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Loans | 9 Months Ended
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Sep. 30, 2023 | Sep. 30, 2022
Loans and Leases Receivable Disclosure [Abstract] |  |
Loans | The following tables present the amortized cost basis of loans at September 30, 2023 that were both experiencing financial difficulty and modified during the three months and the nine months ended September 30, 2023 by class of and by 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 September 30, 2023
(Dollars in thousands) |  | Principal Forgiveness |  | Payment Delay |  | Term Extension |  | Interest Rate Adjustment |  | Combination Term Extension and Interest Rate Adjustment |  | Other |  | Total |  | Percent of Total Class of Financing Receivable
Commercial, financial and agricultural: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | — |  |  | $ | — |  |  | $ | 1,920 |  |  | $ | 387 |  |  | $ | 2,568 |  |  | $ | — |  |  | $ | 4,875 |  |  | 0.38 | %
PPP loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Overdrafts |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Commercial real estate |  | — |  |  | — |  |  | 366 |  |  | — |  |  | 511 |  |  | — |  |  | 877 |  |  | 0.05 | %
Construction real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | — |  |  | — |  |  | 228 |  |  | — |  |  | 637 |  |  | — |  |  | 865 |  |  | 0.47 | %
Retail |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Residential real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | — |  |  | — |  |  | — |  |  | — |  |  | 147 |  |  | — |  |  | 147 |  |  | 0.03 | %
Mortgage |  | — |  |  | — |  |  | — |  |  | — |  |  | 95 |  |  | — |  |  | 95 |  |  | 0.01 | %
HELOC |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Installment |  | — |  |  | — |  |  | 174 |  |  | — |  |  | 121 |  |  | — |  |  | 295 |  |  | 5.57 | %
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | — |  |  | — |  |  | — |  |  | 22 |  |  | — |  |  | — |  |  | 22 |  |  | — | %
Check loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Leases |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Total |  | $ | — |  |  | $ | — |  |  | $ | 2,688 |  |  | $ | 409 |  |  | $ | 4,079 |  |  | $ | — |  |  | $ | 7,176 |  |  | 0.10 | %
|  | Nine Months Ended September 30, 2023
(Dollars in thousands) |  | Principal Forgiveness |  | Payment Delay |  | Term Extension |  | Interest Rate Adjustment |  | Combination Term Extension and Interest Rate Adjustment |  | Other |  | Total |  | Percent of Total Class of Financing Receivable
Commercial, financial and agricultural: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | — |  |  | $ | — |  |  | $ | 452 |  |  | $ | 387 |  |  | $ | 11,312 |  |  | $ | 11 |  |  | $ | 12,162 |  |  | 0.95 | %
PPP loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Overdrafts |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Commercial real estate |  | — |  |  | — |  |  | 1,366 |  |  | — |  |  | 511 |  |  | — |  |  | 1,877 |  |  | 0.10 | %
Construction real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | — |  |  | — |  |  | 228 |  |  | — |  |  | 637 |  |  | — |  |  | 865 |  |  | 0.47 | %
Retail |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Residential real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | — |  |  | — |  |  | — |  |  | — |  |  | 158 |  |  | — |  |  | 158 |  |  | 0.03 | %
Mortgage |  | — |  |  | — |  |  | — |  |  | — |  |  | 229 |  |  | — |  |  | 229 |  |  | 0.02 | %
HELOC |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Installment |  | — |  |  | — |  |  | 178 |  |  | — |  |  | 199 |  |  | — |  |  | 377 |  |  | 7.12 | %
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | — |  |  | — |  |  | — |  |  | 39 |  |  | — |  |  | — |  |  | 39 |  |  | — | %
Check loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Leases |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — | %
Total |  | $ | — |  |  | $ | — |  |  | $ | 2,224 |  |  | $ | 426 |  |  | $ | 13,046 |  |  | $ | 11 |  |  | $ | 15,707 |  |  | 0.21 | %
