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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2023
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, 2023 using:
(In thousands)Level 1Level 2Level 3Balance at September 30, 2023
Assets    
Investment securities:    
Obligations of U.S. Government sponsored entities$— $37,300 $— $37,300 
Obligations of states and political subdivisions— 389,097 — 389,097 
U.S. Government sponsored entities’ asset-backed securities— 640,282 — 640,282 
Collateralized loan obligations— 524,891 — 524,891 
Corporate debt securities— 11,460 6,126 17,586 
Equity securities2,328 — 466 2,794 
Mortgage loans held for sale— 2,866 — 2,866 
Mortgage IRLCs— 30 — 30 
Loan interest rate swaps— 1,719 — 1,719 
Liabilities    
Fair value swap$— $— $123 $123 
Loan interest rate swaps— 1,719 — 1,719 
 
Fair Value Measurements at December 31, 2022 using:
(In thousands)Level 1Level 2Level 3Balance at December 31, 2022
Assets    
Investment securities:    
Obligations of U.S. Government sponsored entities$— $37,213 $— $37,213 
Obligations of states and political subdivisions— 406,711 — 406,711 
U.S. Government sponsored entities’ asset-backed securities— 756,761 — 756,761 
Collateralized loan obligations— 516,539 — 516,539 
Corporate debt securities— 9,472 7,000 16,472 
Equity securities1,420 — 439 1,859 
Mortgage loans held for sale— 2,149 — 2,149 
Mortgage IRLCs— 46 — 46 
Loan interest rate swaps— 1,508 — 1,508 
Liabilities    
Fair value swap$— $— $243 $243 
Loan interest rate swaps— 1,508 — 1,508 
Reconciliation Of Level 3 Input For Financial Instruments Measured On Recurring Basis
The following tables present a reconciliation of the beginning and ending balances of the Level 3 inputs for the three-month and the nine-month periods ended September 30, 2023 and 2022, for financial instruments measured on a recurring basis and classified as Level 3:

Level 3 Fair Value Measurements
Three months ended September 30, 2023 and 2022
(In thousands)Corporate debt securitiesEquity securitiesFair value
swap
Balance at July 1, 2023$6,116 $455 $(296)
Transfer into (out of) level 3, net— — — 
Total (losses) / gains  
Included in other income / other expense— 11 — 
    Included in other comprehensive income10 — — 
Purchases, sales, issuances and settlements, other, net— — 173 
Balance at September 30, 2023$6,126 $466 $(123)
Balance at July 1, 2022$— $491 $(447)
Total losses  
Included in other income / other expense— (22)— 
Purchases, sales, issuances and settlements, other, net
— — 204 
Balance at September 30, 2022$— $469 $(243)
Level 3 Fair Value Measurements
Nine months ended September 30, 2023 and 2022
(In thousands)Corporate debt securitiesEquity securitiesFair value
swap
Balance at January 1, 2023$7,000 $439 $(243)
Transfers into (out of) level 3, net11 — — 
Total (losses) / gains  
Included in other income / other (expense)— 27 (175)
    Included in other comprehensive income(885)— — 
Purchases, sales, issuances and settlements, other, net— — 295 
Balance at September 30, 2023$6,126 $466 $(123)
Balance at January 1, 2022$— $499 $(226)
Total losses  
Included in other income / other (expense)— (30)(221)
Purchases, sales, issuances and settlements, other, net— — 204 
Balance at September 30, 2022$— $469 $(243)
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. Individually evaluated collateral dependent 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. At September 30, 2023 and December 31, 2022, 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.

At September 30, 2023 and December 31, 2022, there were no OREO properties held by Park that were carried at fair value due to fair value adjustments made subsequent to the initial OREO measurement.

Fair Value Measurements at September 30, 2023 using:
(In thousands)Level 1Level 2Level 3Balance at September 30, 2023
Individually evaluated collateral dependent loans recorded at fair value:    
Commercial real estate$— $— $2,289 $2,289 
Construction real estate— — 455 455 
Residential real estate— — 186 186 
Total individually evaluated collateral dependent loans recorded at fair value$— $— $2,930 $2,930 
MSRs$— $872 $— $872 

Fair Value Measurements at December 31, 2022 using:
(In thousands)Level 1Level 2Level 3Balance at December 31, 2022
Individually evaluated collateral dependent loans recorded at fair value:    
Commercial real estate$— $— $5,573 $5,573 
Residential real estate— — 200 200 
Total individually evaluated collateral dependent loans recorded at fair value$— $— $5,773 $5,773 
MSRs$— $1,717 $— $1,717 
Schedule of impaired financing receivables additional info
The following tables provide the amortized cost basis of collateral-dependent loans by class of loan, at September 30, 2023 and at December 31, 2022:

 September 30, 2023
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$8,110 $4,719 $4,470 $17,299 
Commercial real estate22,643 21 — 22,664 
Construction real estate:
Commercial1,761 — — 1,761 
Residential real estate:
Commercial2,491 — — 2,491 
Mortgage79 — — 79 
Leases— 352 — 352 
Total loans$35,084 $5,092 $4,470 $44,646 
 December 31, 2022
(In thousands)Real EstateBusiness AssetsOtherTotal
Commercial, financial and agricultural
Commercial, financial and agricultural$8,242 $7,788 $23,125 $39,155 
Commercial real estate35,908 28 — 35,936 
Construction real estate:
Commercial2,372 — — 2,372 
Residential real estate:
Commercial2,479 — — 2,479 
Mortgage90 — — 90 
Leases— 708 — 708 
Total loans$49,091 $8,524 $23,125 $80,740 

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. The following table presents interest income recognized on nonaccrual loans for the three-month and the nine-month periods ended September 30, 2023 and 2022:

