April 17, 2012

Exhibit 99.1

 

Park National Corporation Reports First Quarter 2012

Financial Results and Continues $0.94 Quarterly Dividend

 

NEWARK, Ohio – Park National Corporation (Park) (NYSE Amex: PRK) today reported financial results for the three months ended March 31, 2012 (first quarter). Also, Park's Board of Directors approved a $0.94 per common share quarterly cash dividend, payable on June 8, 2012 to common shareholders of record as of May 23, 2012.

 

Net income for the first quarter of 2012 was $31.5 million, a 41.8 percent increase from the $22.2 million in net income for the same period in 2011. Net income per diluted common share was $1.95, a 44.4 percent increase from the $1.35 net income per diluted common share reported in the first quarter of 2011.

 

Net income for the period ended March 31, 2012 included a pre-tax gain of $22.2 million from the sale of substantially all of the performing loans, operating assets and the liabilities of Vision Bank, which closed on February 16, 2012. Net income for the period ended March 31, 2011 included a pre-tax gain of $6.6 million from the sale of investment securities.

 

“We were pleased to complete the sale of Vision Bank assets during the first quarter of 2012. The continued success of our community banks and specialty finance companies in Ohio will be far more apparent without the negative impact we have endured over the past few years,” said Park Chairman C. Daniel DeLawder. “We look forward to having more flexibility to take advantage of opportunities that may come our way as 2012 unfolds.”

 

Park Completes Sale of Vision Bank

 

On February 16, 2012, Park completed the purchase and assumption transaction between Park, Home BancShares, Inc. (Home) (NASDAQ: HOMB) and their respective subsidiary banks. Home subsidiary Centennial Bank purchased certain assets and liabilities of Vision Bank for a purchase price of $27.9 million. Centennial purchased performing loans with an unpaid principal balance of approximately $354 million, assumed ownership or operation of all 17 Vision Bank office locations, and assumed deposit liabilities of approximately $520 million. Certain other miscellaneous assets and liabilities were also purchased by Centennial. The remaining assets and liabilities were retained by Vision, which Park subsequently merged with and into a non-bank subsidiary of Park, SE Property Holdings, LLC.

 

As a result of the transaction, Park recorded a pre-tax gain of $22.2 million (after anticipated expenses directly related to the transaction). The transaction also decreased Park’s total assets during the first quarter of 2012. As of March 31, 2012, Park had total assets of $6.8 billion, compared to $7.0 billion at December 31, 2011 and $7.3 billion at March 31, 2011.

 

Park National Bank Results

 

Park’s community-banking subsidiary in Ohio, The Park National Bank, reported net income of $21.6 million for the first quarter of 2012, compared to net income of $29.0 million ($24.7 million, excluding the gain on sale of securities) for the same period in 2011. The Park National Bank had total assets of $6.6 billion at March 31, 2012, compared to $6.5 billion at March 31, 2011. This performance resulted in return on assets of 1.32 percent and 1.82 percent (1.53 percent, excluding the gain on sale of securities) for The Park National Bank in the first quarter of 2012 and 2011, respectively.

 

Headquartered in Newark, Ohio, Park National Corporation has $6.8 billion in total assets (as of March 31, 2012). Park consists of 11 community bank divisions, a non-bank subsidiary and two specialty finance companies. Park's Ohio-based banking operations are conducted through Park subsidiary The Park National Bank and its divisions which include Fairfield National Bank Division, Richland Bank Division, Century National Bank Division, First-Knox National Bank Division, Farmers & 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 also includes Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

  

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

 

 

Complete financial tables are listed below…

  

PARK NATIONAL CORPORATION

Financial Highlights

Three months ended March 31, 2012, December 31, 2011, and March 31, 2011

 

