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 months ended September 30, 2012, there were no investment securities deemed to be other-than-temporarily impaired. During the nine months ended September 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 nine months ended September 30, 2011, there were no investment securities deemed to be other-than-temporarily impaired.

Investment securities at September 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	$	695,633	$	2,837	$	—	$	698,470
Obligations of states and political subdivisions	1,290		23		—		1,313
U.S. Government sponsored entities asset-backed securities	315,057		17,791		—		332,848
Other equity securities	1,134		1,108		3		2,239
Total	$	1,013,114	$	21,759	$	3	$	1,034,870



Securities Held-to-Maturity (In thousands)	Amortized Cost		Gross Unrecognized Holding Gains		Gross Unrecognized Holding Losses		Estimated Fair Value
Obligations of states and political subdivisions	$	570	$	1	$	—	$	571
U.S. Government sponsored entities asset-backed securities	552,034		13,039		45		565,028
Total	$	552,604	$	13,040	$	45	$	565,599

Management does not believe any of the unrealized losses at September 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 September 30, 2012, were as follows:



	Less than 12 months				12 months or longer				Total
(In thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government agencies	$	—	$	—	$	—	$	—	$	—	$	—
Other equity securities	$	46	$	3	$	—	$	—	$	46	$	3
Securities Held-to-Maturity
U.S. Government agencies' asset-backed securities	$	10,429	$	45	$	—	$	—	$	10,429	$	45
Total	$	10,475	$	48	$	—	$	—	$	10,475	$	48

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 (In thousands)	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:



	Less than 12 months				12 months or longer				Total
(In thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Securities Available-for-Sale
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
Total	$	—	$	—	$	38,855	$	64	$	38,855	$	64

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 September 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.



Securities Available-for-Sale (In thousands)	Amortized cost		Fair value
U.S. Treasury and sponsored entities notes:
Due within one year	$	695,633	$	698,470
Due one through five years	—		—
Due five through ten years	—		—
Total	$	695,633	$	698,470

Obligations of states and political subdivisions:
Due within one year	$	1,068	$	1,081
Due one through five years	222		232
	$	1,290	$	1,313

U.S. Government sponsored entities asset-backed securities:
Total	$	315,057	$	332,848



Securities Held-to-Maturity (In thousands)	Amortized cost		Fair value
Obligations of state and political subdivisions:
Due within one year	$	570	$	571
Due one through five years	—		—
Total	$	570	$	571
U.S. Government sponsored entities asset-backed securities:
Total	$	552,034	$	565,028

The $695.6 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 and nine month periods ended September 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. During the third quarter of 2011, Park sold $212.8 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $3.5 million.