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Loans | 12 Months Ended
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Dec. 31, 2022
Loans and Leases Receivable Disclosure [Abstract] |
Loans | Loans The composition of the loan portfolio at December 31, 2022 and December 31, 2021 was as follows:
| December 31, 2022 |  |  | December 31, 2021
(In thousands) | Amortized Cost |  |  | Amortized Cost
Commercial, financial and agricultural: (1) |  |  |  |
Commercial, financial and agricultural (1) | $ | 1,295,238 |  |  |  | $ | 1,223,079 |
PPP loans | 4,206 |  |  |  | 74,420 |
Overdrafts | 1,489 |  |  |  | 1,127 |
Commercial real estate (1) | 1,794,054 |  |  |  | 1,801,792 |
Construction real estate: |  |  |  |
Commercial | 208,982 |  |  |  | 214,561 |
Retail | 116,433 |  |  |  | 107,225 |
Residential real estate: |  |  |  |
Commercial | 550,183 |  |  |  | 533,802 |
Mortgage | 1,075,446 |  |  |  | 1,033,658 |
HELOC | 167,151 |  |  |  | 165,605 |
Installment | 4,091 |  |  |  | 5,642 |
Consumer: |  |  |  |
Consumer | 1,902,557 |  |  |  | 1,685,793 |
GFSC | 274 |  |  |  | 1,793 |
Check loans | 2,150 |  |  |  | 2,093 |
Leases | 19,637 |  |  |  | 20,532 |
Total | $ | 7,141,891 |  |  |  | $ | 6,871,122 |
Allowance for credit losses | (85,379) |  |  |  | (83,197) |
Net loans | $ | 7,056,512 |  |  |  | $ | 6,787,925 |
(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. In order to support customers, Park participated in the CARES Act Paycheck Protection Program ("PPP"). For its assistance in originating the first round of PPP loans during 2020, Park received an aggregate of $20.2 million in fees from the SBA, and for its assistance in originating additional PPP loans during 2021, Park received an aggregate of $12.9 million in fees from the SBA. During the years ended December 31, 2022, December 31, 2021, and December 31, 2020, $3.0 million, $16.3 million, and $13.7 million, respectively, of PPP fee income was recognized within loan interest income. Loans are shown net of deferred origination fees, costs and unearned income of $18.2 million at December 31, 2022, and of $19.5 million at December 31, 2021, which represented a net deferred income position in both years. At December 31, 2022 and December 31, 2021, included in the net deferred origination fees, costs and unearned income were $68,000 and $2.8 million, respectively, in net origination fees related to PPP loans. At December 31, 2022 and December 31, 2021, loans included purchase accounting adjustments of $2.5 million and $4.2 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 $1.5 million and $1.1 million were reclassified to loans at December 31, 2022 and December 31, 2021, respectively. Credit Quality The following tables present the amortized cost of nonaccrual loans, accruing TDRs, and loans past due 90 days or more and still accruing, by class of loan, at December 31, 2022 and December 31, 2021:
|  | December 31, 2022
(In thousands) |  | Nonaccrual Loans |  | Accruing TDRs |  | Loans Past Due 90 Days or More and Accruing |  | Total Nonperforming Loans
Commercial, financial and agricultural: |  |  |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | 38,158 |  |  | $ | 3,261 |  |  | $ | — |  |  | $ | 41,419 |
PPP loans |  | — |  |  | — |  |  | 389 |  |  | 389 |
Overdrafts |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate |  | 24,504 |  |  | 7,919 |  |  | — |  |  | 32,423 |
Construction real estate: |  |  |  |  |  |  |  |
Commercial |  | 1,712 |  |  | — |  |  | — |  |  | 1,712 |
Retail |  | 1,254 |  |  | 12 |  |  | — |  |  | 1,266 |
Residential real estate: |  |  |  |  |  |  |  |
Commercial |  | 1,894 |  |  | 298 |  |  | — |  |  | 2,192 |
Mortgage |  | 9,260 |  |  | 6,750 |  |  | 182 |  |  | 16,192 |
HELOC |  | 1,133 |  |  | 187 |  |  | 7 |  |  | 1,327 |
Installment |  | 51 |  |  | 1,037 |  |  | — |  |  | 1,088 |
Consumer: |  |  |  |  |  |  |  |
Consumer |  | 1,012 |  |  | 670 |  |  | 703 |  |  | 2,385 |
GFSC |  | 10 |  |  | — |  |  | — |  |  | 10 |
Check loans |  | — |  |  | — |  |  | — |  |  | — |
Leases |  | 708 |  |  | — |  |  | — |  |  | 708 |
Total loans |  | $ | 79,696 |  |  | $ | 20,134 |  |  | $ | 1,281 |  |  | $ | 101,111 |
|  | December 31, 2021
(In thousands) |  | Nonaccrual Loans |  | Accruing TDRs |  | Loans Past Due 90 Days or More and Accruing |  | Total Nonperforming Loans
Commercial, financial and agricultural |  |  |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | 13,271 |  |  | $ | 9,396 |  |  | $ | — |  |  | $ | 22,667 |
PPP loans |  | — |  |  | — |  |  | 793 |  |  | 793 |
Overdrafts |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate |  | 40,142 |  |  | 7,713 |  |  | — |  |  | 47,855 |
Construction real estate: |  |  |  |  |  |  |  |
Commercial |  | 52 |  |  | 169 |  |  | — |  |  | 221 |
Mortgage |  | 716 |  | 9 |  |  | — |  |  | 725 |
Residential real estate: |  |  |  |  |  |  |  |
Commercial |  | 2,366 |  |  | 240 |  |  | — |  |  | 2,606 |
Mortgage |  | 11,718 |  |  | 7,779 |  |  | 372 |  |  | 19,869 |
HELOC |  | 1,590 |  |  | 803 |  |  | — |  |  | 2,393 |
Installment |  | 82 |  |  | 1,508 |  |  | — |  |  | 1,590 |
Consumer |  |  |  |  |  |  |  |
Consumer |  | 1,518 |  |  | 700 |  |  | 431 |  |  | 2,649 |
GFSC |  | 79 |  |  | 6 |  |  | 11 |  |  | 96 |
Check loans |  | — |  |  | — |  |  | — |  |  | — |
Leases |  | 1,188 |  |  | — |  |  | — |  |  | 1,188 |
Total loans |  | $ | 72,722 |  |  | $ | 28,323 |  |  | $ | 1,607 |  |  | $ | 102,652 |
The following tables provide additional detail on nonaccrual loans and the related ACL, by class of loan, at December 31, 2022 and December 31, 2021:
