Derivatives

3 Months Ended

Mar. 31, 2019

Derivative [Line Items]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivatives

Park utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent the amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Interest Rate Swaps Designated as Cash Flow Hedges: Interest rate swaps with notional amounts totaling $25.0 million as of March 31, 2019 were designated as cash flow hedges of certain FHLB advances and were determined to be fully effective during the three months ended March 31, 2019. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other liabilities with changes in fair value recorded in other comprehensive income. The amount included in accumulated other comprehensive loss would be reclassified to current earnings should the hedges no longer be considered effective. Park expects the hedges to remain fully effective during the remaining terms of the swaps. There were no interest rate swaps as of December 31, 2018.

Summary information about the interest-rate swaps designated as cash flow hedges as of March 31, 2019 is as follows:

(In thousands)	March 31, 2019
Notional amounts	$	25,000
Weighted average pay rates	2.595		%
Weighted average receive rates	2.765		%
Weighted average maturity (years)	3.2
Unrealized losses	$	261

Interest income recorded on this swap transaction totaled $8,000 for the three months ended March 31, 2019. No interest income or expense related to swap transactions was recorded during the three months ended March 31, 2018.

Cash Flow Hedge

The following table presents the net gains (losses), net of income taxes, recorded in accumulated other comprehensive loss and the consolidated condensed statements of income related to the cash flow derivative instruments for the three months ended March 31, 2019.

	Three Months Ended March 31, 2019
(In thousands)	Amount of Gain (Loss) Recognized in OCI (Effective Portion)			Amount of Gain (Loss) Reclassified from OCI to Interest Income		Amount of Gain (Loss) Recognized in Other Non-interest Income (Ineffective Portion)
Interest rate contracts	$	(206	)	$	—	$	—

The following table reflects the cash flow hedges included in the consolidated condensed balance sheets as of March 31, 2019.

(In thousands)	March 31, 2019
	Notional Amount		Fair Value
Included in other liabilities:
Interest rate swaps related to FHLB advances	$	25,000	$	(261	)
Total included in other liabilities	$	25,000	$	(261	)