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February 7, 2012

Exhibit 99.1

Park National Corporation Reports Fourth Quarter

and Year End 2011 Financial Results

 

NEWARK, Ohio – Park National Corporation (NYSE Amex: PRK) (Park) today announced financial results for the three months (fourth quarter) and year ended December 31, 2011. The financial statements include the effect of a restatement of previous reported results due to a change in the timing for the recognition of losses at Park’s Florida-based subsidiary Vision Bank. Park also reported a historical high in net income for The Park National Bank, Park’s subsidiary that consists of 11 community banking divisions in Ohio.

On January 31, 2012, Park filed a Current Report on Form 8-K with the Securities and Exchange Commission describing Park’s plan to restate the results for the year ended December 31, 2010 and each quarterly period in 2011. The restatements included recognition of loan loss provisions and other real estate owned devaluations at Vision Bank in 2010 instead of 2011. The result was a reduction in 2010 net income of $16.1 million, or $1.06 per diluted common share, all affecting the fourth quarter of 2010. The reduction to 2010 net income is fully offset by an increase to net income during 2011.

Park previously announced net income for the year ended December 31, 2010 of $74.2 million, or $4.51 per diluted common share and net income for the nine months ended September 30, 2011 of $60.0 million, or $3.61 per diluted common share. All amounts discussed in the remainder of this news release represent the restated results for 2010 and 2011.

Park's net income was $84.7 million for the year ended December 31, 2011 (2011 year) and its net income was $58.1 million for the same period in 2010. Net income for the fourth quarter of 2011 was $13.2 million, compared to a loss of $3.4 million for the same period in 2010.

Net income per diluted common share for the 2011 year was $5.12, compared to $3.45 per diluted common share for the same period in 2010. Net income (loss) per diluted common share for the 2011 fourth quarter was $0.76, compared to $(0.32) per diluted common share in the fourth quarter of 2010.

Ohio Operational Results

Excluding Vision Bank, Park reported net income of $104.7 million for the 2011 year, compared to $103.5 million for the same period in 2010. This performance resulted in return on average assets of 1.62 percent and 1.58 percent for Park’s Ohio operations in 2011 and 2010, respectively. Additionally, Park's two Ohio-based subsidiaries, The Park National Bank and Guardian Financial Services Company, reported record annual net incomes of $106.9 million and $2.7 million, respectively, for 2011.

“Ohio’s results continue to be exceptional. Our successful community banks in Ohio represent the great majority of our organization, and we look forward to continuing our tradition of service excellence coupled with consistent performance in 2012,” said Park Chairman C. Daniel DeLawder. “The pending sale of the Vision Bank operations, which we expect to conclude in the first quarter of 2012, allows us to concentrate fully on our operations in Ohio and our powerful earnings engine as we move forward.”

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

Credit Quality

Park significantly reduced non-performing assets during 2011. At December 31, 2011, non-performing assets were $272.6 million, or 3.91 percent of total assets, compared to $334.6 million or 4.59 percent of total assets at December 31, 2010. Vision Bank reduced non-performing loans by approximately $70 million during 2011, accounting for most of this large decline.

Sale of Investment Securities

During 2011, Park realized a pre-tax gain of $28.8 million from the sale of approximately $581 million of investment securities. During 2010, Park realized a pre-tax gain of $11.9 million from the sale of approximately $448 million of investment securities.

Headquartered in Newark, Ohio, Park National Corporation has $7.0 billion in total assets (as of December 31, 2011). Park consists of 13 community bank divisions 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 & Savings Bank Division, United Bank Division, Second National Bank Division, Security National Bank Division, Unity National Bank Division, The Park National Bank of Southwest Ohio & Northern Kentucky Division and Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance). Park's other banking subsidiary is Vision Bank (headquartered in Panama City, Florida), and its Vision Bank Division (of Gulf Shores, Alabama). Park also includes Guardian Financial Services Company (d.b.a. Guardian Finance Company).