|  | December 31, 2022
(In thousands) |  | Nonaccrual Loans With No ACL |  | Nonaccrual Loans With an ACL |  | Related ACL
Commercial, financial and agricultural: |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | 28,291 |  |  | $ | 9,867 |  |  | $ | 3,440 |
PPP loans |  | — |  |  | — |  |  | — |
Overdrafts |  | — |  |  | — |  |  | — |
Commercial real estate |  | 22,965 |  |  | 1,539 |  |  | 130 |
Construction real estate: |  |  |  |  |  |
Commercial |  | 1,712 |  |  | — |  |  | — |
Retail |  | — |  |  | 1,254 |  |  | 19 |
Residential real estate: |  |  |  |  |  |
Commercial |  | 1,894 |  |  | — |  |  | — |
Mortgage |  | — |  |  | 9,260 |  |  | 85 |
HELOC |  | — |  |  | 1,133 |  |  | 191 |
Installment |  | — |  |  | 51 |  |  | 17 |
Consumer |  |  |  |  |  |
Consumer |  | — |  |  | 1,012 |  |  | 283 |
GFSC |  | — |  |  | 10 |  |  | 1 |
Check loans |  | — |  |  | — |  |  | — |
Leases |  | 680 |  |  | 28 |  |  | 9 |
Total loans |  | $ | 55,542 |  |  | $ | 24,154 |  |  | $ | 4,175 |
|  | December 31, 2021
(In thousands) |  | Nonaccrual Loans With No ACL |  | Nonaccrual Loans With an ACL |  | Related ACL
Commercial, financial and agricultural: |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | 11,494 |  |  | $ | 1,777 |  |  | $ | 1,343 |
PPP loans |  | — |  |  | — |  |  | — |
Overdrafts |  | — |  |  | — |  |  | — |
Commercial real estate |  | 39,151 |  |  | 991 |  |  | 188 |
Construction real estate: |  |  |  |  |  |
Commercial |  | 52 |  |  | — |  |  | — |
Retail |  | — |  |  | 716 |  |  | 67 |
Residential real estate: |  |  |  |  |  |
Commercial |  | 2,366 |  |  | — |  |  | — |
Mortgage |  | — |  |  | 11,718 |  |  | 73 |
HELOC |  | — |  |  | 1,590 |  |  | 99 |
Installment |  | — |  |  | 82 |  |  | 24 |
Consumer |  |  |  |  |  |
Consumer |  | — |  |  | 1,518 |  |  | 393 |
GFSC |  | — |  |  | 79 |  |  | 10 |
Check loans |  | — |  |  | — |  |  | — |
Leases |  | 914 |  |  | 274 |  |  | 43 |
Total loans |  | $ | 53,977 |  |  | $ | 18,745 |  |  | $ | 2,240 |
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, as of December 31, 2022 and December 31, 2021:
|  | December 31, 2022
(In thousands) |  | Real Estate |  | Business Assets |  | Other | Total
Commercial, financial and agricultural |  |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | 8,242 |  |  | $ | 7,788 |  |  | $ | 23,125 |  | $ | 39,155 |
Commercial real estate |  | 35,908 |  |  | 28 |  |  | — |  | 35,936 |
Construction real estate: |  |  |  |  |  |  |
Commercial |  | 2,372 |  |  | — |  |  | — |  | 2,372 |
Residential real estate: |  |  |  |  |  |  |
Commercial |  | 2,479 |  |  | — |  |  | — |  | 2,479 |
Mortgage |  | 90 |  |  | — |  |  | — |  | 90 |
Leases |  | — |  |  | 708 |  |  | — |  | 708 |
Total loans |  | $ | 49,091 |  |  | $ | 8,524 |  |  | $ | 23,125 |  | $ | 80,740 |
|  | December 31, 2021
(In thousands) |  | Real Estate |  | Business Assets |  | Other | Total
Commercial, financial and agricultural |  |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | 9,321 |  |  | $ | 13,366 |  |  | $ | 156 |  | $ | 22,843 |
Commercial real estate |  | 52,901 |  |  | 37 |  |  | — |  | 52,938 |
Construction real estate: |  |  |  |  |  |  |
Commercial |  | 1,178 |  |  | — |  |  | — |  | 1,178 |
Residential real estate: |  |  |  |  |  |  |
Commercial |  | 2,906 |  |  | — |  |  | 57 |  | 2,963 |
Mortgage |  | 370 |  |  | — |  |  | — |  | 370 |
HELOC |  | 148 |  |  | — |  |  | — |  | 148 |
Leases |  | — |  |  | 1,211 |  |  | — |  | 1,211 |
Total loans |  | $ | 66,824 |  |  | $ | 14,614 |  |  | $ | 213 |  | $ | 81,651 |
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 years ended December 31, 2022 and 2021:
| Interest Income Recognized
(In thousands) | December 31, 2022 |  | December 31, 2021
Commercial, financial and agricultural: |  |  |
Commercial, financial and agricultural | $ | 438 |  |  | $ | 180 |
PPP loans | — |  |  | — |
Overdrafts | — |  |  | — |
Commercial real estate | 956 |  |  | 1,844 |
Construction real estate: |  |  |
Commercial | 32 |  |  | 39 |
Retail | 13 |  |  | 4 |
Residential real estate: |  |  |
Commercial | 88 |  |  | 204 |
Mortgage | 157 |  |  | 301 |
HELOC | 16 |  |  | 17 |
Installment | 3 |  |  | 2 |
Consumer: |  |  |
Consumer | 54 |  |  | 92 |
GFSC | 5 |  |  | 14 |
Check loans |  |  |
Leases | 33 |  |  | 73 |
Total loans | $ | 1,795 |  |  | $ | 2,770 |
The following table presents the average recorded investment and interest income recognized subsequent to impairment on loans individually evaluated for impairment as of and for the year ended December 31, 2020:
|  | December 31, 2020 |
(In thousands) |  | Recorded Investment |  | Average Recorded Investment |  | Interest Income Recognized |
Commercial, financial and agricultural |  | $ | 28,836 |  |  | $ | 30,280 |  |  | $ | 735 |  |
Commercial real estate |  | 70,357 |  |  | 55,279 |  |  | 1,890 |  |
Construction real estate: |  |  |  |  |  |  |
Commercial |  | 3,110 |  |  | 1,291 |  |  | 50 |  |
Residential real estate: |  |  |  |  |  |  |
Commercial |  | 4,557 |  |  | 4,329 |  |  | 204 |  |
Consumer |  | — |  |  | — |  |  | — |  |
Leases |  | 1,595 |  |  | 1,115 |  |  | — |  |
Total |  | $ | 108,455 |  |  | $ | 92,294 |  |  | $ | 2,879 |  |
The following tables present the aging of the amortized cost in past due loans at December 31, 2022 and December 31, 2021 by class of loan:
| December 31, 2022
(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 | $ | 378 |  |  | $ | 9,246 |  |  | $ | 9,624 |  |  | $ | 1,285,614 |  |  | $ | 1,295,238 |