		2012				2011				2011				Percent change vs.
(in thousands, except share and per share data)		1st QTR				4th QTR				1st QTR				4Q '11				1Q '11
INCOME STATEMENT:
Net interest income		$	61,728			$	66,279			$	69,313				-6.9	%			-10.9	%
Provision for loan losses			9,000				20,218				14,100				-55.5	%			-36.2	%
Gain on sale of Vision Bank			22,167				-				-				N.M.				N.M.
Other income			17,453				17,885				15,030				-2.4	%			16.1	%
Gain on sale of securities			-				3,367				6,635				-100.0	%			N.M.
Total other expense			47,808				49,365				46,346				-3.2	%			3.2	%
Income before income taxes		$	44,540			$	17,948			$	30,532				148.2	%			45.9	%
Federal income taxes			13,065				1,251				8,336				944.4	%			56.7	%
State income taxes			-				6,088				-				N.M.				N.M.
Net income		$	31,475			$	10,609			$	22,196				196.7	%			41.8	%
Preferred stock dividends and accretion			1,477				1,464				1,464				0.9	%			0.9	%
Net income available to common shareholders		$	29,998			$	9,145			$	20,732				228.0	%			44.7	%
MARKET DATA:
Earnings per common share - basic (b)		$	1.95			$	0.59			$	1.35				230.5	%			44.4	%
Earnings per common share - diluted (b)			1.95				0.59				1.35				230.5	%			44.4	%
Cash dividends per common share			0.94				0.94				0.94				0.0	%			0.0	%
Common book value per common share at period end			42.71				41.82				41.07				2.1	%			4.0	%
Stock price per common share at period end			69.17				65.06				66.82				6.3	%			3.5	%
Market capitalization at period end			1,065,626				1,002,309				1,028,956				6.3	%			3.6	%
Weighted average common shares - basic (a)			15,405,910				15,403,861				15,398,930				0.0	%			0.0	%
Weighted average common shares - diluted (a)			15,417,745				15,403,861				15,403,420				0.1	%			0.1	%
Common shares outstanding at period end			15,405,905				15,405,912				15,398,923				0.0	%			0.0	%
PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)			1.75	%			0.51	%			1.16	%			243.1	%			50.9	%
Return on average common equity (a)(b)			18.50	%			5.53	%			13.25	%			234.5	%			39.6	%
Yield on loans			5.52	%			5.59	%			5.63	%			-1.3	%			-2.0	%
Yield on investments			3.34	%			3.53	%			4.01	%			-5.4	%			-16.7	%
Yield on money markets			0.25	%			0.25	%			0.10	%			0.0	%			150.0	%
Yield on earning assets			4.81	%			4.93	%			5.14	%			-2.4	%			-6.4	%
Cost of interest bearing deposits			0.56	%			0.60	%			0.74	%			-6.7	%			-24.3	%
Cost of borrowings			2.73	%			2.68	%			2.50	%			1.9	%			9.2	%
Cost of paying liabilities			1.05	%			1.07	%			1.14	%			-1.9	%			-7.9	%
Net interest margin			3.97	%			4.08	%			4.21	%			-2.7	%			-5.7	%
Efficiency ratio (g)			60.05	%			58.34	%			54.61	%			2.9	%			10.0	%
OTHER RATIOS (NON GAAP):
Annualized return on average tangible assets (a)(b)(e)			1.77	%			0.52	%			1.17	%			240.4	%			51.3	%
Annualized return on average tangible common equity (a)(b)(c)			20.85	%			6.25	%			15.11	%			233.6	%			38.0	%
Tangible common book value per common share (d)		$	37.97			$	36.96			$	36.02				2.7	%			5.4	%

 

 

PARK NATIONAL CORPORATION

Financial Highlights (continued)

Three months ended March 31, 2012, December 31, 2011, and March 31, 2011

 

