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Tipp City Office

Unity National Bank

1176 West Main Street
Tipp City, OH 45371
Phone: 937-667-4888
Fax: 937-667-1779

Lobby Hours:

MONDAY - THURSDAY: 9am - 5pm
FRIDAY: 9am - 6pm
SATURDAY: 9am - 12pm
SUNDAY: Closed

Drive-Thru Hours:

MONDAY - THURSDAY: 9am - 5pm
FRIDAY: 9am - 6pm
SATURDAY: 9am - 12pm
SUNDAY: Closed

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Investor Relations

Press Release

Park National Corporation reports increased net income in first quarter 2018 financial results and raises quarterly dividend

Company Release - 4/20/2018 4:15 PM ET

NEWARK, Ohio, April 20, 2018 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American:PRK) today reported financial results for the first quarter of 2018 (three months ended March 31, 2018), including a rise in net income and dividend news.

Park’s board of directors increased the quarterly cash dividend from $0.94 per common share to $0.96 per common share. The board also approved a special one-time cash dividend payment of $0.25 per common share. Both dividends are payable on June 8, 2018 to common shareholders of record as of May 18, 2018. Park last increased its dividend more than ten years ago, and had maintained a consistent dividend throughout the great recession.

“With each decision, we aim to serve the best interests of our clients, associates, shareholders and communities. The results of our local bankers’ consistently excellent work plus developments in our country’s economic environment permitted us to distribute our earnings in a variety of ways,” said Park Chief Executive Officer David L. Trautman. “These dividends thank our shareholders – many of whom are our own associates, retirees and fellow community members. They understand who we are and loyally support our organization year after year.”

In February, Park awarded cash bonuses and pay increases to each non-executive associate throughout the organization (1,593 associates or 84 percent of Park’s staff). Park also raised its matching contribution for associate retirement savings plan contributions to 50 percent (from 25 percent). In 2017, Park added $2.5 million to the Park National Corporation Foundation, which funds the bank’s major charitable contributions and community support projects each year. Park supported 2,257 community organizations across Ohio in 2017 and its charitable donations totaled $2.96 million.

Net Income Results

Park’s net income for the first quarter of 2018 was $31.1 million, a 53.6 percent increase from $20.3 million for the first quarter of 2017. First quarter 2018 net income per diluted common share was $2.02, compared to $1.31 in the first quarter of 2017.

Park's community-banking subsidiary, The Park National Bank, reported net income of $26.7 million for the first quarter of 2018, compared to $21.5 million for the first quarter of 2017. The bank’s total assets were $7.5 billion at both March 31, 2018 and December 31, 2017.

According to Park Chief Financial Officer Brady T. Burt, federal tax reform, income related to asset recoveries at its SEPH subsidiary, and bank initiatives related to operating efficiency and balance sheet management all contributed to the rise in net income. “A long-term perspective has always been a part of our steady performance and success. This quarter reflects the results of plans we put into motion over the last few years,” Burt said.

Headquartered in Newark, Ohio, Park National Corporation had $7.5 billion in total assets (as of March 31, 2018). The Park organization principally consists of ten 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, 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…

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

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Park cautions that any forward-looking statements contained in this Current Report on Form 8-K 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, resulting in 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 prepayment penalty income, mortgage banking income, 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 the newly-enacted tax legislation, 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, rent regulation and housing, financial accounting and reporting, environmental protection, insurance, bank products and services, bank capital and liquidity standards, 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, 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 current presidential administration, including the recently enacted Tax Cuts and Jobs Act, and uncertainty or speculation pending the enactment of such changes; uncertainties in Park's preliminary review of, and additional analysis of, the impact of the Tax Cuts and Jobs Act; the effect of healthcare laws in the United States and potential changes for such laws which may increase our healthcare and other costs and negatively impact our operations and financial results; 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 actions to be taken to implement the referendum by United Kingdom voters to exit the European Union; 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 impact of our ability to anticipate and respond to technological changes on our ability to respond to customer needs and meet competitive demands; 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, resulting in failures or disruptions in customer account management, general ledger, deposit, loan, or other systems, including as a result of cyber attacks; operational issues stemming from and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems on which Park and our subsidiaries are highly dependent; fraud, scams and schemes of third parties; the impact of widespread natural and other disasters, pandemics, dislocations, civil unrest, 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; the ability to obtain required governmental and shareholder approvals with respect to, and the ability to complete, the proposed merger transaction involving Park, PNB and NewDominion Bank (the “NewDominion Transaction”) on the proposed terms within the expected timeframe; the risk that the businesses of PNB and NewDominion Bank will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; expected revenue synergies and cost savings from the NewDominion Transaction may not be fully realized within the expected timeframe; revenues following the NewDominion Transaction may be lower than expected; customer and employee relationships and business operations may be disrupted by the NewDominion Transaction; 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, 2017. 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, 2018, December 31, 2017, and March 31, 2017      
        
