10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended December 31, 2015
	OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number: 1-13006

Park National Corporation

(Exact name of Registrant as specified in its charter)

Ohio	31-1179518
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
50 North Third Street, P.O. Box 3500, Newark, Ohio	43058-3500
(Address of principal executive offices)	(Zip Code)

(740) 349-8451

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Shares, without par value	NYSE MKT LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

xYes ¨No

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

¨Yes xNo

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

xYes ¨No

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

xYes ¨No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company ¨
(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).

¨Yes xNo

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the Registrant’s most recently completed second fiscal quarter: As of June 30, 2015, the aggregate market value of the Registrant’s common shares (the only common equity of the Registrant) held by non-affiliates of the Registrant was $1,316,169,477 based on the closing sale price as reported on NYSE MKT LLC. For this purpose, executive officers and directors of the Registrant are considered affiliates.

Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the latest practicable date.

Class	Outstanding at February 17, 2016
Common Shares, without par value	15,330,812 common shares

DOCUMENTS INCORPORATED BY REFERENCE

Document	Parts Into Which Incorporated
Portions of the Registrant’s 2015 Annual Report	Parts I and II
Portions of the Registrant’s Definitive Proxy Statement for the Annual Meeting of Shareholders to be held on April 25, 2016	Part III

Exhibit Index on Page E-1

PART I

ITEM 1. BUSINESS.

General

Park National Corporation (“Park”) is a financial holding company subject to regulation under the Bank Holding Company Act of 1956, as amended (the “Bank Holding Company Act”). Park was incorporated under Ohio law in 1992. Park’s principal executive offices are located at 50 North Third Street, Newark, Ohio 43055, and its telephone number is (740) 349-8451. Park’s common shares, each without par value (the “Common Shares”), are listed on NYSE MKT LLC (“NYSE MKT”), under the symbol “PRK.”

Park maintains an Internet site which can be accessed at http://www.parknationalcorp.com. Information contained in Park’s Internet site does not constitute part of, and is not incorporated into, this Annual Report on Form 10-K. Park makes available free of charge on or through its Internet site Park’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as Park’s definitive proxy statements filed pursuant to Section 14 of the Exchange Act, as soon as reasonably practicable after Park electronically files such material with, or furnishes it to, the Securities and Exchange Commission (the “SEC”).

Park’s principal business consists of owning and supervising its subsidiaries. Although Park directs the overall policies of its subsidiaries, including lending policies and financial resources, most day-to-day affairs are managed by the respective officers of Park’s subsidiaries.

Banking Operations

Throughout the fiscal year ended December 31, 2015 (“Fiscal 2015”), Park’s banking operations were conducted through The Park National Bank ("Park National Bank").

Park National Bank is a national banking association with its main office in Newark, Ohio and financial service offices in Ashland, Athens, Butler, Champaign, Clark, Clermont, Coshocton, Crawford, Darke, Fairfield, Fayette, Franklin, Greene, Hamilton, Hocking, Holmes, Knox, Licking, Madison, Marion, Mercer, Miami, Morrow, Muskingum, Perry, Richland, Tuscarawas and Warren Counties in Ohio.

Park National Bank engages in the commercial banking and trust business, generally in small and medium population Ohio communities. Park National Bank operates 116 banking offices in Ohio through eleven banking divisions with: (i) the Park National Bank Division headquartered in Newark, Ohio; (ii) the Fairfield National Bank Division headquartered in Lancaster, Ohio; (iii) the Richland Bank Division headquartered in Mansfield, Ohio; (iv) the Century National Bank Division headquartered in Zanesville, Ohio; (v) the First-Knox National Bank Division headquartered in Mount Vernon, Ohio; (vi) the Farmers Bank Division headquartered in Loudonville, Ohio; (vii) the United Bank, N.A. Division headquartered in Bucyrus, Ohio; (viii) the Second National Bank Division headquartered in Greenville, Ohio; (ix) the Security National Bank Division headquartered in Springfield, Ohio; (x) the Unity National Bank Division headquartered in Piqua, Ohio; and (xi) The Park National Bank of Southwest Ohio & Northern Kentucky Division headquartered in Cincinnati, Ohio.

Park National Bank, Guardian Financial Services Company ("Guardian Finance") and SE Property Holdings, LLC ("SEPH") comprise Park’s reportable operating segments. All other operating segments are combined and disclosed in the "All Other" category. Financial information about Park’s reportable operating segments as of December 31, 2015 is included in Note 27 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report. That financial information is incorporated herein by reference.

As of the date of this Annual Report on Form 10-K, Park National Bank operated 116 banking offices and a network of 140 automated teller machines. Financial information about Park National Bank is included in the "PNB” category for purposes of the reportable segment information included in Note 27 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report.

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Consumer Finance Subsidiary

Guardian Finance, an Ohio consumer finance company based in Hilliard, Ohio, operates as a separate subsidiary of Park. Guardian Finance provides consumer finance services in the central Ohio area. As of the date of this Annual Report on Form 10-K, Guardian Finance had five financial service offices spanning five counties in Ohio: Clark, Fairfield, Franklin, Licking and Montgomery. Financial information about Guardian Finance is included in the “GFSC” category for purposes of the reportable segment information included in Note 27 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report.

SE Property Holdings, LLC

SEPH is a limited liability company, organized in 2011 under the laws of the State of Ohio, and a direct subsidiary of Park. The initial purpose of SEPH was to purchase other real estate owned (“OREO”) from Vision Bank, a bank subsidiary of Park until February 16, 2012, and continue to market such properties for sale. By letter dated January 30, 2012, the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) authorized Park to engage in the business of extending credit through SEPH. As a result, SEPH is permitted to engage in lending activities and was able to succeed to the rights and obligations of Vision Bank in respect of the loans held by Vision Bank when Vision Bank merged into SEPH on February 16, 2012 (the "Vision Bank-SEPH merger"). SEPH has operations in Ohio, with the sole purpose of such operations being to sell OREO in an effective and efficient manner and work out or sell problem loan situations with the respective borrowers.

Financial information about SEPH is included in the “SEPH” category for purposes of the reportable segment information included in Note 27 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report.

Scope Leasing, Inc.

Scope Leasing, Inc. (which does business as “Scope Aircraft Finance”), a subsidiary of Park National Bank, specializes in aircraft financing. The customers of Scope Aircraft Finance include small businesses and entrepreneurs intending to use the aircraft for business or pleasure. Scope Aircraft Finance serves customers throughout the United States of America (the “United States”) and Canada.

Title Agency Subsidiary

Park holds 80% of the ownership interest of Park Title Agency, LLC. (“Park Title Agency”). Effective May 9, 2014, Park acquired a 49% ownership interest in Park Title Agency from Park National Bank for $316,129 and a 31% ownership interest in Park Title Agency from the other member (which is not a subsidiary of Park) for $200,000. Such other member holds the remaining 20% of the ownership interest of Park Title Agency. Park Title Agency is a traditional title agency serving the central Ohio area.

Vision Bancshares Trust I

In connection with the merger of Vision Bancshares, Inc. (“Vision”) into Park in March of 2007 (the “Vision Merger”), Park entered into a First Supplemental Indenture, dated as of the effective time of the Vision Merger (the “First Supplemental Indenture”), with Vision and Wilmington Trust Company, a Delaware banking corporation, as Trustee. Under the terms of the First Supplemental Indenture, Park assumed all of the payment and performance obligations of Vision under the Junior Subordinated Indenture, dated as of December 5, 2005 (the “Indenture”), pursuant to which Vision issued $15.5 million of junior subordinated notes to Vision Bancshares Trust I, a Delaware statutory trust (the “Vision Trust”). The junior subordinated notes were issued by Vision in connection with the sale by the Vision Trust of $15.0 million of floating rate preferred securities to institutional investors on December 5, 2005.

Under the terms of the First Supplemental Indenture, Park also succeeded to and was substituted for Vision with the same effect as if Park had originally been named (i) as “Depositor” in the Amended and Restated Trust Agreement of the Vision Trust, dated as of December 5, 2005 (the “Trust Agreement”), among Vision, Wilmington Trust Company, as Property Trustee and as Delaware Trustee, and the Administrative Trustees named therein and (ii) as “Guarantor” in the Guarantee Agreement, dated as of December 5, 2005 (the “Guarantee Agreement”), between Vision and Wilmington Trust Company, as Guarantee Trustee. Through these contractual obligations, Park has fully and unconditionally guaranteed all of the Vision Trust’s obligations with respect to the floating rate preferred securities.

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Both the junior subordinated notes and the floating rate preferred securities mature on December 30, 2035 (which maturity may be shortened), and carry a floating interest rate per annum, reset quarterly, equal to the sum of three-month LIBOR plus 148 basis points. Payment of interest on the junior subordinated notes, and payment of cash distributions on the floating rate preferred securities, may be deferred at any time or from time to time for a period not to exceed twenty consecutive quarters, subject to specified conditions.

Under the terms of the Indenture and the related Guarantee Agreement, Park, as successor to Vision in accordance with the First Supplemental Indenture, is prohibited, subject to limited exceptions, from declaring or paying dividends or distributions on, or redeeming, repurchasing, acquiring or making any liquidation payments with respect to, any shares of Park’s capital stock (i) if an event of default under the Indenture has occurred and continues; (ii) if Park is in default with respect to the payment of any obligations under the Guarantee Agreement; or (iii) during any period in which the payment of interest on the junior subordinated notes by Park (and the payment of cash distributions on the floating rate preferred securities by the Vision Trust) is being deferred. The floating rate preferred securities are considered Tier 1 Capital under regulatory capital standards.

Other Subsidiaries

Park Investments, Inc. ("PII"), which is a subsidiary of Park National Bank, operates as an asset management company. Commencing in 2015, Park began purchasing and holding municipal bonds within PII. As of December 31, 2015, PII held municipal securities of $48.2 million.

River Park Properties, LLC and Sunny Green, LLC are subsidiaries of Park National Bank that hold certain OREO properties. The operations of these subsidiaries are not significant to the consolidated entity.

87A Orange Beach, LLC, Morningside Holding, LLC, Swindall Holdings, LLC, Swindall Partnership Holdings, LLC, Marina Holdings Z, LLC, Marina Holding WE, LLC, and Vision-Park Properties, L.L.C. are subsidiaries of SEPH that hold certain OREO properties. The operations of these subsidiaries are not significant to the consolidated entity.

Services Provided by Park’s Subsidiaries

Park National Bank and its divisions provide the following principal services:

• the acceptance of deposits for demand, savings and time accounts and the servicing of those accounts;

• commercial, industrial, consumer and real estate lending, including installment loans, credit cards (which are offered through a third party), home equity lines of credit and commercial leasing;

• trust and wealth management services;

• cash management;

• safe deposit operations;

• electronic funds transfers;

• Internet and mobile banking solutions with bill pay service; and

• a variety of additional banking-related services tailored to the needs of individual customers.

Park believes that the deposit mix of Park National Bank and its divisions is currently such that no material portion has been obtained from a single customer and, consequently, the loss of any one customer of Park National Bank (or its divisions) would not have a materially adverse effect on the business of Park National Bank (or the relevant division).

Guardian Finance provides consumer finance services.

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Lending Activities

Park National Bank deals with consumers as well as with a wide cross-section of businesses and corporations located primarily in the 28 Ohio counties served by the financial service offices of Park National Bank. As a result of the Vision Bank – SEPH merger, SEPH holds loans originated by Vision Bank previously serviced by the financial service offices of Vision Bank. It is expected that SEPH will originate loans only to further the collection efforts with respect to the loans transferred to SEPH by operation of law as a result of the Vision Bank - SEPH merger. Such origination (or modification) volume is expected to be insignificant to the consolidated Park entity. Park National Bank also holds loans which were purchased from Vision Bank prior to the Vision Bank - SEPH merger.

Park National Bank makes lending decisions in accordance with the written loan policies adopted by Park which are designed to maintain acceptable loan quality. Park National Bank originates and retains for its own portfolio commercial and commercial real estate loans, residential real estate loans, home equity lines of credit, and installment loans. Park National Bank also originates fixed-rate residential real estate loans for sale to the secondary market.

Guardian Finance originates and retains for its own portfolio consumer installment loans and commercial loans. Guardian Finance makes lending decisions in accordance with the written loan policy adopted and approved by the Guardian Finance Board of Directors.

There are certain risks inherent in making loans. These risks include changes in the credit worthiness of borrowers over the time period in which loans may be repaid, interest rate changes over the time period in which loans may be repaid, risks resulting from changes in the national and local economies, risks inherent in dealing with borrowers and, in the case of loans secured by collateral, risks resulting from uncertainties about the future value of the collateral.

Commercial Loans

At December 31, 2015, Park’s subsidiaries (including Scope Aircraft Finance) had approximately $2,072 million in commercial loans (commercial, financial and agricultural loans and commercial real estate loans) and commercial leases outstanding, representing approximately 40.9% of their total aggregate loan portfolio as of that date. Of this amount, approximately $956 million represented commercial, financial and agricultural loans, $1,114 million represented commercial real estate loans, and $3 million represented commercial leases.

Commercial loans are made for a wide variety of general corporate purposes, including financing for industrial and commercial properties, financing for equipment, inventories and accounts receivable, acquisition financing, commercial leasing, and to consumer finance companies. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. Information concerning the loan maturity distribution within the commercial loan portfolio is provided in Table 14 included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS,” and is incorporated herein by reference.

The commercial loan portfolio of Park’s current subsidiaries includes loans to a wide variety of corporations and businesses across many industrial classifications in the 28 Ohio counties where Park National Bank operates. The primary industries represented by these customers include commercial real estate leasing, manufacturing, retail trade, health care and other services.

Commercial loans are evaluated for the adequacy of repayment sources at the time of approval and are regularly reviewed for any possible deterioration in the ability of the borrower to repay the loan. The credit information required generally includes, depending on the amount of money lent, fully completed financial statements, third-party prepared financial statements, two years of federal income tax returns and a current credit report. Loan terms include amortization schedules commensurate with the purpose of each loan, identification of the source of each repayment and the risk involved. In most instances, collateral is required to provide an additional source of repayment in the event of default by a commercial borrower. The structure of the collateral package, including the type and amount of the collateral, varies from loan to loan depending on the financial strength of the borrower, the amount and terms of the loan and the collateral available to be pledged by the borrower. Most often, the collateral is inventory, machinery, accounts receivable and/or real estate. The guarantee of the business owners/principals is generally required on loans made to closely-held business entities.

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Commercial real estate loans (“CRE loans”) include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate. Park National Bank generally requires that the CRE loan amount be no more than 85% of the purchase price or the appraised value of the commercial real estate securing the CRE loan, whichever is less. CRE loans made for Park National Bank’s portfolio generally have a variable interest rate. For more information concerning the loan maturity distribution in the CRE loan portfolio, please see Table 14 included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS,” which is incorporated herein by reference.

The regulatory limit for loans made to one borrower by Park National Bank was $88.3 million at December 31, 2015. Participations in a loan by Park National Bank in an amount larger than $30.0 million are generally sold to third-party banks or financial institutions. While Park National Bank has a loan limit of $88.3 million, the total indebtedness of the largest single borrower within the commercial portfolio was $30.0 million at December 31, 2015.

Park has an independent, internal loan review program which annually evaluates substantially all (generally, about 90%) loan relationships with an outstanding balance greater than $300,000. If deterioration has occurred, the lending subsidiary takes prompt action designed to increase the likelihood of payment of the loan. Upon detection of the reduced ability of a borrower to service interest and/or principal on a loan, the subsidiary may downgrade the loan and, under certain circumstances, place the loan on nonaccrual status. The subsidiary then works with the borrower to develop a payment schedule which the subsidiary anticipates will permit service of the principal and interest on the loan by the borrower. Loans which deteriorate and show the inability of a borrower to repay principal are charged down to the net realizable value of collateral. A collection specialist/work-out officer is available to assist each subsidiary when a credit deteriorates. Information about Park’s policy for placing loans on nonaccrual status is included under the caption “Loans” in Note 1 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report, and is incorporated herein by reference.

Commercial loans are generally viewed as having a higher credit risk than consumer loans because commercial loans usually involve larger loan balances to a single borrower and are more susceptible to a risk of default during an economic downturn. Commercial loans generally have variable interest rates. Park uses several indices for commercial loans. However, the national prime rate is the most common index Park uses. Credit risk for commercial loans arises from borrowers lacking the ability or willingness to pay principal or interest and, in the case of secured loans, by a shortfall in the collateral value in relation to the outstanding loan balance in the event of a default and subsequent liquidation of collateral. The underwriting of all commercial loans, regardless of type, includes cash flow analyses with rates shocked by 400 basis points. In the case of commercial loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of each borrower to collect amounts due from its customers. Other collateral securing commercial loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the borrower’s business. Information concerning the loan loss experience and the allocation of the allowance for loan losses related to the commercial, financial and agricultural loan portfolio and the commercial real estate portfolio is provided in Table 28 and Table 29, respectively, included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS,” and is incorporated herein by reference.

Aircraft Financing

Scope Aircraft Finance specializes in aircraft financing. The customers of Scope Aircraft Finance include small businesses and entrepreneurs intending to use the aircraft for business or pleasure. The customers of Scope Aircraft Finance are located throughout the United States. The lending officers of Scope Aircraft Finance are experienced in the aircraft financing industry and rely upon that experience and industry guides in determining whether to grant an aircraft loan or lease. At December 31, 2015, Scope Aircraft Finance had outstanding approximately $232 million in loans primarily secured by aircraft (which are included in the commercial loan portfolio).

Consumer Loans

At December 31, 2015, Park's subsidiaries had outstanding consumer loans (including automobile loans and leases and home equity lines of credit) in an aggregate amount of approximately $967 million, constituting approximately 19.1% of their aggregate total loan portfolio. These subsidiaries make installment credit available to customers and prospective customers in their primary market areas of central and southern Ohio. At December 31, 2015, of the $967 million in consumer loans,GFSC had outstanding consumer loans of $28.1 million.

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Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. It is the policy of Park’s subsidiaries to adhere strictly to all laws and regulations governing consumer lending. A compliance officer is responsible for monitoring each subsidiary’s performance and advising and updating loan personnel in this area. Each subsidiary reviews its consumer loan portfolio monthly and charges off loans which do not meet Park’s standards. Information about Park’s policy for placing loans on nonaccrual status is included under the caption “Loans” in Note 1 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report, and is incorporated herein by reference. Park National Bank and its divisions also offer home equity lines of credit through the consumer lending department. These accounts are administered under the same standards as other consumer loans and leases.

Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount that can be recovered on these loans. Information concerning the loan loss experience and the allocation of the allowance for loan losses related to the consumer loan portfolio is provided in Table 28 and Table 29, respectively, included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS,” and is incorporated herein by reference.

Residential Real Estate and Construction Loans

At December 31, 2015, Park's subdiararies had outstanding approximately $2,029 million in construction real estate loans and residential real estate loans, representing approximately 40.0% of total loans outstanding. Of the $2,029 million, approximately $1,855 million was included within the residential real estate loan segment, which included $411 million of commercial loans, $1,211 million of mortgage loans, $211 million of home equity lines of credit and $23 million of installment loans. The remaining $173 million was included within the construction real estate loan segment, which included $130 million of commercial land and development (“CL&D”) loans and $43 million of 1-4 family residential construction loans. The market area for real estate lending by Park National Bank is concentrated in Ohio.

Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and a current independent third-party appraisal providing the market value of the real estate securing the loan. Residential real estate loans are generally analyzed through an automated underwriting platform (system) to determine a risk classification. All loans receiving a risk classification of caution require review by a senior lender and generally require additional documentation if the loan is approved.

Park National Bank generally requires that the residential real estate loan amount be no more than 80% of the purchase price or the appraised value of the real estate securing the loan, whichever is less, unless private mortgage insurance is obtained by the borrower. Loans in this lending category which are made to be held in the bank’s portfolio are both fixed and adjustable rate, fully amortized mortgages. The rates used are generally fully-indexed rates. From time to time, Park may offer a limited-time promotional rate on funds advanced on newly originated home equity lines of credit. Park National Bank also originates fixed-rate real estate loans for sale to the secondary market. Prior to 2010, these loans were generally sold immediately after closing. However, beginning in 2010 and continuing through December 31, 2014, Park’s management made a decision to retain certain 15-year, fixed-rate residential mortgage loans, which previously would have been sold in the secondary market. Subsequent to December 31, 2014, Park has generally sold these loans in the secondary market. At December 31, 2015 and 2014, Park reported $637 million and $639 million, respectively, of these loans on the Consolidated Balance Sheets. Real estate loans are typically secured by first mortgages with evidence of title in favor of the lender in the form of an attorney’s opinion of title or a title insurance policy. Park National Bank has also required proof of hazard insurance with the lender named as the mortgagee and as the loss payee. Independent third-party appraisals are generally obtained for consumer real estate loans.

Home equity lines of credit are generally made as second mortgages by Park National Bank. The maximum amount of a home equity line of credit is generally limited to 85% of the appraised value of the property less the balance of the first mortgage. The home equity lines of credit are written with ten-year terms. A variable interest rate is generally charged on the home equity lines of credit.

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Information concerning the loan loss experience and the allocation of the allowance for loan losses related to the residential real estate portfolio is provided in Table 28 and Table 29, respectively, included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS,” and is incorporated herein by reference.

Construction loans include commercial construction loans as well as residential construction loans. Construction loans may be in the form of a permanent loan or a short-term construction loan, depending on the needs of the individual borrower. Generally, the permanent construction loans have a variable interest rate although a permanent construction loan may be made with a fixed interest rate for a term generally not exceeding five years. Short-term construction loans are made with variable interest rates. Information concerning the loan maturity distribution within the construction financing portfolio is provided in Table 14 included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS,” and is incorporated herein by reference.

Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, the subsidiary holding the loan may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, the subsidiary holding the loan may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event a default on a construction loan occurs and foreclosure follows, the subsidiary holding the loan must take control of the project and attempt either to arrange for completion of construction or to dispose of the unfinished project. Additional risk exists with respect to a loan made to a developer who does not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. Park National Bank attempts to reduce such risks on loans to developers by requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer. For additional information concerning the loan loss experience, please see “ITEM 1A. RISK FACTORS – Changes in economic and political conditions could adversely affect our earnings through declines in our borrowers’ ability to repay loans, the value of the collateral securing our loans and demand deposits.” and “– Our allowance for loan losses may prove to be insufficient to absorb the probable, incurred losses in our loan portfolio.” in this Annual Report on Form 10-K. Information concerning the loan loss experience and the allocation of the allowance for loan losses related to the construction financing portfolio is provided in Table 28 and Table 29, respectively, included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS,” and is incorporated herein by reference.

SE Property Holdings, LLC

SEPH is a non-bank subsidiary of Park, holding OREO property, non-performing loans and a small number of performing loans. The loans are of higher risk as they are either on nonaccrual status or are accruing but may have been classified by Park management. In addition to approximately $11 million in OREO property, SEPH also held approximately $15.2 million in loans as of December 31, 2015. SEPH has one office in Licking County, Ohio. The SEPH employees are dedicated solely to working with a third-party work-out specialist to ensure effective and efficient resolution to the non-performing loans and OREO, while working closely with the borrowers of the performing loans to maximize collection efforts. It is expected that the loans and OREO will reduce over time and result in cash in-flow to Park.

Title Agency

Park Title Agency is a traditional title agency serving primarily residential and commercial customers of Park National Bank and other property owners in the 28 Ohio counties served by Park National Bank who are seeking title insurance for purchases, construction and refinancing of real estate.

Competition

The financial services industry is highly competitive. Park’s subsidiaries compete with other local, regional and national service providers, including banks, savings associations, credit unions and other types of financial institutions, finance companies, insurance agencies and title agencies. Other competitors include securities dealers, brokers, mortgage bankers, investment advisors, insurance companies and financial services subsidiaries of commercial and manufacturing companies. Competition within the financial services industry continues to increase as a result of mergers between, and expansion of, providers of financial services within and outside Park’s primary market area.

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The primary factors in competing for loans are interest rates charged and overall services provided to borrowers. The primary factors in competing for deposits are interest rates paid on deposits, account liquidity, convenience and hours of office locations, and having trained and competent staff to deliver services. However, some competitors of Park’s subsidiaries may have greater resources and, as such, higher lending limits, which may adversely affect the ability of Park’s subsidiaries to compete. In addition, some of the providers of financial services with which Park’s subsidiaries compete enjoy the benefits of fewer regulatory constraints and lower cost structures.

Employees

At December 31, 2015, Park and its subsidiaries had 1,793 full-time equivalent employees.

Supervision and Regulation of Park and its Subsidiaries

Park, Park National Bank and many of Park’s other subsidiaries are subject to extensive regulation by federal and state agencies. The regulation of financial holding companies and their subsidiaries is intended primarily for the protection of consumers, depositors, borrowers, the FDIC’s Deposit Insurance Fund and the banking system as a whole and not for the protection of shareholders. Applicable laws and regulations restrict permissible activities and investments and require actions to protect loan, deposit, brokerage, fiduciary and other customers, as well as the FDIC’s Deposit Insurance Fund. They also may restrict Park’s ability to repurchase its Common Shares or to receive dividends from Park National Bank and impose capital adequacy and liquidity requirements.

As a financial holding company, Park is subject to regulation by the Federal Reserve Board under the Bank Holding Company Act and to inspection, examination and supervision by the Federal Reserve Board. Park is also subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended (the “Securities Act”), and the Exchange Act, as administered by the SEC. Park’s Common Shares are listed on NYSE MKT under the trading symbol “PRK,” which subjects Park to the requirements under the applicable sections of the NYSE MKT Company Guide for listed companies.

Park National Bank, as a national banking association, is subject to regulation, supervision and examination primarily by the Office of the Comptroller of the Currency (the “OCC”) and secondarily by the FDIC.

Guardian Finance, as an Ohio state-chartered consumer finance company, is subject to regulation, supervision and examination by the Ohio Division of Financial Institutions.

As a subsidiary of Park, SEPH is subject to inspection, examination and supervision by the Federal Reserve Board.

Park Title Agency, as an Ohio state-chartered title agency, is subject to regulation, supervision and examination by the Ohio Department of Insurance.

The following information describes selected federal and state statutory and regulatory provisions and is qualified in its entirety by reference to the full text of the particular statutory or regulatory provisions. These statutes and regulations are continually under review by the United States Congress and state legislatures and federal and state regulatory agencies. A change in statutes, regulations or regulatory policies applicable to Park and its subsidiaries could have a material effect on their respective businesses.

Regulation of Financial Holding Companies

As a financial holding company, Park’s activities are subject to extensive regulation by the Federal Reserve Board. Park is required to file reports with the Federal Reserve Board and such additional information as the Federal Reserve Board may require, and is subject to regular examinations by the Federal Reserve Board.

The Federal Reserve Board also has extensive enforcement authority over financial holding companies, including, among other things, the ability to:

• assess civil money penalties;

• issue cease and desist or removal orders; and

• require that a financial holding company divest subsidiaries (including a subsidiary bank).

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In general, the Federal Reserve Board may initiate enforcement actions for violations of laws and regulations and unsafe or unsound practices.

Under Federal Reserve Board policy, a financial holding company is expected to act as a source of financial strength to each subsidiary bank and to commit resources to support such subsidiary bank. Under this policy, the Federal Reserve Board may require a financial holding company to contribute additional capital to an undercapitalized subsidiary bank and may disapprove of the payment of dividends to shareholders if the Federal Reserve Board believes the payment of such dividends would be an unsafe or unsound practice.

The Bank Holding Company Act requires the prior approval of the Federal Reserve Board in any case where a financial holding company proposes to:

• acquire direct or indirect ownership or control of more than 5% of the voting shares of any bank that is not already majority-owned by it;

• acquire all or substantially all of the assets of another bank or another financial or bank holding company; or

• merge or consolidate with any other financial or bank holding company.

The Gramm-Leach-Bliley Act of 1999 (“GLBA”) permits a qualifying bank holding company to become a financial holding company and thereby affiliate with securities firms and insurance companies and engage in other activities that are financial in nature and not otherwise permissible for a bank holding company. A bank holding company may become a financial holding company if each of its subsidiary banks is well capitalized under the Federal Deposit Insurance Corporation Act of 1991 prompt corrective action provisions, is well managed, and has at least a satisfactory rating under the Community Reinvestment Act, by filing a declaration that the bank holding company elects to become a financial holding company. Park’s declaration to become a financial holding company was deemed complete as of January 27, 2014 and since then, Park has been a financial holding company subject to regulation by the Federal Reserve Board. No regulatory approval is required for a financial holding company to acquire a company, other than a bank or savings association, engaged in activities that are financial in nature or incidental to activities that are financial in nature, as determined by the Federal Reserve Board.

The Financial Services Modernization Act defines “financial in nature” to include:

• securities underwriting, dealing and market making;

• sponsoring mutual funds and investment companies;

• insurance underwriting and agency;

• merchant banking; and

• activities that the Federal Reserve Board has determined to be closely related to banking.

A national bank also may engage, subject to limitations on investment, in activities that are financial in nature, other than insurance underwriting, insurance company portfolio investment, real estate development and real estate investment, through a financial subsidiary of the bank, if the bank is well capitalized and well managed and has at least a satisfactory Community Reinvestment Act rating. A subsidiary bank of a financial holding company or a national bank with a financial subsidiary must continue to be well capitalized and well managed in order to continue to engage in activities that are financial in nature without regulatory actions or restrictions, which could include divestiture of the financial-in-nature subsidiary or subsidiaries. In addition, a financial holding company or a bank may not acquire a company that is engaged in activities that are financial in nature unless each of the subsidiary banks of the financial holding company or the bank has a Community Reinvestment Act rating of satisfactory or better.

Each subsidiary bank of a financial holding company is subject to certain restrictions imposed by the Federal Reserve Act on the maintenance of reserves against deposits, extensions of credit to the financial holding company or any of its subsidiaries, investments in the stock or other securities of the financial holding company or its subsidiaries and the taking of such stock or securities as collateral for loans to any borrower. Further, a financial holding company and its subsidiaries are prohibited from engaging in certain tying arrangements in connection with any extension of credit, lease or sale of property or furnishing of any services. Various consumer laws and regulations also affect the operations of these subsidiaries.

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Transactions with Affiliates, Directors, Executive Officers and Shareholders

Sections 23A and 23B of the Federal Reserve Act and Federal Reserve Board Regulation W generally:

• limit the extent to which a bank or its subsidiaries may engage in “covered transactions” with any one affiliate;

• limit the extent to which a bank or its subsidiaries may engage in “covered transactions” with all affiliates; and

• require that all such transactions be on terms substantially the same, or at least as favorable to the bank or subsidiary, as those provided to a non-affiliate.

An affiliate of a bank is any company or entity which controls, is controlled by or is under common control with the bank. The term “covered transaction” includes the making of loans to the affiliate, the purchase of assets from the affiliate, the issuance of a guarantee on behalf of the affiliate, the purchase of securities issued by the affiliate and other similar types of transactions.

A bank’s authority to extend credit to executive officers, directors and greater than 10% shareholders, as well as entities such persons control, is subject to Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O promulgated thereunder by the Federal Reserve Board. Among other things, these loans must be made on terms (including interest rates charged and collateral required) substantially the same as those offered to unaffiliated individuals or be made as part of a benefit or compensation program and on terms widely available to employees, and must not involve a greater than normal risk of repayment. In addition, the amount of loans a bank may make to these persons is based, in part, on the bank’s capital position, and specified approval procedures must be followed in making loans which exceed specified amounts.

Regulation of Nationally-Chartered Banks

As a national banking association, Park National Bank is subject to regulation under the National Banking Act and is periodically examined by the OCC. OCC regulations govern permissible activities, capital requirements, dividend limitations, investments, loans and other matters. Furthermore, Park National Bank is subject, as a member bank, to certain rules and regulations of the Federal Reserve Board, many of which restrict activities and prescribe documentation to protect consumers. Park National Bank is an insured depository institution and a member of the Deposit Insurance Fund. As a result, it is subject to regulation and deposit insurance assessments by the FDIC. In addition, the establishment of branches by Park National Bank is subject to prior approval of the OCC. The OCC has broad enforcement powers over national banks, including the power to impose fines and other civil and criminal penalties and to appoint a conservator or receiver if any of a number of conditions are met.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act") established the Consumer Financial Protection Bureau (the "CFPB"), which regulates consumer financial products and services and certain financial services providers. The CFPB is authorized to prevent unfair, deceptive or abusive acts or practices and ensures consistent enforcement of laws so that consumers have access to fair, transparent and competitive markets for consumer financial products and services. The CFPB has rulemaking and interpretive authority.

Regulation of Consumer Finance Companies

As a consumer finance company incorporated under Ohio law, Guardian Finance is subject to regulation and supervision by the Ohio Division of Financial Institutions. Division regulation and supervision designed to protect consumers affect the lending activities of Guardian Finance, including interest rates and certain loan terms, advertising and record retention. If grounds provided by law exist, the Ohio Division of Financial Institutions may suspend or revoke an Ohio consumer finance company’s ability to make loans.

Federal Deposit Insurance Corporation

The FDIC is an independent federal agency which insures the deposits, up to prescribed statutory limits, of federally-insured banks and savings associations and safeguards the safety and soundness of the financial institution industry.

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Insurance Premiums

Insurance premiums for each insured depository institution are determined based upon the institution’s capital level and supervisory rating provided to the FDIC by the institution’s primary federal regulator and other information the FDIC determines to be relevant to the risk posed to the Deposit Insurance Fund by the institution. The assessment rate determined by considering such information is then applied to the amount of the institution’s average assets minus average tangible equity to determine the institution’s insurance premium. An increase in the assessment rate could have a material adverse effect on the earnings of the affected institution(s), depending on the amount of the increase.

In addition, the FDIC has proposed changing the deposit insurance premium assessment method for banks with less than $10 billion in assets that have been insured by the FDIC for at least five years. The proposed changes would revise the financial ratios method so that it would be based on a statistical model estimating the probability of failure of a depository institution over three years; update the financial measures used in the financial ratios method consistent with the statistical model; and eliminate risk categories for established small depository institutions and use the financial ratios method to determine assessment rates for all such depository institutions (subject to minimum or maximum initial assessment rates based upon a bank’s composite examination rating).

Insurance of deposits may be terminated by the FDIC upon a finding that the insured depository institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition enacted or imposed by the institution’s regulatory agency.

Federal Home Loan Bank

The Federal Home Loan Banks (“FHLBs”) provide credit to their members in the form of advances. Park National Bank is a member of the FHLB of Cincinnati. As an FHLB member, Park National Bank must maintain an investment in the capital stock of the FHLB of Cincinnati.

Upon the origination or renewal of a loan or advance, each FHLB is required by law to obtain and maintain a security interest in certain types of collateral. Each FHLB is required to establish standards of community investment or service that its members must maintain for continued access to long-term advances from the FHLB. The standards take into account a member’s performance under the Community Reinvestment Act and the member’s record of lending to first-time home buyers.

Regulatory Capital

The Federal Reserve Board has adopted risk-based capital guidelines for financial holding companies and other bank holding companies as well as state member banks. The OCC and the FDIC have adopted risk-based capital guidelines for national banks and state non-member banks, respectively. The guidelines provide a systematic analytical framework which makes regulatory capital requirements sensitive to differences in risk profiles among banking organizations, takes off-balance sheet exposures expressly into account in evaluating capital adequacy, and minimizes disincentives to holding liquid, low-risk assets. Capital levels as measured by these standards are also used to categorize financial institutions for purposes of certain prompt corrective action regulatory provisions.

Prior to January 1, 2015, the guidelines included a minimum for the ratio of total capital to risk-weighted assets of 8%, with at least half of the ratio composed of common shareholders’ equity, minority interests in certain equity accounts of consolidated subsidiaries and a limited amount of qualifying preferred stock and qualified trust preferred securities, less goodwill and certain other intangible assets (known as “Tier 1” risk-based capital). The guidelines also provided for a minimum ratio of Tier 1 capital to average assets, or “leverage ratio,” of 3% for financial holding companies and bank holding companies that met certain criteria, including having the highest regulatory rating, and 4% for all other financial holding companies and bank holding companies.

