Investor Relations

Press Release

Park National Corporation reports first quarter 2017 financial results

Company Release - 4/21/2017 4:15 PM ET

NEWARK, Ohio, April 21, 2017 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE MKT:PRK) today announced financial results for the first quarter of 2017 (three months ended March 31, 2017). Park’s board of directors also declared a quarterly cash dividend of $0.94 per common share, payable on June 9, 2017 to common shareholders of record as of May 19, 2017.

Park reported $20.3 million in net income for the first quarter of 2017, an 8.5 percent increase from $18.7 million for the same period in 2016. Net income per diluted common share for the first quarter of 2017 was $1.31, compared to $1.21 in the first quarter of 2016.

Park's community-banking subsidiary, The Park National Bank, reported net income of $21.5 million for the first quarter of 2017, compared to $21.7 million for the first quarter of 2016. The bank had total assets of $7.7 billion at March 31, 2017, rising from $7.4 billion at December 31, 2016.

In the first quarter of 2017, the bank grew consumer loans by $59.7 million (21.5 percent annualized). Total loans for the bank were $5.28 billion at March 31, 2017, a $42 million (3.2 percent annualized) increase over $5.23 billion at December 31, 2016.

About Park National Corporation:

Headquartered in Newark, Ohio, Park National Corporation had $7.7 billion in total assets (as of March 31, 2017). The Park organization principally consists of 11 community bank divisions, a non-bank subsidiary and two specialty finance companies. Park's Ohio-based banking operations are conducted through Park subsidiary The Park National Bank and its divisions, which include Fairfield National Bank Division, Richland Bank Division, Century National Bank Division, First-Knox National Bank Division, Farmers Bank Division, United Bank, N.A. Division, Second National Bank Division, Security National Bank Division, Unity National Bank Division, and The Park National Bank of Southwest Ohio & Northern Kentucky Division; and Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance). The Park organization also includes Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

Complete financial tables are listed below…

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Park cautions that any forward-looking statements contained in this news release or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance.  The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties.  Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.  Risks and uncertainties that could cause actual results to differ materially include, without limitation: Park's ability to execute our business plan successfully and within the expected timeframe; general economic and financial market conditions, specifically in the real estate markets and the credit markets, either nationally or in the states in which Park and our subsidiaries do business, may experience a slowing or reversal of the recent economic expansion in addition to continuing residual effects of recessionary conditions and an uneven spread of positive impacts of recovery on the economy and our counterparties, including adverse impacts on the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties' ability to meet credit and other obligations; changes in interest rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our consolidated balance sheet as well as reduce interest margins and impact loan demand; changes in consumer spending, borrowing and saving habits, whether due to changing business and economic conditions, legislative and regulatory initiatives, or other factors; changes in unemployment; changes in customers', suppliers', and other counterparties' performance and creditworthiness; asset/liability repricing risks and liquidity risks; our liquidity requirements could be adversely affected by changes to regulations governing bank and bank holding company capital and liquidity standards as well as by changes in our assets and liabilities; competitive factors among financial services organizations could increase significantly, including product and pricing pressures, changes to third-party relationships and our ability to attract, develop and retain qualified bank professionals; clients could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; uncertainty regarding the nature, timing and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and our subsidiaries, including major reform of the regulatory oversight structure of the financial services industry and changes in laws and regulations concerning taxes, pensions, bankruptcy, consumer protection, accounting, bank products and services, fiduciary standards, securities and other aspects of the financial services industry, specifically the reforms provided for in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and the Basel III regulatory capital reforms, as well as regulations already adopted and which may be adopted in the future by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, the OCC, the FDIC, and the Federal Reserve Board, to implement the Dodd-Frank Act's provisions, the Budget Control Act of 2011, the American Taxpayer Relief Act of 2012, the JOBS Act, the FAST Act and the Basel III regulatory capital reforms; the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board, the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, and the accuracy of our assumptions and estimates used to prepare our financial statements; changes in law and policy accompanying the new presidential administration and uncertainty or speculation pending the enactment of such changes; significant changes in the tax laws, which may adversely affect the fair values of net deferred tax assets and obligations of state and political subdivisions held in Park's investment securities portfolio; the effect of trade, monetary, fiscal and other governmental policies of the U.S. federal government, including money supply and interest rate policies of the Federal Reserve Board; disruption in the liquidity and other functioning of U.S. financial markets; the impact on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the creditworthiness of certain sovereign governments, supranationals and financial institutions in Europe and Asia; the uncertainty surrounding the United Kingdom's exit from the European Union and its consequences; our litigation and regulatory compliance exposure, including any adverse developments in legal proceedings or other claims and unfavorable resolution of regulatory and other governmental examinations or other inquiries; the adequacy of our risk management program; the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors and other service providers, including as a result of cyber attacks; fraud, scams and schemes of third parties; the impact of widespread natural and other disasters, pandemics, dislocations, terrorist activities or international hostilities on the economy and financial markets generally or on us or our counterparties specifically; demand for loans in the respective market areas served by Park and our subsidiaries; and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the SEC including those described in "Item 1A. Risk Factors" of Part I of Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Park does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.