 201820172017 Percent change vs. 
(in thousands, except share and per share data)1st QTR4th QTR1st QTR 4Q '171Q '17 
INCOME STATEMENT:       
Net interest income$64,850 $63,478 $58,952  2.2%10.0% 
Provision for (recovery of) loan losses260 (183)876  N.M. N.M.  
Other income26,903 23,238 18,955  15.8%41.9% 
Other expense54,308 53,439 48,910  1.6%11.0% 
Income before income taxes$37,185 $33,460 $28,121  11.1%32.2% 
Federal income taxes6,062 10,629 7,854  (43.0)%(22.8)% 
Net income$31,123 $22,831 $20,267  36.3%53.6% 
        
MARKET DATA:       
Earnings per common share - basic (b)$2.04 $1.49 $1.32  36.9%54.5% 
Earnings per common share - diluted (b)2.02 1.48 1.31  36.5%54.2% 
Cash dividends per common share0.94 0.94 0.94  %% 
Book value per common share at period end49.20 49.46 48.64  (0.5)%1.2% 
Market price per common share at period end103.76 104.00 105.20  (0.2)%(1.4)% 
Market capitalization at period end1,587,642 1,589,972 1,609,254  (0.1)%(1.3)% 
        
Weighted average common shares - basic (a)15,288,332 15,285,174 15,312,059  %(0.2)% 
Weighted average common shares - diluted (a)15,431,328 15,378,825 15,432,769  0.3%% 
Common shares outstanding at period end15,301,103 15,288,194 15,297,087  0.1%% 
        
PERFORMANCE RATIOS: (annualized)       
Return on average assets (a)(b)1.69%1.17%1.09% 44.4%55.0% 
Return on average shareholders' equity (a)(b)16.84%11.85%11.05% 42.1%52.4% 
Yield on loans4.94%4.79%4.62% 3.1%6.9% 
Yield on investment securities2.62%2.55%2.42% 2.7%8.3% 
Yield on money markets1.63%1.29%0.85% 26.4%91.8% 
Yield on earning assets4.40%4.19%4.06% 5.0%8.4% 
Cost of interest bearing deposits0.54%0.48%0.36% 12.5%50.0% 
Cost of borrowings1.72%2.15%2.36% (20.0)%(27.1)% 
Cost of paying liabilities0.71%0.79%0.76% (10.1)%(6.6)% 
Net interest margin (g)3.87%3.61%3.49% 7.2%10.9% 
Efficiency ratio (g)58.74%60.64%61.93% (3.1)%(5.2)% 
        
OTHER RATIOS (NON - GAAP):       
Annualized return on average tangible assets (a)(b)(e)1.71%1.18%1.10% 44.9%55.5% 
Annualized return on average tangible equity (a)(b)(c)18.64%13.09%12.24% 42.4%52.3% 
Tangible book value per share (d)$44.47 $44.73 $43.92  (0.6)%1.3% 
        
N.M. - Not meaningful       
Note: Explanations for footnotes (a) - (g) are included at the end of the financial highlights.       
        
        
        
        
        
PARK NATIONAL CORPORATION 
Financial Highlights (continued) 
As of or for the three months ended March 31, 2018, December 31, 2017, and March 31, 2017      
        
     Percent change vs. 
BALANCE SHEET:March 31, 2018December 31, 2017March 31, 2017 4Q '171Q '17 
        
Investment securities$1,464,356 $1,512,824 $1,565,668  (3.2)%(6.5)% 
Loans5,292,349 5,372,483 5,313,641  (1.5)%(0.4)% 
Allowance for loan losses48,969 49,988 49,922  (2.0)%(1.9)% 
Goodwill72,334 72,334 72,334  %% 
Other real estate owned (OREO)9,055 14,190 13,693  (36.2)%(33.9)% 
Total assets7,518,970 7,537,620 7,744,690  (0.2)%(2.9)% 
Total deposits6,084,294 5,817,326 5,920,560  4.6%2.8% 
Borrowings624,090 906,289 1,010,703  (31.1)%(38.3)% 
Total shareholders' equity752,774 756,101 744,122  (0.4)%1.2% 
Tangible equity (d)680,440 683,767 671,788  (0.5)%1.3% 
Nonperforming loans86,205 93,959 107,284  (8.3)%(19.6)% 
Nonperforming assets99,117 112,998 120,977  (12.3)%(18.1)% 
        