The risk-based capital guidelines adopted by the federal banking agencies are based on the “International Convergence of Capital Measurement and Capital Standard” (Basel I), published by the Basel Committee on Banking Supervision (the “Basel Committee”) in 1988. In 2004, the Basel Committee published a new capital adequacy framework (Basel II) for large, internationally active banking organizations, and in December 2010 and January 2011, the Basel Committee issued an update to Basel II (“Basel III”). The Basel Committee frameworks did not become applicable to banks supervised in the United States until adopted into United States law or regulations. Although the United States banking regulators imposed some of the Basel II and Basel III rules on banks with $250 billion or more in assets or $10 billion of on-balance sheet foreign exposure, it was not until July 2013 that the United States banking regulators issued final (or, in the case of the FDIC, interim final) new capital rules applicable to smaller banking organizations which also implement certain of the provisions of the Dodd-Frank Act (the

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“Basel III Capital Rules”). Community banking organizations, including Park and Park National Bank, began transitioning to the new rules on January 1, 2015. The new minimum capital requirements became effective on January 1, 2015; whereas, a new capital conservation buffer and deductions from common equity capital phase in from January 1, 2016 through January 1, 2019, and most deductions from common equity tier 1 capital phase in from January 1, 2015 through January 1, 2019.

The new rules include (a) a new common equity tier 1 capital ratio of at least 4.5%, (b) a Tier 1 capital ratio of at least 6.0%, rather than the former 4.0%, (c) a minimum total capital ratio that remains at 8.0%, and (d) a minimum leverage ratio of 4.0%.

Common equity for the common equity tier 1 capital ratio includes common stock (plus related surplus) and retained earnings, plus limited amounts of minority interests in the form of common stock, less the majority of certain regulatory deductions.

Tier 1 capital includes common equity as defined for the common equity tier 1 capital ratio, plus certain non-cumulative preferred stock and related surplus, cumulative preferred stock and related surplus and trust preferred securities that have been grandfathered (but which are not permitted going forward), and limited amounts of minority interests in the form of additional Tier 1 capital instruments, less certain deductions.

Tier 2 capital, which can be included in the total capital ratio, includes certain capital instruments (such as subordinated debt) and limited amounts of the allowance for loan and lease losses, subject to new eligibility criteria, less applicable deductions.

The deductions from common equity tier 1 capital include goodwill and other intangibles, certain deferred tax assets, mortgage-servicing assets above certain levels, gains on sale in connection with a securitization, investments in a banking organization’s own capital instruments and investments in the capital of unconsolidated financial institutions (above certain levels). The deductions phase in from 2015 through 2019.

Under the guidelines, capital is compared to the relative risk related to the balance sheet. To derive the risk included in the balance sheet, one of several risk weights is applied to different balance sheet and off-balance sheet assets, primarily based on the relative credit risk of the counterparty. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Some of the risk weightings have been changed effective January 1, 2015.

The new rules also place restrictions on the payment of capital distributions, including dividends, and certain discretionary bonus payments to executive officers if the company does not hold a capital conservation buffer of greater than 2.5 percent composed of common equity tier 1 capital above its minimum risk-based capital requirements, or if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5 percent at the beginning of the quarter. The capital conservation buffer phases in starting on January 1, 2016, at .625%.

The implementation of the portion of Basel III that has been phased in as of the date of this Annual Report on Form 10-K, did not have a material impact on Park’s or Park National Bank’s capital ratios. Further, the implementation of Basel III, once fully phased in, is not expected to have a material impact on Park's or Park National Bank's capital ratios.

The federal banking agencies have established a system of prompt corrective action to resolve certain of the problems of undercapitalized institutions. This system is based on five capital level categories for insured depository institutions: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized.”

The federal banking agencies may (or in some cases must) take certain supervisory actions depending upon a bank’s capital level. For example, the banking agencies must appoint a receiver or conservator for a bank within 90 days after the bank becomes “critically undercapitalized” unless the bank’s primary regulator determines, with the concurrence of the FDIC, that other action would better achieve regulatory purposes. Banking operations otherwise may be significantly affected depending on a bank’s capital category. For example, a bank that is not “well capitalized” generally is prohibited from accepting brokered deposits and offering interest rates on deposits higher than the prevailing rate in its market, and the holding company of any undercapitalized depository institution must guarantee, in part, specific aspects of the bank’s capital plan for the plan to be acceptable.

In order to be “well capitalized,” a bank must have a common equity tier I capital ratio of at least 6.5%, a total risk-based capital of at least 10.0%, a Tier 1 risk-based capital ratio of at least 8.0% and a leverage ratio of at least 5.0%, and the bank must not be subject to any written agreement, order, capital directive or prompt corrective action directive to meet and

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maintain a specific capital level for any capital measure. Park’s management believes that Park National Bank meets the ratio requirements to be deemed “well capitalized” according to the guidelines described above. See Note 26 of the Notes to Consolidated Financial Statements of Park’s 2015 Annual Report, which is incorporated herein by reference.

Fiscal and Monetary Policies

The business and earnings of Park and its subsidiaries are affected significantly by the fiscal and monetary policies of the United States government and its agencies. Park National Bank is particularly affected by the policies of the Federal Reserve Board, which regulates the supply of money and credit in the United States. These policies are used in varying degrees and combinations to directly affect the availability of bank loans and deposits, as well as the interest rates charged on loans and paid on deposits.

Limits on Dividends and Other Payments

There are various legal limitations on the extent to which a subsidiary bank may finance or otherwise supply funds to its parent holding company. Under applicable federal and state laws, a subsidiary bank may not, subject to certain limited exceptions, make loans or extensions of credit to, or investments in the securities of, its parent holding company. A subsidiary bank is also subject to collateral security requirements for any loan or extension of credit permitted by such exceptions.

Park National Bank may not pay dividends out of its surplus if, after paying these dividends, it would fail to meet the required minimum levels under the capital guidelines established by the OCC. In addition, Park National Bank must have the approval of the OCC if a dividend in any year would cause the total dividends for that year to exceed the sum of Park National Bank’s current year’s net income and the retained net income for the preceding two years, less required transfers to surplus. Payment of dividends by Park National Bank may be restricted at any time at the discretion of its regulatory authorities, if such regulatory authorities deem such dividends to constitute unsafe and/or unsound banking practices or if necessary to maintain adequate capital.

The ability of Park to obtain funds for the payment of dividends and for other cash requirements is largely dependent on the amount of dividends which may be declared by Park National Bank. However, the Federal Reserve Board expects Park to serve as a source of strength to Park National Bank, which may require Park to retain capital for further investment in Park National Bank, rather than pay dividends to the Park shareholders. Payment of dividends by Park National Bank may be restricted at any time at the discretion of the OCC if the OCC deems such dividends to constitute an unsafe and/or unsound banking practice. These provisions could have the effect of limiting Park’s ability to pay dividends on its Common Shares.

At December 31, 2015, approximately $107.5 million of the total shareholders’ equity of Park National Bank was available for payment to Park without the approval of the OCC. See Note 22 of the Notes to Consolidated Financial Statements of Park’s 2015 Annual Report.

The Federal Reserve Board has issued a policy statement with regard to the payment of cash dividends by financial holding companies and other bank holding companies. The policy statement provides that, as a matter of prudent banking, a financial holding company or bank holding company should not maintain a rate of cash dividends unless its net income available to common shareholders has been sufficient to fully fund the dividends, and the prospective rate of earnings retention appears to be consistent with the financial holding company or bank holding company’s capital needs, asset quality, and overall financial condition. Accordingly, a financial holding company or bank holding company should not pay cash dividends that exceed its net income or can only be funded in ways that weaken the financial holding company or bank holding company’s financial health, such as by borrowing.

Under the terms of the Indenture governing the $15.5 million of junior subordinated notes issued by Vision to the Vision Trust and the related Guarantee Agreement, Park, as successor to Vision in accordance with the First Supplemental Indenture, is prohibited, subject to limited exceptions, from declaring or paying any dividends or distributions on any shares of its capital stock (i) if an event of default under the Indenture has occurred and continues, (ii) if Park is in default with respect to the payment of any obligations under the Guarantee Agreement or (iii) during any period in which the payment of interest on the junior subordinated notes by Park (and the payment of cash distributions on the floating rate preferred securities of the Vision Trust) is being deferred.

The Note Purchase Agreement entered into by Park on April 20, 2012 (the "2012 Note Purchase Agreement") governs the 7% Subordinated Notes due April 20, 2022 issued by Park in April 2012. If an event of default occurs under the 2012 Note Purchase Agreement and is continuing, Park’s ability to declare or pay dividends on any of its capital stock will be restricted.

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Volcker Rule

In December 2013, five federal agencies adopted a final regulation implementing the Volcker Rule provision of the Dodd-Frank Act (the "Volcker Rule"). The Volcker Rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution, subject to certain exceptions. The trading activity includes a purchase or sale as principal of a security, derivative, commodity future or option on any such instrument in order to benefit from short-term price movements or to realize short-term profits. The Volcker Rule exempts specified United States Government, agency and/or municipal obligations, and it excepts trading conducted in certain capacities, including as a broker or other agent, through a deferred compensation or pension plan, as a fiduciary on behalf of customers, to satisfy a debt previously contracted, repurchase and securities lending agreements and risk-mitigating hedging activities.

The Volcker Rule also prohibits a banking entity from having an ownership interest in, or certain relationships with, a hedge fund or private equity fund, with a number of exceptions. To the extent that Park National Bank engages in any of the trading activities or has any ownership interest in or relationship with any of the types of funds regulated by the Volcker Rule, Park National Bank believes that its activities and relationships fall within the scope of the one or more of the exceptions provided in the Volcker Rule.

Privacy Provisions of Gramm-Leach-Bliley Act

Regulations adopted under the GLBA limit the ability of banks and other financial institutions to disclose non-public information about consumers to nonaffiliated third parties. These limitations require disclosure of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to a nonaffiliated third party.

Patriot Act

In response to the terrorist events of September 11, 2001, the Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”) was signed into law in October 2001. The Patriot Act gives the United States government powers to address terrorist threats through enhanced domestic security measures, expanded surveillance powers, increased information sharing and broadened anti-money laundering requirements. Title III of the Patriot Act takes measures intended to encourage information sharing among bank regulatory agencies and law enforcement bodies. Further, certain provisions of Title III impose affirmative obligations on a broad range of financial institutions. Among other requirements, Title III and related regulations require regulated financial institutions to establish a program specifying procedures for obtaining identifying information from customers seeking to open new accounts and establish enhanced due diligence policies, procedures and controls designed to detect and report suspicious activity. Park National Bank has established policies and procedures that are believed to be compliant with the requirements of the Patriot Act.

Corporate Governance

As mandated by the Sarbanes-Oxley Act of 2002, the SEC has adopted rules and regulations governing, among other issues, corporate governance, auditing and accounting, executive compensation and enhanced and timely disclosure of corporate information. NYSE MKT has also adopted corporate governance rules. The Board of Directors of Park has taken a series of actions to strengthen and improve Park’s already strong corporate governance practices in light of the rules of the SEC and NYSE MKT. The Board of Directors has adopted charters for the Audit Committee, the Compensation Committee, the Executive Committee, the Investment Committee, the Nominating and Corporate Governance Committee (including as Exhibit A thereto, Corporate Governance Guidelines) and the Risk Committee as well as a Code of Business Conduct and Ethics governing the directors, officers and associates of Park and its affiliates.

Dodd-Frank Act

On July 21, 2010, President Obama signed the Dodd-Frank Act into law. The Dodd-Frank Act has significantly changed the regulation of financial institutions and the financial services industry. The Dodd-Frank Act requires various federal agencies to adopt a broad range of regulations with significant discretion. Although many of the regulations have been adopted, some still have not.

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Among the provisions already implemented that have or may have an effect on Park or its subsidiaries are the following:

• the CFPB has been formed, which has broad powers to adopt and enforce consumer protection regulations;

• the federal law prohibiting the payment of interest on commercial demand deposit accounts has been eliminated;

• the standard maximum amount of deposit insurance per customer was permanently increased to $250,000;

• the assessment base for determining deposit insurance premiums has been expanded from domestic deposits to average assets minus average tangible equity;

• public companies in all industries are now required to provide shareholders the opportunity to cast a non-binding advisory vote on executive compensation;

• the Federal Reserve Board has imposed on financial institutions with assets of $10 billion or more a cap on the debit card interchange fees the financial institutions may charge. Although the cap is not applicable to Park National Bank, it may have an adverse effect on Park National Bank as the debit cards issued by Park National Bank and other smaller banks, which have higher interchange fees, may become less competitive;

• new capital regulations have been adopted as discussed above in the section captioned "Regulatory Capital"; and

• "ability to repay" regulations took effect in 2014 and generally require creditors to make a reasonable, good faith determination (considering at least eight specified underwriting factors) of a consumer's ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and provides a presumption that the creditor making a "qualified mortgage" satisfied the ability-to-pay requirements.

Additional provisions not yet implemented that may have an effect on Park or its subsidiaries are new corporate governance requirements applicable generally to all public companies in all industries, which will require other new compensation practices and disclosure requirements, including requiring companies to “claw back” incentive compensation under certain circumstances and to make additional disclosures in proxy statements with respect to compensation matters.

As many provisions of the Dodd-Frank Act have not yet been implemented and will require interpretation and rule making, the full effect on Park and its subsidiaries cannot yet be determined. However, the implementation of certain provisions have already increased compliance costs and the implementation of future provisions will likely increase both compliance costs and fees paid to regulators, along with possibly restricting the operations of Park and its subsidiaries.

Executive and Incentive Compensation

In June 2010, the Federal Reserve Board, the OCC and the FDIC issued joint interagency guidance on incentive compensation policies (the “Joint Guidance”) intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. This principles-based guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should: (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks; (ii) be compatible with effective internal controls and risk management; and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors.

Pursuant to the Joint Guidance, the Federal Reserve Board will review as part of a regular, risk-focused examination process, the incentive compensation arrangements of financial institutions such as Park and Park National Bank. Such reviews will be tailored to each organization based on the scope and complexity of the organization’s activities and the prevalence of incentive compensation arrangements. The findings of the supervisory initiatives will be included in reports of examination and deficiencies will be incorporated into the institution’s supervisory ratings, which can affect the institution’s ability to make acquisitions and take other actions. Enforcement actions may be taken against an institution if its incentive compensation

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arrangements, or related risk-management control or governance processes, pose a risk to the organization’s safety and soundness and prompt and effective measures are not being taken to correct the deficiencies.

On February 7, 2011, federal banking regulatory agencies jointly issued proposed rules on incentive-based compensation arrangements under applicable provisions of the Dodd-Frank Act (the “Proposed Joint Rules”). The Proposed Joint Rules generally apply to financial institutions with $1.0 billion or more in assets that maintain incentive-based compensation arrangements for certain covered employees. The Proposed Joint Rules: (i) prohibit covered financial institutions from maintaining incentive-based compensation arrangements that encourage covered persons to expose the institution to inappropriate risk by providing the covered person with “excessive” compensation; (ii) prohibit covered financial institutions from establishing or maintaining incentive-based compensation arrangements for covered persons that encourage inappropriate risks that could lead to a material financial loss; (iii) require covered financial institutions to maintain policies and procedures appropriate to their size, complexity and use of incentive-based compensation to help ensure compliance with the Proposed Joint Rules; and (iv) require covered financial institutions to provide enhanced disclosure to regulators regarding their incentive-based compensation arrangements for covered persons within 90 days following the end of the fiscal year.

Pursuant to rules adopted by the stock exchanges and approved by the SEC in January 2013 under the Dodd-Frank Act, public company compensation committee members must meet heightened independence requirements and consider the independence of compensation consultants, legal counsel and other advisors to the compensation committee. A compensation committee must have the authority to hire advisors and to have the public company fund reasonable compensation of such advisors.

Public companies will be required, once stock exchanges impose additional listing requirements under the Dodd-Frank Act, to implement "clawback" procedures for incentive compensation payments and to disclose the details of the procedures which allow recovery of incentive compensation that was paid on the basis of erroneous financial information necessitating a restatement due to material noncompliance with financial reporting requirements. This clawback policy is intended to apply to compensation paid within a three-year look-back window of the restatement and would cover all executives who received incentive awards.

Statistical Disclosure

The statistical disclosure relating to Park and its subsidiaries required under the SEC’s Industry Guide 3, “Statistical Disclosure by Bank Holding Companies,” is included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS” and in Note 1 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report, Note 5 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report, Note 6 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report, Note 7 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report, Note 12 of the Notes to Consolidated Financial Statements in Park’s 2015 Annual Report and Note 14 of the Notes to Consolidated Financial Statements in Park's 2015 Annual Report. This statistical disclosure is incorporated herein by reference.

Effect of Environmental Regulation

Compliance with federal, state and local provisions regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, has not had a material effect upon the capital expenditures, earnings or competitive position of Park and its subsidiaries. Park believes the nature of the operations of its subsidiaries has little, if any, environmental impact. Park, therefore, anticipates no material capital expenditures for environmental control facilities for its current fiscal year or for the foreseeable future.

Park believes its primary exposure to environmental risk is through the lending activities of its subsidiaries. In cases where management believes environmental risk potentially exists, Park’s subsidiaries mitigate their environmental risk exposures by requiring environmental site assessments at the time of loan origination to confirm collateral quality as to commercial real estate parcels posing higher than normal potential for environmental impact, as determined by reference to present and past uses of the subject property and adjacent sites. In addition, environmental assessments are typically required prior to any foreclosure activity involving non-residential real estate collateral.

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ITEM 1A. RISK FACTORS.

Cautionary Statement Regarding Forward-Looking Information

Certain statements contained in this Annual Report on Form 10-K which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements specifically identified as forward-looking statements within this document. In addition, certain statements in future filings by Park with the SEC, in press releases, and in oral and written statements made by or with the approval of Park which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include: (i) projections of income or expense, earnings per share, the payment or non-payment of dividends, capital structure and other financial items; (ii) statements of plans and objectives of Park or our management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying those statements.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those discussed in the forward-looking statements. We desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events, including those factors and events identified below. There is also the risk that Park’s management or Board of Directors incorrectly analyzes these risks and uncertainties or that the strategies Park develops to address them are unsuccessful.

Forward-looking statements speak only as of the date on which they are made, and, except as may be required by law, Park undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made to reflect unanticipated events. All subsequent written and oral forward-looking statements attributable to Park or any person acting on Park’s behalf are qualified in their entirety by the following cautionary statements.

Changes in economic and political conditions could adversely affect our earnings through declines in our borrowers’ ability to repay loans, the value of the collateral securing our loans, and demand deposits.

Our success depends, to a certain extent, upon economic and political conditions, local and national, as well as governmental fiscal and monetary policies. Conditions such as inflation, recession, unemployment, changes in interest rates, fiscal and monetary policy and other factors beyond our control may adversely affect our asset quality, deposit levels and loan demand and, therefore, our earnings and our capital. Economic turmoil in Europe and Asia and changes in oil production in the Middle East affect the economy and stock prices in the United States, which can affect our earnings and our capital as well as the ability of our customers to repay loans. Because we have a significant amount of real estate loans, decreases in real estate values could adversely affect the value of property used as collateral and our ability to sell the collateral upon foreclosure. Adverse changes in the economy may also have a negative effect on the ability of our borrowers to make timely repayments of their loans, which would have an adverse impact on our earnings and cash flows. The substantial majority of the loans made by our subsidiaries are to individuals and businesses in Ohio. Consequently, a significant decline in the economy in Ohio could have a materially adverse effect on our financial condition and results of operations.

Changes in the general economic conditions and real estate valuations in our primary market areas could adversely impact results of operations, financial condition and cash flows.

Our lending and deposit gathering activities are concentrated primarily in Ohio. Our success depends on the general economic conditions of these areas, particularly given that a significant portion of our lending relates to real estate located in these regions. Adverse changes in the regional and general economic conditions could reduce our growth rate, impair our ability to collect payments on loans, increase loan delinquencies, increase problem assets and foreclosures, increase claims and lawsuits, increase devaluations recognized within our OREO portfolio, decrease the demand for our products and services and decrease the value of collateral for loans, especially real estate values, which could have a material adverse effect on our financial condition, results of operations and cash flows.

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Legislative or regulatory changes or actions could adversely impact us or the businesses in which we are engaged.

The financial services industry is extensively regulated. We are subject to extensive state and federal regulation, supervision and legislation that govern almost all aspects of our operations. Laws and regulations may change from time to time and are primarily intended for the protection of consumers, depositors, borrowers, the FDIC’s Deposit Insurance Fund and the banking system as a whole, and not to benefit our shareholders. Regulations affecting banks and financial services businesses are undergoing continuous changes, and management cannot predict the effect of these changes. The impact of any changes to laws and regulations or other actions by regulatory agencies may negatively impact us or our ability to increase the value of our business. Regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the imposition of restrictions on the operation of an institution, the classification of assets held by an institution and the adequacy of an institution’s allowance for loan losses. Additionally, actions by regulatory agencies against us could cause us to devote significant time and resources to defending our business and may lead to penalties that materially affect us and our shareholders.

In light of current conditions in the global financial markets and the global economy, regulators have increased their focus on the regulation of the financial services industry. In the last several years, the United States Congress and the federal agencies regulating the financial services industry have acted on an unprecedented scale in responding to the stresses experienced in the global financial markets. Some of the laws enacted by the United States Congress and regulations promulgated by federal regulatory agencies subject us, and other financial institutions to which such laws and regulations apply, to additional restrictions, oversight and costs that may have an impact on our business, results of operations or the trading price of our Common Shares. In addition to laws, regulations and supervisory and enforcement actions directed at the operations of banks, proposals to reform the housing finance market consider winding down Fannie Mae and Freddie Mac, which could negatively affect our sales of loans.

In July 2013, Park's primary federal regulator, the Federal Reserve, published final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee's December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules substantially revise the risk-based capital requirements applicable to financial holding companies and other bank holding companies as well as depository institutions, including Park and Park National Bank, compared to the previous U.S. risk-based capital rules. The Basel III Capital Rules define the components of capital and address other issues affecting the numerator in banking institutions' regulatory capital ratios. The Basel III Capital Rules also address risk weights and other issues affecting the denominator in banking institutions' regulatory capital ratios and replace the existing risk-weighting approach, which was derived from Basel I capital accords of the Basel Committee, with a more risk-sensitive approach based, in part, on the standardized approach in the Basel Committee's 2004 “Basel II” capital accords. The Basel III Capital Rules also implement the requirements of Section 939A of the Dodd-Frank Act to remove references to credit ratings from the federal banking agencies' rules. The Basel III Capital Rules became effective for Park and Park National Bank on January 1, 2015 (subject to a phase-in period). Although the implementation of Basel III, once fully phased in, is not expected to have a material impact on Park's or Park National Bank's capital ratios, any future changes to capital requirements could have such an effect.

Recently-enacted and further financial regulatory reforms may adversely impact Park’s results of operations, financial condition or liquidity.

On July 21, 2010, the Dodd-Frank Act was signed into law. The Dodd-Frank Act represents a comprehensive overhaul of the financial services industry within the United States. There are a number of reform provisions that are significantly impacting the ways in which banks as well as financial holding companies and bank holding companies, including Park National Bank and Park, do business. A detailed discussion regarding the Dodd-Frank Act can be found under the caption “Supervision and Regulation of Park and its Subsidiaries” in “Item 1 – Business” of this Form 10-K.

Some provisions of the Dodd-Frank Act still have not been implemented and will require interpretation and rule making by federal regulators, including banking regulators and the SEC, as well as by the stock exchanges. In addition, the CFPB has begun to implement its authority, and its regulations and other authority affect Park's business. Park is closely monitoring all relevant sections of the Dodd-Frank Act to ensure continued compliance with laws and regulations. While the full effect of the Dodd-Frank Act on Park and our subsidiaries cannot currently be determined, the law and its implemented rules and regulations have already resulted in increased compliance costs and may result in increased fees paid to regulators, along with restrictions on the operations of Park and our subsidiaries, all of which may have a material adverse effect on Park’s

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operating results and financial condition. Also, we cannot predict whether there will be additional new laws and regulations that will affect Park and result in material adverse effects on our financial condition and results of operations.

We operate in a highly competitive environment, in terms of the products and services we offer and the geographic markets in which we conduct business, as well as in our labor markets where we compete for talented employees. Competition could adversely impact our customer acquisition, growth and retention, as well as our credit spreads and product pricing, causing us to lose market share and deposits and revenues.

We are subject to intense competition from various financial institutions as well as from non-bank entities that engage in many similar activities without being subject to bank regulatory supervision and restrictions. This competition is described in "Item 1 - Business" of this Annual Report on Form 10-K under the caption "Competition." Competition in our industry could intensify as a result of the increasing consolidation of financial services companies, in connection with current market conditions or otherwise. Consumers may also move money out of bank deposits in favor of other investments. Customers have increasingly used bill payment services that do not utilize banks. These trends may result in losses of deposits and fee income.

The principal bases for competition are pricing (including the interest rates charged on loans or paid on interest bearing deposits), product structure, the range of products and services offered, and the quality of customer service (including convenience and responsiveness to customer needs and concerns.) The ability to access and use technology is an increasingly important competitive factor in the financial services industry, and it is a critically important component to customer satisfaction as it affects our ability to deliver the right products and services.

Another increasingly competitive factor in the financial services industry is the competition to attract and retain talented employees across many of our business and support areas. This competition leads to increased expenses in many business areas and can also cause us to not pursue certain business opportunities.

A failure to adequately address the competitive pressures we face could make it harder for us to attract and retain customers across our businesses. On the other hand, meeting these competitive pressures could require us to incur significant additional expense or to accept risk beyond what we would otherwise view as desirable under the circumstances. In addition, in our interest rate sensitive businesses, pressures to increase rates on deposits or decrease rates on loans could reduce our net interest margin with a resulting negative impact on our net interest income.

Changes in interest rates could have a material adverse effect on our financial condition, results of operations and cash flows.

Our earnings and cash flows depend substantially on our interest rate spread, which is the difference between (i) the rates we earn on loans, investment securities and other interest earning assets and (ii) the interest rates we pay on deposits and our borrowings. These rates are highly sensitive to many factors beyond our control, including general economic conditions and the policies of various governmental and regulatory authorities. Changes in monetary policy influence the origination of loans, the prepayment speed of loans, the purchase of investments, the generation of deposits and rates of interest received and paid. While we have taken measures intended to manage the risks of operating in a changing interest rate environment, there can be no assurance that such measures will be effective in avoiding undue interest rate risk. Information pertaining to the impact changes in interest rates could have on our net income is included in Table 35 in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS,” and is incorporated herein by reference.  

We extend credit to a variety of customers based on internally set standards and the judgment of our loan officers and bank division presidents. We manage the credit risk through a program of underwriting standards, the review of certain credit decisions and an on-going process of assessing the quality of the credit already extended. Our credit standards and on-going process of credit assessment might not protect us from significant credit losses.

We take credit risk by virtue of making loans and leases, extending loan commitments and letters of credit and, to a lesser degree, purchasing non-governmental securities. Our exposure to credit risk is managed through the use of consistent underwriting standards that emphasize “in-market” lending while avoiding highly leveraged transactions as well as excessive industry and other concentrations. Our credit administration function employs risk management techniques to ensure that loans and leases adhere to corporate policy and problem loans and leases are promptly identified. While these procedures are designed to provide us with the information needed to implement policy adjustments where necessary, and to take proactive corrective actions, there can be no assurance that such measures will be effective in avoiding undue credit risk.

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Our business and financial results are subject to risks associated with the creditworthiness of our customers and counterparties.

Credit risk is inherent in the financial services business and results from, among other things, extending credit to customers, purchasing non-governmental securities, and entering into certain guarantee contracts. Credit risk is one of the most significant risks, particularly given the high percentage of our assets represented directly or indirectly by loans, and the importance of lending to our overall business. As discussed in the immediately preceding risk factor, we manage credit risk by assessing and monitoring the creditworthiness of our customers and by diversifying our loan portfolio. Many factors impact credit risk.

A borrower's ability to repay a loan can be adversely affected by individual factors, such as business performance, job losses or health issues. A weak or deteriorating economy and changes in the United States or global markets also could adversely impact the ability of our borrowers to repay outstanding loans. Any decrease in our borrowers' ability to repay loans would result in higher levels of nonperforming loans, net charge-offs and provision for loan losses.

Financial services institutions are interrelated as a result of trading, clearing and other relationships. We have exposure to many different industries and counterparties, and we routinely execute transactions with counterparties in the financial services industry. Many of these transactions expose us to credit risk in the event of default of our counterparty or client.

Despite maintaining a diversified portfolio, in the ordinary course of business, we may have concentrated credit exposure to a particular person or entity, industry or counterparty. Events adversely affecting specific customers, industries or markets, a decrease in the credit quality of a customer base or an adverse change in the risk profile of a market, industry or group of customers could adversely affect us.

Our credit risk may be exacerbated when collateral held by us to secure obligations to us cannot be realized upon or is liquidated at prices that are not sufficient to recover the full amount of the loan.

In part due to improvement in general economic conditions, as well as actions taken by Park to manage our portfolio, the provision for loan losses for Park's Ohio-based subsidiaries has declined since the end of the recent recession. If we were to experience higher levels of provision for loan losses, it could result in lower levels of net income.

Our allowance for loan losses may prove to be insufficient to absorb the probable, incurred losses in our loan portfolio.

Lending money is a substantial part of our business. However, every loan we make carries a risk of non-payment. This risk is affected by, among other things: the cash flow of the borrower and/or the project being financed; in the case of a collateralized loan, the changes and uncertainties as to the future value of the collateral; the credit history of a particular borrower; changes in economic and industry conditions; and the duration of the loan.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make significant estimates that affect the financial statements. One of our most critical estimates is the level of the allowance for loan losses. Due to the inherent nature of these estimates, we cannot provide absolute assurance that we will not be required to charge earnings for significant unexpected loan losses.

We maintain an allowance for loan losses that we believe is a reasonable estimate of the probable, incurred losses within the loan portfolio. We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of the real estate and other assets serving as collateral for the repayment of loans. Through a periodic review and consideration of the loan portfolio, management determines the amount of the allowance for loan losses by considering general market conditions, the credit quality of the loan portfolio, the collateral supporting the loans and the performance of customers relative to their financial obligations with us. The amount of future losses is susceptible to changes in economic, operating and other conditions, including changes in interest rates, which may be beyond our control, and these losses may exceed current estimates. We cannot fully predict the amount or timing of losses or whether the loan loss allowance will be adequate in the future. If our assumptions prove to be incorrect, our allowance for loan losses may not be sufficient to cover the probable, incurred losses in our loan portfolio, resulting in additions to the allowance for loan losses. Excessive loan losses and significant additions to our allowance for loan losses could have a material adverse impact on our financial condition and results of operations.

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In addition, bank regulators periodically review our allowance for loan losses and may require us to increase our provision for loan losses or recognize further loan charge-offs. Moreover, the Financial Accounting Standards Board may change its requirements for establishing the allowance for loan losses. Any significant increase in our allowance for loan losses or loan charge-offs as required by these regulatory authorities might have a material adverse effect on our financial condition and results of operations.

Deposit insurance premiums assessed on Park may increase and have a negative effect on Park’s results of operations.

The Deposit Insurance Fund (the “DIF”) maintained by the FDIC to resolve bank failures is funded by fees assessed on insured depository institutions. The costs of resolving bank failures have increased during the last few years and decreased the DIF balance. The FDIC collected a special assessment in 2009 to replenish the DIF and also required a prepayment of an estimated amount of future deposit insurance premiums. If the costs of future bank failures increase, deposit insurance premiums may also increase. In addition, the FDIC has proposed changes to its assessment system for banks with less than $10 billion in assets that have been insured by the FDIC for at least five years. It is uncertain how a final new assessment system might affect Park National Bank's deposit insurance premiums in the future.

We depend upon the accuracy and completeness of information about customers and counterparties.

In deciding whether to extend credit or enter into other transactions with customers and counterparties, we may rely on information provided to us by customers and counterparties, including financial statements and other financial information. We may also rely on representations of customers and counterparties as to the accuracy and completeness of that information and, with respect to financial statements, on reports of independent auditors. For example, in deciding whether to extend credit to a business, we may assume that the customer’s audited financial statements conform with GAAP and present fairly, in all material respects, the financial condition, results of operations and cash flows of the customer. We may also rely on the audit report covering those financial statements. Our financial condition, results of operations and cash flows could be negatively impacted to the extent that we rely on financial statements that do not comply with GAAP or on financial statements and other financial information that are materially misleading.

We may be required to repurchase loans we have sold or indemnify loan purchasers under the terms of the sale agreements, which could adversely affect our liquidity, results of operations and financial condition.

When we sell a mortgage loan, we may agree to repurchase or substitute a mortgage loan if we are later found to have breached any representation or warranty we made about the loan or if the borrower is later found to have committed fraud in connection with the origination of the loan. While we have underwriting policies and procedures designed to avoid breaches of representations and warranties as well as borrower fraud, there can be no assurance that no breach or fraud will ever occur. Required repurchases, substitutions or indemnifications could have an adverse effect on our liquidity, results of operations and financial condition.

We are exposed to operational risk.

Similar to any large organization, we are exposed to many types of operational risk, including reputational risk, legal and compliance risk, the risk of fraud or theft by employees or outsiders, unauthorized transactions by employees or operational errors, including clerical or record-keeping errors or those resulting from faulty or disabled computer or telecommunications systems.

We may be subject to disruptions of our operating systems arising from events that are wholly or partially beyond our control, which may include, for example, computer viruses, cyber-attacks, spikes in transaction volume and/or customer activity, electrical or telecommunications outages, or natural disasters. Although we have programs in place related to business continuity, disaster recovery and information security to maintain the confidentiality, integrity and availability of our systems, business applications and customer information, such disruptions may give rise to interruptions in service to customers, loss of data privacy and loss or liability to us.

Any failure or interruption in our operations or information systems, or any security or data breach, could cause reputational damage, jeopardize the confidentiality of customer information, result in a loss of customer business, subject us to regulatory intervention or expose us to civil litigation and financial loss or liability, any of which could have a material adverse effect on us.

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Negative public opinion can result from our actual or alleged conduct in any number of activities, including lending practices, corporate governance and acquisitions, and from actions taken by governmental regulators and community organizations in response to those activities. Negative public opinion can adversely affect our ability to attract and keep customers and can expose us to potential litigation and regulatory action.

Given the volume of transactions we process, certain errors may be repeated or compounded before they are discovered and successfully rectified. Our necessary dependence upon automated systems to record and process our transaction volume may further increase the risk that technical system flaws or employee tampering or manipulation of those systems will result in losses that are difficult to detect. We may also be subject to disruptions of our operating systems arising from events that are wholly or partially beyond our control (for example, computer viruses or electrical or telecommunications outages), which may give rise to disruption of service to customers and to financial loss or liability. We are further exposed to the risk that our external vendors may be unable to fulfill their contractual obligations (or will be subject to the same risk of fraud or operational errors by their respective employees as we are) and to the risk that our (or our vendors’) business continuity and data security systems prove to be inadequate.

Our business could be adversely affected by third-party service providers, data breaches and cyber-attacks.

We face the risk of operational disruption, failure or capacity constraints due to our dependency on third-party vendors for components of our business infrastructure. While we have selected these third-party vendors through our vendor management process, it does not control their operations. As such, any failure on the part of these business partners to perform their various responsibilities could also adversely affect our business and operations.

Further, we may be affected by data breaches at retailers and other third parties who participate in data interchanges with us and our customers that involve the theft of customer credit and debit card data, which may include the theft of our debit card PIN numbers and commercial card information used to make purchases at such retailers and other third parties. Such data breaches could result in us incurring significant expenses to reissue debit cards and cover losses, which could result in a material adverse effect on our results of operations.

Our assets which are at risk for cyber-attacks include financial assets and non-public information belonging to customers. We use several third-party vendors who have access to our assets via electronic media. Certain cyber security risks arise due to this access, including cyber espionage, blackmail, ransom, and theft. We employ many preventive and detective controls to protect our assets, and provide mandatory recurring information security training to all employees. To date, we have not experienced any material losses relating to cyber-attacks or other information security breaches, but there can be no assurance that we will not suffer such attacks or attempted breaches, or incur resulting losses in the future. Our risk and exposure to these matters remains heightened because of, among other things, the evolving nature of these threats, our plans to continue to implement Internet and mobile banking to meet customer demand, and the current economic and political environment. As cyber and other data security threats continue to evolve, we may be required to expend significant additional resources to continue to modify and enhance our protective measures or to investigate and remediate any security vulnerabilities.

