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Park National Corporation reports financial results for third quarter and first nine months of 2021

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  • PRK

Increased net income supports special cash dividend and associate award

NEWARK, Ohio, Oct. 25, 2021 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the third quarter and first nine months of 2021 (three and nine months ended September 30, 2021). Park's board of directors declared a quarterly cash dividend of $1.03 per common share, payable on December 10, 2021 to common shareholders of record as of November 19, 2021. The board also declared a special cash dividend of $0.20 per common share, also payable on December 10, 2021 to common shareholders of record as of November 19, 2021.

“Throughout another year of pandemic turbulence, our customers have relied on Park National for more security, convenience, and compassion. We continue to report new opportunities and growth in services from loans to retirement investments to digital banking. We are proud to help our communities not just endure difficult circumstances, but also navigate them and build for the future,” Park Chairman and CEO David Trautman said.

Park’s net income for the third quarter of 2021 was $35.4 million, a 14.9 percent increase from $30.8 million for the third quarter of 2020. Third quarter 2021 net income per diluted common share was $2.16, compared to $1.88 in the third quarter of 2020. Park's net income for the first nine months of 2021 was $117.4 million, a 41.9 percent increase from $82.7 million for the first nine months of 2020. Net income per diluted common share was $7.14 for the first nine months of 2021, compared to $5.04 for the first nine months of 2020.

Park's community-banking subsidiary, The Park National Bank, reported net income of $36.5 million for the third quarter of 2021, a 10.8 percent increase compared to $32.9 million for the same period of 2020. Park National Bank reported net income of $122.5 million for the first nine months of 2021, compared to $89.5 million for the first nine months of 2020.

Park also announced that effective October 31, 2021, it will raise its minimum wage for all associates to $15 per hour, to remain competitive in attracting and retaining associates in each of the communities Park serves. Additionally, Park will reward its current associates for their collective role in supporting Park’s outstanding performance throughout another challenging year. Park’s board approved a one-time bonus payment for all associates who are not eligible for Park’s annual incentive compensation program. In November, each full-time associate in that group will receive an extra payment of $1,000, and part-time associates will receive $750.

“Open communication, empathy, and flexibility have always been important parts of our culture, and that has been especially true throughout this pandemic. Our success depends on our associates, and our leaders keep a close watch to ensure we’re taking care of our colleagues and the customers they serve daily,” Park President Matthew Miller said. “We are pleased to continue to invest in support for our community organizations, customers, shareholders, and associates.”

Headquartered in Newark, Ohio, Park National Corporation has $10.0 billion in total assets (as of September 30, 2021). Park's banking operations are conducted through its subsidiary The Park National Bank. Other Park subsidiaries are Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

Complete financial tables are listed below.

Category: Earnings
Media contact: Bethany Lewis, 740.349.0421, bethany.lewis@parknationalbank.com
Investor contact: Brady Burt, 740.322.6844, brady.burt@parknationalbank.com
Park National Corporation, 50 N. Third Street, Newark, Ohio 43055

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:

  • the ever-changing effects of the novel coronavirus (COVID-19) pandemic - - the duration, extent and severity of which are impossible to predict, including the possibility of further resurgence in the spread of COVID-19 or variants thereof - - on economies (local, national and international) and markets, and on our customers, counterparties, employees and third-party service providers, as well as the effects of various responses of governmental and nongovernmental authorities to the COVID-19 pandemic, including public health actions directed toward the containment of the COVID-19 pandemic (such as quarantines, shut downs and other restrictions on travel and commercial, social or other activities), the availability and effectiveness of vaccines, and the implementation of fiscal stimulus packages;

  • the impact of future governmental and regulatory actions upon our participation in and execution of government programs related to the COVID-19 pandemic;

  • Park's ability to execute our business plan successfully and within the expected timeframe as well as our ability to manage strategic initiatives in light of the impact of the COVID-19 pandemic and the various responses to the COVID-19 pandemic;

  • 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 weaker recovery than anticipated, in addition to the continuing impact of the COVID-19 pandemic on our customers’ operations and financial condition, either of which may result in adverse impacts on the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties' inability to meet credit and other obligations and the possible impairment of collectability of loans;

  • factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions;

  • the effect of monetary and other fiscal policies (including the impact of money supply and interest rate policies of the Federal Reserve Board) as well as disruption in the liquidity and functioning of U.S. financial markets, as a result of the COVID-19 pandemic and government policies implemented in response thereto, may adversely impact prepayment penalty income, mortgage banking income, income from fiduciary activities, the value of securities, deposits and other financial instruments, in addition to the loan demand and the performance of our loan portfolio, and the interest rate sensitivity of our consolidated balance sheet as well as reduce interest margins;

  • changes in the federal, state, or local tax laws 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 and otherwise negatively impact our financial performance;

  • the impact of the results of the 2020 U.S. elections, including on the regulatory landscape, capital markets, tax policy, infrastructure spending and social programs;

  • changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions (including as a result of the COVID-19 pandemic and reactions thereto), legislative and regulatory initiatives (including those undertaken in response to the COVID-19 pandemic), or other factors may be different than anticipated;

  • changes in unemployment levels in the states in which Park and our subsidiaries do business may be different than anticipated due to the continuing impact of the COVID-19 pandemic;

  • changes in customers', suppliers', and other counterparties' performance and creditworthiness may be different than anticipated due to the continuing impact of and the various responses to the COVID-19 pandemic;

  • Park may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral;

  • the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors;

  • the adequacy of our internal controls and risk management program in the event of changes in the market, economic, operational (including those which may result from more of our associates working remotely), asset/liability repricing, legal, compliance, strategic, cybersecurity, liquidity, credit and interest rate risks associated with Park's business;

  • competitive pressures among financial services organizations could increase significantly, including product and pricing pressures (which could in turn impact our credit spreads), changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and our ability to attract, develop and retain qualified banking professionals;

  • uncertainty regarding the nature, timing, cost 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, FDIC insurance premium levels, pensions, bankruptcy, consumer protection, rent regulation and housing, financial accounting and reporting, environmental protection, insurance, bank products and services, bank and bank holding company capital and liquidity standards, fiduciary standards, securities and other aspects of the financial services industry, specifically the reforms provided for in the Coronavirus Aid, Relief and Economic Security (CARES) Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, 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 Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board, to implement the provisions of the CARES Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the provisions of the American Rescue Plan Act of 2021, the provisions of the Dodd-Frank 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 "FASB"), the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, may adversely affect Park's reported financial condition or results of operations;

  • Park's assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate or not predictive of actual results;

  • the impact of Park's ability to anticipate and respond to technological changes on Park's ability to respond to customer needs and meet competitive demands;

  • 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;

  • the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Park's third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Park and/or result in Park incurring a financial loss;

  • a failure in or breach of Park's 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;

  • the existence or exacerbation of general geopolitical instability and uncertainty as well as the effect of trade policies (including the impact of potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations and changes in the relationship of the U.S. and its global trading partners);

  • 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 growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia and the risk they may face difficulties servicing their sovereign debt;

  • our litigation and regulatory compliance exposure, including the costs and effects of any adverse developments in legal proceedings or other claims and the costs and effects of unfavorable resolution of regulatory and other governmental examinations or other inquiries;

  • continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends;

  • the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties;

  • the impact of widespread natural and other disasters, pandemics (including the COVID-19 pandemic), dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities on the economy and financial markets generally and on us or our counterparties specifically;

  • any of the foregoing factors, or other cascading effects of the COVID-19 pandemic that are not currently foreseeable, could materially affect our business, including our customers' willingness to conduct banking transactions and their ability to pay on existing obligations;

  • the effect of healthcare laws in the U.S. and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase our healthcare and other costs and negatively impact our operations and financial results;

  • risk and uncertainties associated with Park's entry into new geographic markets with our recent acquisitions, including expected revenue synergies and cost savings from recent acquisitions not being fully realized or realized within the expected time frame;

  • the discontinuation of the London Inter-Bank Offered Rate (LIBOR) and other reference rates which may result in increased expenses and litigation, and adversely impact the effectiveness of hedging strategies;

  • 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, 2020.