PPP loans | 155 |  |  | 389 |  |  | 544 |  |  | 3,662 |  |  | 4,206 |
Overdrafts | — |  |  | — |  |  | — |  |  | 1,489 |  |  | 1,489 |
Commercial real estate | 737 |  |  | 4,738 |  |  | 5,475 |  |  | 1,788,579 |  |  | 1,794,054 |
Construction real estate: |  |  |  |  |  |  |  |  |
Commercial | 751 |  |  | — |  |  | 751 |  |  | 208,231 |  |  | 208,982 |
Retail | 1,035 |  |  | 523 |  |  | 1,558 |  |  | 114,875 |  |  | 116,433 |
Residential real estate: |  |  |  |  |  |  |  |  |
Commercial | 519 |  |  | 477 |  |  | 996 |  |  | 549,187 |  |  | 550,183 |
Mortgage | 7,630 |  |  | 5,157 |  |  | 12,787 |  |  | 1,062,659 |  |  | 1,075,446 |
HELOC | 832 |  |  | 587 |  |  | 1,419 |  |  | 165,732 |  |  | 167,151 |
Installment | 57 |  |  | 4 |  |  | 61 |  |  | 4,030 |  |  | 4,091 |
Consumer: |  |  |  |  |  |  |  |  |
Consumer | 5,451 |  |  | 964 |  |  | 6,415 |  |  | 1,896,142 |  |  | 1,902,557 |
GFSC | 48 |  |  | — |  |  | 48 |  |  | 226 |  |  | 274 |
Check loans | 2 |  |  | — |  |  | 2 |  |  | 2,148 |  |  | 2,150 |
Leases | — |  |  | — |  |  | — |  |  | 19,637 |  |  | 19,637 |
Total loans | $ | 17,595 |  |  | $ | 22,085 |  |  | $ | 39,680 |  |  | $ | 7,102,211 |  |  | $ | 7,141,891 |
(1) Includes an aggregate of $1.3 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans. (2) Includes an aggregate of $58.9 million of nonaccrual loans which were current in regards to contractual principal and interest payments.
| December 31, 2021
(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 | $ | 2,908 |  |  | $ | 9,547 |  |  | $ | 12,455 |  |  | $ | 1,210,624 |  |  | $ | 1,223,079 |
PPP loans | 242 |  |  | 793 |  |  | 1,035 |  |  | 73,385 |  |  | 74,420 |
Overdrafts | — |  |  | — |  |  | — |  |  | 1,127 |  |  | 1,127 |
Commercial real estate | 65 |  |  | 1,461 |  |  | 1,526 |  |  | 1,800,266 |  |  | 1,801,792 |
Construction real estate: |  |  |  |  |  |  |  |  |
Commercial | — |  |  | — |  |  | — |  |  | 214,561 |  |  | 214,561 |
Mortgage | 346 |  |  | 660 |  |  | 1,006 |  |  | 106,219 |  |  | 107,225 |
Residential real estate: |  |  |  |  |  |  |  |  |
Commercial | 283 |  |  | 438 |  |  | 721 |  |  | 533,081 |  |  | 533,802 |
Mortgage | 6,170 |  |  | 5,933 |  |  | 12,103 |  |  | 1,021,555 |  |  | 1,033,658 |
HELOC | 565 |  |  | 1,011 |  |  | 1,576 |  |  | 164,029 |  |  | 165,605 |
Installment | 49 |  |  | 31 |  |  | 80 |  |  | 5,562 |  |  | 5,642 |
Consumer |  |  |  |  |  |  |  |  |
Consumer | 2,614 |  |  | 618 |  |  | 3,232 |  |  | 1,682,561 |  |  | 1,685,793 |
GFSC | 153 |  |  | 52 |  |  | 205 |  |  | 1,588 |  |  | 1,793 |
Check loans | 10 |  |  | — |  |  | 10 |  |  | 2,083 |  |  | 2,093 |
Leases | 60 |  |  | 526 |  |  | 586 |  |  | 19,946 |  |  | 20,532 |
Total loans | $ | 13,465 |  |  | $ | 21,070 |  |  | $ | 34,535 |  |  | $ | 6,836,587 |  |  | $ | 6,871,122 |
(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 $53.3 million of nonaccrual loans which were current in regards 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 December 31, 2022 and December 31, 2021 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, GFSC 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 an 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 deficiencies 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 a specific 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 loan is deemed impaired, 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 loans by class of loans as of December 31, 2022 and December 31, 2021 were as follows:
December 31, 2022 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Total
Commercial, financial and agricultural: Commercial, financial and agricultural (1) |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 197,497 |  | $ | 198,999 |  | $ | 142,487 |  | $ | 60,845 |  | $ | 32,887 |  | $ | 47,135 |  | $ | 546,237 |  | $ | 1,226,087 |
Special Mention | 700 |  | 313 |  | 918 |  | 315 |  | 4 |  | 35 |  | 25,536 |  | 27,821 |
Substandard | 1,101 |  | 18 |  | 2,737 |  | 226 |  | 1,836 |  | 8,424 |  | 26,464 |  | 40,806 |
Doubtful | — |  | — |  | 3 |  | 77 |  | 80 |  | 172 |  | 192 |  | 524 |
Total | $ | 199,298 |  | $ | 199,330 |  | $ | 146,145 |  | $ | 61,463 |  | $ | 34,807 |  | $ | 55,766 |  | $ | 598,429 |  | $ | 1,295,238 |
Commercial, financial and agricultural: PPP |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | — |  | $ | 1,875 |  | $ | 2,331 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 4,206 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | — |  | $ | 1,875 |  | $ | 2,331 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 4,206 |
Commercial real estate (1) |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 323,235 |  | $ | 374,763 |  | $ | 372,653 |  | $ | 220,072 |  | $ | 107,467 |  | $ | 305,539 |  | $ | 14,052 |  | $ | 1,717,781 |
Special Mention | 199 |  | 3,256 |  | 3,388 |  | 5,863 |  | 16,059 |  | 22,220 |  | 150 |  | 51,135 |
Substandard | 7,856 |  | 1,427 |  | 3,007 |  | 3,561 |  | 856 |  | 5,471 |  | 428 |  | 22,606 |
Doubtful | — |  | — |  | — |  | — |  | 1,941 |  | 591 |  | — |  | 2,532 |
Total | $ | 331,290 |  | $ | 379,446 |  | $ | 379,048 |  | $ | 229,496 |  | $ | 126,323 |  | $ | 333,821 |  | $ | 14,630 |  | $ | 1,794,054 |
Construction real estate: Commercial |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 107,976 |  | $ | 40,534 |  | $ | 21,556 |  | $ | 2,686 |  | $ | 1,428 |  | $ | 3,015 |  | $ | 29,183 |  | $ | 206,378 |
Special Mention | — |  | — |  | 232 |  | — |  | — |  | — |  | — |  | 232 |