Park has committed to lend additional amounts totaling $3.4 million to the borrowers included in the previous table as of September 30, 2023. The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months and the nine months ended September 30, 2023:
|  | Three Months Ended September 30, 2023
(Dollars in thousands) |  | Principal Forgiveness |  | Weighted Average Interest Rate Adjustment |  | Weighted Average Term Extension (years)
Commercial, financial and agricultural: |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | — |  |  | (0.15) | % |  | 0.5
PPP loans |  | — |  |  | — | % |  | 0.0
Overdrafts |  | — |  |  | — | % |  | 0.0
Commercial real estate |  | — |  |  | 2.76 | % |  | 2.0
Construction real estate: |  |  |  |  |  |
Commercial |  | — |  |  | 2.34 | % |  | 1.6
Retail |  | — |  |  | — | % |  | 0.0
Residential real estate: |  |  |  |  |  |
Commercial |  | — |  |  | (2.75) | % |  | 1.1
Mortgage |  | — |  |  | (4.00) | % |  | 0.8
HELOC |  | — |  |  | — | % |  | 0.0
Installment |  | — |  |  | (0.89) | % |  | 13.6
Consumer: |  |  |  |  |  |
Consumer |  | — |  |  | (1.49) | % |  | 0.0
Check loans |  | — |  |  | — | % |  | 0.0
Leases |  | — |  |  | — | % |  | 0.0
Total |  | $ | — |  |  | 0.34 | % |  | 1.4
|  | Nine Months Ended September 30, 2023
(Dollars in thousands) |  | Principal Forgiveness |  | Weighted Average Interest Rate Adjustment |  | Weighted Average Term Extension (years)
Commercial, financial and agricultural: |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | — |  |  | 0.58 | % |  | 0.6
PPP loans |  | — |  |  | — | % |  | 0.0
Overdrafts |  | — |  |  | — | % |  | 0.0
Commercial real estate |  | — |  |  | 2.76 | % |  | 3.1
Construction real estate: |  |  |  |  |  |
Commercial |  | — |  |  | 2.34 | % |  | 1.6
Retail |  | — |  |  | — | % |  | 0.0
Residential real estate: |  |  |  |  |  |
Commercial |  | — |  |  | (2.47) | % |  | 1.4
Mortgage |  | — |  |  | (2.76) | % |  | 0.6
HELOC |  | — |  |  | — | % |  | 0.0
Installment |  | — |  |  | (1.21) | % |  | 12.9
Consumer: |  |  |  |  |  |
Consumer |  | — |  |  | (2.33) | % |  | 0.0
Check loans |  | — |  |  | — | % |  | 0.0
Leases |  | — |  |  | — | % |  | 0.0
Total |  | $ | — |  |  | 0.62 | % |  | 1.3
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 no loans modified to borrowers experiencing financial difficulty that had been modified during the three months ended September 30, 2023 that were greater than 30 days past due as of September 30, 2023. There were $11,000 of loans modified to borrowers experiencing financial difficulty that had been modified during the nine months ended September 30, 2023 that were 30-59 days past due as of September 30, 2023 in the Commercial, financial, and agricultural loan portfolio segment. The following table presents the amortized cost basis of loans that had a payment default during the three months ended September 30, 2023 and were modified in the nine 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 September 30, 2023
(In thousands) | Term Extension |  | Interest Rate Adjustment |  | Combination Term Extension and Interest Rate Adjustment |  | Other
Commercial, financial and agricultural: |  |  |  |  |  |  |
Commercial, financial and agricultural | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |
PPP loans | — |  |  | — |  |  | — |  |  | — |
Overdrafts | — |  |  | — |  |  | — |  |  | — |
Commercial real estate | — |  |  | — |  |  | — |  |  | — |
Construction real estate: |  |  |  |  |  |  |
Commercial | — |  |  | — |  |  | — |  |  | — |
Retail | — |  |  | — |  |  | — |  |  | — |
Residential real estate: |  |  | — |  |  | — |  |  | — |
Commercial | — |  |  | — |  |  | — |  |  | — |
Mortgage | — |  |  | — |  |  | — |  |  | — |
HELOC | — |  |  | — |  |  | — |  |  | — |
Installment | — |  |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |
Consumer | — |  |  | — |  |  | — |  |  | — |
Check loans | — |  |  | — |  |  | — |  |  | — |
