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Loans
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Loans and Leases Receivable Disclosure [Abstract]    
Loans
The following tables present the amortized cost basis of loans at September 30, 2024 and 2023 that were both experiencing financial difficulty and modified during the three months and the nine months ended September 30, 2024 and 2023 by class and 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, 2024
(Dollars in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionOtherTotalPercent of Total Class of Financing Receivable
Commercial, financial and agricultural:
Commercial, financial and agricultural $— $— $6,137 $416 $— $— $6,553 0.50 %
PPP loans— — — — — — — — %
Overdrafts— — — — — — — — %
Commercial real estate — — 1,750 128 15 — 1,893 0.10 %
Construction real estate:
Commercial— — — — — — — — %
Retail— — — — — — — — %
Residential real estate:
Commercial— — 278 — — — 278 0.04 %
Mortgage— — 175 89 81 — 345 0.03 %
HELOC— — — — — — — — %
Installment— — 104 — — — 104 1.69 %
Consumer:
Consumer— — — 11 — — 11 — %
Check loans— — — — — — — — %
Leases— — — — — — — — %
Total$— $— $8,444 $644 $96 $— $9,184 0.12 %
Three Months Ended
September 30, 2023
(Dollars in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionOtherTotalPercent of Total Class of Financing Receivable
Commercial, financial and agricultural:
Commercial, financial and agricultural $— $— $3,870 $387 $618 $— $4,875 0.38 %
PPP loans— — — — — — — — %
Overdrafts— — — — — — — — %
Commercial real estate — — 877 — — — 877 0.05 %
Construction real estate:
Commercial— — 865 — — — 865 0.47 %
Retail— — — — — — — — %
Residential real estate:
Commercial— — — — 147 — 147 0.03 %
Mortgage— — — — 95 — 95 0.01 %
HELOC— — — — — — — — %
Installment— — 174 — 121 — 295 5.57 %
Consumer:
Consumer— — — 22 — — 22 — %
Check loans— — — — — — — — %
Leases— — — — — — — — %
Total$— $— $5,786 $409 $981 $— $7,176 0.10 %
Nine Months Ended
September 30, 2024
(Dollars in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionOtherTotalPercent of Total Class of Financing Receivable
Commercial, financial and agricultural:
Commercial, financial and agricultural $— $54 $16,320 $423 $— $— $16,797 1.29 %
PPP loans— — — — — — — — %
Overdrafts— — — — — — — — %
Commercial real estate — 160 6,141 456 135 — 6,892 0.35 %
Construction real estate:
Commercial— — — — — — — — %
Retail— — — — — — — — %
Residential real estate:
Commercial— — 819 — 238 — 1,057 0.17 %
Mortgage— — 268 89 81 — 438 0.03 %
HELOC— — — — — — — — %
Installment— — 208 — 75 — 283 4.60 %
Consumer:
Consumer— — — 15 — — 15 — %
Check loans— — — — — — — — %
Leases— — — — — — — — %
Total$— $214 $23,756 $983 $529 $— $25,482 0.33 %
Park had commitments to lend $2.8 million related to loans which were both experiencing financial difficulty and modified during the nine months ended September 30, 2024.
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, 2024 and 2023:

Three Months Ended
September 30, 2024
(Dollars in thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (years)Weighted Average Payment Delay (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural$— (2.68)%0.50.0
PPP loans— — %0.00.0
Overdrafts— — %0.00.0
Commercial real estate— (1.01)%5.60.0
Construction real estate:
Commercial— — %0.00.0
Retail— — %0.00.0
Residential real estate:
Commercial— — %0.30.0
Mortgage— (2.30)%6.50.0
HELOC— — %0.00.0
Installment— — %7.60.0
Consumer:
Consumer— (2.79)%0.00.0
Check loans— — %0.00.0
Leases— — %0.00.0
Total$— (2.27)%1.80.0
Three Months Ended
September 30, 2023
(Dollars in thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (years)Weighted Average Payment Delay (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural$— (1.42)%0.50.0
PPP loans— — %0.00.0
Overdrafts— — %0.00.0
Commercial real estate— — %2.00.0
Construction real estate:
Commercial— — %1.60.0
Retail— — %0.00.0
Residential real estate:
Commercial— (2.75)%1.10.0
Mortgage— (4.00)%0.80.0
HELOC— — %0.00.0
Installment— (0.89)%13.60.0
Consumer:
Consumer— (1.49)%0.00.0
Check loans— — %0.00.0
Leases— — %0.00.0
Total$— (1.69)%1.40.0