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 September 30, 2021, June 30, 2021, and September 30, 2020

2021

2021

2020

Percent change vs.

(in thousands, except share and per share data)

3rd QTR

2nd QTR

3rd QTR

2Q '21

3Q '20

INCOME STATEMENT:

Net interest income

$

81,602

$

83,851

$

83,840

(2.7

)

%

(2.7

)

%

Provision for (recovery of) credit losses (l)

1,972

(4,040

)

13,836

N.M

N.M

Other income

32,411

31,238

36,558

3.8

%

(11.3

)

%

Other expense

68,489

71,400

69,859

(4.1

)

%

(2.0

)

%

Income before income taxes

$

43,552

$

47,729

$

36,703

(8.8

)

%

18.7

%

Income taxes

8,118

8,597

5,857

(5.6

)

%

38.6

%

Net income

$

35,434

$

39,132

$

30,846

(9.5

)

%

14.9

%

MARKET DATA:

Earnings per common share - basic (a)

$

2.17

$

2.39

$

1.89

(9.2

)

%

14.8

%

Earnings per common share - diluted (a)

2.16

2.38

1.88

(9.2

)

%

14.9

%

Cash dividends declared per common share

1.03

1.03

1.02

%

1.0

%

Book value per common share at period end

65.90

65.44

62.39

0.7

%

5.6

%

Market price per common share at period end

121.95

117.42

81.96

3.9

%

48.8

%

Market capitalization at period end

1,976,343

1,918,733

1,336,011

3.0

%

47.9

%

Weighted average common shares - basic (b)

16,292,312

16,340,690

16,300,720

(0.3

)

%

(0.1

)

%

Weighted average common shares - diluted (b)

16,423,912

16,472,800

16,393,792

(0.3

)

%

0.2

%

Common shares outstanding at period end

16,206,177

16,340,772

16,300,763

(0.8

)

%

(0.6

)

%

PERFORMANCE RATIOS: (annualized)

Return on average assets (a)(b)

1.40

%

1.59

%

1.28

%

(11.9

)

%

9.4

%

Return on average shareholders' equity (a)(b)

13.04

%

14.81

%

12.03

%

(12.0

)

%

8.4

%

Yield on loans

4.47

%

4.60

%

4.54

%

(2.8

)

%

(1.5

)

%

Yield on investment securities

2.12

%

2.31

%

2.35

%

(8.2

)

%

(9.8

)

%

Yield on money market instruments

0.16

%

0.10

%

0.11

%

60.0

%

45.5

%

Yield on interest earning assets

3.69

%

3.93

%

4.12

%

(6.1

)

%

(10.4

)

%

Cost of interest bearing deposits

0.11

%

0.13

%

0.26

%

(15.4

)

%

(57.7

)

%

Cost of borrowings

2.00

%

1.91

%

1.63

%

4.7

%

22.7

%

Cost of paying interest bearing liabilities

0.26

%

0.29

%

0.39

%

(10.3

)

%

(33.3

)

%

Net interest margin (g)

3.53

%

3.74

%

3.85

%

(5.6

)

%

(8.3

)

%

Efficiency ratio (g)

59.70

%

61.65

%

57.69

%

(3.2

)

%

3.5

%

OTHER RATIOS (NON-GAAP):

Tangible book value per share (d)

$

55.56

$

55.17

$

52.00

0.7

%

6.8

%

Note: Explanations for footnotes (a) - (l) are included at the end of the financial tables in the "Financial Reconciliations" section.

PARK NATIONAL CORPORATION

Financial Highlights (continued)

As of or for the three months ended September 30, 2021, June 30, 2021, and September 30, 2020

Percent change vs.

