 pandemic and the delta and omicron variants, particularly in high risk portfolios such as hotels and accommodations, restaurants and food service and strip shopping centers. Additionally, there was a $3.8 million decrease in specific reserves on individually evaluated loans from $5.4 million at January 1, 2021 to $1.6 million at December 31, 2021.

Management believes that the allowance for credit losses at year-end 2022 is adequate to absorb estimated life of loan credit losses in the loan portfolio. See "Note 1 - Summary of Significant Accounting Policies" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K, and the discussion under the heading “CRITICAL ACCOUNTING POLICIES” earlier in this Management's Discussion and Analysis of Financial Condition and Results of Operations, for additional information on management’s evaluation of the adequacy of the allowance for credit losses.

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ACL Detail by Loan Type: The following tables breakdown the allowance for credit losses and components by loan type.

The table below provides a summary of Park's loan loss experience over the past three years:

Table 30  -  Summary of Loan Credit Loss Experience
(In thousands)	2022			2021			2020
Average loans	$	6,955,674		$	7,014,157		$	6,990,458
Allowance for credit losses:
Beginning balance	83,197			85,675			56,679
Adoption of ASU 2016-13	—			6,090			—
Charge-offs:
Commercial, financial and agricultural	2,056			957			1,468
Construction real estate	33			—			6
Residential real estate	81			49			356
Commercial real estate	1,578			35			1,824
Consumer	5,343			4,052			6,634
Leases	42			—			16
Total charge-offs	$	9,133		$	5,093		$	10,304
Recoveries:
Commercial financial, and agricultural	$	826		$	639		$	20,765
Construction real estate	1,343			2,299			1,122
Residential real estate	164			941			991
Commercial real estate	627			802			738
Consumer	3,767			3,759			3,629
Leases	31			1			1
Total recoveries	$	6,758		$	8,441		$	27,246
Net charge-offs (recoveries)	$	2,375		$	(3,348)		$	(16,942)
Provision (recovery) included in net income	4,557			(11,916)			12,054
Ending balance	$	85,379		$	83,197		$	85,675
Ratio of net charge-offs (recoveries) to average loans	0.03		%	(0.05)		%	(0.24)		%
Ratio of allowance for credit losses
to end of year loans	1.20		%	1.21		%	1.19		%

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The follow table presents net-charge offs (recoveries), average loans outstanding, and net charge-offs (recoveries) as a percentage of average loans, by type of loan over the past three years:

Table 31- Net Charge-Offs (Recoveries) to Average Loans
Year Ended December 31,
	2022						2021						2020
(Dollars in thousands)	Net Charge-offs (Recoveries)		Average Loans		Net Charge-offs (Recoveries) as a % of Average Loans		Net Charge-offs (Recoveries)		Average Loans		Net Charge-offs (Recoveries) as a % of Average Loans		Net Charge-offs (Recoveries)		Average Loans		Net Charge-offs (Recoveries) as a % of Average Loans
Commercial, financial, and agricultural	$	1,230	$	1,282,431	0.10	%	$	318	$	1,435,221	0.02	%	$	(19,297)	$	1,545,426	(1.25)	%
Construction real estate	(1,310)		316,805		(0.41)	%	(2,299)		331,882		(0.69)	%	(1,116)		346,664		(0.32)	%
Residential real estate	(83)		1,747,149		—	%	(892)		1,771,880		(0.05)	%	(635)		1,867,956		(0.03)	%
Commercial real estate	951		1,778,622		0.05	%	(767)		1,766,346		(0.04)	%	1,086		1,655,747		0.07	%
Consumer	1,576		1,810,985		0.09	%	293		1,686,849		0.02	%	3,005		1,546,574		0.19	%
Leases	11		19,682		0.06	%	(1)		22,339		—	%	15		28,091		0.05	%
Total	$	2,375	$	6,955,674	0.03	%	$	(3,348)	$	7,014,517	(0.05)	%	$	(16,942)	$	6,990,458	(0.24)	%

The following table summarizes Park's allocation of the allowance for credit losses for the past three years:

 

Table 32- Allocation of Allowance for Credit Losses
December 31,	2022				2021				2020
(In thousands)	Allowance		Percent of Loans Per Category		Allowance		Percent of Loans Per Category		Allowance		Percent of Loans Per Category
Commercial, financial, and agricultural	$	16,987	18.22	%	$	14,025	18.90	%	$	25,608	22.14	%
Construction real estate	5,550		4.56	%	5,758		4.68	%	7,288		4.78	%
Residential real estate	16,831		25.16	%	11,424		25.31	%	11,363		25.26	%
Commercial real estate	17,829		25.12	%	25,466		26.22	%	23,480		24.36	%
Consumer	28,021		26.67	%	26,286		24.59	%	17,418		23.12	%
Leases	161		0.27	%	238		0.30	%	518		0.34	%
Total	$	85,379	100.00	%	$	83,197	100.00	%	$	85,675	100.00	%

As of December 31, 2022, Park had no concentrations of loans exceeding 10% to borrowers engaged in the same or similar industries nor did Park have any loans to foreign governments.

Nonperforming Assets: Nonperforming assets include: 1) loans whose interest is accounted for on a nonaccrual basis; 2) troubled debt restructurings (TDRs) on accrual status; 3) loans which are contractually past due 90 days or more as to principal or interest payments, where interest continues to accrue; 4) OREO which results from taking possession of property that served as collateral for a defaulted loan; and 5) other nonperforming assets. There were no other nonperforming assets as of December 31, 2022. As of December 31, 2021 and 2020, other nonperforming assets consisted of aircraft acquired as part of a loan workout.

Generally, management obtains updated appraisal information for nonperforming loans and OREO annually. As new appraisal information is received, management performs an evaluation of the appraisal and applies a discount for anticipated disposition costs to determine the net realizable value of the collateral, which is compared to the outstanding principal balance to determine if additional write-downs are necessary.

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The following is a summary of Park’s nonperforming assets at the end of the last three years:

 

Table 33 - Nonperforming Assets
	December 31,
(In thousands)	2022			2021			2020
Nonaccrual loans	$	79,696		$	72,722		$	117,368
Accruing TDRs	20,134			28,323			20,788
Loans past due 90 days or more and accruing	1,281			1,607			1,458
Total nonperforming loans	$	101,111		$	102,652		$	139,614
OREO	1,354			775			1,431
Other nonperforming assets	—			2,750			3,164
Total nonperforming assets	$	102,465		$	106,177		$	144,209
Percentage of nonperforming loans to total loans	1.42		%	1.49		%	1.95		%
Percentage of nonperforming assets to total loans	1.43		%	1.55		%	2.01		%
Percentage of nonperforming assets to total assets	1.04		%	1.11		%	1.55		%
Percentage of nonaccrual loans to total loans	1.12		%	1.06		%	1.64		%
Allowance for credit losses to nonaccrual loans	107.13		%	114.40		%	73.00		%

Included in OREO totals above were $1.4 million of SEPH OREO at December 31, 2022 and $594,000 of SEPH OREO at both December 31, 2021 and December 31, 2020.

Park classifies loans as nonaccrual when 1) a loan is maintained on a cash basis because of deterioration in the financial condition of the borrower, 2) payment in full of principal or interest is not expected, or 3) principal or interest has been in default for a period of 90 days for commercial loans and 120 days for all other loans. As a result, loans may be classified as nonaccrual despite being current with their contractual terms. The following table details the delinquency status of nonaccrual loans at December 31, 2022, 2021, and 2020.

Table 34 - Delinquency Status of Nonaccrual Loans
	December 31, 2022				December 31, 2021				December 31, 2020
(Dollars in thousands)	Balance		Percent of Total Loans		Balance		Percent of Total Loans		Balance		Percent of Total Loans
Nonaccrual loans - current	$	58,893	0.83	%	$	53,259	0.78	%	$	92,600	1.29	%
Nonaccrual loans - past due	20,803		0.29	%	19,463		0.28	%	24,768		0.35	%
Total nonaccrual loans	$	79,696	1.12	%	$	72,722	1.06	%	$	117,368	1.64	%

Credit Quality Indicators: When determining the quarterly credit loss provision, Park reviews the grades of commercial loans. These loans are graded from 1 to 8. 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 1 through 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. Commercial loans graded a 6 (substandard), also considered to be watch list credits, represent higher credit risk than those rated special mention and, as a result, a higher PD is applied to these loans. Commercial loans that are graded a 7 (doubtful) are shown as nonperforming and Park charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Any commercial loan graded an 8 (loss) is completely charged-off.

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The following table highlights the credit trends within the commercial loan portfolio.

Table 35- Commercial Credit Trends
Commercial loans * (In thousands)	December 31, 2022		December 31, 2021		December 31, 2020
Pass rated	$	3,709,065	$	3,712,784	$	3,893,205
Special Mention	79,855		75,397		102,812
Substandard	1,965		—		109
Individually evaluated for impairment	78,341		74,502		108,407
Accruing PCD (PCI loans for period ended December 31, 2020)	4,563		6,630		10,296
Total	$	3,873,789	$	3,869,313	$	4,114,829

*Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) commercial related loans in the construction portfolio; (4) commercial related loans in the residential real estate portfolio; and (5) leases.

Park’s watch list includes all criticized and classified commercial loans, defined by Park as loans rated special mention or worse. Park had $81.8 million of collectively evaluated commercial loans included on the watch list at December 31, 2022, compared to $75.4 million at December 31, 2021, and $102.9 million at December 31, 2020. The existing conditions of these loans do not warrant classification as nonaccrual. However, these loans have shown some weakness and management performs additional analysis regarding each borrower's ability to comply with payment terms.

Delinquencies have remained low over the past 36 months since January 1, 2020. Delinquent and accruing loans were $18.9 million, or 0.26% of total loans at December 31, 2022, compared to $15.1 million, or 0.22% of total loans at December 31, 2021, and $20.1 million, or 0.28% of total loans at December 31, 2020.

Individually Evaluated Loans: Loans that do not share risk characteristics are evaluated on an individual basis. Park has determined that any commercial loans which have been placed on nonaccrual status or classified as TDRs will be individually evaluated. Individual analysis will establish a specific reserve for loans in scope.  Specific reserves on individually evaluated commercial loans are typically based on management’s best estimate of the fair value of collateral securing these loans. The amount ultimately charged off for these loans may be different from the specific reserve as the ultimate liquidation of the collateral may be for an amount different from management’s estimate.

Individually evaluated were $78.3 million at December 31, 2022, an increase of $3.8 million, compared to $74.5 million at December 31, 2021, and a decrease of $30.1 million at December 31, 2022, compared to $108.4 million at December 31, 2020. The $78.3 million of individually evaluated commercial loans at December 31, 2022 included $11.5 million of loans modified in a TDR which were then on accrual status and performing in accordance with the restructured terms, a decrease from $17.5 million at December 31, 2021.

At December 31, 2022, Park had taken partial charge-offs of $1.8 million related to the $78.3 million of the individually evaluated commercial loans, compared to partial charge-offs of $624,000 related to the $74.5 million of individually evaluated commercial loans at December 31, 2021 and compared to partial charge-offs of $655,000 related to the $108.4 million of individually evaluated commercial loans at December 31, 2020.

The table below provides additional information related to Park's individually evaluated commercial loans at December 31, 2022, 2021, and 2020.

Table 36 - Individually Evaluated Commercial Loans
Years ended December 31,
(In thousands)	2022		2021		2020
Unpaid principal balance	$	80,116	$	75,126	$	109,062
Prior charge-offs	1,775		624		655
Remaining principal balance	78,341		74,502		108,407
Specific reserves	3,566		1,616		5,434
Book value, after specific reserves	$	74,775	$	72,886	$	102,973

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Loans 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. NewDominion 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. Carolina Alliance 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. PCD loans are individually evaluated on a quarterly basis to determine if a specific reserve is necessary. At December 31, 2022 and December 31, 2021, there was no allowance for credit losses on PCD loans. The carrying amount of loans acquired with deteriorated credit quality at December 31, 2022 and December 31, 2021 was $4.7 million and $7.1 million, respectively. The carrying amount of loans acquired with deteriorated credit quality at December 31, 2020 was $11.2 million, of which none were considered impaired due to additional credit deterioration post acquisition.

Allowance for Credit Losses: The allowance for credit losses is calculated on a quarterly basis. The methodology for calculating the ACL and assumptions made as of December 31, 2022 are detailed below.

Quantitative Considerations

The ACL is primarily calculated utilizing a DCF model. Key inputs and assumptions used in this model are discussed below:

•Forecast model - For each portfolio segment, a LDA was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA analysis utilized Park's own FFIEC Call Report data for the commercial, financial and agricultural and residential real estate portfolio segments. Peer data was incorporated into the analysis for the commercial real estate, construction real estate, and consumer portfolio segments. Park updated the LDA in the fourth quarter of 2022 with data through September 30, 2022. After considering the impact of the inclusion of periods impacted by COVID, as well as analysis of the ongoing applicability of the selected peer group, management decided it was appropriate to continue to utilize the LDA analysis from the fourth quarter of 2019 as the correlation of the LDA was higher.

•Probability of default – PD is the probability that an asset will be in default within a given time frame. Park has defined default to be when a charge-off has occurred, a loan is placed on nonaccrual, or a loan is greater than 90 days past due. Whenever possible, Park utilizes its own loan-level PDs for the reasonable and supportable forecast period. When loan-level data is not available reflecting the forecasted economic conditions, a forecast model is utilized to estimate PDs.

•Loss given default – LGD is the percentage of the asset not expected to be collected due to default. Whenever possible, Park utilizes its own loan-level LGDs for the reasonable and supportable forecast period. When it is not possible to use Park's own LGDs, the LGD is derived using a method referred to as Frye Jacobs.

•Prepayments and curtailments – Prepayments and curtailments are calculated based on Park’s own data utilizing a three-year average. This analysis is updated annually in the fourth quarter and was last updated in the fourth quarter of 2022.

•Forecast and reversion – Park has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.

•Economic forecast - Park utilizes a third party to provide economic forecasts under various scenarios, which are weighted in order to reflect model risk in the current economic environment. The scenario weighting is evaluated by management on a quarterly basis.

◦As of December 31, 2021, the "most likely" scenario forecasted Ohio unemployment to decrease, to a range between 3.32% and 3.97%, during the next four quarters. In determining the appropriate weighting of scenarios at December 31, 2021, management considered the range of forecasted unemployment as well as a number of economic indicators. While some economic indications appeared to be optimistic, the Omicron variant, rising inflation, volatility in consumer confidence, employment, supply chain and workforce challenges continued to cause uncertainty to the overall economic environment. Considering these factors, management determined it was appropriate to weigh the "most likely" scenario 50% and the "moderate recession" scenario 50% at December 31, 2021.

◦As of December 31, 2022, the "most likely" scenario forecasted Ohio unemployment between 4.14% and 4.36% during the next four quarters. In determining the appropriate weighting of scenarios at December 31, 2022, management considered the range of forecasted unemployment as well as a number of economic indicators. The continued high levels of inflation, historically low consumer confidence, rising interest rates, geopolitical conflict (including the conflict between Russia and Ukraine), and workforce and supply chain challenges continued to cause uncertainty to the overall economic environment. Considering these factors,

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management determined it was appropriate to maintain the existing weighting, and weigh the "most likely" scenario 50% and the "moderate recession" scenario 50% at December 31, 2022. Deteriorating forecasts, largely in the "moderate recession" scenario, resulted in a 10 basis point increase in the weighted quantitative allowance from December 31, 2021.

Qualitative Considerations

Park reviews various internal and external factors to consider the need for any qualitative adjustments to the     quantitative model. Factors considered include the following:

•The nature and volume of Park’s financial assets; the existence, growth, and effect of any concentrations of credit and the volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets. Specifically, management considers:

◦Trends (e.g., growth, reduction) in specific categories of the loan portfolio, as well as adjustments to the types of loans offered by Park.

◦Level of and trend in loan delinquencies, troubled loans, commercial watch list loans and nonperforming loans.

◦Level of and trend in new nonaccrual loans.

◦Level of and trend in loan charge-offs and recoveries.

•Park's lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries.

•The quality of Park’s credit review function.

•The experience, ability, and depth of Park’s lending, investment, collection, and other relevant management and staff.

•The effect of other external factors such as the regulatory, legal and technological environments; competition; geopolitical conflict; and events such as natural disasters or pandemics.

•Actual and expected changes in international, national, regional, and local economic and business conditions and developments in the markets in which Park operates that affect the collectibility of financial assets.

•Where the U.S. economy is within a given credit cycle.

•The extent that there is government assistance (stimulus).

During 2020, Park added an additional reserve for three industries at particularly high risk due to the COVID-19 pandemic: hotels and accommodations; restaurants and food service; and strip shopping centers. These industries experienced high levels of deferrals and had been particularly impacted by shut downs of non-essential businesses, increased health department regulations, and changes in consumer behavior. Management expected that a relatively higher percentage of the 4-rated credits in these portfolios would eventually migrate to special mention, substandard, or individually evaluated status. In adopting CECL, management determined it was appropriate to retain this qualitative adjustment as this adjustment took into account the additional risk in these portfolios, which was not captured in the quantitative calculation. As COVID cases began to decline during the first quarter of 2022, travel increased, restrictions lifted, and consumers began increasing restaurant visits and shopping in person, and these industries began to show signs of recovery. Beginning in the first quarter of 2022, management began decreasing these reserves 25% each quarter to take into account improvements in these industry sectors. In the fourth quarter 2022, these industries continued to show positive trends and COVID-19 has become less impactful to day-to-day life. Therefore, management deemed it appropriate to reduce the factors the remaining 25%, taking this qualitative adjustment to zero.

A breakout of the 4-rated balances within these portfolios and the additional reserve related to these portfolios, as of December 31, 2021, is detailed in the following table:

Table 37 - Additional COVID-19 Reserves
	December 31, 2021
(In thousands)	4-Rated Balance		Additional Reserve
Hotels and accommodations	$	148,018	$	2,226
Restaurants and food service	40,648		917
Strip shopping centers	184,171		2,033
Total	$	372,837	$	5,176

Additionally, at December 31, 2021, management applied a 1.00% reserve to all hotels and accommodations loans in the collectively evaluated population to account for increased valuation risk. At December 31, 2021, Park's collectively evaluated hotels and accommodation loans had a balance of $203.9 million with an additional reserve related to valuation risks of $2.0

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million. With improvement in occupancy and revenue in Park's hotel and accommodations portfolio, management concluded it appropriate to decrease the hotel and accommodations valuation reserve to zero at December 31, 2022.

At December 31, 2022 and 2021, Park had $4.2 million and $74.4 million, respectively, of PPP loans which were included in the commercial, financial and agricultural portfolio segment. These loans are guaranteed by the SBA and thus have not been reserved for using the same methodology as the rest of Park’s loan portfolio. A 10 basis point reserve was calculated for these loans to reflect minimal credit risk at December 31, 2022 and December 31, 2021.

CAPITAL RESOURCES

Liquidity and Interest Rate Sensitivity Management: Park’s objective in managing its liquidity is to maintain the ability to continuously meet the cash flow needs of customers, such as borrowings or deposit withdrawals, while at the same time seeking higher yields from longer-term lending and investing activities.

Cash and cash equivalents decreased by $29.5 million during 2022 to $189.7 million at year end. Cash provided by operating activities was $134.9 million in 2022, $157.3 million in 2021 and $111.6 million in 2020. Net income was the primary source of cash provided by operating activities during each year.

Cash used in investing activities was $403.7 million in 2022, $412.1 million in 2021 and $455.9 million in 2020. Investment securities transactions and loan originations/repayments are the major uses or sources of cash in investing activities.  Proceeds from the sale, repayment or maturity of investment securities provide cash and purchases of investment securities use cash.  Net investment securities transactions used cash of $137.8 million in 2022, used cash of $709.5 million in 2021 and provided cash of $188.1 million in 2020. Cash used by the net increase in the loan portfolio was $271.8 million in 2022, cash provided by the net paydown in the loan portfolio was $312.2 million in 2021, and cash used by the net increase in the loan portfolio was $620.2 million in 2020.

Cash provided by financing activities was $239.4 million in 2022, $103.5 million in 2021 and $554.8 million in 2020. A major source of cash provided by or used in financing activities is the net change in deposits.  Deposits increased and provided $330.2 million of cash in 2022, $332.2 million of cash in 2021 and $520.0 million of cash in 2020. These increases in deposits included a decrease in off-balance sheet deposits of $787.1 million in 2022 and increases in off-balance sheet deposits of $273.0 million and $710.1 million in 2021 and 2020, respectively. Other major sources of cash from financing activities are short-term borrowings and long-term debt. In 2022, net short-term borrowings decreased and used $11.4 million in cash and net long-term debt was unchanged. In 2021, net short-term borrowings decreased and used $103.4 million in cash and net long-term debt decreased and used $32.5 million in cash. In 2020, net short-term borrowings increased and provided $111.6 million in cash and net long-term debt increased and provided $2.1 million in cash. Cash used in the repurchase of common shares was $16.0 million in 2021 and $7.5 million in 2020. No common shares were repurchased in 2022. Finally, cash declined by $76.6 million in 2022, $74.3 million in 2021 and $70.4 million in 2020, from the payment of cash dividends.

Funds are available from a number of sources, including the capital markets, the investment securities portfolio, the core deposit base, FHLB borrowings and the capability to securitize or package loans for sale. In the opinion of Park's management, the present funding sources provide more than adequate liquidity for Park to meet our cash flow needs.

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The following table shows interest rate sensitivity data for five different time intervals as of December 31, 2022:

 

Table 38  -  Interest Rate Sensitivity
	0-3			3-12			1-3			3-5			Over 5
(In thousands)	Months			Months			Years			Years			Years			Total
Interest earning assets:
Investment securities (1)	$	569,005		$	102,054		$	368,015		$	357,043		$	545,826		$	1,941,943
Money market instruments	32,978			—			—			—			—			32,978
Loans (1)	1,671,912			1,300,063			2,362,107			1,189,772			618,037			7,141,891
Total interest earning assets	2,273,895			1,402,117			2,730,122			1,546,815			1,163,863			9,116,812
Interest bearing liabilities:
Interest bearing transaction accounts (2)	$	1,023,070		$	—		$	965,036		$	—		$	—		$	1,988,106
Savings accounts (2)	953,024			—			1,663,539			—			—			2,616,563
Time deposits	170,574			198,948			131,017			51,126			2,780			554,445
Other	1,325			—			—			—			—			1,325
Total deposits	2,147,993			198,948			2,759,592			51,126			2,780			5,160,439
Short-term borrowings	227,342			—			—			—						227,342
Subordinated notes	15,000			—			—			173,667			—			188,667
Total interest bearing liabilities	2,390,335			198,948			2,759,592			224,793			2,780			5,576,448
Interest rate sensitivity gap	(116,440)			1,203,169			(29,470)			1,322,022			1,161,083			3,540,364
Cumulative rate sensitivity gap	(116,440)			1,086,729			1,057,259			2,379,281			3,540,364
Cumulative gap as a
percentage of total
interest earning assets	(1.28)		%	11.92		%	11.60		%	26.10		%	38.83		%

(1)Investment securities and loans that are subject to prepayment are shown in the table by the earlier of their re-pricing date or their expected repayment date and not by their contractual maturity date. Nonaccrual loans of $79.7 million are included within the three-month to twelve-month maturity category. 

(2)Management considers interest bearing transaction accounts and savings accounts to be core deposits and, therefore, not as rate sensitive as other deposit accounts and borrowed money. Accordingly, only 51% of interest bearing transaction accounts and 36% of savings accounts are considered to re-price within one year. If all of the interest bearing transaction accounts and savings accounts were considered to re-price within one year, the one-year cumulative gap would change from a positive 11.9% to a negative 16.9%.

The interest rate sensitivity gap analysis provides an overall picture of Park’s static interest rate risk position.  At December 31, 2022, the cumulative interest earning assets maturing or repricing within twelve months were $3,676 million compared to the cumulative interest bearing liabilities maturing or repricing within twelve months of $2,589 million.  For the twelve-month cumulative interest rate sensitivity gap position, rate sensitive assets exceeded rate sensitive liabilities by $1,087 million or 11.9% of interest earning assets.

A positive twelve-month cumulative rate sensitivity gap (assets exceed liabilities) would suggest that Park’s net interest margin would increase if interest rates were to increase.  Conversely, a negative twelve-month cumulative rate sensitivity gap would suggest that Park’s net interest margin would decrease if interest rates were to increase. However, the usefulness of the interest rate sensitivity gap analysis as a forecasting tool in projecting net interest income is limited.  The gap analysis does not consider the magnitude, timing or frequency by which assets or liabilities will reprice during a period and also contains assumptions as to the repricing of interest bearing transaction accounts and savings accounts that may not prove to be correct.

The cumulative twelve-month interest rate sensitivity gap position at year-end 2021 was a positive $1,895 million or 21.7% of total interest earning assets.  The percentage of interest earning assets maturing or repricing within one year was 40.3% at year-end 2022, compared to 47.2% at year-end 2021.  The percentage of interest bearing liabilities maturing or repricing within one year was 46.4% at year-end 2022, compared to 42.3% at year-end 2021.

Management supplements the interest rate sensitivity gap analysis with periodic simulations of balance sheet sensitivity under various interest rate and what-if scenarios to better forecast and manage the net interest margin.  Park’s management uses an earnings simulation model to analyze net interest income sensitivity to movements in interest rates.  This model is based on actual cash flows and repricing characteristics for balance sheet instruments and incorporates market-based assumptions

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regarding the impact of changing interest rates on the prepayment rate of certain assets and liabilities.  This model also includes management’s projections for activity levels of various balance sheet instruments and non-interest fee income and operating expense.  Assumptions based on the historical behavior of deposit rates and balances in relation to changes in interest rates are also incorporated into this earnings simulation model.  These assumptions are inherently uncertain and, as a result, the model cannot precisely measure net interest income and net income.  Actual results will differ from simulated results due to the timing, magnitude and frequency of interest rate changes as well as changes in market conditions and management strategies.

Management uses a 50 basis point change in market interest rates per quarter for a total of 200 basis points per year in evaluating the impact of changing interest rates on net interest income and net income over a twelve-month horizon. At December 31, 2022, the earnings simulation model projected that net income would increase by 3.69% using a rising interest rate scenario and decrease by 5.38% using a declining interest rate scenario over the next year. At December 31, 2021, the earnings simulation model projected that net income would increase by 7.5% using a rising interest rate scenario and decrease by 15.1% using a declining interest rate scenario over the next year. At December 31, 2020, the earnings simulation model projected that net income would decrease by 2.9% using a rising interest rate scenario and decrease by 8.8% using a declining interest rate scenario over the next year. Park’s net interest margin was 3.80% in 2022, 3.69% in 2021 and 3.93% in 2020.   

CONTRACTUAL OBLIGATIONS

In the ordinary course of operations, Park enters into certain contractual obligations. The following table summarizes Park’s significant and determinable obligations by payment date at December 31, 2022.

Further discussion of the nature of each specified obligation is included in the referenced Note to the Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K.

Table 39 - Contractual Obligations (1)
December 31, 2022	Payments Due In
		0-1		1-3		3-5		Over 5
(In thousands)	Note	Years		Years		Years		Years		Total
Deposits without stated maturity	14	$	7,680,270	$	—	$	—	$	—	$	7,680,270
Certificates of deposit	14	346,856		157,890		49,657		42		554,445
Short-term borrowings	16	227,342		—		—		—		227,342
Subordinated notes	18	—		—		—		188,667		188,667
Operating leases	13	3,599		4,627		4,127		11,020		23,373
Defined benefit pension plan (2)	21	9,684		19,912		21,164		51,388		102,148
Supplemental Executive Retirement Plan agreements	21	643		1,844		2,468		41,498		46,453
Total contractual obligations		$	8,268,394	$	184,273	$	77,416	$	292,615	$	8,822,698

(1) Amounts do not include associated interest payments.

(2) Pension payments reflect 10 years of payments, through 2032.

As of December 31, 2022, Park had $28.1 million in unfunded commitments related to investments in qualified affordable housing projects which are not included in "Table 39 - Contractual Obligations" above. Commitments are funded when capital calls are made by the general partner. Park expects that the current commitments will be funded between 2023 and 2032.

As of December 31, 2022, Park had $20.3 million in unfunded commitments related to certain equity investments which are not included in "Table 39 - Contractual Obligations" above. Commitments are funded when capital calls are made by the general partner.

The Corporation’s operating lease obligations represent short-term and long-term lease and rental payments for facilities and equipment.

Commitments, Contingent Liabilities, and Off-Balance Sheet Arrangements: In order to meet the financing needs of our customers, the Corporation issues loan commitments and standby letters of credit. At December 31, 2022, the Corporation had $1.4 billion of loan commitments for commercial, commercial real estate, and residential real estate loans and had $30.5 million

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of standby letters of credit. At December 31, 2021, the Corporation had $1.4 billion of loan commitments for commercial, commercial real estate, and residential real estate loans and had $18.2 million of standby letters of credit.

Commitments to extend credit under loan commitments and standby letters of credit do not necessarily represent future cash requirements.  These commitments often expire without being drawn upon.  However, all of the loan commitments and standby letters of credit were permitted to be drawn upon in 2022. See "Note 26 - Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentration of Credit Risk" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" in this Annual Report on Form 10-K, for additional information on loan commitments and standby letters of credit.

The Corporation did not have any unrecorded significant contingent liabilities at December 31, 2022.

Capital: Park’s primary means of maintaining capital adequacy is through retained earnings.  At December 31, 2022, the Corporation’s total shareholders’ equity was $1,069.2 million, compared to $1,110.8 million at December 31, 2021.  Total shareholders’ equity at December 31, 2022 was 10.85% of total assets, compared to 11.62% of total assets at December 31, 2021. 

Tangible equity was $903.7 million at December 31, 2022, and was $943.7 million at December 31, 2021. At December 31, 2022, tangible equity was 9.33% of tangible assets compared to 10.05% of tangible assets at December 31, 2021. A reconciliation of total shareholders' equity to tangible equity and total assets to tangible assets is included in Table 27.

Net income was $148.4 million in 2022, $153.9 million in 2021 and $127.9 million in 2020.

Cash dividends declared for Park's common shares were $76.8 million in 2022, $74.6 million in 2021 and $70.6 million in 2020. On a per share basis, the cash dividends declared were $4.66 per common share in 2022, $4.52 per common share in 2021 and $4.28 per common share in 2020.

The table below shows the repurchases and issuances of common shares and treasury shares for 2020 through 2022.

 

Table 40
(In thousands, except share data)	Treasury Shares		Number of Common Shares
Balance at January 1, 2020	$	(127,633)	16,346,442
Cash payment for fractional shares in dividend reinvestment plan	—		(36)
Treasury shares repurchased	(7,507)		(76,000)
Treasury shares reissued for share-based compensation awards	3,031		30,341
Treasury shares reissued for director grants	1,343		13,450
Balance at December 31, 2020	$	(130,766)	16,314,197
Cash payment for fractional shares in dividend reinvestment plan	—		(45)
Treasury shares repurchased	(16,048)		(137,659)
Treasury shares reissued for share-based compensation awards	2,964		29,670
Treasury shares reissued for director grants	1,360		13,400
Balance at December 31, 2021	$	(142,490)	16,219,563
Cash payment for fractional shares in dividend reinvestment plan	—		(14)
Treasury shares reissued for share-based compensation awards	3,477		34,245
Treasury shares reissued for director grants	994		9,789
Balance at December 31, 2022	$	(138,019)	16,263,583

Park did not issue any new common shares, which had not already been held as treasury shares, in 2022, 2021 or 2020. Common shares (including treasury shares) had a balance of $462.4 million, $461.8 million and $460.7 million at December 31, 2022, 2021, and 2020, respectively.

Accumulated other comprehensive (loss) income, net reflected a loss of $102.4 million at December 31, 2022, and reflected income of $15.2 million at December 31, 2021 and $5.6 million at December 31, 2020. During 2022, the change in net

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unrealized holding (loss) gain on AFS debt securities, net of income tax, was a loss of $116.9 million. During 2021, the change in net unrealized holding (loss) gain on AFS debt securities, net of income tax, was a loss of $19.5 million. During the 2020 year, the change in net unrealized holding gain (loss) on AFS debt securities, net of income tax, was a gain of $23.2 million.

Additionally, Park recognized an other comprehensive loss of $888,000, net of tax, related to the change in pension plan assets and benefit obligations in 2022, compared to an other comprehensive gain of $28.6 million, net of tax, related to the change in pension plan assets and benefit obligations in 2021, and compared to an other comprehensive loss of $7.7 million, net of income tax, related to the change in pension plan assets and benefit obligations in 2020. Finally, during 2022, Park recognized an other comprehensive gain of $206,000, net of income tax, related to an unrealized net holding gain on cash flow hedging derivatives, compared to an other comprehensive gain of $492,000, net of income tax, related to an unrealized net holding gain on cash flow hedging derivatives in 2021 and compared to an other comprehensive loss of $244,000, net of income tax, related to an unrealized net holding loss on cash flow hedging derivatives in 2020.

Financial institution regulators have established guidelines for minimum capital ratios for banks, thrifts and bank holding companies. Park has elected not to include the net unrealized gain or loss on debt securities AFS in computing regulatory capital. Park has adopted the Basel III regulatory capital framework as approved by the federal banking agencies. Under the Basel III regulatory capital framework, in order to avoid limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers, Park must hold a capital conservation buffer of 2.5% above the adequately capitalized risk-based capital ratios. The amounts shown below as the adequately capitalized ratio plus capital conservation buffer include the 2.50% buffer. The Federal Reserve Board has also adopted capital requirements Park must maintain to be deemed "well capitalized" and remain a financial holding company.

Park and PNB met each of the well-capitalized ratio guidelines applicable to them at December 31, 2022. The following table indicates the capital ratios for PNB and Park at December 31, 2022 and December 31, 2021.

Table 41 - PNB and Park Capital Ratios
	As of December 31, 2022
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
PNB	8.34	%	10.69	%	10.69	%	12.15	%
Park	9.90	%	12.76	%	12.57	%	16.07	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well-capitalized ratio - PNB	5.00	%	8.00	%	6.50	%	10.00	%
Well-capitalized ratio - Park	N/A		6.00	%	N/A		10.00	%

 

	As of December 31, 2021
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
PNB	8.58	%	11.05	%	11.05	%	12.56	%
Park	9.77	%	12.57	%	12.37	%	16.05	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well-capitalized ratio - PNB	5.00	%	8.00	%	6.50	%	10.00	%
Well-capitalized ratio - Park	N/A		6.00	%	N/A		10.00	%

     

Effects of Inflation: Balance sheets of financial institutions typically contain assets and liabilities that are monetary in nature and, therefore, differ greatly from most commercial and industrial companies which have significant investments in premises, equipment and inventory.  During periods of inflation, financial institutions that are in a net positive monetary position will experience a decline in purchasing power, which does have an impact on growth.  Another significant effect on internal equity growth is other expenses, which tend to rise during periods of inflation.

Management believes the most significant impact on financial results is the Corporation's ability to align our asset/liability management program to react to changes in interest rates.

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ITEM 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As noted in "Table 19 - Distribution of Assets, Liabilities and Shareholders' Equity" included in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K, Park’s tax equivalent net interest margin increased by eleven basis points in 2022, decreased by twenty-four basis points in 2021 and increased four basis points in 2020. The tax equivalent net interest margin was 3.80%, 3.69% and 3.93% for each of the years ended December 31, 2022, 2021 and 2020, respectively. The discussion of interest rate sensitivity included in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K is incorporated herein by reference. In addition, the discussion of Park’s commitments, contingent liabilities and off-balance sheet arrangements included in "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" of this Annual Report on Form 10-K and in "Note 26 - Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk" of the Notes to Consolidated Financial Statements included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K is incorporated herein by reference.

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ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Index to Financial Statements

Audited Financial Statements    Page            

Management’s Report on Internal Control Over Financial Reporting    84

Report of Independent Registered Public Accounting Firm     86

Auditor Name: Crowe LLP

Auditor Location: Columbus, OH

Auditor Firm ID: 173

Consolidated Balance Sheets at December 31, 2022 and 2021    89

Consolidated Statements of Income for the Years Ended December 31, 2022, 2021 and 2020    91

Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2022, 2021 and 2020    93

Consolidated Statements of Changes in Shareholders' Equity for the Years Ended December 31, 2022, 2021 and 2020    94

Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020    95

Notes to Consolidated Financial Statements    97

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Management’s Report on Internal Control Over Financial Reporting

Management’s Report on Internal Control Over Financial Reporting

To the Board of Directors and Shareholders

Park National Corporation

The management of Park National Corporation (the “Corporation”) is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, for the Corporation and its consolidated subsidiaries. The Corporation’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP"). The Corporation’s internal control over financial reporting includes those policies and procedures that:

a.pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Corporation and its consolidated subsidiaries;

b.provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that receipts and expenditures of the Corporation and its consolidated subsidiaries are being made only in accordance with authorizations of management and directors of the Corporation; and

c.provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Corporation and its consolidated subsidiaries that could have a material effect on the financial statements.

The Corporation’s internal control over financial reporting as it relates to the consolidated financial statements is evaluated for effectiveness by management and tested for reliability through a program of internal audits. Actions are taken to correct potential deficiencies as they are identified.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluations of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Accordingly, even an effective system of internal control over financial reporting will provide only reasonable assurance with respect to financial statement preparation.

With the participation of our Chairman of the Board and Chief Executive Officer and our Chief Financial Officer, Secretary, and Treasurer, management evaluated the effectiveness of the Corporation’s internal control over financial reporting at December 31, 2022, the end of the Corporation’s fiscal year. In making this assessment, management used the criteria set forth for effective internal control over financial reporting by the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Internal Control — Integrated Framework (2013).

Based on our assessment under the criteria described in the immediately preceding paragraph, management concluded that the

Corporation maintained effective internal control over financial reporting at a reasonable assurance level as of December 31, 2022. We reviewed the results of management's assessment with the Audit Committee of the Board of Directors of the Corporation.

The Corporation’s independent registered public accounting firm, Crowe LLP, has audited the Consolidated Balance Sheets of the Corporation and its subsidiaries at December 31, 2022 and 2021 and the related Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Changes in Shareholders' Equity and Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, 2022, included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K and the Corporation’s internal control over financial reporting as of December 31, 2022, and has issued their Report of Independent

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Registered Public Accounting Firm, which appears in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K.

 

/s/ David L. Trautman	/s/ Brady T. Burt
David L. Trautman	Brady T. Burt
Chairman of the Board and Chief Executive Officer	Chief Financial Officer, Secretary and Treasurer
March 1, 2023

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and the Board of Directors of Park National Corporation

Newark, Ohio

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Park National Corporation (the "Company") as of December 31, 2022 and 2021, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2022, and the related notes (collectively referred to as the "financial statements"). We also have audited the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control – Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control – Integrated Framework: (2013) issued by COSO.

Change in Accounting Principle

As discussed in Note 2 to the financial statements, the Company has changed its method of accounting for credit losses effective January 1, 2021 due to the adoption of ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The Company adopted the new credit loss standard using the modified retrospective method such that prior period amounts are not adjusted and continue to be reported in accordance with previously applicable generally accepted accounting principles.

Basis for Opinions

The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

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Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Allowance for Credit Losses

The allowance for credit losses (the “ACL”) as described in Notes 1 and 6 is an accounting estimate of expected credit losses over the estimated life of loans. The Company’s loan portfolio, measured at amortized cost, is presented at the net amount expected to be collected. Estimates of expected credit losses for loans are based on historical experience, current conditions and reasonable and supportable forecasts over the life of the loans.

The Company measures expected credit losses based on pooled loans when similar risk characteristics exist primarily utilizing a discounted cash flow (“DCF”) model. A loss driver analysis was performed to identify appropriate loss drivers to create a regression model for use in forecasting cash flows for each loan segment. Probability of default (“PD”) and loss given default (“LGD”) are assumptions in the model used to discount loan-level cash flows that are adjusted for prepayments and curtailments. A quantitative adjustment is made on top of the model using economic forecasts that are weighted to reflect model risk in the current economic environment. The Company adjusts its quantitative results for certain qualitative factors to reflect the extent to which management expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated.

The allowance for credit losses was identified by us as a critical audit matter because of the extent of auditor judgment applied and significant audit effort to evaluate the significant subjective and complex judgments made by management. The principal considerations resulting in our determination included the following:

•Significant auditor judgment and audit effort to evaluate the significant assumptions related to the loss driver analysis, PD and LGD input into the DCF model, including assistance by our valuation services specialists.

•Significant auditor judgment and audit effort to evaluate the quantitative adjustment made, on top of the model, that weights the economic scenarios to reflect model risk in the current economic environment.

The primary procedures performed to address the critical audit matter included:

•Testing the effectiveness of management's controls addressing:

◦Evaluation of the appropriateness of the loss driver analysis and probability of default and loss given default curves input into the model.

◦Evaluation of the relevance and reliability of data used in the DCF model.

◦Evaluation of the appropriateness of the key judgments used in the determination of the quantitative adjustment, made on top of the model, that weights the economic scenarios used in the forecast.

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•Substantive testing included:

◦Evaluating the appropriateness of the loss driver analysis and probability of default and loss given default curves into the DCF model, assisted by our valuation services specialists.

◦Evaluating the relevance and reliability of data used in the DCF model.

◦Evaluating management’s judgments and the relevance of data used in applying a quantitative adjustment, made on top of the model, that weights the economic scenarios used in the forecast.

Crowe LLP

We have served as the Company's auditor since 2006.

Columbus, Ohio

March 1, 2023

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Park National Corporation and Subsidiaries

Consolidated Balance Sheets

at December 31, 2022 and 2021

 

(In thousands, except share and per share data)	2022		2021
Assets
Cash and due from banks	$	156,750	$	144,507
Money market instruments	32,978		74,673
Cash and cash equivalents	189,728		219,180
Investment securities:
Debt securities available-for-sale, at fair value (amortized cost of $1,854,852 and $1,727,363 at December 31, 2022 and 2021, respectively, and no allowance for credit losses at December 31, 2022 and 2021)	1,733,696		1,754,140
Other investment securities	87,091		61,268
Total investment securities	1,820,787		1,815,408
Total loans	7,141,891		6,871,122
Allowance for credit losses	(85,379)		(83,197)
Net loans	7,056,512		6,787,925
Other assets:
Bank owned life insurance	220,072		215,792
Prepaid assets	153,579		144,124
Goodwill	159,595		159,595
Other intangible assets	5,975		7,462
Premises and equipment, net	82,126		89,008
Affordable housing tax credit investments	60,968		58,711
Accrued interest receivable	34,704		23,413
Other real estate owned	1,354		775
Mortgage loan servicing rights	15,792		15,264
Operating lease right-of-use assets	17,600		13,446
Other	36,201		10,151
Total other assets	787,966		737,741
Total assets	$	9,854,993	$	9,560,254

The accompanying notes are an integral part of the consolidated financial statements.

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Park National Corporation and Subsidiaries

Consolidated Balance Sheets

at December 31, 2022 and 2021

 

(In thousands, except share and per share data)	2022		2021
Liabilities and shareholders’ equity
Deposits:
Non-interest bearing	$	3,074,276	$	3,066,419
Interest bearing	5,160,439		4,838,109
Total deposits	8,234,715		7,904,528
Borrowings:
Short-term borrowings	227,342		238,786
Subordinated notes	188,667		188,210
Total borrowings	416,009		426,996
Other liabilities:
Operating lease liability	19,291		14,339
Accrued interest payable	3,486		3,116
Unfunded commitments in affordable housing tax credit investments	28,132		28,484
Allowance for credit losses on off-balance sheet commitments	5,214		4,282
Other	78,920		67,750
Total other liabilities	135,043		117,971
Total liabilities	8,785,767		8,449,495
Commitments and contingencies
Shareholders’ equity:
Preferred shares (200,000 preferred shares authorized; no preferred shares outstanding at December 31, 2022 and 2021)	$	—	$	—
Common shares, no par value (20,000,000 common shares authorized; 17,623,104 and 17,623,118 common shares issued at December 31, 2022 and 2021, respectively)	462,404		461,800
Accumulated other comprehensive (loss) income, net of taxes	(102,394)		15,155
Retained earnings	847,235		776,294
Less: Treasury shares (1,359,521 and 1,403,555 common shares at December 31, 2022 and 2021, respectively)	(138,019)		(142,490)
Total shareholders’ equity	1,069,226		1,110,759
Total liabilities and shareholders’ equity	$	9,854,993	$	9,560,254

The accompanying notes are an integral part of the consolidated financial statements.

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Park National Corporation and Subsidiaries

Consolidated Statements of Income

for years ended December 31, 2022, 2021 and 2020

 

(In thousands, except per share data)	2022		2021		2020
Interest and dividend income:
Interest and fees on loans	$	323,107	$	317,208	$	328,727
Interest and dividends on:
Debt securities - taxable	36,047		19,458		19,818
Debt securities - tax-exempt	10,964		8,307		8,436
Other interest income	8,129		880		739
Total interest and dividend income	378,247		345,853		357,720
Interest expense:
Interest on deposits:
Demand and savings deposits	17,646		1,595		9,142
Time deposits	3,314		4,711		12,186
Interest on short-term borrowings	1,395		767		1,110
Interest on subordinated notes and long-term debt	8,833		8,887		7,652
Total interest expense	31,188		15,960		30,090
Net interest income	347,059		329,893		327,630
Provision for (recovery of) credit losses	4,557		(11,916)		12,054
Net interest income after provision for (recovery of) credit losses	342,502		341,809		315,576
Other income:
Income from fiduciary activities	34,091		34,449		28,873
Service charges on deposit accounts	10,091		8,832		8,445
Other service income	15,295		29,812		37,611
Debit card fee income	26,046		25,865		22,160
Bank owned life insurance income	6,100		4,897		4,789
ATM fees	2,273		2,379		1,773
Gain (loss) on the sale of OREO, net	5,611		(4)		1,207
OREO valuation markup	12,039		64		105
Net gain on the sale of debt securities	—		—		3,286
Gain on equity securities, net	2,955		5,011		2,182
Other components of net periodic benefit income	12,108		8,152		7,952
Miscellaneous	9,326		10,487		7,281
Total other income	$	135,935	$	129,944	$	125,664

The accompanying notes are an integral part of the consolidated financial statements.

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Park National Corporation and Subsidiaries

Consolidated Statements of Income

for years ended December 31, 2022, 2021 and 2020

 

(In thousands, except per share data)	2022		2021		2020
Other expense:
Salaries	$	133,299	$	125,585	$	128,040
Employee benefits	40,490		41,603		37,115
Occupancy expense	13,866		13,039		13,802
Furniture and equipment expense	11,901		10,887		18,805
Data processing fees	32,627		30,539		11,659
Professional fees and services	30,837		27,450		31,303
Marketing	5,335		6,073		5,828
Insurance	5,413		5,917		6,423
Communication	3,891		3,539		4,084
State tax expense	4,585		4,255		3,991
Amortization of intangible assets	1,487		1,798		2,263
FHLB prepayment penalty	—		—		10,529
Foundation contributions	4,000		4,000		3,000
Miscellaneous	10,247		8,833		9,753
Total other expense	297,978		283,518		286,595
Income before income taxes	180,459		188,235		154,645
Income taxes	32,108		34,290		26,722
Net income	$	148,351	$	153,945	$	127,923
Earnings per common share:
Basic	$	9.13	$	9.45	$	7.85
Diluted	$	9.06	$	9.37	$	7.80

The accompanying notes are an integral part of the consolidated financial statements.

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Park National Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

for years ended December 31, 2022, 2021 and 2020

(In thousands)	2022		2021		2020
Net income	$	148,351	$	153,945	$	127,923
Other comprehensive (loss) income net of income tax:
Defined benefit pension plan:
Amortization of net actuarial (gain) loss and amortization of prior service (cost) credit, net of income tax effect of $(3), $466 and $247, for the years ended December 31, 2022, 2021, and 2020, respectively	(12)		1,754		928
Unrealized net actuarial (loss) gain and prior service (cost) credit, net of income tax effect of $(233), $7,144 and $(2,306), for the years ended December 31, 2022, 2021, and 2020, respectively	(876)		26,875		(8,675)
Change in funded status of defined benefit pension plan, net of income tax effect	(888)		28,629		(7,747)
Debt securities available-for-sale:
Net gain realized on sale of debt securities AFS, net of income tax effect of $(690) for the year ended December 31, 2020	—		—		(2,596)
Change in unrealized holding (loss) gain on debt securities AFS, net of income tax effect of $(31,066), $(5,193) and $6,844, for the years ended December 31, 2022, 2021 and 2020, respectively	(116,867)		(19,537)		25,747
Unrealized net holding (loss) gain on debt securities available-for-sale, net of income tax effect	(116,867)		(19,537)		23,151
Cash flow hedging derivatives:
Unrealized gain (loss) on cash flow hedging derivatives, net of income tax effect of $41, $131 and $(65) for the years ended December 31, 2022, 2021 and 2020, respectively	154		492		(244)
Reclassification adjustment for losses included in net income on cash flow hedging derivatives, net of income tax effect of $14 for the year ended December 31, 2022	52		—		—
Unrealized net holding gain (loss) on cash flow hedging derivatives, net of income tax effect	206		492		(244)
Other comprehensive (loss) income	$	(117,549)	$	9,584	$	15,160
Comprehensive income	$	30,802	$	163,529	$	143,083

The accompanying notes are an integral part of the consolidated financial statements.

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Park National Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

for the years ended December 31, 2022, 2021 and 2020

 

	Preferred Shares			Common Shares			Retained Earnings		Treasury Shares		Accumulated Other Comprehensive (Loss) Income
(In thousands, except share and per share data)	Shares Outstanding	Amount		Shares Outstanding	Amount
Balance, January 1, 2020	—	$	—	16,346,442	$	459,389	$	646,847	$	(127,633)	$	(9,589)
Net income							127,923
Other comprehensive income, net of income tax											15,160
Cash dividends, $4.28 per common share							(70,601)
Cash payment for fractional shares in dividend reinvestment plan				(36)	(3)
Share-based compensation expense					5,998
Issuance of 30,341 common shares under share-based compensation awards, net of 14,038 common shares withheld to pay employee income taxes				30,341	(4,697)		664		3,031
Treasury shares repurchased				(76,000)					(7,507)
Treasury shares reissued for director grants				13,450			(69)		1,343
Balance, December 31, 2020	—	$	—	16,314,197	$	460,687	$	704,764	$	(130,766)	$	5,571
Cumulative effect of change in accounting principle for credit losses, net of income tax							(7,956)
Balance, January 1, 2021, as adjusted	—	$	—	16,314,197	$	460,687	$	696,808	$	(130,766)	$	5,571
Net income							153,945
Other comprehensive income, net of income tax											9,584
Cash dividends, $4.52 per common share							(74,634)
Cash payment for fractional shares in dividend reinvestment plan				(45)	(6)
Share-based compensation expense					6,345
Issuance of 29,670 common shares under share-based compensation awards, net of 18,436 common shares withheld to pay employee income taxes				29,670	(5,226)		(141)		2,964
Treasury shares repurchased				(137,659)					(16,048)
Treasury shares reissued for director grants				13,400			316		1,360
Balance, December 31, 2021	—	$	—	16,219,563	$	461,800	$	776,294	$	(142,490)	$	15,155
Net income							148,351
Other comprehensive loss, net of income tax											(117,549)
Cash dividends, $4.66 per common share							(76,771)
Cash payment for fractional shares in dividend reinvestment plan				(14)	(2)
Share-based compensation expense					5,879
Issuance of 34,245 common shares under share-based compensation awards, net of 21,219 common shares withheld to pay employee income taxes				34,245	(5,273)		(965)		3,477
Treasury shares reissued for director grants				9,789			326		994
Balance, December 31, 2022	—	$	—	16,263,583	$	462,404	$	847,235	$	(138,019)	$	(102,394)

The accompanying notes are an integral part of the consolidated financial statements.

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Park National Corporation and Subsidiaries

Consolidated Statements of Cash Flows

for the years ended December 31, 2022, 2021 and 2020

 

(In thousands)	2022		2021		2020
Operating activities:
Net income	$	148,351	$	153,945	$	127,923
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (recovery of) credit losses	4,557		(11,916)		12,054
Accretion of loan fees and costs, net	(12,085)		(25,185)		(21,598)
Net accretion of purchase accounting adjustments	(334)		(1,519)		(2,403)
Depreciation of premises and equipment	13,819		13,267		10,814
Amortization of investment securities, net	3,666		2,174		1,362
Borrowing prepayment penalty	—		—		10,529
Decrease (increase) in deferred income tax	611		(3,131)		(4,525)
Realized net debt securities gains	—		—		(3,286)
Gain on equity securities, net	(2,955)		(5,011)		(2,182)
Share-based compensation expense	7,199		8,021		7,272
Loan originations to be sold in secondary market	(173,880)		(569,080)		(1,026,346)
Proceeds from sale of loans in secondary market	185,361		609,377		1,031,227
Gain on sale of loans in secondary market	(4,243)		(18,018)		(24,269)
(Gain) loss on sale of OREO, net	(5,611)		4		(1,207)
OREO valuation markup	(12,039)		(64)		(105)
Gain on sale of non-mortgage loans	(495)		—		—
Bank owned life insurance income	(6,100)		(4,897)		(4,789)
Investment in qualified affordable housing tax credits amortization	7,743		7,313		7,046
Changes in assets and liabilities:
Increase in prepaid dealer premiums	(9,422)		(2,415)		(8,890)
(Increase) decrease in other assets	(4,467)		12,406		9,321
Decrease in other liabilities	(4,814)		(7,939)		(6,302)
Net cash provided by operating activities	$	134,862	$	157,332	$	111,646
Investing activities:
Proceeds from redemption/repurchase of Federal Home Loan Bank stock	2,216		8,677		7,970
Proceeds from sales of investment securities	—		934		312,160
Proceeds from calls and maturities of:
AFS debt securities	186,123		232,197		223,728
Purchase of:
AFS debt securities	(317,278)		(953,900)		(354,299)
Equity securities	(9,165)		—		(3,567)
Net decrease in other investments	331		2,597		2,120
Net loan (originations) paydowns, portfolio loans	(271,753)		312,187		(620,200)

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Park National Corporation and Subsidiaries
Consolidated Statements of Cash Flows
for the years ended December 31, 2022, 2021 and 2020
(In thousands)	2022		2021		2020
Proceeds from the sale of non-mortgage loans	4,345		3,718		4,400
Proceeds from the sale of OREO	17,684		758		5,654
Life insurance death benefits	9,587		5,598		1,360
Purchases of bank owned life insurance	(7,500)		—		—
Investment in qualified affordable housing tax credits	(10,352)		(10,814)		(6,596)
Purchases of premises and equipment	(7,937)		(14,093)		(28,632)
Net cash used in investing activities	$	(403,699)	$	(412,141)	$	(455,902)
Financing activities
Net (decrease) increase in deposits	(456,922)		605,168		1,230,073
Net decrease (increase) in off-balance sheet deposits	787,116		(272,952)		(710,101)
Net (decrease) increase in short-term borrowings	(11,444)		(103,444)		111,573
Proceeds from issuance of subordinated notes	—		—		172,620
Repayment of long-term debt	—		(32,500)		(170,529)
Value of common shares withheld to pay employee income taxes	(2,761)		(2,403)		(1,002)
Repurchase of common shares to be held as treasury shares	—		(16,048)		(7,507)
Cash dividends paid	(76,604)		(74,306)		(70,353)
Net cash provided by financing activities	$	239,385	$	103,515	$	554,774
(Decrease) increase in cash and cash equivalents	(29,452)		(151,294)		210,518
Cash and cash equivalents at beginning of year	219,180		370,474		159,956
Cash and cash equivalents at end of year	$	189,728	$	219,180	$	370,474
Cash paid for:
Interest	$	30,818	$	16,704	$	29,157
Federal income taxes	24,670		25,505		24,260
Non cash items:
Loans transferred to OREO	$	13,418	$	150	$	1,790
Non-mortgage loans transferred to held for sale, net	3,890		3,718		4,400
Right-of-use assets obtained in exchange for lease obligations	7,867		1,190		7,821
New commitments in affordable housing tax credit investments	10,000		10,000		10,000
New commitments in other investment securities	16,250		3,000		—

The accompanying notes are an integral part of the consolidated financial statements.

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Notes to Consolidated Financial Statements

1. Summary of Significant Accounting Policies

The following is a summary of significant accounting policies followed in the preparation of the consolidated financial statements:

Principles of Consolidation

The consolidated financial statements include the accounts of Park National Corporation and its subsidiaries (“Park”, the “Company” or the “Corporation”), unless the context otherwise requires. Material intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

The COVID-19 pandemic and subsequent economic uncertainty have caused significant, unprecedented disruption around the world that has affected daily living and negatively impacted the global economy. Additionally, geopolitical conflict (including the conflict in Ukraine) and inflationary pressures have added uncertainty to the overall economic environment. The effects of the COVID-19 pandemic, geopolitical conflict, and inflationary pressures may meaningfully impact significant estimates such as the allowance for credit losses, goodwill, and pension plan obligations and related expenses.

Reclassifications

Certain prior year amounts have been reclassified to conform with the current presentation. These reclassifications had no impact on net income or shareholders' equity.

Restrictions on Cash and Due from Banks

As of March 26, 2020, the Federal Reserve Board eliminated reserve requirements for all depository institutions.There were no compensating balance arrangements in existence at December 31, 2022 or 2021.

Investment Securities

Debt securities are classified upon acquisition into one of three categories: HTM, AFS, or trading (see Note 4 - Investment Securities).

HTM securities are those debt securities that the Corporation has the positive intent and ability to hold to maturity and are recorded at amortized cost. AFS debt securities are those debt securities that would be available to be sold in the future in response to the Corporation’s liquidity needs, changes in market interest rates, and asset-liability management strategies, among other reasons. AFS debt securities are reported at fair value, with unrealized holding gains and losses excluded from earnings, but included in other comprehensive (loss) income, net of applicable income taxes. The Corporation did not hold any trading securities during any period presented.

Interest income from debt securities includes amortization of purchase premium or discount. Premiums and discounts on investment securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable debt securities are amortized to their earliest call date. Gains and losses realized on the sale of debt securities are recorded on the trade date and determined using the specific identification method.

A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days past due. Interest accrued but not received for a security placed on nonaccrual status is reversed against interest income.

ACL - Debt Securities AFS

For debt securities AFS in an unrealized loss position, Park first assesses whether it intends to sell, or it is more likely than not that Park will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through net income. For debt securities AFS that do not meet the aforementioned criteria, Park evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be

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collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes.

Changes in the ACL are recorded as a provision for (or recovery of) credit loss expense. Losses are charged against the ACL when management believes that uncollectibility of a debt security AFS is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on debt securities AFS totaled $12.4 million and $6.3 million at December 31, 2022 and 2021, respectively, and is excluded from the estimate of credit losses.

ACL - HTM Debt Securities

Management measures expected credit losses on HTM debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Park does not currently hold any HTM debt securities.

Equity Securities

Equity securities, included within "Other investment securities" on the Consolidated Balance Sheets, are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment.

Federal Home Loan Bank and Federal Reserve Bank of Cleveland Stock

PNB is a member of the FHLB and the FRB. Members are required to own a certain amount of stock based on their level of borrowings and other factors and may invest in additional amounts. FHLB stock and FRB stock are classified as restricted securities and are carried at their redemption value within "Other investment securities" on the Consolidated Balance Sheets. Impairment is evaluated based on the ultimate recovery of par value. Both cash and stock dividends are reported as income.

Loans Held for Sale

Park has elected the fair value option for mortgage loans held for sale, which are carried at their fair value as of each balance sheet date.

Mortgage Banking Derivatives

Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives.  The fair value of an interest rate lock is recorded at the time the commitment to fund a mortgage loan is executed and is adjusted for the expected exercise of a commitment before a loan is funded.  In order to hedge against a change in interest rates resulting from the Company's commitments to fund loans, the Company enters into forward commitments for the future delivery of mortgage loans.  The fair value of Park's mortgage banking derivatives is estimated based on the change in mortgage interest rates from the date the interest on a loan is locked. The fair value of these mortgage banking derivatives is included in "Loans" in the Consolidated Balance Sheets. Changes in the fair value of these mortgage banking derivatives are included in "Other service income" in the Consolidated Statements of Income.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Accrued interest receivable totaled $22.3 million and $17.1 million at December 31, 2022 and 2021, respectively, and was reported in "Accrued interest receivable" on the Consolidated Balance Sheets. Late charges on loans are recognized as income when they are collected. Net loan origination fees and costs are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) those commercial loans in the construction real estate loan segment; (4) those commercial loans in the residential real estate loan segment; and (5) leases. Consumer loans include: (1) mortgage and installment loans included in the construction real estate segment; (2) mortgage, home equity lines of credit ("HELOCs"), and installment loans included in the residential real estate segment; and (3) all loans included in the consumer segment.

Generally, commercial loans are placed on nonaccrual status at 90 days past due and consumer and residential mortgage loans are placed on nonaccrual status at 120 days past due. The delinquency status of a loan is based on contractual terms and not on

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how recently payments have been received. Park’s charge-off policy for commercial loans requires management to establish a specific reserve or record a charge-off when collection is in doubt and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing a loan. The Company’s charge-off policy for consumer loans is dependent on the class of the loan. Residential mortgage loans, HELOCs, and consumer loans secured by residential real estate are typically charged down to the value of the collateral, less estimated selling costs, at 180 days past due. The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful.

For loans which are on nonaccrual status, it is Park’s policy to reverse interest previously accrued on the loans against interest income. Interest on such loans may be recorded on a cash basis and be included in earnings only when Park expects to receive the entire recorded investment of the respective loans. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below:

Commercial, financial and agricultural: Commercial, financial and agricultural ("C&I") loans are made for a wide variety of general corporate purposes, including financing for commercial and industrial properties, financing for equipment, inventory and accounts receivable, acquisition financing, commercial leasing, and loans originated by consumer finance companies. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. Risk of loss on C&I loans largely depends upon general economic cycles, as they may adversely impact certain industries, competency of the borrower's management team, the quality of the underlying assets supporting the loans including accounts receivable, inventory, and equipment, and the accuracy of the borrower's financial reporting. Such risks are mitigated by generally requiring the borrower's owners to guaranty the loans.

Commercial real estate: Commercial real estate (“CRE”) loans include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate. Risk of loss on CRE loans largely depends upon the cash flow of the properties, which is influenced by the amount of vacancy experienced with respect to underlying real estate, the credit capacity of the tenants occupying the underlying real estate, and general economic trends, as they may adversely impact the value of a property. These risks are mitigated by generally requiring personal guarantees of the owners of the properties and by requiring appraisals pursuant to government regulations.

Construction real estate: The Company defines construction loans as both commercial construction loans and residential construction loans where the loan proceeds are used exclusively for the improvement of real estate. Construction loans may be in the form of a permanent loan or a short-term construction loan, depending on the needs of the individual borrower. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, Park may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, Park may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event that a default on a construction loan occurs and foreclosure follows, Park must take control of the project and attempt to either arrange for completion of construction or dispose of the unfinished project. Additional risks exist with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. Park attempts to reduce such risks on loans to developers by generally requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer.

Residential real estate: The Company defines residential real estate loans as first mortgages on individuals’ primary residences or second mortgages on individuals’ primary residences in the form of HELOCs or installment loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stable employment, an established credit record and a current independent third-party appraisal providing the market value of the real estate securing the loan. Residential real estate loans typically have longer terms and higher balances with lower yields as compared to consumer loans, but generally carry lower risks of default. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires creditors to make a reasonable and good faith determination of a consumer's ability to repay any consumer credit transaction secured by a dwelling. Documentation and verification of income within defined time frames and not-to-exceed limits are bases for affirming ability to repay. Risk of loss largely depends upon factors affecting the borrower's ability to repay as well as the general economic trends as they may adversely impact the value

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of the property. These risks are mitigated by completing a comprehensive underwriting of the borrower and by requiring appraisals pursuant to government regulations.

Consumer: The Company originates direct and indirect consumer loans, primarily automobile loans, to customers in the Company's primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stable employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s financial stability, and thus are more likely to be affected by adverse personal circumstances.

Leases: The Company originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment. Repayment terms are structured such that the lease will be repaid within the economic useful life of the leased asset. Risk of losses on financing leases largely depends upon general economic cycles, as they may adversely impact certain industries, competency of the borrower’s management team, the quality and residual value of the leased asset, and the accuracy of the borrower’s financial reporting. These risks are mitigated by underwriting leases considering primary and secondary sources of repayment and requiring guaranteed residual values.

Concentration of Credit Risk

Park's commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in the 26 Ohio counties, four North Carolina counties, four South Carolina counties and one Kentucky county where PNB operates, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies. The primary industries represented by these customers include real estate rental and leasing, finance and insurance, construction, accommodation and food services, health care and social assistance, other services, manufacturing, retail trade, and agriculture, forestry, fishing and hunting.

PCD Loans

The Company has purchased loans, some of which have shown evidence of credit deterioration since origination. Upon adoption of ASC 326, Park elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. Loans are only removed from the existing pools if they are written off, paid off, or sold. Upon adoption of ASC 326, the allowance for credit losses was determined for each pool and added to the pool's carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the pool and the new amortized cost basis is the noncredit premium or discount, which will be amortized into interest income over the remaining life of the pool. Changes to the allowance for credit losses after adoption are recorded through provision for credit losses expense.

ACL - Loans

The ACL is a valuation account that is deducted from the amortized cost of total loans to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Expected recoveries cannot exceed the aggregate of the amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant and available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical credit loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.

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ACL - Loans - Collectively Evaluated

The ACL is measured on a collective pool basis when similar risk characteristics exist. Park has identified the following portfolio segments and measures the allowance for credit losses using the following methods:

Portfolio Segment	Measurement Method	Loss Driver
Commercial, financial and agricultural
Commercial, financial and agricultural	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
PPP loans	Other	Not Applicable
Overdrafts	Historical Loss Experience	Not Applicable
Commercial real estate	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Construction real estate:
Commercial	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Retail	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Residential real estate:
Commercial	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
Mortgage	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
HELOC	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
Installment	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
Consumer:
Consumer	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
GFSC	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Check loans	Historical Loss Experience	Not Applicable
Leases	Remaining Life	Not Applicable

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by Park.

In general, Park utilized a DCF method to estimate the quantitative portion of the allowance for credit losses for loans evaluated on a collective pooled basis. For each segment, a LDA was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA utilized Park's own Federal Financial Institutions Examination Council's ("FFIEC") Call Report data for the commercial, financial and agricultural and residential real estate segments. Peer data was incorporated into the analysis for the commercial real estate, construction real estate, and consumer segments.

In creating the DCF model, Park established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average. Park's policy is to utilize its own data, which includes loan-level loss data from 2013 through December 31, 2022, whenever possible. Park and peer FFIEC Call Report data are utilized when there are insufficient defaults for a statistically sound calculation, or if Park does not have its own loan-level detail reflecting similar economic conditions as the forecasted loss drivers.

Key inputs into the DCF model include loan-level detail, including the amortized cost basis of individual loans, payment structure, loss history, and forecasted loss drivers. Park utilizes a third party to provide economic forecasts under various scenarios, which are weighted in order to reflect model risk in the then current economic environment. The weighting of the scenarios is evaluated on a quarterly basis considering the various scenarios in the context of the then current economic environment and presumed risk of loss.

Additional key assumptions in the DCF model include the PD, LGD, and prepayment/curtailment rates. When possible, Park utilizes its own PDs for the reasonable and supportable forecast period. When it is not possible to use Park's own PDs, the LDA is utilized to determine PDs based on the forecasted economic factors. In all cases, the LDA is then utilized to determine the long-term historical average, which is reached over the reversion period. When possible, Park's utilizes its own LGDs for the

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reasonable and supportable forecast period. When it is not possible to use Park's own LGDs, the LGD is derived using a method referred to as Frye Jacobs. The Frye Jacobs method is a mathematical formula that traces the relationship between LGD and PD over time and projects the LGD based on the level of PD forecasted. In all cases, the Frye Jacobs method is utilized to calculate LGDs during the reversion period and long-term historical average. Prepayment and curtailment rates were calculated based on Park's own data utilizing a three-year average.

When the discounted cash flow method is used to determine the allowance for credit losses, management incorporates expected prepayments to determine the effective interest rate utilized to discount expected cash flow.

Park reviews various internal and external factors to consider the need for any qualitative adjustments to the quantitative model. Factors considered include the following:

•The nature and volume of Park’s financial assets;

•The existence, growth, and effect of any concentrations of credit;

•The volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets;

•Park’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries;

•The quality of Park's credit review function;

•The experience, ability, and depth of Park’s lending, investment, collection, and other relevant management and staff;

•The effect of other external factors such as the regulatory, legal and technological environments, competition, geopolitical conflict, and events such as natural disasters or pandemics;

•Actual and expected changes in international, national, regional, and local economic and business conditions and developments in the markets in which Park operates that affect the collectibility of financial assets;

•Where the U.S. economy is within a given credit cycle; and

•The extent that there is government assistance (stimulus).

Allowance for Credit Losses - Loans - Individually Evaluated

Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. Park has determined that any commercial loans which have been placed on nonaccrual status or classified as TDRs are to be individually evaluated. Individual analysis establishes a specific reserve for loans in scope.  Specific reserves on individually evaluated commercial loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate.

Allowance for Credit Losses - Off-Balance Sheet Credit Exposures

Park estimates expected credit losses over the contractual period in which Park is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by Park. The allowance for credit losses on off-balance sheet credit exposures is adjusted within "Miscellaneous other expense" on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over the commitments' respective estimated lives. Funding rates are based on a historical analysis of Park's portfolio, while estimates of credit losses are determined using the same loss rates as funded loans.

Troubled Debt Restructurings ("TDRs")

Management classifies loans as TDRs when a borrower is experiencing financial difficulty and Park has granted a concession. 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 under 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, during the COVID-19 pandemic, Park 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 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. A majority of these modifications were 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 were considered current and continued to accrue interest during the deferral period.

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Bank Owned Life Insurance

Park has purchased insurance policies on the lives of directors and certain key officers. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over net identifiable tangible and intangible assets acquired in a purchase business combination. Goodwill is not amortized to expense, but is subject to impairment tests annually, or more frequently, if events or changes in circumstances indicate that the asset might be impaired, by assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing these events or circumstances, it is concluded that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the performance of additional analysis is unnecessary. If the carrying amount of the goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess, not to exceed the total goodwill allocated to the reporting unit.

Other intangible assets consist of core deposit intangibles. Core deposit intangibles are amortized on an accelerated basis over a period of ten years. 

Premises and Equipment

Land is carried at cost and is not subject to depreciation. Premises and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the remaining lease period or the estimated useful lives of the improvements. Upon the sale or other disposal of an asset, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are charged to expense as incurred while renewals and improvements that extend the useful life of an asset are capitalized. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.

The range of depreciable lives over which premises and equipment are being depreciated are:

 

Buildings	30 Years
Building improvements	5 to 10 Years
Equipment, furniture and fixtures	3 to 12 Years
Software	3 Years or the contractual useful life of the software
Leasehold improvements	Shorter of the remaining lease period or the estimated useful life of the improvement

Other Real Estate Owned

Management transfers a loan to OREO at the time that Park takes deed/title to the asset. OREO is initially recorded at fair value less anticipated selling costs (net realizable value), establishing a new cost basis, and consists of property acquired through foreclosure and real estate held for sale. If the net realizable value is below the carrying value of the loan at the date of transfer, the difference is charged to the allowance for credit losses. If the net realizable value is above the carrying value of the loan at the date of transfer, any charged-off amounts are recovered and any additional amount is recorded within the line item "OREO valuation markup." These assets are subsequently accounted for at the lower of cost or fair value less costs to sell. Subsequent changes in the value of real estate are classified as OREO valuation adjustments, are reported as adjustments to the carrying amount of OREO, and recorded within the line item “Miscellaneous income". In certain circumstances where management believes the devaluation may not be permanent in nature, Park utilizes a valuation allowance to record OREO devaluations, which is expensed through the line item “Miscellaneous income". Costs relating to development and improvement of such properties are capitalized (not in excess of fair value less estimated costs to sell), and costs relating to holding the properties are charged to the line item "Miscellaneous expense".

Foreclosed Assets

Foreclosed assets include non-real estate assets where Park, as creditor, has received physical possession of a borrower’s assets, regardless of whether formal foreclosure proceedings take place.  Additionally, TDRs in which Park obtains one of more of the debtor’s non-real estate assets in place of all or part of the receivable are accounted for as foreclosed assets.  Foreclosed assets are initially recorded as fair value less costs to sell when acquired, establishing a new cost basis.  Operating costs after acquisition are expensed as incurred. As of December 31, 2022 and 2021, Park had $605,000 and $3.3 million, respectively, of foreclosed assets included within “Other assets.”

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Mortgage Servicing Rights

When Park sells mortgage loans with servicing retained, MSRs are recorded at fair value with the income statement effect recorded in "Other service income". Capitalized MSRs are amortized in proportion to and over the period of the estimated future servicing income of the underlying loan and are included within “Other service income”.

MSRs are assessed for impairment quarterly, based on fair value, with any impairment recognized through a valuation allowance. The fair value of MSRs is determined by discounting estimated future cash flows from the servicing assets, using market discount rates and expected future prepayment rates. In order to calculate fair value, the sold loan portfolio is stratified into homogeneous pools of like categories. (See Note 12 - Loan Servicing.)

Fees received for servicing mortgage loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in income as loan payments are received. The amortization of MSRs is netted against loan servicing fee income and recorded in "Other service income". 

Leases

Management determines if an arrangement is or contains a lease at contract inception. If an arrangement is determined to be or contain a lease, Park recognizes a ROU asset and a lease liability at the lease commencement date. Leases are classified as operating or finance leases at the lease commencement date. At December 31, 2022 and 2021, all of Park's leases were classified as operating leases.

Park elected the practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease components. Additionally, Park has elected not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. Park recognizes the lease payments associated with its short-term leases as an expense on a cash basis.

Park’s lease liability is initially and subsequently measured as the present value of the unpaid lease payments at the lease commencement date. Key estimates and judgments related to the lease liability include how management determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) the lease term, and (3) lease payments.

•ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, Park's management cannot determine the interest rate implicit in a lease because it does not have access to the lessor’s estimated residual value or the amount of the lessor’s deferred initial direct costs. Therefore, Park utilizes its incremental borrowing rate as the discount rate for leases. Park’s incremental borrowing rate for a lease is the rate of interest Park would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. To manage its capital and liquidity needs, Park periodically obtains wholesale funding from the FHLB on an over-collateralized basis. The impact of utilizing an interest rate on an over-collateralized borrowing versus a fully collateralized borrowing is not material. Therefore, the FHLB yield curve was selected by Park's management as a baseline to determine Park’s discount rates for leases.

•The lease term for all of Park's leases includes the noncancellable period of the lease plus any additional periods covered by either Park's option to extend (or not to terminate) the lease that Park is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. If a lease contract contains multiple renewal options, Park's management generally models lease cash flows through the first renewal option period unless the contract contains economic incentives or other conditions that increase or decrease the likelihood that additional renewals are reasonably certain to be exercised.

•Lease payments included in the measurement of the lease liability are comprised of the following:

◦Fixed payments, including in-substance fixed payments, owed over the lease term;

◦For certain of Park's gross real estate leases, non-lease components such as real estate taxes, insurance, and common area maintenance; and

◦Variable lease payments that depend on an index or rate, initially measured using the index or rate at the lease commencement date.

The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

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Consolidated Statements of Cash Flows

Cash and cash equivalents include cash and cash items, amounts due from banks, and money market instruments. Generally, money market instruments are purchased and sold for one-day periods.

Loss Contingencies

Park is routinely engaged in various litigation and other legal matters. These include defending against claims of improper loan, deposit account, and other banking practices, as well as trust and investment, intellectual property, contract, and other legal matters, and Park has a number of unresolved lawsuits and open matters pending resolution. In addition, Park is party to litigation involving the collection of delinquent accounts, challenges to security interests in collateral, foreclosure lawsuits, and similar matters which are part of, or incidental to, the ordinary course of business. While the ultimate liability with respect to these matters and claims cannot be determined at this time, management believes that losses, damages, or liabilities, if any, and other amounts relating to pending matters are not likely to be material to Park's consolidated financial position or results of operations. Reserves are established for these various litigation and other legal matters, when appropriate under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel.

Income Taxes

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The benefit recognized for a tax position that meets the “more-likely-than-not” criteria is measured based on the largest benefit that is more than 50 percent likely to be realized, taking into consideration the amounts and probabilities of the outcome upon settlement. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. Park recognizes any interest and penalties related to income tax matters in income tax expense.

Treasury Shares

The purchase of Park’s common shares to be held in treasury is recorded at cost. At the date of retirement or subsequent reissuance, the treasury shares account is reduced by the weighted average cost of the common shares retired or reissued.

Dividend Restriction

Banking regulations require the maintenance of certain capital levels and may limit the dividends paid by a bank to its parent holding company or by the parent holding company to its shareholders.  (See Note 25 - Dividend Restrictions and Note 28 - Capital Ratios.)

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on debt securities available for sale, changes in the funded status of the Company’s defined benefit pension plan and unrealized gains and losses on cash flow hedges which are also recognized as separate components of equity.

Share-Based Compensation

Compensation cost is recognized for restricted stock units and stock awards issued to employees and directors, respectively, based on the fair value of these awards at the date of grant. The market price of Park’s common shares at the date of grant is used to estimate the fair value of restricted stock units and stock awards. Compensation cost is recognized on a straight-line basis over the required service period, generally defined as the vesting period and is recorded in "Salaries" expense. (See Note 20 - Share-Based Compensation.) The Company's accounting policy is to recognize forfeitures as they occur.

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 27 - Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding

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interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Derivatives

At the inception of a derivative contract, Park designates the derivative as one of three types based on Park's intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). Park does not have any fair value hedges. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into net income in the same periods during which the hedged transaction affects net income. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in net income, as non-interest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the Consolidated Statements of Cash Flow under the same item as the cash flows of the items being hedged.

Park formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking the hedge transaction at the inception of the hedging relationship. The documentation includes linking cash flow hedges to specific assets and liabilities on the Consolidated Balance Sheets. Park also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used are highly effective in offsetting changes in cash flows of the hedged items. Park discontinues hedge accounting when it determines that a derivative is no longer effective in offsetting cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into net income over the same periods that the hedged transactions will affect earnings.

The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the outstanding contracts. All the contracts to which the Company is party settle monthly or quarterly.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain the transferee from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Retirement Plans

Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. The service cost component of pension expense is recorded within "Employee benefits" on the Consolidated Statements of Income. All other components of pension expense are recorded within "Other components of net periodic benefit income" on the Consolidated Statements of Income. Employee KSOP plan expense is the amount of matching contributions to Park's Employees Stock Ownership Plan. Deferred compensation and supplemental retirement plan expense allocate the benefits over years of service. (See Note 21 - Benefit Plans.)

Earnings Per Common Share

Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under restricted stock unit awards. (See Note 20 - Share-Based Compensation and Note 24 - Earnings Per Common Share.)

Operating Segments

The Corporation is a financial holding company headquartered in Newark, Ohio. The reportable segment for the Corporation is its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio).

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2. Adoption of New Accounting Pronouncements and Issued But Not Yet Effective Accounting Standards

The following is a summary of new accounting pronouncements impacting Park's consolidated financial statements, and accounting standards that have been issued but were not effective for Park as of December 31, 2022:

Adoption of New Accounting Pronouncements

ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments: Effective January 1, 2021, Park adopted ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") ("ASC 326"), as amended. The accounting guidance in ASU 2016-13 replaces the incurred loss methodology with an expected loss methodology, which is referred to as the current expected credit loss ("CECL") methodology. The CECL methodology is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, HTM debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments), and net investments in leases recognized by a lessor. The CECL methodology requires an entity to estimate credit losses over the life of an asset or off-balance sheet credit exposure.

Park adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning on and after January 1, 2021 are presented under ASC 326, while prior period amounts continue to be reported in accordance with the then applicable U.S. GAAP. Park recorded a net decrease to retained earnings of $8.0 million as of January 1, 2021 for the cumulative effect of adopting ASC 326.

Park adopted ASC 326 using the prospective transition approach for financial assets PCD that were previously classified as PCI and accounted for under ASC 310-30. In accordance with ASC 326, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2021, the amortized cost basis of the PCD assets was adjusted to reflect the addition of $52,000 to the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2021.

As permitted by ASC 326, Park elected to maintain pools of loans accounted for under ASC 310-30. In accordance with ASC 326, management did not reassess whether modifications to individual acquired financial assets accounted for in pools were TDRs as of the date of adoption.

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The following table illustrates the impact of ASC 326:

	January 1, 2021
(In thousands)	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
Assets:
Loans	$	7,177,666	$	7,177,785	$	(119)
ACL on loans
Commercial, financial and agricultural	17,351		25,608		(8,257)
Commercial real estate	25,599		23,480		2,119
Construction real estate	5,390		7,288		(1,898)
Residential real estate	14,484		11,363		3,121
Consumer	28,343		17,418		10,925
Leases	598		518		80
Total ACL on loans	$	91,765	$	85,675	$	6,090
Liabilities:
ACL on off-balance sheet commitments	$	3,982	$	116	$	3,866
Net deferred tax liability	777		2,892		(2,115)
Shareholders' equity:	$	1,032,300	$	1,040,256	$	(7,956)

ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effect of Reference Rate Reform on Financial Reporting: In March 2020, the FASB issued ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effect of Reference Rate Reform on Financial Reporting. The amendments in this ASU provide optional expedients and exceptions to applying GAAP to contracts, hedging relationships and other transactions impacted by reference rate reform if certain criteria are met. The amendments in this ASU were officially effective as of March 12, 2020 through December 31, 2022 but were extended by ASU 2022-06 as described below. The adoption of this guidance did not have a material impact on Park's consolidated financial statements, but Park will consider this guidance as contracts are transitioned from LIBOR to another reference rate.

Staff Accounting Bulletin ("SAB") No. 121: In March 2022, the SEC issued SAB No. 121. This SAB adds interpretive guidance for entities to consider when they have obligations to safeguard crypto-assets held for their platform users. Specifically, this SAB provides interpretive guidance on the accounting and disclosure of obligations to safeguard crypto-assets held for platform users. This guidance was applicable no later than the financial statement covering the first interim or annual period ending after June 15, 2022. Management reviewed its business activities as of the date of adoption, June 30, 2022, and determined that SAB 121 was not materially impactful to the consolidated financial statements. Management has continued to monitor the impact of the guidance on a quarterly basis and determined that SAB 121 was not materially impactful to the financial statements at December 31, 2022.

ASU 2022-06 - Reference Rate Reform (Topic 848) Deferral of the Sunset Date of Topic 848: In December 2022, the FASB issued ASU 2022-06 - Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. ASU 2022-06 was issued to extend the period of time preparers can use the reference rate reform relief guidance under the ASC Topic 848 from December 31, 2022 to December 31, 2024. The FASB had previously included a sunset provision within Topic 848 based on expectations of when the LIBOR would cease being published. At the time that ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effect of Reference Rate Reform on Financial Reporting was issued, the UK Financial Conduct Authority had established the intent that it would no longer be necessary for banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022, 12 months after the expected cessation date of all currencies and tenors of LIBOR. In March 2021, the UK Financial Conduct Authority announced that the intended cessation date of LIBOR would be June 30, 2023, which is beyond the current sunset date of Topic 848. The amendments of ASU

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2022-06 were effective immediately. The adoption of this guidance did not have a material impact on Park's consolidated financial statements, but Park will consider this guidance as contracts are transitioned from LIBOR to another reference rate.

Issued But Not Yet Effective Accounting Standards

ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures: In March 2022, FASB issued ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructuring and Vintage Disclosures. ASU 2022-02 eliminates the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the amendments in this ASU require that public business entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost.

For entities, like Park, that have adopted the amendments in ASU 2016-13, the amendments in ASU 2022-02 are effective for fiscal years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. An entity may elect to adopt the loan modification guidance and related disclosure enhancements separately from the amendments related to vintage disclosures. The amendments in ASU 2022-02 are to be applied prospectively, except for the amendments related to the recognition and measurement of TDRs which may be applied prospectively, or using a modified retrospective transition method. The adoption by Park of ASU 2022-02 on January 1, 2023 is not expected to have a material impact on the consolidated financial statements but will impact future disclosure requirements and reduce individually evaluated loan totals.

3. Organization

Park National Corporation is a financial holding company headquartered in Newark, Ohio. Through PNB, Park is engaged in a general commercial banking and trust business, primarily in Ohio, Kentucky, North Carolina, and South Carolina, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies. PNB is headquartered in Newark, Ohio. A wholly-owned subsidiary of Park, GFSC is a consumer finance company located in Central Ohio.

Through February 16, 2012, Park operated a second banking subsidiary, Vision Bank ("Vision"), which was engaged in a general commercial banking business, primarily in Baldwin County, Alabama and the panhandle of Florida. Promptly following the sale of the Vision business to Centennial Bank (a wholly-owned subsidiary of Home BancShares, Inc.), Vision surrendered its Florida banking charter to the Florida Office of Financial Regulation and became a non-bank Florida corporation. Vision (the Florida corporation) merged with and into a wholly-owned, non-bank subsidiary of Park, SEPH, with SEPH being the surviving entity. SEPH holds the remaining assets and liabilities retained by Vision subsequent to the sale to Centennial Bank. SEPH also holds OREO that had previously been transferred to SEPH from Vision. SEPH's assets consist primarily of nonperforming loans and OREO. This non-bank subsidiary represents a run off portfolio of the legacy Vision assets.

PNB provides the following principal services: the acceptance of deposits for demand, savings and time accounts; commercial, industrial, consumer and real estate lending, including installment loans, credit cards (which are largely offered through a third party), home equity lines of credit and commercial leasing; trust and wealth management services; cash management; safe deposit operations; electronic funds transfers; and a variety of additional banking-related services. See Note 29 - Segment Information for financial information on the Corporation’s operating segments.

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4. Investment Securities

"Debt securities" and "Other investment securities" are summarized below.

Debt Securities

The following table summarizes the amortized cost and fair value of debt securities at December 31, 2022 and December 31, 2021 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive (loss) income.

 

(In thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
2022:
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities	$	39,000	$	—	$	1,787	$	37,213
Obligations of states and political subdivisions	423,285		1,620		18,194		406,711
U.S. Government sponsored entities’ asset-backed securities	839,399		—		82,638		756,761
Collateralized loan obligations	535,518		—		18,979		516,539
Corporate debt securities	17,650		—		1,178		16,472
Total	$	1,854,852	$	1,620	$	122,776	$	1,733,696

(In thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
2021:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions	$	366,933	$	22,682	$	24	$	389,591
U.S. Government sponsored entities’ asset-backed securities	849,114		13,437		8,088		854,463
Collateralized loan obligations	500,066		3		1,395		498,674
Corporate debt securities	11,250		169		7		11,412
Total	$	1,727,363	$	36,291	$	9,514	$	1,754,140

All debt securities were classified as AFS at December 31, 2022 and December 31, 2021.

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The following table provides detail on investment securities in an unrealized loss position for which an allowance for credit losses had not been recorded at December 31, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position:

 

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2022:
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities	$	37,213	$	1,787	$	—	$	—	$	37,213	$	1,787
Obligations of states and political subdivisions	270,905		18,194		—		—		270,905		18,194
U.S. Government sponsored entities’ asset-backed securities	446,423		27,507		310,338		55,131		756,761		82,638
Collateralized loan obligations	415,491		15,446		101,048		3,533		516,539		18,979
Corporate debt securities	7,388		862		1,684		316		9,072		1,178
Total	$	1,177,420	$	63,796	$	413,070	$	58,980	$	1,590,490	$	122,776

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2021:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions	$	1,834	$	24	$	—	$	—	$	1,834	$	24
U.S. Government sponsored entities’ asset-backed securities	333,653		4,996		73,431		3,092		407,084		8,088
Collateralized loan obligations	429,671		1,395		—		—		429,671		1,395
Corporate debt securities	2,243		7		—		—		2,243		7
Total	$	767,401	$	6,422	$	73,431	$	3,092	$	840,832	$	9,514

At December 31, 2022, Park’s debt security portfolio consisted of $1.7 billion of securities, $1.6 billion of which were in an unrealized loss position with unrealized losses of $122.8 million. Of the $1.6 billion of securities in an unrealized loss position, $413.1 million were in an unrealized loss position for 12 months or longer. Of the $122.8 million in unrealized losses, an aggregate of $84.4 million were related to Park's "Obligations of U.S. Government sponsored entities" portfolio and Park's "U.S. Government sponsored entities' asset-backed securities" portfolio. For non-agency debt securities, Park verified that the current credit ratings remain above investment grade. Management periodically reviews the credit profile of each non-agency debt security and assesses whether any impairment to the contractually obligated cash flow is likely to occur. Based on these reviews, management has concluded that the underlying creditworthiness for each security remains sufficient to maintain required payment obligations and, therefore, unrealized losses have not been recognized into net income. Management does not intend to sell, and it is not more likely than not that management would be required to sell, the securities prior to their anticipated recovery in respect of the unrealized losses. Management believes the value will recover as the securities approach maturity or market rates change.

There was no allowance for credit losses recorded for debt securities AFS at December 31, 2022 and December 31, 2021. Additionally, for the years ended December 31, 2022, 2021, and 2020, there were no credit-related investment impairment losses recognized.

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The amortized cost and estimated fair value of investments in debt securities at December 31, 2022, are shown in the following table by contractual maturity, except for asset-backed securities and collateralized loan obligations, which are shown as a single total, due to the unpredictability of the timing in principal repayments. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

(In thousands)	Amortized Cost		Fair Value		Tax Equivalent Yield (1)
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities
Due one through five years	$	39,000	$	37,213	2.37	%
Obligations of states and political subdivisions
Due one through five years	$	2,289	$	2,278	2.97	%
Due five through ten years	271,564		271,658		3.68	%
Due greater than ten years	149,432		132,775		3.15	%
Total	$	423,285	$	406,711	3.49	%
U.S. Government sponsored entities’ asset-backed securities	$	839,399	$	756,761	1.91	%
Collateralized loan obligations	$	535,518	$	516,539	6.30	%
Corporate debt securities
Due five through ten years	$	17,650	$	16,472	3.89	%

(1) The tax equivalent yield for obligations of states and political subdivisions includes the effects of a taxable equivalent adjustment using a 21% federal corporate income tax rate.

At December 31, 2022, investment securities with an amortized cost of $452.2 million were pledged for government and public fund deposits, $353.0 million were pledged to secure repurchase agreements and $7.2 million were pledged as collateral for FHLB advance borrowings. At December 31, 2021, investment securities with an amortized cost of $396.3 million were pledged for government and public fund deposits, $327.9 million were pledged to secure repurchase agreements and $9.5 million were pledged as collateral for FHLB advance borrowings.

At December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

There were no sales of AFS debt securities during 2022 and 2021. During 2020, Park sold certain AFS debt securities with a book value of $112.5 million at a gross loss of $64,000 and sold certain AFS debt securities with a book value of $196.4 million at a gross gain of $3.4 million.

Other Investment Securities

Other investment securities (as shown on the Consolidated Balance Sheets) consist of restricted stock investments in the FHLB and the FRB, and equity securities. The FHLB and FRB restricted stock investments are carried at their redemption value. Equity securities with a readily determinable fair value are carried at fair value. Equity securities without a readily determinable fair value are recorded at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions ("modified cost"). Park's portfolio of equity investments in limited partnerships which provide mezzanine funding ("Partnership Investments") are valued using the net asset value practical expedient in accordance with ASC 820.

