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Allowance For Loan Losses | 9 Months Ended
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Sep. 30, 2013
Loans and Leases Receivable, Allowance [Abstract] |
Allowance For Loan Losses | Allowance for Loan Losses The allowance for loan losses is that amount management believes is adequate to absorb probable incurred credit losses in the loan portfolio based on management’s evaluation of various factors including overall growth in the loan portfolio, an analysis of individual loans, prior and current loss experience, and current economic conditions. A provision for loan losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1 of the Notes to Consolidated Financial Statements included in Park’s 2012 Annual Report. Management extended the historical loss calculation period from 48 months to 54 months during the third quarter of 2013, incorporating net charge-offs plus changes in specific reserves through June 30, 2013. This update was completed mid-year due to the significant decline in net charge-offs plus changes in specific reserves that have been experienced beginning in the first quarter of 2012 through June 30, 2013. As part of this mid-year historical loss update, management determined that it was appropriate to more heavily weight those years with higher losses in the historical loss calculation. Given the continued uncertainty in the current economic environment, management did not feel that it was appropriate to continue to apply equal percentages to each of the years in the historical loss calculation. Specifically, rather than applying equal percentages to each year in the historical loss calculation, management applied more weight to the 2009-2011 periods compared to the 2012 and 2013 periods. The impact of the change resulted in general reserves as a percentage of performing loans of 1.09% at September 30, 2013, which was consistent with the 1.09% at June 30, 2013. The activity in the allowance for loan losses for the three and nine months ended September 30, 2013 and September 30, 2012 is summarized below.
| Three Months Ended September 30, 2013
(In thousands) | Commercial, financial and agricultural |  | Commercial real estate |  | Construction real estate |  | Residential real estate |  | Consumer |  | Leases |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 15,391 |  |  | $ | 11,025 |  |  | $ | 7,132 |  |  | $ | 14,647 |  |  | $ | 6,916 |  |  | $ | — |  |  | $ | 55,111 |
Charge-offs | 3,297 |  |  | 457 |  |  | 100 |  |  | 725 |  |  | 709 |  |  | — |  |  | 5,288 |
Recoveries | 216 |  |  | 358 |  |  | 4,026 |  |  | 620 |  |  | 353 |  |  | — |  |  | 5,573 |
Net charge-offs/(recoveries) | 3,081 |  |  | 99 |  |  | (3,926 | ) |  | 105 |  |  | 356 |  |  | — |  |  | (285 | )
Provision / (releases) | 1,741 |  |  | 4,611 |  |  | (4,704 | ) |  | (942 | ) |  | 1,792 |  |  | — |  |  | 2,498 |
Ending balance | $ | 14,051 |  |  | $ | 15,537 |  |  | $ | 6,354 |  |  | $ | 13,600 |  |  | $ | 8,352 |  |  | $ | — |  |  | $ | 57,894 |
| Three Months Ended September 30, 2012
(In thousands) | Commercial, financial and agricultural |  | Commercial real estate |  | Construction real estate |  | Residential real estate |  | Consumer |  | Leases |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 15,220 |  |  | $ | 11,956 |  |  | $ | 11,693 |  |  | $ | 13,806 |  |  | $ | 6,021 |  |  | $ | — |  |  | $ | 58,696 |
Charge-offs | 16,515 |  |  | 953 |  |  | 2,969 |  |  | 1,159 |  |  | 1,282 |  |  | — |  |  | 22,878 |
Recoveries | 215 |  |  | 164 |  |  | 690 |  |  | 1,421 |  |  | 602 |  |  | — |  |  | 3,092 |
