In 1992, Park changed its state of incorporation to Ohio. Our associates are our most valued resource. We strive to provide a safe, fair, caring and courteous work environment. We abhor prejudice on any level or any grounds. In 2021, we will launch a series of D&I training for all associates. Guardian Finance provides consumer finance services in the central Ohio area. The term of each commercial loan varies by its purpose. This is a national lending unit of Park National Bank. The home equity lines of credit are written with ten-year terms. SEPH has one office in Licking County, Ohio. Park expects that the OREO will reduce over time and result in cash inflow to Park. Various consumer laws and regulations also affect the operations of these subsidiaries. As a result, it is subject to regulation and deposit insurance assessments by the FDIC. The general insurance limit is $250,000 per separately insured depositor. Park National Bank is a member of the FHLB of Cincinnati. As of December 31, 2020, we hold and service PPP loans. There is also increased scrutiny of compliance with the rules enforced by OFAC. BUSINESS" of this Annual Report on Form 10-K under the caption "Competition." Consumers may also move money out of bank deposits in favor of other investments. These trends may result in losses of deposits and fee income. The financial services industry is extensively regulated. The DIF is funded by fees assessed on insured depository institutions. Integration efforts for any future acquisitions may not be successful. Park considers none of those proceedings to be material. These loans are graded from 1 to 8. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Other expense was impacted by the acquisition of Carolina Alliance. The table below breaks out the change in deposit balances, by deposit type. There were no cash flow hedging derivatives at year-end 2018. Management purchased $6.4 million of FRB stock in 2019. PNB charges fiduciary fees largely based on the market value of the trust assets. The loss emergence period was last updated in the fourth quarter of 2019. Management did not update the loss emergence period calculation in 2020. Including these loans artificially lowers the loss emergence period for 2020. All of these factors are evaluated in relation to the historical look back period. A 10 basis point reserve was calculated for these loans to reflect minimal credit risk. At December 31, 2020, a reserve of $167,000 had been established related to PCI loans. This will allow Park to utilize the CECL standard for the entire year of adoption. Commitments are funded when capital calls are made by the general partner. After acquisition, losses are recognized by an increase in the allowance for loan losses. Commercial TDRs are separately identified for impairment disclosures. Management continues to monitor economic factors to evaluate goodwill impairment. ( The Company\'s accounting policy is to recognize forfeitures as they occur. Changes in assumptions or in market conditions could significantly affect the estimates. All the contracts to which the Company is party settle monthly or quarterly. The amendments in this ASU are effective immediately for all entities. ASU 2020-03 represents changes to clarify or improve the ASC related to seven topics. The FHLB and FRB restricted stock investments are carried at their redemption value. These extensions of credit were offset by principal payments