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The carrying amount of other investment securities at December 31, 2022 and 2021 was as follows:

(In thousands)	December 31, 2022		December 31, 2021
FHLB stock	$	11,197	$	13,413
FRB stock	14,653		14,653
Equity investments carried at fair value	1,859		2,129
Equity investments carried at modified cost (1)	14,725		4,689
Equity investments carried at net asset value	44,657		26,384
Total other investment securities	$	87,091	$	61,268

(1) There have been no impairments or downward adjustments made to equity investments carried at modified cost. An upward adjustment of $871,000 was recorded during the year ended December 31, 2022 as a result of observable price changes. There were no adjustments recorded during the year ended December 31, 2021 as a result of observable price changes.

During the year ended December 31, 2022, the FHLB repurchased 22,160 shares of FHLB stock with a book value of $2.2 million. During the year ended December 31, 2021, the FHLB repurchased 86,770 shares of FHLB stock with a book value of $8.7 million. During the year ended December 31, 2020, the FHLB repurchased 79,697 shares of FHLB stock with a book value of $8.0 million. No shares of FRB stock were purchased or sold in any of the years ended December 31, 2022, 2021, or 2020.

For the years ended December 31, 2022, 2021 and 2020, $601,000, $552,000 and $(239,000), respectively, of gains (losses) on equity investments carried at fair value were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.

For the years ended December 31, 2022, 2021 and 2020, $2.4 million, $4.5 million and $2.4 million, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.

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5. Loans

The composition of the loan portfolio at December 31, 2022 and December 31, 2021 was as follows:

 

	December 31, 2022		December 31, 2021
(In thousands)	Amortized Cost		Amortized Cost
Commercial, financial and agricultural: (1)
Commercial, financial and agricultural (1)	$	1,295,238	$	1,223,079
PPP loans	4,206		74,420
Overdrafts	1,489		1,127
Commercial real estate (1)	1,794,054		1,801,792
Construction real estate:
Commercial	208,982		214,561
Retail	116,433		107,225
Residential real estate:
Commercial	550,183		533,802
Mortgage	1,075,446		1,033,658
HELOC	167,151		165,605
Installment	4,091		5,642
Consumer:
Consumer	1,902,557		1,685,793
GFSC	274		1,793
Check loans	2,150		2,093
Leases	19,637		20,532
Total	$	7,141,891	$	6,871,122
Allowance for credit losses	(85,379)		(83,197)
Net loans	$	7,056,512	$	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 years ended December 31, 2022, December 31, 2021, and December 31, 2020, $3.0 million, $16.3 million, and $13.7 million, respectively, of PPP fee income was recognized within loan interest income.

Loans are shown net of deferred origination fees, costs and unearned income of $18.2 million at December 31, 2022, and of $19.5 million at December 31, 2021, which represented a net deferred income position in both years. At December 31, 2022 and December 31, 2021, included in the net deferred origination fees, costs and unearned income were $68,000 and $2.8 million, respectively, in net origination fees related to PPP loans. At December 31, 2022 and December 31, 2021, loans included purchase accounting adjustments of $2.5 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 $1.5 million and $1.1 million were reclassified to loans at December 31, 2022 and December 31, 2021, respectively.

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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 December 31, 2022 and December 31, 2021:

 

	December 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	$	38,158	$	3,261	$	—	$	41,419
PPP loans	—		—		389		389
Overdrafts	—		—		—		—
Commercial real estate	24,504		7,919		—		32,423
Construction real estate:
Commercial	1,712		—		—		1,712
Retail	1,254		12		—		1,266
Residential real estate:
Commercial	1,894		298		—		2,192
Mortgage	9,260		6,750		182		16,192
HELOC	1,133		187		7		1,327
Installment	51		1,037		—		1,088
Consumer:
Consumer	1,012		670		703		2,385
GFSC	10		—		—		10
Check loans	—		—		—		—
Leases	708		—		—		708
Total loans	$	79,696	$	20,134	$	1,281	$	101,111

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	December 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	$	13,271	$	9,396	$	—	$	22,667
PPP loans	—		—		793		793
Overdrafts	—		—		—		—
Commercial real estate	40,142		7,713		—		47,855
Construction real estate:
Commercial	52		169		—		221
Mortgage	716		9		—		725
Residential real estate:
Commercial	2,366		240		—		2,606
Mortgage	11,718		7,779		372		19,869
HELOC	1,590		803		—		2,393
Installment	82		1,508		—		1,590
Consumer
Consumer	1,518		700		431		2,649
GFSC	79		6		11		96
Check loans	—		—		—		—
Leases	1,188		—		—		1,188
Total loans	$	72,722	$	28,323	$	1,607	$	102,652

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The following tables provide additional detail on nonaccrual loans and the related ACL, by class of loan, at December 31, 2022 and December 31, 2021:

	December 31, 2022
(In thousands)	Nonaccrual Loans With No ACL		Nonaccrual Loans With an ACL		Related ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	28,291	$	9,867	$	3,440
PPP loans	—		—		—
Overdrafts	—		—		—
Commercial real estate	22,965		1,539		130
Construction real estate:
Commercial	1,712		—		—
Retail	—		1,254		19
Residential real estate:
Commercial	1,894		—		—
Mortgage	—		9,260		85
HELOC	—		1,133		191
Installment	—		51		17
Consumer
Consumer	—		1,012		283
GFSC	—		10		1
Check loans	—		—		—
Leases	680		28		9
Total loans	$	55,542	$	24,154	$	4,175

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	December 31, 2021
(In thousands)	Nonaccrual Loans With No ACL		Nonaccrual Loans With an ACL		Related ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	11,494	$	1,777	$	1,343
PPP loans	—		—		—
Overdrafts	—		—		—
Commercial real estate	39,151		991		188
Construction real estate:
Commercial	52		—		—
Retail	—		716		67
Residential real estate:
Commercial	2,366		—		—
Mortgage	—		11,718		73
HELOC	—		1,590		99
Installment	—		82		24
Consumer
Consumer	—		1,518		393
GFSC	—		79		10
Check loans	—		—		—
Leases	914		274		43
Total loans	$	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 December 31, 2022 and December 31, 2021:

	December 31, 2022
(In thousands)	Real Estate		Business Assets		Other		Total
Commercial, financial and agricultural
Commercial, financial and agricultural	$	8,242	$	7,788	$	23,125	$	39,155
Commercial real estate	35,908		28		—		35,936
Construction real estate:
Commercial	2,372		—		—		2,372
Residential real estate:
Commercial	2,479		—		—		2,479
Mortgage	90		—		—		90
Leases	—		708		—		708
Total loans	$	49,091	$	8,524	$	23,125	$	80,740

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	December 31, 2021
(In thousands)	Real Estate		Business Assets		Other		Total
Commercial, financial and agricultural
Commercial, financial and agricultural	$	9,321	$	13,366	$	156	$	22,843
Commercial real estate	52,901		37		—		52,938
Construction real estate:
Commercial	1,178		—		—		1,178
Residential real estate:
Commercial	2,906		—		57		2,963
Mortgage	370		—		—		370
HELOC	148		—		—		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. The following table presents interest income recognized on nonaccrual loans for the years ended December 31, 2022 and 2021:

	Interest Income Recognized
(In thousands)	December 31, 2022		December 31, 2021
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	438	$	180
PPP loans	—		—
Overdrafts	—		—
Commercial real estate	956		1,844
Construction real estate:
Commercial	32		39
Retail	13		4
Residential real estate:
Commercial	88		204
Mortgage	157		301
HELOC	16		17
Installment	3		2
Consumer:
Consumer	54		92
GFSC	5		14
Check loans
Leases	33		73
Total loans	$	1,795	$	2,770

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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 year ended December 31, 2020:

	December 31, 2020
(In thousands)	Recorded Investment		Average Recorded Investment		Interest Income Recognized
Commercial, financial and agricultural	$	28,836	$	30,280	$	735
Commercial real estate	70,357		55,279		1,890
Construction real estate:
Commercial	3,110		1,291		50
Residential real estate:
Commercial	4,557		4,329		204
Consumer	—		—		—
Leases	1,595		1,115		—
Total	$	108,455	$	92,294	$	2,879

The following tables present the aging of the amortized cost in past due loans at December 31, 2022 and December 31, 2021 by class of loan:

	December 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	$	378	$	9,246	$	9,624	$	1,285,614	$	1,295,238
PPP loans	155		389		544		3,662		4,206
Overdrafts	—		—		—		1,489		1,489
Commercial real estate	737		4,738		5,475		1,788,579		1,794,054
Construction real estate:
Commercial	751		—		751		208,231		208,982
Retail	1,035		523		1,558		114,875		116,433
Residential real estate:
Commercial	519		477		996		549,187		550,183
Mortgage	7,630		5,157		12,787		1,062,659		1,075,446
HELOC	832		587		1,419		165,732		167,151
Installment	57		4		61		4,030		4,091
Consumer:
Consumer	5,451		964		6,415		1,896,142		1,902,557
GFSC	48		—		48		226		274
Check loans	2		—		2		2,148		2,150
Leases	—		—		—		19,637		19,637
Total loans	$	17,595	$	22,085	$	39,680	$	7,102,211	$	7,141,891

(1) Includes an aggregate of $1.3 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.

(2) Includes an aggregate of $58.9 million of nonaccrual loans which were current in regards to contractual principal and interest payments.

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	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 loans	242		793		1,035		73,385		74,420
Overdrafts	—		—		—		1,127		1,127
Commercial real estate	65		1,461		1,526		1,800,266		1,801,792
Construction real estate:
Commercial	—		—		—		214,561		214,561
Mortgage	346		660		1,006		106,219		107,225
Residential real estate:
Commercial	283		438		721		533,081		533,802
Mortgage	6,170		5,933		12,103		1,021,555		1,033,658
HELOC	565		1,011		1,576		164,029		165,605
Installment	49		31		80		5,562		5,642
Consumer
Consumer	2,614		618		3,232		1,682,561		1,685,793
GFSC	153		52		205		1,588		1,793
Check loans	10		—		10		2,083		2,093
Leases	60		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 December 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 an 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 loan is deemed impaired, 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.

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

December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass	$	197,497	$	198,999	$	142,487	$	60,845	$	32,887	$	47,135	$	546,237	$	1,226,087
Special Mention	700		313		918		315		4		35		25,536		27,821
Substandard	1,101		18		2,737		226		1,836		8,424		26,464		40,806
Doubtful	—		—		3		77		80		172		192		524
Total	$	199,298	$	199,330	$	146,145	$	61,463	$	34,807	$	55,766	$	598,429	$	1,295,238

Commercial, financial and agricultural: PPP
Risk rating
Pass	$	—	$	1,875	$	2,331	$	—	$	—	$	—	$	—	$	4,206
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	$	—	$	1,875	$	2,331	$	—	$	—	$	—	$	—	$	4,206

Commercial real estate (1)
Risk rating
Pass	$	323,235	$	374,763	$	372,653	$	220,072	$	107,467	$	305,539	$	14,052	$	1,717,781
Special Mention	199		3,256		3,388		5,863		16,059		22,220		150		51,135
Substandard	7,856		1,427		3,007		3,561		856		5,471		428		22,606
Doubtful	—		—		—		—		1,941		591		—		2,532
Total	$	331,290	$	379,446	$	379,048	$	229,496	$	126,323	$	333,821	$	14,630	$	1,794,054

Construction real estate: Commercial
Risk rating
Pass	$	107,976	$	40,534	$	21,556	$	2,686	$	1,428	$	3,015	$	29,183	$	206,378
Special Mention	—		—		232		—		—		—		—		232
Substandard	652		800		260		—		660		—		—		2,372
Doubtful	—		—		—		—		—		—		—		—
Total	$	108,628	$	41,334	$	22,048	$	2,686	$	2,088	$	3,015	$	29,183	$	208,982

Residential Real Estate: Commercial
Risk rating
Pass	$	107,086	$	120,303	$	147,802	$	56,980	$	33,140	$	63,499	$	15,191	$	544,001
Special Mention	—		92		1,477		440		—		1,625		—		3,634
Substandard	610		449		264		29		304		553		339		2,548
Doubtful	—		—		—		—		—		—		—		—
Total	$	107,696	$	120,844	$	149,543	$	57,449	$	33,444	$	65,677	$	15,530	$	550,183

Leases
Risk rating
Pass	$	7,629	$	3,310	$	3,347	$	1,167	$	981	$	605	$	—	$	17,039
Special Mention	1,085		614		130		60		—		—		—		1,889
Substandard	—		—		464		111		12		26		—		613
Doubtful	—		—		—		96		—		—		—		96
Total	$	8,714	$	3,924	$	3,941	$	1,434	$	993	$	631	$	—	$	19,637

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December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Total Commercial Loans
Risk rating
Pass	$	743,423	$	739,784	$	690,176	$	341,750	$	175,903	$	419,793	$	604,663	$	3,715,492
Special Mention	1,984		4,275		6,145		6,678		16,063		23,880		25,686		84,711
Substandard	10,219		2,694		6,732		3,927		3,668		14,474		27,231		68,945
Doubtful	—		—		3		173		2,021		763		192		3,152
Total	$	755,626	$	746,753	$	703,056	$	352,528	$	197,655	$	458,910	$	657,772	$	3,872,300

(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, 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	$	267,016	$	208,078	$	100,736	$	52,705	$	36,528	$	59,909	$	468,749	$	1,193,721
Special Mention	1,608		1,592		429		59		277		—		11,986		15,951
Substandard	106		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 Mention	786		6,206		32,965		9,354		4,297		17,829		996		72,433
Substandard	3,897		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

Construction real estate: Commercial
Risk rating
Pass	$	96,929	$	76,867	$	7,003	$	4,841	$	1,856	$	3,412	$	22,444	$	213,352
Special Mention	202		—		—		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 Mention	95		884		106		79		—		497		135		1,796
Substandard	735		22		691		41		95		993		29		2,606
Doubtful	56		—		—		—		—		—		—		56
Total	$	139,687	$	166,108	$	68,718	$	45,016	$	26,678	$	71,924	$	15,671	$	533,802

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December 31, 2021	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Leases
Risk rating
Pass	$	6,705	$	5,729	$	2,628	$	2,151	$	705	$	845	$	—	$	18,763
Special Mention	198		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 Mention	2,889		8,793		33,684		10,250		4,595		18,326		13,117		91,654
Substandard	4,738		4,256		2,477		13,046		6,630		23,430		963		55,540
Doubtful	56		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

(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.

December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial, financial and agricultural: Overdrafts
Performing	$	1,489	$	—	$	—	$	—	$	—	$	—	$	—	$	1,489
Nonperforming	—		—		—		—		—		—		—		—
Total	$	1,489	$	—	$	—	$	—	$	—	$	—	$	—	$	1,489

Construction Real Estate: Retail
Performing	$	71,923	$	26,134	$	8,218	$	4,619	$	1,618	$	2,580	$	75	$	115,167
Nonperforming	731		—		523		—		—		12		—		1,266
Total	$	72,654	$	26,134	$	8,741	$	4,619	$	1,618	$	2,592	$	75	$	116,433

Residential Real Estate: Mortgage
Performing	$	207,093	$	227,131	$	192,904	$	90,014	$	55,648	$	286,464	$	—	$	1,059,254
Nonperforming	—		—		700		650		518		14,324		—		16,192
Total	$	207,093	$	227,131	$	193,604	$	90,664	$	56,166	$	300,788	$	—	$	1,075,446

Residential Real Estate: HELOC
Performing	$	140	$	299	$	23	$	130	$	141	$	1,957	$	163,134	$	165,824
Nonperforming	—		—		43		100		—		999		185		1,327
Total	$	140	$	299	$	66	$	230	$	141	$	2,956	$	163,319	$	167,151

Residential Real Estate: Installment
Performing	$	187	$	—	$	1	$	241	$	62	$	2,512	$	—	$	3,003
Nonperforming	—		—		7		2		16		1,063		—		1,088
Total	$	187	$	—	$	8	$	243	$	78	$	3,575	$	—	$	4,091

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December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer: Consumer
Performing	$	823,484	$	462,014	$	333,336	$	150,237	$	61,174	$	65,612	$	4,315	$	1,900,172
Nonperforming	440		489		424		355		157		520		—		2,385
Total	$	823,924	$	462,503	$	333,760	$	150,592	$	61,331	$	66,132	$	4,315	$	1,902,557

Consumer: GFSC
Performing	$	—	$	—	$	55	$	111	$	45	$	2	$	51	$	264
Nonperforming	—		—		—		10		—		—		—		10
Total	$	—	$	—	$	55	$	121	$	45	$	2	$	51	$	274

Consumer: Check loans
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	2,150	$	2,150
Nonperforming	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	2,150	$	2,150

Total Consumer Loans
Performing	$	1,104,316	$	715,578	$	534,537	$	245,352	$	118,688	$	359,127	$	169,725	$	3,247,323
Nonperforming	1,171		489		1,697		1,117		691		16,918		185		22,268
Total	$	1,105,487	$	716,067	$	536,234	$	246,469	$	119,379	$	376,045	$	169,910	$	3,269,591

December 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	$	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
Nonperforming	89		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
Nonperforming	241		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

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December 31, 2021	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
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. NewDominion 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. Carolina Alliance 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. PCD loans are individually evaluated on a quarterly basis to determine if a specific reserve is necessary. At each of December 31, 2022 and December 31, 2021, there was no allowance for credit losses on PCD loans. The carrying amount of loans acquired with deteriorated credit quality at December 31, 2022 and December 31, 2021 was $4.7 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.

In response to the COVID-19 pandemic, Park 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. Section 4013 of the CARES Act expired on December 31, 2021; therefore, modifications occurring after that date are subject to previous TDR classification guidance. As of December 31, 2022, there were no loans which were still within the COVID-19 deferral period.

Certain loans which were modified during the years ended December 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

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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.

There were $29.6 million of substandard commercial loans modified during the year ended December 31, 2022 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, 2021 that did not meet the definition of a TDR. Consumer loans modified during 2022, which did not meet the definition of a TDR, had a total amortized cost at December 31, 2022 of $41.7 million. Excluding COVID-19 related modifications, consumer loans modified during 2021, which did not meet the definition of a TDR, had a total amortized cost at December 31, 2021 of $32.9 million. Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds.

At December 31, 2022 and 2021, there were $17.5 million and $20.9 million, respectively, of TDRs included in the nonaccrual loan totals. At December 31, 2022 and 2021, $7.5 million and $10.5 million, respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured notes. At December 31, 2022 and 2021, loans totaling $20.1 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 December 31, 2022 and 2021, Park had commitments to lend $1.6 million and $3.0 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR.

At December 31, 2022 and 2021, there were $2.2 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 borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as individually evaluated loans, and thus were also previously evaluated for impairment under ASC 310. Additional specific reserves of $0.9 million were recorded during the year ended December 31, 2022, as a result of TDRs identified in the 2022 year. Additional specific reserves of $0.2 million were recorded during the year ended December 31, 2021, as a result of TDRs identified in the 2021 year. 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.

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. During the years ended December 31, 2022 and 2021, Park removed the TDR classification on $1.0 million and $4.1 million, respectively, of loans that met the requirements discussed above.

The following tables detail the number of contracts modified as TDRs during the years ended December 31, 2022, 2021 and 2020 as well as the amortized cost/ recorded investment of these contracts at December 31, 2022, 2021, and 2020. The

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amortized cost/ 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, 2022
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Amortized Cost
Commercial, financial and agricultural
Commercial, financial and agricultural	12	$	2,254	$	3,484	$	5,738
PPP loans	—	—		—		—
Overdrafts	—	—		—		—
Commercial real estate	9	1,040		813		1,853
Construction real estate:
Commercial	1	—		41		41
Retail	1	—		—		—
Residential real estate:
Commercial	4	21		274		295
Mortgage	15	865		368		1,233
HELOC	3	—		11		11
Installment	12	141		27		168
Consumer:
Consumer	89	196		359		555
GFSC	—	—		—		—
Check loans	—	—		—		—
Leases	10	—		101		101
Total loans	156	$	4,517	$	5,478	$	9,995

	Year ended December 31, 2021
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Amortized Cost
Commercial, financial and agricultural
Commercial, financial and agricultural	10	$	1,356	$	169	$	1,525
PPP loans	—	—		—		—
Overdrafts	—	—		—		—
Commercial real estate	15	2,002		6,747		8,749
Construction real estate:
Commercial	1	—		—		—
Retail	2	—		705		705
Residential real estate:
Commercial	5	95		574		669
Mortgage	14	146		396		542
HELOC	8	211		105		316
Installment	8	120		—		120
Consumer:
Consumer	131	116		417		533
GFSC	—	—		—		—
Check loans	—	—		—		—
Leases	1	—		325		325
Total loans	195	$	4,046	$	9,438	$	13,484

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	Year ended December 31, 2020
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	12	$	107	$	3,706	$	3,813
Commercial real estate	9	—		3,235		3,235
Construction real estate:
Commercial	—	—		—		—
Mortgage	1	26		—		26
Installment	1	—		14		14
Residential real estate:
Commercial	3	153		3		156
Mortgage	27	888		1,068		1,956
HELOC	7	14		52		66
Installment	18	163		65		228
Consumer	214	218		634		852
Total loans	292	$	1,569	$	8,777	$	10,346

Of those loans which were modified and determined to be a TDR during the year ended December 31, 2022, $1.0 million were on nonaccrual status as of December 31, 2021. Of those loans which were modified and determined to be a TDR during the year ended December 31, 2021, $5.4 million were on nonaccrual status as of December 31, 2020. 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.

The following table presents the amortized cost/ 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, 2022, December 31, 2021, and December 31, 2020. For this table, a loan is considered to be in default when it becomes 30 days

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contractually past due under the modified terms. The additional allowance for credit loss resulting from the defaults on TDR loans was immaterial.

 

	Year ended December 31, 2022			Year ended December 31, 2021			Year ended December 31, 2020
(In thousands)	Number of Contracts	Amortized Cost		Number of Contracts	Amortized Cost		Number of Contracts	Recorded Investment
Commercial, financial and agricultural:							4	$	2,776
Commercial, financial and agricultural	5	$	2,091	—	$	—	(1)	(1)
PPP loans	—	—		—	—		(1)	(1)
Overdrafts	—	—		—	—		(1)	(1)
Commercial real estate	—	—		—	—		1	223
Construction real estate:
Commercial	—	—		—	—		—	—
Retail	—	—		1	648		1	14
Residential real estate:
Commercial	1	93		—	—		1	3
Mortgage	4	154		4	280		11	993
HELOC	1	10		2	135		—	—
Installment	—	—		1	27		3	32
Consumer							34	360
Consumer	19	174		14	169		(1)	(1)
GFSC	—	—		—	—		(1)	(1)
Check loans	—	—		—	—		(1)	(1)
Leases	—	—		—	—		—	—
Total loans	30	$	2,522	22	$	1,259	55	$	4,401

(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 $2.5 million in modified TDRs which defaulted during the year ended December 31, 2022, $2.0 million were accruing loans and $0.5 million were nonaccrual loans. Of the $1.3 million in modified TDRs which defaulted during the year ended December 31, 2021, $115,000 were accruing loans and $1.1 million were nonaccrual loans. 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.

Certain of the Corporation’s executive officers, directors and related entities of directors are loan customers of PNB. As of December 31, 2022 and 2021, credit exposure aggregating approximately $37.3 million and $33.5 million, respectively, was outstanding to such parties. Of this total exposure, approximately $28.4 million and $27.1 million was outstanding at December 31, 2022 and 2021, respectively, with the remaining balance representing available credit. During 2022, new loans and advances on existing loans were made to these executive officers, directors and related entities of directors totaling $6.1 million and $1.2 million, respectively. These extensions of credit were offset by aggregate principal payments of $6.0 million. During 2021, new loans and advances on existing loans were $1.2 million and $9.7 million, respectively. These extensions of credit were offset by aggregate principal payments of $12.6 million and the removal of loans from the related party listing totaling $3.2 million.

6. Allowance for Credit Losses

The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. A provision for credit losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1-Summary of Significant Accounting Policies.

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During the first quarter of 2021, Park adopted ASU 2016-13, including the CECL methodology for estimating the ACL. This standard was adopted prospectively on January 1, 2021, resulting in a $6.1 million increase to the ACL and a $3.9 million increase to the allowance for unfunded credit losses. A cumulative effect adjustment resulting in an $8.0 million decrease to retained earnings and a $2.1 million increase to deferred tax assets was also recorded as of the adoption of ASU 2016-13.

Quantitative Considerations

The ACL is primarily calculated utilizing a DCF model. Key inputs and assumptions used in this model are discussed below:

•Forecast model - For each portfolio segment, a LDA was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA analysis utilized Park's own FFIEC Call Report data for the commercial, financial and agricultural and residential real estate portfolio segments. Peer data was incorporated into the analysis for the commercial real estate, construction real estate, and consumer portfolio segments. Park updated the LDA in the fourth quarter of 2022 with data through September 30, 2022. After considering the impact of the inclusion of periods impacted by COVID, as well as analysis of the ongoing applicability of the selected peer group, management decided it was appropriate to continue to utilize the LDA analysis from the fourth quarter of 2019 as the correlation of the LDA was higher.

•Probability of default – PD is the probability that an asset will be in default within a given time frame. Park has defined default to be when a charge-off has occurred, a loan is placed on nonaccrual, or a loan is greater than 90 days past due. Whenever possible, Park utilizes its own loan-level PDs for the reasonable and supportable forecast period. When loan-level data is not available reflecting the forecasted economic conditions, a forecast model is utilized to estimate PDs.

•Loss given default – LGD is the percentage of the asset not expected to be collected due to default. Whenever possible, Park utilizes its own loan-level LGDs for the reasonable and supportable forecast period. When it is not possible to use Park's own LGDs, the LGD is derived using a method referred to as Frye Jacobs.

•Prepayments and curtailments – Prepayments and curtailments are calculated based on Park’s own data utilizing a three-year average. This analysis is updated annually in the fourth quarter and was last updated in the fourth quarter of 2022.

•Forecast and reversion – Park has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.

•Economic forecast - Park utilizes a third party to provide economic forecasts under various scenarios, which are weighted in order to reflect model risk in the current economic environment. The scenario weighting is evaluated by management on a quarterly basis.

◦As of December 31, 2021, the "most likely" scenario forecasted Ohio unemployment to decrease, to a range between 3.32% and 3.97%, during the next four quarters. In determining the appropriate weighting of scenarios at December 31, 2021, management considered the range of forecasted unemployment as well as a number of economic indicators. While some economic indications appeared to be optimistic, the Omicron variant, rising inflation, volatility in consumer confidence, employment, supply chain and workforce challenges continued to cause uncertainty to the overall economic environment. Considering these factors, management determined it was appropriate to weigh the "most likely" scenario 50% and the "moderate recession" scenario 50% at December 31, 2021.

◦As of December 31, 2022, the "most likely" scenario forecasted Ohio unemployment between 4.14% and 4.36% during the next four quarters. In determining the appropriate weighting of scenarios at December 31, 2022, management considered the range of forecasted unemployment as well as a number of economic indicators. The continued high levels of inflation, historically low consumer confidence, rising interest rates, geopolitical conflict (including the conflict between Russia and Ukraine), and workforce and supply chain challenges continued to cause uncertainty to the overall economic environment. Considering these factors, management determined it was appropriate to maintain the existing weighting, and weigh the "most likely" scenario 50% and the "moderate recession" scenario 50% at December 31, 2022. Deteriorating forecasts, largely in the "moderate recession" scenario, resulted in a 10 basis point increase in the weighted quantitative allowance from December 31, 2021.

Qualitative Considerations

Park reviews various internal and external factors to consider the need for any qualitative adjustments to the quantitative model. Factors considered include the following:

•The nature and volume of Park’s financial assets; the existence, growth, and effect of any concentrations of credit and the volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets. Specifically, management considers:

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◦Trends (e.g., growth, reduction) in specific categories of the loan portfolio, as well as adjustments to the types of loans offered by Park.

◦Level of and trend in loan delinquencies, troubled loans, commercial watch list loans and nonperforming loans.

◦Level of and trend in new nonaccrual loans.

◦Level of and trend in loan charge-offs and recoveries.

•Park's lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries.

•The quality of Park’s credit review function.

•The experience, ability, and depth of Park’s lending, investment, collection, and other relevant management and staff.

•The effect of other external factors such as the regulatory, legal and technological environments; competition; geopolitical conflict; and events such as natural disasters or pandemics.

•Actual and expected changes in international, national, regional, and local economic and business conditions and developments in the markets in which Park operates that affect the collectibility of financial assets.

•Where the U.S. economy is within a given credit cycle.

•The extent that there is government assistance (stimulus).

During 2020, Park added an additional reserve for three industries at particularly high risk due to the COVID-19 pandemic: hotels and accommodations; restaurants and food service; and strip shopping centers. These industries experienced high levels of deferrals and had been particularly impacted by shut downs of non-essential businesses, increased health department regulations, and changes in consumer behavior. Management expected that a relatively higher percentage of the 4-rated credits in these portfolios would eventually migrate to special mention, substandard, or individually evaluated status. In adopting CECL, management determined it was appropriate to retain this qualitative adjustment as this adjustment took into account the additional risk in these portfolios, which was not captured in the quantitative calculation. As COVID cases began to decline during the first quarter of 2022, travel increased, restrictions lifted, and consumers began increasing restaurant visits and shopping in person and these industries began to show signs of recovery. Beginning in the first quarter of 2022, management began decreasing these reserves 25% each quarter to take into account improvements in these industry sectors. In the fourth quarter 2022, these industries continued to show positive trends and COVID-19 has become less impactful to day-to-day life. Therefore, management deemed it appropriate to reduce the factors the remaining 25%, taking this qualitative adjustment to zero.

A breakout of the 4-rated balances within these portfolios and the additional reserve related to these portfolios, as of December 31, 2021, is detailed in the following table:

	December 31, 2021
(In thousands)	4-Rated Balance		Additional Reserve
Hotels and accommodations	$	148,018	$	2,226
Restaurants and food service	40,648		917
Strip shopping centers	184,171		2,033
Total	$	372,837	$	5,176

Additionally, at December 31, 2021, management applied a 1.00% reserve to all hotels and accommodations loans in the collectively evaluated population to account for increased valuation risk. At December 31, 2021, Park's collectively evaluated hotels and accommodation loans had a balance of $203.9 million with an additional reserve related to valuation risks of $2.0 million. With improvement in occupancy and revenue in Park's hotel and accommodations portfolio, management concluded it appropriate to decrease the hotel and accommodations valuation reserve to zero at December 31, 2022.

At December 31, 2022 and 2021, Park had $4.2 million and $74.4 million, respectively, of PPP loans which were included in the commercial, financial and agricultural portfolio segment. These loans are guaranteed by the SBA and thus have not been reserved for using the same methodology as the rest of Park’s loan portfolio. A 10 basis point reserve was calculated for these loans to reflect minimal credit risk at December 31, 2022 and December 31, 2021.

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ACL Activity

The activity in the allowance for credit losses for the years ended December 31, 2022, 2021, and 2020 is summarized in the following tables.

	Year ended December 31, 2022
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for credit losses:
Beginning balance	$	14,025	$	25,466	$	5,758	$	11,424	$	26,286	$	238	$	83,197
Charge-offs	2,056		1,578		33		81		5,343		42		9,133
Recoveries	(826)		(627)		(1,343)		(164)		(3,767)		(31)		(6,758)
Net charge-offs (recoveries)	1,230		951		(1,310)		(83)		1,576		11		2,375
Provision (recovery)	4,192		(6,686)		(1,518)		5,324		3,311		(66)		4,557
Ending balance	$	16,987	$	17,829	$	5,550	$	16,831	$	28,021	161		$	85,379

 

	Year ended December 31, 2021
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for credit losses:
Beginning balance	$	25,608	$	23,480	$	7,288	$	11,363	$	17,418	$	518	$	85,675
Impact of adopting ASC 326	(8,257)		2,119		(1,898)		3,121		10,925		80		6,090
Charge-offs	957		35		—		49		4,052		—		5,093
Recoveries	(639)		(802)		(2,299)		(941)		(3,759)		(1)		(8,441)
Net charge-offs (recoveries)	318		(767)		(2,299)		(892)		293		(1)		(3,348)
(Recovery) Provision	(3,008)		(900)		(1,931)		(3,952)		(1,764)		(361)		(11,916)
Ending balance	$	14,025	$	25,466	$	5,758	$	11,424	$	26,286	$	238	$	83,197

	Year ended December 31, 2020
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for credit losses:
Beginning balance	$	20,203	$	10,229	$	5,311	$	8,610	$	12,211	$	115	$	56,679
Charge-offs	1,468		1,824		6		356		6,634		16		10,304
Recoveries	(20,765)		(738)		(1,122)		(991)		(3,629)		(1)		(27,246)
Net (recoveries) charge-offs	(19,297)		1,086		(1,116)		(635)		3,005		15		(16,942)
(Recovery) Provision	(13,892)		14,337		861		2,118		8,212		418		12,054
Ending balance	$	25,608	$	23,480	$	7,288	$	11,363	$	17,418	$	518	$	85,675

ACL Summary

Loans collectively evaluated for impairment in the following tables include all performing loans at December 31, 2022 and December 31, 2021, as well as nonperforming loans internally classified as consumer loans. Nonperforming consumer loans are not typically individually evaluated for impairment, but receive a portion of the statistical allocation of the ACL. Loans individually evaluated for impairment include all loans internally classified as commercial nonaccrual loans and TDRs at December 31, 2022 and December 31, 2021, which are evaluated for impairment in accordance with U.S. GAAP (See Note 1-Significant Accounting Policies).

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The composition of the ACL at December 31, 2022 and December 31, 2021 was as follows:

 

	December 31, 2022
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
ACL:
Ending allowance balance attributed to loans:
Individually evaluated for impairment	$	3,426		$	131		$	—		$	—		$	—		$	9		$	3,566
Collectively evaluated for impairment	13,561			17,698			5,550			16,831			28,021			152			$	81,813
Acquired with deteriorated credit quality	—			—			—			—			—			—			$	—
Total ending allowance balance	$	16,987		$	17,829		$	5,550		$	16,831		$	28,021		$	161		$	85,379
Loan balance:
Loans individually evaluated for impairment	$	41,307		$	32,423		$	1,712		$	2,191		$	—		$	708		$	78,341
Loans collectively evaluated for impairment	1,259,524			1,758,118			323,043			1,794,302			1,904,981			18,929			7,058,897
Loans acquired with deteriorated credit quality	102			3,513			660			378			—			—			4,653
Total ending loan balance	$	1,300,933		$	1,794,054		$	325,415		$	1,796,871		$	1,904,981		$	19,637		$	7,141,891
ACL as a percentage of loan balance:
Loans individually evaluated for impairment	8.29		%	0.40		%	—		%	—		%	—		%	1.27		%	4.55		%
Loans collectively evaluated for impairment	1.08		%	1.01		%	1.72		%	0.94		%	1.47		%	0.80		%	1.16		%
Loans acquired with deteriorated credit quality	—		%	—		%	—		%	—		%	—		%	—		%	—		%
Total	1.31		%	0.99		%	1.71		%	0.94		%	1.47		%	0.82		%	1.20		%

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	December 31, 2021
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
ACL:
Ending allowance balance attributed to loans:
Individually evaluated for impairment	$	1,385		$	188		$	—		$	—		$	—		$	43		$	1,616
Collectively evaluated for impairment	12,640			25,278			5,758			11,424			26,286			195			$	81,581
Acquired with deteriorated credit quality	—			—			—			—			—			—			$	—
Total ending allowance balance	$	14,025		$	25,466		$	5,758		$	11,424		$	26,286		$	238		$	83,197
Loan balance:
Loans individually evaluated for impairment	$	22,666		$	47,820		$	222		$	2,606		$	—		$	1,188		$	74,502
Loans collectively evaluated for impairment	1,275,783			1,748,854			320,608			1,735,226			1,689,679			19,321			6,789,471
Loans acquired with deteriorated credit quality	177			5,118			956			875			—			23			7,149
Total ending loan balance	$	1,298,626		$	1,801,792		$	321,786		$	1,738,707		$	1,689,679		$	20,532		$	6,871,122
ACL as a percentage of loan balance:
Loans individually evaluated for impairment	6.11		%	0.39		%	—		%	—		%	—		%	3.62		%	2.17		%
Loans collectively evaluated for impairment	0.99		%	1.45		%	1.80		%	0.66		%	1.56		%	1.01		%	1.20		%
Loans acquired with deteriorated credit quality	—		%	—		%	—		%	—		%	—		%	—		%	—		%
Total	1.08		%	1.41		%	1.79		%	0.66		%	1.56		%	1.16		%	1.21		%

7. Loans Held for Sale

Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale were $2.1 million and $9.4 million at December 31, 2022 and 2021, respectively. These amounts are included in "Loans" on the Consolidated Balance Sheets and in the residential real estate loan segments in Note 5 - Loans and Note 6 - Allowance for Credit Losses. The contractual balance was $2.1 million and $9.2 million at December 31, 2022 and 2021, respectively. The gain expected upon sale was $41,000 and $166,000 at December 31, 2022 and 2021, respectively. None of these loans were 90 days or more past due or on nonaccrual status at December 31, 2022 or 2021.

During 2022, Park transferred certain commercial loans held for investment, previously nonperforming, with an amortized cost of $6.3 million, to the loans held for sale portfolio. The transferred loans were recorded at the lower of cost or fair value, recording a charge-off in each instance where the fair value of an individual loan was deemed to be below the carrying cost at the time the loans were moved to the held for sale portfolio. The sale of $3.9 million in loans held for sale was subsequently completed and Park recognized a gain on sale of $495,000 which is recorded within "Miscellaneous income" on the Consolidated Statements of Income. The remaining $2.4 million in loans held for sale were transferred back to loans held for investment at the lower of cost or fair value. During 2020, Park transferred a non-performing loan held for investment, with a book balance of $4.4 million, to the loans held for sale portfolio, and subsequently completed the sale of this non-performing loan held for sale, recognizing no gain or loss on sale. No non-performing loans were held for sale or sold during 2021.

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8. Goodwill and Other Intangible Assets

The following table shows the activity in goodwill and other intangible assets for the years ended December 31, 2022, 2021 and 2020.

 

(In thousands)	Goodwill		Other Intangible Assets		Total
January 1, 2020	$	159,595	$	11,523	$	171,118
Amortization	—		2,263		2,263
December 31, 2020	$	159,595	$	9,260	$	168,855
Amortization	—		1,798		1,798
December 31, 2021	$	159,595	$	7,462	$	167,057
Amortization	—		1,487		1,487
December 31, 2022	$	159,595	$	5,975	$	165,570

Goodwill

Goodwill impairment exists when a reporting unit's carrying value exceeds its fair value. Park evaluates goodwill for impairment on April 1 of each year, with financial data as of March 31. At April 1, 2022, the Company's reporting unit, PNB, had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.

Acquired Intangible Assets

The following table shows the balance of acquired intangible assets as of December 31, 2022 and 2021.

	2022				2021
(In thousands)	Gross Carrying Amount		Accumulated Amortization/Impairment		Gross Carrying Amount		Accumulated Amortization
Other intangible assets:
Core deposit intangibles	$	14,456	$	8,481	$	14,456	$	6,994
Trade name intangible	1,300		1,300		1,300		1,300
Total	$	15,756	$	9,781	$	15,756	$	8,294

Core deposit intangibles are being amortized, on an accelerated basis, over a period of ten years. Amortization expense for the core deposit intangibles was $1.5 million, $1.8 million and $2.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.

The following is a schedule of estimated core deposit intangibles amortization expense for each of the next five years:

(In thousands)	Total
2023	$	1,323
2024	1,215
2025	1,042
2026	887
2027	754

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9. Premises and Equipment

The major categories of premises and equipment and accumulated depreciation are summarized as follows:

 

December 31 (In thousands)	2022		2021
Land	$	22,139	$	21,992
Buildings	97,510		97,128
Equipment, furniture and fixtures	77,446		76,675
Leasehold improvements	3,575		6,436
Software	28,665		24,698
Total	$	229,335	$	226,929
Less accumulated depreciation	(147,209)		(137,921)
Premises and equipment, net	$	82,126	$	89,008

Depreciation expense amounted to $13.8 million, $13.3 million and $10.8 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Park records leased assets where Park acts as the lessor within "Other assets" on the Consolidated Balance Sheets. Equipment subject to lease agreements at December 31, 2022 and 2021 is summarized below:

December 31 (In thousands)	2022		2021
Equipment	$	4,427	$	7,298
Less accumulated depreciation	(3,162)		(4,860)
Leased assets, net	$	1,265	$	2,438

Depreciation expense on operating lease assets of $1.1 million, $1.5 million, and $1.8 million was recorded for the years ended December 31, 2022, 2021 and 2020 respectively.

10. Investments in Qualified Affordable Housing

Park makes certain equity investments in various limited partnerships that sponsor affordable housing projects. The purposes of these investments are to achieve a satisfactory return on capital, help create affordable housing opportunities, and assist the Company to achieve its goals associated with the Community Reinvestment Act.

As permitted by ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, Park has elected the proportional amortization method of accounting. Under the proportional amortization method, amortization expense and tax benefits are recognized through the provision for income taxes.

The table below details the balances of Park’s affordable housing tax credit investments and related unfunded commitments as of December 31, 2022 and 2021.

(In thousands)	December 31, 2022		December 31, 2021
Affordable housing tax credit investments	$	60,968	$	58,711
Unfunded commitments	28,132		28,484

Commitments are funded when capital calls are made by the general partner of a limited partnership. Park expects that the commitments as of December 31, 2022 will be funded between 2023 and 2032.

During the years ended December 31, 2022, 2021 and 2020, Park recognized amortization expense of $7.7 million, $7.3 million and $7.0 million, respectively, which was included within the provision for income taxes. For the years ended December 31, 2022, 2021 and 2020, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $9.3 million, $8.8 million and $8.7 million, respectively.

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11. Foreclosed and Repossessed Assets

Park typically transfers a loan to OREO at the time that Park takes deed/title to the real estate property asset. The carrying amount of foreclosed properties held at December 31, 2022 and December 31, 2021 are listed below, as well as the recorded investment of loans secured by residential real estate properties for which formal foreclosure proceedings were in process at those dates.

(In thousands)	December 31, 2022		December 31, 2021
OREO:
Commercial real estate	$	1,354	$	—
Residential real estate	—		775
Total OREO	$	1,354	$	775
Loans in process of foreclosure:
Residential real estate	$	1,614	$	1,148

Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired. During the year ended December 31, 2022, Park recognized a $12.0 million OREO valuation markup related to the foreclosure and subsequent sale of a property collateralizing a former Vision Bank relationship. This income is included in "OREO valuation markup" on the Consolidated Statements of Income. There was no OREO valuation markup related to former Vision Bank relationships during the year ended December 31, 2021.

During the year ended December 31, 2022, Park recognized a $5.6 million gain on the sale of OREO related to former Vision Bank relationships. This income is included in "Gain (loss) on the sale of OREO, net" on the Consolidated Statements of Income. There was no gain or loss on the sale of OREO related to former Vision Bank relationships during the year ended December 31, 2021.

In addition to real estate, Park may also repossess different types of collateral. As of December 31, 2022 and December 31, 2021, Park had $0.6 million and $3.3 million in other repossessed assets which are included in "Other assets" on the Consolidated Balance Sheets. At December 31, 2021, the other repossessed assets largely consisted of an aircraft acquired as part of a loan workout.

12. Loan Servicing

Park serviced sold mortgage loans of $2,051 million at December 31, 2022, compared to $2,132 million at December 31, 2021 and $1,972 million at December 31, 2020. At December 31, 2022, $3.2 million of the sold mortgage loans were sold with recourse compared to $3.3 million at December 31, 2021 and $1.7 million at December 31, 2020. Management closely monitors the delinquency rates on the mortgage loans sold with recourse. As of December 31, 2022 and 2021, management had established a reserve of $59,000 and $57,000, respectively, to account for future loan repurchases.

When Park sells mortgage loans with servicing rights retained, servicing rights are initially recorded at fair value. Park selected the “amortization method” as permissible within U.S. GAAP, whereby the servicing rights capitalized are amortized in proportion to and over the period of estimated future servicing income of the underlying loan. At the end of each reporting period, the carrying value of MSRs is assessed for impairment with a comparison to fair value. MSRs are carried at the lower of their amortized cost or fair value. The amortization of MSRs is included within "Other service income" in the Consolidated Statements of Income.

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Activity for MSRs and the related valuation allowance follows:

 

December 31 (In thousands)	2022		2021		2020
MSRs:
Carrying amount, net, beginning of year	$	15,264	$	12,210	$	10,070
Additions	1,455		4,945		8,627
Amortization	(2,313)		(3,512)		(4,123)
Change in valuation allowance	1,386		1,621		(2,364)
Carrying amount, net, end of year	$	15,792	$	15,264	$	12,210
Valuation allowance:
Beginning of year	$	1,568	$	3,189	$	825
Change in valuation allowance	(1,386)		(1,621)		2,364
End of year	$	182	$	1,568	$	3,189

The fair value of MSRs was $17.4 million and $15.3 million at December 31, 2022 and 2021, respectively. The fair value of MSRs at December 31, 2022 was established using a discount rate of 12% and constant prepayment speeds ranging from 6.96% to 19.14%. The fair value of MSRs at December 31, 2021 was established using a discount rate of 12% and constant prepayment speeds ranging from 11.10% to 27.90%.

Servicing fees included in "Other service income" were $5.4 million, $5.3 million and $4.1 million for the years ended December 31, 2022, 2021 and 2020, respectively.

13. Leases

Park is a lessee in several noncancellable operating lease arrangements, primarily for retail branches, administrative and warehouse buildings, ATMs, and certain office equipment within its Ohio, North Carolina, South Carolina, and Kentucky markets. Certain of these leases contain renewal options for periods ranging from one to five years. Park’s leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease arrangements include fixed payments plus, for many of Park’s real estate leases, variable payments such as Park's proportionate share of property taxes, insurance and common area maintenance.

Park's operating lease ROU asset and lease liability are presented in “Operating lease right-of-use asset" and "Operating lease liability," respectively, on Park's Consolidated Balance Sheets. The carrying amounts of Park's ROU asset and lease liability at December 31, 2022 were $17.6 million and $19.3 million, respectively. At December 31, 2021, the carrying amounts of Park's ROU assets and lease liability were $13.4 million and $14.3 million, respectively. Park's operating lease expense is recorded in "Occupancy expense" on the Company's Consolidated Statements of Income.

Other information related to operating leases for the years ended December 31, 2022, 2021 and 2020 follows:

(In thousands)	Year ended December 31, 2022		Year ended December 31, 2021		Year ended December 31, 2020
Lease cost
Operating lease cost	$	3,073	$	2,827	$	3,463
Sublease income	(252)		(253)		(352)
Total lease cost	$	2,821	$	2,574	$	3,111
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,116	$	3,199	$	3,553
ROU assets obtained in exchange for new operating lease liabilities	$	7,867	$	1,190	$	7,821
Reductions to ROU assets resulting from reductions to lease obligations	$	(2,812)	$	(2,865)	$	(3,084)

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Park's operating leases had a weighted average remaining term of 10.0 years and 6.8 years at December 31, 2022 and 2021, respectively. The weighted average discount rate of Park's operating leases was 3.3% and 2.3% at December 31, 2022 and 2021, respectively.

Undiscounted cash flows included in lease liabilities at December 31, 2022 have expected contractual payments as follows:

(In thousands)	December 31, 2022
2023	$	3,599
2024	2,485
2025	2,142
2026	2,097
2027	2,030
Thereafter	11,020
Total undiscounted minimum lease payments	$	23,373
Less: imputed interest	(4,082)
Total lease liabilities	$	19,291

14. Deposits

At December 31, 2022 and 2021, non-interest bearing and interest bearing deposits were as follows:

 

December 31 (In thousands)	2022		2021
Non-interest bearing	$	3,074,276	$	3,066,419
Interest bearing	5,160,439		4,838,109
Total	$	8,234,715	$	7,904,528

At December 31, 2022, the maturities of time deposits were as follows: 

(In thousands)
2023	$	346,856
2024	122,885
2025	35,005
2026	24,463
2027	25,194
After 5 years	42
Total	$	554,445

At December 31, 2022 and 2021, respectively, Park had approximately $17.5 million and $29.6 million of deposits received from Park's executive officers, Park directors and related entities of Park directors.

Time deposits that met or exceeded the FDIC insurance limit of $250,000 at December 31, 2022 and 2021 were $44.3 million and $65.8 million, respectively.

15. Repurchase Agreement Borrowings

Securities sold under agreements to repurchase ("repurchase agreements") with customers represent funds deposited by customers, generally on an overnight basis, that are collateralized by investment securities owned by Park. Repurchase agreements with customers are included in "Short-term borrowings" on the Consolidated Balance Sheets.

All repurchase agreements are subject to the terms and conditions of repurchase/security agreements between Park and the client and are accounted for as secured borrowings. Park's repurchase agreements consisted of customer accounts and securities which are pledged on an individual security basis.

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At December 31, 2022 and December 31, 2021, Park's repurchase agreement borrowings totaled $227.3 million and $213.8 million, respectively. These borrowings were collateralized with U.S. government sponsored entities' asset-backed securities with a fair value of $313.1 million and $334.9 million at December 31, 2022 and December 31, 2021, respectively. Declines in the value of the collateral would require Park to pledge additional securities. As of December 31, 2022 and December 31, 2021, Park had $1,147 million and $1,225 million, respectively, of available unpledged securities.

The following table presents the carrying value of Park's repurchase agreement borrowings by remaining contractual maturity and collateral pledged at December 31, 2022 and December 31, 2021:

	December 31, 2022
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government sponsored entities' asset-backed securities	$	227,342	$	—	$	—	$	—	$	227,342
	December 31, 2021
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government sponsored entities' asset-backed securities	$	213,786	$	—	$	—	$	—	$	213,786

See Note 16 - Short-Term Borrowings for additional information related to repurchase agreements.

16. Short-Term Borrowings

Short-term borrowings were as follows:

December 31 (In thousands)	2022		2021
Securities sold under agreements to repurchase	$	227,342	$	213,786
FHLB advances	—		25,000
Total short-term borrowings	$	227,342	$	238,786

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The outstanding balances for all short-term borrowings as of December 31, 2022 and 2021 and the weighted-average interest rates as of and paid during each of the years then ended were as follows: 

(In thousands)	Repurchase agreements			FHLB Advances
2022
Ending balance	$	227,342		$	—
Highest month-end balance	227,342			25,000
Average daily balance	199,813			7,195
Weighted-average interest rate:
As of year-end	1.39		%	—		%
Paid during the year (1)	0.57		%	0.04		%
2021
Ending balance	$	213,786		$	25,000
Highest month-end balance	297,118			25,000
Average daily balance	261,967			25,025
Weighted-average interest rate:
As of year-end	0.03		%	0.23		%
Paid during the year (1)	0.04		%	0.23		%

(1) Interest rate swaps with notional amounts of a zero balance at December 31, 2022 (the swap was paid off during 2022) and a balance of $25.0 million at December 31, 2021 were designated as cash flow hedges of certain FHLB advances. Including interest expense related to the swaps, the weighted average interest rate paid during the year on FHLB advances was 3.62% and 2.69% for 2022 and 2021, respectively.

During 2021 and 2022, outstanding FHLB advances were collateralized by investment securities owned by PNB and by various loans pledged under a blanket agreement by PNB. At December 31, 2022 and December 31, 2021, $7.2 million and $9.5 million, respectively, of investment securities were pledged as collateral for FHLB advances. At December 31, 2022 and December 31, 2021, $1,832 million and $1,749 million, respectively, of commercial real estate and residential mortgage loans were pledged under a blanket agreement to the FHLB by PNB. See Note 15 - Repurchase Agreement Borrowings for information related to investment securities collateralizing repurchase agreements.

17. Long-Term Debt

Park did not have long-term borrowings at either December 31, 2022 or December 31, 2021.

On February 18, 2020, Park prepaid $50 million of FHLB advances, incurring a $1.8 million prepayment penalty recognized within "FHLB prepayment penalty" on the Consolidated Statement of Income for the year ended December 31, 2020. These advances had an average interest rate of 3.01% and maturity dates of March 14, 2022 and September 15, 2022.

On December 3, 2020, Park prepaid $100 million of FHLB advances, incurring an $8.7 million prepayment penalty recognized within "FHLB prepayment penalty" on the Consolidated Statement of Income for the year ended December 31, 2020. These advances had an interest rate of 3.40% and a maturity date of December 1, 2023.

On June 20, 2019, Park issued a $50 million term note to U.S. Bank National Association. This term note had a maturity date of June 21, 2022 and accrued interest at a floating rate of one-month LIBOR plus 1.65%. On August 2, 2021, Park prepaid the outstanding balance of $27.5 million of the term note to U.S. Bank National Association.

18. Subordinated Notes

As part of the acquisition of Vision's parent bank holding company ("Vision Parent") on March 9, 2007, Park became the successor to Vision Parent under (i) the Amended and Restated Trust Agreement of Vision Bancshares Trust I (the “Trust”), dated as of December 5, 2005, (ii) the Junior Subordinated Indenture, dated as of December 5, 2005, and (iii) the Guarantee Agreement, also dated as of December 5, 2005.

On December 1, 2005, Vision Parent formed a wholly-owned Delaware statutory business trust, Vision Bancshares Trust I (“Trust I”), which issued $15.0 million of Trust I's floating rate preferred securities (the “Trust Preferred Securities”) to institutional investors. These Trust Preferred Securities qualify as Tier I capital under FRB guidelines. All of the common securities of Trust I are owned by Park. The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by Trust I to purchase $15.5 million of junior subordinated notes, which carry a floating rate based on

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three-month LIBOR plus 148 basis points. The junior subordinated notes represent the sole asset of Trust I. The Trust Preferred Securities accrue and pay distributions at a floating rate of three-month LIBOR plus 148 basis points per annum. The Trust Preferred Securities are mandatorily redeemable upon maturity of the junior subordinated notes in December 2035, or upon earlier redemption as provided in the junior subordinated notes. Since December 30, 2010, Park has had the right to redeem the junior subordinated notes purchased by Trust I in whole or in part. As specified in the indenture, if the junior subordinated notes are redeemed prior to maturity, the redemption price will be the principal amount, plus any unpaid accrued interest. In accordance with U.S. GAAP, Trust I is not consolidated with Park’s financial statements, but rather the subordinated notes are reflected as a liability.

On August 20, 2020, Park completed the issuance and sale of $175 million aggregate principal amount of its 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030 (the "Subordinated Notes"). The Subordinated Notes initially bear a fixed interest rate of 4.50% per year, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021. Commencing on September 1, 2025, the Subordinated Notes will bear interest at a floating rate per annum equal to the Benchmark rate, which is expected to be Three-Month Term SOFR, plus a spread of 439 basis points for each quarterly interest period during the floating rate period, payable quarterly in arrears; provided, however, that if the Benchmark rate is less than zero, then the Benchmark rate will be deemed to be zero. The Company may, at its option, beginning with the interest payment date of September 1, 2025 and on any interest payment date thereafter, redeem the Subordinated Notes, in whole or in part, from time to time, subject to obtaining the prior approval of the holders of the Company’s senior indebtedness and of the Federal Reserve Board to the extent the approval of the Federal Reserve Board is then required under the capital adequacy rules of the Federal Reserve Board, at a redemption price equal to 100% of the principal amount of the Subordinated Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption. The issuance costs of the Subordinated Notes totaled $2.4 million, which amount is being amortized through the Subordinated Note call date. At December 31, 2022 and 2021, the Subordinated Notes, net of unamortized issuance costs, totaled $173.7 million and $173.2 million, and qualify as Tier 2 capital for Park under the Federal Reserve Board capital adequacy rules.

19. Derivatives

Park uses certain derivative financial instruments (or "derivatives") to meet the needs of Park's clients while managing the interest rate risk associated with certain transactions. Park does not use derivatives for speculative purposes. A summary of derivative financial instruments utilized by Park follows.

Interest Rate Swaps

Park utilizes interest rate swap agreements as part of its asset-liability management strategy to help manage its interest rate risk position and as a means to meet the financing, interest rate and other risk management needs of qualifying commercial banking customers. The notional amount of the interest rate swaps does not represent the amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Borrowing Derivatives: At December 31, 2022, Park had no borrowing derivatives. Interest rate swaps with notional amounts totaling $25.0 million at December 31, 2021 were designated as cash flow hedges of certain FHLB advances.

Loan Derivatives: In conjunction with the Carolina Alliance acquisition, Park acquired interest rate swaps related to certain commercial loans. Simultaneously with borrowers entering into interest rate swaps, Carolina Alliance entered into offsetting

interest rate swaps executed with a third party, such that Carolina Alliance minimized its net interest rate risk exposure resulting

from such transactions. These interest rate swaps had a notional amount totaling $21.7 million and $29.7 million at December 31, 2022 and December 31, 2021, respectively.

All of the Company's interest rate swaps were determined to be fully effective during the years ended December 31, 2022 and 2021. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in "Other assets" and "Other liabilities" with changes in fair value recorded in "Other comprehensive (loss) income". The amount included in "Accumulated other comprehensive (loss) income, net of tax" would be reclassified to net income should the hedges no longer be considered effective. During the year ended December 31, 2022, Park recognized expense of $66,000 as the result of the early termination of a borrowing interest rate swap. No expense related to early termination was recognized during the years ended December 31, 2021 and 2020, respectively. Park expects the outstanding hedges to remain fully effective during the remaining respective terms of the swaps.

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Summary information about Park's interest rate swaps as of December 31, 2022 and December 31, 2021 was as follows:

	December 31, 2022						December 31, 2021
(In thousands, except weighted average data)	Borrowing Derivatives			Loan Derivatives			Borrowing Derivatives			Loan Derivatives
Notional amounts	$	—		$	21,700		$	25,000		$	29,651
Weighted average pay rates	—		%	4.553		%	2.595		%	4.668		%
Weighted average receive rates	—		%	4.553		%	0.124		%	4.668		%
Weighted average maturity (years)	0.0			7.9			0.5			8.2
Unrealized losses	$	—		$	—		$	262		$	—

Interest expense recorded on swap transactions was $171,000, $614,000 and $423,000 for the years ended December 31, 2022, 2021, and 2020, respectively.

Interest Rate Swaps

The following table presents the net gains (losses), net of income taxes, recorded in OCI and the Consolidated Statements of Income related to interest rate swaps for the years ended December 31, 2022, 2021 and 2020:

	Year ended December 31, 2022
(In thousands)	Amount of Gain (Loss) Recognized in OCI (Effective Portion)		Amount of Gain (Loss) Reclassified from OCI to Interest Income		Amount of Expense Recognized in Miscellaneous Expense
Interest rate contracts	$	154	$	—	$	52

	Year ended December 31, 2021
(In thousands)	Amount of Gain (Loss) Recognized in OCI (Effective Portion)		Amount of Gain (Loss) Reclassified from OCI to Interest Income		Amount of Expense Recognized in Miscellaneous Expense
Interest rate contracts	$	492	$	—	$	—

	Year ended December 31, 2020
(In thousands)	Amount of Gain (Loss) Recognized in OCI (Effective Portion)		Amount of Gain (Loss) Reclassified from OCI to Interest Income		Amount of Expense Recognized in Miscellaneous Expense
Interest rate contracts	$	(244)	$	—	$	—

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The following table reflects the interest rate swaps included in the Consolidated Balance Sheets as of December 31, 2022 and 2021:

(In thousands)	December 31, 2022				December 31, 2021
	Notional Amount		Fair Value		Notional Amount		Fair Value
Included in "Other assets":
Borrowing derivatives - interest rate swaps related to FHLB advances	$	—	$	—	$	—	$	—
Loan derivatives - instruments associated with loans
Matched interest rate swaps with borrower	—		—		29,651		1,952
Matched interest rate swaps with counterparty	21,700		1,508		—		—
Total included in "Other assets"	$	21,700	$	1,508	$	29,651	$	1,952
Included in "Other liabilities":
Borrowing derivatives - interest rate swaps related to FHLB advances	$	—	$	—	$	25,000	$	(262)
Loan derivatives - instruments associated with loans
Matched interest rate swaps with borrower	21,700		(1,508)		—		—
Matched interest rate swaps with counterparty	—		—		29,651		(1,952)
Total included in "Other liabilities"	$	21,700	$	(1,508)	$	54,651	$	(2,214)

Mortgage Banking Derivatives

Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. In order to hedge the change in interest rates resulting from its commitments to fund the loans, the Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into. These mortgage banking derivatives are not designated as hedge relationships. The fair value of an interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. Fair values of these mortgage banking derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in "Other service income" in the Consolidated Statements of Income.

At December 31, 2022 and December 31, 2021, Park had $2.1 million and $13.3 million, respectively, of interest rate lock commitments. The fair value of these mortgage banking derivatives was reflected by a derivative asset of $46,000 and $0.3 million at December 31, 2022 and December 31, 2021, respectively.

Other Derivatives

In connection with the sale of Park’s Class B Visa shares during 2009, Park entered into a swap agreement with the purchaser of the shares. The swap agreement adjusts for dilution in the conversion ratio of Class B Visa shares resulting from certain Visa litigation. At December 31, 2022 and 2021, the fair value of the swap liability of $243,000 and $226,000, respectively, represented an estimate of the exposure based upon probability-weighted potential Visa litigation losses.

20. Share-Based Compensation

The Park National Corporation 2017 Long-Term Incentive Plan for Employees (the "2017 Employees LTIP") was adopted by the Board of Directors of Park on January 23, 2017 and was approved by Park's shareholders at the Annual Meeting of Shareholders on April 24, 2017. The 2017 Employees LTIP makes equity-based awards and cash-based awards available for grant to employee participants in the form of incentive stock options, nonqualified stock options, SARs, Restricted Stock, Restricted Stock Units, Other Stock-Based Awards and cash-based awards. Under the 2017 Employees LTIP, 750,000 common shares are authorized to be delivered in connection with grants under the 2017 Employees LTIP. The common shares to be delivered under the 2017 Employees LTIP are to consist of either common shares currently held or common shares subsequently acquired by Park as treasury shares, including common shares purchased in the open market or in private transactions. At December 31, 2022, 375,000 common shares were available for future grants under the 2017 Employee LTIP.

The Park National Corporation 2017 Long-Term Incentive Plan for Non-Employee Directors (the "2017 Non-Employee Directors LTIP") was adopted by the Board of Directors of Park on January 23, 2017 and was approved by Park's shareholders at the Annual Meeting of Shareholders on April 24, 2017. The 2017 Non-Employee Directors LTIP makes equity-based awards

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and cash-based awards available for grant to non-employee director participants in the form of nonqualified stock options, SARs, Restricted Stock, Restricted Stock Units, Other Stock-Based Awards, and cash-based awards. Under the 2017 Non-Employee Directors LTIP, 150,000 common shares are authorized to be delivered in connection with grants under the 2017 Non-Employee Directors LTIP. The common shares to be delivered under the 2017 Non-Employee Directors LTIP are to consist of either common shares currently held or common shares subsequently acquired by Park as treasury shares, including common shares purchased in the open market or in private transactions. At December 31, 2022, 75,000 common shares were available for future grants under the 2017 Non-Employee Directors LTIP.

During 2022, 2021 and 2020, Park granted 9,789, 13,400 and 13,450 common shares, respectively, to directors of Park and to directors of PNB (and its divisions) under the 2017 Non-Employee Directors LTIP. The common shares granted to directors were not subject to a vesting period and resulted in expense of $1.3 million, $1.7 million, and $1.3 million in 2022, 2021, and 2020, respectively, which is included in "Professional fees and services" on the Consolidated Statements of Income. 

During 2022, 2021 and 2020, the Compensation Committee of the Board of Directors of Park granted awards of PBRSUs, under the 2017 Employees LTIP, covering an aggregate of 52,335, 61,890 and 62,265 common shares, respectively, to certain employees of Park and its subsidiaries. As of December 31, 2022, Park had nonvested PBRSUs as well as TBRSUs. The number of PBRSUs earned or settled will depend on the level of achievement with respect to certain performance criteria and will also be subject to subsequent service-based vesting. The number of TBRSUs earned or settled are subject to service-based vesting.

A summary of changes in the common shares subject to nonvested PBRSUs and TBRSUs for the years ended December 31, 2022 and 2021 follows:

	Common shares subject to PBRSUs and TBRSUs
Nonvested at January 1, 2021	204,108
Granted	61,890
Vested	(48,106)
Forfeited	(3,522)
Adjustment for performance conditions of PBRSUs (1)	(2,551)
Nonvested at January 1, 2022	211,819
Granted	52,335
Vested	(55,464)
Forfeited	(8,406)
Adjustment for performance conditions of PBRSUs (1)	(634)
Nonvested at December 31, 2022 (2)	199,650

(1) The number of PBRSUs earned depends on the level of achievement with respect to certain performance criteria. Adjustment herein represents the difference between the maximum number of common shares which could be earned and the actual number earned for those PBRSUs as to which the performance period was completed.

(2) Nonvested amount herein represents the maximum number of nonvested PBRSUs and TBRSUs. As of December 31, 2022, an aggregate of 198,737 PBRSUs and TBRSUs are expected to vest.

A summary of awards that vested during the twelve months ended December 31, 2022 and 2021 follows:

	Twelve Months Ended December 31,
	2022	2021
PBRSU and TBRSU vested	55,464	48,106
Common shares withheld to satisfy employee income tax withholding obligations	21,219	18,436
Net common shares issued	34,245	29,670

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Share-based compensation expense of $5.9 million, $6.3 million and $6.0 million was recognized for the years ended December 31, 2022, 2021 and 2020, respectively, related to PBRSU and TBRSU awards to employees. The following table details expected additional share-based compensation expense related to PBRSUs and TBRSUs currently outstanding:

(In thousands)
2023	$	4,375
2024	2,869
2025	1,200
2026	193
Total	$	8,637

21. Benefit Plans

The Corporation has a noncontributory Defined Benefit Pension Plan (the “Pension Plan”) covering substantially all of the employees of Park National Corporation and its subsidiaries. The Pension Plan provides benefits based on an employee’s years of service and compensation.

There was no pension contribution in 2022 or 2021 and no contribution is expected to be made in 2023.

Using accrual measurement dates of December 31, 2022 and 2021, plan assets and benefit obligation activity for the Pension Plan are listed below:

(In thousands)	2022		2021
Change in fair value of plan assets
Fair value at beginning of measurement period	$	263,473	$	230,442
Actual return on plan assets	(37,319)		48,138
Benefits paid	(17,016)		(15,107)
Fair value at end of measurement period	$	209,138	$	263,473
Change in benefit obligation
Projected benefit obligation at beginning of measurement period	$	182,964	$	184,410
Service cost	9,749		9,916
Interest cost	5,705		5,359
Plan amendments	558		—
Actuarial loss	(54,566)		(1,614)
Benefits paid	(17,016)		(15,107)
Projected benefit obligation at the end of measurement period	$	127,394	$	182,964
Funded status at end of year (fair value of plan assets less benefit obligation)	$	81,744	$	80,509

The decrease in the projected benefit obligation ("PBO") from $183.0 million as of December 31, 2021 to $127.4 million as of December 31, 2022, was the result of an increase in the discount rate from 3.23% to 5.32% and assumption updates for IRS mortality tables, partially offset by demographic losses driven by termination experience, salary increases greater than assumed, and the impact of plan amendments.

The asset allocation for the Pension Plan as of each measurement date, by asset category, was as follows:

 

		Percentage of Plan Assets
Asset category	Target Allocation	2022		2021
Equity securities	50% - 100%	84	%	82	%
Fixed income and cash equivalents	remaining balance	16	%	18	%
Total		100	%	100	%

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The investment policy, as established by the Retirement Plan Committee, is to invest assets according to the target allocation stated above. Assets will be reallocated periodically based on the investment strategy of the Retirement Plan Committee. The investment policy is reviewed periodically.

The expected long-term rate of return on plan assets used to measure the benefit obligation was 6.92% at both December 31, 2022 and December 31, 2021. This return was based on the expected long-term return of each of the asset categories, weighted based on the median of the target allocation for each class.

The accumulated benefit obligation for the Pension Plan was $106.3 million and $146.2 million at December 31, 2022 and 2021, respectively.

On November 17, 2009, the Park Pension Plan completed the purchase of 115,800 common shares of Park for $7.0 million or $60.45 per share. At December 31, 2022 and 2021, the fair value of the 115,800 common shares held by the Pension Plan was $16.3 million, or $140.75 per share and $15.9 million, or $137.31 per share, respectively.

The weighted average assumptions used to determine benefit obligations at December 31, 2022, 2021 and 2020 were as follows:

 

	2022		2021		2020
Discount rate	5.32	%	3.23	%	3.00	%
Rate of compensation increase
Under age 30	8.25	%	8.25	%	8.25	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40-49	5.00	%	5.00	%	5.00	%
Ages 50-54	4.25	%	4.25	%	4.25	%
Ages 55-59	3.75	%	3.75	%	3.75	%
Ages 60-64	3.50	%	3.50	%	3.50	%
Ages 65 and over	3.25	%	3.25	%	3.25	%
Interest crediting rate	4.07	%	N/A		N/A

The estimated future pension benefit payments reflecting expected future service for the next ten years are shown below (in thousands):

2023	$	9,684
2024	9,769
2025	10,143
2026	10,111
2027	11,053
2028-2032	51,388
Total	$	102,148

The following table shows ending balances of accumulated other comprehensive loss at December 31, 2022 and 2021.

 

(In thousands)	2022		2021
Prior service (cost) credit	$	(436)	$	137
Net actuarial loss	(8,020)		(7,469)
Total	(8,456)		(7,332)
Deferred taxes	1,776		1,540
Accumulated other comprehensive loss	$	(6,680)	$	(5,792)

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Using actuarial measurement dates of December 31 for 2022, 2021 and 2020, components of net periodic benefit income and other amounts recognized in other comprehensive (loss) income were as follows:

 

(In thousands)	2022		2021		2020		Affected Line Item in the Consolidated Statements of Income
Components of net periodic benefit income (loss) and other amounts recognized in other comprehensive (loss) income
Service cost	$	(9,749)	$	(9,916)	$	(8,319)	Employee benefits
Interest cost	(5,705)		(5,359)		(5,283)		Other components of net periodic benefit income
Expected return on plan assets	17,798		15,731		14,410		Other components of net periodic benefit income
Recognized net actuarial loss and prior service cost	15		(2,220)		(1,175)		Other components of net periodic benefit income
Net periodic benefit income (loss)	$	2,359	$	(1,764)	$	(367)
Net actuarial (loss) gain and prior service credit	$	(1,109)	$	34,019	$	(10,981)
Amortization of net (gain) loss	(15)		2,220		1,175
Total recognized in other comprehensive (loss) income	(1,124)		36,239		(9,806)
Total recognized in net benefit income (loss) and other comprehensive income (loss)	$	1,235	$	34,475	$	(10,173)

The weighted average assumptions used to determine net periodic benefit income (loss) for the years ended December 31, 2022, 2021 and 2020 are listed below:

 

	2022		2021		2020
Discount rate	3.23	%	3.00	%	3.53	%
Rate of compensation increase
Under age 30	8.25	%	8.25	%	10.00	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40-49	5.00	%	5.00	%	4.00	%
Ages 50-54	4.25	%	4.25	%	3.00	%
Ages 55-59	3.75	%	3.75	%	3.00	%
Ages 60-64	3.50	%	3.50	%	3.00	%
Ages 65 and over	3.25	%	3.25	%	3.00	%
Expected long-term return on plan assets	6.92	%	7.00	%	7.00	%

U.S. GAAP defines fair value as the price that would be received by Park for an asset or paid by Park to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date, using the most advantageous market for the asset or liability. The fair values of equity securities, consisting of mutual fund investments and common stock held by the Pension Plan, are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs). Additionally, due to their short-term nature, the fair value of interest bearing demand deposits is determined by reference to their face value (Level 1 inputs). Interest bearing time deposits, United States Government agency obligations and corporate bonds are valued by the trustee based on yields available on comparable securities of issuers with similar credit ratings as of the end of the year (Level 2 inputs). No investments were categorized as Level 3 inputs.

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The fair value of the plan assets at December 31, 2022 and December 31, 2021, by asset class, is as follows.

	Fair Value Measurements				Fair Value Measurements
	at December 31, 2022, Using				at December 31, 2021, Using
(In thousands)	(Level 1)		(Level 2)		(Level 1)		(Level 2)
Interest-bearing account	$	1,959	$	3,910	$	3,222	$	4,731
Mutual funds	46,093		—		60,987		—
U.S. Government agency obligations	—		12,513		—		15,254
Corporate bonds	—		12,562		—		16,815
Common stocks	132,101		—		162,464		—
Total	$	180,153	$	28,985	$	226,673	$	36,800

Salary Deferral Plan

The Corporation has a voluntary salary deferral plan (the Corporation's Employees Stock Ownership Plan) covering substantially all of the employees of the Corporation and its subsidiaries. Eligible employees may contribute a portion of their compensation subject to a maximum statutory limitation. The Corporation provides a matching contribution established annually by the Corporation. Contribution expense for the Corporation was $4.6 million, $4.3 million, and $4.2 million for 2022, 2021 and 2020, respectively.

Supplemental Executive Retirement Plan

The Corporation has entered into Supplemental Executive Retirement Plan Agreements (the "SERP Agreements") with certain key officers of Park National Corporation and its subsidiaries which provide defined pension benefits in excess of limits imposed by federal income tax law. The accrued benefit cost for the SERP Agreements totaled $14.2 million and $13.4 million for 2022 and 2021, respectively, and is recorded within "Other liabilities" on the Consolidated Balance Sheet. The expense for the Corporation was as follows:

(In thousands)	2022		2021		2020		Affected Line Item in the Consolidated Statements of Income
Service cost	$	1,091	$	1,345	$	1,680	Employee benefits
Interest cost	564		510		403		Miscellaneous expense
Total SERP expense	$	1,655	$	1,855	$	2,083

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22. Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax assets and liabilities are as follows:

 

December 31 (In thousands)	2022		2021
Deferred tax assets:
Allowance for credit losses	$	18,615	$	18,153
Accumulated other comprehensive loss – Pension Plan	1,776		1,540
Accumulated other comprehensive loss – Unrealized losses on swaps	—		55
Accumulated other comprehensive loss – Unrealized losses on debt securities AFS	25,443		—
Deferred compensation	6,255		6,294
OREO valuation adjustments	11		909
Net deferred loan fees	1,898		2,569
Deferred contract bonus	317		432
Nonvested equity-based compensation	2,827		2,694
Net operating loss ("NOL") carryforward	2,654		3,197
Capital loss carryforward	299		—
Fixed assets	510		249
Operating lease liability	4,206		3,111
Partnership adjustments	—		69
Other	1,950		1,854
Total deferred tax assets	$	66,761	$	41,126
Deferred tax liabilities:
Accumulated other comprehensive loss - Unrealized gains on debt securities AFS	$	—	$	5,623
Deferred investment income	4,890		6,363
Pension Plan	19,678		19,182
MSRs	3,445		3,333
Partnership adjustments	884		—
Purchase accounting adjustments	952		880
Operating lease right-of-use asset	3,837		2,917
Lessor adjustments	2,325		2,764
Other	565		514
Total deferred tax liabilities	$	36,576	$	41,576
Net deferred tax asset (liability)	$	30,185	$	(450)

As of December 31, 2022 and 2021, Park had a net deferred tax asset balance related to federal NOL carryforwards of approximately $2.4 million and $2.8 million, respectively, which expire at various dates from 2031-2039. Park also had a net deferred tax asset balance related to state NOL carryforwards of approximately $0.3 million and $0.4 million at December 31, 2022 and 2021, respectively, which expire at various dates from 2030-2039.

Park performs an analysis to determine if a valuation allowance against deferred tax assets is required in accordance with U.S. GAAP.  Management determined that it was not required to establish a valuation allowance against the December 31, 2022 or 2021 deferred tax assets in accordance with U.S. GAAP since it was more likely than not that the deferred tax asset will be fully utilized in future periods.

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The components of the provision for federal income taxes are shown below:

 

December 31, (In thousands)	2022		2021		2020
Currently payable
Federal	$	22,574	$	28,726	$	22,769
State	1,180		1,382		1,432
Amortization of qualified affordable housing projects	7,743		7,313		7,046
Deferred
Federal	464		(3,006)		(4,812)
State	147		(125)		287
Total	$	32,108	$	34,290	$	26,722

The following is a reconciliation of income tax expense to the amount computed at the statutory federal corporate income tax rate of 21% for the years ended December 31, 2022, 2021 and 2020.

 

	2022		2021		2020
Statutory federal corporate income tax rate	21.0	%	21.0	%	21.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest	(1.6)	%	(1.2)	%	(1.5)	%
Bank owned life insurance	(0.7)	%	(0.5)	%	(0.7)	%
Investments in qualified affordable housing projects, net of tax benefits	(0.8)	%	(0.8)	%	(1.1)	%
KSOP dividend deduction	(0.5)	%	(0.5)	%	(0.6)	%
Other	0.4	%	0.2	%	0.2	%
Effective Tax Rate	17.8	%	18.2	%	17.3	%

Park National Corporation and its subsidiaries do not pay state income tax to the state of Ohio, but pay a franchise tax based on equity. The franchise tax expense is included in "State tax expense" on Park’s Consolidated Statements of Income. Park is also subject to state income tax in various states, including North Carolina and South Carolina. State income tax expense is included in “Income taxes” on Park’s Consolidated Statements of Income. Park’s state income tax expense was $1.3 million, $1.0 million and $1.1 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.

(In thousands)	2022		2021		2020
January 1 Balance	$	339	$	633	$	954
Additions based on tax positions related to the current year	—		—		12
Additions for tax positions of prior years	25		10		—
Reductions for tax positions of prior years	—		—		—
Reductions due to statute of limitations	(295)		(304)		(333)
December 31 Balance	$	69	$	339	$	633

The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in the future periods at December 31, 2022, 2021 and 2020 was $0.1 million, $0.3 million and $0.6 million, respectively. Park does not expect the total amount of unrecognized tax benefits to significantly increase or decrease during 2023.

The income related to interest and penalties recorded on unrecognized tax benefits in the Consolidated Statements of Income for the years ended December 31, 2022, 2021, and 2020 was $56,000, $45,500, and $35,000, respectively. The amount accrued for interest and penalties at December 31, 2022, 2021 and 2020 was $9,500, $65,500 and $111,000, respectively.

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Park National Corporation and its subsidiaries are subject to U.S. federal income tax and income tax in various state jurisdictions. The Corporation is subject to routine audits of tax returns by the Internal Revenue Service and states in which we conduct business. No material adjustments have been made on closed federal and state tax audits. Generally, all tax years ended prior to December 31, 2019 are closed to examination by federal and state taxing authorities.

23. Accumulated Other Comprehensive (Loss) Income

Other comprehensive (loss) income components, net of income tax, are shown in the following table for the years ended December 31, 2022, 2021 and 2020.

(in thousands)		Changes in Pension Plan assets and benefit obligations		Unrealized gains (losses) on AFS debt securities		Unrealized net holding loss on cash flow hedge		Total
Beginning balance at January 1, 2022		$	(5,792)	$	21,153	$	(206)	$	15,155
	Other comprehensive (loss) income before reclassifications	(876)		(116,867)		154		$	(117,589)
	Amounts reclassified from accumulated other comprehensive loss	(12)		—		52		$	40
Net current period other comprehensive (loss) income		$	(888)	$	(116,867)	$	206	$	(117,549)
Ending balance at December 31, 2022		$	(6,680)	$	(95,714)	$	—	$	(102,394)
Beginning balance at January 1, 2021		$	(34,421)	$	40,690	$	(698)	$	5,571
	Other comprehensive income (loss) before reclassifications	26,875		(19,537)		492		$	7,830
	Amounts reclassified from accumulated other comprehensive income	1,754		—		—		$	1,754
Net current period other comprehensive income (loss)		$	28,629	$	(19,537)	$	492	$	9,584
Ending balance at December 31, 2021		$	(5,792)	$	21,153	$	(206)	$	15,155
Beginning balance at January 1, 2020		$	(26,674)	$	17,539	$	(454)	$	(9,589)
	Other comprehensive (loss) income before reclassifications	(8,675)		25,747		(244)		$	16,828
	Amounts reclassified from accumulated other comprehensive income	928		(2,596)		—		$	(1,668)
Net current period other comprehensive (loss) income		$	(7,747)	$	23,151	$	(244)	$	15,160
Ending balance at December 31, 2020		$	(34,421)	$	40,690	$	(698)	$	5,571

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The following table provides information concerning amounts reclassified out of accumulated other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020:

		Amount Reclassified from Accumulated Other Comprehensive (Loss) Income						Affected Line Item in the Consolidated Statements of Income
(In thousands)		2022		2021		2020
Amortization of defined benefit pension items
	Accretion of prior service credit	$	(15)	$	(15)	$	(15)	Employee benefits
	Amortization of net loss	—		2,235		1,190		Employee benefits
(Loss) Income before income taxes		(15)		2,220		1,175		Income before income taxes
	Income tax effect	(3)		466		247		Income taxes
	Net of income tax	$	(12)	$	1,754	$	928	Net income
Unrealized gains & losses on AFS debt securities
	Net gain on the sale of debt securities	$	—	$	—	$	(3,286)	Net gain on the sale of debt securities
Income before income taxes		—		—		(3,286)		Income before income taxes
	Income tax effect	—		—		(690)		Income taxes
	Net of income tax	$	—	$	—	$	(2,596)	Net income
Unrealized net holding loss on cash flow hedge
	Loss due to early termination of borrowing interest rate swap	$	66	$	—	$	—	Miscellaneous expense
Loss before income taxes		66		—		—		Income before income taxes
	Income tax effect	14		—		—		Income taxes
	Net of income tax	$	52	$	—	$	—	Net income

24. Earnings Per Common Share

U.S. GAAP requires the reporting of basic and diluted earnings per common share. Basic earnings per common share excludes any dilutive effects of PBRSUs and TBRSUs.

The following table sets forth the computation of basic and diluted earnings per common share:

 

Year ended December 31 (In thousands, except share data)	2022		2021		2020
Numerator:
Net income	$	148,351	$	153,945	$	127,923
Denominator:
Weighted-average common shares outstanding	16,246,009		16,291,016		16,302,825
Effect of dilutive PBRSUs and TBRSUs	119,300		134,190		104,677
Weighted-average common shares outstanding adjusted for the effect of dilutive PBRSUs and TBRSUs	16,365,309		16,425,206		16,407,502
Earnings per common share:
Basic earnings per common share	$	9.13	$	9.45	$	7.85
Diluted earnings per common share	$	9.06	$	9.37	$	7.80

Park awarded 52,335, 61,890 and 62,265 PBRSUs to certain employees during the years ended December 31, 2022, 2021 and 2020, respectively.

During the years ended December 31, 2021 and 2020, Park repurchased 75,000 and 76,000 common shares, respectively, to fund the PBRSUs, TBRSUs and common shares awarded to directors of Park and to directors of PNB (and its divisions) and

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repurchased 62,659 common shares during the year ended December 31, 2021 pursuant to Park's previously announced stock repurchase authorizations. There were no common shares repurchased during the year ended December 31, 2022.

25. Dividend Restrictions

Bank regulators limit the amount of dividends a subsidiary bank can declare in any calendar year without obtaining prior approval. At December 31, 2022, approximately $121.4 million of the total shareholders’ equity of PNB was available for the payment of dividends to Park National Corporation, without approval by the applicable regulatory authorities.

26. Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk

The Corporation is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include loan commitments and standby letters of credit. The financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Financial Statements.

The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those financial instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Since many of the loan commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers.

The total amounts of off-balance sheet financial instruments with credit risk were as follows:

 

December 31 (In thousands)	2022		2021
Loan commitments	$	1,416,699	$	1,364,224
Standby letters of credit	30,468		18,216

The loan commitments are generally for variable rates of interest.

The Corporation grants retail, commercial and commercial real estate loans to customers primarily located in Ohio, Kentucky, North Carolina and South Carolina with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon the extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and real estate.

Although the Corporation has a diversified loan portfolio, a substantial portion of the borrowers’ ability to honor their contracts is dependent upon the economic conditions of the borrowers' respective geographic locations and industries.

27. Fair Value

The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that Park uses to measure fair value are as follows:

•Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that Park has the ability to access as of the measurement date.

•Level 2: Level 1 inputs for assets or liabilities that are not actively traded. Also consists of an observable market price for a similar asset or liability. This includes the use of “matrix pricing” to value debt securities absent the exclusive use of quoted prices.

•Level 3: Consists of unobservable inputs that are used to measure fair value when observable market inputs are not available. This could include the use of internally developed models, financial forecasting and similar inputs.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the balance sheet date. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and Park must use other valuation methods to develop a fair value. The fair value of individually evaluated collateral dependent loans is typically based on the fair

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value of the underlying collateral, which is estimated through third-party appraisals in accordance with Park's valuation requirements under its commercial and real estate loan policies.

Assets and Liabilities Measured at Fair Value on a Recurring Basis:

The following table presents assets and liabilities measured at fair value on a recurring basis:

 

Fair Value Measurements at December 31, 2022 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2022
Assets
Investment securities:
Obligations of U.S. Government sponsored entities	$	—	$	37,213	$	—	$	37,213
Obligations of states and political subdivisions	—		406,711		—		406,711
U.S. Government sponsored entities’ asset-backed securities	—		756,761		—		756,761
Collateralized loan obligations	—		516,539		—		516,539
Corporate debt securities	—		9,472		7,000		16,472
Equity securities	1,420		—		439		1,859
Mortgage loans held for sale	—		2,149		—		2,149
Mortgage IRLCs	—		46		—		46
Loan interest rate swaps	—		1,508		—		1,508
Liabilities
Fair value swap	$	—	$	—	$	243	$	243
Loan interest rate swaps	—		1,508		—		1,508

 

Fair Value Measurements at December 31, 2021 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2021
Assets
Investment securities:
Obligations of states and political subdivisions	$	—	$	389,591	$	—	$	389,591
U.S. Government sponsored entities’ asset-backed securities	—		854,463		—		854,463
Collateralized loan obligations	—		498,674		—		498,674
Corporate debt securities	—		11,412		—		11,412
Equity securities	1,630		—		499		2,129
Mortgage loans held for sale	—		9,387		—		9,387
Mortgage IRLCs	—		333		—		333
Loan interest rate swaps	—		1,952		—		1,952
Liabilities
Fair value swap	$	—	$	—	$	226	$	226
Borrowing interest rate swap	—		262		—		262
Loan interest rate swaps	—		1,952		—		1,952

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The following methods and assumptions were used by the Company in determining the fair value of the financial assets and liabilities discussed above:

Interest rate swaps:  The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2).

Investment securities: Fair values for investment securities are based on quoted market prices, where available (Level 1). If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows (Level 3).

Fair value swap: The fair value of the swap agreement entered into with the purchaser of the Visa Class B shares represents an internally developed estimate of the exposure based upon probability-weighted potential Visa litigation losses and is classified as Level 3.

Mortgage interest rate lock commitments: Mortgage IRLCs are based on current secondary market pricing and are classified as Level 2.

Mortgage loans held for sale: Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale are estimated using market prices for similar product types and, therefore, are classified in Level 2.

The following tables present a reconciliation of the beginning and ending balances of the Level 3 inputs for the years ended December 31, 2022 and 2021, for financial instruments measured on a recurring basis and classified as Level 3:

 

Level 3 Fair Value Measurements
(In thousands)	Corporate debt securities		Equity securities		Fair value swap
Balance at January 1, 2022	$	—	$	499	$	(226)
Total Losses
Included in other income / expense	—		(60)		(221)
Transfers into level 3	7,000		—		—
Purchases, sales, issuances and settlements, other, net	—		—		204
Balance at December 31, 2022	$	7,000	$	439	$	(243)
Balance at January 1, 2021	$	—	$	485	$	(226)
Total Gains
Included in other income	—		14		—
Balance at December 31, 2021	$	—	$	499	$	(226)

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis:

The following methods and assumptions were used by the Company in determining the fair value of assets and liabilities measured at fair value on a nonrecurring basis as described below:

Individually evaluated collateral dependent loans: When a loan is individually evaluated, it is valued at the lower of cost or fair value. Collateral dependent loans which are individually evaluated and carried at fair value have been partially charged off or receive specific allocations of the allowance for credit losses. For collateral dependent loans, fair value is generally based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value. Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and the client’s business, resulting in a Level 3 fair value classification. Individually evaluated loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Additionally, updated independent valuations are obtained annually for all collateral dependent loans in accordance with Company policy.

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OREO: Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value.

Appraisals for both individually evaluated collateral dependent loans and OREO are performed by licensed appraisers. Appraisals are generally obtained to support the fair value of collateral. In general, there are three types of appraisals received by the Company: real estate appraisals, income approach appraisals, and lot development loan appraisals. These are discussed below:

•Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. Appraisers may make adjustments to the sales prices of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management generally applies a 15% discount to real estate appraised values which management expects will cover all disposition costs (including selling costs). This 15% discount is based on historical discounts to appraised values on sold OREO properties.

•Income approach appraisals typically incorporate the annual net operating income of the business divided by an appropriate capitalization rate, as determined by the appraiser. Management generally applies a 15% discount to income approach appraised values which management expects will cover all disposition costs (including selling costs).

•Lot development loan appraisals are typically performed using a discounted cash flow analysis. Appraisers determine an anticipated absorption period and a discount rate that takes into account an investor’s required rate of return based on recent comparable sales. Management generally applies a 6% discount to lot development appraised values, which is an additional discount above the net present value calculation included in the appraisal, to account for selling costs.

Other repossessed assets: Other repossessed assets are initially recorded at fair value less costs to sell when acquired. The carrying value of other repossessed assets is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. At December 31, 2021, other repossessed assets primarily consisted of aircraft acquired as part of a loan workout. Fair value was based on Aircraft Bluebook and VREF Aircraft Value Reference values based on the model of aircraft and adjustments for flight hours, features and other variables. Such adjustments resulted in a Level 3 classification of the inputs for determining fair value. There were no repossessed assets carried at fair value at December 31, 2022.

MSRs: MSRs are carried at the lower of cost or fair value. MSRs do not trade in active, open markets with readily observable prices. For example, sales of MSRs do occur, but precise terms and conditions typically are not readily available. As such, management, with the assistance of a third-party specialist, determines fair value based on the discounted value of the future cash flows estimated to be received. Significant inputs include the discount rate and assumed prepayment speeds. The calculated fair value is then compared to market values where possible to ascertain the reasonableness of the valuation in relation to current market expectations for similar products. Accordingly, MSRs are classified as Level 2.

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The following tables present assets and liabilities measured at fair value on a nonrecurring basis. Individually evaluated collateral dependent loans secured by real estate are carried at fair value if they have been charged down to fair value or if a specific valuation allowance has been established. As of December 31, 2022 and 2021, there were no PCD loans carried at fair value. A new cost basis is established at the time a property is initially recorded in OREO. OREO properties are carried at fair value if a devaluation has been taken with respect to the property's value subsequent to the initial measurement.

Fair Value Measurements at December 31, 2022 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2022
Individually evaluated collateral dependent loans recorded at fair value:
Commercial real estate	$	—	$	—	$	5,573	$	5,573
Residential real estate	—		—		200		200
Total individually evaluated collateral dependent loans recorded at fair value	$	—	$	—	$	5,773	$	5,773
MSRs	$	—	$	1,717	$	—	$	1,717
OREO recorded at fair value	$	—	$	—	$	—	$	—
Other repossessed assets	$	—	$	—	$	—	$	—

Fair Value Measurements at December 31, 2021 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2021
Individually evaluated collateral dependent loans recorded at fair value:
Commercial real estate	$	—	$	—	$	831	$	831
Residential real estate	—		—		272		272
Total individually evaluated collateral dependent loans recorded at fair value	$	—	$	—	$	1,103	$	1,103
MSRs	$	—	$	13,482	$	—	$	13,482
OREO recorded at fair value:
Residential real estate	—		—		775		775
Total OREO recorded at fair value	$	—	$	—	$	775	$	775
Other repossessed assets	$	—	$	—	$	2,750	$	2,750

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The table below provides additional detail on those individually evaluated loans which are recorded at fair value as well as the remaining individually evaluated loan portfolio not included above. The remaining individually evaluated loans consist of 1) loans which are not collateral dependent, 2) loans which are not secured by real estate, and 3) loans carried at cost as the fair value of the underlying collateral or the present value of expected future cash flows on each of the loans exceeded the book value for each respective credit.