 
PARK NATIONAL CORPORATION
Financial Highlights
As of or for the three months ended March 31, 2017, December 31, 2016, and March 31, 2016
       
 201720162016 Percent change vs.
(in thousands, except share and per share data)1st QTR4th QTR1st QTR 4Q '161Q '16
INCOME STATEMENT:      
Net interest income$58,952 $62,249 $59,819  (5.3) %(1.4) %
Provision for (recovery of) loan losses876 (1,282)910  N.M. N.M. 
Other income17,507 22,071 17,389  (20.7) %0.7%
Other expense47,462 57,062 49,899  (16.8) %(4.9) %
Income before income taxes$28,121 $28,540 $26,399  (1.5)%6.5%
Income taxes7,854 8,538 7,713  (8.0)%1.8%
Net income$20,267 $20,002 $18,686  1.3%8.5%
       
MARKET DATA:      
Earnings per common share - basic (b)$1.32 $1.30 $1.22  1.5%8.2%
Earnings per common share - diluted (b)1.31 1.30 1.21  0.8%8.3%
Cash dividends per common share0.94 0.94 0.94  %%
Book value per common share at period end48.64 48.38 47.60  0.5%2.2%
Market price per common share at period end105.20 119.66 90.00  (12.1)%16.9%
Market capitalization at period end1,609,254 1,835,670 1,379,773  (12.3)%16.6%
       
Weighted average common shares - basic (a)15,312,059 15,337,806 15,330,813  (0.2)%(0.1)%
Weighted average common shares - diluted (a)15,432,769 15,415,132 15,406,508  0.1%0.2%
Common shares outstanding at period end15,297,087 15,340,718 15,330,807  (0.3)%(0.2)%
       
PERFORMANCE RATIOS: (annualized)      
Return on average assets (a)(b)1.09%1.07%1.01% 1.9%7.9%
Return on average shareholders' equity (a)(b)11.05%10.62%10.38% 4.0%6.5%
Yield on loans4.62%4.87%4.80% (5.1) %(3.8) %
Yield on investment securities2.42%2.29%2.38% 5.7%1.7%
Yield on money markets0.85%0.53%0.51% 60.4%66.7%
Yield on earning assets4.06%4.23%4.11% (4.0) %(1.2) %
Cost of interest bearing deposits0.36%0.34%0.31% 5.9%16.1%
Cost of borrowings2.36%2.40%2.35% (1.7) %0.4%
Cost of paying liabilities0.76%0.74%0.73% 2.7%4.1%
Net interest margin (g)3.49%3.68%3.55% (5.2) %(1.7) %
Efficiency ratio (g)61.22%67.04%64.26% (8.7) %(4.7) %
       
OTHER RATIOS (NON - GAAP):      
Annualized return on average tangible assets (a)(b)(e)1.10%1.08%1.02% 1.9%7.8%
Annualized return on average tangible equity (a)(b)(c)12.24%11.76%11.53% 4.1%6.2%
Tangible book value per share (d)$43.92 $43.67 $42.88  0.6%2.4%
       
N.M. - Not meaningful 
Note: Explanations (a) - (g) are included at the end of the financial highlights. 
       