Net charge-offs / (recoveries) | 16,300 |  |  | 789 |  |  | 2,279 |  |  | (262 | ) |  | 680 |  |  | — |  |  | 19,786 |
Provision / (releases) | 14,746 |  |  | (294 | ) |  | 1,596 |  |  | (179 | ) |  | 786 |  |  | — |  |  | 16,655 |
Ending balance | $ | 13,666 |  |  | $ | 10,873 |  |  | $ | 11,010 |  |  | $ | 13,889 |  |  | $ | 6,127 |  |  | $ | — |  |  | $ | 55,565 |
| Nine Months Ended September 30, 2013
(In thousands) | Commercial, financial and agricultural |  | Commercial real estate |  | Construction real estate |  | Residential real estate |  | Consumer |  | Leases |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 15,635 |  |  | $ | 11,736 |  |  | $ | 6,841 |  |  | $ | 14,759 |  |  | $ | 6,566 |  |  | $ | — |  |  | $ | 55,537 |
Charge-offs | 6,781 |  |  | 1,533 |  |  | 1,771 |  |  | 2,047 |  |  | 3,503 |  |  | — |  |  | 15,635 |
Recoveries | 1,133 |  |  | 620 |  |  | 5,874 |  |  | 5,260 |  |  | 1,604 |  |  | 1 |  |  | 14,492 |
Net charge-offs/(recoveries) | 5,648 |  |  | 913 |  |  | (4,103 | ) |  | (3,213 | ) |  | 1,899 |  |  | (1 | ) |  | 1,143 |
Provision / (releases) | 4,064 |  |  | 4,714 |  |  | (4,590 | ) |  | (4,372 | ) |  | 3,685 |  |  | (1 | ) |  | 3,500 |
Ending balance | $ | 14,051 |  |  | $ | 15,537 |  |  | $ | 6,354 |  |  | $ | 13,600 |  |  | $ | 8,352 |  |  | $ | — |  |  | $ | 57,894 |
| Nine Months Ended September 30, 2012
(In thousands) | Commercial, financial and agricultural |  | Commercial real estate |  | Construction real estate |  | Residential real estate |  | Consumer |  | Leases |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 16,950 |  |  | $ | 15,539 |  |  | $ | 14,433 |  |  | $ | 15,692 |  |  | $ | 5,830 |  |  | $ | — |  |  | $ | 68,444 |
Charge-offs | 26,476 |  |  | 6,822 |  |  | 8,298 |  |  | 6,782 |  |  | 3,531 |  |  | — |  |  | 51,909 |
Recoveries | 807 |  |  | 503 |  |  | 2,456 |  |  | 3,217 |  |  | 1,816 |  |  | — |  |  | 8,799 |
Net charge-offs | 25,669 |  |  | 6,319 |  |  | 5,842 |  |  | 3,565 |  |  | 1,715 |  |  | — |  |  | 43,110 |
Provision | 22,385 |  |  | 1,653 |  |  | 2,419 |  |  | 1,762 |  |  | 2,012 |  |  | — |  |  | 30,231 |
Ending balance | $ | 13,666 |  |  | $ | 10,873 |  |  | $ | 11,010 |  |  | $ | 13,889 |  |  | $ | 6,127 |  |  | $ | — |  |  | $ | 55,565 |
Loans collectively evaluated for impairment in the following tables include all performing loans at September 30, 2013 and December 31, 2012, 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 allowance for loan losses. Loans individually evaluated for impairment include all impaired loans internally classified as commercial loans at September 30, 2013 and December 31, 2012, which are evaluated for impairment in accordance with U.S. GAAP (see Note 1 of the Notes to Consolidated Financial Statements included in Park’s 2012 Annual Report). The composition of the allowance for loan losses at September 30, 2013 and December 31, 2012 was as follows:
| September 30, 2013
(In thousands) | Commercial, financial and agricultural |  | Commercial real estate |  | Construction real estate |  | Residential real estate |  | Consumer |  | Leases |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributed to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment | $ | 1,728 |  |  | $ | 5,906 |  |  | $ | 1,221 |  |  | $ | 442 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,297 |
Collectively evaluated for impairment | 12,323 |  |  | 9,631 |  |  | 5,133 |  |  | 13,158 |  |  | 8,352 |  |  | — |  |  | 48,597 |
Total ending allowance balance | $ | 14,051 |  |  | $ | 15,537 |  |  | $ | 6,354 |  |  | $ | 13,600 |  |  | $ | 8,352 |  |  | $ | — |  |  | $ | 57,894 |
Loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | $ | 19,861 |  |  | $ | 41,003 |  |  | $ | 22,088 |  |  | $ | 34,474 |  |  | $ | 799 |  |  | $ | — |  |  | $ | 118,225 |
Loans collectively evaluated for impairment | 787,003 |  |  | 1,074,223 |  |  | 124,329 |  |  | 1,751,472 |  |  | 714,964 |  |  | 3,321 |  |  | 4,455,312 |
Total ending loan balance | $ | 806,864 |  |  | $ | 1,115,226 |  |  | $ | 146,417 |  |  | $ | 1,785,946 |  |  | $ | 715,763 |  |  | $ | 3,321 |  |  | $ | 4,573,537 |
Allowance for loan losses as a percentage of loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | 8.70 | % |  | 14.40 | % |  | 5.53 | % |  | 1.28 | % |  | — |  |  | — |  |  | 7.86 | %
Loans collectively evaluated for impairment | 1.57 | % |  | 0.90 | % |  | 4.13 | % |  | 0.75 | % |  | 1.17 | % |  | — |  |  | 1.09 | %
Total ending loan balance | 1.74 | % |  | 1.39 | % |  | 4.34 | % |  | 0.76 | % |  | 1.17 | % |  | — |  |  | 1.27 | %
Recorded investment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | $ | 19,871 |  |  | $ | 41,009 |  |  | $ | 22,095 |  |  | $ | 34,477 |  |  | $ | 799 |  |  | $ | — |  |  | $ | 118,251 |
Loans collectively evaluated for impairment | 790,229 |  |  | 1,078,105 |  |  | 124,694 |  |  | 1,755,118 |  |  | 717,528 |  |  | 3,370 |  |  | 4,469,044 |
Total ending recorded investment | $ | 810,100 |  |  | $ | 1,119,114 |  |  | $ | 146,789 |  |  | $ | 1,789,595 |  |  | $ | 718,327 |  |  | $ | 3,370 |  |  | $ | 4,587,295 |
|  | December 31, 2012
(In thousands) |  | Commercial, financial and agricultural |  | Commercial real estate |  | Construction real estate |  | Residential real estate |  | Consumer |  | Leases |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributed to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 3,180 |  |  | $ | 1,540 |  |  | $ | 2,277 |  |  | $ | 1,279 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,276 |
Collectively evaluated for impairment |  | 12,455 |  |  | 10,196 |  |  | 4,564 |  |  | 13,480 |  |  | 6,566 |  |  | — |  |  | 47,261 |
Total ending allowance balance |  | $ | 15,635 |  |  | $ | 11,736 |  |  | $ | 6,841 |  |  | $ | 14,759 |  |  | $ | 6,566 |  |  | $ | — |  |  | $ | 55,537 |
Loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 22,523 |  |  | $ | 44,267 |  |  | $ | 34,814 |  |  | $ | 35,616 |  |  | $ | 18 |  |  | $ | — |  |  | $ | 137,238 |
Loans collectively evaluated for impairment |  | 801,404 |  |  | 1,047,897 |  |  | 130,714 |  |  | 1,678,029 |  |  | 651,912 |  |  | 3,128 |  |  | 4,313,084 |
Total ending loan balance |  | $ | 823,927 |  |  | $ | 1,092,164 |  |  | $ | 165,528 |  |  | $ | 1,713,645 |  |  | $ | 651,930 |  |  | $ | 3,128 |  |  | $ | 4,450,322 |
Allowance for loan losses as a percentage of loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | 14.12 | % |  | 3.48 | % |  | 6.54 | % |  | 3.59 | % |  | — |  |  | — |  |  | 6.03 | %
Loans collectively evaluated for impairment |  | 1.55 | % |  | 0.97 | % |  | 3.49 | % |  | 0.80 | % |  | 1.01 | % |  | — |  |  | 1.10 | %
Total ending loan balance |  | 1.90 | % |  | 1.07 | % |  | 4.13 | % |  | 0.86 | % |  | 1.01 | % |  | — |  |  | 1.25 | %
Recorded investment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 22,587 |  |  | $ | 44,278 |  |  | $ | 34,834 |  |  | $ | 35,622 |  |  | $ | 18 |  |  | $ | — |  |  | $ | 137,339 |
Loans collectively evaluated for impairment |  | 804,316 |  |  | 1,051,725 |  |  | 131,176 |  |  | 1,681,449 |  |  | 654,747 |  |  | 3,157 |  |  | 4,326,570 |
Total ending recorded investment |  | $ | 826,903 |  |  | $ | 1,096,003 |  |  | $ | 166,010 |  |  | $ | 1,717,071 |  |  | $ | 654,765 |  |  | $ | 3,157 |  |  | $ | 4,463,909 |

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