XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Allowance For Loan Losses | 9 Months Ended
--- | ---
Sep. 30, 2016
Allowance for Loan and Lease Losses Write-offs, Net [Abstract] |
Allowance For Loan Losses | Allowance for Loan Losses The allowance for loan losses ("ALLL") 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 2015 Annual Report. Loss factors are reviewed quarterly and updated at least annually to reflect recent loan loss history and incorporate current risk and trends which may not be recognized in historical data. Several enhancements were made in the third quarter of 2016 as a result of management's quarterly review.
• | Management updated the historical loss calculation during the third quarter of 2016, incorporating annualized net charge-offs plus changes in specific reserves through September 30, 2016. Additionally, management removed net charge-offs plus changes in specific reserves for the year ended December 31, 2009. Management's belief has been that historical losses should encompass the complete economic cycle. However, given the extended length of the recovery, management determined that 2009 data was no longer reflective of the current portfolio. Management has taken the look back period into consideration in the quarterly evaluation of environmental loss factors.
As part of this mid-year historical loss update, management determined that it was no longer appropriate to more heavily weight those years with higher losses in the historical loss calculation and applied equal percentages to each of the years in this calculation. The trends that existed resulting in management applying this weighting no longer appear to exist, resulting in the adjustment back to equal weightings.
• | As part of the normal quarterly process, management reviewed and updated the environmental loss factors applied to the commercial portfolio in order to incorporate changes in the macroeconomic environment. Additionally, management updated the calculation of the loss emergence period.
The impact of the changes as described above resulted in a decrease of $3.8 million in the ALLL at September 30, 2016, compared to what the ALLL would have been had the calculation, and related assumptions, used at June 30, 2016 remained constant. The activity in the allowance for loan losses for the three and nine months ended September 30, 2016 and September 30, 2015 is summarized below.
| Three Months Ended September 30, 2016
(In thousands) | Commercial, financial and agricultural |  | Commercial real estate |  | Construction real estate |  | Residential real estate |  | Consumer |  | Leases |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 16,478 |  |  | $ | 9,203 |  |  | $ | 8,256 |  |  | $ | 13,180 |  |  | $ | 11,581 |  |  | $ | 1 |  |  | $ | 58,699 |
Charge-offs | 457 |  |  | 4 |  |  | 1,300 |  |  | 293 |  |  | 2,086 |  |  | — |  |  | 4,140 |
Recoveries | 246 |  |  | 973 |  |  | 3,659 |  |  | 348 |  |  | 1,142 |  |  | 1 |  |  | 6,369 |
Net charge-offs/(recoveries) | 211 |  |  | (969 | ) |  | (2,359 | ) |  | (55 | ) |  | 944 |  |  | (1 | ) |  | (2,229 | )
Provision/(recovery) | 3 |  |  | 401 |  |  | (5,257 | ) |  | (1,907 | ) |  | (604 | ) |  | (2 | ) |  | (7,366 | )
Ending balance | $ | 16,270 |  |  | $ | 10,573 |  |  | $ | 5,358 |  |  | $ | 11,328 |  |  | $ | 10,033 |  |  | $ | — |  |  | $ | 53,562 |
