XML 27 R16.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Loans
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Loans and Leases Receivable Disclosure [Abstract]    
Loans
The following tables present the amortized cost basis of loans at March 31, 2024 and 2023 that were both experiencing financial difficulty and modified during the three months ended March 31, 2024 and 2023 by class and 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.

Three Months Ended
March 31, 2024
(Dollars in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionOtherTotalPercent of Total Class of Financing Receivable
Commercial, financial and agricultural:
Commercial, financial and agricultural $— $54 $12,144 $2 $— $— $12,200 0.96 %
PPP loans— — — — — — — — %
Overdrafts— — — — — — — — %
Commercial real estate — 161 4,522 344 122 — 5,149 0.27 %
Construction real estate:
Commercial— — — — — — — — %
Retail— — — — — — — — %
Residential real estate:
Commercial— — 438 — 220 — 658 0.11 %
Mortgage— — 48 — — — 48 — %
HELOC— — — — — — — — %
Installment— — 57 — — — 57 0.95 %
Consumer:
Consumer— — — 8 — — 8 — %
Check loans— — — — — — — — %
Leases— — — — — — — — %
Total$— $215 $17,209 $354 $342 $— $18,120 0.24 %
Three Months Ended
March 31, 2023
(Dollars in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionOtherTotalPercent of Total Class of Financing Receivable
Commercial, financial and agricultural:
Commercial, financial and agricultural $— $— $3,104 $— $— $— $3,104 0.25 %
PPP loans— — — — — — — — %
Overdrafts— — — — — — — — %
Commercial real estate — — — — — — — — %
Construction real estate:
Commercial— — 988 — — — 988 0.57 %
Retail— — — — — — — — %
Residential real estate:
Commercial— — 163 — — — 163 0.03 %
Mortgage— — — — — — — — %
HELOC— — — — — — — — %
Installment— — — — 64 — 64 1.61 %
Consumer:
Consumer— — — 15 — — 15 — %
Check loans— — — — — — — — %
Leases— — — — — — — — %
Total$— $— $4,255 $15 $64 $— $4,334 0.06 %
Park had commitments to lend $1.4 million related to to loans which were both experiencing financial difficulty and modified during the three months ended March 31, 2024.
The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2024 and 2023:

Three Months Ended
March 31, 2024
(Dollars in thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (years)Weighted Average Payment Delay (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural$— (0.50)%0.30.4
PPP loans— — %0.00.0
Overdrafts— — %0.00.0
Commercial real estate— (1.90)%3.00.4
Construction real estate:
Commercial— — %0.00.0
Retail— — %0.00.0
Residential real estate:
Commercial— (1.00)%3.00.0
Mortgage— — %7.80.0
HELOC— — %0.00.0
Installment— — %7.80.0
Consumer:
Consumer— (7.54)%0.00.0
Check loans— — %0.00.0
Leases— — %0.00.0
Total$— (1.68)%1.20.4
Three Months Ended
March 31, 2023
(Dollars in thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural$— — %0.3
PPP loans— — %0.0
Overdrafts— — %0.0
Commercial real estate— — %0.0
Construction real estate:
Commercial— — %0.2
Retail— — %0.0
Residential real estate:
Commercial— — %0.5
Mortgage— — %0.0
HELOC— — %0.0
Installment— (1.13)%10.0
Consumer:
Consumer— (4.19)%0.0
Check loans— — %0.0
Leases— — %0.0
Total$— (1.69)%0.4

Park closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of Park's modification efforts. There were $3.5 million in loans modified to borrowers experiencing financial difficulty that had been modified during the twelve months ended March 31, 2024 that were 60-89 days past due as of March 31, 2024 in the Commercial, financial, and agricultural loan portfolio segment. There were $9,000 in loans modified to borrowers experiencing financial difficulty that had been modified during the previous twelve months that were 30-59 days past due as of March 31, 2024 in the Commercial, financial, and agricultural loan portfolio segment. All other loans modified to borrowers experiencing financial difficulty during the twelve months ended March 31, 2024 were less than 30 days past due as of March 31, 2024. 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.
The following table presents the amortized cost basis of loans that had a payment default subsequent to modification during the three months ended March 31, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. For this table, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms:

