Investment in Qualified Affordable Housing

3 Months Ended

Mar. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investment in Qualified Affordable Housing

Investment in Qualified Affordable Housing

Park makes certain equity investments in various limited partnerships that sponsor affordable housing projects. The purposes of these investments are to achieve a satisfactory return on capital, help create affordable housing opportunities, and assist the Company to achieve its goals associated with the Community Reinvestment Act.

The table below details the balances of Park’s affordable housing tax credit investments and related unfunded commitments as of March 31, 2019 and December 31, 2018.

(in thousands)	March 31, 2019		December 31, 2018
Affordable housing tax credit investments	$	48,535	$	50,347
Unfunded commitments	19,624		22,282

Commitments are funded when capital calls are made by the general partner. Park expects that the current commitments will be funded between 2019 and 2029.

During the three months ended March 31, 2019 and 2018, Park recognized amortization expense of $1.8 million and $1.9 million, respectively, which was included within the provision for income taxes. Additionally, during the three months ended March 31, 2019 and 2018, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $2.2 million and $2.7 million, respectively, which was included within the provision for income taxes.