| Three Months Ended September 30, 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 | $ | 12,124 |  |  | $ | 9,467 |  |  | $ | 8,670 |  |  | $ | 15,268 |  |  | $ | 11,898 |  |  | $ | — |  |  | $ | 57,427 |
Charge-offs | 829 |  |  | 46 |  |  | 4 |  |  | 575 |  |  | 2,262 |  |  | — |  |  | 3,716 |
Recoveries | 415 |  |  | 386 |  |  | 274 |  |  | 461 |  |  | 832 |  |  | — |  |  | 2,368 |
Net charge-offs/(recoveries) | 414 |  |  | (340 | ) |  | (270 | ) |  | 114 |  |  | 1,430 |  |  | — |  |  | 1,348 |
Provision/(recovery) | 1,549 |  |  | (352 | ) |  | 50 |  |  | (132 | ) |  | 1,289 |  |  | — |  |  | 2,404 |
Ending balance | $ | 13,259 |  |  | $ | 9,455 |  |  | $ | 8,990 |  |  | $ | 15,022 |  |  | $ | 11,757 |  |  | $ | — |  |  | $ | 58,483 |
| Nine Months Ended September 30, 2016
(In thousands) | Commercial, financial and agricultural |  | Commercial real estate |  | Construction real estate |  | Residential real estate |  | Consumer |  | Leases |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 13,694 |  |  | $ | 9,197 |  |  | $ | 8,564 |  |  | $ | 13,514 |  |  | $ | 11,524 |  |  | $ | 1 |  |  | $ | 56,494 |
Charge-offs | 1,601 |  |  | 82 |  |  | 1,318 |  |  | 1,776 |  |  | 7,183 |  |  | — |  |  | 11,960 |
Recoveries | 889 |  |  | 3,005 |  |  | 4,708 |  |  | 1,226 |  |  | 3,017 |  |  | 2 |  |  | 12,847 |
Net charge-offs/(recoveries) | 712 |  |  | (2,923 | ) |  | (3,390 | ) |  | 550 |  |  | 4,166 |  |  | (2 | ) |  | (887 | )
Provision/(recovery) | 3,288 |  |  | (1,547 | ) |  | (6,596 | ) |  | (1,636 | ) |  | 2,675 |  |  | (3 | ) |  | (3,819 | )
Ending balance | $ | 16,270 |  |  | $ | 10,573 |  |  | $ | 5,358 |  |  | $ | 11,328 |  |  | $ | 10,033 |  |  | $ | — |  |  | $ | 53,562 |
| Nine Months Ended September 30, 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 | 1,680 |  |  | 329 |  |  | 41 |  |  | 1,732 |  |  | 6,379 |  |  | — |  |  | 10,161 |
Recoveries | 987 |  |  | 2,188 |  |  | 1,238 |  |  | 1,808 |  |  | 2,420 |  |  | 3 |  |  | 8,644 |
Net charge-offs/(recoveries) | 693 |  |  | (1,859 | ) |  | (1,197 | ) |  | (76 | ) |  | 3,959 |  |  | (3 | ) |  | 1,517 |
Provision/(recovery) | 3,233 |  |  | (1,212 | ) |  | (859 | ) |  | 174 |  |  | 4,315 |  |  | (3 | ) |  | 5,648 |
Ending balance | $ | 13,259 |  |  | $ | 9,455 |  |  | $ | 8,990 |  |  | $ | 15,022 |  |  | $ | 11,757 |  |  | $ | — |  |  | $ | 58,483 |
Loans collectively evaluated for impairment in the following tables include all performing loans at September 30, 2016 and December 31, 2015, 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, 2016 and December 31, 2015, 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 2015 Annual Report). The composition of the allowance for loan losses at September 30, 2016 and December 31, 2015 was as follows:
| September 30, 2016
(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 | $ | 3,191 |  |  | $ | 525 |  |  | $ | 61 |  |  | $ | 455 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,232 |
Collectively evaluated for impairment | 13,079 |  |  | 10,048 |  |  | 5,297 |  |  | 10,873 |  |  | 10,033 |  |  | — |  |  | 49,330 |
Total ending allowance balance | $ | 16,270 |  |  | $ | 10,573 |  |  | $ | 5,358 |  |  | $ | 11,328 |  |  | $ | 10,033 |  |  | $ | — |  |  | $ | 53,562 |
Loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | $ | 23,852 |  |  | $ | 26,057 |  |  | $ | 4,377 |  |  | $ | 23,700 |  |  | $ | — |  |  | $ | — |  |  | $ | 77,986 |
Loans collectively evaluated for impairment | 934,177 |  |  | 1,114,945 |  |  | 181,599 |  |  | 1,806,352 |  |  | 1,068,343 |  |  | 3,602 |  |  | 5,109,018 |