Unauthorized disclosure of sensitive or confidential client or customer information, whether through a breach of our computer systems or otherwise, could severely harm our business.

As part of our financial institution business, we collect, process and retain sensitive and confidential client and customer information on behalf of our subsidiaries and other third parties. Despite the security measures we have in place, our facilities and systems, and those of our third-party service providers, may be vulnerable to security breaches, acts of vandalism, computer viruses, misplaced or lost data, programming and/or human errors or other similar events. If information security is breached, information can be lost or misappropriated, resulting in financial loss or costs to us. Any security breach involving confidential customer information, whether by us or by our vendors, could severely damage our reputation, expose us to the risks of litigation and liability or disrupt our operations and have a material adverse effect on our business.

We could suffer a material adverse impact from interruptions in the effective operation of, or security breaches affecting, our computer systems.

We rely heavily on information systems to conduct our business and to process, record, and monitor our transactions. Risks to the systems result from a variety of factors, including the potential for bad acts on the part of hackers, criminals, employees and others. As one example, in recent years, some banks have experienced denial of service attacks in which individuals or organizations flood the bank’s website with extraordinarily high volumes of traffic, with the goal and effect of disrupting the ability of the bank to process transactions. We are also at risk for the impact of natural disasters, terrorism and

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international hostilities on our systems or for the effects of outages or other failures involving power or communications systems operated by others. These risks also arise from the same types of threats to businesses with which we deal.

Potential adverse consequences of attacks on our computer systems or other threats include damage to our reputation, loss of customer business, litigation and increased regulatory scrutiny, which might also result in financial loss and require additional efforts and expense to attempt to prevent such adverse consequences in the future.  

Changes in accounting standards, policies, estimates or procedures could impact our reported financial condition or results of operations.

The accounting standard setters, including the Financial Accounting Standards Board, the SEC and other regulatory bodies, periodically change the financial accounting and reporting guidance that governs the preparation of our consolidated financial statements. The pace of change continues to accelerate and changes in accounting standards can be hard to predict and could materially impact how we record and report our financial condition and results of operations. In some cases, we could be required to apply new or revised guidance retroactively, resulting in the restatement of prior period financial statements.

The preparation of consolidated financial statements in conformity with GAAP requires management to make significant estimates that affect the financial statements. Due to the inherent nature of these estimates, actual results may vary materially from management’s estimates. Additional information regarding Park’s critical accounting policies and the sensitivity of estimates can be found in the section captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS - CRITICAL ACCOUNTING POLICIES” in Park’s 2015 Annual Report.

We may be a defendant from time to time in the future in a variety of litigation and other actions, which could have a material adverse effect on our financial condition, results of operations and cash flows.

We and our subsidiaries may be involved from time to time in the future in a variety of litigation arising out of our business. The risk of litigation increases in times of increased troubled loan collection activity. Our insurance may not cover all claims that may be asserted against us, and any claims asserted against us, regardless of merit or eventual outcome, may harm our reputation. Should the ultimate judgments or settlements in any litigation exceed our insurance coverage, they could have a material adverse effect on our financial condition, results of operations and cash flows. In addition, we may not be able to obtain appropriate types or levels of insurance in the future, nor may we be able to obtain adequate replacement policies with acceptable terms, if at all.

A default by another larger financial institution could adversely affect financial markets generally.

     The commercial soundness of many financial institutions may be closely interrelated as a result of relationships between and among the institutions. As a result, concerns about, or a default or threatened default by, one institution could lead to significant marketwide liquidity and credit problems, losses or defaults by other institutions. This is sometimes referred to as “systemic risk” and may adversely affect our business.

We may elect or be compelled to seek additional capital in the future, but that capital may not be available when it is needed.

     We are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations. Federal banking agencies have adopted extensive changes to their capital requirements, including raising required amounts and eliminating the inclusion of certain instruments from the calculation of capital. If we experience significant loan losses, additional capital may need to be infused. In addition, we may elect to raise additional capital to support our business or to finance acquisitions, if any, or we may otherwise elect or be required to raise additional capital. Our ability to raise additional capital, if needed, will depend on our financial performance, conditions in the capital markets, economic conditions and a number of other factors, many of which are outside our control. Accordingly, there can be no assurance that we can raise additional capital if needed or on terms acceptable to us. If we cannot raise additional capital when needed, it may have a material adverse effect on our financial condition, results of operations and prospects.

We may not pay dividends on our Common Shares.

Although we have paid dividends on our Common Shares in the past, we may reduce or eliminate dividends in the future, at the discretion of the Board of Directors, for any reason, including a determination to use funds for other purposes or due to regulatory constraints. As a financial holding company, we are a legal entity separate and distinct from our subsidiaries and affiliates. Our principal source of funds to pay dividends on our Common Shares and service our debt is dividends from these subsidiaries. In the event our subsidiaries become unable to pay dividends to us, we may not be able to service our debt,

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pay our other obligations or pay dividends on our Common Shares. Accordingly, our inability to receive dividends from our subsidiaries could also have a material adverse effect on our business, financial condition and results of operations.

Various federal and state statutory provisions and regulations limit the amount of dividends that Park National Bank and our other subsidiaries may pay to us without regulatory approval. Park National Bank generally may not, without prior regulatory approval, pay a dividend in an amount greater than its undivided profits. In addition, the prior approval of the OCC is required for the payment of a dividend by Park National Bank if the total of all dividends declared in a calendar year would exceed the total of its net income for the year combined with its retained net income for the two preceding years. The Federal Reserve Board and the OCC have issued policy statements that provide that insured banks as well as financial holding companies and other bank holding companies should generally only pay dividends out of current operating earnings. Thus, the ability of Park National Bank to pay dividends in the future is currently influenced, and could be further influenced, by bank regulatory policies and capital guidelines and may restrict our ability to declare and pay dividends.

Payment of dividends could also be subject to regulatory limitations if Park National Bank were to become “undercapitalized” for purposes of the applicable “prompt corrective action” regulations. “Undercapitalized” is currently defined as having a total risk-based capital ratio of less than 8.0%, a Tier 1 risk-based capital ratio of less than 6.0%, a common equity tier 1 capital ratio of less than 4.50%, or a core capital, or leverage, ratio of less than 4.0%. Throughout 2015 and 2016 to date, Park National Bank has been in compliance with all regulatory capital requirements and had sufficient capital under the “prompt corrective action” regulations to be deemed “well-capitalized.”

If any of our subsidiaries becomes insolvent, the direct creditors of that subsidiary will have a prior claim on that subsidiary’s assets. Our rights and the rights of our creditors will be subject to that prior claim, unless we are also a direct creditor of that subsidiary.

Derivative transactions may expose us to unexpected risk and potential losses.

We are party to a number of derivative transactions. Many of these derivative instruments are individually negotiated and non-standardized, which can make exiting, transferring or settling the position difficult. We carry borrowings which contain embedded derivatives. These borrowing arrangements require that we deliver underlying securities to the counterparty as collateral. We are dependent on the creditworthiness of the counterparties and are therefore susceptible to credit and operational risk in these situations.

Derivative contracts and other transactions entered into with third parties are not always confirmed by the counterparties on a timely basis. While the transaction remains unconfirmed, we are subject to heightened credit and operational risk and, in the event of a default, may find it more difficult to enforce the contract. In addition, as new and more complex derivative products are created, covering a wider array of underlying credit and other instruments, disputes about the terms of the underlying contracts could arise, which could impair our ability to effectively manage our risk exposures from these products and subject us to increased costs. Any regulatory effort to create an exchange or trading platform for credit derivatives and other over-the-counter derivative contracts, or a market shift toward standardized derivatives, could reduce the risk associated with such transactions, but under certain circumstances could also limit our ability to develop derivatives that best suit the needs of our clients and ourselves and adversely affect our profitability.

Changes in tax laws could adversely affect our performance.

We are subject to extensive federal, state and local taxes, including income, excise, sales/use, payroll, franchise, withholding and ad valorem taxes. Changes to our taxes could have a material adverse effect on our results of operations. In addition, our customers are subject to a wide variety of federal, state and local taxes. Changes in taxes paid by our customers may adversely affect their ability to purchase homes or consumer products, which could adversely affect their demand for our loans and deposit products. In addition, such negative effects on our customers could result in defaults on the loans we have made and decrease the value of mortgage-backed securities in which we have invested.

The effect of changes to the healthcare laws in the United States may increase the number of employees who choose to participate in our healthcare plans, which may significantly increase our healthcare costs and negatively impact our financial results.

We offer healthcare coverage to our eligible employees with a portion of the cost subsidized by Park. With recent changes to the healthcare laws in the United States, more of our employees may choose to participate in our health insurance plans, which could increase our costs for such coverage and adversely impact our costs of operations.

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Future expansion may adversely affect our financial condition and results of operations as well as dilute the interests of our shareholders and negatively affect the price of our Common Shares.

We may acquire other financial institutions, or branches or assets of other financial institutions, in the future. We may also open new branches and enter into new lines of business or offer new products or services. Any such expansion of our business will involve a number of expenses and risks, which may include:

• the time and expense associated with identifying and evaluating potential expansions;

• the potential inaccuracy of estimates and judgments used to evaluate credit, operations, management and market risk with respect to target institutions;

• the time and costs of evaluating new markets, hiring local management and opening new offices, and the delay between commencing these activities and the generation of profits from the expansion;

• our financing of the expansion;

• the diversion of management’s attention to the negotiation of a transaction and the integration of the operations and personnel of the combining businesses;

• entry into unfamiliar markets;

• the introduction of new products and services into our existing business;

• the incurrence and possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on our results of operations; and

• the risk of loss of key employees and customers.

We may incur substantial costs to expand, and we can give no assurance that such expansion will result in the levels of profits we expect. Neither can we assure that integration efforts for any future acquisitions will be successful. We may issue equity securities in connection with acquisitions, which could dilute the economic and voting interests of our existing shareholders.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

No response required.

ITEM 2. PROPERTIES.

Park’s principal executive offices are located at 50 North Third Street, Newark, Ohio 43055.

Park National Bank

As of the date of this Annual Report on Form 10-K, Park National Bank, its divisions and its subsidiary Scope Leasing, Inc. have a total of 116 financial service offices in Ohio. Park National Bank has 6 financial service offices (including its main office) and 3 operations centers in Newark in Licking County. In addition, within Ohio, Park National Bank has:

• financial service offices in Ashland, Loudonville and Perrysville in Ashland County;

• a financial service office in Athens in Athens County;

• a financial service office in West Chester in Butler County;

• financial service offices in Urbana (two offices), Mechanicsburg and North Lewisburg in Champaign County;

• financial service offices in Springfield (six offices), Enon, Medway, New Carlisle (two offices) and South Charleston in Clark County;

• financial service offices in Amelia (two offices), Cincinnati, Milford, New Richmond and Owensville in Clermont County;

• a financial service office in Coshocton in Coshocton County;

• financial service offices in Bucyrus, Crestline and Galion in Crawford County;

• financial service offices in Greenville (four offices), Arcanum and Versailles in Darke County;

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• financial service offices in Baltimore, Pickerington and Lancaster (six offices) in Fairfield County;

• financial service offices in Canal Winchester, Columbus, Gahanna, Reynoldsburg and Worthington in Franklin County;

• financial service offices in Jamestown and Xenia (two offices) in Greene County;

• financial service offices in Cincinnati (two offices) in Hamilton County;

• a financial service office in Logan in Hocking County;

• a financial service office in Millersburg in Holmes County;

• financial service offices (3 offices) and an operations center in Mount Vernon as well as financial service offices in Centerburg, Danville and Fredericktown, all in Knox County;

• financial service offices in Granville, Heath (two offices), Hebron, Johnstown, Pataskala, and Utica in Licking County;

• a financial service office in Plain City in Madison County;

• financial service offices in Caledonia, Marion and Prospect in Marion County;

• financial service offices in Celina and Fort Recovery in Mercer County;

• financial service offices (three offices) and an operations center in Piqua as well as financial service offices in Tipp City and Troy, all in Miami County;

• a financial service office in Mount Gilead in Morrow County;

• financial service offices in Zanesville (eight offices), New Concord and Dresden in Muskingum County;

• a financial service office in New Lexington in Perry County;

• financial service offices in Bellville, Mansfield (eight offices), Butler, Lexington, Ontario and Shelby in Richland County;

• financial service offices in Newcomerstown and New Philadelphia in Tuscarawas County and

• a financial service office in Springboro in Warren County; and

• a financial service office in Wooster in Wayne County.

The financial service offices in Athens, Coshocton, Hocking, Muskingum, Perry and Tuscarawas Counties comprise the Century National Bank Division. The financial service offices in Canal Winchester and Reynoldsburg in Franklin County and in Fairfield County comprise the Fairfield National Bank Division. The financial service offices in Ashland County comprise the Farmers Bank Division. The financial service offices in Bellville in Richland County and in Holmes, Knox, Morrow and Wayne Counties comprise the First-Knox National Bank Division. The financial service offices in Butler, Clermont and Hamilton Counties in Ohio comprise The Park National Bank of Southwest Ohio & Northern Kentucky Division. The financial service offices in Richland County (except the Bellville office) comprise the Richland Bank Division. The financial service offices in Darke and Mercer Counties comprise the Second National Bank Division. The financial service offices in Champaign, Clark, Greene, Madison and Warren Counties comprise the Security National Bank Division. The financial service offices in Crawford and Marion Counties comprise the United Bank, N.A. Division. The financial service offices in Miami County comprise the Unity National Bank Division. Of the financial service offices described above, 30 are leased and the remainder are owned. Park National Bank also operates 28 off-site automated teller machines.

Scope Leasing, Inc. has an office located in Columbus in Franklin County, Ohio, which it leases.

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Guardian Finance

As of the date of this Annual Report on Form 10-K, Guardian Finance has a total of five financial service offices, all of which are located in Ohio. Guardian Finance has its main office in Hilliard in Franklin County, a financial service office in Springfield in Clark County, a financial service office in Lancaster in Fairfield County where it leases space from the Fairfield National Bank Division of Park National Bank, a financial service office in Heath in Licking County, and a financial service office in Centerville in Montgomery County. All of Guardian Finance’s financial service offices are leased.

Park Title Agency

Park Title Agency has one office located in Newark in Licking County, Ohio, which it leases from Park National Bank.

SE Property Holdings, LLC

SEPH has one office located in Newark in Licking County, Ohio, which it leases.

ITEM 3. LEGAL PROCEEDINGS.

There are no pending legal proceedings to which Park or any of its subsidiaries is a party or to which any of their property is subject, except for routine legal proceedings to which Park’s subsidiaries are parties incidental to their respective businesses or operations. Park considers none of those proceedings to be material.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

The information called for in this Item 5 by Items 201(a) through 201(c) of SEC Regulation S-K is incorporated herein by reference from “Table 39 – Market and Dividend Information” and the accompanying disclosure in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS.”

The following table provides information regarding purchases of Park's Common Shares made by or on behalf of Park or any "affiliated purchaser" as defined in Rule 10b-18(a)(3) under the Exchange Act during the fiscal quarter ended December 31, 2015. The table also provides information concerning the maximum number of Common Shares that may be purchased under Park’s previously-announced stock repurchase authorization to fund the Park National Corporation 2013 Long-Term Incentive Plan (the "2013 Incentive Plan"):

Period	Total Number of Common Shares Purchased (1)	Average Price Paid per Common Share		Total Number of Common Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Number of Common Shares that May Yet Be Purchased under the Plans or Programs (2)
October 1 through October 31, 2015	—	—		—	508,050
November 1 through November 30, 2015	—	—		—	508,050
December 1 through December 31, 2015	20,000	$	88.89	20,000	488,050
Total	20,000	$	88.89	20,000

(1) All of the Common Shares reported were purchased in the open market under Park's publicly announced stock repurchase authorization to fund the 2013 Incentive Plan.

(2) The number shown represents, as of the end of each period, the maximum number of Common Shares that may yet be purchased as part of Park’s publicly announced stock repurchase authorization to fund the 2013 Incentive Plan which became effective on April 22, 2013.

At the 2013 Annual Meeting of Shareholders held on April 22, 2013, Park's shareholders approved the 2013 Incentive Plan. The aggregate number of Common Shares with respect to which awards may be granted under the 2013 Incentive Plan will be 600,000. The Common Shares to be issued and delivered under the 2013 Incentive Plan may consist of either Common Shares currently held or Common Shares subsequently acquired by Park as treasury shares. No newly-issued Common Shares will be delivered under the 2013 Incentive Plan. On April 22, 2013, Park's Board of Directors authorized the purchase, from time to time, of up to 600,000 Park Common Shares to be held as treasury shares for subsequent issuance and delivery under the 2013 Incentive Plan. As of December 31, 2015, 111,950 Common Shares had been purchased for this purpose.

ITEM 6. SELECTED FINANCIAL DATA.

The information called for in this Item 6 is incorporated herein by reference from “Table 37 – Consolidated Five-Year Selected Financial Data” and the accompanying disclosure in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS.”

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The information called for in this Item 7 is incorporated herein by reference from the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS.”

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As noted in Table 16 included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS,” Park’s tax equivalent net interest margin declined by 6 basis points in 2014 and by 16 basis points in 2015. Consistently, over the last several years, Park’s earnings simulation model has projected that changes in interest rates would have only a small impact on net income and the tax equivalent net interest margin. The tax equivalent net interest margin was 3.39%, 3.55% and 3.61% for each of the fiscal years ended December 31, 2015, 2014 and 2013 respectively. The discussion of interest rate sensitivity included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS – CAPITAL RESOURCES – Liquidity and Interest Rate Sensitivity Management” is incorporated herein by reference. In addition, the discussion of Park’s commitments, contingent liabilities and off-balance sheet arrangements included in Park’s 2015 Annual Report under the caption “MANAGEMENT'S DISCUSSION AND ANALYSIS – CONTRACTUAL OBLIGATIONS – Commitments, Contingent Liabilities, and Off-Balance Sheet Arrangements,” and in Note 23 of the Notes to Consolidated Financial Statements included in Park’s 2015 Annual Report, is incorporated herein by reference.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The Consolidated Balance Sheets of Park and its subsidiaries at December 31, 2015 and 2014, the related Consolidated Statements of Income, of Comprehensive Income, of Changes in Shareholders’ Equity and of Cash Flows for the years ended December 31, 2015, 2014 and 2013, the related Notes to Consolidated Financial Statements and the Report of Independent Registered Public Accounting Firm (Crowe Horwath LLP) in Park’s 2015 Annual Report, are incorporated herein by reference. Quarterly Financial Data provided in “Table 38 – Quarterly Financial Data” and the accompanying disclosure included in the section of Park’s 2015 Annual Report captioned “MANAGEMENT'S DISCUSSION AND ANALYSIS,” is also incorporated herein by reference.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

No response required.

ITEM 9A. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

With the participation of the Chief Executive Officer and President (the principal executive officer) and the Chief Financial Officer, Secretary and Treasurer (the principal financial officer) of Park, Park’s management has evaluated the effectiveness of Park’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the fiscal year covered by this Annual Report on Form 10-K. Based on that evaluation, Park’s Chief Executive Officer and President and Park’s Chief Financial Officer, Secretary and Treasurer have concluded that:

• information required to be disclosed by Park in this Annual Report on Form 10-K and the other reports that Park files or submits under the Exchange Act would be accumulated and communicated to Park’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure;

• information required to be disclosed by Park in this Annual Report on Form 10-K and the other reports that Park files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and

• Park’s disclosure controls and procedures were effective as of the end of the fiscal year covered by this Annual Report on Form 10-K.

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Management’s Annual Report on Internal Control over Financial Reporting

The “MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING” included in Park’s 2015 Annual Report is incorporated herein by reference.

Attestation Report of the Registered Public Accounting Firm

The “REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM” included in Park’s 2015 Annual Report is incorporated herein by reference.

Changes in Internal Control over Financial Reporting

There were no changes in Park’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during Park’s fiscal quarter ended December 31, 2015, that have materially affected, or are reasonably likely to materially affect, Park’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION.

No response required.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

Directors, Executive Officers and Persons Nominated or Chosen to Become Directors or Executive Officers

The information required by Item 401 of SEC Regulation S-K concerning the directors of Park and the nominees for election as directors of Park at the Annual Meeting of Shareholders to be held on April 25, 2016 (the “2016 Annual Meeting”) is incorporated herein by reference from the disclosure to be included under the caption “ELECTION OF DIRECTORS (Proposal 1)” in Park’s definitive Proxy Statement relating to the 2016 Annual Meeting to be filed pursuant to SEC Regulation 14A (“Park’s 2016 Proxy Statement”).

The information required by Item 401 of SEC Regulation S-K concerning the executive officers of Park is incorporated herein by reference from the disclosure to be included under the caption “EXECUTIVE OFFICERS” in Park’s 2016 Proxy Statement.

Compliance with Section 16(a) of the Exchange Act

The information required by Item 405 of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “BENEFICIAL OWNERSHIP OF PARK COMMON SHARES – Section 16(a) Beneficial Ownership Reporting Compliance” in Park’s 2016 Proxy Statement.

Committee Charters; Corporate Governance Guidelines; Code of Business Conduct and Ethics

Park’s Board of Directors has adopted charters for each of the Audit Committee, the Compensation Committee, the Executive Committee, the Investment Committee, the Nominating and Corporate Governance Committee and the Risk Committee. Park's Board of Directors has also adopted Corporate Governance Guidelines which are included as Exhibit A to the charter of the Nominating and Corporate Governance Committee.

In accordance with the requirements of Section 807 of the NYSE MKT Company Guide, the Board of Directors of Park has adopted a Code of Business Conduct and Ethics covering the directors, officers and employees of Park and its affiliates, including Park’s Chairman of the Board, Park's Chief Executive Officer and President (the principal executive officer), Park’s Chief Financial Officer, Secretary and Treasurer (the principal financial officer) and Park’s Chief Accounting Officer (the principal accounting officer). Park intends to disclose the following events, if they occur, in a current report on Form 8-K within four business days following their occurrence: (A) the date and nature of any amendment to a provision of Park’s Code of Business Conduct and Ethics that (i) applies to Park’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, (ii) relates to any element of the code of ethics definition enumerated in Item 406(b) of SEC Regulation S-K, and (iii) is not a technical, administrative or other non-substantive amendment; and (B) a description of any waiver (including the nature of the waiver, the name of the person to

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whom the waiver was granted and the date of the waiver), including an implicit waiver, from a provision of the Code of Business Conduct and Ethics granted to Park’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions that relates to one or more of the elements of the code of ethics definition set forth in Item 406(b) of SEC Regulation S-K. In addition, Park will disclose any waivers from the provisions of the Code of Business Conduct and Ethics granted to a director or executive officer of Park in a current report on Form 8-K within four business days following their occurrence in accordance with the requirements of Section 807 of the NYSE MKT Company Guide.

The text of each of the Code of Business Conduct and Ethics, the Audit Committee Charter, the Compensation Committee Charter, the Executive Committee Charter, the Investment Committee Charter, the Nominating and Corporate Governance Committee Charter (including the Corporate Governance Guidelines) and the Risk Committee Charter is posted on the “Governance Documents” section of the “Investor Relations” page of Park’s Internet site located at http://www.parknationalcorp.com. Interested persons may also obtain copies of the Code of Business Conduct and Ethics, the Audit Committee Charter, the Compensation Committee Charter, the Executive Committee Charter, the Investment Committee Charter, the Nominating and Corporate Governance Committee Charter and the Risk Committee Charter, without charge, by writing to the Chief Executive Officer and President of Park at Park National Corporation, 50 North Third Street, P.O. Box 3500, Newark, Ohio 43058-3500, Attention: David L. Trautman.

Procedures for Recommending Director Nominees

Information concerning the procedures by which shareholders of Park may recommend nominees to Park’s Board of Directors is incorporated herein by reference from the disclosure to be included under the caption “CORPORATE GOVERNANCE – Nominating Procedures” in Park’s 2016 Proxy Statement. These procedures have not materially changed from those described in Park’s definitive Proxy Statement for the 2015 Annual Meeting of Shareholders held on April 27, 2015.

Audit Committee

The information required by Items 407(d)(4) and 407(d)(5) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “STRUCTURE AND MEETINGS OF BOARD OF DIRECTORS – Committees of the Board – Audit Committee” in Park’s 2016 Proxy Statement.

ITEM 11. EXECUTIVE COMPENSATION.

The information required by Item 402 of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the captions “EXECUTIVE COMPENSATION” and “DIRECTOR COMPENSATION” in Park’s 2016 Proxy Statement.

The information required by Item 407(e)(4) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION” in Park’s 2016 Proxy Statement.

The information required by Item 407(e)(5) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “EXECUTIVE COMPENSATION – Compensation Committee Report” in Park’s 2016 Proxy Statement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

Beneficial Ownership of Common Shares of Park

The information required by Item 403 of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “BENEFICIAL OWNERSHIP OF PARK COMMON SHARES” in Park’s 2016 Proxy Statement.

Equity Compensation Plan Information

The information required by Item 201(d) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption "EQUITY COMPENSATION PLAN INFORMATION" in Park's 2016 Proxy Statement.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

Certain Relationships and Related Person Transactions

The information required by Item 404 of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the captions “CORPORATE GOVERNANCE – Transactions with Related Persons” and “COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION” in Park’s 2016 Proxy Statement.

Director Independence

The information required by Item 407(a) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “CORPORATE GOVERNANCE – Independence of Directors” in Park’s 2016 Proxy Statement.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The information called for in this Item 14 is incorporated herein by reference from the disclosure to be included under the captions “AUDIT COMMITTEE MATTERS – Pre-Approval of Services Performed by Independent Registered Public Accounting Firm” and “AUDIT COMMITTEE MATTERS – Fees of Independent Registered Public Accounting Firm” in Park’s 2016 Proxy Statement.

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

(a)(1)     Financial Statements.

The consolidated financial statements (and report thereon) listed below are incorporated herein by reference from Park's 2015 Annual Report as noted:

Report of Independent Registered Public Accounting Firm (Crowe Horwath LLP) -- Incorporated herein by reference from Park's 2015 Annual Report

Consolidated Balance Sheets at December 31, 2015 and 2014 -- Incorporated herein by reference from Park's 2015 Annual Report

Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 -- Incorporated herein by reference from Park's 2015 Annual Report

Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013-- Incorporated herein by reference from Park's 2015 Annual Report

Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2015, 2014 and 2013 -- Incorporated herein by reference from Park's 2015 Annual Report

Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013 -- Incorporated herein by reference from Park's 2015 Annual Report

Notes to Consolidated Financial Statements -- Incorporated herein by reference from Park's 2015 Annual Report

(a)(2)     Financial Statement Schedules.

All schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instructions or are inapplicable and have been omitted.

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(a)(3)     Exhibits.

The documents listed below are filed/furnished with this Annual Report on Form 10-K as exhibits or incorporated into this Annual Report on Form 10-K by reference as noted:

Exhibit No.Description of Exhibit

3.1(a) Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on March 24, 1992 (incorporated herein by reference to Exhibit 3(a) to Park National Corporation's Form 8-B, filed on May 20, 1992 (File No. 0-18772) (“Park's Form 8-B”))

3.1(b) Certificate of Amendment to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on May 6, 1993 (incorporated herein by reference to Exhibit 3(b) to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 0-18772))

3.1(c) Certificate of Amendment to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on April 16, 1996 (incorporated herein by reference to Exhibit 3(a) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1996 (File No. 1-13006))

3.1(d) Certificate of Amendment by Shareholders to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on April 22, 1997 (incorporated herein by reference to Exhibit 3(a)(1) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1997 (File No. 1-13006) (“Park's June 30, 1997 Form 10-Q”))

3.1(e) Certificate of Amendment by Shareholders as filed with the Secretary of State of the State of Ohio on December 18, 2008 in order to evidence the adoption by the shareholders of Park National Corporation on December 18, 2008 of an amendment to Article FOURTH of Park National Corporation's Articles of Incorporation to authorize Park National Corporation to issue up to 200,000 preferred shares, without par value (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed December 19, 2008 (File No. 1-13006))

3.1(f) Certificate of Amendment by Directors to Articles as filed with the Secretary of State of the State of Ohio on December 19, 2008, evidencing adoption of amendment by Board of Directors of Park National Corporation to Article FOURTH of Articles of Incorporation to establish express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of Park National Corporation (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed December 23, 2008 (File No. 1-13006) (“Park's December 23, 2008 Form 8-K”))

3.1(g) Certificate of Amendment by Shareholders as filed with the Secretary of State of the State of Ohio on April 18, 2011 in order to evidence the adoption by Park National Corporation's shareholders of an amendment to Article SIXTH of Park National Corporation's Articles of Incorporation in order to provide that shareholders do not have preemptive rights (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed April 19, 2011 (File No. 1-13006))

3.1(h) Articles of Incorporation of Park National Corporation (reflecting all amendments) [for SEC reporting compliance purposes only - not filed with Ohio Secretary of State] (incorporated herein by reference to Exhibit 3.1(h) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011 (File No. 1-13006))

3.2(a) Regulations of Park National Corporation (incorporated herein by reference to Exhibit 3(b) to Park's Form 8-B)

3.2(b) Certified Resolution regarding Adoption of Amendment to Subsection 2.02(A) of the Regulations of Park National Corporation by Shareholders on April 21, 1997 (incorporated herein by reference to Exhibit 3(b)(1) to Park's June 30, 1997 Form 10-Q)

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3.2(c) Certificate Regarding Adoption of Amendments to Sections 1.04 and 1.11 of Park National Corporation's Regulations by the Shareholders on April 17, 2006 (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed on April 18, 2006 (File No. 1-13006))

3.2(d) Certificate Regarding Adoption by the Shareholders of Park National Corporation on April 21, 2008 of Amendment to Regulations to Add New Section 5.10 to Article FIVE (incorporated herein by reference to Exhibit 3.2(d) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008 (File No. 1-13006) (“Park's March 31, 2008 Form 10-Q”))

3.2(e) Regulations of Park National Corporation (reflecting all amendments) [For purposes of SEC reporting compliance only] (incorporated herein by reference to Exhibit 3.2 (e) to Park's March 31, 2008 Form 10-Q)

4.1(a) Junior Subordinated Indenture, dated as of December 5, 2005, between Vision Bancshares, Inc. and Wilmington Trust Company, as Trustee (incorporated herein by reference to Exhibit 10.16 to Vision Bancshares, Inc.'s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))

4.1(b) First Supplemental Indenture, dated to be effective as of 6:00 p.m., Eastern Standard Time, on March 9, 2007, among Wilmington Trust Company, as Trustee; Park National Corporation; and Vision Bancshares, Inc. (incorporated herein by reference to Exhibit 4.1(b) to Park National Corporation's Current Report on Form 8-K dated and filed March 15, 2007 (File No. 1-13006) (“Park's March 15, 2007 Form 8-K”))

4.2(a) Amended and Restated Trust Agreement, dated as of December 5, 2005, among Vision Bancshares, Inc., as Depositor; Wilmington Trust Company, as Property Trustee and as Delaware Trustee; and the Administrative Trustees named therein, in respect of Vision Bancshares Trust I (incorporated herein by reference to Exhibit 10.15 to Vision Bancshares, Inc.'s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))

Note: Pursuant to the First Supplemental Indenture, dated to be effective as of 6:00 p.m., Eastern Standard Time, on March 9, 2007, among Wilmington Trust Company, as Trustee; Park National Corporation; and Vision Bancshares, Inc., Park National Corporation succeeded to and was substituted for Vision Bancshares, Inc. as “Depositor”

4.2(b) Notice of Resignation of Administrative Trustees and Appointment of Successors, dated March 9, 2007, delivered to Wilmington Trust Company by the Resigning Administrative Trustees named therein, the Successor Administrative Trustees named therein and Park National Corporation (incorporated herein by reference to Exhibit 4.2(b) to Park's March 15, 2007 Form 8-K)

4.2(c) Notice of Removal of Administrative Trustee and Appointment of Successor, dated February 21, 2013, delivered to Wilmington Trust Company by the continuing Administrative Trustee named therein and Park National Corporation (incorporated herein by reference to Exhibit 4.2(c) to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (File No. 1-13006) ("Park's 2012 Form 10-K"))

4.3 Guarantee Agreement, dated as of December 5, 2005, between Vision Bancshares, Inc., as Guarantor, and Wilmington Trust Company, as Guarantee Trustee, in respect of Vision Bancshares Trust I (incorporated herein by reference to Exhibit 10.17 to Vision Bancshares, Inc.'s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))

Note: Pursuant to the First Supplemental Indenture, dated to be effective as of 6:00 p.m., Eastern Standard Time, on March 9, 2007, among Wilmington Trust Company, as Trustee; Park National Corporation; and Vision Bancshares, Inc., Park National Corporation succeeded to and was substituted for Vision Bancshares, Inc. as “Guarantor”

4.4 Note Purchase Agreement, dated December 23, 2009, between Park National Corporation and 38 accredited investors (incorporated herein by reference to Exhibit 4.1 to Park National Corporation's Current Report on Form 8-K dated and filed on December 28, 2009 (File No. 1-13006) (“Park's December 28, 2009 Form 8-K”))

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Note: 10% Subordinated Notes due December 23, 2019 were repaid in full on December 24, 2014 and Note Purchase Agreement terminated by its terms.

4.5 Form of 10% Subordinated Note due December 23, 2019 (incorporated herein by reference to Exhibit 4.2 to Park's December 28, 2009 Form 8-K)

Note: 10% Subordinated Notes due December 23, 2019 were repaid in full on December 24, 2014.

4.6 Note Purchase Agreement, dated April 20, 2012, between Park National Corporation and 56 accredited investors (incorporated herein by reference to Exhibit 4.1 to Park National Corporation's Current Report on Form 8-K dated and filed on April 20, 2012 (File No. 1-13006) (“Park's April 20, 2012 Form 8-K”))

4.7 Form of 7% Subordinated Note due April 20, 2022 (incorporated herein by reference to Exhibit 4.2 to Park's April 20, 2012 Form 8-K)

4.8 Agreement to furnish instruments and agreements defining rights of holders of long-term debt (filed herewith)

10.1† Summary of Base Salaries for Executive Officers of Park National Corporation (filed herewith)

10.2† Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and David L. Trautman (incorporated by reference to Exhibit 10.2(a) to Park National Corporation's Current Report on Form 8-K dated and filed June 19, 2015 (File No. 1-130006) ("Park's June 19, 2015 Form 8-K")

10.3† Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and Brady T. Burt (incorporated herein by reference to Exhibit 10.3 to Park's June 19, 2015 Form 8-K)

10.4† Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and C. Daniel DeLawder (incorporated by reference to Exhibit 10.2(b) to Park's June 19, 2015 Form 8-K)

10.5† Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and David L. Trautman (filed herewith)

10.6† Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and Brady T. Burt (incorporated by reference to Exhibit 10.4 to Park's June 19, 2015 Form 8-K)

10.7† Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and C. Daniel Delawder (filed herewith)

10.8† Supplemental Executive Retirement Benefits Agreement, made as of June 15, 2015, between The Park National Bank and David L. Trautman (incorporated herein by reference to Exhibit 10.1(a) to Park's June 19, 2015 Form 8-K)

10.9† Supplemental Executive Retirement Benefits Agreement, made as of June 15, 2015, between The Park National Bank and Brady T. Burt (incorporated herein by reference to Exhibit 10.1(b) to Park's June 19, 2015 Form 8-K)

10.10† Supplemental Executive Retirement Benefits Agreement, made as of June 15, 2015, between The Park National Bank and C. Daniel DeLawder (incorporated herein by reference to Exhibit 10.1(c) to Park's June 19, 2015 Form 8-K)

10.11† Supplemental Executive Retirement Benefits Agreement, made as of February 18, 2008, between The Park National Corporation and David L. Trautman (incorporated herein by reference to Exhibit 10.1 to Park National Corporation's Current Report on Form 8-K dated and filed February 19, 2008 (File No. 1-13006)("Park's February 19, 2008 Form 8-K"))

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10.12† Form of Amended and Restated Supplemental Executive Retirement Benefits Agreement, made as of February 18, 2008, between Park National Corporation and C. Daniel DeLawder (incorporated herein by reference to Exhibit 10.2 to Park's February 19, 2008 Form 8-K)

10.13† Summary of Certain Compensation for Directors of Park National Corporation (filed herewith)

10.14(a)† Form of Split-Dollar Agreement, made and entered into effective as of December 28, 2007, covering Non-Employee Directors of Park National Corporation (incorporated herein by reference to Exhibit 10.2(a) to Park National Corporation's Current Report on Form 8-K dated and filed on January 2, 2008 (File No. 1-13006))

10.14(b)† Schedule identifying Non-Employee Directors of Park National Corporation covered by form of Split-Dollar Agreement, made and entered into effective as of December 28, 2007 (filed herewith)

10.15† Park National Corporation 2013 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on April 23, 2013 (File No. 1-13006))

10.16† Form of Park National Corporation 2013 Long-Term Incentive Plan Performance-Based Restricted Stock Unit Award Agreement used and to be used to evidence awards of Performance-Based Restricted Stock Units to employees of Park National Corporation and its subsidiaries granted on and after January 24, 2014 (incorporated herein by reference to Exhibit 10.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on January 27, 2014 (File No. 1-13006))

13 2015 Annual Report (not deemed filed except for portions thereof which are specifically incorporated by reference in this Annual Report on Form 10-K) (specified portions filed herewith)

14 Code of Business Conduct and Ethics, as amended July 28, 2014 and updated July 30, 2014 (incorporated herein by reference to Exhibit 14 to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (File No. 1-13006))

21 Subsidiaries of Park National Corporation (filed herewith)

23 Consent of Crowe Horwath LLP (filed herewith)

24 Powers of Attorney of Directors and Executive Officers of Park National Corporation (filed herewith)

31.1 Rule 13a-14(a)/15d-14(a) Certifications - Principal Executive Officer (filed herewith)

31.2 Rule 13a-14(a)/15d-14(a) Certifications - Principal Financial Officer (filed herewith)

32 Certifications Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code - Principal Executive Officer and Principal Financial Officer (furnished herewith)

101 The following materials from Park National Corporation's 2015 Annual Report and incorporated therefrom into Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of December 31, 2015 and 2014; (ii) the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013; (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013; (iv) the Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2015, 2014 and 2013; (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013; and (vi) the Notes to Consolidated Financial Statements (electronically submitted herewith)

† Management contract or compensatory plan or arrangement.

