Foreclosed and Repossessed Assets

12 Months Ended

Dec. 31, 2024

Foreclosed and Repossessed Assets

Park typically transfers a loan to OREO at the time that Park takes deed/title to the real estate property asset. The carrying amount of foreclosed real estate properties held at December 31, 2024 and December 31, 2023 are listed below, as well as the recorded investment of loans secured by residential real estate properties for which formal foreclosure proceedings were in process at those dates.


(In thousands)	December 31, 2024		December 31, 2023
OREO:
Commercial real estate	$	938	$	983
Total OREO	$	938	$	983

Loans in process of foreclosure:
Residential real estate	$	2,225	$	1,957

Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value, less costs to sell, when acquired.

During the years ended December 31, 2023 and 2022, Park recognized $46,000 and $12.0 million, respectively, in OREO valuation markups related to the foreclosure and subsequent sale of properties collateralizing former Vision Bank relationships. This income is included in "OREO valuation markup" on the Consolidated Statements of Income. There was no OREO valuation markup related to former Vision Bank relationships during the year ended December 31, 2024.

During the years ended December 31, 2024 and 2022, Park recognized $115,000 and $5.6 million, respectively, in net gains on the sale of OREO related to former Vision Bank relationships. This income is included in "Gain (loss) on the sale of OREO, net" on the Consolidated Statements of Income. There was no gain or loss on the sale of OREO related to former Vision Bank relationships during the years ended December 31, 2023.

In addition to real estate, Park may also repossess different types of collateral. As of December 31, 2024 and December 31, 2023, Park had $1.2 million and $1.1 million in other repossessed assets which are included in "Other assets" on the Consolidated Balance Sheets.