Three Months Ended
March 31, 2024
Term ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionOther
Commercial, financial and agricultural:
Commercial, financial and agricultural$3,507 $— $— $9 
PPP loans— — — — 
Overdrafts— — — — 
Commercial real estate— — — — 
Construction real estate:
Commercial— — — — 
Retail— — — — 
Residential real estate:— — — 
Commercial— — — — 
Mortgage— — — — 
HELOC— — — — 
Installment19 — — — 
Consumer:
Consumer— — — — 
Check loans— — — — 
Leases— — — — 
Total loans$3,526 $— $— $9 
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 charged-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.
 Loans
 
The composition of the loan portfolio at March 31, 2024 and at December 31, 2023 was as follows:
 
March 31, 2024December 31, 2023
(In thousands)Amortized CostAmortized Cost
Commercial, financial and agricultural: (1)
Commercial, financial and agricultural (1)
$1,273,035 $1,292,025 
PPP loans1,800 2,116 
Overdrafts1,635 1,499 
Commercial real estate (1)
1,900,968 1,875,993 
Construction real estate:  
Commercial238,721 209,226 
Retail103,118 95,873 
Residential real estate:  
Commercial617,002 609,410 
Mortgage1,251,340 1,239,861 
HELOC177,017 174,349 
Installment6,005 5,904 
Consumer:
Consumer1,923,867 1,943,869 
Check loans1,900 2,067 
Leases28,597 24,029 
Total$7,525,005 $7,476,221 
Allowance for credit losses(85,084)(83,745)
Net loans$7,439,921 $7,392,476 
(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.

Loans are shown net of deferred origination fees, costs and unearned income of $20.3 million at March 31, 2024, and of $19.8 million at December 31, 2023, which represented a net deferred income position at both dates. At March 31, 2024 and December 31, 2023, loans included purchase accounting adjustments of $1.5 million and $1.8 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 $1.6 million and $1.5 million were reclassified to loans at March 31, 2024 and at December 31, 2023, respectively.
Credit Quality
Nonperforming loans consist of nonaccrual loans and loans past due 90 days or more and still accruing.

The following tables present the amortized cost of nonaccrual loans and loans past due 90 days or more and still accruing, by class of loan, at March 31, 2024 and December 31, 2023.
 
 March 31, 2024
(In thousands)Nonaccrual
Loans		Loans Past Due
90 Days
 or More
and Accruing		Total
Nonperforming
Loans
Commercial, financial and agricultural:
Commercial, financial and agricultural$26,989 $— $26,989 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate21,968 — 21,968 
Construction real estate:   
Commercial1,949 — 1,949 
Retail148 251 399 
Residential real estate:   
Commercial3,833 — 3,833 
Mortgage12,233 586 12,819 
HELOC784 26 810 
Installment17 — 17 
Consumer:
Consumer2,213 707 2,920 
Check loans— — — 
Leases55 — 55 
Total loans$70,189 $1,570 $71,759 
 
 December 31, 2023
(In thousands)Nonaccrual
Loans		Loans Past Due 90 Days or More and AccruingTotal
Nonperforming
Loans
Commercial, financial and agricultural
Commercial, financial and agricultural$21,284 $14 $21,298 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate20,740 — 20,740 
Construction real estate:  
Commercial504 — 504 
Retail— 26 26 
Residential real estate:   
Commercial2,670 — 2,670 
Mortgage11,786 206 11,992 
HELOC815 — 815 
Installment16 — 16 
Consumer
Consumer2,371 613 2,984 
Check loans— — — 
Leases73 — 73 
Total loans$60,259 $859 $61,118 
The following tables provide additional detail on nonaccrual loans and the related ACL, by class of loan, at March 31, 2024 and December 31, 2023:

March 31, 2024
(In thousands)Nonaccrual Loans With No ACLNonaccrual Loans With an ACLRelated ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural$15,492 $11,497 $5,000 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate21,078 890 35 
Construction real estate:
Commercial1,949 — — 
Retail— 148 148 
Residential real estate:
Commercial3,833 — — 
Mortgage— 12,233 126 
HELOC— 784 25 
Installment— 17 1 
Consumer
Consumer— 2,213 583 
Check loans— — — 
Leases55 — — 
Total loans$42,407 $27,782 $5,918 
December 31, 2023
(In thousands)Nonaccrual Loans With No ACLNonaccrual Loans With an ACLRelated ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural$8,634 $12,650 $4,985 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate20,175 565 2 
Construction real estate:
Commercial504 — — 
Retail— — — 
Residential real estate:
Commercial2,670 — — 
Mortgage— 11,786 117 
HELOC— 815 25 
Installment— 16 — 
Consumer
Consumer— 2,371 672 
Check loans— — — 
Leases73 — — 
Total$32,056 $28,203 $5,801 

