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Loans
 3 Months Ended
Mar. 31, 2022
Loans and Leases Receivable Disclosure [Abstract]  
Loans Loans
 
The composition of the loan portfolio at March 31, 2023 and December 31, 2022 was as follows:
 
March 31, 2023December 31, 2022
(In thousands)Amortized CostAmortized Cost
Commercial, financial and agricultural: (1)
Commercial, financial and agricultural (1)
$1,256,705 $1,295,238 
PPP loans3,445 4,206 
Overdrafts1,831 1,489 
Commercial real estate (1)
1,800,878 1,794,054 
Construction real estate:  
Commercial173,668 208,982 
Retail117,075 116,433 
Residential real estate:  
Commercial562,759 550,183 
Mortgage1,089,772 1,075,446 
HELOC164,656 167,151 
Installment3,987 4,091 
Consumer:
Consumer1,898,398 1,902,557 
GFSC140 274 
Check loans2,071 2,150 
Leases18,472 19,637 
Total$7,093,857 $7,141,891 
Allowance for credit losses(85,946)(85,379)
Net loans$7,007,911 $7,056,512 
(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 making and retaining these loans, Park received an aggregate of $33.1 million in fees from the SBA. During the three months ended March 31, 2023 and March 31, 2022, $17,400 and $1.5 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 $17.7 million at March 31, 2023, and of $18.2 million at December 31, 2022, which represented a net deferred income position in both years. At March 31, 2023 and December 31, 2022, included in the net deferred origination fees, costs and unearned income were $51,000 and $68,000, respectively, in net origination fees related to PPP loans. At March 31, 2023 and December 31, 2022, loans included purchase accounting adjustments of $2.3 million and $2.5 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 $1.8 million and $1.5 million were reclassified to loans at March 31, 2023 and December 31, 2022, respectively.
Credit Quality
Among other things, the adoption of ASU 2022-02 on January 1, 2023 eliminated the concept of TDRs. After the adoption of ASU 2022-02 on January 1, 2023, nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing. Prior to the adoption of ASU 2022-02, nonperforming loans consisted of nonaccrual loans, accruing TDRs and loans past due 90 days or more and still accruing.

The following table presents the amortized cost of nonaccrual loans and loans past due 90 days or more and still accruing, by class of loan, at March 31, 2023.
 
 March 31, 2023
(In thousands)Nonaccrual
Loans		Loans Past Due
90 Days
 or More
and Accruing		Total
Nonperforming
Loans
Commercial, financial and agricultural:
Commercial, financial and agricultural$39,054 $— $39,054 
PPP loans— 294 294 
Overdrafts— — — 
Commercial real estate15,476 — 15,476 
Construction real estate:   
Commercial1,997 — 1,997 
Retail— — — 
Residential real estate:   
Commercial2,338 — 2,338 
Mortgage10,888 291 11,179 
HELOC1,145 16 1,161 
Installment47 — 47 
Consumer:
Consumer1,545 634 2,179 
GFSC7 1 8 
Check loans— — — 
Leases617 15 632 
Total loans$73,114 $1,251 $74,365 
 
The following table presents the amortized cost of nonaccrual loans, accruing TDRs, and loans past due 90 days or more and still accruing, by class of loan, at December 31, 2022:

 December 31, 2022
(In thousands)Nonaccrual
Loans		Accruing
TDRs		Loans Past Due 90 Days or More and AccruingTotal
Nonperforming
Loans
Commercial, financial and agricultural
Commercial, financial and agricultural$38,158 $3,261 $— $41,419 
PPP loans— — 389 389 
Overdrafts— — — — 
Commercial real estate24,504 7,919 — 32,423 
Construction real estate:   
Commercial1,712 — — 1,712 
Retail1,254 12 — 1,266 
Residential real estate:    
Commercial1,894 298 — 2,192 
Mortgage9,260 6,750 182 16,192 
HELOC1,133 187 7 1,327 
Installment51 1,037 — 1,088 
Consumer
Consumer1,012 670 703 2,385 
GFSC10 — — 10 
Check loans— — — — 
Leases708 — — 708 
Total loans$79,696 $20,134 $1,281 $101,111 
The following tables provide additional detail on nonaccrual loans and the related ACL, by class of loan, at March 31, 2023 and December 31, 2022:

March 31, 2023
(In thousands)Nonaccrual Loans With No ACLNonaccrual Loans With an ACLRelated ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural$29,007 $10,047 $4,112 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate12,730 2,746 215 
Construction real estate:
Commercial1,997 — — 
Retail— — — 
Residential real estate:
Commercial2,338 — — 
Mortgage— 10,888 105 
HELOC— 1,145 175 
Installment— 47 18 
Consumer
Consumer— 1,545 364 
GFSC— 7 1 
Check loans— — — 
Leases593 24 2 
Total loans$46,665 $26,449 $4,992 
December 31, 2022
(In thousands)Nonaccrual Loans With No ACLNonaccrual Loans With an ACLRelated ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural$28,291 $9,867 $3,440 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate22,965 1,539 130 
Construction real estate:— 
Commercial1,712 — — 
Retail— 1,254 19 
Residential real estate:— 
Commercial1,894 — — 
Mortgage— 9,260 85 
HELOC— 1,133 191 
Installment— 51 17 
Consumer
Consumer— 1,012 283 
GFSC— 10 1 
Check loans— — — 
Leases680 28 9 
Total$55,542 $24,154 $4,175 

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

The following tables provide the amortized cost basis of collateral-dependent loans by class of loan, as of March 31, 2023 and December 31, 2022:

 March 31, 2023
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$8,541 $7,364 $23,133 $39,038 
Commercial real estate18,782 155 — 18,937 
Construction real estate:
Commercial2,648 — — 2,648 
Residential real estate:
Commercial2,613 — — 2,613 
Mortgage86 — — 86 
Leases— 617 — 617 
Total loans$32,670 $8,136 $23,133 $63,939 
 December 31, 2022
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$8,242 $7,788 $23,125 $39,155 
Commercial real estate35,908 28 — 35,936 
Construction real estate:
Commercial2,372 — — 2,372 
Residential real estate:
Commercial2,479 — — 2,479 
Mortgage90 — — 90 
Leases— 708 — 708 
Total loans$49,091 $8,524 $23,125 $80,740 

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 three-month periods ended March 31, 2023 and 2022:

Interest Income Recognized
(In thousands)Three Months Ended
March 31, 2023		Three Months Ended
March 31, 2022
Commercial, financial and agricultural:
Commercial, financial and agricultural$605 $17 
PPP loans— — 
Overdrafts— — 
Commercial real estate160 257 
Construction real estate:
Commercial32 1 
Retail— 4 
Residential real estate:
Commercial26 20 
Mortgage49 33 
HELOC8 4 
Installment1 2 
Consumer:
Consumer19 14 
GFSC— 2 
Check loans— — 
Leases— 14 
Total loans$900 $368 
The following tables present the aging of the amortized cost in past due loans at March 31, 2023 and December 31, 2022 by class of loan:

 March 31, 2023
(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$2,732 $31,450 $34,182 $1,222,523 $1,256,705 
PPP loans— 294 294 3,151 3,445 
Overdrafts— — — 1,831 1,831 
Commercial real estate390 2,478 2,868 1,798,010 1,800,878 
Construction real estate:
Commercial— — — 173,668 173,668 
Retail50 — 50 117,025 117,075 
Residential real estate:
Commercial18 328 346 562,413 562,759 
Mortgage4,439 5,362 9,801 1,079,971 1,089,772 
HELOC418 745 1,163 163,493 164,656 
Installment11 — 11 3,976 3,987 
Consumer:
Consumer4,593 878 5,471 1,892,927 1,898,398 
GFSC26 2 28 112 140 
Check loans1 — 1 2,070 2,071 
Leases98 15 113 18,359 18,472 
Total loans$12,776 $41,552 $54,328 $7,039,529 $7,093,857 
(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 $32.8 million of nonaccrual loans which were current in regards to contractual principal and interest payments.
 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 loans155 389 544 3,662 4,206 
Overdrafts— — — 1,489 1,489 
Commercial real estate737 4,738 5,475 1,788,579 1,794,054 
Construction real estate:
Commercial751 — 751 208,231 208,982 
Retail1,035 523 1,558 114,875 116,433 
Residential real estate:
Commercial519 477 996 549,187 550,183 
Mortgage7,630 5,157 12,787 1,062,659 1,075,446 
HELOC832 587 1,419 165,732 167,151 
Installment57 4 61 4,030 4,091 
Consumer
Consumer5,451 964 6,415 1,896,142 1,902,557 
GFSC48 — 48 226 274 
Check loans2 — 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.