-36-

(b)    Exhibits.

The documents listed in Item 15(a)(3) are filed/furnished with this Annual Report on Form 10-K as exhibits or incorporated into this Annual Report on Form 10-K by reference.

(c)    Financial Statement Schedules.

None

-37-

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PARK NATIONAL CORPORATION
Date: February 18, 2016	By:	/s/ David L. Trautman
		David L. Trautman,
		Chief Executive Officer and President

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on the 18th day of February, 2016.

Name	Capacity
/s/ David L. Trautman David L. Trautman	Chief Executive Officer, President and Director
/s/ C. Daniel DeLawder C. Daniel DeLawder	Chairman of the Board and Director
/s/ Brady T. Burt Brady T. Burt	Chief Financial Officer, Secretary and Treasurer
/s/ Matthew R. Miller Matthew R. Miller	Chief Accounting Officer
/s/ Donna M. Alvarado* Donna M. Alvarado	Director
/s/ Maureen Buchwald* Maureen Buchwald	Director
/s/ James R. DeRoberts* James R. DeRoberts	Director
/s/ F. William Englefield IV* F. William Englefield IV	Director
/s/ Alicia J. Hupp*Alicia J. Hupp	Director
/s/ Stephen J. Kambeitz* Stephen J. Kambeitz	Director
/s/ Timothy S. McLain* Timothy S. McLain	Director
/s/ Robert E. O’Neill* Robert E. O’Neill	Director

-38-

Name	Capacity
/s/ Julie A. Sloat* Julie A. Sloat	Director
/s/ Rick R. Taylor* Rick R. Taylor	Director
/s/ Leon Zazworsky* Leon Zazworsky	Director

__________________________

* The above-named directors of the Registrant sign this Annual Report on Form 10-K by David L. Trautman, their attorney-in-fact, pursuant to Powers of Attorney signed by the above-named directors, which Powers of Attorney are filed with this Annual Report on Form 10-K as exhibits, in the capacities indicated and on the 18th day of February, 2016.

By:	/s/ David L. Trautman
	David L. Trautman
	Chief Executive Officer and President

-39-

EX-4.8

Exhibit 4.8

PARK NATIONAL CORPORATION

50 North Third Street

Post Office Box 3500

Newark, Ohio 43058-3500

(740) 349-8451

www.parknationalcorp.com

February 18, 2016

United States Securities and Exchange Commission

100 F Street, NE

Washington, D.C. 20549

Re:     Park National Corporation

Commission File Number: 1-13006

Annual Report on Form 10-K for the Fiscal Year

Ended December 31, 2015

Ladies and Gentlemen:

Park National Corporation, an Ohio corporation (“Park”), is today filing with the Securities and Exchange Commission (the “SEC”) the Annual Report on Form 10-K of Park for the fiscal year ended December 31, 2015 (“Park's 2015 Form 10-K”).

Neither (i) Park nor (ii) any of Park's consolidated subsidiaries has outstanding any instrument or agreement with respect to its long-term debt under which the total amount of long-term debt authorized exceeds 10% of the total assets of Park and Park's subsidiaries on a consolidated basis. In accordance with the provisions of Item 601(b)(4)(iii) of SEC Regulation S-K, Park hereby agrees to furnish to the SEC, upon request, a copy of each instrument or agreement defining (i) the rights of holders of long-term debt of Park or (ii) the rights of holders of long-term debt of a consolidated subsidiary of Park, in each case which is not being filed or incorporated by reference as an exhibit to Park's 2015 Form 10-K.

Very truly yours,

PARK NATIONAL CORPORATION

/s/ Brady T. Burt

Brady T. Burt

Chief Financial Officer, Secretary and Treasurer

EX-10.1

Exhibit 10.1

Summary of Base Salaries

for

Executive Officers of Park National Corporation

On December 7, 2015, the Compensation Committee of the Board of Directors of Park National Corporation (“Park”) approved the base salaries for the fiscal year ending December 31, 2016, for each of the executive officers of Park: (a) David L. Trautman, Chief Executive Officer and President of each of Park and The Park National Bank; (b) C. Daniel DeLawder, Chairman of the Board of Park and Chairman of the Board and full-time executive officer of The Park National Bank, a subsidiary of Park; and (c) Brady T. Burt, Chief Financial Officer, Secretary and Treasurer of Park and Senior Vice President and Chief Financial Officer of The Park National Bank. Those base salaries are:

* David L. Trautman -- $785,000

* C. Daniel DeLawder -- $575,000

* Brady T. Burt -- $350,000

EX-10.5

Exhibit 10.5

AMENDED AND RESTATED SPLIT-DOLLAR AGREEMENT

This Amended and Restated Split-Dollar Agreement (this “Agreement”) is made and entered into effective as of the 15th day of June, 2015, by and between The Park National Bank, a national banking association (hereinafter, the “Bank”), and David L. Trautman, an individual (hereinafter, the “Employee”).

WITNESSETH:

WHEREAS, in consideration for the contemplated services of the Employee to the Bank, the Bank desires to assist the Employee in providing life insurance for the benefit and protection of the Employee’s family on a split-dollar basis; and

WHEREAS, the Bank desires to continue to own the insurance policies provided so the Bank will have security for the repayment of the amounts which the Bank will contribute toward payment of the premiums due on the policies; and

WHEREAS, this Agreement supersedes the prior Split-Dollar Agreement between the Bank and the Employee, made on September 23, 1993; and

WHEREAS, the amendment contained in this Agreement is not intended to be a material amendment for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and this Agreement shall remain grandfathered and exempt from Section 409A;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, it is agreed between the parties hereto as follows:

I. DEFINITION OF “NET AMOUNT AT RISK”

“Net Amount at Risk” as used herein shall mean the difference between the death proceeds of the insurance policies identified in Exhibit A to this Agreement (hereinafter, the “Policies”) and the cash accumulation account of the Policies, determined at the date of the Employee’s death.

II. TITLE AND OWNERSHIP OF POLICIES

The Bank shall be the owner of the Policies on the Employee’s life and may exercise all rights of ownership with respect to the Policies.

III. BENEFICIARY DESIGNATION RIGHTS

The Employee shall have the right to designate, in Exhibit A to this Agreement, the beneficiary(ies) to receive the Employee’s share of the proceeds payable under the Policies on the Employee’s death and to elect and change a payment option for such beneficiary(ies) but subject to any right or interest the Bank may have in such proceeds as provided herein.

IV. PREMIUM PAYMENT METHOD

The Bank agrees to remit to each insurer under the Policies (the “Insurer”) the entire premium amount when due.

V. THE AMOUNT OF EMPLOYEE INSURANCE AND THE DIVISION OF DEATH PROCEEDS OF THE POLICIES

A. The amount of the Employee’s death benefit will be determined annually by the Bank, and will be approximately two (2) times the Employee’s highest annual total compensation during any calendar year of the Employee’s employment with the Bank (which, for purposes of this Paragraph V.A., is defined as the sum of the annual base salary and the annual cash bonus/incentive compensation paid to the Employee during a calendar year of employment with the Bank). The Employee’s annual total compensation for purposes of this calculation may be adjusted for extraordinary fluctuations caused by acceleration or deceleration in any year due to opportunities to maximize disposable income by the Employee caused by changes in state, federal, and local tax laws or otherwise.

Notwithstanding any other provision in this Paragraph or this Agreement or elsewhere, in no event shall the amount payable to the Employee exceed the Net Amount at Risk in the Policies as of the date of the Employee’s death.

B. The Employee’s beneficiary(ies), designated in accordance with Paragraph III., shall, at the death of the Employee while employed, be entitled to the amount identified on Exhibit A to this Agreement, or the amount more recently determined by the Bank under Paragraph V.A., if different than the amount in Exhibit A to this Agreement. In no event, however, shall the amount exceed the limit set forth in the last sentence of Paragraph V.A.

Payment of insurance amounts after the Employee’s retirement shall be subject to the following retirement conditions:

1. The Employee is fully vested in Park National Corporation’s Pension Plan.

2. The Employee has reached age 62, unless permanently disabled as determined under Park National Corporation’s disability insurance plan.

3. After retirement, the Employee has not been employed by any financial services firm offering like or similar products as the Bank, except with written approval of the Bank.

4. The Employee’s termination of employment from the Bank has not been for cause as determined by the Board of Directors of the Bank; if termination is determined to be for cause, a letter so stating shall be sent by certified mail to the Employee within 90 days of termination of employment from the Bank.

C. The Bank shall be entitled to the remainder of the death proceeds, less any loans on the Policies and unpaid interest or cash withdrawals previously incurred by the Bank.

D. The Employee shall not make any assignment of the Employee’s rights, title or interest in or to the death proceeds of the Policies whatsoever without the prior written consent of the Bank (which may be withheld for any reason or no reason in its sole and absolute discretion) and acknowledgment by each Insurer under the Policies.

VI.    DISTRIBUTION OF THE CASH SURRENDER VALUE OF THE POLICIES

The Bank shall be entitled to the net cash surrender value of the Policies, as defined in the Policies, should a surrender occur.

VII. TERMINATION OF AGREEMENT

This Agreement shall terminate if the Employee voluntarily terminates the Employee’s employment with the Bank or the Employee fails to meet any post-retirement benefit condition in Paragraph V.B.

VIII. AGREEMENT BINDING UPON PARTIES

This Agreement shall bind the Employee and the Bank, their heirs, personal representatives, successors and permitted assigns.

IX. ADMINISTRATION

This Agreement shall be administered by the Compensation Committee of the Board of Directors of Park National Corporation (the “Committee”).

As the administrator, the Committee shall have the powers, duties and discretion to:

A.    Construe and interpret the provisions of this Agreement;

B. Adopt, amend or revoke rules and regulations for the administration of this Agreement, provided they are not inconsistent with the provisions of this Agreement;

C. Provide appropriate persons with such returns, reports, descriptions and statements as may be required by law, within the times prescribed by law and to make them available to the Employee (or the Employee’s beneficiary(ies)) when required by law;

D. Take such other action as may be reasonably required to administer this Agreement in accordance with its terms or as may be required by law;

E. Withhold applicable taxes and file with the Internal Revenue Service appropriate information returns with respect to any payments and/or benefits provided hereunder; and

F. Appoint and retain such persons as may be necessary to carry out its duties as administrator.

In its capacity as the administrator, the Committee shall also be responsible for the management, control and administration of the death proceeds from the Policies. The administrator may, in its reasonable discretion, delegate certain aspects of its management and administrative responsibilities. If the administrator has a claim which it believes may be covered under the Policies, it will contact each Insurer under the Policies in order to complete a claim form and determine what other steps need to be taken. Each Insurer under the Policies will evaluate and make a decision as to payment. If the claim is eligible for payment under the Policies, a check will be issued to the Bank. If an Insurer under the Policies determines that a claim is not eligible for payment under the Policies, the administrator may, in its sole discretion, contest such claim denial by contacting the applicable Insurer in writing.

X. FUNDING POLICY

The funding policy for the split-dollar plan as established by this Agreement (the “Split-Dollar Plan”) shall be to maintain the Policies in force by paying all premiums required, when due.

XI. AMENDMENT

This Agreement, and the Split-Dollar Plan which is established by this Agreement, may be amended at any time and from time to time by a written instrument executed by the Employee and the Bank.

XII. BASIS OF PREMIUM PAYMENTS AND BENEFITS

Payments to and from the Split-Dollar Plan established by this Agreement shall be in accordance with the provisions of Paragraph I. through Paragraph VI. of this Agreement, inclusive.

XIII. CLAIMS PROCEDURE

A. For purposes of these claims procedures, the Committee shall serve as the “Claims Administrator.”

B. If the Employee or any beneficiary of the Employee should have a claim for benefits hereunder, he or she shall file such claim by notifying the Claims Administrator in writing. The Claims Administrator shall make all determinations as to the right of any person or persons to a benefit hereunder. Benefit claims shall be made by the Employee, the Employee’s beneficiary(ies) or a duly authorized representative thereof (the “claimant”).

If the claim is wholly or partially denied, the Claims Administrator shall provide written or electronic notice thereof to the claimant within a reasonable period of time, but not later than 90 days after receipt of the claim. An extension of time for processing the claim for benefits is allowable if special circumstances require an extension, but such an extension shall not extend beyond 180 days from the date the claim for benefits is received by the Claims Administrator. Written notice of any extension of time shall be delivered or mailed within 90 days after receipt of the claim and shall include an explanation of the special circumstances requiring the extension and the date by which the Claims Administrator expects to render the final decision.

Notice of an adverse benefit determination shall (i) specify the reason for the denial; (ii) reference the provisions of this Agreement on which the denial is based; (iii) describe the additional material or information, if any, necessary for the claimant to receive benefits and explain why such material

or information is necessary; (iv) indicate the steps to be taken by the claimant if a review of the denial is desired, including the time limits applicable thereto; and (v) contain a statement of the claimant’s right to bring a civil action under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), in the event of an adverse determination on review.

If notice of an adverse benefit determination is not furnished in accordance with the preceding provisions of this Paragraph XIII.B., the claim shall be deemed denied and the claimant shall be permitted to exercise the claimant’s right to review as set forth below.

C. If a claim is denied and a review is desired, the claimant shall notify the Claims Administrator in writing within 60 days after receipt of written notice of a denial of a claim. In requesting a review, the claimant may submit any written comments, documents, records, and other information relating to the claim, the claimant feels are appropriate. The claimant shall, upon request and free of charge, be provided reasonable access to, and copies of, all documents, records and other information “relevant” to the claimant’s claim for benefits. The Claims Administrator shall review the claim taking into account all comments, documents, records and other information submitted by the claimant, without regard to whether such information was submitted or considered in the initial benefit determination.

The Claims Administrator shall provide the claimant with written or electronic notification of the benefit determination upon review. In the event of an adverse benefit determination on review, the notice thereof shall (i) specify the reason or reasons for the adverse determination; (ii) reference the specific provisions of this Agreement on which the benefit determination is based; (iii) contain a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of all documents, records and other information “relevant” to the claimant’s claim for benefits; and (iv) inform the claimant of the right to bring a civil action under the provisions of ERISA.

For purposes hereof, documents, records and information shall be considered “relevant” to the claimant’s claim if they (a) were relied upon in making the benefit determination; (b) were submitted, considered, or generated in the course of making the benefit determination, whether or not actually relied upon in making the determination; or (c) demonstrate compliance with the administrative processes and safeguards of this claims procedure.

D. After exhaustion of the claims procedure as provided herein, nothing shall prevent the claimant from pursuing any other legal or equitable remedy otherwise available, including the right to bring a civil action under Section 502(a) of ERISA, if applicable. Notwithstanding the foregoing, no legal action may be commenced or maintained against the Bank, the Committee, whether in its capacity as Claims Administrator or otherwise, or any member of the Committee more than one (1) year after the claimant has exhausted the administrative remedies set forth in this Paragraph XIII.

XIV. SEVERABILITY AND INTERPRETATION

If a provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall nonetheless be enforceable according to their terms. Further, in the event that any provision is held to be overly broad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to law and enforced as amended.

XV. INSURER(S) NOT A PARTY TO AGREEMENT

Each Insurer under the Policies shall not be deemed a party to this Agreement but will respect the rights of the parties to this Agreement as herein developed upon receiving an executed copy of this Agreement. Payment or other performance of each Insurer’s contractual obligations in accordance with the provisions of the respective Policies shall fully discharge such Insurer for any and all liability.

[Remainder of page intentionally left blank; signature page follows.]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, or caused this Agreement to be executed by a duly authorized officer, in each case in Newark, Ohio and as of the day and year set forth above.

PARK:

The Park National Bank

By /s/ Brady T. Burt

Its CFO

EXECUTIVE

/s/ David L. Trautman

DAVID L. TRAUTMAN

EXHIBIT A

TO

AMENDED AND RESTATED SPLIT-DOLLAR AGREEMENT

(Made and effective as of June 15th, 2015)

Employee:        David L. Trautman

Birth Date:        XX/XX/XXXX

Split Dollar Endorsement Death Benefit:

A. Employee’s Portion:    $1,400,000 (subject to change as a result of annual determinations made in accordance with Paragraph V.A. of the Amended and Restated Split-Dollar Agreement)

B.    Insurer:            Northwestern Mutual

Policy Numbers:         17934296 and 17991563

C. If death occurs while the Employee has continuing rights under the Amended and Restated Split-Dollar Agreement, the Employee’s designated beneficiaries are:

Primary -     XXXXXXXXXXXXXXX

Secondary - XXXXXXXXXXXXXXX

EX-10.7

Exhibit 10.7

AMENDED AND RESTATED SPLIT-DOLLAR AGREEMENT

This Amended and Restated Split-Dollar Agreement (this “Agreement”) is made and entered into effective as of the 15th day of June, 2015, by and between The Park National Bank, a national banking association (hereinafter, the “Bank”), and C. Daniel DeLawder, an individual (hereinafter, the “Employee”).

WITNESSETH:

WHEREAS, in consideration for the contemplated services of the Employee to the Bank, the Bank desires to assist the Employee in providing life insurance for the benefit and protection of the Employee’s family on a split-dollar basis; and

WHEREAS, the Bank desires to continue to own the insurance policies provided so the Bank will have security for the repayment of the amounts which the Bank will contribute toward payment of the premiums due on the policies; and

WHEREAS, this Agreement supersedes the prior Split-Dollar Agreement between the Bank and the Employee, made on May 26, 1993; and

WHEREAS, the amendment contained in this Agreement is not intended to be a material amendment for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and this Agreement shall remain grandfathered and exempt from Section 409A;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, it is agreed between the parties hereto as follows:

I. DEFINITION OF “NET AMOUNT AT RISK”

“Net Amount at Risk” as used herein shall mean the difference between the death proceeds of the insurance policies identified in Exhibit A to this Agreement (hereinafter, the “Policies”) and the cash accumulation account of the Policies, determined at the date of the Employee’s death.

II. TITLE AND OWNERSHIP OF POLICIES

The Bank shall be the owner of the Policies on the Employee’s life and may exercise all rights of ownership with respect to the Policies.

III. BENEFICIARY DESIGNATION RIGHTS

The Employee shall have the right to designate, in Exhibit A to this Agreement, the beneficiary(ies) to receive the Employee’s share of the proceeds payable under the Policies on the Employee’s death and to elect and change a payment option for such beneficiary(ies) but subject to any right or interest the Bank may have in such proceeds as provided herein.

IV. PREMIUM PAYMENT METHOD

The Bank agrees to remit to each insurer under the Policies (the “Insurer”) the entire premium amount when due.

V. THE AMOUNT OF EMPLOYEE INSURANCE AND THE DIVISION OF DEATH PROCEEDS OF THE POLICIES

A. The amount of the Employee’s death benefit will be determined annually by the Bank, and will be approximately two (2) times the Employee’s highest annual total compensation during any calendar year of the Employee’s employment with the Bank (which, for purposes of this Paragraph V.A., is defined as the sum of the annual base salary and the annual cash bonus/incentive compensation paid to the Employee during a calendar year of employment with the Bank). The Employee’s annual total compensation for purposes of this calculation may be adjusted for extraordinary fluctuations

caused by acceleration or deceleration in any year due to opportunities to maximize disposable income by the Employee caused by changes in state, federal, and local tax laws or otherwise. Notwithstanding any other provision in this Paragraph or this Agreement or elsewhere, in no event shall the amount payable to the Employee exceed the Net Amount at Risk in the Policies as of the date of the Employee’s death.

B. The Employee’s beneficiary(ies), designated in accordance with Paragraph III., shall, at the death of the Employee while employed, be entitled to the amount identified on Exhibit A to this Agreement, or the amount more recently determined by the Bank under Paragraph V.A., if different than the amount in Exhibit A to this Agreement. In no event, however, shall the amount exceed the limit set forth in the last sentence of Paragraph V.A.

Payment of insurance amounts after the Employee’s retirement shall be subject to the following retirement conditions:

1. The Employee is fully vested in Park National Corporation’s Pension Plan.

2. The Employee has reached age 62, unless permanently disabled as determined under Park National Corporation’s disability insurance plan.

3. After retirement, the Employee has not been employed by any financial services firm offering like or similar products as the Bank, except with written approval of the Bank.

4. The Employee’s termination of employment from the Bank has not been for cause as determined by the Board of Directors of the Bank; if termination is determined to be for cause, a letter so stating shall be sent by certified mail to the Employee within 90 days of termination of employment from the Bank.

C. The Bank shall be entitled to the remainder of the death proceeds, less any loans on the Policies and unpaid interest or cash withdrawals previously incurred by the Bank.

D. The Employee shall not make any assignment of the Employee’s rights, title or interest in or to the death proceeds of the Policies whatsoever without the prior written consent of the Bank (which may be withheld for any reason or no reason in its sole and absolute discretion) and acknowledgment by each Insurer under the Policies.

VI. DISTRIBUTION OF THE CASH SURRENDER VALUE OF THE POLICIES

The Bank shall be entitled to the net cash surrender value of the Policies, as defined in the Policies, should a surrender occur.

VII. TERMINATION OF AGREEMENT

This Agreement shall terminate if the Employee voluntarily terminates the Employee’s employment with the Bank or the Employee fails to meet any post‑retirement benefit condition in Paragraph V.B.

VIII. AGREEMENT BINDING UPON PARTIES

This Agreement shall bind the Employee and the Bank, their heirs, personal representatives, successors and permitted assigns.

IX. ADMINISTRATION

This Agreement shall be administered by the Compensation Committee of the Board of Directors of Park National Corporation (the “Committee”).

As the administrator, the Committee shall have the powers, duties and discretion to:

A.    Construe and interpret the provisions of this Agreement;

B. Adopt, amend or revoke rules and regulations for the administration of this Agreement, provided they are not inconsistent with the provisions of this Agreement;

C. Provide appropriate persons with such returns, reports, descriptions and statements as may be required by law, within the times prescribed by law and to make them available to the Employee (or the Employee’s beneficiary(ies)) when required by law;

D. Take such other action as may be reasonably required to administer this Agreement in accordance with its terms or as may be required by law;

E. Withhold applicable taxes and file with the Internal Revenue Service appropriate information returns with respect to any payments and/or benefits provided hereunder; and

F. Appoint and retain such persons as may be necessary to carry out its duties as administrator.

In its capacity as the administrator, the Committee shall also be responsible for the management, control and administration of the death proceeds from the Policies. The administrator may, in its reasonable discretion, delegate certain aspects of its management and administrative responsibilities. If the administrator has a claim which it believes may be covered under the Policies, it will contact each Insurer under the Policies in order to complete a claim form and determine what other steps need to be taken. Each Insurer under the Policies will evaluate and make a decision as to payment. If the claim is eligible for payment under the Policies, a check will be issued to the Bank. If an Insurer under the Policies determines that a claim is not eligible for payment under the Policies, the administrator may, in its sole discretion, contest such claim denial by contacting the applicable Insurer in writing.

X. FUNDING POLICY

The funding policy for the split-dollar plan as established by this Agreement (the “Split-Dollar Plan”) shall be to maintain the Policies in force by paying all premiums required, when due.

XI. AMENDMENT

This Agreement, and the Split‑Dollar Plan which is established by this Agreement, may be amended at any time and from time to time by a written instrument executed by the Employee and the Bank.

XII. BASIS OF PREMIUM PAYMENTS AND BENEFITS

Payments to and from the Split-Dollar Plan established by this Agreement shall be in accordance with the provisions of Paragraph I. through Paragraph VI. of this Agreement, inclusive.

XIII. CLAIMS PROCEDURE

A. For purposes of these claims procedures, the Committee shall serve as the “Claims Administrator.”

B. If the Employee or any beneficiary of the Employee should have a claim for benefits hereunder, he or she shall file such claim by notifying the Claims Administrator in writing. The Claims Administrator shall make all determinations as to the right of any person or persons to a benefit hereunder. Benefit claims shall be made by the Employee, the Employee’s beneficiary(ies) or a duly authorized representative thereof (the “claimant”).

If the claim is wholly or partially denied, the Claims Administrator shall provide written or electronic notice thereof to the claimant within a reasonable period of time, but not later than 90 days after receipt of the claim. An extension of time for processing the claim for benefits is allowable if special circumstances require an extension, but such an extension shall not extend beyond 180 days from the date the claim for benefits is received by the Claims Administrator. Written notice of any extension of time shall be delivered or mailed within 90 days after receipt of the claim and shall include an explanation of the special circumstances requiring the extension and the date by which the Claims Administrator expects to render the final decision.

Notice of an adverse benefit determination shall (i) specify the reason for the denial; (ii) reference the provisions of this Agreement on which the denial is based; (iii) describe the additional material or information, if any, necessary for the claimant to receive benefits and explain why such material or information is necessary; (iv) indicate the steps to be taken by the claimant if a review of the denial is desired, including the time limits applicable thereto; and (v) contain a statement of the claimant’s right to bring a civil action under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), in the event of an adverse determination on review.

If notice of an adverse benefit determination is not furnished in accordance with the preceding provisions of this Paragraph XIII.B., the claim shall be deemed denied and the claimant shall be permitted to exercise the claimant’s right to review as set forth below.

C. If a claim is denied and a review is desired, the claimant shall notify the Claims Administrator in writing within 60 days after receipt of written notice of a denial of a claim. In requesting a review, the claimant may submit any written comments, documents, records, and other information relating to the claim, the claimant feels are appropriate. The claimant shall, upon request and free of charge, be provided reasonable access to, and copies of, all documents, records and other information “relevant” to the claimant’s claim for benefits. The Claims Administrator shall review the claim taking into account all comments, documents, records and other information submitted by the claimant, without regard to whether such information was submitted or considered in the initial benefit determination.

The Claims Administrator shall provide the claimant with written or electronic notification of the benefit determination upon review. In the event of an adverse benefit determination on review, the notice thereof shall (i) specify the reason or reasons for the adverse determination; (ii) reference the specific provisions of this Agreement on which the benefit determination is based; (iii) contain a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of all documents, records and other information “relevant” to the claimant’s claim for benefits; and (iv) inform the claimant of the right to bring a civil action under the provisions of ERISA.

For purposes hereof, documents, records and information shall be considered “relevant” to the claimant’s claim if they (a) were relied upon in making the benefit determination; (b) were submitted, considered, or generated in the course of making the benefit determination, whether or not actually relied upon in making the determination; or (c) demonstrate compliance with the administrative processes and safeguards of this claims procedure.

D. After exhaustion of the claims procedure as provided herein, nothing shall prevent the claimant from pursuing any other legal or equitable remedy otherwise available, including the right to bring a civil action under Section 502(a) of ERISA, if applicable. Notwithstanding the foregoing, no legal action may be commenced or maintained against the Bank, the Committee, whether in its capacity as Claims Administrator or otherwise, or any member of the Committee more than one (1) year after the claimant has exhausted the administrative remedies set forth in this Paragraph XIII.

XIV. SEVERABILITY AND INTERPRETATION

If a provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall nonetheless be enforceable according to their terms. Further, in the event that any provision is held to be overly broad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to law and enforced as amended.

XV. INSURER(S) NOT A PARTY TO AGREEMENT

Each Insurer under the Policies shall not be deemed a party to this Agreement but will respect the rights of the parties to this Agreement as herein developed upon receiving an executed copy of this Agreement. Payment or other performance of each Insurer’s contractual obligations in accordance with the provisions of the respective Policies shall fully discharge such Insurer for any and all liability.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, or caused this Agreement to be executed by a duly authorized officer, in each case in Newark, Ohio and as of the day and year set forth above.

PARK:

The Park National Bank

By /s/ Brady T. Burt

Its CFO

EXECUTIVE

/s/ C. Daniel DeLawder

C. DANIEL DELAWDER

EXHIBIT A

TO

AMENDED AND RESTATED SPLIT-DOLLAR AGREEMENT

(Made and effective as of June 15th, 2015)

Employee:    Charles Daniel DeLawder

Birth Date:    XX/XX/XXXX

Split-Dollar Endorsement Death Benefit:

A. Employee’s Portion:    $1,911,980 (subject to change as a result of annual determinations made in accordance with Paragraph V.A. of the Amended and Restated Split-Dollar Agreement)

B.    Insurer:    Northwestern Mutual

Policy Numbers:    17932787 and 17991068

C. If death occurs while the Employee has continuing rights under the Amended and Restated Split-Dollar Agreement, the Employee’s designated beneficiaries are:

Primary - XXXXXXXXXXXXXXX

Secondary - XXXXXXXXXXXXXXX

EX-10.13

Exhibit 10.13

Summary of Certain Compensation for

Directors of Park National Corporation

Annual Retainers and Meeting Fees

Annual Retainers Payable in Common Shares

Each director of Park National Corporation (“Park”) who is not an employee of Park or one of Park’s subsidiaries (a “non-employee director”) receives, on the date of the regular meeting of the Park Board of Directors held during the fourth fiscal quarter, an annual retainer in the form of common shares awarded under the Park National Corporation 2013 Long-Term Incentive Plan. The number of common shares awarded as the annual retainer for the fiscal year ended December 31, 2015 (the “2015 fiscal year”) was 200 common shares. These common shares were delivered on the date of the regular meeting of the Park Board of Directors held during the fourth quarter of the 2015 fiscal year.

Each non-employee director of Park also serves on the board of directors of either The Park National Bank (“Park National Bank”) or one of the divisions of Park National Bank, and receives, on the date of the regular meeting of the Park Board of Directors held during the fourth fiscal quarter, an annual retainer in the form of: (a) 150 common shares for members of the board of directors of Park National Bank; and (b) 100 common shares for members of the board of directors of a division of Park National Bank. These common shares were delivered on the date of the regular meeting of the Park Board of Directors held during the fourth quarter of the 2015 fiscal year.

Cash Compensation

The following table sets forth the cash compensation paid by Park to Park’s non-employee directors for the 2015 fiscal year, and to be paid by Park to Park’s non-employee directors for the fiscal year ending December 31, 2016 (the “2016 fiscal year”):

Meeting Fees:
Each meeting of Board of Directors attended (1)		$1,200
Each meeting of Executive Committee attended		$900
Each meeting of Audit Committee attended		$900
Each meeting of each other Board Committee attended		$600
Annual Retainers (2):
Annual Retainer for Committee Chairs:
	Audit Committee	$7,500
	Nominating and Corporate Governance Committee	$5,000
	Compensation Committee	$5,000
	Risk Committee	$5,000
Annual Retainer for Other Committee Members:
	Executive Committee	$5,000
	Audit Committee	$5,000
	Risk Committee	$2,500
	Compensation Committee	$2,500
	Investment Committee	$2,500
	Nominating and Corporate Governance Committee	$2,500
Lead Director Additional Annual Retainer		$15,000

(1)    If the date of a meeting of the full Board of Directors is changed from that provided for by resolution of the Board and a Park non-employee director is not able to attend the rescheduled meeting, he or she receives the meeting fee as though he or she attended the meeting.

(2) Annual retainers are pro-rated based upon a director's period of service on a Board Committee and/or as a Board Committee Chair during the year.

Each non-employee of Park also serves on the board of directors of either Park National Bank or one of the divisions of Park National Bank and, in some cases, receives a specified amount of cash for such service as well as fees for attendance at meetings of the board of directors of Park National Bank or the applicable division of Park National Bank (and committees of the respective boards).

In addition to the annual retainers and meeting fees discussed above, non-employee directors also receive reimbursement of all reasonable travel and other expenses of attending board and committee meetings.

David L. Trautman and C. Daniel DeLawder receive no compensation for: (i) serving as a member of the Board of Directors of Park; (ii) serving as a member of the board of directors of Park National Bank; or (iii) serving as a member of any committee of the respective boards.

EX-10.14

Exhibit 10.14(b)

Schedule identifying Non-Employee Directors

of Park National Corporation covered by form

of Split-Dollar Agreement,  made and

  entered into effective as of December 28, 2007  

The following directors of Park National Corporation (“Park”) are covered by Split-Dollar Agreements (the “Split-Dollar Agreements”) as identified below, which Split-Dollar Agreements are identical to the form of Split-Dollar Agreement, to be made and entered into effective as of December 28, 2007, filed as Exhibit 10.2(a) to Park’s Current Report on Form 8-K dated and filed on January 2, 2008 (File No. 1-13006):

Name of Director	Subsidiary of Park which is a Party to Split-Dollar Agreement	Date of Split- Dollar Agreement
Donna M. Alvarado	The Park National Bank	December 28, 2007
Maureen H. Buchwald	The Park National Bank (as successor by merger to The First-Knox National Bank of Mount Vernon)	December 28, 2007
F. William Englefield IV	The Park National Bank	December 28, 2007
Robert E. O’Neill	The Park National Bank	December 28, 2007
Rick R. Taylor	The Park National Bank (as successor by merger to The Richland Trust Company)	December 28, 2007
Leon Zazworsky	The Park National Bank	December 28, 2007

EX-13

Exhibit 13

MANAGEMENT'S DISCUSSION AND ANALYSIS

Management's discussion and analysis addresses the financial condition and results of operations for Park National Corporation and our subsidiaries (unless the context otherwise requires, collectively, "Park" or the "Corporation").  This discussion should be read in conjunction with the consolidated financial statements and related notes and the five-year summary of selected financial data.  Management’s discussion and analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance.  The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties.  Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.  Risks and uncertainties that could cause actual results to differ materially include, without limitation: Park's ability to execute our business plan successfully and within the expected timeframe; general economic and financial market conditions, specifically in the real estate markets and the credit markets, either nationally or in the states in which Park and our subsidiaries do business, may experience a slowing or reversal of the recent economic expansion in addition to continuing residual effects of recessionary conditions and an uneven spread of positive impacts of recovery, on the economy and our counterparties, including adverse impacts on the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties' ability to meet credit and other obligations; changes in interest rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our consolidated balance sheet as well as reduce interest margins; changes in consumer spending, borrowing and saving habits, whether due to changing business and economic conditions, legislative and regulatory initiatives or other factors; changes in unemployment; changes in customers', suppliers' and other counterparties' performance and creditworthiness; asset/liability repricing risks and liquidity risks; our liquidity requirements could be adversely affected by changes to regulations governing bank and bank holding company capital and liquidity standards as well as by changes in our assets and liabilities; competitive factors among financial services organizations could increase significantly, including product and pricing pressures, changes to third-party relationships and our ability to attract, develop and retain qualified bank professionals; clients could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; the nature, timing and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and our subsidiaries, including major reform of the regulatory oversight structure of the financial services industry and changes in laws and regulations concerning taxes, pensions, bankruptcy, consumer protection, accounting, banking, securities and other aspects of the financial services industry, specifically the reforms provided in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), as well as regulations already adopted or which may be adopted in the future by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, to implement the Dodd-Frank Act's provisions, the Budget Control Act of 2011, the American Taxpayer Relief Act of 2012 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 Securities and Exchange Commission (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 trade, monetary, fiscal and other governmental policies of the U.S. federal government, including money supply and interest rate policies of the Federal Reserve; disruption in the liquidity and other functioning of U.S. financial markets; the impact on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S., European, and Asian government debt and concerns regarding the creditworthiness of certain sovereign governments, supranationals and financial institutions in Europe and Asia; unfavorable resolution of legal proceedings or other claims and regulatory and other governmental examinations or other inquiries; the adequacy of our risk management program; the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors and other service providers, including as a result of cyber attacks; demand for loans in the respective market areas served by Park and our subsidiaries; and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the SEC including those described in "Item 1A. Risk Factors" of Part I of Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2015. 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.