														Percent change vs.
BALANCE SHEET:		March 31, 2012				December 31, 2011				March 31, 2011				4Q '11				1Q '11
Investment securities		$	1,857,335			$	1,708,473			$	2,045,656				8.7	%			-9.2	%
Loans			4,324,383				4,317,099				4,750,975				0.2	%			-9.0	%
Allowance for loan losses			59,758				68,444				148,530				-12.7	%			-59.8	%
Goodwill and other intangibles			73,088				74,843				77,708				-2.3	%			-5.9	%
Other real estate owned			41,965				42,272				45,268				-0.7	%			-7.3	%
Assets HFS			-				382,462				-				N.M.				N.M.
Total assets			6,776,851				6,972,245				7,323,105				-2.8	%			-7.5	%
Total deposits			4,817,388				4,465,114				5,314,678				7.9	%			-9.4	%
Borrowings			1,133,738				1,162,026				1,178,678				-2.4	%			-3.8	%
Liabilities HFS			-				536,186				-				N.M.				N.M.
Stockholders' equity			756,429				742,364				729,940				1.9	%			3.6	%
Common equity			658,057				644,218				632,436				2.1	%			4.1	%
Tangible common equity (d)			584,969				569,375				554,728				2.7	%			5.5	%
Nonperforming loans			217,663				224,575				279,079				-3.1	%			-22.0	%
Nonperforming assets			259,628				266,847				324,347				-2.7	%			-20.0	%
Past due 90 day loans and still accruing			2,281				3,489				2,228				-34.6	%			2.4	%
ASSET QUALITY RATIOS:
Loans as a % of period end assets			63.81	%			61.92	%			64.88	%			3.1	%			-1.6	%
Nonperforming loans as a % of period end loans			5.03	%			5.20	%			5.87	%			-3.3	%			-14.3	%
Past due 90 day loans as a % of period end loans			0.05	%			0.08	%			0.05	%			-37.5	%			0.0	%
Nonperforming assets / Period end loans + OREO			5.95	%			6.12	%			6.76	%			-2.8	%			-12.0	%
Allowance for loan losses as a % of period end loans			1.38	%			1.58	%			3.13	%			-12.7	%			-55.9	%
Net loan charge-offs		$	17,024			$	45,764			$	9,146				-62.8	%			86.1	%
Annualized net loan charge-offs as a % of average loans (a)			1.53	%			3.88	%			0.78	%			-60.6	%			96.2	%
CAPITAL & LIQUIDITY:
Total equity / Period end assets			11.16	%			10.65	%			9.97	%			4.8	%			11.9	%
Common equity / Period end assets			9.71	%			9.24	%			8.64	%			5.1	%			12.4	%
Tangible common equity (d) / Tangible assets (f)			8.73	%			8.25	%			7.66	%			5.8	%			14.0	%
Average equity / Average assets (a)			10.88	%			10.63	%			10.08	%			2.4	%			7.9	%
Average equity / Average loans (a)			16.73	%			16.13	%			15.43	%			3.7	%			8.4	%
Average loans / Average deposits (a)			90.82	%			91.96	%			91.19	%			-1.2	%			-0.4	%
N.M. - Not meaningful

 

 

PARK NATIONAL CORPORATION

Financial Highlights (continued)

 

a) Averages are for the quarters ended March 31, 2012, December 31, 2011, and March 31, 2011.

 

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

 

(c) Net income 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
		March 31, 2012				December 31, 2011				March 31, 2011
AVERAGE STOCKHOLDERS' EQUITY		$	750,505			$	754,168			$	731,789
Less:  Average preferred stock			98,242				98,023				97,380
Average goodwill and other intangibles			73,619				76,041				78,067
AVERAGE TANGIBLE COMMON EQUITY		$	578,644			$	580,104			$	556,342

 

(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: 

		March 31, 2012				December 31, 2011				March 31, 2011
STOCKHOLDERS' EQUITY		$	756,429			$	742,364			$	729,940
Less: Preferred stock			98,372				98,146				97,504
Goodwill and other intangibles			73,088				74,843				77,708
TANGIBLE COMMON EQUITY		$	584,969			$	569,375			$	554,728

 

(e) Net income 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
		March 31, 2012				December 31, 2011				March 31, 2011
AVERAGE ASSETS		$	6,896,548			$	7,092,437			$	7,258,420
Less:  Average goodwill and other intangibles			73,619				76,041				78,067
AVERAGE TANGIBLE ASSETS		$	6,822,929			$	7,016,396			$	7,180,353

 

(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: 

		March 31, 2012				December 31, 2011				March 31, 2011
TOTAL ASSETS		$	6,776,851			$	6,972,245			$	7,323,105
Less: Goodwill and other intangibles			73,088				74,843				77,708
TANGIBLE ASSETS		$	6,703,763			$	6,897,402			$	7,245,397

 

 

