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Investment Securities
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments Securities Investment Securities
"Debt securities" and "Other investment securities" are summarized below.
 
Debt Securities
The following tables summarize the amortized cost and fair value of debt securities at December 31, 2023 and December 31, 2022 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss.

 
(In thousands)Amortized CostGross Unrealized Holding GainsGross Unrealized Holding LossesFair Value
2023:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions$251,531 $1,173 $11,520 $241,184 
U.S. Government sponsored entities’ asset-backed securities703,645 23 68,193 635,475 
Collateralized loan obligations443,112 31 4,857 438,286 
Corporate debt securities20,482 — 2,585 17,897 
Total
$1,418,770 $1,227 $87,155 $1,332,842 
(In thousands)Amortized CostGross Unrealized Holding GainsGross Unrealized Holding LossesFair Value
2022:
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities$39,000 $— $1,787 $37,213 
Obligations of states and political subdivisions423,285 1,620 18,194 406,711 
U.S. Government sponsored entities’ asset-backed securities839,399 — 82,638 756,761 
Collateralized loan obligations535,518 — 18,979 516,539 
Corporate debt securities17,650 — 1,178 16,472 
Total$1,854,852 $1,620 $122,776 $1,733,696 

All debt securities were classified as AFS at December 31, 2023 and December 31, 2022.

The following tables provide detail on debt securities AFS in an unrealized loss position for which an allowance for credit losses had not been recorded at December 31, 2023 and December 31, 2022, aggregated by major security type and length of time in a continuous unrealized loss position:
 
Less than 12 Months12 Months or LongerTotal
(In thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
2023:
Debt Securities Available-for-Sale
Obligations of states and political subdivisions$46,685 $420 $103,993 $11,100 $150,678 $11,520 
U.S. Government sponsored entities’ asset-backed securities— — 634,261 68,193 634,261 68,193 
Collateralized loan obligations— — 404,019 4,857 404,019 4,857 
Corporate debt securities9,530 702 8,367 1,883 17,897 2,585 
Total
$56,215 $1,122 $1,150,640 $86,033 $1,206,855 $87,155 

Less than 12 Months12 Months or LongerTotal
(In thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
2022:
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities$37,213 $1,787 $— $— $37,213 $1,787 
Obligations of states and political subdivisions270,905 18,194 — — 270,905 18,194 
U.S. Government sponsored entities’ asset-backed securities446,423 27,507 310,338 55,131 756,761 82,638 
Collateralized loan obligations415,491 15,446 101,048 3,533 516,539 18,979 
Corporate debt securities7,388 862 1,684 316 9,072 1,178 
Total$1,177,420 $63,796 $413,070 $58,980 $1,590,490 $122,776 
 
At December 31, 2023, Park’s debt security portfolio consisted of $1.3 billion of securities, $1.2 billion of which were in an unrealized loss position with unrealized losses of $87.2 million. Of the $1.2 billion of securities in an unrealized loss position, $1.2 billion were in an unrealized loss position for 12 months or longer. Of the $87.2 million in unrealized losses, an aggregate of $68.2 million were related to Park's "U.S. Government sponsored entities' asset-backed securities" portfolio. For non-agency debt securities, Park verified that the current credit ratings remain above investment grade. Quarterly, management reviews the credit profile of each non-agency debt security and assesses whether any impairment to the contractually obligated cash flow is likely to occur. Based on these reviews, management has concluded that the underlying creditworthiness for each security remains sufficient to maintain required payment obligations and, therefore, unrealized losses have not been recognized into net income. 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 in respect of the unrealized losses. Management believes the value will recover as the securities approach maturity or market interest rates change.

There was no allowance for credit losses recorded for debt securities AFS at December 31, 2023 and December 31, 2022. Additionally, for the years ended December 31, 2023, 2022, and 2021, there were no credit-related investment impairment losses recognized.

The amortized cost and estimated fair value of investments in debt securities at December 31, 2023, 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 CostFair Value
Tax Equivalent Yield (1)
Debt Securities Available-for-Sale
Obligations of states and political subdivisions
Due one through five years$1,510 $1,511 3.15 %
Due five through ten years110,685 110,449 3.47 %
Due greater than ten years139,336 129,224 3.08 %
Total$251,531 $241,184 3.25 %
U.S. Government sponsored entities’ asset-backed securities$703,645 $635,475 1.89 %
Collateralized loan obligations$443,112 $438,286 7.30 %
Corporate debt securities
Due one through five years$2,832 $2,801 10.39 %
Due five through ten years$17,650 $15,096 3.89 %
Total$20,482 $17,897 4.79 %
(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.

At December 31, 2023, investment securities with a fair value of $416.0 million were pledged for government and public fund deposits, $180.8 million were pledged to secure repurchase agreements and $5.2 million were pledged as collateral for FHLB advance borrowings. At December 31, 2022, investment securities with a fair value of $433.8 million were pledged for government and public fund deposits, $313.1 million were pledged to secure repurchase agreements and $6.8 million were pledged as collateral for FHLB advance borrowings.
 
At December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.
 
During 2023, Park sold certain AFS debt securities with a book value of $291.0 million at a gross loss of $7.9 million. There were no sales of AFS debt securities during 2022 and 2021.
Other Investment Securities
Other investment securities (as shown on the Consolidated Balance Sheets) consist of restricted stock investments in the FHLB and the FRB, and equity securities. The FHLB and FRB restricted stock investments are carried at their redemption value. Equity securities with a readily determinable fair value are carried at fair value. Equity securities without a readily determinable fair value are recorded at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions ("modified cost"). Park's portfolio of equity investments in limited partnerships which provide mezzanine funding ("Partnership Investments") are valued using the net asset value practical expedient in accordance with ASC 820.

The carrying amount of other investment securities at December 31, 2023 and 2022 was as follows:

(In thousands)December 31, 2023December 31, 2022
FHLB stock$17,754 $11,197 
FRB stock14,653 14,653 
Equity investments carried at fair value2,089 1,859 
Equity investments carried at modified cost (1)
15,921 14,725 
Equity investments carried at net asset value45,885 44,657 
Total other investment securities$96,302 $87,091 
(1) There have been no impairments or downward adjustments made to equity investments carried at modified cost. There were no adjustments recorded during the year ended December 31, 2023 as a result of observable price changes. An upward adjustment of $871,000 was recorded during the year ended December 31, 2022 as a result of observable price changes.

During the year ended December 31, 2023, Park purchased 182,289 shares of FHLB stock with a book value of $18.2 million. During the year ended December 31, 2023, the FHLB repurchased 116,722 shares of FHLB stock with a book value of $11.7 million. During the year ended December 31, 2022, the FHLB repurchased 22,160 shares of FHLB stock with a book value of $2.2 million. During the year ended December 31, 2021, the FHLB repurchased 86,770 shares of FHLB stock with a book value of $8.7 million. No shares of FHLB stock were purchased in the years ended December 31, 2022 or 2021. No shares of FRB stock were purchased or sold in any of the years ended December 31, 2023, 2022, or 2021.

For the years ended December 31, 2023, 2022 and 2021, $600,000, $601,000 and $552,000, respectively, of gains on equity investments carried at fair value were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.

For the years ended December 31, 2023, 2022 and 2021, $371,000, $2.4 million and $4.5 million, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.