Nine Months Ended
September 30, 2024
(Dollars in thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (years)Weighted Average Payment Delay (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural$— (2.65)%0.40.4
PPP loans— — %0.00.0
Overdrafts— — %0.00.0
Commercial real estate— (1.68)%3.70.4
Construction real estate:
Commercial— — %0.00.0
Retail— — %0.00.0
Residential real estate:
Commercial— (1.00)%2.30.0
Mortgage— (2.30)%5.90.0
HELOC— — %0.00.0
Installment— (1.22)%8.90.0
Consumer:
Consumer— (4.18)%0.00.0
Check loans— — %0.00.0
Leases— — %0.00.0
Total$— (1.92)%1.50.4
Nine Months Ended
September 30, 2023
(Dollars in thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (years)Weighted Average Payment Delay (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural$— (1.42)%0.60.0
PPP loans— — %0.00.0
Overdrafts— — %0.00.0
Commercial real estate— — %3.10.0
Construction real estate:
Commercial— — %1.60.0
Retail— — %0.00.0
Residential real estate:
Commercial— (2.75)%1.40.0
Mortgage— (2.76)%0.60.0
HELOC— — %0.00.0
Installment— (1.21)%12.90.0
Consumer:
Consumer— (2.33)%0.00.0
Check loans— — %0.00.0
Leases— — %0.00.0
Total$— (1.73)%1.30.0
Park closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of Park's modification efforts. The following table provides the performance of loans as of the period end date, of modifications made to borrowers experiencing financial difficulty during the twelve months preceding September 30, 2024:

Twelve Months Ended September 30, 2024
(Dollars in thousands)Current30-59 days past due60-89 days past due90 days or more past dueTotal
Commercial, financial and agricultural:
Commercial, financial and agricultural$10,939 $— $6 $7,624 $18,569 
PPP loans— — — — — 
Overdrafts— — — — — 
Commercial real estate7,266 — — — 7,266 
Construction real estate:— 
Commercial— — — — — 
Retail— — — — — 
Residential real estate:— 
Commercial1,057 — — — 1,057 
Mortgage547 — — 89 636 
HELOC— — — — — 
Installment623 — — 19 642 
Consumer:— 
Consumer15 — — — 15 
Check loans— — — — — 
Leases— — — — — 
Total$20,447 $— $6 $7,732 $28,185 

There were $11,000 in 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 tables present the amortized cost basis of loans that had a payment default subsequent to modification during the three and nine months ended September 30, 2024 and were modified in the twelve 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, 2024
Term ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionPayment Delay
Commercial, financial and agricultural:
Commercial, financial and agricultural$7,577 $— $— $54 
PPP loans— — — — 
Overdrafts— — — — 
Commercial real estate— — — — 
Construction real estate:
Commercial— — — — 
Retail— — — — 
Residential real estate:
Commercial— — — — 
Mortgage— 89 70 — 
HELOC— — — — 
Installment19 — — — 
Consumer:
Consumer— — — — 
Check loans— — — — 
Leases— — — — 
Total loans$7,596 $89 $70 $54 
Nine Months Ended
September 30, 2024
Term ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionPayment Delay
Commercial, financial and agricultural:
Commercial, financial and agricultural$10,164 $— $— $54 
PPP loans— — — — 
Overdrafts— — — — 
Commercial real estate— — — — 
Construction real estate:
Commercial— — — — 
Retail— — — — 
Residential real estate:
Commercial— — — — 
Mortgage48 89 70 — 
HELOC— — — — 
Installment19 — — — 
Consumer:
Consumer— — — — 
Check loans— — — — 
Leases— — — — 
Total loans$10,231 $89 $70 $54 
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
Term ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionOther
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
Term ExtensionInterest Rate ReductionCombination Term Extension and Interest Rate ReductionOther
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 ACL is adjusted by the same amounts.
 Loans
 
