Investments in Qualified Affordable Housing

12 Months Ended

Dec. 31, 2022

Investments in Affordable Housing Projects [Abstract]

Investments 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.

As permitted by ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, Park has elected the proportional amortization method of accounting. Under the proportional amortization method, amortization expense and tax benefits are recognized through the provision for income taxes.

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


(In thousands)	December 31, 2022		December 31, 2021
Affordable housing tax credit investments	$	60,968	$	58,711
Unfunded commitments	28,132		28,484

Commitments are funded when capital calls are made by the general partner of a limited partnership. Park expects that the commitments as of December 31, 2022 will be funded between 2023 and 2032.

During the years ended December 31, 2022, 2021 and 2020, Park recognized amortization expense of $7.7 million, $7.3 million and $7.0 million, respectively, which was included within the provision for income taxes. For the years ended December 31, 2022, 2021 and 2020, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $9.3 million, $8.8 million and $8.7 million, respectively.