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Investment Securities
 12 Months Ended
Dec. 31, 2024
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, 2024 and December 31, 2023 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
2024:
Debt Securities Available-for-Sale
       Obligations of U.S. Government sponsored entities$250 $— $1 $249 
Obligations of states and political subdivisions203,438 88 16,643 $186,883 
U.S. Government sponsored entities’ asset-backed securities580,268 2 61,694 518,576 
Collateralized loan obligations271,572 288 27 271,833 
Corporate debt securities20,753 50 1,720 19,083 
Total
$1,076,281 $428 $80,085 $996,624 
(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 

All debt securities were classified as AFS at December 31, 2024 and December 31, 2023.

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, 2024 and December 31, 2023, 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
2024:
Debt Securities Available-for-Sale
Obligations of U.S. Government sponsored entities$249 $1 $— $— $249 $1 
Obligations of states and political subdivisions34,256 528 137,471 16,115 171,727 16,643 
U.S. Government sponsored entities’ asset-backed securities6,555 249 510,846 61,445 517,401 61,694 
Collateralized loan obligations44,935 14 36,223 13 81,158 27 
Corporate debt securities— — 15,929 1,720 15,929 1,720 
Total
$85,995 $792 $700,469 $79,293 $786,464 $80,085 

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 
 
At December 31, 2024, Park’s debt security portfolio consisted of $1.0 billion of securities, $786.5 million of which were in an unrealized loss position with unrealized losses of $80.1 million. Of the $786.5 million of securities in an unrealized loss position, $700.5 million were in an unrealized loss position for 12 months or longer. Of the $80.1 million in unrealized losses, an aggregate of $61.7 million were related to Park's "Obligations of U.S. Government sponsored entities" and "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. On a quarterly basis, 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 that changes in value are largely the result of changes in the yield curve, 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, 2024 and December 31, 2023. Additionally, for the years ended December 31, 2024, 2023, and 2022, there were no credit-related investment impairment losses recognized.

The amortized cost and estimated fair value of investments in debt securities at December 31, 2024, 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 U.S.Government sponsored entities
Due within one year$250 $249 2.88 %
Total$250 $249 2.88 %
Obligations of states and political subdivisions
Due within one year$250 $250 6.06 %
Due one through five years1,490 1,490 5.06 %
Due five through ten years79,116 75,408 3.07 %
Due greater than ten years122,582 109,735 3.19 %
Total$203,438 $186,883 3.16 %
U.S. Government sponsored entities’ asset-backed securities$580,268 $518,576 1.86 %
Collateralized loan obligations$271,572 $271,833 6.33 %
Corporate debt securities
Due within one year$971 $979 9.67 %
Due five through ten years19,782 18,104 4.10 %
Total$20,753 $19,083 4.36 %
(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, 2024, investment securities with a fair value of $471.2 million were pledged for government and public fund deposits, $124.1 million were pledged to secure repurchase agreements and $3.9 million were pledged as collateral for FHLB advance borrowings. 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, 2024, 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 2024, Park sold certain AFS debt securities with a book value of $42.3 million at a gross loss of $553,000 and sold certain AFS debt securities with a book value of $2.3 million for a gross gain of $27,000. 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.

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, 2024 and 2023 was as follows:

(In thousands)December 31, 2024December 31, 2023
FHLB stock$8,607 $17,754 
FRB stock14,653 14,653 
Equity investments carried at fair value11,488 2,089 
Equity investments carried at modified cost (1)
19,347 15,921 
Equity investments carried at net asset value50,142 45,885 
Total other investment securities$104,237 $96,302 
(1) There have been no impairments or downward adjustments made to equity investments carried at modified cost. Cumulatively, upward adjustments of $1.4 million have been recorded as a result of observable price changes. An upward adjustment of $571,000 was recorded during the year ended December 31, 2024 as a result of observable price changes. There were no adjustments recorded during the year ended December 31, 2023 as a result of observable price changes.

During the year ended December 31, 2024, Park purchased 92,245 shares of FHLB stock with a book value of $9.2 million and the FHLB repurchased 183,713 shares of FHLB stock with a book value of $18.4 million. During the year ended December 31, 2023, Park purchased 182,289 shares of FHLB stock with a book value of $18.2 million. and 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. No shares of FHLB stock were purchased in the year ended December 31, 2022.

No shares of FRB stock were purchased or sold in any of the years ended December 31, 2024, 2023, or 2022.

For the years ended December 31, 2024, 2023 and 2022, $2.6 million, $600,000 and $601,000, respectively, of gains on equity investments carried at fair value or modified cost were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.

For the years ended December 31, 2024, 2023 and 2022, $468,000, $371,000 and $2.4 million, respectively, of gains on equity investments carried at NAV were recorded within "Gain on equity securities, net" on the Consolidated Statements of Income.