	December 31, 2022
(In thousands)	Loan Balance		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Total individually evaluated collateral dependent loans recorded at fair value	$	5,903	$	1,523	$	130	$	5,773
Remaining individually evaluated loans	72,438		252		3,436		69,002
Total individually evaluated loans	$	78,341	$	1,775	$	3,566	$	74,775

	December 31, 2021
(In thousands)	Recorded Investment		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Total individually evaluated collateral dependent loans recorded at fair value	$	1,291	$	240	$	188	$	1,103
Remaining individually evaluated loans	73,211		384		1,428		71,783
Total individually evaluated loans	$	74,502	$	624	$	1,616	$	72,886

The (expense) income from credit adjustments related to individually evaluated/impaired loans carried at fair value for the years ended December 31, 2022, 2021 and 2020 was $(0.9) million, $0.5 million, and $(4.7) million, respectively.

MSRs totaled $15.8 million at December 31, 2022. Of this $15.8 million MSR carrying balance, $1.7 million was recorded at fair value and included a valuation allowance of $0.2 million. The remaining $14.1 million was recorded at cost, as the fair value exceeded cost at December 31, 2022. At December 31, 2021, MSRs totaled $15.3 million. Of this $15.3 million MSR carrying balance, $13.5 million was recorded at fair value and included a valuation allowance of $1.6 million. The remaining $1.8 million was recorded at cost, as the fair value exceeded cost at December 31, 2021. The income (expense) related to MSRs carried at fair value for the years ended December 31, 2022, 2021 and 2020 was $1.4 million, $1.6 million and $(2.4) million, respectively.

Total OREO held by Park at December 31, 2022 and 2021 was $1.4 million and $0.8 million, respectively. At December 31, 2022, there was no OREO held by Park that was carried at fair value due to fair value adjustments made subsequent to the initial OREO measurement. At December 31, 2021, all of Park's OREO was carried at fair value. The net income related to OREO fair value adjustments was $11.3 million, $32,000 and $185,000 for the years ended December 31, 2022, 2021 and 2020, respectively.

Other repossessed assets totaled $0.6 million at December 31, 2022, of which there were no repossessed assets recorded at fair value. Other repossessed asset totaled $3.3 million at December 31, 2021, of which $2.8 million were recorded at fair value. There was no expense related to fair value adjustments on other repossessed assets during the year ended December 31, 2022. The net expense related to fair value adjustments on other repossessed assets was $414,000 and $435,000 for the years ended December 31, 2021 and December 31, 2020, respectively.

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The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2022 and December 31, 2021:

December 31, 2022
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated collateral dependent loans:
Commercial real estate	$	5,573	Sales comparison approach	Adj to comparables	0.0% - 202.0% (19.4%)
			Income approach	Capitalization rate	7.0% - 10.0% (7.9%)
			Cost approach	Entrepreneurial profit	10.0% - 12.0% (11.4%)
			Cost approach	Accumulated depreciation	38.8% (38.8%)
Residential real estate	$	200	Sales comparison approach	Adj to comparables	1.9% - 119.8% (17.4%)

December 31, 2021
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated collateral dependent loans:
Commercial real estate	$	831	Sales comparison approach	Adj to comparables	0.0% - 232.0% (28.3%)
Residential real estate	$	272	Sales comparison approach	Adj to comparables	0.5% - 78.6% (11.6%)
			Cost approach	Accumulated depreciation	8.3% (8.3%)
Other real estate owned:
Residential real estate	$	775	Sales comparison approach	Adj to comparables	5.0% - 32.5% (19.1%)

Assets Measured at Net Asset Value:

Park's portfolio of Partnership Investments are valued using the NAV practical expedient in accordance with ASC 820.

At December 31, 2022 and December 31, 2021, Park had Partnerships Investments with a NAV of $24.4 million and $18.0 million, respectively. At December 31, 2022 and December 31, 2021, Park had $20.3 million and $8.4 million in unfunded commitments related to these Partnership Investments. For the years ended December 31, 2022, 2021 and 2020, Park recognized income of $2.4 million, $4.5 million and $2.4 million, respectively, related to these Partnership Investments.

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The fair value of certain financial instruments at December 31, 2022 and December 31, 2021 was as follows:

	December 31, 2022
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	189,728	$	189,728	$	—	$	—	$	189,728
Investment securities (1)	1,733,696		—		1,726,696		7,000		1,733,696
Other investment securities (2)	1,859		1,420		—		439		1,859
Mortgage loans held for sale	2,149		—		2,149		—		2,149
Mortgage IRLCs	46		—		46		—		46
Individually evaluated loans carried at fair value	5,773		—		—		5,773		5,773
Other loans, net	7,048,544		—		—		6,918,326		6,918,326
Loans receivable, net	$	7,056,512	$	—	$	2,195	$	6,924,099	$	6,926,294
Financial liabilities:
Time deposits	$	554,445	$	—	$	552,443	$	—	$	552,443
Other	1,325		1,325		—		—		1,325
Deposits (excluding demand deposits)	$	555,770	$	1,325	$	552,443	$	—	$	553,768
Short-term borrowings	$	227,342	$	—	$	227,342	$	—	$	227,342
Subordinated notes	188,667		—		177,928		—		177,928
Derivative financial instruments - assets:
Loan interest rate swaps	$	1,508	$	—	$	1,508	$	—	$	1,508
Derivative financial instruments - liabilities:
Fair value swap	$	243	$	—	$	—	$	243	$	243
Loan interest rate swaps	1,508		—		1,508		—		1,508

(1) Includes debt securities AFS.

(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.

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	December 31, 2021
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	219,180	$	219,180	$	—	$	—	$	219,180
Investment securities (1)	1,754,140		—		1,754,140		—		1,754,140
Other investment securities (2)	2,129		1,630		—		499		2,129
Mortgage loans held for sale	9,387		—		9,387		—		9,387
Mortgage IRLCs	333		—		333		—		333
Individually evaluated loans carried at fair value	1,103		—		—		1,103		1,103
Other loans, net	6,777,102		—		—		6,783,848		6,783,848
Loans receivable, net	$	6,787,925	$	—	$	9,720	$	6,784,951	$	6,794,671
Financial liabilities:
Time deposits	$	711,660	$	—	$	714,307	$	—	$	714,307
Other	1,465		1,465		—		—		1,465
Deposits (excluding demand deposits)	$	713,125	$	1,465	$	714,307	$	—	$	715,772
Short-term borrowings	$	238,786	$	—	$	238,786	$	—	$	238,786
Subordinated notes	188,210		—		207,912		—		207,912
Derivative financial instruments - assets:
Loan interest rate swaps	$	1,952	$	—	$	1,952	$	—	$	1,952
Derivative financial instruments - liabilities:
Fair value swap	$	226	$	—	$	—	$	226	$	226
Borrowing interest rate swap	262		—		262		—		262
Loan interest rate swaps	1,952		—		1,952		—		1,952

(1) Includes debt securities AFS.

(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.

28. Capital Ratios

Financial institution regulators have established guidelines for minimum capital ratios for banks, thrifts and bank holding companies. Park has elected not to include the net unrealized gain or loss on debt securities AFS in computing regulatory capital. Park has adopted the Basel III regulatory capital framework as approved by the federal banking agencies. Under the Basel III regulatory capital framework, in order to avoid limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers, Park must hold a capital conservation buffer of 2.50% above the adequately capitalized risk-based capital ratios. The amounts shown below as the adequately capitalized ratio plus capital conservation buffer include the 2.50% buffer. The Federal Reserve Board has also adopted requirements Park must maintain to be deemed "well-capitalized" and to remain a financial holding company.

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Each of PNB and Park met all of the well-capitalized ratio guidelines applicable to it at December 31, 2022. The following table indicates the capital ratios for PNB and Park at December 31, 2022 and 2021.

 

	As of December 31, 2022
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
PNB	8.34	%	10.69	%	10.69	%	12.15	%
Park	9.90	%	12.76	%	12.57	%	16.07	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well-capitalized ratio - PNB	5.00	%	8.00	%	6.50	%	10.00	%
Well-capitalized ratio - Park	N/A		6.00	%	N/A		10.00	%

 

	As of December 31, 2021
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
PNB	8.58	%	11.05	%	11.05	%	12.56	%
Park	9.77	%	12.57	%	12.37	%	16.05	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well-capitalized ratio - PNB	5.00	%	8.00	%	6.50	%	10.00	%
Well-capitalized ratio - Park	N/A		6.00	%	N/A		10.00	%

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The following table reflects various measures of capital for Park and PNB:

 

					To Be Adequately Capitalized				To Be Well-Capitalized
(In thousands)	Actual Amount		Ratio		Amount		Ratio		Amount		Ratio
At December 31, 2022
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	965,470	12.15	%	$	635,769	8.00	%	$	794,711	10.00	%
Park	1,283,409		16.07	%	639,102		8.00	%	798,877		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	849,886	10.69	%	$	476,827	6.00	%	$	635,769	8.00	%
Park	1,019,149		12.76	%	479,326		6.00	%	479,326		6.00	%
Leverage Ratio (to average total assets)
PNB	$	849,886	8.34	%	$	407,836	4.00	%	$	509,795	5.00	%
Park	1,019,149		9.90	%	411,838		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	$	849,886	10.69	%	$	357,620	4.50	%	$	516,562	6.50	%
Park	1,004,149		12.57	%	359,495		4.50	%	N/A		N/A
At December 31, 2021
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	937,438	12.56	%	$	597,094	8.00	%	$	746,368	10.00	%
Park	1,202,225		16.05	%	599,102		8.00	%	748,878		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	825,045	11.05	%	$	447,821	6.00	%	$	597,094	8.00	%
Park	941,536		12.57	%	449,327		6.00	%	449,327		6.00	%
Leverage Ratio (to average total assets)
PNB	$	825,045	8.58	%	$	384,582	4.00	%	$	480,728	5.00	%
Park	941,536		9.77	%	385,313		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	825,045		11.05	%	335,866		4.50	%	485,139		6.50	%
Park	926,536		12.37	%	336,995		4.50	%	N/A		N/A

29. Segment Information

The Corporation is a financial holding company headquartered in Newark, Ohio. The reportable segment for the Corporation is its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio). "All Other", which primarily consists of Park as the "Parent Company", SEPH and GFSC, is shown to reconcile the segment totals to the Consolidated Balance Sheets and the Consolidated Statements of Income.

U.S. GAAP requires management to disclose information about the different types of business activities in which a company engages and also information on the different economic environments in which a company operates, so that the users of the financial statements can better understand a company’s performance, better understand the potential for future cash flows, and make more informed judgments about the company as a whole. Park has one reportable segment as: (i) discrete financial

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information is available for this reportable segment and (ii) this segment is aligned with internal reporting to Park’s Chief Executive Officer, who is the chief operating decision-maker.  

Operating results for the year ended December 31, 2022 (In thousands)
	PNB		All Other		Total
Net interest income	$	350,646	$	(3,587)	$	347,059
Provision for (recovery of) credit losses	5,834		(1,277)		4,557
Other income	115,211		20,724		135,935
Other expense	283,670		14,308		297,978
Income before income taxes	176,353		4,106		180,459
Income tax expense (benefit)	33,110		(1,002)		32,108
Net income	$	143,243	$	5,108	$	148,351
Balances at December 31, 2022
Assets	$	9,815,951	$	39,042	$	9,854,993
Loans	7,141,362		529		7,141,891
Deposits	8,534,320		(299,605)		8,234,715

Operating results for the year ended December 31, 2021 (In thousands)
	PNB		All Other		Total
Net interest income	$	328,398	$	1,495	$	329,893
Recovery of credit losses	(8,554)		(3,362)		(11,916)
Other income	126,802		3,142		129,944
Other expense	266,678		16,840		283,518
Income (loss) before income taxes	197,076		(8,841)		188,235
Income tax expense (benefit)	37,615		(3,325)		34,290
Net income (loss)	$	159,461	$	(5,516)	$	153,945
Balances at December 31, 2021
Assets	$	9,538,217	$	22,037	$	9,560,254
Loans	6,868,935		2,187		6,871,122
Deposits	8,157,720		(253,192)		7,904,528

Operating results for the year ended December 31, 2020 (In thousands)
	PNB		All Other		Total
Net interest income	$	326,375	$	1,255	$	327,630
Provision for (recovery of) credit losses	30,813		(18,759)		12,054
Other income	124,231		1,433		125,664
Other expense	268,938		17,657		286,595
Income before income taxes	150,855		3,790		154,645
Income tax expense (benefit)	27,125		(403)		26,722
Net income	$	123,730	$	4,193	$	127,923
Balances at December 31, 2020
Assets	$	9,236,915	$	42,106	$	9,279,021
Loans	7,165,840		11,945		7,177,785
Deposits	7,820,983		(248,625)		7,572,358

The operating results in the "All Other" column are used to reconcile the segment totals to the Consolidated Statements of Income. The reconciling amounts for consolidated total assets, loans and deposits consist of the elimination of intersegment

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borrowings, intersegment loans, intersegment deposits, and the assets of the Parent Company, SEPH and GFSC which were not eliminated.

The following is a reconciliation of financial information for the reportable segments to the Corporation’s consolidated totals:

 

	2022
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	350,646	$	13,819	$	269,851	$	33,110	$	9,815,951	$	8,534,320
Elimination of intersegment items	1,250		—		—		—		(3,042)		(299,993)
"All Other" totals - not eliminated	(4,837)		—		14,308		(1,002)		42,084		388
Totals	$	347,059	$	13,819	$	284,159	$	32,108	$	9,854,993	$	8,234,715

 

	2021
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	328,398	$	13,265	$	253,413	$	37,615	$	9,538,217	$	8,157,720
Elimination of intersegment items	1,250		—		—		—		(1,413)		(254,060)
"All Other" totals - not eliminated	245		2		16,838		(3,325)		23,450		868
Totals	$	329,893	$	13,267	$	270,251	$	34,290	$	9,560,254	$	7,904,528

 

	2020
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	326,375	$	10,803	$	258,135	$	27,125	$	9,236,915	$	7,820,983
Elimination of intersegment items	1,250		—		—		—		(1,028)		(250,965)
"All Other" totals - not eliminated	5		11		17,646		(403)		43,134		2,340
Totals	$	327,630	$	10,814	$	275,781	$	26,722	$	9,279,021	$	7,572,358

30. Parent Company Statements

The Parent Company statements should be read in conjunction with the consolidated financial statements and the information set forth below. Investments in subsidiaries are accounted for using the equity method of accounting.

Cash represents non-interest bearing deposits with PNB. Net cash provided by operating activities reflects cash payments (received from subsidiaries) partially offset by cash payments to government entities for income taxes of $2.2 million, $4.3 million and $5.6 million in 2022, 2021 and 2020, respectively.

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Condensed Balance Sheets
December 31, 2022 and 2021
(In thousands)	2022		2021
Assets:
Cash	$	274,464	$	243,531
Investment in subsidiaries	941,826		1,020,556
Debentures receivable from PNB	25,000		25,000
Other investments	1,177		1,384
Other assets	36,636		18,852
Total assets	$	1,279,103	$	1,309,323
Liabilities:
Subordinated notes	$	188,667	$	188,210
Other payables to subsidiaries	3,625		—
Other liabilities	17,585		10,354
Total liabilities	$	209,877	$	198,564
Total shareholders’ equity	$	1,069,226	$	1,110,759
Total liabilities and shareholders’ equity	$	1,279,103	$	1,309,323

 

Condensed Statements of Income
for the years ended December 31, 2022, 2021 and 2020
(In thousands)	2022		2021		2020
Income:
Dividends from subsidiaries	$	120,000	$	115,500	$	97,000
Interest and dividends	1,250		1,250		1,250
Other	2,478		2,016		98
Total income	123,728		118,766		98,348
Expense:
Interest expense	$	8,833	$	8,887	$	4,311
Other, net	10,504		10,707		12,234
Total expense	19,337		19,594		16,545
Income before income taxes and equity in undistributed income of subsidiaries	$	104,391	$	99,172	$	81,803
Income tax benefit	5,142		4,897		4,390
Income before equity in undistributed income of subsidiaries	109,533		104,069		86,193
Equity in undistributed income of subsidiaries	38,818		49,876		41,730
Net income	$	148,351	$	153,945	$	127,923
Other comprehensive (loss) income (1)	(117,549)		9,584		15,160
Comprehensive income	$	30,802	$	163,529	$	143,083

(1) See Consolidated Statements of Comprehensive Income for other comprehensive (loss) income detail.

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Statements of Cash Flows
for the years ended December 31, 2022, 2021 and 2020
(In thousands)	2022		2021		2020
Operating activities:
Net income	$	148,351	$	153,945	$	127,923
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income of subsidiaries	(38,818)		(49,876)		(41,730)
Compensation expense for issuance of treasury shares to directors	1,320		1,676		1,274
Share-based compensation expense	5,879		6,345		5,998
Gain (loss) on equity securities, net	207		(1,218)		245
(Increase) decrease in other assets	(2,514)		8,249		6,632
Increase (decrease) in other liabilities	4,896		(2,407)		(6,325)
Net cash provided by operating activities	119,321		116,714		94,017
Investing activities:
Proceeds from sales of securities	—		934		—
Other, net	(9,021)		2,332		(2,621)
Net cash (used in) provided by investing activities	(9,021)		3,266		(2,621)
Financing activities:
Cash dividends paid	(76,604)		(74,306)		(70,353)
Proceeds from issuance of long-term debt	—		—		172,620
Repayment of long-term debt	—		(32,500)		(10,000)
Repurchase of treasury shares	—		(16,048)		(7,507)
Cash payment for fractional shares	(2)		(6)		(3)
Value of common shares withheld to pay employee income taxes	(2,761)		(2,403)		(1,002)
Net cash (used in) provided by financing activities	(79,367)		(125,263)		83,755
Increase (decrease) in cash	30,933		(5,283)		175,151
Cash at beginning of year	243,531		248,814		73,663
Cash at end of year	$	274,464	$	243,531	$	248,814

31. Revenue from Contracts with Customers

All of Park's revenue from contracts with customers within the scope of ASC 606 is recognized within "Other income" in the Consolidated Statements of Income.

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The following table presents the Corporation's sources of other income by revenue stream and operating segment for the years ended December 31, 2022, 2021, and 2020:

	Year ended December 31, 2022
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	10,091	$	—	$	10,091
Employee benefit and retirement-related accounts	9,698		—		9,698
Investment management and investment advisory agency accounts	12,442		—		12,442
Other	1,860		—		1,860
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	6,095		—		6,095
Demand deposit account (DDA) charges	3,439		—		3,439
Other	557		—		557
Other service income (1)
Credit card	2,808		—		2,808
HELOC	397		—		397
Installment	163		—		163
Real estate	9,952		—		9,952
Commercial	1,214		761		1,975
Debit card fee income	26,046		—		26,046
Bank owned life insurance income (2)	4,656		1,444		6,100
ATM fees	2,273		—		2,273
Gain on the sale of OREO, net	4		5,607		5,611
OREO valuation markup	30		12,009		12,039
Gain on equity securities, net (2)	2,068		887		2,955
Other components of net periodic pension benefit income (2)	11,819		289		12,108
Miscellaneous (3)	9,599		(273)		9,326
Total other income	$	115,211	$	20,724	$	135,935

(1) Of the $15.3 million of aggregate revenue included within "Other service income", approximately $5.6 million is within the scope of ASC 606, with the remaining $9.7 million consisting primarily of residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $9.3 million, all of which are within the scope of ASC 606.

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	Year ended December 31, 2021
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	10,264	$	—	$	10,264
Employee benefit and retirement-related accounts	9,705		—		9,705
Investment management and investment advisory agency accounts	12,620		—		12,620
Other	1,860		—		1,860
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	5,244		—		5,244
Demand deposit account (DDA) charges	3,074		—		3,074
Other	514		—		514
Other service income (1)
Credit card	2,559		4		2,563
HELOC	389		—		389
Installment	148		—		148
Real estate	24,907		—		24,907
Commercial	1,280		525		1,805
Debit card fee income	25,865		—		25,865
Bank owned life insurance income (2)	4,202		695		4,897
ATM fees	2,379		—		2,379
Loss on the sale of OREO, net	(4)		—		(4)
OREO valuation markup	64		—		64
Gain on equity securities, net (2)	3,793		1,218		5,011
Other components of net periodic pension benefit income (2)	7,946		206		8,152
Miscellaneous (3)	9,993		494		10,487
Total other income	$	126,802	$	3,142	$	129,944

(1) Of the $29.8 million of revenue included within "Other service income", approximately $5.3 million is within the scope of ASC 606, with the remaining $24.5 million consisting primarily of residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $10.5 million, all of which are within the scope of ASC 606.

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	Year ended December 31, 2020
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	8,761	$	—	$	8,761
Employee benefit and retirement-related accounts	7,921		—		7,921
Investment management and investment advisory agency accounts	10,652		—		10,652
Other	1,539		—		1,539
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	4,999		—		4,999
Demand deposit account (DDA) charges	2,920		—		2,920
Other	526		—		526
Other service income (1)
Credit card	2,108		4		2,112
HELOC	424		—		424
Installment	165		—		165
Real estate	32,827		62		32,889
Commercial	1,493		528		2,021
Debit card fee income	22,160		—		22,160
Bank owned life insurance income (2)	4,521		268		4,789
ATM fees	1,773		—		1,773
Gain on the sale of OREO, net	836		371		1,207
OREO valuation markup	105		—		105
Net gain on sale of debt securities (2)	3,286		—		3,286
Gain (loss) on equity securities, net (2)	2,429		(247)		2,182
Other components of net periodic pension benefit income (2)	7,759		193		7,952
Miscellaneous (3)	7,027		254		7,281
Total other income	$	124,231	$	1,433	$	125,664

(1) Of the $37.6 million of revenue included within "Other service income", approximately $5.2 million is within the scope of ASC 606, with the remaining $32.4 million consisting primarily of residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $7.3 million, all of which are within the scope of ASC 606.

A description of Park's material revenue streams accounted for under ASC 606 follows:

Income from fiduciary activities (gross): Park earns fiduciary fee income and investment brokerage fees from its contracts with trust customers for various fiduciary and investment-related services. These fees are earned over time as the Company provides the contracted monthly and quarterly services and are generally assessed based on the market value of the trust assets.

Service charges on deposit accounts and ATM fees: The Corporation earns fees from the Corporation's deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering fees, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are generally recognized at the end of the month, representing the period over which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance.

Other service income: Other service income includes income from (1) the sale and servicing of loans sold to the secondary market, (2) incentive income from third-party credit card issuers, and (3) loan customers for various loan-related activities and services. Income related to the sale and servicing of loans sold to the secondary market is included within "Other service income", but is not within the scope of ASC 606. Services that fall within the scope of ASC 606 are recognized as revenue when the Company satisfies the Company's performance obligation to the customer.

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Debit card fee income: Park earns interchange fees from debit cardholder transactions conducted primarily through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, net of card network fees, concurrently with the transaction processing services provided to the cardholder.

Gain or loss on sale of OREO, net: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of delivery of an executed deed. When Park finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform the buyer's obligation under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.

OREO valuation markup: The Corporation records an OREO valuation markup immediately prior to the transfer of a loan to OREO when the fair market value of the property less costs to sell exceeds the principal balance of the loan.

32. Subsequent Events

On February 28, 2023, Park National Bank reached an agreement with the DOJ to increase the efforts of Park National Bank to promote home lending in the Columbus, Ohio market. The agreement, which is reflected in the proposed consent order filed on February 28, 2023, in the U.S. District Court for the Southern District of Ohio (the “DOJ Consent Order”), serves to voluntarily resolve all claims of the U.S. alleging that Park National Bank’s mortgage lending practices within the Columbus, Ohio Metropolitan Statistical Area violated the Fair Housing Act and the Equal Credit Opportunity Act.

In accordance with the terms of the DOJ Consent Order, Park National Bank, will invest a minimum of $7.75 million over five years in a loan subsidy fund to increase credit opportunities for home mortgage loans, home improvement loans, home refinance loans and home equity loans and lines of credit for consumers applying for loans in majority-minority census tracts ("MMCTs") in Fairfield, Franklin, Hocking, Licking, Morrow and Perry counties in Ohio (the “Columbus Lending Area”). Park National Bank will also devote a minimum of $500,000 over five years toward one or more community development partnership programs that provide services to residents of MMCTs in the Columbus Lending Area related to credit, financial education, homeownership and foreclosure prevention; and at least $750,000 over five years toward advertising, community outreach, consumer financial education and credit counseling in the Columbus Lending Area. Park National Bank will also establish one new mortgage loan production office and one new full-service branch in MMCTs in the Columbus Lending Area and hire four lenders, one of whom will be Spanish-speaking, focused on serving these communities. In addition, Park National Bank will continue to maintain, throughout the term of the DOJ Consent Order, Park National Bank’s full-time Director of Community Home Lending and Development position, who will oversee Park National Bank’s lending in MMCTs in the Columbus Lending Area.

The DOJ Consent Order must be approved by the U.S. District Court for the Southern District of Ohio, Western Division, and once approved and entered by that Court, the DOJ Consent Order will resolve all claims by the U.S. against Park National Bank.

Park is committed to investing at least $9.0 million over five years and will record the related expenses incurred in the period in which the associated activities occur.

ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

No response required.

ITEM 9A.CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

With the participation of the Chairman of the Board and Chief Executive Officer (the principal executive officer) and the Chief Financial Officer, Secretary and Treasurer (the principal financial officer) of Park, Park’s management has evaluated the effectiveness of Park’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the fiscal year covered by this Annual Report on Form 10-K. Based on that evaluation, Park’s Chairman of the Board and Chief Executive Officer and Park’s Chief Financial Officer, Secretary and Treasurer have concluded that:

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•information required to be disclosed by Park in this Annual Report on Form 10-K and the other reports that Park files or submits under the Exchange Act would be accumulated and communicated to Park’s management, including Park's principal executive officer and Park's principal financial officer, as appropriate to allow timely decisions regarding required disclosure;

•information required to be disclosed by Park in this Annual Report on Form 10-K and the other reports that Park files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and

•Park’s disclosure controls and procedures were effective as of the end of the fiscal year covered by this Annual Report on Form 10-K.

Management’s Annual Report on Internal Control over Financial Reporting

The “MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING” is included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K.

Audit Report of the Registered Public Accounting Firm

The “REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM” is included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K.

Changes in Internal Control over Financial Reporting

There were no changes in Park’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during Park’s quarter ended December 31, 2022, that have materially affected, or are reasonably likely to materially affect, Park’s internal control over financial reporting.

ITEM 9B.OTHER INFORMATION.

No response required.

ITEM 9C.    DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.

Not applicable.

PART III

ITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

Directors, Executive Officers and Persons Nominated or Chosen to Become Directors or Executive Officers

The information required by Item 401 of SEC Regulation S-K concerning the directors of Park and the nominees for election as directors of Park at the Annual Meeting of Shareholders to be held on April 24, 2023 (the “2023 Annual Meeting”) is incorporated herein by reference from the disclosure to be included under the caption “ELECTION OF DIRECTORS (Proposal 1)” in Park’s definitive Proxy Statement relating to the 2023 Annual Meeting to be filed pursuant to SEC Regulation 14A (“Park’s 2023 Proxy Statement”).

The information required by Item 401 of SEC Regulation S-K concerning the executive officers of Park is incorporated herein by reference from the disclosure to be included under the caption “EXECUTIVE OFFICERS” in Park’s 2023 Proxy Statement.

Compliance with Section 16(a) of the Exchange Act

The information required by Item 405 of SEC Regulation S-K regarding delinquent reports required under Section 16(a) of the Securities Exchange Act of 1934, as amended, with respect to the 2022 fiscal year, is incorporated by reference

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from the disclosure to be included under the caption "BENEFICIAL OWNERSHIP OF PARK COMMON SHARES - Delinquent Section 16(a) Reports" in Park's 2023 Proxy Statement.

Committee Charters; Corporate Governance Guidelines; Code of Business Conduct and Ethics

Park’s Board of Directors has adopted charters for each of the Audit Committee, the Compensation Committee, the Executive Committee, the Nominating and Corporate Governance Committee and the Risk Committee. Park's Board of Directors has also adopted Corporate Governance Guidelines which are included as Exhibit A to the charter of the Nominating and Corporate Governance Committee.

    In accordance with the requirements of Section 807 of the NYSE American Company Guide, the Board of Directors of Park has adopted a Code of Business Conduct and Ethics covering the directors, officers and employees of Park and Park's subsidiaries, including Park’s Chairman of the Board and Chief Executive Officer (the principal executive officer), Park's President, Park’s Chief Financial Officer, Secretary and Treasurer (the principal financial officer) and Park’s Chief Accounting Officer (the principal accounting officer). Park intends to disclose the following events, if they occur, in a current report on Form 8-K within four business days following their occurrence: (A) the date and nature of any amendment to a provision of Park’s Code of Business Conduct and Ethics that (i) applies to Park’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, (ii) relates to any element of the code of ethics definition enumerated in Item 406(b) of SEC Regulation S-K, and (iii) is not a technical, administrative or other non-substantive amendment; and (B) a description of any waiver (including the nature of the waiver, the name of the person to whom the waiver was granted and the date of the waiver), including an implicit waiver, from a provision of the Code of Business Conduct and Ethics granted to Park’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions that relates to one or more of the elements of the code of ethics definition set forth in Item 406(b) of SEC Regulation S-K. In addition, Park will disclose any waivers from the provisions of the Code of Business Conduct and Ethics granted to a director or an executive officer of Park in a current report on Form 8-K within four business days following their occurrence in accordance with the requirements of the Commentary to Section 807 of the NYSE American Company Guide.

The text of each of the Code of Business Conduct and Ethics, the Audit Committee Charter, the Compensation Committee Charter, the Executive Committee Charter, the Nominating and Corporate Governance Committee Charter (including the Corporate Governance Guidelines) and the Risk Committee Charter is posted on the “Corporate Information - Governance Documents” section of the “Investor Relations” page of Park’s Internet site located at                 http://www.parknationalcorp.com. Interested persons may also obtain copies of the Code of Business Conduct and Ethics, the Audit Committee Charter, the Compensation Committee Charter, the Executive Committee Charter, the Nominating and Corporate Governance Committee Charter and the Risk Committee Charter, without charge, by writing to the Chief Financial Officer, Secretary and Treasurer of Park at Park National Corporation, 50 North Third Street, P.O. Box 3500, Newark, Ohio 43058-3500, Attention: Brady T. Burt.

Procedures for Recommending Director Nominees

Information concerning the procedures by which shareholders of Park may recommend nominees to Park's Nominating and Corporate Governance Committee and Park’s full Board of Directors is incorporated herein by reference from the disclosure to be included under the caption “CORPORATE GOVERNANCE – Nominating Procedures” in Park’s 2023 Proxy Statement. These procedures have not materially changed from those described in Park’s definitive Proxy Statement for the 2022 Annual Meeting of Shareholders held on April 25, 2022.

Audit Committee

The information required by Items 407(d)(4) and 407(d)(5) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “STRUCTURE AND MEETINGS OF BOARD OF DIRECTORS – Committees of the Board – Audit Committee” in Park’s 2023 Proxy Statement.

ITEM 11.EXECUTIVE COMPENSATION.

The information required by Item 402 of SEC Regulation S-K, with the exception of Item 402(v) of SEC Regulation S-K, is incorporated herein by reference from the disclosure to be included under the captions “EXECUTIVE COMPENSATION” and “DIRECTOR COMPENSATION” in Park’s 2023 Proxy Statement. The information required by Item 402(v) of SEC Regulation S-K to be included in Park's 2023 Proxy Statement is not incorporated into this Annual Report

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on Form 10-K and will not deemed to be incorporated by reference into any filing under the Securities Act, or the Exchange Act.

The information required by Item 407(e)(4) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION” in Park’s 2023 Proxy Statement.

The information required by Item 407(e)(5) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “EXECUTIVE COMPENSATION – Compensation Committee Report” in Park’s 2023 Proxy Statement.

ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

Beneficial Ownership of Common Shares of Park

The information required by Item 403 of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “BENEFICIAL OWNERSHIP OF PARK COMMON SHARES” in Park’s 2023 Proxy Statement.

Equity Compensation Plan Information

    The information required by Item 201(d) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption "EQUITY COMPENSATION PLAN INFORMATION" in Park's 2023 Proxy Statement.

ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

Certain Relationships and Related Person Transactions

The information required by Item 404 of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the captions “CORPORATE GOVERNANCE – Independence of Directors,” “CORPORATE GOVERNANCE – Transactions with Related Persons” and “COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION” in Park’s 2023 Proxy Statement.

Director Independence

The information required by Item 407(a) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “CORPORATE GOVERNANCE – Independence of Directors” in Park’s 2023 Proxy Statement.

ITEM 14.PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The information called for in this Item 14 is incorporated herein by reference from the disclosure to be included under the captions “AUDIT COMMITTEE MATTERS – Pre-Approval of Services Performed by Independent Registered Public Accounting Firm” and “AUDIT COMMITTEE MATTERS – Fees of Independent Registered Public Accounting Firm” in Park’s 2023 Proxy Statement.

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PART IV

ITEM 15.     EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

(a)     The following documents are filed as part of this Annual Report on Form 10-K:

(1) Consolidated Financial Statements:

Report of Independent Registered Public Accounting Firm (Crowe LLP) -- included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K

Consolidated Balance Sheets at December 31, 2022 and 2021 -- included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K

Consolidated Statements of Income for the years ended December 31, 2022, 2021 and 2020 -- included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K

Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021 and 2020 -- included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K

Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2022, 2021 and 2020 -- included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K

Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020 -- included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K

Notes to Consolidated Financial Statements -- included in "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA" of this Annual Report on Form 10-K

(2)     Financial Statement Schedules.

All schedules for which provision is made in the applicable accounting regulations of the SEC are not             required under the related instructions or are inapplicable and have been omitted.

(3)     Exhibits.

The documents listed in the Index to Exhibits that immediately precedes the "Signatures" pages of this Annual Report on Form 10-K are filed or furnished with this Annual Report on Form 10-K as exhibits or incorporated into this Annual Report on Form 10-K by reference, in each case as noted. Each management contract or compensatory plan or arrangement is identified as such in the Index to Exhibits.

(b)    The documents listed in the Index to Exhibits that immediately precedes the "Signatures" pages of this Annual Report on Form 10-K are filed or furnished with this Annual Report on Form 10-K as exhibits or incorporated into this Annual Report on Form 10-K by reference.

(c)         Financial Statement Schedules.

None.

ITEM 16.     FORM 10-K SUMMARY.

None.

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Index to Exhibits

Exhibit No.    Description of Exhibit

2.1    Agreement and Plan of Merger and Reorganization by and among Park National Corporation, The Park National Bank and NewDominion Bank, dated as of January 22, 2018 (incorporated herein by reference to Exhibit 2.1 to Park National Corporation's Current Report on Form 8-K dated and filed on January 26, 2018 (File No. 1-13006))*

2.2    Agreement and Plan of Merger and Reorganization by and between Park National Corporation and CAB Financial Corporation, dated as of September 12, 2018 (incorporated herein by reference to Exhibit 2.1 to Park National Corporation's Current Report on Form 8-K dated and filed on September 14, 2018 (File No. 1-13006))*

3.1(a)    Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on March 24, 1992 (incorporated herein by reference to Exhibit 3(a) to Park National Corporation's Form 8-B, filed on May 20, 1992 (File No. 0-18772) (“Park's Form 8-B”)) P

3.1(b)    Certificate of Amendment to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on May 6, 1993 (incorporated herein by reference to Exhibit 3(b) to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 0-18772)) P

3.1(c)    Certificate of Amendment to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on April 16, 1996 (incorporated herein by reference to Exhibit 3(a) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1996 (File No. 1-13006))

3.1(d)    Certificate of Amendment by Shareholders to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on April 22, 1997 (incorporated herein by reference to Exhibit 3(a)(1) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1997 (File No. 1-13006) (“Park's June 30, 1997 Form 10-Q”))

3.1(e)    Certificate of Amendment by Shareholders as filed with the Ohio Secretary of State on December 18, 2008 in order to evidence the adoption by the shareholders of Park National Corporation on December 18, 2008 of an amendment to Article FOURTH of Park National Corporation's Articles of Incorporation to authorize Park National Corporation to issue up to 200,000 preferred shares, without par value (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed on December 19, 2008 (File No. 1-13006))

3.1(f)    Certificate of Amendment by Directors to Articles as filed with the Ohio Secretary of State on December 19, 2008, evidencing the adoption of an amendment by the Board of Directors of Park National Corporation to Article FOURTH of Park National Corporation's Articles of Incorporation to establish the express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of Park National Corporation (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed on December 23, 2008 (File No. 1-13006))

3.1(g)    Certificate of Amendment by Shareholders as filed with the Ohio Secretary of State on April 18, 2011 in order to evidence the adoption by Park National Corporation's shareholders of an amendment to Article SIXTH of Park National Corporation's Articles of Incorporation in order to provide that shareholders do not have preemptive rights (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed on April 19, 2011 (File No. 1-13006))

3.1(h)    Certificate of Amendment by Shareholders as filed with the Ohio Secretary of State on April 26, 2022 in order to evidence the adoption by Park National Corporation's shareholders of an amendment to Park National Corporation's Articles of Incorporation to add a new Article NINTH to eliminate cumulative voting rights in the election of directors (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed on April 27, 2022 (File No. 1-13006) ("Park's April 27, 2022 Form 8-K"))

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Exhibit No.    Description of Exhibit

3.1(i)    Articles of Incorporation of Park National Corporation [This document represents the Articles of Incorporation of Park National Corporation in complied form incorporating all amendments. This compiled document has not been filed with the Ohio Secretary of State.] (incorporated herein by reference to Exhibit 3.1(i) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 (Filed No. 1-13006) ("Park's March 31, 2022 Form 10-Q"))

3.2(a)    Regulations of Park National Corporation (incorporated herein by reference to Exhibit 3(b) to Park's Form 8-B) P

3.2(b)    Certified Resolution regarding Adoption of Amendment to Subsection 2.02(A) of the Regulations of Park National Corporation by Shareholders on April 21, 1997 (incorporated herein by reference to Exhibit 3(b)(1) to Park's June 30, 1997 Form 10-Q)

3.2(c)    Certificate Regarding Adoption of Amendments to Sections 1.04 and 1.11 of Park National Corporation's Regulations by the Shareholders on April 17, 2006 (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed on April 18, 2006 (File No. 1-13006))

3.2(d)    Certificate Regarding Adoption by the Shareholders of Park National Corporation on April 21, 2008 of Amendment to Regulations to Add New Section 5.10 to Article FIVE (incorporated herein by reference to Exhibit 3.2(d) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008 (File No. 1-13006) (“Park's March 31, 2008 Form 10-Q”))

3.2(e)    Certificate Regarding Adoption by the Shareholders of Park National Corporation on April 25, 2022 of Amendments to Section 1.10 and Section 2.04 of Park National Corporation's Regulations to eliminate the textual references to the right of Park National Corporation's shareholders to have cumulative voting apply in the election of directors (incorporated herein by reference to Exhibit 3.2 to Park's April 27, 2022 Form 8-K).

3.2(f)    Regulations of Park National Corporation [This document represents the Regulations of Park National Corporation in compiled form incorporating all amendments.](incorporated herein by reference to Exhibit 3.2(f) to Park's March 31, 2022 Form 10-Q)

4.1(a)    Junior Subordinated Indenture, dated as of December 5, 2005, between Vision Bancshares, Inc. and Wilmington Trust Company, as Trustee (incorporated herein by reference to Exhibit 10.16 to Vision Bancshares, Inc.'s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))

4.1(b)    First Supplemental Indenture, dated to be effective as of 6:00 p.m., Eastern Standard Time, on March 9, 2007, by and among Wilmington Trust Company, as Trustee; Park National Corporation; and Vision Bancshares, Inc. (incorporated herein by reference to Exhibit 4.1(b) to Park National Corporation's Current Report on Form 8-K dated and filed on March 15, 2007 (File No. 1-13006) (“Park's March 15, 2007 Form 8-K”))

4.2(a)    Amended and Restated Trust Agreement, dated as of December 5, 2005, among Vision Bancshares, Inc., as Depositor; Wilmington Trust Company, as Property Trustee and as Delaware Trustee; and the Administrative Trustees named therein, in respect of Vision Bancshares Trust I (incorporated herein by reference to Exhibit 10.15 to Vision Bancshares, Inc.'s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))

Note: Pursuant to the First Supplemental Indenture, dated to be effective as of 6:00 p.m., Eastern Standard Time, on March 9, 2007, by and among Wilmington Trust Company, as Trustee; Park National Corporation; and Vision Bancshares, Inc., Park National Corporation succeeded to and was substituted for Vision Bancshares, Inc. as “Depositor”

4.2(b)    Notice of Resignation of Administrative Trustees and Appointment of Successors, dated March 9, 2007, delivered to Wilmington Trust Company by the Resigning Administrative Trustees named therein, the Successor Administrative Trustees named therein and Park National Corporation (incorporated herein by reference to Exhibit 4.2(b) to Park's March 15, 2007 Form 8-K)

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Exhibit No.    Description of Exhibit

4.2(c)    Notice of Removal of Administrative Trustee and Appointment of Successor, dated February 21, 2013, delivered to Wilmington Trust Company by the continuing Administrative Trustees named therein, the Successor Administrative Trustee named therein and Park National Corporation (incorporated herein by reference to Exhibit 4.2(c) to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (File No. 1-13006) ("Park's 2012 Form 10-K"))

4.2(d)    Notice of Resignation of Administrative Trustee and Appointment of Successor, dated July 1, 2021, delivered to Wilmington Trust Company by the Resigning Administrative Trustee named therein, the Successor Administrative Trustee named therein, the continuing Current Administrative Trustees named therein and Park National Corporation (incorporated herein by reference to Exhibit 4.2(d) to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (File No.1-13006))

4.3    Guarantee Agreement, dated as of December 5, 2005, between Vision Bancshares, Inc., as Guarantor, and Wilmington Trust Company, as Guarantee Trustee, in respect of Vision Bancshares Trust I (incorporated herein by reference to Exhibit 10.17 to Vision Bancshares, Inc.'s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))

    Note: Pursuant to the First Supplemental Indenture, dated to be effective as of 6:00 p.m., Eastern Standard Time, on March 9, 2007, by and among Wilmington Trust Company, as Trustee; Park National Corporation; and Vision Bancshares, Inc., Park National Corporation succeeded to and was substituted for Vision Bancshares, Inc. as “Guarantor”

4.4    Agreement to furnish instruments and agreements defining rights of holders of long-term debt (filed herewith)

4.5    Description of Capital Stock of Park National Corporation (filed herewith)

4.6(a)    Indenture, dated as of August 20, 2020, between Park National Corporation, as Issuer, and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to Park National Corporation's Current Report on Form 8-K dated and filed on August 20, 2020 (File No. 1-13006)("Park's August 20, 2020 Form 8-K"))

4.6(b)    First Supplemental Indenture, dated as of August 20, 2020, between Park National Corporation, as Issuer, and U.S. Bank National Association, as Trustee (incorporated herein by reference to Exhibit 4.2 to Park's August 20, 2020 Form 8-K")

4.6(c)    Form of 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030 issued by Park National Corporation (included in Exhibit 4.6(b) to this Annual Report on Form 10-K)(incorporated herein by reference to Exhibit 4.2 to Park's August 20, 2020 Form 8-K)

10.1†    Summary of Base Salaries for Executive Officers of Park National Corporation (filed herewith)

10.2†    Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, by and between The Park National Bank and David L. Trautman (incorporated by reference to Exhibit 10.2(a) to Park National Corporation's Current Report on Form 8-K dated and filed on June 19, 2015 (File No. 1-13006) ("Park's June 19, 2015 Form 8-K"))

10.3†    Split-Dollar Agreement, made and entered into effective as of June 15, 2015, by and between The Park National Bank and Brady T. Burt (incorporated herein by reference to Exhibit 10.3 to Park's June 19, 2015 Form 8-K)

10.4†    Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, by and between The Park National Bank, Park National Corporation and C. Daniel DeLawder (incorporated by reference to Exhibit 10.2(b) to Park's June 19, 2015 Form 8-K)

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Exhibit No.    Description of Exhibit

10.5†    Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, by and between The Park National Bank and David L. Trautman (incorporated herein by reference to Exhibit 10.5 to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 (File No.1-13006) ("Park's 2015 Form 10-K"))

10.6†    Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, by and between The Park National Bank and Brady T. Burt (incorporated by reference to Exhibit 10.4 to Park's June 19, 2015 Form 8-K)

10.7†    Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, by and between The Park National Bank and C. Daniel Delawder (incorporated herein by reference to Exhibit 10.7 to Park's 2015 Form 10-K)

10.8†    Amended and Restated Split-Dollar Agreement, made and entered into effective as of January 27, 2020, by and between The Park National Bank and Matthew R. Miller (incorporated herein by reference to Exhibit 10.2 to Park National Corporation's Current Report on Form 8-K dated and filed on January 27, 2020 (File No.1-13006)("Park's January 27, 2020 Form 8-K"))

10.9(a)†    Amended and Restated Split-Dollar Agreement, made and entered into effective as of August 4, 2015, by and between The Park National Bank and Matthew R. Miller (incorporated herein by reference to Exhibit 10.4(a) to Park's January 27, 2020 Form 8-K)

10.9(b)†    First Amendment to the Amended and Restated Split-Dollar Agreement, made and entered into effective as of January 27, 2020, by and between The Park National Bank and Matthew R. Miller (incorporated herein by reference to Exhibit 10.4(b) to Park's January 27, 2020 Form 8-K)

10.10†    Supplemental Executive Retirement Benefits Agreement, made as of June 15, 2015, by and between The Park National Bank and David L. Trautman (incorporated herein by reference to Exhibit 10.1(a) to Park's June 19, 2015 Form 8-K)

10.11†    Supplemental Executive Retirement Benefits Agreement, made as of June 15, 2015, by and between The Park National Bank and Brady T. Burt (incorporated herein by reference to Exhibit 10.1(b) to Park's June 19, 2015 Form 8-K)

10.12(a)†    Supplemental Executive Retirement Benefits Agreement, made as of June 15, 2015, by and between The Park National Bank and C. Daniel DeLawder (incorporated herein by reference to Exhibit 10.1(c) to Park's June 19, 2015 Form 8-K)

10.12(b)†    Amendment to the Supplemental Executive Retirement Benefits Agreement, entered into December 3, 2019, effective as of October 1, 2019, by and between The Park National Bank and C. Daniel DeLawder (incorporated herein by reference to Exhibit 10.2 to Park National Corporation's Current Report on Form 8-K dated and filed on December 5, 2019 (File No.1-13006)("Park's December 5, 2019 Form 8-K"))

10.13†    Supplemental Executive Retirement Benefits Agreement, made as of February 18, 2008, by and between Park National Corporation and David L. Trautman (incorporated herein by reference to Exhibit 10.1 to Park National Corporation's Current Report on Form 8-K dated and filed on February 19, 2008 (File No. 1-13006))

10.14(a)†    Amended and Restated Supplemental Executive Retirement Benefits Agreement, made as of February 18, 2008, by and between Park National Corporation and C. Daniel DeLawder (incorporated herein by reference to Exhibit 10.14(a) to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (File No. 1-13006))

10.14(b)†    Amendment to the Amended and Restated Supplemental Executive Retirement Benefits Agreement, entered into December 3, 2019, effective as of October 1, 2019, by and between The Park National Bank and C. Daniel DeLawder (incorporated herein by reference to Exhibit 10.1 to Park's December 5, 2019 Form 8-K)

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Exhibit No.    Description of Exhibit

10.15†    Supplemental Executive Retirement Benefits Agreement, made as of June 15, 2015, by and between The Park National Bank and Matthew R. Miller (incorporated herein by reference to Exhibit 10.3 to Park's January 27, 2020 Form 8-K)

10.16†    Supplemental Executive Retirement Benefits Agreement, made and entered into effective as of January 27, 2020, by and between The Park National Bank and Matthew R. Miller (incorporated herein by reference to Exhibit 10.1 to Park's January 27, 2020 Form 8-K)

10.17†    Summary of Certain Compensation for Directors of Park National Corporation (filed herewith)

10.18(a)†    Form of Split-Dollar Agreement, made and entered into effective as of December 28, 2007, covering certain Non-Employee Directors of Park National Corporation (incorporated herein by reference to Exhibit 10.2(a) to Park National Corporation's Current Report on Form 8-K dated and filed on January 2, 2008 (File No. 1-13006))

10.18(b)†    Schedule identifying Non-Employee Directors of Park National Corporation covered by form of Split-Dollar Agreement, made and entered into effective as of December 28, 2007 (incorporated herein by reference to Exhibit 10.18(b) to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (File No. 1-3006))

10.19†    Park National Corporation 2013 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on April 23, 2013 (File No. 1-13006))

10.20†    Form of Park National Corporation 2013 Long-Term Incentive Plan Performance-Based Restricted Stock Unit Award Agreement used to evidence awards of Performance-Based Restricted Stock Units to employees of Park National Corporation and of its subsidiaries granted on and after January 24, 2014 and prior to December 5, 2016 (incorporated herein by reference to Exhibit 10.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on January 27, 2014 (File No. 1-13006))

10.21†    Form of Park National Corporation 2013 Long-Term Incentive Plan Performance-Based Restricted Stock Unit Award Agreement used to evidence awards of Performance-Based Restricted Stock Units to employees of Park National Corporation and of its subsidiaries granted on and after December 5, 2016 and prior to April 24, 2017 (incorporated herein by reference to Exhibit 10.1 to Park National Corporation's Current Report on Form 8-K dated and filed on December 8, 2016 (File No. 1-13006))

10.22†    Park National Corporation 2017 Long-Term Incentive Plan for Non-Employee Directors (incorporated herein by reference to Exhibit 10.2 to Park National Corporation's Current Report on Form 8-K dated and filed on April 26, 2017 (File No. 1-13006)) ("Park's April 26, 2017 Form 8-K")

10.23†    Park National Corporation 2017 Long-Term Incentive Plan for Employees (incorporated herein by reference to Exhibit 10.1 to Park's April 26, 2017 Form 8-K)

10.24†    Form of Park National Corporation 2017 Long-Term Incentive Plan for Employees Performance-Based Restricted Stock Unit Award Agreement used to evidence awards of Performance-Based Restricted Stock Units to employees of Park National Corporation and of its subsidiaries granted after December 4, 2017 and prior to November 19, 2018 (incorporated herein by reference to Exhibit 10.1 to Park National Corporation's Current Report on Form 8-K dated and filed on December 5, 2017 (File No. 1-13006))

10.25†    Form of Park National Corporation 2017 Long-Term Incentive Plan for Employees Performance-Based Restricted Stock Unit Award Agreement used to evidence awards of Performance-Based Restricted Stock Units to employees of Park National Corporation and of its subsidiaries granted after November 19, 2018 and prior to January 1, 2020 (incorporated herein by reference to Exhibit 10.1 to Park National Corporation's Current Report on Form 8-K dated and filed on November 20, 2018 (File No. 1-13006))

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Exhibit No.    Description of Exhibit

10.26†    Form of Park National Corporation 2017 Long-Term Incentive Plan for Employees Amendment No. 1 to Performance-Based Restricted Stock Unit Award Agreement, made effective as of January 1, 2019, entered into with employees of Park National Corporation and of its subsidiaries with respect to performance-based restricted stock unit awards granted effective January 1, 2019 (incorporated herein by reference to Exhibit 10.3 to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 (File No. 1-13006)("Park's March 31, 2020 Form 10-Q"))

10.27†    Form of Park National Corporation 2017 Long-Term Incentive Plan for Employees Performance-Based Restricted Stock Unit Award Agreement used to evidence awards of performance-based restricted stock units to employees of Park National Corporation and of its subsidiaries granted effective as of January 1, 2020 and prior to January 20, 2022 (incorporated herein by reference to Exhibit 10.4 to Park's March 31, 2020 Form 10-Q)

10.28†    Park National Corporation 2017 Long-Term Incentive Plan for Employees Amendment No. 1 to Certain Performance-Based Restricted Stock Unit Award Agreements, entered into as of June 30, 2021, between Park National Corporation and C. Daniel DeLawder (incorporated herein by reference to Exhibit 10.1 to Park National Corporation's Current Report on Form 8-K dated and filed on July 9, 2021 (File No. 1-3006))

10.29†    Park National Corporation 2017 Long-Term Incentive Plan for Employees Performance Based Restricted Stock Unit Award Agreement used to evidence awards of performance-based restricted stock units to employees of Park National Corporation and of its subsidiaries granted effective as of January 20, 2022 (filed herewith)

14    Code of Business Conduct and Ethics, as most recently approved by the Park National Corporation Board of Directors on April 22, 2022 (filed herewith)

21    Subsidiaries of Park National Corporation (filed herewith)

23    Consent of Independent Registered Public Accounting Firm (Crowe LLP) (filed herewith)

24    Power of Attorney of Directors and Executive Officers of Park National Corporation (filed herewith)

31.1    Rule 13a-14(a)/15d-14(a) Certifications - Principal Executive Officer (filed herewith)

31.2    Rule 13a-14(a)/15d-14(a) Certifications - Principal Financial Officer (filed herewith)

32    Certifications Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code - Principal Executive Officer and Principal Financial Officer (furnished herewith)

101    The following information from Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, formatted in Inline XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets at December 31, 2022 and 2021; (ii) the Consolidated Statements of Income for the years ended December 31, 2022, 2021 and 2020; (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021 and 2020; (iv) the Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2022, 2021 and 2021; (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020; and (vi) the Notes to Consolidated Financial Statements (electronically submitted herewith)**

104    Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document with applicable taxonomy extension information contained in Exhibit 101) **    

___________________

*    Annexes, schedules and exhibits have been omitted pursuant to Item 601(b)(2) of SEC Regulation S-K, as in effect at the time of filing of the Agreement and Plan of Merger and Reorganization. A copy of any omitted attachment will be furnished supplementally by Park National Corporation to the SEC on a confidential basis upon request.

**    The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.

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†    Management contract or compensatory plan or arrangement.

P    Park National Corporation filed this exhibit with the SEC in paper form originally and this exhibit has not been filed with the SEC in electronic format.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PARK NATIONAL CORPORATION
Date: March 1, 2023	By:	/s/ David L. Trautman
		David L. Trautman,
		Chairman of the Board and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on the 1st day of March, 2023.

Name	Capacity
/s/ David L. Trautman David L. Trautman	Chairman of the Board, Chief Executive Officer and Director
/s/ Matthew R. Miller  Matthew R. Miller	President and Director
/s/ Brady T. Burt Brady T. Burt	Chief Financial Officer, Secretary and Treasurer
/s/ Kelly A. Herreman Kelly A. Herreman	Chief Accounting Officer
/s/ Donna M. Alvarado* Donna M. Alvarado	Director
/s/ Frederic M. Bertley, Ph.D.* Frederic M. Bertley, Ph.D.	Director
/s/ C. Daniel DeLawder* C. Daniel DeLawder	Director
/s/ F. William Englefield IV* F. William Englefield IV	Director
/s/ Alicia J. Hupp* Alicia J. Hupp	Director
/s/ Jason N. Judd* Jason N. Judd	Director
/s/ Stephen J. Kambeitz* Stephen J. Kambeitz	Director
/s/ Timothy S. McLain* Timothy S. McLain	Director

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Name	Capacity
/s/ D. Byrd Miller III* D. Byrd Miller III	Director
/s/ Robert E. O’Neill* Robert E. O’Neill	Director
/s/ Mark R. Ramser* Mark R. Ramser	Director
/s/ Lee Zazworsky* Leon "Lee" Zazworsky	Director

__________________________

* The undersigned, by signing his name hereto, does hereby sign this Annual Report on Form 10-K on behalf of each of the directors of the Registrant identified above pursuant to a Power of Attorney executed by the directors of the Registrant identified above, which Power of Attorney is filed with this Annual Report on Form 10-K in Exhibit 24.

By:	/s/ Matthew R. Miller
	Matthew R. Miller
	President
	Attorney-in-Fact

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EX-4.4

Exhibit 4.4

PARK NATIONAL CORPORATION

50 North Third Street

Post Office Box 3500

Newark, Ohio 43058-3500

(740) 349-8451

www.parknationalcorp.com

March 1, 2023

United States Securities and Exchange Commission

100 F Street, NE

Washington, D.C. 20549

Re:     Park National Corporation

Commission File Number: 1-13006

Annual Report on Form 10-K for the Fiscal Year

Ended December 31, 2022

Ladies and Gentlemen:

Park National Corporation, an Ohio corporation (“Park”), is today filing with the Securities and Exchange Commission (the “SEC”) the Annual Report on Form 10-K of Park for the fiscal year ended December 31, 2022 (“Park's 2022 Form 10-K”).

Neither (i) Park nor (ii) any of Park's consolidated subsidiaries has outstanding any instrument or agreement with respect to its long-term debt under which the total amount of long-term debt authorized exceeds 10% of the total assets of Park and Park's subsidiaries on a consolidated basis. In accordance with the provisions of Item 601(b)(4)(iii) of SEC Regulation S-K, Park hereby agrees to furnish to the SEC, upon request, a copy of each instrument or agreement defining (i) the rights of holders of long-term debt of Park or (ii) the rights of holders of long-term debt of a consolidated subsidiary of Park, in each case which is not being filed or incorporated by reference as an exhibit to Park's 2022 Form 10-K.

Very truly yours,

PARK NATIONAL CORPORATION

/s/ Brady T. Burt

Brady T. Burt

Chief Financial Officer, Secretary and Treasurer

EX-4.5

Exhibit 4.5

DESCRIPTION OF CAPITAL STOCK

OF PARK NATIONAL CORPORATION

As of December 31, 2022, Park National Corporation (“Park,” the “Company,” “we,” “us” or “our”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): our common shares, without par value (our “common shares”).

The following summary describes the material features of our common shares and our preferred shares, without par value (our “preferred shares”). This summary does not describe every aspect of our common shares or our preferred shares and is subject to, and qualified in its entirety by reference to, all the provisions of our articles of incorporation and the amendments thereto (collectively, our “articles”) and our regulations and the amendments thereto (collectively, our “regulations”), each of which is incorporated by reference as an exhibit to this Annual Report on Form 10-K, and the applicable provisions of Ohio law.

Authorized Capital Stock

Under our articles, we have the authority to issue 20,000,000 common shares and 200,000 preferred shares.

Common Shares

All of our outstanding common shares are fully paid and non-assessable and our articles contain no restrictions on the alienability of our common shares. The rights, preferences and privileges of holders of our common shares are subject to, and may be adversely affected by, the rights of the holders of any series of preferred shares that the Park Board of Directors may designate and issue in the future.

Preemptive Rights

Our articles provide that the holders of our common shares do not have preemptive rights.

Dividends

As an Ohio corporation, Park may, in the discretion of the Park Board of Directors, generally pay dividends to the Park shareholders out of surplus, however created, but must notify the Park shareholders if a dividend is paid out of capital surplus. Holders of our common shares are entitled to receive dividends when, as and if declared by the Park Board of Directors from funds legally available therefor, subject to, and which may be adversely affected by, the rights, preferences and privileges of holders of any preferred shares that the Park Board of Directors may designate and issue in the future. Park’s ability to obtain funds for the payment of dividends and for other cash requirements largely depends on the amount of dividends which may be declared and paid by Park’s national bank subsidiary The Park National Bank (“PNB”). However, the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”)

expects Park to serve as a source of strength to PNB, which may require Park to retain capital for further investment in PNB, rather than pay dividends to the Park shareholders. Payment of dividends by PNB may be restricted at any time at the discretion of the Office of the Comptroller of the Currency (the “OCC”) if the OCC deems such dividends to constitute an unsafe or unsound banking practice. This could have the effect of limiting Park’s ability to pay dividends on our common shares.

PNB may not pay dividends out of PNB’s surplus if, after paying these dividends, PNB would fail to satisfy all of the capital adequacy regulations and guidelines established by the OCC, including having a capital conservation buffer that is greater than 2.5%. In addition, PNB must have the approval of the OCC if a dividend in any year would cause the total dividends for that year to exceed the sum of PNB’s net income for the current year and the retained net income of PNB for the preceding two years, less required transfers to surplus. Payments of dividends by PNB may be restricted at any time at the discretion of PNB’s governing regulatory authorities if such regulatory authorities deem such dividends to constitute unsafe and/or unsound banking practices or if necessary to maintain adequate capital.

The ability of PNB to pay dividends to Park is also subject to PNB’s profitability, financial condition, capital expenditures and other cash flow requirements and contractual obligations.

The Federal Reserve Board has issued a policy statement with regard to the payment of cash dividends by financial holding companies and other bank holding companies. The policy statement provides that, as a matter of prudent banking, a financial holding company or a bank holding company should not maintain a rate of cash dividends on common stock unless its net income available to common shareholders over the past year has been sufficient to fully fund the dividends, and the prospective rate of earnings retention appears to be consistent with the financial holding company’s or bank holding company’s capital needs, asset quality and overall financial condition. Accordingly, a financial holding company or a bank holding company should not pay dividends that exceed its net income or can only be funded in ways that weaken the financial holding company's or bank holding company’s financial health, such as by borrowing. In addition, Park may not pay dividends that would cause Park to fail to satisfy the capital adequacy regulations applicable to bank holding companies which qualify as financial holding companies, including having a capital conservation buffer that is greater than 2.5%.

Park is subject to contractual restrictions on the declaration and payment of dividends under the terms of certain of Park’s debt instruments.

In connection with the merger of Vision Bancshares, Inc. (“Vision”) into Park on March 9, 2007 (the “Vision Merger”), Park entered into a First Supplemental Indenture, dated as of the effective time of the Vision Merger (the “First Supplemental Indenture”), with Vision and Wilmington Trust Company, as Trustee. Under the terms of the First Supplemental Indenture, Park assumed all of the payment and performance obligations of Vision under the Junior Subordinated Indenture, dated as of December 5, 2005 (the “Indenture”), pursuant to which Vision issued approximately $15.5 million of floating rate junior subordinated notes to Vision Bancshares Trust I, a Delaware statutory trust (the “Vision Trust”). The entire amount of the

2

floating rate junior subordinated notes remained outstanding as of December 31, 2022. The floating rate junior subordinated notes were issued by Vision in connection with the sale by the Vision Trust of $15.0 million of floating rate preferred securities to institutional investors on December 5, 2005.

Under the terms of the First Supplemental Indenture, Park also succeeded to and was substituted for Vision with the same effect as if Park had originally been named (i) as “Depositor” in the Amended and Restated Trust Agreement of the Vision Trust, dated as of December 5, 2005 (the “Trust Agreement”), among Vision, Wilmington Trust Company, as Property Trustee and as Delaware Trustee, and the Administrative Trustees named therein and (ii) as “Guarantor” in the Guarantee Agreement, dated as of December 5, 2005 (the “Guarantee Agreement”), between Vision and Wilmington Trust Company, as Guarantee Trustee. Through these contractual obligations, Park has fully and unconditionally guaranteed all of the Vision Trust’s obligations with respect to the floating rate preferred securities.

Both the floating rate junior subordinated notes and the floating rate preferred securities mature on December 30, 2035 (which maturity may be shortened), and carry a floating interest rate per annum, reset quarterly, equal to the sum of three-month LIBOR plus 1.48 percent. Payment of interest on the floating rate junior subordinated notes, and payment of cash distributions on the floating rate preferred securities, may be deferred at any time or from time to time for a period not to exceed twenty consecutive quarters.

Under the terms of the Indenture and the related Guarantee Agreement, Park, as successor to Vision in accordance with the First Supplemental Indenture, is prohibited, subject to limited exceptions specified in the Indenture, from declaring or paying dividends to the holders of our common shares: (i) if an event of default under the Indenture has occurred and continues; (ii) if Park is in default with respect to the payment of any obligations under the Guarantee Agreement; or (iii) during any period in which the payment of interest on the floating rate junior subordinated notes by Park (and the payment of cash distributions on the floating rate preferred securities by the Vision Trust) is being deferred.

Liquidation Rights

Holders of our common shares are entitled to share ratably in Park’s net assets legally available for distribution to shareholders in the event of Park’s liquidation, dissolution or winding up, after (i) payment in full of all amounts required to be paid to creditors or provision for such payment and (ii) provision for the distribution of any preferential amounts to the holders of any preferred shares that the Park Board of Directors may designate and issue in the future.

Under the terms of the Indenture and the related Guarantee Agreement, Park, as successor to Vision in accordance with the First Supplemental Indenture, is prohibited, subject to limited exceptions specified in the Indenture, from making any liquidation payments with respect to any of Park’s capital stock (including our common shares): (i) if an event of default under the Indenture has occurred and continues; (ii) if Park is in default with respect to the payment of any obligations under the Guarantee Agreement; or (iii) during any period in which the payment of

3

interest on the floating rate junior subordinated notes by Park (and the payment of cash distributions on the floating rate preferred securities by the Vision Trust) is being deferred.

Subscription, Preference, Conversion, Exchange and Redemption Rights

The holders of our common shares do not have subscription, preference, conversion or exchange rights, and there are no mandatory redemption provisions applicable to our common shares. The rights, preferences and privileges of the holders of our common shares are subject to, and may be adversely affected by, the rights, preferences and privileges of holders of any preferred shares that the Park Board of Directors may designate and issue in the future.

Park is subject to contractual restrictions on the repurchase of common shares under the terms of certain of Park's debt instruments.

Under the terms of the Indenture and the related Guarantee Agreement, Park, as successor to Vision in accordance with the First Supplemental Indenture, is prohibited, subject to limited exceptions specified in the Indenture, from redeeming, repurchasing or otherwise acquiring any of Park’s capital stock (including our common shares): (i) if an event of default under the Indenture has occurred and continues; (ii) if Park is in default with respect to the payment of any obligations under the Guarantee Agreement; or (iii) during any period in which the payment of interest on the floating rate junior subordinated notes by Park (and the payment of cash distributions on the floating rate preferred securities by the Vision Trust) is being deferred.

Number of Directors

Our regulations provide for the Park Board of Directors to consist of not less than five and not more than 16 directors. The Park Board of Directors may not increase the number of directors to a number which exceeds by more than two the number of directors last elected by the Park shareholders.

Classification of the Park Board of Directors

Our regulations provide for the Park Board of Directors to be divided into three classes, with the term of office of one class expiring each year.

Nomination of Directors

Under our regulations, either the Park Board of Directors or any Park shareholder entitled to vote in the election of directors may nominate a candidate for election to the Park Board of Directors. Any nomination by a Park shareholder must be made in writing and must be received by the President of Park not less than 14 days and not more than 50 days prior to the shareholder meeting at which directors are to be elected. If, however, notice of the meeting is mailed or disclosed to shareholders less than 21 days before the meeting date, any nomination by a Park shareholder must be received by the close of business on the 7th day after notice of the meeting is mailed. A shareholder’s notice to Park nominating a director must set forth:

•the name and address of each proposed nominee;

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•the principal occupation of each proposed nominee;

•the total number of common shares that will be voted for each proposed nominee;

•the name and residence address of the notifying shareholder; and

•the number of common shares beneficially owned by the notifying shareholder.

Special Meetings of Shareholders

Pursuant to Ohio law and our regulations, any of the following persons may call a special meeting of shareholders: (i) Park’s Chairman of the Board; (ii) Park’s President, or, in case of the absence, death or disability of Park’s President, the Vice President of Park, if any, authorized to exercise the authority of the President; (iii) Park’s Secretary; (iv) the directors of Park by action at a meeting or a majority of the Park directors acting without a meeting; or (v) the holders of at least 25% of the outstanding common shares entitled to vote at the meeting.

Voting Rights

Under Ohio law, shareholders have the right to make a request, in accordance with applicable procedures, to cumulate their votes in the election of directors unless a corporation’s articles of incorporation eliminate that right. Our articles were amended on April 26, 2022 to eliminate cumulative voting in the election of directors. Accordingly, no holder of shares of any class of the Corporation shall have the right to vote cumulatively in the election of directors of the Corporation.

Each of our common shares entitles the holder thereof to one vote on each matter submitted to the Park shareholders for consideration.

Our articles contain special voting requirements that may be deemed to have anti-takeover effects. These special voting requirements are described in Article Eighth and apply when any of the following actions are contemplated:

•any merger or consolidation of Park with or into a beneficial owner of 20% or more of the voting power of Park entitled to vote in the election of directors (a “20% beneficial owner”) or an affiliate or associate of that 20% beneficial owner;

•any sale, lease, exchange, mortgage, pledge, transfer or other disposition of more than 10% of the total assets of Park, including the voting securities of any of Park’s subsidiaries, or more than 10% of the total assets of any of Park’s subsidiaries, to a 20% beneficial owner or an affiliate or associate of that 20% beneficial owner;

•any merger into Park, or one of Park’s subsidiaries, of a 20% beneficial owner or an affiliate or associate of that 20% beneficial owner;

•any sale, lease, exchange, mortgage, pledge, transfer or other disposition to Park, or one of Park’s subsidiaries, of all or any part of the assets of a 20% beneficial owner

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(or an affiliate or associate of that 20% beneficial owner), excluding any disposition which, if included with all other dispositions consummated during the same fiscal year by the same 20% beneficial owner and the affiliates and associates of that 20% beneficial owner, would not result in dispositions during such year of assets having an aggregate fair value in excess of 1% of the total consolidated assets of Park, unless all such dispositions by the 20% beneficial owner and its affiliates or associates during the same and the four immediately preceding fiscal years would result in disposition of assets having an aggregate fair value in excess of 2% of the total consolidated assets of Park;

•any reclassification of our common shares or any recapitalization involving our common shares consummated within five years after a 20% beneficial owner becomes such;

•any agreement, contract or arrangement providing for any of the previously described business combinations; and

•any amendment to Article Eighth of our articles.

The enlarged majority vote required when Article Eighth applies is the greater of:

•four-fifths of our outstanding common shares entitled to vote on the proposed business combination, or

•that fraction of our outstanding common shares having:

•as the numerator, a number equal to the sum of: (a) the number of our outstanding common shares beneficially owned by the 20% beneficial owner plus (b) two-thirds of the remaining number of our outstanding common shares,

•and as the denominator, a number equal to the total number of our outstanding common shares entitled to vote.

Article Eighth does not apply where: (i) the shareholders who do not vote in favor of a covered transaction and whose proprietary interest will be terminated in connection with the transaction are paid a “minimum price per share;” and (ii) a proxy statement satisfying the requirements of the Exchange Act is mailed to the Park shareholders for the purpose of soliciting shareholder approval of the transaction. If the price criteria and procedural requirements are satisfied, the approval of a business combination would require only that affirmative vote (if any) required by law or by our articles or our regulations.

Listing

Our common shares are listed on NYSE American under the symbol “PRK.”

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Transfer Agent

Broadridge Corporate Issuer Solutions, Inc. serves as the transfer agent and registrar for our common shares.

Preferred Shares

The 200,000 authorized but unissued preferred shares are typically referred to as “blank check” preferred shares. This term refers to preferred shares for which the rights and restrictions are determined by the board of directors of a corporation at the time the preferred shares are issued. Under our articles, the Park Board of Directors has the authority, without any further shareholder vote or action, to issue preferred shares in one or more series, from time to time, with full or limited voting power, or without voting power, and with all designations, preferences and relative, participating, optional or other special rights and privileges of, and qualifications, limitations or restrictions upon, the preferred shares, as may be provided in the amendment or amendments to our articles adopted by the Park Board of Directors. The authority of the Park Board of Directors includes, but is not limited to, the determination or fixing of the following with respect to preferred shares of any series:

•the division of the preferred shares into series and the designation and authorized number of preferred shares (up to the number of preferred shares authorized under our articles) in each series;

•the dividend rate and whether dividends are to be cumulative;

•whether preferred shares are to be redeemable, and, if so, the redemption price;

•the liquidation rights to which the holders of preferred shares will be entitled (including the liquidation price), and the preferences, if any;

•whether the preferred shares will be subject to the operation of a sinking fund, and, if so, upon what conditions;

•whether the preferred shares will be convertible into or exchangeable for shares of any other class or of any other series of any class of capital stock and the terms and conditions of the conversion or exchange;

•the voting rights of the preferred shares, which may be full, limited or denied, except as otherwise required by law; provided that the voting rights of any series of preferred shares may not be greater than the voting rights of our common shares;

•the preemptive rights, if any, to which the holders of preferred shares will be entitled and any limitations thereon;

•whether the issuance of any additional shares, or of any shares of any other series, will be subject to restrictions as to issuance, or as to the powers, preferences or rights of these other series; and

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•any other relative, participating, optional or other special rights and privileges, and qualifications, limitations or restrictions.

Certain anti-takeover effects of our articles and our regulations

Certain provisions of our articles and our regulations may have the effect of impeding the acquisition of control of Park by means of a tender offer, a proxy fight, open-market purchases or otherwise in a transaction not approved by the Park Board of Directors. These provisions of our articles and our regulations include the following:

•If a special meeting of Park shareholders is called by Park shareholders, it must be called by holders of not less than twenty-five percent of all shares outstanding and entitled to vote thereat;

•Nomination of candidates for election to the Park Board of Directors requires advance notice containing certain information about the nominating Park shareholder and the nominee;

•Our regulations may be amended only by the affirmative vote of the holders of at least two-thirds of the outstanding voting power of Park; and

•Certain business combinations with controlling persons require approval by a supermajority of Park’s outstanding voting shares.

Ohio Anti-takeover statutes

Certain state laws make a change in control of an Ohio corporation more difficult, even if desired by the holders of a majority of the corporation’s shares. Provided below is a summary of the Ohio anti-takeover statutes.

The Ohio Revised Code provides, in certain circumstances, that the approval of two-thirds of the voting power of a corporation is required to effect mergers and similar transactions, to adopt amendments to the articles of incorporation of a corporation and to take certain other significant actions. Although under Ohio law, the articles of incorporation of a corporation may permit such actions to be taken by a vote that is less than two-thirds (but not less than a majority), our articles do not contain such a provision.

Ohio Revised Code Section 1701.831 is a “control share acquisition” statute. The control share acquisition statute provides, in essence, that any person acquiring shares of an “issuing public corporation” (which Park meets by definition) in any of the following three ownership ranges must seek and obtain shareholder approval of the acquisition transaction that first puts such ownership within each such range: (i) one-fifth or more but less than one-third; (ii) one-third or more but less than a majority; and (iii) a majority or more.

The control share acquisition statute applies not only to traditional offers but also to open market purchases, privately-negotiated transactions and original issuances by an Ohio corporation, whether friendly or unfriendly. The procedural requirements of the control share

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acquisition statute could render approval of any control share acquisition difficult because it must be authorized at a special meeting of shareholders, for which the statutorily prescribed form of notice has been given and at which the statutorily prescribed quorum is present, by the affirmative vote of the majority of the voting power of the corporation in the election of directors represented at the meeting and by a majority of the portion of such voting power, excluding the voting power of interested shares.

A corporation may elect not to be covered by the provisions of the control share acquisition statute by the adoption of an appropriate amendment to its articles of incorporation or its regulations. Our regulations, as currently in effect, provide that Section 1701.831 of the Ohio Revised Code does not apply to control share acquisitions of shares of Park.

Ohio Revised Code Chapter 1704 is a “merger moratorium” statute. The merger moratorium statute provides that, unless a corporation’s articles of incorporation otherwise provide, an “issuing public corporation” (which Park meets by definition) may not engage in a “Chapter 1704 transaction” for three years following the date on which a person acquires more than 10% of the voting power in the election of directors of the issuing corporation, unless the Chapter 1704 transaction or the acquisition of more than 10% of the voting power is approved by the corporation’s board of directors prior to such acquisition of more than 10% of the voting power. A person who acquires such voting power is an “interested shareholder,” and “Chapter 1704 transactions” involve a broad range of transactions, including mergers, consolidations, combinations, liquidations, recapitalizations and other transactions between an issuing public corporation and an interested shareholder if such transactions involve at least 5% of the aggregate fair market value of the assets or shares of the issuing public corporation or assets representing at least 10% of its earning power or income. After the initial three-year moratorium, Chapter 1704 prohibits such transactions absent approval by disinterested shareholders or the transaction meeting certain statutorily defined fair price provisions.

A corporation may elect not to be covered by the provisions of Ohio Revised Code Chapter 1704 by the adoption of an appropriate amendment to its articles of incorporation. Our articles, as currently in effect, provide that Ohio Revised Code Chapter 1704 does not apply to Park.

Ohio also has enacted Ohio Revised Code Section 1707.043, which provides that a person who announces a control bid with respect to an Ohio corporation that has issued and outstanding shares listed on a national securities exchange (which Park does with our common shares) must disgorge profits realized by that person upon the sale of any equity securities within 18 months of the announcement.

In addition, Section 1701.59 of the Ohio Revised Code provides that, in determining what a director reasonably believes to be in the best interests of the corporation, such director may consider, in addition to the interests of the corporation’s shareholders, any of the interests of the corporation’s employees, suppliers, creditors and customers, the economy of the State of Ohio and the United States, community and societal considerations and the long-term as well as the short-term interests in the corporation and its shareholders, including the possibility that these interests may be best served by the continued independence of the corporation.

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The overall effect of the statutes described above may be to render more difficult or discourage the removal of incumbent management of an Ohio corporation or the assumption of effective control of an Ohio corporation by other persons.

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EX-10.1

Exhibit 10.1

Summary of Base Salaries

for

Executive Officers of Park National Corporation

On January 18, 2023, the Compensation Committee of the Board of Directors of Park National Corporation (“Park”) approved the base salaries for the fiscal year ending December 31, 2023, for each of the executive officers of Park: (a) David L. Trautman, Chairman of the Board and Chief Executive Officer of each of Park and The Park National Bank, a subsidiary of Park (“PNB”); (b) Brady T. Burt, Chief Financial Officer, Secretary and Treasurer of Park and Senior Vice President and Chief Financial Officer of PNB; and (c) Matthew R. Miller, President of each of Park and PNB; Those base salaries are:

•David L. Trautman -- $750,000

•Brady T. Burt -- $400,000

•Matthew R. Miller -- $550,000

EX-10.17

Exhibit 10.17

Summary of Certain Compensation for Directors of Park National Corporation

Annual Retainers and Meeting Fees

Park National Corporation ("Park") uses a combination of cash and stock-based compensation to attract and retain qualified candidates to serve on the Park Board of Directors. To align the interests of the Park directors and the Park shareholders, Park’s Regulations require that all directors of Park be shareholders. Park does not have a requirement which addresses the number of common shares that need to be retained by directors.

Cash Compensation

For the period from January 1, 2022 through April 25, 2022, the per meeting fees paid by Park to individuals serving as non-employee directors for attending meetings of the full Park Board of Directors and meetings of the respective Board committees were the same as the per meeting fees paid by Park to individuals serving as non-employee directors during the fiscal year ended December 31, 2021: (i) $1,200 for each meeting of the Board of Directors attended; (ii) $900 for each meeting of the Audit Committee or of the Executive Committee attended; and (iii) $750 for each meeting of each other Board committee attended. From and after April 26, 2022, per meeting fees are no longer paid to non-employee directors.

The following table sets forth the annual cash retainers paid by Park on or about April 26, 2022 to the individuals then serving as non-employee directors of Park for services to be rendered during the period from April 26, 2022 to April 24, 2023 by such individuals in their respective capacities as: (i) members of the Board of Directors of both Park and The Park National Bank, the national bank subsidiary of Park ("Park National Bank"); (ii) members of committees of the Board of Directors of Park; (iii) members of committees of the Board of Directors of Park National Bank; and (iv) members of the advisory board of directors of one of the divisions of Park National Bank. The annual cash retainers to be paid by Park on or about April 25, 2023 to the individuals then serving as non-employee directors of Park for services to be rendered from April 25, 2023 to April 22, 2024 by such individuals in the capacities as identified in the following table will be the same as those for the period from April 26, 2022 to April 24, 2023.

Annual Retainers
	Board Member (serving as director of Park and Park National Bank	$	40,000
	Lead Director (Additional)	$	25,000
Annual Retainer for Committee Chairs:
	Audit Committee (Joint committee for Park and Park National Bank)	$	15,000
	Compensation Committee (Park only)	$	10,000
	Executive Committee (Joint committee for Park and Park National Bank)	$	25,000
	Nominating and Corporate Governance Committee (Park only)	$	10,000
	Risk Committee (Park only)	$	10,000
	Trust Committee (Park National Bank only)	$	10,000
Annual Retainer for Other Committee Members:
	Audit Committee (Joint committee for Park and Park National Bank)	$	7,500
	Compensation Committee (Park only)	$	5,000
	Executive Committee (Joint committee for Park and Park National Bank)	$	20,000
	Nominating and Corporate Governance Committee (Park only)	$	5,000
	Risk Committee (Park only)	$	5,000
	Trust Committee (Park National Bank only)	$	5,000
Additional Annual Retainer for Advisory Board Members		$	7,500

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Annual Retainers Payable in Common Shares

Each individual then serving as a non-employee director of Park and Park National Bank received, on the date of the regular meeting of the Park Board of Directors held during the fourth quarter of the fiscal year ended December 31, 2022, an annual retainer, in the form of common shares awarded under the Park National Corporation 2017 Long-Term Incentive Plan for Non-Employee Directors, for service as a member of: (i) the Park Board of Directors; (ii) the Park National Bank Board of Directors; and (iii) where applicable, the advisory board of directors of one of the divisions of Park National Bank. The aggregate grant date fair value of the common shares awarded was $40,000. The annual retainer to be paid in common shares during the fourth quarter of the fiscal year ending December 31, 2023 will have the same $40,000 aggregate grant date fair value.

Other Compensation

In addition to the annual retainers and meeting fees discussed above, non-employee directors also received during the fiscal year ended December 31, 2022, and will continue to receive during the fiscal year ending December 31, 2023, reimbursement of all reasonable travel and other expenses of attending board and committee meetings.

David L. Trautman and Matthew R. Miller receive no compensation for: (i) serving as a member of the Park Board of Directors; (ii) serving as a member of the board of directors of Park National Bank; or (iii) serving as a member of any committee of the respective boards of directors of Park and Park National Bank.

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EX-10.29

Exhibit 10.29

PARK NATIONAL CORPORATION

2017 LONG-TERM INCENTIVE PLAN FOR EMPLOYEES

Performance-Based Restricted Stock Unit Award Agreement

This Performance-Based Restricted Stock Unit AwardAgreement (this “Agreement”) is made effective as of January 20, 2022 (the “Grant Date”) by and between Park National Corporation (the “Company”) and [Associate Name] (the “Participant” or “you”). Capitalized terms not defined in this Agreement have the meanings given to them in the Plan (as defined below).

1.Grant of Performance-Based Restricted Stock Units

The Company hereby grants to you an award of [Number of Awards]Performance-Based Restricted Stock Units (the “PBRSUs” or the “Maximum Award”), subject to the terms and conditions described in the Park National Corporation 2017 Long-Term Incentive Plan for Employees (the “Plan”) and this Agreement.

2.    Restrictions on Vesting and Distribution

Your PBRSUs will be earned and settled or, in the alternative, forfeited depending on whether the applicable terms and conditions set forth in this Agreement have been met. For purposes of this Agreement, the “Performance Period” means the period beginning on January 1, 2022 and ending on December 31, 2024, and the “Performance Date” means the last day of the Performance Period. Except as otherwise provided in Section 3, Section 4 or Section 5 of this Agreement:

(A)    Performance-Based Criteria for Vesting:

(i)    All PBRSUs granted to you pursuant to this Agreement will be forfeited     

on the Performance Date if the Company’s consolidated net income for

each fiscal year during the Performance Period has not equaled or

exceeded the aggregate amount of: (a) all cash dividends declared and

paid with respect to the Common Shares of the Company during such

fiscal year; plus (b) 10% of the amount determined under Section

2(A)(i)(a) of this Agreement, in each case as certified by the Committee;

and

(ii)    A percentage of the Maximum Award/PBRSUs as set forth in the table

below (interpolated on a straight line basis for percentiles between those     

specifically identified in such table) will be earned on the Performance

Date based on the Company’s cumulative return on average assets for the

Performance Period as compared to the cumulative return on average

assets results for the Performance Period for the Industry Index of

financial services holding companies in the United States with total

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consolidated assets of $3 billion to $10 billion, excluding corporations

classified for federal income tax purposes as “S corporations” (the “$3

Billion to $10 Billion Industry Index” or the “Peer Group”), in each case

as determined and certified by the Committee (the date of such

determination and certification by the Committee being the “Certification

Date” for purposes of this Agreement):

Cumulative Return on Average Assets of the Company as compared to Cumulative Return on Average Assets Results of Peer Group	Percentage of Maximum Award/Number PBRSUs Earned
Less than the 50th percentile of Peer Group	—%
Equal to the 50th percentile of Peer Group [Represents the Minimum/Target Award which may be earned]	66-2/3% [ «Target» PRBSUs]
Equal to or greater than the 80th percentile of Peer Group [Represents the Maximum Award which may be earned]	100% [ «Max» PRBSUs]

(B)    Service-Based Vesting Requirements:

(i)    On the Certification Date, one-half of any PBRSUs that were earned on

the Performance Date, pursuant to the criteria set forth in Section 2(A) of

this Agreement, will vest if you are still employed by the Company or one

of the Affiliates of the Company on such Certification Date; and

(ii)    On the first anniversary of the Certification Date, one-half of any PBRSUs     

that were earned on the Performance Date, pursuant to the criteria set forth

in Section 2(A) of this Agreement, will vest if you are still employed by

the Company or one of the Affiliates of the Company on such first

anniversary of the Certification Date.

3.     Effect of Termination of Employment

(A)    Termination of Employment Due to Death, Disability or Retirement: For     

purposes of this Agreement, “Retirement” means “normal retirement” or “early

retirement,” as each term is defined in the Park National Corporation Defined

Benefit Pension Plan.

(i)    During Performance Period. If the Participant dies or terminates

employment with the Company and each of the Affiliates of the Company     

due to Disability or Retirement at any time during the Performance Period,

if the applicable performance-based criteria for vesting specified in

Section 2(A) of this Agreement have been met, a pro-rated portion of the

PBRSUs granted to the Participant pursuant to this Agreement will vest on

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the Performance Date, which pro-rated portion will be equal to the product

of: (a) the number of PBRSUs that would have been earned on the

Performance Date based on the actual level of achievement for the

Performance Period with respect to the performance-based criteria for         

vesting specified in Section 2(A) of this Agreement; multiplied by (b) the

quotient of the number of full calendar months which have lapsed between

the Grant Date and the date of the Participant’s death or the date of the

Participant’s actual termination of employment with the Company and

each of the Affiliates of the Company due to Disability or Retirement, as

appropriate, divided by the number of months in the Performance Period.

(ii)    After Performance Period. If the Participant dies or terminates

employment with the Company and each of the Affiliates of the Company

due to Disability or Retirement after the Performance Period has ended but

before the service-based vesting requirements specified for the PBRSUs in

Section 2(B) of this Agreement have been satisfied, all unvested PBRSUs

granted to the Participant pursuant to this Agreement which remain

outstanding as of the date of the Participant’s death or termination of

employment with the Company and each of the Affiliates of the Company

due to Disability or Retirement will immediately vest.

(iii)    The PBRSUs which vest pursuant to this Section 3(A) will be settled in     

the form contemplated in Section 6, which settlement will be effective as     

contemplated in Section 6.

(B)     Termination of Employment for Cause:If the Participant’s employment with the     

Company and each of the Affiliates of the Company is terminated for Cause, all     

unvested PBRSUs granted to the Participant pursuant to this Agreement will be

immediately forfeited.

(C)    Termination of Employment for any Reason Other than Death, Disability,

Retirement or for Cause. If the Participant’s employment with the Company and     

each of the Affiliates of the Company terminates for any reason other than due to

the Participant’s death, Disability or Retirement or for Cause, all unvested     

PBRSUs granted to the Participant pursuant to this Agreement will be

immediately forfeited.

4.     Effect of Change in Control

Notwithstanding the provisions of Section 2(A) and Section 2(B) of this Agreement, in     

the event of a Change in Control, the Participant will immediately vest in all unvested

PBRSUs as though the cumulative return on average assets of the Company as compared

to the cumulative return on average assets results of the Peer Group had been achieved at

the level of achievement (i.e., the percentile of the Peer Group) which would have been

achieved if the Performance Period for purposes of Section 2(A) of this Agreement had begun on January 1, 2021 and ended on December 31 of the fiscal year most recently completed prior to the Change in Control; provided, however, that the other performance-based criteria for vesting set forth in Section 2(A) of this Agreement must have been

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satisfied as of the date of the Change in Control. The Committee shall determine and certify the level of achievement for purposes of this Section 4. The PBRSUs which vest pursuant to this Section 4 will be settled in the form contemplated in Section 6 of this Agreement, which settlement will be effective as of the date of the Change in Control. Section 5 of this Agreement shall not apply with respect to any Forfeiture Event occurring on or after the date of the Change in Control.

5. Forfeiture Events

(A) The PBRSUs granted pursuant to this Agreement and any Common Shares         

delivered pursuant to this Agreement shall be subject to the following additional

forfeiture conditions, to which the Participant, by accepting the grant of PBRSUs

pursuant to this Agreement, agrees. If any of the events specified in Section

5(B)(i), Section 5(B)(ii), Section 5(B)(iii), Section 5(B)(iv) or Section 5(B)(v) of

this Agreement occurs (a “Forfeiture Event”), the following forfeitures shall

result:

(i) the PBRSUs and any related Dividend Credit Amount not then vested or

settled will be immediately forfeited and canceled upon the occurrence of

the Forfeiture Event; and

(ii) the Participant will be obligated to forfeit to the Company, within five (5)

business days after demand is made therefor by the Company, (I) all

Common Shares and any cash in lieu of a fractional Common Share which

the Participant received upon settlement of any PBRSUs subject to this     

Agreement during the twelve-month period immediately preceding the

earlier of (a) the termination of the Participant’s employment with the

Company and each of the Affiliates of the Company or (b) the occurrence

of the Forfeiture Event (which forfeiture shall exclude any Common

Shares which had been withheld by the Company or an Affiliate of the

Company in order to satisfy the Participant’s tax withholding obligations

as contemplated by Section 7(C) of this Agreement); and (II) all cash paid

to the Participant in respect of the Dividend Credit Amount related to any

PBRSUs settled pursuant to the terms of this Agreement during the

twelve-month period immediately preceding the earlier of (a) the

termination of the Participant’s employment with the Company and each     

of the Affiliates of the Company or (b) the occurrence of the Forfeiture

Event.