       
PARK NATIONAL CORPORATION
Financial Highlights (continued)
Three months ended March 31, 2017, December 31, 2016, and March 31, 2016
       
     Percent change vs.
BALANCE SHEET: March 31,
2017
 December 31,
2016
 March 31,
2016
 4Q '161Q '16
       
Investment securities$1,565,668 $1,579,783 $1,601,767  (0.9) %(2.3) %
Loans5,313,641 5,271,857 5,062,185  0.8%5.0%
Allowance for loan losses49,922 50,624 56,948  (1.4) %  (12.3) %
Goodwill72,334 72,334 72,334  %%
Other real estate owned (OREO)13,693 13,926 17,745  (1.7) %(22.8) %
Total assets7,744,690 7,467,586 7,428,185  3.7%4.3%
Total deposits5,920,560 5,521,956 5,606,790  7.2%5.6%
Borrowings1,010,703 1,134,076 1,004,279    (10.9) %0.6%
Total shareholders' equity744,122 742,240 729,701  0.3%2.0%
Tangible equity (d)671,788 669,906 657,367  0.3%2.2%
Nonperforming loans107,284 108,083 118,960  (0.7) %(9.8) %
Nonperforming assets120,977 122,009 136,705  (0.8) %(11.5) %
       
ASSET QUALITY RATIOS:      
Loans as a % of period end total assets68.61%70.60%68.15% (2.8) %0.7%
Nonperforming loans as a % of period end loans2.02%2.05%2.35% (1.5) %(14.0) %
Nonperforming assets as a % of period end loans + OREO2.27%2.31%2.69% (1.7) %(15.6) %
Allowance for loan losses as a % of period end loans0.94%0.96%1.12% (2.1) %(16.1) %
Net loan charge-offs$1,578 $1,656 $456  N.M. N.M. 
Annualized net loan charge-offs as a % of average loans (a)  0.12%0.13%0.04% N.M. N.M. 
       
CAPITAL & LIQUIDITY:      
Total shareholders' equity / Period end total assets9.61%9.94%9.82% (3.3) %(2.1) %
Tangible equity (d) / Tangible assets (f)8.76%9.06%8.94% (3.3) %(2.0) %
Average shareholders' equity / Average assets (a)9.84%10.11%9.78% (2.7) %0.6%
Average shareholders' equity / Average loans (a)14.10%14.36%14.34% (1.8) %(1.7) %
Average loans / Average deposits (a)92.45%93.54%91.31% (1.2) %1.2%
       
N.M. - Not meaningful
Note: Explanations (a) - (h) are included at the end of the financial highlights. 
       


 
PARK NATIONAL CORPORATION
Financial Highlights (continued)   
    
(a) Averages are for the three months ended March 31, 2017, December 31, 2016 and March 31, 2016.
(b) Reported measure uses net income.
(c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill during the applicable period.
    
RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY:
 THREE MONTHS ENDED
 March 31, 2017December 31, 2016March 31, 2016
AVERAGE SHAREHOLDERS' EQUITY$744,040 $749,053 $724,316 
Less: Average goodwill72,334 72,334 72,334 
AVERAGE TANGIBLE EQUITY$671,706 $676,719 $651,982 
    
(d) Tangible equity divided by common shares outstanding at period end. Tangible equity equals total shareholders' equity less goodwill, in each case at the end of the period.
    
RECONCILIATION OF TOTAL SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY:
 March 31, 2017December 31, 2016March 31, 2016
TOTAL SHAREHOLDERS' EQUITY$744,122 $742,240 $729,701 
Less: Goodwill72,334 72,334 72,334 
TANGIBLE EQUITY$671,788 $669,906 $657,367 
    
(e) Net income for each period divided by average tangible assets during the period. Average tangible assets equals average assets less average goodwill, in each case during the applicable period.
    
RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS:
 THREE MONTHS ENDED
 March 31, 2017December 31, 2016March 31, 2016
AVERAGE ASSETS$7,559,691 $7,408,109 $7,405,345 
Less: Average goodwill72,334 72,334 72,334 
AVERAGE TANGIBLE ASSETS$7,487,357 $7,335,775 $7,333,011 
    
(f) Tangible equity divided by tangible assets. Tangible assets equals total assets less goodwill, in each case at the end of the period.
    
RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
 March 31, 2017December 31, 2016March 31, 2016
TOTAL ASSETS$7,744,690 $7,467,586 $7,428,185 
Less: Goodwill72,334 72,334 72,334 
TANGIBLE ASSETS$7,672,356 $7,395,252 $7,355,851 
    
(g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown below assuming a 35% tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets.
    
RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
 THREE MONTHS ENDED
 March 31, 2017December 31, 2016March 31, 2016
Interest income$68,755 $71,697 $69,308 
Fully taxable equivalent adjustment1,072 799 444 
Fully taxable equivalent interest income$69,827 $72,496 $69,752 
Interest expense9,803 9,448 9,489 
Fully taxable equivalent net interest income$60,024 $63,048 $60,263 
    


     
PARK NATIONAL CORPORATION
Consolidated Statements of Income
     
  Three Months Ended
  March 31,
(in thousands, except share and per share data) 2017 2016
     
Interest income:    
Interest and fees on loans $59,908  $60,052 
Interest on:    
Obligations of U.S. Government, its agencies and other securities   7,138  8,609 
Obligations of states and political subdivisions 1,460  373 
Other interest income 249  274 
  Total interest income 68,755  69,308 
     
Interest expense:    
Interest on deposits:    
Demand and savings deposits 1,614  824 
Time deposits 2,161  2,387 
Interest on borrowings 6,028  6,278 
  Total interest expense 9,803  9,489 
     
     Net interest income 58,952  59,819 
     
Provision for loan losses 876  910 
     
     Net interest income after provision for loan losses   58,076  58,909 
     
Other income 17,507  17,389 
     
Other expense 47,462  49,899 
     
      Income before income taxes 28,121  26,399 
     
Income taxes 7,854  7,713 
     
     Net income $20,267  $18,686 
     
Per Common Share:    
     Net income  - basic $1.32  $1.22 
     Net income  - diluted $1.31  $1.21 
     
     Weighted average shares - basic  15,312,059   15,330,813 
     Weighted average shares - diluted 15,432,769  15,406,508 
     
     Cash Dividends Declared $0.94  $0.94 
     


 
PARK NATIONAL CORPORATION
Consolidated Balance Sheets
   
(in thousands, except share data)  March 31, 2017    December 31, 2016  
   
Assets  
   
Cash and due from banks$106,529 $122,811 
Money market instruments285,243 23,635 
Investment securities1,565,668 1,579,783 
Loans5,313,641 5,271,857 
Allowance for loan losses(49,922)(50,624)
Loans, net5,263,719 5,221,233 
Bank premises and equipment, net57,220 57,971 
Goodwill72,334 72,334 
Other real estate owned13,693 13,926 
Other assets380,284 375,893 
Total assets$7,744,690 $7,467,586 
   
Liabilities and Shareholders' Equity  
   
Deposits:  
Noninterest bearing$1,548,363 $1,523,417 
Interest bearing4,372,197 3,998,539 
Total deposits5,920,560 5,521,956 
Borrowings1,010,703 1,134,076 
Other liabilities69,305 69,314 
Total liabilities$7,000,568 $6,725,346 
   