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
		March 31, 2012				December 31, 2011				March 31, 2011
Interest income		$	74,838			$	80,231			$	84,662
Fully taxable equivalent adjustment			427				456				518
Fully taxable equivalent interest income		$	75,265			$	80,687			$	85,180
Interest expense			13,110				13,952				15,349
Fully taxable equivalent net interest income		$	62,155			$	66,735			$	69,831

 

 

PARK NATIONAL CORPORATION

Consolidated Statements of Income

 

		Three Months Ended
		March 31,
(in thousands, except share and per share data)		2012				2011
Interest income:
Interest and fees on loans		$	61,105			$	65,454
Interest on:
Obligations of U.S. Government, its agencies and other securities			13,584				19,053
Obligations of states and political subdivisions			46				149
Other interest income			103				6
Total interest income			74,838				84,662
Interest expense:
Interest on deposits:
Demand and savings deposits			754				991
Time deposits			4,639				6,734
Interest on borrowings			7,717				7,624
Total interest expense			13,110				15,349
Net interest income			61,728				69,313
Provision for loan losses			9,000				14,100
Net interest income after provision for loan losses			52,728				55,213
Gain on sale of Vision Bank			22,167
Other income			17,453				15,030
Gain on sale of securities			-				6,635
Other expense:
Salaries and employee benefits			24,823				25,064
Occupancy expense			2,670				3,000
Furniture and equipment expense			2,621				2,657
Other expense			17,694				15,625
Total other expense			47,808				46,346
Income before income taxes			44,540				30,532
Income taxes			13,065				8,336
Net income		$	31,475			$	22,196
Preferred stock dividends and accretion			1,477				1,464
Net income available to common shareholders		$	29,998			$	20,732
Per Common Share:
Net income  - basic		$	1.95			$	1.35
Net income  - diluted		$	1.95			$	1.35
Weighted average shares - basic			15,405,910				15,398,930
Weighted average shares - diluted			15,417,745				15,403,420

 

 

PARK NATIONAL CORPORATION

Consolidated Balance Sheets

 

(in thousands, except share data)		March 31, 2012				December 31, 2011
Assets
Cash and due from banks		$	121,730			$	137,770
Money market instruments			39,400				19,716
Investment securities			1,857,335				1,708,473
Loans			4,324,383				4,317,099
Allowance for loan losses			59,758				68,444
Loans, net			4,264,625				4,248,655
Bank premises and equipment, net			52,157				53,741
Goodwill and other intangibles			73,088				74,843
Other real estate owned			41,965				42,272
Other assets			326,551				304,313
Assets held for sale			0				382,462
Total assets		$	6,776,851			$	6,972,245
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing		$	1,055,745			$	995,733
Interest bearing			3,761,643				3,469,381
Total deposits			4,817,388				4,465,114
Borrowings			1,133,738				1,162,026
Other liabilities			69,296				66,555
Liabilities held for sale			0				536,186
Total liabilities		$	6,020,422			$	6,229,881
Stockholders' Equity:
Preferred Stock (200,000 shares authorized in 2011 and 2010; 100,000 shares issued in 2011 and 2010)		$	98,372			$	98,146
Common stock (No par value; 20,000,000 shares authorized in 2011 and 2010;  16,151,014 shares issued at March 31, 2012, and 16,151,021 at December 31, 2011)			301,201				301,202
Common stock warrants			4,297				4,297
Accumulated other comprehensive loss, net of taxes			(10,508	)			(8,831	)
Retained earnings			440,074				424,557
Treasury stock (745,109 shares at March 31, 2012, and 745,109 shares at December 31, 2011)			(77,007	)			(77,007	)
Total stockholders' equity		$	756,429			$	742,364
Total liabilities and stockholders' equity		$	6,776,851			$	6,972,245

 

 

PARK NATIONAL CORPORATION

Consolidated Average Balance Sheets

 

