Investments in Qualified Affordable Housing

12 Months Ended

Dec. 31, 2023

Investments in Affordable Housing Projects [Abstract]

Affordable Housing Program

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, 2023 and 2022.

(In thousands)	December 31, 2023		December 31, 2022
Affordable housing tax credit investments	$	62,703	$	60,968
Unfunded commitments	28,768		28,132

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, 2023 will be funded between 2024 and 2033.

During the years ended December 31, 2023, 2022 and 2021, Park recognized amortization expense of $8.3 million, $7.7 million and $7.3 million, respectively, which was included within the provision for income taxes. For the years ended December 31, 2023, 2022 and 2021, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $9.8 million, $9.3 million and $8.8 million, respectively.