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OVERVIEW

Financial Results by segment

The table below reflects the net income (loss) by segment for the fiscal years ended December 31, 2015, 2014, and 2013. Park's segments include The Park National Bank ("PNB"), Guardian Financial Services Company (“GFSC”), SE Property Holdings, LLC ("SEPH") and all other which primarily consists of Park as the "Parent Company."

Table 1
Net income (loss) by segment
(In thousands)	2015			2014			2013
PNB	$	84,345		$	82,907		$	75,236
GFSC	1,423			1,175			2,888
Parent Company	(4,549		)	(5,050		)	(1,397		)
Ongoing operations	$	81,219		$	79,032		$	76,727
SEPH	(207		)	4,925			142
Total Park	$	81,012		$	83,957		$	76,869

The category “Parent Company” above excludes the results for SEPH, an entity which is winding down commensurate with the disposition of its problem assets. Management considers the “Ongoing operations” results, which exclude the results of SEPH, to reflect the business of Park and our subsidiaries going forward. The discussion below provides some additional information regarding the segments that make up the “Ongoing operations”, followed by additional information regarding SEPH.

The Park National Bank (PNB)

The table below reflects PNB's net income for the fiscal years ended December 31, 2015, 2014, and 2013.

Table 2
(In thousands)	2015		2014		2013
Net interest income	$	220,879	$	218,641	$	210,781
Provision for loan losses	7,665		3,517		14,039
Other income	75,188		69,384		70,841
Other expense	167,476		163,641		158,651
Income before income taxes	$	120,926	$	120,867	$	108,932
Federal income taxes	36,581		37,960		33,696
Net income	$	84,345	$	82,907	$	75,236

Net interest income of $220.9 million for the fiscal year ended December 31, 2015 represented a $2.3 million or 1.0% increase, compared to $218.6 million for the fiscal year ended December 31, 2014. The increase was primarily due to a $206 million increase in average loans, offset by a 13 basis point decline in the yield on loans.

The provision for loan losses of $7.7 million for the fiscal year ended December 31, 2015 represented an increase of $4.2 million, compared to $3.5 million for the fiscal year ended December 31, 2014. The increase reflected the increase in loan balances as well as a small increase in specific reserves. Refer to the “CREDIT EXPERIENCE: Provision for (Recovery of) Loan Losses” section for additional details regarding the level of the provision for loan losses recognized in each period presented.

Other income of $75.2 million for the fiscal year ended December 31, 2015 represented a $5.8 million or 8.4% increase, compared to $69.4 million for the fiscal year ended December 31, 2014. The $5.8 million increase was primarily related to income of $1.3 million related to proceeds from the death benefits paid from bank owned life insurance policies, a $992,000 increase in check card income, a $2.0 million increase in other service income primarily related to mortgage loan originations, and a $1.0 million increase in income from fiduciary activities.

Other expense of $167.5 million for the fiscal year ended December 31, 2015 represented an increase of $3.9 million or 2.3%, compared to $163.6 million for the fiscal year ended December 31, 2014. The $3.9 million increase was primarily related to an

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increase of $4.7 million related to salaries expense as well as a contract termination fee and a borrowing prepayment penalty that together resulted in aggregate additional expense of $1.1 million, offset by a $1.5 million decrease in contributions and a $964,000 decrease in fees and services.

PNB results for the fiscal years ended December 31, 2015, 2014, and 2013 included income and expense related to participations in legacy Vision Bank ("Vision") assets. The impact of these participations on particular items within PNB's income and expense is detailed in the table below:

Table 3	2015							2014							2013
(In thousands)	PNB as reported		Adjustments (1)			PNB as adjusted		PNB as reported		Adjustments (1)			PNB as adjusted		PNB as reported		Adjustments (1)			PNB as adjusted
Net interest income	$	220,879	$	241		$	220,638	$	218,641	$	309		$	218,332	$	210,781	$	171		$	210,610
Provision for (recovery of) loan losses	7,665		(1,453		)	9,118		3,517		(6,198		)	9,715		14,039		(584		)	14,623
Other income	75,188		1,225			73,963		69,384		1,256			68,128		70,841		155			70,686
Other expense	167,476		700			166,776		163,641		2,032			161,609		158,651		1,600			157,051
Income before income taxes	$	120,926	$	2,219		$	118,707	$	120,867	$	5,731		$	115,136	$	108,932	$	(690	)	$	109,622
Federal income tax expense (benefit)	36,581		671			35,910		37,960		1,800			36,160		33,696		(213		)	33,909
Net income (loss)	$	84,345	$	1,548		$	82,797	$	82,907	$	3,931		$	78,976	$	75,236	(477		)	$	75,713

(1) Adjustments consist of the impact on the particular items reported in PNB's income statement of PNB participations in legacy Vision assets.

The impact of Vision Bank participations includes: interest income, net recoveries from loans previously charged off, net gains on the sale of OREO (included in "other income"), other OREO income and gains on the sale of loans (included in "other income") and other expenses.

The table below provides certain balance sheet information and financial ratios for PNB as of December 31, 2015 and 2014.

Table 4
(In thousands)	December 31, 2015			December 31, 2014			% change from 12/31/14
Loans	$	5,029,072		$	4,781,761		5.17	%
Allowance for loan losses	54,453			52,000			4.72	%
Net loans	4,974,619			4,729,761			5.18	%
Investment securities	1,641,539			1,498,444			9.55	%
Total assets	7,229,764			6,910,386			4.62	%
Average assets (1)	7,219,898			6,790,615			6.32	%
Return on average assets	1.17		%	1.22		%	(4.10	)%

(1) Average assets for the fiscal years ended December 31, 2015 and 2014, respectively.

The PNB loan portfolio increased during the 2015 year.  Loans outstanding at December 31, 2015 were $5.03 billion, compared to $4.78 billion at December 31, 2014, an increase of $247 million or 5.2%.  PNB experienced growth across all loan categories: mortgage loan growth of $27 million (2.2%); commercial loan growth of $143 million (5.9%); and consumer loan growth of $77 million (6.9%).

PNB's allowance for loan losses increased by $2.5 million, or 4.72%, to $54.5 million at December 31, 2015, compared to $52.0 million at December 31, 2014. Net charge-offs were $5.2 million, or 0.11% of total average loans, for the year ended December 31, 2015. Refer to the “CREDIT EXPERIENCE: Provision for (Recovery of) Loan Losses” section for additional information regarding PNB's loan portfolio and the level of provision for loan losses recognized in each period presented.

PNB's return on average assets decreased by 5 basis points to 1.17% for the fiscal year ended December 31, 2015, compared to 1.22% for the fiscal year ended December 31, 2014. This decrease was primarily due to an increase in the average balance of Federal Funds sold which yield a lower rate of return as well as a decrease in the weighted average interest rate on loans. PNB had a $138.1 million, or 67.4%, increase in average Federal Funds Sold which had an average balance of $343.0 million and

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yielded 0.26% for the the fiscal year ended December 31, 2015, and had an average balance of $204.9 million and yielded 0.25% for the fiscal year ended December 31, 2014. Additionally, the yield on loans decreased from 4.67% for the fiscal year ended December 31, 2014, to 4.54% for the fiscal year ended December 31, 2015.

Guardian Financial Services Company (GFSC)

The table below reflects GFSC's net income for the fiscal years ended December 31, 2015, 2014, and 2013.

Table 5
(In thousands)	2015		2014			2013
Net interest income	$	6,588	$	7,457		$	8,741
Provision for loan losses	1,415		1,544			1,175
Other income (loss)	2		(1		)	11
Other expense	2,984		4,103			3,133
Income before income taxes	$	2,191	$	1,809		$	4,444
Federal income taxes	768		634			1,556
Net income	$	1,423	$	1,175		$	2,888

The table below provides certain balance sheet information and financial ratios for GFSC as of December 31, 2015 and 2014.

Table 6
(In thousands)	December 31, 2015			December 31, 2014			% change from 12/31/14
Loans	$	35,469		$	40,645		(12.73	)%
Allowance for loan losses	2,041			2,352			(13.22	)%
Net loans	33,428			38,293			(12.70	)%
Total assets	35,793			40,308			(11.20	)%
Average assets (1)	37,675			43,038			(12.46	)%
Return on average assets	3.78		%	2.73		%	38.46	%

(1) Average assets for the fiscal years ended December 31, 2015 and 2014, respectively.

Park Parent Company

The table below reflects the Park Parent Company net loss for the fiscal years ended December 31, 2015, 2014, and 2013.

Table 7
(In thousands)	2015			2014			2013
Net interest income (expense)	$	239		$	(2,012	)	$	2,828
Provision for loan losses	—			—			—
Other income	513			175			469
Other expense	9,972			8,000			7,520
Loss before income tax benefit	$	(9,220	)	$	(9,837	)	$	(4,223	)
Federal income tax benefit	(4,671		)	(4,787		)	(2,826		)
Net loss	$	(4,549	)	$	(5,050	)	$	(1,397	)

The net interest income (expense) for Park's parent company included interest income on loans to SEPH and on subordinated debt investments in PNB, which were eliminated in the consolidated Park National Corporation totals. Additionally, net interest income (expense) included interest expense related to the $30.00 million of subordinated notes issued by Park to accredited investors on April 20, 2012. Results for the fiscal years ended December 31, 2014 and 2013 included the items previously discussed and interest expense related to the $35.25 million of subordinated notes issued by Park to accredited investors on December 23, 2009. Park paid off the $35.25 million outstanding principal amount of the 10% Subordinated Notes due December 23, 2019, plus accrued interest, on December 24, 2014, the earliest redemption date allowable under the related note purchase agreement dated December 23, 2009.

4

Other expense of $10.0 million for the fiscal year ended December 31, 2015 represented a $2.0 million or 24.7% increase, compared to $8.0 million for the fiscal year ended December 31, 2014.  The $2.0 million increase was primarily related to an increase of $708,000 related to benefits expense, an increase of $522,000 related to state taxes and a $346,000 impairment charge related to a capital investment.

SE Property Holdings, LLC ("SEPH")

The table below reflects SEPH's net income (loss) for the fiscal years ended December 31, 2015, 2014, and 2013. SEPH holds the remaining assets and liabilities retained by Vision subsequent to the sale of the Vision business on February 16, 2012. Prior to holding the remaining Vision assets, SEPH held OREO assets that were transferred from Vision to SEPH. This segment represents a run-off portfolio of the legacy Vision assets.

Table 8
(In thousands)	2015			2014			2013
Net interest (expense) income	$	(74	)	$	958		$	(1,325	)
Recovery of loan losses	(4,090		)	(12,394		)	(11,799		)
Other income	1,848			5,991			1,956
Other expense	6,182			11,766			12,211
Income (loss) before income taxes	$	(318	)	$	7,577		$	219
Federal income tax expense (benefit)	(111		)	2,652			77
Net income (loss)	$	(207	)	$	4,925		$	142

SEPH's financial results for the fiscal year ended December 31, 2015 included net recoveries of $4.1 million. The net recoveries during 2015 consisted of charge-offs of $127,000, offset by recoveries of $4.2 million from loans previously charged off. Other income for the fiscal year ended December 31, 2015 at SEPH of $1.8 million was largely related to net gains on the sale of loans of $722,000, net gains on sale of OREO and other OREO income of $1.2 million, and non-yield loan fee income of $301,000, offset by OREO devaluations of $352,000. The $5.6 million decline in other expense for the fiscal year ended December 31, 2015 compared to the same period of 2014 was primarily the result of declines in: legal fees of $4.1 million; management and consulting fees of $971,000; and other OREO expense of $190,000, offset by a $814,000 increase in expense related to reserves established for potential mortgage loan repurchases.

Legacy Vision assets at SEPH totaled $26.3 million as of December 31, 2015. In addition to these SEPH assets, PNB participations in legacy Vision assets totaled $9.8 million at December 31, 2015.

Park National Corporation

The table below reflects Park's net income for the fiscal years ended December 31, 2015, 2014, and 2013.

Table 9
(In thousands)	2015		2014			2013
Net interest income	$	227,632	$	225,044		$	221,025
(Recovery of) provision for loan losses	4,990		(7,333		)	3,415
Other income	77,551		75,549			73,277
Other expense	186,614		187,510			181,515
Income before income taxes	$	113,579	$	120,416		$	109,372
Federal income taxes	32,567		36,459			32,503
Net income	$	81,012	$	83,957		$	76,869

DIVIDENDS ON COMMON SHARES

Cash dividends declared on Park's common shares were $3.76 in 2015, 2014 and 2013. The quarterly cash dividend on Park's common shares was $0.94 per share for each quarter of 2015, 2014 and 2013. 

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CRITICAL ACCOUNTING POLICIES

The significant accounting policies used in the development and presentation of Park’s consolidated financial statements are listed in Note 1 of the Notes to Consolidated Financial Statements.  The accounting and reporting policies of Park conform with U.S. generally accepted accounting principles ("GAAP") and general practices within the financial services industry.  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes.  Actual results could differ from those estimates.

Allowance for Loan and Lease Losses ("ALLL") - The determination of the ALLL involves a higher degree of judgment and complexity than Park's other significant accounting policies.  The ALLL is calculated with the objective of maintaining a reserve level believed by management to be sufficient to absorb probable, incurred credit losses in the loan portfolio. Management’s determination of the adequacy of the ALLL is based on periodic evaluations of the loan portfolio and of current economic conditions.  However, this evaluation is inherently subjective as it requires material estimates, including expected default probabilities, the loss given default, the amounts and timing of expected future cash flows on impaired loans, and estimated losses based on historical loss experience and current economic conditions.  All of these factors may be susceptible to significant change.  To the extent that actual results differ from management estimates, additional loan loss provisions may be required that would adversely impact earnings for future periods. Refer to the “CREDIT EXPERIENCE - Provision for (Recovery of) Loan Losses” section for additional discussion.

Other Real Estate Owned ("OREO") - OREO, property acquired through foreclosure, is recorded at estimated fair value less anticipated selling costs (net realizable value). If the net realizable value is below the carrying value of the loan on the date of transfer of the OREO, the difference is charged off against the ALLL. Subsequent declines in value (OREO devaluations) are reported as adjustments to the carrying amount of OREO and are expensed within other income. Gains or losses not previously recognized, resulting from the sale of OREO, are recognized within other income on the date of sale.  At December 31, 2015, OREO totaled $18.7 million, a decrease of 17.3%, compared to $22.6 million at December 31, 2014.

Fair Value - In accordance with GAAP, management utilizes the fair value hierarchy, which has the objective of maximizing the use of observable market inputs.  The accounting guidance also requires disclosures regarding the inputs used to calculate fair value. These inputs are classified as Level 1, 2, and 3. Level 3 inputs are those with significant unobservable inputs that reflect a company’s own assumptions about the market for a particular instrument. Some of the inputs could be based on internal models and/or cash flow analyses. The large majority of Park’s financial assets valued using Level 2 inputs consist of available-for-sale (“AFS”) securities. The fair value of these AFS securities is obtained largely by the use of matrix pricing, which is a mathematical technique widely used in the financial services industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.

Goodwill - The accounting for goodwill also involves a higher degree of judgment than most other significant accounting policies. GAAP establishes standards for the impairment assessment of goodwill. Goodwill arising from business combinations represents the value attributable to unidentifiable intangible assets in the business acquired. Park’s goodwill relates to the value inherent in the banking industry and that value is dependent upon the ability of PNB, Park’s bank subsidiary, to provide quality, cost-effective banking services in a competitive marketplace. The goodwill value is supported by revenue that is in part driven by the volume of business transacted. A decrease in earnings resulting from a decline in the customer base, the inability to deliver cost-effective services over sustained periods or significant credit problems can lead to impairment of goodwill that could adversely impact earnings in future periods. Under GAAP, goodwill is no longer amortized but is subject to an annual evaluation for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing these events or circumstances, it is concluded that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the performance of the second step of the impairment test is required. If the carrying amount of the goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess. At December 31, 2015, on a consolidated basis, Park had $72.3 million of goodwill, all of which is recorded at PNB.

Pension Plan - The determination of pension plan obligations and related expenses requires the use of assumptions to estimate the amount of benefits that employees earn while working, as well as the present value of those benefits. Annual pension expense is principally based on four components: (1) the value of benefits earned by employees for working during the year (service cost), (2) the increase in the liability due to the passage of time (interest cost), and (3) other gains and losses, reduced by (4) the expected return on plan assets for our pension plan.

6

Significant assumptions used to measure our annual pension expense include:

• the interest rate used to determine the present value of liabilities (discount rate);

• certain employee-related factors, such as turnover, retirement age and mortality;

• the expected return on assets in our funded plans; and

• the rate of salary increases

Our assumptions reflect our historical experience and management’s best judgment regarding future expectations. Due to the significant management judgment involved, our assumptions could have a material impact on the measurement of our pension plan expense and obligation.

ABOUT OUR BUSINESS

Through our Ohio-based banking divisions, Park is engaged in the commercial banking and trust business, generally in small to medium population Ohio communities. Management believes there are a significant number of consumers and businesses which seek long-term relationships with community-based financial institutions of quality and strength.  While not engaging in activities such as foreign lending, nationally syndicated loans or investment banking, Park attempts to meet the needs of our customers for commercial, real estate and consumer loans, and investment, fiduciary and deposit services.

Park’s subsidiaries compete for deposits and loans with other banks, savings associations, credit unions and other types of financial institutions.  At December 31, 2015, Park operated 122 financial service offices (including those of PNB, Scope Leasing, Inc. ("Scope Aircraft Finance"), and GFSC) and a network of 141 automated teller machines in 28 Ohio counties. Park also operated one office for Park Title Agency LLC. and one office for SEPH, each located in Newark, Ohio.

A summary of average loans and average deposits for Park’s subsidiaries, including its bank subsidiary, PNB, and PNB's divisions and subsidiary Scope Aircraft Finance for 2015, 2014 and 2013 is shown in Table 10.  See Note 27 of the Notes to Consolidated Financial Statements for additional financial information for the Corporation’s operating segments.  Please note that the financial statements for the divisions of PNB are not prepared on a separate basis and, therefore, net income is not included in the summary financial data below.

Table 10  -  Park Affiliate Financial Data
	2015					2014						2013
(In thousands)	Average Loans			Average Deposits		Average Loans			Average Deposits			Average Loans			Average Deposits
Park National Bank:
Park National Bank Division	$	1,465,586		$	1,473,906	$	1,383,686		$	1,426,645		$	1,348,466		$	1,355,805
Security National Bank Division	462,681			802,061		454,680			774,716			432,259			780,525
First-Knox National Bank Division	591,948			632,810		571,519			563,275			540,452			538,142
Century National Bank Division	655,682			556,543		638,314			493,449			618,144			482,002
Richland Bank Division	240,622			483,673		242,788			451,304			240,692			444,364
Fairfield National Bank Division	260,281			406,940		255,280			401,255			251,567			398,260
Second National Bank Division	374,385			337,181		355,379			317,208			323,880			308,970
Park National SW & N KY Bank Division	384,788			210,066		363,735			208,784			324,386			216,134
United Bank, N.A. Division	103,301			198,162		92,427			190,082			85,761			193,823
Unity National Bank Division	180,034			172,658		174,950			162,074			160,123			153,814
Farmers Bank Division	123,875			96,782		108,397			89,328			100,189			84,802
Scope Aircraft Finance	198,475			465		178,194			8			182,794			7
SEPH/Vision Bank	17,910			—		31,836			—			47,625			18
GFSC	37,686			5,595		43,165			6,610			49,687			8,172
Parent Company, other	(187,675		)	89,982		(177,053		)	(67,185		)	(191,244		)	(105,098		)
Consolidated Totals	$	4,909,579		$	5,466,824	$	4,717,297		$	5,017,553		$	4,514,781		$	4,859,740

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SOURCE OF FUNDS

Deposits: Park’s major source of funds is deposits from individuals, businesses and local government entities.  These deposits consist of non-interest bearing and interest bearing deposits.

Average total deposits were $5,467 million in 2015, compared to $5,018 million in 2014, and $4,860 million in 2013. Table 11 provides a summary of deposit balances as of December 31, 2015 and 2014, along with the change over the past year.

Table 11 - Year-End Deposits
December 31,
(In thousands)	2015		2014		Change
Non-interest bearing checking	$	1,404,032	$	1,269,296	$	134,736
Interest bearing transaction accounts	1,107,200		1,122,079		(14,879		)
Savings	1,544,708		1,325,445		219,263
All other time deposits	1,290,412		1,409,911		(119,499		)
Other	1,290		1,269		21
Total	$	5,347,642	$	5,128,000	$	219,642

The average interest rate paid on interest bearing deposits was 0.30% in 2015, compared to 0.29% in 2014, and 0.35% in 2013.  The average cost of interest bearing deposits for each quarter of 2015 was 0.29% for the fourth quarter, 0.29% for the third quarter, 0.30% for the second quarter and 0.31% for the first quarter. 

Maturities of time deposits over $100,000 as of December 31, 2015 and 2014 were:

Table 12 - Maturities of Time Deposits	Over $100,000
December 31 (In thousands)	2015		2014
3 months or less	$	197,871	$	210,386
Over 3 months through 6 months	96,132		93,168
Over 6 months through 12 months	117,249		132,344
Over 12 months	97,242		122,709
Total	$	508,494	$	558,607

Short-Term Borrowings: Short-term borrowings consist of securities sold under agreements to repurchase, Federal Home Loan Bank advances, Federal Funds purchased and other borrowings.  These funds are used to manage the Corporation’s liquidity needs and interest rate sensitivity risk.  The average rate paid on short-term borrowings generally moves closely with changes in market interest rates for short-term investments.  The average rate paid on short-term borrowings was 0.18% in 2015, compared to 0.20% in 2014, and 0.22% in 2013. The year-end balance for short-term borrowings was $394 million at December 31, 2015, compared to $277 million at December 31, 2014, and $242 million at December 31, 2013. 

Long-Term Debt: Long-term debt primarily consists of borrowings from the Federal Home Loan Bank and repurchase agreements with investment banking firms.  The average balance of long-term debt and the average cost of long-term debt include the subordinated notes discussed in the following section.  In 2015, average long-term debt was $793 million, compared to $868 million in 2014, and $871 million in 2013. The average interest rate paid on long-term debt was 3.10% for 2015, compared to 3.29% for 2014, and 3.26% for 2013. Average total debt (long-term and short-term) was $1,052 million in 2015, compared to $1,131 million in 2014, and $1,124 million in 2013.  Average total debt decreased by $79 million or 7.0% in 2015 compared to 2014, and increased by $7 million or 0.6% in 2014 compared to 2013. Average long-term debt was 75% of average total debt in 2015, compared to 77% of average total debt in 2014 and 2013.

Subordinated Notes: Park assumed, with the 2007 acquisition of Vision's parent holding company, $15.5 million of floating rate junior subordinated notes.  The $15.5 million of junior subordinated notes were purchased by Vision Bancshares Trust I ("Trust I") following the issuance of Trust I's $15.0 million of floating rate preferred securities. The interest rate on these junior subordinated notes adjusts every quarter at 148 basis points above the three-month LIBOR interest rate.  The maturity date for the junior subordinated notes is December 30, 2035 and the junior subordinated notes may be prepaid after December 30, 2010.  These junior subordinated notes qualify as Tier 1 capital under current Federal Reserve Board guidelines.

8

 On December 23, 2009, Park issued an aggregate principal amount of $35.25 million of subordinated notes to 38 purchasers.  These subordinated notes had a fixed annual interest rate of 10% with quarterly interest payments.  The maturity date of these subordinated notes was December 23, 2019 and the subordinated notes were eligible to be prepaid after December 23, 2014.  The subordinated notes qualifed as Tier 2 capital under applicable Federal Reserve Board guidelines.  Each subordinated note was purchased at a purchase price of 100% of the principal amount by an accredited investor. Park paid in full the $35.25 million outstanding principal amount, plus accrued interest, on December 24, 2014, the earliest redemption date allowable under the related note purchase agreement.

On April 20, 2012, Park issued an aggregate principal amount of $30.0 million of subordinated notes to 56 purchasers.  These subordinated notes have a fixed annual interest rate of 7% with quarterly interest payments. The maturity date of these subordinated notes is April 20, 2022 and the subordinated notes are eligible to be prepaid after April 20, 2017. The subordinated notes qualify as Tier 2 capital under applicable Federal Reserve Board guidelines. Each subordinated note was purchased at a purchase price of 100% of the principal amount by an accredited investor.

See Note 16 of the Notes to Consolidated Financial Statements for additional information about the subordinated notes.

Shareholders' Equity: The ratio of tangible shareholders’ equity [shareholders’ equity ($713.4 million) less goodwill ($72.3 million)] to tangible assets [total assets ($7,311 million) less goodwill ($72.3 million)] was 8.86% at December 31, 2015, compared to 9.04% at December 31, 2014, and 8.82% at December 31, 2013.

In accordance with GAAP, Park reflects any unrealized holding gain or loss on AFS securities or change in the funded status of Park's pension plan, net of income taxes, as accumulated other comprehensive income (loss) which is part of Park’s shareholders’ equity.  

The unrealized net holding loss, net of income taxes, on AFS securities was $292,000 at year-end 2015, compared to the unrealized net holding gain, net of income taxes, of $1.3 million at year-end 2014, and compared to the unrealized net holding loss, net of income taxes, of $29.8 million at year-end 2013.  The unrealized net holding gain at December 31, 2014 was the result of decreases in long-term interest rates during the year.

In accordance with GAAP, Park adjusts accumulated other comprehensive income (loss) to recognize the net actuarial gain or loss reflected in the funding status of Park’s pension plan.  See Note 18 of the Notes to Consolidated Financial Statements for information on the accounting for Park’s pension plan.

Pertaining to the funding status of the pension plan, Park recognized a net comprehensive loss of $0.5 million in 2015, a net comprehensive loss of $9.3 million in 2014, and net comprehensive income of $21.5 million in 2013. The net comprehensive loss in 2015 was due to changes in actuarial assumptions combined with lower investment returns on pension plan assets. The net comprehensive loss in 2014 was due to changes in actuarial assumptions, primarily a decrease in the discount rate from 5.30% at December 31, 2013 to 4.42% at December 31, 2014. The actuarial loss more than offset the positive investment returns with respect to the pension plan's assets in 2014. The net comprehensive income in 2013 was due to positive investment returns in 2013 and changes in actuarial assumptions, primarily an increase in the discount rate from 4.47% at December 31, 2012 to 5.30% at December 31, 2013. At year-end 2015, the balance in accumulated other comprehensive loss pertaining to the pension plan was $(15.4) million, compared to $(14.9) million at December 31, 2014, and $(5.6) million at December 31, 2013.

INVESTMENT OF FUNDS

Loans:  Average loans were $4,910 million in 2015, compared to $4,717 million in 2014, and $4,515 million in 2013.  The average yield on loans was 4.66% in 2015, compared to 4.84% in 2014 and 5.02% in 2013. Approximately 49% of Park’s loan balances mature or reprice within one year (see Table 35).  The yield on average loan balances for each quarter of 2015 was 4.63% for the fourth quarter, 4.65% for the third quarter, and 4.68% for each of the second and first quarters.   

At December 31, 2015, loan balances were $5,068 million, compared to $4,830 million at year-end 2014, an increase of $238 million or 4.9%. The loan growth of $238 million in 2015 was largely due to increases in loans of $247 million at PNB, offset by declines at GFSC and SEPH.

9

Table 13 reports year-end loan balances by type of loan for the past five years.

Table 13  -  Loans by Type
December 31,
(In thousands)	2015		2014		2013		2012		2011
Commercial, financial and agricultural	$	955,727	$	856,535	$	825,432	$	823,927	$	743,797
Construction real estate	173,345		155,804		156,116		165,528		217,546
Residential real estate	1,855,443		1,851,375		1,799,547		1,713,645		1,628,618
Commercial real estate	1,113,603		1,069,637		1,112,273		1,092,164		1,108,574
Consumer	967,111		893,160		723,733		651,930		616,505
Leases	2,856		3,171		3,404		3,128		2,059
Total Loans	$	5,068,085	$	4,829,682	$	4,620,505	$	4,450,322	$	4,317,099

Loan growth was experienced across each of the major loan types in 2015.

On a combined basis, year-end commercial, financial and agricultural loans, construction real estate loans and commercial real estate loans increased by $161 million or 7.7% in 2015 and decreased by $12 million or 0.6% in 2014. The increase in 2015 was due to increases in commercial, financial and agricultural loans of $99.2 million, commercial real estate loans of $44.0 million and an increase of $17.5 million in construction real estate loans. The decrease in 2014 was primarily due to the fact that the increase in commercial, financial and agricultural loans of $31.1 million was more than offset by decreases in construction real estate and commercial real estate of $312,000 and $42.6 million, respectively.

Consumer loans increased by $74 million or 8.3% in 2015 and increased by $169 million or 23.3% in 2014. The increase in consumer loans in each of 2015 and 2014 was primarily due to an increase in automobile lending in Ohio.

The long-term, fixed-rate residential mortgage loans that Park originates are generally sold in the secondary market and Park typically retains servicing on these loans. The balance of sold fixed-rate residential mortgage loans, in which Park has maintained the servicing rights, was $1,273 million at year-end 2015, compared to $1,264 million at year-end 2014, and $1,326 million at year-end 2013.    

Table 14 - Selected Loan Maturity Distribution
	One Year or Less (1)		Over One Through Five Years		Over  Five  Years		Total
December 31, 2015
(In thousands)
Commercial, financial and agricultural	$	74,400	$	438,752	$	442,575	$	955,727
Construction real estate	38,592		38,528		96,225		173,345
Commercial real estate	48,535		106,830		958,238		1,113,603
Total	$	161,527	$	584,110	$	1,497,038	$	2,242,675
Total of these selected loans due
after one year with:
Fixed interest rate			$	312,822	$	406,084	$	718,906
Floating interest rate			271,288		1,090,954		1,362,242

(1)  Nonaccrual loans of $44.0 millionare included within the one year or less classification above.

Investment Securities: Park’s investment securities portfolio is structured to minimize credit risk, provide liquidity and contribute to earnings. As conditions change over time, Park’s overall interest rate risk, liquidity needs and potential return on the investment portfolio will change.  Management regularly evaluates the securities in the investment portfolio as circumstances evolve.  Circumstances that could result in the sale of a security include: to better manage interest rate risk; to meet liquidity needs; or to improve the overall yield in the investment portfolio.

10

Park classifies the majority of our securities as AFS (see Note 5 of the Notes to Consolidated Financial Statements).  These securities are carried on the books at their estimated fair value with the unrealized holding gain or loss, net of federal taxes, accounted for as accumulated other comprehensive income (loss).  The securities that are classified as AFS are free to be sold in future periods in carrying out Park’s investment strategies.

Park classifies certain types of U.S. Government sponsored entity collateralized mortgage obligations (“CMOs”) that we purchase as held-to-maturity ("HTM").  In addition, starting in 2015, Park began to purchase tax-exempt municipal securities, also classified at HTM. These securities are classified as HTM because they are generally not as liquid as the investment securities that Park classifies as AFS. A classification of HTM means that Park has the positive intent and the ability to hold these securities until maturity. At year-end 2015, Park’s HTM securities portfolio was $149 million, compared to $141 million at year-end 2014, and $182 million at year-end 2013. Included in the HTM securities portfolio as of December 31, 2015 are $48.2 million of tax-exempt municipal securities. All of the CMOs, mortgage-backed securities, and callable notes in Park’s investment portfolio were issued by U.S. Government sponsored entities.

Average taxable investment securities were $1,472 million in 2015, compared to $1,433 million in 2014, and $1,377 million in 2013.  The average yield on taxable investment securities was 2.45% in 2015, compared to 2.58% in 2014, and 2.66% in 2013.  Average tax-exempt investment securities were $5.9 million in 2015, compared to $65,000 in 2014, and $1.0 million in 2013.  The average tax-equivalent yield on tax-exempt investment securities was 4.72% in 2015, compared to 6.97% in 2014, and 7.07% in 2013.

Total investment securities (at amortized cost) were $1,644 million at December 31, 2015, compared to $1,499 million at December 31, 2014, and $1,470 million at December 31, 2013.  Management purchased investment securities totaling $506 million in 2015, $352 million in 2014, and $583 million in 2013. Proceeds from repayments and maturities of investment securities were $357 million in 2015, $140 million in 2014, and $605 million in 2013.  

Proceeds from sales of investment securities were $3.1 million in 2015. These investment securities had a book value of $3.1 million and resulted in a gain on sale of $88,000. Proceeds from sales of investment securities were $173.1 million in 2014. Of the investment securities sold in 2014, a small portion with a book value of $187,000 was sold for a gain of $22,000. The remaining investment securities sold in 2014, with a book value of $174.1 million, were sold at a loss of $1.2 million.  Proceeds from sales of investment securities were $75 million in 2013. These securities were sold at book value; thus, there was no gain or loss recognized.

At year-end 2015, 2014, and 2013, the average tax-equivalent yield on the total investment portfolio was 2.28%, 2.47% and 2.53%, respectively.  The weighted average remaining maturity of the total investment portfolio was 4.8 years at December 31, 2015, 5.2 years at December 31, 2014, and 6.5 years at December 31, 2013.  Obligations of the U.S. Treasury and other U.S. Government sponsored entities and U.S. Government sponsored entities' asset-backed securities were approximately 93.3% of the total investment portfolio at year-end 2015, approximately 96.0% of the total investment portfolio at year-end 2014, and approximately 95.2% of the total investment portfolio at year-end 2013. 

The average maturity of the investment portfolio would lengthen if long-term interest rates were to increase as principal repayments from mortgage-backed securities and CMOs would decline and callable U.S. Government sponsored entity notes would extend to their maturity dates.  At year-end 2015, management estimated that the average maturity of the investment portfolio would lengthen to 5.0 years with a 100 basis point increase in long-term interest rates and to 5.2 years with a 200 basis point increase in long-term interest rates.  Likewise, the average maturity of the investment portfolio would shorten if long-term interest rates were to decrease as the principal repayments from mortgage-backed securities and CMOs would increase as borrowers would refinance their mortgage loans and the callable U.S. Government sponsored entity notes would shorten to their call dates.  At year-end 2015, management estimated that the average maturity of the investment portfolio would decrease to 2.2 years with a 100 basis point decrease in long-term interest rates and to 1.7 years with a 200 basis point decrease in long-term interest rates.

