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Loan Servicing
 9 Months Ended
Sep. 30, 2024
Transfers and Servicing of Financial Assets [Abstract]  
Loan Servicing Loan Servicing
 
Park serviced sold mortgage loans of $1.87 billion at September 30, 2024, $1.93 billion at December 31, 2023 and $1.96 billion at September 30, 2023. At September 30, 2024, $2.6 million of the sold mortgage loans were sold with recourse, compared to $2.9 million at December 31, 2023 and $3.0 million at September 30, 2023. Management closely monitors the delinquency rates on the mortgage loans sold with recourse. At September 30, 2024 and December 31, 2023, management had established reserves of $50,000 and $54,000, respectively, to account for expected losses on loan repurchases.
 
When Park sells mortgage loans with servicing rights retained, these servicing rights are initially recorded at fair value. Park has selected the “amortization method” as permissible within U.S. GAAP, whereby the servicing rights capitalized are amortized in proportion to and over the period of estimated future servicing income with respect to the underlying loan. At the end of each reporting period, the carrying value of MSRs is assessed for impairment with a comparison to fair value. MSRs are carried at the lower of their amortized cost or fair value. The amortization of MSRs is included within "Other service income" in the consolidated condensed statements of income.

Activity for MSRs and the related valuation allowance follows:
 
Three Months Ended
September 30, 		Nine Months Ended
September 30,
(In thousands)2024202320242023
MSRs: 
Carrying amount, net, beginning of period$14,271 $15,237 $14,656 $15,792 
Additions286 169 684 437 
Amortization(494)(462)(1,343)(1,366)
Change in valuation allowance— 16 66 97 
Carrying amount, net, end of period$14,063 $14,960 $14,063 $14,960 
Valuation allowance: 
Beginning of period$28 $101 $94 $182 
Change in valuation allowance— (16)(66)(97)
End of period$28 $85 $28 $85 
 
Servicing fees included in "Other service income" were $1.2 million and $1.3 million for the three months ended September 30, 2024 and 2023, respectively, and were $3.7 million and $3.9 million for the nine months ended September 30, 2024 and 2023, respectively.