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, at March 31, 2024 and at December 31, 2023:

 March 31, 2024
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$8,319 $9,867 $8,766 $26,952 
Commercial real estate22,968 512 — 23,480 
Construction real estate:
Commercial2,564 — — 2,564 
Residential real estate:
Commercial4,062 — — 4,062 
Mortgage83 — — 83 
Leases— 55 — 55 
Total loans$37,996 $10,434 $8,766 $57,196 
 December 31, 2023
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$8,137 $9,377 $3,737 $21,251 
Commercial real estate22,096 514 — 22,610 
Construction real estate:
Commercial1,130 — — 1,130 
Residential real estate:
Commercial2,910 — — 2,910 
Mortgage76 — — 76 
Leases— 73 — 73 
Total loans$34,349 $9,964 $3,737 $48,050 

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, 2024 and 2023:

Interest Income Recognized
(In thousands)Three Months Ended
March 31, 2024		Three Months Ended
March 31, 2023
Commercial, financial and agricultural:
Commercial, financial and agricultural$264 $605 
PPP loans— — 
Overdrafts— — 
Commercial real estate255 160 
Construction real estate:
Commercial37 32 
Retail— — 
Residential real estate:
Commercial48 26 
Mortgage70 49 
HELOC5 8 
Installment— 1 
Consumer:
Consumer31 19 
Check loans— — 
Leases— — 
Total loans$710 $900 
The following tables present the aging of the amortized cost in past due loans at March 31, 2024 and at December 31, 2023 by class of loan:

 March 31, 2024
(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$3,927 $11,334 $15,261 $1,257,774 $1,273,035 
PPP loans2 — 2 1,798 1,800 
Overdrafts— — — 1,635 1,635 
Commercial real estate125 1,559 1,684 1,899,284 1,900,968 
Construction real estate:
Commercial— — — 238,721 238,721 
Retail26 399 425 102,693 103,118 
Residential real estate:
Commercial12 219 231 616,771 617,002 
Mortgage7,847 6,025 13,872 1,237,468 1,251,340 
HELOC571 609 1,180 175,837 177,017 
Installment— 3 3 6,002 6,005 
Consumer:
Consumer7,510 1,079 8,589 1,915,278 1,923,867 
Check loans3 — 3 1,897 1,900 
Leases— — — 28,597 28,597 
Total loans$20,023 $21,227 $41,250 $7,483,755 $7,525,005 
(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 $50.5 million of nonaccrual loans which were current with respect to contractual principal and interest payments.
 December 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$522 $11,629 $12,151 $1,279,874 $1,292,025 
PPP loans9 — 9 2,107 2,116 
Overdrafts— — — 1,499 1,499 
Commercial real estate1,656 1,839 3,495 1,872,498 1,875,993 
Construction real estate:
Commercial— 205 205 209,021 209,226 
Retail554 26 580 95,293 95,873 
Residential real estate:
Commercial295 219 514 608,896 609,410 
Mortgage9,831 6,450 16,281 1,223,580 1,239,861 
HELOC788 611 1,399 172,950 174,349 
Installment52 — 52 5,852 5,904 
Consumer
Consumer8,974 1,183 10,157 1,933,712 1,943,869 
Check loans5 — 5 2,062 2,067 
Leases— — — 24,029 24,029 
Total loans$22,686 $22,162 $44,848 $7,431,373 $7,476,221 
(1) Includes an aggregate of $0.9 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.
(2) Includes an aggregate of $39.0 million of nonaccrual loans which were current with respect 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, 2024 and December 31, 2023 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 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 weaknesses 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 an individual reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Certain 6-rated loans and all 7-rated loans are placed on nonaccrual status and included within the individually evaluated category. A commercial loan is deemed nonaccrual, and is individually evaluated, when management determines the borrower's ability to perform in accordance with the contractual loan agreement is in doubt. Any commercial loan graded an 8 (loss) is completely charged off.
Based on the most recent analysis performed, the risk category of commercial loans by class of loans at March 31, 2024 and at December 31, 2023 are detailed in the tables below. Also included in the tables detailing loan balances are gross charge offs for the three months ended March 31, 2024 and for the year ended December 31, 2023.