ASSET QUALITY RATIOS:       
Loans as a % of period end total assets70.39%71.28%68.61% (1.2)%2.6% 
Nonperforming loans as a % of period end loans1.63%1.75%2.02% (6.9)%(19.3)% 
Nonperforming assets as a % of period end loans + OREO + other nonperforming assets1.87%2.10%2.27% (11.0)%(17.6)% 
Allowance for loan losses as a % of period end loans0.93%0.93%0.94% %(1.1)% 
Net loan charge-offs$1,279 $5,061 $1,578  (74.7)%(18.9)% 
Annualized net loan charge-offs as a % of average loans (a)0.10%0.37%0.12% (73.0)%(16.7)% 
        
CAPITAL & LIQUIDITY:       
Total shareholders' equity / Period end total assets10.01%10.03%9.61% (0.2)%4.2% 
Tangible equity (d) / Tangible assets (f)9.14%9.16%8.76% (0.2)%4.3% 
Average shareholders' equity / Average assets (a)10.06%9.88%9.84% 1.8%2.2% 
Average shareholders' equity / Average loans (a)14.14%14.24%14.10% (0.7)%0.3% 
Average loans / Average deposits (a)89.39%90.73%92.45% (1.5)%(3.3)% 
        
PARK NATIONAL CORPORATION
Financial Highlights (continued)   
    
(a) Averages are for the three months ended March 31, 2018, December 31, 2017 and March 31, 2017.
 
(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, 2018December 31, 2017March 31, 2017
AVERAGE SHAREHOLDERS' EQUITY$749,627 $764,211 $744,040 
Less: Average goodwill72,334 72,334 72,334 
AVERAGE TANGIBLE EQUITY$677,293 $691,877 $671,706 
    
(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, 2018December 31, 2017March 31, 2017
TOTAL SHAREHOLDERS' EQUITY$752,774 $756,101 $744,122 
Less: Goodwill72,334 72,334 72,334 
TANGIBLE EQUITY$680,440 $683,767 $671,788 
    
(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, 2018December 31, 2017March 31, 2017
AVERAGE ASSETS$7,455,065 $7,734,844 $7,559,691 
Less: Average goodwill72,334 72,334 72,334 
AVERAGE TANGIBLE ASSETS$7,382,731 $7,662,510 $7,487,357 
    
(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, 2018December 31, 2017March 31, 2017
TOTAL ASSETS$7,518,970 $7,537,620 $7,744,690 
Less: Goodwill72,334 72,334 72,334 
TANGIBLE ASSETS$7,446,636 $7,465,286 $7,672,356 
    
(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 21% tax rate for 2018 and a 35% tax rate for 2017. 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, 2018December 31, 2017March 31, 2017
Interest income$73,714 $73,969 $68,755 
Fully taxable equivalent adjustment701 1,413 1,072 
Fully taxable equivalent interest income$74,415 $75,382 $69,827 
Interest expense8,864 10,491 9,803 
Fully taxable equivalent net interest income$65,551 $64,891 $60,024 
    


     
PARK NATIONAL CORPORATION
Consolidated Statements of Income
     
  Three Months Ended
  March 31,
(in thousands, except share and per share data) 2018 2017
     
Interest income:    
Interest and fees on loans $64,402  $59,908 
Interest on:    
Obligations of U.S. Government, its agencies    
and other securities - taxable 6,767  7,138 
Obligations of states and political subdivisions - tax-exempt 2,174  1,460 
Other interest income 371  249 
Total interest income 73,714  68,755 
     
Interest expense:    
Interest on deposits:    
Demand and savings deposits 3,290  1,614 
Time deposits 2,551  2,161 
Interest on borrowings 3,023  6,028 
Total interest expense 8,864  9,803 
     
Net interest income 64,850  58,952 
     
Provision for loan losses 260  876 
     
Net interest income after provision for loan losses 64,590  58,076 
     
Other income 26,903  18,955 
     
Other expense 54,308  48,910 
     
Income before income taxes 37,185  28,121 
     
Federal income taxes 6,062  7,854 
     
Net income $31,123  $20,267 
     
Per Common Share:    
Net income  - basic $2.04  $1.32 
Net income  - diluted $2.02  $1.31 
     