(B) The forfeitures specified in Section 5(A) of this Agreement will be triggered upon     

the occurrence of any one of the following Forfeiture Events at any time during     

the Participant’s employment with the Company or any Affiliate of the Company,

or during the twelve-month period following the termination of the Participant’s

employment with the Company and each of the Affiliates of the Company:

(i) the Participant, acting alone or with others, directly or indirectly, (I)

induces any customer or supplier of the Company or any Affiliate of the     

Company, with which the Company or any Affiliate of the Company has a

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business relationship, to curtail, cancel, not renew or not continue his or

her or its business with the Company or any Affiliate of the Company; or

(II) induces, or attempts to induce, any employee of or service provider to

the Company or any Affiliate of the Company to terminate such

employment or service. Neither the Company nor any Affiliate of the

Company shall bear any responsibility for the Participant’s tax

consequences from any forfeiture pursuant to this Section 5;

(ii) the Participant discloses, uses, sells or otherwise transfers, except in the     

course of employment with or other service to the Company or any     

Affiliate of the Company, any confidential or proprietary information of

the Company or any Affiliate of the Company, including but not limited to

information regarding the Company’s or any Affiliate of the Company’s

current and potential customers, organization, employees, finances and

methods of operations and investments, so long as such information has

not otherwise been disclosed to the public or is not otherwise in the public

domain (other than by the Participant’s breach of this provision), except as

required by law or pursuant to legal process, or the Participant makes

statements or representations, or otherwise communicates, directly or

indirectly, in writing, orally or otherwise, or takes any other action which

may, directly or indirectly, disparage or be damaging to the Company or

any of the Affiliates of the Company or their respective officers, directors,

employees, advisors, businesses or reputations, except as required by law

or pursuant to legal process;

(iii) the Participant fails to cooperate with the Company or any Affiliate of the     

Company in any way, including, without limitation, by making the

Participant available to testify on behalf of the Company or such Affiliate

of the Company in any action, suit or proceeding, whether civil, criminal,

administrative or investigative, or otherwise fails to assist the Company or

any Affiliate of the Company in any way, including, without limitation, in

connection with any such action, suit or proceeding by providing

information and meeting and consulting with members of management of,

other representatives of, or counsel to, the Company or such Affiliate of

the Company, as reasonably requested;

(iv) the Participant, alone or in conjunction with another person, (I) interferes     

with or harms, or attempts to interfere with or harm, the relationship of the

Company or any Affiliate of the Company with any person who at any

time was a customer or supplier of the Company or any Affiliate of the

Company or otherwise had a business relationship with the Company or

any Affiliate of the Company; or (II) hires, solicits for hire, aids in or

facilitates the hiring of, or causes to be hired, either as an employee,

contractor or consultant, any person who is then currently employed, or

was employed at any time during the six-month period prior thereto, as an

employee, contractor or consultant of the Company or any Affiliate of the

Company; or

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(v) the Participant engages in activity while employed by the Company or     

any Affiliate of the Company which would constitute Cause for the     

termination of     the Participant’s employment.

(C) Despite the conditions set forth in this Section 5, the Participant is not hereby

prohibited from engaging in any activity set forth in Section 5(B) of this

Agreement, including but not limited to competition with the Company and the

Affiliates of the Company. Rather, the non-occurrence of the Forfeiture Events

set forth in Section 5(B) of this Agreement is a condition to the Participant’s right

to realize and retain value from the PBRSUs granted pursuant to this Agreement,

and the consequences under the Plan and this Agreement if the Participant

engages in an activity giving rise to any such Forfeiture Events are the forfeitures

specified in Section 5(A) of this Agreement and as otherwise provided in this

Agreement. The Company and the Participant shall not be precluded by this

provision or otherwise from entering into other agreements concerning the subject

matter of Section 5(A) and/or Section 5(B) of this Agreement.

(D) The Committee may, in its discretion, waive in whole or in part the Company’s

right to forfeiture by the Participant under this Section 5, but no such waiver shall

be effective unless evidenced by a writing signed by a duly authorized officer of

the Company.

(E) In addition to the above, the Participant agrees that any of the conduct described     

in Section 5(B)(i), Section 5(B)(ii) or Section 5(B)(iv) of this Agreement would     

result in irreparable injury and damage to the Company for which the Company

would have no adequate remedy at law. The Participant agrees that in the event

of such occurrence or any threat thereof, the Company shall be entitled to an

immediate injunction and restraining order to prevent such conduct and threatened

conduct and/or continued conduct by the Participant and/or any and all persons

and/or entities acting for and/or with the Participant, and without having to prove

damages and to all costs and expenses incurred by the Company in seeking to

enforce the Company’s rights under this Agreement. These remedies are in

addition to any other remedies to which the Company may be entitled at law or in

equity. The Participant agrees that the covenants of the Participant contained in

Section 5(B) of this Agreement are reasonable.

6.     Settlement of the Performance-Based Restricted Stock Units

If all applicable terms and conditions of this Agreement have been satisfied, subject to     

the provisions of Section 4, Section 5 and Section 7(C) of this Agreement, each PBRSU

which has vested will be settled in the form of one Common Share within sixty (60) days

following the date all vesting requirements with respect to the PBRSU have been

satisfied; provided, however, that in lieu of a fractional Common Share, the Participant

will receive a cash payment equal to the Fair Market Value of such fractional Common

Share as of the date on which all vesting requirements with respect to the PBRSU have

been satisfied.

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7.     Other Rules Affecting the Performance-Based Restricted Stock Units

(A) No Voting Rights Before Vesting. In no event will the Participant have any

voting rights with respect to the Common Shares underlying the PBRSUs granted

pursuant to this Agreement prior to the settlement of such PBRSUs.

(B) Dividend Equivalent Rights. If a cash dividend is declared and paid with respect     

to the Common Shares underlying the PBRSUs granted pursuant to this

Agreement, the Participant will be deemed to have been credited with a cash

amount equal to the product of (i) the number of PBRSUs that have not been

settled or forfeited as of both the dividend declaration date and the dividend

payment date, multiplied by (ii) the amount of the cash dividend declared and

paid with respect to each outstanding Common Share of the Company. Such

deemed credited amount of cash (the “Dividend Credit Amount”) will be subject

to the same terms and conditions, including all vesting requirements set forth in

this Agreement, as the related PBRSUs and such Dividend Credit Amount will

vest and, subject to the provisions of Section 5 and Section 7(C) of this

Agreement, be settled in the form of payment of the Dividend Credit Amount in

cash if, when and to the extent the related PBRSUs vest and are settled. In the

event a PBRSU is forfeited, the related Dividend Credit Amount will also be

immediately forfeited.

(C) Tax Withholding. The Company or an Affiliate of the Company, as applicable,     

has the power and right to deduct, withhold or collect any amount required by law

or regulation to be withheld with respect to any taxable event arising with respect

to the PBRSUs and any related Dividend Credit Amount as permitted by the Plan.

Unless otherwise specifically permitted by the Committee, the applicable

withholding requirement will be satisfied with respect to the PBRSUs (but not

with respect to the related Dividend Credit Amount unless agreed to by the

Committee and the Participant) by having the Company or an Affiliate of the

Company, as applicable, withhold Common Shares having a Fair Market Value

on the date the tax is to be determined equal to the minimum statutory total tax

that could be imposed on the transaction, or such higher withholding elected by

the Participant provided that such higher withholding would not have a negative

accounting impact for the Company or an Affiliate of the Company; provided that

the Common Shares to be withheld would otherwise be distributable to the

Participant in respect of the related PBRSUs at the time of the withholding and

the Participant has a vested right to distribution of such Common Shares at such

time.

(D) Limitations on Assignment or Transfer of Performance-Based Restricted Stock

Units. The PBRSUs granted pursuant to this Agreement may not be sold,     

transferred, pledged, assigned or otherwise alienated or hypothecated, except by

will or the laws of descent and distribution; provided, however, that the

Committee may allow you to place your PBRSUs and any right you may have to

payment of the related Dividend Credit Amount into a trust established for your

benefit or the benefit of your family members.

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8.     Restrictions on Resale or Other Similar Disposition of Common Shares Received     Upon Settlement of the Performance-Based Restricted Stock Units

(A) The Participant hereby acknowledges and agrees that, subject to the provisions of

Section 7(C) of this Agreement, none of the Common Shares received upon settlement of the PBRSUs may be sold, transferred, assigned or otherwise similarly disposed of by the Participant to any person for a period of five (5) years after the date of settlement; provided, however, that this restriction will not apply in the event of the settlement of the PBRSUs following the death, Disability or Retirement of the Participant or following a Change in Control. In addition, if following the settlement of the PBRSUs, the Participant subsequently terminates employment with the Company and each of the Affiliates of the Company by reason of death, Disability or Retirement, the restrictions of this Section 8 will immediately cease to apply.

(B) The Participant acknowledges and agrees that the Company will cause each share

certificate evidencing, or other form of evidence of ownership of, the Common     

Shares received upon settlement of the PBRSUs to bear, to the extent practicable,

an appropriate legend reflecting the terms of this Section 8, which legend may be

in the following or any other appropriate form:

“Restrictions on the right to transfer the common shares evidenced by this         

certificate (the “Common Shares”) are set forth in a written Performance-    

Based Restricted Stock Unit Award Agreement, made effective as of

January 20, 2022, to which Park National Corporation (the “Company”)

and «Formal_Name»«Executive» (the “Participant”) are parties. The

Company will mail to the recordholder of the Common Shares a copy of

said Performance-Based Restricted Stock Unit Award Agreement, without

charge, within five days after receipt of a written request therefor.”

9.    Miscellaneous

(A)    Amendment. This Agreement may be amended by a written agreement signed by

both parties to this Agreement; provided, however, that the Company may amend     

this Agreement to the extent necessary to comply with any applicable law or

regulation without your consent or any additional consideration, even if any such

amendment eliminates, restricts or reduces your rights under this Agreement.

(B)    Other Terms and Conditions. Your PBRSUs are subject to the terms and

conditions described in this Agreement and the Plan, which is incorporated by     

reference into and made a part of this Agreement. No agreement or

representations, express or implied, with respect to the subject matter hereof have

been made by either party which are not set forth expressly in this Agreement or

the Plan. In the event of a conflict between the terms of the Plan and the terms of

this Agreement, the terms of the Plan will govern. The Committee has sole

responsibility of interpreting the Plan and this Agreement, and its determination

of the meaning of any provision in the Plan or this Agreement shall be binding.

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(C)    Captions. The captions contained in this Agreement are included only for     

convenience of reference and do not define, limit, explain or modify this

Agreement or its interpretation, construction or meaning and are in no way to be

construed as a part of this Agreement.

(D)    Severability. In the event that any provision of this Agreement shall be held

illegal or invalid for any reason, the illegality or invalidity shall not affect the

remaining provisions of this Agreement, and this Agreement shall be construed

and enforced as if the illegal or invalid provision had not been included.

(E)    Successors and Assigns. This Agreement shall be binding upon all successors and     

assigns of the Company.

(F)    Signature in Counterparts. This Agreement may be signed in counterparts, each

of which shall be an original, with the same effect as if the signatures thereto and     

hereto were upon the same instrument.

(G)    Electronic Delivery. Any counterpart contemplated by Section 9(F), to the extent         

delivered by means of a facsimile machine or by .pdf, .tif, .gif, .jpeg or similar     

attachment to electronic mail, or in any manner complying with the U.S. Federal

ESIGN Act of 2000 or similar provisions of Ohio law such as digital signatures

provided by DocuSign or other digital signature provider (collectively,

“Electronic Delivery”) shall be treated in all manner and respects as an originally

executed counterpart and shall be considered to have the same binding legal effect

as if it were the original signed version thereof delivered in person. At the request

of either party to this Agreement, the other party shall re-execute the original form

of this Agreement and deliver such form to the other party.

[Remainder of page intentionally left blank; signature page follows]

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IN WITNESS WHEREOF, the Participant has executed this Agreement, and the Company has caused this Agreement to be executed by its duly authorized officer, to be effective as of the Grant Date.

Company: PARK NATIONAL CORPORATION, an Ohio corporation	Participant:
By:	Associate Name
Title:
	Street Address
	City, State, and Zip Code
Date:	Date:

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EX-14

Exhibit 14

PARK NATIONAL CORPORATION

CODE OF BUSINESS CONDUCT AND ETHICS

Adopted by the Board of Directors

January 16, 2001

Most Recently Reviewed by the Policy Manager

April 8, 2022

Most Recently Approved by the Board of Directors

April 22, 2022

Policy ownership and decision-making is the responsibility of Matt Miller, (740) 349-0402.

Overall policy administration and governance is the responsibility of Brady Burt, (740) 322-6844.

If you have comments or suggestions regarding the Code of Business Conduct and Ethics,

contact Jerrod Gambs at (740) 349-0419 or Mark Miller at (614) 907-9091.

Park National Corporation ("Park") is judged by the collective and individual performance of the directors/ advisory board members (together, the “directors”), officers, associates, and agents of Park and its subsidiaries, including The Park National Bank (“PNB”), and the divisions of PNB, as well as Guardian Financial Services Company.Collectively, Park and all of its subsidiaries are referred to as the “Company”. Thus, the directors, officers, associates, and agents of the Company traditionally have recognized that their first duty to the Company is to act in a manner that merits public trust and confidence.

As professionals, the Company's directors, officers, associates, and agents have earned a reputation for integrity and competence. They have been guided and judged by the highest standards of conduct. Over the years, these standards have been reaffirmed, despite new challenges and ever-changing social values. Integrity, honesty, public trust and confidence have served as crucial tests of our service and success.

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This Code of Business Conduct and Ethics (this "Code of Ethics") has been adopted by the Board of Directors of Park to demonstrate to the public and the Company's various constituents the importance that Park's Board of Directors and leaders place on ethical conduct. This Code of Ethics is intended to set forth the Company's expectations for the conduct of ethical business practices by the Company’s directors, officers, associates, and agents to promote advance disclosure and review of potential conflicts of interest and similar matters, to protect and encourage the reporting of questionable behavior, to foster an atmosphere of self-awareness and prudent conduct and to discipline appropriately those who engage in improper conduct. This Code of Ethics is not presented to expand upon or change the ethical standards of the Company’s directors, officers, associates, and agents.It is not intended to be all-inclusive, and cannot address every situation that might arise.Rather its purpose is to reduce to writing many of the patterns of conduct that are expected at the Company. It represents a set of minimum standards. It is important to remember that our good reputation emerges from many actions and can be jeopardized by one.

You are required to read this Code of Ethics carefully. Should it be unclear, please seek guidance from the Head of Corporate Services, the Chief Auditor of Park, Park’s Chairman of the Board (“Chairman”), Park’s Chief Executive Officer (“CEO”) or Park’s President for in matters such as these, appearance is often as important as reality. It is not only the letter but the spirit of the commitment that is important.

On an annual basis, directors and officers of the Company must re-read this Code of Ethics and provide written verification of such review by signing an appropriate acknowledgment form. New associates of the Company must read this Code of Ethics and sign the appropriate acknowledgment form during their orientation meeting. On an annual basis, all associates of the Company must re-read this Code of Ethics and provide written verification of such review by signing an appropriate acknowledgment form.

If any associate wishes to anonymously report violations of this Code of Ethics, the Company has established the PRK Improvement Line, a confidential hotline which can be accessed at 1-800-418-6423, extension 775.In addition to reporting via telephone, associates may report online via www.securityvoice.com/reports.Both the telephone and online reporting methods are confidential, and an outside company is used to transmit the information to appropriate Park management.(In some cases, the Chair of the Audit Committee of the Board of Directors of Park (the “Audit Committee”) and/or the full Park Audit Committee may receive such information directly.)However, any e-mail that originates from a Company e-mail address (e.g., an associate’s work e-mail) could be tracked later through computer system documentation, so for maximum confidentiality, it is suggested that a personal home computer be used for the online method of reporting.

Confidential Information

Perhaps the most crucial area of concern for bankers and regulatory authorities is the use and/or abuse of customers’ confidential information. Financial institutions by their very nature are privy to customers' business plans, forecasts, decisions, and problems. Bankers receive this information as an aid to providing more efficient, more knowledgeable service … and for no other reason.

The use of customers’ confidential information for one's own, or another’s, personal benefit constitutes an abuse which subjects an individual and the financial institution to statutory penalties.

Financial institutions also possess considerable information which, though not necessarily confidential by nature, must nonetheless be treated confidentially if the right of privacy of customers and staff is to be safeguarded.

Therefore, confidential information with respect to the Company’s customers and suppliers acquired by an officer, director, associate, or agent of the Company, through his / her association with the Company, is considered to be privileged and must be held in the strictest confidence.It is to be used solely for the intended Company and/or customer purposes and not as a basis for personal gain by the officer, director, associate, or agent.It must also be protected from misuse that could result in identity theft.In no case shall such information be transmitted to or accessed by (1) persons outside the Company, including

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family members or other acquaintances, or (2) any officers, directors, associates, or agents of the Company who do not have a legitimate business “need to know” such information in discharging their respective duties. It is recognized that there may be a need to discuss confidential information with outside legal counsel, bank regulatory agencies or others, but this should be done only if there is a legitimate business or legal need to do so.

Computers and other technological devices enable access to information with greater ease and thus great care is to be taken in following security measures and processes that limit access to confidential or sensitive information involving a customer and/or the Company. Any unauthorized access, update or use of the Company’s systems or data is strictly prohibited. Each director, officer, associate, and agent of the Company entrusted with access to the Company’s data systems, or authorized to update such data systems, is responsible for protecting the integrity of such data systems, including the data contained therein, and may only divulge information related to such data systems or data to those having a legitimate business need for access to the relevant data systems or data, and agree to the restrictions on confidential information provided in this section of this Code of Ethics. Information relating to a customer or the Company is only to be accessed by an officer, associate, or agent of the Company if necessary to perform his / her job and without conflict of interest. In addition, confidential information is to be protected from access by others through consistent use of user names and passwords, and protection of such user names and passwords from use by others inside and outside of the Company.

Confidential information should not be removed from the Company’s premises unless the associate has a business reason to do so and approval from their supervisor. Confidential information should never be mailed to your own personal e-mail address for any reason, including viewing or printing at home.

The restrictions in this section of this Code of Ethics shall also apply to the reports and statements prepared for use in the Company’s business and not generally released.The disclosure of material, non-public information to others can lead to significant legal consequences, fines, and punishment as well as termination of employment.“Material, non-public information” means, generally, any inside information pertaining to the Company or the Company’s customers or suppliers that has not been made public and that a reasonable investor would consider important in making an investment decision (i.e., deciding to buy, hold or sell any security).Only specifically authorized representatives of the Company may discuss any aspect of the Company’s business with the news media or the investment community.Officers, directors, associates, and agents of the Company may not under any circumstances provide information or discuss matters involving the Company with the news media or investment community even if contacted directly by a media organization or investor.All such contact or inquiries must be referred to Park’s Chairman, Park’s CEO and/or Park’s President, or their respective designee(s).

The provisions of this Code of Ethics apply to any social, mobile, digital or other communication channel in which an affiliation or connection with Park or any of its subsidiaries (including the divisions of PNB) has been made or indicated. By example, this means that this Code of Ethics applies to Facebook, Instagram, LinkedIn, Twitter or YouTube accounts, blogs and related links where associates have referenced Park or any of Park’s subsidiaries (including the divisions of PNB) as an employer or indicated an affiliation with Park or any of Park’s subsidiaries (including the divisions of PNB). See also the Acceptable Use Policy for additional guidance on this topic.

Privacy Principles

The Company is committed to protecting customer privacy and the confidentiality of all customer information. The Company follows the American Bankers Association’s “Principles of Banking”, as described below:

1. Recognition of a Customer’s Expectation of Privacy The Company will recognize and respect the privacy expectations of our customers and explain principles of financial privacy to our customers in an appropriate fashion.

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2. Collection, Retention and Use of Customer Information

The Company will collect, retain, and use information about individual customers only where we reasonably believe it would be useful (and allowed by law) to administer our business and to provide products, services and other opportunities to our customers.

3. Maintenance of Accurate Information

The Company will maintain procedures so that our customers’ financial information is accurate, current and complete in accordance with reasonable commercial standards. We will also respond to requests to correct inaccurate information in a timely manner.

4. Limiting Associate Access to Information

The Company will take reasonable steps to limit access by our associates to personally identifiable information to those with a business reason for knowing such information. We will continue to educate our associates so that they will understand the importance of confidentiality and customer privacy. We will also take appropriate disciplinary measures to enforce associate privacy responsibilities.

5. Protection of Information via Established Security Procedures

The Company will maintain appropriate security standards and procedures regarding unauthorized access to customer information.

6. Restrictions on the Disclosure of Account Information

The Company will not reveal specific information about customer accounts or other personally identifiable data to unaffiliated third parties for their independent use, except for the exchange of information with reputable information reporting agencies to maximize the accuracy and security of such information in the performance of bona fide corporate due diligence, unless (1) the information is provided to help complete a customer-initiated transaction; (2) the customer requests such disclosure; (3) the disclosure is required or allowed by any applicable law, rule or regulation (i.e., subpoena, investigation of fraudulent activity, etc.); or (4) the customer has been informed about the possibility of such disclosure for marketing or similar purposes through a prior communication and is given the opportunity to decline (i.e., "opt out").

7. Maintaining Customer Privacy in Business Relationships with Third Parties

If personally identifiable customer information is provided to a third party, the Company will insist that the third party adhere to Privacy Principles as comprehensive and strict as those of the Company that provide for keeping such information confidential.

8. Disclosure of Privacy Principles to Customers

The Company will devise methods of providing our customers with an understanding of our privacy policies.

Company Assets and Intellectual Property

Company-owned assets (including but not limited to documents, electronic files, reports, and records) and intellectual property (including but not limited to inventions, business ideas, unique products, methodologies, and business strategies) are only to be used for corporate purposes and not for personal use or gain.All officers, directors, associates, and agents are required to safeguard the Company’s property.

Conflicts of Interest

As directors, officers, associates, and agents within a financial services organization, we assume a duty to our communities, our customers and our shareholders. Such duty is to act in all matters in a manner that will merit public trust and confidence. This duty extends to all activities -- both personal and professional. Each person associated with the Company is expected to direct his / her personal conduct in a manner which will bring credit to the Company and to avoid any action which would discredit the Company.

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In the exercise of privileges and authority arising from employment or other association with the Company, two fundamental principles apply: directors, officers, associates, and agents, when acting for, on behalf of, or in the name of the Company, will place the interests of the Company ahead of their own private interests, and directors, officers, associates, and agents have a duty to make full disclosure of any situation in which their own private interests create a conflict or potential conflict with those of the Company.

Conflicts of interest occur when business judgments or decisions may be influenced by personal interests not shared by the organization as a whole. A conflict situation may, for example, arise when an individual, or a member of the individual’s family, has an interest in a transaction to which the Company is a party, competes with the Company or takes advantage of an opportunity that belongs to the Company.

When a conflict of interest or potential conflict of interest arises, an officer, director, associate, or agent has a duty to place the Company's interests above his / her own personal interests. It is essential in those instances where a business decision or practice by an officer, director, associate, or agent of the Company may appear to have been made to advance a personal interest, that the decision be approved by the independent and "disinterested" officers or directors of the Company. Thus, if an associate faces a potential conflict of interest, the associate must report the potential conflict of interest to the President of the applicable division of PNB or a member of the Park Council for his / her review and approval. Any action or transaction in which the personal interest of an officer, director, associate, or agent of the Company may be in conflict with the interests of the Company must be promptly reported to the Chair of the Park Audit Committee or through the PRK Improvement Line (see page 2). The Park Audit Committee shall review and oversee all actions and transactions which involve the personal interest of an associate, officer, agent or director and shall have the right to determine in advance that any such action or transaction does not constitute a conflict of interest in violation of this Code of Ethics.

For example, it is considered a conflict of interest, which could result in termination of employment, if an associate of the Company makes a loan, prepares and/or processes any type of transaction (e.g., opens an account, completes a loan application, or processes withdrawals, deposits, check cashing or payments), or waives fees and/or service charges for his / her own personal loans, accounts, or transactions, or those of family members or intimate partners, close friends and persons living in the same household (roommate, boyfriend, girlfriend, etc.); or otherwise influences another associate to prepare or process a transaction for which there is no direct request from the customer.

The use of the Company’s internal systems to view customer account information without a business need, or viewing accounts of family members, close friends or intimate partners on which the associate is not an owner/signer, is prohibited, even if done at the request of the account owner. The associate should direct the inquiry to another associate or supervisor.

Viewing account information as part of a transaction in which the associate is personally involved (such as viewing loan information when party to the transaction personally) is prohibited.

The use of the Company’s internal systems cannot be used to transact personal business,such as ordering a debit card or changing an address. In those situations, the associate becomes a customer and must have another associate or supervisor complete the request, even though such associate may normally have authority and access under such associate’s normal job responsibilities.

The Company encourages associates to use online banking, mobile banking, and Retail Branch Banking available to the Company’s customers for associates’ respective personal banking business needs.

It is each associate’s responsibility to exercise prudence and good judgment when making loans or processing transactions to or for anyone whose personal relationship with the associate may influence his / her judgment.

This policy is not meant to discourage family members or intimate partners, close friends and/or persons living in the same household of associates from banking with our Company. They should be afforded the same excellent service as other customers.

Associates may not fill in a permanent password for a customer in the process of opening an account or log in on behalf of the customer; associates must ensure that such passwords are known to the customer only. Associates may not obtain cash on behalf of a customer without the customer being physically

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present. Dual control must be followed. Refer to the security standards for safekeeping currency for more details.

Additional direction on this subject is provided in the “Conflicts of Interest” booklet within the “Asset Management” series of the Comptroller’s Handbook (Office of the Comptroller of the Currency, January 2015).

Outside Activities

No outside activity may interfere or conflict with the interest of the Company. Acceptance of outside employment, election to directorships of other for-profit enterprises, representation of customers in their dealings with the Company and participation in the affairs of all outside organizations carry possibilities of conflict of interest. No associate of the Company may serve as an officer or director (or in a similar capacity) of any for-profit enterprise without obtaining written approval in advance from Park’s Chairman, Park’s CEO and/or Park’s President or the President of the applicable division of PNB.

Associates of the Company should ask themselves the following questions when considering a job outside the Company: Is there a conflict of interest? Will it adversely affect the Company? Will the job interfere with the time and attention that must be devoted to my job duties, responsibilities, or other obligations at the Company? Will Company property or equipment or use of proprietary information (such as mailing lists, computer systems, etc.) be involved? If the answer to any of these questions is "yes," the second job cannot be accepted. Regardless of whether a conflict of interest exists, any outside employment must be communicated to the associate’s supervisor.

Service with constructive nonprofit, community and charitable organizations and participation in civic affairs are strongly encouraged. There are cases, however, when such organizations may have business relationships with the Company or one of the divisions of PNB which involve the handling of confidential information, such that an associate’s service with or participation in such organization might result in a conflict of interest. Associates must be sensitive to such potential conflicts of interest.In addition, as an officer or board member of a nonprofit, community or charitable organization, an associate of the Company is not to participate in any deliberations, decisions or votes involving the Company.

Fiduciary

No associate of the Company shall accept appointment of or continue to act as a fiduciary or co-fiduciary in the case of any trust, estate, agency, guardianship or conservatorship of an estate or custodianship, or act as an investment counselor or estate appraiser (other than in the course of employment with the Company); unless the creator of the relationship — or the ward in the case of a guardianship or conservatorship — is a member of the associate’s family or a close personal friend.This provision can be waived, on a case-by-case basis, by express prior written approval of Park’s Chairman, Park’s CEO and/or Park’s President or the President of the applicable division of PNB.

In the event that an associate is serving as a fiduciary or co-fiduciary of any trust, estate, agency, guardianship or conservatorship of a customer of the Company in compliance with this Code of Ethics, such associate may not be assigned to service such account and must consider and adhere to the conflict of interest provisions of this Code of Ethics.

Gifts, Fees, Gratuities, and Other Payments from Customers, Suppliers or Third Parties

Federal law (including the Bank Bribery Amendments Act of 1985) prohibits officers, directors, associates, and agents of the Company from (1) soliciting for themselves or for a third party (other than the applicable division of PNB) anything of value from anyone in return for any business, service or confidential information of the Park subsidiary with which they are associated, and (2) accepting anything of value (other than a bona fide salary, wages, fees or other compensation paid, or expenses paid or reimbursed, in the usual course of business as provided in 18 U.S.C. § 215(c)) from anyone in connection with the business of the applicable division of PNB with which they are associated, either before or after a transaction is discussed or consummated.

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18 U.S.C. § 215 is intended to prevent a pay-off to officers, directors, associates, or agents of a Park subsidiary as a quid pro quo either to induce a particular transaction or as a "gratuity" in support of a particular transaction. Thus, where a benefit is given or received as a result of a banking transaction, the statute may be violated. However, it is not intended to proscribe the receipt of gratuities or favors of nominal value when it is clear from the circumstances that (1) a customer is not trying to exert any influence over or reward the officer, director, associate, or agent of the Park subsidiary in connection with a transaction and (2) the gratuity or favor is, in fact, unsolicited.

In addition, officers, directors, associates, and agents may not accept anything of value (e.g., payments, gifts, tangible items or special privileges) in exchange for referrals or other recommendations of business, if such acceptance would be in violation of any applicable law, rule or regulation (including, without limitation, the Real Estate Settlement Procedures Act).

Some of our business acquaintances customarily distribute small gifts during the holidays and on other occasions. In the event of receipt of such a gift or an entertainment opportunity, each director, officer, associate, and agent (when acting for, on behalf of or in the name of the Company) must conscientiously decide whether or not acceptance would give rise to a feeling of obligation, or could lead to misinterpretation. Gifts, benefits, or unusual hospitality that might tend to influence one in the performance of his / her duty, or to create the appearance of impropriety or undue influence, must not be accepted. Such gifts, benefits or unusual hospitality do not include gifts of nominal value, or gifts which serve as general advertising for the donor, or discounts or special concessions available to all associates, or hospitality which is casual and limited to a normal situation. As a further guide to what may or may not be acceptable, associates should ask themselves whether (1) in the judgment of business associates or disinterested parties, such acceptance might seem to impair their ability to act at all times solely in the best interests of the Company, (2) the gift could give the appearance of being solicited or requested and (3) the gift is intended to, or appears to be intended to, influence or reward a business decision or transaction involving the Company.

If an officer, director, or agent receives a personal benefit that is not clearly reasonable and business-related, he/she must report it to the Park Audit Committee. If an associate receives a personal benefit that is not clearly reasonable and business-related, he/she must report it to Park’s Chairman, Park’s CEO and/or Park’s President or the President of the applicable division of PNB with which the individual is associated. The Park Audit Committee, Park’s Chairman, Park’s CEO and/or Park’s President or the President of the applicable division of PNB, as the case may be, shall have the right to determine in advance that any such personal benefit does not constitute a conflict of interest in violation of this Code of Ethics and/or to require that such personal benefit be returned to the provider and/or reimbursed by the Company.

Giving Gifts

While giving gifts to customers or other officers, directors, associates, or agents of the Company may be warranted by legitimate business reasons in certain circumstances, such gifts are to be reasonable and customary for such circumstances and are not to be in the form of cash. Officers, directors, associates, and agents of the Company are never to give a gift with the intent to influence a business decision. In addition, officers, directors, associates, and agents are never to give anything of value (e.g., payments, gifts, tangible items or special privileges) in exchange for the referrals or other recommendations of business, if such gift would be in violation of any applicable law, rule or regulation (including, without limitation, the Real Estate Settlement Procedures Act).The giving of anything of value to federal, state, local or foreign government officials or employees is to be approved by Park’s Chairman, Park’s CEO and/or Park’s President.

Dealing Fairly With Customers, Suppliers, and Other Associates

No officer, director, associate, or agent of the Company may take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practice.Officers, directors, associates, and agents of the Company may not offer or make payments of any kind, whether of money, services or property, to any domestic or foreign public official or provide personal benefits that are not clearly reasonable and business-related to any associate,

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or representative of any organization seeking to or doing business with the Company. If there is any question as to whether any such personal benefit is clearly reasonable and business-related, an officer, director, associate or agent must seek pre-approval from the Park Audit Committee, Park’s Chairman, Park’s CEO and/or Park’s President or the President of the applicable division of PNB.

Except for pricing and packaging of services established by PNB, associates may not extend credit, lease or sell property, provide services or base interest rates or prices on the condition that a customer (1) obtain credit, property, products or services from PNB, (2) provide credit, property, products or services to PNB or (3) avoid obtaining any credit, property, products or services from a competitor of PNB.

All Company associates are required to understand and execute on their responsibility to report customer complaints and inquiries by following Park’s Voice of the Customer program, policies and procedures for logging complaints in the central database. This system is designed to monitor and track complaints to resolution.Customer complaints are taken seriously and corrective action will be taken to protect both the Company and customers from potential reputational and financial harm, thereby maintaining public confidence and reducing compliance risk.

Competition

The Company believes that open and honest competition in the marketplace is healthy and must always be positive, not negative.Any collusion with competitors about the pricing of financial services, interest rates or otherwise engaging in any activity that has the effect, directly or indirectly, of lessening competition, is not permitted.

Associates must avoid portraying competitors of the Company, or the Company itself, in a negative or adverse way. Associates have a duty to portray the Company in the best possible light when communicating with clients, friends, neighbors and any current or potential clients.

Political Activities

Neither Park nor any of its subsidiaries will make any contribution or expenditure, either directly or indirectly, to, or for the benefit of, use of, in support of, or in opposition to, any political party, candidate, political committee, or for any non-public issue purpose. The Company will not reimburse any person for any such contribution or expenditure. This policy relates to the use of Company funds only, and in no way is intended to discourage officers, directors, associates, and/or agents from making personal contributions to individual candidates, political parties, or political action committees.

It is contrary to this Code of Ethics to permit the payment of funds of any subsidiary of Park, or use of Company property, either directly or indirectly, to secure favored business treatment for the applicable subsidiary.In addition, Company property or funds cannot be used to support a campaign for public office.This includes the use of Company personnel and equipment such as telephones, copy machines, postage, etc.

The Company may make political loans in connection with campaigns provided that such loans are made (1) in accordance with applicable banking laws, rules and regulations; (2) in the ordinary course of business; (3) in accordance with the Company’s internal loan policies; and (4) in conformity with all applicable federal, state and local laws, rules and regulations.

Directors, officers, associates, and agents of the Company may engage in political activity (serving, for example, as a campaign treasurer). Associates must inform the persons to whom they report and be very careful not to allow their activity to interfere with their work-related responsibilities. This means such activity would ordinarily be confined to the evenings and weekends and only occasionally and exceptionally would it be engaged in during business hours.When engaging in personal political activities, any director, officer, associate, or agent of the Company must ensure that such person represents himself / herself as an individual and does not appear to represent the Company in any way.

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Any associate of the Company who is considering becoming a candidate for any elected public office, engaging in outside employment under any governmental unit, or being appointed to any governmental position must inform and obtain prior approval from Park’s Chairman, Park’s CEO and/or Park’s President, or the President of the applicable division of PNB.

Dishonesty and Breach of Trust

An officer, director, associate, or agent shall not use his / her position at the Company to commit an act that would be considered illegal (e.g. theft, falsifying records, forgery, check kiting, etc.).

All officers, directors, associates, and agents must conduct themselves with honesty and integrity at all times. Suspicious activities must be reported to the Internal Audit Department of Park or Human Resources Department of PNB, or through the confidential PRK Improvement Line (see page 2.) Upon receipt of such report, the PRK Investigation Team, comprised of Internal Audit, Fraud and Security, and Human Resources officers, will conduct an investigation. All officers, directors, associates, and agents are to cooperate with any investigation. Withholding information, lying to investigators, or impeding an investigation in any way, will be cause for immediate termination of employment. All legal violations will be referred to the appropriate police agency for prosecution.

Compliance with Applicable Laws, Rules and Regulations

The Company expects that each and every officer, director, associate, and agent of the Company will comply with all applicable federal, state, local and foreign laws, rules and regulations governing the Company's business, including insider trading laws. If a law conflicts with this Code of Ethics, comply with the law. If you are unsure, ask. In addition, all officers, directors, associates, and agents are required to respond honestly and candidly when dealing with the Company’s independent auditors and internal auditors, examiners, regulators and legal counsel.

To protect Park and its subsidiaries (including the divisions of PNB) and combat money laundering, terrorist financing or other criminal activity, we must comply with the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws, rules, regulations and guidance. To do so, associates must be able to identify and escalate unusual or suspicious transactions or situations. Associates must exercise good judgment and/or seek guidance related to handling unusual or suspicious activities and report the same through your supervisor and senior leader, the PRK Improvement Line, Park’s Chairman, Park’s CEO, Park’s President, and/or the President of the applicable division of PNB.

While these principles are seemingly self-explanatory, at times the application of any particular law, rule or regulation to the Company may not be perfectly clear. Where an associate is unsure or has any question as to the application to the Company of any law, rule or regulation, it is expected that the associate will seek appropriate guidance from the President of the applicable division of PNB. Officers, directors, and agents of the Company should seek guidance from the President of the applicable division of PNB.If outside legal counsel needs to be considered, the Legal Risk Management Policy located on Park Place should be consulted, along with Park’s Chief Risk Officer and appropriate business line leader for the area in question. The Park Audit Committee has established a process for the confidential reporting of items, if an acceptable response is not received.Refer to page 2 for information on the PRK Improvement Line. In addition, the Park Audit Committee is specifically empowered to engage non-Company legal counsel if or when it believes such engagement is prudent.

Health and Safety

Associates are our most valuable resource and their health and safety are, therefore, serious concerns. Each associate has responsibility for maintaining a safe and healthy workplace for all associates by following safety and health rules, prompt reporting of accidents, injuries and unsafe equipment, practices or conditions.

In order to prevent accidents and injuries as well as minimize the impact of any such events, each associate should immediately notify his / her supervisor if the associate is injured or becomes ill potentially as a result of his / her work, or becomes aware of any unsafe working conditions. Reporting forms are posted electronically and may also be obtained from a supervisor or the Human Resources Department of PNB.

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The Company will not tolerate the use of drugs or alcohol that could imperil the health and well-being of the Company’s associates or its reputation. Associates should not engage in situations on behalf of the Company when the consumption of drugs or alcohol causes them to be over the legal limit or impaired in a manner that may reflect poorly on the Company’s reputation. This includes transporting associates or customers in Company-owned or personal vehicles while under the influence of drugs or alcohol. The Company will also not tolerate the abuse of legally-prescribed controlled substances by its associates.

Workplace violence has become a growing problem in our society. For the purpose of addressing this concern, the Company defines workplace violence as any act perceived as threatening, menacing or harmful to an individual, group of individuals, or the Company itself.

The Company does not tolerate violence, or the threat of violence, in the workplace. Violence, or the threat of violence, by or against any associate of the Company, any visitor or any customer is unacceptable and contrary to this policy. Threats include any words or actions that either create a perception that there may be intent to harm any person or property or actually bring about harm. If an associate believes a violation of this policy has occurred, he/she should report it at once to their supervisor, Fraud and Security, and/or Human Resources officers.

Dealing with Auditors, Examiners, Regulators and Legal Counsel

All officers, directors, associates, and agents must respond and deal honestly, factually and candidly with the Company’s independent auditors and internal auditors, examiners, regulators and legal counsel.

It is of critical importance that Park’s filings with the Securities and Exchange Commission, banking regulators and other regulatory agencies and authorities, as well as our other public communications be complete, fair, accurate, timely, understandable and transparent. Depending on your position with the Company, you may be called upon to provide necessary information to assure that Park’s filings and public reports meet these standards.

In addition, the Company often receives confidential information from the Company’s regulators (for example, examination reports prepared by the Federal Reserve, the Office of the Comptroller of the Currency or the Consumer Financial Protection Bureau).This confidential supervisory information is highly restricted, must be safeguarded and may only be shared with colleagues on a strict “need to know” basis.Confidential supervisory information should never be removed from the Company’s premises and the Company’s legal counsel must be consulted before any confidential supervisory information can be shared outside of the Company.

Maintaining Accurate Records

The Company's books, records and accounts shall accurately and fairly reflect the transactions of the Company in reasonable detail and in accordance with the Company’s accounting practices and policies.

All officers, directors, associates, and agents must comply with all internal control procedures established by the Company for the safeguarding of assets and proper reporting and disclosure of financial information.

In business records and other communications, including any e-mails and internal memos and reports, officers, directors, associates, and agents of the Company are prohibited from falsifying information and are to avoid exaggerations, guesswork or other inappropriate characterizations that may be misinterpreted by others. All records are to be retained and destroyed in accordance with the Company’s document retention policies and procedures. In the event that the disclosure of documents, records or other information is to be compelled in connection with any litigation or governmental investigation, an officer, director, associate, or agent of the Company responsible for such documents, records or other information is to first seek guidance from the Company’s legal counsel.

Personal Investments

In making personal investments, all officers, directors, associates, and agents shall be guided by a keen awareness of potential conflict. Generally speaking, one's own investments should not be such as to

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influence one’s judgment or action in the conduct of the Company's business or to profit from security transactions made for the Company’s customers.

An officer, director, associate, or agent may not enter into a security transaction for his / her own account under conditions where material, non-public information or any information not generally available to the public is (1) made available to the Company on a confidential basis or for corporate purposes and (2) used as a basis for the individual's action; nor may the individual disclose such information to any unauthorized person. The Company has a comprehensive "Insider Trading Policy" which is applicable to all officers, directors, and associates of the Company as well as to each of their family members. The Company expects that every officer, director, and associate will comply, and will cause their family members to comply, with every aspect of the Insider Trading Policy.

Associates responsible for a relationship with a particular client may not invest in the equity of such client or any subsidiary or affiliate thereof, except that associates may invest in publicly-traded stock provided that: (1) such stock is listed on a national or regional stock exchange; (2) the associate’s ownership in the relevant entity (together with any interest of his / her family members) does not exceed 1% of the outstanding capital stock of such entity; and (3) the associate may not request or accept allocation of stock in a new issue from any dealer or other person if the stock is in an entity that has a relationship (other than a deposit relationship) with the Company.

In addition, associates with power or authority over purchasing goods and/or services from a vendor or supplier of the Company must avoid investments in the equity of such supplier or vendor, except for publicly-traded stock in compliance with clauses (1) through (3) addressed in the immediately preceding paragraph.

Personal Borrowing

Officers subject to Regulation O, as well as associates and other officers of the Company may borrow from PNB, the divisions of PNB or other financial institutions, provided all transactions are at arm's-length, at market prices, and control of the lending situation is clearly in the hands of the lender. An associate may not have lending authority over an account involving the associate, his / her family members or any related interests. Associates are not permitted to borrow from customers or suppliers of the Company. This prohibition does not preclude the Company from entering into a lending relationship with an individual related to the associate by blood or marriage. Only officers and directors subject to Regulation O must report to the Board of Directors of PNB.

It is the policy of the Company that credit standards will be consistent for all loan applications and existing clients regardless of race, color, religion, national origin, age, sex, disability, familial status, marital status, military status, ethnicity, sexual orientation, gender identity or any other legally protected status, provided the applicant meets all other relevant criteria and has the capacity to enter into a binding contract.

You must exhibit the highest caliber of ethical behavior and fiscal responsibility in your own banking relationship with the Company.Moreover, you are expected to abide by your financial obligations to the Company and to any financial institution from which you borrow.This includes ensuring your payments are made on time, sufficient funds are available in the account(s) from which you are intending to withdraw the funds, and that your accounts remain in good standing at all times.Although the Company understands that there may be extraordinary circumstances from time to time that prevent you from meeting these obligations, it is expected that you take full responsibility for proactively communicating any issues to the Company so that appropriate arrangements can be made to address the problem at hand.

Employment of Relatives

Employment of family members of current junior bank officers (defined as Assistant Vice President, Banking Officer and Administrative Officer) and family members of all non-officer associates of the Company is permitted. Employment of family members of senior officers (defined as Vice President and above) may be approved on a case-by-case basis by Park’s Chairman, Park’s CEO and/or Park’s President, but such approval will still preclude the family members from working within the same

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department and/or having a reporting relationship. (See third and fourth paragraphs below for specific guidance about children of senior officers.)

Occasionally, the Company may employ both spouses, although they will be prohibited from working in the same department or branch office and may not have a reporting relationship.Supervisors / managers / leaders at any level may not hire, promote or directly supervise a family member or common law partner.

The children of senior officers (Vice President and above) and directors of the Company may be employed as temporary help during their student years in any division of PNB or other subsidiary of the Company, including that of the senior officer or director parent, but they are not permitted to report directly to the senior officer parent.

Children of senior officers and directors of the Company are only permitted to have permanent employment in a separate PNB division or Park subsidiary other than that of the senior officer or director parent. Additionally, the position held by children of senior officers cannot have a reporting relationship to the senior officer parent at another PNB division. Exceptions may be made by the President of the applicable division of PNB with which the senior officer or director parent is associated and one of Park’s Chairman, Park’s CEO and/or Park’s President.

Giving Advice to Clients or Customers

Clients or customers may occasionally request an opinion on legal or tax transactions.The Company cannot practice law or give legal or tax advice.Accordingly, associates must take care in discussing such transactions so as not to give the impression or allow the client or customer to interpret such discussions as providing legal or tax advice.

Assistance in Meeting the Company's Accounting, Financial Reporting and Disclosure Obligations

In compliance with the rules and regulations of the U.S. Securities and Exchange Commission and NYSE American, the Company is required to issue financial statements in conformity with U.S. generally accepted accounting principles and then make public disclosures regarding certain aspects of the Company’s business. It is expected that all officers, directors, associates, and agents of the Company will keep honest, accurate and complete books, records and accounts that enable the Company to meet the Company’s accounting and financial reporting obligations. It is expected that any officer, director, associate, or agent of the Company involved in preparing the Company's disclosures, or any associate or officer asked to provide information relevant to such disclosure, will work to ensure that the Company’s public reports and communications are fair, accurate, certifiable, complete, objective, relevant, timely, and understandable.

Any associate or officer who, in good faith, believes that the Company's accounting method is inappropriate or not in compliance with U.S. generally accepted accounting principles, or has concerns about any questionable accounting or auditing matter or any other accounting, internal accounting control or auditing matter, must report this finding directly to Park's Chief Financial Officer or alternatively to the Chief Auditor of Park and, if unsatisfied with the response, directly to the Park Audit Committee. The Park Audit Committee has established a procedure for such reports that ensures the confidentiality of the reporting person. Refer to page 2 for information on the PRK Improvement Line.

In addition, any officer or associate who becomes aware of a material event or fact involving the Company that has not been previously disclosed publicly by the Company must immediately report such material event or fact to Park's Chairman, Park’s CEO, Park’s President, Park’s Chief Financial Officer, or the President of the applicable division of PNB.

Post-Employment Activities

At the time of separation of employment or other termination of service, departing officers, directors, associates, and agents will be required to return all Company property in their possession or control,

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including but not limited to electronic or written Company documents, electronic files, reports and records containing any Company or non-public information, along with all copies and derivations/summaries thereof. A departed officer, director, associate, or agent remains obligated by law not to disclose to any third party or use for his / her own purposes any confidential or proprietary information to which the officer, director, associate, or agent had access or became aware while employed by or associated with the Company, including confidential information of the Company and of those persons and organizations that have engaged in business with the Company. A departed officer, director, associate, or agent is also expected not to disparage the Company or engage in activity that damages the Company’s reputation or business, since such activity may also be unlawful.

Violations of Policies

There are many other policies that are very important to the Company and its operations. Nothing herein shall relieve any officer, director, associate, or agent of the Company from complying with all other applicable Company policies.

Violations of any of the Company's Board-approved policies may be cause for disciplinary action, including termination of employment or service.

The Company expects full compliance with this Code of Ethics. In that regard, associates are encouraged to report any violation of this Code of Ethics to their supervisor, the Internal Audit Department of Park, the Human Resources Department of PNB, or to the President of their applicable division of PNB. Officers and directors must report any violation of this Code of Ethics to the Park Audit Committee. Officers, directors, associates, and agents may also report suspected violations of this Code of Ethics to a senior officer, the Human Resources Department of PNB, the Internal Audit Department of Park, or the PRK Improvement Line. The Company will not permit any retaliation against an officer, director, associate, or agent who properly reports (to the appropriate personnel) a matter that he or she believes, in good faith, to be a violation of this Code of Ethics or anyone who participates in any investigation of any such violation. Reports to the Park Audit Committee may be made on a confidential basis. Any officer, director, associate, or agent who is found to have violated this Code of Ethics may be subject to discipline, including termination of employment or service.

The Park Audit Committee shall investigate any alleged violation of this Code of Ethics by any of the Company's officers, directors, associates, or agents. In the event that the Park Audit Committee determines that a violation of this Code of Ethics has occurred, the Park Audit Committee shall be authorized to take any action it deems appropriate. If the violation involves an executive officer or director of Park, the Park Audit Committee shall notify Park's Board of Directors and Park's Board of Directors shall take such action as it deems appropriate. In the event that Park's Board of Directors recognizes that a violation by an executive officer or a director of Park has occurred but elects not to take any remedial or other action against the offending executive officer or director, Park shall disclose the facts and circumstances of the election by Park’s Board of Directors to waive the violation of this Code of Ethics by posting the same on Park's web site or by any other such means as may be required under applicable laws, rules and regulations or the requirements of the U.S. Securities and Exchange Commission or NYSE American.

Also, nothing in this Code of Ethics affects the general policy of the Company that employment is at will and can be terminated by the Company or the associate at any time and for any or no reason.

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ASSOCIATE'S ACKNOWLEDGMENT OF PARK NATIONAL CORPORATION CODE OF BUSINESS CONDUCT AND ETHICS

The foregoing Code of Business Conduct and Ethics (the "Code of Ethics") will not answer or resolve every question you may have. If you are uncertain about what the right thing to do is, you are encouraged to seek the advice and guidance of your supervisor, your Human Resources representative or the President of the division of PNB with which you are associated.

YOU MAY ALWAYS DIRECTLY REPORT ANY MATTER WHICH YOU BELIEVE, IN GOOD FAITH, TO BE A VIOLATION OF THE FOREGOING CODE OF ETHICS TO PARK’S CHAIRMAN OF THE BOARD, PARK’S CHIEF EXECUTIVE OFFICER, AND/OR PARK’S PRESIDENT, OR TO THE AUDIT COMMITTEE OF PARK'S BOARD OF DIRECTORS ON A CONFIDENTIAL BASIS. YOU MAY ALSO CONTACT THE PRK IMPROVEMENT LINE AT 1-800-418-6423 (Ext. 775) OR VIA THE WEBSITE AT www.securityvoice.com/reports.

Associates acknowledge understanding of the Code of Ethics electronically, and agree to be bound by the terms of the Code of Ethics. Through their acknowledgement, they understand they may be subject to disciplinary action, including separation of employment or service, termination of business relationship, and prosecution under applicable law for violating any of the provisions of the Code of Ethics.

14

DIRECTOR'S ACKNOWLEDGMENT OF PARK NATIONAL CORPORATION CODE OF BUSINESS CONDUCT AND ETHICS

The foregoing Code of Business Conduct and Ethics (the "Code of Ethics") will not answer or resolve every question you may have. If you are uncertain about what the right thing to do is, you are encouraged to seek the advice and guidance of outside legal counsel to Park National Corporation ("Park") or other legal counsel designated by the Audit Committee of the Board of Directors of Park.

YOU MAY ALWAYS DIRECTLY REPORT ANY MATTER WHICH YOU BELIEVE, IN GOOD FAITH, TO BE A VIOLATION OF THE FOREGOING CODE OF ETHICS TO THE AUDIT COMMITTEE OF PARK’S BOARD OF DIRECTORS OR THE FULL BOARD OF DIRECTORS OF PARK.

I have read and understand the foregoing Code of Ethics, have been given a copy to retain for my reference, and agree to be bound by its terms. I understand I can be subject to discipline, removal for cause as a member of the Board of Directors/Advisory Board on which I serve and prosecution under applicable law for violating any of the provisions of the Code of Ethics.

Print Name	Last 4 digits of Social Security Number
	/ /
Signature	Date

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EX-21

Exhibit 21

SUBSIDIARIES OF PARK NATIONAL CORPORATION

Name of Subsidiary		Jurisdiction of Incorporation or Formation
The Park National Bank (“PNB”)		United States (federally-chartered national banking association)
•	Park Investments, Inc. (NOTE: is a wholly-owned subsidiary of PNB)	Delaware
•	Scope Leasing, Inc. (NOTE: is a wholly-owned subsidiary of PNB) [Also does business under “Scope Aircraft Finance”]	Ohio
•	Park ABQ, LLC (NOTE: PNB is sole member)	Ohio
•	River Park Properties, LLC (NOTE: PNB is sole member)	Ohio
•	X Holdings, LLC (NOTE: PNB is sole member)	North Carolina
•	NSCB 2, LLC (NOTE: PNB is sole member)	South Carolina
Guardian Financial Services Company [Also does business under “Guardian Finance Company”]		Ohio

SE Property Holdings, LLC ("SEPH")		Ohio
•	Vision-Park Properties, L.L.C. (NOTE: SEPH is sole member)	Florida
•	Alabama Apartment Holdings, LLC (NOTE: SEPH is sole member)	Ohio
•	87A Orange Beach, LLC (NOTE: SEPH is sole member)	Ohio
•	Morningside Holding, LLC (NOTE: SEPH is sole member)	Ohio
•	Swindall Holdings, LLC (NOTE: SEPH is sole member)	Ohio
•	Swindall Partnership Holdings, LLC (NOTE: SEPH is sole member)	Ohio
•	Farm Holdings, LLC (NOTE: SEPH is sole member)	Ohio
•	Marina Holdings Z, LLC (NOTE: SEPH is sole member)	Ohio
•	Marina Holding WE, LLC (NOTE: SEPH is sole member)	Ohio
Vision Bancshares Trust I (NOTE: Park holds all of the common securities as successor Depositor; floating rate preferred securities are held by institutional investors)		Delaware

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements of Park National Corporation:

Form S-8 No.  333-91178

Form S-8 No.  333-168334

Form S-8 No.  333-188323

Form S-8 No. 333-218006

Form S-8 No. 333-218009

Form S-8 No. 333-219173

Form S-4 No. 333-223559

Form S-4 No. 333-228145

of our report dated March 1, 2023, relating to the consolidated financial statements and effectiveness of internal control over financial reporting, appearing in this Annual Report on Form 10-K.

Crowe LLP

Columbus, Ohio

March 1, 2023

EX-24

Exhibit 24

POWER OF ATTORNEY

    Each director and/or officer of Park National Corporation, an Ohio corporation (the “Corporation”), whose signature appears below, hereby constitutes and appoints Matthew R. Miller and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as each of the undersigned’s attorney-in-facts and agents to execute and deliver, in the name and on behalf of the undersigned, in any and all capacities stated below, and cause to be filed with the Securities and Exchange Commission, Washington, D.C. (the “Commission”), the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “2022 Form 10- K”), including any and all exhibits and other documents required to be included therewith, and likewise to execute and deliver and cause to be filed with the Commission any and all amendments to the 2022 Form 10-K, including, in each case, any and all exhibits and other documents required to be included therewith, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as each of the undersigned could do if personally present. Each of the undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, each of the undersigned has executed this Power of Attorney this 23rd day of January, 2023.

Name and Position(s)	Signature
Donna M. Alvarado	/s/ Donna M. Alvarado
Director
Frederic M. Bertley, Ph.D.	/s/ Frederic M. Bertley
Director
C. Daniel DeLawder	/s/ C. Daniel DeLawder
Director

F. William Englefield IV	/s/ F. William Englefield IV
Director
Alicia J. Hupp	/s/ Alicia J. Hupp
Director
Jason N. Judd	/s/ Jason N. Judd
Director
Stephen J. Kambeitz	/s/ Stephen J. Kambeitz
Director
Timothy S. McLain	/s/ Timothy S. McLain
Director
D. Byrd Miller, III	/s/ D. Byrd Miller, III
Director
Matthew R. Miller	/s/ Matthew R. Miller
Director and Officer
Robert E. O'Neill	/s/ Robert E. O'Neill
Director
Mark R. Ramser	/s/ Mark R. Ramser
Director
David L. Trautman	/s/ David L. Trautman
Director and Officer
Lee Zazworsky	/s/ Lee Zazworsky
Director
Brady T. Burt	/s/ Brady T. Burt
Officer
Kelly A. Herreman	/s/ Kelly A. Herreman
Officer

EX-31.1

Exhibit 31.1

Rule 13a-14(a)/15d-14(a) Certifications

[Principal Executive Officer]

CERTIFICATIONS

I, David L. Trautman, certify that:

1.I have reviewed this Annual Report on Form 10-K for the fiscal year ended December 31, 2022, of Park National Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  March 1, 2023	By:	/s/ David L. Trautman
	Printed Name: David L. Trautman
	Title: Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

Rule 13a-14(a)/15d-14(a) Certifications

[Principal Financial Officer]

CERTIFICATIONS

I, Brady T. Burt, certify that:

1.I have reviewed this Annual Report on Form 10-K for the fiscal year ended December 31, 2022, of Park National Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  March 1, 2023	By:	/s/ Brady T. Burt
	Printed Name: Brady T. Burt
	Title: Chief Financial Officer, Secretary and Treasurer

EX-32

Exhibit 32

CERTIFICATIONS PURSUANT TO

SECTION 1350 OF CHAPTER 63 OF

TITLE 18 OF THE UNITED STATES CODE*

In connection with the Annual Report of Park National Corporation (the “Company”) on Form 10-K for the fiscal year ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned David L. Trautman, Chairman of the Board and Chief Executive Officer of the Company, and Brady T. Burt, Chief Financial Officer, Secretary and Treasurer of the Company, certify, pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of each of our respective knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company and its subsidiaries.

/s/ David L. Trautman	/s/ Brady T. Burt
David L. Trautman	Brady T. Burt
Chairman of the Board and Chief Executive Officer (Principal Executive Officer)	Chief Financial Officer, Secretary and Treasurer (Principal Financial Officer)
Dated: March 1, 2023	Dated: March 1, 2023

*    These certifications are being furnished as required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 1350 of Chapter 63 of Title 18 of the United States Code, and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section.

    These certifications shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates these certifications by reference.

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Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2022	Feb. 28, 2023	Jun. 30, 2022
Cover [Abstract]
Entity Tax Identification Number	31-1179518
Entity Address, Address Line One	50 North Third Street,
Entity Address, City or Town	Newark,
Entity Address, Address Line Two	P.O. Box 3500
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43058-3500
City Area Code	(740)
Title of 12(b) Security	Common Shares, without par value
Local Phone Number	349-8451
Trading Symbol	PRK
Entity Voluntary Filers	No
Security Exchange Name	NYSEAMER
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Public Float			$ 1,919,044,873
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,263,583
Amendment Flag	false
Document Fiscal Year Focus	2022
Entity Central Index Key	0000805676
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Registrant Name	PARK NATIONAL CORPORATION
Entity File Number	1-13006
Document Period End Date	Dec. 31, 2022
Document Annual Report	true
Document Type	10-K
Document Transition Report	false
ICFR Auditor Attestation Flag	true
Entity Incorporation, State or Country Code	OH
Auditor Name	Crowe LLP
Auditor Location	Columbus, OH
Auditor Firm ID	173

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets [Abstract]
Cash and Due from Banks	$ 156,750	$ 144,507
Money market instruments	32,978	74,673
Cash and cash equivalents	189,728	219,180
Debt Securities, Available-for-sale, Current	1,733,696	1,754,140
Other Investments and Securities, at Cost	87,091	61,268
Total investment securities	1,820,787	1,815,408
Total loans	7,141,891	6,871,122
Allowance for credit losses	85,379	83,197
Net loans	7,056,512	6,787,925
Bank Owned Life Insurance	220,072	215,792
Prepaid Expense, Current	153,579	144,124
Goodwill	159,595	159,595
Intangible Assets, Net (Excluding Goodwill)	5,975	7,462
Property, Plant and Equipment, Net	82,126	89,008
Amortization Method Qualified Affordable Housing Project Investments	60,968	58,711
Accrued Investment Income Receivable	34,704	23,413
Other real estate owned	1,354	775
Mortgage loan servicing rights	15,792	15,264
Operating Lease, Right-of-Use Asset	17,600	13,446
Other Assets, Miscellaneous	36,201	10,151
Other Assets	787,966	737,741
Assets, Total	9,854,993	9,560,254
Liabilities [Abstract]
Non-interest bearing	3,074,276	3,066,419
Interest-bearing Deposit Liabilities	5,160,439	4,838,109
Total deposits	8,234,715	7,904,528
Short-term Debt	227,342	238,786
Subordinated Debt	188,667	188,210
Total borrowings	416,009	426,996
Operating Lease, Liability	19,291	14,339
Interest Payable	3,486	3,116
Qualified Affordable Housing Project Investments, Commitment	28,132	28,484
Off-Balance Sheet, Credit Loss, Liability	5,214	4,282
Other Liabilities Unclassified	78,920	67,750
Other Liabilities, Total	135,043	117,971
Total liabilities	8,785,767	8,449,495
Commitments and Contingencies
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract]
Preferred Stock, Value, Issued	0	0
Common Stock, Value, Issued	462,404	461,800
Accumulated Other Comprehensive Income (Loss), Net of Tax	(102,394)	15,155
Retained Earnings (Accumulated Deficit)	847,235	776,294
Treasury Stock, Value	138,019	142,490
Total shareholders’ equity	1,069,226	1,110,759
Liabilities and Equity, Total	$ 9,854,993	$ 9,560,254

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Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest and Dividend Income, Operating [Abstract]
Interest and Fee Income, Loans and Leases	$ 323,107	$ 317,208	$ 328,727
Interest and Dividend Income, Securities, by Classification [Abstract]
Interest Income, Securities, US Treasury and Other US Government	36,047	19,458	19,818
Interest Income, Securities, State and Municipal	10,964	8,307	8,436
Other Interest and Dividend Income	8,129	880	739
Interest and Dividend Income, Operating, Total	378,247	345,853	357,720
Interest Expense, Deposits [Abstract]
Interest Expense, NOW Accounts, Money Market Accounts, and Savings Deposits	17,646	1,595	9,142
Interest Expense, Time Deposits	3,314	4,711	12,186
Interest Expense, Borrowings [Abstract]
Interest Expense, Short-term Borrowings	1,395	767	1,110
Interest Expense, Long-term Debt	8,833	8,887	7,652
Total interest expense	31,188	15,960	30,090
Net interest income	347,059	329,893	327,630
Provision for (recovery of) credit losses	4,557	(11,916)	12,054
Interest Income (Expense), after Provision for Loan Loss, Total	342,502	341,809	315,576
Noninterest Income [Abstract]
Debit card fee income	26,046	25,865	22,160
Bank Owned Life Insurance Income	6,100	4,897	4,789
ATM Fees	2,273	2,379	1,773
Gains (Losses) on Sales of Other Real Estate	5,611	(4)	1,207
Real Estate Owned, Valuation Allowance, Valuation Increase	12,039	64	105
Gain (Loss) on Sale of Investments	0	0	3,286
Gain on equity securities, net	2,955	5,011	2,182
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component	12,108	8,152	7,952
Noninterest Income, Other	9,326	10,487	7,281
Total other income	135,935	129,944	125,664
Noninterest Expense [Abstract]
Salaries	133,299	125,585	128,040
Employee benefits	40,490	41,603	37,115
Occupancy expense	13,866	13,039	13,802
Furniture and equipment expense	11,901	10,887	18,805
Data processing fees	32,627	30,539	11,659
Professional fees and services	30,837	27,450	31,303
Marketing	5,335	6,073	5,828
Insurance	5,413	5,917	6,423
Communication	3,891	3,539	4,084
State tax expense	4,585	4,255	3,991
Amortization of Intangible Assets	1,487	1,798	2,263
Payment for Debt Extinguishment or Debt Prepayment Cost	0	0	10,529
Foundation contribution expense	4,000	4,000	3,000
Miscellaneous	10,247	8,833	9,753
Total other expense	297,978	283,518	286,595
Income before income taxes	180,459	188,235	154,645
Income taxes	32,108	34,290	26,722
Net Income (Loss) Attributable to Parent	$ 148,351	$ 153,945	$ 127,923
Earnings Per Share [Abstract]
Basic (in dollars per share)	$ 9.13	$ 9.45	$ 7.85
Diluted (in dollars per share)	$ 9.06	$ 9.37	$ 7.80
Fiduciary and Trust [Member]
Noninterest Income [Abstract]
Revenue from Contract with Customer, Including Assessed Tax	$ 34,091	$ 34,449	$ 28,873
Deposit Account [Member]
Noninterest Income [Abstract]
Revenue from Contract with Customer, Including Assessed Tax	10,091	8,832	8,445
Bank Servicing [Member]
Noninterest Income [Abstract]
Revenue from Contract with Customer, Including Assessed Tax	15,295	29,812	37,611
Noninterest Income, Other	$ 15,300	$ 29,800	$ 37,600

XML

Statement of Comprehensive Income (Statement) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net Income (Loss) Attributable to Parent	$ 148,351	$ 153,945	$ 127,923
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax	(12)	1,754	928
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax	876	(26,875)	8,675
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax, Total	888	(28,629)	7,747
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	0	0	2,596
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax	(116,867)	(19,537)	25,747
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax	(116,867)	(19,537)	23,151
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax	154	492	(244)
Other Comprehensive Income (Loss), Net of Tax	(117,549)	9,584	15,160
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total	30,802	163,529	143,083
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax	14	0	0
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax	52	0	0
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax	$ 206	$ 492	$ (244)

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Preferred Stock [Member]	Common Stock [Member]	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance	Treasury Stock [Member]	AOCI Attributable to Parent [Member]
Beginning balance at Dec. 31, 2019				$ 0	$ 459,389	$ 646,847			$ (127,633)	$ (9,589)
Beginning balance, shares at Dec. 31, 2019				0	16,346,442
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss) Attributable to Parent	$ 127,923					127,923
Other Comprehensive Income (Loss), Net of Tax	15,160									15,160
Dividends, Common Stock, Cash						70,601
Stock Issued During Period, Shares, Dividend Reinvestment Plan					36
Stock Issued During Period, Value, Dividend Reinvestment Plan					$ 3
Allocated Share-based Compensation Expense	$ 6,000				$ 5,998
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures					30,341
Stock Granted, Value, Share-based Compensation, Net of Forfeitures					$ (4,697)	(664)			(3,031)
Treasury Stock, Shares, Acquired					76,000
Treasury Stock, Value, Acquired, Cost Method									(7,507)
Treasury Stock Reissued Shares For Director Grants	13,450				13,450
Treasury shares reissued for director grants						69			1,343
Ending balance, shares at Dec. 31, 2020				0	16,314,197
Ending balance at Dec. 31, 2020	$ 1,040,256	$ (7,956)	$ 1,032,300	$ 0	$ 460,687	704,764			(130,766)	5,571
Ending balance (Accounting Standards Update 2016-13) at Dec. 31, 2020							$ (7,956)	$ 696,808
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Cash Paid	$ 4.28
Net Income (Loss) Attributable to Parent	$ 153,945					153,945
Other Comprehensive Income (Loss), Net of Tax	9,584									9,584
Dividends, Common Stock, Cash						74,634
Stock Issued During Period, Shares, Dividend Reinvestment Plan					45
Stock Issued During Period, Value, Dividend Reinvestment Plan					$ 6
Allocated Share-based Compensation Expense	$ 6,300				$ 6,345
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures					29,670
Stock Granted, Value, Share-based Compensation, Net of Forfeitures					$ (5,226)	(141)			(2,964)
Treasury Stock, Shares, Acquired					137,659
Treasury Stock, Value, Acquired, Cost Method									(16,048)
Treasury Stock Reissued Shares For Director Grants	13,400				13,400
Treasury shares reissued for director grants						316			1,360
Ending balance, shares at Dec. 31, 2021				0	16,219,563
Ending balance at Dec. 31, 2021	$ 1,110,759	$ (8,000)		$ 0	$ 461,800	776,294			(142,490)	15,155
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Cash Paid	$ 4.52
Net Income (Loss) Attributable to Parent	$ 148,351					148,351
Other Comprehensive Income (Loss), Net of Tax	(117,549)									(117,549)
Dividends, Common Stock, Cash						76,771
Stock Issued During Period, Shares, Dividend Reinvestment Plan					14
Stock Issued During Period, Value, Dividend Reinvestment Plan					$ 2
Allocated Share-based Compensation Expense	$ 5,900				$ 5,879
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures					34,245
Stock Granted, Value, Share-based Compensation, Net of Forfeitures					$ (5,273)	(965)			(3,477)
Treasury Stock Reissued Shares For Director Grants	9,789				9,789
Treasury shares reissued for director grants						326			994
Ending balance, shares at Dec. 31, 2022				0	16,263,583
Ending balance at Dec. 31, 2022	$ 1,069,226			$ 0	$ 462,404	$ 847,235			$ (138,019)	$ (102,394)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Cash Paid	$ 4.66

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Consolidated Statement of Cash Flows (Statement) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]
Net Income (Loss) Attributable to Parent	$ 148,351,000	$ 153,945,000	$ 127,923,000
Provision for (recovery of) credit losses	4,557,000	(11,916,000)	12,054,000
Amortization of Deferred Loan Origination Fees, Net	(12,085,000)	(25,185,000)	(21,598,000)
Goodwill, Purchase Accounting Adjustments	(334,000)	(1,519,000)	(2,403,000)
Depreciation	13,819,000	13,267,000	10,814,000
Accretion (Amortization) of Discounts and Premiums, Investments	3,666,000	2,174,000	1,362,000
Payment for Debt Extinguishment or Debt Prepayment Cost	0	0	10,529,000
Deferred Income Tax Expense (Benefit)	611,000	(3,131,000)	(4,525,000)
Gain (Loss) on Sale of Investments	0	0	3,286,000
Gain on equity securities, net	2,955,000	5,011,000	2,182,000
Share-based Payment Arrangement, Noncash Expense	7,199,000	8,021,000	7,272,000
Payments for Loan Originations, Loans to be Sold in Secondary Market	173,880,000	569,080,000	1,026,346,000
Proceeds From Loan Sales	185,361,000	609,377,000	1,031,227,000
Gain (Loss) on Sale of Loans and Leases	495,000
Gains (Losses) on Sales of Other Real Estate	5,611,000	(4,000)	1,207,000
Real Estate Owned, Valuation Allowance, Valuation Increase	(12,039,000)	(64,000)	(105,000)
Gain (Loss) on Sale of Other Loans and Leases	(495,000)	0	0
Bank Owned Life Insurance Income	6,100,000	4,897,000	4,789,000
Amortization Method Qualified Affordable Housing Project Investments, Amortization	7,743,000	7,313,000	7,046,000
Increase (Decrease) in Other Operating Assets and Liabilities, Net [Abstract]
Increase (Decrease) in Other Operating Assets	4,467,000	(12,406,000)	(9,321,000)
Increase (Decrease) in Other Operating Liabilities	(4,814,000)	(7,939,000)	(6,302,000)
Net cash provided by operating activities	134,862,000	157,332,000	111,646,000
Net Cash Provided by (Used in) Investing Activities [Abstract]
Payments for (Proceeds from) Federal Home Loan Bank Stock	(2,216,000)	(8,677,000)	(7,970,000)
Proceeds from Sale of Debt Securities	0	934,000	312,160,000
Proceeds from Sale, Maturity and Collection of Investments [Abstract]
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale	186,123,000	232,197,000	223,728,000
Payments to Acquire Investments [Abstract]
Payments to Acquire Debt Securities, Available-for-sale	317,278,000	953,900,000	354,299,000
Payments to Acquire Available-for-sale Securities, Equity	9,165,000	0	3,567,000
Increase (Decrease) in Equity Securities, FV-NI	(331,000)	(2,597,000)	(2,120,000)
Payments for (Proceeds from) Loans and Leases	271,753,000	(312,187,000)	620,200,000
Proceeds from Sale of Other Loans Held-for-sale	4,345,000	3,718,000	4,400,000
Proceeds from Sale of Other Real Estate	17,684,000	758,000	5,654,000
Proceeds from Life Insurance Policy	9,587,000	5,598,000	1,360,000
Payment to Acquire Life Insurance Policy, Investing Activities	(7,500,000)	0	0
Payments for Affordable Housing Programs	10,352,000	10,814,000	6,596,000
Payments to Acquire Property, Plant, and Equipment	7,937,000	14,093,000	28,632,000
Net cash used in investing activities	(403,699,000)	(412,141,000)	(455,902,000)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Increase (Decrease) in Deposits	(456,922,000)	605,168,000	1,230,073,000
(Increase) decrease in one way sell deposits	787,116,000	(272,952,000)	(710,101,000)
Proceeds from (Repayments of) Short-term Debt	(11,444,000)	(103,444,000)	111,573,000
Proceeds from Issuance of Subordinated Long-term Debt	0	0	172,620,000
Repayments of Long-term Debt	0	32,500,000	170,529,000
Payments Related to Tax Withholding for Share-based Compensation	2,761,000	2,403,000	1,002,000
Payments for Repurchase of Common Stock	0	16,048,000	7,507,000
Payments of Ordinary Dividends	76,604,000	74,306,000	70,353,000
Net cash provided by financing activities	239,385,000	103,515,000	554,774,000
Cash and Cash Equivalents, Period Increase (Decrease), Total	(29,452,000)	(151,294,000)	210,518,000
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	219,180,000	370,474,000	159,956,000
Cash and Cash Equivalents, at Carrying Value, Ending Balance	189,728,000	219,180,000	370,474,000
Supplemental Cash Flow Information [Abstract]
Interest Paid, Excluding Capitalized Interest, Operating Activities	30,818,000	16,704,000	29,157,000
Income Taxes Paid	24,670,000	25,505,000	24,260,000
Noncash Investing and Financing Items [Abstract]
Real Estate Owned, Transfer to Real Estate Owned	13,418,000	150,000	1,790,000
Transfer of Portfolio Loans and Leases to Held-for-sale	3,890,000	3,718,000	4,400,000
Other Significant Noncash Transaction, Value of Consideration Received	7,867,000	1,190,000	7,821,000
Affordable Housing Program Obligation, Period Increase (Decrease)	10,000,000	10,000,000	10,000,000
Transfer to Investments	16,250,000	3,000,000	0
Mortgages [Member]
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]
Gain (Loss) on Sale of Loans and Leases	4,243,000	18,018,000	24,269,000
Consumer Portfolio Segment [Member]
Increase (Decrease) in Other Operating Assets and Liabilities, Net [Abstract]
Increase (Decrease) in Prepaid Expense	$ (9,422,000)	$ (2,415,000)	$ (8,890,000)

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Debt Securities, Available-for-sale, Amortized Cost	$ 1,854,852	$ 1,727,363
Preferred Stock, Shares Authorized	200,000	200,000
Preferred Stock, Shares Issued	0	0
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	17,623,104	17,623,118
Treasury Stock, Shares	1,359,521	1,403,555

XML

Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax	$ (3)	$ 466	$ 247
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax	(233)	7,144	(2,306)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	0	0	(690)
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax	(31,066)	(5,193)	6,844
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax	$ 41	$ 131	$ (65)

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The following is a summary of significant accounting policies followed in the preparation of the consolidated financial statements:

Principles of Consolidation

The consolidated financial statements include the accounts of Park National Corporation and its subsidiaries (“Park”, the “Company” or the “Corporation”), unless the context otherwise requires. Material intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

The COVID-19 pandemic and subsequent economic uncertainty have caused significant, unprecedented disruption around the world that has affected daily living and negatively impacted the global economy. Additionally, geopolitical conflict (including the conflict in Ukraine) and inflationary pressures have added uncertainty to the overall economic environment. The effects of the COVID-19 pandemic, geopolitical conflict, and inflationary pressures may meaningfully impact significant estimates such as the allowance for credit losses, goodwill, and pension plan obligations and related expenses.

Reclassifications

Certain prior year amounts have been reclassified to conform with the current presentation. These reclassifications had no impact on net income or shareholders' equity.

Restrictions on Cash and Due from Banks

As of March 26, 2020, the Federal Reserve Board eliminated reserve requirements for all depository institutions.There were no compensating balance arrangements in existence at December 31, 2022 or 2021.

Investment Securities

Debt securities are classified upon acquisition into one of three categories: HTM, AFS, or trading (see Note 4 - Investment Securities).

HTM securities are those debt securities that the Corporation has the positive intent and ability to hold to maturity and are recorded at amortized cost. AFS debt securities are those debt securities that would be available to be sold in the future in response to the Corporation’s liquidity needs, changes in market interest rates, and asset-liability management strategies, among other reasons. AFS debt securities are reported at fair value, with unrealized holding gains and losses excluded from earnings, but included in other comprehensive (loss) income, net of applicable income taxes. The Corporation did not hold any trading securities during any period presented.

Interest income from debt securities includes amortization of purchase premium or discount. Premiums and discounts on investment securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable debt securities are amortized to their earliest call date. Gains and losses realized on the sale of debt securities are recorded on the trade date and determined using the specific identification method.

A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days past due. Interest accrued but not received for a security placed on nonaccrual status is reversed against interest income.

ACL - Debt Securities AFS

For debt securities AFS in an unrealized loss position, Park first assesses whether it intends to sell, or it is more likely than not that Park will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through net income. For debt securities AFS that do not meet the aforementioned criteria, Park evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be

collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes.

Changes in the ACL are recorded as a provision for (or recovery of) credit loss expense. Losses are charged against the ACL when management believes that uncollectibility of a debt security AFS is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on debt securities AFS totaled $12.4 million and $6.3 million at December 31, 2022 and 2021, respectively, and is excluded from the estimate of credit losses.

ACL - HTM Debt Securities

Management measures expected credit losses on HTM debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Park does not currently hold any HTM debt securities.

Equity Securities

Equity securities, included within "Other investment securities" on the Consolidated Balance Sheets, are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment.

Federal Home Loan Bank and Federal Reserve Bank of Cleveland Stock

PNB is a member of the FHLB and the FRB. Members are required to own a certain amount of stock based on their level of borrowings and other factors and may invest in additional amounts. FHLB stock and FRB stock are classified as restricted securities and are carried at their redemption value within "Other investment securities" on the Consolidated Balance Sheets. Impairment is evaluated based on the ultimate recovery of par value. Both cash and stock dividends are reported as income.

Loans Held for Sale

Park has elected the fair value option for mortgage loans held for sale, which are carried at their fair value as of each balance sheet date.

Mortgage Banking Derivatives

Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives.  The fair value of an interest rate lock is recorded at the time the commitment to fund a mortgage loan is executed and is adjusted for the expected exercise of a commitment before a loan is funded.  In order to hedge against a change in interest rates resulting from the Company's commitments to fund loans, the Company enters into forward commitments for the future delivery of mortgage loans.  The fair value of Park's mortgage banking derivatives is estimated based on the change in mortgage interest rates from the date the interest on a loan is locked. The fair value of these mortgage banking derivatives is included in "Loans" in the Consolidated Balance Sheets. Changes in the fair value of these mortgage banking derivatives are included in "Other service income" in the Consolidated Statements of Income.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Accrued interest receivable totaled $22.3 million and $17.1 million at December 31, 2022 and 2021, respectively, and was reported in "Accrued interest receivable" on the Consolidated Balance Sheets. Late charges on loans are recognized as income when they are collected. Net loan origination fees and costs are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) those commercial loans in the construction real estate loan segment; (4) those commercial loans in the residential real estate loan segment; and (5) leases. Consumer loans include: (1) mortgage and installment loans included in the construction real estate segment; (2) mortgage, home equity lines of credit ("HELOCs"), and installment loans included in the residential real estate segment; and (3) all loans included in the consumer segment.

Generally, commercial loans are placed on nonaccrual status at 90 days past due and consumer and residential mortgage loans are placed on nonaccrual status at 120 days past due. The delinquency status of a loan is based on contractual terms and not on

how recently payments have been received. Park’s charge-off policy for commercial loans requires management to establish a specific reserve or record a charge-off when collection is in doubt and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing a loan. The Company’s charge-off policy for consumer loans is dependent on the class of the loan. Residential mortgage loans, HELOCs, and consumer loans secured by residential real estate are typically charged down to the value of the collateral, less estimated selling costs, at 180 days past due. The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful.

For loans which are on nonaccrual status, it is Park’s policy to reverse interest previously accrued on the loans against interest income. Interest on such loans may be recorded on a cash basis and be included in earnings only when Park expects to receive the entire recorded investment of the respective loans. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below:

Commercial, financial and agricultural: Commercial, financial and agricultural ("C&I") loans are made for a wide variety of general corporate purposes, including financing for commercial and industrial properties, financing for equipment, inventory and accounts receivable, acquisition financing, commercial leasing, and loans originated by consumer finance companies. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. Risk of loss on C&I loans largely depends upon general economic cycles, as they may adversely impact certain industries, competency of the borrower's management team, the quality of the underlying assets supporting the loans including accounts receivable, inventory, and equipment, and the accuracy of the borrower's financial reporting. Such risks are mitigated by generally requiring the borrower's owners to guaranty the loans.

Commercial real estate: Commercial real estate (“CRE”) loans include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate. Risk of loss on CRE loans largely depends upon the cash flow of the properties, which is influenced by the amount of vacancy experienced with respect to underlying real estate, the credit capacity of the tenants occupying the underlying real estate, and general economic trends, as they may adversely impact the value of a property. These risks are mitigated by generally requiring personal guarantees of the owners of the properties and by requiring appraisals pursuant to government regulations.

Construction real estate: The Company defines construction loans as both commercial construction loans and residential construction loans where the loan proceeds are used exclusively for the improvement of real estate. Construction loans may be in the form of a permanent loan or a short-term construction loan, depending on the needs of the individual borrower. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, Park may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, Park may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event that a default on a construction loan occurs and foreclosure follows, Park must take control of the project and attempt to either arrange for completion of construction or dispose of the unfinished project. Additional risks exist with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. Park attempts to reduce such risks on loans to developers by generally requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer.

Residential real estate: The Company defines residential real estate loans as first mortgages on individuals’ primary residences or second mortgages on individuals’ primary residences in the form of HELOCs or installment loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stable employment, an established credit record and a current independent third-party appraisal providing the market value of the real estate securing the loan. Residential real estate loans typically have longer terms and higher balances with lower yields as compared to consumer loans, but generally carry lower risks of default. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires creditors to make a reasonable and good faith determination of a consumer's ability to repay any consumer credit transaction secured by a dwelling. Documentation and verification of income within defined time frames and not-to-exceed limits are bases for affirming ability to repay. Risk of loss largely depends upon factors affecting the borrower's ability to repay as well as the general economic trends as they may adversely impact the value

of the property. These risks are mitigated by completing a comprehensive underwriting of the borrower and by requiring appraisals pursuant to government regulations.

Consumer: The Company originates direct and indirect consumer loans, primarily automobile loans, to customers in the Company's primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stable employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s financial stability, and thus are more likely to be affected by adverse personal circumstances.

Leases: The Company originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment. Repayment terms are structured such that the lease will be repaid within the economic useful life of the leased asset. Risk of losses on financing leases largely depends upon general economic cycles, as they may adversely impact certain industries, competency of the borrower’s management team, the quality and residual value of the leased asset, and the accuracy of the borrower’s financial reporting. These risks are mitigated by underwriting leases considering primary and secondary sources of repayment and requiring guaranteed residual values.

Concentration of Credit Risk

Park's commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in the 26 Ohio counties, four North Carolina counties, four South Carolina counties and one Kentucky county where PNB operates, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies. The primary industries represented by these customers include real estate rental and leasing, finance and insurance, construction, accommodation and food services, health care and social assistance, other services, manufacturing, retail trade, and agriculture, forestry, fishing and hunting.

PCD Loans

The Company has purchased loans, some of which have shown evidence of credit deterioration since origination. Upon adoption of ASC 326, Park elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. Loans are only removed from the existing pools if they are written off, paid off, or sold. Upon adoption of ASC 326, the allowance for credit losses was determined for each pool and added to the pool's carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the pool and the new amortized cost basis is the noncredit premium or discount, which will be amortized into interest income over the remaining life of the pool. Changes to the allowance for credit losses after adoption are recorded through provision for credit losses expense.

ACL - Loans

The ACL is a valuation account that is deducted from the amortized cost of total loans to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Expected recoveries cannot exceed the aggregate of the amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant and available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical credit loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.

ACL - Loans - Collectively Evaluated

The ACL is measured on a collective pool basis when similar risk characteristics exist. Park has identified the following portfolio segments and measures the allowance for credit losses using the following methods:

Portfolio Segment	Measurement Method	Loss Driver
Commercial, financial and agricultural
Commercial, financial and agricultural	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
PPP loans	Other	Not Applicable
Overdrafts	Historical Loss Experience	Not Applicable
Commercial real estate	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Construction real estate:
Commercial	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Retail	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Residential real estate:
Commercial	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
Mortgage	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
HELOC	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
Installment	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
Consumer:
Consumer	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
GFSC	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Check loans	Historical Loss Experience	Not Applicable
Leases	Remaining Life	Not Applicable

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by Park.

In general, Park utilized a DCF method to estimate the quantitative portion of the allowance for credit losses for loans evaluated on a collective pooled basis. For each segment, a LDA was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA utilized Park's own Federal Financial Institutions Examination Council's ("FFIEC") Call Report data for the commercial, financial and agricultural and residential real estate segments. Peer data was incorporated into the analysis for the commercial real estate, construction real estate, and consumer segments.

In creating the DCF model, Park established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average. Park's policy is to utilize its own data, which includes loan-level loss data from 2013 through December 31, 2022, whenever possible. Park and peer FFIEC Call Report data are utilized when there are insufficient defaults for a statistically sound calculation, or if Park does not have its own loan-level detail reflecting similar economic conditions as the forecasted loss drivers.

Key inputs into the DCF model include loan-level detail, including the amortized cost basis of individual loans, payment structure, loss history, and forecasted loss drivers. Park utilizes a third party to provide economic forecasts under various scenarios, which are weighted in order to reflect model risk in the then current economic environment. The weighting of the scenarios is evaluated on a quarterly basis considering the various scenarios in the context of the then current economic environment and presumed risk of loss.

Additional key assumptions in the DCF model include the PD, LGD, and prepayment/curtailment rates. When possible, Park utilizes its own PDs for the reasonable and supportable forecast period. When it is not possible to use Park's own PDs, the LDA is utilized to determine PDs based on the forecasted economic factors. In all cases, the LDA is then utilized to determine the long-term historical average, which is reached over the reversion period. When possible, Park's utilizes its own LGDs for the

reasonable and supportable forecast period. When it is not possible to use Park's own LGDs, the LGD is derived using a method referred to as Frye Jacobs. The Frye Jacobs method is a mathematical formula that traces the relationship between LGD and PD over time and projects the LGD based on the level of PD forecasted. In all cases, the Frye Jacobs method is utilized to calculate LGDs during the reversion period and long-term historical average. Prepayment and curtailment rates were calculated based on Park's own data utilizing a three-year average.

When the discounted cash flow method is used to determine the allowance for credit losses, management incorporates expected prepayments to determine the effective interest rate utilized to discount expected cash flow.

Park reviews various internal and external factors to consider the need for any qualitative adjustments to the quantitative model. Factors considered include the following:

•The nature and volume of Park’s financial assets;

•The existence, growth, and effect of any concentrations of credit;

•The volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets;

•Park’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries;

•The quality of Park's credit review function;

•The experience, ability, and depth of Park’s lending, investment, collection, and other relevant management and staff;

•The effect of other external factors such as the regulatory, legal and technological environments, competition, geopolitical conflict, and events such as natural disasters or pandemics;

•Actual and expected changes in international, national, regional, and local economic and business conditions and developments in the markets in which Park operates that affect the collectibility of financial assets;

•Where the U.S. economy is within a given credit cycle; and

•The extent that there is government assistance (stimulus).

Allowance for Credit Losses - Loans - Individually Evaluated

Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. Park has determined that any commercial loans which have been placed on nonaccrual status or classified as TDRs are to be individually evaluated. Individual analysis establishes a specific reserve for loans in scope.  Specific reserves on individually evaluated commercial loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate.

Allowance for Credit Losses - Off-Balance Sheet Credit Exposures

Park estimates expected credit losses over the contractual period in which Park is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by Park. The allowance for credit losses on off-balance sheet credit exposures is adjusted within "Miscellaneous other expense" on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over the commitments' respective estimated lives. Funding rates are based on a historical analysis of Park's portfolio, while estimates of credit losses are determined using the same loss rates as funded loans.

Troubled Debt Restructurings ("TDRs")

Management classifies loans as TDRs when a borrower is experiencing financial difficulty and Park has granted a concession. 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 under 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, during the COVID-19 pandemic, Park 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 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. A majority of these modifications were 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 were considered current and continued to accrue interest during the deferral period.

Bank Owned Life Insurance

Park has purchased insurance policies on the lives of directors and certain key officers. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over net identifiable tangible and intangible assets acquired in a purchase business combination. Goodwill is not amortized to expense, but is subject to impairment tests annually, or more frequently, if events or changes in circumstances indicate that the asset might be impaired, by assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing these events or circumstances, it is concluded that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the performance of additional analysis is unnecessary. If the carrying amount of the goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess, not to exceed the total goodwill allocated to the reporting unit.

Other intangible assets consist of core deposit intangibles. Core deposit intangibles are amortized on an accelerated basis over a period of ten years. 

Premises and Equipment

Land is carried at cost and is not subject to depreciation. Premises and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the remaining lease period or the estimated useful lives of the improvements. Upon the sale or other disposal of an asset, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are charged to expense as incurred while renewals and improvements that extend the useful life of an asset are capitalized. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.

The range of depreciable lives over which premises and equipment are being depreciated are:

 

Buildings	30 Years
Building improvements	5 to 10 Years
Equipment, furniture and fixtures	3 to 12 Years
Software	3 Years or the contractual useful life of the software
Leasehold improvements	Shorter of the remaining lease period or the estimated useful life of the improvement

Other Real Estate Owned

Management transfers a loan to OREO at the time that Park takes deed/title to the asset. OREO is initially recorded at fair value less anticipated selling costs (net realizable value), establishing a new cost basis, and consists of property acquired through foreclosure and real estate held for sale. If the net realizable value is below the carrying value of the loan at the date of transfer, the difference is charged to the allowance for credit losses. If the net realizable value is above the carrying value of the loan at the date of transfer, any charged-off amounts are recovered and any additional amount is recorded within the line item "OREO valuation markup." These assets are subsequently accounted for at the lower of cost or fair value less costs to sell. Subsequent changes in the value of real estate are classified as OREO valuation adjustments, are reported as adjustments to the carrying amount of OREO, and recorded within the line item “Miscellaneous income". In certain circumstances where management believes the devaluation may not be permanent in nature, Park utilizes a valuation allowance to record OREO devaluations, which is expensed through the line item “Miscellaneous income". Costs relating to development and improvement of such properties are capitalized (not in excess of fair value less estimated costs to sell), and costs relating to holding the properties are charged to the line item "Miscellaneous expense".

Foreclosed Assets

Foreclosed assets include non-real estate assets where Park, as creditor, has received physical possession of a borrower’s assets, regardless of whether formal foreclosure proceedings take place.  Additionally, TDRs in which Park obtains one of more of the debtor’s non-real estate assets in place of all or part of the receivable are accounted for as foreclosed assets.  Foreclosed assets are initially recorded as fair value less costs to sell when acquired, establishing a new cost basis.  Operating costs after acquisition are expensed as incurred. As of December 31, 2022 and 2021, Park had $605,000 and $3.3 million, respectively, of foreclosed assets included within “Other assets.”

Mortgage Servicing Rights

When Park sells mortgage loans with servicing retained, MSRs are recorded at fair value with the income statement effect recorded in "Other service income". Capitalized MSRs are amortized in proportion to and over the period of the estimated future servicing income of the underlying loan and are included within “Other service income”.

MSRs are assessed for impairment quarterly, based on fair value, with any impairment recognized through a valuation allowance. The fair value of MSRs is determined by discounting estimated future cash flows from the servicing assets, using market discount rates and expected future prepayment rates. In order to calculate fair value, the sold loan portfolio is stratified into homogeneous pools of like categories. (See Note 12 - Loan Servicing.)

Fees received for servicing mortgage loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in income as loan payments are received. The amortization of MSRs is netted against loan servicing fee income and recorded in "Other service income". 