Substandard | 652 |  | 800 |  | 260 |  | — |  | 660 |  | — |  | — |  | 2,372 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 108,628 |  | $ | 41,334 |  | $ | 22,048 |  | $ | 2,686 |  | $ | 2,088 |  | $ | 3,015 |  | $ | 29,183 |  | $ | 208,982 |
Residential Real Estate: Commercial |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 107,086 |  | $ | 120,303 |  | $ | 147,802 |  | $ | 56,980 |  | $ | 33,140 |  | $ | 63,499 |  | $ | 15,191 |  | $ | 544,001 |
Special Mention | — |  | 92 |  | 1,477 |  | 440 |  | — |  | 1,625 |  | — |  | 3,634 |
Substandard | 610 |  | 449 |  | 264 |  | 29 |  | 304 |  | 553 |  | 339 |  | 2,548 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 107,696 |  | $ | 120,844 |  | $ | 149,543 |  | $ | 57,449 |  | $ | 33,444 |  | $ | 65,677 |  | $ | 15,530 |  | $ | 550,183 |
Leases |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 7,629 |  | $ | 3,310 |  | $ | 3,347 |  | $ | 1,167 |  | $ | 981 |  | $ | 605 |  | $ | — |  | $ | 17,039 |
Special Mention | 1,085 |  | 614 |  | 130 |  | 60 |  | — |  | — |  | — |  | 1,889 |
Substandard | — |  | — |  | 464 |  | 111 |  | 12 |  | 26 |  | — |  | 613 |
Doubtful | — |  | — |  | — |  | 96 |  | — |  | — |  | — |  | 96 |
Total | $ | 8,714 |  | $ | 3,924 |  | $ | 3,941 |  | $ | 1,434 |  | $ | 993 |  | $ | 631 |  | $ | — |  | $ | 19,637 |
December 31, 2022 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Total
Total Commercial Loans |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 743,423 |  | $ | 739,784 |  | $ | 690,176 |  | $ | 341,750 |  | $ | 175,903 |  | $ | 419,793 |  | $ | 604,663 |  | $ | 3,715,492 |
Special Mention | 1,984 |  | 4,275 |  | 6,145 |  | 6,678 |  | 16,063 |  | 23,880 |  | 25,686 |  | 84,711 |
Substandard | 10,219 |  | 2,694 |  | 6,732 |  | 3,927 |  | 3,668 |  | 14,474 |  | 27,231 |  | 68,945 |
Doubtful | — |  | — |  | 3 |  | 173 |  | 2,021 |  | 763 |  | 192 |  | 3,152 |
Total | $ | 755,626 |  | $ | 746,753 |  | $ | 703,056 |  | $ | 352,528 |  | $ | 197,655 |  | $ | 458,910 |  | $ | 657,772 |  | $ | 3,872,300 |
(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, 2021 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Total
Commercial, financial and agricultural: Commercial, financial and agricultural (1) |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 267,016 |  | $ | 208,078 |  | $ | 100,736 |  | $ | 52,705 |  | $ | 36,528 |  | $ | 59,909 |  | $ | 468,749 |  | $ | 1,193,721 |
Special Mention | 1,608 |  | 1,592 |  | 429 |  | 59 |  | 277 |  | — |  | 11,986 |  | 15,951 |
Substandard | 106 |  | 906 |  | 401 |  | 1,345 |  | 549 |  | 7,818 |  | 484 |  | 11,609 |
Doubtful | — |  | 30 |  | 465 |  | 227 |  | 463 |  | 125 |  | 488 |  | 1,798 |
Total | $ | 268,730 |  | $ | 210,606 |  | $ | 102,031 |  | $ | 54,336 |  | $ | 37,817 |  | $ | 67,852 |  | $ | 481,707 |  | $ | 1,223,079 |
Commercial, financial and agricultural: PPP |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 69,588 |  | $ | 4,832 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 74,420 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 69,588 |  | $ | 4,832 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 74,420 |
Commercial real estate (1) |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 376,468 |  | $ | 445,780 |  | $ | 263,786 |  | $ | 154,637 |  | $ | 115,571 |  | $ | 317,371 |  | $ | 14,890 |  | $ | 1,688,503 |
Special Mention | 786 |  | 6,206 |  | 32,965 |  | 9,354 |  | 4,297 |  | 17,829 |  | 996 |  | 72,433 |
Substandard | 3,897 |  | 2,578 |  | 1,385 |  | 11,373 |  | 5,967 |  | 14,541 |  | 450 |  | 40,191 |
Doubtful | — |  | — |  | — |  | — |  | 47 |  | 618 |  | — |  | 665 |
Total | $ | 381,151 |  | $ | 454,564 |  | $ | 298,136 |  | $ | 175,364 |  | $ | 125,882 |  | $ | 350,359 |  | $ | 16,336 |  | $ | 1,801,792 |
Construction real estate: Commercial |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 96,929 |  | $ | 76,867 |  | $ | 7,003 |  | $ | 4,841 |  | $ | 1,856 |  | $ | 3,412 |  | $ | 22,444 |  | $ | 213,352 |
Special Mention | 202 |  | — |  | — |  | 691 |  | — |  | — |  | — |  | 893 |
Substandard | — |  | 52 |  | — |  | 264 |  | — |  | — |  | — |  | 316 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 97,131 |  | $ | 76,919 |  | $ | 7,003 |  | $ | 5,796 |  | $ | 1,856 |  | $ | 3,412 |  | $ | 22,444 |  | $ | 214,561 |
Residential Real Estate: Commercial |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 138,801 |  | $ | 165,202 |  | $ | 67,921 |  | $ | 44,896 |  | $ | 26,583 |  | $ | 70,434 |  | $ | 15,507 |  | $ | 529,344 |
Special Mention | 95 |  | 884 |  | 106 |  | 79 |  | — |  | 497 |  | 135 |  | 1,796 |
Substandard | 735 |  | 22 |  | 691 |  | 41 |  | 95 |  | 993 |  | 29 |  | 2,606 |
Doubtful | 56 |  | — |  | — |  | — |  | — |  | — |  | — |  | 56 |
Total | $ | 139,687 |  | $ | 166,108 |  | $ | 68,718 |  | $ | 45,016 |  | $ | 26,678 |  | $ | 71,924 |  | $ | 15,671 |  | $ | 533,802 |
December 31, 2021 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Total
Leases |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 6,705 |  | $ | 5,729 |  | $ | 2,628 |  | $ | 2,151 |  | $ | 705 |  | $ | 845 |  | $ | — |  | $ | 18,763 |
Special Mention | 198 |  | 111 |  | 184 |  | 67 |  | 21 |  | — |  | — |  | 581 |
Substandard | — |  | 698 |  | — |  | 23 |  | 19 |  | 78 |  | — |  | 818 |
Doubtful | — |  | — |  | 332 |  | 16 |  | 22 |  | — |  | — |  | 370 |
Total | $ | 6,903 |  | $ | 6,538 |  | $ | 3,144 |  | $ | 2,257 |  | $ | 767 |  | $ | 923 |  | $ | — |  | $ | 20,532 |
Total Commercial Loans |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 955,507 |  | $ | 906,488 |  | $ | 442,074 |  | $ | 259,230 |  | $ | 181,243 |  | $ | 451,971 |  | $ | 521,590 |  | $ | 3,718,103 |