Weighted average shares - basic 15,288,332  15,312,059 
Weighted average shares - diluted 15,431,328  15,432,769 
     
Cash Dividends Declared $0.94  $0.94 
     


 
PARK NATIONAL CORPORATION
Consolidated Balance Sheets
   
(in thousands, except share data)March 31, 2018December 31, 2017
   
Assets  
   
Cash and due from banks$110,163 $131,946 
Money market instruments166,418 37,166 
Investment securities1,464,356 1,512,824 
Loans5,292,349 5,372,483 
Allowance for loan losses(48,969)(49,988)
Loans, net5,243,380 5,322,495 
Bank premises and equipment, net56,239 55,901 
Goodwill72,334 72,334 
Other real estate owned9,055 14,190 
Other assets397,025 390,764 
Total assets$7,518,970 $7,537,620 
   
Liabilities and Shareholders' Equity  
   
Deposits:  
Noninterest bearing$1,618,200 $1,633,941 
Interest bearing4,466,094 4,183,385 
Total deposits6,084,294 5,817,326 
Borrowings624,090 906,289 
Other liabilities57,812 57,904 
Total liabilities$6,766,196 $6,781,519 
   
   
Shareholders' Equity:  
Preferred shares (200,000 shares authorized; no shares outstanding at March 31, 2018 and December 31, 2017)$ $ 
Common shares (No par value; 20,000,000 shares authorized in 2018 and 2017; 16,150,740 shares issued at March 31, 2018 and 16,150,752 shares issued at December 31, 2017)307,249 307,726 
Accumulated other comprehensive loss, net of taxes(52,641)(26,454)
Retained earnings583,941 561,908 
Treasury shares (849,637 shares at March 31, 2018 and 862,558 at December 31, 2017)(85,775)(87,079)
Total shareholders' equity$752,774 $756,101 
Total liabilities and shareholders' equity$7,518,970 $7,537,620 
       


 
PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
   
 Three Months Ended
 March 31,
(in thousands)20182017
   
Assets  
   
Cash and due from banks$118,248 $119,608 
Money market instruments92,533 118,999 
Investment securities1,450,116 1,565,977 
Loans5,302,648 5,278,539 
Allowance for loan losses(50,590)(50,843)
Loans, net5,252,058 5,227,696 
Bank premises and equipment, net56,506 57,870 
Goodwill72,334 72,334 
Other real estate owned13,537 13,744 
Other assets399,733 383,463 
Total assets$7,455,065 $7,559,691 
   
   
Liabilities and Shareholders' Equity  
   
Deposits:  
Noninterest bearing$1,569,072 $1,499,355 
Interest bearing4,363,287 4,210,203 
Total deposits5,932,359 5,709,558 
Borrowings711,044 1,034,678 
Other liabilities62,035 71,415 
Total liabilities$6,705,438 $6,815,651 
   
Shareholders' Equity:  
Preferred shares$ $ 
Common shares307,740 305,908 
Accumulated other comprehensive loss, net of taxes(41,677)(17,232)
Retained earnings570,629 539,936 
Treasury shares(87,065)(84,572)
Total shareholders' equity$749,627 $744,040 
Total liabilities and shareholders' equity$7,455,065 $7,559,691 
       


 
PARK NATIONAL CORPORATION
Consolidated Statements of Income - Linked Quarters
      
 20182017201720172017
(in thousands, except per share data)1st QTR4th QTR3rd QTR2nd QTR1st QTR
      
Interest income:     
Interest and fees on loans$64,402 $64,447 $63,110 $61,222 $59,908 
Interest on:     
Obligations of U.S. Government, its agencies and other securities - taxable6,767 6,653 6,757 6,892 7,138 
Obligations of states and political subdivisions - tax-exempt2,174 2,112 1,974 1,664 1,460 
Other interest income371 757 1,383 698 249 
Total interest income73,714 73,969 73,224 70,476 68,755 
      
Interest expense:     
Interest on deposits:     
Demand and savings deposits3,290 2,677 2,882 2,291 1,614 
Time deposits2,551 2,490 2,521 2,457 2,161 
Interest on borrowings3,023 5,324 6,270 5,950 6,028 
Total interest expense8,864 10,491 11,673 10,698 9,803 
      
Net interest income64,850 63,478 61,551 59,778 58,952 
      
Provision for (recovery of) loan losses260 (183)3,283 4,581 876 
      
Net interest income after provision for (recovery of) loan losses64,590 63,661 58,268 55,197 58,076 
      
