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Loans

9 Months Ended

Sep. 30, 2025

Sep. 30, 2024

Loans and Leases Receivable Disclosure [Abstract]

Loans

The following tables present the amortized cost basis of loans at September 30, 2025 and 2024 that were both experiencing financial difficulty and modified during the three months and the nine months ended September 30, 2025 and 2024 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, 2025
(Dollars in thousands)						Principal Forgiveness						Payment Delay						Term Extension						Interest Rate Reduction						Combination Term Extension and Interest Rate Reduction						Combination Term Extension and Payment Delay						Total						Percent of Total Class of Financing Receivable
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	—					$	—					$	4,164					$	593					$	6,765					$	—					$	11,522					0.97		%
Overdrafts						—						—						—						—						—						—						—						—		%
Commercial real estate						—						—						5,192						—						479						—						5,671						0.27		%
Construction real estate:
Commercial						—						—						—						—						777						—						777						0.23		%
Retail						—						—						—						—						—						—						—						—		%
Residential real estate:
Commercial						—						—						—						—						398						—						398						0.06		%
Mortgage						—						—						—						—						—												—						—		%
HELOC						—						—						—						—						—						—						—						—		%
Installment						—						—						6						—						—						—						6						0.10		%
Consumer:
Consumer						—						—						—						—						—						—						—						—		%
Check loans						—						—						—						—						—						—						—						—		%
Leases						—						—						—						—						—						—						—						—		%
Total						$	—					$	—					$	9,362					$	593					$	8,419					$	—					$	18,374					0.23		%

						Three Months Ended September 30, 2024
(Dollars in thousands)						Principal Forgiveness						Payment Delay						Term Extension						Interest Rate Reduction						Combination Term Extension and Interest Rate Reduction						Combination Term Extension and Payment Delay						Total						Percent of Total Class of Financing Receivable
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	—					$	—					$	6,137					$	416					$	—					$	—					$	6,553					0.50		%
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		%

						Nine Months Ended September 30, 2025
(Dollars in thousands)						Principal Forgiveness						Payment Delay						Term Extension						Interest Rate Reduction						Combination Term Extension and Interest Rate Reduction						Combination Term Extension and Payment Delay						Total						Percent of Total Class of Financing Receivable
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	—					$	916					$	23,145					$	145					$	7,359					$	—					$	31,565					2.65		%
Overdrafts						—						—						—						—						—						—						—						—		%
Commercial real estate						—						4,670						3,385						1,445						1,334						1,976						12,810						0.60		%
Construction real estate:
Commercial						—						—						—						—						777						—						777						0.23		%
Retail						—						—						—						—						—						—						—						—		%
Residential real estate:
Commercial						—						898						503						—						398						—						1,799						0.25		%
Mortgage						—						—						—						—						—						971						971						0.07		%
HELOC						—						—						—						—						—						—						—						—		%
Installment						—						—						194						—						38						—						232						3.94		%
Consumer:
Consumer						—						—						—						35						—						—						35						—		%
Check loans						—						—						—						—						—						—						—						—		%
Leases						—						—						—						—						—						—						—						—		%
Total						$	—					$	6,484					$	27,227					$	1,625					$	9,906					$	2,947					$	48,189					0.60		%

Park had commitments to lend $5.4 million related to loans which were both experiencing financial difficulty and modified during the nine months ended September 30, 2025.

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, 2025 and 2024:

						Three Months Ended September 30, 2025
(Dollars in thousands)						Principal Forgiveness						Weighted Average Interest Rate Reduction						Weighted Average Term Extension (years)						Weighted Average Payment Delay (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	—					(4.75)		%				0.9						0.0
Overdrafts						—						—		%				0.0						0.0
Commercial real estate						—						(0.74)		%				1.1						0.0
Construction real estate:
Commercial						—						(0.31)		%				0.8						0.0
Retail						—						—		%				0.0						0.0
Residential real estate:
Commercial						—						(1.03)		%				3.0						0.0
Mortgage						—						—		%				0.0						0.0
HELOC						—						—		%				0.0						0.0
Installment						—						—		%				10.0						0.0
Consumer:
Consumer						—						—		%				0.0						0.0
Check loans						—						—		%				0.0						0.0
Leases						—						—		%				0.0						0.0
Total						$	—					(3.99)		%				1.0						0.0

