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Fair Value (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2021 using:
(In thousands)Level 1Level 2Level 3Balance at September 30, 2021
Assets    
Investment securities:    
Obligations of states and political subdivisions$— $299,094 $— $299,094 
U.S. Government sponsored entities’ asset-backed securities— 857,149 — 857,149 
Collateralized loan obligations387,682 — — 387,682 
Corporate debt securities— 9,293 — 9,293 
Equity securities1,579 — 491 2,070 
Mortgage loans held for sale— 8,944 — 8,944 
Mortgage IRLCs— 404 — 404 
Loan interest rate swaps— 2,258 — 2,258 
Liabilities    
Fair value swap$— $— $226 $226 
Borrowing interest rate swap— 436 — 436 
Loan interest rate swaps— 2,258 — 2,258 
 
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-month and nine-month periods ended September 30, 2021 and 2020, for financial instruments measured on a recurring basis and classified as Level 3:

Level 3 Fair Value Measurements
Three months ended September 30, 2021 and 2020
(In thousands)Equity
Securities		Fair value
swap
Balance at July 1, 2021$490 $(226)
Total gains   
Included in other income1 — 
Balance at September 30, 2021$491 $(226)
Balance at July 1, 2020$471 $(226)
Total gains  
Included in other income13 — 
Balance at September 30, 2020$484 $(226)

Level 3 Fair Value Measurements
Nine months ended September 30, 2021 and 2020
(In thousands)Equity
Securities		Fair value
swap
Balance at January 1, 2021$485 $(226)
Total gains  
Included in other income6 — 
Balance at September 30, 2021$491 $(226)
Balance at January 1, 2020$456 $(226)
Total gains  
Included in other income28 — 
Balance at September 30, 2020$484 $(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 September 30, 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 September 30, 2021 using:
(In thousands)Level 1Level 2Level 3Balance at September 30, 2021
Impaired loans recorded at fair value:    
Commercial real estate$— $— $571 $571 
Residential real estate— — 277 277 
Total impaired loans recorded at fair value$— $— $848 $848 
MSRs$— $14,286 $— $14,286 
OREO recorded at fair value:
Residential real estate— — 735 735 
Total OREO recorded at fair value$— $— $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 September 30, 2021:

 September 30, 2021
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$9,386 $12,232 $651 $22,269 
Commercial real estate56,722 300 47 57,069 
Construction real estate:
Commercial1,407 — — 1,407 
Residential real estate:
Commercial5,250 — — 5,250 
Mortgage375 — — 375 
HELOC144 — — 144 
Leases— 1,455 — 1,455 
Total loans$73,284 $13,987 $698 $87,969 
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 and nine-month periods ended September 30, 2021:

Interest Income Recognized
(In thousands)Three months ended
September 30, 2021		Nine months ended
September 30, 2021
Commercial, financial and agricultural:
Commercial, financial and agricultural$40 $147 
PPP loans— — 
Overdrafts— — 
Commercial real estate458 1,480 
Construction real estate:
Commercial1 38 
Retail— 1 
Residential real estate:
Commercial60 180 
Mortgage90 233 
HELOC2 12 
Installment— 2 
Consumer:
Consumer23 71 
GFSC3 11 
Check loans— — 
Leases17 61 
Total loans$694 $2,236 

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 and nine months ended September 30, 2020:
  
Three months ended
September 30, 2020		Nine months ended
September 30, 2020
(In thousands)Recorded Investment as of September 30, 2020Average Recorded InvestmentInterest Income RecognizedAverage Recorded InvestmentInterest Income Recognized
Commercial, financial and agricultural$33,098 $29,481 $159 30,426 543 
Commercial real estate72,519 58,195 526 50,479 1,416 
Construction real estate:
   Commercial3,142 1,212 6 743 14 
Residential real estate:
   Commercial4,897 5,061 65 4,271 166 
Leases2,524 2,079 — 909 — 
Total$116,180 $96,028 $756 $86,828 $2,139 
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 September 30, 2021 and December 31, 2020:

September 30, 2021
(In thousands)Fair ValueValuation TechniqueUnobservable Input(s)Range
(Weighted Average)
Impaired loans:    
Commercial real estate$571 Sales comparison approachAdj to comparables
0.0% - 232.0% (25.9%)
Residential real estate$277 Sales comparison approachAdj to comparables
0.5% - 64.3% (9.5%)
Cost approachAccumulated depreciation
8.3% (8.3%)
Other real estate owned:
Residential real estate$735 Sales comparison approachAdj to comparables
5.0% - 32.5% (19.1%)

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 September 30, 2021 and December 31, 2020, was as follows:

September 30, 2021
  Fair Value Measurements
(In thousands)Carrying valueLevel 1Level 2Level 3Total fair value
Financial assets:
Cash and money market instruments$877,395 $877,395 $— $— $877,395 
Investment securities (1)
1,553,218 387,682 1,165,536 — 1,553,218 
Other investment securities (2)
2,070 1,579 — 491 2,070 
Mortgage loans held for sale8,944 — 8,944 — 8,944 
Mortgage IRLCs404 — 404 — 404 
Impaired loans carried at fair value848 — — 848 848 
Other loans, net6,810,092 — — 6,834,592 6,834,592 
Loans receivable, net$6,820,288 $— $9,348 $6,835,440 $6,844,788 
Financial liabilities:     
Time deposits$725,203 $— $749,710 $— $749,710 
Other5,389 5,389 — — 5,389 
Deposits (excluding demand deposits)$730,592 $5,389 $749,710 $— $755,099 
Short-term borrowings$235,979 $— $235,979 $— $235,979 
Subordinated notes188,099 — 197,119 — 197,119 
Derivative financial instruments - assets:
Loan interest rate swaps2,258 — 2,258 — 2,258 
Derivative financial instruments - liabilities:     
Fair value swap226 — — 226 226 
Borrowing interest rate swap436 — 436 — 436 
Loan interest rate swaps2,258 — 2,258 — 2,258 
(1) Includes debt securities AFS.
(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.

September 30, 2021
(In thousands)Loan BalancePrior Charge-OffsSpecific Valuation AllowanceCarrying Balance
Impaired loans recorded at fair value$1,028 $240 $180 $848 
Remaining impaired loans 78,236 448 3,286 74,950 
Total impaired loans$79,264 $688 $3,466 $75,798 

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