Special Mention | 2,889 |  | 8,793 |  | 33,684 |  | 10,250 |  | 4,595 |  | 18,326 |  | 13,117 |  | 91,654 |
Substandard | 4,738 |  | 4,256 |  | 2,477 |  | 13,046 |  | 6,630 |  | 23,430 |  | 963 |  | 55,540 |
Doubtful | 56 |  | 30 |  | 797 |  | 243 |  | 532 |  | 743 |  | 488 |  | 2,889 |
Total | $ | 963,190 |  | $ | 919,567 |  | $ | 479,032 |  | $ | 282,769 |  | $ | 193,000 |  | $ | 494,470 |  | $ | 536,158 |  | $ | 3,868,186 |
(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. Park defines a loan as nonperforming if it is on nonaccrual status, designated as an accruing TDR, or is greater than 90 days past due and accruing.
December 31, 2022 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Total
Commercial, financial and agricultural: Overdrafts |  |  |  |  |  |
Performing | $ | 1,489 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 1,489 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 1,489 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 1,489 |
Construction Real Estate: Retail |  |  |  |  |  |
Performing | $ | 71,923 |  | $ | 26,134 |  | $ | 8,218 |  | $ | 4,619 |  | $ | 1,618 |  | $ | 2,580 |  | $ | 75 |  | $ | 115,167 |
Nonperforming | 731 |  | — |  | 523 |  | — |  | — |  | 12 |  | — |  | 1,266 |
Total | $ | 72,654 |  | $ | 26,134 |  | $ | 8,741 |  | $ | 4,619 |  | $ | 1,618 |  | $ | 2,592 |  | $ | 75 |  | $ | 116,433 |
Residential Real Estate: Mortgage |  |  |  |  |  |
Performing | $ | 207,093 |  | $ | 227,131 |  | $ | 192,904 |  | $ | 90,014 |  | $ | 55,648 |  | $ | 286,464 |  | $ | — |  | $ | 1,059,254 |
Nonperforming | — |  | — |  | 700 |  | 650 |  | 518 |  | 14,324 |  | — |  | 16,192 |
Total | $ | 207,093 |  | $ | 227,131 |  | $ | 193,604 |  | $ | 90,664 |  | $ | 56,166 |  | $ | 300,788 |  | $ | — |  | $ | 1,075,446 |
Residential Real Estate: HELOC |  |  |  |  |  |
Performing | $ | 140 |  | $ | 299 |  | $ | 23 |  | $ | 130 |  | $ | 141 |  | $ | 1,957 |  | $ | 163,134 |  | $ | 165,824 |
Nonperforming | — |  | — |  | 43 |  | 100 |  | — |  | 999 |  | 185 |  | 1,327 |
Total | $ | 140 |  | $ | 299 |  | $ | 66 |  | $ | 230 |  | $ | 141 |  | $ | 2,956 |  | $ | 163,319 |  | $ | 167,151 |
Residential Real Estate: Installment |  |  |  |  |  |
Performing | $ | 187 |  | $ | — |  | $ | 1 |  | $ | 241 |  | $ | 62 |  | $ | 2,512 |  | $ | — |  | $ | 3,003 |
Nonperforming | — |  | — |  | 7 |  | 2 |  | 16 |  | 1,063 |  | — |  | 1,088 |
Total | $ | 187 |  | $ | — |  | $ | 8 |  | $ | 243 |  | $ | 78 |  | $ | 3,575 |  | $ | — |  | $ | 4,091 |
December 31, 2022 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Total
Consumer: Consumer |  |  |  |  |  |  |  |
Performing | $ | 823,484 |  | $ | 462,014 |  | $ | 333,336 |  | $ | 150,237 |  | $ | 61,174 |  | $ | 65,612 |  | $ | 4,315 |  | $ | 1,900,172 |
Nonperforming | 440 |  | 489 |  | 424 |  | 355 |  | 157 |  | 520 |  | — |  | 2,385 |
Total | $ | 823,924 |  | $ | 462,503 |  | $ | 333,760 |  | $ | 150,592 |  | $ | 61,331 |  | $ | 66,132 |  | $ | 4,315 |  | $ | 1,902,557 |
Consumer: GFSC |  |  |  |  |  |  |  |
Performing | $ | — |  | $ | — |  | $ | 55 |  | $ | 111 |  | $ | 45 |  | $ | 2 |  | $ | 51 |  | $ | 264 |
Nonperforming | — |  | — |  | — |  | 10 |  | — |  | — |  | — |  | 10 |
Total | $ | — |  | $ | — |  | $ | 55 |  | $ | 121 |  | $ | 45 |  | $ | 2 |  | $ | 51 |  | $ | 274 |
Consumer: Check loans |  |  |  |  |  |  |  |
Performing | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,150 |  | $ | 2,150 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,150 |  | $ | 2,150 |
Total Consumer Loans |  |  |  |  |  |  |  |
Performing | $ | 1,104,316 |  | $ | 715,578 |  | $ | 534,537 |  | $ | 245,352 |  | $ | 118,688 |  | $ | 359,127 |  | $ | 169,725 |  | $ | 3,247,323 |
Nonperforming | 1,171 |  | 489 |  | 1,697 |  | 1,117 |  | 691 |  | 16,918 |  | 185 |  | 22,268 |
Total | $ | 1,105,487 |  | $ | 716,067 |  | $ | 536,234 |  | $ | 246,469 |  | $ | 119,379 |  | $ | 376,045 |  | $ | 169,910 |  | $ | 3,269,591 |
December 31, 2021 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Total
Commercial, financial and agricultural: Overdrafts |  |  |  |  |  |
Performing | $ | 1,127 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 1,127 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 1,127 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 1,127 |
Construction Real Estate: Retail |  |  |  |  |  |
Performing | $ | 68,374 |  | $ | 26,247 |  | $ | 5,710 |  | $ | 2,743 |  | $ | 1,505 |  | $ | 1,842 |  | $ | 79 |  | $ | 106,500 |
Nonperforming | — |  | 647 |  | 57 |  | — |  | — |  | 21 |  | — |  | 725 |
Total | $ | 68,374 |  | $ | 26,894 |  | $ | 5,767 |  | $ | 2,743 |  | $ | 1,505 |  | $ | 1,863 |  | $ | 79 |  | $ | 107,225 |
Residential Real Estate: Mortgage |  |  |  |  |  |
Performing | $ | 230,299 |  | $ | 217,022 |  | $ | 114,077 |  | $ | 68,774 |  | $ | 59,939 |  | $ | 323,678 |  | $ | — |  | $ | 1,013,789 |
Nonperforming | — |  | 626 |  | 785 |  | 824 |  | 574 |  | 17,060 |  | — |  | 19,869 |
Total | $ | 230,299 |  | $ | 217,648 |  | $ | 114,862 |  | $ | 69,598 |  | $ | 60,513 |  | $ | 340,738 |  | $ | — |  | $ | 1,033,658 |
Residential Real Estate: HELOC |  |  |  |  |  |
Performing | $ | 400 |  | $ | — |  | $ | 121 |  | $ | 58 |  | $ | 41 |  | $ | 2,640 |  | $ | 159,952 |  | $ | 163,212 |
Nonperforming | 89 |  | 40 |  | — |  | 37 |  | 90 |  | 1,811 |  | 326 |  | 2,393 |
Total | $ | 489 |  | $ | 40 |  | $ | 121 |  | $ | 95 |  | $ | 131 |  | $ | 4,451 |  | $ | 160,278 |  | $ | 165,605 |