11

Table 15 sets forth the carrying value of investment securities, as well as the percentage held within each category at year-end 2015, 2014 and 2013:

Table 15  -  Investment Securities
December 31,
(In thousands)	2015			2014			2013
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	522,063		$	538,064		$	525,136
Obligations of states and political subdivisions	48,190			—			240
U.S. Government asset-backed securities	1,012,605			901,715			830,292
Federal Home Loan Bank stock	50,086			50,086			59,031
Federal Reserve Bank stock	8,225			8,225			6,876
Equities	2,710			2,698			2,659
Total	$	1,643,879		$	1,500,788		$	1,424,234
Investments by category as a percentage of total investment securities
Obligations of U.S. Treasury and other U.S. Government sponsored entities	31.8		%	35.9		%	36.9		%
Obligations of states and political subdivisions	2.9		%	—		%	N.M.
U.S. Government asset-backed securities	61.6		%	60.1		%	58.3		%
Federal Home Loan Bank stock	3.0		%	3.3		%	4.1		%
Federal Reserve Bank stock	0.5		%	0.5		%	0.5		%
Equities	0.2		%	0.2		%	0.2		%
Total	100.0		%	100.0		%	100.0		%

 N.M. - Not meaningful

ANALYSIS OF EARNINGS

Park’s principal source of earnings is net interest income, the difference between total interest income and total interest expense.  Net interest income results from average balances outstanding for interest earning assets and interest bearing liabilities in conjunction with the average rates earned and paid on them.  (See Table 16 for three years of history on the average balances of the balance sheet categories as well as the average rates earned on interest earning assets and the average rates paid on interest bearing liabilities.)

12

Table 16 - Distribution of Assets, Liabilities and Shareholders' Equity
December 31,	2015							2014							2013
(In thousands)	Daily Average			Interest		Average Rate		Daily Average			Interest		Average Rate		Daily Average			Interest		Average Rate
ASSETS
Interest earning assets:
Loans (1) (2)	$	4,909,579		$	228,746	4.66	%	$	4,717,297		$	228,487	4.84	%	$	4,514,781		$	226,816	5.02	%
Taxable investment securities	1,472,285			36,026		2.45	%	1,432,627			36,981		2.58	%	1,376,913			36,686		2.66	%
Tax-exempt investment securities (3)	5,923			279		4.72	%	65			5		6.97	%	974			69		7.07	%
Money market instruments	342,997			888		0.26	%	204,874			515		0.25	%	272,851			678		0.25	%
Total interest earning assets	6,730,784			265,939		3.95	%	6,354,863			265,988		4.19	%	6,165,519			264,249		4.29	%
Non-interest earning assets:
Allowance for loan losses	(56,947		)					(58,917		)					(56,860		)
Cash and due from banks	117,286							112,113							110,796
Premises and equipment, net	58,377							55,407							56,303
Other assets	456,960							429,836							425,291
TOTAL	$	7,306,460						$	6,893,302						$	6,701,049
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest bearing liabilities:
Transaction accounts	$	1,257,681		$	816	0.06	%	$	1,291,310		$	825	0.06	%	$	1,251,305		$	927	0.07	%
Savings deposits	1,544,316			1,413		0.09	%	1,216,750			852		0.07	%	1,098,860			846		0.08	%
Time deposits	1,353,199			10,125		0.75	%	1,312,868			9,323		0.71	%	1,392,196			11,235		0.81	%
Total interest bearing deposits	4,155,196			12,354		0.30	%	3,820,928			11,000		0.29	%	3,742,361			13,008		0.35	%
Short-term borrowings	258,717			469		0.18	%	263,270			517		0.20	%	253,123			544		0.22	%
Long-term debt (4)	793,469			24,619		3.10	%	867,615			28,582		3.29	%	870,538			28,370		3.26	%
Total interest bearing liabilities	5,207,382			37,442		0.72	%	4,951,813			40,099		0.81	%	4,866,022			41,922		0.86	%

13

Table 16 - Continued
Non-interest bearing liabilities:
Demand deposits	1,311,628						1,196,625						1,117,379
Other	77,123						64,415						74,039
Total non-interest bearing liabilities	1,388,751						1,261,040						1,191,418
Shareholders' equity	710,327						680,449						643,609
TOTAL	$	7,306,460					$	6,893,302					$	6,701,049
Tax equivalent net interest income			$	228,497					$	225,889					$	222,327
Net interest spread					3.23	%					3.38	%					3.43	%
Net yield on interest earning assets (net interest margin)					3.39	%					3.55	%					3.61	%

(1) Loan income includes net loan related fee income and origination costs (expense) of ($1.0 million) in 2015, $1.3 million in 2014, and $1.9 million in 2013. Loan income also includes the effects of taxable equivalent adjustments using a 35% tax rate in 2015, 2014 and 2013.  The taxable equivalent adjustment was $767,000 in 2015, $843,000 in 2014, and $1.3 million in 2013.

(2) For the purpose of the computation for loans, nonaccrual loans are included in the daily average loans outstanding.

(3) Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 35% tax rate in 2015, 2014 and 2013. The taxable equivalent adjustments were $98,000 in 2015, $2,000 in 2014, and $24,000 in 2013.

(4) Includes subordinated notes.

The following table displays (for each quarter of 2015) the average balance of interest earning assets, the net interest income and the tax equivalent net interest income and net interest margin.

Table 17  - Quarterly Net Interest Margin
(In thousands)	Average Interest Earning Assets		Net Interest Income		Tax Equivalent Net Interest Income	Tax Equivalent Net Interest Margin
First Quarter	$	6,636,498	$	55,535	55,696	3.40	%
Second Quarter	6,689,497		56,515		56,685	3.40	%
Third Quarter	6,828,647		57,715		57,935	3.37	%
Fourth Quarter	6,765,996		57,867		58,181	3.41	%
2015	$	6,730,784	$	227,632	228,497	3.39	%

14

In the following table, the change in tax equivalent interest due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.

Table 18  -  Volume/Rate Variance Analysis
	Change from 2014 to 2015									Change from 2013 to 2014
(In thousands)	Volume			Rate			Total			Volume			Rate			Total
Increase (decrease) in:
Interest income:
Total loans	$	9,016		$	(8,757	)	$	259		$	9,961		$	(8,290	)	$	1,671
Taxable investments	982			(1,937		)	(955		)	1,433			(1,138		)	295
Tax-exempt investments	276			(2		)	274			(63		)	(1		)	(64		)
Money market instruments	352			21			373			(163		)	—			(163		)
Total interest income	10,626			(10,675		)	(49		)	11,168			(9,429		)	1,739
Interest expense:
Transaction accounts	$	(9	)	$	—		$	(9	)	$	27		$	(129	)	$	(102	)
Savings accounts	273			289			562			104			(98		)	6
Time deposits	283			519			802			(604		)	(1,308		)	(1,912		)
Short-term borrowings	(7		)	(41		)	(48		)	23			(50		)	(27		)
Long-term debt	(2,365		)	(1,599		)	(3,964		)	(83		)	295			212
Total interest expense	(1,825		)	(832		)	(2,657		)	(533		)	(1,290		)	(1,823		)
Net variance	$	12,451		$	(9,843	)	$	2,608		$	11,701		$	(8,139	)	$	3,562

Other Income:  Other income was $77.6 million in 2015, compared to $75.5 million in 2014, and $73.3 million in 2013.

The following table displays total other income for Park in 2015, 2014 and 2013.

Table 19 - Other Income
Year Ended December 31,
(In thousands)	2015			2014			2013
Income from fiduciary activities	$	20,195		$	19,150		$	17,133
Service charges on deposits	14,751			15,423			16,316
Other service income	11,438			10,459			12,913
Checkcard fee income	14,561			13,570			12,955
Bank owned life insurance income	5,783			4,861			5,041
ATM fees	2,428			2,467			2,632
Gain on the sale of OREO, net	1,604			5,503			3,110
OREO devaluations	(1,592		)	(2,406		)	(3,180		)
Gain on the sale of commercial loans held for sale	756			1,867			—
Gain (loss) on sale of investment securities	88			(1,158		)	—
Miscellaneous	7,539			5,813			6,357
Total other income	$	77,551		$	75,549		$	73,277

15

The following table breaks out the change in total other income for the year ended December 31, 2015 compared to the year ended December 31, 2014, and for the year ended December 31, 2014 compared to the year ended December 31, 2013 between Park's Ohio-based operations and SEPH.

Table 20 - Other Income Breakout
	Change from 2014 to 2015									Change from 2013 to 2014
(In thousands)	Ohio-based operations			SEPH			Total			Ohio-based operations			SEPH			Total
Income from fiduciary activities	$	1,045		$	—		$	1,045		$	2,017		$	—		$	2,017
Service charges on deposits	(672		)	—			(672		)	(893		)	—			(893		)
Other service income	2,011			(1,032		)	979			(3,726		)	1,272			(2,454		)
Checkcard fee income	991			—			991			615			—			615
Bank owned life insurance income	922			—			922			(180		)	—			(180		)
ATM fees	(39		)	—			(39		)	(165		)	—			(165		)
Gain on the sale of OREO, net	(1,220		)	(2,679		)	(3,899		)	1,642			751			2,393
OREO devaluations	335			479			814			1,011			(237		)	774
Gain on sale of commercial loans held for sale	363			(1,474		)	(1,111		)	(329		)	2,196			1,867
Gain (loss) on sale of investment securities	1,246			—			1,246			(1,158		)	—			(1,158		)
Miscellaneous	1,163			563			1,726			(597		)	53			(544		)
Total other income	$	6,145		$	(4,143	)	$	2,002		$	(1,763	)	$	4,035		$	2,272

Income from fiduciary activities increased by $1.0 million in 2015, or 5.5%, to $20.2 million in 2015, compared to $19.2 million in 2014. The $19.2 million in 2014 was an increase of $2.0 million, or 11.8%, compared to $17.1 million in 2013.  The increases in fiduciary fee income in 2015 and 2014 were primarily due to improvements in the equity markets and also due to an increase in the total account balances serviced by PNB’s Trust Department.  PNB charges fiduciary fees largely based on the market value of the assets being managed. The average market value of the trust assets managed by PNB was $4.38 billion in 2015, compared to $4.26 billion in 2014, and $3.86 billion in 2013.

Service charges on deposit accounts decreased by $672,000, or 4.4%, to $14.8 million in 2015, compared to $15.4 million in 2014. The $15.4 million in 2014 was a decrease of $893,000, or 5.5%, compared to $16.3 million in 2013. The declines in 2015 and 2014 were related to declines in service charges on deposits within Park's Ohio-based operations, largely as a result of a decline in fee income from overdraft charges and other non-sufficient funds (NSF) charges.  Park’s customers did not use our courtesy overdraft program as frequently in 2014 and 2015.

Fee income earned from origination and sale into the secondary market of long-term, fixed-rate mortgage loans is included within “Other service income”.  Other service income increased by $979,000, or 9.4%, to $11.4 million in 2015, compared to $10.5 million in 2014. The $10.5 million in 2014 was a decrease of $2.5 million, or 19%, compared to $12.9 million in 2013. The increase at PNB during 2015 was primarily due to a corresponding increase in the amount of mortgage loans originated. The decline of $1.0 million at SEPH in 2015 is due to a decline in the recovery of fees in 2015. The decrease during 2014 consisted of a $3.7 million decrease at PNB offset by a $1.2 million increase at SEPH due to the recovery of fees. The decrease in other service income in 2014 at PNB was primarily due to a corresponding decrease in the amount of mortgage loans originated.

Checkcard fee income, which is generated from debit card transactions, increased $991,000, or 7.3%, to $14.6 million in 2015, compared to $13.6 million in 2014. The $13.6 million in 2014 was an increase of $615,000, or 4.7%, compared to $13.0 million in 2013. The increases in 2015 and 2014 were attributable to continued increases in the volume of debit card transactions.

Bank owned life insurance income increased by $922,000, or 19.0%, to $5.8 million in 2015, compared to $4.9 million in 2014. The increase was primarily related to $1.3 million of income from death benefits paid on policies during 2015, compared to $383,000 of income from death benefits paid on policies in 2014.

16

Gain on the sale of OREO, net, totaled $1.6 million in 2015, a decrease of $3.9 million, compared to $5.5 million in 2014. The $5.5 million in 2014 was an increase of $2.4 million, compared to $3.1 million in 2013. The table below provides details on the OREO sales at PNB and SEPH in 2015, 2014, and 2013.

Other miscellaneous income increased by $1.7 million, or 29.7%, to $7.5 million in 2015, compared to $5.8 million in 2014.  The increase in 2015 was primarily due to $1.2 million in income from the operation of OREO properties.

Table 21 - Sales of OREO
(In thousands)	OREO Properties Sold	Book Balance of OREO Sold		Net Proceeds of OREO Sold		Gain on Sale (1)
2015:
PNB	65	$	6,853	$	7,332	$	479
PNB Participations in Vision assets	3	521		984		463
SEPH	20	8,158		8,742		584
Total	88	$	15,532	$	17,058	$	1,526
2014:
PNB	90	$	7,271	$	8,191	$	920
PNB Participations in Vision assets	1	1,826		3,085		1,259
SEPH	114	13,258		16,522		3,264
Total	205	$	22,355	$	27,798	$	5,443
2013:
PNB	111	$	9,527	$	10,161	$	634
PNB Participations in Vision assets	—	—		—		—
SEPH	104	10,369		12,882		2,513
Total	215	$	19,896	$	23,043	$	3,147

(1) The gain on sale amounts above exclude any deferred gain on sale.

OREO devaluations, which result from declines in the fair value (less anticipated selling costs) of property acquired through foreclosure, totaled $1.6 million in 2015, a decrease of $814,000, or 33.8%, compared to $2.4 million in 2014. The $2.4 million in 2014 was a decrease of $774,000, or 24.3%, compared to $3.2 million in 2013. Of the $1.6 million in OREO devaluations in 2015, $1.2 million were related to devaluations at PNB, of the $2.4 million in OREO devaluations in 2014, $1.6 million were related to PNB, and of the $3.2 million in OREO devaluations in 2013, $2.6 million were related to PNB. The decline in OREO devaluations is consistent with the trend of lower OREO balances across the Park organization, which totaled $18.7 million, $22.6 million, and $34.6 million at December 31, 2015, 2014 and 2013, respectively.

Gain on the sale of commercial loans held for sale was $756,000 for 2015. This was related to certain commercial loans, which had a book balance of $144,000, that were sold in the first quarter of 2015. Gain on sale of commercial loans held for sale was $1.9 million in 2014. PNB sold $12.7 million of commercial loans held for sale in 2014, which resulted in a $328,000 loss on sale. SEPH sold $6.4 million of commercial loans held for sale in 2014, which resulted in a $2.2 million gain on sale.

17

Other Expense: Other expense was $186.6 million in 2015, compared to $187.5 million in 2014, and $181.5 million in 2013.  Other expense decreased by $896,000, or 0.5% in 2015, and increased by $6.0 million, or 3.3% in 2014. The following table displays total other expense for Park for 2015, 2014 and 2013.

Table 22 - Other Expense
Year Ended December 31,
(In thousands)	2015		2014		2013
Salaries	$	86,189	$	81,977	$	80,985
Employee benefits	21,296		19,991		19,313
Data processing fees	5,037		4,712		4,174
Professional fees and services	23,452		29,580		27,865
Net occupancy expense of bank premises	9,686		10,006		9,804
Furniture and equipment expense	11,806		11,571		11,249
Insurance	5,629		5,723		5,205
Marketing	3,983		4,371		3,790
Postage and telephone	5,130		5,268		5,790
State taxes	3,566		2,290		3,702
OREO expense	1,446		2,063		2,731
Miscellaneous	9,394		9,958		6,907
Total other expense	$	186,614	$	187,510	$	181,515
Full-time equivalent employees	1,793		1,801		1,836

The following table breaks out the change in other expense for the year ended December 31, 2015, compared to the year ended December 31, 2014, and for the year ended December 31, 2014 compared to the year ended December 31, 2013 in each of Park's Ohio-based operations and SEPH.

Table 23 - Other Expense Breakout
	Change from 2014 to 2015									Change from 2013 to 2014
(In thousands)	Ohio-based operations			SEPH			Total			Ohio-based operations			SEPH			Total
Salaries	$	4,556		$	(344	)	$	4,212		$	1,195		$	(203	)	$	992
Employee benefits	1,510			(205		)	1,305			430			248			678
Data processing fees	325			—			325			538			—			538
Professional fees and services	(780		)	(5,348		)	(6,128		)	598			1,117			1,715
Net occupancy expense of bank premises	(320		)	—			(320		)	206			(4		)	202
Furniture and equipment expense	236			(1		)	235			334			(12		)	322
Insurance	(88		)	(6		)	(94		)	508			10			518
Marketing	(388		)	—			(388		)	581			—			581
Postage and telephone	(135		)	(3		)	(138		)	(521		)	(1		)	(522		)
State taxes	1,351			(75		)	1,276			(1,451		)	39			(1,412		)
OREO expense	(428		)	(189		)	(617		)	(684		)	16			(668		)
Miscellaneous	(1,151		)	587			(564		)	4,706			(1,655		)	3,051
Total other expense	$	4,688		$	(5,584	)	$	(896	)	$	6,440		$	(445	)	$	5,995

18

Salaries expense increased $4.2 million, or 5.1%, to $86.2 million in 2015, and increased by $1.0 million, or 1.2%, to $82.0 million in 2014. The increase in 2015 was due to an increase in salaries of $2.8 million, an increase in incentive compensation of $848,000, and an increase in share-based compensation expense related to the Park 2013 Long-Term Incentive Plan of $407,000 compared to 2014. While total full-time equivalent employees did not increase in 2015, Park has experienced an increase in higher paid positions. The increase in 2014 was primarily due to an increase of $992,000 in salary expense. Park had 1,793 full-time equivalent employees at year-end 2015, compared to 1,801 full-time equivalent employees at year-end 2014, and 1,836 full-time equivalent employees at year-end 2013.

Employee benefits expense increased $1.3 million, or 6.5%, to $21.3 million in 2015, and increased by $678,000, or 3.5%, to $20.0 million in 2014. The increase in 2015 was due to a $1.3 million increase in pension and salary deferral plan expense, compared to 2014. The increase in 2014 was primarily due to increases of $3.4 million in group medical insurance, and $1.2 million in other employee benefits, offset by a $4.1 million decrease in retirement benefit expense.

Professional fees and services decreased $6.1 million, or 20.7%, to $23.5 million in 2015, compared to $29.6 million in 2014. The $29.6 million in 2014 was an increase of $1.7 million, or 6.2%, compared to $27.9 million in 2013. This subcategory of total other expense includes legal fees, management consulting fees, director fees, audit fees, regulatory examination fees and memberships in industry associations. The decrease in professional fees and services expense in 2015 was largely related to declines in legal expenses associated with PNB participations in Vision loans and other loan relationships at SEPH. The increase in professional fees and services expense in 2014 was primarily due to increases in legal and consulting fees at both PNB and SEPH.

OREO expense declined $617,000, or 29.9%, to $1.4 million in 2015, compared to $2.1 million in 2014. The $2.1 million in 2014 was a decline of $668,000, or 24.5%, compared to $2.7 million in 2013. The decline in OREO expense was consistent with the trend of lower OREO balances across the Park organization, which totaled $18.7 million, $22.6 million and $34.6 million at December 31, 2015, 2014 and 2013, respectively.

The subcategory "Miscellaneous" other expense includes expenses for supplies, travel, charitable contributions, and other miscellaneous expense. The subcategory miscellaneous other expense decreased by $564,000, or 5.7%, to $9.4 million in 2015, compared to $10.0 million in 2014. The $10.0 million in 2014 was an increase of $3.1 million, or 44.2%, compared to the $6.9 million in 2013. The $3.1 million increase in 2014 was primarily due to a charitable contribution and a contract termination fee.

Income Taxes: Federal income tax expense was $32.6 million in 2015, compared to $36.5 million in 2014, and $32.5 million in 2013.  Federal income tax expense as a percentage of income before taxes was 28.7% in 2015, 30.3% in 2014, and 29.7% in 2013.  The difference between the statutory federal income tax rate of 35% and Park’s effective tax rate reflects permanent tax differences, primarily consisting of tax-exempt interest income from municipal investments and loans, qualified affordable housing and historical tax credits, bank owned life insurance income, and dividends paid on common shares held within Park’s salary deferral plan. Park's permanent tax differences for 2015 were approximately $7.2 million compared to $5.7 million for 2014.

CREDIT EXPERIENCE

Provision for (Recovery of) Loan Losses: The provision for (recovery of) loan losses is the amount added to the allowance for loan losses to ensure the allowance is sufficient to absorb probable, incurred credit losses. The amount of the provision for (recovery of) loan losses is determined by management after reviewing the risk characteristics of the loan portfolio, historic and current loan loss experience and current economic conditions.

19

The table below provides additional information on the provision for loan losses and the ALLL for Park for 2015, 2014 and 2013.

Table 24 - ALLL Information - Park
(In thousands)	2015			2014			2013
ALLL, beginning balance	$	54,352		$	59,468		$	55,537
Charge-offs	14,290			24,780			19,153
Recoveries	(11,442		)	(26,997		)	(19,669		)
Net charge-offs (recoveries)	2,848			(2,217		)	(516		)
Provision for (recovery of) loan losses:	4,990			(7,333		)	3,415
ALLL, ending balance	$	56,494		$	54,352		$	59,468
Average loans	$	4,909,579		$	4,717,297		$	4,514,781
Net charge-offs (recoveries) as a percentage of average loans	0.06		%	(0.05		)%	(0.01		)%

Park's Ohio-based subsidiaries, PNB and GFSC, are the only subsidiaries that carry an ALLL balance. The table below provides additional information on the provision for loan losses and the ALLL for Park’s Ohio-based subsidiaries for 2015, 2014 and

2013.

Table 25 - ALLL Information - Park's Ohio-Based Subsidiaries
(In thousands)	2015			2014			2013
ALLL, beginning balance	$	54,352		$	59,468		$	55,537
Charge-offs:
Ohio-based subsidiaries loans	14,143			22,988			16,809
PNB participations in Vision loans	20			667			131
Total charge-offs	14,163			23,655			16,940
Recoveries:
Ohio-based subsidiaries loans	(5,770		)	(6,613		)	(4,942		)
PNB participations in Vision loans	(1,455		)	(6,865		)	(715		)
Total recoveries	(7,225		)	(13,478		)	(5,657		)
Net charge-offs	6,938			10,177			11,283
Provision for (recovery of) loan losses:
Ohio-based subsidiaries loans	10,515			11,259			16,095
PNB participations in Vision loans	(1,435		)	(6,198		)	(881		)
Total provision for loan losses	9,080			5,061			15,214
ALLL, ending balance	$	56,494		$	54,352		$	59,468
Average loans, Ohio-based subsidiaries	$	4,891,670		$	4,685,461		$	4,467,156
Net charge-offs as a percentage of average loans	0.14		%	0.22		%	0.25		%
Net charge-offs as a percentage of average loans - excluding PNB participations in Vision loans	0.17		%	0.35		%	0.25		%

20

SEPH, as a non-bank subsidiary of Park, does not carry an ALLL balance, but recognizes a provision for loan losses when a charge-off is taken and recognizes a recovery of loan losses when a recovery is received.

Table 26 - ALLL Information - SEPH
(In thousands)	2015			2014			2013
ALLL, beginning balance	$	—		$	—		$	—
Charge-offs	127			1,125			2,213
Recoveries	(4,217		)	(13,519		)	(14,012		)
Net recoveries	(4,090		)	(12,394		)	(11,799		)
Recovery of loan losses:	(4,090		)	(12,394		)	(11,799		)
ALLL, ending balance	$	—		$	—		$	—
Average loans	$	17,910		$	31,836		$	47,625
Net recoveries as a percentage of average loans	(22.84		)%	(38.93		)%	(24.77		)%

At year-end 2015, the allowance for loan losses was $56.5 million, or 1.11% of total loans outstanding, compared to $54.4 million, or 1.13% of total loans outstanding at year-end 2014, and $59.5 million, or 1.29% of total loans outstanding at year-end 2013. The table below provides additional information related to specific reserves on impaired commercial loans and general reserves for all other loans in Park’s portfolio at December 31, 2015, 2014 and 2013.

Table 27 - General Reserve Trends - Park
	Year Ended December 31,
(In thousands)	2015			2014			2013
Allowance for loan losses, end of period	$	56,494		$	54,352		$	59,468
Specific reserves	4,191			3,660			10,451
General reserves	$	52,303		$	50,692		$	49,017
Total loans	$	5,068,085		$	4,829,682		$	4,620,505
Impaired commercial loans	80,599			73,676			112,304
Non-impaired loans	$	4,987,486		$	4,756,006		$	4,508,201
Allowance for loan losses as a percentage of year-end loans	1.11		%	1.13		%	1.29		%
General reserves as a percentage of non-impaired loans	1.05		%	1.07		%	1.09		%

General reserves increased $1.6 million, or 3.2%, to $52.3 million at December 31, 2015, compared to $50.7 million at December 31, 2014. The increase in general reserves was due to a $2.1 million increase in general reserves in the commercial loan portfolio, as this portfolio of loans experienced significant growth in 2015, offset by a $0.5 million decline in general reserves in the consumer loan portfolio.

Management believes that the allowance for loan losses at year-end 2015 is adequate to absorb probable, incurred credit losses in the loan portfolio. See Note 1 of the Notes to Consolidated Financial Statements and the discussion under the heading “CRITICAL ACCOUNTING POLICIES” earlier in this Management's Discussion and Analysis for additional information on management’s evaluation of the adequacy of the allowance for loan losses.

21

The table below provides a summary of Park's loan loss experience over the past five years:

Table 28  -  Summary of Loan Loss Experience
(In thousands)	2015			2014			2013			2012			2011
Average loans (net of unearned interest)	$	4,909,579		$	4,717,297		$	4,514,781		$	4,410,661		$	4,713,511
Allowance for loan losses:
Beginning balance	54,352			59,468			55,537			68,444			143,575
Charge-offs:
Commercial, financial
and agricultural	2,478			3,779			6,160			26,847			18,350
Real estate - construction	470			1,316			1,791			9,985			64,166
Real estate - residential	2,352			3,944			3,207			8,607			20,691
Real estate - commercial	348			8,003			1,832			10,454			23,063
Consumer	8,642			7,738			6,163			5,375			7,612
Leases	—			—			—			—			—
Total charge-offs	$	14,290		$	24,780		$	19,153		$	61,268		$	133,882
Recoveries:
Commercial, financial
and agricultural	$	1,373		$	1,003		$	1,314		$	1,066		$	1,402
Real estate - construction	2,092			12,572			9,378			2,979			1,463
Real estate - residential	2,438			2,985			6,000			5,559			1,719
Real estate - commercial	2,241			7,759			726			783			1,825
Consumer	3,295			2,671			2,249			2,555			2,385
Leases	3			7			2			—			4
Total recoveries	$	11,442		$	26,997		$	19,669		$	12,942		$	8,798
Net charge-offs (recoveries)	$	2,848		$	(2,217	)	$	(516	)	$	48,326		$	125,084
Provision (recovery) included in earnings	4,990			(7,333		)	3,415			35,419			63,272
Transfer of loans at fair value	—			—			—			—			(219		)
Allowance for loan losses transferred to held for sale	—			—			—			—			(13,100		)
Ending balance	$	56,494		$	54,352		$	59,468		$	55,537		$	68,444
Ratio of net charge-offs (recoveries) to average loans	0.06		%	(0.05		)%	(0.01		)%	1.10		%	2.65		%
Ratio of allowance for loan losses
to end of year loans	1.11		%	1.13		%	1.29		%	1.25		%	1.59		%

22

The following table summarizes Park's allocation of the allowance for loan losses for the past five years:

Table 29 - Allocation of Allowance for Loan Losses
December 31,	2015				2014				2013				2012				2011
(In thousands)	Allowance		Percent of Loans Per Category		Allowance		Percent of Loans Per Category		Allowance		Percent of Loans Per Category		Allowance		Percent of Loans Per Category		Allowance		Percent of Loans Per Category
Commercial, financial, and agricultural	$	13,731	18.86	%	$	10,719	17.73	%	$	14,218	17.87	%	$	15,635	18.51	%	$	16,950	17.23	%
Real estate - construction	8,416		3.42	%	8,652		3.23	%	6,855		3.38	%	6,841		3.72	%	14,433		5.04	%
Real estate - residential	13,569		36.61	%	14,772		38.33	%	14,251		38.95	%	14,759		38.51	%	15,692		37.72	%
Real estate - commercial	9,248		21.97	%	8,808		22.15	%	15,899		24.07	%	11,736		24.54	%	15,539		25.68	%
Consumer	11,530		19.08	%	11,401		18.49	%	8,245		15.66	%	6,566		14.65	%	5,830		14.28	%
Leases	—		0.06	%	—		0.07	%	—		0.07	%	—		0.07	%	—		0.05	%
Total	$	56,494	100.00	%	$	54,352	100.00	%	$	59,468	100.00	%	$	55,537	100.00	%	$	68,444	100.00	%

As of December 31, 2015, Park had no concentrations of loans exceeding 10% to borrowers engaged in the same or similar industries nor did Park have any loans to foreign governments.

Nonperforming Assets: Nonperforming loans include: 1) loans whose interest is accounted for on a nonaccrual basis; 2) troubled debt restructurings (TDRs) on accrual status; and 3) loans which are contractually past due 90 days or more as to principal or interest payments, where interest continues to accrue.  Park's management continues to evaluate TDRs to determine those that may be appropriate to return to accrual status. Specifically, if the restructured note has been current for a period of at least six months and management expects the borrower will remain current throughout the renegotiated contract, the loan may be returned to accrual status. Nonperforming assets include nonperforming loans and OREO. OREO results from taking possession of property that served as collateral for a defaulted loan.

Generally, management obtains updated appraisal information for nonperforming loans and OREO annually. As new appraisal information is received, management performs an evaluation of the appraisal and applies a discount for anticipated disposition costs to determine the net realizable value of the collateral, which is compared to the outstanding principal balance to determine if additional write-downs are necessary.

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The following is a summary of Park’s nonaccrual loans, accruing TDRs, loans past due 90 days or more and still accruing, and OREO for the last five years:

Table 30  -  Park - Nonperforming Assets
	December 31,
(In thousands)	2015			2014			2013			2012			2011
Nonaccrual loans	$	95,887		$	100,393		$	135,216		$	155,536		$	195,106
Accruing TDRs	24,979			16,254			18,747			29,800			28,607
Loans past due 90 days or more and accruing	1,921			2,641			1,677			2,970			3,489
Total nonperforming loans	$	122,787		$	119,288		$	155,640		$	188,306		$	227,202
OREO – PNB	7,456			10,687			11,412			14,715			13,240
OREO – SEPH	11,195			11,918			23,224			21,003			29,032
Total nonperforming assets	$	141,438		$	141,893		$	190,276		$	224,024		$	269,474
Percentage of nonperforming loans to total loans	2.42		%	2.47		%	3.37		%	4.23		%	5.26		%
Percentage of nonperforming assets to total loans	2.79		%	2.94		%	4.12		%	5.03		%	6.24		%
Percentage of nonperforming assets to total assets	1.93		%	2.03		%	2.87		%	3.37		%	3.86		%

SEPH nonperforming assets for the last five years were as follows:

Table 31 - SEPH - Nonperforming Assets
	December 31,
(In thousands)	2015		2014		2013		2012		2011
Nonaccrual loans	$	14,419	$	22,916	$	36,108	$	55,292	$	98,993
Accruing TDRs	—		97		—		—		2,265
Loans past due 90 days or more and accruing	—		—		—		—		122
Total nonperforming loans	$	14,419	$	23,013	$	36,108	$	55,292	$	101,380
OREO - SEPH	11,195		11,918		23,224		21,003		29,032
Total nonperforming assets	$	25,614	$	34,931	$	59,332	$	76,295	$	130,412
Percentage of nonperforming loans to total loans	N.M.		N.M.		N.M.		N.M.		N.M.
Percentage of nonperforming assets to total loans	N.M.		N.M.		N.M.		N.M.		N.M.
Percentage of nonperforming assets to total assets	N.M.		N.M.		N.M.		N.M.		N.M.

N.M.- Not meaningful

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Nonperforming assets for Park, excluding SEPH, for the last five years were as follows:

Table 32 - Park excluding SEPH - Nonperforming Assets
	December 31,
(In thousands)	2015			2014			2013			2012			2011
Nonaccrual loans	$	81,468		$	77,477		$	99,108		$	100,244		$	96,113
Accruing TDRs	24,979			16,157			18,747			29,800			26,342
Loans past due 90 days or more and accruing	1,921			2,641			1,677			2,970			3,367
Total nonperforming loans	$	108,368		$	96,275		$	119,532		$	133,014		$	125,822
OREO – PNB	7,456			10,687			11,412			14,715			13,240
Total nonperforming assets (1)	$	115,824		$	106,962		$	130,944		$	147,729		$	139,062
Percentage of nonperforming loans to total loans	2.14		%	2.00		%	2.61		%	3.03		%	3.00		%
Percentage of nonperforming assets to total loans	2.29		%	2.23		%	2.86		%	3.36		%	3.32		%
Percentage of nonperforming assets to total assets	1.60		%	1.55		%	2.00		%	2.26		%	2.21		%

(1) Includes PNB participations in loans originated by Vision and related OREO totaling $9.8 million, $11.5 million, $12.3 million, $19.0 million, and $25.9 million for the years ended December 31, 2015, 2014, 2013, 2012, and 2011, respectively.

Park’s allowance for loan losses includes an allocation for loans specifically identified as impaired under GAAP. At December 31, 2015, loans considered to be impaired consisted substantially of commercial loans graded as "substandard" or “doubtful” and placed on non-accrual status.  Specific reserves on impaired commercial loans are typically based on management’s best estimate of the fair value of collateral securing these loans. The amount ultimately charged off for these loans may be different from the specific reserve as the ultimate liquidation of the collateral may be for amounts different from management’s estimates.

When determining the quarterly and annual loan loss provision, Park reviews the grades of commercial loans.  These loans are graded from 1 to 8.  A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss.  Commercial loans that are pass-rated are considered to be of acceptable credit risk.  Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans.  Commercial loans graded 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans.  Generally, commercial loans that are graded a 6 are considered for partial charge-off or have been charged down to the net realizable value of the underlying collateral.  Commercial loans that are graded a 7 (doubtful) are shown as nonperforming and Park charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve.  Any commercial loan graded an 8 (loss) is completely charged off.

The following table highlights the credit trends within the commercial loan portfolio of Park’s Ohio-based operations.

Table 33 - Park Ohio - Commercial Credit Trends
Commercial loans * (In thousands)	December 31, 2015		December 31, 2014		December 31, 2013
Pass rated	$	2,493,518	$	2,360,689	$	2,311,914
Special Mention	24,223		15,946		26,361
Substandard	4,268		3,553		2,687
Impaired	66,232		51,323		77,038
Total	$	2,588,241	$	2,431,511	$	2,418,000

* Commercial loans include: (1) Commercial, financial and agricultural loans, (2) Commercial real estate loans, (3) Commercial related loans in the construction real estate portfolio and (4) Commercial related loans in the residential real estate portfolio.

Delinquent and accruing loan trends for Park's Ohio-based operations have improved over the past 24 months. Delinquent and accruing loans were $25.7 million, or 0.51% of total loans at December 31, 2015, compared to $33.0 million, or 0.69% of total loans at December 31, 2014, and $32.0 million, or 0.70% of total loans at December 31, 2013.

Impaired commercial loans for Park's Ohio-based operations were $66.2 million as of December 31, 2015, an increase of $14.9 million, compared to $51.3 million as of December 31, 2014. The $66.2 million of impaired commercial loans at December 31, 2015 included $12.4 million of loans modified in a troubled debt restructuring which are currently on accrual status and

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performing in accordance with the restructured terms, up from $3.6 million at December 31, 2014. The increase in 2015 was not due to an overall deterioration of credit quality, rather the increase was primarily due to a $6.2 million loan relationship that moved to nonaccrual status and a $7.9 million loan relationship that was deemed to be a TDR and is currently on accrual status. Impaired commercial loans were $77.0 million at December 31, 2013. Impaired commercial loans are individually evaluated for impairment and specific reserves are established to cover any probable, incurred losses for those loans that have not been charged down to the net realizable value of the underlying collateral or to the net present value of expected cash flows.

