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Allowance For Loan Losses | 3 Months Ended
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Mar. 31, 2015
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 2014 Annual Report. Management updates historical losses annually in the fourth quarter, or more frequently as deemed appropriate. With the inclusion of 2013 net charge-off information, management concluded that it was no longer appropriate to calculate the historical loss average with an even allocation across the five-year period. Rather than apply a 20% allocation to each year in the calculation of the historical annualized loss factor, 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. 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. With the inclusion of 2014 net charge-off information in the fourth quarter of 2014, management extended the historical loss period to six years. Due to the same factors that management considered in 2013, management applied more weight to 2009 through 2011 periods compared to the 2012 through 2014 periods. The activity in the allowance for loan losses for the three months ended March 31, 2015 and March 31, 2014 is summarized below.
| Three Months Ended March 31, 2015
(In thousands) | Commercial, financial and agricultural |  | Commercial real estate |  | Construction real estate |  | Residential real estate |  | Consumer |  | Leases |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 10,719 |  |  | $ | 8,808 |  |  | $ | 8,652 |  |  | $ | 14,772 |  |  | $ | 11,401 |  |  | $ | — |  |  | $ | 54,352 |
Charge-offs | 352 |  |  | 130 |  |  | — |  |  | 422 |  |  | 2,514 |  |  | — |  |  | 3,418 |
Recoveries | 291 |  |  | 674 |  |  | 285 |  |  | 924 |  |  | 666 |  |  | 2 |  |  | 2,842 |
Net charge-offs/(recoveries) | 61 |  |  | (544 | ) |  | (285 | ) |  | (502 | ) |  | 1,848 |  |  | (2 | ) |  | 576 |
Provision/(recovery) | 703 |  |  | (56 | ) |  | (182 | ) |  | (762 | ) |  | 1,931 |  |  | (2 | ) |  | 1,632 |
Ending balance | $ | 11,361 |  |  | $ | 9,296 |  |  | $ | 8,755 |  |  | $ | 14,512 |  |  | $ | 11,484 |  |  | $ | — |  |  | $ | 55,408 |
| Three Months Ended March 31, 2014
(In thousands) | Commercial, financial and agricultural |  | Commercial real estate |  | Construction real estate |  | Residential real estate |  | Consumer |  | Leases |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 14,218 |  |  | $ | 15,899 |  |  | $ | 6,855 |  |  | $ | 14,251 |  |  | $ | 8,245 |  |  | $ | — |  |  | $ | 59,468 |
Charge-offs | 639 |  |  | 794 |  |  | 8 |  |  | 591 |  |  | 1,795 |  |  | — |  |  | 3,827 |
Recoveries | 247 |  |  | 1,558 |  |  | 794 |  |  | 1,227 |  |  | 3,014 |  |  | 1 |  |  | 6,841 |
Net charge-offs/(recoveries) | 392 |  |  | (764 | ) |  | (786 | ) |  | (636 | ) |  | (1,219 | ) |  | (1 | ) |  | (3,014 | )
Provision/(recovery) | (64 | ) |  | (909 | ) |  | 480 |  |  | (680 | ) |  | (1,051 | ) |  | (1 | ) |  | (2,225 | )
Ending balance | $ | 13,762 |  |  | $ | 15,754 |  |  | $ | 8,121 |  |  | $ | 14,207 |  |  | $ | 8,413 |  |  | $ | — |  |  | $ | 60,257 |
Loans collectively evaluated for impairment in the following tables include all performing loans at March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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 2014 Annual Report). The composition of the allowance for loan losses at March 31, 2015 and December 31, 2014 was as follows:
| March 31, 2015
(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 | $ | 1,839 |  |  | $ | 645 |  |  | $ | 2,157 |  |  | $ | 423 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,064 |