Leases

Management determines if an arrangement is or contains a lease at contract inception. If an arrangement is determined to be or contain a lease, Park recognizes a ROU asset and a lease liability at the lease commencement date. Leases are classified as operating or finance leases at the lease commencement date. At December 31, 2022 and 2021, all of Park's leases were classified as operating leases.

Park elected the practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease components. Additionally, Park has elected not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. Park recognizes the lease payments associated with its short-term leases as an expense on a cash basis.

Park’s lease liability is initially and subsequently measured as the present value of the unpaid lease payments at the lease commencement date. Key estimates and judgments related to the lease liability include how management determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) the lease term, and (3) lease payments.

•ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, Park's management cannot determine the interest rate implicit in a lease because it does not have access to the lessor’s estimated residual value or the amount of the lessor’s deferred initial direct costs. Therefore, Park utilizes its incremental borrowing rate as the discount rate for leases. Park’s incremental borrowing rate for a lease is the rate of interest Park would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. To manage its capital and liquidity needs, Park periodically obtains wholesale funding from the FHLB on an over-collateralized basis. The impact of utilizing an interest rate on an over-collateralized borrowing versus a fully collateralized borrowing is not material. Therefore, the FHLB yield curve was selected by Park's management as a baseline to determine Park’s discount rates for leases.

•The lease term for all of Park's leases includes the noncancellable period of the lease plus any additional periods covered by either Park's option to extend (or not to terminate) the lease that Park is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. If a lease contract contains multiple renewal options, Park's management generally models lease cash flows through the first renewal option period unless the contract contains economic incentives or other conditions that increase or decrease the likelihood that additional renewals are reasonably certain to be exercised.

•Lease payments included in the measurement of the lease liability are comprised of the following:

◦Fixed payments, including in-substance fixed payments, owed over the lease term;

◦For certain of Park's gross real estate leases, non-lease components such as real estate taxes, insurance, and common area maintenance; and

◦Variable lease payments that depend on an index or rate, initially measured using the index or rate at the lease commencement date.

The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Consolidated Statements of Cash Flows

Cash and cash equivalents include cash and cash items, amounts due from banks, and money market instruments. Generally, money market instruments are purchased and sold for one-day periods.

Loss Contingencies

Park is routinely engaged in various litigation and other legal matters. These include defending against claims of improper loan, deposit account, and other banking practices, as well as trust and investment, intellectual property, contract, and other legal matters, and Park has a number of unresolved lawsuits and open matters pending resolution. In addition, Park is party to litigation involving the collection of delinquent accounts, challenges to security interests in collateral, foreclosure lawsuits, and similar matters which are part of, or incidental to, the ordinary course of business. While the ultimate liability with respect to these matters and claims cannot be determined at this time, management believes that losses, damages, or liabilities, if any, and other amounts relating to pending matters are not likely to be material to Park's consolidated financial position or results of operations. Reserves are established for these various litigation and other legal matters, when appropriate under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel.

Income Taxes

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The benefit recognized for a tax position that meets the “more-likely-than-not” criteria is measured based on the largest benefit that is more than 50 percent likely to be realized, taking into consideration the amounts and probabilities of the outcome upon settlement. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. Park recognizes any interest and penalties related to income tax matters in income tax expense.

Treasury Shares

The purchase of Park’s common shares to be held in treasury is recorded at cost. At the date of retirement or subsequent reissuance, the treasury shares account is reduced by the weighted average cost of the common shares retired or reissued.

Dividend Restriction

Banking regulations require the maintenance of certain capital levels and may limit the dividends paid by a bank to its parent holding company or by the parent holding company to its shareholders.  (See Note 25 - Dividend Restrictions and Note 28 - Capital Ratios.)

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on debt securities available for sale, changes in the funded status of the Company’s defined benefit pension plan and unrealized gains and losses on cash flow hedges which are also recognized as separate components of equity.

Share-Based Compensation

Compensation cost is recognized for restricted stock units and stock awards issued to employees and directors, respectively, based on the fair value of these awards at the date of grant. The market price of Park’s common shares at the date of grant is used to estimate the fair value of restricted stock units and stock awards. Compensation cost is recognized on a straight-line basis over the required service period, generally defined as the vesting period and is recorded in "Salaries" expense. (See Note 20 - Share-Based Compensation.) The Company's accounting policy is to recognize forfeitures as they occur.

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 27 - Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding

interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Derivatives

At the inception of a derivative contract, Park designates the derivative as one of three types based on Park's intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). Park does not have any fair value hedges. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into net income in the same periods during which the hedged transaction affects net income. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in net income, as non-interest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the Consolidated Statements of Cash Flow under the same item as the cash flows of the items being hedged.

Park formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking the hedge transaction at the inception of the hedging relationship. The documentation includes linking cash flow hedges to specific assets and liabilities on the Consolidated Balance Sheets. Park also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used are highly effective in offsetting changes in cash flows of the hedged items. Park discontinues hedge accounting when it determines that a derivative is no longer effective in offsetting cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into net income over the same periods that the hedged transactions will affect earnings.

The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the outstanding contracts. All the contracts to which the Company is party settle monthly or quarterly.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain the transferee from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Retirement Plans

Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. The service cost component of pension expense is recorded within "Employee benefits" on the Consolidated Statements of Income. All other components of pension expense are recorded within "Other components of net periodic benefit income" on the Consolidated Statements of Income. Employee KSOP plan expense is the amount of matching contributions to Park's Employees Stock Ownership Plan. Deferred compensation and supplemental retirement plan expense allocate the benefits over years of service. (See Note 21 - Benefit Plans.)

Earnings Per Common Share

Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under restricted stock unit awards. (See Note 20 - Share-Based Compensation and Note 24 - Earnings Per Common Share.)

Operating Segments

The Corporation is a financial holding company headquartered in Newark, Ohio. The reportable segment for the Corporation is its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio).

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Adoption of New Accounting Pronouncements and Issued Not Yet Effective Accounting Standards

12 Months Ended

Dec. 31, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Adoption of New Accounting Pronouncements and Issued But Not Yet Effective Accounting Standards

The following is a summary of new accounting pronouncements impacting Park's consolidated financial statements, and accounting standards that have been issued but were not effective for Park as of December 31, 2022:

Adoption of New Accounting Pronouncements

ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments: Effective January 1, 2021, Park adopted ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") ("ASC 326"), as amended. The accounting guidance in ASU 2016-13 replaces the incurred loss methodology with an expected loss methodology, which is referred to as the current expected credit loss ("CECL") methodology. The CECL methodology is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, HTM debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments), and net investments in leases recognized by a lessor. The CECL methodology requires an entity to estimate credit losses over the life of an asset or off-balance sheet credit exposure.

Park adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning on and after January 1, 2021 are presented under ASC 326, while prior period amounts continue to be reported in accordance with the then applicable U.S. GAAP. Park recorded a net decrease to retained earnings of $8.0 million as of January 1, 2021 for the cumulative effect of adopting ASC 326.

Park adopted ASC 326 using the prospective transition approach for financial assets PCD that were previously classified as PCI and accounted for under ASC 310-30. In accordance with ASC 326, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2021, the amortized cost basis of the PCD assets was adjusted to reflect the addition of $52,000 to the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2021.

As permitted by ASC 326, Park elected to maintain pools of loans accounted for under ASC 310-30. In accordance with ASC 326, management did not reassess whether modifications to individual acquired financial assets accounted for in pools were TDRs as of the date of adoption.

The following table illustrates the impact of ASC 326:

	January 1, 2021
(In thousands)	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
Assets:
Loans	$	7,177,666	$	7,177,785	$	(119)
ACL on loans
Commercial, financial and agricultural	17,351		25,608		(8,257)
Commercial real estate	25,599		23,480		2,119
Construction real estate	5,390		7,288		(1,898)
Residential real estate	14,484		11,363		3,121
Consumer	28,343		17,418		10,925
Leases	598		518		80
Total ACL on loans	$	91,765	$	85,675	$	6,090
Liabilities:
ACL on off-balance sheet commitments	$	3,982	$	116	$	3,866
Net deferred tax liability	777		2,892		(2,115)
Shareholders' equity:	$	1,032,300	$	1,040,256	$	(7,956)

ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effect of Reference Rate Reform on Financial Reporting: In March 2020, the FASB issued ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effect of Reference Rate Reform on Financial Reporting. The amendments in this ASU provide optional expedients and exceptions to applying GAAP to contracts, hedging relationships and other transactions impacted by reference rate reform if certain criteria are met. The amendments in this ASU were officially effective as of March 12, 2020 through December 31, 2022 but were extended by ASU 2022-06 as described below. The adoption of this guidance did not have a material impact on Park's consolidated financial statements, but Park will consider this guidance as contracts are transitioned from LIBOR to another reference rate.

Staff Accounting Bulletin ("SAB") No. 121: In March 2022, the SEC issued SAB No. 121. This SAB adds interpretive guidance for entities to consider when they have obligations to safeguard crypto-assets held for their platform users. Specifically, this SAB provides interpretive guidance on the accounting and disclosure of obligations to safeguard crypto-assets held for platform users. This guidance was applicable no later than the financial statement covering the first interim or annual period ending after June 15, 2022. Management reviewed its business activities as of the date of adoption, June 30, 2022, and determined that SAB 121 was not materially impactful to the consolidated financial statements. Management has continued to monitor the impact of the guidance on a quarterly basis and determined that SAB 121 was not materially impactful to the financial statements at December 31, 2022.

ASU 2022-06 - Reference Rate Reform (Topic 848) Deferral of the Sunset Date of Topic 848: In December 2022, the FASB issued ASU 2022-06 - Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. ASU 2022-06 was issued to extend the period of time preparers can use the reference rate reform relief guidance under the ASC Topic 848 from December 31, 2022 to December 31, 2024. The FASB had previously included a sunset provision within Topic 848 based on expectations of when the LIBOR would cease being published. At the time that ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effect of Reference Rate Reform on Financial Reporting was issued, the UK Financial Conduct Authority had established the intent that it would no longer be necessary for banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022, 12 months after the expected cessation date of all currencies and tenors of LIBOR. In March 2021, the UK Financial Conduct Authority announced that the intended cessation date of LIBOR would be June 30, 2023, which is beyond the current sunset date of Topic 848. The amendments of ASU

2022-06 were effective immediately. The adoption of this guidance did not have a material impact on Park's consolidated financial statements, but Park will consider this guidance as contracts are transitioned from LIBOR to another reference rate.

Issued But Not Yet Effective Accounting Standards

ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures: In March 2022, FASB issued ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructuring and Vintage Disclosures. ASU 2022-02 eliminates the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the amendments in this ASU require that public business entities disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost.

For entities, like Park, that have adopted the amendments in ASU 2016-13, the amendments in ASU 2022-02 are effective for fiscal years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. An entity may elect to adopt the loan modification guidance and related disclosure enhancements separately from the amendments related to vintage disclosures. The amendments in ASU 2022-02 are to be applied prospectively, except for the amendments related to the recognition and measurement of TDRs which may be applied prospectively, or using a modified retrospective transition method. The adoption by Park of ASU 2022-02 on January 1, 2023 is not expected to have a material impact on the consolidated financial statements but will impact future disclosure requirements and reduce individually evaluated loan totals.

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Organization

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization

Park National Corporation is a financial holding company headquartered in Newark, Ohio. Through PNB, Park is engaged in a general commercial banking and trust business, primarily in Ohio, Kentucky, North Carolina, and South Carolina, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies. PNB is headquartered in Newark, Ohio. A wholly-owned subsidiary of Park, GFSC is a consumer finance company located in Central Ohio.

Through February 16, 2012, Park operated a second banking subsidiary, Vision Bank ("Vision"), which was engaged in a general commercial banking business, primarily in Baldwin County, Alabama and the panhandle of Florida. Promptly following the sale of the Vision business to Centennial Bank (a wholly-owned subsidiary of Home BancShares, Inc.), Vision surrendered its Florida banking charter to the Florida Office of Financial Regulation and became a non-bank Florida corporation. Vision (the Florida corporation) merged with and into a wholly-owned, non-bank subsidiary of Park, SEPH, with SEPH being the surviving entity. SEPH holds the remaining assets and liabilities retained by Vision subsequent to the sale to Centennial Bank. SEPH also holds OREO that had previously been transferred to SEPH from Vision. SEPH's assets consist primarily of nonperforming loans and OREO. This non-bank subsidiary represents a run off portfolio of the legacy Vision assets.

PNB provides the following principal services: the acceptance of deposits for demand, savings and time accounts; commercial, industrial, consumer and real estate lending, including installment loans, credit cards (which are largely offered through a third party), home equity lines of credit and commercial leasing; trust and wealth management services; cash management; safe deposit operations; electronic funds transfers; and a variety of additional banking-related services. See Note 29 - Segment Information for financial information on the Corporation’s operating segments.

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Investment Securities

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments Securities

Investment Securities

"Debt securities" and "Other investment securities" are summarized below.

Debt Securities

The following table summarizes the amortized cost and fair value of debt securities at December 31, 2022 and December 31, 2021 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive (loss) income.

 

(In thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
2022:
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities	$	39,000	$	—	$	1,787	$	37,213
Obligations of states and political subdivisions	423,285		1,620		18,194		406,711
U.S. Government sponsored entities’ asset-backed securities	839,399		—		82,638		756,761
Collateralized loan obligations	535,518		—		18,979		516,539
Corporate debt securities	17,650		—		1,178		16,472
Total	$	1,854,852	$	1,620	$	122,776	$	1,733,696

(In thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
2021:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions	$	366,933	$	22,682	$	24	$	389,591
U.S. Government sponsored entities’ asset-backed securities	849,114		13,437		8,088		854,463
Collateralized loan obligations	500,066		3		1,395		498,674
Corporate debt securities	11,250		169		7		11,412
Total	$	1,727,363	$	36,291	$	9,514	$	1,754,140

All debt securities were classified as AFS at December 31, 2022 and December 31, 2021.

The following table provides detail on investment securities in an unrealized loss position for which an allowance for credit losses had not been recorded at December 31, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position:

 

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2022:
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities	$	37,213	$	1,787	$	—	$	—	$	37,213	$	1,787
Obligations of states and political subdivisions	270,905		18,194		—		—		270,905		18,194
U.S. Government sponsored entities’ asset-backed securities	446,423		27,507		310,338		55,131		756,761		82,638
Collateralized loan obligations	415,491		15,446		101,048		3,533		516,539		18,979
Corporate debt securities	7,388		862		1,684		316		9,072		1,178
Total	$	1,177,420	$	63,796	$	413,070	$	58,980	$	1,590,490	$	122,776

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2021:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions	$	1,834	$	24	$	—	$	—	$	1,834	$	24
U.S. Government sponsored entities’ asset-backed securities	333,653		4,996		73,431		3,092		407,084		8,088
Collateralized loan obligations	429,671		1,395		—		—		429,671		1,395
Corporate debt securities	2,243		7		—		—		2,243		7
Total	$	767,401	$	6,422	$	73,431	$	3,092	$	840,832	$	9,514

At December 31, 2022, Park’s debt security portfolio consisted of $1.7 billion of securities, $1.6 billion of which were in an unrealized loss position with unrealized losses of $122.8 million. Of the $1.6 billion of securities in an unrealized loss position, $413.1 million were in an unrealized loss position for 12 months or longer. Of the $122.8 million in unrealized losses, an aggregate of $84.4 million were related to Park's "Obligations of U.S. Government sponsored entities" portfolio and Park's "U.S. Government sponsored entities' asset-backed securities" portfolio. For non-agency debt securities, Park verified that the current credit ratings remain above investment grade. Management periodically reviews the credit profile of each non-agency debt security and assesses whether any impairment to the contractually obligated cash flow is likely to occur. Based on these reviews, management has concluded that the underlying creditworthiness for each security remains sufficient to maintain required payment obligations and, therefore, unrealized losses have not been recognized into net income. Management does not intend to sell, and it is not more likely than not that management would be required to sell, the securities prior to their anticipated recovery in respect of the unrealized losses. Management believes the value will recover as the securities approach maturity or market rates change.

There was no allowance for credit losses recorded for debt securities AFS at December 31, 2022 and December 31, 2021. Additionally, for the years ended December 31, 2022, 2021, and 2020, there were no credit-related investment impairment losses recognized.

The amortized cost and estimated fair value of investments in debt securities at December 31, 2022, are shown in the following table by contractual maturity, except for asset-backed securities and collateralized loan obligations, which are shown as a single total, due to the unpredictability of the timing in principal repayments. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

(In thousands)	Amortized Cost		Fair Value		Tax Equivalent Yield (1)
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities
Due one through five years	$	39,000	$	37,213	2.37	%
Obligations of states and political subdivisions
Due one through five years	$	2,289	$	2,278	2.97	%
Due five through ten years	271,564		271,658		3.68	%
Due greater than ten years	149,432		132,775		3.15	%
Total	$	423,285	$	406,711	3.49	%
U.S. Government sponsored entities’ asset-backed securities	$	839,399	$	756,761	1.91	%
Collateralized loan obligations	$	535,518	$	516,539	6.30	%
Corporate debt securities
Due five through ten years	$	17,650	$	16,472	3.89	%

(1) The tax equivalent yield for obligations of states and political subdivisions includes the effects of a taxable equivalent adjustment using a 21% federal corporate income tax rate.

At December 31, 2022, investment securities with an amortized cost of $452.2 million were pledged for government and public fund deposits, $353.0 million were pledged to secure repurchase agreements and $7.2 million were pledged as collateral for FHLB advance borrowings. At December 31, 2021, investment securities with an amortized cost of $396.3 million were pledged for government and public fund deposits, $327.9 million were pledged to secure repurchase agreements and $9.5 million were pledged as collateral for FHLB advance borrowings.

At December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

There were no sales of AFS debt securities during 2022 and 2021. During 2020, Park sold certain AFS debt securities with a book value of $112.5 million at a gross loss of $64,000 and sold certain AFS debt securities with a book value of $196.4 million at a gross gain of $3.4 million.

Other Investment Securities

Other investment securities (as shown on the Consolidated Balance Sheets) consist of restricted stock investments in the FHLB and the FRB, and equity securities. The FHLB and FRB restricted stock investments are carried at their redemption value. Equity securities with a readily determinable fair value are carried at fair value. Equity securities without a readily determinable fair value are recorded at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions ("modified cost"). Park's portfolio of equity investments in limited partnerships which provide mezzanine funding ("Partnership Investments") are valued using the net asset value practical expedient in accordance with ASC 820.

The carrying amount of other investment securities at December 31, 2022 and 2021 was as follows:

(In thousands)	December 31, 2022		December 31, 2021
FHLB stock	$	11,197	$	13,413
FRB stock	14,653		14,653
Equity investments carried at fair value	1,859		2,129
Equity investments carried at modified cost (1)	14,725		4,689
Equity investments carried at net asset value	44,657		26,384
Total other investment securities	$	87,091	$	61,268

(1) There have been no impairments or downward adjustments made to equity investments carried at modified cost. An upward adjustment of $871,000 was recorded during the year ended December 31, 2022 as a result of observable price changes. There were no adjustments recorded during the year ended December 31, 2021 as a result of observable price changes.

During the year ended December 31, 2022, the FHLB repurchased 22,160 shares of FHLB stock with a book value of $2.2 million. During the year ended December 31, 2021, the FHLB repurchased 86,770 shares of FHLB stock with a book value of $8.7 million. During the year ended December 31, 2020, the FHLB repurchased 79,697 shares of FHLB stock with a book value of $8.0 million. No shares of FRB stock were purchased or sold in any of the years ended December 31, 2022, 2021, or 2020.

For the years ended December 31, 2022, 2021 and 2020, $601,000, $552,000 and $(239,000), respectively, of gains (losses) on equity investments carried at fair value were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.

For the years ended December 31, 2022, 2021 and 2020, $2.4 million, $4.5 million and $2.4 million, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.

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Loans

12 Months Ended

Dec. 31, 2022

Loans and Leases Receivable Disclosure [Abstract]

Loans

Loans

The composition of the loan portfolio at December 31, 2022 and December 31, 2021 was as follows:

 

	December 31, 2022		December 31, 2021
(In thousands)	Amortized Cost		Amortized Cost
Commercial, financial and agricultural: (1)
Commercial, financial and agricultural (1)	$	1,295,238	$	1,223,079
PPP loans	4,206		74,420
Overdrafts	1,489		1,127
Commercial real estate (1)	1,794,054		1,801,792
Construction real estate:
Commercial	208,982		214,561
Retail	116,433		107,225
Residential real estate:
Commercial	550,183		533,802
Mortgage	1,075,446		1,033,658
HELOC	167,151		165,605
Installment	4,091		5,642
Consumer:
Consumer	1,902,557		1,685,793
GFSC	274		1,793
Check loans	2,150		2,093
Leases	19,637		20,532
Total	$	7,141,891	$	6,871,122
Allowance for credit losses	(85,379)		(83,197)
Net loans	$	7,056,512	$	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 years ended December 31, 2022, December 31, 2021, and December 31, 2020, $3.0 million, $16.3 million, and $13.7 million, respectively, of PPP fee income was recognized within loan interest income.

Loans are shown net of deferred origination fees, costs and unearned income of $18.2 million at December 31, 2022, and of $19.5 million at December 31, 2021, which represented a net deferred income position in both years. At December 31, 2022 and December 31, 2021, included in the net deferred origination fees, costs and unearned income were $68,000 and $2.8 million, respectively, in net origination fees related to PPP loans. At December 31, 2022 and December 31, 2021, loans included purchase accounting adjustments of $2.5 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 $1.5 million and $1.1 million were reclassified to loans at December 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 December 31, 2022 and December 31, 2021:

 

	December 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	$	38,158	$	3,261	$	—	$	41,419
PPP loans	—		—		389		389
Overdrafts	—		—		—		—
Commercial real estate	24,504		7,919		—		32,423
Construction real estate:
Commercial	1,712		—		—		1,712
Retail	1,254		12		—		1,266
Residential real estate:
Commercial	1,894		298		—		2,192
Mortgage	9,260		6,750		182		16,192
HELOC	1,133		187		7		1,327
Installment	51		1,037		—		1,088
Consumer:
Consumer	1,012		670		703		2,385
GFSC	10		—		—		10
Check loans	—		—		—		—
Leases	708		—		—		708
Total loans	$	79,696	$	20,134	$	1,281	$	101,111

	December 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	$	13,271	$	9,396	$	—	$	22,667
PPP loans	—		—		793		793
Overdrafts	—		—		—		—
Commercial real estate	40,142		7,713		—		47,855
Construction real estate:
Commercial	52		169		—		221
Mortgage	716		9		—		725
Residential real estate:
Commercial	2,366		240		—		2,606
Mortgage	11,718		7,779		372		19,869
HELOC	1,590		803		—		2,393
Installment	82		1,508		—		1,590
Consumer
Consumer	1,518		700		431		2,649
GFSC	79		6		11		96
Check loans	—		—		—		—
Leases	1,188		—		—		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 December 31, 2022 and December 31, 2021:

	December 31, 2022
(In thousands)	Nonaccrual Loans With No ACL		Nonaccrual Loans With an ACL		Related ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	28,291	$	9,867	$	3,440
PPP loans	—		—		—
Overdrafts	—		—		—
Commercial real estate	22,965		1,539		130
Construction real estate:
Commercial	1,712		—		—
Retail	—		1,254		19
Residential real estate:
Commercial	1,894		—		—
Mortgage	—		9,260		85
HELOC	—		1,133		191
Installment	—		51		17
Consumer
Consumer	—		1,012		283
GFSC	—		10		1
Check loans	—		—		—
Leases	680		28		9
Total loans	$	55,542	$	24,154	$	4,175

	December 31, 2021
(In thousands)	Nonaccrual Loans With No ACL		Nonaccrual Loans With an ACL		Related ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	11,494	$	1,777	$	1,343
PPP loans	—		—		—
Overdrafts	—		—		—
Commercial real estate	39,151		991		188
Construction real estate:
Commercial	52		—		—
Retail	—		716		67
Residential real estate:
Commercial	2,366		—		—
Mortgage	—		11,718		73
HELOC	—		1,590		99
Installment	—		82		24
Consumer
Consumer	—		1,518		393
GFSC	—		79		10
Check loans	—		—		—
Leases	914		274		43
Total loans	$	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 December 31, 2022 and December 31, 2021:

	December 31, 2022
(In thousands)	Real Estate		Business Assets		Other		Total
Commercial, financial and agricultural
Commercial, financial and agricultural	$	8,242	$	7,788	$	23,125	$	39,155
Commercial real estate	35,908		28		—		35,936
Construction real estate:
Commercial	2,372		—		—		2,372
Residential real estate:
Commercial	2,479		—		—		2,479
Mortgage	90		—		—		90
Leases	—		708		—		708
Total loans	$	49,091	$	8,524	$	23,125	$	80,740

	December 31, 2021
(In thousands)	Real Estate		Business Assets		Other		Total
Commercial, financial and agricultural
Commercial, financial and agricultural	$	9,321	$	13,366	$	156	$	22,843
Commercial real estate	52,901		37		—		52,938
Construction real estate:
Commercial	1,178		—		—		1,178
Residential real estate:
Commercial	2,906		—		57		2,963
Mortgage	370		—		—		370
HELOC	148		—		—		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. The following table presents interest income recognized on nonaccrual loans for the years ended December 31, 2022 and 2021:

	Interest Income Recognized
(In thousands)	December 31, 2022		December 31, 2021
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	438	$	180
PPP loans	—		—
Overdrafts	—		—
Commercial real estate	956		1,844
Construction real estate:
Commercial	32		39
Retail	13		4
Residential real estate:
Commercial	88		204
Mortgage	157		301
HELOC	16		17
Installment	3		2
Consumer:
Consumer	54		92
GFSC	5		14
Check loans
Leases	33		73
Total loans	$	1,795	$	2,770

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 year ended December 31, 2020:

	December 31, 2020
(In thousands)	Recorded Investment		Average Recorded Investment		Interest Income Recognized
Commercial, financial and agricultural	$	28,836	$	30,280	$	735
Commercial real estate	70,357		55,279		1,890
Construction real estate:
Commercial	3,110		1,291		50
Residential real estate:
Commercial	4,557		4,329		204
Consumer	—		—		—
Leases	1,595		1,115		—
Total	$	108,455	$	92,294	$	2,879

The following tables present the aging of the amortized cost in past due loans at December 31, 2022 and December 31, 2021 by class of loan:

	December 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	$	378	$	9,246	$	9,624	$	1,285,614	$	1,295,238
PPP loans	155		389		544		3,662		4,206
Overdrafts	—		—		—		1,489		1,489
Commercial real estate	737		4,738		5,475		1,788,579		1,794,054
Construction real estate:
Commercial	751		—		751		208,231		208,982
Retail	1,035		523		1,558		114,875		116,433
Residential real estate:
Commercial	519		477		996		549,187		550,183
Mortgage	7,630		5,157		12,787		1,062,659		1,075,446
HELOC	832		587		1,419		165,732		167,151
Installment	57		4		61		4,030		4,091
Consumer:
Consumer	5,451		964		6,415		1,896,142		1,902,557
GFSC	48		—		48		226		274
Check loans	2		—		2		2,148		2,150
Leases	—		—		—		19,637		19,637
Total loans	$	17,595	$	22,085	$	39,680	$	7,102,211	$	7,141,891

(1) Includes an aggregate of $1.3 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.

(2) Includes an aggregate of $58.9 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 loans	242		793		1,035		73,385		74,420
Overdrafts	—		—		—		1,127		1,127
Commercial real estate	65		1,461		1,526		1,800,266		1,801,792
Construction real estate:
Commercial	—		—		—		214,561		214,561
Mortgage	346		660		1,006		106,219		107,225
Residential real estate:
Commercial	283		438		721		533,081		533,802
Mortgage	6,170		5,933		12,103		1,021,555		1,033,658
HELOC	565		1,011		1,576		164,029		165,605
Installment	49		31		80		5,562		5,642
Consumer
Consumer	2,614		618		3,232		1,682,561		1,685,793
GFSC	153		52		205		1,588		1,793
Check loans	10		—		10		2,083		2,093
Leases	60		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 December 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 an 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 loan is deemed impaired, 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 December 31, 2022 and December 31, 2021 were as follows:

December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass	$	197,497	$	198,999	$	142,487	$	60,845	$	32,887	$	47,135	$	546,237	$	1,226,087
Special Mention	700		313		918		315		4		35		25,536		27,821
Substandard	1,101		18		2,737		226		1,836		8,424		26,464		40,806
Doubtful	—		—		3		77		80		172		192		524
Total	$	199,298	$	199,330	$	146,145	$	61,463	$	34,807	$	55,766	$	598,429	$	1,295,238

Commercial, financial and agricultural: PPP
Risk rating
Pass	$	—	$	1,875	$	2,331	$	—	$	—	$	—	$	—	$	4,206
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	$	—	$	1,875	$	2,331	$	—	$	—	$	—	$	—	$	4,206

Commercial real estate (1)
Risk rating
Pass	$	323,235	$	374,763	$	372,653	$	220,072	$	107,467	$	305,539	$	14,052	$	1,717,781
Special Mention	199		3,256		3,388		5,863		16,059		22,220		150		51,135
Substandard	7,856		1,427		3,007		3,561		856		5,471		428		22,606
Doubtful	—		—		—		—		1,941		591		—		2,532
Total	$	331,290	$	379,446	$	379,048	$	229,496	$	126,323	$	333,821	$	14,630	$	1,794,054

Construction real estate: Commercial
Risk rating
Pass	$	107,976	$	40,534	$	21,556	$	2,686	$	1,428	$	3,015	$	29,183	$	206,378
Special Mention	—		—		232		—		—		—		—		232
Substandard	652		800		260		—		660		—		—		2,372
Doubtful	—		—		—		—		—		—		—		—
Total	$	108,628	$	41,334	$	22,048	$	2,686	$	2,088	$	3,015	$	29,183	$	208,982

Residential Real Estate: Commercial
Risk rating
Pass	$	107,086	$	120,303	$	147,802	$	56,980	$	33,140	$	63,499	$	15,191	$	544,001
Special Mention	—		92		1,477		440		—		1,625		—		3,634
Substandard	610		449		264		29		304		553		339		2,548
Doubtful	—		—		—		—		—		—		—		—
Total	$	107,696	$	120,844	$	149,543	$	57,449	$	33,444	$	65,677	$	15,530	$	550,183

Leases
Risk rating
Pass	$	7,629	$	3,310	$	3,347	$	1,167	$	981	$	605	$	—	$	17,039
Special Mention	1,085		614		130		60		—		—		—		1,889
Substandard	—		—		464		111		12		26		—		613
Doubtful	—		—		—		96		—		—		—		96
Total	$	8,714	$	3,924	$	3,941	$	1,434	$	993	$	631	$	—	$	19,637

December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Total Commercial Loans
Risk rating
Pass	$	743,423	$	739,784	$	690,176	$	341,750	$	175,903	$	419,793	$	604,663	$	3,715,492
Special Mention	1,984		4,275		6,145		6,678		16,063		23,880		25,686		84,711
Substandard	10,219		2,694		6,732		3,927		3,668		14,474		27,231		68,945
Doubtful	—		—		3		173		2,021		763		192		3,152
Total	$	755,626	$	746,753	$	703,056	$	352,528	$	197,655	$	458,910	$	657,772	$	3,872,300

(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, 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	$	267,016	$	208,078	$	100,736	$	52,705	$	36,528	$	59,909	$	468,749	$	1,193,721
Special Mention	1,608		1,592		429		59		277		—		11,986		15,951
Substandard	106		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 Mention	786		6,206		32,965		9,354		4,297		17,829		996		72,433
Substandard	3,897		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

Construction real estate: Commercial
Risk rating
Pass	$	96,929	$	76,867	$	7,003	$	4,841	$	1,856	$	3,412	$	22,444	$	213,352
Special Mention	202		—		—		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 Mention	95		884		106		79		—		497		135		1,796
Substandard	735		22		691		41		95		993		29		2,606
Doubtful	56		—		—		—		—		—		—		56
Total	$	139,687	$	166,108	$	68,718	$	45,016	$	26,678	$	71,924	$	15,671	$	533,802

December 31, 2021	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Leases
Risk rating
Pass	$	6,705	$	5,729	$	2,628	$	2,151	$	705	$	845	$	—	$	18,763
Special Mention	198		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 Mention	2,889		8,793		33,684		10,250		4,595		18,326		13,117		91,654
Substandard	4,738		4,256		2,477		13,046		6,630		23,430		963		55,540
Doubtful	56		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

(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.

December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial, financial and agricultural: Overdrafts
Performing	$	1,489	$	—	$	—	$	—	$	—	$	—	$	—	$	1,489
Nonperforming	—		—		—		—		—		—		—		—
Total	$	1,489	$	—	$	—	$	—	$	—	$	—	$	—	$	1,489

Construction Real Estate: Retail
Performing	$	71,923	$	26,134	$	8,218	$	4,619	$	1,618	$	2,580	$	75	$	115,167
Nonperforming	731		—		523		—		—		12		—		1,266
Total	$	72,654	$	26,134	$	8,741	$	4,619	$	1,618	$	2,592	$	75	$	116,433

Residential Real Estate: Mortgage
Performing	$	207,093	$	227,131	$	192,904	$	90,014	$	55,648	$	286,464	$	—	$	1,059,254
Nonperforming	—		—		700		650		518		14,324		—		16,192
Total	$	207,093	$	227,131	$	193,604	$	90,664	$	56,166	$	300,788	$	—	$	1,075,446

Residential Real Estate: HELOC
Performing	$	140	$	299	$	23	$	130	$	141	$	1,957	$	163,134	$	165,824
Nonperforming	—		—		43		100		—		999		185		1,327
Total	$	140	$	299	$	66	$	230	$	141	$	2,956	$	163,319	$	167,151

Residential Real Estate: Installment
Performing	$	187	$	—	$	1	$	241	$	62	$	2,512	$	—	$	3,003
Nonperforming	—		—		7		2		16		1,063		—		1,088
Total	$	187	$	—	$	8	$	243	$	78	$	3,575	$	—	$	4,091

December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer: Consumer
Performing	$	823,484	$	462,014	$	333,336	$	150,237	$	61,174	$	65,612	$	4,315	$	1,900,172
Nonperforming	440		489		424		355		157		520		—		2,385
Total	$	823,924	$	462,503	$	333,760	$	150,592	$	61,331	$	66,132	$	4,315	$	1,902,557

Consumer: GFSC
Performing	$	—	$	—	$	55	$	111	$	45	$	2	$	51	$	264
Nonperforming	—		—		—		10		—		—		—		10
Total	$	—	$	—	$	55	$	121	$	45	$	2	$	51	$	274

Consumer: Check loans
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	2,150	$	2,150
Nonperforming	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	2,150	$	2,150

Total Consumer Loans
Performing	$	1,104,316	$	715,578	$	534,537	$	245,352	$	118,688	$	359,127	$	169,725	$	3,247,323
Nonperforming	1,171		489		1,697		1,117		691		16,918		185		22,268
Total	$	1,105,487	$	716,067	$	536,234	$	246,469	$	119,379	$	376,045	$	169,910	$	3,269,591

December 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	$	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
Nonperforming	89		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
Nonperforming	241		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

December 31, 2021	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
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. NewDominion 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. Carolina Alliance 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. PCD loans are individually evaluated on a quarterly basis to determine if a specific reserve is necessary. At each of December 31, 2022 and December 31, 2021, there was no allowance for credit losses on PCD loans. The carrying amount of loans acquired with deteriorated credit quality at December 31, 2022 and December 31, 2021 was $4.7 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.

In response to the COVID-19 pandemic, Park 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. Section 4013 of the CARES Act expired on December 31, 2021; therefore, modifications occurring after that date are subject to previous TDR classification guidance. As of December 31, 2022, there were no loans which were still within the COVID-19 deferral period.

Certain loans which were modified during the years ended December 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.

There were $29.6 million of substandard commercial loans modified during the year ended December 31, 2022 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, 2021 that did not meet the definition of a TDR. Consumer loans modified during 2022, which did not meet the definition of a TDR, had a total amortized cost at December 31, 2022 of $41.7 million. Excluding COVID-19 related modifications, consumer loans modified during 2021, which did not meet the definition of a TDR, had a total amortized cost at December 31, 2021 of $32.9 million. Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds.

At December 31, 2022 and 2021, there were $17.5 million and $20.9 million, respectively, of TDRs included in the nonaccrual loan totals. At December 31, 2022 and 2021, $7.5 million and $10.5 million, respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured notes. At December 31, 2022 and 2021, loans totaling $20.1 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 December 31, 2022 and 2021, Park had commitments to lend $1.6 million and $3.0 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR.

At December 31, 2022 and 2021, there were $2.2 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 borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as individually evaluated loans, and thus were also previously evaluated for impairment under ASC 310. Additional specific reserves of $0.9 million were recorded during the year ended December 31, 2022, as a result of TDRs identified in the 2022 year. Additional specific reserves of $0.2 million were recorded during the year ended December 31, 2021, as a result of TDRs identified in the 2021 year. 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.

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. During the years ended December 31, 2022 and 2021, Park removed the TDR classification on $1.0 million and $4.1 million, respectively, of loans that met the requirements discussed above.

The following tables detail the number of contracts modified as TDRs during the years ended December 31, 2022, 2021 and 2020 as well as the amortized cost/ recorded investment of these contracts at December 31, 2022, 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.

	Year ended December 31, 2022
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Amortized Cost
Commercial, financial and agricultural
Commercial, financial and agricultural	12	$	2,254	$	3,484	$	5,738
PPP loans	—	—		—		—
Overdrafts	—	—		—		—
Commercial real estate	9	1,040		813		1,853
Construction real estate:
Commercial	1	—		41		41
Retail	1	—		—		—
Residential real estate:
Commercial	4	21		274		295
Mortgage	15	865		368		1,233
HELOC	3	—		11		11
Installment	12	141		27		168
Consumer:
Consumer	89	196		359		555
GFSC	—	—		—		—
Check loans	—	—		—		—
Leases	10	—		101		101
Total loans	156	$	4,517	$	5,478	$	9,995

	Year ended December 31, 2021
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Amortized Cost
Commercial, financial and agricultural
Commercial, financial and agricultural	10	$	1,356	$	169	$	1,525
PPP loans	—	—		—		—
Overdrafts	—	—		—		—
Commercial real estate	15	2,002		6,747		8,749
Construction real estate:
Commercial	1	—		—		—
Retail	2	—		705		705
Residential real estate:
Commercial	5	95		574		669
Mortgage	14	146		396		542
HELOC	8	211		105		316
Installment	8	120		—		120
Consumer:
Consumer	131	116		417		533
GFSC	—	—		—		—
Check loans	—	—		—		—
Leases	1	—		325		325
Total loans	195	$	4,046	$	9,438	$	13,484

	Year ended December 31, 2020
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	12	$	107	$	3,706	$	3,813
Commercial real estate	9	—		3,235		3,235
Construction real estate:
Commercial	—	—		—		—
Mortgage	1	26		—		26
Installment	1	—		14		14
Residential real estate:
Commercial	3	153		3		156
Mortgage	27	888		1,068		1,956
HELOC	7	14		52		66
Installment	18	163		65		228
Consumer	214	218		634		852
Total loans	292	$	1,569	$	8,777	$	10,346

Of those loans which were modified and determined to be a TDR during the year ended December 31, 2022, $1.0 million were on nonaccrual status as of December 31, 2021. Of those loans which were modified and determined to be a TDR during the year ended December 31, 2021, $5.4 million were on nonaccrual status as of December 31, 2020. 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.

The following table presents the amortized cost/ 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, 2022, December 31, 2021, and December 31, 2020. 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 credit loss resulting from the defaults on TDR loans was immaterial.

 

	Year ended December 31, 2022			Year ended December 31, 2021			Year ended December 31, 2020
(In thousands)	Number of Contracts	Amortized Cost		Number of Contracts	Amortized Cost		Number of Contracts	Recorded Investment
Commercial, financial and agricultural:							4	$	2,776
Commercial, financial and agricultural	5	$	2,091	—	$	—	(1)	(1)
PPP loans	—	—		—	—		(1)	(1)
Overdrafts	—	—		—	—		(1)	(1)
Commercial real estate	—	—		—	—		1	223
Construction real estate:
Commercial	—	—		—	—		—	—
Retail	—	—		1	648		1	14
Residential real estate:
Commercial	1	93		—	—		1	3
Mortgage	4	154		4	280		11	993
HELOC	1	10		2	135		—	—
Installment	—	—		1	27		3	32
Consumer							34	360
Consumer	19	174		14	169		(1)	(1)
GFSC	—	—		—	—		(1)	(1)
Check loans	—	—		—	—		(1)	(1)
Leases	—	—		—	—		—	—
Total loans	30	$	2,522	22	$	1,259	55	$	4,401

(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 $2.5 million in modified TDRs which defaulted during the year ended December 31, 2022, $2.0 million were accruing loans and $0.5 million were nonaccrual loans. Of the $1.3 million in modified TDRs which defaulted during the year ended December 31, 2021, $115,000 were accruing loans and $1.1 million were nonaccrual loans. 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.

Certain of the Corporation’s executive officers, directors and related entities of directors are loan customers of PNB. As of December 31, 2022 and 2021, credit exposure aggregating approximately $37.3 million and $33.5 million, respectively, was outstanding to such parties. Of this total exposure, approximately $28.4 million and $27.1 million was outstanding at December 31, 2022 and 2021, respectively, with the remaining balance representing available credit. During 2022, new loans and advances on existing loans were made to these executive officers, directors and related entities of directors totaling $6.1 million and $1.2 million, respectively. These extensions of credit were offset by aggregate principal payments of $6.0 million. During 2021, new loans and advances on existing loans were $1.2 million and $9.7 million, respectively. These extensions of credit were offset by aggregate principal payments of $12.6 million and the removal of loans from the related party listing totaling $3.2 million.

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Allowance for Loan Losses

12 Months Ended

Dec. 31, 2022

Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]

Allowance for Credit Losses [Text Block]

Allowance for Credit LossesThe ACL is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. A provision for credit losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1-Summary of Significant Accounting Policies.

During the first quarter of 2021, Park adopted ASU 2016-13, including the CECL methodology for estimating the ACL. This standard was adopted prospectively on January 1, 2021, resulting in a $6.1 million increase to the ACL and a $3.9 million increase to the allowance for unfunded credit losses. A cumulative effect adjustment resulting in an $8.0 million decrease to retained earnings and a $2.1 million increase to deferred tax assets was also recorded as of the adoption of ASU 2016-13.

Quantitative Considerations

The ACL is primarily calculated utilizing a DCF model. Key inputs and assumptions used in this model are discussed below:

•Forecast model - For each portfolio segment, a LDA was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA analysis utilized Park's own FFIEC Call Report data for the commercial, financial and agricultural and residential real estate portfolio segments. Peer data was incorporated into the analysis for the commercial real estate, construction real estate, and consumer portfolio segments. Park updated the LDA in the fourth quarter of 2022 with data through September 30, 2022. After considering the impact of the inclusion of periods impacted by COVID, as well as analysis of the ongoing applicability of the selected peer group, management decided it was appropriate to continue to utilize the LDA analysis from the fourth quarter of 2019 as the correlation of the LDA was higher.

•Probability of default – PD is the probability that an asset will be in default within a given time frame. Park has defined default to be when a charge-off has occurred, a loan is placed on nonaccrual, or a loan is greater than 90 days past due. Whenever possible, Park utilizes its own loan-level PDs for the reasonable and supportable forecast period. When loan-level data is not available reflecting the forecasted economic conditions, a forecast model is utilized to estimate PDs.

•Loss given default – LGD is the percentage of the asset not expected to be collected due to default. Whenever possible, Park utilizes its own loan-level LGDs for the reasonable and supportable forecast period. When it is not possible to use Park's own LGDs, the LGD is derived using a method referred to as Frye Jacobs.

•Prepayments and curtailments – Prepayments and curtailments are calculated based on Park’s own data utilizing a three-year average. This analysis is updated annually in the fourth quarter and was last updated in the fourth quarter of 2022.

•Forecast and reversion – Park has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.

•Economic forecast - Park utilizes a third party to provide economic forecasts under various scenarios, which are weighted in order to reflect model risk in the current economic environment. The scenario weighting is evaluated by management on a quarterly basis.

◦As of December 31, 2021, the "most likely" scenario forecasted Ohio unemployment to decrease, to a range between 3.32% and 3.97%, during the next four quarters. In determining the appropriate weighting of scenarios at December 31, 2021, management considered the range of forecasted unemployment as well as a number of economic indicators. While some economic indications appeared to be optimistic, the Omicron variant, rising inflation, volatility in consumer confidence, employment, supply chain and workforce challenges continued to cause uncertainty to the overall economic environment. Considering these factors, management determined it was appropriate to weigh the "most likely" scenario 50% and the "moderate recession" scenario 50% at December 31, 2021.

◦As of December 31, 2022, the "most likely" scenario forecasted Ohio unemployment between 4.14% and 4.36% during the next four quarters. In determining the appropriate weighting of scenarios at December 31, 2022, management considered the range of forecasted unemployment as well as a number of economic indicators. The continued high levels of inflation, historically low consumer confidence, rising interest rates, geopolitical conflict (including the conflict between Russia and Ukraine), and workforce and supply chain challenges continued to cause uncertainty to the overall economic environment. Considering these factors, management determined it was appropriate to maintain the existing weighting, and weigh the "most likely" scenario 50% and the "moderate recession" scenario 50% at December 31, 2022. Deteriorating forecasts, largely in the "moderate recession" scenario, resulted in a 10 basis point increase in the weighted quantitative allowance from December 31, 2021.

Qualitative Considerations

Park reviews various internal and external factors to consider the need for any qualitative adjustments to the quantitative model. Factors considered include the following:

•The nature and volume of Park’s financial assets; the existence, growth, and effect of any concentrations of credit and the volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets. Specifically, management considers:

◦Trends (e.g., growth, reduction) in specific categories of the loan portfolio, as well as adjustments to the types of loans offered by Park.

◦Level of and trend in loan delinquencies, troubled loans, commercial watch list loans and nonperforming loans.

◦Level of and trend in new nonaccrual loans.

◦Level of and trend in loan charge-offs and recoveries.

•Park's lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries.

•The quality of Park’s credit review function.

•The experience, ability, and depth of Park’s lending, investment, collection, and other relevant management and staff.

•The effect of other external factors such as the regulatory, legal and technological environments; competition; geopolitical conflict; and events such as natural disasters or pandemics.

•Actual and expected changes in international, national, regional, and local economic and business conditions and developments in the markets in which Park operates that affect the collectibility of financial assets.

•Where the U.S. economy is within a given credit cycle.

•The extent that there is government assistance (stimulus).

During 2020, Park added an additional reserve for three industries at particularly high risk due to the COVID-19 pandemic: hotels and accommodations; restaurants and food service; and strip shopping centers. These industries experienced high levels of deferrals and had been particularly impacted by shut downs of non-essential businesses, increased health department regulations, and changes in consumer behavior. Management expected that a relatively higher percentage of the 4-rated credits in these portfolios would eventually migrate to special mention, substandard, or individually evaluated status. In adopting CECL, management determined it was appropriate to retain this qualitative adjustment as this adjustment took into account the additional risk in these portfolios, which was not captured in the quantitative calculation. As COVID cases began to decline during the first quarter of 2022, travel increased, restrictions lifted, and consumers began increasing restaurant visits and shopping in person and these industries began to show signs of recovery. Beginning in the first quarter of 2022, management began decreasing these reserves 25% each quarter to take into account improvements in these industry sectors. In the fourth quarter 2022, these industries continued to show positive trends and COVID-19 has become less impactful to day-to-day life. Therefore, management deemed it appropriate to reduce the factors the remaining 25%, taking this qualitative adjustment to zero.

A breakout of the 4-rated balances within these portfolios and the additional reserve related to these portfolios, as of December 31, 2021, is detailed in the following table:

	December 31, 2021
(In thousands)	4-Rated Balance		Additional Reserve
Hotels and accommodations	$	148,018	$	2,226
Restaurants and food service	40,648		917
Strip shopping centers	184,171		2,033
Total	$	372,837	$	5,176

Additionally, at December 31, 2021, management applied a 1.00% reserve to all hotels and accommodations loans in the collectively evaluated population to account for increased valuation risk. At December 31, 2021, Park's collectively evaluated hotels and accommodation loans had a balance of $203.9 million with an additional reserve related to valuation risks of $2.0 million. With improvement in occupancy and revenue in Park's hotel and accommodations portfolio, management concluded it appropriate to decrease the hotel and accommodations valuation reserve to zero at December 31, 2022.

At December 31, 2022 and 2021, Park had $4.2 million and $74.4 million, respectively, of PPP loans which were included in the commercial, financial and agricultural portfolio segment. These loans are guaranteed by the SBA and thus have not been reserved for using the same methodology as the rest of Park’s loan portfolio. A 10 basis point reserve was calculated for these loans to reflect minimal credit risk at December 31, 2022 and December 31, 2021.

ACL Activity

The activity in the allowance for credit losses for the years ended December 31, 2022, 2021, and 2020 is summarized in the following tables.

	Year ended December 31, 2022
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for credit losses:
Beginning balance	$	14,025	$	25,466	$	5,758	$	11,424	$	26,286	$	238	$	83,197
Charge-offs	2,056		1,578		33		81		5,343		42		9,133
Recoveries	(826)		(627)		(1,343)		(164)		(3,767)		(31)		(6,758)
Net charge-offs (recoveries)	1,230		951		(1,310)		(83)		1,576		11		2,375
Provision (recovery)	4,192		(6,686)		(1,518)		5,324		3,311		(66)		4,557
Ending balance	$	16,987	$	17,829	$	5,550	$	16,831	$	28,021	161		$	85,379

 

	Year ended December 31, 2021
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for credit losses:
Beginning balance	$	25,608	$	23,480	$	7,288	$	11,363	$	17,418	$	518	$	85,675
Impact of adopting ASC 326	(8,257)		2,119		(1,898)		3,121		10,925		80		6,090
Charge-offs	957		35		—		49		4,052		—		5,093
Recoveries	(639)		(802)		(2,299)		(941)		(3,759)		(1)		(8,441)
Net charge-offs (recoveries)	318		(767)		(2,299)		(892)		293		(1)		(3,348)
(Recovery) Provision	(3,008)		(900)		(1,931)		(3,952)		(1,764)		(361)		(11,916)
Ending balance	$	14,025	$	25,466	$	5,758	$	11,424	$	26,286	$	238	$	83,197

	Year ended December 31, 2020
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for credit losses:
Beginning balance	$	20,203	$	10,229	$	5,311	$	8,610	$	12,211	$	115	$	56,679
Charge-offs	1,468		1,824		6		356		6,634		16		10,304
Recoveries	(20,765)		(738)		(1,122)		(991)		(3,629)		(1)		(27,246)
Net (recoveries) charge-offs	(19,297)		1,086		(1,116)		(635)		3,005		15		(16,942)
(Recovery) Provision	(13,892)		14,337		861		2,118		8,212		418		12,054
Ending balance	$	25,608	$	23,480	$	7,288	$	11,363	$	17,418	$	518	$	85,675

ACL Summary

Loans collectively evaluated for impairment in the following tables include all performing loans at December 31, 2022 and December 31, 2021, as well as nonperforming loans internally classified as consumer loans. Nonperforming consumer loans are not typically individually evaluated for impairment, but receive a portion of the statistical allocation of the ACL. Loans individually evaluated for impairment include all loans internally classified as commercial nonaccrual loans and TDRs at December 31, 2022 and December 31, 2021, which are evaluated for impairment in accordance with U.S. GAAP (See Note 1-Significant Accounting Policies).

The composition of the ACL at December 31, 2022 and December 31, 2021 was as follows:

 

	December 31, 2022
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
ACL:
Ending allowance balance attributed to loans:
Individually evaluated for impairment	$	3,426		$	131		$	—		$	—		$	—		$	9		$	3,566
Collectively evaluated for impairment	13,561			17,698			5,550			16,831			28,021			152			$	81,813
Acquired with deteriorated credit quality	—			—			—			—			—			—			$	—
Total ending allowance balance	$	16,987		$	17,829		$	5,550		$	16,831		$	28,021		$	161		$	85,379
Loan balance:
Loans individually evaluated for impairment	$	41,307		$	32,423		$	1,712		$	2,191		$	—		$	708		$	78,341
Loans collectively evaluated for impairment	1,259,524			1,758,118			323,043			1,794,302			1,904,981			18,929			7,058,897
Loans acquired with deteriorated credit quality	102			3,513			660			378			—			—			4,653
Total ending loan balance	$	1,300,933		$	1,794,054		$	325,415		$	1,796,871		$	1,904,981		$	19,637		$	7,141,891
ACL as a percentage of loan balance:
Loans individually evaluated for impairment	8.29		%	0.40		%	—		%	—		%	—		%	1.27		%	4.55		%
Loans collectively evaluated for impairment	1.08		%	1.01		%	1.72		%	0.94		%	1.47		%	0.80		%	1.16		%
Loans acquired with deteriorated credit quality	—		%	—		%	—		%	—		%	—		%	—		%	—		%
Total	1.31		%	0.99		%	1.71		%	0.94		%	1.47		%	0.82		%	1.20		%

	December 31, 2021
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
ACL:
Ending allowance balance attributed to loans:
Individually evaluated for impairment	$	1,385		$	188		$	—		$	—		$	—		$	43		$	1,616
Collectively evaluated for impairment	12,640			25,278			5,758			11,424			26,286			195			$	81,581
Acquired with deteriorated credit quality	—			—			—			—			—			—			$	—
Total ending allowance balance	$	14,025		$	25,466		$	5,758		$	11,424		$	26,286		$	238		$	83,197
Loan balance:
Loans individually evaluated for impairment	$	22,666		$	47,820		$	222		$	2,606		$	—		$	1,188		$	74,502
Loans collectively evaluated for impairment	1,275,783			1,748,854			320,608			1,735,226			1,689,679			19,321			6,789,471
Loans acquired with deteriorated credit quality	177			5,118			956			875			—			23			7,149
Total ending loan balance	$	1,298,626		$	1,801,792		$	321,786		$	1,738,707		$	1,689,679		$	20,532		$	6,871,122
ACL as a percentage of loan balance:
Loans individually evaluated for impairment	6.11		%	0.39		%	—		%	—		%	—		%	3.62		%	2.17		%
Loans collectively evaluated for impairment	0.99		%	1.45		%	1.80		%	0.66		%	1.56		%	1.01		%	1.20		%
Loans acquired with deteriorated credit quality	—		%	—		%	—		%	—		%	—		%	—		%	—		%
Total	1.08		%	1.41		%	1.79		%	0.66		%	1.56		%	1.16		%	1.21		%

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Goodwill and Other Intangible Assets

The following table shows the activity in goodwill and other intangible assets for the years ended December 31, 2022, 2021 and 2020.

 

(In thousands)	Goodwill		Other Intangible Assets		Total
January 1, 2020	$	159,595	$	11,523	$	171,118
Amortization	—		2,263		2,263
December 31, 2020	$	159,595	$	9,260	$	168,855
Amortization	—		1,798		1,798
December 31, 2021	$	159,595	$	7,462	$	167,057
Amortization	—		1,487		1,487
December 31, 2022	$	159,595	$	5,975	$	165,570

Goodwill

Goodwill impairment exists when a reporting unit's carrying value exceeds its fair value. Park evaluates goodwill for impairment on April 1 of each year, with financial data as of March 31. At April 1, 2022, the Company's reporting unit, PNB, had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.

Acquired Intangible Assets

The following table shows the balance of acquired intangible assets as of December 31, 2022 and 2021.

	2022				2021
(In thousands)	Gross Carrying Amount		Accumulated Amortization/Impairment		Gross Carrying Amount		Accumulated Amortization
Other intangible assets:
Core deposit intangibles	$	14,456	$	8,481	$	14,456	$	6,994
Trade name intangible	1,300		1,300		1,300		1,300
Total	$	15,756	$	9,781	$	15,756	$	8,294

Core deposit intangibles are being amortized, on an accelerated basis, over a period of ten years. Amortization expense for the core deposit intangibles was $1.5 million, $1.8 million and $2.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.

The following is a schedule of estimated core deposit intangibles amortization expense for each of the next five years:

(In thousands)	Total
2023	$	1,323
2024	1,215
2025	1,042
2026	887
2027	754

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Mortgage Loans Held for Sale

12 Months Ended

Dec. 31, 2021

Loans Held for Sale [Abstract]

Loans Held For Sale Disclosure [Text Block]

. Loans Held for Sale

Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale were $2.1 million and $9.4 million at December 31, 2022 and 2021, respectively. These amounts are included in "Loans" on the Consolidated Balance Sheets and in the residential real estate loan segments in Note 5 - Loans and Note 6 - Allowance for Credit Losses. The contractual balance was $2.1 million and $9.2 million at December 31, 2022 and 2021, respectively. The gain expected upon sale was $41,000 and $166,000 at December 31, 2022 and 2021, respectively. None of these loans were 90 days or more past due or on nonaccrual status at December 31, 2022 or 2021.

During 2022, Park transferred certain commercial loans held for investment, previously nonperforming, with an amortized cost of $6.3 million, to the loans held for sale portfolio. The transferred loans were recorded at the lower of cost or fair value, recording a charge-off in each instance where the fair value of an individual loan was deemed to be below the carrying cost at the time the loans were moved to the held for sale portfolio. The sale of $3.9 million in loans held for sale was subsequently completed and Park recognized a gain on sale of $495,000 which is recorded within "Miscellaneous income" on the Consolidated Statements of Income. The remaining $2.4 million in loans held for sale were transferred back to loans held for investment at the lower of cost or fair value. During 2020, Park transferred a non-performing loan held for investment, with a book balance of $4.4 million, to the loans held for sale portfolio, and subsequently completed the sale of this non-performing loan held for sale, recognizing no gain or loss on sale. No non-performing loans were held for sale or sold during 2021.

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Foreclosed and Repossessed Assets

12 Months Ended

Dec. 31, 2022

Other Assets [Abstract]

Real Estate Owned [Text Block]

Foreclosed and Repossessed Assets

Park typically transfers a loan to OREO at the time that Park takes deed/title to the real estate property asset. The carrying amount of foreclosed properties held at December 31, 2022 and December 31, 2021 are listed below, as well as the recorded investment of loans secured by residential real estate properties for which formal foreclosure proceedings were in process at those dates.

(In thousands)	December 31, 2022		December 31, 2021
OREO:
Commercial real estate	$	1,354	$	—
Residential real estate	—		775
Total OREO	$	1,354	$	775
Loans in process of foreclosure:
Residential real estate	$	1,614	$	1,148

Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired. During the year ended December 31, 2022, Park recognized a $12.0 million OREO valuation markup related to the foreclosure and subsequent sale of a property collateralizing a former Vision Bank relationship. This income is included in "OREO valuation markup" on the Consolidated Statements of Income. There was no OREO valuation markup related to former Vision Bank relationships during the year ended December 31, 2021.

During the year ended December 31, 2022, Park recognized a $5.6 million gain on the sale of OREO related to former Vision Bank relationships. This income is included in "Gain (loss) on the sale of OREO, net" on the Consolidated Statements of Income. There was no gain or loss on the sale of OREO related to former Vision Bank relationships during the year ended December 31, 2021.

In addition to real estate, Park may also repossess different types of collateral. As of December 31, 2022 and December 31, 2021, Park had $0.6 million and $3.3 million in other repossessed assets which are included in "Other assets" on the Consolidated Balance Sheets. At December 31, 2021, the other repossessed assets largely consisted of an aircraft acquired as part of a loan workout.

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Premises and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and Equipment

The major categories of premises and equipment and accumulated depreciation are summarized as follows:

 

December 31 (In thousands)	2022		2021
Land	$	22,139	$	21,992
Buildings	97,510		97,128
Equipment, furniture and fixtures	77,446		76,675
Leasehold improvements	3,575		6,436
Software	28,665		24,698
Total	$	229,335	$	226,929
Less accumulated depreciation	(147,209)		(137,921)
Premises and equipment, net	$	82,126	$	89,008

Depreciation expense amounted to $13.8 million, $13.3 million and $10.8 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Park records leased assets where Park acts as the lessor within "Other assets" on the Consolidated Balance Sheets. Equipment subject to lease agreements at December 31, 2022 and 2021 is summarized below:

December 31 (In thousands)	2022		2021
Equipment	$	4,427	$	7,298
Less accumulated depreciation	(3,162)		(4,860)
Leased assets, net	$	1,265	$	2,438

Depreciation expense on operating lease assets of $1.1 million, $1.5 million, and $1.8 million was recorded for the years ended December 31, 2022, 2021 and 2020 respectively.

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Investments in Qualified Affordable Housing

12 Months Ended

Dec. 31, 2022

Investments in Affordable Housing Projects [Abstract]

Affordable Housing Program

Investments in Qualified Affordable Housing

Park makes certain equity investments in various limited partnerships that sponsor affordable housing projects. The purposes of these investments are to achieve a satisfactory return on capital, help create affordable housing opportunities, and assist the Company to achieve its goals associated with the Community Reinvestment Act.

As permitted by ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, Park has elected the proportional amortization method of accounting. Under the proportional amortization method, amortization expense and tax benefits are recognized through the provision for income taxes.

The table below details the balances of Park’s affordable housing tax credit investments and related unfunded commitments as of December 31, 2022 and 2021.

(In thousands)	December 31, 2022		December 31, 2021
Affordable housing tax credit investments	$	60,968	$	58,711
Unfunded commitments	28,132		28,484

Commitments are funded when capital calls are made by the general partner of a limited partnership. Park expects that the commitments as of December 31, 2022 will be funded between 2023 and 2032.

During the years ended December 31, 2022, 2021 and 2020, Park recognized amortization expense of $7.7 million, $7.3 million and $7.0 million, respectively, which was included within the provision for income taxes. For the years ended December 31, 2022, 2021 and 2020, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $9.3 million, $8.8 million and $8.7 million, respectively.

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Deposits

12 Months Ended

Dec. 31, 2022

Deposits [Abstract]

Deposits

Deposits

At December 31, 2022 and 2021, non-interest bearing and interest bearing deposits were as follows:

 

December 31 (In thousands)	2022		2021
Non-interest bearing	$	3,074,276	$	3,066,419
Interest bearing	5,160,439		4,838,109
Total	$	8,234,715	$	7,904,528

At December 31, 2022, the maturities of time deposits were as follows: 

(In thousands)
2023	$	346,856
2024	122,885
2025	35,005
2026	24,463
2027	25,194
After 5 years	42
Total	$	554,445

At December 31, 2022 and 2021, respectively, Park had approximately $17.5 million and $29.6 million of deposits received from Park's executive officers, Park directors and related entities of Park directors.

Time deposits that met or exceeded the FDIC insurance limit of $250,000 at December 31, 2022 and 2021 were $44.3 million and $65.8 million, respectively.

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Repurchase Agreement Borrowings

12 Months Ended

Dec. 31, 2022

Transfers of Financial Assets Accounted for as Secured Borrowings [Abstract]

Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Table Text Block]

Repurchase Agreement Borrowings

Securities sold under agreements to repurchase ("repurchase agreements") with customers represent funds deposited by customers, generally on an overnight basis, that are collateralized by investment securities owned by Park. Repurchase agreements with customers are included in "Short-term borrowings" on the Consolidated Balance Sheets.

All repurchase agreements are subject to the terms and conditions of repurchase/security agreements between Park and the client and are accounted for as secured borrowings. Park's repurchase agreements consisted of customer accounts and securities which are pledged on an individual security basis.

At December 31, 2022 and December 31, 2021, Park's repurchase agreement borrowings totaled $227.3 million and $213.8 million, respectively. These borrowings were collateralized with U.S. government sponsored entities' asset-backed securities with a fair value of $313.1 million and $334.9 million at December 31, 2022 and December 31, 2021, respectively. Declines in the value of the collateral would require Park to pledge additional securities. As of December 31, 2022 and December 31, 2021, Park had $1,147 million and $1,225 million, respectively, of available unpledged securities.

The following table presents the carrying value of Park's repurchase agreement borrowings by remaining contractual maturity and collateral pledged at December 31, 2022 and December 31, 2021:

	December 31, 2022
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government sponsored entities' asset-backed securities	$	227,342	$	—	$	—	$	—	$	227,342
	December 31, 2021
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government sponsored entities' asset-backed securities	$	213,786	$	—	$	—	$	—	$	213,786

See Note 16 - Short-Term Borrowings for additional information related to repurchase agreements.

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Short Term Borrowings

12 Months Ended

Dec. 31, 2022

Short-Term Debt [Abstract]

Short-Term Borrowings

Short-Term Borrowings

Short-term borrowings were as follows:

December 31 (In thousands)	2022		2021
Securities sold under agreements to repurchase	$	227,342	$	213,786
FHLB advances	—		25,000
Total short-term borrowings	$	227,342	$	238,786

The outstanding balances for all short-term borrowings as of December 31, 2022 and 2021 and the weighted-average interest rates as of and paid during each of the years then ended were as follows: 

(In thousands)	Repurchase agreements			FHLB Advances
2022
Ending balance	$	227,342		$	—
Highest month-end balance	227,342			25,000
Average daily balance	199,813			7,195
Weighted-average interest rate:
As of year-end	1.39		%	—		%
Paid during the year (1)	0.57		%	0.04		%
2021
Ending balance	$	213,786		$	25,000
Highest month-end balance	297,118			25,000
Average daily balance	261,967			25,025
Weighted-average interest rate:
As of year-end	0.03		%	0.23		%
Paid during the year (1)	0.04		%	0.23		%

(1) Interest rate swaps with notional amounts of a zero balance at December 31, 2022 (the swap was paid off during 2022) and a balance of $25.0 million at December 31, 2021 were designated as cash flow hedges of certain FHLB advances. Including interest expense related to the swaps, the weighted average interest rate paid during the year on FHLB advances was 3.62% and 2.69% for 2022 and 2021, respectively.

During 2021 and 2022, outstanding FHLB advances were collateralized by investment securities owned by PNB and by various loans pledged under a blanket agreement by PNB. At December 31, 2022 and December 31, 2021, $7.2 million and $9.5 million, respectively, of investment securities were pledged as collateral for FHLB advances. At December 31, 2022 and December 31, 2021, $1,832 million and $1,749 million, respectively, of commercial real estate and residential mortgage loans were pledged under a blanket agreement to the FHLB by PNB. See Note 15 - Repurchase Agreement Borrowings for information related to investment securities collateralizing repurchase agreements.

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Long-Term Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Park did not have long-term borrowings at either December 31, 2022 or December 31, 2021.

On February 18, 2020, Park prepaid $50 million of FHLB advances, incurring a $1.8 million prepayment penalty recognized within "FHLB prepayment penalty" on the Consolidated Statement of Income for the year ended December 31, 2020. These advances had an average interest rate of 3.01% and maturity dates of March 14, 2022 and September 15, 2022.

On December 3, 2020, Park prepaid $100 million of FHLB advances, incurring an $8.7 million prepayment penalty recognized within "FHLB prepayment penalty" on the Consolidated Statement of Income for the year ended December 31, 2020. These advances had an interest rate of 3.40% and a maturity date of December 1, 2023.

On June 20, 2019, Park issued a $50 million term note to U.S. Bank National Association. This term note had a maturity date of June 21, 2022 and accrued interest at a floating rate of one-month LIBOR plus 1.65%. On August 2, 2021, Park prepaid the outstanding balance of $27.5 million of the term note to U.S. Bank National Association.

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Subordinated Notes

12 Months Ended

Dec. 31, 2022

Long-Term Debt, Unclassified [Abstract]

Subordinated Debentures/Notes

Subordinated Notes

As part of the acquisition of Vision's parent bank holding company ("Vision Parent") on March 9, 2007, Park became the successor to Vision Parent under (i) the Amended and Restated Trust Agreement of Vision Bancshares Trust I (the “Trust”), dated as of December 5, 2005, (ii) the Junior Subordinated Indenture, dated as of December 5, 2005, and (iii) the Guarantee Agreement, also dated as of December 5, 2005.

On December 1, 2005, Vision Parent formed a wholly-owned Delaware statutory business trust, Vision Bancshares Trust I (“Trust I”), which issued $15.0 million of Trust I's floating rate preferred securities (the “Trust Preferred Securities”) to institutional investors. These Trust Preferred Securities qualify as Tier I capital under FRB guidelines. All of the common securities of Trust I are owned by Park. The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by Trust I to purchase $15.5 million of junior subordinated notes, which carry a floating rate based on

three-month LIBOR plus 148 basis points. The junior subordinated notes represent the sole asset of Trust I. The Trust Preferred Securities accrue and pay distributions at a floating rate of three-month LIBOR plus 148 basis points per annum. The Trust Preferred Securities are mandatorily redeemable upon maturity of the junior subordinated notes in December 2035, or upon earlier redemption as provided in the junior subordinated notes. Since December 30, 2010, Park has had the right to redeem the junior subordinated notes purchased by Trust I in whole or in part. As specified in the indenture, if the junior subordinated notes are redeemed prior to maturity, the redemption price will be the principal amount, plus any unpaid accrued interest. In accordance with U.S. GAAP, Trust I is not consolidated with Park’s financial statements, but rather the subordinated notes are reflected as a liability.

On August 20, 2020, Park completed the issuance and sale of $175 million aggregate principal amount of its 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030 (the "Subordinated Notes"). The Subordinated Notes initially bear a fixed interest rate of 4.50% per year, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021. Commencing on September 1, 2025, the Subordinated Notes will bear interest at a floating rate per annum equal to the Benchmark rate, which is expected to be Three-Month Term SOFR, plus a spread of 439 basis points for each quarterly interest period during the floating rate period, payable quarterly in arrears; provided, however, that if the Benchmark rate is less than zero, then the Benchmark rate will be deemed to be zero. The Company may, at its option, beginning with the interest payment date of September 1, 2025 and on any interest payment date thereafter, redeem the Subordinated Notes, in whole or in part, from time to time, subject to obtaining the prior approval of the holders of the Company’s senior indebtedness and of the Federal Reserve Board to the extent the approval of the Federal Reserve Board is then required under the capital adequacy rules of the Federal Reserve Board, at a redemption price equal to 100% of the principal amount of the Subordinated Notes being redeemed, plus accrued and unpaid interest thereon to but excluding the date of redemption. The issuance costs of the Subordinated Notes totaled $2.4 million, which amount is being amortized through the Subordinated Note call date. At December 31, 2022 and 2021, the Subordinated Notes, net of unamortized issuance costs, totaled $173.7 million and $173.2 million, and qualify as Tier 2 capital for Park under the Federal Reserve Board capital adequacy rules.

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Derivatives

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure

Derivatives

Park uses certain derivative financial instruments (or "derivatives") to meet the needs of Park's clients while managing the interest rate risk associated with certain transactions. Park does not use derivatives for speculative purposes. A summary of derivative financial instruments utilized by Park follows.

Interest Rate Swaps

Park utilizes interest rate swap agreements as part of its asset-liability management strategy to help manage its interest rate risk position and as a means to meet the financing, interest rate and other risk management needs of qualifying commercial banking customers. The notional amount of the interest rate swaps does not represent the amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Borrowing Derivatives: At December 31, 2022, Park had no borrowing derivatives. Interest rate swaps with notional amounts totaling $25.0 million at December 31, 2021 were designated as cash flow hedges of certain FHLB advances.

Loan Derivatives: In conjunction with the Carolina Alliance acquisition, Park acquired interest rate swaps related to certain commercial loans. Simultaneously with borrowers entering into interest rate swaps, Carolina Alliance entered into offsetting

interest rate swaps executed with a third party, such that Carolina Alliance minimized its net interest rate risk exposure resulting

from such transactions. These interest rate swaps had a notional amount totaling $21.7 million and $29.7 million at December 31, 2022 and December 31, 2021, respectively.

All of the Company's interest rate swaps were determined to be fully effective during the years ended December 31, 2022 and 2021. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in "Other assets" and "Other liabilities" with changes in fair value recorded in "Other comprehensive (loss) income". The amount included in "Accumulated other comprehensive (loss) income, net of tax" would be reclassified to net income should the hedges no longer be considered effective. During the year ended December 31, 2022, Park recognized expense of $66,000 as the result of the early termination of a borrowing interest rate swap. No expense related to early termination was recognized during the years ended December 31, 2021 and 2020, respectively. Park expects the outstanding hedges to remain fully effective during the remaining respective terms of the swaps.

Summary information about Park's interest rate swaps as of December 31, 2022 and December 31, 2021 was as follows:

	December 31, 2022						December 31, 2021
(In thousands, except weighted average data)	Borrowing Derivatives			Loan Derivatives			Borrowing Derivatives			Loan Derivatives
Notional amounts	$	—		$	21,700		$	25,000		$	29,651
Weighted average pay rates	—		%	4.553		%	2.595		%	4.668		%
Weighted average receive rates	—		%	4.553		%	0.124		%	4.668		%
Weighted average maturity (years)	0.0			7.9			0.5			8.2
Unrealized losses	$	—		$	—		$	262		$	—

Interest expense recorded on swap transactions was $171,000, $614,000 and $423,000 for the years ended December 31, 2022, 2021, and 2020, respectively.

Interest Rate Swaps

The following table presents the net gains (losses), net of income taxes, recorded in OCI and the Consolidated Statements of Income related to interest rate swaps for the years ended December 31, 2022, 2021 and 2020:

	Year ended December 31, 2022
(In thousands)	Amount of Gain (Loss) Recognized in OCI (Effective Portion)		Amount of Gain (Loss) Reclassified from OCI to Interest Income		Amount of Expense Recognized in Miscellaneous Expense
Interest rate contracts	$	154	$	—	$	52

	Year ended December 31, 2021
(In thousands)	Amount of Gain (Loss) Recognized in OCI (Effective Portion)		Amount of Gain (Loss) Reclassified from OCI to Interest Income		Amount of Expense Recognized in Miscellaneous Expense
Interest rate contracts	$	492	$	—	$	—

	Year ended December 31, 2020
(In thousands)	Amount of Gain (Loss) Recognized in OCI (Effective Portion)		Amount of Gain (Loss) Reclassified from OCI to Interest Income		Amount of Expense Recognized in Miscellaneous Expense
Interest rate contracts	$	(244)	$	—	$	—

The following table reflects the interest rate swaps included in the Consolidated Balance Sheets as of December 31, 2022 and 2021:

(In thousands)	December 31, 2022				December 31, 2021
	Notional Amount		Fair Value		Notional Amount		Fair Value
Included in "Other assets":
Borrowing derivatives - interest rate swaps related to FHLB advances	$	—	$	—	$	—	$	—
Loan derivatives - instruments associated with loans
Matched interest rate swaps with borrower	—		—		29,651		1,952
Matched interest rate swaps with counterparty	21,700		1,508		—		—
Total included in "Other assets"	$	21,700	$	1,508	$	29,651	$	1,952
Included in "Other liabilities":
Borrowing derivatives - interest rate swaps related to FHLB advances	$	—	$	—	$	25,000	$	(262)
Loan derivatives - instruments associated with loans
Matched interest rate swaps with borrower	21,700		(1,508)		—		—
Matched interest rate swaps with counterparty	—		—		29,651		(1,952)
Total included in "Other liabilities"	$	21,700	$	(1,508)	$	54,651	$	(2,214)

Mortgage Banking Derivatives

Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. In order to hedge the change in interest rates resulting from its commitments to fund the loans, the Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into. These mortgage banking derivatives are not designated as hedge relationships. The fair value of an interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. Fair values of these mortgage banking derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in "Other service income" in the Consolidated Statements of Income.

At December 31, 2022 and December 31, 2021, Park had $2.1 million and $13.3 million, respectively, of interest rate lock commitments. The fair value of these mortgage banking derivatives was reflected by a derivative asset of $46,000 and $0.3 million at December 31, 2022 and December 31, 2021, respectively.

Other Derivatives

In connection with the sale of Park’s Class B Visa shares during 2009, Park entered into a swap agreement with the purchaser of the shares. The swap agreement adjusts for dilution in the conversion ratio of Class B Visa shares resulting from certain Visa litigation. At December 31, 2022 and 2021, the fair value of the swap liability of $243,000 and $226,000, respectively, represented an estimate of the exposure based upon probability-weighted potential Visa litigation losses.

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Share Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Stock Option Plan

Share-Based Compensation

The Park National Corporation 2017 Long-Term Incentive Plan for Employees (the "2017 Employees LTIP") was adopted by the Board of Directors of Park on January 23, 2017 and was approved by Park's shareholders at the Annual Meeting of Shareholders on April 24, 2017. The 2017 Employees LTIP makes equity-based awards and cash-based awards available for grant to employee participants in the form of incentive stock options, nonqualified stock options, SARs, Restricted Stock, Restricted Stock Units, Other Stock-Based Awards and cash-based awards. Under the 2017 Employees LTIP, 750,000 common shares are authorized to be delivered in connection with grants under the 2017 Employees LTIP. The common shares to be delivered under the 2017 Employees LTIP are to consist of either common shares currently held or common shares subsequently acquired by Park as treasury shares, including common shares purchased in the open market or in private transactions. At December 31, 2022, 375,000 common shares were available for future grants under the 2017 Employee LTIP.

The Park National Corporation 2017 Long-Term Incentive Plan for Non-Employee Directors (the "2017 Non-Employee Directors LTIP") was adopted by the Board of Directors of Park on January 23, 2017 and was approved by Park's shareholders at the Annual Meeting of Shareholders on April 24, 2017. The 2017 Non-Employee Directors LTIP makes equity-based awards

and cash-based awards available for grant to non-employee director participants in the form of nonqualified stock options, SARs, Restricted Stock, Restricted Stock Units, Other Stock-Based Awards, and cash-based awards. Under the 2017 Non-Employee Directors LTIP, 150,000 common shares are authorized to be delivered in connection with grants under the 2017 Non-Employee Directors LTIP. The common shares to be delivered under the 2017 Non-Employee Directors LTIP are to consist of either common shares currently held or common shares subsequently acquired by Park as treasury shares, including common shares purchased in the open market or in private transactions. At December 31, 2022, 75,000 common shares were available for future grants under the 2017 Non-Employee Directors LTIP.

During 2022, 2021 and 2020, Park granted 9,789, 13,400 and 13,450 common shares, respectively, to directors of Park and to directors of PNB (and its divisions) under the 2017 Non-Employee Directors LTIP. The common shares granted to directors were not subject to a vesting period and resulted in expense of $1.3 million, $1.7 million, and $1.3 million in 2022, 2021, and 2020, respectively, which is included in "Professional fees and services" on the Consolidated Statements of Income. 

During 2022, 2021 and 2020, the Compensation Committee of the Board of Directors of Park granted awards of PBRSUs, under the 2017 Employees LTIP, covering an aggregate of 52,335, 61,890 and 62,265 common shares, respectively, to certain employees of Park and its subsidiaries. As of December 31, 2022, Park had nonvested PBRSUs as well as TBRSUs. The number of PBRSUs earned or settled will depend on the level of achievement with respect to certain performance criteria and will also be subject to subsequent service-based vesting. The number of TBRSUs earned or settled are subject to service-based vesting.

A summary of changes in the common shares subject to nonvested PBRSUs and TBRSUs for the years ended December 31, 2022 and 2021 follows:

	Common shares subject to PBRSUs and TBRSUs
Nonvested at January 1, 2021	204,108
Granted	61,890
Vested	(48,106)
Forfeited	(3,522)
Adjustment for performance conditions of PBRSUs (1)	(2,551)
Nonvested at January 1, 2022	211,819
Granted	52,335
Vested	(55,464)
Forfeited	(8,406)
Adjustment for performance conditions of PBRSUs (1)	(634)
Nonvested at December 31, 2022 (2)	199,650

(1) The number of PBRSUs earned depends on the level of achievement with respect to certain performance criteria. Adjustment herein represents the difference between the maximum number of common shares which could be earned and the actual number earned for those PBRSUs as to which the performance period was completed.

(2) Nonvested amount herein represents the maximum number of nonvested PBRSUs and TBRSUs. As of December 31, 2022, an aggregate of 198,737 PBRSUs and TBRSUs are expected to vest.

A summary of awards that vested during the twelve months ended December 31, 2022 and 2021 follows:

	Twelve Months Ended December 31,
	2022	2021
PBRSU and TBRSU vested	55,464	48,106
Common shares withheld to satisfy employee income tax withholding obligations	21,219	18,436
Net common shares issued	34,245	29,670

Share-based compensation expense of $5.9 million, $6.3 million and $6.0 million was recognized for the years ended December 31, 2022, 2021 and 2020, respectively, related to PBRSU and TBRSU awards to employees. The following table details expected additional share-based compensation expense related to PBRSUs and TBRSUs currently outstanding:

(In thousands)
2023	$	4,375
2024	2,869
2025	1,200
2026	193
Total	$	8,637

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Benefit Plan

12 Months Ended

Dec. 31, 2022

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Benefit Plans

Benefit Plans

The Corporation has a noncontributory Defined Benefit Pension Plan (the “Pension Plan”) covering substantially all of the employees of Park National Corporation and its subsidiaries. The Pension Plan provides benefits based on an employee’s years of service and compensation.

There was no pension contribution in 2022 or 2021 and no contribution is expected to be made in 2023.

Using accrual measurement dates of December 31, 2022 and 2021, plan assets and benefit obligation activity for the Pension Plan are listed below:

(In thousands)	2022		2021
Change in fair value of plan assets
Fair value at beginning of measurement period	$	263,473	$	230,442
Actual return on plan assets	(37,319)		48,138
Benefits paid	(17,016)		(15,107)
Fair value at end of measurement period	$	209,138	$	263,473
Change in benefit obligation
Projected benefit obligation at beginning of measurement period	$	182,964	$	184,410
Service cost	9,749		9,916
Interest cost	5,705		5,359
Plan amendments	558		—
Actuarial loss	(54,566)		(1,614)
Benefits paid	(17,016)		(15,107)
Projected benefit obligation at the end of measurement period	$	127,394	$	182,964
Funded status at end of year (fair value of plan assets less benefit obligation)	$	81,744	$	80,509

The decrease in the projected benefit obligation ("PBO") from $183.0 million as of December 31, 2021 to $127.4 million as of December 31, 2022, was the result of an increase in the discount rate from 3.23% to 5.32% and assumption updates for IRS mortality tables, partially offset by demographic losses driven by termination experience, salary increases greater than assumed, and the impact of plan amendments.

The asset allocation for the Pension Plan as of each measurement date, by asset category, was as follows:

 

		Percentage of Plan Assets
Asset category	Target Allocation	2022		2021
Equity securities	50% - 100%	84	%	82	%
Fixed income and cash equivalents	remaining balance	16	%	18	%
Total		100	%	100	%

The investment policy, as established by the Retirement Plan Committee, is to invest assets according to the target allocation stated above. Assets will be reallocated periodically based on the investment strategy of the Retirement Plan Committee. The investment policy is reviewed periodically.

The expected long-term rate of return on plan assets used to measure the benefit obligation was 6.92% at both December 31, 2022 and December 31, 2021. This return was based on the expected long-term return of each of the asset categories, weighted based on the median of the target allocation for each class.

The accumulated benefit obligation for the Pension Plan was $106.3 million and $146.2 million at December 31, 2022 and 2021, respectively.

On November 17, 2009, the Park Pension Plan completed the purchase of 115,800 common shares of Park for $7.0 million or $60.45 per share. At December 31, 2022 and 2021, the fair value of the 115,800 common shares held by the Pension Plan was $16.3 million, or $140.75 per share and $15.9 million, or $137.31 per share, respectively.

The weighted average assumptions used to determine benefit obligations at December 31, 2022, 2021 and 2020 were as follows:

 

	2022		2021		2020
Discount rate	5.32	%	3.23	%	3.00	%
Rate of compensation increase
Under age 30	8.25	%	8.25	%	8.25	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40-49	5.00	%	5.00	%	5.00	%
Ages 50-54	4.25	%	4.25	%	4.25	%
Ages 55-59	3.75	%	3.75	%	3.75	%
Ages 60-64	3.50	%	3.50	%	3.50	%
Ages 65 and over	3.25	%	3.25	%	3.25	%
Interest crediting rate	4.07	%	N/A		N/A

The estimated future pension benefit payments reflecting expected future service for the next ten years are shown below (in thousands):

2023	$	9,684
2024	9,769
2025	10,143
2026	10,111
2027	11,053
2028-2032	51,388
Total	$	102,148

The following table shows ending balances of accumulated other comprehensive loss at December 31, 2022 and 2021.

 

(In thousands)	2022		2021
Prior service (cost) credit	$	(436)	$	137
Net actuarial loss	(8,020)		(7,469)
Total	(8,456)		(7,332)
Deferred taxes	1,776		1,540
Accumulated other comprehensive loss	$	(6,680)	$	(5,792)

Using actuarial measurement dates of December 31 for 2022, 2021 and 2020, components of net periodic benefit income and other amounts recognized in other comprehensive (loss) income were as follows:

 

(In thousands)	2022		2021		2020		Affected Line Item in the Consolidated Statements of Income
Components of net periodic benefit income (loss) and other amounts recognized in other comprehensive (loss) income
Service cost	$	(9,749)	$	(9,916)	$	(8,319)	Employee benefits
Interest cost	(5,705)		(5,359)		(5,283)		Other components of net periodic benefit income
Expected return on plan assets	17,798		15,731		14,410		Other components of net periodic benefit income
Recognized net actuarial loss and prior service cost	15		(2,220)		(1,175)		Other components of net periodic benefit income
Net periodic benefit income (loss)	$	2,359	$	(1,764)	$	(367)
Net actuarial (loss) gain and prior service credit	$	(1,109)	$	34,019	$	(10,981)
Amortization of net (gain) loss	(15)		2,220		1,175
Total recognized in other comprehensive (loss) income	(1,124)		36,239		(9,806)
Total recognized in net benefit income (loss) and other comprehensive income (loss)	$	1,235	$	34,475	$	(10,173)

The weighted average assumptions used to determine net periodic benefit income (loss) for the years ended December 31, 2022, 2021 and 2020 are listed below:

 

	2022		2021		2020
Discount rate	3.23	%	3.00	%	3.53	%
Rate of compensation increase
Under age 30	8.25	%	8.25	%	10.00	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40-49	5.00	%	5.00	%	4.00	%
Ages 50-54	4.25	%	4.25	%	3.00	%
Ages 55-59	3.75	%	3.75	%	3.00	%
Ages 60-64	3.50	%	3.50	%	3.00	%
Ages 65 and over	3.25	%	3.25	%	3.00	%
Expected long-term return on plan assets	6.92	%	7.00	%	7.00	%

U.S. GAAP defines fair value as the price that would be received by Park for an asset or paid by Park to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date, using the most advantageous market for the asset or liability. The fair values of equity securities, consisting of mutual fund investments and common stock held by the Pension Plan, are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs). Additionally, due to their short-term nature, the fair value of interest bearing demand deposits is determined by reference to their face value (Level 1 inputs). Interest bearing time deposits, United States Government agency obligations and corporate bonds are valued by the trustee based on yields available on comparable securities of issuers with similar credit ratings as of the end of the year (Level 2 inputs). No investments were categorized as Level 3 inputs.

The fair value of the plan assets at December 31, 2022 and December 31, 2021, by asset class, is as follows.

	Fair Value Measurements				Fair Value Measurements
	at December 31, 2022, Using				at December 31, 2021, Using
(In thousands)	(Level 1)		(Level 2)		(Level 1)		(Level 2)
Interest-bearing account	$	1,959	$	3,910	$	3,222	$	4,731
Mutual funds	46,093		—		60,987		—
U.S. Government agency obligations	—		12,513		—		15,254
Corporate bonds	—		12,562		—		16,815
Common stocks	132,101		—		162,464		—
Total	$	180,153	$	28,985	$	226,673	$	36,800

Salary Deferral Plan

The Corporation has a voluntary salary deferral plan (the Corporation's Employees Stock Ownership Plan) covering substantially all of the employees of the Corporation and its subsidiaries. Eligible employees may contribute a portion of their compensation subject to a maximum statutory limitation. The Corporation provides a matching contribution established annually by the Corporation. Contribution expense for the Corporation was $4.6 million, $4.3 million, and $4.2 million for 2022, 2021 and 2020, respectively.

Supplemental Executive Retirement Plan

The Corporation has entered into Supplemental Executive Retirement Plan Agreements (the "SERP Agreements") with certain key officers of Park National Corporation and its subsidiaries which provide defined pension benefits in excess of limits imposed by federal income tax law. The accrued benefit cost for the SERP Agreements totaled $14.2 million and $13.4 million for 2022 and 2021, respectively, and is recorded within "Other liabilities" on the Consolidated Balance Sheet. The expense for the Corporation was as follows:

(In thousands)	2022		2021		2020		Affected Line Item in the Consolidated Statements of Income
Service cost	$	1,091	$	1,345	$	1,680	Employee benefits
Interest cost	564		510		403		Miscellaneous expense
Total SERP expense	$	1,655	$	1,855	$	2,083

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Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax assets and liabilities are as follows:

 

December 31 (In thousands)	2022		2021
Deferred tax assets:
Allowance for credit losses	$	18,615	$	18,153
Accumulated other comprehensive loss – Pension Plan	1,776		1,540
Accumulated other comprehensive loss – Unrealized losses on swaps	—		55
Accumulated other comprehensive loss – Unrealized losses on debt securities AFS	25,443		—
Deferred compensation	6,255		6,294
OREO valuation adjustments	11		909
Net deferred loan fees	1,898		2,569
Deferred contract bonus	317		432
Nonvested equity-based compensation	2,827		2,694
Net operating loss ("NOL") carryforward	2,654		3,197
Capital loss carryforward	299		—
Fixed assets	510		249
Operating lease liability	4,206		3,111
Partnership adjustments	—		69
Other	1,950		1,854
Total deferred tax assets	$	66,761	$	41,126
Deferred tax liabilities:
Accumulated other comprehensive loss - Unrealized gains on debt securities AFS	$	—	$	5,623
Deferred investment income	4,890		6,363
Pension Plan	19,678		19,182
MSRs	3,445		3,333
Partnership adjustments	884		—
Purchase accounting adjustments	952		880
Operating lease right-of-use asset	3,837		2,917
Lessor adjustments	2,325		2,764
Other	565		514
Total deferred tax liabilities	$	36,576	$	41,576
Net deferred tax asset (liability)	$	30,185	$	(450)

As of December 31, 2022 and 2021, Park had a net deferred tax asset balance related to federal NOL carryforwards of approximately $2.4 million and $2.8 million, respectively, which expire at various dates from 2031-2039. Park also had a net deferred tax asset balance related to state NOL carryforwards of approximately $0.3 million and $0.4 million at December 31, 2022 and 2021, respectively, which expire at various dates from 2030-2039.

Park performs an analysis to determine if a valuation allowance against deferred tax assets is required in accordance with U.S. GAAP.  Management determined that it was not required to establish a valuation allowance against the December 31, 2022 or 2021 deferred tax assets in accordance with U.S. GAAP since it was more likely than not that the deferred tax asset will be fully utilized in future periods.

The components of the provision for federal income taxes are shown below:

 

December 31, (In thousands)	2022		2021		2020
Currently payable
Federal	$	22,574	$	28,726	$	22,769
State	1,180		1,382		1,432
Amortization of qualified affordable housing projects	7,743		7,313		7,046
Deferred
Federal	464		(3,006)		(4,812)
State	147		(125)		287
Total	$	32,108	$	34,290	$	26,722

The following is a reconciliation of income tax expense to the amount computed at the statutory federal corporate income tax rate of 21% for the years ended December 31, 2022, 2021 and 2020.