						Three Months Ended September 30, 2024
(Dollars in thousands)						Principal Forgiveness						Weighted Average Interest Rate Reduction						Weighted Average Term Extension (years)						Weighted Average Payment Delay (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	—					(2.68)		%				0.5						0.0
Overdrafts						—						—		%				0.0						0.0
Commercial real estate						—						(1.01)		%				5.6						0.0
Construction real estate:
Commercial						—						—		%				0.0						0.0
Retail						—						—		%				0.0						0.0
Residential real estate:
Commercial						—						—		%				0.3						0.0
Mortgage						—						(2.30)		%				6.5						0.0
HELOC						—						—		%				0.0						0.0
Installment						—						—		%				7.6						0.0
Consumer:
Consumer						—						(2.79)		%				0.0						0.0
Check loans						—						—		%				0.0						0.0
Leases						—						—		%				0.0						0.0
Total						$	—					(2.27)		%				1.8						0.0

						Nine Months Ended September 30, 2025
(Dollars in thousands)						Principal Forgiveness						Weighted Average Interest Rate Reduction						Weighted Average Term Extension (years)						Weighted Average Payment Delay (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	—					(4.66)		%				1.1						0.4
Overdrafts						—						—		%				0.0						0.0
Commercial real estate						—						(0.70)		%				2.5						0.5
Construction real estate:
Commercial						—						(0.31)		%				0.8						0.0
Retail						—						—		%				0.0						0.0
Residential real estate:
Commercial						—						(1.03)		%				2.7						0.5
Mortgage						—						—		%				0.5						0.5
HELOC						—						—		%				0.0						0.0
Installment						—						(0.31)		%				11.1						0.0
Consumer:
Consumer						—						(0.29)		%				0.0						0.0
Check loans						—						—		%				0.0						0.0
Leases						—						—		%				0.0						0.0
Total						$	—					(3.26)		%				1.4						0.5

						Nine Months Ended September 30, 2024
(Dollars in thousands)						Principal Forgiveness						Weighted Average Interest Rate Reduction						Weighted Average Term Extension (years)						Weighted Average Payment Delay (years)
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	—					(2.65)		%				0.4						0.4
Overdrafts						—						—		%				0.0						0.0
Commercial real estate						—						(1.68)		%				3.7						0.4
Construction real estate:
Commercial						—						—		%				0.0						0.0
Retail						—						—		%				0.0						0.0
Residential real estate:
Commercial						—						(1.00)		%				2.3						0.0
Mortgage						—						(2.30)		%				5.9						0.0
HELOC						—						—		%				0.0						0.0
Installment						—						(1.22)		%				8.9						0.0
Consumer:
Consumer						—						(4.18)		%				0.0						0.0
Check loans						—						—		%				0.0						0.0
Leases						—						—		%				0.0						0.0
Total						$	—					(1.92)		%				1.5						0.4

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 tables provide 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, 2025 and September 30, 2024, respectively:

			Twelve Months Ended September 30, 2025
(Dollars in thousands)						Current						30-59 days past due						60-89 days past due						90 days or more past due						Total
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	35,274					$	—					$	262					$	—					$	35,536
Overdrafts						—						—						—						—						—
Commercial real estate						13,201						—						175						147						13,523
Construction real estate:
Commercial						777						—						—						—						777
Retail						—						—						—						—						—
Residential real estate:
Commercial						1,799						—						—						—						1,799
Mortgage						1,038						89						—						151						1,278
HELOC						—						—						—						—						—
Installment						258						—						—						20						278
Consumer:
Consumer						35						—												—						35
Check loans						—						—						—						—						—
Leases						—						—						—						—						—
Total						$	52,382					$	89					$	437					$	318					$	53,226

			Twelve Months Ended September 30, 2024
(Dollars in thousands)						Current						30-59 days past due						60-89 days past due						90 days or more past due						Total
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	10,939					$	—					$	6					$	7,624					$	18,569
Overdrafts						—						—						—						—						—
Commercial real estate						7,266						—						—						—						7,266
Construction real estate:
Commercial						—						—						—						—						—
Retail						—						—						—						—						—
Residential real estate:
Commercial						1,057						—						—						—						1,057
Mortgage						547						—						—						89						636
HELOC						—						—						—						—						—
Installment						623						—						—						19						642
Consumer:
Consumer						15						—						—						—						15
Check loans						—						—						—						—						—
Leases						—						—						—						—						—
Total						$	20,447					$	—					$	6					$	7,732					$	28,185