Collectively evaluated for impairment | 9,522 |  |  | 8,651 |  |  | 6,598 |  |  | 14,089 |  |  | 11,484 |  |  | — |  |  | 50,344 |
Total ending allowance balance | $ | 11,361 |  |  | $ | 9,296 |  |  | $ | 8,755 |  |  | $ | 14,512 |  |  | $ | 11,484 |  |  | $ | — |  |  | $ | 55,408 |
Loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | $ | 20,570 |  |  | $ | 16,892 |  |  | $ | 7,802 |  |  | $ | 25,197 |  |  | $ | — |  |  | $ | — |  |  | $ | 70,461 |
Loans collectively evaluated for impairment | 823,763 |  |  | 1,054,373 |  |  | 141,973 |  |  | 1,824,208 |  |  | 912,854 |  |  | 3,198 |  |  | 4,760,369 |
Total ending loan balance | $ | 844,333 |  |  | $ | 1,071,265 |  |  | $ | 149,775 |  |  | $ | 1,849,405 |  |  | $ | 912,854 |  |  | $ | 3,198 |  |  | $ | 4,830,830 |
Allowance for loan losses as a percentage of loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | 8.94 | % |  | 3.82 | % |  | 27.65 | % |  | 1.68 | % |  | — | % |  | — | % |  | 7.19 | %
Loans collectively evaluated for impairment | 1.16 | % |  | 0.82 | % |  | 4.65 | % |  | 0.77 | % |  | 1.26 | % |  | — | % |  | 1.06 | %
Total | 1.35 | % |  | 0.87 | % |  | 5.85 | % |  | 0.78 | % |  | 1.26 | % |  | — | % |  | 1.15 | %
Recorded investment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | $ | 20,571 |  |  | $ | 16,900 |  |  | $ | 7,802 |  |  | $ | 25,219 |  |  | $ | — |  |  | $ | — |  |  | $ | 70,492 |
Loans collectively evaluated for impairment | 827,027 |  |  | 1,057,894 |  |  | 142,374 |  |  | 1,827,796 |  |  | 915,671 |  |  | 3,242 |  |  | 4,774,004 |
Total ending recorded investment | $ | 847,598 |  |  | $ | 1,074,794 |  |  | $ | 150,176 |  |  | $ | 1,853,015 |  |  | $ | 915,671 |  |  | $ | 3,242 |  |  | $ | 4,844,496 |
|  | December 31, 2014
(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 |  | $ | 981 |  |  | $ | 262 |  |  | $ | 1,812 |  |  | $ | 605 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,660 |
Collectively evaluated for impairment |  | 9,738 |  |  | 8,546 |  |  | 6,840 |  |  | 14,167 |  |  | 11,401 |  |  | — |  |  | 50,692 |
Total ending allowance balance |  | $ | 10,719 |  |  | $ | 8,808 |  |  | $ | 8,652 |  |  | $ | 14,772 |  |  | $ | 11,401 |  |  | $ | — |  |  | $ | 54,352 |
Loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 19,103 |  |  | $ | 21,978 |  |  | $ | 7,690 |  |  | $ | 24,905 |  |  | $ | — |  |  | $ | — |  |  | $ | 73,676 |
Loans collectively evaluated for impairment |  | 837,432 |  |  | 1,047,659 |  |  | 148,114 |  |  | 1,826,470 |  |  | 893,160 |  |  | 3,171 |  |  | 4,756,006 |
Total ending loan balance |  | $ | 856,535 |  |  | $ | 1,069,637 |  |  | $ | 155,804 |  |  | $ | 1,851,375 |  |  | $ | 893,160 |  |  | $ | 3,171 |  |  | $ | 4,829,682 |
Allowance for loan losses as a percentage of loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | 5.14 | % |  | 1.19 | % |  | 23.56 | % |  | 2.43 | % |  | — | % |  | — | % |  | 4.97 | %
Loans collectively evaluated for impairment |  | 1.16 | % |  | 0.82 | % |  | 4.62 | % |  | 0.78 | % |  | 1.28 | % |  | — | % |  | 1.07 | %
Total |  | 1.25 | % |  | 0.82 | % |  | 5.55 | % |  | 0.80 | % |  | 1.28 | % |  | — | % |  | 1.13 | %
Recorded investment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 19,106 |  |  | $ | 21,989 |  |  | $ | 7,687 |  |  | $ | 24,930 |  |  | $ | — |  |  | $ | — |  |  | $ | 73,712 |
Loans collectively evaluated for impairment |  | 840,647 |  |  | 1,051,194 |  |  | 148,512 |  |  | 1,829,931 |  |  | 896,127 |  |  | 3,188 |  |  | 4,769,599 |
Total ending recorded investment |  | $ | 859,753 |  |  | $ | 1,073,183 |  |  | $ | 156,199 |  |  | $ | 1,854,861 |  |  | $ | 896,127 |  |  | $ | 3,188 |  |  | $ | 4,843,311 |

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