Media contacts: Bethany Lewis, 740.349.0421, blewis@parknationalbank.com or John Kozak, 740.349.3792

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: deterioration in the asset value of Park's loan portfolio may be worse than expected due to a number of factors, such as adverse changes in economic conditions that impair the ability of borrowers to repay their loans, the underlying value of the collateral could prove less valuable than assumed and cash flows may be worse than expected; Park's ability to sell OREO properties at prices as favorable as anticipated; Park's ability to execute its business plan successfully and within the expected timeframe; general economic and financial market conditions, and weakening in the economy, specifically the real estate market and credit market, either nationally or in the states in which Park and its subsidiaries do business, may be worse than expected which could decrease the demand for loan, deposit and other financial services and increase loan delinquencies and defaults; 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; changes in consumer spending, borrowing and saving habits; our liquidity requirements could be adversely affected by changes in our assets and liabilities; competitive factors among financial institutions increase significantly, including product and pricing pressures and our ability to attract, develop and retain qualified bank professionals; the nature, timing and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and its subsidiaries, including changes in laws and regulations concerning taxes, accounting, banking, securities and other aspects of the financial services industry, specifically the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), as well as future regulations which will be adopted by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, to implement the Dodd-Frank Act’s provisions; 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; the effect of fiscal and governmental policies of the United States federal government; adequacy of our risk management program; 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; demand for loans in the respective market areas served by Park and its subsidiaries; closing of the transactions with Home BancShares, Inc. and Centennial Bank contemplated by the Purchase and Assumption Agreement dated November 16, 2011, which is dependent on the receipt of regulatory and other approvals and the satisfaction of specified conditions for closing, the timing of which cannot be predicted at this point; and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the Securities and Exchange Commission 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, 2010 and in “Item 1A. Risk Factors” of Part II of Park’s Quarterly Report on Form 10-Q for the period ended September 30, 2011. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Park does not undertake, and specifically disclaims any obligation, to publicly release the result 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 is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

 

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

  

 

PARK NATIONAL CORPORATION

Financial Highlights

Three months ended December 31, 2011, September 30, 2011, and December 31, 2010

 

		2011								2010				Percent change vs.
(in thousands, except share and per share data)		4th QTR				3rd QTR				4th QTR				3Q '11				4Q '10
						(Restated)				(Restated)
INCOME STATEMENT:
Net interest income		$	66,279			$	67,620			$	68,498				-2.0	%			-3.2	%
Provision for loan losses			16,218				16,438				42,626				-1.3	%			-62.0	%
Other income			17,885				18,027				12,129				-0.8	%			47.5	%
Gain on sale of securities			3,367				3,465				45				-2.8	%			N.M
Total other expense			49,365				45,599				46,520				8.3	%			6.1	%
Income (loss) before income taxes		$	21,948			$	27,075			$	(8,474	)			-18.9	%			N.M
Federal income taxes			2,651				6,694				(5,053	)			-60.4	%			-152.5	%
State income taxes			6,088				-				-				N.M				N.M
Net income (loss)		$	13,209			$	20,381			$	(3,421	)			-35.2	%			N.M
Preferred stock dividends and accretion			1,464				1,464				1,452				0.0	%			0.8	%
Net income (loss) available to common shareholders		$	11,745			$	18,917			$	(4,873	)			-37.9	%			N.M
MARKET DATA:
Earnings (loss) per common share - basic (b)		$	0.76			$	1.23			$	(0.32	)			-38.2	%			N.M
Earnings (loss) per common share - diluted (b)			0.76				1.23				(0.32	)			-38.2	%			N.M
Cash dividends per common share			0.94				0.94				0.94				0.0	%			0.0	%
Common book value per common share at period end			41.99				42.67				41.07				-1.6	%			2.2	%
Stock price per common share at period end			65.06				52.88				72.67				23.0	%			-10.5	%
Market capitalization at period end			1,002,309				814,294				1,119,041				23.1	%			-10.4	%
Weighted average common shares - basic (a)			15,403,861				15,398,909				15,340,427				0.0	%			0.4	%
Weighted average common shares - diluted (a)			15,403,861				15,398,909				15,352,600				0.0	%			0.3	%
Common shares outstanding at period end			15,405,912				15,398,904				15,398,934				0.0	%			0.0	%
PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)			0.66	%			1.04	%			-0.28	%			-36.5	%			N.M
Return on average common equity (a)(b)			7.10	%			11.51	%			-2.92	%			-38.3	%			N.M
Yield on loans			5.59	%			5.59	%			5.73	%			0.0	%			-2.4	%
Yield on investments			3.23	%			3.40	%			3.87	%			-5.0	%			-16.5	%
Yield on earning assets			4.93	%			4.95	%			5.23	%			-0.4	%			-5.7	%
Cost of interest bearing deposits			0.60	%			0.63	%			0.82	%			-4.8	%			-26.8	%
Cost of borrowings			2.68	%			2.69	%			2.76	%			-0.4	%			-2.9	%
Cost of paying liabilities			1.07	%			1.07	%			1.21	%			0.0	%			-11.6	%
Net interest margin			4.08	%			4.09	%			4.25	%			-0.2	%			-4.0	%
Efficiency ratio (g)			58.34	%			52.95	%			57.31	%			10.2	%			1.8	%
OTHER RATIOS (NON GAAP):
Annualized return on average tangible assets (a)(b)(e)			0.66	%			1.05	%			-0.28	%			-37.1	%			N.M
Annualized return on average tangible common equity (a)(b)(c)			8.03	%			13.05	%			-3.31	%			-38.5	%			N.M
Tangible common book value per common share (d)		$	37.13			$	37.71			$	35.98				-1.5	%			3.2	%