The following tables present the amortized cost basis of loans that had a payment default subsequent to modification during the three months and the nine months ended September 30, 2025 and 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. For these tables, 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, 2025
			Term Extension						Interest Rate Reduction						Combination Term Extension and Interest Rate Reduction						Combination Term Extension and Payment Delay
Commercial, financial and agricultural:
Commercial, financial and agricultural			$	800					$	—					$	262					$	—
Overdrafts			—						—						—						—
Commercial real estate			147						—						175						—
Construction real estate:
Commercial			—						—						—						—
Retail			—						—						—						—
Residential real estate:
Commercial			—						—						—						—
Mortgage			—						—						—						240
HELOC			—						—						—						—
Installment			—						—						20						—
Consumer:
Consumer			—						—						—						—
Check loans			—						—						—						—
Leases			—						—						—						—
Total loans			$	947					$	—					$	457					$	240

			Three Months Ended September 30, 2024
			Term Extension						Interest Rate Reduction						Combination Term Extension and Interest Rate Reduction						Payment Delay
Commercial, financial and agricultural:
Commercial, financial and agricultural			$	7,577					$	—					$	—					$	54
Overdrafts			—						—						—						—
Commercial real estate			—						—						—						—
Construction real estate:
Commercial			—						—						—						—
Retail			—						—						—						—
Residential real estate:
Commercial			—						—						—						—
Mortgage			—						89						70						—
HELOC			—						—						—						—
Installment			19						—						—						—
Consumer:
Consumer			—						—						—						—
Check loans			—						—						—						—
Leases			—						—						—						—
Total loans			$	7,596					$	89					$	70					$	54

			Nine Months Ended September 30, 2025
			Term Extension						Interest Rate Reduction						Combination Term Extension and Interest Rate Reduction						Combination Term Extension and Payment Delay
Commercial, financial and agricultural:
Commercial, financial and agricultural			$	800					$	—					262						$	—
Overdrafts			—						—						—						—
Commercial real estate			147						—						175						—
Construction real estate:
Commercial			—						—						—						—
Retail			—						—						—						—
Residential real estate:
Commercial			—						—						—						—
Mortgage			—												—						240
HELOC			—						—						—						—
Installment			—						—						20						—
Consumer:
Consumer			—												—						—
Check loans			—						—						—						—
Leases			—						—						—						—
Total loans			$	947					$	—					$	457					$	240

			Nine Months Ended September 30, 2024
			Term Extension						Interest Rate Reduction						Combination Term Extension and Interest Rate Reduction						Payment Delay
Commercial, financial and agricultural:
Commercial, financial and agricultural			$	10,164					$	—					$	—					$	54
Overdrafts			—						—						—						—
Commercial real estate			—						—						—						—
Construction real estate:
Commercial			—						—						—						—
Retail			—						—						—						—
Residential real estate:
Commercial			—						—						—						—
Mortgage			48						89						70						—
HELOC			—						—						—						—
Installment			19						—						—						—
Consumer:
Consumer			—						—						—						—
Check loans			—						—						—						—
Leases			—						—						—						—
Total loans			$	10,231					$	89					$	70					$	54

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, 2025 and at December 31, 2024 was as follows:

 

			September 30, 2025									December 31, 2024
(In thousands)			Amortized Cost									Amortized Cost
Commercial, financial and agricultural: (1)
Commercial, financial and agricultural (1)			$	1,191,148								$	1,268,110
Overdrafts			1,056									1,475
Commercial real estate (1)			2,126,156									1,994,332
Construction real estate:
Commercial			335,487									311,122
Retail			98,425									101,455
Residential real estate:
Commercial			712,510									644,418
Mortgage			1,397,361									1,346,543
HELOC			230,074									203,459
Installment			5,882									6,013
Consumer:
Consumer			1,860,866									1,908,473
Check loans			1,810									1,899
Leases			31,978									29,829
Total			$	7,992,753								$	7,817,128
Allowance for credit losses			(91,758)									(87,966)
Net loans			$	7,900,995								$	7,729,162

(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 $20.6 million at September 30, 2025, and of $20.4 million at December 31, 2024, which represented a net deferred income position at both dates. At September 30, 2025 and December 31, 2024, loans included purchase accounting adjustments of $161,000 and $669,000, 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 $1.1 million and $1.5 million were reclassified to loans at September 30, 2025 and at December 31, 2024, 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, 2025 and December 31, 2024.