March 31, 2024Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass$47,722 $190,793 $139,203 $106,098 $86,410 $76,150 $583,652 $1,230,028 
Special Mention786 1,017 2,744 285 626 75 10,423 15,956 
Substandard48 350 456 1,096 2,085 668 9,615 14,318 
Doubtful— — 441 35 1,810 7,964 2,483 12,733 
Total $48,556 $192,160 $142,844 $107,514 $90,931 $84,857 $606,173 $1,273,035 
Current period gross charge-offs$— $— $— $5 $— $— $— $5 
Commercial, financial and agricultural: PPP
Risk rating
Pass$— $— $— $823 $977 $— $— $1,800 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total$— $— $— $823 $977 $— $— $1,800 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate (1)
Risk rating
Pass$87,302 $274,310 $314,750 $323,474 $294,762 $530,032 $20,595 $1,845,225 
Special Mention1,088 2,005 3,494 6,515 6,435 12,721 — 32,258 
Substandard31 2,482 2,601 2,469 2,404 9,860 3,096 22,943 
Doubtful— — — — — 542 — 542 
Total$88,421 $278,797 $320,845 $332,458 $303,601 $553,155 $23,691 $1,900,968 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Construction real estate: Commercial
Risk rating
Pass$25,878 $89,993 $83,543 $3,414 $18,075 $3,646 $10,936 $235,485 
Special Mention— 300 372 — — — — 672 
Substandard— 615 1,899 50 — — — 2,564 
Doubtful— — — — — — — — 
Total$25,878 $90,908 $85,814 $3,464 $18,075 $3,646 $10,936 $238,721 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
March 31, 2024Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Residential Real Estate: Commercial
Risk rating
Pass$24,393 $127,964 $100,789 $101,026 $114,211 $114,599 $22,952 $605,934 
Special Mention149 364 519 1,900 2,162 1,876 90 7,060 
Substandard438 162 392 154 1,181 1,461 220 4,008 
Doubtful— — — — — — — — 
Total$24,980 $128,490 $101,700 $103,080 $117,554 $117,936 $23,262 $617,002 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Leases
Risk rating
Pass$10,916 $6,774 $3,916 $1,893 $1,629 $644 $— $25,772 
Special Mention29 683 1,475 339 239 5 — 2,770 
Substandard— — — — — 55 — 55 
Doubtful— — — — — — — — 
Total$10,945 $7,457 $5,391 $2,232 $1,868 $704 $— $28,597 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total Commercial Loans
Risk rating
Pass$196,211 $689,834 $642,201 $536,728 $516,064 $725,071 $638,135 $3,944,244 
Special Mention2,052 4,369 8,604 9,039 9,462 14,677 10,513 58,716 
Substandard517 3,609 5,348 3,769 5,670 12,044 12,931 43,888 
Doubtful— — 441 35 1,810 8,506 2,483 13,275 
Total$198,780 $697,812 $656,594 $549,571 $533,006 $760,298 $664,062 $4,060,123 
Current period gross charge-offs$— $— $— $5 $— $— $— $5 
(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, 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$204,601 $149,386 $118,992 $93,495 $38,205 $45,814 $600,301 $1,250,794 
Special Mention530 1,549 435 128 252 2 16,260 19,156 
Substandard149 894 1,041 1,133 143 582 7,427 11,369 
Doubtful— — 39 1,771 96 7,848 952 10,706 
Total $205,280 $151,829 $120,507 $96,527 $38,696 $54,246 $624,940 $1,292,025 
Current period gross charge-offs$— $13 $73 $— $5 $52 $19 $162 
Commercial, financial and agricultural: PPP
Risk rating
Pass$— $— $925 $1,191 $— $— $— $2,116 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total$— $— $925 $1,191 $— $— $— $2,116 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate (1)
Risk rating
Pass$278,922 $322,096 $334,452 $318,473 $204,740 $347,389 $17,174 $1,823,246 
Special Mention2,092 2,951 4,637 7,629 — 13,043 98 30,450 
Substandard1,828 1,589 2,509 2,668 3,406 7,495 1,584 21,079 
Doubtful889 — — — — 329 — 1,218 
Total$283,731 $326,636 $341,598 $328,770 $208,146 $368,256 $18,856 $1,875,993 
Current period gross charge-offs$224 $— $— $— $— $530 $— $754 
Construction real estate: Commercial
Risk rating
Pass$89,283 $77,988 $7,480 $18,195 $1,090 $2,718 $11,342 $208,096 
Special Mention— — — — — — — — 
Substandard831 236 63 — — — — 1,130 
Doubtful— — — — — — — — 
Total$90,114 $78,224 $7,543 $18,195 $1,090 $2,718 $11,342 $209,226 
Current period gross charge-offs$546 $— $— $— $— $— $— $546 
December 31, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisTotal
Residential Real Estate: Commercial
Risk rating
Pass$128,589 $104,008 $105,225 $117,442 $49,797 $71,489 $23,535 $600,085 
Special Mention— 333 623 1,964 914 1,578 — 5,412 
Substandard195 560 159 1,192 16 1,601 190 3,913 
Doubtful— — — — — — — — 
Total$128,784 $104,901 $106,007 $120,598 $50,727 $74,668 $23,725 $609,410 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Leases
Risk rating
Pass$11,440 $4,404 $2,197 $1,941 $356 $623 $— $20,961 
Special Mention731 1,564 391 297 10 2 — 2,995 
Substandard— — — — 67 6 — 73 
Doubtful— — — — — — — — 
Total$12,171 $5,968 $2,588 $2,238 $433 $631 $— $24,029 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total Commercial Loans
Risk rating
Pass$712,835 $657,882 $569,271 $550,737 $294,188 $468,033 $652,352 $3,905,298 
Special Mention3,353 6,397 6,086 10,018 1,176 14,625 16,358 58,013 
Substandard3,003 3,279 3,772 4,993 3,632 9,684 9,201 37,564 
Doubtful889 — 39 1,771 96 8,177 952 11,924 
Total$720,080 $667,558 $579,168 $567,519 $299,092 $500,519 $678,863 $4,012,799 
Current period gross charge-offs$770 $13 $73 $— $5 $582 $19 $1,462 
(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 and gross charge offs for the three months ended March 31, 2024 and for the year ended December 31, 2023. Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.