Credit Quality Indicators
Management utilizes past due information as a credit quality indicator across the loan portfolio. Past due information at March 31, 2023 and December 31, 2022 is included in the previous tables. The past due information is the primary credit quality indicator within the following classes of loans: (1) overdrafts in the commercial, financial and agricultural portfolio segment; (2) retail loans in the construction real estate portfolio segment; (3) mortgage loans, HELOC and installment loans in the residential real estate portfolio segment; and (4) consumer loans, GFSC loans, and check loans in the consumer portfolio segment. The primary credit indicator for commercial loans is based on an internal grading system that grades all commercial loans on a scale from 1 to 8. Credit grades are continuously monitored by the responsible loan officer and adjustments are made when appropriate. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans that are pass-rated (graded a 1 through a 4) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher PD is applied to these loans. Loans classified as special mention have potential weaknesses that require management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of Park’s credit position at some future date. Commercial loans graded a 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher PD is applied to these loans. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or the value of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Park will sustain some loss if the deficiencies are not corrected. Commercial loans graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Certain 6-rated loans and all 7-rated loans are placed on nonaccrual status and included within the individually evaluated category. A commercial loan is deemed nonaccrual, and is individually evaluated, when management
determines the borrower's ability to perform in accordance with the contractual loan agreement is in doubt. Any commercial loan graded an 8 (loss) is completely charged off.

Based on the then most recent analysis performed, the risk category of commercial loans by class of loans as of March 31, 2023 and December 31, 2022 were as follows:

March 31, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass$36,402 $191,499 $186,796 $134,697 $54,571 $72,782 $501,803 $1,178,550 
Special Mention38 1,037 657 965 267 87 33,982 37,033 
Substandard19 254 126 2,777 122 1,718 26,511 31,527 
Doubtful— 786 — — 150 8,568 91 9,595 
Total $36,459 $193,576 $187,579 $138,439 $55,110 $83,155 $562,387 $1,256,705 
Current period gross write offs$— $— $— $— $— $52 $— $52 
Commercial, financial and agricultural: PPP
Risk rating
Pass$— $— $1,342 $2,103 $— $— $— $3,445 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total$— $— $1,342 $2,103 $— $— $— $3,445 
Current period gross write offs$— $— $— $— $— $— $— $— 
Commercial real estate (1)
Risk rating
Pass$66,791 $318,942 $369,914 $362,128 $217,432 $390,197 $14,372 $1,739,776 
Special Mention— 197 4,859 3,845 743 35,851 96 45,591 
Substandard— 918 1,585 1,753 2,692 6,879 335 14,162 
Doubtful— — 81 740 130 398 — 1,349 
Total$66,791 $320,057 $376,439 $368,466 $220,997 $433,325 $14,803 $1,800,878 
Current period gross write offs$— $— $— $— $— $— $— $— 
Construction real estate: Commercial
Risk rating
Pass$17,938 $98,767 $17,350 $20,875 $2,388 $4,091 $9,383 $170,792 
Special Mention— — — 228 — — — 228 
Substandard988 647 105 257 — 651 — 2,648 
Doubtful— — — — — — — — 
Total$18,926 $99,414 $17,455 $21,360 $2,388 $4,742 $9,383 $173,668 
Current period gross write offs$— $— $— $— $— $— $— $— 
March 31, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Residential Real Estate: Commercial
Risk rating
Pass$24,461 $115,770 $115,043 $136,483 $54,408 $91,876 $18,062 $556,103 
Special Mention— 343 563 1,674 423 1,018 — 4,021 
Substandard56 597 350 260 38 995 339 2,635 
Doubtful— — — — — — — — 
Total$24,517 $116,710 $115,956 $138,417 $54,869 $93,889 $18,401 $562,759 
Current period gross write offs$— $— $— $— $— $— $— $— 
Leases
Risk rating
Pass$1,205 $6,618 $3,007 $2,939 $864 $1,304 $— $15,937 
Special Mention413 857 526 85 37 — — 1,918 
Substandard— — — 412 157 24 — 593 
Doubtful— — — — 24 — — 24 
Total$1,618 $7,475 $3,533 $3,436 $1,082 $1,328 $— $18,472 
Current period gross write offs$— $— $— $— $— $— $— $— 
Total Commercial Loans
Risk rating
Pass$146,797 $731,596 $693,452 $659,225 $329,663 $560,250 $543,620 $3,664,603 
Special Mention451 2,434 6,605 6,797 1,470 36,956 34,078 88,791 
Substandard1,063 2,416 2,166 5,459 3,009 10,267 27,185 51,565 
Doubtful— 786 81 740 304 8,966 91 10,968 
Total$148,311 $737,232 $702,304 $672,221 $334,446 $616,439 $604,974 $3,815,927 
Current period gross write offs$— $— $— $— $— $52 $— $52 
(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, 2022Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass$197,497 $198,999 $142,487 $60,845 $32,887 $47,135 $546,237 $1,226,087 
Special Mention700 313 918 315 4 35 25,536 27,821 
Substandard1,101 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 Mention199 3,256 3,388 5,863 16,059 22,220 150 51,135 
Substandard7,856 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 
Substandard652 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 
Substandard610 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 
December 31, 2022Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisTotal
Leases
Risk rating
Pass$7,629 $3,310 $3,347 $1,167 $981 $605 $— $17,039 
Special Mention1,085 614 130 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 
Total Commercial Loans
Risk rating
Pass$743,423 $739,784 $690,176 $341,750 $175,903 $419,793 $604,663 $3,715,492 
Special Mention1,984 4,275 6,145 6,678 16,063 23,880 25,686 84,711 
Substandard10,219 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.