Leases | — |  |  | — |  |  | — |  |  | — |
Total loans | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |
The following table presents the amortized cost basis of loans that had a payment default during the nine months ended September 30, 2023 and were modified in the nine 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:
| Nine Months Ended September 30, 2023
(In thousands) | Term Extension |  | Interest Rate Adjustment |  | Combination Term Extension and Interest Rate Adjustment |  | Other
Commercial, financial and agricultural: |  |  |  |  |  |  |
Commercial, financial and agricultural | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |
PPP loans | — |  |  | — |  |  | — |  |  | — |
Overdrafts | — |  |  | — |  |  | — |  |  | — |
Commercial real estate | — |  |  | — |  |  | — |  |  | — |
Construction real estate: |  |  |  |  |  |  |
Commercial | — |  |  | — |  |  | — |  |  | — |
Retail | — |  |  | — |  |  | — |  |  | — |
Residential real estate: |  |  | — |  |  | — |  |  | — |
Commercial | — |  |  | — |  |  | 147 |  |  | — |
Mortgage | — |  |  | — |  |  | 134 |  |  | — |
HELOC | — |  |  | — |  |  | — |  |  | — |
Installment | — |  |  | — |  |  | — |  |  | — |
Consumer: |  |  |  |  |  |  |
Consumer | — |  |  | 4 |  |  | — |  |  | — |
Check loans | — |  |  | — |  |  | — |  |  | — |
Leases | — |  |  | — |  |  | — |  |  | — |
Total loans | $ | — |  |  | $ | 4 |  |  | $ | 281 |  |  | $ | 11 |
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 September 30, 2023 and at December 31, 2022 was as follows:
| September 30, 2023 |  |  | December 31, 2022
(In thousands) | Amortized Cost |  |  | Amortized Cost
Commercial, financial and agricultural: (1) |  |  |  |
Commercial, financial and agricultural (1) | $ | 1,283,485 |  |  |  | $ | 1,295,238 |
PPP loans | 2,427 |  |  |  | 4,206 |
Overdrafts | 3,109 |  |  |  | 1,489 |
Commercial real estate (1) | 1,833,400 |  |  |  | 1,794,054 |
Construction real estate: |  |  |  |
Commercial | 182,992 |  |  |  | 208,982 |
Retail | 105,934 |  |  |  | 116,433 |
Residential real estate: |  |  |  |
Commercial | 583,251 |  |  |  | 550,183 |
Mortgage | 1,185,544 |  |  |  | 1,075,446 |
HELOC | 173,256 |  |  |  | 167,151 |
Installment | 5,295 |  |  |  | 4,091 |
Consumer: |  |  |  |
Consumer | 1,970,570 |  |  |  | 1,902,831 |
Check loans | 2,053 |  |  |  | 2,150 |
Leases | 18,429 |  |  |  | 19,637 |
Total | $ | 7,349,745 |  |  |  | $ | 7,141,891 |
Allowance for credit losses | (84,602) |  |  |  | (85,379) |
Net loans | $ | 7,265,143 |  |  |  | $ | 7,056,512 |
(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 making and retaining these loans, Park received an aggregate of $33.1 million in fees from the SBA. During the three months ended September 30, 2023 and September 30, 2022, $9,000 and $361,000, respectively, of PPP fee income was recognized within loan interest income. During the nine months ended September 30, 2023 and September 30, 2022, $34,000 and $2.9 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 $18.9 million at September 30, 2023, and of $18.2 million at December 31, 2022, which represented a net deferred income position at both dates. At September 30, 2023 and December 31, 2022, loans included purchase accounting adjustments of $1.9 million and $2.5 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 $3.1 million and $1.5 million were reclassified to loans at September 30, 2023 and at December 31, 2022, respectively. Credit Quality Among other things, the adoption of ASU 2022-02 on January 1, 2023 eliminated the concept of TDRs. After the adoption of ASU 2022-02 on January 1, 2023, nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing. Prior to the adoption of ASU 2022-02, nonperforming loans consisted of nonaccrual loans, accruing TDRs and loans past due 90 days or more and still accruing. The following table presents the amortized cost of nonaccrual loans and loans past due 90 days or more and still accruing, by class of loan, at September 30, 2023.