Other income26,903 23,238 23,537 20,699 18,955 
      
Other expense54,308 53,439 51,259 49,554 48,910 
      
Income before income taxes37,185 33,460 30,546 26,342 28,121 
      
Federal income taxes6,062 10,629 8,434 7,310 7,854 
      
Net income$31,123 $22,831 $22,112 $19,032 $20,267 
      
Per Common Share:     
Net income - basic$2.04 $1.49 $1.45 $1.24 $1.32 
Net income - diluted$2.02 $1.48 $1.44 $1.24 $1.31 
                


 
PARK NATIONAL CORPORATION
Detail of other income and other expense - Linked Quarters
      
 20182017201720172017
(in thousands)1st QTR4th QTR3rd QTR2nd QTR1st QTR
      
Other income:     
Income from fiduciary activities$6,395 $6,264 $5,932 $6,025 $5,514 
Service charges on deposits2,922 3,142 3,216 3,156 3,139 
Other service income4,172 3,554 3,357 3,447 2,804 
Checkcard fee income4,002 4,023 3,974 4,040 3,761 
Bank owned life insurance income1,009 1,068 1,573 1,114 1,103 
ATM fees524 545 605 561 542 
OREO valuation adjustments(207)(91)(22)(272)(73)
Gain on the sale of OREO, net4,321 47 51 53 100 
Net (loss) gain on sale of investment securities(2,271)1,794  27  
Unrealized gain on equity securities3,489     
Other components of net periodic benefit income1,705 1,450 1,448 1,448 1,448 
Miscellaneous842 1,442 3,403 1,100 617 
Total other income$26,903 $23,238 $23,537 $20,699 $18,955 
      
Other expense:     
Salaries$25,320 $23,157 $23,302 $23,001 $22,717 
Employee benefits7,029 6,320 5,943 6,206 6,468 
Occupancy expense2,936 2,442 2,559 2,565 2,635 
Furniture and equipment expense4,149 4,198 3,868 3,640 3,618 
Data processing fees1,773 1,690 1,919 1,676 1,965 
Professional fees and services6,190 7,886 6,100 6,018 4,829 
Marketing1,218 1,112 1,122 1,084 1,056 
Insurance1,428 1,768 1,499 1,517 1,570 
Communication1,250 1,228 1,110 1,155 1,333 
State tax expense1,105 665 912 943 1,063 
Miscellaneous1,910 2,973 2,925 1,749 1,656 
Total other expense$54,308 $53,439 $51,259 $49,554 $48,910 
                


PARK NATIONAL CORPORATION
Asset Quality Information
        
   Year ended December 31,
(in thousands, except ratios)March 31, 2018 2017201620152014 
        
Allowance for loan losses:       
Allowance for loan losses, beginning of period$49,988  $50,624 $56,494 $54,352 $59,468  
Charge-offs3,450  19,403 20,799 14,290 24,780 (A)
Recoveries2,171  10,210 20,030 11,442 26,997  
Net charge-offs (recoveries)1,279  9,193 769 2,848 (2,217) 
Provision for (recovery of) loan losses260  8,557 (5,101)4,990 (7,333) 
Allowance for loan losses, end of period$48,969  $49,988 $50,624 $56,494 $54,352  
(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$48,969  $49,988 $50,624 $56,494 $54,352  
Specific reserves1,207  684 548 4,191 3,660  
General reserves$47,762  $49,304 $50,076 $52,303 $50,692  
        
Total loans$5,292,349  $5,372,483 $5,271,857 $5,068,085 $4,829,682  
Impaired commercial loans50,292  56,545 70,415 80,599 73,676  
Total loans less impaired commercial loans$5,242,057  $5,315,938 $5,201,442 $4,987,486 $4,756,006  
        
        
Asset Quality Ratios:       
Net charge-offs (recoveries) as a % of average loans (annualized)0.10% 0.17%0.02%0.06%(0.05)% 
Allowance for loan losses as a % of period end loans0.93% 0.93%0.96%1.11%1.13% 
General reserves as a % of total loans less impaired commercial loans0.91% 0.93%0.96%1.05%1.07% 
        