 

 

PARK NATIONAL CORPORATION

Financial Highlights (continued)

Three months ended December 31, 2011, September 30, 2011, and December 31, 2010

 

														Percent change vs.
		December 31, 2011				September 30, 2011				December 31, 2010				3Q '11				4Q '10
							(Restated)				(Restated)
BALANCE SHEET:
Investment securities		$	1,708,473			$	1,708,631			$	2,039,791				0.0	%			-16.2	%
Loans			4,317,099				4,680,575				4,732,685				-7.8	%			-8.8	%
Allowance for loan losses			64,444				107,310				143,576				-39.9	%			-55.1	%
Goodwill and other intangibles			74,843				76,370				78,377				-2.0	%			-4.5	%
Other real estate owned			42,272				46,911				41,709				-9.9	%			1.3	%
Assets held for sale			379,683				0				0				N.M				N.M
Total assets			6,974,845				7,095,097				7,282,261				-1.7	%			-4.2	%
Total deposits			4,465,114				5,089,187				5,095,420				-12.3	%			-12.4	%
Borrowings			1,162,026				1,142,043				1,375,652				1.7	%			-15.5	%
Liabilities held for sale			536,186				0				0				N.M				N.M
Stockholders' equity			744,964				755,052				729,708				-1.3	%			2.1	%
Common equity			646,818				657,120				632,418				-1.6	%			2.3	%
Tangible common equity (d)			571,975				580,750				554,041				-1.5	%			3.2	%
Nonperforming loans			224,575				229,814				289,268				-2.3	%			-22.4	%
Nonperforming assets			266,847				276,725				330,977				-3.6	%			-19.4	%
Past due 90 day loans and still accruing			3,489				2,162				3,590				61.4	%			-2.8	%
ASSET QUALITY RATIOS:
Loans as a % of period end assets			61.90	%			65.97	%			64.99	%			-6.2	%			-4.8	%
Nonperforming loans as a % of period end loans			5.20	%			4.91	%			6.11	%			5.9	%			-14.9	%
Past due 90 day loans as a % of period end loans			0.08	%			0.05	%			0.08	%			60.0	%			0.0	%
Nonperforming assets / Period end loans + OREO			6.12	%			5.85	%			6.93	%			4.6	%			-11.7	%
Allowance for loan losses as a % of period end loans			1.49	%			2.29	%			3.03	%			-34.9	%			-50.8	%
Net loan charge-offs		$	45,764			$	29,302			$	16,456				56.2	%			178.1	%
Annualized net loan charge-offs as a % of average loans (a)			3.88	%			2.48	%			1.39	%			56.5	%			179.1	%
CAPITAL & LIQUIDITY:
Total equity / Period end assets			10.68	%			10.64	%			10.02	%			0.4	%			6.6	%
Common equity / Period end assets			9.27	%			9.26	%			8.68	%			0.1	%			6.8	%
Tangible common equity (d) / Tangible assets (f)			8.29	%			8.27	%			7.69	%			0.2	%			7.8	%
Average equity / Average assets (a)			10.63	%			10.42	%			10.84	%			2.0	%			-1.9	%
Average equity / Average loans (a)			16.13	%			15.98	%			16.19	%			0.9	%			-0.4	%
Average loans / Average deposits (a)			91.96	%			90.32	%			91.68	%			1.8	%			0.3	%

 

 

PARK NATIONAL CORPORATION

Financial Highlights (continued)

Twelve months ended December 31, 2011 and 2010

 