|  | September 30, 2023
(In thousands) |  | Nonaccrual Loans |  |  | Loans Past Due 90 Days or More and Accruing |  | Total Nonperforming Loans
Commercial, financial and agricultural: |  |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | 17,336 |  |  |  | $ | — |  |  | $ | 17,336 |
PPP loans |  | — |  |  |  | — |  |  | — |
Overdrafts |  | — |  |  |  | — |  |  | — |
Commercial real estate |  | 19,899 |  |  |  | — |  |  | 19,899 |
Construction real estate: |  |  |  |  |  |  |
Commercial |  | 1,124 |  |  |  | — |  |  | 1,124 |
Retail |  | — |  |  |  | — |  |  | — |
Residential real estate: |  |  |  |  |  |  |
Commercial |  | 2,237 |  |  |  | — |  |  | 2,237 |
Mortgage |  | 10,935 |  |  |  | 139 |  |  | 11,074 |
HELOC |  | 957 |  |  |  | — |  |  | 957 |
Installment |  | 35 |  |  |  | — |  |  | 35 |
Consumer: |  |  |  |  |  |  |
Consumer |  | 2,133 |  |  |  | 488 |  |  | 2,621 |
Check loans |  | — |  |  |  | — |  |  | — |
Leases |  | 352 |  |  |  | — |  |  | 352 |
Total loans |  | $ | 55,008 |  |  |  | $ | 627 |  |  | $ | 55,635 |
The following table presents 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:
|  | 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 |  | 1,022 |  |  | 670 |  |  | 703 |  |  | 2,395 |
Check loans |  | — |  |  | — |  |  | — |  |  | — |
Leases |  | 708 |  |  | — |  |  | — |  |  | 708 |
Total loans |  | $ | 79,696 |  |  | $ | 20,134 |  |  | $ | 1,281 |  |  | $ | 101,111 |
The following tables provide additional detail on nonaccrual loans and the related ACL, by class of loan, at September 30, 2023 and December 31, 2022:
|  | September 30, 2023
(In thousands) |  | Nonaccrual Loans With No ACL |  | Nonaccrual Loans With an ACL |  | Related ACL
Commercial, financial and agricultural: |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | 8,121 |  |  | $ | 9,215 |  |  | $ | 3,132 |
PPP loans |  | — |  |  | — |  |  | — |
Overdrafts |  | — |  |  | — |  |  | — |
Commercial real estate |  | 18,411 |  |  | 1,488 |  |  | 205 |
Construction real estate: |  |  |  |  |  |
Commercial |  | 575 |  |  | 549 |  |  | 94 |
Retail |  | — |  |  | — |  |  | — |
Residential real estate: |  |  |  |  |  |
Commercial |  | 2,237 |  |  | — |  |  | — |
Mortgage |  | — |  |  | 10,935 |  |  | 96 |
HELOC |  | — |  |  | 957 |  |  | 25 |
Installment |  | — |  |  | 35 |  |  | 18 |
Consumer |  |  |  |  |  |
Consumer |  | — |  |  | 2,133 |  |  | 615 |
Check loans |  | — |  |  | — |  |  | — |
Leases |  | 352 |  |  | — |  |  | — |
Total loans |  | $ | 29,696 |  |  | $ | 25,312 |  |  | $ | 4,185 |
|  | 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 |  | — |  |  | 1,022 |  |  | 284 |
Check loans |  | — |  |  | — |  |  | — |
Leases |  | 680 |  |  | 28 |  |  | 9 |
Total |  | $ | 55,542 |  |  | $ | 24,154 |  |  | $ | 4,175 |
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 September 30, 2023 and at December 31, 2022:
|  | September 30, 2023
(In thousands) |  | Real Estate |  | Business Assets |  | Other | Total
Commercial, financial and agricultural |  |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | 8,110 |  |  | $ | 4,719 |  |  | $ | 4,470 |  | $ | 17,299 |
Commercial real estate |  | 22,643 |  |  | 21 |  |  | — |  | 22,664 |
Construction real estate: |  |  |  |  |  |  |
Commercial |  | 1,761 |  |  | — |  |  | — |  | 1,761 |
