Mortgage Loans Held for Sale

6 Months Ended

Jun. 30, 2023

Receivable, Held-for-Sale [Abstract]

Mortgage Loans Held For Sale

Loans Held For Sale

Mortgage loans held for sale are carried at their fair value. At June 30, 2023 and December 31, 2022, respectively, Park had $3.5 million and $2.1 million in mortgage loans held for sale. These amounts are included in loans on the Consolidated Condensed Balance Sheets and in the residential real estate loan portfolio segment in Note 5 - Loans, and Note 6 - Allowance for Credit Losses. The contractual balance was $3.4 million and $2.1 million at June 30, 2023 and December 31, 2022, respectively. The gain expected upon sale was $52,000 and $41,000 at June 30, 2023 and December 31, 2022, respectively. None of these loans were 90 days or more past due or on nonaccrual status at June 30, 2023 or December 31, 2022.

During the three months ended June 30, 2022, Park transferred certain commercial loans held for investment 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 loan was moved to the held for sale portfolio.