 

	2022		2021		2020
Statutory federal corporate income tax rate	21.0	%	21.0	%	21.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest	(1.6)	%	(1.2)	%	(1.5)	%
Bank owned life insurance	(0.7)	%	(0.5)	%	(0.7)	%
Investments in qualified affordable housing projects, net of tax benefits	(0.8)	%	(0.8)	%	(1.1)	%
KSOP dividend deduction	(0.5)	%	(0.5)	%	(0.6)	%
Other	0.4	%	0.2	%	0.2	%
Effective Tax Rate	17.8	%	18.2	%	17.3	%

Park National Corporation and its subsidiaries do not pay state income tax to the state of Ohio, but pay a franchise tax based on equity. The franchise tax expense is included in "State tax expense" on Park’s Consolidated Statements of Income. Park is also subject to state income tax in various states, including North Carolina and South Carolina. State income tax expense is included in “Income taxes” on Park’s Consolidated Statements of Income. Park’s state income tax expense was $1.3 million, $1.0 million and $1.1 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.

(In thousands)	2022		2021		2020
January 1 Balance	$	339	$	633	$	954
Additions based on tax positions related to the current year	—		—		12
Additions for tax positions of prior years	25		10		—
Reductions for tax positions of prior years	—		—		—
Reductions due to statute of limitations	(295)		(304)		(333)
December 31 Balance	$	69	$	339	$	633

The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in the future periods at December 31, 2022, 2021 and 2020 was $0.1 million, $0.3 million and $0.6 million, respectively. Park does not expect the total amount of unrecognized tax benefits to significantly increase or decrease during 2023.

The income related to interest and penalties recorded on unrecognized tax benefits in the Consolidated Statements of Income for the years ended December 31, 2022, 2021, and 2020 was $56,000, $45,500, and $35,000, respectively. The amount accrued for interest and penalties at December 31, 2022, 2021 and 2020 was $9,500, $65,500 and $111,000, respectively.

Park National Corporation and its subsidiaries are subject to U.S. federal income tax and income tax in various state jurisdictions. The Corporation is subject to routine audits of tax returns by the Internal Revenue Service and states in which we conduct business. No material adjustments have been made on closed federal and state tax audits. Generally, all tax years ended prior to December 31, 2019 are closed to examination by federal and state taxing authorities.

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Other Comprehensive Income

12 Months Ended

Dec. 31, 2022

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Other Comprehensive Income (Loss)

Accumulated Other Comprehensive (Loss) Income

Other comprehensive (loss) income components, net of income tax, are shown in the following table for the years ended December 31, 2022, 2021 and 2020.

(in thousands)		Changes in Pension Plan assets and benefit obligations		Unrealized gains (losses) on AFS debt securities		Unrealized net holding loss on cash flow hedge		Total
Beginning balance at January 1, 2022		$	(5,792)	$	21,153	$	(206)	$	15,155
	Other comprehensive (loss) income before reclassifications	(876)		(116,867)		154		$	(117,589)
	Amounts reclassified from accumulated other comprehensive loss	(12)		—		52		$	40
Net current period other comprehensive (loss) income		$	(888)	$	(116,867)	$	206	$	(117,549)
Ending balance at December 31, 2022		$	(6,680)	$	(95,714)	$	—	$	(102,394)
Beginning balance at January 1, 2021		$	(34,421)	$	40,690	$	(698)	$	5,571
	Other comprehensive income (loss) before reclassifications	26,875		(19,537)		492		$	7,830
	Amounts reclassified from accumulated other comprehensive income	1,754		—		—		$	1,754
Net current period other comprehensive income (loss)		$	28,629	$	(19,537)	$	492	$	9,584
Ending balance at December 31, 2021		$	(5,792)	$	21,153	$	(206)	$	15,155
Beginning balance at January 1, 2020		$	(26,674)	$	17,539	$	(454)	$	(9,589)
	Other comprehensive (loss) income before reclassifications	(8,675)		25,747		(244)		$	16,828
	Amounts reclassified from accumulated other comprehensive income	928		(2,596)		—		$	(1,668)
Net current period other comprehensive (loss) income		$	(7,747)	$	23,151	$	(244)	$	15,160
Ending balance at December 31, 2020		$	(34,421)	$	40,690	$	(698)	$	5,571

The following table provides information concerning amounts reclassified out of accumulated other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020:

		Amount Reclassified from Accumulated Other Comprehensive (Loss) Income						Affected Line Item in the Consolidated Statements of Income
(In thousands)		2022		2021		2020
Amortization of defined benefit pension items
	Accretion of prior service credit	$	(15)	$	(15)	$	(15)	Employee benefits
	Amortization of net loss	—		2,235		1,190		Employee benefits
(Loss) Income before income taxes		(15)		2,220		1,175		Income before income taxes
	Income tax effect	(3)		466		247		Income taxes
	Net of income tax	$	(12)	$	1,754	$	928	Net income
Unrealized gains & losses on AFS debt securities
	Net gain on the sale of debt securities	$	—	$	—	$	(3,286)	Net gain on the sale of debt securities
Income before income taxes		—		—		(3,286)		Income before income taxes
	Income tax effect	—		—		(690)		Income taxes
	Net of income tax	$	—	$	—	$	(2,596)	Net income
Unrealized net holding loss on cash flow hedge
	Loss due to early termination of borrowing interest rate swap	$	66	$	—	$	—	Miscellaneous expense
Loss before income taxes		66		—		—		Income before income taxes
	Income tax effect	14		—		—		Income taxes
	Net of income tax	$	52	$	—	$	—	Net income

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Earnings Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

U.S. GAAP requires the reporting of basic and diluted earnings per common share. Basic earnings per common share excludes any dilutive effects of PBRSUs and TBRSUs.

The following table sets forth the computation of basic and diluted earnings per common share:

 

Year ended December 31 (In thousands, except share data)	2022		2021		2020
Numerator:
Net income	$	148,351	$	153,945	$	127,923
Denominator:
Weighted-average common shares outstanding	16,246,009		16,291,016		16,302,825
Effect of dilutive PBRSUs and TBRSUs	119,300		134,190		104,677
Weighted-average common shares outstanding adjusted for the effect of dilutive PBRSUs and TBRSUs	16,365,309		16,425,206		16,407,502
Earnings per common share:
Basic earnings per common share	$	9.13	$	9.45	$	7.85
Diluted earnings per common share	$	9.06	$	9.37	$	7.80

Park awarded 52,335, 61,890 and 62,265 PBRSUs to certain employees during the years ended December 31, 2022, 2021 and 2020, respectively.

During the years ended December 31, 2021 and 2020, Park repurchased 75,000 and 76,000 common shares, respectively, to fund the PBRSUs, TBRSUs and common shares awarded to directors of Park and to directors of PNB (and its divisions) and

repurchased 62,659 common shares during the year ended December 31, 2021 pursuant to Park's previously announced stock repurchase authorizations. There were no common shares repurchased during the year ended December 31, 2022.

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Dividend Restrictions	12 Months Ended
	Dec. 31, 2022
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]
Dividend Restrictions	Dividend RestrictionsBank regulators limit the amount of dividends a subsidiary bank can declare in any calendar year without obtaining prior approval. At December 31, 2022, approximately $121.4 million of the total shareholders’ equity of PNB was available for the payment of dividends to Park National Corporation, without approval by the applicable regulatory authorities.

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Financial Instruments With Off-Balance Sheet Risk and Financial Instruments With Concentrations of Credit Risk

12 Months Ended

Dec. 31, 2022

Risks and Uncertainties [Abstract]

Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentration of Credit Risk

Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk

The Corporation is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include loan commitments and standby letters of credit. The financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Financial Statements.

The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those financial instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Since many of the loan commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers.

The total amounts of off-balance sheet financial instruments with credit risk were as follows:

 

December 31 (In thousands)	2022		2021
Loan commitments	$	1,416,699	$	1,364,224
Standby letters of credit	30,468		18,216

The loan commitments are generally for variable rates of interest.

The Corporation grants retail, commercial and commercial real estate loans to customers primarily located in Ohio, Kentucky, North Carolina and South Carolina with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon the extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and real estate.

Although the Corporation has a diversified loan portfolio, a substantial portion of the borrowers’ ability to honor their contracts is dependent upon the economic conditions of the borrowers' respective geographic locations and industries.

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Loan Servicing

12 Months Ended

Dec. 31, 2022

Transfers and Servicing of Financial Assets [Abstract]

Loan Servicing

Loan Servicing

Park serviced sold mortgage loans of $2,051 million at December 31, 2022, compared to $2,132 million at December 31, 2021 and $1,972 million at December 31, 2020. At December 31, 2022, $3.2 million of the sold mortgage loans were sold with recourse compared to $3.3 million at December 31, 2021 and $1.7 million at December 31, 2020. Management closely monitors the delinquency rates on the mortgage loans sold with recourse. As of December 31, 2022 and 2021, management had established a reserve of $59,000 and $57,000, respectively, to account for future loan repurchases.

When Park sells mortgage loans with servicing rights retained, servicing rights are initially recorded at fair value. Park selected the “amortization method” as permissible within U.S. GAAP, whereby the servicing rights capitalized are amortized in proportion to and over the period of estimated future servicing income of the underlying loan. At the end of each reporting period, the carrying value of MSRs is assessed for impairment with a comparison to fair value. MSRs are carried at the lower of their amortized cost or fair value. The amortization of MSRs is included within "Other service income" in the Consolidated Statements of Income.

Activity for MSRs and the related valuation allowance follows:

 

December 31 (In thousands)	2022		2021		2020
MSRs:
Carrying amount, net, beginning of year	$	15,264	$	12,210	$	10,070
Additions	1,455		4,945		8,627
Amortization	(2,313)		(3,512)		(4,123)
Change in valuation allowance	1,386		1,621		(2,364)
Carrying amount, net, end of year	$	15,792	$	15,264	$	12,210
Valuation allowance:
Beginning of year	$	1,568	$	3,189	$	825
Change in valuation allowance	(1,386)		(1,621)		2,364
End of year	$	182	$	1,568	$	3,189

The fair value of MSRs was $17.4 million and $15.3 million at December 31, 2022 and 2021, respectively. The fair value of MSRs at December 31, 2022 was established using a discount rate of 12% and constant prepayment speeds ranging from 6.96% to 19.14%. The fair value of MSRs at December 31, 2021 was established using a discount rate of 12% and constant prepayment speeds ranging from 11.10% to 27.90%.

Servicing fees included in "Other service income" were $5.4 million, $5.3 million and $4.1 million for the years ended December 31, 2022, 2021 and 2020, respectively.

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Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Lessee, Operating Leases

Leases

Park is a lessee in several noncancellable operating lease arrangements, primarily for retail branches, administrative and warehouse buildings, ATMs, and certain office equipment within its Ohio, North Carolina, South Carolina, and Kentucky markets. Certain of these leases contain renewal options for periods ranging from one to five years. Park’s leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease arrangements include fixed payments plus, for many of Park’s real estate leases, variable payments such as Park's proportionate share of property taxes, insurance and common area maintenance.

Park's operating lease ROU asset and lease liability are presented in “Operating lease right-of-use asset" and "Operating lease liability," respectively, on Park's Consolidated Balance Sheets. The carrying amounts of Park's ROU asset and lease liability at December 31, 2022 were $17.6 million and $19.3 million, respectively. At December 31, 2021, the carrying amounts of Park's ROU assets and lease liability were $13.4 million and $14.3 million, respectively. Park's operating lease expense is recorded in "Occupancy expense" on the Company's Consolidated Statements of Income.

Other information related to operating leases for the years ended December 31, 2022, 2021 and 2020 follows:

(In thousands)	Year ended December 31, 2022		Year ended December 31, 2021		Year ended December 31, 2020
Lease cost
Operating lease cost	$	3,073	$	2,827	$	3,463
Sublease income	(252)		(253)		(352)
Total lease cost	$	2,821	$	2,574	$	3,111
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,116	$	3,199	$	3,553
ROU assets obtained in exchange for new operating lease liabilities	$	7,867	$	1,190	$	7,821
Reductions to ROU assets resulting from reductions to lease obligations	$	(2,812)	$	(2,865)	$	(3,084)

Park's operating leases had a weighted average remaining term of 10.0 years and 6.8 years at December 31, 2022 and 2021, respectively. The weighted average discount rate of Park's operating leases was 3.3% and 2.3% at December 31, 2022 and 2021, respectively.

Undiscounted cash flows included in lease liabilities at December 31, 2022 have expected contractual payments as follows:

(In thousands)	December 31, 2022
2023	$	3,599
2024	2,485
2025	2,142
2026	2,097
2027	2,030
Thereafter	11,020
Total undiscounted minimum lease payments	$	23,373
Less: imputed interest	(4,082)
Total lease liabilities	$	19,291

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Fair Value

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Values

Fair Value

The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that Park uses to measure fair value are as follows:

•Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that Park has the ability to access as of the measurement date.

•Level 2: Level 1 inputs for assets or liabilities that are not actively traded. Also consists of an observable market price for a similar asset or liability. This includes the use of “matrix pricing” to value debt securities absent the exclusive use of quoted prices.

•Level 3: Consists of unobservable inputs that are used to measure fair value when observable market inputs are not available. This could include the use of internally developed models, financial forecasting and similar inputs.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the balance sheet date. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and Park must use other valuation methods to develop a fair value. The fair value of individually evaluated collateral dependent loans is typically based on the fair

value of the underlying collateral, which is estimated through third-party appraisals in accordance with Park's valuation requirements under its commercial and real estate loan policies.

Assets and Liabilities Measured at Fair Value on a Recurring Basis:

The following table presents assets and liabilities measured at fair value on a recurring basis:

 

Fair Value Measurements at December 31, 2022 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2022
Assets
Investment securities:
Obligations of U.S. Government sponsored entities	$	—	$	37,213	$	—	$	37,213
Obligations of states and political subdivisions	—		406,711		—		406,711
U.S. Government sponsored entities’ asset-backed securities	—		756,761		—		756,761
Collateralized loan obligations	—		516,539		—		516,539
Corporate debt securities	—		9,472		7,000		16,472
Equity securities	1,420		—		439		1,859
Mortgage loans held for sale	—		2,149		—		2,149
Mortgage IRLCs	—		46		—		46
Loan interest rate swaps	—		1,508		—		1,508
Liabilities
Fair value swap	$	—	$	—	$	243	$	243
Loan interest rate swaps	—		1,508		—		1,508

 

Fair Value Measurements at December 31, 2021 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2021
Assets
Investment securities:
Obligations of states and political subdivisions	$	—	$	389,591	$	—	$	389,591
U.S. Government sponsored entities’ asset-backed securities	—		854,463		—		854,463
Collateralized loan obligations	—		498,674		—		498,674
Corporate debt securities	—		11,412		—		11,412
Equity securities	1,630		—		499		2,129
Mortgage loans held for sale	—		9,387		—		9,387
Mortgage IRLCs	—		333		—		333
Loan interest rate swaps	—		1,952		—		1,952
Liabilities
Fair value swap	$	—	$	—	$	226	$	226
Borrowing interest rate swap	—		262		—		262
Loan interest rate swaps	—		1,952		—		1,952

The following methods and assumptions were used by the Company in determining the fair value of the financial assets and liabilities discussed above:

Interest rate swaps:  The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2).

Investment securities: Fair values for investment securities are based on quoted market prices, where available (Level 1). If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows (Level 3).

Fair value swap: The fair value of the swap agreement entered into with the purchaser of the Visa Class B shares represents an internally developed estimate of the exposure based upon probability-weighted potential Visa litigation losses and is classified as Level 3.

Mortgage interest rate lock commitments: Mortgage IRLCs are based on current secondary market pricing and are classified as Level 2.

Mortgage loans held for sale: Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale are estimated using market prices for similar product types and, therefore, are classified in Level 2.

The following tables present a reconciliation of the beginning and ending balances of the Level 3 inputs for the years ended December 31, 2022 and 2021, for financial instruments measured on a recurring basis and classified as Level 3:

 

Level 3 Fair Value Measurements
(In thousands)	Corporate debt securities		Equity securities		Fair value swap
Balance at January 1, 2022	$	—	$	499	$	(226)
Total Losses
Included in other income / expense	—		(60)		(221)
Transfers into level 3	7,000		—		—
Purchases, sales, issuances and settlements, other, net	—		—		204
Balance at December 31, 2022	$	7,000	$	439	$	(243)
Balance at January 1, 2021	$	—	$	485	$	(226)
Total Gains
Included in other income	—		14		—
Balance at December 31, 2021	$	—	$	499	$	(226)

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis:

The following methods and assumptions were used by the Company in determining the fair value of assets and liabilities measured at fair value on a nonrecurring basis as described below:

Individually evaluated collateral dependent loans: When a loan is individually evaluated, it is valued at the lower of cost or fair value. Collateral dependent loans which are individually evaluated and carried at fair value have been partially charged off or receive specific allocations of the allowance for credit losses. For collateral dependent loans, fair value is generally based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value. Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and the client’s business, resulting in a Level 3 fair value classification. Individually evaluated loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Additionally, updated independent valuations are obtained annually for all collateral dependent loans in accordance with Company policy.

OREO: Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value.

Appraisals for both individually evaluated collateral dependent loans and OREO are performed by licensed appraisers. Appraisals are generally obtained to support the fair value of collateral. In general, there are three types of appraisals received by the Company: real estate appraisals, income approach appraisals, and lot development loan appraisals. These are discussed below:

•Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. Appraisers may make adjustments to the sales prices of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management generally applies a 15% discount to real estate appraised values which management expects will cover all disposition costs (including selling costs). This 15% discount is based on historical discounts to appraised values on sold OREO properties.

•Income approach appraisals typically incorporate the annual net operating income of the business divided by an appropriate capitalization rate, as determined by the appraiser. Management generally applies a 15% discount to income approach appraised values which management expects will cover all disposition costs (including selling costs).

•Lot development loan appraisals are typically performed using a discounted cash flow analysis. Appraisers determine an anticipated absorption period and a discount rate that takes into account an investor’s required rate of return based on recent comparable sales. Management generally applies a 6% discount to lot development appraised values, which is an additional discount above the net present value calculation included in the appraisal, to account for selling costs.

Other repossessed assets: Other repossessed assets are initially recorded at fair value less costs to sell when acquired. The carrying value of other repossessed assets is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. At December 31, 2021, other repossessed assets primarily consisted of aircraft acquired as part of a loan workout. Fair value was based on Aircraft Bluebook and VREF Aircraft Value Reference values based on the model of aircraft and adjustments for flight hours, features and other variables. Such adjustments resulted in a Level 3 classification of the inputs for determining fair value. There were no repossessed assets carried at fair value at December 31, 2022.

MSRs: MSRs are carried at the lower of cost or fair value. MSRs do not trade in active, open markets with readily observable prices. For example, sales of MSRs do occur, but precise terms and conditions typically are not readily available. As such, management, with the assistance of a third-party specialist, determines fair value based on the discounted value of the future cash flows estimated to be received. Significant inputs include the discount rate and assumed prepayment speeds. The calculated fair value is then compared to market values where possible to ascertain the reasonableness of the valuation in relation to current market expectations for similar products. Accordingly, MSRs are classified as Level 2.

The following tables present assets and liabilities measured at fair value on a nonrecurring basis. Individually evaluated collateral dependent loans secured by real estate are carried at fair value if they have been charged down to fair value or if a specific valuation allowance has been established. As of December 31, 2022 and 2021, there were no PCD loans carried at fair value. A new cost basis is established at the time a property is initially recorded in OREO. OREO properties are carried at fair value if a devaluation has been taken with respect to the property's value subsequent to the initial measurement.

Fair Value Measurements at December 31, 2022 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2022
Individually evaluated collateral dependent loans recorded at fair value:
Commercial real estate	$	—	$	—	$	5,573	$	5,573
Residential real estate	—		—		200		200
Total individually evaluated collateral dependent loans recorded at fair value	$	—	$	—	$	5,773	$	5,773
MSRs	$	—	$	1,717	$	—	$	1,717
OREO recorded at fair value	$	—	$	—	$	—	$	—
Other repossessed assets	$	—	$	—	$	—	$	—

Fair Value Measurements at December 31, 2021 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2021
Individually evaluated collateral dependent loans recorded at fair value:
Commercial real estate	$	—	$	—	$	831	$	831
Residential real estate	—		—		272		272
Total individually evaluated collateral dependent loans recorded at fair value	$	—	$	—	$	1,103	$	1,103
MSRs	$	—	$	13,482	$	—	$	13,482
OREO recorded at fair value:
Residential real estate	—		—		775		775
Total OREO recorded at fair value	$	—	$	—	$	775	$	775
Other repossessed assets	$	—	$	—	$	2,750	$	2,750

The table below provides additional detail on those individually evaluated loans which are recorded at fair value as well as the remaining individually evaluated loan portfolio not included above. The remaining individually evaluated loans consist of 1) loans which are not collateral dependent, 2) loans which are not secured by real estate, and 3) loans carried at cost as the fair value of the underlying collateral or the present value of expected future cash flows on each of the loans exceeded the book value for each respective credit.

	December 31, 2022
(In thousands)	Loan Balance		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Total individually evaluated collateral dependent loans recorded at fair value	$	5,903	$	1,523	$	130	$	5,773
Remaining individually evaluated loans	72,438		252		3,436		69,002
Total individually evaluated loans	$	78,341	$	1,775	$	3,566	$	74,775

	December 31, 2021
(In thousands)	Recorded Investment		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Total individually evaluated collateral dependent loans recorded at fair value	$	1,291	$	240	$	188	$	1,103
Remaining individually evaluated loans	73,211		384		1,428		71,783
Total individually evaluated loans	$	74,502	$	624	$	1,616	$	72,886

The (expense) income from credit adjustments related to individually evaluated/impaired loans carried at fair value for the years ended December 31, 2022, 2021 and 2020 was $(0.9) million, $0.5 million, and $(4.7) million, respectively.

MSRs totaled $15.8 million at December 31, 2022. Of this $15.8 million MSR carrying balance, $1.7 million was recorded at fair value and included a valuation allowance of $0.2 million. The remaining $14.1 million was recorded at cost, as the fair value exceeded cost at December 31, 2022. At December 31, 2021, MSRs totaled $15.3 million. Of this $15.3 million MSR carrying balance, $13.5 million was recorded at fair value and included a valuation allowance of $1.6 million. The remaining $1.8 million was recorded at cost, as the fair value exceeded cost at December 31, 2021. The income (expense) related to MSRs carried at fair value for the years ended December 31, 2022, 2021 and 2020 was $1.4 million, $1.6 million and $(2.4) million, respectively.

Total OREO held by Park at December 31, 2022 and 2021 was $1.4 million and $0.8 million, respectively. At December 31, 2022, there was no OREO held by Park that was carried at fair value due to fair value adjustments made subsequent to the initial OREO measurement. At December 31, 2021, all of Park's OREO was carried at fair value. The net income related to OREO fair value adjustments was $11.3 million, $32,000 and $185,000 for the years ended December 31, 2022, 2021 and 2020, respectively.

Other repossessed assets totaled $0.6 million at December 31, 2022, of which there were no repossessed assets recorded at fair value. Other repossessed asset totaled $3.3 million at December 31, 2021, of which $2.8 million were recorded at fair value. There was no expense related to fair value adjustments on other repossessed assets during the year ended December 31, 2022. The net expense related to fair value adjustments on other repossessed assets was $414,000 and $435,000 for the years ended December 31, 2021 and December 31, 2020, respectively.

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2022 and December 31, 2021:

December 31, 2022
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated collateral dependent loans:
Commercial real estate	$	5,573	Sales comparison approach	Adj to comparables	0.0% - 202.0% (19.4%)
			Income approach	Capitalization rate	7.0% - 10.0% (7.9%)
			Cost approach	Entrepreneurial profit	10.0% - 12.0% (11.4%)
			Cost approach	Accumulated depreciation	38.8% (38.8%)
Residential real estate	$	200	Sales comparison approach	Adj to comparables	1.9% - 119.8% (17.4%)

December 31, 2021
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated collateral dependent loans:
Commercial real estate	$	831	Sales comparison approach	Adj to comparables	0.0% - 232.0% (28.3%)
Residential real estate	$	272	Sales comparison approach	Adj to comparables	0.5% - 78.6% (11.6%)
			Cost approach	Accumulated depreciation	8.3% (8.3%)
Other real estate owned:
Residential real estate	$	775	Sales comparison approach	Adj to comparables	5.0% - 32.5% (19.1%)

Assets Measured at Net Asset Value:

Park's portfolio of Partnership Investments are valued using the NAV practical expedient in accordance with ASC 820.

At December 31, 2022 and December 31, 2021, Park had Partnerships Investments with a NAV of $24.4 million and $18.0 million, respectively. At December 31, 2022 and December 31, 2021, Park had $20.3 million and $8.4 million in unfunded commitments related to these Partnership Investments. For the years ended December 31, 2022, 2021 and 2020, Park recognized income of $2.4 million, $4.5 million and $2.4 million, respectively, related to these Partnership Investments.

The fair value of certain financial instruments at December 31, 2022 and December 31, 2021 was as follows:

	December 31, 2022
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	189,728	$	189,728	$	—	$	—	$	189,728
Investment securities (1)	1,733,696		—		1,726,696		7,000		1,733,696
Other investment securities (2)	1,859		1,420		—		439		1,859
Mortgage loans held for sale	2,149		—		2,149		—		2,149
Mortgage IRLCs	46		—		46		—		46
Individually evaluated loans carried at fair value	5,773		—		—		5,773		5,773
Other loans, net	7,048,544		—		—		6,918,326		6,918,326
Loans receivable, net	$	7,056,512	$	—	$	2,195	$	6,924,099	$	6,926,294
Financial liabilities:
Time deposits	$	554,445	$	—	$	552,443	$	—	$	552,443
Other	1,325		1,325		—		—		1,325
Deposits (excluding demand deposits)	$	555,770	$	1,325	$	552,443	$	—	$	553,768
Short-term borrowings	$	227,342	$	—	$	227,342	$	—	$	227,342
Subordinated notes	188,667		—		177,928		—		177,928
Derivative financial instruments - assets:
Loan interest rate swaps	$	1,508	$	—	$	1,508	$	—	$	1,508
Derivative financial instruments - liabilities:
Fair value swap	$	243	$	—	$	—	$	243	$	243
Loan interest rate swaps	1,508		—		1,508		—		1,508

(1) Includes debt securities AFS.

(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.

	December 31, 2021
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	219,180	$	219,180	$	—	$	—	$	219,180
Investment securities (1)	1,754,140		—		1,754,140		—		1,754,140
Other investment securities (2)	2,129		1,630		—		499		2,129
Mortgage loans held for sale	9,387		—		9,387		—		9,387
Mortgage IRLCs	333		—		333		—		333
Individually evaluated loans carried at fair value	1,103		—		—		1,103		1,103
Other loans, net	6,777,102		—		—		6,783,848		6,783,848
Loans receivable, net	$	6,787,925	$	—	$	9,720	$	6,784,951	$	6,794,671
Financial liabilities:
Time deposits	$	711,660	$	—	$	714,307	$	—	$	714,307
Other	1,465		1,465		—		—		1,465
Deposits (excluding demand deposits)	$	713,125	$	1,465	$	714,307	$	—	$	715,772
Short-term borrowings	$	238,786	$	—	$	238,786	$	—	$	238,786
Subordinated notes	188,210		—		207,912		—		207,912
Derivative financial instruments - assets:
Loan interest rate swaps	$	1,952	$	—	$	1,952	$	—	$	1,952
Derivative financial instruments - liabilities:
Fair value swap	$	226	$	—	$	—	$	226	$	226
Borrowing interest rate swap	262		—		262		—		262
Loan interest rate swaps	1,952		—		1,952		—		1,952

(1) Includes debt securities AFS.

(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.

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Capital Ratios

12 Months Ended

Dec. 31, 2022

Banking Regulation, Total Capital [Abstract]

Capital Ratios

Capital RatiosFinancial institution regulators have established guidelines for minimum capital ratios for banks, thrifts and bank holding companies. Park has elected not to include the net unrealized gain or loss on debt securities AFS in computing regulatory capital. Park has adopted the Basel III regulatory capital framework as approved by the federal banking agencies. Under the Basel III regulatory capital framework, in order to avoid limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers, Park must hold a capital conservation buffer of 2.50% above the adequately capitalized risk-based capital ratios. The amounts shown below as the adequately capitalized ratio plus capital conservation buffer include the 2.50% buffer. The Federal Reserve Board has also adopted requirements Park must maintain to be deemed "well-capitalized" and to remain a financial holding company.

Each of PNB and Park met all of the well-capitalized ratio guidelines applicable to it at December 31, 2022. The following table indicates the capital ratios for PNB and Park at December 31, 2022 and 2021.

 

	As of December 31, 2022
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
PNB	8.34	%	10.69	%	10.69	%	12.15	%
Park	9.90	%	12.76	%	12.57	%	16.07	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well-capitalized ratio - PNB	5.00	%	8.00	%	6.50	%	10.00	%
Well-capitalized ratio - Park	N/A		6.00	%	N/A		10.00	%

 

	As of December 31, 2021
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
PNB	8.58	%	11.05	%	11.05	%	12.56	%
Park	9.77	%	12.57	%	12.37	%	16.05	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well-capitalized ratio - PNB	5.00	%	8.00	%	6.50	%	10.00	%
Well-capitalized ratio - Park	N/A		6.00	%	N/A		10.00	%

The following table reflects various measures of capital for Park and PNB:

 

					To Be Adequately Capitalized				To Be Well-Capitalized
(In thousands)	Actual Amount		Ratio		Amount		Ratio		Amount		Ratio
At December 31, 2022
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	965,470	12.15	%	$	635,769	8.00	%	$	794,711	10.00	%
Park	1,283,409		16.07	%	639,102		8.00	%	798,877		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	849,886	10.69	%	$	476,827	6.00	%	$	635,769	8.00	%
Park	1,019,149		12.76	%	479,326		6.00	%	479,326		6.00	%
Leverage Ratio (to average total assets)
PNB	$	849,886	8.34	%	$	407,836	4.00	%	$	509,795	5.00	%
Park	1,019,149		9.90	%	411,838		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	$	849,886	10.69	%	$	357,620	4.50	%	$	516,562	6.50	%
Park	1,004,149		12.57	%	359,495		4.50	%	N/A		N/A
At December 31, 2021
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	937,438	12.56	%	$	597,094	8.00	%	$	746,368	10.00	%
Park	1,202,225		16.05	%	599,102		8.00	%	748,878		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	825,045	11.05	%	$	447,821	6.00	%	$	597,094	8.00	%
Park	941,536		12.57	%	449,327		6.00	%	449,327		6.00	%
Leverage Ratio (to average total assets)
PNB	$	825,045	8.58	%	$	384,582	4.00	%	$	480,728	5.00	%
Park	941,536		9.77	%	385,313		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	825,045		11.05	%	335,866		4.50	%	485,139		6.50	%
Park	926,536		12.37	%	336,995		4.50	%	N/A		N/A

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Segment Reporting

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

The Corporation is a financial holding company headquartered in Newark, Ohio. The reportable segment for the Corporation is its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio). "All Other", which primarily consists of Park as the "Parent Company", SEPH and GFSC, is shown to reconcile the segment totals to the Consolidated Balance Sheets and the Consolidated Statements of Income.

U.S. GAAP requires management to disclose information about the different types of business activities in which a company engages and also information on the different economic environments in which a company operates, so that the users of the financial statements can better understand a company’s performance, better understand the potential for future cash flows, and make more informed judgments about the company as a whole. Park has one reportable segment as: (i) discrete financial

information is available for this reportable segment and (ii) this segment is aligned with internal reporting to Park’s Chief Executive Officer, who is the chief operating decision-maker.  

Operating results for the year ended December 31, 2022 (In thousands)
	PNB		All Other		Total
Net interest income	$	350,646	$	(3,587)	$	347,059
Provision for (recovery of) credit losses	5,834		(1,277)		4,557
Other income	115,211		20,724		135,935
Other expense	283,670		14,308		297,978
Income before income taxes	176,353		4,106		180,459
Income tax expense (benefit)	33,110		(1,002)		32,108
Net income	$	143,243	$	5,108	$	148,351
Balances at December 31, 2022
Assets	$	9,815,951	$	39,042	$	9,854,993
Loans	7,141,362		529		7,141,891
Deposits	8,534,320		(299,605)		8,234,715

Operating results for the year ended December 31, 2021 (In thousands)
	PNB		All Other		Total
Net interest income	$	328,398	$	1,495	$	329,893
Recovery of credit losses	(8,554)		(3,362)		(11,916)
Other income	126,802		3,142		129,944
Other expense	266,678		16,840		283,518
Income (loss) before income taxes	197,076		(8,841)		188,235
Income tax expense (benefit)	37,615		(3,325)		34,290
Net income (loss)	$	159,461	$	(5,516)	$	153,945
Balances at December 31, 2021
Assets	$	9,538,217	$	22,037	$	9,560,254
Loans	6,868,935		2,187		6,871,122
Deposits	8,157,720		(253,192)		7,904,528

Operating results for the year ended December 31, 2020 (In thousands)
	PNB		All Other		Total
Net interest income	$	326,375	$	1,255	$	327,630
Provision for (recovery of) credit losses	30,813		(18,759)		12,054
Other income	124,231		1,433		125,664
Other expense	268,938		17,657		286,595
Income before income taxes	150,855		3,790		154,645
Income tax expense (benefit)	27,125		(403)		26,722
Net income	$	123,730	$	4,193	$	127,923
Balances at December 31, 2020
Assets	$	9,236,915	$	42,106	$	9,279,021
Loans	7,165,840		11,945		7,177,785
Deposits	7,820,983		(248,625)		7,572,358

The operating results in the "All Other" column are used to reconcile the segment totals to the Consolidated Statements of Income. The reconciling amounts for consolidated total assets, loans and deposits consist of the elimination of intersegment

borrowings, intersegment loans, intersegment deposits, and the assets of the Parent Company, SEPH and GFSC which were not eliminated.

The following is a reconciliation of financial information for the reportable segments to the Corporation’s consolidated totals:

 

	2022
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	350,646	$	13,819	$	269,851	$	33,110	$	9,815,951	$	8,534,320
Elimination of intersegment items	1,250		—		—		—		(3,042)		(299,993)
"All Other" totals - not eliminated	(4,837)		—		14,308		(1,002)		42,084		388
Totals	$	347,059	$	13,819	$	284,159	$	32,108	$	9,854,993	$	8,234,715

 

	2021
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	328,398	$	13,265	$	253,413	$	37,615	$	9,538,217	$	8,157,720
Elimination of intersegment items	1,250		—		—		—		(1,413)		(254,060)
"All Other" totals - not eliminated	245		2		16,838		(3,325)		23,450		868
Totals	$	329,893	$	13,267	$	270,251	$	34,290	$	9,560,254	$	7,904,528

 

	2020
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	326,375	$	10,803	$	258,135	$	27,125	$	9,236,915	$	7,820,983
Elimination of intersegment items	1,250		—		—		—		(1,028)		(250,965)
"All Other" totals - not eliminated	5		11		17,646		(403)		43,134		2,340
Totals	$	327,630	$	10,814	$	275,781	$	26,722	$	9,279,021	$	7,572,358

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Parent Company Statements

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Parent Company Statements

Parent Company Statements

The Parent Company statements should be read in conjunction with the consolidated financial statements and the information set forth below. Investments in subsidiaries are accounted for using the equity method of accounting.

Cash represents non-interest bearing deposits with PNB. Net cash provided by operating activities reflects cash payments (received from subsidiaries) partially offset by cash payments to government entities for income taxes of $2.2 million, $4.3 million and $5.6 million in 2022, 2021 and 2020, respectively.

Condensed Balance Sheets
December 31, 2022 and 2021
(In thousands)	2022		2021
Assets:
Cash	$	274,464	$	243,531
Investment in subsidiaries	941,826		1,020,556
Debentures receivable from PNB	25,000		25,000
Other investments	1,177		1,384
Other assets	36,636		18,852
Total assets	$	1,279,103	$	1,309,323
Liabilities:
Subordinated notes	$	188,667	$	188,210
Other payables to subsidiaries	3,625		—
Other liabilities	17,585		10,354
Total liabilities	$	209,877	$	198,564
Total shareholders’ equity	$	1,069,226	$	1,110,759
Total liabilities and shareholders’ equity	$	1,279,103	$	1,309,323

 

Condensed Statements of Income
for the years ended December 31, 2022, 2021 and 2020
(In thousands)	2022		2021		2020
Income:
Dividends from subsidiaries	$	120,000	$	115,500	$	97,000
Interest and dividends	1,250		1,250		1,250
Other	2,478		2,016		98
Total income	123,728		118,766		98,348
Expense:
Interest expense	$	8,833	$	8,887	$	4,311
Other, net	10,504		10,707		12,234
Total expense	19,337		19,594		16,545
Income before income taxes and equity in undistributed income of subsidiaries	$	104,391	$	99,172	$	81,803
Income tax benefit	5,142		4,897		4,390
Income before equity in undistributed income of subsidiaries	109,533		104,069		86,193
Equity in undistributed income of subsidiaries	38,818		49,876		41,730
Net income	$	148,351	$	153,945	$	127,923
Other comprehensive (loss) income (1)	(117,549)		9,584		15,160
Comprehensive income	$	30,802	$	163,529	$	143,083

(1) See Consolidated Statements of Comprehensive Income for other comprehensive (loss) income detail.

Statements of Cash Flows
for the years ended December 31, 2022, 2021 and 2020
(In thousands)	2022		2021		2020
Operating activities:
Net income	$	148,351	$	153,945	$	127,923
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income of subsidiaries	(38,818)		(49,876)		(41,730)
Compensation expense for issuance of treasury shares to directors	1,320		1,676		1,274
Share-based compensation expense	5,879		6,345		5,998
Gain (loss) on equity securities, net	207		(1,218)		245
(Increase) decrease in other assets	(2,514)		8,249		6,632
Increase (decrease) in other liabilities	4,896		(2,407)		(6,325)
Net cash provided by operating activities	119,321		116,714		94,017
Investing activities:
Proceeds from sales of securities	—		934		—
Other, net	(9,021)		2,332		(2,621)
Net cash (used in) provided by investing activities	(9,021)		3,266		(2,621)
Financing activities:
Cash dividends paid	(76,604)		(74,306)		(70,353)
Proceeds from issuance of long-term debt	—		—		172,620
Repayment of long-term debt	—		(32,500)		(10,000)
Repurchase of treasury shares	—		(16,048)		(7,507)
Cash payment for fractional shares	(2)		(6)		(3)
Value of common shares withheld to pay employee income taxes	(2,761)		(2,403)		(1,002)
Net cash (used in) provided by financing activities	(79,367)		(125,263)		83,755
Increase (decrease) in cash	30,933		(5,283)		175,151
Cash at beginning of year	243,531		248,814		73,663
Cash at end of year	$	274,464	$	243,531	$	248,814

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Revenue from Contract with Customer

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue from Contracts with CustomersAll of Park's revenue from contracts with customers within the scope of ASC 606 is recognized within "Other income" in the Consolidated Statements of Income.

The following table presents the Corporation's sources of other income by revenue stream and operating segment for the years ended December 31, 2022, 2021, and 2020:

	Year ended December 31, 2022
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	10,091	$	—	$	10,091
Employee benefit and retirement-related accounts	9,698		—		9,698
Investment management and investment advisory agency accounts	12,442		—		12,442
Other	1,860		—		1,860
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	6,095		—		6,095
Demand deposit account (DDA) charges	3,439		—		3,439
Other	557		—		557
Other service income (1)
Credit card	2,808		—		2,808
HELOC	397		—		397
Installment	163		—		163
Real estate	9,952		—		9,952
Commercial	1,214		761		1,975
Debit card fee income	26,046		—		26,046
Bank owned life insurance income (2)	4,656		1,444		6,100
ATM fees	2,273		—		2,273
Gain on the sale of OREO, net	4		5,607		5,611
OREO valuation markup	30		12,009		12,039
Gain on equity securities, net (2)	2,068		887		2,955
Other components of net periodic pension benefit income (2)	11,819		289		12,108
Miscellaneous (3)	9,599		(273)		9,326
Total other income	$	115,211	$	20,724	$	135,935

(1) Of the $15.3 million of aggregate revenue included within "Other service income", approximately $5.6 million is within the scope of ASC 606, with the remaining $9.7 million consisting primarily of residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $9.3 million, all of which are within the scope of ASC 606.

	Year ended December 31, 2021
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	10,264	$	—	$	10,264
Employee benefit and retirement-related accounts	9,705		—		9,705
Investment management and investment advisory agency accounts	12,620		—		12,620
Other	1,860		—		1,860
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	5,244		—		5,244
Demand deposit account (DDA) charges	3,074		—		3,074
Other	514		—		514
Other service income (1)
Credit card	2,559		4		2,563
HELOC	389		—		389
Installment	148		—		148
Real estate	24,907		—		24,907
Commercial	1,280		525		1,805
Debit card fee income	25,865		—		25,865
Bank owned life insurance income (2)	4,202		695		4,897
ATM fees	2,379		—		2,379
Loss on the sale of OREO, net	(4)		—		(4)
OREO valuation markup	64		—		64
Gain on equity securities, net (2)	3,793		1,218		5,011
Other components of net periodic pension benefit income (2)	7,946		206		8,152
Miscellaneous (3)	9,993		494		10,487
Total other income	$	126,802	$	3,142	$	129,944

(1) Of the $29.8 million of revenue included within "Other service income", approximately $5.3 million is within the scope of ASC 606, with the remaining $24.5 million consisting primarily of residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $10.5 million, all of which are within the scope of ASC 606.

	Year ended December 31, 2020
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	8,761	$	—	$	8,761
Employee benefit and retirement-related accounts	7,921		—		7,921
Investment management and investment advisory agency accounts	10,652		—		10,652
Other	1,539		—		1,539
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	4,999		—		4,999
Demand deposit account (DDA) charges	2,920		—		2,920
Other	526		—		526
Other service income (1)
Credit card	2,108		4		2,112
HELOC	424		—		424
Installment	165		—		165
Real estate	32,827		62		32,889
Commercial	1,493		528		2,021
Debit card fee income	22,160		—		22,160
Bank owned life insurance income (2)	4,521		268		4,789
ATM fees	1,773		—		1,773
Gain on the sale of OREO, net	836		371		1,207
OREO valuation markup	105		—		105
Net gain on sale of debt securities (2)	3,286		—		3,286
Gain (loss) on equity securities, net (2)	2,429		(247)		2,182
Other components of net periodic pension benefit income (2)	7,759		193		7,952
Miscellaneous (3)	7,027		254		7,281
Total other income	$	124,231	$	1,433	$	125,664

(1) Of the $37.6 million of revenue included within "Other service income", approximately $5.2 million is within the scope of ASC 606, with the remaining $32.4 million consisting primarily of residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $7.3 million, all of which are within the scope of ASC 606.

A description of Park's material revenue streams accounted for under ASC 606 follows:

Income from fiduciary activities (gross): Park earns fiduciary fee income and investment brokerage fees from its contracts with trust customers for various fiduciary and investment-related services. These fees are earned over time as the Company provides the contracted monthly and quarterly services and are generally assessed based on the market value of the trust assets.

Service charges on deposit accounts and ATM fees: The Corporation earns fees from the Corporation's deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering fees, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are generally recognized at the end of the month, representing the period over which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance.

Other service income: Other service income includes income from (1) the sale and servicing of loans sold to the secondary market, (2) incentive income from third-party credit card issuers, and (3) loan customers for various loan-related activities and services. Income related to the sale and servicing of loans sold to the secondary market is included within "Other service income", but is not within the scope of ASC 606. Services that fall within the scope of ASC 606 are recognized as revenue when the Company satisfies the Company's performance obligation to the customer.

Debit card fee income: Park earns interchange fees from debit cardholder transactions conducted primarily through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, net of card network fees, concurrently with the transaction processing services provided to the cardholder.

Gain or loss on sale of OREO, net: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of delivery of an executed deed. When Park finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform the buyer's obligation under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.

OREO valuation markup: The Corporation records an OREO valuation markup immediately prior to the transfer of a loan to OREO when the fair market value of the property less costs to sell exceeds the principal balance of the loan.

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Subsequent Events

12 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On February 28, 2023, Park National Bank reached an agreement with the DOJ to increase the efforts of Park National Bank to promote home lending in the Columbus, Ohio market. The agreement, which is reflected in the proposed consent order filed on February 28, 2023, in the U.S. District Court for the Southern District of Ohio (the “DOJ Consent Order”), serves to voluntarily resolve all claims of the U.S. alleging that Park National Bank’s mortgage lending practices within the Columbus, Ohio Metropolitan Statistical Area violated the Fair Housing Act and the Equal Credit Opportunity Act.

In accordance with the terms of the DOJ Consent Order, Park National Bank, will invest a minimum of $7.75 million over five years in a loan subsidy fund to increase credit opportunities for home mortgage loans, home improvement loans, home refinance loans and home equity loans and lines of credit for consumers applying for loans in majority-minority census tracts ("MMCTs") in Fairfield, Franklin, Hocking, Licking, Morrow and Perry counties in Ohio (the “Columbus Lending Area”). Park National Bank will also devote a minimum of $500,000 over five years toward one or more community development partnership programs that provide services to residents of MMCTs in the Columbus Lending Area related to credit, financial education, homeownership and foreclosure prevention; and at least $750,000 over five years toward advertising, community outreach, consumer financial education and credit counseling in the Columbus Lending Area. Park National Bank will also establish one new mortgage loan production office and one new full-service branch in MMCTs in the Columbus Lending Area and hire four lenders, one of whom will be Spanish-speaking, focused on serving these communities. In addition, Park National Bank will continue to maintain, throughout the term of the DOJ Consent Order, Park National Bank’s full-time Director of Community Home Lending and Development position, who will oversee Park National Bank’s lending in MMCTs in the Columbus Lending Area.

The DOJ Consent Order must be approved by the U.S. District Court for the Southern District of Ohio, Western Division, and once approved and entered by that Court, the DOJ Consent Order will resolve all claims by the U.S. against Park National Bank.

Park is committed to investing at least $9.0 million over five years and will record the related expenses incurred in the period in which the associated activities occur.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of Park National Corporation and its subsidiaries (“Park”, the “Company” or the “Corporation”), unless the context otherwise requires. Material intercompany accounts and transactions have been eliminated.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

The COVID-19 pandemic and subsequent economic uncertainty have caused significant, unprecedented disruption around the world that has affected daily living and negatively impacted the global economy. Additionally, geopolitical conflict (including the conflict in Ukraine) and inflationary pressures have added uncertainty to the overall economic environment. The effects of the COVID-19 pandemic, geopolitical conflict, and inflationary pressures may meaningfully impact significant estimates such as the allowance for credit losses, goodwill, and pension plan obligations and related expenses.

Reclassifications

ReclassificationsCertain prior year amounts have been reclassified to conform with the current presentation. These reclassifications had no impact on net income or shareholders' equity.

Restrictions on Cash and Due from Banks

Restrictions on Cash and Due from Banks

As of March 26, 2020, the Federal Reserve Board eliminated reserve requirements for all depository institutions.There were no compensating balance arrangements in existence at December 31, 2022 or 2021.

Investment Securities

Investment Securities

Debt securities are classified upon acquisition into one of three categories: HTM, AFS, or trading (see Note 4 - Investment Securities).

HTM securities are those debt securities that the Corporation has the positive intent and ability to hold to maturity and are recorded at amortized cost. AFS debt securities are those debt securities that would be available to be sold in the future in response to the Corporation’s liquidity needs, changes in market interest rates, and asset-liability management strategies, among other reasons. AFS debt securities are reported at fair value, with unrealized holding gains and losses excluded from earnings, but included in other comprehensive (loss) income, net of applicable income taxes. The Corporation did not hold any trading securities during any period presented.

Interest income from debt securities includes amortization of purchase premium or discount. Premiums and discounts on investment securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable debt securities are amortized to their earliest call date. Gains and losses realized on the sale of debt securities are recorded on the trade date and determined using the specific identification method.

A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days past due. Interest accrued but not received for a security placed on nonaccrual status is reversed against interest income.

ACL - Debt Securities AFS

For debt securities AFS in an unrealized loss position, Park first assesses whether it intends to sell, or it is more likely than not that Park will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through net income. For debt securities AFS that do not meet the aforementioned criteria, Park evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be

collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes.

Changes in the ACL are recorded as a provision for (or recovery of) credit loss expense. Losses are charged against the ACL when management believes that uncollectibility of a debt security AFS is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on debt securities AFS totaled $12.4 million and $6.3 million at December 31, 2022 and 2021, respectively, and is excluded from the estimate of credit losses.

ACL - HTM Debt Securities

Management measures expected credit losses on HTM debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Park does not currently hold any HTM debt securities.

Equity Securities

Equity securities, included within "Other investment securities" on the Consolidated Balance Sheets, are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment.

Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock

Federal Home Loan Bank and Federal Reserve Bank of Cleveland Stock

PNB is a member of the FHLB and the FRB. Members are required to own a certain amount of stock based on their level of borrowings and other factors and may invest in additional amounts. FHLB stock and FRB stock are classified as restricted securities and are carried at their redemption value within "Other investment securities" on the Consolidated Balance Sheets. Impairment is evaluated based on the ultimate recovery of par value. Both cash and stock dividends are reported as income.

Mortgage Loans Held For Sale

Loans Held for Sale

Park has elected the fair value option for mortgage loans held for sale, which are carried at their fair value as of each balance sheet date.

Mortgage Banking Derivatives

Mortgage Banking DerivativesCommitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives.  The fair value of an interest rate lock is recorded at the time the commitment to fund a mortgage loan is executed and is adjusted for the expected exercise of a commitment before a loan is funded.  In order to hedge against a change in interest rates resulting from the Company's commitments to fund loans, the Company enters into forward commitments for the future delivery of mortgage loans.  The fair value of Park's mortgage banking derivatives is estimated based on the change in mortgage interest rates from the date the interest on a loan is locked. The fair value of these mortgage banking derivatives is included in "Loans" in the Consolidated Balance Sheets. Changes in the fair value of these mortgage banking derivatives are included in "Other service income" in the Consolidated Statements of Income.

Financing Receivable [Policy Text Block]

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Accrued interest receivable totaled $22.3 million and $17.1 million at December 31, 2022 and 2021, respectively, and was reported in "Accrued interest receivable" on the Consolidated Balance Sheets. Late charges on loans are recognized as income when they are collected. Net loan origination fees and costs are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) those commercial loans in the construction real estate loan segment; (4) those commercial loans in the residential real estate loan segment; and (5) leases. Consumer loans include: (1) mortgage and installment loans included in the construction real estate segment; (2) mortgage, home equity lines of credit ("HELOCs"), and installment loans included in the residential real estate segment; and (3) all loans included in the consumer segment.

Generally, commercial loans are placed on nonaccrual status at 90 days past due and consumer and residential mortgage loans are placed on nonaccrual status at 120 days past due. The delinquency status of a loan is based on contractual terms and not on

how recently payments have been received. Park’s charge-off policy for commercial loans requires management to establish a specific reserve or record a charge-off when collection is in doubt and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing a loan. The Company’s charge-off policy for consumer loans is dependent on the class of the loan. Residential mortgage loans, HELOCs, and consumer loans secured by residential real estate are typically charged down to the value of the collateral, less estimated selling costs, at 180 days past due. The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful.

For loans which are on nonaccrual status, it is Park’s policy to reverse interest previously accrued on the loans against interest income. Interest on such loans may be recorded on a cash basis and be included in earnings only when Park expects to receive the entire recorded investment of the respective loans. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below:

Commercial, financial and agricultural: Commercial, financial and agricultural ("C&I") loans are made for a wide variety of general corporate purposes, including financing for commercial and industrial properties, financing for equipment, inventory and accounts receivable, acquisition financing, commercial leasing, and loans originated by consumer finance companies. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. Risk of loss on C&I loans largely depends upon general economic cycles, as they may adversely impact certain industries, competency of the borrower's management team, the quality of the underlying assets supporting the loans including accounts receivable, inventory, and equipment, and the accuracy of the borrower's financial reporting. Such risks are mitigated by generally requiring the borrower's owners to guaranty the loans.

Commercial real estate: Commercial real estate (“CRE”) loans include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate. Risk of loss on CRE loans largely depends upon the cash flow of the properties, which is influenced by the amount of vacancy experienced with respect to underlying real estate, the credit capacity of the tenants occupying the underlying real estate, and general economic trends, as they may adversely impact the value of a property. These risks are mitigated by generally requiring personal guarantees of the owners of the properties and by requiring appraisals pursuant to government regulations.

Construction real estate: The Company defines construction loans as both commercial construction loans and residential construction loans where the loan proceeds are used exclusively for the improvement of real estate. Construction loans may be in the form of a permanent loan or a short-term construction loan, depending on the needs of the individual borrower. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, Park may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, Park may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event that a default on a construction loan occurs and foreclosure follows, Park must take control of the project and attempt to either arrange for completion of construction or dispose of the unfinished project. Additional risks exist with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. Park attempts to reduce such risks on loans to developers by generally requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer.

Residential real estate: The Company defines residential real estate loans as first mortgages on individuals’ primary residences or second mortgages on individuals’ primary residences in the form of HELOCs or installment loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stable employment, an established credit record and a current independent third-party appraisal providing the market value of the real estate securing the loan. Residential real estate loans typically have longer terms and higher balances with lower yields as compared to consumer loans, but generally carry lower risks of default. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires creditors to make a reasonable and good faith determination of a consumer's ability to repay any consumer credit transaction secured by a dwelling. Documentation and verification of income within defined time frames and not-to-exceed limits are bases for affirming ability to repay. Risk of loss largely depends upon factors affecting the borrower's ability to repay as well as the general economic trends as they may adversely impact the value

of the property. These risks are mitigated by completing a comprehensive underwriting of the borrower and by requiring appraisals pursuant to government regulations.

Consumer: The Company originates direct and indirect consumer loans, primarily automobile loans, to customers in the Company's primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stable employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s financial stability, and thus are more likely to be affected by adverse personal circumstances.

Leases: The Company originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment. Repayment terms are structured such that the lease will be repaid within the economic useful life of the leased asset. Risk of losses on financing leases largely depends upon general economic cycles, as they may adversely impact certain industries, competency of the borrower’s management team, the quality and residual value of the leased asset, and the accuracy of the borrower’s financial reporting. These risks are mitigated by underwriting leases considering primary and secondary sources of repayment and requiring guaranteed residual values.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

Park's commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in the 26 Ohio counties, four North Carolina counties, four South Carolina counties and one Kentucky county where PNB operates, with the exception of nationwide aircraft loans and nationwide asset-based lending to consumer finance companies. The primary industries represented by these customers include real estate rental and leasing, finance and insurance, construction, accommodation and food services, health care and social assistance, other services, manufacturing, retail trade, and agriculture, forestry, fishing and hunting.

Certain Loans and Debt Securities Acquired in Transfer, Recognizing Interest Income on Impaired Loans, Policy [Policy Text Block]

PCD Loans

The Company has purchased loans, some of which have shown evidence of credit deterioration since origination. Upon adoption of ASC 326, Park elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. Loans are only removed from the existing pools if they are written off, paid off, or sold. Upon adoption of ASC 326, the allowance for credit losses was determined for each pool and added to the pool's carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the pool and the new amortized cost basis is the noncredit premium or discount, which will be amortized into interest income over the remaining life of the pool. Changes to the allowance for credit losses after adoption are recorded through provision for credit losses expense.

Allowance for Loan Losses

ACL - Loans

The ACL is a valuation account that is deducted from the amortized cost of total loans to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Expected recoveries cannot exceed the aggregate of the amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant and available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical credit loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.

ACL - Loans - Collectively Evaluated

The ACL is measured on a collective pool basis when similar risk characteristics exist. Park has identified the following portfolio segments and measures the allowance for credit losses using the following methods:

Portfolio Segment	Measurement Method	Loss Driver
Commercial, financial and agricultural
Commercial, financial and agricultural	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
PPP loans	Other	Not Applicable
Overdrafts	Historical Loss Experience	Not Applicable
Commercial real estate	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Construction real estate:
Commercial	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Retail	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Residential real estate:
Commercial	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
Mortgage	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
HELOC	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
Installment	Discounted Cash Flow	Ohio Unemployment, Ohio HPI
Consumer:
Consumer	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
GFSC	Discounted Cash Flow	Ohio Unemployment, Ohio GDP
Check loans	Historical Loss Experience	Not Applicable
Leases	Remaining Life	Not Applicable

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by Park.

In general, Park utilized a DCF method to estimate the quantitative portion of the allowance for credit losses for loans evaluated on a collective pooled basis. For each segment, a LDA was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA utilized Park's own Federal Financial Institutions Examination Council's ("FFIEC") Call Report data for the commercial, financial and agricultural and residential real estate segments. Peer data was incorporated into the analysis for the commercial real estate, construction real estate, and consumer segments.

In creating the DCF model, Park established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average. Park's policy is to utilize its own data, which includes loan-level loss data from 2013 through December 31, 2022, whenever possible. Park and peer FFIEC Call Report data are utilized when there are insufficient defaults for a statistically sound calculation, or if Park does not have its own loan-level detail reflecting similar economic conditions as the forecasted loss drivers.

Key inputs into the DCF model include loan-level detail, including the amortized cost basis of individual loans, payment structure, loss history, and forecasted loss drivers. Park utilizes a third party to provide economic forecasts under various scenarios, which are weighted in order to reflect model risk in the then current economic environment. The weighting of the scenarios is evaluated on a quarterly basis considering the various scenarios in the context of the then current economic environment and presumed risk of loss.

Additional key assumptions in the DCF model include the PD, LGD, and prepayment/curtailment rates. When possible, Park utilizes its own PDs for the reasonable and supportable forecast period. When it is not possible to use Park's own PDs, the LDA is utilized to determine PDs based on the forecasted economic factors. In all cases, the LDA is then utilized to determine the long-term historical average, which is reached over the reversion period. When possible, Park's utilizes its own LGDs for the

reasonable and supportable forecast period. When it is not possible to use Park's own LGDs, the LGD is derived using a method referred to as Frye Jacobs. The Frye Jacobs method is a mathematical formula that traces the relationship between LGD and PD over time and projects the LGD based on the level of PD forecasted. In all cases, the Frye Jacobs method is utilized to calculate LGDs during the reversion period and long-term historical average. Prepayment and curtailment rates were calculated based on Park's own data utilizing a three-year average.

When the discounted cash flow method is used to determine the allowance for credit losses, management incorporates expected prepayments to determine the effective interest rate utilized to discount expected cash flow.

Park reviews various internal and external factors to consider the need for any qualitative adjustments to the quantitative model. Factors considered include the following:

•The nature and volume of Park’s financial assets;

•The existence, growth, and effect of any concentrations of credit;

•The volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets;

•Park’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries;

•The quality of Park's credit review function;

•The experience, ability, and depth of Park’s lending, investment, collection, and other relevant management and staff;

•The effect of other external factors such as the regulatory, legal and technological environments, competition, geopolitical conflict, and events such as natural disasters or pandemics;

•Actual and expected changes in international, national, regional, and local economic and business conditions and developments in the markets in which Park operates that affect the collectibility of financial assets;

•Where the U.S. economy is within a given credit cycle; and

•The extent that there is government assistance (stimulus).

Allowance for Credit Losses - Loans - Individually Evaluated

Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. Park has determined that any commercial loans which have been placed on nonaccrual status or classified as TDRs are to be individually evaluated. Individual analysis establishes a specific reserve for loans in scope.  Specific reserves on individually evaluated commercial loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as appropriate.

Allowance for Credit Losses - Off-Balance Sheet Credit Exposures

Park estimates expected credit losses over the contractual period in which Park is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by Park. The allowance for credit losses on off-balance sheet credit exposures is adjusted within "Miscellaneous other expense" on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over the commitments' respective estimated lives. Funding rates are based on a historical analysis of Park's portfolio, while estimates of credit losses are determined using the same loss rates as funded loans.

Troubled Debt Restructuring (TDRs)

Troubled Debt Restructurings ("TDRs")

Management classifies loans as TDRs when a borrower is experiencing financial difficulty and Park has granted a concession. 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 under 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, during the COVID-19 pandemic, Park 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 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. A majority of these modifications were 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 were considered current and continued to accrue interest during the deferral period.

Bank Owned Life Insurance

Bank Owned Life Insurance

Park has purchased insurance policies on the lives of directors and certain key officers. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

Goodwill and Intangible Assets, Goodwill, Policy

Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over net identifiable tangible and intangible assets acquired in a purchase business combination. Goodwill is not amortized to expense, but is subject to impairment tests annually, or more frequently, if events or changes in circumstances indicate that the asset might be impaired, by assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing these events or circumstances, it is concluded that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the performance of additional analysis is unnecessary. If the carrying amount of the goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess, not to exceed the total goodwill allocated to the reporting unit.

Other intangible assets consist of core deposit intangibles. Core deposit intangibles are amortized on an accelerated basis over a period of ten years.

Premises and Equipment

Premises and Equipment

Land is carried at cost and is not subject to depreciation. Premises and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the remaining lease period or the estimated useful lives of the improvements. Upon the sale or other disposal of an asset, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are charged to expense as incurred while renewals and improvements that extend the useful life of an asset are capitalized. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.

The range of depreciable lives over which premises and equipment are being depreciated are:

 

Buildings	30 Years
Building improvements	5 to 10 Years
Equipment, furniture and fixtures	3 to 12 Years
Software	3 Years or the contractual useful life of the software
Leasehold improvements	Shorter of the remaining lease period or the estimated useful life of the improvement

Other Real Estate Owned (OREO)

Other Real Estate Owned

Management transfers a loan to OREO at the time that Park takes deed/title to the asset. OREO is initially recorded at fair value less anticipated selling costs (net realizable value), establishing a new cost basis, and consists of property acquired through foreclosure and real estate held for sale. If the net realizable value is below the carrying value of the loan at the date of transfer, the difference is charged to the allowance for credit losses. If the net realizable value is above the carrying value of the loan at the date of transfer, any charged-off amounts are recovered and any additional amount is recorded within the line item "OREO valuation markup." These assets are subsequently accounted for at the lower of cost or fair value less costs to sell. Subsequent changes in the value of real estate are classified as OREO valuation adjustments, are reported as adjustments to the carrying amount of OREO, and recorded within the line item “Miscellaneous income". In certain circumstances where management believes the devaluation may not be permanent in nature, Park utilizes a valuation allowance to record OREO devaluations, which is expensed through the line item “Miscellaneous income". Costs relating to development and improvement of such properties are capitalized (not in excess of fair value less estimated costs to sell), and costs relating to holding the properties are charged to the line item "Miscellaneous expense".

Finance, Loan and Lease Receivables, Held for Investments, Foreclosed Assets Policy [Policy Text Block]

Foreclosed Assets

Foreclosed assets include non-real estate assets where Park, as creditor, has received physical possession of a borrower’s assets, regardless of whether formal foreclosure proceedings take place.  Additionally, TDRs in which Park obtains one of more of the debtor’s non-real estate assets in place of all or part of the receivable are accounted for as foreclosed assets.  Foreclosed assets are initially recorded as fair value less costs to sell when acquired, establishing a new cost basis.  Operating costs after acquisition are expensed as incurred. As of December 31, 2022 and 2021, Park had $605,000 and $3.3 million, respectively, of foreclosed assets included within “Other assets.”

Mortgage Loan Servicing Rights

Mortgage Servicing Rights

When Park sells mortgage loans with servicing retained, MSRs are recorded at fair value with the income statement effect recorded in "Other service income". Capitalized MSRs are amortized in proportion to and over the period of the estimated future servicing income of the underlying loan and are included within “Other service income”.

MSRs are assessed for impairment quarterly, based on fair value, with any impairment recognized through a valuation allowance. The fair value of MSRs is determined by discounting estimated future cash flows from the servicing assets, using market discount rates and expected future prepayment rates. In order to calculate fair value, the sold loan portfolio is stratified into homogeneous pools of like categories. (See Note 12 - Loan Servicing.)

Fees received for servicing mortgage loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in income as loan payments are received. The amortization of MSRs is netted against loan servicing fee income and recorded in "Other service income".

Lessee, Leases

Leases

Management determines if an arrangement is or contains a lease at contract inception. If an arrangement is determined to be or contain a lease, Park recognizes a ROU asset and a lease liability at the lease commencement date. Leases are classified as operating or finance leases at the lease commencement date. At December 31, 2022 and 2021, all of Park's leases were classified as operating leases.

Park elected the practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease components. Additionally, Park has elected not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. Park recognizes the lease payments associated with its short-term leases as an expense on a cash basis.

Park’s lease liability is initially and subsequently measured as the present value of the unpaid lease payments at the lease commencement date. Key estimates and judgments related to the lease liability include how management determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) the lease term, and (3) lease payments.

•ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, Park's management cannot determine the interest rate implicit in a lease because it does not have access to the lessor’s estimated residual value or the amount of the lessor’s deferred initial direct costs. Therefore, Park utilizes its incremental borrowing rate as the discount rate for leases. Park’s incremental borrowing rate for a lease is the rate of interest Park would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. To manage its capital and liquidity needs, Park periodically obtains wholesale funding from the FHLB on an over-collateralized basis. The impact of utilizing an interest rate on an over-collateralized borrowing versus a fully collateralized borrowing is not material. Therefore, the FHLB yield curve was selected by Park's management as a baseline to determine Park’s discount rates for leases.

•The lease term for all of Park's leases includes the noncancellable period of the lease plus any additional periods covered by either Park's option to extend (or not to terminate) the lease that Park is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. If a lease contract contains multiple renewal options, Park's management generally models lease cash flows through the first renewal option period unless the contract contains economic incentives or other conditions that increase or decrease the likelihood that additional renewals are reasonably certain to be exercised.

•Lease payments included in the measurement of the lease liability are comprised of the following:

◦Fixed payments, including in-substance fixed payments, owed over the lease term;

◦For certain of Park's gross real estate leases, non-lease components such as real estate taxes, insurance, and common area maintenance; and

◦Variable lease payments that depend on an index or rate, initially measured using the index or rate at the lease commencement date.

The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Consolidated Statement of Cash Flows

Consolidated Statements of Cash Flows

Cash and cash equivalents include cash and cash items, amounts due from banks, and money market instruments. Generally, money market instruments are purchased and sold for one-day periods.

Loss Contingencies and Guarantees

Loss Contingencies

Park is routinely engaged in various litigation and other legal matters. These include defending against claims of improper loan, deposit account, and other banking practices, as well as trust and investment, intellectual property, contract, and other legal matters, and Park has a number of unresolved lawsuits and open matters pending resolution. In addition, Park is party to litigation involving the collection of delinquent accounts, challenges to security interests in collateral, foreclosure lawsuits, and similar matters which are part of, or incidental to, the ordinary course of business. While the ultimate liability with respect to these matters and claims cannot be determined at this time, management believes that losses, damages, or liabilities, if any, and other amounts relating to pending matters are not likely to be material to Park's consolidated financial position or results of operations. Reserves are established for these various litigation and other legal matters, when appropriate under FASB ASC Topic 450, Contingencies, based in part upon the advice of legal counsel.

Income Tax, Policy [Policy Text Block]

Income Taxes

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The benefit recognized for a tax position that meets the “more-likely-than-not” criteria is measured based on the largest benefit that is more than 50 percent likely to be realized, taking into consideration the amounts and probabilities of the outcome upon settlement. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. Park recognizes any interest and penalties related to income tax matters in income tax expense.

Treasury Shares

Treasury Shares

The purchase of Park’s common shares to be held in treasury is recorded at cost. At the date of retirement or subsequent reissuance, the treasury shares account is reduced by the weighted average cost of the common shares retired or reissued.

Policyholders' Dividend [Policy Text Block]

Dividend Restriction

Banking regulations require the maintenance of certain capital levels and may limit the dividends paid by a bank to its parent holding company or by the parent holding company to its shareholders.  (See Note 25 - Dividend Restrictions and Note 28 - Capital Ratios.)

Comprehensive Income

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on debt securities available for sale, changes in the funded status of the Company’s defined benefit pension plan and unrealized gains and losses on cash flow hedges which are also recognized as separate components of equity.

Stock Based Compensation

Share-Based Compensation

Compensation cost is recognized for restricted stock units and stock awards issued to employees and directors, respectively, based on the fair value of these awards at the date of grant. The market price of Park’s common shares at the date of grant is used to estimate the fair value of restricted stock units and stock awards. Compensation cost is recognized on a straight-line basis over the required service period, generally defined as the vesting period and is recorded in "Salaries" expense. (See Note 20 - Share-Based Compensation.) The Company's accounting policy is to recognize forfeitures as they occur.

Loan Commitments and Related Financial Instruments

Loan Commitments and Related Financial InstrumentsFinancial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Fair Value Measurement

Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 27 - Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding

interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Derivatives, Policy

Derivatives

At the inception of a derivative contract, Park designates the derivative as one of three types based on Park's intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). Park does not have any fair value hedges. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into net income in the same periods during which the hedged transaction affects net income. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in net income, as non-interest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the Consolidated Statements of Cash Flow under the same item as the cash flows of the items being hedged.

Park formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking the hedge transaction at the inception of the hedging relationship. The documentation includes linking cash flow hedges to specific assets and liabilities on the Consolidated Balance Sheets. Park also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used are highly effective in offsetting changes in cash flows of the hedged items. Park discontinues hedge accounting when it determines that a derivative is no longer effective in offsetting cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into net income over the same periods that the hedged transactions will affect earnings.

The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the outstanding contracts. All the contracts to which the Company is party settle monthly or quarterly.

Transfers and Financial Assets

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain the transferee from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Retirement Plans

Retirement Plans

Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. The service cost component of pension expense is recorded within "Employee benefits" on the Consolidated Statements of Income. All other components of pension expense are recorded within "Other components of net periodic benefit income" on the Consolidated Statements of Income. Employee KSOP plan expense is the amount of matching contributions to Park's Employees Stock Ownership Plan. Deferred compensation and supplemental retirement plan expense allocate the benefits over years of service. (See Note 21 - Benefit Plans.)

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under restricted stock unit awards. (See Note 20 - Share-Based Compensation and Note 24 - Earnings Per Common Share.)

Segment Reporting, Policy [Policy Text Block]

Operating Segments

The Corporation is a financial holding company headquartered in Newark, Ohio. The reportable segment for the Corporation is its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio).

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of depreciable lives of premises and equipment

The range of depreciable lives over which premises and equipment are being depreciated are:

 

Buildings	30 Years
Building improvements	5 to 10 Years
Equipment, furniture and fixtures	3 to 12 Years
Software	3 Years or the contractual useful life of the software
Leasehold improvements	Shorter of the remaining lease period or the estimated useful life of the improvement

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Comprehensive Text Block List (Tables)

12 Months Ended

Dec. 31, 2022

Text Block [Abstract]

Accounting Standards Update and Change in Accounting Principle

The following table illustrates the impact of ASC 326:

	January 1, 2021
(In thousands)	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
Assets:
Loans	$	7,177,666	$	7,177,785	$	(119)
ACL on loans
Commercial, financial and agricultural	17,351		25,608		(8,257)
Commercial real estate	25,599		23,480		2,119
Construction real estate	5,390		7,288		(1,898)
Residential real estate	14,484		11,363		3,121
Consumer	28,343		17,418		10,925
Leases	598		518		80
Total ACL on loans	$	91,765	$	85,675	$	6,090
Liabilities:
ACL on off-balance sheet commitments	$	3,982	$	116	$	3,866
Net deferred tax liability	777		2,892		(2,115)
Shareholders' equity:	$	1,032,300	$	1,040,256	$	(7,956)

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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of marketable securities

Debt Securities

The following table summarizes the amortized cost and fair value of debt securities at December 31, 2022 and December 31, 2021 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive (loss) income.

 

(In thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
2022:
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities	$	39,000	$	—	$	1,787	$	37,213
Obligations of states and political subdivisions	423,285		1,620		18,194		406,711
U.S. Government sponsored entities’ asset-backed securities	839,399		—		82,638		756,761
Collateralized loan obligations	535,518		—		18,979		516,539
Corporate debt securities	17,650		—		1,178		16,472
Total	$	1,854,852	$	1,620	$	122,776	$	1,733,696

(In thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
2021:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions	$	366,933	$	22,682	$	24	$	389,591
U.S. Government sponsored entities’ asset-backed securities	849,114		13,437		8,088		854,463
Collateralized loan obligations	500,066		3		1,395		498,674
Corporate debt securities	11,250		169		7		11,412
Total	$	1,727,363	$	36,291	$	9,514	$	1,754,140

Schedule of unrealized loss on investments

The following table provides detail on investment securities in an unrealized loss position for which an allowance for credit losses had not been recorded at December 31, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position:

 

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2022:
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities	$	37,213	$	1,787	$	—	$	—	$	37,213	$	1,787
Obligations of states and political subdivisions	270,905		18,194		—		—		270,905		18,194
U.S. Government sponsored entities’ asset-backed securities	446,423		27,507		310,338		55,131		756,761		82,638
Collateralized loan obligations	415,491		15,446		101,048		3,533		516,539		18,979
Corporate debt securities	7,388		862		1,684		316		9,072		1,178
Total	$	1,177,420	$	63,796	$	413,070	$	58,980	$	1,590,490	$	122,776

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2021:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions	$	1,834	$	24	$	—	$	—	$	1,834	$	24
U.S. Government sponsored entities’ asset-backed securities	333,653		4,996		73,431		3,092		407,084		8,088
Collateralized loan obligations	429,671		1,395		—		—		429,671		1,395
Corporate debt securities	2,243		7		—		—		2,243		7
Total	$	767,401	$	6,422	$	73,431	$	3,092	$	840,832	$	9,514

Unrealized Gain (Loss) on Investments

At December 31, 2022, Park’s debt security portfolio consisted of $1.7 billion of securities, $1.6 billion of which were in an unrealized loss position with unrealized losses of $122.8 million. Of the $1.6 billion of securities in an unrealized loss position, $413.1 million were in an unrealized loss position for 12 months or longer. Of the $122.8 million in unrealized losses, an aggregate of $84.4 million were related to Park's "Obligations of U.S. Government sponsored entities" portfolio and Park's "U.S. Government sponsored entities' asset-backed securities" portfolio. For non-agency debt securities, Park verified that the current credit ratings remain above investment grade. Management periodically reviews the credit profile of each non-agency debt security and assesses whether any impairment to the contractually obligated cash flow is likely to occur. Based on these reviews, management has concluded that the underlying creditworthiness for each security remains sufficient to maintain required payment obligations and, therefore, unrealized losses have not been recognized into net income. Management does not intend to sell, and it is not more likely than not that management would be required to sell, the securities prior to their anticipated recovery in respect of the unrealized losses. Management believes the value will recover as the securities approach maturity or market rates change.

There was no allowance for credit losses recorded for debt securities AFS at December 31, 2022 and December 31, 2021. Additionally, for the years ended December 31, 2022, 2021, and 2020, there were no credit-related investment impairment losses recognized.

Schedule of contractual maturity of debt securities

The amortized cost and estimated fair value of investments in debt securities at December 31, 2022, are shown in the following table by contractual maturity, except for asset-backed securities and collateralized loan obligations, which are shown as a single total, due to the unpredictability of the timing in principal repayments. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

(In thousands)	Amortized Cost		Fair Value		Tax Equivalent Yield (1)
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities
Due one through five years	$	39,000	$	37,213	2.37	%
Obligations of states and political subdivisions
Due one through five years	$	2,289	$	2,278	2.97	%
Due five through ten years	271,564		271,658		3.68	%
Due greater than ten years	149,432		132,775		3.15	%
Total	$	423,285	$	406,711	3.49	%
U.S. Government sponsored entities’ asset-backed securities	$	839,399	$	756,761	1.91	%
Collateralized loan obligations	$	535,518	$	516,539	6.30	%
Corporate debt securities
Due five through ten years	$	17,650	$	16,472	3.89	%

(1) The tax equivalent yield for obligations of states and political subdivisions includes the effects of a taxable equivalent adjustment using a 21% federal corporate income tax rate.

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Loans (Tables)

12 Months Ended

Dec. 31, 2022

Loans and Leases Receivable Disclosure [Abstract]

Schedule of composition of loan portfolio by class of loan

The composition of the loan portfolio at December 31, 2022 and December 31, 2021 was as follows:

 

	December 31, 2022		December 31, 2021
(In thousands)	Amortized Cost		Amortized Cost
Commercial, financial and agricultural: (1)
Commercial, financial and agricultural (1)	$	1,295,238	$	1,223,079
PPP loans	4,206		74,420
Overdrafts	1,489		1,127
Commercial real estate (1)	1,794,054		1,801,792
Construction real estate:
Commercial	208,982		214,561
Retail	116,433		107,225
Residential real estate:
Commercial	550,183		533,802
Mortgage	1,075,446		1,033,658
HELOC	167,151		165,605
Installment	4,091		5,642
Consumer:
Consumer	1,902,557		1,685,793
GFSC	274		1,793
Check loans	2,150		2,093
Leases	19,637		20,532
Total	$	7,141,891	$	6,871,122
Allowance for credit losses	(85,379)		(83,197)
Net loans	$	7,056,512	$	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.

Schedule of recorded investment in nonaccrual restructured and loans past due 90 days or more and accruing

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 December 31, 2022 and December 31, 2021:

 

	December 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	$	38,158	$	3,261	$	—	$	41,419
PPP loans	—		—		389		389
Overdrafts	—		—		—		—
Commercial real estate	24,504		7,919		—		32,423
Construction real estate:
Commercial	1,712		—		—		1,712
Retail	1,254		12		—		1,266
Residential real estate:
Commercial	1,894		298		—		2,192
Mortgage	9,260		6,750		182		16,192
HELOC	1,133		187		7		1,327
Installment	51		1,037		—		1,088
Consumer:
Consumer	1,012		670		703		2,385
GFSC	10		—		—		10
Check loans	—		—		—		—
Leases	708		—		—		708
Total loans	$	79,696	$	20,134	$	1,281	$	101,111

	December 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	$	13,271	$	9,396	$	—	$	22,667
PPP loans	—		—		793		793
Overdrafts	—		—		—		—
Commercial real estate	40,142		7,713		—		47,855
Construction real estate:
Commercial	52		169		—		221
Mortgage	716		9		—		725
Residential real estate:
Commercial	2,366		240		—		2,606
Mortgage	11,718		7,779		372		19,869
HELOC	1,590		803		—		2,393
Installment	82		1,508		—		1,590
Consumer
Consumer	1,518		700		431		2,649
GFSC	79		6		11		96
Check loans	—		—		—		—
Leases	1,188		—		—		1,188
Total loans	$	72,722	$	28,323	$	1,607	$	102,652

Financing Receivable, Nonaccrual

The following tables provide additional detail on nonaccrual loans and the related ACL, by class of loan, at December 31, 2022 and December 31, 2021:

	December 31, 2022
(In thousands)	Nonaccrual Loans With No ACL		Nonaccrual Loans With an ACL		Related ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	28,291	$	9,867	$	3,440
PPP loans	—		—		—
Overdrafts	—		—		—
Commercial real estate	22,965		1,539		130
Construction real estate:
Commercial	1,712		—		—
Retail	—		1,254		19
Residential real estate:
Commercial	1,894		—		—
Mortgage	—		9,260		85
HELOC	—		1,133		191
Installment	—		51		17
Consumer
Consumer	—		1,012		283
GFSC	—		10		1
Check loans	—		—		—
Leases	680		28		9
Total loans	$	55,542	$	24,154	$	4,175

	December 31, 2021
(In thousands)	Nonaccrual Loans With No ACL		Nonaccrual Loans With an ACL		Related ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	11,494	$	1,777	$	1,343
PPP loans	—		—		—
Overdrafts	—		—		—
Commercial real estate	39,151		991		188
Construction real estate:
Commercial	52		—		—
Retail	—		716		67
Residential real estate:
Commercial	2,366		—		—
Mortgage	—		11,718		73
HELOC	—		1,590		99
Installment	—		82		24
Consumer
Consumer	—		1,518		393
GFSC	—		79		10
Check loans	—		—		—
Leases	914		274		43
Total loans	$	53,977	$	18,745	$	2,240

Schedule of loans individually evaluated for impairment by class of loan

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

	December 31, 2022
(In thousands)	Real Estate		Business Assets		Other		Total
Commercial, financial and agricultural
Commercial, financial and agricultural	$	8,242	$	7,788	$	23,125	$	39,155
Commercial real estate	35,908		28		—		35,936
Construction real estate:
Commercial	2,372		—		—		2,372
Residential real estate:
Commercial	2,479		—		—		2,479
Mortgage	90		—		—		90
Leases	—		708		—		708
Total loans	$	49,091	$	8,524	$	23,125	$	80,740

	December 31, 2021
(In thousands)	Real Estate		Business Assets		Other		Total
Commercial, financial and agricultural
Commercial, financial and agricultural	$	9,321	$	13,366	$	156	$	22,843
Commercial real estate	52,901		37		—		52,938
Construction real estate:
Commercial	1,178		—		—		1,178
Residential real estate:
Commercial	2,906		—		57		2,963
Mortgage	370		—		—		370
HELOC	148		—		—		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. The following table presents interest income recognized on nonaccrual loans for the years ended December 31, 2022 and 2021:

	Interest Income Recognized
(In thousands)	December 31, 2022		December 31, 2021
Commercial, financial and agricultural:
Commercial, financial and agricultural	$	438	$	180
PPP loans	—		—
Overdrafts	—		—
Commercial real estate	956		1,844
Construction real estate:
Commercial	32		39
Retail	13		4
Residential real estate:
Commercial	88		204
Mortgage	157		301
HELOC	16		17
Installment	3		2
Consumer:
Consumer	54		92
GFSC	5		14
Check loans
Leases	33		73
Total loans	$	1,795	$	2,770

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 year ended December 31, 2020:

	December 31, 2020
(In thousands)	Recorded Investment		Average Recorded Investment		Interest Income Recognized
Commercial, financial and agricultural	$	28,836	$	30,280	$	735
Commercial real estate	70,357		55,279		1,890
Construction real estate:
Commercial	3,110		1,291		50
Residential real estate:
Commercial	4,557		4,329		204
Consumer	—		—		—
Leases	1,595		1,115		—
Total	$	108,455	$	92,294	$	2,879

Financing Receivable, Past Due

The following tables present the aging of the amortized cost in past due loans at December 31, 2022 and December 31, 2021 by class of loan:

	December 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	$	378	$	9,246	$	9,624	$	1,285,614	$	1,295,238
PPP loans	155		389		544		3,662		4,206
Overdrafts	—		—		—		1,489		1,489
Commercial real estate	737		4,738		5,475		1,788,579		1,794,054
Construction real estate:
Commercial	751		—		751		208,231		208,982
Retail	1,035		523		1,558		114,875		116,433
Residential real estate:
Commercial	519		477		996		549,187		550,183
Mortgage	7,630		5,157		12,787		1,062,659		1,075,446
HELOC	832		587		1,419		165,732		167,151
Installment	57		4		61		4,030		4,091
Consumer:
Consumer	5,451		964		6,415		1,896,142		1,902,557
GFSC	48		—		48		226		274
Check loans	2		—		2		2,148		2,150
Leases	—		—		—		19,637		19,637
Total loans	$	17,595	$	22,085	$	39,680	$	7,102,211	$	7,141,891

(1) Includes an aggregate of $1.3 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.

(2) Includes an aggregate of $58.9 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 loans	242		793		1,035		73,385		74,420
Overdrafts	—		—		—		1,127		1,127
Commercial real estate	65		1,461		1,526		1,800,266		1,801,792
Construction real estate:
Commercial	—		—		—		214,561		214,561
Mortgage	346		660		1,006		106,219		107,225
Residential real estate:
Commercial	283		438		721		533,081		533,802
Mortgage	6,170		5,933		12,103		1,021,555		1,033,658
HELOC	565		1,011		1,576		164,029		165,605
Installment	49		31		80		5,562		5,642
Consumer
Consumer	2,614		618		3,232		1,682,561		1,685,793
GFSC	153		52		205		1,588		1,793
Check loans	10		—		10		2,083		2,093
Leases	60		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.

Financing Receivable Credit Quality Indicators

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

December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass	$	197,497	$	198,999	$	142,487	$	60,845	$	32,887	$	47,135	$	546,237	$	1,226,087
Special Mention	700		313		918		315		4		35		25,536		27,821
Substandard	1,101		18		2,737		226		1,836		8,424		26,464		40,806
Doubtful	—		—		3		77		80		172		192		524
Total	$	199,298	$	199,330	$	146,145	$	61,463	$	34,807	$	55,766	$	598,429	$	1,295,238

Commercial, financial and agricultural: PPP
Risk rating
Pass	$	—	$	1,875	$	2,331	$	—	$	—	$	—	$	—	$	4,206
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	$	—	$	1,875	$	2,331	$	—	$	—	$	—	$	—	$	4,206

Commercial real estate (1)
Risk rating
Pass	$	323,235	$	374,763	$	372,653	$	220,072	$	107,467	$	305,539	$	14,052	$	1,717,781
Special Mention	199		3,256		3,388		5,863		16,059		22,220		150		51,135
Substandard	7,856		1,427		3,007		3,561		856		5,471		428		22,606
Doubtful	—		—		—		—		1,941		591		—		2,532
Total	$	331,290	$	379,446	$	379,048	$	229,496	$	126,323	$	333,821	$	14,630	$	1,794,054

Construction real estate: Commercial
Risk rating
Pass	$	107,976	$	40,534	$	21,556	$	2,686	$	1,428	$	3,015	$	29,183	$	206,378
Special Mention	—		—		232		—		—		—		—		232
Substandard	652		800		260		—		660		—		—		2,372
Doubtful	—		—		—		—		—		—		—		—
Total	$	108,628	$	41,334	$	22,048	$	2,686	$	2,088	$	3,015	$	29,183	$	208,982

Residential Real Estate: Commercial
Risk rating
Pass	$	107,086	$	120,303	$	147,802	$	56,980	$	33,140	$	63,499	$	15,191	$	544,001
Special Mention	—		92		1,477		440		—		1,625		—		3,634
Substandard	610		449		264		29		304		553		339		2,548
Doubtful	—		—		—		—		—		—		—		—
Total	$	107,696	$	120,844	$	149,543	$	57,449	$	33,444	$	65,677	$	15,530	$	550,183

Leases
Risk rating
Pass	$	7,629	$	3,310	$	3,347	$	1,167	$	981	$	605	$	—	$	17,039
Special Mention	1,085		614		130		60		—		—		—		1,889
Substandard	—		—		464		111		12		26		—		613
Doubtful	—		—		—		96		—		—		—		96
Total	$	8,714	$	3,924	$	3,941	$	1,434	$	993	$	631	$	—	$	19,637

December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Total Commercial Loans
Risk rating
Pass	$	743,423	$	739,784	$	690,176	$	341,750	$	175,903	$	419,793	$	604,663	$	3,715,492
Special Mention	1,984		4,275		6,145		6,678		16,063		23,880		25,686		84,711
Substandard	10,219		2,694		6,732		3,927		3,668		14,474		27,231		68,945
Doubtful	—		—		3		173		2,021		763		192		3,152
Total	$	755,626	$	746,753	$	703,056	$	352,528	$	197,655	$	458,910	$	657,772	$	3,872,300

(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, 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	$	267,016	$	208,078	$	100,736	$	52,705	$	36,528	$	59,909	$	468,749	$	1,193,721
Special Mention	1,608		1,592		429		59		277		—		11,986		15,951
Substandard	106		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 Mention	786		6,206		32,965		9,354		4,297		17,829		996		72,433
Substandard	3,897		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

Construction real estate: Commercial
Risk rating
Pass	$	96,929	$	76,867	$	7,003	$	4,841	$	1,856	$	3,412	$	22,444	$	213,352
Special Mention	202		—		—		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 Mention	95		884		106		79		—		497		135		1,796
Substandard	735		22		691		41		95		993		29		2,606
Doubtful	56		—		—		—		—		—		—		56
Total	$	139,687	$	166,108	$	68,718	$	45,016	$	26,678	$	71,924	$	15,671	$	533,802

December 31, 2021	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Leases
Risk rating
Pass	$	6,705	$	5,729	$	2,628	$	2,151	$	705	$	845	$	—	$	18,763
Special Mention	198		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 Mention	2,889		8,793		33,684		10,250		4,595		18,326		13,117		91,654
Substandard	4,738		4,256		2,477		13,046		6,630		23,430		963		55,540
Doubtful	56		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

(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.

December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial, financial and agricultural: Overdrafts
Performing	$	1,489	$	—	$	—	$	—	$	—	$	—	$	—	$	1,489
Nonperforming	—		—		—		—		—		—		—		—
Total	$	1,489	$	—	$	—	$	—	$	—	$	—	$	—	$	1,489

Construction Real Estate: Retail
Performing	$	71,923	$	26,134	$	8,218	$	4,619	$	1,618	$	2,580	$	75	$	115,167
Nonperforming	731		—		523		—		—		12		—		1,266
Total	$	72,654	$	26,134	$	8,741	$	4,619	$	1,618	$	2,592	$	75	$	116,433

Residential Real Estate: Mortgage
Performing	$	207,093	$	227,131	$	192,904	$	90,014	$	55,648	$	286,464	$	—	$	1,059,254
Nonperforming	—		—		700		650		518		14,324		—		16,192
Total	$	207,093	$	227,131	$	193,604	$	90,664	$	56,166	$	300,788	$	—	$	1,075,446

Residential Real Estate: HELOC
Performing	$	140	$	299	$	23	$	130	$	141	$	1,957	$	163,134	$	165,824
Nonperforming	—		—		43		100		—		999		185		1,327
Total	$	140	$	299	$	66	$	230	$	141	$	2,956	$	163,319	$	167,151

Residential Real Estate: Installment
Performing	$	187	$	—	$	1	$	241	$	62	$	2,512	$	—	$	3,003
Nonperforming	—		—		7		2		16		1,063		—		1,088
Total	$	187	$	—	$	8	$	243	$	78	$	3,575	$	—	$	4,091

December 31, 2022	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer: Consumer
Performing	$	823,484	$	462,014	$	333,336	$	150,237	$	61,174	$	65,612	$	4,315	$	1,900,172
Nonperforming	440		489		424		355		157		520		—		2,385
Total	$	823,924	$	462,503	$	333,760	$	150,592	$	61,331	$	66,132	$	4,315	$	1,902,557

Consumer: GFSC
Performing	$	—	$	—	$	55	$	111	$	45	$	2	$	51	$	264
Nonperforming	—		—		—		10		—		—		—		10
Total	$	—	$	—	$	55	$	121	$	45	$	2	$	51	$	274

Consumer: Check loans
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	2,150	$	2,150
Nonperforming	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	2,150	$	2,150

Total Consumer Loans
Performing	$	1,104,316	$	715,578	$	534,537	$	245,352	$	118,688	$	359,127	$	169,725	$	3,247,323
Nonperforming	1,171		489		1,697		1,117		691		16,918		185		22,268
Total	$	1,105,487	$	716,067	$	536,234	$	246,469	$	119,379	$	376,045	$	169,910	$	3,269,591

December 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	$	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
Nonperforming	89		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
Nonperforming	241		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

December 31, 2021	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
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

Schedule of troubled debt restructurings on financing receivables

The following tables detail the number of contracts modified as TDRs during the years ended December 31, 2022, 2021 and 2020 as well as the amortized cost/ recorded investment of these contracts at December 31, 2022, 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.