(in thousands, except ratios)

September 30, 2021

June 30, 2021

September 30, 2020

2Q '21

3Q '20

BALANCE SHEET:

Investment securities

$

1,609,303

$

1,461,916

$

1,097,598

10.1

%

46.6

%

Loans

6,908,417

7,035,646

7,278,546

(1.8

)

%

(5.1

)

%

Allowance for credit losses (l)

88,129

83,577

87,038

5.4

%

1.3

%

Goodwill and other intangible assets

167,477

167,897

169,380

(0.3

)

%

(1.1

)

%

Other real estate owned (OREO)

813

813

836

%

(2.8

)

%

Total assets

10,034,018

9,947,994

9,240,006

0.9

%

8.6

%

Total deposits

8,364,385

8,214,624

7,475,829

1.8

%

11.9

%

Borrowings

424,078

501,350

643,103

(15.4

)

%

(34.1

)

%

Total shareholders' equity

1,067,912

1,069,392

1,016,996

(0.1

)

%

5.0

%

Tangible equity (d)

900,435

901,495

847,616

(0.1

)

%

6.2

%

Total nonperforming loans

106,872

114,695

148,442

(6.8

)

%

(28.0

)

%

Total nonperforming assets

110,849

118,672

152,670

(6.6

)

%

(27.4

)

%

ASSET QUALITY RATIOS:

Loans as a % of period end total assets

68.85

%

70.72

%

78.77

%

(2.6

)

%

(12.6

)

%

Total nonperforming loans as a % of period end loans

1.55

%

1.63

%

2.04

%

(4.9

)

%

(24.0

)

%

Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets

1.60

%

1.69

%

2.10

%

(5.3

)

%

(23.8

)

%

Allowance for credit losses as a % of period end loans

1.28

%

1.19

%

1.20

%

7.6

%

6.7

%

Net loan (recoveries) charge-offs

$

(2,580

)

$

(731

)

$

274

N.M

N.M

Annualized net loan (recoveries) charge-offs as a % of average loans (b)

(0.15

)

%

(0.04

)

%

0.02

%

N.M

N.M

CAPITAL & LIQUIDITY:

Total shareholders' equity / Period end total assets

10.64

%

10.75

%

11.01

%

(1.0

)

%

(3.4

)

%

Tangible equity (d) / Tangible assets (f)

9.13

%

9.22

%

9.34

%

(1.0

)

%

(2.2

)

%

Average shareholders' equity / Average assets (b)

10.71

%

10.74

%

10.67

%

(0.3

)

%

0.4

%

Average shareholders' equity / Average loans (b)

15.50

%

14.94

%

14.08

%

3.7

%

10.1

%

Average loans / Average deposits (b)

82.68

%

86.49

%

92.02

%

(4.4

)

%

(10.1

)

%

Note: Explanations for footnotes (a) - (l) are included at the end of the financial tables in the "Financial Reconciliations" section.


PARK NATIONAL CORPORATION

Financial Highlights

Nine months ended September 30, 2021 and September 30, 2020

2021

2020

(in thousands, except share and per share data)

Nine months ended September 30

Nine months ended September 30

Percent change vs '20

INCOME STATEMENT:

Net interest income

$

246,187

$

241,309

2.0

%

(Recovery of) provision for credit losses (l)

(6,923

)

31,213

N.M

Other income

97,738

90,008

8.6

%

Other expense

207,754

200,934

3.4

%

Income before income taxes

$

143,094

$

99,170

44.3

%

Income taxes

25,697

16,447

56.2

%

Net income

$

117,397

$

82,723

41.9

%

MARKET DATA:

Earnings per common share - basic (a)

$

7.20

$

5.07

42.0

%

Earnings per common share - diluted (a)

7.14

5.04

41.7

%

Cash dividends declared per common share

3.29

3.26

0.9

%

Weighted average common shares - basic (b)

16,315,996

16,300,250

0.1

%

Weighted average common shares - diluted (b)

16,445,568

16,398,350

0.3

%

PERFORMANCE RATIOS: (annualized)

Return on average assets (a)(b)

1.59

%

1.20

%

32.5

%

Return on average shareholders' equity (a)(b)

14.79

%

11.05

%

33.8

%

Yield on loans

4.52

%

4.72

%

(4.2

)

%

Yield on investment securities

2.30

%

2.62

%

(12.2

)

%

Yield on money market instruments

0.13

%

0.31

%

(58.1

)

%

Yield on interest earning assets

3.86

%

4.27

%

(9.6

)

%

Cost of interest bearing deposits

0.13

%

0.47

%

(72.3

)

%

Cost of borrowings

1.92

%

1.66

%

15.7

%

Cost of paying interest bearing liabilities

0.29

%

0.57

%

(49.1

)

%

Net interest margin (g)

3.67

%

3.88

%

(5.4

)

%

Efficiency ratio (g)

60.03

%

60.26

%

(0.4

)

%

ASSET QUALITY RATIOS

Net loan (recoveries) charge-offs

$

(3,287

)

$

854

N.M.