   
Shareholders' Equity:  
Preferred shares (200,000 shares authorized; no shares outstanding at March 31, 2017 and December 31, 2016)
$ $ 
Common shares (No par value; 20,000,000 shares authorized in 2016 and 2015; 16,150,795 shares issued at March 31, 2017 and 16,150,807 shares issued at December 31, 2016)  305,856 305,826 
Accumulated other comprehensive loss, net of taxes(16,723)(17,745)
Retained earnings541,241 535,631 
Treasury shares (853,708 shares at March 31, 2017 and 810,089 shares at December 31, 2016)(86,252)(81,472)
Total shareholders' equity$744,122 $742,240 
   
Total liabilities and shareholders' equity$7,744,690 $7,467,586 
       


 
PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
   
 Three Months Ended
 March 31,
(in thousands)20172016
   
Assets  
   
Cash and due from banks$119,608 $118,981 
Money market instruments118,999 217,384 
Investment securities1,565,977 1,562,194 
Loans5,278,539 5,049,327 
Allowance for loan losses(50,843)(56,999)
Loans, net5,227,696 4,992,328 
Bank premises and equipment, net57,870 59,577 
Goodwill72,334 72,334 
Other real estate owned13,744 18,303 
Other assets383,463 364,244 
Total assets$7,559,691 $7,405,345 
   
   
Liabilities and Shareholders' Equity  
   
Deposits:  
Noninterest bearing$1,499,355 $1,357,998 
Interest bearing4,210,203 4,171,865 
Total deposits5,709,558 5,529,863 
Borrowings1,034,678 1,072,814 
Other liabilities71,415 78,352 
Total liabilities$6,815,651 $6,681,029 
   
Shareholders' Equity:  
Preferred shares$ $ 
Common shares305,908 303,986 
Accumulated other comprehensive loss, net of taxes(17,232)(8,446)
Retained earnings539,936 511,249 
Treasury shares(84,572)(82,473)
Total shareholders' equity$744,040 $724,316 
   
Total liabilities and shareholders' equity$7,559,691 $7,405,345 
 
 
PARK NATIONAL CORPORATION
Consolidated Statements of Income - Linked Quarters
      
 20172016201620162016
(in thousands, except per share data)1st QTR4th QTR3rd QTR2nd QTR1st QTR
      
Interest income:     
Interest and fees on loans$ 59,908 $ 63,633 $59,893 $58,401 $60,052 
Interest on:     
Obligations of U.S. Government, its agencies and other securities7,138 6,909 7,339 7,770 8,609 
Obligations of states and political subdivisions1,460 979 689 591 373 
Other interest income249 176 321 249 274 
Total interest income68,755 71,697 68,242 67,011 69,308 
      
Interest expense:     
Interest on deposits:     
Demand and savings deposits1,614 1,228 1,094 933 824 
Time deposits2,161 2,209 2,352 2,389 2,387 
Interest on borrowings6,028 6,011 6,263 6,204 6,278 
Total interest expense9,803 9,448 9,709 9,526 9,489 
      
Net interest income58,952 62,249 58,533 57,485 59,819 
      
Provision for (recovery of) loan losses876 (1,282)(7,366)2,637 910 
      
Net interest income after provision for (recovery of) loan losses  58,076 63,531 65,899 54,848 58,909 
      
Other income17,507 22,071 20,535 18,736 17,389 
      
Other expense47,462 57,062 46,756 45,306 49,899 
      
Income before income taxes28,121 28,540 39,678 28,278 26,399 
      
Income taxes7,854 8,538 12,229 8,280 7,713 
      
Net income$20,267 $20,002 $27,449 $19,998 $18,686 
      
Per Common Share:     
Net income - basic$1.32 $1.30 $1.79 $1.30 $1.22 
Net income - diluted$1.31 $1.30 $1.78 $1.30 $1.21 
                


 
PARK NATIONAL CORPORATION
Detail of other income and other expense - Linked Quarters
      