 

						September 30, 2025
(In thousands)						Nonaccrual Loans									Loans Past Due 90 Days  or More and Accruing						Total Nonperforming Loans
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	46,013								$	—					$	46,013
Overdrafts						—									—						—
Commercial real estate						24,783									—						24,783
Construction real estate:
Commercial						21									—						21
Retail						58									18						76
Residential real estate:
Commercial						1,394									—						1,394
Mortgage						13,456									—						13,456
HELOC						1,101									27						1,128
Installment						26									20						46
Consumer:
Consumer						2,501									913						3,414
Check loans						—									—						—
Leases						240									—						240
Total loans						$	89,593								$	978					$	90,571

						December 31, 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						$	24,241					$	—					$	24,241
Overdrafts						—						—						—
Commercial real estate						23,230						—						23,230
Construction real estate:
Commercial						8						—						8
Retail						22						—						22
Residential real estate:
Commercial						5,700						—						5,700
Mortgage						11,368						913						12,281
HELOC						918						15						933
Installment						31						—						31
Consumer
Consumer						2,643						826						3,469
Check loans						—						—						—
Leases						17						—						17
Total loans						$	68,178					$	1,754					$	69,932

The following tables provide additional detail on nonaccrual loans and the related ACL, by class of loan, at September 30, 2025 and December 31, 2024:

						September 30, 2025
(In thousands)						Nonaccrual Loans With No ACL						Nonaccrual Loans With an ACL						Related ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	38,067					$	7,946					$	2,427
Overdrafts						—						—						—
Commercial real estate						23,801						982						124
Construction real estate:
Commercial						21						—						—
Retail						—						58						39
Residential real estate:
Commercial						1,394						—						—
Mortgage						—						13,456						169
HELOC						—						1,101						79
Installment						—						26						19
Consumer
Consumer						—						2,501						772
Check loans						—						—						—
Leases						69						171						30
Total loans						$	63,352					$	26,241					$	3,659

						December 31, 2024
(In thousands)						Nonaccrual Loans With No ACL						Nonaccrual Loans With an ACL						Related ACL
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	18,778					$	5,463					$	1,261
Overdrafts						—						—						—
Commercial real estate						23,230						—						—
Construction real estate:
Commercial						8						—						—
Retail						—						22						1
Residential real estate:
Commercial						3,755						1,945						39
Mortgage						—						11,368						128
HELOC						—						918						154
Installment						—						31						1
Consumer
Consumer						—						2,643						786
Check loans						—						—						—
Leases						17						—						—
Total						$	45,788					$	22,390					$	2,370

Nonaccrual commercial loans are evaluated on an individual basis and are excluded from the collective evaluation. Additionally, accruing collateral dependent commercial loans to borrowers experiencing financial difficulty are individually evaluated. Management’s general practice is to proactively charge down nonaccrual 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, 2025 and at December 31, 2024:

						September 30, 2025
(In thousands)						Real Estate						Business Assets						Other			Total
Commercial, financial and agricultural
Commercial, financial and agricultural						$	5,455					$	15,483					$	24,820		$	45,758
Commercial real estate						25,424						679						—			26,103
Construction real estate:
Commercial						569						—						—			569
Residential real estate:
Commercial						1,443						—						—			1,443
Mortgage						76						—						—			76
Leases						—						240						—			240
Total loans						$	32,967					$	16,402					$	24,820		$	74,189

						December 31, 2024
(In thousands)						Real Estate						Business Assets						Other			Total
Commercial, financial and agricultural
Commercial, financial and agricultural						$	5,583					$	11,423					$	22,187		$	39,193
Commercial real estate						24,539						8						—			24,547
Construction real estate:
Commercial						589						—						—			589
Residential real estate:
Commercial						5,898						—						—			5,898
Mortgage						78						—						—			78
Leases						—						17						—			17
Total loans						$	36,687					$	11,448					$	22,187		$	70,322

Interest income on nonaccrual loans 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 nine-month periods ended September 30, 2025 and 2024:

						Interest Income Recognized
(In thousands)						Three Months Ended September 30, 2025			Three Months Ended September 30, 2024			Nine Months Ended September 30, 2025			Nine Months Ended September 30, 2024
Commercial, financial and agricultural:
Commercial, financial and agricultural						$	746		441			$	1,365		$	1,018
Overdrafts						—			—			—			—
Commercial real estate						389			257			1,004			822
Construction real estate:
Commercial						—			—			3			38
Retail						—			1			—			1
Residential real estate:
Commercial						19			62			59			169
Mortgage						97			85			285			238
HELOC						7			2			20			9
Installment						1			—			3			—
Consumer:
Consumer						41			32			130			90
Check loans						—			—			—			—
Leases						9			—			9			—
Total loans						$	1,309		$	880		$	2,878		$	2,385

