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Investment Securities | 9 Months Ended
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Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities Investment securities at September 30, 2023 and at December 31, 2022, were as follows:
Debt securities AFS (In thousands) |  | Amortized Cost |  | Gross Unrealized Holding Gains |  | Gross Unrealized Holding Losses |  | Fair Value
September 30, 2023: |  |  |  |  |  |  |  |
Obligations of U.S. Government sponsored entities |  | $ | 39,000 |  |  | $ | — |  |  | $ | 1,700 |  |  | $ | 37,300 |
Obligations of states and political subdivisions |  | 420,590 |  |  | 17 |  |  | 31,510 |  |  | 389,097 |
U.S. Government sponsored entities' asset-backed securities |  | 735,317 |  |  | — |  |  | 95,035 |  |  | 640,282 |
Collateralized loan obligations |  | 532,030 |  |  | — |  |  | 7,139 |  |  | 524,891 |
Corporate debt securities |  | 20,459 |  |  | — |  |  | 2,873 |  |  | 17,586 |
Total |  | $ | 1,747,396 |  |  | $ | 17 |  |  | $ | 138,257 |  |  | $ | 1,609,156 |
Debt securities AFS (In thousands) |  | Amortized Cost |  | Gross Unrealized Holding Gains |  | Gross Unrealized Holding Losses |  | Fair Value
December 31, 2022: |  |  |  |  |  |  |  |
Obligations of U.S. Government sponsored entities |  | $ | 39,000 |  |  | $ | — |  |  | $ | 1,787 |  |  | $ | 37,213 |
Obligations of states and political subdivisions |  | 423,285 |  |  | 1,620 |  |  | 18,194 |  |  | 406,711 |
U.S. Government sponsored entities' asset-backed securities |  | 839,399 |  |  | — |  |  | 82,638 |  |  | 756,761 |
Collateralized loan obligations |  | 535,518 |  |  | — |  |  | 18,979 |  |  | 516,539 |
Corporate debt securities |  | 17,650 |  |  | — |  |  | 1,178 |  |  | 16,472 |
Total |  | $ | 1,854,852 |  |  | $ | 1,620 |  |  | $ | 122,776 |  |  | $ | 1,733,696 |
Investment securities in an unrealized loss position at September 30, 2023, were as follows:
|  | Unrealized loss position for less than 12 months |  | Unrealized loss position for 12 months or longer |  | Total
(In thousands) |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses
Debt securities AFS: |  |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. Government sponsored entities |  | $ | — |  |  | $ | — |  |  | $ | 37,300 |  |  | $ | 1,700 |  |  | $ | 37,300 |  |  | $ | 1,700 |
Obligations of states and political subdivisions |  | 277,975 |  |  | 8,626 |  |  | 93,969 |  |  | 22,884 |  |  | 371,944 |  |  | 31,510 |
U.S. Government sponsored entities' asset-backed securities |  | 1,171 |  |  | 22 |  |  | 639,111 |  |  | 95,013 |  |  | 640,282 |  |  | 95,035 |
Collateralized loan obligations |  | — |  |  | — |  |  | 524,891 |  |  | 7,139 |  |  | 524,891 |  |  | 7,139 |
Corporate debt securities |  | 9,299 |  |  | 910 |  |  | 8,287 |  |  | 1,963 |  |  | 17,586 |  |  | 2,873 |
Total |  | $ | 288,445 |  |  | $ | 9,558 |  |  | $ | 1,303,558 |  |  | $ | 128,699 |  |  | $ | 1,592,003 |  |  | $ | 138,257 |
Investment securities in an unrealized loss position at December 31, 2022, were as follows:
|  | Unrealized loss position for less than 12 months |  | Unrealized loss position for 12 months or longer |  | Total
(In thousands) |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses
Debt securities AFS: |  |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. Government sponsored entities |  | $ | 37,213 |  |  | $ | 1,787 |  |  | $ | — |  |  | $ | — |  |  | $ | 37,213 |  |  | $ | 1,787 |
Obligations of states and political subdivisions |  | 270,905 |  |  | 18,194 |  |  | — |  |  | — |  |  | 270,905 |  |  | 18,194 |
U.S. Government sponsored entities' asset-backed securities |  | 446,423 |  |  | 27,507 |  |  | 310,338 |  |  | 55,131 |  |  | 756,761 |  |  | 82,638 |
Collateralized loan obligations |  | 415,491 |  |  | 15,446 |  |  | 101,048 |  |  | 3,533 |  |  | 516,539 |  |  | 18,979 |
Corporate debt securities |  | 7,388 |  |  | 862 |  |  | 1,684 |  |  | 316 |  |  | 9,072 |  |  | 1,178 |
Total |  | $ | 1,177,420 |  |  | $ | 63,796 |  |  | $ | 413,070 |  |  | $ | 58,980 |  |  | $ | 1,590,490 |  |  | $ | 122,776 |
At September 30, 2023, Park’s debt securities portfolio consisted of $1.6 billion of securities, $1.6 billion of which were in an unrealized loss position with aggregate unrealized losses of $138.3 million. Of the $1.6 billion of securities in an unrealized loss position, $1.3 billion were in an unrealized loss position for 12 months or longer. Of the $138.3 million in unrealized losses, an aggregate of $96.7 million were related to Park's "Obligations of U.S. Government sponsored entities" portfolio and 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 either September 30, 2023 or December 31, 2022. Additionally, for the three months and the nine months ended September 30, 2023 and 2022, there were no credit-related investment impairment losses recognized. The amortized cost and estimated fair value of investments in debt securities AFS at September 30, 2023, are shown in the following table by contractual maturity, except for asset-backed securities and collateral loan obligations, which are shown as a single total due to the unpredictability of the timing of 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 cost |  | Fair value |  | Tax equivalent yield (1)
Debt Securities AFS |  |  |  |  |  |
Obligations of U.S. Treasury and other U.S. Government sponsored entities |  |  |  |  |  |
Due one through five years |  | $ | 39,000 |  |  | $ | 37,300 |  |  | 2.37 | %
Obligations of state and political subdivisions: |  |  |  |  |  |
Due one through five years |  | $ | 2,262 |  |  | $ | 2,231 |  |  | 2.97 | %
Due five through ten years |  | 276,900 |  |  | 269,945 |  |  | 3.69 | %
Due over ten years |  | 141,428 |  |  | 116,921 |  |  | 3.10 | %
Total (1) |  | $ | 420,590 |  |  | $ | 389,097 |  |  | 3.49 | %
U.S. Government sponsored entities' asset-backed securities |  | $ | 735,317 |  |  | $ | 640,282 |  |  | 1.89 | %
Collateralized loan obligations |  | $ | 532,030 |  |  | $ | 524,891 |  |  | 7.31 | %
Corporate debt securities |  |  |  |  |  |
Due one through five years |  | $ | 2,809 |  |  | $ | 2,794 |  |  | 10.41 | %
Due five through ten years |  | 17,650 |  |  | 14,792 |  |  | 3.89 | %
Total |  | $ | 20,459 |  |  | $ | 17,586 |  |  | 4.79 | %
(1) The tax equivalent yield for certain obligations of state and political subdivisions includes the effect of a taxable equivalent adjustment using a 21% federal corporate income tax rate. There were no sales of debt securities AFS during the three-month or the nine-month periods ended September 30, 2023 or 2022. Investment securities having a fair value of $606.2 million and $753.6 million at September 30, 2023 and December 31, 2022, respectively, were pledged to collateralize government and public fund deposits, to secure repurchase agreements sold and as collateral for FHLB advance borrowings.

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