Repurchase Agreement Borrowings

Securities sold under agreements to repurchase ("repurchase agreements") with customers represent funds deposited by customers, generally on an overnight basis, that are collateralized by investment securities owned by Park. Repurchase agreements with customers are included in short-term borrowings on the consolidated condensed balance sheets. Park's repurchase agreements with a third-party financial institution are classified as long-term debt on the consolidated condensed balance sheets.

All repurchase agreements are subject to terms and conditions of repurchase/security agreements between Park and the client and are accounted for as secured borrowings. Park's repurchase agreements reflected in short-term borrowings consist of customer accounts and securities which are pledged on an individual security basis.

At March 31, 2015 and December 31, 2014, Park's repurchase agreement borrowings totaled $540 million and $577 million, respectively. These borrowings were collateralized with U.S. government and agency securities with a carrying value of $581 million and $664 million at March 31, 2015 and December 31, 2014, respectively.

The following table presents the carrying value of Park's repurchase agreements by remaining contractual maturity at March 31, 2015 and December 31, 2014:



	March 31, 2015
(in thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government and agency securities	$	234,438	$	26	$	1,878	$	303,619	$	539,961

	December 31, 2014
(in thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government and agency securities	$	268,427	$	164	$	4,940	$	303,449	$	576,980

On November 30, 2012, Park restructured $300 million in repurchase agreements with a third-party financial institution paying a $25 million prepayment penalty. The penalty is included in long-term debt and is being amortized as an adjustment to interest expense over the remaining term of the repurchase agreements using the effective interest method. Of the $25 million prepayment penalty, $13.6 million and $14.8 million remained unamortized as of March 31, 2015 and December 31, 2014, respectively.