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. As previously mentioned, the adoption of ASU 2022-02 on January 1, 2023 eliminated the concept of TDRs. After the adoption of ASU 2022-02 on January 1, 2023, nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing. Prior to the adoption of ASU 2022-02, nonperforming loans consisted of nonaccrual loans, accruing TDRs and loans past due 90 days or more and still accruing.

March 31, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Overdrafts
Performing$1,831 $— $— $— $— $— $— $1,831 
Nonperforming
— — — — — — — — 
Total $1,831 $— $— $— $— $— $— $1,831 
Current period gross write offs$297 $— $— $— $— $— $— $297 
Construction Real Estate: Retail
Performing$6,050 $79,178 $17,718 $5,986 $4,121 $3,948 $74 $117,075 
Nonperforming
— — — — — — — — 
Total $6,050 $79,178 $17,718 $5,986 $4,121 $3,948 $74 $117,075 
Current period gross write offs$— $— $— $— $— $— $— $— 
March 31, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Residential Real Estate: Mortgage
Performing$29,761 $208,136 $229,318 $189,929 $87,938 $333,511 $— $1,078,593 
Nonperforming
— 835 597 939 549 8,259 — 11,179 
Total $29,761 $208,971 $229,915 $190,868 $88,487 $341,770 $— $1,089,772 
Current period gross write offs$— $— $— $— $— $20 $— $20 
Residential Real Estate: HELOC
Performing$— $140 $299 $71 $137 $2,120 $160,728 $163,495 
Nonperforming
— — — — 99 787 275 1,161 
Total $— $140 $299 $71 $236 $2,907 $161,003 $164,656 
Current period gross write offs$— $— $— $— $— $9 $— $9 
Residential Real Estate: Installment
Performing$74 $180 $— $7 $213 $3,466 $— $3,940 
Nonperforming
— — — — — 47 — 47 
Total $74 $180 $— $7 $213 $3,513 $— $3,987 
Current period gross write offs$— $— $— $— $— $— $— $— 
Consumer: Consumer
Performing$146,771 $778,177 $422,523 $299,815 $129,981 $109,603 $9,349 $1,896,219 
Nonperforming— 660 459 314 250 496 — 2,179 
Total $146,771 $778,837 $422,982 $300,129 $130,231 $110,099 $9,349 $1,898,398 
Current period gross write offs$8 $600 $588 $314 $195 $142 $— $1,847 
Consumer: GFSC
Performing$— $— $— $30 $40 $21 $41 $132 
Nonperforming— — — — 8 — — 8 
Total $— $— $— $30 $48 $21 $41 $140 
Current period gross write offs$— $— $— $— $— $— $— $— 
Consumer: Check loans
Performing$— $— $— $— $— $— $2,071 $2,071 
Nonperforming
— — — — — — — — 
Total $— $— $— $— $— $— $2,071 $2,071 
Current period gross write offs$— $— $— $— $— $— $10 $10 
Total Consumer Loans
Performing$184,487 $1,065,811 $669,858 $495,838 $222,430 $452,669 $172,263 $3,263,356 
Nonperforming
— 1,495 1,056 1,253 906 9,589 275 14,574 
Total $184,487 $1,067,306 $670,914 $497,091 $223,336 $462,258 $172,538 $3,277,930 
Current period gross write offs$305 $600 $588 $314 $195 $171 $10 $2,183 
December 31, 2022Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisTotal
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 
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 
Loans and Leases Acquired with Deteriorated Credit Quality
In conjunction with the NewDominion acquisition, Park acquired loans with a book value of $277.9 million as of the July 1, 2018 acquisition date. These loans were recorded at the initial fair value of $272.8 million. Loans acquired with deteriorated credit quality (ASC 310-30) with a book value of $5.1 million were recorded at the initial fair value of $4.9 million. In conjunction with the Carolina Alliance acquisition, Park acquired loans and leases with a book value of $589.7 million as of the April 1, 2019 acquisition date. These loans and leases were recorded at the initial fair value of $578.6 million. Loans and leases acquired with deteriorated credit quality (ASC 310-30) with a book value of $19.9 million were recorded at the initial fair value of $18.4 million.