The following tables present the aging of the amortized cost in past due loans at September 30, 2025 and at December 31, 2024 by class of loan:

			September 30, 2025
(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			$	497					$	10,270					$	10,767					$	1,180,381					$	1,191,148
Overdrafts			—						—						—						1,056						1,056
Commercial real estate			1,236						1,412						2,648						2,123,508						2,126,156
Construction real estate:
Commercial			496						—						496						334,991						335,487
Retail			161						76						237						98,188						98,425
Residential real estate:
Commercial			62						291						353						712,157						712,510
Mortgage			15,348						6,797						22,145						1,375,216						1,397,361
HELOC			54						727						781						229,293						230,074
Installment			27						22						49						5,833						5,882
Consumer:
Consumer			8,934						1,288						10,222						1,850,644						1,860,866
Check loans			1						—						1						1,809						1,810
Leases			—						—						—						31,978						31,978
Total loans			$	26,816					$	20,883					$	47,699					$	7,945,054					$	7,992,753

(1) Includes an aggregate of $978,000 of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.

(2) Includes an aggregate of $69.7 million of nonaccrual loans which were current with respect to contractual principal and interest payments.

			December 31, 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			$	1,901					$	13,234					$	15,135					$	1,252,975					$	1,268,110
Overdrafts			—						—						—						1,475						1,475
Commercial real estate			458						2,594						3,052						1,991,280						1,994,332
Construction real estate:
Commercial			—						—						—						311,122						311,122
Retail			100						22						122						101,333						101,455
Residential real estate:
Commercial			—						2,164						2,164						642,254						644,418
Mortgage			13,403						5,946						19,349						1,327,194						1,346,543
HELOC			438						620						1,058						202,401						203,459
Installment			39						22						61						5,952						6,013
Consumer
Consumer			10,309						1,195						11,504						1,896,969						1,908,473
Check loans			3						—						3						1,896						1,899
Leases			—						—						—						29,829						29,829
Total loans			$	26,651					$	25,797					$	52,448					$	7,764,680					$	7,817,128

(1) Includes an aggregate of $1.8 million of loans past due 90 days or more and accruing. The remaining loans were past due nonaccrual loans.

(2) Includes an aggregate of $44.1 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, 2025 and December 31, 2024 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, 2025 and at December 31, 2024 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, 2025 and for the year ended December 31, 2024.

September 30, 2025			Term Loans Amortized Cost Basis by Origination Year
(In thousands)			2025			2024			2023			2022			2021			Prior			Revolving Loans Amortized Cost Basis			Total
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass			$	188,427		$	188,252		$	117,486		$	64,743		$	62,432		$	66,034		$	433,371		$	1,120,745
Special Mention			1,473			1,978			978			3,125			714			418			15,327			24,013
Substandard			1,583			1,088			816			4,502			1,980			5,441			29,422			44,832
Doubtful			258			330			602			50			33			201			84			1,558
Total			$	191,741		$	191,648		$	119,882		$	72,420		$	65,159		$	72,094		$	478,204		$	1,191,148
Current period gross charge-offs			$	26		$	3		$	137		$	111		$	—		$	1		$	6		$	284

Commercial real estate (1)
Risk rating
Pass			$	267,676		$	363,286		$	232,641		$	281,547		$	280,264		$	608,956		$	33,177		$	2,067,547
Special Mention			2,066			3,792			6,417			11,688			1,899			5,819			960			32,641
Substandard			783			2,713			2,364			4,396			1,680			10,360			3,672			25,968
Doubtful			—			—			—			—			—			—			—			—
Total			$	270,525		$	369,791		$	241,422		$	297,631		$	283,843		$	625,135		$	37,809		$	2,126,156
Current period gross charge-offs			$	—		$	—		$	68		$	—		$	—		$	—		$	—		$	68