March 31, 2024Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Overdrafts
Performing$1,635 $— $— $— $— $— $— $1,635 
Nonperforming
— — — — — — — — 
Total $1,635 $— $— $— $— $— $— $1,635 
Current period gross charge-offs$215 $— $— $— $— $— $— $215 

Construction Real Estate: Retail
Performing$4,442 $63,367 $17,289 $7,235 $4,094 $6,218 $74 $102,719 
Nonperforming
— 148 — 251 — — — 399 
Total $4,442 $63,515 $17,289 $7,486 $4,094 $6,218 $74 $103,118 
Current period gross charge-offs$— $— $— $— $— $— $— $— 

Residential Real Estate: Mortgage
Performing$38,674 $206,167 $261,025 $209,948 $173,087 $349,620 $— $1,238,521 
Nonperforming
— 196 1,577 1,337 738 8,971 — 12,819 
Total $38,674 $206,363 $262,602 $211,285 $173,825 $358,591 $— $1,251,340 
Current period gross charge-offs$— $— $— $— $— $— $— $— 

Residential Real Estate: HELOC
Performing$— $147 $427 $352 $63 $1,930 $173,288 $176,207 
Nonperforming
— 20 — — — 614 176 810 
Total $— $167 $427 $352 $63 $2,544 $173,464 $177,017 
Current period gross charge-offs$— $— $— $— $— $1 $— $1 
Residential Real Estate: Installment
Performing$422 $2,091 $156 $— $— $3,319 $— $5,988 
Nonperforming
— — — — 2 15 — 17 
Total $422 $2,091 $156 $— $2 $3,334 $— $6,005 
Current period gross charge-offs$— $— $— $— $— $— $— $— 

