v3.26.1
Loan Servicing
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing of Financial Assets [Abstract]  
Loan Servicing Loan Servicing
 
Park serviced sold mortgage loans of $1.82 billion at June 30, 2026, compared to $1.84 billion at both December 31, 2025 and June 30, 2025. At both June 30, 2026 and December 31, 2025, $2.3 million of the sold mortgage loans were sold with recourse, compared to $2.4 million at June 30, 2025. Management closely monitors the delinquency rates on the mortgage loans sold with recourse. At both June 30, 2026 and December 31, 2025, management had established reserves of $18,000, 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
June 30, 		Six Months Ended
June 30,
(In thousands)(In thousands)2026202520262025
MSRs:
Carrying amount, net, beginning of period$13,623 $13,760 $13,697 $13,918 
Additions377 425 710 663 
Amortization(503)(450)(909)(848)
Change in valuation allowance— (6)(1)(4)
Carrying amount, net, end of period$13,497 $13,729 $13,497 $13,729 
Valuation allowance:
Beginning of period$4 $17 $3 $19 
Change in valuation allowance— 6 1 4 
End of period$4 $23 $4 $23 
 
Servicing fees included in "Other service income" were $1.2 million for both the three months ended June 30, 2026 and 2025, respectively, and $2.4 million for both the six months ended June 30, 2026 and 2025, respectively.