Investment Securities (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Debt Securities

The following table summarizes the amortized cost and fair value of debt securities at December 31, 2021 and December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). There was no related allowance for credit losses at December 31, 2021.


(In thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
2021:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions	$	366,933	$	22,682	$	24	$	389,591
U.S. Government sponsored entities’ asset-backed securities	849,114		13,437		8,088		854,463
Collateralized loan obligations	500,066		3		1,395		498,674
Corporate debt securities	11,250		169		7		11,412
Total	$	1,727,363	$	36,291	$	9,514	$	1,754,140


(In thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
2020:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions	$	279,245	$	25,973	$	—	$	305,218
U.S. Government sponsored entities’ asset-backed securities	726,589		26,248		728		752,109
Corporate debt securities	2,000		14		—		2,014
Total	$	1,007,834	$	52,235	$	728	$	1,059,341

Schedule of unrealized loss on investments

The following table provides detail on investment securities in an unrealized loss position for which an allowance for credit losses has not been recorded at December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position:


	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2021:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions	$	1,834	$	24	$	—	$	—	$	1,834	$	24
U.S. Government sponsored entities’ asset-backed securities	333,653		4,996		73,431		3,092		407,084		8,088
Collateralized loan obligations	429,671		1,395		—		—		429,671		1,395
Corporate debt securities	2,243		7		—		—		2,243		7
Total	$	767,401	$	6,422	$	73,431	$	3,092	$	840,832	$	9,514

Investment securities in an unrealized loss position at December 31, 2020, were as follows:


	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2020:
Debt Securities Available-for-Sale
U.S. Government sponsored entities' asset-backed securities	$	86,393	$	695	$	4,727	$	33	$	91,120	$	728
Total	$	86,393	$	695	$	4,727	$	33	$	91,120	$	728

Unrealized Gain (Loss) on Investments

At December 31, 2021, Park’s debt security portfolio consisted of $1.8 billion of securities, $840.8 million of which were in an unrealized loss position with unrealized losses of $9.5 million. Of the $840.8 million of securities in an unrealized loss position, $73.4 million were in an unrealized loss position for 12 months or longer. The majority of the unrealized losses were related to Park’s U.S. Government sponsored entities' asset-backed securities portfolio. Unrealized losses have not been recognized into earnings as they represent negative adjustments to fair value relative to the rate of interest paid on the securities and not losses related to the creditworthiness of the respective issuers. Management does not intend to sell, and it is not more likely than not that management would be required to sell, the securities prior to their anticipated recovery. Management believes the value will recover as the securities approach maturity or market rates change.

There was no allowance for credit losses recorded for debt securities AFS at December 31, 2021. Additionally, for the years ended December 31, 2021, 2020, and 2019, there were no credit-related investment impairment losses recognized.

Schedule of contractual maturity of debt securities

The amortized cost and estimated fair value of investments in debt securities at December 31, 2021, are shown in the following table by contractual maturity, except for asset-backed securities and collateralized loan obligations, which are shown as a single total, due to the unpredictability of the timing in principal repayments. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


(In thousands)	Amortized Cost		Fair Value		Tax Equivalent Yield (1)
Debt Securities Available-for-Sale
Obligations of states and political subdivisions
Due five through ten years	$	197,895	$	213,154	3.75	%
Due greater than ten years	169,038		176,437		2.91	%
Total	$	366,933	$	389,591	3.36	%

U.S. Government sponsored entities’ asset-backed securities	$	849,114	$	854,463	1.73	%

Collateralized loan obligations	$	500,066	$	498,674	1.61	%

Corporate debt securities
Due five through ten years	$	11,250	$	11,412	3.93	%

(1) The tax equivalent yield for obligations of states and political subdivisions includes the effects of a taxable equivalent adjustment using a 21% federal corporate income tax rate.

Other Investment Securities

The carrying amount of other investment securities at December 31, 2021 and 2020 was as follows:


(In thousands)	December 31, 2021		December 31, 2020
FHLB stock	$	13,413	$	22,090
FRB stock	14,653		14,653
Equity investments carried at fair value	2,129		2,511
Equity investments carried at modified cost (1)	4,689		4,689
Equity investments carried at net asset value	26,384		21,522
Total other investment securities	$	61,268	$	65,465

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