The composition of the loan portfolio at September 30, 2024 and at December 31, 2023 was as follows:
 
September 30, 2024December 31, 2023
(In thousands)Amortized CostAmortized Cost
Commercial, financial and agricultural: (1)
Commercial, financial and agricultural (1)
$1,299,399 $1,292,025 
PPP loans1,123 2,116 
Overdrafts1,012 1,499 
Commercial real estate (1)
1,957,079 1,875,993 
Construction real estate:  
Commercial252,120 209,226 
Retail98,767 95,873 
Residential real estate:  
Commercial627,680 609,410 
Mortgage1,319,170 1,239,861 
HELOC197,008 174,349 
Installment6,152 5,904 
Consumer:
Consumer1,941,225 1,943,869 
Check loans1,948 2,067 
Leases28,301 24,029 
Total$7,730,984 $7,476,221 
Allowance for credit losses(87,237)(83,745)
Net loans$7,643,747 $7,392,476 
(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.

Loans are shown net of deferred origination fees, costs and unearned income of $20.2 million at September 30, 2024, and of $19.8 million at December 31, 2023, which represented a net deferred income position at both dates. At September 30, 2024 and December 31, 2023, loans included purchase accounting adjustments of $918,000 and $1.8 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 $1.0 million and $1.5 million were reclassified to loans at September 30, 2024 and at December 31, 2023, respectively.
Credit Quality
Nonperforming loans consist of nonaccrual loans and loans past due 90 days or more and still accruing.

The following tables present the amortized cost of nonaccrual loans and loans past due 90 days or more and still accruing, by class of loan, at September 30, 2024 and December 31, 2023.
 
 September 30, 2024
(In thousands)Nonaccrual
Loans		Loans Past Due
90 Days
 or More
and Accruing		Total
Nonperforming
Loans
Commercial, financial and agricultural:
Commercial, financial and agricultural$28,305 $2,004 $30,309 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate21,090 — 21,090 
Construction real estate:   
Commercial25 — 25 
Retail23 — 23 
Residential real estate:   
Commercial4,179 — 4,179 
Mortgage11,082 689 11,771 
HELOC834 — 834 
Installment33 — 33 
Consumer:
Consumer2,399 857 3,256 
Check loans— — — 
Leases21 — 21 
Total loans$67,991 $3,550 $71,541 
 
 December 31, 2023
(In thousands)Nonaccrual
Loans		Loans Past Due 90 Days or More and AccruingTotal
Nonperforming
Loans
Commercial, financial and agricultural
Commercial, financial and agricultural$21,284 $14 $21,298 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate20,740 — 20,740 
Construction real estate:  
Commercial504 — 504 
Retail— 26 26 
Residential real estate:   
Commercial2,670 — 2,670 
Mortgage11,786 206 11,992 
HELOC815 — 815 
Installment16 — 16 
Consumer
Consumer2,371 613 2,984 
Check loans— — — 
Leases73 — 73 
Total loans$60,259 $859 $61,118 
The following tables provide additional detail on nonaccrual loans and the related ACL, by class of loan, at September 30, 2024 and December 31, 2023:

September 30, 2024
(In thousands)Nonaccrual Loans With No ACLNonaccrual Loans With an ACLRelated ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural$22,961 $5,344 $2,479 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate20,641 449 13 
Construction real estate:
Commercial25 — — 
Retail— 23 1 
Residential real estate:
Commercial4,179 — — 
Mortgage— 11,082 112 
HELOC— 834 136 
Installment— 33 1 
Consumer
Consumer— 2,399 552 
Check loans— — — 
Leases21 — — 
Total loans$47,827 $20,164 $3,294 
December 31, 2023
(In thousands)Nonaccrual Loans With No ACLNonaccrual Loans With an ACLRelated ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural$8,634 $12,650 $4,985 
PPP loans— — — 
Overdrafts— — — 
Commercial real estate20,175 565 2 
Construction real estate:
Commercial504 — — 
Retail— — — 
Residential real estate:
Commercial2,670 — — 
Mortgage— 11,786 117 
HELOC— 815 25 
Installment— 16 — 
Consumer
Consumer— 2,371 672 
Check loans— — — 
Leases73 — — 
Total$32,056 $28,203 $5,801 

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, 2024 and at December 31, 2023:

 September 30, 2024
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$5,788 $14,235 $7,905 $27,928 
Commercial real estate22,395 11 — 22,406 
Construction real estate:
Commercial618 — — 618 
Residential real estate:
Commercial4,382 — — 4,382 
Mortgage79 — — 79 
Leases— 21 — 21 
Total loans$33,262 $14,267 $7,905 $55,434 
 December 31, 2023
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$8,137 $9,377 $3,737 $21,251 
Commercial real estate22,096 514 — 22,610 
Construction real estate:
Commercial1,130 — — 1,130 
Residential real estate:
Commercial2,910 — — 2,910 
Mortgage76 — — 76 
Leases— 73 — 73 
Total loans$34,349 $9,964 $3,737 $48,050 

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, 2024 and 2023:

Interest Income Recognized
(In thousands)Three Months Ended
September 30, 2024		Three Months Ended
September 30, 2023		Nine Months Ended
September 30, 2024		Nine Months Ended
September 30, 2023
Commercial, financial and agricultural:
Commercial, financial and agricultural$441 $253 $1,018 $1,580 
PPP loans— — — — 
Overdrafts— — — — 
Commercial real estate257 177 822 537 
Construction real estate:
Commercial— 5 38 59 
Retail1 — 1 — 
Residential real estate:
Commercial62 37 169 100 
Mortgage85 58 238 160 
HELOC2 1 9 16 
Installment— 1 — 3 
Consumer:
Consumer32 25 90 65 
Check loans— — — — 
Leases— — — — 
Total loans$880 $557 $2,385 $2,520 
The following tables present the aging of the amortized cost in past due loans at September 30, 2024 and at December 31, 2023 by class of loan:

 September 30, 2024
(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$3,265 $16,815 $20,080 $1,279,319 $1,299,399 
PPP loans1 — 1 1,122 1,123 
Overdrafts— — — 1,012 1,012 
Commercial real estate236 2,146 2,382 1,954,697 1,957,079 
Construction real estate:
Commercial— — — 252,120 252,120 
Retail86 — 86 98,681 98,767 
Residential real estate:
Commercial717 219 936 626,744 627,680 
Mortgage8,666 5,120 13,786 1,305,384 1,319,170 
HELOC231 621 852 196,156 197,008 
Installment28 22 50 6,102 6,152 
Consumer:
Consumer7,894 1,283 9,177 1,932,048 1,941,225 
Check loans1 — 1 1,947 1,948 
Leases196 — 196 28,105 28,301 
Total loans$21,321 $26,226 $47,547 $7,683,437 $7,730,984 
(1) Includes an aggregate of $3.6 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.
(2) Includes an aggregate of $45.3 million of nonaccrual loans which were current with respect to contractual principal and interest payments.
 December 31, 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$522 $11,629 $12,151 $1,279,874 $1,292,025 
PPP loans9 — 9 2,107 2,116 
Overdrafts— — — 1,499 1,499 
Commercial real estate1,656 1,839 3,495 1,872,498 1,875,993 
Construction real estate:
Commercial— 205 205 209,021 209,226 
Retail554 26 580 95,293 95,873 
Residential real estate:
Commercial295 219 514 608,896 609,410 
Mortgage9,831 6,450 16,281 1,223,580 1,239,861 
HELOC788 611 1,399 172,950 174,349 
Installment52 — 52 5,852 5,904 
Consumer
Consumer8,974 1,183 10,157 1,933,712 1,943,869 
Check loans5 — 5 2,062 2,067 
Leases— — — 24,029 24,029 
Total loans$22,686 $22,162 $44,848 $7,431,373 $7,476,221 
(1) Includes an aggregate of $859,000 of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.
(2) Includes an aggregate of $39.0 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, 2024 and December 31, 2023 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 an individual 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, 2024 and at December 31, 2023 are detailed in the tables below. Also included in the tables detailing loan balances are gross charge offs for the nine months ended September 30, 2024 and for the year ended December 31, 2023.