Residential real estate: |  |  |  |  |  |  |
Commercial |  | 2,491 |  |  | — |  |  | — |  | 2,491 |
Mortgage |  | 79 |  |  | — |  |  | — |  | 79 |
Leases |  | — |  |  | 352 |  |  | — |  | 352 |
Total loans |  | $ | 35,084 |  |  | $ | 5,092 |  |  | $ | 4,470 |  | $ | 44,646 |
|  | 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 |
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 and the nine-month periods ended September 30, 2023 and 2022:
|  | Interest Income Recognized
(In thousands) |  | Three Months Ended September 30, 2023 |  | Three Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2023 |  | Nine Months Ended September 30, 2022
Commercial, financial and agricultural: |  |  |  |  |  |  |  |
Commercial, financial and agricultural |  | $ | 253 |  |  | $ | 15 |  |  | $ | 1,580 |  |  | $ | 45 |
PPP loans |  | — |  |  | — |  |  | — |  |  | — |
Overdrafts |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate |  | 177 |  |  | 237 |  |  | 537 |  |  | 751 |
Construction real estate: |  |  |  |  |  |  |  |
Commercial |  | 5 |  |  | 6 |  |  | 59 |  |  | 10 |
Retail |  | — |  |  | — |  |  | — |  |  | 4 |
Residential real estate: |  |  |  |  |  |  |  |
Commercial |  | 37 |  |  | 24 |  |  | 100 |  |  | 64 |
Mortgage |  | 58 |  |  | 43 |  |  | 160 |  |  | 112 |
HELOC |  | 1 |  |  | 5 |  |  | 16 |  |  | 11 |
Installment |  | 1 |  |  | 1 |  |  | 3 |  |  | 3 |
Consumer: |  |  |  |  |  |  |  |
Consumer |  | 25 |  |  | 15 |  |  | 65 |  |  | 46 |
Check loans |  | — |  |  | — |  |  | — |  |  | — |
Leases |  | — |  |  | 9 |  |  | — |  |  | 33
Total loans |  | $ | 557 |  |  | $ | 355 |  |  | $ | 2,520 |  |  | $ | 1,079 |
The following tables present the aging of the amortized cost in past due loans at September 30, 2023 and at December 31, 2022 by class of loan:
| September 30, 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 | $ | 324 |  |  | $ | 12,151 |  |  | $ | 12,475 |  |  | $ | 1,271,010 |  |  | $ | 1,283,485 |
PPP loans | — |  |  | — |  |  | — |  |  | 2,427 |  |  | 2,427 |
Overdrafts | — |  |  | — |  |  | — |  |  | 3,109 |  |  | 3,109 |
Commercial real estate | 206 |  |  | 2,322 |  |  | 2,528 |  |  | 1,830,872 |  |  | 1,833,400 |
Construction real estate: |  |  |  |  |  |  |  |  |
Commercial | — |  |  | 549 |  |  | 549 |  |  | 182,443 |  |  | 182,992 |
Retail | 8 |  |  | — |  |  | 8 |  |  | 105,926 |  |  | 105,934 |
Residential real estate: |  |  |  |  |  |  |  |  |
Commercial | 54 |  |  | 219 |  |  | 273 |  |  | 582,978 |  |  | 583,251 |
Mortgage | 7,584 |  |  | 5,386 |  |  | 12,970 |  |  | 1,172,574 |  |  | 1,185,544 |
HELOC | 655 |  |  | 699 |  |  | 1,354 |  |  | 171,902 |  |  | 173,256 |
Installment | 19 |  |  | — |  |  | 19 |  |  | 5,276 |  |  | 5,295 |
Consumer: |  |  |  |  |  |  |  |  |
Consumer | 6,732 |  |  | 838 |  |  | 7,570 |  |  | 1,963,000 |  |  | 1,970,570 |
Check loans | 4 |  |  | — |  |  | 4 |  |  | 2,049 |  |  | 2,053 |
Leases | — |  |  | — |  |  | — |  |  | 18,429 |  |  | 18,429 |
Total loans | $ | 15,586 |  |  | $ | 22,164 |  |  | $ | 37,750 |  |  | $ | 7,311,995 |  |  | $ | 7,349,745 |
(1) Includes an aggregate of $0.6 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans. (2) Includes an aggregate of $33.5 million of nonaccrual loans which were current with respect to contractual principal and interest payments.