		Three Months Ended
		March 31,
(in thousands)		2012				2011
Assets
Cash and due from banks		$	136,480			$	120,339
Money market instruments			168,880				26,948
Investment securities			1,663,891				1,970,950
Loans			4,485,074				4,743,075
Allowance for loan losses			70,441				146,689
Loans, net			4,414,633				4,596,386
Bank premises and equipment, net			60,398				69,894
Goodwill and other intangibles			73,619				78,067
Other real estate owned			42,663				45,171
Other assets			335,984				350,665
Total assets		$	6,896,548			$	7,258,420
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing		$	1,047,062			$	956,059
Interest bearing			3,891,482				4,245,255
Total deposits			4,938,544				5,201,314
Borrowings			1,139,028				1,239,166
Other liabilities			68,471				86,151
Total liabilities		$	6,146,043			$	6,526,631
Stockholders' Equity:
Preferred stock		$	98,242			$	97,380
Common stock			301,202				301,204
Common stock warrants			4,297				4,473
Accumulated other comprehensive loss, net of taxes			(8,357	)			(4,753	)
Retained earnings			432,128				411,218
Treasury stock			(77,007	)			(77,733	)
Total stockholders' equity		$	750,505			$	731,789
Total liabilities and stockholders' equity		$	6,896,548			$	7,258,420

 

Note:

The average balances for the quarter ended March 31, 2012 include those assets and liabilities held for sale as part of the sale of Vision Bank assets and assumption of Vision Bank liabilities to Centennial Bank.

 

 

PARK NATIONAL CORPORATION

Consolidated Statements of Income - Linked Quarters

 

		2012				2011				2011				2011				2011
(in thousands, except per share data)		1st QTR				4th QTR				3rd QTR				2nd QTR				1st QTR
Interest income:
Interest and fees on loans		$	61,105			$	65,497			$	65,645			$	65,862			$	65,454
Interest on:
Obligations of U.S. Government, its agencies and other securities			13,584				14,571				16,289				18,960				19,053
Obligations of states and political subdivisions			46				61				69				92				149
Other interest income			103				102				62				8				6
Total interest income			74,838				80,231				82,065				84,922				84,662
Interest expense:
Interest on deposits:
Demand and savings deposits			754				894				976				951				991
Time deposits			4,639				5,247				5,661				6,200				6,734
Interest on borrowings			7,717				7,811				7,808				7,749				7,624
Total interest expense			13,110				13,952				14,445				14,900				15,349
Net interest income			61,728				66,279				67,620				70,022				69,313
Provision for loan losses			9,000				20,218				16,438				12,516				14,100
Net interest income after provision for loan losses			52,728				46,061				51,182				57,506				55,213
Gain on sale of Vision Bank			22,167
Other income			17,453				17,885				18,027				15,139				15,030
Gain on sale of securities			-				3,367				3,465				15,362				6,635
Other expense:
Salaries and employee benefits			24,823				25,952				25,799				25,253				25,064
Occupancy expense			2,670				2,866				2,665				2,764				3,000
Furniture and equipment expense			2,621				2,643				2,688				2,785				2,657
Other expense			17,694				17,904				14,447				16,205				15,625
Total other expense			47,808				49,365				45,599				47,007				46,346
Income before income taxes			44,540				17,948				27,075				41,000				30,532
Income taxes			13,065				7,339				6,694				12,046				8,336
Net income		$	31,475			$	10,609			$	20,381			$	28,954			$	22,196
Preferred stock dividends and accretion			1,477				1,464				1,464				1,464				1,464
Net income available to common shareholders		$	29,998			$	9,145			$	18,917			$	27,490			$	20,732
Per Common Share:
Net income  - basic		$	1.95			$	0.59			$	1.23			$	1.79			$	1.35
Net income  - diluted		$	1.95			$	0.59			$	1.23			$	1.79			$	1.35

 

 

PARK NATIONAL CORPORATION

Detail of other income and other expense - Linked Quarters

 