September 30, 2024Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass$160,107 $161,990 $116,352 $91,264 $74,094 $52,195 $577,740 $1,233,742 
Special Mention1,285 902 3,597 333 791 1,399 27,500 35,807 
Substandard1,161 904 945 406 826 5,466 16,264 25,972 
Doubtful298 525 89 792 1,786 49 339 3,878 
Total $162,851 $164,321 $120,983 $92,795 $77,497 $59,109 $621,843 $1,299,399 
Current period gross charge-offs$— $51 $11 $5 $18 $2,869 $50 $3,004 
Commercial, financial and agricultural: PPP
Risk rating
Pass$— $— $— $628 $495 $— $— $1,123 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total$— $— $— $628 $495 $— $— $1,123 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate (1)
Risk rating
Pass$223,379 $263,320 $302,460 $305,453 $289,772 $492,078 $30,720 $1,907,182 
Special Mention2,007 1,968 7,228 4,310 5,599 6,697 — 27,809 
Substandard1,125 4,394 1,398 3,177 1,595 7,210 2,623 21,522 
Doubtful— 117 449 — — — — 566 
Total$226,511 $269,799 $311,535 $312,940 $296,966 $505,985 $33,343 $1,957,079 
Current period gross charge-offs$— $40 $— $— $— $— $— $40 
Construction real estate: Commercial
Risk rating
Pass$98,732 $87,482 $38,473 $2,692 $3,121 $2,888 $17,748 $251,136 
Special Mention— — 367 — — — — 367 
Substandard— 593 — 24 — — — 617 
Doubtful— — — — — — — — 
Total$98,732 $88,075 $38,840 $2,716 $3,121 $2,888 $17,748 $252,120 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
September 30, 2024Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Residential Real Estate: Commercial
Risk rating
Pass$82,553 $114,783 $91,862 $96,814 $106,212 $101,169 $23,194 $616,587 
Special Mention508 546 1,000 510 1,762 1,469 659 6,454 
Substandard562 93 861 331 1,172 1,053 384 4,456 
Doubtful— — 183 — — — — 183 
Total$83,623 $115,422 $93,906 $97,655 $109,146 $103,691 $24,237 $627,680 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Leases
Risk rating
Pass$14,134 $6,447 $4,097 $1,584 $1,055 $492 $— $27,809 
Special Mention— 48 270 — 153 — — 471 
Substandard21 — — — — — — 21 
Doubtful— — — — — — — — 
Total$14,155 $6,495 $4,367 $1,584 $1,208 $492 $— $28,301 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total Commercial Loans
Risk rating
Pass$578,905 $634,022 $553,244 $498,435 $474,749 $648,822 $649,402 $4,037,579 
Special Mention3,800 3,464 12,462 5,153 8,305 9,565 28,159 70,908 
Substandard2,869 5,984 3,204 3,938 3,593 13,729 19,271 52,588 
Doubtful298 642 721 792 1,786 49 339 4,627 
Total$585,872 $644,112 $569,631 $508,318 $488,433 $672,165 $697,171 $4,165,702 
Current period gross charge-offs$— $91 $11 $5 $18 $2,869 $50 $3,044 
(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, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass$204,601 $149,386 $118,992 $93,495 $38,205 $45,814 $600,301 $1,250,794 
Special Mention530 1,549 435 128 252 2 16,260 19,156 
Substandard149 894 1,041 1,133 143 582 7,427 11,369 
Doubtful— — 39 1,771 96 7,848 952 10,706 
Total $205,280 $151,829 $120,507 $96,527 $38,696 $54,246 $624,940 $1,292,025 
Current period gross charge-offs$— $13 $73 $— $5 $52 $19 $162 
Commercial, financial and agricultural: PPP
Risk rating
Pass$— $— $925 $1,191 $— $— $— $2,116 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total$— $— $925 $1,191 $— $— $— $2,116 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate (1)
Risk rating
Pass$278,922 $322,096 $334,452 $318,473 $204,740 $347,389 $17,174 $1,823,246 
Special Mention2,092 2,951 4,637 7,629 — 13,043 98 30,450 
Substandard1,828 1,589 2,509 2,668 3,406 7,495 1,584 21,079 
Doubtful889 — — — — 329 — 1,218 
Total$283,731 $326,636 $341,598 $328,770 $208,146 $368,256 $18,856 $1,875,993 
Current period gross charge-offs$224 $— $— $— $— $530 $— $754 
Construction real estate: Commercial
Risk rating
Pass$89,283 $77,988 $7,480 $18,195 $1,090 $2,718 $11,342 $208,096 
Special Mention— — — — — — — — 
Substandard831 236 63 — — — — 1,130 
Doubtful— — — — — — — — 
Total$90,114 $78,224 $7,543 $18,195 $1,090 $2,718 $11,342 $209,226 
Current period gross charge-offs$546 $— $— $— $— $— $— $546 
December 31, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisTotal
Residential Real Estate: Commercial
Risk rating
Pass$128,589 $104,008 $105,225 $117,442 $49,797 $71,489 $23,535 $600,085 
Special Mention— 333 623 1,964 914 1,578 — 5,412 
Substandard195 560 159 1,192 16 1,601 190 3,913 
Doubtful— — — — — — — — 
Total$128,784 $104,901 $106,007 $120,598 $50,727 $74,668 $23,725 $609,410 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Leases
Risk rating
Pass$11,440 $4,404 $2,197 $1,941 $356 $623 $— $20,961 
Special Mention731 1,564 391 297 10 2 — 2,995 
Substandard— — — — 67 6 — 73 
Doubtful— — — — — — — — 
Total$12,171 $5,968 $2,588 $2,238 $433 $631 $— $24,029 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total Commercial Loans
Risk rating
Pass$712,835 $657,882 $569,271 $550,737 $294,188 $468,033 $652,352 $3,905,298 
Special Mention3,353 6,397 6,086 10,018 1,176 14,625 16,358 58,013 
Substandard3,003 3,279 3,772 4,993 3,632 9,684 9,201 37,564 
Doubtful889 — 39 1,771 96 8,177 952 11,924 
Total$720,080 $667,558 $579,168 $567,519 $299,092 $500,519 $678,863 $4,012,799 
Current period gross charge-offs$770 $13 $73 $— $5 $582 $19 $1,462 
(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 ACL. 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 and gross charge offs for the nine months ended September 30, 2024 and for the year ended December 31, 2023. Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.