| 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 | 5,499 |  |  | 964 |  |  | 6,463 |  |  | 1,896,368 |  |  | 1,902,831 |
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 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 September 30, 2023 and December 31, 2022 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 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 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 September 30, 2023 and at December 31, 2022 are detailed in the tables below. Also included in the table detailing loan balances at September 30, 2023 are gross charge offs for the nine months ended September 30, 2023.
September 30, 2023 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total
Commercial, financial and agricultural: Commercial, financial and agricultural (1) |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 157,097 |  | $ | 162,986 |  | $ | 136,515 |  | $ | 116,752 |  | $ | 45,243 |  | $ | 48,042 |  | $ | 567,498 |  | $ | 1,234,133 |
Special Mention | 125 |  | 598 |  | 285 |  | 242 |  | 110 |  | 11 |  | 28,954 |  | 30,325 |
Substandard | 111 |  | 191 |  | 197 |  | 2,530 |  | 140 |  | 623 |  | 6,100 |  | 9,892 |
Doubtful | 75 |  | 52 |  | 42 |  | 126 |  | 104 |  | 7,862 |  | 874 |  | 9,135 |
Total | $ | 157,408 |  | $ | 163,827 |  | $ | 137,039 |  | $ | 119,650 |  | $ | 45,597 |  | $ | 56,538 |  | $ | 603,426 |  | $ | 1,283,485 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 51 |  | $ | — |  | $ | 51 |
Commercial, financial and agricultural: PPP |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | — |  | $ | — |  | $ | 1,014 |  | $ | 1,413 |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,427 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | — |  | $ | — |  | $ | 1,014 |  | $ | 1,413 |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,427 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Commercial real estate (1) |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 198,641 |  | $ | 309,027 |  | $ | 343,355 |  | $ | 328,768 |  | $ | 210,212 |  | $ | 356,293 |  | $ | 15,401 |  | $ | 1,761,697 |
Special Mention | 72 |  | 16,984 |  | 4,249 |  | 4,336 |  | — |  | 24,670 |  | 99 |  | 50,410 |
Substandard | 1,624 |  | 1,137 |  | 2,759 |  | 3,198 |  | 2,590 |  | 7,012 |  | 1,892 |  | 20,212 |
Doubtful | — |  | — |  | 740 |  | — |  | — |  | 341 |  | — |  | 1,081 |
Total | $ | 200,337 |  | $ | 327,148 |  | $ | 351,103 |  | $ | 336,302 |  | $ | 212,802 |  | $ | 388,316 |  | $ | 17,392 |  | $ | 1,833,400 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 530 |  | $ | — |  | $ | 530 |
Construction real estate: Commercial |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 63,281 |  | $ | 75,994 |  | $ | 7,581 |  | $ | 18,474 |  | $ | 1,897 |  | $ | 2,806 |  | $ | 11,198 |  | $ | 181,231 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Substandard | 1,414 |  | 270 |  | 77 |  | — |  | — |  | — |  | — |  | 1,761 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 64,695 |  | $ | 76,264 |  | $ | 7,658 |  | $ | 18,474 |  | $ | 1,897 |  | $ | 2,806 |  | $ | 11,198 |  | $ | 182,992 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
September 30, 2023 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total
Residential Real Estate: Commercial |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 86,116 |  | $ | 108,555 |  | $ | 108,655 |  | $ | 123,374 |  | $ | 51,584 |  | $ | 79,032 |  | $ | 20,793 |  | $ | 578,109 |
Special Mention | — |  | 338 |  | 462 |  | 607 |  | 415 |  | 848 |  | — |  | 2,670 |
Substandard | 200 |  | 572 |  | 333 |  | 256 |  | 31 |  | 890 |  | 190 |  | 2,472 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 86,316 |  | $ | 109,465 |  | $ | 109,450 |  | $ | 124,237 |  | $ | 52,030 |  | $ | 80,770 |  | $ | 20,983 |  | $ | 583,251 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Leases |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 4,530 |  | $ | 5,597 |  | $ | 2,448 |  | $ | 2,276 |  | $ | 483 |  | $ | 843 |  | $ | — |  | $ | 16,177 |