		2012				2011				2011				2011				2011
(in thousands)		1st QTR				4th QTR				3rd QTR				2nd QTR				1st QTR
Other income:
Income from fiduciary activities		$	3,828			$	3,699			$	3,615			$	3,929			$	3,722
Service charges on deposits			4,071				4,643				4,894				4,525				4,245
Other service income			2,734				2,484				3,087				2,734				2,301
Checkcard fee income			3,172				3,115				3,154				3,251				2,976
Bank owned life insurance income			1,202				1,403				1,229				1,228				1,229
ATM fees			608				641				726				682				654
OREO devaluations			(1,359	)			(1,742	)			(588	)			(3,354	)			(2,535	)
Gain on sale of Vision Bank			22,167				-				-				-				-
Other			3,197				3,642				1,910				2,144				2,438
Total other income		$	39,620			$	17,885			$	18,027			$	15,139			$	15,030
Other expense:
Salaries and employee benefits		$	24,823			$	25,952			$	25,799			$	25,253			$	25,064
Net occupancy expense			2,670				2,866				2,665				2,764				3,000
Furniture and equipment expense			2,621				2,643				2,688				2,785				2,657
Data processing fees			1,200				1,393				1,184				1,135				1,253
Professional fees and services			5,581				5,920				5,005				5,320				4,874
Amortization of intangibles			1,754				1,528				669				669				669
Marketing			843				852				764				728				623
Insurance			1,490				1,526				681				2,345				2,269
Communication			1,537				1,544				1,475				1,485				1,556
Other			5,289				5,141				4,669				4,523				4,381
Total other expense		$	47,808			$	49,365			$	45,599			$	47,007			$	46,346

 

 

PARK NATIONAL CORPORATION

Asset Quality Information

 

		Quarter ended				Year ended December 31,
(in thousands, except ratios)		March 31, 2012				2011				2010				2009				2008
Allowance for loan losses:
Allowance for loan losses, beginning of period		$	68,444			$	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			18,967	(A)			133,882				66,314				59,022				62,916
Recoveries			1,943				8,798				6,092				6,830				5,415
Net charge-offs			17,024				125,084				60,222				52,192				57,501
Provision for loan losses			8,338				63,272				87,080				68,821				70,487
Allowance for loan losses, end of period		$	59,758			$	68,444			$	143,575			$	116,717			$	100,088
Provision for Centennial Bank loan put			662
Allowance for credit losses, end of period		$	60,420			$	68,444			$	143,575			$	116,717			$	100,088
(A) Includes the full charge-off of the Vision Bank ALLL of $12.1 million to bring the retained Vision Bank loan portfolio to fair value prior to the merger of Vision Bank (as constituted following the transaction with Centennial Bank and Home BancShares, Inc.) with and into SE Property Holdings, LLC ("SE LLC"), the non-bank subsidiary of Park, on February 16, 2012.
General reserve trends:
Allowance for loan losses, end of period		$	59,758			$	68,444			$	143,575			$	116,717			$	100,088
Specific reserves			9,505				15,935				66,904				36,721				8,875
General reserves		$	50,253			$	52,509			$	76,671			$	79,996			$	91,213
Total loans		$	4,324,383			$	4,317,099			$	4,732,685			$	4,640,432			$	4,491,337
Impaired commercial loans			179,293				187,074				250,933				201,143				141,343
Non-impaired loans		$	4,145,090			$	4,130,025			$	4,481,752			$	4,439,289			$	4,349,994
Asset Quality Ratios:
Net charge-offs as a % of average loans  (annualized for quarterly periods)			1.53	%			2.65	%			1.30	%			1.14	%			1.32	%
Allowance for loan losses as a % of period end loans			1.38	%			1.59	%			3.03	%			2.52	%			2.23	%
General reserves as a % of non-impaired loans			1.21	%			1.27	%			1.71	%			1.80	%			2.10	%
Nonperforming Assets - Park National Corporation:
Nonaccrual loans		$	183,227			$	195,106			$	289,268			$	233,544			$	159,512
Accruing renegotiated loans			34,436				28,607				-				142				2,845
Loans past due 90 days or more			2,281				3,489				3,590				14,773				5,421
Total nonperforming loans		$	219,944			$	227,202			$	292,858			$	248,459			$	167,778
Other real estate owned - Park National Bank			13,387				13,240				8,385				6,037				6,149
Other real estate owned - SE LLC			28,578				29,032				-				-				-
Other real estate owned - Vision Bank			-				-				33,324				35,203				19,699
Total nonperforming assets		$	261,909			$	269,474			$	334,567			$	289,699			$	193,626
Percentage of nonaccrual loans to period end loans			4.24	%			4.52	%			6.11	%			5.03	%			3.55	%
Percentage of nonperforming loans to period end loans			5.09	%			5.26	%			6.19	%			5.35	%			3.74	%
Percentage of nonperforming assets to period end loans			6.06	%			6.24	%			7.07	%			6.24	%			4.31	%
Percentage of nonperforming assets to period end assets			3.86	%			3.86	%			4.59	%			4.11	%			2.74	%

