Investment in Qualified Affordable Housing

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investment in Qualified Affordable Housing

Investment in Qualified Affordable Housing

Park makes certain equity investments in various limited partnerships that sponsor affordable housing projects. The purposes of these investments are to achieve a satisfactory return on capital, help create affordable housing opportunities, and assist the Company to achieve its goals associated with the Community Reinvestment Act.

The table below details the balances of Park’s affordable housing tax credit investments and related unfunded commitments at September 30, 2022 and December 31, 2021.

(in thousands)	September 30, 2022		December 31, 2021
Affordable housing tax credit investments	$	62,771	$	58,711
Unfunded commitments	28,480		28,484

Commitments are funded when capital calls are made by the general partner. Park expects that the current commitments will be funded between the remainder of 2022 and 2032.

Park recognized amortization expense of $2.0 million and $1.9 million, respectively, for the three months ended September 30, 2022 and 2021, and $5.9 million and $5.6 million, respectively, for the nine months ended September 30, 2022 and 2021, which were included within the provision for income taxes. Additionally, during the three months ended September 30, 2022 and 2021, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $2.5 million and $1.9 million, respectively, and during the nine months ended September 30, 2022 and 2021, recognized $7.4 million and $7.2 million, respectively, which were included within the provision for income taxes.