Residential Real Estate: Installment |  |  |  |  |  |
Performing | $ | — |  | $ | 3 |  | $ | 418 |  | $ | 111 |  | $ | 1,049 |  | $ | 2,471 |  | $ | — |  | $ | 4,052 |
Nonperforming | — |  | 12 |  | 5 |  | 26 |  | 78 |  | 1,469 |  | — |  | 1,590 |
Total | $ | — |  | $ | 15 |  | $ | 423 |  | $ | 137 |  | $ | 1,127 |  | $ | 3,940 |  | $ | — |  | $ | 5,642 |
Consumer: Consumer |  |  |  |  |  |  |  |
Performing | $ | 649,638 |  | $ | 505,555 |  | $ | 259,230 |  | $ | 119,222 |  | $ | 64,699 |  | $ | 62,136 |  | $ | 22,664 |  | $ | 1,683,144 |
Nonperforming | 241 |  | 506 |  | 755 |  | 399 |  | 155 |  | 593 |  | — |  | 2,649 |
Total | $ | 649,879 |  | $ | 506,061 |  | $ | 259,985 |  | $ | 119,621 |  | $ | 64,854 |  | $ | 62,729 |  | $ | 22,664 |  | $ | 1,685,793 |
December 31, 2021 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Total
Consumer: GFSC |  |  |  |  |  |  |  |
Performing | $ | — |  | $ | 243 |  | $ | 986 |  | $ | 292 |  | $ | 63 |  | $ | 5 |  | $ | 108 |  | $ | 1,697 |
Nonperforming | — |  | 9 |  | 73 |  | 5 |  | 9 |  | — |  | — |  | 96 |
Total | $ | — |  | $ | 252 |  | $ | 1,059 |  | $ | 297 |  | $ | 72 |  | $ | 5 |  | $ | 108 |  | $ | 1,793 |
Consumer: Check loans |  |  |  |  |  |  |  |
Performing | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,093 |  | $ | 2,093 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,093 |  | $ | 2,093 |
Total Consumer Loans |  |  |  |  |  |  |  |
Performing | $ | 949,838 |  | $ | 749,070 |  | $ | 380,542 |  | $ | 191,200 |  | $ | 127,296 |  | $ | 392,772 |  | $ | 184,896 |  | $ | 2,975,614 |
Nonperforming | 330 |  | 1,840 |  | 1,675 |  | 1,291 |  | 906 |  | 20,954 |  | 326 |  | 27,322 |
Total | $ | 950,168 |  | $ | 750,910 |  | $ | 382,217 |  | $ | 192,491 |  | $ | 128,202 |  | $ | 413,726 |  | $ | 185,222 |  | $ | 3,002,936 |
Loans and Leases Acquired with Deteriorated Credit Quality In conjunction with the NewDominion acquisition, Park acquired loans with a book value of $277.9 million as of the July 1, 2018 acquisition date. These loans were recorded at the initial fair value of $272.8 million. NewDominion loans acquired with deteriorated credit quality (ASC 310-30) with a book value of $5.1 million were recorded at the initial fair value of $4.9 million. In conjunction with the Carolina Alliance acquisition, Park acquired loans and leases with a book value of $589.7 million as of the April 1, 2019 acquisition date. Carolina Alliance loans and leases were recorded at the initial fair value of $578.6 million. Loans and leases acquired with deteriorated credit quality (ASC 310-30) with a book value of $19.9 million were recorded at the initial fair value of $18.4 million. Upon adoption of CECL on January 1, 2021, $52,000 of the credit discount on PCD loans was reclassified to the allowance for credit losses. PCD loans are individually evaluated on a quarterly basis to determine if a specific reserve is necessary. At each of December 31, 2022 and December 31, 2021, there was no allowance for credit losses on PCD loans. The carrying amount of loans acquired with deteriorated credit quality at December 31, 2022 and December 31, 2021 was $4.7 million and $7.1 million, respectively. Troubled Debt Restructurings Management typically classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession to the borrower 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. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. A court's discharge of a borrower's debt in a Chapter 7 bankruptcy is considered a concession when the borrower does not reaffirm the discharged debt. In response to the COVID-19 pandemic, Park worked with borrowers and provided modifications in the form of either interest only deferral or principal and interest deferral, in each case, for initial periods of up to 90 days. As necessary, Park made available a second 90-day interest only deferral or principal and interest deferral bringing the total potential deferral period to six months. Modifications were structured in a manner to best address each individual customer's then current situation. A majority of these modifications were excluded from the TDR classification under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators. The modified loans were considered current and continued to accrue interest during the deferral period. Section 4013 of the CARES Act expired on December 31, 2021; therefore, modifications occurring after that date are subject to previous TDR classification guidance. As of December 31, 2022, there were no loans which were still within the COVID-19 deferral period. Certain loans which were modified during the years ended December 31, 2022 and 2021 did not meet the definition of a TDR as the modification was a delay in a payment that was considered to be insignificant. Management considers a forbearance period of up to three months or a delay in payment of up to 30 days to be insignificant. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. Management reviews all accruing TDRs quarterly to ensure payments continue to be made in accordance with the modified terms. There were $29.6 million of substandard commercial loans modified during the year ended December 31, 2022 that did not meet the definition of a TDR. Excluding COVID-19 related modifications, there were $0.2 million of substandard commercial loans modified during the year ended December 31, 2021 that did not meet the definition of a TDR. Consumer loans modified during 2022, which did not meet the definition of a TDR, had a total amortized cost at December 31, 2022 of $41.7 million. Excluding COVID-19 related modifications, consumer loans modified during 2021, which did not meet the definition of a TDR, had a total amortized cost at December 31, 2021 of $32.9 million. Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds. At December 31, 2022 and 2021, there were $17.5 million and $20.9 million, respectively, of TDRs included in the nonaccrual loan totals. At December 31, 2022 and 2021, $7.5 million and $10.5 million, respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured notes. At December 31, 2022 and 2021, loans totaling $20.1 million and $28.3 million, respectively, were included in accruing TDR loan totals. Management will continue to review the restructured loans and may determine it is appropriate to move certain nonaccrual TDRs to accrual status in the future. At December 31, 2022 and 2021, Park had commitments to lend $1.6 million and $3.0 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR. At December 31, 2022 and 2021, there were $2.2 million and $0.3 million, respectively, of specific reserves related to TDRs. Modifications made in 2022 and 2021 were largely the result of renewals and extending the maturity date of the loans at terms consistent with the original notes. These modifications were deemed to be TDRs primarily due to Park’s conclusion that the borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as individually evaluated loans, and thus were also previously evaluated for impairment under ASC 310. Additional specific reserves of $0.9 million were recorded during the year ended December 31, 2022, as a result of TDRs identified in the 2022 year. Additional specific reserves of $0.2 million were recorded during the year ended December 31, 2021, as a result of TDRs identified in the 2021 year. Additional specific reserves of $7,000 were recorded during the year ended December 31, 2020, as a result of TDRs identified in the 2020 year. Quarterly, management reviews renewals/modifications of loans previously identified as TDRs to consider if it is appropriate to remove the TDR classification. If the borrower is no longer experiencing financial difficulty and the renewal/modification did not contain a concessionary interest rate or other concessionary terms and the terms of the renewal/modification are considered to be market terms based on the current risk characteristics of the borrower, management considers the potential removal of the TDR classification. If deemed appropriate, the TDR classification is removed if the borrower has complied with the terms of the loan at the date of the renewal/modification and there was a reasonable expectation that the borrower will continue to comply with the terms of the loan subsequent to the date of the renewal/modification. The majority of these TDRs were originally considered restructurings in a prior year as a result of a renewal/modification with an interest rate that was not commensurate with the risk of the underlying loan at the time of the renewal/modification. During the years ended December 31, 2022 and 2021, Park removed the TDR classification on $1.0 million and $4.1 million, respectively, of loans that met the requirements discussed above. The following tables detail the number of contracts modified as TDRs during the years ended December 31, 2022, 2021 and 2020 as well as the amortized cost/ recorded investment of these contracts at December 31, 2022, 2021, and 2020. The amortized cost/ recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal.
|  | Year ended December 31, 2022
(In thousands) |  | Number of Contracts |  | Accruing |  | Nonaccrual |  | Amortized Cost
Commercial, financial and agricultural |  |  |  |  |  |  |  |
Commercial, financial and agricultural |  | 12 |  | $ | 2,254 |  |  | $ | 3,484 |  |  | $ | 5,738 |
PPP loans |  | — |  |  | — |  |  | — |  |  | — |
Overdrafts |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate |  | 9 |  |  | 1,040 |  |  | 813 |  |  | 1,853 |
Construction real estate: |  |  |  |  |  |  |  |
Commercial |  | 1 |  |  | — |  |  | 41 |  |  | 41 |
Retail |  | 1 |  |  | — |  |  | — |  |  | — |
Residential real estate: |  |  |  |  |  |  |  |
Commercial |  | 4 |  |  | 21 |  |  | 274 |  |  | 295 |
Mortgage |  | 15 |  |  | 865 |  |  | 368 |  |  | 1,233 |
HELOC |  | 3 |  |  | — |  |  | 11 |  |  | 11 |
Installment |  | 12 |  |  | 141 |  |  | 27 |  |  | 168 |
Consumer: |  |  |  |  |  |  |  |
Consumer |  | 89 |  |  | 196 |  |  | 359 |  |  | 555 |
GFSC |  | — |  |  | — |  |  | — |  |  | — |
Check loans |  | — |  |  | — |  |  | — |  |  | — |
Leases |  | 10 |  |  | — |  |  | 101 |  |  | 101 |
Total loans |  | 156 |  | $ | 4,517 |  |  | $ | 5,478 |  |  | $ | 9,995 |
|  | Year ended December 31, 2021
(In thousands) |  | Number of Contracts |  | Accruing |  | Nonaccrual |  | Amortized Cost
Commercial, financial and agricultural |  |  |  |  |  |  |  |
Commercial, financial and agricultural |  | 10 |  |  | $ | 1,356 |  |  | $ | 169 |  |  | $ | 1,525 |
PPP loans |  | — |  | — |  |  | — |  |  | — |
Overdrafts |  | — |  | — |  |  | — |  |  | — |
Commercial real estate |  | 15 |  | 2,002 |  |  | 6,747 |  |  | 8,749 |
Construction real estate: |  |  |  |  |  |  |  |
Commercial |  | 1 |  |  | — |  |  | — |  |  | — |
Retail |  | 2 |  |  | — |  |  | 705 |  |  | 705 |
Residential real estate: |  |  |  |  |  |  |  |
Commercial |  | 5 |  | 95 |  |  | 574 |  |  | 669 |
Mortgage |  | 14 |  | 146 |  |  | 396 |  |  | 542 |
HELOC |  | 8 |  | 211 |  |  | 105 |  |  | 316 |
Installment |  | 8 |  | 120 |  |  | — |  |  | 120 |
