Investment in Qualified Affordable Housing

6 Months Ended

Jun. 30, 2024

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, 2024 and December 31, 2023.

(in thousands)	June 30, 2024		December 31, 2023
Affordable housing tax credit investments	$	68,426	$	62,703
Unfunded commitments	31,468		28,768

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 2024 through 2035.

Park recognized amortization expense of $2.1 million for both the three months ended June 30, 2024 and 2023, and $4.3 million and $4.2 million, respectively for the six months ended June 30, 2024 and 2023, which were included within the provision for income taxes. Additionally, during each of the three months ended June 30, 2024 and 2023, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $2.6 million and during the six months ended June 30, 2024 and 2023, recognized $5.2 million and $5.0 million respectively, which were included within the provision for income taxes.