Interest Income Recognized
(In thousands)Three Months Ended
September 30, 2023		Three Months Ended
September 30, 2022		Nine Months Ended
September 30, 2023		Nine Months Ended
September 30, 2022
Commercial, financial and agricultural:
Commercial, financial and agricultural$253 $15 $1,580 $45 
PPP loans— — — — 
Overdrafts— — — — 
Commercial real estate177 237 537 751 
Construction real estate:
Commercial5 6 59 10 
Retail— — — 4 
Residential real estate:
Commercial37 24 100 64 
Mortgage58 43 160 112 
HELOC1 5 16 11 
Installment1 1 3 3 
Consumer:
Consumer25 15 65 46 
Check loans— — — — 
Leases— 9 — 33
Total loans$557 $355 $2,520 $1,079 
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, 2023 and December 31, 2022:

September 30, 2023
(In thousands)Fair ValueValuation TechniqueUnobservable Input(s)Range
(Weighted Average)
Individually evaluated collateral dependent loans:    
Commercial real estate$2,289 Sales comparison approachAdj to comparables
0.0% - 202.0% (25.2%)
Income approachCapitalization rate
7.3% - 8.5% (7.8%)
Construction real estate$455 Sales comparison approachAdj to comparables
0.0% - 20.0% (10.0%)
Income approachCapitalization rate
7.3% (7.3%)
Residential real estate$186 Sales comparison approachAdj to comparables
1.2% - 78.6% (7.7%)

December 31, 2022
(In thousands)Fair ValueValuation TechniqueUnobservable Input(s)Range
(Weighted Average)
Individually evaluated collateral dependent loans:    
Commercial real estate$5,573 Sales comparison approachAdj to comparables
0.0% - 202.0% (19.4%)
Income approachCapitalization rate
7.0% - 10.0% (7.9%)
Cost approachEntrepreneurial profit
10.0% - 12.0% (11.4%)
Cost approachAccumulated depreciation
  38.8% (38.8%)
Residential real estate$200 Sales comparison approachAdj to comparables
1.9% - 119.8% (17.4%)
Fair Value, by Balance Sheet Grouping
The fair value of certain financial instruments at September 30, 2023 and at December 31, 2022, was as follows:

September 30, 2023
  Fair Value Measurements
(In thousands)Carrying valueLevel 1Level 2Level 3Total fair value
Financial assets:
Cash and money market instruments$223,618 $223,618 $— $— $223,618 
Investment securities (1)
1,609,156 — 1,603,030 6,126 1,609,156 
Other investment securities (2)
2,794 2,328 — 466 2,794 
Mortgage loans held for sale2,866 — 2,866 — 2,866 
Mortgage IRLCs30 — 30 — 30 
Individually evaluated loans carried at fair value2,930 — — 2,930 2,930 
Other loans, net7,259,317 — — 7,086,524 7,086,524 
Loans receivable, net$7,265,143 $— $2,896 $7,089,454 $7,092,350 
Financial liabilities:     
Time deposits$603,165 $— $601,491 $— $601,491 
Other4,896 4,896 — — 4,896 
Deposits (excluding demand deposits)$608,061 $4,896 $601,491 $— $606,387 
Short-term borrowings$352,786 $— $352,786 $— $352,786 
Subordinated notes189,025 — 176,506 — 176,506 
Derivative financial instruments - assets:
Loan interest rate swaps$1,719 $— $1,719 $— $1,719 
Derivative financial instruments - liabilities:     
Fair value swap$123 $— $— $123 $123 
Loan interest rate swaps1,719 — 1,719 — 1,719 
(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, 2022
  Fair Value Measurements
(In thousands)Carrying valueLevel 1Level 2Level 3Total fair value
Financial assets:
Cash and money market instruments$189,728 $189,728 $— $— $189,728 
Investment securities (1)
1,733,696 — 1,726,696 7,000 1,733,696 
Other investment securities (2)
1,859 1,420 — 439 1,859 
Mortgage loans held for sale2,149 — 2,149 — 2,149 
Mortgage IRLCs46 — 46 — 46 
Individually evaluated loans carried at fair value5,773 — — 5,773 5,773 
Other loans, net7,048,544 — — 6,918,326 6,918,326 
Loans receivable, net$7,056,512 $— $2,195 $6,924,099 $6,926,294 
Financial liabilities:     
Time deposits$554,445 $— $552,443 — $552,443 
Other1,325 1,325 — — 1,325 
Deposits (excluding demand deposits)$555,770 $1,325 $552,443 $— $553,768 
Short-term borrowings$227,342 $— $227,342 $— $227,342 
Subordinated notes188,667 — 177,928 — 177,928 
Derivative financial instruments - assets:     
Loan interest rate swaps$1,508 $— $1,508 $— $1,508 
Derivative financial instruments - liabilities:
Fair value swap$243 $— $— $243 $243 
Loan interest rate swaps1,508 — 1,508 — 1,508 
Impaired Financing Receivables at fair value
September 30, 2023
(In thousands)Loan BalancePrior Charge-OffsSpecific Valuation AllowanceCarrying Balance
Total individually evaluated collateral dependent loans recorded at fair value$3,230 $1,824 $300 $2,930 
Remaining individually evaluated loans 37,609 244 3,122 34,487 
Total individually evaluated loans$40,839 $2,068 $3,422 $37,417 

December 31, 2022
(In thousands)Loan BalancePrior Charge-OffsSpecific Valuation AllowanceCarrying Balance
Total individually evaluated collateral dependent loans recorded at fair value$5,903 $1,523 $130 $5,773 
Remaining individually evaluated loans72,438 252 3,436 69,002 
Total individually evaluated loans$78,341 $1,775 $3,566 $74,775