 20172016201620162016
(in thousands)1st QTR4th QTR3rd QTR2nd QTR1st QTR
      
Other income:     
Income from fiduciary activities$5,514 $5,534 $5,315 $5,438 $5,113 
Service charges on deposits3,139 3,461 3,800 3,575 3,423 
Other service income2,804 4,854 3,640 3,351 2,574 
Checkcard fee income3,761 3,877 3,780 3,868 3,532 
Bank owned life insurance income1,103 1,054 1,038 1,049 1,197 
ATM fees542 534 581 570 583 
OREO valuation adjustments(73)(29)(233)(221)(118)
Gain on the sale of OREO, net100 244 783 162 134 
Miscellaneous617 2,542 1,831 944 951 
Total other income$17,507 $22,071 $20,535 $18,736 $17,389 
      
Other expense:     
Salaries$22,717 $22,140 $22,084 $21,256 $21,554 
Employee benefits5,181 4,522 5,073 4,894 4,773 
Occupancy expense2,635 2,546 2,506 2,639 2,548 
Furniture and equipment expense3,618 3,470 3,437 3,416 3,443 
Data processing fees1,965 1,568 1,450 1,373 1,217 
Professional fees and services4,829 8,757 6,356 5,401 6,667 
Marketing1,056 1,277 1,062 1,073 1,111 
Insurance1,570 1,553 1,423 1,438 1,411 
Communication1,333 1,257 1,154 1,353 1,221 
State tax expense1,063 941 895 798 926 
Debt prepayment penalty 5,554    
Miscellaneous1,495 3,477 1,316 1,665 5,028 
Total other expense$47,462 $57,062 $46,756 $45,306 $49,899 
                


 
PARK NATIONAL CORPORATION
Asset Quality Information
       
  Year ended December 31,
(in thousands, except ratios) March 31, 2017 201620152014 2013
       
Allowance for loan losses:      
Allowance for loan losses, beginning of period$50,624 $56,494 $54,352 $59,468  $55,537 
Charge-offs3,708 20,799 14,290 24,780 (A)19,153 
Recoveries2,130 20,030 11,442 26,997  19,669 
Net charge-offs (recoveries)1,578 769 2,848 (2,217) (516)
Provision for (recovery of) loan losses876 (5,101)4,990 (7,333) 3,415 
Allowance for loan losses, end of period$49,922 $50,624 $56,494 $54,352  $59,468 
(A) Year ended December 31, 2014 included $4.3 million in charge-offs related to the transfer of $22.0 million of commercial loans to the held for sale portfolio.
       
General reserve trends:      
Allowance for loan losses, end of period$49,922 $50,624 $56,494 $54,352  $59,468 
Specific reserves1,091 548 4,191 3,660  10,451 
General reserves$48,831 $50,076 $52,303 $50,692  $49,017 
       
Total loans$5,313,641 $5,271,857 $5,068,085 $4,829,682  $4,620,505 
Impaired commercial loans70,099 70,415 80,599 73,676  112,304 
Total loans less impaired commercial loans$5,243,542 $5,201,442 $4,987,486 $4,756,006  $4,508,201 
       
       
Asset Quality Ratios:      
Net charge-offs (recoveries) as a % of average loans0.12%0.02%0.06%(0.05) % (0.01) %
Allowance for loan losses as a % of period end loans0.94%0.96%1.11%1.13% 1.29%
General reserves as a % of total loans less impaired commercial loans0.93%0.96%1.05%1.07% 1.09%
       
Nonperforming Assets - Park National Corporation:      
Nonaccrual loans$84,294 $87,822 $95,887 $100,393  $135,216 
Accruing troubled debt restructuring21,153 18,175 24,979 16,254  18,747 
Loans past due 90 days or more1,837 2,086 1,921 2,641  1,677 
Total nonperforming loans$107,284 $108,083 $122,787 $119,288  $155,640 
Other real estate owned - Park National Bank5,792 6,025 7,456 10,687  11,412 
Other real estate owned - SEPH7,901 7,901 11,195 11,918  23,224 
Total nonperforming assets$120,977 $122,009 $141,438 $141,893  $190,276 
Percentage of nonaccrual loans to period end loans1.59%1.67%1.89%2.08% 2.93%
Percentage of nonperforming loans to period end loans2.02%2.05%2.42%2.47% 3.37%
Percentage of nonperforming assets to period end loans2.28%2.31%2.79%2.94% 4.12%
Percentage of nonperforming assets to period end total assets1.56%1.63%1.93%2.03% 2.87%
       