Consumer: |  |  |  |  |  |  |  |
Consumer |  | 131 |  | 116 |  |  | 417 |  |  | 533 |
GFSC |  | — |  | — |  |  | — |  |  | — |
Check loans |  | — |  | — |  |  | — |  |  | — |
Leases |  | 1 |  | — |  |  | 325 |  |  | 325 |
Total loans |  | 195 |  | $ | 4,046 |  |  | $ | 9,438 |  |  | $ | 13,484 |
|  | Year ended December 31, 2020
(In thousands) |  | Number of Contracts |  | Accruing |  | Nonaccrual |  | Recorded Investment
Commercial, financial and agricultural |  | 12 |  | $ | 107 |  |  | $ | 3,706 |  |  | $ | 3,813 |
Commercial real estate |  | 9 |  | — |  |  | 3,235 |  |  | 3,235 |
Construction real estate: |  |  |  |  |  |  |  |
Commercial |  | — |  | — |  |  | — |  |  | — |
Mortgage |  | 1 |  |  | 26 |  |  | — |  |  | 26 |
Installment |  | 1 |  |  | — |  |  | 14 |  |  | 14 |
Residential real estate: |  |  |  |  |  |  |  |
Commercial |  | 3 |  | 153 |  |  | 3 |  |  | 156 |
Mortgage |  | 27 |  | 888 |  |  | 1,068 |  |  | 1,956 |
HELOC |  | 7 |  | 14 |  |  | 52 |  |  | 66 |
Installment |  | 18 |  | 163 |  |  | 65 |  |  | 228 |
Consumer |  | 214 |  | 218 |  |  | 634 |  |  | 852 |
Total loans |  | 292 |  | $ | 1,569 |  |  | $ | 8,777 |  |  | $ | 10,346 |
Of those loans which were modified and determined to be a TDR during the year ended December 31, 2022, $1.0 million were on nonaccrual status as of December 31, 2021. Of those loans which were modified and determined to be a TDR during the year ended December 31, 2021, $5.4 million were on nonaccrual status as of December 31, 2020. Of those loans which were modified and determined to be a TDR during the year ended December 31, 2020, $0.4 million were on nonaccrual status as of December 31, 2019. The following table presents the amortized cost/ recorded investment in financing receivables which were modified as TDRs within the previous 12 months and for which there was a payment default during the year ended December 31, 2022, December 31, 2021, and December 31, 2020. For this table, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms. The additional allowance for credit loss resulting from the defaults on TDR loans was immaterial.
|  | Year ended December 31, 2022 |  | Year ended December 31, 2021 |  | Year ended December 31, 2020
(In thousands) |  | Number of Contracts |  | Amortized Cost |  | Number of Contracts |  | Amortized Cost |  | Number of Contracts |  | Recorded Investment
Commercial, financial and agricultural: |  |  |  |  |  |  |  |  |  | 4 |  |  | $ | 2,776 |
Commercial, financial and agricultural |  | 5 |  |  | $ | 2,091 |  |  | — |  |  | $ | — |  |  | (1) |  | (1)
PPP loans |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |  | (1)
Overdrafts |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |  | (1)
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 223 |
Construction real estate: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Retail |  | — |  |  | — |  |  | 1 |  |  | 648 |  |  | 1 |  |  | 14 |
Residential real estate: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 1 |  |  | 93 |  |  | — |  |  | — |  |  | 1 |  |  | 3 |
Mortgage |  | 4 |  |  | 154 |  |  | 4 |  |  | 280 |  |  | 11 |  |  | 993 |
HELOC |  | 1 |  |  | 10 |  |  | 2 |  |  | 135 |  |  | — |  |  | — |
Installment |  | — |  |  | — |  |  | 1 |  |  | 27 |  |  | 3 |  |  | 32 |
Consumer |  |  |  |  |  |  |  |  |  | 34 |  |  | 360 |
Consumer |  | 19 |  |  | 174 |  |  | 14 |  |  | 169 |  |  | (1) |  | (1)
GFSC |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |  | (1)
Check loans |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |  | (1)
Leases |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total loans |  | 30 |  |  | $ | 2,522 |  |  | 22 |  |  | $ | 1,259 |  |  | 55 |  |  | $ | 4,401 |
(1) Results for reporting periods beginning after January 1, 2021 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. Category was not broken out as a separate class at December 31, 2020. Of the $2.5 million in modified TDRs which defaulted during the year ended December 31, 2022, $2.0 million were accruing loans and $0.5 million were nonaccrual loans. Of the $1.3 million in modified TDRs which defaulted during the year ended December 31, 2021, $115,000 were accruing loans and $1.1 million were nonaccrual loans. Of the $4.4 million in modified TDRs which defaulted during the year ended December 31, 2020, $706,000 were accruing loans and $3.7 million were nonaccrual loans. Certain of the Corporation’s executive officers, directors and related entities of directors are loan customers of PNB. As of December 31, 2022 and 2021, credit exposure aggregating approximately $37.3 million and $33.5 million, respectively, was outstanding to such parties. Of this total exposure, approximately $28.4 million and $27.1 million was outstanding at December 31, 2022 and 2021, respectively, with the remaining balance representing available credit. During 2022, new loans and advances on existing loans were made to these executive officers, directors and related entities of directors totaling $6.1 million and $1.2 million, respectively. These extensions of credit were offset by aggregate principal payments of $6.0 million. During 2021, new loans and advances on existing loans were $1.2 million and $9.7 million, respectively. These extensions of credit were offset by aggregate principal payments of $12.6 million and the removal of loans from the related party listing totaling $3.2 million.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 + Details
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