Upon adoption of CECL on January 1, 2021, $52,000 of the credit discount on PCD loans was reclassified to the allowance for credit losses. PCD loans are individually evaluated on a quarterly basis to determine if a specific reserve is necessary. At March 31, 2023 and December 31, 2022, there was no allowance for credit losses on PCD loans. The carrying amount of loans acquired with deteriorated credit quality at March 31, 2023 and December 31, 2022 was $4.6 million and $4.7 million, respectively.

Modifications to Borrowers Experiencing Financial Difficulty
Management identifies loans as modifications to borrowers experiencing financial difficulty when a borrower is experiencing financial difficulties and Park has altered the cash flow of the the loan 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. Park modifies loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate adjustments.

In some cases, Park provides multiple types of modifications on one loan. Typically, one type of modification, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another modification, such as principal forgiveness, may be granted. For the loans included in the combination columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay and/or an interest rate adjustment.

The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. As a result, the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses and a change to the allowance for credit losses is generally not recorded upon modification. When principal forgiveness is provided, the amount of forgiveness is charged off against the allowance for credit losses.
The following table presents the amortized cost basis of loans at March 31, 2023 that were both experiencing financial difficulty and modified during the three months ended March 31, 2023 by class of and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below.

March 31, 2023
(In thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension and Interest Rate AdjustmentTotalPercent of Total Class of Financing Receivable
Commercial, financial and agricultural:
Commercial, financial and agricultural $— $— $3,104 $— $— $3,104 0.25 %
PPP loans— — — — — — — %
Overdrafts— — — — — — — %
Commercial real estate — — — — — — — %
Construction real estate:
Commercial— — 988 — — 988 0.57 %
Retail— — — — — — — %
Residential real estate:
Commercial— — 150 — 13 163 0.03 %
Mortgage— — — — — — — %
HELOC— — — — — — — %
Installment— — — — 64 64 1.61 %
Consumer:
Consumer— — — 15 — 15 — %
GFSC— — — — — — — %
Check loans— — — — — — — %
Leases— — — — — — — %
Total$— $— $4,242 $15 $77 $4,334 0.06 %
Park has committed to lend additional amounts totaling $1.7 million to the borrowers included in the previous table as of March 31, 2023.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2023:

Principal ForgivenessWeighted Average Interest Rate AdjustmentWeighted Average Term Extension (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural$— — %0.3
PPP loans— — %0.0
Overdrafts— — %0.0
Commercial real estate— — %0.0
Construction real estate:
Commercial— — %0.2
Retail— — %0.0
Residential real estate:
Commercial— 1.43 %0.5
Mortgage— — %0.0
HELOC— — %0.0
Installment— (1.13)%10.0
Consumer:
Consumer— (4.19)%0.0
GFSC— — %0.0
Check loans— — %0.0
Leases— — %0.0
Total$— (1.26)%0.4

Park closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. There were no loans modified to borrowers experiencing financial difficulty that had been modified during the three months ended March 31, 2023 that were greater than 30 days past due as of March 31, 2023. Additionally, there were no loans that had a payment default during the three months ended March 31, 2023 and were modified to borrowers experiencing financial difficulty in the three months prior to that default.

Upon the determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amounts.