		December 31,				December 31,				Percent
(in thousands, except share and per share data)		2011				2010				change
							(Restated)
INCOME STATEMENT:
Net interest income		$	273,234			$	274,044				-0.3	%
Provision for loan losses			59,272				87,080				-31.9	%
Other income			66,081				63,016				4.9	%
Gain on sale of securities			28,829				11,864				143.0	%
Total other expense			188,317				187,107				0.6	%
Income before income taxes		$	120,555			$	74,737				61.3	%
Federal income taxes		$	29,727			$	17,797				67.0	%
State income taxes			6,088				(1,161	)			N.M
Net income		$	84,740			$	58,101				45.8	%
Preferred stock dividends and accretion			5,856				5,807				0.8	%
Net income available to common shareholders		$	78,884			$	52,294				50.8	%
MARKET DATA:
Earnings per commmon share - basic (b)		$	5.12			$	3.45				48.4	%
Earnings per common share - diluted (b)		$	5.12			$	3.45				48.4	%
Cash dividends per common share			3.76				3.76				0.0	%
Weighted average common shares - basic (a)			15,400,155				15,152,692				1.6	%
Weighted average common shares - diluted (a)			15,401,446				15,155,735				1.6	%
PERFORMANCE RATIOS:
Return on average assets (a)(b)			1.09	%			0.74	%			47.3	%
Return on average common equity (a)(b)			12.21	%			8.05	%			51.7	%
Yield on loans			5.61	%			5.80	%			-3.3	%
Yield on investments			3.61	%			4.25	%			-15.1	%
Yield on earning assets			5.03	%			5.36	%			-6.2	%
Cost of interest bearing deposits			0.66	%			0.98	%			-32.7	%
Cost of borrowings			2.63	%			2.88	%			-8.7	%
Cost of paying liabilities			1.09	%			1.35	%			-19.3	%
Net interest margin			4.14	%			4.26	%			-2.8	%
Efficiency ratio (g)			55.18	%			55.18	%			0.0	%
ASSET QUALITY RATIOS:
Net loan charge-offs		$	125,084			$	60,222				107.7	%
Net loan charge-offs as a % of average loans (a)			2.65	%			1.30	%			103.8	%
CAPITAL AND LIQUIDITY:
Average equity / Average assets (a)			10.32	%			10.60	%			-2.6	%
Average equity / Average loans (a)			15.78	%			16.08	%			-1.9	%
Average loans / Average deposits (a)			90.78	%			89.59	%			1.3	%
OTHER RATIOS (NON GAAP):
Return on average tangible assets (a)(b)(e)			1.11	%			0.75	%			48.0	%
Return on average tangible common equity (a)(b)(c)			13.86	%			9.18	%			51.0	%

 

N.M. - Not meaningful 

 

 

PARK NATIONAL CORPORATION

Financial Highlights (continued)

 

a) Averages are for the quarters ended December 31, 2011, September 30, 2011, and December 31, 2010, and the twelve-month periods ended December 31, 2011 and December 31, 2010.

(b) Reported measure uses net income (loss) available to common shareholders.

(c) Net income (loss) available to common shareholders for each period divided by average tangible common equity during the period.  Average tangible common equity equals average stockholders' equity during the applicable period less (i) average preferred stock during the applicable period and (ii) average goodwill and other intangibles during the applicable period.

 

RECONCILIATION OF AVERAGE STOCKHOLDERS' EQUITY TO AVERAGE TANGIBLE COMMON EQUITY:

 

		THREE MONTHS ENDED												TWELVE MONTHS ENDED
		December 31, 2011				September 30, 2011				December 31, 2010				December 31, 2011				December 31, 2010
AVERAGE STOCKHOLDERS' EQUITY		$	754,196			$	749,609			$	760,381			$	743,873			$	746,510
Less:  Average preferred stock			98,023				97,808				97,174				97,704				96,873
Average goodwill and other intangibles			76,041				76,734				78,823				77,055				80,072
AVERAGE TANGIBLE COMMON EQUITY		$	580,132			$	575,067			$	584,384			$	569,114			$	569,565

 

(d) Tangible common equity equals ending stockholders' equity less preferred stock and goodwill and other intangibles, in each case at the end of the period.

 

RECONCILIATION OF STOCKHOLDERS' EQUITY TO TANGIBLE COMMON EQUITY:

 

		December 31, 2011				September 30, 2011				December 31, 2010
STOCKHOLDERS' EQUITY		$	744,964			$	755,052			$	729,708
Less: Preferred stock			98,146				97,932				97,290
Goodwill and other intangibles			74,843				76,370				78,377
TANGIBLE COMMON EQUITY		$	571,975			$	580,750			$	554,041

 

(e) Net income (loss) available to common shareholders for each period divided by average tangible assets during the period. Average tangible assets equals average assets less average goodwill and other intangibles.