Special Mention | 665 |  | 752 |  | 442 |  | 27 |  | 13 |  | 1 |  | — |  | 1,900 |
Substandard | — |  | — |  | — |  | 256 |  | 82 |  | 14 |  | — |  | 352 |
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 5,195 |  | $ | 6,349 |  | $ | 2,890 |  | $ | 2,559 |  | $ | 578 |  | $ | 858 |  | $ | — |  | $ | 18,429 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Total Commercial Loans |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |
Pass | $ | 509,665 |  | $ | 662,159 |  | $ | 599,568 |  | $ | 591,057 |  | $ | 309,419 |  | $ | 487,016 |  | $ | 614,890 |  | $ | 3,773,774 |
Special Mention | 862 |  | 18,672 |  | 5,438 |  | 5,212 |  | 538 |  | 25,530 |  | 29,053 |  | 85,305 |
Substandard | 3,349 |  | 2,170 |  | 3,366 |  | 6,240 |  | 2,843 |  | 8,539 |  | 8,182 |  | 34,689 |
Doubtful | 75 |  | 52 |  | 782 |  | 126 |  | 104 |  | 8,203 |  | 874 |  | 10,216 |
Total | $ | 513,951 |  | $ | 683,053 |  | $ | 609,154 |  | $ | 602,635 |  | $ | 312,904 |  | $ | 529,288 |  | $ | 652,999 |  | $ | 3,903,984 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 581 |  | $ | — |  | $ | 581 |
(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, 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 |
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
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 |
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. 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. Also included in the table detailing loan balances at September 30, 2023 are gross charge offs for the nine months ended September 30, 2023. As previously mentioned, the adoption of ASU 2022-02 on January 1, 2023 eliminated the concept of TDRs. After the adoption of ASU 2022-02 on January 1, 2023, nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing. Prior to the adoption of ASU 2022-02, nonperforming loans consisted of nonaccrual loans, accruing TDRs and loans past due 90 days or more and still accruing.
September 30, 2023 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total
Commercial, financial and agricultural: Overdrafts |  |  |  |  |  |
Performing | $ | 3,109 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 3,109 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 3,109 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 3,109 |
Current period gross charge-offs | $ | 704 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 704 |
Construction Real Estate: Retail |  |  |  |  |  |
Performing | $ | 33,399 |  | $ | 50,927 |  | $ | 9,846 |  | $ | 4,402 |  | $ | 3,921 |  | $ | 3,128 |  | $ | 311 |  | $ | 105,934 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | 33,399 |  | $ | 50,927 |  | $ | 9,846 |  | $ | 4,402 |  | $ | 3,921 |  | $ | 3,128 |  | $ | 311 |  | $ | 105,934 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
September 30, 2023 | Term Loans Amortized Cost Basis by Origination Year |  |
(In thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total
Residential Real Estate: Mortgage |  |  |  |  |  |
Performing | $ | 151,811 |  | $ | 235,246 |  | $ | 223,499 |  | $ | 180,736 |  | $ | 83,584 |  | $ | 299,594 |  | $ | — |  | $ | 1,174,470 |
Nonperforming | — |  | 976 |  | 706 |  | 851 |  | 423 |  | 8,118 |  | — |  | 11,074 |
Total | $ | 151,811 |  | $ | 236,222 |  | $ | 224,205 |  | $ | 181,587 |  | $ | 84,007 |  | $ | 307,712 |  | $ | — |  | $ | 1,185,544 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 35 |  | $ | — |  | $ | 35 |
Residential Real Estate: HELOC |  |  |  |  |  |
Performing | $ | 79 |  | $ | 181 |  | $ | 299 |  | $ | 102 |  | $ | 242 |  | $ | 1,975 |  | $ | 169,421 |  | $ | 172,299 |