Nonperforming Assets - Park National Corporation:       
Nonaccrual loans$66,151  $72,056 $87,822 $95,887 $100,393  
Accruing troubled debt restructuring18,682  20,111 18,175 24,979 16,254  
Loans past due 90 days or more1,372  1,792 2,086 1,921 2,641  
Total nonperforming loans$86,205  $93,959 $108,083 $122,787 $119,288  
Other real estate owned - Park National Bank4,846  6,524 6,025 7,456 10,687  
Other real estate owned - SEPH4,209  7,666 7,901 11,195 11,918  
Other nonperforming assets - Park National Bank3,857  4,849     
Total nonperforming assets$99,117  $112,998 $122,009 $141,438 $141,893  
Percentage of nonaccrual loans to period end loans1.25% 1.34%1.67%1.89%2.08% 
Percentage of nonperforming loans to period end loans1.63% 1.75%2.05%2.42%2.47% 
Percentage of nonperforming assets to period end loans1.87% 2.10%2.31%2.79%2.94% 
Percentage of nonperforming assets to period end total assets1.32% 1.50%1.63%1.93%2.03% 
        
        
PARK NATIONAL CORPORATION
Asset Quality Information (continued)
        
   Year ended December 31,
(in thousands, except ratios)March 31, 2018 2017201620152014 
        
Nonperforming Assets - Park National Bank and Guardian:       
Nonaccrual loans$66,151  $61,753 $76,084 $81,468 $77,477  
Accruing troubled debt restructuring18,682  20,111 18,175 24,979 16,157  
Loans past due 90 days or more1,372  1,792 2,086 1,921 2,641  
Total nonperforming loans$86,205  $83,656 $96,345 $108,368 $96,275  
Other real estate owned - Park National Bank4,846  6,524 6,025 7,456 10,687  
Other nonperforming assets - Park National Bank3,857  4,849     
Total nonperforming assets$94,908  $95,029 $102,370 $115,824 $106,962  
Percentage of nonaccrual loans to period end loans1.25% 1.15%1.45%1.61%1.61% 
Percentage of nonperforming loans to period end loans1.63% 1.56%1.83%2.14%2.00% 
Percentage of nonperforming assets to period end loans1.79% 1.77%1.95%2.29%2.23% 
Percentage of nonperforming assets to period end total assets1.27% 1.27%1.38%1.60%1.55% 
        
Nonperforming Assets - SEPH/Vision Bank (retained portfolio):
Nonaccrual loans$  $10,303 $11,738 $14,419 $22,916  
Accruing troubled debt restructuring     97  
Loans past due 90 days or more       
Total nonperforming loans$  $10,303 $11,738 $14,419 $23,013  
Other real estate owned - SEPH4,209  7,666 7,901 11,195 11,918  
Total nonperforming assets$4,209  $17,969 $19,639 $25,614 $34,931  
        
New nonaccrual loan information - Park National Corporation       
Nonaccrual loans, beginning of period$72,056  $87,822 $95,887 $100,393 $135,216  
New nonaccrual loans23,075  58,753 74,786 80,791 70,059  
Resolved nonaccrual loans28,980  74,519 82,851 85,165 86,384  
Sale of nonaccrual loans held for sale    132 18,498  
Nonaccrual loans, end of period$66,151  $72,056 $87,822 $95,887 $100,393  
        
New nonaccrual loan information - Park National Bank and Guardian       
Nonaccrual loans, beginning of period$61,753  $76,084 $81,468 $77,477 $99,108  
New nonaccrual loans - Ohio-based operations23,075  58,753 74,663 80,791 69,389  
Resolved nonaccrual loans18,677  73,084 80,047 76,800 78,288  
Sale of nonaccrual loans held for sale     12,732  
Nonaccrual loans, end of period$66,151  $61,753 $76,084 $81,468 $77,477  
        
New nonaccrual loan information - SEPH/Vision Bank (retained portfolio)
Nonaccrual loans, beginning of period$10,303  $11,738 $14,419 $22,916 $36,108  
New nonaccrual loans - SEPH/Vision Bank   123  670  
Resolved nonaccrual loans10,303  1,435 2,804 8,365 8,096  
Sale of nonaccrual loans held for sale    132 5,766  
Nonaccrual loans, end of period$  $10,303 $11,738 $14,419 $22,916  
        
Impaired Commercial Loan Portfolio Information (period end):       
Unpaid principal balance$60,264  $66,585 $95,358 $109,304 $106,156  
Prior charge-offs9,972  10,040 24,943 28,705 32,480  
Remaining principal balance50,292  56,545 70,415 80,599 73,676  
Specific reserves1,207  684 548 4,191 3,660  
Book value, after specific reserve$49,085  $55,861 $69,867 $76,408 $70,016  
        

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Source: Park National Corporation

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