Construction real estate: Commercial
Risk rating
Pass			$	87,225		$	148,914		$	43,356		$	18,708		$	1,299		$	4,082		$	29,062		$	332,646
Special Mention			777			—			—			—			—			—			1,495			2,272
Substandard			—			—			569			—			—			—			—			569
Doubtful			—			—			—			—			—			—			—			—
Total			$	88,002		$	148,914		$	43,925		$	18,708		$	1,299		$	4,082		$	30,557		$	335,487
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Residential Real Estate: Commercial
Risk rating
Pass			$	139,924		$	113,630		$	100,359		$	83,261		$	84,427		$	153,002		$	27,975		$	702,578
Special Mention			581			1,203			525			562			1,086			1,409			2,829			8,195
Substandard			73			197			83			445			308			485			146			1,737
Doubtful			—			—			—			—			—			—			—			—
Total			$	140,578		$	115,030		$	100,967		$	84,268		$	85,821		$	154,896		$	30,950		$	712,510
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

September 30, 2025			Term Loans Amortized Cost Basis by Origination Year
(In thousands)			2025			2024			2023			2022			2021			Prior			Revolving Loans Amortized Cost Basis			Total
Leases
Risk rating
Pass			$	13,213		$	11,274		$	4,319		$	1,925		$	600		$	407		$	—		$	31,738
Special Mention			—			—			—			—			—			—			—			—
Substandard			—			—			38			193			—			9			—			240
Doubtful			—			—			—			—			—			—			—			—
Total			$	13,213		$	11,274		$	4,357		$	2,118		$	600		$	416		$	—		$	31,978
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Total Commercial Loans
Risk rating
Pass			$	696,465		$	825,356		$	498,161		$	450,184		$	429,022		$	832,481		$	523,585		$	4,255,254
Special Mention			4,897			6,973			7,920			15,375			3,699			7,646			20,611			67,121
Substandard			2,439			3,998			3,870			9,536			3,968			16,295			33,240			73,346
Doubtful			258			330			602			50			33			201			84			1,558
Total			$	704,059		$	836,657		$	510,553		$	475,145		$	436,722		$	856,623		$	577,520		$	4,397,279
Current period gross charge-offs			$	26		$	3		$	205		$	111		$	—		$	1		$	6		$	352

(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, 2024			Term Loans Amortized Cost Basis by Origination Year
(In thousands)			2024			2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost Basis			Total
Commercial, financial and agricultural: Commercial, financial and agricultural (1)
Risk rating
Pass			$	239,260		$	150,007		$	97,761		$	80,956		$	66,332		$	53,327		$	506,998		$	1,194,641
Special Mention			2,709			1,222			3,819			314			818			1,467			37,447			47,796
Substandard			1,574			633			264			1,879			817			5,232			12,417			22,816
Doubtful			371			944			256			104			336			—			846			2,857
Total			$	243,914		$	152,806		$	102,100		$	83,253		$	68,303		$	60,026		$	557,708		$	1,268,110
Current period gross charge-offs			$	—		$	104		$	143		$	20		$	1,317		$	2,872		$	50		$	4,506

Commercial real estate (1)
Risk rating
Pass			$	329,203		$	252,923		$	289,622		$	296,745		$	276,181		$	459,856		$	30,203		$	1,934,733
Special Mention			3,054			2,779			11,978			4,071			5,728			7,416			1,165			36,191
Substandard			2,083			1,477			3,037			3,310			2,223			7,850			2,985			22,965
Doubtful			—			—			443			—			—			—			—			443
Total			$	334,340		$	257,179		$	305,080		$	304,126		$	284,132		$	475,122		$	34,353		$	1,994,332
Current period gross charge-offs			$	—		$	99		$	—		$	—		$	—		$	—		$	—		$	99

December 31, 2024			Term Loans Amortized Cost Basis by Origination Year
(In thousands)			2024			2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost Basis			Total
Construction real estate: Commercial
Risk rating
Pass			$	158,403		$	83,233		$	32,035		$	2,623		$	3,014		$	2,783		$	22,896		$	304,987
Special Mention			5,084			—			374			—			—			—			88			5,546
Substandard			8			581			—			—			—			—			—			589
Doubtful			—			—			—			—			—			—			—			—
Total			$	163,495		$	83,814		$	32,409		$	2,623		$	3,014		$	2,783		$	22,984		$	311,122
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Residential Real Estate: Commercial
Risk rating
Pass			$	120,873		$	111,577		$	88,292		$	92,240		$	102,999		$	93,918		$	20,455		$	630,354
Special Mention			1,403			540			661			437			831			941			3,165			7,978
Substandard			351			91			2,790			324			1,262			1,123			145			6,086
Doubtful			—			—			—			—			—			—			—			—
Total			$	122,627		$	112,208		$	91,743		$	93,001		$	105,092		$	95,982		$	23,765		$	644,418
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Leases
Risk rating
Pass			$	17,537		$	5,868		$	3,557		$	1,243		$	967		$	315		$	—		$	29,487
Special Mention			—			46			251			—			28			—			—			325
Substandard			17			—			—			—			—			—			—			17
Doubtful			—			—			—			—			—			—			—			—
Total			$	17,554		$	5,914		$	3,808		$	1,243		$	995		$	315		$	—		$	29,829
Current period gross charge-offs			$	8		$	—		$	—		$	—		$	—		$	—		$	—		$	8