Net loan (recoveries) charge-offs as a % of average loans (b)

(0.06

)

%

0.02

%

N.M.

CAPITAL & LIQUIDITY

Average shareholders' equity / Average assets (b)

10.77

%

10.85

%

(0.7

)

%

Average shareholders' equity / Average loans (b)

15.02

%

14.49

%

3.7

%

Average loans / Average deposits (b)

86.33

%

90.19

%

(4.3

)

%

Note: Explanations for footnotes (a) - (l) are included at the end of the financial tables in the "Financial Reconciliations" section.


PARK NATIONAL CORPORATION

Consolidated Statements of Income

Three Months Ended

Nine Months Ended

September 30,

September 30,

(in thousands, except share and per share data)

2021

2020

2021

2020

Interest income:

Interest and fees on loans

$

78,127

$

82,617

$

238,040

$

243,459

Interest on:

Obligations of U.S. Government, its agencies

and other securities - taxable

4,904

4,841

13,760

15,398

Obligations of states and political subdivisions - tax-exempt

2,029

2,045

6,098

6,396

Other interest income

360

63

689

667

Total interest income

85,420

89,566

258,587

265,920

Interest expense:

Interest on deposits:

Demand and savings deposits

435

803

1,222

8,652

Time deposits

1,011

2,662

3,880

10,293

Interest on borrowings

2,372

2,261

7,298

5,666

Total interest expense

3,818

5,726

12,400

24,611

Net interest income

81,602

83,840

246,187

241,309

Provision for (recovery of) credit losses (l)

1,972

13,836

(6,923

)

31,213

Net interest income after provision for (recovery of) credit losses

79,630

70,004

253,110

210,096

Other income

32,411

36,558

97,738

90,008

Other expense

68,489

69,859

207,754

200,934

Income before income taxes

43,552

36,703

143,094

99,170

Income taxes

8,118

5,857

25,697

16,447

Net income

$

35,434

$

30,846

$

117,397

$

82,723

Per common share:

Net income - basic

$

2.17

$

1.89

$

7.20

$

5.07

Net income - diluted

$

2.16

$

1.88

$

7.14

$

5.04

Weighted average shares - basic

16,292,312

16,300,720

16,315,996

16,300,250

Weighted average shares - diluted

16,423,912

16,393,792

16,445,568

16,398,350

Cash dividends declared

$

1.03

$

1.02

$

3.29

$

3.26


PARK NATIONAL CORPORATION

Consolidated Balance Sheets

(in thousands, except share data)

September 30, 2021

December 31, 2020

Assets

Cash and due from banks

$

127,685

$

155,596

Money market instruments

749,710

214,878

Investment securities

1,609,303

1,124,806

Loans

6,908,417

7,177,785

Allowance for credit losses (l)

(88,129

)

(85,675

)

Loans, net

6,820,288

7,092,110

Bank premises and equipment, net

88,909

88,660

Goodwill and other intangible assets

167,477

168,855

Other real estate owned

813

1,431

Other assets

469,833

432,685

Total assets

$

10,034,018

$

9,279,021

Liabilities and Shareholders' Equity

Deposits:

Noninterest bearing

$

2,981,928

$

2,727,100

Interest bearing

5,382,457

4,845,258

Total deposits

8,364,385

7,572,358

Borrowings

424,078

562,504

Other liabilities

177,643

103,903

Total liabilities

$

8,966,106

$

8,238,765

Shareholders' Equity:

Preferred shares (200,000 shares authorized; no shares outstanding at September 30, 2021 and December 31, 2020)

$

$

Common shares (No par value; 20,000,000 shares authorized; 17,623,132 shares issued at September 30, 2021 and 17,623,163 shares issued at December 31, 2020)

459,953

460,687

Accumulated other comprehensive (loss) income, net of taxes

(7,810

)

5,571

Retained earnings

759,619

704,764

Treasury shares (1,416,955 shares at September 30, 2021 and 1,308,966 shares at December 31, 2020)

(143,850

)

(130,766

)

Total shareholders' equity

$

1,067,912

$

1,040,256

Total liabilities and shareholders' equity

$

10,034,018

$

9,279,021


PARK NATIONAL CORPORATION

Consolidated Average Balance Sheets

Three Months Ended

Nine Months Ended

September 30,

September 30,

(in thousands)

2021

2020

2021

2020

Assets

Cash and due from banks

$

130,716

$

121,973

$

136,728

$

129,436

Money market instruments

895,784

223,563

724,561

286,909

Investment securities

1,461,434

1,330,520

1,310,762

1,264,381

Loans

6,956,064

7,247,021

7,062,336

6,904,900

Allowance for credit losses (l)

(83,935

)

(74,718

)

(86,969

)

(64,942

)

Loans, net

6,872,129

7,172,303

6,975,367

6,839,958

Bank premises and equipment, net

89,718

83,609

89,909

79,557

Goodwill and other intangible assets

167,754

169,726

168,215

170,311

Other real estate owned

776

1,299

935

2,616

Other assets

452,405

454,689

446,980

443,327

Total assets

$

10,070,716

$

9,557,682

$

9,853,457

$

9,216,495

Liabilities and Shareholders' Equity

Deposits:

Noninterest bearing

$

2,953,605

$

2,565,417

$

2,896,126

$

2,306,355

Interest bearing

5,459,400

5,309,718

5,284,664

5,350,009

Total deposits

8,413,005

7,875,135

8,180,790

7,656,364

Borrowings

471,148

552,452

507,989

455,127

Other liabilities

108,098

109,856

103,612

104,763

Total liabilities

$

8,992,251

$

8,537,443

$

8,792,391

$

8,216,254

Shareholders' Equity:

Preferred shares

$

$

$

$

Common shares

458,988

457,571

459,213

457,953

Accumulated other comprehensive (loss) income, net of taxes

(2,022

)

15,400

(1,918

)

8,712

Retained earnings

755,435

679,519

734,715

665,808

Treasury shares

(133,936

)

(132,251

)

(130,944

)

(132,232

)

Total shareholders' equity

$

1,078,465

$

1,020,239

$

1,061,066

$

1,000,241

Total liabilities and shareholders' equity

$

10,070,716

$

9,557,682

$

9,853,457

$

9,216,495


PARK NATIONAL CORPORATION

Consolidated Statements of Income - Linked Quarters

2021

2021

2021

2020

2020

(in thousands, except per share data)

3rd QTR

2nd QTR

1st QTR

4th QTR

3rd QTR

Interest income:

Interest and fees on loans

$

78,127

$

81,176

$

78,737

$

85,268

$

82,617

Interest on:

Obligations of U.S. Government, its agencies and other securities - taxable

4,904

4,600

4,256

4,420

4,841

Obligations of states and political subdivisions - tax-exempt

2,029

2,032

2,037

2,040

2,045

Other interest income

360

186

143

72

63

Total interest income

85,420

87,994

85,173

91,800

89,566

Interest expense:

Interest on deposits:

Demand and savings deposits

435

401

386

490

803

Time deposits

1,011

1,285

1,584

1,893

2,662

Interest on borrowings

2,372

2,457

2,469

3,096

2,261

Total interest expense

3,818

4,143

4,439

5,479

5,726

Net interest income

81,602

83,851

80,734

86,321

83,840

Provision for (recovery of) credit losses (l)

1,972

(4,040

)

(4,855

)

(19,159

)

13,836

Net interest income after provision for (recovery of) credit losses

79,630

87,891

85,589

105,480

70,004

...