Park had $28.5 million of non-impaired commercial loans included on the watch list at December 31, 2015, compared to $19.5 million of non-impaired commercial loans at year-end 2014, and $29.0 million of non-impaired commercial loans at year-end 2013. Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) certain real estate construction loans; and (4) certain residential real estate loans. Park’s watch list includes all criticized and classified commercial loans, defined by Park as loans rated special mention or worse, less those commercial loans currently considered to be impaired. As a percentage of year-end total commercial loans, Park’s watch list of potential problem commercial loans was 1.1% in 2015, 0.8% in 2014, and 1.2% in 2013. The existing conditions of these loans do not warrant classification as nonaccrual. However, these loans have shown some weakness and management performs additional analyses regarding each borrower’s ability to comply with payment terms for watch list loans.

As of December 31, 2015, management had taken partial charge-offs of approximately $28.7 million related to the $80.6 million of commercial loans considered to be impaired, compared to charge-offs of approximately $32.5 million related to the $73.7 million of impaired commercial loans at December 31, 2014.  The table below provides additional information related to Park's impaired commercial loans at December 31, 2015, including those impaired commercial loans at PNB, PNB participations in impaired Vision loans and those impaired Vision commercial loans retained at SEPH.

Table 34 - Park Impaired Commercial Loans
December 31, 2015
(In thousands)	Unpaid principal balance (UPB)		Prior charge- offs		Total impaired loans		Specific reserve		Carrying balance		Carrying balance as a % of UPB
PNB	$	66,376	$	5,285	$	61,091	$	4,191	$	56,900	85.72	%
PNB Participations in Vision loans	9,495		4,354		5,141		—		5,141		54.14	%
SEPH	33,433		19,066		14,367		—		14,367		42.97	%
Total Park	$	109,304	$	28,705	$	80,599	$	4,191	$	76,408	69.90	%

A significant portion of Park’s allowance for loan losses is allocated to commercial loans. “Special mention” loans are loans that have potential weaknesses that may result in loss exposure to Park.  “Substandard” loans are those that exhibit a well-defined weakness, jeopardizing repayment of the loans, resulting in a higher probability that Park will suffer a loss on the loans unless the weakness is corrected. Park’s annualized 84-month loss experience, defined as charge-offs plus changes in specific reserves, within the commercial loan portfolio has been 0.50% of the principal balance of these loans.  This annualized 84-month loss experience includes only the performance of the PNB loan portfolio and excludes the impact of PNB participations in Vision loans. The allowance for loan losses related to performing commercial loans was $31.7 million or 1.26% of the outstanding principal balance of other accruing commercial loans at December 31, 2015.  

The overall reserve of 1.26% for other accruing commercial loans breaks down as follows: pass-rated commercial loans are reserved at 1.21%; special mention commercial loans are reserved at 5.24%; and substandard commercial loans are reserved at 6.07%.  The reserve levels for pass-rated, special mention and substandard commercial loans in excess of the annualized 84-month loss experience of 0.50% are due to the following factors which management reviews on a quarterly or annual basis:

• Loss Emergence Period Factor: Annually during the fourth quarter, management calculates the loss emergence period for each commercial loan segment.  This loss emergence period is calculated based upon the average period of time it takes a credit to move from pass-rated to nonaccrual.  If the loss emergence period for any commercial loan segment is greater than one year, management applies additional general reserves to all performing loans within that segment of the commercial loan portfolio.

• Loss Migration Factor: Park’s commercial loans are individually risk graded. If loan downgrades occur, the probability of default increases, and accordingly, management allocates a higher percentage reserve to those accruing commercial loans graded special mention and substandard.  Annually, management calculates a loss

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migration factor for each commercial loan segment for special mention and substandard credits based on a review of losses over the period of time a loan takes to migrate from pass to nonaccrual.

• Environmental Loss Factor: Management has identified certain macroeconomic factors that trend in accordance with losses in Park’s commercial loan portfolio.  These macroeconomic factors are reviewed quarterly and the adjustments made to the environmental loss factor impacting each segment in the performing commercial loan portfolio correlate to changes in the macroeconomic environment.

Generally, consumer loans are not individually graded.  Consumer loans include: (1) mortgage and installment loans included in the construction real estate segment of the loan portfolio; (2) mortgage, home equity lines of credit (HELOC), and installment loans included in the residential real estate segment of the loan portfolio; and (3) all loans included in the consumer segment of the loan portfolio.  The amount of loan loss reserve assigned to these loans is based on historical loss experience over the past 84 months.  Management generally considers a one-year coverage period (the “Historical Loss Factor”) appropriate because the probable loss on any given loan in the consumer loan pool should ordinarily become apparent in that time frame. However, management may incorporate adjustments to the Historical Loss Factor as circumstances warrant additional reserves (e.g., increased loan delinquencies, improving or deteriorating economic conditions, changes in lending management and underwriting standards, etc.).  At December 31, 2015, the coverage level within the consumer portfolio was approximately 1.99 years.

The judgmental increases discussed above incorporate management’s evaluation of the impact of environmental qualitative factors which pose additional risks and assignment of a component of the allowance for loan losses in consideration of these factors.  Such environmental factors include: national and local economic trends and conditions; experience, ability and depth of lending management and staff; effects of any changes in lending policies and procedures; and levels of, and trends in, consumer bankruptcies, delinquencies, impaired loans, and charge-offs and recoveries.  The determination of this component of the allowance for loan losses requires considerable management judgment.  Management is working to address weaknesses in those loans that may result in future loss.  Actual loss experience may be more or less than the amount allocated.

CAPITAL RESOURCES

Liquidity and Interest Rate Sensitivity Management: Park’s objective in managing our liquidity is to maintain the ability to continuously meet the cash flow needs of customers, such as borrowings or deposit withdrawals, while at the same time seeking higher yields from longer-term lending and investing activities.

Cash and cash equivalents decreased by $88.2 million during 2015 to $149.5 million at year end. Cash provided by operating activities was $88.7 million in 2015, $71.7 million in 2014, and $121.3 million in 2013. Net income was the primary source of cash from operating activities during each year.

Cash used in investing activities was $395.5 million in 2015, $229.6 million in 2014 and $112.6 million in 2013. Investment security transactions are the major use or source of cash in investing activities.  Proceeds from the sale, repayment or maturity of securities provide cash and purchases of securities use cash.  Net security transactions used cash of $145.2 million in 2015, used cash of $29.7 million in 2014, and provided cash of $96.9 million in 2013.  Another major use or source of cash in investing activities is the net increase or decrease in the loan portfolio.  Cash used by the net increase in the loan portfolio was $247.9 million in 2015, $234.0 million in 2014, and $212.3 million in 2013.

Cash provided by financing activities was $218.5 million in 2015, $248.5 million in 2014, and cash used in financing activities was $62.9 million in 2013. A major source of cash for financing activities is the net change in deposits.  Deposits increased and provided $219.6 million of cash in 2015, $338.0 million of cash in 2014, and $74.0 million of cash in 2013. Of the $338.0 million deposit increase in 2014, $200 million was related to the settlement of brokered deposits in September 2014. Another major source of cash for financing activities is short-term borrowings and long-term debt.  In 2015, net short-term borrowings increased and provided $117.3 million in cash, and net long-term borrowings decreased and used $54.5 million in cash. In 2014, net short-term borrowings increased and provided $35.0 million in cash, and net long-term borrowings decreased and used $64.2 million in cash. In 2013, net short-term borrowings decreased and used $102.1 million in cash, and net long-term borrowings increased and provided $24.0 million in cash. Finally, cash declined by $57.8 million in 2015, and $57.9 million in 2014 and 2013, from the payment of cash dividends.

Funds are available from a number of sources, including the capital markets, the investment securities portfolio, the core deposit base, Federal Home Loan Bank borrowings and the capability to securitize or package loans for sale.  In the opinion of Park's management, the present funding sources provide more than adequate liquidity for Park to meet our cash flow needs.

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The following table shows interest rate sensitivity data for five different time intervals as of December 31, 2015:

Table 35  -  Interest Rate Sensitivity
	0-3			3-12			1-3			3-5			Over 5
(In thousands)	Months			Months			Years			Years			Years			Total
Interest earning assets:
Investment securities  (1)	$	93,652		$	121,436		$	427,060		$	241,070		$	761,109		$	1,644,327
Money market instruments	30,047															30,047
Loans  (1)	1,319,775			1,186,140			1,781,602			615,429			165,139			5,068,085
Total interest earning assets	1,443,474			1,307,576			2,208,662			856,499			926,248			6,742,459
Interest bearing liabilities:
Interest bearing transaction accounts (2)	$	547,871					$	559,330								$	1,107,201
Savings accounts (2)	569,349						975,358									1,544,707
Time deposits	314,415			502,381			276,096			197,089			431			1,290,412
Other				1,290												1,290
Total deposits	1,431,635			503,671			1,810,784			197,089			431			3,943,610
Short-term borrowings	394,242															394,242
Long-term debt	—			—			488,105			100,000			150,000			738,105
Subordinated notes	15,000						30,000									45,000
Total interest bearing liabilities	1,840,877			503,671			2,328,889			297,089			150,431			5,120,957
Interest rate sensitivity gap	(397,403		)	803,905			(120,227		)	559,410			775,817			1,621,502
Cumulative rate sensitivity gap	(397,403		)	406,502			286,275			845,685			1,621,502
Cumulative gap as a
percentage of total
interest earning assets	(5.89		)%	6.03		%	4.25		%	12.54		%	24.05		%

(1) Investment securities and loans that are subject to prepayment are shown in the table by the earlier of their re-pricing date or their expected repayment date and not by their contractual maturity date. Nonaccrual loans of $95.9 million are included within the three to twelve month maturity category. 

(2) Management considers interest bearing transaction accounts and savings accounts to be core deposits and, therefore, not as rate sensitive as other deposit accounts and borrowed money. Accordingly, only 49% of interest bearing transaction accounts and 37% of savings accounts are considered to re-price within one year. If all of the interest bearing transaction accounts and savings accounts were considered to re-price within one year, the one-year cumulative gap would change from a positive 6.03% to a negative 16.73%.

The interest rate sensitivity gap analysis provides an overall picture of Park’s static interest rate risk position.  At December 31, 2015, the cumulative interest earning assets maturing or repricing within twelve months were $2,751 million compared to the cumulative interest bearing liabilities maturing or repricing within twelve months of $2,345 million.  For the twelve-month cumulative gap position, rate sensitive assets exceeded rate sensitive liabilities by $407 million or 6.03% of interest earning assets.

A positive twelve-month cumulative rate sensitivity gap (assets exceed liabilities) would suggest that Park’s net interest margin would increase if interest rates were to increase.  Conversely, a negative twelve-month cumulative rate sensitivity gap would suggest that Park’s net interest margin would decrease if interest rates were to increase. However, the usefulness of the interest rate sensitivity gap analysis as a forecasting tool in projecting net interest income is limited.  The gap analysis does not consider the magnitude, timing or frequency by which assets or liabilities will reprice during a period and also contains assumptions as to the repricing of transaction and savings accounts that may not prove to be correct.

The cumulative twelve-month interest rate sensitivity gap position at year-end 2014 was a positive $544 million or 8.46% of total interest earning assets.  The percentage of interest earning assets maturing or repricing within one year was 40.8% at year-

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end 2015, compared to 41.8% at year-end 2014.  The percentage of interest bearing liabilities maturing or repricing within one year was 45.8% at year-end 2015, compared to 43.2% at year-end 2014.

Management supplements the interest rate sensitivity gap analysis with periodic simulations of balance sheet sensitivity under various interest rate and what-if scenarios to better forecast and manage the net interest margin.  Park’s management uses an earnings simulation model to analyze net interest income sensitivity to movements in interest rates.  This model is based on actual cash flows and repricing characteristics for balance sheet instruments and incorporates market-based assumptions regarding the impact of changing interest rates on the prepayment rate of certain assets and liabilities.  This model also includes management’s projections for activity levels of various balance sheet instruments and non-interest fee income and operating expense.  Assumptions based on the historical behavior of deposit rates and balances in relation to changes in interest rates are also incorporated into this earnings simulation model.  These assumptions are inherently uncertain and, as a result, the model cannot precisely measure net interest income and net income.  Actual results will differ from simulated results due to the timing, magnitude and frequency of interest rate changes as well as changes in market conditions and management strategies.

Management uses a 50 basis point change in market interest rates per quarter for a total of 200 basis points per year in evaluating the impact of changing interest rates on net interest income and net income over a twelve-month horizon.  At December 31, 2015, the earnings simulation model projected that net income would decrease by 0.4% using a rising interest rate scenario and decrease by 10.9% using a declining interest rate scenario over the next year.   At December 31, 2014, the earnings simulation model projected that net income would increase by 1.3% using a rising interest rate scenario and decrease by 7.1% using a declining interest rate scenario over the following year.  At December 31, 2013, the earnings simulation model projected that net income would decrease by 1.4% using a rising interest rate scenario and decrease by 10.3% using a declining interest rate scenario over the following year. Consistently, over the past several years, Park’s earnings simulation model has projected that changes in interest rates would have only a small impact on net income and the net interest margin.  Park’s net interest margin was 3.39% in 2015, 3.55% in 2014 and 3.61% in 2013.   

CONTRACTUAL OBLIGATIONS

In the ordinary course of operations, Park enters into certain contractual obligations. The following table summarizes Park’s significant and determinable obligations by payment date at December 31, 2015.

Further discussion of the nature of each specified obligation is included in the referenced Note to the Consolidated Financial Statements.

Table 36 - Contractual Obligations
December 31, 2015	Payments Due In
		0-1		1-3		3-5		Over 5
(In thousands)	Note	Years		Years		Years		Years		Total
Deposits without stated maturity	12	$	4,057,230	$	—	$	—	$	—	$	4,057,230
Certificates of deposit	12	814,387		278,505		197,089		431		1,290,412
Short-term borrowings	14	394,242		—		—		—		394,242
Long-term debt	15	—		500,000		100,000		150,000		750,000
Subordinated notes	16	—		—		—		45,000		45,000
Operating leases	10	1,475		2,380		1,413		520		5,788
Defined benefit pension plan (1)	18	5,010		11,121		14,097		45,831		76,059
Purchase obligations		2,421		—		—		—		2,421
Total contractual obligations		$	5,274,765	$	792,006	$	312,599	$	241,782	$	6,621,152

(1) Pension payments reflect 10 years of payments, through 2025.

The Corporation’s operating lease obligations represent short-term and long-term lease and rental payments for facilities and equipment.  Purchase obligations represent obligations under agreements to purchase goods or services that are enforceable and legally binding on the Corporation.

Commitments, Contingent Liabilities, and Off-Balance Sheet Arrangements: In order to meet the financing needs of our customers, the Corporation issues loan commitments and standby letters of credit. At December 31, 2015, the Corporation had $888.4 million of loan commitments for commercial, commercial real estate, and residential real estate loans and had $12.3

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million of standby letters of credit.  At December 31, 2014, the Corporation had $869.8 million of loan commitments for commercial, commercial real estate, and residential real estate loans and had $12.5 million of standby letters of credit.  

Commitments to extend credit under loan commitments and standby letters of credit do not necessarily represent future cash requirements.  These commitments often expire without being drawn upon.  However, all of the loan commitments and standby letters of credit were permitted to be drawn upon in 2015. See Note 23 of the Notes to Consolidated Financial Statements for additional information on loan commitments and standby letters of credit.

The Corporation did not have any unrecorded significant contingent liabilities at December 31, 2015.

Capital: Park’s primary means of maintaining capital adequacy is through retained earnings.  At December 31, 2015, the Corporation’s total shareholders’ equity was $713.4 million, compared to $696.5 million at December 31, 2014.  Total shareholders’ equity at December 31, 2015 was 9.76% of total assets, compared to 9.95% of total assets at December 31, 2014. 

Tangible shareholders’ equity [total shareholders’ equity ($713.4 million) less goodwill ($72.3 million)] was $641.0 million at December 31, 2015 and was $624.2 million at December 31, 2014.  At December 31, 2015, tangible shareholders’ equity was 8.86% of total tangible assets [total assets ($7,311 million) less goodwill ($72.3 million)], compared to 9.01% at December 31, 2014.

Net income was $81.0 million in 2015, $84.0 million in 2014 and $76.9 million in 2013.

Cash dividends declared for Park's common shares were $57.9 million in each of 2015, 2014 and 2013.  On a per share basis, the cash dividends declared were $3.76 per share in each of 2015, 2014 and 2013.

Park repurchased 71,700, 29,700, and 10,550 common shares for treasury in 2015, 2014, and 2013, respectively. Common shares held in treasury had a balance of $82.5 million at December 31, 2015, $77.4 million at December 31, 2014, and $76.1 million at December 31, 2013. During 2015, the value of common shares held in treasury was reduced by $1.0 million as a result of the issuance of an aggregate of 10,150 common shares to directors of Park and to the directors of Park's bank subsidiary PNB (and its divisions), and increased by $6.1 million due to the repurchase of 71,700 common shares for treasury. During 2014, the value of common shares held in treasury was reduced by $1.0 million as a result of the issuance of an aggregate of 10,200 common shares to directors of Park and to the directors of Park's bank subsidiary PNB (and its divisions), and increased by $2.4 million due to the repurchase of 29,700 common shares for treasury. During 2013, the value of common shares held in treasury was reduced by $1.1 million as a result of the issuance of an aggregate of 10,550 common shares to directors of Park and to the directors of Park's bank subsidiary PNB (and its divisions), and increased by $0.8 million due to the repurchase of 10,550 common shares held in treasury.

Park did not issue any new common shares, that it had not already held as treasury shares, in any of 2015, 2014 or 2013. Common shares had a balance of $304.0 million, $303.1 million, and $302.7 million at December 31, 2015, 2014, and 2013, respectively.

Accumulated other comprehensive loss (net) was $15.6 million at December 31, 2015, compared to $13.6 million at December 31, 2014, and $35.4 million at December 31, 2013.  During the 2013 year, the change in net unrealized holding gain (loss) on securities available for sale, net of tax, was a loss of $39.4 million and Park did not realize any after-tax gains, resulting in an unrealized loss on securities available for sale of $29.8 million at December 31, 2013. During the 2014 year, the change in net unrealized holding gain (loss) on securities available for sale, net of tax, was a gain of $31.1 million. During the 2015 year, the change in net unrealized holding gain (loss) on securities available for sale, net of tax, was a loss of $1.5 million. Finally, Park recognized an other comprehensive loss of $486,000, net of tax, related to the change in pension plan assets and benefit obligations in 2015, compared to a loss of $9.3 million, net of tax, in 2014, and a gain of $21.5 million, net of tax, in 2013.

Financial institution regulators have established guidelines for minimum capital ratios for banks, thrifts and bank holding companies. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. During the first quarter of 2015, Park adopted the new Basel III regulatory capital framework as approved by the federal banking agencies. The adoption of this new framework modified the calculation of the various capital ratios, added a new ratio, common equity tier 1, and revised the adequately and well capitalized thresholds. Additionally, under the new rule, in order to avoid limitations on capital distributions, including dividend payments, Park must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019.

30

Park’s leverage capital ratio was 9.22% at December 31, 2015 and exceeded the minimum capital required by $380 million.  The minimum Tier 1 risk-based capital ratio (defined as leverage capital divided by risk-adjusted assets) at December 31, 2015 was 6%.  Park’s Tier 1 risk-based capital ratio was 12.82% at December 31, 2015 and exceeded the minimum capital required by $357 million.  The minimum total risk-based capital ratio (defined as leverage capital plus supplemental capital divided by risk-adjusted assets) at December 31, 2015 was 8%.  Park’s total risk-based capital ratio was 14.49% at December 31, 2015 and exceeded the minimum capital required by $340 million. Park's common equity tier 1 capital ratio was 12.54% at December 31, 2015 and exceeded the minimum capital required by $421 million.

PNB, the only financial institution subsidiary of Park, met the well capitalized ratio guidelines at December 31, 2015.  See Note 26 of the Notes to Consolidated Financial Statements for the capital ratios for Park and PNB.

Effects of Inflation: Balance sheets of financial institutions typically contain assets and liabilities that are monetary in nature and, therefore, differ greatly from most commercial and industrial companies which have significant investments in premises, equipment and inventory.  During periods of inflation, financial institutions that are in a net positive monetary position will experience a decline in purchasing power, which does have an impact on growth.  Another significant effect on internal equity growth is other expenses, which tend to rise during periods of inflation.

Management believes the most significant impact on financial results is the Corporation's ability to align our asset/liability management program to react to changes in interest rates.

31

SELECTED FINANCIAL DATA

Table 37 - Consolidated Five-Year Selected Financial Data
December 31, (Dollars in thousands, except per share data)	2015		2014			2013		2012		2011
Results of Operations:
Interest income	$	265,074	$	265,143		$	262,947	$	285,735	$	331,880
Interest expense	37,442		40,099			41,922		50,420		58,646
Net interest income	227,632		225,044			221,025		235,315		273,234
Provision for (recovery of) loan losses	4,990		(7,333		)	3,415		35,419		63,272
Net interest income after provision for (recovery of)    loan losses	222,642		232,377			217,610		199,896		209,962
Gain on sale of the Vision business (1)	—		—			—		22,167		—
Non-interest income	77,551		75,549			73,277		70,236		94,910
Non-interest expense	186,614		187,510			181,515		181,127		181,426
Net income	81,012		83,957			76,869		78,480		82,222
Net income available to common shareholders	81,012		83,957			76,869		75,055		76,366
Per common share:
Net income per common share - basic	$	5.27	$	5.45		$	4.99	$	4.87	$	4.96
Net income per common share - diluted	5.26		5.45			4.99		4.87		4.96
Cash dividends declared	3.76		3.76			3.76		3.76		3.76
Average Balances:
Loans	$	4,909,579	$	4,717,297		$	4,514,781	$	4,410,661	$	4,713,511
Investment securities	1,478,208		1,432,692			1,377,887		1,613,131		1,848,880
Money market instruments and other	342,997		204,874			272,851		166,319		78,593
Total earning assets	6,730,784		6,354,863			6,165,519		6,190,111		6,640,984
Non-interest bearing deposits	1,311,628		1,196,625			1,117,379		1,048,796		999,085
Interest bearing deposits	4,155,196		3,820,928			3,742,361		3,786,601		4,193,404
Total deposits	5,466,824		5,017,553			4,859,740		4,835,397		5,192,489
Short-term borrowings	$	258,717	$	263,270		$	253,123	$	258,661	$	297,537
Long-term debt	793,469		867,615			870,538		907,704		881,921
Shareholders' equity	710,327		680,449			643,609		688,166		742,013
Common shareholders' equity	710,327		680,449			643,609		657,289		644,309
Total assets	7,306,460		6,893,302			6,701,049		6,765,240		7,204,311

Ratios:
Return on average assets (x)	1.11	%	1.22	%	1.15	%	1.11	%	1.06	%
Return on average common equity (x)	11.40	%	12.34	%	11.94	%	11.42	%	11.85	%
Net interest margin  (2)	3.39	%	3.55	%	3.61	%	3.83	%	4.14	%
Efficiency ratio (2)	60.98	%	62.21	%	61.40	%	55.00	%	49.02	%
Dividend payout ratio (3)	71.51	%	69.02	%	75.39	%	73.82	%	70.43	%
Average shareholders' equity to average total assets	9.72	%	9.87	%	9.60	%	10.17	%	10.30	%
Common equity tier 1 capital	12.54	%	N/A		N/A		N/A		N/A
Leverage capital	9.22	%	9.25	%	9.48	%	9.17	%	9.81	%
Tier 1 capital	12.82	%	13.39	%	13.27	%	13.12	%	14.15	%
Risk-based capital	14.49	%	15.14	%	15.91	%	15.77	%	16.65	%
(1) The Vision business was sold on February 16, 2012 for a gain on sale of $22.2 million.
(2) Computed on a fully taxable equivalent basis.
(3) Cash dividends paid divided by net income.
(x) Reported measure uses net income available to common shareholders.

32

The following table is a summary of selected quarterly results of operations for the years ended December 31, 2015 and 2014.

Table 38  -  Quarterly Financial Data
	Three Months Ended
(Dollars in thousands, except share data)	March 31			June 30			Sept. 30		Dec. 31
2015:
Interest income	$	65,018		$	65,804		$	67,087	$	67,165
Interest expense	9,483			9,289			9,372		9,298
Net interest income	55,535			56,515			57,715		57,867
Provision for (recovery of) loan losses	1,632			1,612			2,404		(658		)
Income before income taxes	27,056			29,427			28,073		29,023
Net income	19,044			21,039			20,040		20,889
Per common share data:
Net income per common share -  basic	1.24			1.37			1.30		1.36
Net income per common share -  diluted	1.23			1.37			1.30		1.36
Weighted-average common shares outstanding - basic	15,379,170			15,370,882			15,361,087		15,345,986
Weighted-average common shares equivalent - diluted	15,421,928			15,407,881			15,401,808		15,384,451
2014:
Interest income	$	64,342		$	66,363		$	66,622	$	67,816
Interest expense	9,862			9,802			9,913		10,522
Net interest income	54,480			56,561			56,709		57,294
Provision for (recovery of) loan losses	(2,225		)	(1,260		)	4,501		(8,349		)
Income before income taxes	27,574			31,251			26,632		34,959
Net income	19,577			21,810			18,269		24,301
Per common share data:
Net income per common share -  basic	1.27			1.42			1.19		1.58
Net income per common share -  diluted	1.27			1.42			1.19		1.58
Weighted-average common shares outstanding - basic	15,401,105			15,392,435			15,392,421		15,393,924
Weighted-average common shares equivalent - diluted	15,414,897			15,412,167			15,413,664		15,414,433

33

Park's common shares (symbol: PRK) are traded on NYSE MKT LLC.  At December 31, 2015, Park had 3,781 shareholders of record.  The following table sets forth the high, low and closing sale prices of, and dividends declared on the common shares for each quarterly period for the years ended December 31, 2015 and 2014, as reported by NYSE MKT LLC.

Table 39  -  Market and Dividend Information
	High		Low		Last Price		Cash Dividend Declared Per Share
2015:
First Quarter	$	88.39	$	79.46	$	85.56	$	0.94
Second Quarter	90.00		81.01		87.37		0.94
Third Quarter	90.92		80.15		90.22		0.94
Fourth Quarter	99.68		84.27		90.48		0.94
2014:
First Quarter	$	86.78	$	75.06	$	76.89	$	0.94
Second Quarter	83.32		70.51		77.20		0.94
Third Quarter	79.77		72.87		75.42		0.94
Fourth Quarter	89.84		74.00		88.48		0.94

34

PERFORMANCE GRAPH

Table 40 compares the total return performance for Park's common shares with the NYSE MKT Composite Index, the NASDAQ Bank Stocks Index and the SNL Financial Bank and Thrift Index for the five-year period from December 31, 2010 to December 31, 2015.  The NYSE MKT Composite Index is a market capitalization-weighted index of the stocks listed on NYSE MKT.  The NASDAQ Bank Stocks Index is comprised of all depository institutions, holding companies and other investment companies that are traded on The NASDAQ Global Select and Global Markets.  Park considers a number of bank holding companies traded on The NASDAQ Global Select Market to be within our peer group.  The SNL Financial Bank and Thrift Index is comprised of all publicly-traded bank and thrift stocks researched by SNL Financial.

The NYSE MKT Financial Stocks Index includes the stocks of banks, thrifts, finance companies and securities broker-dealers.  Park believes that the NASDAQ Bank Stocks Index and the SNL Financial Bank and Thrift Index are more appropriate industry indices for Park to use for the five-year total return performance comparison.

Table 40 – Total Return Performance
	Period Ending
Index	12/31/10	12/31/11	12/31/12	12/31/13	12/31/14	12/31/15
Park National Corporation	100.00	95.37	100.19	138.71	151.50	161.72
NYSE MKT Composite	100.00	106.29	113.32	120.86	125.41	113.68
NASDAQ Bank Stocks	100.00	89.50	106.23	150.55	157.95	171.92
SNL Financial Bank and Thrift	100.00	77.76	104.42	142.97	159.60	162.83

The annual compound total return on Park’s common shares for the past five years was a positive 10.1%.  By comparison, the annual compound total returns for the past five years on the NYSE MKT Composite Index, the NASDAQ Bank Stocks Index and the SNL Financial Bank and Thrift Index were a positive 2.6%, a positive 11.4% and a positive 10.2%, respectively.

35

Management’s Report on Internal Control Over Financial Reporting

To the Board of Directors and Shareholders

Park National Corporation

The management of Park National Corporation (the “Corporation”) is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. The Corporation’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. The Corporation’s internal control over financial reporting includes those policies and procedures that:

a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Corporation and its consolidated subsidiaries;

b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the Corporation and its consolidated subsidiaries are being made only in accordance with authorizations of management and directors of the Corporation; and

c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Corporation and its consolidated subsidiaries that could have a material effect on the financial statements.

The Corporation’s internal control over financial reporting as it relates to the consolidated financial statements is evaluated for effectiveness by management and tested for reliability through a program of internal audits. Actions are taken to correct potential deficiencies as they are identified.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluations of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Accordingly, even an effective system of internal control over financial reporting will provide only reasonable assurance with respect to financial statement preparation.

With the participation of our Chairman of the Board, our Chief Executive Officer and President and our Chief Financial

Officer, management evaluated the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2015, the end of the Corporation’s fiscal year. In making this assessment, management used the criteria set forth for effective internal control over financial reporting by the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) 2013 Internal Control-Integrated Framework.

Based on our assessment under the criteria described in the preceding paragraph, management concluded that the

Corporation maintained effective internal control over financial reporting as of December 31, 2015.

The Corporation’s independent registered public accounting firm, Crowe Horwath LLP, has audited the Corporation’s 2015 and 2014 consolidated financial statements included in this Annual Report and the Corporation’s internal control over financial reporting as of December 31, 2015, and has issued their Report of Independent Registered Public Accounting Firm, which appears in this Annual Report.

/s/ C. Daniel DeLawder	/s/ David L. Trautman	/s/ Brady T. Burt
C. Daniel DeLawder	David L. Trautman	Brady T. Burt
Chairman of the Board	Chief Executive Officer and President	Chief Financial Officer, Secretary and Treasurer
February 18, 2016

36

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders

Park National Corporation

Newark, Ohio

We have audited the accompanying consolidated balance sheets of Park National Corporation as of December 31, 2015 and 2014 and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2015. We also have audited Park National Corporation’s internal control over financial reporting as of December 31, 2015, based on criteria established in the 2013 Internal Control – Integrated

Frameworkissued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Park National Corporation’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the company's internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by

management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit

preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Park National Corporation as of December 31, 2015 and 2014, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2015, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, Park National Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on criteria established in the 2013 Internal Control –

Integrated Framework issued by the COSO.

Crowe Horwath LLP

Columbus, Ohio

February 18, 2016

37

Park National Corporation and Subsidiaries

Consolidated Balance Sheets

at December 31, 2015 and 2014

(In thousands, except share and per share data)	2015			2014
Assets
Cash and due from banks	$	119,412		$	133,511
Money market instruments	30,047			104,188
Cash and cash equivalents	149,459			237,699
Investment securities:
Securities available-for-sale, at fair value (amortized cost of $1,436,714 and $1,299,980 at December 31, 2015 and 2014, respectively)	1,436,266			1,301,915
Securities held-to-maturity, at amortized cost (fair value of $151,428 and $143,490 at December 31, 2015 and 2014, respectively)	149,302			140,562
Other investment securities	58,311			58,311
Total investment securities	1,643,879			1,500,788
Total loans	5,068,085			4,829,682
Allowance for loan losses	(56,494		)	(54,352		)
Net loans	5,011,591			4,775,330
Other assets:
Bank owned life insurance	181,684			171,928
Prepaid assets	80,635			75,190
Goodwill	72,334			72,334
Premises and equipment, net	59,493			55,479
Affordable housing tax credit investments	51,247			48,911
Accrued interest receivable	18,675			17,677
Other real estate owned	18,651			22,605
Mortgage loan servicing rights	9,008			8,613
Other	14,698			14,645
Total other assets	506,425			487,382
Total assets	$	7,311,354		$	7,001,199

The accompanying notes are an integral part of the consolidated financial statements.

F- 1

Park National Corporation and Subsidiaries

Consolidated Balance Sheets

at December 31, 2015 and 2014

(In thousands, except share and per share data)	2015			2014
Liabilities and shareholders’ equity
Deposits:
Non-interest bearing	$	1,404,032		$	1,269,296
Interest bearing	3,943,610			3,858,704
Total deposits	5,347,642			5,128,000
Short-term borrowings	394,242			276,980
Long-term debt	738,105			786,602
Subordinated notes	45,000			45,000
Total borrowings	1,177,347			1,108,582
Other liabilities:
Accrued interest payable	2,338			2,551
Unfunded commitments in affordable housing tax credit investments	20,311			16,629
Other	50,361			48,896
Total other liabilities	73,010			68,076
Total liabilities	6,597,999			6,304,658
Commitments and Contingencies
Shareholders’ equity:
Preferred shares (200,000 shares authorized; no shares outstanding at December 31, 2015 and 2014)	—			—
Common shares, no par value (20,000,000 shares authorized; 16,150,854 and 16,150,888 shares issued at December 31, 2015 and 2014, respectively)	303,966			303,104
Accumulated other comprehensive loss, net	(15,643		)	(13,608		)
Retained earnings	507,505			484,484
Less: Treasury shares (820,039 and 758,489 shares at December 31, 2015 and 2014, respectively)	(82,473		)	(77,439		)
Total shareholders’ equity	713,355			696,541
Total liabilities and shareholders’ equity	$	7,311,354		$	7,001,199

The accompanying notes are an integral part of the consolidated financial statements.

F- 2

Park National Corporation and Subsidiaries

Consolidated Statements of Income

for years ended December 31, 2015, 2014 and 2013

(In thousands, except per share data)	2015			2014			2013
Interest and dividend income:
Interest and fees on loans	$	227,979		$	227,644		$	225,538
Interest and dividends on:
Obligations of U.S. Government, its agencies and other securities	36,025			36,981			36,686
Obligations of states and political subdivisions	182			3			45
Other interest income	888			515			678
Total interest and dividend income	265,074			265,143			262,947
Interest expense:
Interest on deposits:
Demand and savings deposits	2,229			1,677			1,773
Time deposits	10,125			9,323			11,235
Interest on short-term borrowings	469			517			544
Interest on long-term debt	24,619			28,582			28,370
Total interest expense	37,442			40,099			41,922
Net interest income	227,632			225,044			221,025
Provision for (recovery of) loan losses	4,990			(7,333		)	3,415
Net interest income after provision for (recovery of) loan losses	222,642			232,377			217,610
Other income:
Income from fiduciary activities	20,195			19,150			17,133
Service charges on deposit accounts	14,751			15,423			16,316
Other service income	11,438			10,459			12,913
Checkcard fee income	14,561			13,570			12,955
Bank owned life insurance income	5,783			4,861			5,041
ATM fees	2,428			2,467			2,632
Gain on sale of OREO, net	1,604			5,503			3,110
OREO valuation adjustments	(1,592		)	(2,406		)	(3,180		)
Gain on commercial loans held for sale	756			1,867			—
Gain (loss) on sale of investment securities	88			(1,158		)	—
Miscellaneous	7,539			5,813			6,357
Total other income	$	77,551		$	75,549		$	73,277

The accompanying notes are an integral part of the consolidated financial statements.

F- 3

Park National Corporation and Subsidiaries

Consolidated Statements of Income

for years ended December 31, 2015, 2014 and 2013

(In thousands, except per share data)	2015		2014		2013
Other expense:
Salaries	$	86,189	$	81,977	$	80,985
Employee benefits	21,296		19,991		19,313
Data processing fees	5,037		4,712		4,174
Professional fees and services	23,452		29,580		27,865
Occupancy expense	9,686		10,006		9,804
Furniture and equipment expense	11,806		11,571		11,249
Insurance	5,629		5,723		5,205
Marketing	3,983		4,371		3,790
Communication	5,130		5,268		5,790
State tax expense	3,566		2,290		3,702
OREO expense	1,446		2,063		2,731
Miscellaneous	9,394		9,958		6,907
Total other expense	186,614		187,510		181,515
Income before income taxes	113,579		120,416		109,372
Federal income taxes	32,567		36,459		32,503
Net income	$	81,012	$	83,957	$	76,869
Earnings per common share:
Basic	$	5.27	$	5.45	$	4.99
Diluted	$	5.26	$	5.45	$	4.99

The accompanying notes are an integral part of the consolidated financial statements.