Consumer: Consumer
Performing$155,368 $594,174 $564,502 $288,467 $190,160 $126,692 $1,584 $1,920,947 
Nonperforming— 441 887 576 347 665 4 2,920 
Total $155,368 $594,615 $565,389 $289,043 $190,507 $127,357 $1,588 $1,923,867 
Current period gross charge-offs$— $620 $1,107 $891 $246 $134 $2 $3,000 
March 31, 2024Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Consumer: Check loans
Performing$— $— $— $— $— $— $1,900 $1,900 
Nonperforming
— — — — — — — — 
Total $— $— $— $— $— $— $1,900 $1,900 
Current period gross charge-offs$— $— $— $— $— $— $19 $19 

Total Consumer Loans
Performing$200,541 $865,946 $843,399 $506,002 $367,404 $487,779 $176,846 $3,447,917 
Nonperforming
— 805 2,464 2,164 1,087 10,265 180 16,965 
Total $200,541 $866,751 $845,863 $508,166 $368,491 $498,044 $177,026 $3,464,882 
Current period gross charge-offs$215 $620 $1,107 $891 $246 $135 $21 $3,235 

December 31, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Overdrafts
Performing$1,499 $— $— $— $— $— $— $1,499 
Nonperforming
— — — — — — — — 
Total 1,499 $— $— $— $— $— $— $1,499 
Current period gross charge-offs$1,064 $— $— $— $— $— $— $1,064 

Construction Real Estate: Retail
Performing$52,904 $24,219 $7,709 $4,251 $3,604 $2,891 $269 $95,847 
Nonperforming
— — — 26 — — — 26 
Total $52,904 $24,219 $7,709 $4,277 $3,604 $2,891 $269 $95,873 
Current period gross charge-offs$— $— $— $— $— $— $— $— 

Residential Real Estate: Mortgage
Performing$209,315 $259,076 $218,417 $177,518 $80,627 $282,916 $— $1,227,869 
Nonperforming
197 1,144 1,172 406 581 8,492 — 11,992 
Total $209,512 $260,220 $219,589 $177,924 $81,208 $291,408 $— $1,239,861 
Current period gross charge-offs$— $— $— $— $— $35 $— $35 

Residential Real Estate: HELOC
Performing$99 $205 $379 $98 $221 $1,838 $170,694 $173,534 
Nonperforming
— — — — 32 603 180 815 
Total $99 $205 $379 $98 $253 $2,441 $170,874 $174,349 
Current period gross charge-offs$— $— $— $— $— $9 $— $9 
December 31, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Residential Real Estate: Installment
Performing$2,225 $162 $— $3 $144 $3,354 $— $5,888 
Nonperforming
— — — — — 16 — 16 
Total $2,225 $162 $— $3 $144 $3,370 $— $5,904 
Current period gross charge-offs$— $— $— $— $— $— $— $— 

Consumer: Consumer
Performing$627,985 $613,019 $319,161 $214,714 $81,446 $65,955 $18,605 $1,940,885 
Nonperforming
395 891 654 435 216 389 4 2,984 
Total $628,380 $613,910 $319,815 $215,149 $81,662 $66,344 $18,609 $1,943,869 
Current period gross charge-offs$560 $3,517 $2,371 $763 $545 $480 $6 $8,242 

Consumer: Check loans
Performing$— $— $— $— $— $— $2,067 $2,067 
Nonperforming
— — — — — — — — 
Total $— $— $— $— $— $— $2,067 $2,067 
Current period gross charge-offs$— $— $— $— $— $— $51 $51 

Total Consumer Loans
Performing$894,027 $896,681 $545,666 $396,584 $166,042 $356,954 $191,635 $3,447,589 
Nonperforming
592 2,035 1,826 867 829 9,500 184 15,833 
Total $894,619 $898,716 $547,492 $397,451 $166,871 $366,454 $191,819 $3,463,422 
Current period gross charge-offs$1,624 $3,517 $2,371 $763 $545 $524 $57 $9,401 
Loans and Leases Acquired with Deteriorated Credit Quality
PCD loans are individually evaluated on a quarterly basis to determine if a reserve is necessary. At March 31, 2024 and at December 31, 2023, there was no allowance for credit losses on PCD loans. The carrying amount of accruing loans acquired with deteriorated credit quality at March 31, 2024 and at December 31, 2023 was $2.5 million and $2.8 million, respectively. The carrying amount of nonaccrual loans acquired with deteriorated credit quality was $544,000 and $534,000 at March 31, 2024 and at December 31, 2023, 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 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, a term extension, an other-than-insignificant payment delay or an interest rate reduction.

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 reduction.

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.