Total ending loan balance | $ | 958,029 |  |  | $ | 1,141,002 |  |  | $ | 185,976 |  |  | $ | 1,830,052 |  |  | $ | 1,068,343 |  |  | $ | 3,602 |  |  | $ | 5,187,004 |
Allowance for loan losses as a percentage of loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | 13.38 | % |  | 2.01 | % |  | 1.39 | % |  | 1.92 | % |  | — | % |  | — | % |  | 5.43 | %
Loans collectively evaluated for impairment | 1.40 | % |  | 0.90 | % |  | 2.92 | % |  | 0.60 | % |  | 0.94 | % |  | — | % |  | 0.97 | %
Total | 1.70 | % |  | 0.93 | % |  | 2.88 | % |  | 0.62 | % |  | 0.94 | % |  | — | % |  | 1.03 | %
Recorded investment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment | $ | 23,856 |  |  | $ | 26,065 |  |  | $ | 4,377 |  |  | $ | 23,700 |  |  | $ | — |  |  | $ | — |  |  | $ | 77,998 |
Loans collectively evaluated for impairment | 937,959 |  |  | 1,119,205 |  |  | 182,020 |  |  | 1,809,513 |  |  | 1,071,227 |  |  | 3,657 |  |  | 5,123,581 |
Total ending recorded investment | $ | 961,815 |  |  | $ | 1,145,270 |  |  | $ | 186,397 |  |  | $ | 1,833,213 |  |  | $ | 1,071,227 |  |  | $ | 3,657 |  |  | $ | 5,201,579 |
|  | December 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 |  | $ | 1,904 |  |  | $ | 381 |  |  | $ | 1,356 |  |  | $ | 550 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,191 |
Collectively evaluated for impairment |  | 11,790 |  |  | 8,816 |  |  | 7,208 |  |  | 12,964 |  |  | 11,524 |  |  | 1 |  |  | 52,303 |
Total ending allowance balance |  | $ | 13,694 |  |  | $ | 9,197 |  |  | $ | 8,564 |  |  | $ | 13,514 |  |  | $ | 11,524 |  |  | $ | 1 |  |  | $ | 56,494 |
Loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 30,545 |  |  | $ | 18,015 |  |  | $ | 6,716 |  |  | $ | 25,323 |  |  | $ | — |  |  | $ | — |  |  | $ | 80,599 |
Loans collectively evaluated for impairment |  | 925,182 |  |  | 1,095,588 |  |  | 166,629 |  |  | 1,830,120 |  |  | 967,111 |  |  | 2,856 |  |  | 4,987,486 |
Total ending loan balance |  | $ | 955,727 |  |  | $ | 1,113,603 |  |  | $ | 173,345 |  |  | $ | 1,855,443 |  |  | $ | 967,111 |  |  | $ | 2,856 |  |  | $ | 5,068,085 |
Allowance for loan losses as a percentage of loan balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | 6.23 | % |  | 2.11 | % |  | 20.19 | % |  | 2.17 | % |  | — | % |  | — | % |  | 5.20 | %
Loans collectively evaluated for impairment |  | 1.27 | % |  | 0.80 | % |  | 4.33 | % |  | 0.71 | % |  | 1.19 | % |  | 0.04 | % |  | 1.05 | %
Total |  | 1.43 | % |  | 0.83 | % |  | 4.94 | % |  | 0.73 | % |  | 1.19 | % |  | 0.04 | % |  | 1.11 | %
Recorded investment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 30,595 |  |  | $ | 18,025 |  |  | $ | 6,720 |  |  | $ | 25,324 |  |  | $ | — |  |  | $ | — |  |  | $ | 80,664 |
Loans collectively evaluated for impairment |  | 928,569 |  |  | 1,099,587 |  |  | 167,042 |  |  | 1,833,449 |  |  | 970,143 |  |  | 2,870 |  |  | 5,001,660 |
Total ending recorded investment |  | $ | 959,164 |  |  | $ | 1,117,612 |  |  | $ | 173,762 |  |  | $ | 1,858,773 |  |  | $ | 970,143 |  |  | $ | 2,870 |  |  | $ | 5,082,324 |

X
- Definition The entire disclosure for allowance for credit losses. + References No definition available. + Details
Name: | us-gaap_AllowanceForCreditLossesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_AllowanceForLoanAndLeaseLossesWriteoffsNetAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration