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Fair Value (Tables)
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis
The following table presents assets and liabilities measured at fair value on a recurring basis:
 
Fair Value Measurements at March 31, 2021 using:
(In thousands)Level 1Level 2Level 3Balance at March 31, 2021
Assets    
Investment securities:    
Obligations of states and political subdivisions$— $298,313 $298,313 
U.S. Government sponsored entities’ asset-backed securities— 814,909 — 814,909 
Corporate debt securities— 2,062 — 2,062 
Equity securities1,522 — 490 2,012 
Mortgage loans held for sale— 17,766 — 17,766 
Mortgage IRLCs— 1,080 — 1,080 
Loan interest rate swaps— 2,278 — 2,278 
Liabilities    
Fair value swap$— $— $226 $226 
Borrowing interest rate swap— 727 — 727 
Loan interest rate swaps— 2,278 — 2,278 
 
Fair Value Measurements at December 31, 2020 using:
(In thousands)Level 1Level 2Level 3Balance at December 31, 2020
Assets    
Investment securities:    
Obligations of states and political subdivisions$— $305,218 $— $305,218 
U.S. Government sponsored entities’ asset-backed securities— 752,109 — 752,109 
Corporate debt securities— 2,014 — 2,014 
Equity securities2,026 — 485 2,511 
Mortgage loans held for sale— 31,666 — 31,666 
Mortgage IRLCs— 1,545 — 1,545 
Loan interest rate swaps— 3,934 — 3,934 
Liabilities    
Fair value swap$— $— $226 $226 
Borrowing interest rate swap— 885 — 885 
Loan interest rate swaps— 3,934 — 3,934 
Reconciliation Of Level 3 Input For Financial Instruments Measured On Recurring Basis
The tables below present a reconciliation of the beginning and ending balances of the Level 3 inputs for the three months ended March 31, 2021 and 2020, for financial instruments measured on a recurring basis and classified as Level 3:
Level 3 Fair Value Measurements
Three months ended March 31, 2021 and 2020
(In thousands)Equity
Securities		Fair value
swap
Balance at January 1, 2021$485 $(226)
Total gains (losses)  
Included in other income5 — 
Balance at March 31, 2021$490 $(226)
Balance at January 1, 2020$456 $(226)
Total gains (losses)  
Included in other income7 — 
Balance at March 31, 2020$463 $(226)
Assets And Liabilities Measured At Fair Value On A Nonrecurring Basis
The following tables present assets and liabilities measured at fair value on a nonrecurring basis. Collateral dependent impaired loans secured by real estate are carried at fair value if they have been charged down to fair value or if a specific valuation allowance has been established. As of March 31, 2021 and December 31, 2020, there were no PCD loans carried at fair value. A new cost basis is established at the time a property is initially recorded in OREO. OREO properties are carried at fair value if a devaluation has been taken with respect to the property's value subsequent to the initial measurement.
Fair Value Measurements at March 31, 2021 using:
(In thousands)Level 1Level 2Level 3Balance at March 31, 2021
Impaired loans recorded at fair value:    
Commercial real estate$— $— $7,151 $7,151 
Residential real estate— — 333 333 
Total impaired loans recorded at fair value$— $— $7,484 $7,484 
MSRs$— $13,307 $— $13,307 
OREO recorded at fair value:
Residential real estate— — 735 735 
Total OREO recorded at fair value$— $— $735 $735 
Other repossessed assets$— $— $3,164 $3,164 
 
Fair Value Measurements at December 31, 2020 using:
(In thousands)Level 1Level 2Level 3Balance at December 31, 2020
Impaired loans recorded at fair value:    
Commercial real estate$— $— $6,749 $6,749 
Residential real estate— — 175 175 
Total impaired loans recorded at fair value$— $— $6,924 $6,924 
MSRs$— $12,179 $— $12,179 
OREO recorded at fair value:
Residential real estate— — 735 735 
Total OREO recorded at fair value$— $— $735 $735 
Other repossessed assets$— $— $3,164 $3,164 
Schedule of impaired financing receivables additional info
The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2020:

12/31/2020
(In thousands)Unpaid Principal BalanceRecorded InvestmentACL Allocated
With no related allowance recorded
Commercial, financial and agricultural$23,316 $22,970 $— 
Commercial real estate63,639 63,467 — 
Construction real estate:
Commercial3,110 3,110 — 
Residential real estate:
Commercial4,522 4,448 — 
Leases568 568 — 
With an allowance recorded
Commercial, financial and agricultural5,881 5,866 3,758 
Commercial real estate6,890 6,890 1,316 
Construction real estate:
Commercial— — — 
Residential real estate:
Commercial109 109 16 
Leases1,027 1,027 344 
Total$109,062 $108,455 $5,434 

The following table provides the amortized cost basis of collateral-dependent loans by class of loan, as of March 31, 2021:

 March 31, 2021
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$8,482 $12,288 $1,204 $21,974 
Commercial real estate67,253 8,482 60 75,795 
Construction real estate:
Commercial3,946 — — 3,946 
Residential real estate:
Commercial6,880 — — 6,880 
Mortgage383 — — 383 
HELOC136 — — 136 
Leases— 1,577 — 1,577 
Total loans$87,080 $22,347 $1,264 $110,691 
Interest income on nonaccrual loans individually evaluated for impairment is recognized on a cash basis only when Park expects to receive the entire recorded investment in the loans. Interest income on accruing TDRs individually evaluated for impairment continues to be recorded on an accrual basis. The following table presents interest income recognized on nonaccrual loans for the three-month period ended March 31, 2021:

(In thousands)Interest Income Recognized
Commercial, financial and agricultural:
Commercial, financial and agricultural$57 
PPP loans— 
Overdrafts— 
Commercial real estate515 
Construction real estate:
Commercial33 
Retail1 
Residential real estate:
Commercial46 
Mortgage79 
HELOC4 
Installment1 
Consumer:
Consumer23 
GFSC5 
Check loans— 
Leases20 
Total loans$784 

The following table presents the average recorded investment and interest income recognized subsequent to impairment on loans individually evaluated for impairment as of and for the three months ended March 31, 2020:
  
Three months ended
March 31, 2020
(In thousands)Recorded Investment as of March 31, 2020Average Recorded InvestmentInterest Income Recognized
Commercial, financial and agricultural$29,542 $31,657 $204 
Commercial real estate50,147 44,457 481 
Construction real estate:
   Commercial452 424 4 
Residential real estate:
   Commercial5,581 2,925 23 
Leases129 132 — 
Total$85,851 $79,595 $712 
Qualitative Information about Level 3 Fair Value Measurements Measured on Non-Recurring Basis
The following tables present qualitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at March 31, 2021 and December 31, 2020:

March 31, 2021
(In thousands)Fair ValueValuation TechniqueUnobservable Input(s)Range
(Weighted Average)
Impaired loans:    
Commercial real estate$7,151 Sales comparison approachAdj to comparables
0.0% - 139.0% (12.2%)
Income approachCapitalization rate
8.5% (8.5%)
Cost approachEntrepreneurial profit
10.0% (10.0%)
Cost approachAccumulated depreciation
1.0% - 4.3% (1.7%)
Residential real estate$333 Sales comparison approachAdj to comparables
2.0% - 47.8% (22.1%)
Other real estate owned:
Residential real estate$735 Sales comparison approachAdj to comparables
1.2% - 54.1% (31.4%)

Balance at December 31, 2020
(In thousands)Fair ValueValuation TechniqueUnobservable Input(s)Range
(Weighted Average)
Impaired loans:    
Commercial real estate$6,749 Sales comparison approachAdj to comparables
0.0% - 139.0% (11.8%)
Income approachCapitalization rate
9.3% - 20.0% (10.3%)
Cost approachEntrepreneurial profit
10.0% (10.0%)
Cost approachAccumulated depreciation
2.6% (2.6%)
Residential real estate$175 Sales comparison approachAdj to comparables
2.0% - 47.8% (11.9%)
Other real estate owned:
Residential real estate$735 Sales comparison approachAdj to comparables
7.8% - 9.9% (8.9%)
Fair Value, by Balance Sheet Grouping
The fair value of certain financial instruments at March 31, 2021 and December 31, 2020, was as follows:

March 31, 2021
  Fair Value Measurements
(In thousands)Carrying valueLevel 1Level 2Level 3Total fair value
Financial assets:
Cash and money market instruments$943,275 $943,275 $— $— $943,275 
Investment securities (1)
1,115,284 — 1,115,284 — 1,115,284 
Other investment securities (2)
2,012 1,522 — 490 2,012 
Mortgage loans held for sale17,766 — 17,766 — 17,766 
Mortgage IRLCs1,080 — 1,080 — 1,080 
Impaired loans carried at fair value7,484 — — 7,484 7,484 
Other loans, net7,055,529 — — 7,079,812 7,079,812 
Loans receivable, net$7,081,859 $— $18,846 $7,087,296 $7,106,142 
Financial liabilities:     
Time deposits$822,195 $— $827,039 $— $827,039 
Other2,776 2,776 — — 2,776 
Deposits (excluding demand deposits)$824,971 $2,776 $827,039 $— $829,815 
Short-term borrowings$305,385 $— $305,385 $— $305,385 
Long-term debt30,000 — $29,413 $— $29,413 
Subordinated notes187,881 — 186,951 — 186,951 
Derivative financial instruments - assets:
Loan interest rate swaps2,278 — 2,278 — 2,278 
Derivative financial instruments - liabilities:     
Fair value swap226 — — 226 226 
Borrowing interest rate swap727 — 727 — 727 
Loan interest rate swaps2,278 — 2,278 — 2,278 

(1) Includes AFS debt securities.
(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.
December 31, 2020
  Fair Value Measurements
(In thousands)Carrying valueLevel 1Level 2Level 3Total fair value
Financial assets:
Cash and money market instruments$370,474 $370,474 $— $— $370,474 
Investment securities (1)
1,059,341 — 1,059,341 — 1,059,341 
Other investment securities (2)
2,511 2,026 — 485 2,511 
Mortgage loans held for sale31,666 — 31,666 — 31,666 
Mortgage IRLCs1,545 — 1,545 — 1,545 
Impaired loans carried at fair value6,924 — — 6,924 6,924 
Other loans, net7,051,975 — — 7,072,339 7,072,339 
Loans receivable, net$7,092,110 $— $33,211 $7,079,263 $7,112,474 
Financial liabilities:     
Time deposits$864,573 $— $870,804 — $870,804 
Other1,379 1,379 — — 1,379 
Deposits (excluding demand deposits)$865,952 $1,379 $870,804 $— $872,183 
Short-term borrowings$342,230 $— $342,230 $— $342,230 
Long-term debt32,500 — 31,376 — 31,376 
Subordinated notes187,774 — 179,147 — 179,147 
Derivative financial instruments - assets:     
Loan interest rate swaps3,934 — 3,934 — 3,934 
Derivative financial instruments - liabilities:
Fair value swap$226 $— $— $226 $226 
Borrowing interest rate swap885 — 885 — 885 
Loan interest rate swaps3,934 — 3,934 — 3,934 
Impaired Financing Receivables at fair value
The table below provides additional detail on those impaired loans which are recorded at fair value as well as the remaining impaired loan portfolio not included above. The remaining impaired loans consist of 1) loans which are not collateral dependent, 2) loans which are not secured by real estate, and 3) loans carried at cost as the fair value of the underlying collateral or the present value of expected future cash flows on each of the loans exceeded the book value for each respective credit.

March 31, 2021
(In thousands)Loan BalancePrior Charge-OffsSpecific Valuation AllowanceCarrying Balance
Impaired loans recorded at fair value$7,890 $203 $406 $7,484 
Remaining impaired loans 92,517 386 4,556 87,961 
Total impaired loans$100,407 $589 $4,962 $95,445 

December 31, 2020
(In thousands)Recorded InvestmentPrior Charge-OffsSpecific Valuation AllowanceCarrying Balance
Impaired loans recorded at fair value$8,256 $269 $1,332 $6,924 
Remaining impaired loans 100,199 386 4,102 96,097 
Total impaired loans$108,455 $655 $5,434 $103,021