 

RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS:

 

		THREE MONTHS ENDED												TWELVE MONTHS ENDED
		December 31, 2011				September 30, 2011				December 31, 2010				December 31, 2011				December 31, 2010
AVERAGE ASSETS		$	7,092,465			$	7,190,842			$	7,013,677			$	7,206,171			$	7,042,705
Less:  Average goodwill and other intangibles			76,041				76,734				78,823				77,055				80,072
AVERAGE TANGIBLE ASSETS		$	7,016,424			$	7,114,108			$	6,934,854			$	7,129,116			$	6,962,633

 

(f) Tangible common equity divided by tangible assets. Tangible assets equals total assets less goodwill and other intangibles.

 

RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:

 

		December 31, 2011				September 30, 2011				December 31, 2010
TOTAL ASSETS		$	6,974,845			$	7,095,097			$	7,282,261
Less: Goodwill and other intangibles			74,843				76,370				78,377
TANGIBLE ASSETS		$	6,900,002			$	7,018,727			$	7,203,884

 

PARK NATIONAL CORPORATION

Financial Highlights (continued)

 

(g) Efficiency ratio is calculated by taking total other expense divided 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.

 

RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME

 

		THREE MONTHS ENDED												TWELVE MONTHS ENDED
		December 31, 2011				September 30, 2011				December 31, 2010				December 31, 2011				December 31, 2010
Interest income		$	80,231			$	82,065			$	84,391			$	331,880			$	345,517
Fully taxable equivalent adjustment			456				474				540				1,938				2,047
Fully taxable equivalent interest income		$	80,687			$	82,539			$	84,931			$	333,818			$	347,564
Interest expense			13,952				14,445				15,893				58,646				71,473
Fully taxable equivalent net interest income		$	66,735			$	68,094			$	69,038			$	275,172			$	276,091

 

 

PARK NATIONAL CORPORATION

Consolidated Statements of Income

 

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
(in thousands, except share and per share data)		2011				2010				2011				2010
						(Restated)								(Restated)
Interest income:
Interest and fees on loans		$	65,497			$	67,405			$	262,458			$	267,692
Interest on:
Obligations of U.S. Government, its agencies
and other securities			14,571				16,768				68,873				76,839
Obligations of states and political subdivisions			61				173				371				786
Other interest income			102				45				178				200
Total interest income			80,231				84,391				331,880				345,517
Interest expense:
Interest on deposits:
Demand and savings deposits			894				1,133				3,812				5,753
Time deposits			5,247				7,512				23,842				36,212
Interest on borrowings			7,811				7,248				30,992				29,508
Total interest expense			13,952				15,893				58,646				71,473
Net interest income			66,279				68,498				273,234				274,044
Provision for loan losses			16,218				42,627				59,272				87,080
Net interest income after provision for loan losses			50,061				25,871				213,962				186,964
Other income			17,885				12,129				66,081				63,016
Gain on sale of securities			3,367				45				28,829				11,864
Other expense:
Salaries and employee benefits			25,952				24,631				102,068				98,315
Occupancy expense			2,866				2,760				11,295				11,510
Furniture and equipment expense			2,643				2,615				10,773				10,435
Other expense			17,904				16,514				64,181				66,847
Total other expense			49,365				46,520				188,317				187,107
Income (loss) before income taxes			21,948				(8,475	)			120,555				74,737
Income taxes			8,739				(5,053	)			35,815				16,636
Net income (loss)		$	13,209			$	(3,422	)		$	84,740			$	58,101
Preferred stock dividends and accretion			1,464				1,452				5,856				5,807
Net income (loss) available to common shareholders		$	11,745			$	(4,874	)		$	78,884			$	52,294
Per Common Share:
Net income (loss) - basic		$	0.76			$	(0.32	)		$	5.12			$	3.45
Net income (loss) - diluted		$	0.76			$	(0.32	)		$	5.12			$	3.45
Weighted average shares - basic			15,403,861				15,340,427				15,400,155				15,152,692
Weighted average shares - diluted			15,403,861				15,352,600				15,401,446				15,155,735

 

 

PARK NATIONAL CORPORATION

Consolidated Balance Sheets

 

