Foreclosed and Repossessed Assets

12 Months Ended

Dec. 31, 2022

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.