Investment Securities

6 Months Ended

Jun. 30, 2012

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The amortized cost and fair values of investment securities are shown in the following table. Management performs a quarterly evaluation of investment securities for any other-than-temporary impairment. For the three and six months ended June 30, 2012, Park recognized an other-than-temporary impairment charge of $54,000, related to an equity investment in a financial institution. For the three and six months ended June 30, 2011, there were no investment securities deemed to be other-than-temporarily impaired.

Investment securities at June 30, 2012, were as follows:

Securities Available-for-Sale (in thousands)	Amortized Cost		Gross Unrealized Holding  Gains		Gross Unrealized Holding  Losses		Estimated  Fair Value
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	490,000	$	1,961	$	192	$	491,769
Obligations of states and political subdivisions	2,615		35		—		2,650
U.S. Government sponsored entities asset-backed securities	352,970		17,622		—		370,592
Other equity securities	1,134		1,002		—		2,136
Total	$	846,719	$	20,620	$	192	$	867,147

Securities Held-to-Maturity	Amortized Cost		Gross Unrecognized Holding  Gains		Gross Unrecognized Holding  Losses		Estimated Fair Value
Obligations of states and political subdivisions	$	1,127	$	3	$	—	$	1,130
U.S. Government sponsored entities asset-backed securities	754,095		12,851		—		766,946
Total	$	755,222	$	12,854	$	—	$	768,076

Management does not believe any of the unrealized losses at June 30, 2012 or December 31, 2011 represent an other-than-temporary impairment. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized within net income in the period the other-than-temporary impairment is identified.

Securities with unrealized losses at June 30, 2012, were as follows:

(in thousands)	Less than 12 months				12 months or longer				Total
Securities Available-for-Sale	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Obligations of U.S. Treasury and other U.S. Government agencies	$	89,808	$	192	$	—	$	—	$	89,808	$	192
Total	$	89,808	$	192	$	—	$	—	$	89,808	$	192

Investment securities at December 31, 2011, were as follows:

Securities Available-for-Sale (in thousands)	Amortized  cost		Gross unrealized holding gains		Gross unrealized holding losses		Estimated fair value
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	370,043	$	1,614	$	—	$	371,657
Obligations of states and political subdivisions	2,616		44		—		2,660
U.S. Government sponsored entities asset-backed securities	427,300		16,995		—		444,295
Other equity securities	1,188		877		32		2,033
Total	$	801,147	$	19,530	$	32	$	820,645

Securities Held-to-Maturity	Amortized  cost		Gross unrecognized holding gains		Gross unrecognized holding losses		Estimated fair value
Obligations of states and political subdivisions	$	1,992	$	5	$	—	$	1,997
U.S. Government sponsored entities asset-backed securities	818,232		14,377		32		832,577
Total	$	820,224	$	14,382	$	32	$	834,574

Securities with unrealized losses at December 31, 2011, were as follows:

(in thousands)	Less than 12 months				12 months or longer				Total
Securities Available-for-Sale	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Other equity securities	$	—	$	—	$	80	$	32	$	80	$	32
Securities Held-to-Maturity
U.S. Government sponsored entities asset-backed securities	$	—	$	—	$	38,775	$	32	$	38,775	$	32

 Park’s U.S. Government sponsored entities asset-backed securities consist primarily of 15-year residential mortgage-backed securities and collateralized mortgage obligations.

The amortized cost and estimated fair value of investments in debt securities at June 30, 2012, are shown in the following table by contractual maturity or the expected call date, except for asset-backed securities, which are shown as a single total, due to the unpredictability of the timing in principal repayments.

(in thousands)	Amortized cost		Fair value
Securities Available-for-Sale
U.S. Treasury and sponsored entities notes:
Due within one year	$	400,000	$	401,961
Due one through five years	—		—
Due five through ten years	90,000		89,808
Total	$	490,000	$	491,769
Obligations of states and political subdivisions:
Due within one year	$	2,120	$	2,131
Due one through five years	495		519
	$	2,615	$	2,650
U.S. Government sponsored entities asset-backed securities:
Total	$	352,970	$	370,592

(in thousands)	Amortized cost		Fair value
Securities Held-to-Maturity
Obligations of state and political subdivisions:
Due within one year	$	1,037	$	1,040
Due one through five years	90		90
Total	$	1,127	$	1,130
U.S. Government sponsored entities asset-backed securities:
Total	$	754,095	$	766,946

The $490 million of Park’s securities shown in the above table as U.S. Treasury and sponsored entities notes are callable notes. These callable securities have a final maturity in 9 to 15 years, but are shown in the table at their expected call date.

There were no sales of investment securities during the three or six month periods ended June 30, 2012. During the first quarter of 2011, Park sold $105.4 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $6.6 million. Park also sold $1.0 million of municipal securities during the first quarter of 2011 for no gain or loss. During the second quarter of 2011, Park sold $191.0 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $15.4 million.