Other Investment Securities

9 Months Ended

Sep. 30, 2019

Other Investment Securities [Abstract]

Other investment securities consist of stock investments in the FHLB, the FRB, and equity securities. The FHLB and FRB restricted stock investments are carried at their redemption value. Equity securities with a readily determinable fair value are carried at fair value. Equity securities without a readily determinable fair value are recorded at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions ("modified cost"). Park's portfolio of equity investments in limited partnerships which provide mezzanine funding ("Partnership Investments") are valued using the net asset value practical expedient in accordance with ASC 820.

The carrying amount of other investment securities at September 30, 2019 and December 31, 2018 was as follows:



(In thousands)	September 30, 2019		December 31, 2018
FHLB stock	$	33,424	$	43,388
FRB stock	14,653		8,225
Equity investments carried at fair value	1,889		1,649
Equity investments carried at cost/modified cost ⁽¹⁾	2,689		2,589
Equity investments carried at net asset value	15,989		17,065
Total other investment securities	$	68,644	$	72,916

⁽¹⁾ There have been no impairments, downward adjustments, or upward adjustments made to equity investments carried at modified cost.

During the nine months ended September 30, 2019, the FHLB repurchased 99,646 shares of FHLB stock with a book value of $10.0 million, and Park purchased 128,553 shares of FRB stock, with a book value of $6.4 million.

During the three months ended September 30, 2019 and 2018, $58,000 and $(326,000), respectively, of unrealized gains (losses) on equity investments carried at fair value were recorded within "Gain on equity securities, net" on the consolidated condensed statements of income. During the nine months ended September 30, 2019 and 2018, $241,000 and $(33,000), respectively, of unrealized gains (losses) on equity investments carried at fair value were recorded within "Gain on equity securities, net" on the consolidated condensed statements of income.

During the three months ended September 30, 2019 and 2018, $3.3 million and $415,000, respectively, of gains on equity investments carried at NAV were recorded within “Gain on equity securities, net” on the consolidated condensed statements of income. During the nine months ended September 30, 2019 and 2018, $5.1 million and $1.2 million, respectively, of gains on equity investment carried at NAV were recorded within “Gain on equity securities, net” on the consolidated condensed statements of income.

An additional $3.5 million gain recorded within “Gain on equity securities, net” on the consolidated condensed statement of income for the nine months ended September 30, 2018 relates to Park's 8.55% investment in NewDominion which was held at June 30, 2018. See Note 3 - Business Combinations.