(in thousands, except share data)		December 31, 2011				December 31, 2010
						(Restated)
Assets
Cash and due from banks		$	140,549			$	109,058
Money market instruments			19,716				24,722
Investment securities			1,708,473				2,039,791
Loans			4,317,099				4,732,685
Allowance for loan losses			64,444				143,576
Loans, net			4,252,655				4,589,109
Bank premises and equipment, net			53,741				69,567
Goodwill and other intangibles			74,843				78,377
Other real estate owned			42,272				41,709
Other assets			302,913				329,928
Assets held for sale			379,683				-
Total assets		$	6,974,845			$	7,282,261
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing		$	995,733			$	937,719
Interest bearing			3,469,381				4,157,701
Total deposits			4,465,114				5,095,420
Borrowings			1,162,026				1,375,652
Other liabilities			66,555				81,481
Liabilities held for sale			536,186				-
Total liabilities		$	6,229,881			$	6,552,553
Stockholders' Equity:
Preferred Stock (200,000 shares authorized in 2011 and 2010;
100,000 shares issued in 2011 and 2010)		$	98,146			$	97,290
Common stock (No par value; 20,000,000 shares authorized
in 2011 and 2010;  16,151,021 shares issued at December 31, 2011,
and 16,151,062 at December 31, 2010)			301,202				301,204
Common stock warrants			4,297				4,473
Accumulated other comprehensive loss, net of taxes			(8,831	)			(1,868	)
Retained earnings			427,157				406,342
Treasury stock (745,109 shares at December 31, 2011,
and 752,128 shares at December 31, 2010)			(77,007	)			(77,733	)
Total stockholders' equity		$	744,964			$	729,708
Total liabilities and stockholders' equity		$	6,974,845			$	7,282,261

 

 

PARK NATIONAL CORPORATION

Consolidated Average Balance Sheets

 

		Three Months Ended								Twelve Months Ended
		December 30,								December 30,
(in thousands)		2011				2010				2011				2010
						(Restated)								(Restated)
Assets
Cash and due from banks		$	126,234			$	119,982			$	124,649			$	116,961
Money market instruments			163,804				84,379				78,593				93,009
Investment securities			1,668,827				1,707,321				1,868,343				1,792,786
Loans			4,676,229				4,695,257				4,713,511				4,642,478
Allowance for loan losses			98,887				118,342				128,512				119,700
Loans, net			4,577,342				4,576,915				4,584,999				4,522,778
Bank premises and equipment, net			69,054				70,299				69,507				69,839
Goodwill and other intangibles			76,041				78,823				77,055				80,072
Other real estate owned			43,226				53,395				44,815				47,400
Other assets			367,937				322,563				358,210				319,860
Total assets		$	7,092,465			$	7,013,677			$	7,206,171			$	7,042,705
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing		$	1,047,491			$	959,685			$	999,085				907,514
Interest bearing			4,037,485				4,161,547				4,193,404				4,274,501
Total deposits			5,084,976				5,121,232				5,192,489				5,182,015
Borrowings			1,155,566				1,041,920				1,179,458				1,026,295
Other liabilities			97,727				90,144				90,351				87,885
Total liabilities		$	6,338,269			$	6,253,296			$	6,462,298			$	6,296,195
Stockholders' Equity:
Preferred stock		$	98,023			$	97,174			$	97,704			$	96,873
Common stock			301,203				301,317				301,203				301,244
Common stock warrants			4,382				4,405				4,429				4,822
Accumulated other comprehensive income (loss), net of taxes			(3,127	)			11,169				(4,201	)			15,478
Retained earnings			430,935				430,403				422,341				428,978
Treasury stock			(77,220	)			(84,087	)			(77,603	)			(100,885	)
Total stockholders' equity		$	754,196			$	760,381			$	743,873			$	746,510
Total liabilities and stockholders' equity		$	7,092,465			$	7,013,677			$	7,206,171			$	7,042,705

 

 

PARK NATIONAL CORPORATION

Consolidated Statements of Income - Linked Quarters

 