 

 

PARK NATIONAL CORPORATION

Asset Quality Information

 

		Quarter ended				Year ended December 31,
(in thousands, except ratios)		March 31, 2012				2011				2010				2009				2008
Nonperforming Assets - Park National Bank and Guardian:
Nonaccrual loans		$	102,886			$	96,113			$	117,815			$	85,197			$	68,306
Accruing renegotiated loans			32,451				26,342				-				142				-
Loans past due 90 days or more			2,281				3,367				3,226				3,496				4,777
Total nonperforming loans		$	137,618			$	125,822			$	121,041			$	88,835			$	73,083
Other real estate owned - Park National Bank			13,387				13,240				8,385				6,037				6,149
Total nonperforming assets		$	151,005			$	139,062			$	129,426			$	94,872			$	79,232
Percentage of nonaccrual loans to period end loans			2.43	%			2.29	%			2.88	%			2.15	%			1.80	%
Percentage of nonperforming loans to period end loans			3.26	%			3.00	%			2.96	%			2.24	%			1.92	%
Percentage of nonperforming assets to period end loans			3.57	%			3.32	%			3.16	%			2.39	%			2.08	%
Percentage of nonperforming assets to period end assets			2.29	%			2.21	%			1.99	%			1.53	%			1.27	%
Nonperforming Assets -SE LLC/Vision Bank (retained portfolio as of March 31, 2012 and December 31, 2011):
Nonaccrual loans		$	80,341			$	98,993			$	171,453			$	148,347			$	91,206
Accruing renegotiated loans			1,985				2,265				-				-				2,845
Loans past due 90 days or more			-				122				364				11,277				644
Total nonperforming loans		$	82,326			$	101,380			$	171,817			$	159,624			$	94,695
Other real estate owned - Vision Bank			-				-				33,324				35,023				19,699
Other real estate owned - SE LLC			28,578				29,032				-				-				-
Total nonperforming assets		$	110,904			$	130,412			$	205,141			$	194,647			$	114,394
Percentage of nonaccrual loans to period end loans			N.M.				N.M.				26.77	%			21.91	%			13.21	%
Percentage of nonperforming loans to period end loans			N.M.				N.M.				26.82	%			23.58	%			13.71	%
Percentage of nonperforming assets to period end loans			N.M.				N.M.				32.02	%			28.78	%			16.57	%
Percentage of nonperforming assets to period end assets			N.M.				N.M.				25.90	%			21.70	%			12.47	%
New nonaccrual loan information:
Nonaccrual loans, beginning of period		$	195,106			$	289,268			$	233,544			$	159,512			$	101,128
New nonaccrual loans - Ohio-based operations			21,210				78,316				85,081				57,641				58,161
New nonaccrual loans - SE LLC/Vision Bank (SE LLC as of March 31, 2012)			568				45,842				90,094				126,540				83,588
Resolved nonaccrual loans			33,657				218,320				119,451				110,149				83,365
Nonaccrual loans, end of period		$	183,227			$	195,106			$	289,268			$	233,544			$	159,512
Impaired Commercial Loan Portfolio Information (period end):
Unpaid principal balance		$	287,623			$	290,908			$	304,534			$	245,092			$	171,310
Prior charge-offs			108,330				103,834				53,601				43,949				29,967
Remaining principal balance			179,293				187,074				250,933				201,143				141,343
Specific reserves			9,505				15,935				66,904				36,721				8,875
Book value, after specific reserve		$	169,788			$	171,139			$	184,029			$	164,422			$	132,468

 

 

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 the 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; changes in unemployment; asset/liability repricing risks and liquidity risks; our liquidity requirements could be adversely affected by changes in our assets and liabilities; competitive factors among financial service organizations 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; 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, 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