September 30, 2024Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Overdrafts
Performing$1,012 $— $— $— $— $— $— $1,012 
Nonperforming
— — — — — — — — 
Total $1,012 $— $— $— $— $— $— $1,012 
Current period gross charge-offs$653 $— $— $— $— $— $— $653 

Construction Real Estate: Retail
Performing$31,232 $42,301 $8,920 $6,480 $3,683 $5,670 $458 $98,744 
Nonperforming
— — — — 23 — — 23 
Total $31,232 $42,301 $8,920 $6,480 $3,706 $5,670 $458 $98,767 
Current period gross charge-offs$— $— $— $— $— $— $— $— 

Residential Real Estate: Mortgage
Performing$150,381 $224,396 $255,824 $199,200 $161,092 $316,506 $— $1,307,399 
Nonperforming
— 546 1,340 581 1,525 7,779 — 11,771 
Total $150,381 $224,942 $257,164 $199,781 $162,617 $324,285 $— $1,319,170 
Current period gross charge-offs$— $— $— $— $— $22 $— $22 

Residential Real Estate: HELOC
Performing$13 $145 $425 $346 $59 $1,173 $194,013 $196,174 
Nonperforming
— 39 14 57 — 616 108 834 
Total $13 $184 $439 $403 $59 $1,789 $194,121 $197,008 
Current period gross charge-offs$— $— $— $— $— $9 $— $9 

Residential Real Estate: Installment
Performing$1,102 $1,848 $140 $— $— $3,029 $— $6,119 
Nonperforming
— — — — 2 31 — 33 
Total $1,102 $1,848 $140 $— $2 $3,060 $— $6,152 
Current period gross charge-offs$— $— $— $— $— $— $— $— 

Consumer: Consumer
Performing$493,184 $499,892 $470,356 $229,546 $144,550 $94,407 $6,034 $1,937,969 
Nonperforming136 870 1,005 476 262 504 3 3,256 
Total $493,320 $500,762 $471,361 $230,022 $144,812 $94,911 $6,037 $1,941,225 
Current period gross charge-offs$451 $2,315 $3,149 $1,922 $656 $617 $2 $9,112 
September 30, 2024Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Consumer: Check loans
Performing$— $— $— $— $— $— $1,948 $1,948 
Nonperforming
— — — — — — — — 
Total $— $— $— $— $— $— $1,948 $1,948 
Current period gross charge-offs$— $— $— $— $— $— $51 $51 