		2011				2011				2011				2011				2010
(in thousands, except per share data)		4th QTR				3rd QTR				2nd QTR				1st QTR				4th QTR
							(Restated)				(Restated)				(Restated)				(Restated)
Interest income:
Interest and fees on loans		$	65,497			$	65,645			$	65,862			$	65,454			$	67,405
Interest on:
Obligations of U.S. Government, its agencies
and other securities			14,571				16,289				18,960				19,053				16,768
Obligations of states and political subdivisions			61				69				92				149				173
Other interest income			102				62				8				6				45
Total interest income			80,231				82,065				84,922				84,662				84,391
Interest expense:
Interest on deposits:
Demand and savings deposits			894				976				951				991				1,133
Time deposits			5,247				5,661				6,200				6,734				7,512
Interest on borrowings			7,811				7,808				7,749				7,624				7,248
Total interest expense			13,952				14,445				14,900				15,349				15,893
Net interest income			66,279				67,620				70,022				69,313				68,498
Provision for loan losses			16,218				16,438				12,516				14,100				42,627
Net interest income after provision for loan losses			50,061				51,182				57,506				55,213				25,871
Other income			17,885				18,027				15,139				15,030				12,129
Gain on sale of securities			3,367				3,465				15,362				6,635				45
Other expense:
Salaries and employee benefits			25,952				25,799				25,253				25,064				24,631
Occupancy expense			2,866				2,665				2,764				3,000				2,760
Furniture and equipment expense			2,643				2,688				2,785				2,657				2,615
Other expense			17,904				14,447				16,205				15,625				16,514
Total other expense			49,365				45,599				47,007				46,346				46,520
Income (loss) before income taxes			21,948				27,075				41,000				30,532				(8,475	)
Income taxes			8,739				6,694				12,046				8,336				(5,053	)
Net income (loss)		$	13,209			$	20,381			$	28,954			$	22,196			$	(3,422	)
Preferred stock dividends and accretion			1,464				1,464				1,464				1,464				1,452
Net income (loss) available to common shareholders		$	11,745			$	18,917			$	27,490			$	20,732			$	(4,874	)
Per Common Share:
Net income (loss) - basic		$	0.76			$	1.23			$	1.79			$	1.35			$	(0.32	)
Net income (loss) - diluted		$	0.76			$	1.23			$	1.79			$	1.35			$	(0.32	)

 

 

PARK NATIONAL CORPORATION

Detail of other income and other expense - Linked Quarters

 

		2011				2011				2011				2011				2010
(in thousands)		4th QTR				3rd QTR				2nd QTR				1st QTR				4th QTR
						(Restated)				(Restated)				(Restated)				(Restated)
Other income:
Income from fiduciary activities		$	3,699			$	3,615			$	3,929			$	3,722			$	3,609
Service charges on deposits			4,643				4,894				4,525				4,245				4,853
Other service income			2,484				3,087				2,734				2,301				3,449
Checkcard fee income			3,115				3,154				3,251				2,976				3,068
Bank owned life insurance income			1,403				1,229				1,228				1,229				1,195
ATM fees			641				726				682				654				655
OREO devaluations			(1,742	)			(588	)			(3,354	)			(2,535	)			(8,587	)
Other			3,642				1,910				2,144				2,438				3,887
Total other income		$	17,885			$	18,027			$	15,139			$	15,030			$	12,129
Other expense:
Salaries and employee benefits		$	25,952			$	25,799			$	25,253			$	25,064			$	24,631
Net occupancy expense			2,866				2,665				2,764				3,000				2,760
Furniture and equipment expense			2,643				2,688				2,785				2,657				2,615
Data processing fees			1,393				1,184				1,135				1,253				1,339
Professional fees and services			5,920				5,005				5,320				4,874				5,341
Amortization of intangibles			1,528				669				669				669				822
Marketing			852				764				728				623				968
Insurance			1,526				681				2,345				2,269				2,136
Communication			1,544				1,475				1,485				1,556				1,536
Other			5,141				4,669				4,523				4,381				4,372
Total other expense		$	49,365			$	45,599			$	47,007			$	46,346			$	46,520

 

 

PARK NATIONAL CORPORATION

Asset Quality Information

 