Total Commercial Loans
Risk rating
Pass			$	865,276		$	603,608		$	511,267		$	473,807		$	449,493		$	610,199		$	580,552		$	4,094,202
Special Mention			12,250			4,587			17,083			4,822			7,405			9,824			41,865			97,836
Substandard			4,033			2,782			6,091			5,513			4,302			14,205			15,547			52,473
Doubtful			371			944			699			104			336			—			846			3,300
Total			$	881,930		$	611,921		$	535,140		$	484,246		$	461,536		$	634,228		$	638,810		$	4,247,811
Current period gross charge-offs			$	8		$	203		$	143		$	20		$	1,317		$	2,872		$	50		$	4,613

(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, 2025 and for the year ended December 31, 2024. Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.

September 30, 2025			Term Loans Amortized Cost Basis by Origination Year
(In thousands)			2025			2024			2023			2022			2021			Prior			Revolving Loans Amortized Cost Basis			Total
Commercial, financial and agricultural: Overdrafts
Performing			$	1,056		$	—		$	—		$	—		$	—		$	—		$	—		$	1,056
Nonperforming			—			—			—			—			—			—			—			—
Total			$	1,056		$	—		$	—		$	—		$	—		$	—		$	—		$	1,056
Current period gross charge-offs			$	764		$	—		$	—		$	—		$	—		$	—		$	—		$	764

Construction Real Estate: Retail
Performing			$	31,080		$	34,071		$	13,799		$	7,343		$	5,078		$	6,912		$	66		$	98,349
Nonperforming			—			—			—			—			18			58			—			76
Total			$	31,080		$	34,071		$	13,799		$	7,343		$	5,096		$	6,970		$	66		$	98,425
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Residential Real Estate: Mortgage
Performing			$	143,802		$	203,622		$	229,605		$	230,773		$	174,589		$	401,514		$	—		$	1,383,905
Nonperforming			—			1,633			2,677			1,728			1,187			6,231			—			13,456
Total			$	143,802		$	205,255		$	232,282		$	232,501		$	175,776		$	407,745		$	—		$	1,397,361
Current period gross charge-offs			$	—		$	100		$	52		$	—		$	—		$	—		$	—		$	152

Residential Real Estate: HELOC
Performing			$	—		$	121		$	513		$	464		$	298		$	846		$	226,704		$	228,946
Nonperforming			—			16			63			91			29			654			275			1,128
Total			$	—		$	137		$	576		$	555		$	327		$	1,500		$	226,979		$	230,074
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Residential Real Estate: Installment
Performing			$	905		$	977		$	1,308		$	81		$	—		$	2,565		$	—		$	5,836
Nonperforming			—			19			—			—			—			27			—			46
Total			$	905		$	996		$	1,308		$	81		$	—		$	2,592		$	—		$	5,882
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Consumer: Consumer
Performing			$	473,356		$	467,378		$	334,718		$	308,385		$	138,050		$	124,305		$	11,260		$	1,857,452
Nonperforming			215			603			778			844			442			532			—			3,414
Total			$	473,571		$	467,981		$	335,496		$	309,229		$	138,492		$	124,837		$	11,260		$	1,860,866
Current period gross charge-offs			$	202		$	2,179		$	3,521		$	2,524		$	1,020		$	744		$	8		$	10,198

September 30, 2025			Term Loans Amortized Cost Basis by Origination Year
(In thousands)			2025			2024			2023			2022			2021			Prior			Revolving Loans Amortized Cost Basis			Total
Consumer: Check loans
Performing			$	—		$	—		$	—		$	—		$	—		$	—		$	1,810		$	1,810
Nonperforming			—			—			—			—			—			—			—			—
Total			$	—		$	—		$	—		$	—		$	—		$	—		$	1,810		$	1,810
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	24		$	24