       
PARK NATIONAL CORPORATION
Asset Quality Information (continued)
       
  Year ended December 31,
(in thousands, except ratios)March 31, 2017201620152014 2013
       
Nonperforming Assets - Park National Bank and Guardian:      
Nonaccrual loans$72,780 $76,084 $81,468 $77,477  $99,108 
Accruing troubled debt restructuring21,153 18,175 24,979 16,157  18,747 
Loans past due 90 days or more1,837 2,086 1,921 2,641  1,677 
Total nonperforming loans$95,770 $96,345 $108,368 $96,275  $119,532 
Other real estate owned - Park National Bank5,792 6,025 7,456 10,687  11,412 
Total nonperforming assets$101,562 $102,370 $115,824 $106,962  $130,944 
Percentage of nonaccrual loans to period end loans1.37%1.45%1.61%1.61% 2.16%
Percentage of nonperforming loans to period end loans1.81%1.83%2.14%2.00% 2.61%
Percentage of nonperforming assets to period end loans1.92%1.95%2.29%2.23% 2.86%
Percentage of nonperforming assets to period end total assets1.32%1.38%1.60%1.55% 2.01%
       
Nonperforming Assets - SEPH/Vision Bank (retained portfolio):
Nonaccrual loans$11,514 $11,738 $14,419 $22,916  $36,108 
Accruing troubled debt restructuring   97   
Loans past due 90 days or more      
Total nonperforming loans$11,514 $11,738 $14,419 $23,013  $36,108 
Other real estate owned - SEPH7,901 7,901 11,195 11,918  23,224 
Total nonperforming assets$19,415 $19,639 $25,614 $34,931  $59,332 
       
New nonaccrual loan information - Park National Corporation      
Nonaccrual loans, beginning of period$87,822 $95,887 $100,393 $135,216  $155,536 
New nonaccrual loans11,733 74,786 80,791 70,059  67,398 
Resolved nonaccrual loans15,261 82,851 85,165 86,384  87,718 
Sale of nonaccrual loans held for sale  132 18,498   
Nonaccrual loans, end of period$84,294 $87,822 $95,887 $100,393  $135,216 
       
New nonaccrual loan information - Park National Bank and Guardian        
Nonaccrual loans, beginning of period$76,084 $81,468 $77,477 $99,108  $100,244 
New nonaccrual loans - Ohio-based operations11,733 74,663 80,791 69,389  66,197 
Resolved nonaccrual loans15,037 80,047 76,800 78,288  67,333 
Sale of nonaccrual loans held for sale   12,732   
Nonaccrual loans, end of period$72,780 $76,084 $81,468 $77,477  $99,108 
       
New nonaccrual loan information - SEPH/Vision Bank
Nonaccrual loans, beginning of period$11,738 $14,419 $22,916 $36,108  $55,292 
New nonaccrual loans - SEPH/Vision Bank 123  670  1,201 
Resolved nonaccrual loans224 2,804 8,365 8,096  20,385 
Sale of nonaccrual loans held for sale  132 5,766   
Nonaccrual loans, end of period$11,514 $11,738 $14,419 $22,916  $36,108 
       
Impaired Commercial Loan Portfolio Information (period end):      
Unpaid principal balance$93,830 $95,358 $109,304 $106,156  $175,576 
Prior charge-offs23,731 24,943 28,705 32,480  63,272 
Remaining principal balance70,099 70,415 80,599 73,676  112,304 
Specific reserves1,091 548 4,191 3,660  10,451 
Book value, after specific reserve$69,008 $69,867 $76,408 $70,016  $101,853 
       

 

Media contact: Bethany Lewis, 740.349.0421, blewis@parknationalbank.com
Investor contact: Brady Burt, 740.322.6844, bburt@parknationalbank.com
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com

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Source: Park National Corporation

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