Total Consumer Loans
Performing$676,924 $768,582 $735,665 $435,572 $309,384 $420,785 $202,453 $3,549,365 
Nonperforming
136 1,455 2,359 1,114 1,812 8,930 111 15,917 
Total $677,060 $770,037 $738,024 $436,686 $311,196 $429,715 $202,564 $3,565,282 
Current period gross charge-offs$1,104 $2,315 $3,149 $1,922 $656 $648 $53 $9,847 

December 31, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Commercial, financial and agricultural: Overdrafts
Performing$1,499 $— $— $— $— $— $— $1,499 
Nonperforming
— — — — — — — — 
Total 1,499 $— $— $— $— $— $— $1,499 
Current period gross charge-offs$1,064 $— $— $— $— $— $— $1,064 

Construction Real Estate: Retail
Performing$52,904 $24,219 $7,709 $4,251 $3,604 $2,891 $269 $95,847 
Nonperforming
— — — 26 — — — 26 
Total $52,904 $24,219 $7,709 $4,277 $3,604 $2,891 $269 $95,873 
Current period gross charge-offs$— $— $— $— $— $— $— $— 

Residential Real Estate: Mortgage
Performing$209,315 $259,076 $218,417 $177,518 $80,627 $282,916 $— $1,227,869 
Nonperforming
197 1,144 1,172 406 581 8,492 — 11,992 
Total $209,512 $260,220 $219,589 $177,924 $81,208 $291,408 $— $1,239,861 
Current period gross charge-offs$— $— $— $— $— $35 $— $35 

Residential Real Estate: HELOC
Performing$99 $205 $379 $98 $221 $1,838 $170,694 $173,534 
Nonperforming
— — — — 32 603 180 815 
Total $99 $205 $379 $98 $253 $2,441 $170,874 $174,349 
Current period gross charge-offs$— $— $— $— $— $9 $— $9 
December 31, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Residential Real Estate: Installment
Performing$2,225 $162 $— $3 $144 $3,354 $— $5,888 
Nonperforming
— — — — — 16 — 16 
Total $2,225 $162 $— $3 $144 $3,370 $— $5,904 
Current period gross charge-offs$— $— $— $— $— $— $— $— 

Consumer: Consumer
Performing$627,985 $613,019 $319,161 $214,714 $81,446 $65,955 $18,605 $1,940,885 
Nonperforming
395 891 654 435 216 389 4 2,984 
Total $628,380 $613,910 $319,815 $215,149 $81,662 $66,344 $18,609 $1,943,869 
Current period gross charge-offs$560 $3,517 $2,371 $763 $545 $480 $6 $8,242 

Consumer: Check loans
Performing$— $— $— $— $— $— $2,067 $2,067 
Nonperforming
— — — — — — — — 
Total $— $— $— $— $— $— $2,067 $2,067 
Current period gross charge-offs$— $— $— $— $— $— $51 $51 

Total Consumer Loans
Performing$894,027 $896,681 $545,666 $396,584 $166,042 $356,954 $191,635 $3,447,589 
Nonperforming
592 2,035 1,826 867 829 9,500 184 15,833 
Total $894,619 $898,716 $547,492 $397,451 $166,871 $366,454 $191,819 $3,463,422 
Current period gross charge-offs$1,624 $3,517 $2,371 $763 $545 $524 $57 $9,401 
Loans and Leases Acquired with Deteriorated Credit Quality
PCD loans are individually evaluated on a quarterly basis to determine if a reserve is necessary. At September 30, 2024 and at December 31, 2023, there was no ACL on PCD loans. The carrying amount of accruing loans acquired with deteriorated credit quality at September 30, 2024 and at December 31, 2023 was $2.2 million and $2.8 million, respectively. The carrying amount of nonaccrual loans acquired with deteriorated credit quality was $548,000 and $534,000 at September 30, 2024 and at December 31, 2023, respectively.

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 an interest rate reduction.

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 reduction.

The starting point for the estimate of the ACL 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 ACL and a change to the ACL is generally not recorded upon modification. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL.