Investment in Qualified Affordable Housing

6 Months Ended

Jun. 30, 2023

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 June 30, 2023 and December 31, 2022.

(in thousands)	June 30, 2023		December 31, 2022
Affordable housing tax credit investments	$	56,774	$	60,968
Unfunded commitments	22,556		28,132

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 2023 through 2032.

Park recognized amortization expense of $2.1 million and $2.0 million, respectively, for the three months ended June 30, 2023 and 2022, and $4.2 million and $4.0 million, respectively, for the six months ended June 30, 2023 and 2022, which was included within the provision for income taxes. Additionally, during the three months ended June 30, 2023 and 2022, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $2.6 million and $2.1 million, respectively, and during six months ended June 30, 2023 and 2022, recognized $5.0 million and $4.9 million, respectively, which were included within the provision for income taxes.