	Year ended December 31, 2022
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Amortized Cost
Commercial, financial and agricultural
Commercial, financial and agricultural	12	$	2,254	$	3,484	$	5,738
PPP loans	—	—		—		—
Overdrafts	—	—		—		—
Commercial real estate	9	1,040		813		1,853
Construction real estate:
Commercial	1	—		41		41
Retail	1	—		—		—
Residential real estate:
Commercial	4	21		274		295
Mortgage	15	865		368		1,233
HELOC	3	—		11		11
Installment	12	141		27		168
Consumer:
Consumer	89	196		359		555
GFSC	—	—		—		—
Check loans	—	—		—		—
Leases	10	—		101		101
Total loans	156	$	4,517	$	5,478	$	9,995

	Year ended December 31, 2021
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Amortized Cost
Commercial, financial and agricultural
Commercial, financial and agricultural	10	$	1,356	$	169	$	1,525
PPP loans	—	—		—		—
Overdrafts	—	—		—		—
Commercial real estate	15	2,002		6,747		8,749
Construction real estate:
Commercial	1	—		—		—
Retail	2	—		705		705
Residential real estate:
Commercial	5	95		574		669
Mortgage	14	146		396		542
HELOC	8	211		105		316
Installment	8	120		—		120
Consumer:
Consumer	131	116		417		533
GFSC	—	—		—		—
Check loans	—	—		—		—
Leases	1	—		325		325
Total loans	195	$	4,046	$	9,438	$	13,484

	Year ended December 31, 2020
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	12	$	107	$	3,706	$	3,813
Commercial real estate	9	—		3,235		3,235
Construction real estate:
Commercial	—	—		—		—
Mortgage	1	26		—		26
Installment	1	—		14		14
Residential real estate:
Commercial	3	153		3		156
Mortgage	27	888		1,068		1,956
HELOC	7	14		52		66
Installment	18	163		65		228
Consumer	214	218		634		852
Total loans	292	$	1,569	$	8,777	$	10,346

Schedule Of Financing Receivable, Loans Modified As T D R Within Previous Twelve Months That Subsequently Defaulted [Table text Block]

The following table presents the amortized cost/ 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, 2022, December 31, 2021, and December 31, 2020. 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 credit loss resulting from the defaults on TDR loans was immaterial.

 

	Year ended December 31, 2022			Year ended December 31, 2021			Year ended December 31, 2020
(In thousands)	Number of Contracts	Amortized Cost		Number of Contracts	Amortized Cost		Number of Contracts	Recorded Investment
Commercial, financial and agricultural:							4	$	2,776
Commercial, financial and agricultural	5	$	2,091	—	$	—	(1)	(1)
PPP loans	—	—		—	—		(1)	(1)
Overdrafts	—	—		—	—		(1)	(1)
Commercial real estate	—	—		—	—		1	223
Construction real estate:
Commercial	—	—		—	—		—	—
Retail	—	—		1	648		1	14
Residential real estate:
Commercial	1	93		—	—		1	3
Mortgage	4	154		4	280		11	993
HELOC	1	10		2	135		—	—
Installment	—	—		1	27		3	32
Consumer							34	360
Consumer	19	174		14	169		(1)	(1)
GFSC	—	—		—	—		(1)	(1)
Check loans	—	—		—	—		(1)	(1)
Leases	—	—		—	—		—	—
Total loans	30	$	2,522	22	$	1,259	55	$	4,401

(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.

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Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2022

Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]

Financing Receivable, Current, Allowance for Credit Loss [Table Text Block]

The activity in the allowance for credit losses for the years ended December 31, 2022, 2021, and 2020 is summarized in the following tables.

	Year ended December 31, 2022
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for credit losses:
Beginning balance	$	14,025	$	25,466	$	5,758	$	11,424	$	26,286	$	238	$	83,197
Charge-offs	2,056		1,578		33		81		5,343		42		9,133
Recoveries	(826)		(627)		(1,343)		(164)		(3,767)		(31)		(6,758)
Net charge-offs (recoveries)	1,230		951		(1,310)		(83)		1,576		11		2,375
Provision (recovery)	4,192		(6,686)		(1,518)		5,324		3,311		(66)		4,557
Ending balance	$	16,987	$	17,829	$	5,550	$	16,831	$	28,021	161		$	85,379

 

	Year ended December 31, 2021
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for credit losses:
Beginning balance	$	25,608	$	23,480	$	7,288	$	11,363	$	17,418	$	518	$	85,675
Impact of adopting ASC 326	(8,257)		2,119		(1,898)		3,121		10,925		80		6,090
Charge-offs	957		35		—		49		4,052		—		5,093
Recoveries	(639)		(802)		(2,299)		(941)		(3,759)		(1)		(8,441)
Net charge-offs (recoveries)	318		(767)		(2,299)		(892)		293		(1)		(3,348)
(Recovery) Provision	(3,008)		(900)		(1,931)		(3,952)		(1,764)		(361)		(11,916)
Ending balance	$	14,025	$	25,466	$	5,758	$	11,424	$	26,286	$	238	$	83,197

	Year ended December 31, 2020
(In thousands)	Commercial, financial and agricultural		Commercial real estate		Construction real estate		Residential real estate		Consumer		Leases		Total
Allowance for credit losses:
Beginning balance	$	20,203	$	10,229	$	5,311	$	8,610	$	12,211	$	115	$	56,679
Charge-offs	1,468		1,824		6		356		6,634		16		10,304
Recoveries	(20,765)		(738)		(1,122)		(991)		(3,629)		(1)		(27,246)
Net (recoveries) charge-offs	(19,297)		1,086		(1,116)		(635)		3,005		15		(16,942)
(Recovery) Provision	(13,892)		14,337		861		2,118		8,212		418		12,054
Ending balance	$	25,608	$	23,480	$	7,288	$	11,363	$	17,418	$	518	$	85,675

Schedule of the composition of the allowance for loan losses

The composition of the ACL at December 31, 2022 and December 31, 2021 was as follows:

 

	December 31, 2022
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
ACL:
Ending allowance balance attributed to loans:
Individually evaluated for impairment	$	3,426		$	131		$	—		$	—		$	—		$	9		$	3,566
Collectively evaluated for impairment	13,561			17,698			5,550			16,831			28,021			152			$	81,813
Acquired with deteriorated credit quality	—			—			—			—			—			—			$	—
Total ending allowance balance	$	16,987		$	17,829		$	5,550		$	16,831		$	28,021		$	161		$	85,379
Loan balance:
Loans individually evaluated for impairment	$	41,307		$	32,423		$	1,712		$	2,191		$	—		$	708		$	78,341
Loans collectively evaluated for impairment	1,259,524			1,758,118			323,043			1,794,302			1,904,981			18,929			7,058,897
Loans acquired with deteriorated credit quality	102			3,513			660			378			—			—			4,653
Total ending loan balance	$	1,300,933		$	1,794,054		$	325,415		$	1,796,871		$	1,904,981		$	19,637		$	7,141,891
ACL as a percentage of loan balance:
Loans individually evaluated for impairment	8.29		%	0.40		%	—		%	—		%	—		%	1.27		%	4.55		%
Loans collectively evaluated for impairment	1.08		%	1.01		%	1.72		%	0.94		%	1.47		%	0.80		%	1.16		%
Loans acquired with deteriorated credit quality	—		%	—		%	—		%	—		%	—		%	—		%	—		%
Total	1.31		%	0.99		%	1.71		%	0.94		%	1.47		%	0.82		%	1.20		%

	December 31, 2021
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
ACL:
Ending allowance balance attributed to loans:
Individually evaluated for impairment	$	1,385		$	188		$	—		$	—		$	—		$	43		$	1,616
Collectively evaluated for impairment	12,640			25,278			5,758			11,424			26,286			195			$	81,581
Acquired with deteriorated credit quality	—			—			—			—			—			—			$	—
Total ending allowance balance	$	14,025		$	25,466		$	5,758		$	11,424		$	26,286		$	238		$	83,197
Loan balance:
Loans individually evaluated for impairment	$	22,666		$	47,820		$	222		$	2,606		$	—		$	1,188		$	74,502
Loans collectively evaluated for impairment	1,275,783			1,748,854			320,608			1,735,226			1,689,679			19,321			6,789,471
Loans acquired with deteriorated credit quality	177			5,118			956			875			—			23			7,149
Total ending loan balance	$	1,298,626		$	1,801,792		$	321,786		$	1,738,707		$	1,689,679		$	20,532		$	6,871,122
ACL as a percentage of loan balance:
Loans individually evaluated for impairment	6.11		%	0.39		%	—		%	—		%	—		%	3.62		%	2.17		%
Loans collectively evaluated for impairment	0.99		%	1.45		%	1.80		%	0.66		%	1.56		%	1.01		%	1.20		%
Loans acquired with deteriorated credit quality	—		%	—		%	—		%	—		%	—		%	—		%	—		%
Total	1.08		%	1.41		%	1.79		%	0.66		%	1.56		%	1.16		%	1.21		%

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

The following table shows the activity in goodwill and other intangible assets for the years ended December 31, 2022, 2021 and 2020.

 

(In thousands)	Goodwill		Other Intangible Assets		Total
January 1, 2020	$	159,595	$	11,523	$	171,118
Amortization	—		2,263		2,263
December 31, 2020	$	159,595	$	9,260	$	168,855
Amortization	—		1,798		1,798
December 31, 2021	$	159,595	$	7,462	$	167,057
Amortization	—		1,487		1,487
December 31, 2022	$	159,595	$	5,975	$	165,570

Goodwill

Schedule of Finite-Lived Intangible Assets

The following table shows the balance of acquired intangible assets as of December 31, 2022 and 2021.

	2022				2021
(In thousands)	Gross Carrying Amount		Accumulated Amortization/Impairment		Gross Carrying Amount		Accumulated Amortization
Other intangible assets:
Core deposit intangibles	$	14,456	$	8,481	$	14,456	$	6,994
Trade name intangible	1,300		1,300		1,300		1,300
Total	$	15,756	$	9,781	$	15,756	$	8,294

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The following is a schedule of estimated core deposit intangibles amortization expense for each of the next five years:

(In thousands)	Total
2023	$	1,323
2024	1,215
2025	1,042
2026	887
2027	754

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Foreclosed and Repossessed Assets (Tables)

12 Months Ended

Dec. 31, 2022

Other Assets [Abstract]

Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Table Text Block] [Text Block]

Foreclosed and Repossessed Assets

Park typically transfers a loan to OREO at the time that Park takes deed/title to the real estate property asset. The carrying amount of foreclosed properties held at December 31, 2022 and December 31, 2021 are listed below, as well as the recorded investment of loans secured by residential real estate properties for which formal foreclosure proceedings were in process at those dates.

(In thousands)	December 31, 2022		December 31, 2021
OREO:
Commercial real estate	$	1,354	$	—
Residential real estate	—		775
Total OREO	$	1,354	$	775
Loans in process of foreclosure:
Residential real estate	$	1,614	$	1,148

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of major categories of premises and equipment

The major categories of premises and equipment and accumulated depreciation are summarized as follows:

 

December 31 (In thousands)	2022		2021
Land	$	22,139	$	21,992
Buildings	97,510		97,128
Equipment, furniture and fixtures	77,446		76,675
Leasehold improvements	3,575		6,436
Software	28,665		24,698
Total	$	229,335	$	226,929
Less accumulated depreciation	(147,209)		(137,921)
Premises and equipment, net	$	82,126	$	89,008

Schedule of Property Subject to or Available for Operating Lease

Park records leased assets where Park acts as the lessor within "Other assets" on the Consolidated Balance Sheets. Equipment subject to lease agreements at December 31, 2022 and 2021 is summarized below:

December 31 (In thousands)	2022		2021
Equipment	$	4,427	$	7,298
Less accumulated depreciation	(3,162)		(4,860)
Leased assets, net	$	1,265	$	2,438

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Investments in Qualified Affordable Housing (Tables)

12 Months Ended

Dec. 31, 2022

Investments in Affordable Housing Projects [Abstract]

Activity in Affordable Housing Program Obligation

The table below details the balances of Park’s affordable housing tax credit investments and related unfunded commitments as of December 31, 2022 and 2021.

(In thousands)	December 31, 2022		December 31, 2021
Affordable housing tax credit investments	$	60,968	$	58,711
Unfunded commitments	28,132		28,484

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Deposits (Tables)

12 Months Ended

Dec. 31, 2022

Deposits [Abstract]

Deposit Liabilities, Type

At December 31, 2022 and 2021, non-interest bearing and interest bearing deposits were as follows:

 

December 31 (In thousands)	2022		2021
Non-interest bearing	$	3,074,276	$	3,066,419
Interest bearing	5,160,439		4,838,109
Total	$	8,234,715	$	7,904,528

Schedule of maturities of time deposits

At December 31, 2022, the maturities of time deposits were as follows: 

(In thousands)
2023	$	346,856
2024	122,885
2025	35,005
2026	24,463
2027	25,194
After 5 years	42
Total	$	554,445

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Repurchase Agreement Borrowings (Tables)

12 Months Ended

Dec. 31, 2022

Transfers of Financial Assets Accounted for as Secured Borrowings [Abstract]

Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings [Table Text Block]

The following table presents the carrying value of Park's repurchase agreement borrowings by remaining contractual maturity and collateral pledged at December 31, 2022 and December 31, 2021:

	December 31, 2022
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government sponsored entities' asset-backed securities	$	227,342	$	—	$	—	$	—	$	227,342
	December 31, 2021
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government sponsored entities' asset-backed securities	$	213,786	$	—	$	—	$	—	$	213,786

Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Table Text Block]

Repurchase Agreement Borrowings

Securities sold under agreements to repurchase ("repurchase agreements") with customers represent funds deposited by customers, generally on an overnight basis, that are collateralized by investment securities owned by Park. Repurchase agreements with customers are included in "Short-term borrowings" on the Consolidated Balance Sheets.

All repurchase agreements are subject to the terms and conditions of repurchase/security agreements between Park and the client and are accounted for as secured borrowings. Park's repurchase agreements consisted of customer accounts and securities which are pledged on an individual security basis.

At December 31, 2022 and December 31, 2021, Park's repurchase agreement borrowings totaled $227.3 million and $213.8 million, respectively. These borrowings were collateralized with U.S. government sponsored entities' asset-backed securities with a fair value of $313.1 million and $334.9 million at December 31, 2022 and December 31, 2021, respectively. Declines in the value of the collateral would require Park to pledge additional securities. As of December 31, 2022 and December 31, 2021, Park had $1,147 million and $1,225 million, respectively, of available unpledged securities.

The following table presents the carrying value of Park's repurchase agreement borrowings by remaining contractual maturity and collateral pledged at December 31, 2022 and December 31, 2021:

	December 31, 2022
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government sponsored entities' asset-backed securities	$	227,342	$	—	$	—	$	—	$	227,342
	December 31, 2021
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government sponsored entities' asset-backed securities	$	213,786	$	—	$	—	$	—	$	213,786

See Note 16 - Short-Term Borrowings for additional information related to repurchase agreements.

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Short Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2022

Short-Term Debt [Abstract]

Schedule of short-term debt

Short-Term Borrowings

Short-term borrowings were as follows:

December 31 (In thousands)	2022		2021
Securities sold under agreements to repurchase	$	227,342	$	213,786
FHLB advances	—		25,000
Total short-term borrowings	$	227,342	$	238,786

The outstanding balances for all short-term borrowings as of December 31, 2022 and 2021 and the weighted-average interest rates as of and paid during each of the years then ended were as follows: 

(In thousands)	Repurchase agreements			FHLB Advances
2022
Ending balance	$	227,342		$	—
Highest month-end balance	227,342			25,000
Average daily balance	199,813			7,195
Weighted-average interest rate:
As of year-end	1.39		%	—		%
Paid during the year (1)	0.57		%	0.04		%
2021
Ending balance	$	213,786		$	25,000
Highest month-end balance	297,118			25,000
Average daily balance	261,967			25,025
Weighted-average interest rate:
As of year-end	0.03		%	0.23		%
Paid during the year (1)	0.04		%	0.23		%

(1) Interest rate swaps with notional amounts of a zero balance at December 31, 2022 (the swap was paid off during 2022) and a balance of $25.0 million at December 31, 2021 were designated as cash flow hedges of certain FHLB advances. Including interest expense related to the swaps, the weighted average interest rate paid during the year on FHLB advances was 3.62% and 2.69% for 2022 and 2021, respectively.

During 2021 and 2022, outstanding FHLB advances were collateralized by investment securities owned by PNB and by various loans pledged under a blanket agreement by PNB. At December 31, 2022 and December 31, 2021, $7.2 million and $9.5 million, respectively, of investment securities were pledged as collateral for FHLB advances. At December 31, 2022 and December 31, 2021, $1,832 million and $1,749 million, respectively, of commercial real estate and residential mortgage loans were pledged under a blanket agreement to the FHLB by PNB. See Note 15 - Repurchase Agreement Borrowings for information related to investment securities collateralizing repurchase agreements.

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of maturities of long-term debt

Long-Term Debt

Park did not have long-term borrowings at either December 31, 2022 or December 31, 2021.

On February 18, 2020, Park prepaid $50 million of FHLB advances, incurring a $1.8 million prepayment penalty recognized within "FHLB prepayment penalty" on the Consolidated Statement of Income for the year ended December 31, 2020. These advances had an average interest rate of 3.01% and maturity dates of March 14, 2022 and September 15, 2022.

On December 3, 2020, Park prepaid $100 million of FHLB advances, incurring an $8.7 million prepayment penalty recognized within "FHLB prepayment penalty" on the Consolidated Statement of Income for the year ended December 31, 2020. These advances had an interest rate of 3.40% and a maturity date of December 1, 2023.

On June 20, 2019, Park issued a $50 million term note to U.S. Bank National Association. This term note had a maturity date of June 21, 2022 and accrued interest at a floating rate of one-month LIBOR plus 1.65%. On August 2, 2021, Park prepaid the outstanding balance of $27.5 million of the term note to U.S. Bank National Association.

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Derivatives (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

Summary information about Park's interest rate swaps as of December 31, 2022 and December 31, 2021 was as follows:

	December 31, 2022						December 31, 2021
(In thousands, except weighted average data)	Borrowing Derivatives			Loan Derivatives			Borrowing Derivatives			Loan Derivatives
Notional amounts	$	—		$	21,700		$	25,000		$	29,651
Weighted average pay rates	—		%	4.553		%	2.595		%	4.668		%
Weighted average receive rates	—		%	4.553		%	0.124		%	4.668		%
Weighted average maturity (years)	0.0			7.9			0.5			8.2
Unrealized losses	$	—		$	—		$	262		$	—

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents the net gains (losses), net of income taxes, recorded in OCI and the Consolidated Statements of Income related to interest rate swaps for the years ended December 31, 2022, 2021 and 2020:

	Year ended December 31, 2022
(In thousands)	Amount of Gain (Loss) Recognized in OCI (Effective Portion)		Amount of Gain (Loss) Reclassified from OCI to Interest Income		Amount of Expense Recognized in Miscellaneous Expense
Interest rate contracts	$	154	$	—	$	52

	Year ended December 31, 2021
(In thousands)	Amount of Gain (Loss) Recognized in OCI (Effective Portion)		Amount of Gain (Loss) Reclassified from OCI to Interest Income		Amount of Expense Recognized in Miscellaneous Expense
Interest rate contracts	$	492	$	—	$	—

	Year ended December 31, 2020
(In thousands)	Amount of Gain (Loss) Recognized in OCI (Effective Portion)		Amount of Gain (Loss) Reclassified from OCI to Interest Income		Amount of Expense Recognized in Miscellaneous Expense
Interest rate contracts	$	(244)	$	—	$	—

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table reflects the interest rate swaps included in the Consolidated Balance Sheets as of December 31, 2022 and 2021:

(In thousands)	December 31, 2022				December 31, 2021
	Notional Amount		Fair Value		Notional Amount		Fair Value
Included in "Other assets":
Borrowing derivatives - interest rate swaps related to FHLB advances	$	—	$	—	$	—	$	—
Loan derivatives - instruments associated with loans
Matched interest rate swaps with borrower	—		—		29,651		1,952
Matched interest rate swaps with counterparty	21,700		1,508		—		—
Total included in "Other assets"	$	21,700	$	1,508	$	29,651	$	1,952
Included in "Other liabilities":
Borrowing derivatives - interest rate swaps related to FHLB advances	$	—	$	—	$	25,000	$	(262)
Loan derivatives - instruments associated with loans
Matched interest rate swaps with borrower	21,700		(1,508)		—		—
Matched interest rate swaps with counterparty	—		—		29,651		(1,952)
Total included in "Other liabilities"	$	21,700	$	(1,508)	$	54,651	$	(2,214)

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Share Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Restricted Stock Unit, Activity

A summary of changes in the common shares subject to nonvested PBRSUs and TBRSUs for the years ended December 31, 2022 and 2021 follows:

	Common shares subject to PBRSUs and TBRSUs
Nonvested at January 1, 2021	204,108
Granted	61,890
Vested	(48,106)
Forfeited	(3,522)
Adjustment for performance conditions of PBRSUs (1)	(2,551)
Nonvested at January 1, 2022	211,819
Granted	52,335
Vested	(55,464)
Forfeited	(8,406)
Adjustment for performance conditions of PBRSUs (1)	(634)
Nonvested at December 31, 2022 (2)	199,650

(1) The number of PBRSUs earned depends on the level of achievement with respect to certain performance criteria. Adjustment herein represents the difference between the maximum number of common shares which could be earned and the actual number earned for those PBRSUs as to which the performance period was completed.

(2) Nonvested amount herein represents the maximum number of nonvested PBRSUs and TBRSUs. As of December 31, 2022, an aggregate of 198,737 PBRSUs and TBRSUs are expected to vest.

A summary of awards that vested during the twelve months ended December 31, 2022 and 2021 follows:

	Twelve Months Ended December 31,
	2022	2021
PBRSU and TBRSU vested	55,464	48,106
Common shares withheld to satisfy employee income tax withholding obligations	21,219	18,436
Net common shares issued	34,245	29,670

Share-based Payment Arrangement, Nonvested Award, Cost

The following table details expected additional share-based compensation expense related to PBRSUs and TBRSUs currently outstanding:

(In thousands)
2023	$	4,375
2024	2,869
2025	1,200
2026	193
Total	$	8,637

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Benefit Plan (Tables)

12 Months Ended

Dec. 31, 2022

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

Using accrual measurement dates of December 31, 2022 and 2021, plan assets and benefit obligation activity for the Pension Plan are listed below:

(In thousands)	2022		2021
Change in fair value of plan assets
Fair value at beginning of measurement period	$	263,473	$	230,442
Actual return on plan assets	(37,319)		48,138
Benefits paid	(17,016)		(15,107)
Fair value at end of measurement period	$	209,138	$	263,473
Change in benefit obligation
Projected benefit obligation at beginning of measurement period	$	182,964	$	184,410
Service cost	9,749		9,916
Interest cost	5,705		5,359
Plan amendments	558		—
Actuarial loss	(54,566)		(1,614)
Benefits paid	(17,016)		(15,107)
Projected benefit obligation at the end of measurement period	$	127,394	$	182,964
Funded status at end of year (fair value of plan assets less benefit obligation)	$	81,744	$	80,509

Schedule of allocation of plan assets

The asset allocation for the Pension Plan as of each measurement date, by asset category, was as follows:

 

		Percentage of Plan Assets
Asset category	Target Allocation	2022		2021
Equity securities	50% - 100%	84	%	82	%
Fixed income and cash equivalents	remaining balance	16	%	18	%
Total		100	%	100	%

Schedule of assumptions used to determine benefit obligations

The weighted average assumptions used to determine benefit obligations at December 31, 2022, 2021 and 2020 were as follows:

 

	2022		2021		2020
Discount rate	5.32	%	3.23	%	3.00	%
Rate of compensation increase
Under age 30	8.25	%	8.25	%	8.25	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40-49	5.00	%	5.00	%	5.00	%
Ages 50-54	4.25	%	4.25	%	4.25	%
Ages 55-59	3.75	%	3.75	%	3.75	%
Ages 60-64	3.50	%	3.50	%	3.50	%
Ages 65 and over	3.25	%	3.25	%	3.25	%
Interest crediting rate	4.07	%	N/A		N/A

Schedule of estimated future pension benefit Payments

The estimated future pension benefit payments reflecting expected future service for the next ten years are shown below (in thousands):

2023	$	9,684
2024	9,769
2025	10,143
2026	10,111
2027	11,053
2028-2032	51,388
Total	$	102,148

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The following table shows ending balances of accumulated other comprehensive loss at December 31, 2022 and 2021.

 

(In thousands)	2022		2021
Prior service (cost) credit	$	(436)	$	137
Net actuarial loss	(8,020)		(7,469)
Total	(8,456)		(7,332)
Deferred taxes	1,776		1,540
Accumulated other comprehensive loss	$	(6,680)	$	(5,792)

Schedule of components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss)

Using actuarial measurement dates of December 31 for 2022, 2021 and 2020, components of net periodic benefit income and other amounts recognized in other comprehensive (loss) income were as follows:

 

(In thousands)	2022		2021		2020		Affected Line Item in the Consolidated Statements of Income
Components of net periodic benefit income (loss) and other amounts recognized in other comprehensive (loss) income
Service cost	$	(9,749)	$	(9,916)	$	(8,319)	Employee benefits
Interest cost	(5,705)		(5,359)		(5,283)		Other components of net periodic benefit income
Expected return on plan assets	17,798		15,731		14,410		Other components of net periodic benefit income
Recognized net actuarial loss and prior service cost	15		(2,220)		(1,175)		Other components of net periodic benefit income
Net periodic benefit income (loss)	$	2,359	$	(1,764)	$	(367)
Net actuarial (loss) gain and prior service credit	$	(1,109)	$	34,019	$	(10,981)
Amortization of net (gain) loss	(15)		2,220		1,175
Total recognized in other comprehensive (loss) income	(1,124)		36,239		(9,806)
Total recognized in net benefit income (loss) and other comprehensive income (loss)	$	1,235	$	34,475	$	(10,173)

The fair value of the plan assets at December 31, 2022 and December 31, 2021, by asset class, is as follows.

	Fair Value Measurements				Fair Value Measurements
	at December 31, 2022, Using				at December 31, 2021, Using
(In thousands)	(Level 1)		(Level 2)		(Level 1)		(Level 2)
Interest-bearing account	$	1,959	$	3,910	$	3,222	$	4,731
Mutual funds	46,093		—		60,987		—
U.S. Government agency obligations	—		12,513		—		15,254
Corporate bonds	—		12,562		—		16,815
Common stocks	132,101		—		162,464		—
Total	$	180,153	$	28,985	$	226,673	$	36,800

Schedule of assumptions used to determine costs

The weighted average assumptions used to determine net periodic benefit income (loss) for the years ended December 31, 2022, 2021 and 2020 are listed below:

 

	2022		2021		2020
Discount rate	3.23	%	3.00	%	3.53	%
Rate of compensation increase
Under age 30	8.25	%	8.25	%	10.00	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40-49	5.00	%	5.00	%	4.00	%
Ages 50-54	4.25	%	4.25	%	3.00	%
Ages 55-59	3.75	%	3.75	%	3.00	%
Ages 60-64	3.50	%	3.50	%	3.00	%
Ages 65 and over	3.25	%	3.25	%	3.00	%
Expected long-term return on plan assets	6.92	%	7.00	%	7.00	%

Schedule of Net Benefit Costs

The expense for the Corporation was as follows:

(In thousands)	2022		2021		2020		Affected Line Item in the Consolidated Statements of Income
Service cost	$	1,091	$	1,345	$	1,680	Employee benefits
Interest cost	564		510		403		Miscellaneous expense
Total SERP expense	$	1,655	$	1,855	$	2,083

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax assets and liabilities are as follows:

 

December 31 (In thousands)	2022		2021
Deferred tax assets:
Allowance for credit losses	$	18,615	$	18,153
Accumulated other comprehensive loss – Pension Plan	1,776		1,540
Accumulated other comprehensive loss – Unrealized losses on swaps	—		55
Accumulated other comprehensive loss – Unrealized losses on debt securities AFS	25,443		—
Deferred compensation	6,255		6,294
OREO valuation adjustments	11		909
Net deferred loan fees	1,898		2,569
Deferred contract bonus	317		432
Nonvested equity-based compensation	2,827		2,694
Net operating loss ("NOL") carryforward	2,654		3,197
Capital loss carryforward	299		—
Fixed assets	510		249
Operating lease liability	4,206		3,111
Partnership adjustments	—		69
Other	1,950		1,854
Total deferred tax assets	$	66,761	$	41,126
Deferred tax liabilities:
Accumulated other comprehensive loss - Unrealized gains on debt securities AFS	$	—	$	5,623
Deferred investment income	4,890		6,363
Pension Plan	19,678		19,182
MSRs	3,445		3,333
Partnership adjustments	884		—
Purchase accounting adjustments	952		880
Operating lease right-of-use asset	3,837		2,917
Lessor adjustments	2,325		2,764
Other	565		514
Total deferred tax liabilities	$	36,576	$	41,576
Net deferred tax asset (liability)	$	30,185	$	(450)

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for federal income taxes are shown below:

 

December 31, (In thousands)	2022		2021		2020
Currently payable
Federal	$	22,574	$	28,726	$	22,769
State	1,180		1,382		1,432
Amortization of qualified affordable housing projects	7,743		7,313		7,046
Deferred
Federal	464		(3,006)		(4,812)
State	147		(125)		287
Total	$	32,108	$	34,290	$	26,722

Schedule of income tax rate reconciliation

The following is a reconciliation of income tax expense to the amount computed at the statutory federal corporate income tax rate of 21% for the years ended December 31, 2022, 2021 and 2020.

 

	2022		2021		2020
Statutory federal corporate income tax rate	21.0	%	21.0	%	21.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest	(1.6)	%	(1.2)	%	(1.5)	%
Bank owned life insurance	(0.7)	%	(0.5)	%	(0.7)	%
Investments in qualified affordable housing projects, net of tax benefits	(0.8)	%	(0.8)	%	(1.1)	%
KSOP dividend deduction	(0.5)	%	(0.5)	%	(0.6)	%
Other	0.4	%	0.2	%	0.2	%
Effective Tax Rate	17.8	%	18.2	%	17.3	%

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.

(In thousands)	2022		2021		2020
January 1 Balance	$	339	$	633	$	954
Additions based on tax positions related to the current year	—		—		12
Additions for tax positions of prior years	25		10		—
Reductions for tax positions of prior years	—		—		—
Reductions due to statute of limitations	(295)		(304)		(333)
December 31 Balance	$	69	$	339	$	633

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Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2022

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of components of other comprehensive income (loss)

Accumulated Other Comprehensive (Loss) Income

Other comprehensive (loss) income components, net of income tax, are shown in the following table for the years ended December 31, 2022, 2021 and 2020.

(in thousands)		Changes in Pension Plan assets and benefit obligations		Unrealized gains (losses) on AFS debt securities		Unrealized net holding loss on cash flow hedge		Total
Beginning balance at January 1, 2022		$	(5,792)	$	21,153	$	(206)	$	15,155
	Other comprehensive (loss) income before reclassifications	(876)		(116,867)		154		$	(117,589)
	Amounts reclassified from accumulated other comprehensive loss	(12)		—		52		$	40
Net current period other comprehensive (loss) income		$	(888)	$	(116,867)	$	206	$	(117,549)
Ending balance at December 31, 2022		$	(6,680)	$	(95,714)	$	—	$	(102,394)
Beginning balance at January 1, 2021		$	(34,421)	$	40,690	$	(698)	$	5,571
	Other comprehensive income (loss) before reclassifications	26,875		(19,537)		492		$	7,830
	Amounts reclassified from accumulated other comprehensive income	1,754		—		—		$	1,754
Net current period other comprehensive income (loss)		$	28,629	$	(19,537)	$	492	$	9,584
Ending balance at December 31, 2021		$	(5,792)	$	21,153	$	(206)	$	15,155
Beginning balance at January 1, 2020		$	(26,674)	$	17,539	$	(454)	$	(9,589)
	Other comprehensive (loss) income before reclassifications	(8,675)		25,747		(244)		$	16,828
	Amounts reclassified from accumulated other comprehensive income	928		(2,596)		—		$	(1,668)
Net current period other comprehensive (loss) income		$	(7,747)	$	23,151	$	(244)	$	15,160
Ending balance at December 31, 2020		$	(34,421)	$	40,690	$	(698)	$	5,571

The following table provides information concerning amounts reclassified out of accumulated other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020:

		Amount Reclassified from Accumulated Other Comprehensive (Loss) Income						Affected Line Item in the Consolidated Statements of Income
(In thousands)		2022		2021		2020
Amortization of defined benefit pension items
	Accretion of prior service credit	$	(15)	$	(15)	$	(15)	Employee benefits
	Amortization of net loss	—		2,235		1,190		Employee benefits
(Loss) Income before income taxes		(15)		2,220		1,175		Income before income taxes
	Income tax effect	(3)		466		247		Income taxes
	Net of income tax	$	(12)	$	1,754	$	928	Net income
Unrealized gains & losses on AFS debt securities
	Net gain on the sale of debt securities	$	—	$	—	$	(3,286)	Net gain on the sale of debt securities
Income before income taxes		—		—		(3,286)		Income before income taxes
	Income tax effect	—		—		(690)		Income taxes
	Net of income tax	$	—	$	—	$	(2,596)	Net income
Unrealized net holding loss on cash flow hedge
	Loss due to early termination of borrowing interest rate swap	$	66	$	—	$	—	Miscellaneous expense
Loss before income taxes		66		—		—		Income before income taxes
	Income tax effect	14		—		—		Income taxes
	Net of income tax	$	52	$	—	$	—	Net income

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted earnings per common share

The following table sets forth the computation of basic and diluted earnings per common share:

 

Year ended December 31 (In thousands, except share data)	2022		2021		2020
Numerator:
Net income	$	148,351	$	153,945	$	127,923
Denominator:
Weighted-average common shares outstanding	16,246,009		16,291,016		16,302,825
Effect of dilutive PBRSUs and TBRSUs	119,300		134,190		104,677
Weighted-average common shares outstanding adjusted for the effect of dilutive PBRSUs and TBRSUs	16,365,309		16,425,206		16,407,502
Earnings per common share:
Basic earnings per common share	$	9.13	$	9.45	$	7.85
Diluted earnings per common share	$	9.06	$	9.37	$	7.80

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Financial Instruments With Off-Balance Sheet Risk and Financial Instruments With Concentrations of Credit Risk (Tables)

12 Months Ended

Dec. 31, 2022

Risks and Uncertainties [Abstract]

Schedule of off-balance sheet financial instruments with credit risk

The total amounts of off-balance sheet financial instruments with credit risk were as follows:

 

December 31 (In thousands)	2022		2021
Loan commitments	$	1,416,699	$	1,364,224
Standby letters of credit	30,468		18,216

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Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2022

Transfers and Servicing of Financial Assets [Abstract]

Schedule of servicing assets at amortized value

Activity for MSRs and the related valuation allowance follows:

 

December 31 (In thousands)	2022		2021		2020
MSRs:
Carrying amount, net, beginning of year	$	15,264	$	12,210	$	10,070
Additions	1,455		4,945		8,627
Amortization	(2,313)		(3,512)		(4,123)
Change in valuation allowance	1,386		1,621		(2,364)
Carrying amount, net, end of year	$	15,792	$	15,264	$	12,210
Valuation allowance:
Beginning of year	$	1,568	$	3,189	$	825
Change in valuation allowance	(1,386)		(1,621)		2,364
End of year	$	182	$	1,568	$	3,189

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Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Lease, Cost

Other information related to operating leases for the years ended December 31, 2022, 2021 and 2020 follows:

(In thousands)	Year ended December 31, 2022		Year ended December 31, 2021		Year ended December 31, 2020
Lease cost
Operating lease cost	$	3,073	$	2,827	$	3,463
Sublease income	(252)		(253)		(352)
Total lease cost	$	2,821	$	2,574	$	3,111
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,116	$	3,199	$	3,553
ROU assets obtained in exchange for new operating lease liabilities	$	7,867	$	1,190	$	7,821
Reductions to ROU assets resulting from reductions to lease obligations	$	(2,812)	$	(2,865)	$	(3,084)

Lessee, Operating Lease, Liability, Maturity

Park's operating leases had a weighted average remaining term of 10.0 years and 6.8 years at December 31, 2022 and 2021, respectively. The weighted average discount rate of Park's operating leases was 3.3% and 2.3% at December 31, 2022 and 2021, respectively.

Undiscounted cash flows included in lease liabilities at December 31, 2022 have expected contractual payments as follows:

(In thousands)	December 31, 2022
2023	$	3,599
2024	2,485
2025	2,142
2026	2,097
2027	2,030
Thereafter	11,020
Total undiscounted minimum lease payments	$	23,373
Less: imputed interest	(4,082)
Total lease liabilities	$	19,291

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Fair Value (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of financial assets and liabilities measured on a recurring basis

The following table presents assets and liabilities measured at fair value on a recurring basis:

 

Fair Value Measurements at December 31, 2022 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2022
Assets
Investment securities:
Obligations of U.S. Government sponsored entities	$	—	$	37,213	$	—	$	37,213
Obligations of states and political subdivisions	—		406,711		—		406,711
U.S. Government sponsored entities’ asset-backed securities	—		756,761		—		756,761
Collateralized loan obligations	—		516,539		—		516,539
Corporate debt securities	—		9,472		7,000		16,472
Equity securities	1,420		—		439		1,859
Mortgage loans held for sale	—		2,149		—		2,149
Mortgage IRLCs	—		46		—		46
Loan interest rate swaps	—		1,508		—		1,508
Liabilities
Fair value swap	$	—	$	—	$	243	$	243
Loan interest rate swaps	—		1,508		—		1,508

 

Fair Value Measurements at December 31, 2021 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2021
Assets
Investment securities:
Obligations of states and political subdivisions	$	—	$	389,591	$	—	$	389,591
U.S. Government sponsored entities’ asset-backed securities	—		854,463		—		854,463
Collateralized loan obligations	—		498,674		—		498,674
Corporate debt securities	—		11,412		—		11,412
Equity securities	1,630		—		499		2,129
Mortgage loans held for sale	—		9,387		—		9,387
Mortgage IRLCs	—		333		—		333
Loan interest rate swaps	—		1,952		—		1,952
Liabilities
Fair value swap	$	—	$	—	$	226	$	226
Borrowing interest rate swap	—		262		—		262
Loan interest rate swaps	—		1,952		—		1,952

The following methods and assumptions were used by the Company in determining the fair value of the financial assets and liabilities discussed above:

Interest rate swaps:  The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2).

Investment securities: Fair values for investment securities are based on quoted market prices, where available (Level 1). If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows (Level 3).

Fair value swap: The fair value of the swap agreement entered into with the purchaser of the Visa Class B shares represents an internally developed estimate of the exposure based upon probability-weighted potential Visa litigation losses and is classified as Level 3.

Mortgage interest rate lock commitments: Mortgage IRLCs are based on current secondary market pricing and are classified as Level 2.

Mortgage loans held for sale: Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale are estimated using market prices for similar product types and, therefore, are classified in Level 2.

Schedule of reconciliation of level 3 input for financial instruments measured on recurring basis

for the years ended December 31, 2022 and 2021, for financial instruments measured on a recurring basis and classified as Level 3: 

Level 3 Fair Value Measurements
(In thousands)	Corporate debt securities		Equity securities		Fair value swap
Balance at January 1, 2022	$	—	$	499	$	(226)
Total Losses
Included in other income / expense	—		(60)		(221)
Transfers into level 3	7,000		—		—
Purchases, sales, issuances and settlements, other, net	—		—		204
Balance at December 31, 2022	$	7,000	$	439	$	(243)
Balance at January 1, 2021	$	—	$	485	$	(226)
Total Gains
Included in other income	—		14		—
Balance at December 31, 2021	$	—	$	499	$	(226)

Schedule of assets and liabilities measured at fair value on a nonrecurring basis

Fair Value Measurements at December 31, 2022 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2022
Individually evaluated collateral dependent loans recorded at fair value:
Commercial real estate	$	—	$	—	$	5,573	$	5,573
Residential real estate	—		—		200		200
Total individually evaluated collateral dependent loans recorded at fair value	$	—	$	—	$	5,773	$	5,773
MSRs	$	—	$	1,717	$	—	$	1,717
OREO recorded at fair value	$	—	$	—	$	—	$	—
Other repossessed assets	$	—	$	—	$	—	$	—

Fair Value Measurements at December 31, 2021 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2021
Individually evaluated collateral dependent loans recorded at fair value:
Commercial real estate	$	—	$	—	$	831	$	831
Residential real estate	—		—		272		272
Total individually evaluated collateral dependent loans recorded at fair value	$	—	$	—	$	1,103	$	1,103
MSRs	$	—	$	13,482	$	—	$	13,482
OREO recorded at fair value:
Residential real estate	—		—		775		775
Total OREO recorded at fair value	$	—	$	—	$	775	$	775
Other repossessed assets	$	—	$	—	$	2,750	$	2,750

Impaired Financing Receivables [Table Text Block]

	December 31, 2022
(In thousands)	Loan Balance		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Total individually evaluated collateral dependent loans recorded at fair value	$	5,903	$	1,523	$	130	$	5,773
Remaining individually evaluated loans	72,438		252		3,436		69,002
Total individually evaluated loans	$	78,341	$	1,775	$	3,566	$	74,775

	December 31, 2021
(In thousands)	Recorded Investment		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Total individually evaluated collateral dependent loans recorded at fair value	$	1,291	$	240	$	188	$	1,103
Remaining individually evaluated loans	73,211		384		1,428		71,783
Total individually evaluated loans	$	74,502	$	624	$	1,616	$	72,886

Schedule of qualitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2022 and December 31, 2021:

December 31, 2022
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated collateral dependent loans:
Commercial real estate	$	5,573	Sales comparison approach	Adj to comparables	0.0% - 202.0% (19.4%)
			Income approach	Capitalization rate	7.0% - 10.0% (7.9%)
			Cost approach	Entrepreneurial profit	10.0% - 12.0% (11.4%)
			Cost approach	Accumulated depreciation	38.8% (38.8%)
Residential real estate	$	200	Sales comparison approach	Adj to comparables	1.9% - 119.8% (17.4%)

December 31, 2021
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated collateral dependent loans:
Commercial real estate	$	831	Sales comparison approach	Adj to comparables	0.0% - 232.0% (28.3%)
Residential real estate	$	272	Sales comparison approach	Adj to comparables	0.5% - 78.6% (11.6%)
			Cost approach	Accumulated depreciation	8.3% (8.3%)
Other real estate owned:
Residential real estate	$	775	Sales comparison approach	Adj to comparables	5.0% - 32.5% (19.1%)

Fair value, by balance sheet grouping

December 31, 2022 and December 31, 2021 was as follows:

	December 31, 2022
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	189,728	$	189,728	$	—	$	—	$	189,728
Investment securities (1)	1,733,696		—		1,726,696		7,000		1,733,696
Other investment securities (2)	1,859		1,420		—		439		1,859
Mortgage loans held for sale	2,149		—		2,149		—		2,149
Mortgage IRLCs	46		—		46		—		46
Individually evaluated loans carried at fair value	5,773		—		—		5,773		5,773
Other loans, net	7,048,544		—		—		6,918,326		6,918,326
Loans receivable, net	$	7,056,512	$	—	$	2,195	$	6,924,099	$	6,926,294
Financial liabilities:
Time deposits	$	554,445	$	—	$	552,443	$	—	$	552,443
Other	1,325		1,325		—		—		1,325
Deposits (excluding demand deposits)	$	555,770	$	1,325	$	552,443	$	—	$	553,768
Short-term borrowings	$	227,342	$	—	$	227,342	$	—	$	227,342
Subordinated notes	188,667		—		177,928		—		177,928
Derivative financial instruments - assets:
Loan interest rate swaps	$	1,508	$	—	$	1,508	$	—	$	1,508
Derivative financial instruments - liabilities:
Fair value swap	$	243	$	—	$	—	$	243	$	243
Loan interest rate swaps	1,508		—		1,508		—		1,508

(1) Includes debt securities AFS.

(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.

	December 31, 2021
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	219,180	$	219,180	$	—	$	—	$	219,180
Investment securities (1)	1,754,140		—		1,754,140		—		1,754,140
Other investment securities (2)	2,129		1,630		—		499		2,129
Mortgage loans held for sale	9,387		—		9,387		—		9,387
Mortgage IRLCs	333		—		333		—		333
Individually evaluated loans carried at fair value	1,103		—		—		1,103		1,103
Other loans, net	6,777,102		—		—		6,783,848		6,783,848
Loans receivable, net	$	6,787,925	$	—	$	9,720	$	6,784,951	$	6,794,671
Financial liabilities:
Time deposits	$	711,660	$	—	$	714,307	$	—	$	714,307
Other	1,465		1,465		—		—		1,465
Deposits (excluding demand deposits)	$	713,125	$	1,465	$	714,307	$	—	$	715,772
Short-term borrowings	$	238,786	$	—	$	238,786	$	—	$	238,786
Subordinated notes	188,210		—		207,912		—		207,912
Derivative financial instruments - assets:
Loan interest rate swaps	$	1,952	$	—	$	1,952	$	—	$	1,952
Derivative financial instruments - liabilities:
Fair value swap	$	226	$	—	$	—	$	226	$	226
Borrowing interest rate swap	262		—		262		—		262
Loan interest rate swaps	1,952		—		1,952		—		1,952

(1) Includes debt securities AFS.

(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.

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Capital Ratios (Tables)

12 Months Ended

Dec. 31, 2022

Banking Regulation, Total Capital [Abstract]

Schedule of compliance with regulatory capital requirements under banking regulations

The following table indicates the capital ratios for PNB and Park at December 31, 2022 and 2021.

 

	As of December 31, 2022
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
PNB	8.34	%	10.69	%	10.69	%	12.15	%
Park	9.90	%	12.76	%	12.57	%	16.07	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well-capitalized ratio - PNB	5.00	%	8.00	%	6.50	%	10.00	%
Well-capitalized ratio - Park	N/A		6.00	%	N/A		10.00	%

 

	As of December 31, 2021
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
PNB	8.58	%	11.05	%	11.05	%	12.56	%
Park	9.77	%	12.57	%	12.37	%	16.05	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well-capitalized ratio - PNB	5.00	%	8.00	%	6.50	%	10.00	%
Well-capitalized ratio - Park	N/A		6.00	%	N/A		10.00	%

Schedule of various measures of capital ratio

The following table reflects various measures of capital for Park and PNB:

 

					To Be Adequately Capitalized				To Be Well-Capitalized
(In thousands)	Actual Amount		Ratio		Amount		Ratio		Amount		Ratio
At December 31, 2022
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	965,470	12.15	%	$	635,769	8.00	%	$	794,711	10.00	%
Park	1,283,409		16.07	%	639,102		8.00	%	798,877		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	849,886	10.69	%	$	476,827	6.00	%	$	635,769	8.00	%
Park	1,019,149		12.76	%	479,326		6.00	%	479,326		6.00	%
Leverage Ratio (to average total assets)
PNB	$	849,886	8.34	%	$	407,836	4.00	%	$	509,795	5.00	%
Park	1,019,149		9.90	%	411,838		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	$	849,886	10.69	%	$	357,620	4.50	%	$	516,562	6.50	%
Park	1,004,149		12.57	%	359,495		4.50	%	N/A		N/A
At December 31, 2021
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	937,438	12.56	%	$	597,094	8.00	%	$	746,368	10.00	%
Park	1,202,225		16.05	%	599,102		8.00	%	748,878		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	825,045	11.05	%	$	447,821	6.00	%	$	597,094	8.00	%
Park	941,536		12.57	%	449,327		6.00	%	449,327		6.00	%
Leverage Ratio (to average total assets)
PNB	$	825,045	8.58	%	$	384,582	4.00	%	$	480,728	5.00	%
Park	941,536		9.77	%	385,313		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	825,045		11.05	%	335,866		4.50	%	485,139		6.50	%
Park	926,536		12.37	%	336,995		4.50	%	N/A		N/A

XML

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of operating results by Segment

Operating results for the year ended December 31, 2022 (In thousands)
	PNB		All Other		Total
Net interest income	$	350,646	$	(3,587)	$	347,059
Provision for (recovery of) credit losses	5,834		(1,277)		4,557
Other income	115,211		20,724		135,935
Other expense	283,670		14,308		297,978
Income before income taxes	176,353		4,106		180,459
Income tax expense (benefit)	33,110		(1,002)		32,108
Net income	$	143,243	$	5,108	$	148,351
Balances at December 31, 2022
Assets	$	9,815,951	$	39,042	$	9,854,993
Loans	7,141,362		529		7,141,891
Deposits	8,534,320		(299,605)		8,234,715

Operating results for the year ended December 31, 2021 (In thousands)
	PNB		All Other		Total
Net interest income	$	328,398	$	1,495	$	329,893
Recovery of credit losses	(8,554)		(3,362)		(11,916)
Other income	126,802		3,142		129,944
Other expense	266,678		16,840		283,518
Income (loss) before income taxes	197,076		(8,841)		188,235
Income tax expense (benefit)	37,615		(3,325)		34,290
Net income (loss)	$	159,461	$	(5,516)	$	153,945
Balances at December 31, 2021
Assets	$	9,538,217	$	22,037	$	9,560,254
Loans	6,868,935		2,187		6,871,122
Deposits	8,157,720		(253,192)		7,904,528

Operating results for the year ended December 31, 2020 (In thousands)
	PNB		All Other		Total
Net interest income	$	326,375	$	1,255	$	327,630
Provision for (recovery of) credit losses	30,813		(18,759)		12,054
Other income	124,231		1,433		125,664
Other expense	268,938		17,657		286,595
Income before income taxes	150,855		3,790		154,645
Income tax expense (benefit)	27,125		(403)		26,722
Net income	$	123,730	$	4,193	$	127,923
Balances at December 31, 2020
Assets	$	9,236,915	$	42,106	$	9,279,021
Loans	7,165,840		11,945		7,177,785
Deposits	7,820,983		(248,625)		7,572,358

Schedule of reconciliation of financial information for the reportable segments to the Corporation’s consolidated totals

The following is a reconciliation of financial information for the reportable segments to the Corporation’s consolidated totals:

 

	2022
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	350,646	$	13,819	$	269,851	$	33,110	$	9,815,951	$	8,534,320
Elimination of intersegment items	1,250		—		—		—		(3,042)		(299,993)
"All Other" totals - not eliminated	(4,837)		—		14,308		(1,002)		42,084		388
Totals	$	347,059	$	13,819	$	284,159	$	32,108	$	9,854,993	$	8,234,715

 

	2021
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	328,398	$	13,265	$	253,413	$	37,615	$	9,538,217	$	8,157,720
Elimination of intersegment items	1,250		—		—		—		(1,413)		(254,060)
"All Other" totals - not eliminated	245		2		16,838		(3,325)		23,450		868
Totals	$	329,893	$	13,267	$	270,251	$	34,290	$	9,560,254	$	7,904,528

 

	2020
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	326,375	$	10,803	$	258,135	$	27,125	$	9,236,915	$	7,820,983
Elimination of intersegment items	1,250		—		—		—		(1,028)		(250,965)
"All Other" totals - not eliminated	5		11		17,646		(403)		43,134		2,340
Totals	$	327,630	$	10,814	$	275,781	$	26,722	$	9,279,021	$	7,572,358

XML

Parent Company Statements (Tables)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Balance Sheets

Condensed Balance Sheets
December 31, 2022 and 2021
(In thousands)	2022		2021
Assets:
Cash	$	274,464	$	243,531
Investment in subsidiaries	941,826		1,020,556
Debentures receivable from PNB	25,000		25,000
Other investments	1,177		1,384
Other assets	36,636		18,852
Total assets	$	1,279,103	$	1,309,323
Liabilities:
Subordinated notes	$	188,667	$	188,210
Other payables to subsidiaries	3,625		—
Other liabilities	17,585		10,354
Total liabilities	$	209,877	$	198,564
Total shareholders’ equity	$	1,069,226	$	1,110,759
Total liabilities and shareholders’ equity	$	1,279,103	$	1,309,323

Statements of Income

Condensed Statements of Income
for the years ended December 31, 2022, 2021 and 2020
(In thousands)	2022		2021		2020
Income:
Dividends from subsidiaries	$	120,000	$	115,500	$	97,000
Interest and dividends	1,250		1,250		1,250
Other	2,478		2,016		98
Total income	123,728		118,766		98,348
Expense:
Interest expense	$	8,833	$	8,887	$	4,311
Other, net	10,504		10,707		12,234
Total expense	19,337		19,594		16,545
Income before income taxes and equity in undistributed income of subsidiaries	$	104,391	$	99,172	$	81,803
Income tax benefit	5,142		4,897		4,390
Income before equity in undistributed income of subsidiaries	109,533		104,069		86,193
Equity in undistributed income of subsidiaries	38,818		49,876		41,730
Net income	$	148,351	$	153,945	$	127,923
Other comprehensive (loss) income (1)	(117,549)		9,584		15,160
Comprehensive income	$	30,802	$	163,529	$	143,083

(1) See Consolidated Statements of Comprehensive Income for other comprehensive (loss) income detail.

Statements of Cash Flows

Statements of Cash Flows
for the years ended December 31, 2022, 2021 and 2020
(In thousands)	2022		2021		2020
Operating activities:
Net income	$	148,351	$	153,945	$	127,923
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income of subsidiaries	(38,818)		(49,876)		(41,730)
Compensation expense for issuance of treasury shares to directors	1,320		1,676		1,274
Share-based compensation expense	5,879		6,345		5,998
Gain (loss) on equity securities, net	207		(1,218)		245
(Increase) decrease in other assets	(2,514)		8,249		6,632
Increase (decrease) in other liabilities	4,896		(2,407)		(6,325)
Net cash provided by operating activities	119,321		116,714		94,017
Investing activities:
Proceeds from sales of securities	—		934		—
Other, net	(9,021)		2,332		(2,621)
Net cash (used in) provided by investing activities	(9,021)		3,266		(2,621)
Financing activities:
Cash dividends paid	(76,604)		(74,306)		(70,353)
Proceeds from issuance of long-term debt	—		—		172,620
Repayment of long-term debt	—		(32,500)		(10,000)
Repurchase of treasury shares	—		(16,048)		(7,507)
Cash payment for fractional shares	(2)		(6)		(3)
Value of common shares withheld to pay employee income taxes	(2,761)		(2,403)		(1,002)
Net cash (used in) provided by financing activities	(79,367)		(125,263)		83,755
Increase (decrease) in cash	30,933		(5,283)		175,151
Cash at beginning of year	243,531		248,814		73,663
Cash at end of year	$	274,464	$	243,531	$	248,814

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Revenue from Contract with Customer (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table presents the Corporation's sources of other income by revenue stream and operating segment for the years ended December 31, 2022, 2021, and 2020:

	Year ended December 31, 2022
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	10,091	$	—	$	10,091
Employee benefit and retirement-related accounts	9,698		—		9,698
Investment management and investment advisory agency accounts	12,442		—		12,442
Other	1,860		—		1,860
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	6,095		—		6,095
Demand deposit account (DDA) charges	3,439		—		3,439
Other	557		—		557
Other service income (1)
Credit card	2,808		—		2,808
HELOC	397		—		397
Installment	163		—		163
Real estate	9,952		—		9,952
Commercial	1,214		761		1,975
Debit card fee income	26,046		—		26,046
Bank owned life insurance income (2)	4,656		1,444		6,100
ATM fees	2,273		—		2,273
Gain on the sale of OREO, net	4		5,607		5,611
OREO valuation markup	30		12,009		12,039
Gain on equity securities, net (2)	2,068		887		2,955
Other components of net periodic pension benefit income (2)	11,819		289		12,108
Miscellaneous (3)	9,599		(273)		9,326
Total other income	$	115,211	$	20,724	$	135,935

(1) Of the $15.3 million of aggregate revenue included within "Other service income", approximately $5.6 million is within the scope of ASC 606, with the remaining $9.7 million consisting primarily of residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $9.3 million, all of which are within the scope of ASC 606.

	Year ended December 31, 2021
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	10,264	$	—	$	10,264
Employee benefit and retirement-related accounts	9,705		—		9,705
Investment management and investment advisory agency accounts	12,620		—		12,620
Other	1,860		—		1,860
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	5,244		—		5,244
Demand deposit account (DDA) charges	3,074		—		3,074
Other	514		—		514
Other service income (1)
Credit card	2,559		4		2,563
HELOC	389		—		389
Installment	148		—		148
Real estate	24,907		—		24,907
Commercial	1,280		525		1,805
Debit card fee income	25,865		—		25,865
Bank owned life insurance income (2)	4,202		695		4,897
ATM fees	2,379		—		2,379
Loss on the sale of OREO, net	(4)		—		(4)
OREO valuation markup	64		—		64
Gain on equity securities, net (2)	3,793		1,218		5,011
Other components of net periodic pension benefit income (2)	7,946		206		8,152
Miscellaneous (3)	9,993		494		10,487
Total other income	$	126,802	$	3,142	$	129,944

(1) Of the $29.8 million of revenue included within "Other service income", approximately $5.3 million is within the scope of ASC 606, with the remaining $24.5 million consisting primarily of residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $10.5 million, all of which are within the scope of ASC 606.

	Year ended December 31, 2020
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	8,761	$	—	$	8,761
Employee benefit and retirement-related accounts	7,921		—		7,921
Investment management and investment advisory agency accounts	10,652		—		10,652
Other	1,539		—		1,539
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	4,999		—		4,999
Demand deposit account (DDA) charges	2,920		—		2,920
Other	526		—		526
Other service income (1)
Credit card	2,108		4		2,112
HELOC	424		—		424
Installment	165		—		165
Real estate	32,827		62		32,889
Commercial	1,493		528		2,021
Debit card fee income	22,160		—		22,160
Bank owned life insurance income (2)	4,521		268		4,789
ATM fees	1,773		—		1,773
Gain on the sale of OREO, net	836		371		1,207
OREO valuation markup	105		—		105
Net gain on sale of debt securities (2)	3,286		—		3,286
Gain (loss) on equity securities, net (2)	2,429		(247)		2,182
Other components of net periodic pension benefit income (2)	7,759		193		7,952
Miscellaneous (3)	7,027		254		7,281
Total other income	$	124,231	$	1,433	$	125,664

(1) Of the $37.6 million of revenue included within "Other service income", approximately $5.2 million is within the scope of ASC 606, with the remaining $32.4 million consisting primarily of residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $7.3 million, all of which are within the scope of ASC 606.

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Summary of Significant Accounting Policies (Details) - USD ($)

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financing Receivable [Policy Text Block]

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Accrued interest receivable totaled $22.3 million and $17.1 million at December 31, 2022 and 2021, respectively, and was reported in "Accrued interest receivable" on the Consolidated Balance Sheets. Late charges on loans are recognized as income when they are collected. Net loan origination fees and costs are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) those commercial loans in the construction real estate loan segment; (4) those commercial loans in the residential real estate loan segment; and (5) leases. Consumer loans include: (1) mortgage and installment loans included in the construction real estate segment; (2) mortgage, home equity lines of credit ("HELOCs"), and installment loans included in the residential real estate segment; and (3) all loans included in the consumer segment.

Generally, commercial loans are placed on nonaccrual status at 90 days past due and consumer and residential mortgage loans are placed on nonaccrual status at 120 days past due. The delinquency status of a loan is based on contractual terms and not on

how recently payments have been received. Park’s charge-off policy for commercial loans requires management to establish a specific reserve or record a charge-off when collection is in doubt and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing a loan. The Company’s charge-off policy for consumer loans is dependent on the class of the loan. Residential mortgage loans, HELOCs, and consumer loans secured by residential real estate are typically charged down to the value of the collateral, less estimated selling costs, at 180 days past due. The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful.

For loans which are on nonaccrual status, it is Park’s policy to reverse interest previously accrued on the loans against interest income. Interest on such loans may be recorded on a cash basis and be included in earnings only when Park expects to receive the entire recorded investment of the respective loans. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below:

Commercial, financial and agricultural: Commercial, financial and agricultural ("C&I") loans are made for a wide variety of general corporate purposes, including financing for commercial and industrial properties, financing for equipment, inventory and accounts receivable, acquisition financing, commercial leasing, and loans originated by consumer finance companies. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. Risk of loss on C&I loans largely depends upon general economic cycles, as they may adversely impact certain industries, competency of the borrower's management team, the quality of the underlying assets supporting the loans including accounts receivable, inventory, and equipment, and the accuracy of the borrower's financial reporting. Such risks are mitigated by generally requiring the borrower's owners to guaranty the loans.

Commercial real estate: Commercial real estate (“CRE”) loans include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate. Risk of loss on CRE loans largely depends upon the cash flow of the properties, which is influenced by the amount of vacancy experienced with respect to underlying real estate, the credit capacity of the tenants occupying the underlying real estate, and general economic trends, as they may adversely impact the value of a property. These risks are mitigated by generally requiring personal guarantees of the owners of the properties and by requiring appraisals pursuant to government regulations.

Construction real estate: The Company defines construction loans as both commercial construction loans and residential construction loans where the loan proceeds are used exclusively for the improvement of real estate. Construction loans may be in the form of a permanent loan or a short-term construction loan, depending on the needs of the individual borrower. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, Park may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, Park may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event that a default on a construction loan occurs and foreclosure follows, Park must take control of the project and attempt to either arrange for completion of construction or dispose of the unfinished project. Additional risks exist with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. Park attempts to reduce such risks on loans to developers by generally requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer.

Residential real estate: The Company defines residential real estate loans as first mortgages on individuals’ primary residences or second mortgages on individuals’ primary residences in the form of HELOCs or installment loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stable employment, an established credit record and a current independent third-party appraisal providing the market value of the real estate securing the loan. Residential real estate loans typically have longer terms and higher balances with lower yields as compared to consumer loans, but generally carry lower risks of default. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires creditors to make a reasonable and good faith determination of a consumer's ability to repay any consumer credit transaction secured by a dwelling. Documentation and verification of income within defined time frames and not-to-exceed limits are bases for affirming ability to repay. Risk of loss largely depends upon factors affecting the borrower's ability to repay as well as the general economic trends as they may adversely impact the value

of the property. These risks are mitigated by completing a comprehensive underwriting of the borrower and by requiring appraisals pursuant to government regulations.

Consumer: The Company originates direct and indirect consumer loans, primarily automobile loans, to customers in the Company's primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stable employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s financial stability, and thus are more likely to be affected by adverse personal circumstances.

Leases: The Company originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment. Repayment terms are structured such that the lease will be repaid within the economic useful life of the leased asset. Risk of losses on financing leases largely depends upon general economic cycles, as they may adversely impact certain industries, competency of the borrower’s management team, the quality and residual value of the leased asset, and the accuracy of the borrower’s financial reporting. These risks are mitigated by underwriting leases considering primary and secondary sources of repayment and requiring guaranteed residual values.

Accounting Policies [Line Items]

Other Repossessed Assets

$ 605,000

$ 3,300,000

Loans Receivable [Member]

Accounting Policies [Line Items]

Interest Receivable

22,300,000

17,100,000

Available-for-sale Securities [Member]

Accounting Policies [Line Items]

Interest Receivable

$ 12,400,000

$ 6,300,000

XML

Summary of Significant Accounting Policies - Depreciable Lives of Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Minimum | Building [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	30 years
Minimum | Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	3 years
Minimum | Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	5 years
Maximum | Building [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	30 years
Maximum | Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	12 years
Maximum | Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	10 years

XML

Adoption of New Accounting Pronouncements and Issued Not Yet Effective Accounting Standards (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase	$ 52
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	83,197	$ 85,379	$ 85,675	$ 56,679
Off-Balance Sheet, Credit Loss, Liability	4,282	5,214	116
Net deferred tax asset (liability)	450		2,892
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,110,759	1,069,226	1,040,256
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	6,871,122	7,141,891	7,177,785
Commercial Financial Agricultural [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			25,608
Commercial Real Estate Portfolio Segment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			23,480
Construction Real Estate [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			7,288
Residential real estate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			11,363
Consumer Portfolio Segment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			17,418
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	3,002,936
Finance Leases Portfolio Segment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			518
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase	52
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	6,090		6,090
Off-Balance Sheet, Credit Loss, Liability	3,900		3,866
Net deferred tax asset (liability)	(2,100)		(2,115)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(8,000)		(7,956)
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss			(119)
Cumulative Effect, Period of Adoption, Adjustment | Commercial Financial Agricultural [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			(8,257)
Cumulative Effect, Period of Adoption, Adjustment | Commercial Real Estate Portfolio Segment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			2,119
Cumulative Effect, Period of Adoption, Adjustment | Construction Real Estate [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			(1,898)
Cumulative Effect, Period of Adoption, Adjustment | Residential real estate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			3,121
Cumulative Effect, Period of Adoption, Adjustment | Consumer Portfolio Segment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			10,925
Cumulative Effect, Period of Adoption, Adjustment | Finance Leases Portfolio Segment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			80
Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			91,765
Off-Balance Sheet, Credit Loss, Liability			3,982
Net deferred tax asset (liability)			777
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest			1,032,300
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss			7,177,666
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial Financial Agricultural [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			17,351
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial Real Estate Portfolio Segment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			25,599
Cumulative Effect, Period of Adoption, Adjusted Balance | Construction Real Estate [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			5,390
Cumulative Effect, Period of Adoption, Adjusted Balance | Residential real estate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			14,484
Cumulative Effect, Period of Adoption, Adjusted Balance | Consumer Portfolio Segment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			28,343
Cumulative Effect, Period of Adoption, Adjusted Balance | Finance Leases Portfolio Segment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest			598
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	776,294	$ 847,235	704,764	$ 646,847
Accounting Standards Update 2016-13 | Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest	$ 8,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest			(7,956)
Accounting Standards Update 2016-13 | Retained Earnings | Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest			$ 696,808

XML

Investment Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investment [Line Items]
Other than Temporary Impairment Losses, Investments	$ 0	$ 0	$ 0
Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity [Table Text Block]	$ 0
Percentage of amount greater than shareholder's equity	10.00%
Debt Securities, Available for Sale, Sold at Gain, Amortized Cost Amount	$ 0		196,400,000
Debt Securities, Available for Sale, Sold at Loss, Amortized Cost Amount			112,500,000
Debt Securities, Available-for-sale, Realized Gain			3,400,000
Debt Securities, Available-for-sale, Realized Loss			64,000
Gain on equity securities, net	2,955,000	5,011,000	2,182,000
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	413,070,000	73,431,000
Debt Securities, Available-for-sale, Allowance for Credit Loss	0
Debt Securities, Available-for-sale, Unrealized Loss Position	1,590,490,000	840,832,000
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	122,776,000	9,514,000
Debt Securities, Available-for-sale	1,733,696,000	1,754,140,000
Debt Securities, Available-for-sale, Amortized Cost	1,854,852,000	1,727,363,000
Deposits
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	452,200,000	396,300,000
Securities Sold under Agreements to Repurchase [Member]
Investment [Line Items]
Debt Securities, Available-for-sale	313,100,000	334,900,000
Debt Securities, Available-for-sale, Amortized Cost	353,000,000	327,900,000
Federal Home Loan Bank Advances [Member]
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	7,200,000	9,500,000
US Government-sponsored Enterprises Debt Securities
Investment [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	0
Debt Securities, Available-for-sale, Unrealized Loss Position	37,213,000
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	1,787,000
Debt Securities, Available-for-sale	37,213,000
Debt Securities, Available-for-sale, Amortized Cost	39,000,000
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Investment [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	310,338,000	73,431,000
Debt Securities, Available-for-sale, Unrealized Loss Position	756,761,000	407,084,000
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	82,638,000	8,088,000
Debt Securities, Available-for-sale	756,761,000	854,463,000
Debt Securities, Available-for-sale, Amortized Cost	839,399,000	849,114,000
Obligations of U.S. Treasury and other U.S. Government sponsored entities
Investment [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	84,400,000
Investments [Member]
Investment [Line Items]
Gain on equity securities, net	$ 601,000	$ (552,000)	$ (239,000)

XML

Investment Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	$ 1,854,852	$ 1,727,363
Gross Unrealized/Unrecognized Holding Gains	1,620	36,291
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	122,776	9,514
Debt Securities, Available-for-sale	1,733,696	1,754,140
Obligations of States and Political Subdivisions
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	423,285	366,933
Gross Unrealized/Unrecognized Holding Gains	1,620	22,682
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	18,194	24
Debt Securities, Available-for-sale	406,711	389,591
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	839,399	849,114
Gross Unrealized/Unrecognized Holding Gains		13,437
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	82,638	8,088
Debt Securities, Available-for-sale	756,761	854,463
Corporate Debt Securities
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	17,650	11,250
Gross Unrealized/Unrecognized Holding Gains		169
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	1,178	7
Debt Securities, Available-for-sale	16,472	11,412
Collateralized Loan Obligations
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	535,518	500,066
Gross Unrealized/Unrecognized Holding Gains		3
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	18,979	1,395
Debt Securities, Available-for-sale	516,539	$ 498,674
US Government-sponsored Enterprises Debt Securities
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	39,000
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	1,787
Debt Securities, Available-for-sale	$ 37,213

XML

Investment Securities - Schedule of unrealized loss on investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investment [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 1,177,420	$ 767,401
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	63,796	6,422
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	413,070	73,431
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	58,980	3,092
Debt Securities, Available-for-sale, Unrealized Loss Position	1,590,490	840,832
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	122,776	9,514
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Investment [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	446,423	333,653
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	27,507	4,996
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	310,338	73,431
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	55,131	3,092
Debt Securities, Available-for-sale, Unrealized Loss Position	756,761	407,084
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	82,638	8,088
Obligations of States and Political Subdivisions
Investment [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	270,905	1,834
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	18,194	24
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	0	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Debt Securities, Available-for-sale, Unrealized Loss Position	270,905	1,834
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	18,194	24
Corporate Debt Securities
Investment [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	7,388	2,243
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	862	7
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	1,684	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	316	0
Debt Securities, Available-for-sale, Unrealized Loss Position	9,072	2,243
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	1,178	7
Collateralized Loan Obligations
Investment [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	415,491	429,671
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	15,446	1,395
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	101,048	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	3,533	0
Debt Securities, Available-for-sale, Unrealized Loss Position	516,539	429,671
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	18,979	$ 1,395
US Government-sponsored Enterprises Debt Securities
Investment [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	37,213
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1,787
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0
Debt Securities, Available-for-sale, Unrealized Loss Position	37,213
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 1,787

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Investment Securities - Schedule of contractual maturity of debt securities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	$ 1,854,852	$ 1,727,363
Debt Securities, Available-for-sale	1,733,696	1,754,140
Obligations of States and Political Subdivisions
Investment [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	271,564
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value	$ 271,658
Debt Securities, Available-for-sale, Maturity, after Five Through Ten Years, Weighted Average Yield	3.68%
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost	$ 149,432
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value	$ 132,775
Debt Securities, Available-for-sale, Maturity, after 10 Years, Weighted Average Yield	3.15%
Debt Securities, Available-for-sale, Amortized Cost	$ 423,285	366,933
Debt Securities, Available-for-sale	$ 406,711	389,591
Available for Sale Securities Weighted Avg Yield	3.49%
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five	$ 2,289
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five	$ 2,278
Debt Securities, Available-for-Sale, Weighted Average Yield, Maturity, after Year One Through Five	2.97%
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	$ 839,399	849,114
Debt Securities, Available-for-sale	$ 756,761	854,463
Debt Securities, Available-for-Sale, Weighted Average Yield	1.91%
Corporate Debt Securities
Investment [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	$ 17,650
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value	$ 16,472
Debt Securities, Available-for-sale, Maturity, after Five Through Ten Years, Weighted Average Yield	3.89%
Debt Securities, Available-for-sale, Amortized Cost	$ 17,650	11,250
Debt Securities, Available-for-sale	16,472	11,412
Collateralized Loan Obligations
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	535,518	500,066
Debt Securities, Available-for-sale	$ 516,539	$ 498,674
Debt Securities, Available-for-Sale, Weighted Average Yield	6.30%
US Government-sponsored Enterprises Debt Securities
Investment [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	$ 39,000
Debt Securities, Available-for-sale	37,213
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five	39,000
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five	$ 37,213
Debt Securities, Available-for-Sale, Weighted Average Yield, Maturity, after Year One Through Five	2.37%

XML

Investment Securities - Cost and Equity Method Investments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investment [Line Items]
Federal home loan bank stock	$ 11,197,000	$ 13,413,000
Federal reserve bank stock	14,653,000	14,653,000
Equity Securities, FV-NI	1,859,000	2,129,000
Equity Securities without Readily Determinable Fair Value, Amount	14,725,000	4,689,000
Alternative Investment	44,657,000	26,384,000
Other Investments and Securities, at Cost	$ 87,091,000	$ 61,268,000
equity investment shares sold	22,160	86,770	79,697
Proceeds from Sale of Federal Home Loan Bank Stock	$ 2,200,000	$ 8,700,000	$ 8,000,000
equity investment purchased, shares			0
Gain on equity securities, net	2,955,000	5,011,000	$ 2,182,000
Alternative Investment, income recognized	2,400,000	4,500,000	2,400,000
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount	871,000
Investments [Member]
Investment [Line Items]
Gain on equity securities, net	$ 601,000	$ (552,000)	$ (239,000)

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Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Apr. 01, 2019	Jul. 01, 2018
Financing Receivable, Impaired [Line Items]
PPP loans originated	$ 4,200	$ 74,400
SBA PPP Fees recognized	3,000	16,300	$ 13,700
Loans and Leases Receivable, Deferred Income	18,200	19,500
Goodwill, Purchase Accounting Adjustments	(334)	(1,519)	(2,403)
Deposit Liabilities Reclassified as Loans Receivable	1,500	1,100
Business Combination, Acquired Receivables, Gross Contractual Amount				$ 589,700	$ 277,900
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables				578,600	272,800
Specific Reserves Related To Troubled Debt Restructuring	2,200	300
TDRs included in nonaccrual loan totals	17,500	20,900
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase		52
Loans and Leases related parties, removal from related parties		3,200
SBA PPP Fees received		12,900	$ 20,200
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	0	0
Loans
Financing Receivable, Impaired [Line Items]
Goodwill, Purchase Accounting Adjustments	2,500	4,200
Executive officers and directors
Financing Receivable, Impaired [Line Items]
Loans due from related party	37,300	33,500
Loans and Leases Receivable, Related Parties, Additions	6,100	1,200
Loans and Leases Receivable, Related Parties, Proceeds	6,000	12,600
LoansAndLeasesReceivableRelatedPartiesAdvances	1,200	9,700
Executive officers and directors | Loans Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans due from related party	28,400	27,100
Financial Asset Acquired with Credit Deterioration [Member]
Financing Receivable, Impaired [Line Items]
Business Combination, Acquired Receivables, Gross Contractual Amount				19,900	5,100
Business Combination, Acquired Receivable, Fair Value	4,700	7,100		$ 18,400	$ 4,900
PPP Loans
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Deferred Income	$ 68	$ 2,800

XML

Loans - Schedule of composition of loan portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 7,141,891	$ 6,871,122
Financing Receivable, Allowance for Credit Loss	(85,379)	(83,197)	$ (85,675)	$ (56,679)
Net loans	7,056,512	6,787,925
PPP loans receivable
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	4,206	74,420
Bank Overdrafts
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,489	1,127
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,794,054	1,801,792
Financing Receivable, Allowance for Credit Loss	(17,829)	(25,466)	(23,480)	(10,229)
Construction Real Estate Remaining Commercial [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	208,982	214,561
Construction Real Estate Retail
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	116,433	107,225
Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	550,183	533,802
Residential Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,075,446	1,033,658
Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	167,151	165,605
Residential Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	4,091	5,642
Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,904,981	1,689,679
Financing Receivable, Allowance for Credit Loss	(28,021)	(26,286)	(17,418)	(12,211)
Finance Leases Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	19,637	20,532
Financing Receivable, Allowance for Credit Loss	(161)	(238)	$ (518)	$ (115)
GFSC loans
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	274	1,793
Check Loans
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	2,150	2,093
consumer less GFSC and check loans
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,902,557	1,685,793
commercial financial agricultural less PPP and overdraft
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 1,295,238	$ 1,223,079

XML

Loans - Schedule of recorded investment in nonaccrual restructured and loans 90 days past due and accruing (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	$ 79,696	$ 72,722
Financing Receivable, Troubled Debt Restructuring	20,134	28,323
Financing Receivable, 90 Days or More Past Due, Still Accruing	1,281	1,607
Financing Receivable Recorded Investment Nonperforming	101,111	102,652
Commercial Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	38,158	13,271
Financing Receivable, Troubled Debt Restructuring	3,261	9,396
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable Recorded Investment Nonperforming	41,419	22,667
PPP Loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	0	0
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	389	793
Financing Receivable Recorded Investment Nonperforming	389	793
Bank Overdrafts
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	0	0
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable Recorded Investment Nonperforming	0	0
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	24,504	40,142
Financing Receivable, Troubled Debt Restructuring	7,919	7,713
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable Recorded Investment Nonperforming	32,423	47,855
Construction Real Estate Remaining Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	1,712	52
Financing Receivable, Troubled Debt Restructuring	0	169
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable Recorded Investment Nonperforming	1,712	221
Construction Real Estate Retail
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	1,254
Financing Receivable, Troubled Debt Restructuring	12
Financing Receivable, 90 Days or More Past Due, Still Accruing	0
Financing Receivable Recorded Investment Nonperforming	1,266
Construction Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual		716
Financing Receivable, Troubled Debt Restructuring		9
Financing Receivable, 90 Days or More Past Due, Still Accruing		0
Financing Receivable Recorded Investment Nonperforming		725
Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	1,894	2,366
Financing Receivable, Troubled Debt Restructuring	298	240
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable Recorded Investment Nonperforming	2,192	2,606
Residential Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	9,260	11,718
Financing Receivable, Troubled Debt Restructuring	6,750	7,779
Financing Receivable, 90 Days or More Past Due, Still Accruing	182	372
Financing Receivable Recorded Investment Nonperforming	16,192	19,869
Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	1,133	1,590
Financing Receivable, Troubled Debt Restructuring	187	803
Financing Receivable, 90 Days or More Past Due, Still Accruing	7	0
Financing Receivable Recorded Investment Nonperforming	1,327	2,393
Residential Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	51	82
Financing Receivable, Troubled Debt Restructuring	1,037	1,508
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable Recorded Investment Nonperforming	1,088	1,590
Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	1,012	1,518
Financing Receivable, Troubled Debt Restructuring	670	700
Financing Receivable, 90 Days or More Past Due, Still Accruing	703	431
Financing Receivable Recorded Investment Nonperforming	2,385	2,649
GFSC loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	10	79
Financing Receivable, Troubled Debt Restructuring	0	6
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	11
Financing Receivable Recorded Investment Nonperforming	10	96
Check Loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	0	0
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable Recorded Investment Nonperforming	0	0
Finance Leases Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual	708	1,188
Financing Receivable, Troubled Debt Restructuring	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable Recorded Investment Nonperforming	$ 708	$ 1,188

XML

Loans Additional Detail Nonaccrual loans and ACL (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	$ 55,542	$ 53,977
financing receivable nonaccrual with allowance	24,154	18,745
Impaired Financing Receivable, Related Allowance	4,175	2,240
commercial financial agricultural less PPP and overdraft
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	28,291	11,494
financing receivable nonaccrual with allowance	9,867	1,777
Impaired Financing Receivable, Related Allowance	3,440	1,343
PPP Loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
financing receivable nonaccrual with allowance	0	0
Impaired Financing Receivable, Related Allowance	0	0
Bank Overdrafts
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
financing receivable nonaccrual with allowance	0	0
Impaired Financing Receivable, Related Allowance	0	0
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	22,965	39,151
financing receivable nonaccrual with allowance	1,539	991
Impaired Financing Receivable, Related Allowance	130	188
Construction Real Estate Remaining Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	1,712	52
financing receivable nonaccrual with allowance	0	0
Impaired Financing Receivable, Related Allowance	0	0
Construction Real Estate Retail
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
financing receivable nonaccrual with allowance	1,254	716
Impaired Financing Receivable, Related Allowance	19	67
Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	1,894	2,366
financing receivable nonaccrual with allowance	0	0
Impaired Financing Receivable, Related Allowance	0	0
Residential Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
financing receivable nonaccrual with allowance	9,260	11,718
Impaired Financing Receivable, Related Allowance	85	73
Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
financing receivable nonaccrual with allowance	1,133	1,590
Impaired Financing Receivable, Related Allowance	191	99
Residential Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
financing receivable nonaccrual with allowance	51	82
Impaired Financing Receivable, Related Allowance	17	24
Consumer Loan [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
financing receivable nonaccrual with allowance	1,012	1,518
Impaired Financing Receivable, Related Allowance	283	393
GFSC loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
financing receivable nonaccrual with allowance	10	79
Impaired Financing Receivable, Related Allowance	1	10
Check Loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	0	0
financing receivable nonaccrual with allowance	0	0
Impaired Financing Receivable, Related Allowance	0	0
Finance Leases Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Nonaccrual, No Allowance	680	914
financing receivable nonaccrual with allowance	28	274
Impaired Financing Receivable, Related Allowance	$ 9	$ 43

XML

Loans Schedule of loans individually evaluated for impairment by class of loan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance	$ 4,175	$ 2,240
Impaired Financing Receivable, Recorded Investment	78,341	74,502	$ 108,455
Impaired Financing Receivable, Interest Income, Cash Basis Method	1,795	2,770	2,879
6500 Real Estate
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	49,091	66,824
business assets
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	8,524	14,614
Other Collateral
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	23,125	213
Collateral Pledged
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	80,740	81,651
Commercial Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment			28,836
Impaired Financing Receivable, Interest Income, Cash Basis Method			735
Commercial Financial And Agricultural [Member] | 6500 Real Estate
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	8,242	9,321
Commercial Financial And Agricultural [Member] | business assets
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	7,788	13,366
Commercial Financial And Agricultural [Member] | Other Collateral
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	23,125	156
Commercial Financial And Agricultural [Member] | Collateral Pledged
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	39,155	22,843
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment			70,357
Impaired Financing Receivable, Interest Income, Cash Basis Method			1,890
Commercial Real Estate Portfolio Segment [Member] | 6500 Real Estate
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	35,908	52,901
Commercial Real Estate Portfolio Segment [Member] | business assets
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	28	37
Commercial Real Estate Portfolio Segment [Member] | Other Collateral
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	0	0
Commercial Real Estate Portfolio Segment [Member] | Collateral Pledged
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	35,936	52,938
Construction Real Estate Remaining Commercial [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment			3,110
Impaired Financing Receivable, Interest Income, Cash Basis Method	32	39	50
Construction Real Estate Remaining Commercial [Member] | 6500 Real Estate
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	2,372	1,178
Construction Real Estate Remaining Commercial [Member] | business assets
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	0	0
Construction Real Estate Remaining Commercial [Member] | Other Collateral
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	0	0
Construction Real Estate Remaining Commercial [Member] | Collateral Pledged
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	2,372	1,178
Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment			4,557
Impaired Financing Receivable, Interest Income, Cash Basis Method	88	204	204
Residential Real Estate Commercial [Member] | 6500 Real Estate
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	2,479	2,906
Residential Real Estate Commercial [Member] | business assets
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	0	0
Residential Real Estate Commercial [Member] | Other Collateral
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	0	57
Residential Real Estate Commercial [Member] | Collateral Pledged
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	2,479	2,963
Finance Leases Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment			$ 1,595
Impaired Financing Receivable, Interest Income, Cash Basis Method	33	73
Finance Leases Portfolio Segment [Member] | 6500 Real Estate
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	0	0
Finance Leases Portfolio Segment [Member] | business assets
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	708	1,211
Finance Leases Portfolio Segment [Member] | Other Collateral
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	0	0
Finance Leases Portfolio Segment [Member] | Collateral Pledged
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	708	1,211
Residential Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Interest Income, Cash Basis Method	157	301
Residential Real Estate Mortgage [Member] | 6500 Real Estate
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	90	370
Residential Real Estate Mortgage [Member] | business assets
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	0	0
Residential Real Estate Mortgage [Member] | Other Collateral
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	0	0
Residential Real Estate Mortgage [Member] | Collateral Pledged
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost	90	370
Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Interest Income, Cash Basis Method	16	17
Residential Real Estate Home Equity Line Of Credit [Member] | 6500 Real Estate
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost		148
Residential Real Estate Home Equity Line Of Credit [Member] | business assets
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost		0
Residential Real Estate Home Equity Line Of Credit [Member] | Other Collateral
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost		0
Residential Real Estate Home Equity Line Of Credit [Member] | Collateral Pledged
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable Amortized Cost		148
commercial financial agricultural less PPP and overdraft
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Interest Income, Cash Basis Method	438	180
PPP Loans
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Interest Income, Cash Basis Method	0	0
Bank Overdrafts
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Interest Income, Cash Basis Method	0	0
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Interest Income, Cash Basis Method	956	1,844
Construction Real Estate Retail
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Interest Income, Cash Basis Method	13	4
Residential Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Interest Income, Cash Basis Method	3	2
Consumer Loan [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Interest Income, Cash Basis Method	54	92
GFSC loans
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Interest Income, Cash Basis Method	$ 5	$ 14

XML

Loans Schedule of average recorded investment and interest income recognized on loans individually evaluated for impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 78,341	$ 74,502	$ 108,455
Impaired Financing Receivable, Average Recorded Investment			92,294
Impaired Financing Receivable, Interest Income, Cash Basis Method	1,795	2,770	2,879
Commercial Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment			28,836
Impaired Financing Receivable, Average Recorded Investment			30,280
Impaired Financing Receivable, Interest Income, Cash Basis Method			735
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment			70,357
Impaired Financing Receivable, Average Recorded Investment			55,279
Impaired Financing Receivable, Interest Income, Cash Basis Method			1,890
Construction Real Estate Remaining Commercial [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment			3,110
Impaired Financing Receivable, Average Recorded Investment			1,291
Impaired Financing Receivable, Interest Income, Cash Basis Method	32	39	50
Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment			4,557
Impaired Financing Receivable, Average Recorded Investment			4,329
Impaired Financing Receivable, Interest Income, Cash Basis Method	88	204	204
Finance Leases Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment			1,595
Impaired Financing Receivable, Average Recorded Investment			$ 1,115
Impaired Financing Receivable, Interest Income, Cash Basis Method	$ 33	$ 73

XML

Loans Aging of recorded investment in past due loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	$ 17,595	$ 13,465
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	22,085	21,070
Financing Receivable, 90 Days or More Past Due, Still Accruing	1,281	1,607
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	7,141,891	6,871,122	$ 7,177,785
impaired financing receivable recorded investment nonaccrual loans which are current in contractual P and I payments	58,900	53,300
Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	39,680	34,535
Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	7,102,211	6,836,587
Commercial Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due		65
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans		1,461
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,794,054	1,801,792
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		1,526
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		1,800,266
Construction Real Estate Remaining Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	751	0
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	208,982	214,561
Construction Real Estate Remaining Commercial [Member] | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	751	0
Construction Real Estate Remaining Commercial [Member] | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	208,231	214,561
Construction Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due		346
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans		660
Financing Receivable, 90 Days or More Past Due, Still Accruing		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		107,225
Construction Real Estate Mortgage [Member] | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		1,006
Construction Real Estate Mortgage [Member] | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		106,219
Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	519	283
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	477	438
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	550,183	533,802
Residential Real Estate Commercial [Member] | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	996	721
Residential Real Estate Commercial [Member] | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	549,187	533,081
Residential Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	7,630	6,170
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	5,157	5,933
Financing Receivable, 90 Days or More Past Due, Still Accruing	182	372
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,075,446	1,033,658
Residential Real Estate Mortgage [Member] | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	12,787	12,103
Residential Real Estate Mortgage [Member] | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,062,659	1,021,555
Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	832	565
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	587	1,011
Financing Receivable, 90 Days or More Past Due, Still Accruing	7	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	167,151	165,605
Residential Real Estate Home Equity Line Of Credit [Member] | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,419	1,576
Residential Real Estate Home Equity Line Of Credit [Member] | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	165,732	164,029
Residential Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	57	49
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	4	31
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	4,091	5,642
Residential Real Estate Installment [Member] | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	61	80
Residential Real Estate Installment [Member] | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	4,030	5,562
Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	703	431
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	3,269,591
Finance Leases Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	0	60
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	0	526
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	19,637	20,532
Finance Leases Portfolio Segment [Member] | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	0	586
Finance Leases Portfolio Segment [Member] | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	19,637	19,946
commercial financial agricultural less PPP and overdraft
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	378	2,908
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	9,246	9,547
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,295,238	1,223,079
commercial financial agricultural less PPP and overdraft | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	9,624	12,455
commercial financial agricultural less PPP and overdraft | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,285,614	1,210,624
PPP Loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	155	242
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	389	793
Financing Receivable, 90 Days or More Past Due, Still Accruing	389	793
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	4,206	74,420
PPP Loans | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	544	1,035
PPP Loans | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	3,662	73,385
Bank Overdrafts
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	0	0
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,489	1,127
Bank Overdrafts | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	0	0
Bank Overdrafts | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,489	1,127
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	737
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	4,738
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,794,054
Commercial Real Estate [Member] | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	5,475
Commercial Real Estate [Member] | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,788,579
Construction Real Estate Retail
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	1,035
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	523
Financing Receivable, 90 Days or More Past Due, Still Accruing	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	116,433
Construction Real Estate Retail | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,558
Construction Real Estate Retail | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	114,875
Consumer Loan [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	5,451	2,614
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	964	618
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,902,557	1,685,793
Consumer Loan [Member] | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	6,415	3,232
Consumer Loan [Member] | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,896,142	1,682,561
GFSC loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	48	153
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	0	52
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	11
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	274	1,793
GFSC loans | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	48	205
GFSC loans | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	226	1,588
Check Loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Accruing Loans 30 to 89 Days Past Due	2	10
Financing Receivable Recorded Investment Ninety Days Or More Past Due And Accruing Plus Past Due Nonaccrual Loans	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	2,150	2,093
Check Loans | Financial Asset, Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	2	10
Check Loans | Financial Asset, Not Past Due
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	$ 2,148	$ 2,083

XML

Loans Recorded investment by loan grade (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	$ 7,141,891	$ 6,871,122	$ 7,177,785
Construction Real Estate Commercial [Domain]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		97,131
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		76,919
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		7,003
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		5,796
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		1,856
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		3,412
Financing Receivable, Excluding Accrued Interest, Revolving		22,444
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		214,561
Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		139,687
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		166,108
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		68,718
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		45,016
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		26,678
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		71,924
Financing Receivable, Excluding Accrued Interest, Revolving		15,671
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		533,802
Construction Real Estate Retail
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		68,374
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		26,894
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		5,767
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		2,743
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		1,505
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		1,863
Financing Receivable, Excluding Accrued Interest, Revolving		79
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		107,225
Residential Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		230,299
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		217,648
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		114,862
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		69,598
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		60,513
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		340,738
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		1,033,658
Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		489
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		40
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		121
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		95
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		131
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		4,451
Financing Receivable, Excluding Accrued Interest, Revolving		160,278
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		165,605
Residential Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		15
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		423
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		137
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		1,127
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		3,940
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		5,642
Commercial Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		268,730
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		210,606
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		102,031
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		54,336
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		37,817
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		67,852
Financing Receivable, Excluding Accrued Interest, Revolving		481,707
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		1,223,079
Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		963,190
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		919,567
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		479,032
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		282,769
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		193,000
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		494,470
Financing Receivable, Excluding Accrued Interest, Revolving		536,158
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		3,868,186
Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		950,168
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		750,910
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		382,217
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		192,491
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		128,202
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		413,726
Financing Receivable, Excluding Accrued Interest, Revolving		185,222
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		3,002,936
Nonperforming Financial Instruments [Member] | Construction Real Estate Retail
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		647
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		57
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		21
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		725
Nonperforming Financial Instruments [Member] | Residential Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		626
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		785
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		824
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		574
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		17,060
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		19,869
Nonperforming Financial Instruments [Member] | Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		89
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		40
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		37
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		90
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		1,811
Financing Receivable, Excluding Accrued Interest, Revolving		326
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		2,393
Nonperforming Financial Instruments [Member] | Residential Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		12
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		5
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		26
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		78
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		1,469
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		1,590
Nonperforming Financial Instruments [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		330
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		1,840
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		1,675
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		1,291
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		906
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		20,954
Financing Receivable, Excluding Accrued Interest, Revolving		326
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		27,322
Performing Financial Instruments [Member] | Construction Real Estate Retail
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		68,374
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		26,247
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		5,710
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		2,743
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		1,505
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		1,842
Financing Receivable, Excluding Accrued Interest, Revolving		79
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		106,500
Performing Financial Instruments [Member] | Residential Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		230,299
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		217,022
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		114,077
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		68,774
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		59,939
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		323,678
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		1,013,789
Performing Financial Instruments [Member] | Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		400
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		121
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		58
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		41
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		2,640
Financing Receivable, Excluding Accrued Interest, Revolving		159,952
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		163,212
Performing Financial Instruments [Member] | Residential Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		3
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		418
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		111
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		1,049
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		2,471
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		4,052
Performing Financial Instruments [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		949,838
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		749,070
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		380,542
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		191,200
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		127,296
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		392,772
Financing Receivable, Excluding Accrued Interest, Revolving		184,896
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		2,975,614
Five Rated [Member] | Construction Real Estate Commercial [Domain]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		202
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		691
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		893
Five Rated [Member] | Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		95
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		884
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		106
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		79
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		497
Financing Receivable, Excluding Accrued Interest, Revolving		135
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		1,796
Five Rated [Member] | Commercial Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		1,608
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		1,592
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		429
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		59
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		277
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		11,986
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		15,951
Five Rated [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		2,889
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		8,793
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		33,684
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		10,250
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		4,595
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		18,326
Financing Receivable, Excluding Accrued Interest, Revolving		13,117
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		91,654
Six Rated [Member] | Construction Real Estate Commercial [Domain]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		52
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		264
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		316
Six Rated [Member] | Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		735
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		22
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		691
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		41
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		95
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		993
Financing Receivable, Excluding Accrued Interest, Revolving		29
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		2,606
Six Rated [Member] | Commercial Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		106
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		906
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		401
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		1,345
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		549
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		7,818
Financing Receivable, Excluding Accrued Interest, Revolving		484
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		11,609
Six Rated [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		4,738
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		4,256
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		2,477
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		13,046
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		6,630
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		23,430
Financing Receivable, Excluding Accrued Interest, Revolving		963
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		55,540
Impaired [Member] | Construction Real Estate Commercial [Domain]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
Impaired [Member] | Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		56
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		56
Impaired [Member] | Commercial Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		30
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		465
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		227
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		463
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		125
Financing Receivable, Excluding Accrued Interest, Revolving		488
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		1,798
Impaired [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		56
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		30
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		797
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		243
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		532
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		743
Financing Receivable, Excluding Accrued Interest, Revolving		488
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		2,889
Pass [Member] | Construction Real Estate Commercial [Domain]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		96,929
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		76,867
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		7,003
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		4,841
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		1,856
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		3,412
Financing Receivable, Excluding Accrued Interest, Revolving		22,444
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		213,352
Pass [Member] | Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		138,801
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		165,202
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		67,921
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		44,896
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		26,583
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		70,434
Financing Receivable, Excluding Accrued Interest, Revolving		15,507
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		529,344
Pass [Member] | Commercial Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		267,016
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		208,078
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		100,736
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		52,705
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		36,528
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		59,909
Financing Receivable, Excluding Accrued Interest, Revolving		468,749
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		1,193,721
Pass [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		955,507
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		906,488
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		442,074
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		259,230
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		181,243
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		451,971
Financing Receivable, Excluding Accrued Interest, Revolving		521,590
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		3,718,103
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	331,290	381,151
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	379,446	454,564
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	379,048	298,136
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	229,496	175,364
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	126,323	125,882
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	333,821	350,359
Financing Receivable, Excluding Accrued Interest, Revolving	14,630	16,336
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,794,054	1,801,792
Commercial Real Estate Portfolio Segment [Member] | Five Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	199	786
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	3,256	6,206
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	3,388	32,965
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	5,863	9,354
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	16,059	4,297
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	22,220	17,829
Financing Receivable, Excluding Accrued Interest, Revolving	150	996
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	51,135	72,433
Commercial Real Estate Portfolio Segment [Member] | Six Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	7,856	3,897
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	1,427	2,578
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	3,007	1,385
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	3,561	11,373
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	856	5,967
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	5,471	14,541
Financing Receivable, Excluding Accrued Interest, Revolving	428	450
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	22,606	40,191
Commercial Real Estate Portfolio Segment [Member] | Impaired [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	1,941	47
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	591	618
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	2,532	665
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	323,235	376,468
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	374,763	445,780
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	372,653	263,786
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	220,072	154,637
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	107,467	115,571
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	305,539	317,371
Financing Receivable, Excluding Accrued Interest, Revolving	14,052	14,890
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,717,781	1,688,503
Construction Real Estate Remaining Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	108,628
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	41,334
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	22,048
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	2,686
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	2,088
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	3,015
Financing Receivable, Excluding Accrued Interest, Revolving	29,183
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	208,982	214,561
Construction Real Estate Remaining Commercial [Member] | Five Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	232
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	232
Construction Real Estate Remaining Commercial [Member] | Six Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	652
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	800
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	260
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	660
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	2,372
Construction Real Estate Remaining Commercial [Member] | Impaired [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	0
Construction Real Estate Remaining Commercial [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	107,976
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	40,534
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	21,556
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	2,686
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	1,428
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	3,015
Financing Receivable, Excluding Accrued Interest, Revolving	29,183
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	206,378
Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	107,696
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	120,844
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	149,543
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	57,449
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	33,444
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	65,677
Financing Receivable, Excluding Accrued Interest, Revolving	15,530
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	550,183	533,802
Residential Real Estate Commercial [Member] | Five Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	92
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	1,477
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	440
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	1,625
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	3,634
Residential Real Estate Commercial [Member] | Six Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	610
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	449
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	264
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	29
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	304
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	553
Financing Receivable, Excluding Accrued Interest, Revolving	339
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	2,548
Residential Real Estate Commercial [Member] | Impaired [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	0
Residential Real Estate Commercial [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	107,086
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	120,303
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	147,802
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	56,980
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	33,140
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	63,499
Financing Receivable, Excluding Accrued Interest, Revolving	15,191
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	544,001
Finance Leases Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	8,714	6,903
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	3,924	6,538
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	3,941	3,144
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	1,434	2,257
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	993	767
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	631	923
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	19,637	20,532
Finance Leases Portfolio Segment [Member] | Five Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1,085	198
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	614	111
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	130	184
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	60	67
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	21
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,889	581
Finance Leases Portfolio Segment [Member] | Six Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	698
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	464	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	111	23
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	12	19
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	26	78
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	613	818
Finance Leases Portfolio Segment [Member] | Impaired [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	332
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	96	16
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	22
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	96	370
Finance Leases Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	7,629	6,705
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	3,310	5,729
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	3,347	2,628
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	1,167	2,151
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	981	705
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	605	845
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	17,039	18,763
Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	755,626
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	746,753
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	703,056
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	352,528
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	197,655
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	458,910
Financing Receivable, Excluding Accrued Interest, Revolving	657,772
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	3,872,300
Commercial Portfolio Segment [Member] | Five Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1,984
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	4,275
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	6,145
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	6,678
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	16,063
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	23,880
Financing Receivable, Excluding Accrued Interest, Revolving	25,686
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	84,711
Commercial Portfolio Segment [Member] | Six Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	10,219
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	2,694
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	6,732
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	3,927
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	3,668
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	14,474
Financing Receivable, Excluding Accrued Interest, Revolving	27,231
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	68,945
Commercial Portfolio Segment [Member] | Impaired [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	3
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	173
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	2,021
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	763
Financing Receivable, Excluding Accrued Interest, Revolving	192
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	3,152
Commercial Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	743,423
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	739,784
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	690,176
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	341,750
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	175,903
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	419,793
Financing Receivable, Excluding Accrued Interest, Revolving	604,663
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	3,715,492
commercial financial agricultural less PPP and overdraft
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	199,298
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	199,330
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	146,145
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	61,463
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	34,807
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	55,766
Financing Receivable, Excluding Accrued Interest, Revolving	598,429
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,295,238	1,223,079
commercial financial agricultural less PPP and overdraft | Five Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	700
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	313
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	918
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	315
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	4
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	35
Financing Receivable, Excluding Accrued Interest, Revolving	25,536
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	27,821
commercial financial agricultural less PPP and overdraft | Six Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1,101
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	18
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	2,737
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	226
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	1,836
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	8,424
Financing Receivable, Excluding Accrued Interest, Revolving	26,464
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	40,806
commercial financial agricultural less PPP and overdraft | Impaired [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	3
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	77
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	80
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	172
Financing Receivable, Excluding Accrued Interest, Revolving	192
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	524
commercial financial agricultural less PPP and overdraft | Pass [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	197,497
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	198,999
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	142,487
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	60,845
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	32,887
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	47,135
Financing Receivable, Excluding Accrued Interest, Revolving	546,237
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,226,087
PPP Loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	1,875
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	2,331
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	4,206	74,420
PPP Loans | Five Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	0
PPP Loans | Six Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	0
PPP Loans | Impaired [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	0
PPP Loans | Pass [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	1,875
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	2,331
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	4,206
Bank Overdrafts
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1,489	1,127
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,489	1,127
Bank Overdrafts | Nonperforming Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	0	0
Bank Overdrafts | Performing Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1,489	1,127
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,489	1,127
consumer less GFSC and check loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	823,924	649,879
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	462,503	506,061
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	333,760	259,985
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	150,592	119,621
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	61,331	64,854
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	66,132	62,729
Financing Receivable, Excluding Accrued Interest, Revolving	4,315	22,664
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,902,557	1,685,793
consumer less GFSC and check loans | Nonperforming Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	440	241
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	489	506
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	424	755
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	355	399
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	157	155
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	520	593
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	2,385	2,649
consumer less GFSC and check loans | Performing Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	823,484	649,638
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	462,014	505,555
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	333,336	259,230
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	150,237	119,222
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	61,174	64,699
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	65,612	62,136
Financing Receivable, Excluding Accrued Interest, Revolving	4,315	22,664
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,900,172	1,683,144
Construction Real Estate Retail
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	72,654
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	26,134
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	8,741
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	4,619
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	1,618
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	2,592
Financing Receivable, Excluding Accrued Interest, Revolving	75
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	116,433
Construction Real Estate Retail | Nonperforming Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	731
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	523
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	12
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,266
Construction Real Estate Retail | Performing Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	71,923
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	26,134
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	8,218
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	4,619
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	1,618
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	2,580
Financing Receivable, Excluding Accrued Interest, Revolving	75
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	115,167
Residential Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	207,093
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	227,131
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	193,604
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	90,664
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	56,166
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	300,788
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,075,446	1,033,658
Residential Real Estate Mortgage [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	700
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	650
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	518
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	14,324
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	16,192
Residential Real Estate Mortgage [Member] | Performing Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	207,093
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	227,131
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	192,904
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	90,014
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	55,648
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	286,464
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,059,254
Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	140
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	299
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	66
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	230
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	141
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	2,956
Financing Receivable, Excluding Accrued Interest, Revolving	163,319
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	167,151	165,605
Residential Real Estate Home Equity Line Of Credit [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	43
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	100
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	999
Financing Receivable, Excluding Accrued Interest, Revolving	185
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,327
Residential Real Estate Home Equity Line Of Credit [Member] | Performing Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	140
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	299
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	23
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	130
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	141
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	1,957
Financing Receivable, Excluding Accrued Interest, Revolving	163,134
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	165,824
Residential Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	187
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	8
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	243
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	78
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	3,575
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	4,091	5,642
Residential Real Estate Installment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	7
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	2
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	16
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	1,063
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,088
Residential Real Estate Installment [Member] | Performing Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	187
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	1
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	241
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	62
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	2,512
Financing Receivable, Excluding Accrued Interest, Revolving	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	3,003
GFSC loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	252
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	55	1,059
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	121	297
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	45	72
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	2	5
Financing Receivable, Excluding Accrued Interest, Revolving	51	108
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	274	1,793
GFSC loans | Nonperforming Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	9
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	73
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	10	5
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	9
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	10	96
GFSC loans | Performing Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	243
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	55	986
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	111	292
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	45	63
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	2	5
Financing Receivable, Excluding Accrued Interest, Revolving	51	108
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	264	1,697
Check Loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	2,150	2,093
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	2,150	2,093
Check Loans | Nonperforming Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	0	0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	0	0
Check Loans | Performing Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	0	0
Financing Receivable, Excluding Accrued Interest, Revolving	2,150	2,093
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	2,150	2,093
Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1,105,487
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	716,067
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	536,234
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	246,469
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	119,379
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	376,045
Financing Receivable, Excluding Accrued Interest, Revolving	169,910
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	3,269,591
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1,171
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	489
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	1,697
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	1,117
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	691
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	16,918
Financing Receivable, Excluding Accrued Interest, Revolving	185
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	22,268
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1,104,316
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	715,578
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	534,537
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year	245,352
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	118,688
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	359,127
Financing Receivable, Excluding Accrued Interest, Revolving	169,725
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	$ 3,247,323
PPP loans receivable
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		69,588
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		4,832
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		74,420
PPP loans receivable | Five Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
PPP loans receivable | Six Rated [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
PPP loans receivable | Impaired [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
PPP loans receivable | Pass [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year		69,588
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year		4,832
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Revolving		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		$ 74,420

XML

Loans Schedule of troubled debt restructurings on financing receivables (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) contracts	Dec. 31, 2021 USD ($) contracts	Dec. 31, 2020 USD ($) contracts
Financing Receivable, Impaired [Line Items]
Troubled Debt Restructuring, Classification removed	$ 1,000,000	$ 4,100,000
TDRs included in nonaccrual loan totals	17,500,000	20,900,000
Nonaccrual TDRs considered current	7,500,000	10,500,000
TDRs included in accruing loan totals	20,100,000	28,300,000
Loans and Leases Receivable, Impaired, Commitment to Lend	1,600,000	3,000,000
Specific Reserves Related To Troubled Debt Restructuring	2,200,000	300,000
Additional specific reserves related to troubled debt restructuring	900,000	200,000	$ 7,000
Modified substandard commercial loans, total recorded investment	29,600,000	200,000
Modified substandard consumer loans total recorded investment	41,700,000	32,900,000
Nonaccrual loans not classified as TDRs at prior fiscal year end	$ 1,000,000	$ 5,400,000	$ 400,000
Financing Receivable, Modifications, Number of Contracts | contracts	156	195	292
Total Recorded Investment Modified as TDRs During Period	$ 9,995,000	$ 13,484,000	$ 10,346,000
Commercial Financial Agricultural less PPP and Overdrafts
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	12	10
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification	$ 5,738,000	$ 1,525,000
GFSC loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	0	0
Check Loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	0	0
Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	$ 4,517,000	$ 4,046,000	1,569,000
Accruing Financing Receivable Modifications [Member] | Commercial Financial Agricultural less PPP and Overdrafts
Financing Receivable, Impaired [Line Items]
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification	2,254,000	1,356,000
Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	5,478,000	9,438,000	$ 8,777,000
Nonaccruing Financing Receivable Modifications [Member] | Commercial Financial Agricultural less PPP and Overdrafts
Financing Receivable, Impaired [Line Items]
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification	$ 3,484,000	$ 169,000
Commercial Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts			12
Total Recorded Investment Modified as TDRs During Period			$ 3,813,000
Commercial Financial And Agricultural [Member] | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period			107,000
Commercial Financial And Agricultural [Member] | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period			$ 3,706,000
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	9	15	9
Total Recorded Investment Modified as TDRs During Period	$ 1,853,000	$ 8,749,000	$ 3,235,000
Commercial Real Estate Portfolio Segment [Member] | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	1,040,000	2,002,000
Commercial Real Estate Portfolio Segment [Member] | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	$ 813,000	$ 6,747,000	$ 3,235,000
Construction Real Estate Remaining Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	1	1	0
Total Recorded Investment Modified as TDRs During Period	$ 41,000
Construction Real Estate Remaining Commercial [Member] | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	$ 41,000
Construction Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts			1
Total Recorded Investment Modified as TDRs During Period			$ 26,000
Construction Real Estate Mortgage [Member] | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period			$ 26,000
Construction Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts			1
Total Recorded Investment Modified as TDRs During Period			$ 14,000
Construction Real Estate Installment [Member] | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period			0
Construction Real Estate Installment [Member] | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period			$ 14,000
Residential Real Estate Commercial [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	4	5	3
Total Recorded Investment Modified as TDRs During Period	$ 295,000	$ 669,000	$ 156,000
Residential Real Estate Commercial [Member] | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	21,000	95,000	153,000
Residential Real Estate Commercial [Member] | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	$ 274,000	$ 574,000	$ 3,000
Residential Real Estate Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	15	14	27
Total Recorded Investment Modified as TDRs During Period	$ 1,233,000	$ 542,000	$ 1,956,000
Residential Real Estate Mortgage [Member] | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	865,000	146,000	888,000
Residential Real Estate Mortgage [Member] | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	$ 368,000	$ 396,000	$ 1,068,000
Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	3	8	7
Total Recorded Investment Modified as TDRs During Period	$ 11,000	$ 316,000	$ 66,000
Residential Real Estate Home Equity Line Of Credit [Member] | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	0	211,000	14,000
Residential Real Estate Home Equity Line Of Credit [Member] | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	$ 11,000	$ 105,000	$ 52,000
Residential Real Estate Installment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	12	8	18
Total Recorded Investment Modified as TDRs During Period	$ 168,000	$ 120,000	$ 228,000
Residential Real Estate Installment [Member] | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	141,000	$ 120,000	163,000
Residential Real Estate Installment [Member] | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	$ 27,000		$ 65,000
Finance Leases Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	10	1
Total Recorded Investment Modified as TDRs During Period	$ 101,000	$ 325,000
Finance Leases Portfolio Segment [Member] | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	$ 101,000	$ 325,000
Construction Real Estate Retail
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	1	2
Total Recorded Investment Modified as TDRs During Period		$ 705,000
Construction Real Estate Retail | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period	$ 0	0
Construction Real Estate Retail | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period		$ 705,000
PPP loans receivable
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	0	0
Bank Overdrafts
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	0	0
consumer less GFSC and check loans
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts	89	131
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification	$ 555,000	$ 533,000
consumer less GFSC and check loans | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification	196,000	116,000
consumer less GFSC and check loans | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification	$ 359,000	$ 417,000
Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Number of Contracts | contracts			214
Total Recorded Investment Modified as TDRs During Period			$ 852,000
Consumer Portfolio Segment [Member] | Accruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period			218,000
Consumer Portfolio Segment [Member] | Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Impaired [Line Items]
Total Recorded Investment Modified as TDRs During Period			$ 634,000

XML

Loans, Troubled Debt Restructuring with subsequent default (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) contracts	Dec. 31, 2021 USD ($) contracts	Dec. 31, 2020 USD ($) contracts
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	30	22	55
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 2,522,000	$ 1,259,000	$ 4,401,000
Commercial Financial Agricultural less PPP and Overdrafts
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	5	0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 2,091,000
Construction Real Estate Commercial [Domain]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0
Residential Real Estate Commercial [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	1	0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 93,000
Residential Real Estate Mortgage [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	4	4
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 154,000	$ 280,000
Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	1	2
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 10,000	$ 135,000
consumer less GFSC and check loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	19	14
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 174,000	$ 169,000
PPP loans receivable
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0
Bank Overdrafts
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0
GFSC loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0
Check Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0
Nonaccruing Financing Receivable Modifications [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 500,000	$ 1,100,000	3,700,000
Accruing Financing Receivable Modifications [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 2,000,000	$ 115,000	$ 706,000
Commercial Financial And Agricultural [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			4
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $			$ 2,776,000
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0	1
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $			$ 223,000
Construction Real Estate Remaining Commercial [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			0
Construction Real Estate Mortgage [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	1
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 0	$ 648,000
Residential Real Estate Commercial [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			1
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $			$ 3,000
Residential Real Estate Mortgage [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			11
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $			$ 993,000
Residential Real Estate Home Equity Line Of Credit [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			0
Residential Real Estate Installment [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	1	3
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 0	$ 27,000	$ 32,000
Consumer Loan [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			34
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $			$ 360,000
Finance Leases Portfolio Segment [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0	0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $	$ 0	$ 0
Construction Real Estate Retail
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts			1
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $			$ 14,000

XML

Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Off-Balance Sheet, Credit Loss, Liability	$ 5,214	$ 4,282	$ 116
Net deferred tax asset (liability)		450	2,892
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,069,226	1,110,759	1,040,256
PPP loans originated	4,200	74,400
Financing Receivable, Allowance for Credit Losses [Line Items]
Off-Balance Sheet, Credit Loss, Liability	5,214	4,282	116
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,069,226	1,110,759	1,040,256
Net deferred tax asset (liability)		450	2,892
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	$ 85,379	83,197	85,675	$ 56,679
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Off-Balance Sheet, Credit Loss, Liability		3,900	3,866
Net deferred tax asset (liability)		(2,100)	(2,115)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(8,000)	(7,956)
Financing Receivable, Allowance for Credit Losses [Line Items]
Off-Balance Sheet, Credit Loss, Liability		3,900	3,866
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(8,000)	(7,956)
Net deferred tax asset (liability)		(2,100)	(2,115)
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		$ 6,090	$ 6,090

XML

Allowance for Credit Losses Additional Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Financing Receivable, Collectively Evaluated for Impairment	$ 7,058,897	$ 6,789,471
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Collectively Evaluated for Impairment	7,058,897	6,789,471
Loans and Leases Receivable, Net of Deferred Income	7,141,891	6,871,122
Hotels, Restaurants, Strip Shopping Total
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		372,837
Additional Reserve Pandemic Risk		5,176
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Collectively Evaluated for Impairment		372,837
Additional Reserve Pandemic Risk		5,176
7000 Hotels, Rooming Houses, Camps and Other Lodging Places
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		148,018
Additional Reserve Pandemic Risk		2,226
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Collectively Evaluated for Impairment		148,018
Additional Reserve Pandemic Risk		2,226
Loans and Leases Receivable, Net of Deferred Income		203,900
7000 Hotels, Rooming Houses, Camps and Other Lodging Places | Financial Asset Originated
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Additional Reserve Pandemic Risk	0	2,000
Financing Receivable, Allowance for Credit Losses [Line Items]
Additional Reserve Pandemic Risk	$ 0	2,000
722110 Full-Service Restaurants
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		40,648
Additional Reserve Pandemic Risk		917
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Collectively Evaluated for Impairment		40,648
Additional Reserve Pandemic Risk		917
5331 Retail, Variety Stores
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		184,171
Additional Reserve Pandemic Risk		2,033
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Collectively Evaluated for Impairment		184,171
Additional Reserve Pandemic Risk		$ 2,033

XML

Allowance for Loan Losses Activity in the allowance for loan losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Write-downs	$ 9,133	$ 5,093	$ 10,304
Financing Receivable, Allowance for Credit Losses, Recovery	6,758	8,441	27,246
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	2,375	(3,348)	16,942
Financing Receivable, Credit Loss, Expense (Reversal)	4,557	(11,916)	12,054
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	85,379	83,197	85,675	$ 56,679
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		6,090	6,090
Commercial Financial And Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Write-downs	2,056	957	1,468
Financing Receivable, Allowance for Credit Losses, Recovery	826	639	20,765
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	1,230	318	19,297
Financing Receivable, Credit Loss, Expense (Reversal)	4,192	(3,008)	(13,892)
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	16,987	14,025	25,608	20,203
Commercial Financial And Agricultural [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		(8,257)
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Write-downs	1,578	35	1,824
Financing Receivable, Allowance for Credit Losses, Recovery	627	802	738
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	951	(767)	(1,086)
Financing Receivable, Credit Loss, Expense (Reversal)	(6,686)	(900)	14,337
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	17,829	25,466	23,480	10,229
Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		2,119
Construction Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Write-downs	33	0	6
Financing Receivable, Allowance for Credit Losses, Recovery	1,343	2,299	1,122
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	(1,310)	(2,299)	1,116
Financing Receivable, Credit Loss, Expense (Reversal)	(1,518)	(1,931)	861
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	5,550	5,758	7,288	5,311
Construction Real Estate [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		(1,898)
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Write-downs	81	49	356
Financing Receivable, Allowance for Credit Losses, Recovery	164	941	991
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	(83)	(892)	635
Financing Receivable, Credit Loss, Expense (Reversal)	5,324	(3,952)	2,118
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	16,831	11,424	11,363	8,610
Residential Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		3,121
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Write-downs	5,343	4,052	6,634
Financing Receivable, Allowance for Credit Losses, Recovery	3,767	3,759	3,629
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	1,576	293	(3,005)
Financing Receivable, Credit Loss, Expense (Reversal)	3,311	(1,764)	8,212
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	28,021	26,286	17,418	12,211
Consumer Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		10,925
Finance Leases Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Write-downs	42	0	16
Financing Receivable, Allowance for Credit Losses, Recovery	31	1	1
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery	11	(1)	(15)
Financing Receivable, Credit Loss, Expense (Reversal)	(66)	(361)	418
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	$ 161	238	$ 518	$ 115
Finance Leases Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		$ 80

XML

Allowance for Loan Losses Composition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	$ 3,566	$ 1,616
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	81,813	81,581
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	0	0
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	85,379	83,197	$ 85,675	$ 56,679
Financing Receivable, Individually Evaluated for Impairment	78,341	74,502
Financing Receivable, Collectively Evaluated for Impairment	7,058,897	6,789,471
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	4,653	7,149
Loans and Leases Receivable, Net of Deferred Income	$ 7,141,891	$ 6,871,122
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Individually Evaluated for Impairment	4.55%	2.17%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Collectively Evaluated for Impairment	1.16%	1.20%
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance as a percentage of loan balance	0.00%	0.00%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans	1.20%	1.21%
PPP loans originated	$ 4,200	$ 74,400
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		6,090	6,090
7000 Hotels, Rooming Houses, Camps and Other Lodging Places
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Collectively Evaluated for Impairment		148,018
Loans and Leases Receivable, Net of Deferred Income		203,900
Additional Reserve Pandemic Risk		2,226
722110 Full-Service Restaurants
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Collectively Evaluated for Impairment		40,648
Additional Reserve Pandemic Risk		917
5331 Retail, Variety Stores
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Collectively Evaluated for Impairment		184,171
Additional Reserve Pandemic Risk		2,033
Hotels, Restaurants, Strip Shopping Total
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Collectively Evaluated for Impairment		372,837
Additional Reserve Pandemic Risk		5,176
Commercial Financial And Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	3,426	1,385
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	13,561	12,640
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	0	0
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	16,987	14,025	25,608	20,203
Financing Receivable, Individually Evaluated for Impairment	41,307	22,666
Financing Receivable, Collectively Evaluated for Impairment	1,259,524	1,275,783
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	102	177
Loans and Leases Receivable, Net of Deferred Income	$ 1,300,933	$ 1,298,626
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Individually Evaluated for Impairment	8.29%	6.11%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Collectively Evaluated for Impairment	1.08%	0.99%
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance as a percentage of loan balance	0.00%	0.00%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans	1.31%	1.08%
Commercial Financial And Agricultural [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		$ (8,257)
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	$ 131	188
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	17,698	25,278
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	0	0
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	17,829	25,466	23,480	10,229
Financing Receivable, Individually Evaluated for Impairment	32,423	47,820
Financing Receivable, Collectively Evaluated for Impairment	1,758,118	1,748,854
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	3,513	5,118
Loans and Leases Receivable, Net of Deferred Income	$ 1,794,054	$ 1,801,792
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Individually Evaluated for Impairment	0.40%	0.39%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Collectively Evaluated for Impairment	1.01%	1.45%
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance as a percentage of loan balance	0.00%	0.00%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans	0.99%	1.41%
Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		$ 2,119
Construction Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	$ 0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	5,550	5,758
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	0	0
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	5,550	5,758	7,288	5,311
Financing Receivable, Individually Evaluated for Impairment	1,712	222
Financing Receivable, Collectively Evaluated for Impairment	323,043	320,608
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	660	956
Loans and Leases Receivable, Net of Deferred Income	$ 325,415	$ 321,786
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Individually Evaluated for Impairment	0.00%	0.00%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Collectively Evaluated for Impairment	1.72%	1.80%
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance as a percentage of loan balance	0.00%	0.00%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans	1.71%	1.79%
Construction Real Estate [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		$ (1,898)
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	$ 0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	16,831	11,424
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	0	0
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	16,831	11,424	11,363	8,610
Financing Receivable, Individually Evaluated for Impairment	2,191	2,606
Financing Receivable, Collectively Evaluated for Impairment	1,794,302	1,735,226
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	378	875
Loans and Leases Receivable, Net of Deferred Income	$ 1,796,871	$ 1,738,707
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Individually Evaluated for Impairment	0.00%	0.00%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Collectively Evaluated for Impairment	0.94%	0.66%
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance as a percentage of loan balance	0.00%	0.00%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans	0.94%	0.66%
Residential Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		$ 3,121
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	$ 0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	28,021	26,286
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	0	0
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	28,021	26,286	17,418	12,211
Financing Receivable, Individually Evaluated for Impairment	0	0
Financing Receivable, Collectively Evaluated for Impairment	1,904,981	1,689,679
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	0	0
Loans and Leases Receivable, Net of Deferred Income	$ 1,904,981	$ 1,689,679
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Individually Evaluated for Impairment	0.00%	0.00%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Collectively Evaluated for Impairment	1.47%	1.56%
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance as a percentage of loan balance	0.00%	0.00%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans	1.47%	1.56%
Consumer Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		$ 10,925
Finance Leases Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	$ 9	43
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	152	195
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses	0	0
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	161	238	$ 518	$ 115
Financing Receivable, Individually Evaluated for Impairment	708	1,188
Financing Receivable, Collectively Evaluated for Impairment	18,929	19,321
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	0	23
Loans and Leases Receivable, Net of Deferred Income	$ 19,637	$ 20,532
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Individually Evaluated for Impairment	1.27%	3.62%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans, Collectively Evaluated for Impairment	0.80%	1.01%
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance as a percentage of loan balance	0.00%	0.00%
Loans And Leases Receivable, Ratio Of Allowance For Loan Losses To Total Loans	0.82%	1.16%
Finance Leases Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		$ 80

XML

Goodwill and Other Intangible Assets Schedule of Goodwill and Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 159,595	$ 159,595	$ 159,595	$ 159,595
Other Intangible Assets, Net	5,975	7,462	9,260	11,523
Intangible Assets, Net (Including Goodwill)	165,570	167,057	168,855	$ 171,118
Amortization of Intangible Assets	$ 1,487	$ 1,798	$ 2,263

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Goodwill and Other Intangible Assets Acquired Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	$ 9,781	$ 8,294
Intangible Assets, Gross (Excluding Goodwill)	15,756	15,756
Amortization of Intangible Assets	1,487	1,798	$ 2,263
Core Deposits [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	14,456	14,456
Finite-Lived Intangible Assets, Accumulated Amortization	8,481	6,994
Amortization of Intangible Assets	1,500	1,800	$ 2,300
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1,300	1,300
Finite-Lived Intangible Assets, Accumulated Amortization	$ 1,300	$ 1,300

XML

Goodwill and Other Intangible Assets Future amortization expense (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 1,323
Finite-Lived Intangible Assets, Amortization Expense, Year Two	1,215
Finite-Lived Intangible Assets, Amortization Expense, Year Three	1,042
Finite-Lived Intangible Assets, Amortization Expense, Year Four	887
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 754

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Mortgage Loans Held for Sale (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgages Held-for-sale, Fair Value Disclosure	$ 2,149,000	$ 9,387,000
Gain (Loss) on Sale of Mortgage Loans	41,000	166,000
Loans held for sale - lower of cost or market	4,400,000		$ 4,400,000
Gain (Loss) on Sale of Loans and Leases	495,000
Transfer of Loans Held-for-sale to Portfolio Loans	2,400,000
Financing Receivable, Sale	3,900,000
Financing Receivable, Held-for-Sale	6,300,000
Real Estate Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group	$ 2,100,000	9,200,000
Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale - lower of cost or market		$ 0

XML

Foreclosed and Repossessed Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Line Items]
Other real estate owned	$ 1,354,000	$ 775,000
Other Repossessed Assets	605,000	3,300,000
Real Estate Owned, Valuation Allowance, Valuation Increase	12,039,000	64,000	$ 105,000
Vision related
Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Line Items]
Real Estate Owned, Valuation Allowance, Valuation Increase	12,000,000	0
Commercial Real Estate [Member]
Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Line Items]
Other real estate owned	1,354,000	0
Residential real estate
Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Line Items]
Other real estate owned	0	775,000
Mortgage Loans in Process of Foreclosure, Amount	$ 1,614,000	$ 1,148,000

XML

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	$ 229,335	$ 226,929
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	147,209	137,921
Property, Plant and Equipment, Net	82,126	89,008
Depreciation, Depletion and Amortization, Nonproduction	13,800	13,300	$ 10,800
Property Subject to or Available for Operating Lease, Gross	4,427	7,298
Property Subject to or Available for Operating Lease, Accumulated Depreciation	3,162	4,860
Property Subject to or Available for Operating Lease, Net	1,265	2,438
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease	1,100	1,500	$ 1,800
Land [Member]
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	22,139	21,992
Building [Member]
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	97,510	97,128
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	77,446	76,675
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	3,575	6,436
Software and Software Development Costs
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	$ 28,665	$ 24,698

XML

Investments in Qualified Affordable Housing (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investment [Line Items]
Amortization Method Qualified Affordable Housing Project Investments	$ 60,968	$ 58,711
Affordable Housing Program Obligation	28,132	28,484
Amortization Method Qualified Affordable Housing Project Investments, Amortization	7,743	7,313	$ 7,046
Affordable Housing Tax Credits and Other Tax Benefits, Amount	9,300	8,800	$ 8,700
Qualified Affordable Housing [Domain]
Investment [Line Items]
Amortization Method Qualified Affordable Housing Project Investments	$ 60,968	$ 58,711

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Deposits Summary of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deposits [Abstract]
Non-interest bearing	$ 3,074,276	$ 3,066,419
Interest-bearing Deposit Liabilities	5,160,439	4,838,109
Total deposits	$ 8,234,715	$ 7,904,528	$ 7,572,358

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Deposits Maturity of time deposits (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Deposits [Abstract]
Time Deposit Maturities, Next Twelve Months	$ 346,856
Time Deposit Maturities, Year Two	122,885
Time Deposit Maturities, Year Three	35,005
Time Deposit Maturities, Year Four	24,463
Time Deposit Maturities, Year Five	25,194
Time Deposit Maturities, after Year Five	42
Time Deposits	$ 554,445

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Deposits (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Deposits [Abstract]
Deposits received from executive officers, directors, and their related interests	$ 17.5	$ 29.6
Time Deposits, $250,000 or more	$ 44.3	$ 65.8

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Repurchase Agreement Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Available unpledged securities	$ 1,147,000	$ 1,225,000
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	227,342	213,786
Debt Securities, Available-for-sale, Amortized Cost	1,854,852	1,727,363
Debt Securities, Available-for-sale	1,733,696	1,754,140
Securities Sold under Agreements to Repurchase [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	353,000	327,900
Debt Securities, Available-for-sale	313,100	334,900
Maturity Overnight [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	227,342	213,786
Maturity Less than 30 Days [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	0	0
Maturity 30 to 90 Days [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	0	0
Maturity Greater than 90 Days [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 0	$ 0

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Short Term Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Other Short-term Borrowings	$ 227,342	$ 213,786
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months	0	25,000
Short-term Debt, Total	$ 227,342	$ 238,786
Average interest rate on FHLB swap	3.62%	2.69%
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	$ 7,141,891	$ 6,871,122	$ 7,177,785
Debt Securities, Available-for-sale, Amortized Cost	1,854,852	1,727,363
Federal Home Loan Bank Advances [Member]
Short-term Debt [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	1,832,000	1,749,000
Debt Securities, Available-for-sale, Amortized Cost	7,200	9,500
Securities Sold under Agreements to Repurchase [Member]
Short-term Debt [Line Items]
Short-term Debt, Total	227,342	213,786
Short-term Debt, Maximum Month-end Outstanding Amount	227,342	297,118
Short-term Debt, Average Outstanding Amount	$ 199,813	$ 261,967
Short-term Debt, Weighted Average Interest Rate, at Point in Time	1.39%	0.03%
Short-term Debt, Weighted Average Interest Rate, over Time	0.57%	0.04%
Federal Home Loan Bank Advances [Member]
Short-term Debt [Line Items]
Short-term Debt, Total	$ 0	$ 25,000
Short-term Debt, Maximum Month-end Outstanding Amount	25,000	25,000
Short-term Debt, Average Outstanding Amount	$ 7,195	$ 25,025
Short-term Debt, Weighted Average Interest Rate, at Point in Time	0.00%	0.23%
Short-term Debt, Weighted Average Interest Rate, over Time	0.04%	0.23%

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Long-Term Debt Schedule of maturities (Details) $ in Millions	Jun. 20, 2019 USD ($)
Notes Payable to Banks
Debt Instrument [Line Items]
Long-term Debt, Excluding Unamortized Cost of Debt Extinguishment Costs	$ 50

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Long-Term Debt (Details) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
	Aug. 02, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 03, 2020	Feb. 18, 2020	Jun. 20, 2019
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Repayment and Penalties		$ 100,000	$ 50,000
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate							3.40%	3.01%
Repayments of Long-term Debt				$ 0	$ 32,500	$ 170,529
Notes Payable to Banks
Debt Instrument [Line Items]
Long-term Debt, Excluding Unamortized Cost of Debt Extinguishment Costs									$ 50,000
Repayments of Long-term Debt	$ 27,500

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Subordinated Notes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Aug. 20, 2020
Subordinated Borrowing [Line Items]
Basis spread on variable rate (percent)	1.48%
Long-term Debt, Gross			$ 175.0
Debt Instrument, Interest Rate, Stated Percentage			4.50%
Debt Issuance Costs, Gross			$ 2.4
Subordinated debt
Subordinated Borrowing [Line Items]
Basis spread on variable rate (percent)	4.39%
Long-term Debt	$ 173.7	$ 173.2
Trust I
Subordinated Borrowing [Line Items]
Preferred securities issued	15.0
Junior subordinated notes
Subordinated Borrowing [Line Items]
Junior subordinated debt purchased by Trust I	$ 15.5

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Derivatives Schedule of derivatives (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Unrealized Gain (Loss) on Cash Flow Hedging Instruments		$ 262
Borrowing Derivative [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 0	$ 25,000
Derivative, Average Fixed Interest Rate	0.00%	2.595%
Derivative, Average Variable Interest Rate	0.00%	0.124%
Derivative, Average Remaining Maturity	0 years	6 months
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	$ 0	$ 262
Loan Derivative [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 21,700	$ 29,651
Derivative, Average Fixed Interest Rate	4.553%	4.668%
Derivative, Average Variable Interest Rate	4.553%	4.668%
Derivative, Average Remaining Maturity	7 years 10 months 24 days	8 years 2 months 12 days
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	$ 0	$ 0

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Derivatives included in AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss)	$ 154	$ 492	$ (244)
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	0	0	0
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net	$ 52	$ 0	$ 0

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Derivatives Statements of financial performance and financial position (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Unrealized Gain (Loss) on Cash Flow Hedging Instruments		$ 262
Borrowing Derivative [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 0	25,000
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	0	262
Loan Derivative [Member]
Derivative [Line Items]
Derivative, Notional Amount	21,700	29,651
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	0	0
Other Assets [Member] | Borrowing Derivative [Member]
Derivative [Line Items]
Derivative, Notional Amount	0	0
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	0	0
Other Assets [Member] | Loan Derivative [Member]
Derivative [Line Items]
Derivative, Notional Amount	0	29,651
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	0	(1,952)
Other Assets [Member] | Loan Derivative [Member] | Individually Immaterial Counterparties [Member]
Derivative [Line Items]
Derivative, Notional Amount	21,700	0
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	(1,508)	0
Other Assets [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, Notional Amount	21,700	29,651
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	(1,508)	(1,952)
Other Liabilities [Member] | Borrowing Derivative [Member]
Derivative [Line Items]
Derivative, Notional Amount	0	25,000
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	0	262
Other Liabilities [Member] | Loan Derivative [Member]
Derivative [Line Items]
Derivative, Notional Amount	21,700	0
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	1,508	0
Other Liabilities [Member] | Loan Derivative [Member] | Individually Immaterial Counterparties [Member]
Derivative [Line Items]
Derivative, Notional Amount	0	29,651
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	0	1,952
Other Liabilities [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, Notional Amount	21,700	54,651
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	$ 1,508	$ 2,214

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Derivatives (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
Interest Income on Interest-rate Swap	$ 171,000	$ 614,000	$ 423,000
Derivative Asset	46,000	300,000
Swaps, fair value		226,000
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	66,000	0	$ 0
Swap [Member]
Derivative [Line Items]
Swaps, fair value	243,000	226,000
Borrowing Derivative [Member]
Derivative [Line Items]
Derivative, Notional Amount	0	25,000,000
Loan Derivative [Member]
Derivative [Line Items]
Derivative, Notional Amount	21,700,000	29,651,000
Interest Rate Lock Commitment [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 2,100,000	$ 13,300,000

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Share Based Compensation Activity (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	211,819	204,108
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	55,464	48,106
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	8,406	3,522
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease)	(634)	(2,551)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	199,650	211,819	204,108
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings	34,245	29,670
Shares Paid for Tax Withholding for Share Based Compensation	21,219	18,436
2017 Employees Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	52,335	61,890
2017 Employees Long Term Incentive Plan [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	52,335	61,890	62,265

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Share Based Compensation Nonvested award cost (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 8,637
Share based payment cost not yet recognized, next twelve months	4,375
Share base payment arrangement, cost not yet recognized year two, amount	2,869
Share base payment arrangement, cost not yet recognized year three, amount	1,200
Share base payment arrangement, cost not yet recognized year four, amount	$ 193

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Share Based Compensation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury Stock Reissued Shares For Director Grants	9,789	13,400	13,450
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	$ 1.3	$ 1.7	$ 1.3
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	198,737
Shares Paid for Tax Withholding for Share Based Compensation	21,219	18,436
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings	34,245	29,670
Allocated Share-based Compensation Expense	$ 5.9	$ 6.3	$ 6.0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	55,464	48,106
2017 Employees Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	750,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	375,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	52,335	61,890
2017 Employees Long Term Incentive Plan [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	52,335	61,890	62,265
2017 Non Employee Directors LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	150,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	75,000

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Benefit Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Nov. 17, 2009
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer		$ 0	$ 0
Defined Benefit Plan, Benefit Obligation		$ 127,394	$ 182,964	$ 184,410
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		5.32%	3.23%	3.00%
Expected long-term rate of return on plan assets		6.92%	6.92%
Accumulated benefit obligation for the pension plan		$ 106,300	$ 146,200
Common share purchased under pension plan, shares					115,800
Common share purchased under pension plan, value					$ 7,000
Common share purchased under pension plan, value per share					$ 60.45
Fair value of common shares held by pension plan		$ 16,300	$ 15,900
Fair value of common shares held by pension plan, per share		$ 140.75	$ 137.31
Fair value, pension plan common shares held, shares		115,800	115,800
Defined Benefit Plan, Plan Assets, Amount		$ 209,138	$ 263,473	$ 230,442
Defined Contribution Plan, Cost		4,600	4,300	$ 4,200
Subsequent Event [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 0
Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		180,153	226,673
Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount		28,985	36,800
Supplemental Executive Retirement Plan (SERP)
Defined Benefit Plan Disclosure [Line Items]
Accrued benefit cost		$ 14,200	$ 13,400

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Benefit Plan Schedule of plan assets and benefit obligation activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Defined Benefit Plan, Plan Assets, Amount	$ 209,138	$ 263,473	$ 230,442
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss)	(37,319)	48,138
Defined Benefit Plan, Plan Assets, Contributions by Employer	0	0
Defined Benefit Plan, Plan Assets, Benefits Paid	17,016	15,107
Defined Benefit Plan, Benefit Obligation	127,394	182,964	184,410
Defined Benefit Plan, Service Cost	9,749	9,916	8,319
Defined Benefit Plan, Interest Cost	5,705	5,359	5,283
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment	558	0
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	(54,566)	(1,614)
Benefits paid	17,016	15,107
Defined Benefit Plan, Funded (Unfunded) Status of Plan	81,744	80,509
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	$ (2,359)	$ 1,764	$ 367

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Benefit Plan Schedule of allocation of plan assets (Details) - shares	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	100.00%	100.00%
Fair value, pension plan common shares held, shares	115,800	115,800
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	84.00%	82.00%
Fixed Income Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	16.00%	18.00%

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Benefit Plan Schedule of assumptions used to determine benefit obligations (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	5.32%	3.23%	3.00%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate	4.07%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	6.92%	7.00%	7.00%
Expected long-term rate of return on plan assets	6.92%	6.92%
Under age 30 [Member]
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	8.25%	8.25%	8.25%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	8.25%	8.25%	10.00%
Ages 30-39 [Member] [Member]
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	6.00%	6.00%	6.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	6.00%	6.00%	6.00%
Ages 40-49 [Domain]
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	5.00%	5.00%	5.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	5.00%	5.00%	4.00%
Ages 50 to 54 [Member]
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	4.25%	4.25%	4.25%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	4.25%	4.25%	3.00%
Ages 55-59
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	3.75%	3.75%	3.75%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	3.75%	3.75%	3.00%
Ages 60-64
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	3.50%	3.50%	3.50%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	3.50%	3.50%	3.00%
Ages 65 and over
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	3.25%	3.25%	3.25%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	3.25%	3.25%	3.00%

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Benefit Plan Schedule of estimated future pension benefit payments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Defined Benefit Plan Expected Future Benefit Payments Next Twelve Months	$ 9,684
Defined Benefit Plan Expected Future Benefit Payments Year Two	9,769
Defined Benefit Plan Expected Future Benefit Payments Year Three	10,143
Defined Benefit Plan Expected Future Benefit Payments Year Four	10,111
Defined Benefit Plan Expected Future Benefit Payments Year Five	11,053
Defined Benefit Plan Expected Future Benefit Payments Five Fiscal Years Thereafter	51,388
Defined Benefit Plan, Expected Future Benefit Payments, Total	$ 102,148

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Benefit Plan Schedule of balances of AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax	$ (436)	$ 137
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax	8,020	7,469
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax	(8,456)	(7,332)
Deferred Tax Assets, Tax Deferred Expense, Other	1,776	1,540
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax	$ (6,680)	$ (5,792)

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Benefit Plan Schedule of components of net periodic benefit cost and other amounts recognized in OCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Defined Benefit Plan, Service Cost	$ (9,749)	$ (9,916)	$ (8,319)
Defined Benefit Plan, Interest Cost	(5,705)	(5,359)	(5,283)
Defined Benefit Plan, Expected Return (Loss) on Plan Assets	$ 17,798	$ 15,731	$ 14,410
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Employee benefits	Employee benefits	Employee benefits
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	$ (2,359)	$ 1,764	$ 367
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax	(1,109)	34,019	(10,981)
Defined Benefit Plan, Amortization of Gain (Loss)	(15)	2,220	1,175
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Reclassification Adjustment, before Tax	(1,124)	36,239	(9,806)
Total Recognized In Net Benefit Cost And Other Comprehensive Loss Income	$ 1,235	$ 34,475	$ (10,173)

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Benefit Plan Schedule of assumptions used to determine costs (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	3.23%	3.00%	3.53%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	6.92%	7.00%	7.00%
Under age 30 [Member]
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	8.25%	8.25%	8.25%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	8.25%	8.25%	10.00%
Ages 30-39 [Member] [Member]
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	6.00%	6.00%	6.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	6.00%	6.00%	6.00%
Ages 40-49 [Domain]
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	5.00%	5.00%	5.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	5.00%	5.00%	4.00%
Ages 50 to 54 [Member]
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	4.25%	4.25%	4.25%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	4.25%	4.25%	3.00%

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Benefit Plan Schedule of Plan Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	$ 209,138	$ 263,473	$ 230,442
Defined Benefit Plan, Service Cost	9,749	9,916	8,319
Defined Benefit Plan, Interest Cost	5,705	5,359	5,283
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	2,359	(1,764)	(367)
Supplemental Executive Retirement Plan (SERP)
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Service Cost	1,091	1,345	1,680
Defined Benefit Plan, Interest Cost	564	510	403
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	(1,655)	(1,855)	$ (2,083)
Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	180,153	226,673
Level 1 | Defined Benefit Plan, Cash
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	1,959	3,222
Level 1 | Defined Benefit Plan, Equity Securities, US
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	132,101	162,464
Level 1 | Obligations of U.S. Treasury and other U.S. Government sponsored entities
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	0	0
Level 1 | Corporate Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	0	0
Level 1 | Mutual Fund
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	46,093	60,987
Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	28,985	36,800
Level 2 | Defined Benefit Plan, Cash
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	3,910	4,731
Level 2 | Defined Benefit Plan, Equity Securities, US
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	0	0
Level 2 | Obligations of U.S. Treasury and other U.S. Government sponsored entities
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	12,513	15,254
Level 2 | Corporate Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	12,562	16,815
Level 2 | Mutual Fund
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Amount	$ 0	$ 0

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Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investments, Owned, Federal Income Tax Note [Line Items]
State and Local Income Tax Expense (Benefit), Continuing Operations	$ 1,300	$ 1,000	$ 1,100
Deferred Tax Assets, Operating Loss Carryforwards	2,654	3,197
State and Local Jurisdiction [Member]
Investments, Owned, Federal Income Tax Note [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards	300	400
Domestic Tax Authority [Member]
Investments, Owned, Federal Income Tax Note [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards	$ 2,400	$ 2,800

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Income Taxes Schedule of deferred income tax asset and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Components of Deferred Tax Assets [Abstract]
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Provision for Loan Losses	$ 18,615	$ 18,153
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Pensions	1,776	1,540
Deferred Tax Assets, Hedging Transactions	0	55
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross	25,443	0
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation	6,255	6,294
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Impairment Losses	11	909
Deferred tax asset, deferred loan fees	1,898	2,569
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Other	317	432
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost	2,827	2,694
Deferred Tax Assets, Operating Loss Carryforwards	2,654	3,197
Deferred Tax Assets, Capital Loss Carryforwards	299	0
Deferred Tax Assets, Property, Plant and Equipment	510	249
Deferred Tax Assets, Operating lease liability	4,206	3,111
Deferred Tax Assets, Investments	0	69
Deferred Tax Assets, Other	1,950	1,854
Deferred Tax Assets, Gross	66,761	41,126
Components of Deferred Tax Liabilities [Abstract]
Deferred Tax Liabilities, Unrealized Gains on Trading Securities	0	5,623
Deferred Tax Liabilities, Investments	4,890	6,363
Deferred Tax Liabilities, Prepaid Expenses	19,678	19,182
Deferred Tax Liabilities, Mortgage Servicing Rights	3,445	3,333
Deferred Tax Liabilities, Partnership Adjustments	884	0
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost	952	880
Deferred Tax Liabilities, Operating lease right of use asset	3,837	2,917
Deferred Tax Liabilities, Leasing Arrangements	2,325	2,764
Deferred Tax Liabilities, Other	565	514
Deferred Tax Liabilities, Tax Deferred Income	36,576	41,576
Deferred Tax Assets, Net	$ 30,185
Net deferred tax asset (liability)		$ 450	$ 2,892

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Income Taxes Federal and State income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current Federal Tax Expense (Benefit)	$ 22,574	$ 28,726	$ 22,769
Current State and Local Tax Expense (Benefit)	1,180	1,382	1,432
Other Tax Expense (Benefit)	7,743	7,313	7,046
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
Deferred Federal Income Tax Expense (Benefit)	464	(3,006)	(4,812)
Deferred State and Local Income Tax Expense (Benefit)	147	(125)	287
Income taxes	$ 32,108	$ 34,290	$ 26,722

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Income Taxes Schedule of income tax rate reconciliation (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%	21.00%
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent	1.60%	1.20%	1.50%
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Life Insurance, Percent	0.70%	0.50%	0.70%
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Percent	0.80%	0.80%	1.10%
Effective Income Tax Rate Reconciliation, Deduction, Employee Stock Ownership Plan Dividend, Percent	0.50%	0.50%	0.60%
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent	(0.40%)	(0.20%)	(0.20%)
Effective Income Tax Rate Reconciliation, Percent	17.80%	18.20%	17.30%

XML

Income Taxes Reconciliation of unrecognized tax benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Unrecognized Tax Benefits, Beginning Balance	$ 339,000	$ 633,000	$ 954,000
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	0	0	12,000
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	25,000	10,000	0
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	0	0	0
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	295,000	304,000	333,000
Unrecognized Tax Benefits, Ending Balance	69,000	339,000	633,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	100,000	300,000	600,000
Income Tax Examination, Penalties and Interest Expense	56,000	45,500	35,000
Income Tax Examination, Penalties and Interest Accrued	$ 9,500	$ 65,500	$ 111,000

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Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax	$ 6,680	$ 5,792	$ 34,421	$ 26,674
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax	(95,714)	21,153	40,690	17,539
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax	0	(206)	(698)	(454)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(102,394)	15,155	5,571	$ (9,589)
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax	876	(26,875)	8,675
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, after Tax	(116,867)	(19,537)	25,747
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax	154	492	(244)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(117,589)	7,830	16,828
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax	(12)	1,754	928
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	0	0	2,596
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax	52	0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(40)	(1,754)	1,668
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	888	(28,629)	7,747
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax	(116,867)	(19,537)	23,151
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax	206	492	(244)
Other Comprehensive Income (Loss), Net of Tax	(117,549)	9,584	15,160
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax	0	2,235	1,190
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax	(3)	466	247
Gain (Loss) on Sale of Investments	0	0	3,286
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax	0	0	(3,286)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	0	0	(690)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax	(1,109)	34,019	(10,981)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax	(15)	(15)	(15)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax	(15)	2,220	1,175
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax	$ 14	$ 0	$ 0
OCI, Cash Flow Hedge, Reclassification for Discontinuance, Statement of Income or Comprehensive Income [Extensible Enumeration]	Miscellaneous	Miscellaneous	Miscellaneous
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax	$ 0	$ 0	$ (3,286)
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ 0	$ 0	$ (2,596)

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Earnings Per Share Summary of Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net Income (Loss) Available to Common Stockholders, Basic	$ 148,351	$ 153,945	$ 127,923
Weighted Average Number of Shares Outstanding, Basic	16,246,009	16,291,016	16,302,825
Weighted Average Number Diluted Shares Outstanding Adjustment	119,300	134,190	104,677
Weighted Average Number of Shares Outstanding, Diluted	16,365,309	16,425,206	16,407,502
Basic (in dollars per share)	$ 9.13	$ 9.45	$ 7.85
Diluted (in dollars per share)	$ 9.06	$ 9.37	$ 7.80

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Earnings Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Treasury Stock, Shares, Acquired		137,659	76,000
Common Stock [Member] | share repurchase program [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Treasury Stock, Shares, Acquired			62,659
2017 Employees Long Term Incentive Plan [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	52,335	61,890
2017 Employees Long Term Incentive Plan [Member] | Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Treasury Stock, Shares, Acquired	0	75,000	76,000
2017 Employees Long Term Incentive Plan [Member] | Performance Shares [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	52,335	61,890	62,265

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Dividend Restrictions (Details) $ in Millions	Dec. 31, 2022 USD ($)
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval	$ 121.4

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Financial Instruments With Off-Balance Sheet Risk and Financial Instruments With Concentrations of Credit Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Risks and Uncertainties [Abstract]
Unused Commitments to Extend Credit	$ 1,416,699	$ 1,364,224
Letters of Credit Outstanding, Amount	$ 30,468	$ 18,216

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Loan Servicing (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Servicing Assets at Fair Value [Line Items]
Serviced sold mortgage loans	$ 2,051,000,000	$ 2,132,000,000	$ 1,972,000,000
Serviced sold mortgage loans with recourse	3,200,000	3,300,000	1,700,000
Mortgage loans sold with recourse, reserve	$ 59,000	$ 57,000
Mortgage servicing rights, discount rate	12.00%	12.00%
Bank Servicing [Member]
Servicing Assets at Fair Value [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 15,295,000	$ 29,812,000	37,611,000
Bank Servicing [Member] | Real Estate Loan [Member]
Servicing Assets at Fair Value [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 5,400,000	$ 5,300,000	$ 4,100,000
Minimum
Servicing Assets at Fair Value [Line Items]
Mortgage servicing rights, constant prepayment speeds	6.96%	11.10%
Maximum
Servicing Assets at Fair Value [Line Items]
Mortgage servicing rights, constant prepayment speeds	19.14%	27.90%
Mortgages [Member]
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Amortized Cost, Fair Value	$ 17,400,000	$ 15,300,000

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Loan Servicing Activity of MSRs and the related valuation allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Servicing Asset at Amortized Cost, Beginning Balance	$ 15,264	$ 12,210	$ 10,070
Servicing Asset at Amortized Cost, Additions	1,455	4,945	8,627
Servicing Asset at Amortized Cost, Amortization	2,313	3,512	4,123
Servicing Asset at Amortized Cost, Increase (Decrease) for Valuation Allowance Adjustment	1,386	1,621	(2,364)
Servicing Asset at Amortized Cost, Ending Balance	15,792	15,264	12,210
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance, Beginning Balance	1,568	3,189	825
Valuation Allowance for Impairment of Recognized Servicing Assets, Additions (Deductions) for Expenses (Recoveries)	(1,386)	(1,621)	2,364
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance, Ending Balance	$ 182	$ 1,568	$ 3,189

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Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	$ 17,600	$ 13,446
Operating Lease, Liability	$ 19,291	$ 14,339
Operating Lease, Weighted Average Remaining Lease Term	10 years	6 years 9 months 18 days
Operating Lease, Weighted Average Discount Rate, Percent	3.30%	2.30%
Lessee, Operating Lease, Liability, Payments, Due	$ 23,373
Other Liabilities [Member]
Lessee, Lease, Description [Line Items]
Operating Lease, Liability	19,291	$ 14,300
Other Assets [Member]
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	$ 17,600	$ 13,400

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Leases, Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating Lease, Cost	$ 3,073	$ 2,827	$ 3,463
Sublease Income	252	253	352
Lease, Cost, Total	2,821	2,574	3,111
Operating Lease, Payments	3,116	3,199	3,553
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	7,867	1,190	7,821
reductions to right of use assets resulting from reduction in lease obligations	$ 2,812	$ 2,865	$ 3,084

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Leases, Operating lease liabilities payments due (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months	$ 3,599
Lessee, Operating Lease, Liability, Payments, Due Year Two	2,485
Lessee, Operating Lease, Liability, Payments, Due Year Three	2,142
Lessee, Operating Lease, Liability, Payments, Due Year Four	2,097
Lessee, Operating Lease, Liability, Payments, Due Year Five	2,030
Lessee, Operating Lease, Liability, Payments, Due after Year Five	11,020
Lessee, Operating Lease, Liability, Payments, Due	23,373
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	4,082
Operating Lease, Liability	19,291	$ 14,339
Other Liabilities [Member]
Lessee, Lease, Description [Line Items]
Operating Lease, Liability	$ 19,291	$ 14,300

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Fair Value (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Repossessed Assets	$ 605,000	$ 3,300,000
Discount percentage applied to real estate appraised values	15.00%
Discount percentage applied to lot development appraised values	6.00%
Mortgage loan servicing rights	$ 15,792,000	15,264,000	$ 12,210,000	$ 10,070,000
Servicing Asset at Fair Value, Amount	1,700,000	13,500,000
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance	182,000	1,568,000	3,189,000	$ 825,000
MSRs recorded at cost	14,100,000	1,800,000
Valuation Allowance for Impairment of Recognized Servicing Assets, Additions (Deductions) for Expenses (Recoveries)	(1,386,000)	(1,621,000)	2,364,000
Other real estate owned	1,354,000	775,000
Estimated fair value of other real estate owned (OREO)	0
OREO devaluations	11,300,000	32,000	185,000
expense related to other repossessed assets	0	414,000	435,000
Alternative Investment	44,657,000	26,384,000
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments	20,300,000	8,400,000
Alternative Investment, income recognized	2,400,000	4,500,000	$ 2,400,000
Nonrecurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Repossessed Assets	0	2,750,000
Servicing Asset at Fair Value, Amount	1,717,000	13,482,000
Fair Value, Inputs, Level 3 [Member] | Nonrecurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Repossessed Assets	0	2,750,000
Fair Value Measured at Net Asset Value Per Share [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Alternative Investment	$ 24,400,000	$ 18,000,000

XML

Fair Value Schedule of Financial Assets and Liabilities measured on recurring basis (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages Held-for-sale, Fair Value Disclosure	$ 9,387,000	$ 2,149,000
Derivative Asset	300,000	46,000
Swaps, fair value	226,000
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	262,000
Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Swaps, fair value	226,000	243,000
Recurring basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages Held-for-sale, Fair Value Disclosure	9,387,000	2,149,000
Derivative Asset	333,000	46,000
Recurring basis | Obligations of States and Political Subdivisions
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	389,591,000	406,711,000
Recurring basis | U S Government Sponsored Entities Asset Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	854,463,000	756,761,000
Recurring basis | Collateralized Loan Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	498,674,000	516,539,000
Recurring basis | Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	11,412,000	16,472,000
Recurring basis | Equity securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	2,129,000	1,859,000
Recurring basis | Loans Receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	1,952,000	1,508,000
Swaps, fair value	1,952,000	1,508,000
Recurring basis | Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Swaps, fair value		243,000
Recurring basis | US Government-sponsored Enterprises Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure		37,213,000
Level 1 | Recurring basis | Equity securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	1,630,000	1,420,000
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages Held-for-sale, Fair Value Disclosure	9,387,000	2,149,000
Level 2 | Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	262,000
Level 2 | Recurring basis
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgages Held-for-sale, Fair Value Disclosure	9,387,000	2,149,000
Derivative Asset	333,000	46,000
Level 2 | Recurring basis | Obligations of States and Political Subdivisions
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	389,591,000	406,711,000
Level 2 | Recurring basis | U S Government Sponsored Entities Asset Backed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	854,463,000	756,761,000
Level 2 | Recurring basis | Collateralized Loan Obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	498,674,000	516,539,000
Level 2 | Recurring basis | Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	11,412,000	9,472,000
Level 2 | Recurring basis | Loans Receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	1,952,000	1,508,000
Swaps, fair value	1,952,000	1,508,000
Level 2 | Recurring basis | US Government-sponsored Enterprises Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure		37,213,000
Fair Value, Inputs, Level 3 [Member] | Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	0
Fair Value, Inputs, Level 3 [Member] | Recurring basis | Corporate Debt Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure		7,000,000
Fair Value, Inputs, Level 3 [Member] | Recurring basis | Equity securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	499,000	439,000
Fair Value, Inputs, Level 3 [Member] | Recurring basis | Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Swaps, fair value	$ 226,000	$ 243,000

XML

Fair Value Reconciliation of Level 3 Input for Financial Instruments measured on recurring basis (Details) - Fair Value, Inputs, Level 3 [Member] - Recurring basis - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 439	$ 499	$ 485
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(60)	14
Swap [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	(243)	(226)	(226)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss)	(221)	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	204
Corporate Debt Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	7,000	$ 0	$ 0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3	$ 7,000

XML

Fair Value Assets and Liabilities measured on nonrecurring basis (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	$ 5,773,000	$ 1,103,000
Loans Receivable, Fair Value Disclosure	6,926,294,000	6,794,671,000
Servicing Asset at Fair Value, Amount	1,700,000	13,500,000
Other Assets, Fair Value Disclosure	6,918,326,000	6,783,848,000
Other Repossessed Assets	605,000	3,300,000
Nonrecurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	5,773,000	1,103,000
Servicing Asset at Fair Value, Amount	1,717,000	13,482,000
Other Assets, Fair Value Disclosure	0	775,000
Other Repossessed Assets	0	2,750,000
Nonrecurring basis | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	200,000	272,000
Nonrecurring basis | Commercial Real Estate Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	5,573,000	831,000
Nonrecurring basis | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value Disclosure		775,000
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	0	0
Level 1 | Nonrecurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value Disclosure	0	0
Level 1 | Nonrecurring basis | Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Repossessed Assets	0
Level 1 | Nonrecurring basis | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value Disclosure		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	2,195,000	9,720,000
Level 2 | Nonrecurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing Asset at Fair Value, Amount	1,717,000	13,482,000
Other Assets, Fair Value Disclosure	0	0
Level 2 | Nonrecurring basis | Other Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Repossessed Assets	0
Level 2 | Nonrecurring basis | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value Disclosure		0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	5,773,000	1,103,000
Loans Receivable, Fair Value Disclosure	6,924,099,000	6,784,951,000
Other Assets, Fair Value Disclosure	6,918,326,000	6,783,848,000
Fair Value, Inputs, Level 3 [Member] | Nonrecurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	5,773,000	1,103,000
Other Assets, Fair Value Disclosure	0	775,000
Other Repossessed Assets	0	2,750,000
Fair Value, Inputs, Level 3 [Member] | Nonrecurring basis | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	200,000	272,000
Fair Value, Inputs, Level 3 [Member] | Nonrecurring basis | Commercial Real Estate Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	$ 5,573,000	831,000
Fair Value, Inputs, Level 3 [Member] | Nonrecurring basis | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value Disclosure		$ 775,000

XML

Fair Value Impaired financing receivables (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Book Value Of Impaired Loans Carried At Fair Value	$ 5,903,000	$ 1,291,000
Partial Charge-Offs On Impaired Loans carried at Fair Value	1,523,000	240,000
Impaired Financing Receivable, Related Allowance	4,175,000	2,240,000
Impaired loans carried at fair value	5,773,000	1,103,000
Impaired Financing Receivable, loans not held at Fair Value, Recorded Investment	72,438,000	73,211,000
Partial Charge-offs on Impaired Loans carried at Cost	252,000	384,000
impaired Financing Receivable, loans not held at Fair Value, Carrying Amount	69,002,000	71,783,000
Impaired Financing Receivable, Recorded Investment	78,341,000	74,502,000	$ 108,455,000
Partial charge-offs on impaired loans	1,775,000	624,000
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	3,566,000	1,616,000
Impaired Financing Receivable, Carrying Value	74,775,000	72,886,000
Impaired Financing Receivable, carried at fair value, related expense	(900,000)	500,000	(4,700,000)
expense related to other repossessed assets	0	414,000	$ 435,000
Commercial Receivables, excluding Commercial, Financial, and Agricultural [Domain]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance	130,000	188,000
Financing Receivable, not collateral dependent [Domain]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance	$ 3,436,000	$ 1,428,000

XML

Fair Value Schedule of qualitative information on Level 3 measurements (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans carried at fair value	$ 5,773	$ 1,103
Other Assets, Fair Value Disclosure	6,918,326	6,783,848
Fair Value, Inputs, Level 3 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans carried at fair value	5,773	1,103
Other Assets, Fair Value Disclosure	6,918,326	6,783,848
Nonrecurring basis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Assets, Fair Value Disclosure	0	775
Nonrecurring basis | Fair Value, Inputs, Level 3 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Assets, Fair Value Disclosure	$ 0	775
Nonrecurring basis | Residential real estate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Assets, Fair Value Disclosure		775
Nonrecurring basis | Residential real estate | Fair Value, Inputs, Level 3 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Assets, Fair Value Disclosure		$ 775
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Minimum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Comparability Adjustment [Member] | Valuation, Market Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.000	0.000
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Minimum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Cap Rate [Member] | Valuation, Income Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.070
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Minimum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Appraised Value | Valuation, Cost Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.388
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Minimum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Revenue Multiple | Valuation, Cost Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.100
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Maximum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Comparability Adjustment [Member] | Valuation, Market Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	2.020	2.320
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Maximum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Cap Rate [Member] | Valuation, Income Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.100
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Maximum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Revenue Multiple | Valuation, Cost Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.120
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Comparability Adjustment [Member] | Valuation, Market Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.194	0.283
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Cap Rate [Member] | Valuation, Income Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.079
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Appraised Value | Valuation, Cost Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.388
Loans Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Revenue Multiple | Valuation, Cost Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.114
Loans Receivable [Member] | Residential real estate | Minimum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Comparability Adjustment [Member] | Valuation, Market Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.019	0.005
Loans Receivable [Member] | Residential real estate | Minimum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Appraised Value | Valuation, Cost Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input		0.083
Loans Receivable [Member] | Residential real estate | Maximum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Comparability Adjustment [Member] | Valuation, Market Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	1.198	0.786
Loans Receivable [Member] | Residential real estate | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Comparability Adjustment [Member] | Valuation, Market Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input	0.174	0.116
Loans Receivable [Member] | Residential real estate | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Appraised Value | Valuation, Cost Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Loans Receivable, Measurement Input		0.083
Loans Receivable [Member] | Nonrecurring basis | Commercial Real Estate Portfolio Segment [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans carried at fair value	$ 5,573	$ 831
Loans Receivable [Member] | Nonrecurring basis | Residential real estate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans carried at fair value	$ 200	$ 272
Other real estate owned | Residential real estate | Minimum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Comparability Adjustment [Member] | Valuation, Market Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Real Estate Owned, Measurement Input		0.050
Other real estate owned | Residential real estate | Maximum | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Comparability Adjustment [Member] | Valuation, Market Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Real Estate Owned, Measurement Input		0.325
Other real estate owned | Residential real estate | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Comparability Adjustment [Member] | Valuation, Market Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Real Estate Owned, Measurement Input		0.191
Other real estate owned | Nonrecurring basis | Residential real estate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Assets, Fair Value Disclosure		$ 775

XML

Fair Value by Balance Sheet grouping (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	$ 219,180,000	$ 189,728,000
Investment Owned, at Fair Value	1,754,140,000	1,733,696,000
Mortgages Held-for-sale, Fair Value Disclosure	$ 9,387,000	$ 2,149,000
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Derivative Asset	$ 300,000	$ 46,000
Impaired loans carried at fair value	1,103,000	5,773,000
Other Assets, Fair Value Disclosure	6,783,848,000	6,918,326,000
Loans Receivable, Fair Value Disclosure	6,794,671,000	6,926,294,000
Time Deposits, Fair Value	714,307,000	552,443,000
Other Liabilities, Fair Value Disclosure	1,465,000	1,325,000
Deposits, Fair Value Disclosure	715,772,000	553,768,000
Short-term Debt, Fair Value	238,786,000	227,342,000
Subordinated Debt Obligations, Fair Value Disclosure	207,912,000	177,928,000
Swaps, fair value	226,000
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	262,000
Equity securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment Owned, at Fair Value	$ 2,129,000	$ 1,859,000
Loans Receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Liability, Type [Extensible Enumeration]	Other Liabilities	Other Liabilities
Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets
Derivative Liability, Type [Extensible Enumeration]	Other Liabilities	Other Liabilities
Swaps, fair value	$ 226,000	$ 243,000
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	$ 219,180,000	$ 189,728,000
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Loans Receivable, Fair Value Disclosure	$ 0	$ 0
Other Liabilities, Fair Value Disclosure	1,465,000	1,325,000
Deposits, Fair Value Disclosure	1,465,000	1,325,000
Level 1 | Equity securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment Owned, at Fair Value	$ 1,630,000	$ 1,420,000
Level 1 | Loans Receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Other Assets
Derivative Liability, Type [Extensible Enumeration]	Other Liabilities	Other Liabilities
Level 1 | Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets
Derivative Liability, Type [Extensible Enumeration]	Other Liabilities	Other Liabilities
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment Owned, at Fair Value	$ 1,754,140,000	$ 1,726,696,000
Mortgages Held-for-sale, Fair Value Disclosure	$ 9,387,000	$ 2,149,000
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Loans Receivable, Fair Value Disclosure	$ 9,720,000	$ 2,195,000
Time Deposits, Fair Value	714,307,000	552,443,000
Deposits, Fair Value Disclosure	714,307,000	552,443,000
Short-term Debt, Fair Value	238,786,000	227,342,000
Subordinated Debt Obligations, Fair Value Disclosure	$ 207,912,000	$ 177,928,000
Level 2 | Loans Receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Other Assets
Derivative Liability, Type [Extensible Enumeration]	Other Liabilities	Other Liabilities
Level 2 | Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets
Derivative Liability, Type [Extensible Enumeration]	Other Liabilities	Other Liabilities
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	$ 262,000
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment Owned, at Fair Value		$ 7,000,000
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Impaired loans carried at fair value	$ 1,103,000	$ 5,773,000
Other Assets, Fair Value Disclosure	6,783,848,000	6,918,326,000
Loans Receivable, Fair Value Disclosure	6,784,951,000	6,924,099,000
Deposits, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Equity securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment Owned, at Fair Value	$ 499,000	$ 439,000
Fair Value, Inputs, Level 3 [Member] | Loans Receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Other Assets
Derivative Liability, Type [Extensible Enumeration]	Other Liabilities	Other Liabilities
Fair Value, Inputs, Level 3 [Member] | Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets
Derivative Liability, Type [Extensible Enumeration]	Other Liabilities	Other Liabilities
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	$ 0
Estimate of Fair Value Measurement [Member] | Loans Receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Other Assets
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	219,180,000	$ 189,728,000
Investment Owned, at Fair Value	1,754,140,000	1,733,696,000
Mortgages Held-for-sale, Fair Value Disclosure	$ 9,387,000	$ 2,149,000
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Impaired loans carried at fair value	$ 1,103,000	$ 5,773,000
Other Assets, Fair Value Disclosure	6,777,102,000	7,048,544,000
Loans Receivable, Fair Value Disclosure	6,787,925,000	7,056,512,000
Time Deposits, Fair Value	711,660,000	554,445,000
Other Liabilities, Fair Value Disclosure	1,465,000	1,325,000
Deposits, Fair Value Disclosure	713,125,000	555,770,000
Short-term Debt, Fair Value	238,786,000	227,342,000
Subordinated Debt Obligations, Fair Value Disclosure	188,210,000	188,667,000
Reported Value Measurement [Member] | Equity securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment Owned, at Fair Value	$ 2,129,000	$ 1,859,000
Reported Value Measurement [Member] | Loans Receivable [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Other Assets
Derivative Liability, Type [Extensible Enumeration]	Other Liabilities	Other Liabilities
Reported Value Measurement [Member] | Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets
Derivative Liability, Type [Extensible Enumeration]	Other Liabilities	Other Liabilities

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Capital Ratios (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Banking Regulation, Capital Conservation Buffer, Capital Conserved, Minimum	0.0250
Park National Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier One Leverage Capital to Average Assets	0.0834	0.0858
Tier One Risk Based Capital to Risk Weighted Assets	0.1069	0.1105
Common Equity Tier 1	0.1069	0.1105
Capital to Risk Weighted Assets	0.1215	0.1256
Leverage Capital Required For Capital Adequacy To Average Total Assets	0.0400	0.0400
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	0.0600	0.0600
Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum	0.0450	0.0450
Capital Required for Capital Adequacy to Risk Weighted Assets	0.0800	0.0800
Common Equity Tier One Capital Required to be Well-Capitalized	$ 516,562	$ 485,139
Leverage Capital Required To Be Well Capitalized To Average Total Assets	0.0500	0.0500
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	0.0800	0.0800
Capital Required to be Well Capitalized to Risk Weighted Assets	0.1000	0.1000
Capital Required for Capital Adequacy	$ 635,769	$ 597,094
Capital Required to be Well Capitalized	794,711	746,368
Tier One Risk Based Capital	849,886	825,045
Tier One Risk Based Capital Required for Capital Adequacy	476,827	447,821
Tier One Risk Based Capital Required to be Well Capitalized	635,769	597,094
Tier One Leverage Capital	849,886	825,045
Tier One Leverage Capital Required for Capital Adequacy	407,836	384,582
Tier One Leverage Capital Required to be Well Capitalized	509,795	480,728
Common Equity Tier One Capital	849,886	825,045
Common Equity Tier One Capital Required for Capital Adequacy	$ 357,620	$ 335,866
Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Well Capitalized, Minimum	0.0650	0.0650
Banking Regulation, Total Capital, Actual	$ 965,470	$ 937,438
Park
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier One Leverage Capital to Average Assets	0.0990	0.0977
Tier One Risk Based Capital to Risk Weighted Assets	0.1276	0.1257
Common Equity Tier 1	0.1257	0.1237
Capital to Risk Weighted Assets	0.1607	0.1605
Leverage Capital Required For Capital Adequacy To Average Total Assets	0.0400	0.0400
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	0.0600	0.0600
Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum	0.0450	0.0450
Capital Required for Capital Adequacy to Risk Weighted Assets	0.0800	0.0800
Leverage Capital Required For Capital Adequacy plus capital conservation buffer To Average Total Assets	4.00%	4.00%
Tier One Risk Based Capital Required For Capital Adequacy plus capital conservation buffer To Average Total Assets	8.50%	8.50%
Common Equity Tier 1 Capital Required For Capital Adequacy plus capital conservation buffer To Average Total Assets	7.00%	7.00%
Capital Required For Capital Adequacy plus capital conservation buffer To Average Total Assets	10.50%	10.50%
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	0.0600	0.0600
Capital Required to be Well Capitalized to Risk Weighted Assets	0.1000	0.1000
Capital Required for Capital Adequacy	$ 639,102	$ 599,102
Capital Required to be Well Capitalized	798,877	748,878
Tier One Risk Based Capital	1,019,149	941,536
Tier One Risk Based Capital Required for Capital Adequacy	479,326	449,327
Tier One Risk Based Capital Required to be Well Capitalized	479,326	449,327
Tier One Leverage Capital	1,019,149	941,536
Tier One Leverage Capital Required for Capital Adequacy	411,838	385,313
Common Equity Tier One Capital	1,004,149	926,536
Common Equity Tier One Capital Required for Capital Adequacy	359,495	336,995
Banking Regulation, Total Capital, Actual	$ 1,283,409	$ 1,202,225

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Segment Reporting (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	$ 347,059	$ 329,893	$ 327,630
Provision for (recovery of) credit losses	4,557	(11,916)	12,054
Other Income (Loss) and Security Gains	135,935	129,944	125,664
Noninterest Expense	297,978	283,518	286,595
Income taxes	32,108	34,290	26,722
Net Income (Loss) Attributable to Parent	148,351	153,945	127,923
Total assets	9,854,993	9,560,254	9,279,021
Total loans	7,141,891	6,871,122	7,177,785
Total deposits	8,234,715	7,904,528	7,572,358
Depreciation, Amortization and Accretion, Net	13,819	13,267	10,814
Other Noninterest Expense	284,159	270,251	275,781
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	180,459	188,235	154,645
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	1,250	1,250	1,250
Income taxes	0	0	0
Total assets	(3,042)	(1,413)	(1,028)
Total deposits	(299,993)	(254,060)	(250,965)
Depreciation, Amortization and Accretion, Net	0	0	0
Other Noninterest Expense	0	0	0
Operating Segments
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	350,646	328,398	326,375
Income taxes	33,110	37,615	27,125
Total assets	9,815,951	9,538,217	9,236,915
Total deposits	8,534,320	8,157,720	7,820,983
Depreciation, Amortization and Accretion, Net	13,819	13,265	10,803
Other Noninterest Expense	269,851	253,413	258,135
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	(4,837)	245	5
Income taxes	(1,002)	(3,325)	(403)
Total assets	42,084	23,450	43,134
Total deposits	388	868	2,340
Depreciation, Amortization and Accretion, Net	0	2	11
Other Noninterest Expense	14,308	16,838	17,646
Pnb Segment [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	350,646	328,398	326,375
Provision for (recovery of) credit losses	5,834	(8,554)	30,813
Other Income (Loss) and Security Gains	115,211	126,802	124,231
Noninterest Expense	283,670	266,678	268,938
Income taxes	33,110	37,615	27,125
Net Income (Loss) Attributable to Parent	143,243	159,461	123,730
Total assets	9,815,951	9,538,217	9,236,915
Total loans	7,141,362	6,868,935	7,165,840
Total deposits	8,534,320	8,157,720	7,820,983
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	176,353	197,076	150,855
Other Segments [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	(3,587)	1,495	1,255
Provision for (recovery of) credit losses	(1,277)	(3,362)	(18,759)
Other Income (Loss) and Security Gains	20,724	3,142	1,433
Noninterest Expense	14,308	16,840	17,657
Income taxes	(1,002)	(3,325)	(403)
Net Income (Loss) Attributable to Parent	5,108	(5,516)	4,193
Total assets	39,042	22,037	42,106
Total loans	529	2,187	11,945
Total deposits	(299,605)	(253,192)	(248,625)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	$ 4,106	$ (8,841)	$ 3,790

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Parent Company Statements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Parent Company
Income Taxes Paid, Net	$ 2.2	$ 4.3	$ 5.6

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Parent Company Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Other Assets	$ 787,966	$ 737,741
Assets, Total	9,854,993	9,560,254	$ 9,279,021
Subordinated Debt	188,667	188,210
Other Liabilities	135,043	117,971
Total liabilities	8,785,767	8,449,495
Total liabilities and shareholders’ equity	9,854,993	9,560,254
Parent Company
Cash	274,464	243,531	$ 248,814	$ 73,663
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures	941,826	1,020,556
Debentures Receivable From Subsidiary Banks	25,000	25,000
Other Investments	1,177	1,384
Other Assets	36,636	18,852
Assets, Total	1,279,103	1,309,323
Subordinated Debt	188,667	188,210
Accounts Payable, Related Parties	3,625	0
Other Liabilities	17,585	10,354
Total liabilities	209,877	198,564
Stockholders' Equity Attributable to Parent	1,069,226	1,110,759
Total liabilities and shareholders’ equity	$ 1,279,103	$ 1,309,323

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Parent Company Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest and Dividend Income, Operating	$ 378,247	$ 345,853	$ 357,720
Interest Expense	31,188	15,960	30,090
Income taxes	32,108	34,290	26,722
Net Income (Loss) Attributable to Parent	148,351	153,945	127,923
Other Comprehensive Income (Loss), Net of Tax	(117,549)	9,584	15,160
Parent Company
Dividends From Subsidiaries	120,000	115,500	97,000
Interest and Dividend Income, Operating	1,250	1,250	1,250
Other Income	2,478	2,016	98
Revenues	123,728	118,766	98,348
Interest Expense	8,833	8,887	4,311
Other Expenses	10,504	10,707	12,234
Operating Expenses	19,337	19,594	16,545
Income Before Taxes And Equity In Undistributed Losses Of Subsidiaries	104,391	99,172	81,803
Income taxes	(5,142)	(4,897)	(4,390)
Income Before Equity In Undistributed Losses Of Subsidiaries	109,533	104,069	86,193
Equity In Undistributed Losses Of Subsidiaries	(38,818)	(49,876)	(41,730)
Net Income (Loss) Attributable to Parent	148,351	153,945	127,923
Other Comprehensive Income (Loss), Net of Tax	(117,549)	9,584	15,160
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 30,802	$ 163,529	$ 143,083

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Parent Company Statement of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net Income (Loss) Attributable to Parent	$ 148,351	$ 153,945	$ 127,923
Share-based Payment Arrangement, Noncash Expense	7,199	8,021	7,272
Debt and Equity Securities, Unrealized Gain (Loss)	207	(1,218)	245
Increase (Decrease) in Other Operating Assets	4,467	(12,406)	(9,321)
Increase (Decrease) in Other Operating Liabilities	(4,814)	(7,939)	(6,302)
Net cash provided by operating activities	134,862	157,332	111,646
Other investing activities, net	(9,021)	2,332	(2,621)
Net cash used in investing activities	(403,699)	(412,141)	(455,902)
Repayments of Long-term Debt	0	32,500	170,529
Payments Related to Tax Withholding for Share-based Compensation	2,761	2,403	1,002
Net cash (used in) provided by financing activities	239,385	103,515	554,774
Proceeds from Sale of Debt Securities	0	934	312,160
Treasury Stock, Common [Member]
Payments for Repurchase of Equity	0	16,048	7,507
Parent Company
Net Income (Loss) Attributable to Parent	148,351	153,945	127,923
Undistributed Losses Of Subsidiaries	38,818	49,876	41,730
Compensation expense for issuance of treasury shares to directors	1,320	1,676	1,274
Share-based Payment Arrangement, Noncash Expense	5,879	6,345	5,998
Increase (Decrease) in Other Operating Assets	2,514	(8,249)	(6,632)
Increase (Decrease) in Other Operating Liabilities	4,896	(2,407)	(6,325)
Net cash provided by operating activities	119,321	116,714	94,017
Net cash used in investing activities	(9,021)	3,266	(2,621)
Payments of Dividends	76,604	74,306	70,353
Proceeds from Issuance of Long-term Debt	0	0	172,620
Repayments of Long-term Debt	0	(32,500)	(10,000)
Cash Payment For Fractional Shares	2	6	3
Payments Related to Tax Withholding for Share-based Compensation	(2,761)	(2,403)	(1,002)
Net cash (used in) provided by financing activities	(79,367)	(125,263)	83,755
Increase (decrease) in cash and cash equivalents	30,933	(5,283)	175,151
Cash	274,464	243,531	248,814	$ 73,663
Proceeds from Sale of Debt Securities	$ 0	$ 934	$ 0

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Revenue from Contract with Customer (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Personal trust and agency accounts income	$ 10,091	$ 10,264	$ 8,761
Employee benefit and retirement-related accounts income	9,698	9,705	7,921
Investment management and investment advisory agency accounts income	12,442	12,620	10,652
Other income from fiduciary activities	1,860	1,860	1,539
Non-sufficient funds (NSF) fees	6,095	5,244	4,999
Demand deposit account (DDA) charges	3,439	3,074	2,920
Other service charges on deposit accounts	557	514	526
Credit card other service income	2,808	2,563	2,112
HELOC other service income	397	389	424
Installment other service income	163	148	165
Real estate other service income	9,952	24,907	32,889
Commercial other service income	1,975	1,805	2,021
Debit card fee income	26,046	25,865	22,160
Bank Owned Life Insurance Income	6,100	4,897	4,789
ATM Fees	2,273	2,379	1,773
Gains (Losses) on Sales of Other Real Estate	5,611	(4)	1,207
Real Estate Owned, Valuation Allowance, Valuation Increase	12,039	64	105
Debt and Equity Securities, Gain (Loss)			3,286
Gain on equity securities, net	2,955	5,011	2,182
Other components of net periodic benefit income	12,108	8,152	7,952
Noninterest Income, Other	9,326	10,487	7,281
Noninterest Income	135,935	129,944	125,664
Bank Servicing [Member]
Disaggregation of Revenue [Line Items]
Noninterest Income, Other	15,300	29,800	37,600
Within Scope [Domain]
Disaggregation of Revenue [Line Items]
Noninterest Income, Other	5,600	5,300	5,200
Out of Scope [Domain]
Disaggregation of Revenue [Line Items]
Noninterest Income, Other	9,700	24,500	32,400
Pnb Segment [Member]
Disaggregation of Revenue [Line Items]
Personal trust and agency accounts income	10,091	10,264	8,761
Employee benefit and retirement-related accounts income	9,698	9,705	7,921
Investment management and investment advisory agency accounts income	12,442	12,620	10,652
Other income from fiduciary activities	1,860	1,860	1,539
Non-sufficient funds (NSF) fees	6,095	5,244	4,999
Demand deposit account (DDA) charges	3,439	3,074	2,920
Other service charges on deposit accounts	557	514	526
Credit card other service income	2,808	2,559	2,108
HELOC other service income	397	389	424
Installment other service income	163	148	165
Real estate other service income	9,952	24,907	32,827
Commercial other service income	1,214	1,280	1,493
Debit card fee income	26,046	25,865	22,160
Bank Owned Life Insurance Income	4,656	4,202	4,521
ATM Fees	2,273	2,379	1,773
Gains (Losses) on Sales of Other Real Estate	4	(4)	836
Real Estate Owned, Valuation Allowance, Valuation Increase	30	64	105
Debt and Equity Securities, Gain (Loss)			3,286
Gain on equity securities, net	2,068	3,793	2,429
Other components of net periodic benefit income	11,819	7,946	7,759
Noninterest Income, Other	9,599	9,993	7,027
Noninterest Income	115,211	126,802	124,231
Other Segments [Member]
Disaggregation of Revenue [Line Items]
Personal trust and agency accounts income	0	0	0
Employee benefit and retirement-related accounts income	0	0	0
Investment management and investment advisory agency accounts income	0	0	0
Other income from fiduciary activities	0	0	0
Non-sufficient funds (NSF) fees	0	0	0
Demand deposit account (DDA) charges	0	0	0
Other service charges on deposit accounts	0	0	0
Credit card other service income	0	4	4
HELOC other service income	0	0	0
Installment other service income	0	0	0
Real estate other service income	0	0	62
Commercial other service income	761	525	528
Debit card fee income	0	0	0
Bank Owned Life Insurance Income	1,444	695	268
ATM Fees	0	0	0
Gains (Losses) on Sales of Other Real Estate	5,607	0	371
Real Estate Owned, Valuation Allowance, Valuation Increase	12,009	0	0
Debt and Equity Securities, Gain (Loss)			0
Gain on equity securities, net	887	1,218	(247)
Other components of net periodic benefit income	289	206	193
Noninterest Income, Other	(273)	494	254
Noninterest Income	$ 20,724	$ 3,142	$ 1,433

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Subsequent Events (Details) - USD ($) $ in Thousands		12 Months Ended
	Feb. 28, 2023	Dec. 31, 2022
Subsequent Event [Line Items]
Subsequent Event, Description		On February 28, 2023, Park National Bank reached an agreement with the DOJ to increase the efforts of Park National Bank to promote home lending in the Columbus, Ohio market. The agreement, which is reflected in the proposed consent order filed on February 28, 2023, in the U.S. District Court for the Southern District of Ohio (the “DOJ Consent Order”), serves to voluntarily resolve all claims of the U.S. alleging that Park National Bank’s mortgage lending practices within the Columbus, Ohio Metropolitan Statistical Area violated the Fair Housing Act and the Equal Credit Opportunity Act.In accordance with the terms of the DOJ Consent Order, Park National Bank, will invest a minimum of $7.75 million over five years in a loan subsidy fund to increase credit opportunities for home mortgage loans, home improvement loans, home refinance loans and home equity loans and lines of credit for consumers applying for loans in majority-minority census tracts ("MMCTs") in Fairfield, Franklin, Hocking, Licking, Morrow and Perry counties in Ohio (the “Columbus Lending Area”). Park National Bank will also devote a minimum of $500,000 over five years toward one or more community development partnership programs that provide services to residents of MMCTs in the Columbus Lending Area related to credit, financial education, homeownership and foreclosure prevention; and at least $750,000 over five years toward advertising, community outreach, consumer financial education and credit counseling in the Columbus Lending Area. Park National Bank will also establish one new mortgage loan production office and one new full-service branch in MMCTs in the Columbus Lending Area and hire four lenders, one of whom will be Spanish-speaking, focused on serving these communities. In addition, Park National Bank will continue to maintain, throughout the term of the DOJ Consent Order, Park National Bank’s full-time Director of Community Home Lending and Development position, who will oversee Park National Bank’s lending in MMCTs in the Columbus Lending Area.The DOJ Consent Order must be approved by the U.S. District Court for the Southern District of Ohio, Western Division, and once approved and entered by that Court, the DOJ Consent Order will resolve all claims by the U.S. against Park National Bank.Park is committed to investing at least $9.0 million over five years and will record the related expenses incurred in the period in which the associated activities occur.
PRK Loan Subsidy investment		$ 7,750
PRK Community Development Committment		500
Advertising Outreach and Investment Commitment		750
Investment Commitment		$ 9,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Subsequent Event, Date	Feb. 28, 2023

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Label	Element	Value
Payment for Debt Extinguishment or Debt Prepayment Cost	us-gaap_PaymentsOfDebtExtinguishmentCosts	$ 1,800,000
Payment for Debt Extinguishment or Debt Prepayment Cost	us-gaap_PaymentsOfDebtExtinguishmentCosts	$ 8,700,000