		Year ended December 31,
(in thousands, except ratios)		2011				2010				2009				2008
							(Restated)
Allowance for loan losses:
Allowance for loan losses, beginning of period		$	143,575			$	116,717			$	100,088			$	87,102
Transfer of loans at fair value			(219	)
Transfer of allowance to held for sale			(13,100	)
Charge-offs			133,882				66,314				59,022				62,916
Recoveries			8,798				6,092				6,830				5,415
Net charge-offs			125,084				60,222				52,192				57,501
Provision for loan losses			59,272				87,080				68,821				70,487
Allowance for loan losses, end of period		$	64,444			$	143,575			$	116,717			$	100,088
General reserve trends:
Allowance for loan losses, end of period		$	64,444			$	143,575			$	116,717			$	100,088
Specific reserves			11,935				66,904				36,721				8,875
General reserves		$	52,509			$	76,671			$	79,996			$	91,213
Total loans		$	4,317,099			$	4,732,685			$	4,640,432			$	4,491,337
Impaired commercial loans			187,938				250,933				201,143				141,343
Non-impaired loans		$	4,129,161			$	4,481,752			$	4,439,289			$	4,349,994
Asset Quality Ratios:
Net charge-offs as a % of average loans			2.65	%			1.30	%			1.14	%			1.32	%
Allowance for loan losses as a % of period end loans			1.49	%			3.03	%			2.52	%			2.23	%
General reserves as a % of non-impaired loans			1.27	%			1.71	%			1.80	%			2.10	%
Nonperforming Assets - Park National Corporation:
Nonaccrual loans		$	190,652			$	289,268			$	233,544			$	159,512
Accruing renegotiated loans			33,923				-				142				2,845
Loans past due 90 days or more			3,489				3,590				14,773				5,421
Total nonperforming loans		$	228,064			$	292,858			$	248,459			$	167,778
Other real estate owned - Park National Bank			13,240				8,385				6,037				6,149
Other real estate owned - Parent Company			29,032				-				-				-
Other real estate owned - Vision Bank			-				33,324				35,203				19,699
Total nonperforming assets		$	270,336			$	334,567			$	289,699			$	193,626
Percentage of nonperforming loans to period end loans			5.28	%			6.19	%			5.35	%			3.74	%
Percentage of nonperforming assets to period end loans			6.26	%			7.07	%			6.24	%			4.31	%
Percentage of nonperforming assets to period end assets			3.88	%			4.59	%			4.11	%			2.74	%

  

 

PARK NATIONAL CORPORATION

Asset Quality Information

 

 

		Year ended December 31,
(in thousands, except ratios)		2011				2010				2009				2008
							(Restated)
Nonperforming Assets - Ohio-based operations:
Nonaccrual loans		$	96,113			$	117,815			$	85,197			$	68,306
Accruing renegotiated loans			26,342				-				142				-
Loans past due 90 days or more			3,367				3,226				3,496				4,777
Total nonperforming loans		$	125,822			$	121,041			$	88,835			$	73,083
Other real estate owned - Park National Bank			13,240				8,385				6,037				6,149
Other real estate owned - Parent Company			29,032				-				-				-
Total nonperforming assets		$	168,094			$	129,426			$	94,872			$	79,232
Percentage of nonperforming loans to period end loans			3.00	%			2.96	%			2.24	%			1.92	%
Percentage of nonperforming assets to period end loans			4.01	%			3.16	%			2.39	%			2.08	%
Percentage of nonperforming assets to period end assets			2.64	%			1.99	%			1.54	%			1.29	%
Nonperforming Assets - Vision Bank (retained portfolio):
Nonaccrual loans		$	94,539			$	171,453			$	148,347			$	91,206
Accruing renegotiated loans			3,157				-				-				2,845
Loans past due 90 days or more			122				364				11,277				644
Total nonperforming loans		$	97,818			$	171,817			$	159,624			$	94,695
Other real estate owned			-				33,324				35,203				19,699
Total nonperforming assets		$	97,818			$	205,141			$	194,827			$	114,394
Percentage of nonperforming loans to period end loans			82.53	%			26.82	%			23.58	%			13.71	%
Percentage of nonperforming assets to period end loans			82.53	%			32.02	%			28.78	%			16.57	%
Percentage of nonperforming assets to period end assets			37.33	%			25.90	%			21.70	%			12.47	%
New nonaccrual loan information:
Nonaccrual loans, beginning of period		$	289,268			$	233,544			$	159,512			$	101,128
New nonaccrual loans - Ohio-based operations			78,316				85,081				57,641				58,161
New nonaccrual loans - Vision Bank			41,388				90,094				126,540				83,588
Resolved nonaccrual loans			218,320				119,451				110,149				83,365
Nonaccrual loans, end of period		$	190,652			$	289,268			$	233,544			$	159,512
Impaired Commercial Loan Portfolio Information (period end):
Unpaid principal balance		$	291,771			$	304,534			$	245,092			$	171,310
Prior charge-offs			103,833				53,601				43,949				29,967
Remaining principal balance			187,938				250,933				201,143				141,343
Specific reserves			11,935				66,904				36,721				8,875
Book value, after specific reserve		$	176,003			$	184,029			$	164,422			$	132,468