Nonperforming | — |  | — |  | — |  | — |  | 32 |  | 685 |  | 240 |  | 957 |
Total | $ | 79 |  | $ | 181 |  | $ | 299 |  | $ | 102 |  | $ | 274 |  | $ | 2,660 |  | $ | 169,661 |  | $ | 173,256 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 9 |  | $ | — |  | $ | 9 |
Residential Real Estate: Installment |  |  |  |  |  |
Performing | $ | 1,692 |  | $ | 168 |  | $ | — |  | $ | 4 |  | $ | 165 |  | $ | 3,231 |  | $ | — |  | $ | 5,260 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | 35 |  | — |  | 35 |
Total | $ | 1,692 |  | $ | 168 |  | $ | — |  | $ | 4 |  | $ | 165 |  | $ | 3,266 |  | $ | — |  | $ | 5,295 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Consumer: Consumer |  |  |  |  |  |  |  |
Performing | $ | 520,059 |  | $ | 664,029 |  | $ | 348,910 |  | $ | 239,729 |  | $ | 95,045 |  | $ | 82,256 |  | $ | 17,921 |  | $ | 1,967,949 |
Nonperforming | 155 |  | 687 |  | 730 |  | 367 |  | 181 |  | 497 |  | 4 |  | 2,621 |
Total | $ | 520,214 |  | $ | 664,716 |  | $ | 349,640 |  | $ | 240,096 |  | $ | 95,226 |  | $ | 82,753 |  | $ | 17,925 |  | $ | 1,970,570 |
Current period gross charge-offs | $ | 253 |  | $ | 2,223 |  | $ | 1,893 |  | $ | 635 |  | $ | 497 |  | $ | 346 |  | $ | 3 |  | $ | 5,850 |
Consumer: Check loans |  |  |  |  |  |  |  |
Performing | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,053 |  | $ | 2,053 |
Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,053 |  | $ | 2,053 |
Current period gross charge-offs | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 34 |  | $ | 34 |
Total Consumer Loans |  |  |  |  |  |  |  |
Performing | $ | 710,149 |  | $ | 950,551 |  | $ | 582,554 |  | $ | 424,973 |  | $ | 182,957 |  | $ | 390,184 |  | $ | 189,706 |  | $ | 3,431,074 |
Nonperforming | 155 |  | 1,663 |  | 1,436 |  | 1,218 |  | 636 |  | 9,335 |  | 244 |  | 14,687 |
Total | $ | 710,304 |  | $ | 952,214 |  | $ | 583,990 |  | $ | 426,191 |  | $ | 183,593 |  | $ | 399,519 |  | $ | 189,950 |  | $ | 3,445,761 |
Current period gross charge-offs | $ | 957 |  | $ | 2,223 |  | $ | 1,893 |  | $ | 635 |  | $ | 497 |  | $ | 390 |  | $ | 37 |  | $ | 6,632 |
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 |
Consumer: Consumer |  |  |  |  |  |  |  |
Performing | $ | 823,484 |  | $ | 462,014 |  | $ | 333,391 |  | $ | 150,348 |  | $ | 61,219 |  | $ | 65,614 |  | $ | 4,366 |  | $ | 1,900,436 |
Nonperforming | 440 |  | 489 |  | 424 |  | 365 |  | 157 |  | 520 |  | — |  | 2,395 |
Total | $ | 823,924 |  | $ | 462,503 |  | $ | 333,815 |  | $ | 150,713 |  | $ | 61,376 |  | $ | 66,134 |  | $ | 4,366 |  | $ | 1,902,831 |
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 |
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. 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. These 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 Park's 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 September 30, 2023 and at December 31, 2022, there was no allowance for credit losses on PCD loans. The carrying amount of accruing loans acquired with deteriorated credit quality at September 30, 2023 and at December 31, 2022 was $3.8 million and $4.7 million, respectively. The carrying amount of nonaccrual loans acquired with deteriorated credit quality was $549,000 at September 30, 2023. There were no nonaccrual loans acquired with deteriorated quality at December 31, 2022. 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 interest rate adjustments. 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 adjustment. 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.

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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 -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent + Details
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