Total Consumer Loans
Performing			$	650,199		$	706,169		$	579,943		$	547,046		$	318,015		$	536,142		$	239,840		$	3,577,354
Nonperforming			215			2,271			3,518			2,663			1,676			7,502			275			18,120
Total			$	650,414		$	708,440		$	583,461		$	549,709		$	319,691		$	543,644		$	240,115		$	3,595,474
Current period gross charge-offs			$	966		$	2,279		$	3,573		$	2,524		$	1,020		$	744		$	32		$	11,138

December 31, 2024			Term Loans Amortized Cost Basis by Origination Year
(In thousands)			2024			2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost Basis			Total
Commercial, financial and agricultural: Overdrafts
Performing			$	1,475		$	—		$	—		$	—		$	—		$	—		$	—		$	1,475
Nonperforming			—			—			—			—			—			—			—			—
Total			1,475			$	—		$	—		$	—		$	—		$	—		$	—		$	1,475
Current period gross charge-offs			$	937		$	—		$	—		$	—		$	—		$	—		$	—		$	937

Construction Real Estate: Retail
Performing			$	51,109		$	26,237		$	8,517		$	6,233		$	3,571		$	5,306		$	460		$	101,433
Nonperforming			—			—			—			—			22			—			—			22
Total			$	51,109		$	26,237		$	8,517		$	6,233		$	3,593		$	5,306		$	460		$	101,455
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Residential Real Estate: Mortgage
Performing			$	194,883		$	236,260		$	250,132		$	192,193		$	157,438		$	303,356		$	—		$	1,334,262
Nonperforming			536			721			1,324			729			1,508			7,463			—			12,281
Total			$	195,419		$	236,981		$	251,456		$	192,922		$	158,946		$	310,819		$	—		$	1,346,543
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	22		$	—		$	22

Residential Real Estate: HELOC
Performing			$	13		$	153		$	577		$	333		$	56		$	1,048		$	200,346		$	202,526
Nonperforming			—			39			14			56			—			610			214			933
Total			$	13		$	192		$	591		$	389		$	56		$	1,658		$	200,560		$	203,459
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	9		$	—		$	9

December 31, 2024			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: Installment
Performing			$	1,198		$	1,704		$	133		$	—		$	—		$	2,947		$	—		$	5,982
Nonperforming			—			—			—			—			2			29			—			31
Total			$	1,198		$	1,704		$	133		$	—		$	2		$	2,976		$	—		$	6,013
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Consumer: Consumer
Performing			$	607,783		$	454,403		$	427,982		$	204,806		$	126,075		$	76,707		$	7,248		$	1,905,004
Nonperforming			337			1,035			928			452			310			404			3			3,469
Total			$	608,120		$	455,438		$	428,910		$	205,258		$	126,385		$	77,111		$	7,251		$	1,908,473
Current period gross charge-offs			$	683		$	3,532		$	4,596		$	2,328		$	809		$	743		$	2		$	12,693

Consumer: Check loans
Performing			$	—		$	—		$	—		$	—		$	—		$	—		$	1,899		$	1,899
Nonperforming			—			—			—			—			—			—			—			—
Total			$	—		$	—		$	—		$	—		$	—		$	—		$	1,899		$	1,899
Current period gross charge-offs			$	—		$	—		$	—		$	—		$	—		$	—		$	60		$	60

Total Consumer Loans
Performing			$	856,461		$	718,757		$	687,341		$	403,565		$	287,140		$	389,364		$	209,953		$	3,552,581
Nonperforming			873			1,795			2,266			1,237			1,842			8,506			217			16,736
Total			$	857,334		$	720,552		$	689,607		$	404,802		$	288,982		$	397,870		$	210,170		$	3,569,317
Current period gross charge-offs			$	1,620		$	3,532		$	4,596		$	2,328		$	809		$	774		$	62		$	13,721

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, 2025 and at December 31, 2024, there was no ACL on PCD loans. The carrying amount of accruing loans acquired with deteriorated credit quality at September 30, 2025 and at December 31, 2024 was $2.0 million and $2.2 million, respectively. The carrying amount of nonaccrual loans acquired with deteriorated credit quality was $525,000 and $551,000 at September 30, 2025 and at December 31, 2024, 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.

X

- References

No definition available.

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X

- Definition

The entire disclosure for claims held for amounts due to 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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

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