F- 4

PARK NATIONAL CORPORATION

Consolidated Statements of Comprehensive Income

for years ended December 31, 2015, 2014 and 2013

(In thousands)	2015			2014			2013
Net income	$	81,012		$	83,957		$	76,869
Other comprehensive income (loss), net of tax:
Defined benefit pension plan:
Amortization of net loss and prior service costs, net of income taxes of $228, $7, and $953 for the years ended December 31, 2015, 2014, and 2013, respectively	424			12			1,770
Unrealized net actuarial (loss) gain, net of income taxes of $(490), ($4,997), and $10,643 for the years ended December 31, 2015, 2014, and 2013, respectively	(910		)	(9,279		)	19,766
Change in funded status of pension plan, net of income taxes	(486		)	(9,267		)	21,536
Securities available-for-sale:
Net loss realized on sale of securities, net of income taxes of $405 for the year ended December 31, 2014	—			753			—
Other than temporary impairment realized on securities, net of income taxes of $6 for the year ended December 31, 2013	—			—			11
Change in unrealized securities holding (loss) gain, net of income taxes of ($834), $16,329, and ($21,242) for the years ended December 31, 2015, 2014, and 2013, respectively	(1,549		)	30,325			(39,448		)
Unrealized net holding (loss) gain on securities available-for-sale, net of income taxes	(1,549		)	31,078			(39,437		)
Other comprehensive (loss) income	$	(2,035	)	$	21,811		$	(17,901	)
Comprehensive income	$	78,977		$	105,768		$	58,968

The accompanying notes are an integral part of the consolidated financial statements.

F- 5

Park National Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

for the years ended December 31, 2015, 2014 and 2013

	Preferred Shares			Common Shares					Retained Earnings			Treasury Shares			Accumulated Other Comprehensive (Loss) Income			Total
(In thousands, except share and per share data)	Shares Outstanding	Amount		Shares Outstanding		Amount
Balance, January 1, 2013, as previously presented	—	$	—	15,411,998		$	302,654		$	441,605		$	(76,375	)	$	(17,518	)	$	650,366
Cumulative effect of change in accounting principle for affordable housing tax credits, net of tax									(1,566		)							(1,566		)
Balance, January 1, 2013 - as adjusted	—	$	—	15,411,998		$	302,654		$	440,039		$	(76,375	)	$	(17,518	)	$	648,800
Net income									76,869									76,869
Other comprehensive loss, net of tax															(17,901		)	(17,901		)
Cash dividends, $3.76 per share									(57,949		)							(57,949		)
Cash payment for fractional shares in dividend reinvestment plan				(46	)	(3		)										(3		)
Treasury shares repurchased				(10,550	)							(843		)				(843		)
Treasury shares reissued for director grants				10,550					(240		)	1,090						850
Balance, December 31, 2013	—	$	—	15,411,952		$	302,651		$	458,719		$	(76,128	)	$	(35,419	)	$	649,823
Net income									83,957									83,957
Other comprehensive income, net of tax															21,811			21,811
Cash dividends, $3.76 per share									(57,949		)							(57,949		)
Cash payment for fractional shares in dividend reinvestment plan				(53	)	(5		)										(5		)
Share-based compensation expense						458												458
Treasury shares repurchased				(29,700	)							(2,355		)				(2,355		)
Treasury shares reissued for director grants				10,200					(243		)	1,044						801
Balance, December 31, 2014	—	$	—	15,392,399		$	303,104		$	484,484		$	(77,439	)	$	(13,608	)	$	696,541
Net income									81,012									81,012
Other comprehensive loss, net of tax															(2,035		)	(2,035		)
Cash dividends, $3.76 per share									(57,930		)							(57,930		)
Cash payment for fractional shares in dividend reinvestment plan				(34	)	(3		)										(3		)
Share-based compensation expense						865												865
Treasury shares repurchased				(71,700	)							(6,058		)				(6,058		)
Treasury shares reissued for director grants				10,150					(61		)	1,024						963
Balance, December 31, 2015	—	$	—	15,330,815		$	303,966		$	507,505		$	(82,473	)	$	(15,643	)	$	713,355

The accompanying notes are an integral part of the consolidated financial statements.

F- 6

Park National Corporation and Subsidiaries

Consolidated Statements of Cash Flows

for the years ended December 31, 2015, 2014 and 2013

(In thousands)	2015			2014			2013
Operating activities:
Net income	$	81,012		$	83,957		$	76,869
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (recovery of) loan losses	4,990			(7,333		)	3,415
Amortization of loan fees and costs, net	6,440			4,160			3,611
Provision for depreciation	7,347			7,243			7,315
Other than temporary impairment on investment securities	—			—			17
Amortization of intangible assets	—			—			337
Accretion of investment securities, net	(226		)	(213		)	(33		)
Amortization of prepayment penalty on long-term debt	6,047			5,031			4,835
Deferred income tax	(250		)	2,528			(1,932		)
Realized net investment security (gains) losses	(88		)	1,158			—
Share-based compensation expense	1,828			1,259			850
Loan originations to be sold in secondary market	(220,800		)	(136,125		)	(317,534		)
Proceeds from sale of loans in secondary market	222,785			135,209			345,704
Gain on sale of loans in secondary market	(4,027		)	(2,682		)	(4,093		)
Gain on sale of commercial loans held for sale	(756		)	(1,867		)	—
OREO valuation adjustments	1,592			2,406			3,180
Gain on sale of OREO, net	(1,604		)	(5,503		)	(3,110		)
Bank owned life insurance income	(5,783		)	(4,861		)	(5,041		)
Changes in assets and liabilities:
(Increase) Decrease in other assets	(10,978		)	(18,313		)	12,222
Decrease (Increase) in other liabilities	1,173			5,689			(5,324		)
Net cash provided by operating activities	88,702			71,743			121,288
Investing activities:
Proceeds from redemption of Federal Home Loan Bank stock	—			8,946			—
Proceeds from sales of securities	3,144			173,123			75,000
Proceeds from calls and maturities of securities:
Held-to-maturity	36,393			41,436			219,329
Available-for-sale	321,146			99,092			385,259
Purchase of securities:
Held-to-maturity	(48,226		)	—			—
Available-for-sale	(457,617		)	(350,934		)	(582,728		)
Net increase in other investments	—			(1,350		)	—
Net loan originations, portfolio loans	(247,882		)	(234,017		)	(212,311		)
Proceeds from sale of commercial loans held for sale	900			20,966			—
Proceeds from the sale of OREO	17,058			27,798			23,043
Life insurance death benefits	6,340			2,221			1,430
Investment in qualified affordable housing projects	(5,318		)	(9,417		)	(8,222		)

F- 7

Park National Corporation and Subsidiaries
Consolidated Statements of Cash Flows
for the years ended December 31, 2015, 2014 and 2013
(In thousands)	2015			2014			2013
Purchases of bank owned life insurance, net	(10,045		)	—			(4,600		)
Purchases of premises and equipment, net	(11,361		)	(7,444		)	(8,842		)
Net cash used in investing activities	(395,468		)	(229,580		)	(112,642		)
Financing activities
Net increase in deposits	219,642			338,006			73,962
Net increase (decrease) in short-term borrowings	117,262			34,951			(102,139		)
Proceeds from issuance of long-term debt	25,000			125,000			75,000
Repayment of subordinated notes	—			(35,250		)	—
Repayment of long-term debt	(79,544		)	(153,970		)	(50,952		)
Repurchase of treasury shares	(6,058		)	(2,355		)	(843		)
Cash dividends paid	(57,776		)	(57,876		)	(57,949		)
Net cash provided by (used in) financing activities	218,526			248,506			(62,921		)
(Decrease) increase in cash and cash equivalents	(88,240		)	90,669			(54,275		)
Cash and cash equivalents at beginning of year	237,699			147,030			201,305
Cash and cash equivalents at end of year	$	149,459		$	237,699		$	147,030
Cash paid for:
Interest	$	37,655		$	40,449		$	42,481
Income taxes	$	26,140		$	27,810		$	20,000
Non cash items:
Loans transferred to OREO	$	13,447		$	12,780		$	22,144
Transfers from loans to commercial loans held for sale	$	144		$	21,985		$	—
New commitments in affordable housing tax credit investments	$	9,000		$	8,000		$	7,000

The accompanying notes are an integral part of the consolidated financial statements.

F- 8

Notes to Consolidated Financial Statements

1. Summary of Significant Accounting Policies

The following is a summary of significant accounting policies followed in the preparation of the consolidated financial statements:

Principles of Consolidation

The consolidated financial statements include the accounts of Park National Corporation and its subsidiaries (“Park”, the “Company” or the “Corporation”). Material intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management has identified the allowance for loan losses, accounting for Other Real Estate Owned (“OREO”), fair value accounting, accounting for goodwill and accounting for pension plan and other post-retirement benefits as significant estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year presentation. Additionally, prior period financial statements reflect the retrospective application of Accounting Standards Update ("ASU") 2014-01, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.

Restrictions on Cash and Due from Banks

The Corporation’s national bank subsidiary is required to maintain average reserve balances with the Federal Reserve Bank. The average required reserve balance was approximately $44.2 million at December 31, 2015 and $40.3 million at December 31, 2014. No other compensating balance arrangements were in existence at December 31, 2015.

Investment Securities

Investment securities are classified upon acquisition into one of three categories: held-to-maturity ("HTM"), available-for-sale ("AFS"), or trading (see Note 5 - Investment Securities).

HTM securities are those securities that the Corporation has the positive intent and ability to hold to maturity and are recorded at amortized cost. AFS securities are those securities that would be available to be sold in the future in response to the Corporation’s liquidity needs, changes in market interest rates, and asset-liability management strategies, among other reasons. AFS securities are reported at fair value, with unrealized holding gains and losses excluded from earnings but included in other comprehensive income (loss), net of applicable taxes. The Corporation did not hold any trading securities during any period presented.

AFS and HTM securities are evaluated quarterly for potential other-than-temporary impairment. Management considers the facts related to each security including the nature of the security, the amount and duration of the loss, the credit quality of the issuer, the expectations for that security’s performance and whether Park intends to sell, or it is more likely than not that Park will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. Declines in the value of equity securities that are considered to be other-than-temporary are recorded as a charge to earnings in the Consolidated Statements of Income. Declines in the value of debt securities that are considered to be other-than-temporary are separated into (1) the amount of the total impairment related to credit loss and (2) the amount of the total impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income (loss), net of tax.

Interest income from investment securities includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated.

Gains and losses realized on the sale of investment securities are recorded on the trade date and determined using the specific identification basis.

F- 9

Notes to Consolidated Financial Statements

Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock

Park’s national bank subsidiary, The Park National Bank ("PNB") is a member of the FHLB. Additionally, PNB is a member of the FRB. Members are required to own a certain amount of stock based on their level of borrowings and other factors and may invest in additional amounts. FHLB stock and FRB stock are classified as restricted securities and are carried at their redemption value within other investment securities on the Consolidated Balance Sheets. Impairment is evaluated based on the ultimate recovery of par value. Both cash and stock dividends are reported as income.

Bank Owned Life Insurance

Park has purchased insurance policies on the lives of directors and certain key officers. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

Loans Held for Sale

Generally, loans held for sale are carried at the lower of cost or fair value. Park has elected the fair value option for mortgage loans held for sale, which are carried at their fair value.

Mortgage Banking Derivatives

Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. The fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on sale of loans.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at their outstanding principal balances adjusted for any charge-offs, any deferred fees or costs on originated loans, and any unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan origination fees and costs over the loan term. Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) those commercial loans in the real estate construction loan segment; and (4) those commercial loans in the residential real estate loan segment. Consumer loans include: (1) mortgage and installment loans included in the real estate construction segment; (2) mortgage, home equity lines of credit (HELOC), and installment loans included in the residential real estate segment; and (3) all loans included in the consumer segment.

Generally, commercial loans are placed on nonaccrual status at 90 days past due and consumer and residential mortgage loans are placed on nonaccrual status at 120 days past due. Commercial loans placed on nonaccrual status are considered impaired (see Note 6 - Loans). For loans which are on nonaccrual status, it is Park’s policy to reverse interest previously accrued on the loans against interest income. Interest on such loans may be recorded on a cash basis and be included in earnings only when cash is actually received. Park’s charge-off policy for commercial loans requires management to establish a specific reserve or record a charge-off as soon as it is apparent that the borrower is troubled and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing the loan. The Company’s charge-off policy for consumer loans is dependent on the class of the loan. Residential mortgage loans, HELOCs, and consumer loans secured by residential real estate are typically charged down to the value of the collateral, less estimated selling costs, at 180 days past due. The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due.

The delinquency status of a loan is based on contractual terms and not on how recently payments have been received. Loans may be removed from nonaccrual status when loan payments have been received to cure the delinquency status, the borrower has demonstrated the ability to maintain current payment status in accordance with the loan agreement and the loan is deemed to be well-secured by management.

A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below:

Commercial, financial and agricultural: Commercial, financial and agricultural loans are made for a wide variety of general corporate purposes, including financing for commercial and industrial businesses, financing for equipment, inventories and accounts receivable, acquisition financing and commercial leasing. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. The commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications

F- 10

Notes to Consolidated Financial Statements

originated in the 28 Ohio counties where PNB operates. The primary industries represented by these customers include manufacturing, retail trade, health care and other services.

Commercial real estate: Commercial real estate (“CRE”) loans include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate.

Construction real estate: The Company defines construction loans as both commercial construction loans and residential construction loans where the loan proceeds are used exclusively for the improvement of real estate as to which the Company holds a mortgage. Construction loans may be in the form of a permanent loan or short-term construction loan, depending on the needs of the individual borrower. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, the PNB division making the loan may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, the PNB division may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event that a default on a construction loan occurs and foreclosure follows, the PNB division must take control of the project and attempt to either arrange for completion of construction or dispose of the unfinished project. Additional risk exists with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. PNB and its divisions attempt to reduce such risks on loans to developers by requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer.

Residential real estate: The Company defines residential real estate loans as first mortgages on individuals’ primary residences or second mortgages of individuals’ primary residences in the form of HELOCs or installment loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and an appraised value of the real estate securing the loan.

Consumer: The Company originates direct and indirect consumer loans, primarily automobile loans and home equity based lines of credit to customers in its primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s financial stability, and thus are more likely to be affected by adverse personal circumstances.

Allowance for Loan Losses

The allowance for loan losses is that amount believed adequate to absorb probable incurred credit losses in the loan portfolio based on management’s evaluation of various factors. The determination of the allowance requires significant estimates, including the timing and amounts of expected cash flows on impaired loans, consideration of current economic conditions, and historical loss experience pertaining to pools of homogeneous loans, all of which may be susceptible to change. The allowance is increased through a provision for loan losses that is charged to earnings based on management’s quarterly evaluation of the factors previously mentioned and is reduced by charge-offs, net of recoveries.

The allowance for loan losses includes both (1) an estimate of loss based on historical loss experience within both commercial and consumer loan categories with similar characteristics (“statistical allocation”) and (2) an estimate of loss based on an impairment analysis of each commercial loan that is considered to be impaired (“specific allocation”).

In calculating the allowance for loan losses, management believes it is appropriate to utilize historical loss rates that are comparable to the current period being analyzed, giving consideration to losses experienced over a full cycle. For the historical loss factor at December 31, 2015, the Company utilized an annual loss rate (“historical loss experience”), calculated based on an average of the net charge-offs and the annual change in specific reserves for impaired commercial loans, experienced during 2009 through 2015 within the individual segments of the commercial and consumer loan categories. Management believes the 84-month historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates consistent with current expectations based on current economic conditions. The loss factor applied to Park’s consumer portfolio as of December 31, 2015 was based on the historical loss experience over the past 84 months, plus an additional judgmental reserve, increasing the total allowance for loan loss coverage in the consumer portfolio to approximately 1.99 years of historical loss. The consumer loan portfolio loss coverage ratio was 1.98 years at December 31, 2014. The loss factor applied to Park’s commercial portfolio as of December 31, 2015 was based on the historical loss experience over the past 84 months, plus

F- 11

Notes to Consolidated Financial Statements

additional reserves for consideration of (1) a loss emergence period factor, (2) a loss migration factor and (3) a judgmental or environmental loss factor. These additional reserves increased the total allowance for loan loss coverage in the commercial portfolio to approximately 2.52 years of historical loss at December 31, 2015. The commercial loan portfolio loss coverage ratio was 2.28 years at December 31, 2014. Park’s commercial loans are individually risk graded. If loan downgrades occur, the probability of default increases and accordingly management allocates a higher percentage reserve to those accruing commercial loans graded special mention and substandard.

The judgmental increases discussed above incorporate management’s evaluation of the impact of environmental qualitative factors which pose additional risks and assign a component of the allowance for loan losses in consideration of these factors. Such environmental factors include: national and local economic trends and conditions; experience, ability and depth of lending management and staff; effects of any changes in lending policies and procedures; and levels of, and trends in, consumer bankruptcies, delinquencies, impaired loans and charge-offs and recoveries.

GAAP requires a specific allocation to be established as a component of the allowance for loan losses for certain loans when it is probable that all amounts due pursuant to the contractual terms of the loans will not be collected, and the recorded investment in the loans exceeds their measure of impairment. Management considers the following related to commercial loans when determining if a loan should be considered impaired: (1) current debt service coverage levels of the borrowing entity; (2) payment history over the most recent 12-month period; (3) other signs of deterioration in the borrower’s financial situation, such as changes in credit scores; and (4) consideration of global cash flows of financially sound guarantors that have previously supported loan payments. The recorded investment is the carrying balance of the loan, plus accrued interest receivable, both as of the end of the year. Impairment is measured using either the present value of expected future cash flows based upon the initial effective interest rate on the loan, or the fair value of the collateral. If a loan is considered to be collateral dependent, the fair value of collateral, less estimated selling costs, is used to measure impairment.

Troubled Debt Restructuring ("TDRs")

Management classifies loans as TDRs when a borrower is experiencing financial difficulty and Park has granted a concession. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. A court's discharge of a borrower's debt in a Chapter 7 bankruptcy is considered a concession when the borrower does not reaffirm the discharged debt. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral.

Income Recognition

Income earned by the Corporation and its subsidiaries is recognized on the accrual basis of accounting, except for nonaccrual loans as previously discussed, and late charges on loans which are recognized as income when they are collected.

Premises and Equipment

Land is carried at cost and is not subject to depreciation. Premises and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the remaining lease period or the estimated useful lives of the improvements. Upon the sale or other disposal of an asset, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are charged to expense as incurred while renewals and improvements that extend the useful life of an asset are capitalized. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.

The range of depreciable lives over which premises and equipment are being depreciated are:

Buildings	30 Years
Equipment, furniture and fixtures	3 to 12 Years
Leasehold improvements	1 to 10 Years

F- 12

Notes to Consolidated Financial Statements

Other Real Estate Owned

Management transfers a loan to OREO at the time that Park takes deed/title of the asset. OREO is initially recorded at fair value less anticipated selling costs (net realizable value), establishing a new cost basis, and consists of property acquired through foreclosure and real estate held for sale. If the net realizable value is below the carrying value of the loan at the date of transfer, the difference is charged to the allowance for loan losses. These assets are subsequently accounted for at the lower of cost or fair value less costs to sell. Subsequent changes in the value of real estate are classified as OREO valuation adjustments, are reported as adjustments to the carrying amount of OREO and are recorded within “Other income”. In certain circumstances where management believes the devaluation may not be permanent in nature, Park utilizes a valuation allowance to record OREO devaluations, which is also expensed through “Other income”. Costs relating to development and improvement of such properties are capitalized (not in excess of fair value less estimated costs to sell) and costs relating to holding the properties are charged to "Other expense".

Mortgage Servicing Rights ("MSR")

When Park sells mortgage loans with servicing rights retained, servicing rights are recorded at an amount not to exceed fair value with the income statement effect recorded in "Other service income." Capitalized servicing rights are amortized in proportion to and over the period of the estimated future servicing income of the underlying loan and are included within “Other service income”.

Mortgage servicing rights are assessed for impairment periodically, based on fair value, with any impairment recognized through a valuation allowance. The fair value of mortgage servicing rights is determined by discounting estimated future cash flows from the servicing assets, using market discount rates and expected future prepayment rates. In order to calculate fair value, the sold loan portfolio is stratified into homogeneous pools of like categories. (See Note 24 - Loan Servicing.)

Fees received for servicing mortgage loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in income as loan payments are received. The cost of servicing loans is charged to expense as incurred.

Goodwill

Goodwill represents the excess of the purchase price over net identifiable tangible and intangible assets acquired in a purchase business combination. Other intangible assets represent purchased assets that have no physical property but represent some future economic benefit to their owner and are capable of being sold or exchanged on their own or in combination with a related asset or liability.

Goodwill and indefinite-lived intangible assets are not amortized to expense, but are subject to impairment tests annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets with definitive useful lives (such as core deposit intangibles) are amortized to expense over their estimated useful lives.

Management considers several factors when performing the annual impairment tests on goodwill. The factors considered include the operating results for the particular Park segment for the past year and the operating results budgeted for the current year (including multi-year projections), the deposit and loan totals of the Park segment and the economic conditions in the markets served by the Park segment. At December 31, 2015, the goodwill remaining on Park's Consolidated Balance Sheet consisted entirely of goodwill at PNB. (See Note 27 - Segment Information for operating segment results.)

GAAP requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired, by assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing these events or circumstances, it is concluded that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If the carrying amount of the goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess.

Park evaluates goodwill for impairment on April 1 of each year, with financial data as of March 31. Based on the analysis performed as of April 1, 2015, the Company determined that goodwill for Park’s national bank subsidiary (PNB) was not impaired. There have been no subsequent circumstances or events triggering an additional evaluation.

F- 13

Notes to Consolidated Financial Statements

Consolidated Statement of Cash Flows

Cash and cash equivalents include cash and cash items, amounts due from banks and money market instruments. Generally, money market instruments are purchased and sold for one-day periods.

Loss Contingencies and Guarantees

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.

Income Taxes

The Corporation accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. To the extent that Park does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is recorded. All positive and negative evidence is reviewed when determining how much of a valuation allowance is recognized on a quarterly basis. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination being presumed to occur. The benefit recognized for a tax position that meets the “more-likely-than-not” criteria is measured based on the largest benefit that is more than 50 percent likely to be realized, taking into consideration the amounts and probabilities of the outcome upon settlement. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. Park recognizes any interest and penalties related to income tax matters in income tax expense.

Treasury Shares

The purchase of Park’s common shares is recorded at cost. At the date of retirement or subsequent reissuance, the treasury shares account is reduced by the weighted average cost of the common shares retired or reissued.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, and changes in the funded status of the Company’s defined benefit pension plan, which are also recognized as separate components of equity.

Share-Based Compensation

Compensation cost is recognized for restricted stock units and stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. The market price of Park’s common shares at the date of grant is used to estimate the fair value of restricted stock units and stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period and is recorded in "Salaries" expense. (See Note 17 - Share - Based Compensation.)

Loan Commitments and Related Financial Instruments

Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 25 - Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

F- 14

Notes to Consolidated Financial Statements

Retirement Plans

Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee KSOP plan expense is the amount of matching contributions to Park's employees stock ownership plan. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. (See Note 18 - Benefit Plans.)

Earnings Per Common Share

Basic earnings per common share is net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock awards, stock options, warrants and convertible securities. Earnings and dividends per common share are restated for any stock splits and stock dividends through the date of issuance of the consolidated financial statements. (See Note 21 - Earnings Per Common Share.)

Operating Segments

The Corporation is a financial holding company headquartered in Newark, Ohio. The operating segments for the Corporation are its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio), SE Property Holdings, LLC ("SEPH"), and Guardian Financial Services Company ("GFSC").

2. Adoption of New Accounting Pronouncements

ASU 2014-01- Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force): In January 2014, the Financial Accounting Standards Board (the "FASB") issued ASU 2014-01, Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). The ASU permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. Additionally, a reporting entity should disclose information that enables users of its financial statements to understand the nature of its investments in qualified affordable housing projects, and the effect of the measurement of its investments in qualified affordable housing projects and the related tax credits on its financial position and results of operations. The new guidance became effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. Park adopted this guidance in the first quarter of 2015. The guidance was applied retrospectively to all prior periods presented. The adoption resulted in adjustments to reduce beginning retained earnings, other assets and the prior periods consolidated statements of income. See Note 11 - Investment in Qualified Affordable Housing for further details.

ASU 2014-04 - Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force): In January 2014, FASB issued ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force). This new ASU clarifies when an in substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of real estate property collateralizing a consumer mortgage loan. Specifically, the new ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. Additional disclosures are required detailing the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgages collateralized by real estate property that are in the process of foreclosure. The new guidance is effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. The adoption of this guidance as of January 1, 2015 did not have a material impact on Park's consolidated financial statements, but resulted in additional disclosures. See Note 9 - Other Real Estate Owned.

ASU 2014-09 - Revenue from Contracts with Customers (Topic 606): In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU creates a new topic, Topic 606, to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual

F- 15

Notes to Consolidated Financial Statements

periods, beginning after December 15, 2017. Management is currently evaluating the impact of the adoption of this guidance on Park's consolidated financial statements.

ASU 2014-11 - Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures: In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this ASU change the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The amendments also require two new disclosures. The first disclosure requires an entity to disclose information on transfers accounted for as sales in transactions that are economically similar to repurchase agreements. The second disclosure provides increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The accounting changes are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, with all other disclosure requirements required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of this guidance as of January 1, 2015 did not have an impact on Park's consolidated financial statements, but resulted in additional disclosures. See Note 13 - Repurchase Agreement Borrowings.

ASU 2015-02 - Consolidation (Topic 810): Amendments to the Consolidation Analysis: In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The ASU amends the current consolidation guidance and affects both the variable interest entity and voting interest entity consolidation models. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. Management is currently evaluating the impact of the adoption of this guidance on Park’s consolidated financial statements.

ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2016, the FASB issued ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Changes to the current GAAP model primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale securities. The new guidance is effective for annual reporting period and interim reporting periods within those annual periods, beginning after December 15, 2017. Management is currently evaluating the impact of the adoption of this guidance on Park’s consolidated financial statements.

3. Organization

Park National Corporation is a financial holding company headquartered in Newark, Ohio. Through its national bank subsidiary, PNB, Park is engaged in a general commercial banking and trust business, primarily in Ohio. PNB operates through eleven banking divisions with the Park National Bank Division headquartered in Newark, Ohio, the Fairfield National Bank Division headquartered in Lancaster, Ohio, The Park National Bank of Southwest Ohio & Northern Kentucky Division headquartered in Cincinnati, Ohio, the First-Knox National Bank Division headquartered in Mount Vernon, Ohio, the Farmers Bank Division headquartered in Loudonville, Ohio, the Security National Bank Division headquartered in Springfield, Ohio, the Unity National Bank Division headquartered in Piqua, Ohio, the Richland Bank Division headquartered in Mansfield, Ohio, the Century National Bank Division headquartered in Zanesville, Ohio, the United Bank, N.A. Division headquartered in Bucyrus, Ohio and the Second National Bank Division headquartered in Greenville, Ohio. A wholly-owned subsidiary of Park, GFSC is a consumer finance company located in Central Ohio.

Through February 16, 2012, Park operated a second banking subsidiary, Vision Bank ("Vision"), which was engaged in a general commercial banking business, primarily in Baldwin County, Alabama and the panhandle of Florida. Vision operated through two banking divisions with the Vision Bank Florida Division headquartered in Panama City, Florida and the Vision Bank Alabama Division headquartered in Gulf Shores, Alabama. Promptly following the sale of the Vision business to Centennial Bank (a wholly-owned subsidiary of HomeBanc Shares, Inc.), Vision surrendered its Florida banking charter to the Florida Office of Financial Regulation and became a non-bank Florida corporation. Vision (the Florida corporation) merged with and into a wholly-owned, non-bank subsidiary of Park, SEPH, with SEPH being the surviving entity. SEPH holds the remaining assets and liabilities retained by Vision subsequent to the sale. SEPH also holds OREO that had previously been transferred to SEPH from Vision. SEPH's assets consist primarily of performing and nonperforming loans and OREO. This segment represents a run off portfolio of the legacy Vision assets.

All of the Ohio-based banking divisions provide the following principal services: the acceptance of deposits for demand, savings and time accounts; commercial, industrial, consumer and real estate lending, including installment loans, credit cards,

F- 16

Notes to Consolidated Financial Statements

home equity lines of credit; trust services; cash management; safe deposit operations; electronic funds transfers and a variety of additional banking-related services. See Note 27 - Segment Information for financial information on the Corporation’s operating segments.

4. Goodwill

The following table reflects the activity in goodwill and other intangible assets for the years ended December 31, 2015, 2014 and 2013.

(In thousands)	Goodwill		Core Deposit Intangibles			Total
January 1, 2013	$	72,334	$	337		$	72,671
Amortization	—		(337		)	(337		)
December 31, 2013	$	72,334	$	—		$	72,334
Amortization	—		—			—
December 31, 2014	$	72,334	$	—		$	72,334
Amortization	—		—			—
December 31, 2015	$	72,334	$	—		$	72,334

The core deposit intangibles were amortized to expense principally on the straight-line method, over a period of six years. Core deposit intangibles were fully amortized at December 31, 2013, and thus there was no amortization expense in 2014 or 2015. Core deposit intangible amortization expense was $337,000 in 2013.

5. Investment Securities

The amortized cost and fair value of investment securities are shown in the following table. Management performs a quarterly evaluation of investment securities for any other-than-temporary impairment. During 2015 and 2014, there were no investment securities deemed to be other-than-temporarily impaired. During 2013, Park recognized other-than-temporary impairment charges of $17,000, related to an equity investment in a financial institution.

Investment securities at December 31, 2015 and December 31, 2014 were as follows:

(In thousands)	Amortized Cost		Gross Unrealized/Unrecognized Holding Gains		Gross Unrealized/Unrecognized Holding Losses		Estimated Fair Value
2015:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	527,605	$	—	$	5,542	$	522,063
U.S. Government sponsored entities’ asset-backed securities	907,989		8,776		5,272		911,493
Other equity securities	1,120		1,590		—		2,710
Total	$	1,436,714	$	10,366	$	10,814	$	1,436,266
2015:
Securities Held-to-Maturity
Obligations of states and political subdivisions	$	48,190	$	734	$	—	$	48,924
U.S. Government sponsored entities’ asset-backed securities	101,112		1,526		134		102,504
Total	$	149,302	$	2,260	$	134	$	151,428

F- 17

Notes to Consolidated Financial Statements

(In thousands)	Amortized Cost		Gross Unrealized/Unrecognized Holding Gains		Gross Unrealized/Unrecognized Holding Losses		Estimated Fair Value
2014:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	546,886	$	11	$	8,833	$	538,064
U.S. Government sponsored entities’ asset-backed securities	751,974		13,421		4,242		761,153
Other equity securities	1,120		1,578		—		2,698
Total	$	1,299,980	$	15,010	$	13,075	$	1,301,915
2014:
Securities Held-to-Maturity
U.S. Government sponsored entities’ asset-backed securities	$	140,562	$	3,088	$	160	$	143,490

Park’s U.S. Government sponsored entities' asset-backed securities consisted of 15-year mortgage-backed securities and collateralized mortgage obligations (CMOs). At December 31, 2015, the amortized cost of Park’s available-for-sale mortgage-backed securities was $569.0 million and there were no held-to-maturity mortgage-backed securities within Park's investment portfolio. At December 31, 2015, the amortized cost of Park's available-for-sale and held-to-maturity CMOs was $339.0 million and $101.1 million, respectively.

The following table provides detail on investment securities with unrealized losses aggregated by investment category and length of time the individual securities had been in a continuous loss position at December 31, 2015 and December 31, 2014:

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2015:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	326,973	$	2,117	$	195,090	$	3,425	$	522,063	$	5,542
U.S. Government sponsored entities' asset-backed securities	384,169		2,776		114,543		2,496		498,712		5,272
Total	$	711,142	$	4,893	$	309,633	$	5,921	$	1,020,775	$	10,814
2015:
Securities Held-to-Maturity
U.S. Government sponsored entities’ asset-backed securities	$	5,656	$	10	$	7,792	$	124	$	13,448	$	134

F- 18

Notes to Consolidated Financial Statements

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2014:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	119,913	$	87	$	388,140	$	8,746	$	508,053	$	8,833
U.S. Government sponsored entities' asset-backed securities	73,276		136		170,430		4,106		243,706		4,242
Total	$	193,189	$	223	$	558,570	$	12,852	$	751,759	$	13,075
2014:
Securities Held-to-Maturity
U.S. Government sponsored entities' asset-backed securities	$	8,032	$	148	$	2,714	$	12	$	10,746	$	160

Management does not believe any individual unrealized loss as of December 31, 2015 or 2014 represented an other-than-temporary impairment. The unrealized losses on debt securities are primarily the result of interest rate changes. These conditions will not prohibit Park from receiving its contractual principal and interest payments on these debt securities. The fair value of these debt securities is expected to recover as payments are received on these securities and they approach maturity. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

Other investment securities (as shown on the Consolidated Balance Sheets) consist of stock investments in the FHLB and the FRB. These restricted stock investments are carried at their redemption value. Park owned $50.1 million of FHLB stock and $8.2 million of FRB stock at both December 31, 2015 and December 31, 2014, respectively.

The amortized cost and estimated fair value of investments in debt securities at December 31, 2015, are shown in the following table by contractual maturity, except for asset-backed securities, which are shown as a single total, due to the unpredictability of the timing in principal repayments.

(In thousands)	Amortized Cost		Estimated Fair Value		Tax Equivalent Yield
Securities Available-for-Sale
U.S. Treasury and other U.S. Government sponsored entities’ notes:
Due one through five years	$	220,000	$	219,135	1.29	%
Due five through ten years	307,605		302,928		2.40	%
Total	$	527,605	$	522,063	1.94	%
U.S. Government sponsored entities’ asset-backed securities	$	907,989	$	911,493	2.23	%
Securities Held-to-Maturity
Obligations of states and political subdivisions
Due greater than ten years	$	48,190	$	48,924	4.65	%
Total	$	48,190	$	48,924	4.65	%
U.S. Government sponsored entities’ asset-backed securities	$	101,112	$	102,504	3.42	%

Approximately $527.6 million of Park’s securities shown in the above table as U.S. Treasury and other U.S. Government sponsored entities' notes are callable notes. These callable securities have a final maturity of 1 to 7 years. The remaining weighted average life of the investment portfolio is 4.8 years.

F- 19

Notes to Consolidated Financial Statements

Investment securities having an amortized cost of $1,072 million and $1,205 million at December 31, 2015 and 2014, respectively, were pledged to collateralize government and trust department deposits in accordance with federal and state requirements, to secure repurchase agreements sold and as collateral for FHLB advance borrowings.

At December 31, 2015, $429 million was pledged for government and trust department deposits, $622 million was pledged to secure repurchase agreements and $21 million was pledged as collateral for FHLB advance borrowings. At December 31, 2014, $513 million was pledged for government and trust department deposits, $664 million was pledged to secure repurchase agreements and $28 million was pledged as collateral for FHLB advance borrowings.

At December 31, 2015, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

During 2015, Park sold certain HFS investment securities with a book value of $3.1 million at a gain of $88,000. These securities had been paid down to 97.8% of the principal outstanding at acquisition. During 2014, Park sold investment securities with a book value of $187,000 at a gain of $22,000. Additionally, Park sold investment securities with a book value of $174.1 million at a loss of $1.2 million. During 2013, Park sold $75.0 million of securities at book value for no gain.

6. Loans

The composition of the loan portfolio, by class of loan, as of December 31, 2015 and December 31, 2014 was as follows:

	12/31/2015						12/31/2014
(In thousands)	Loan Balance		Accrued Interest Receivable		Recorded Investment		Loan Balance		Accrued Interest Receivable		Recorded Investment
Commercial, financial and agricultural *	$	955,727	$	3,437	$	959,164	$	856,535	$	3,218	$	859,753
Commercial real estate *	1,113,603		4,009		1,117,612		1,069,637		3,546		1,073,183
Construction real estate:
SEPH commercial land and development	2,044		—		2,044		2,195		—		2,195
Remaining commercial	128,046		321		128,367		115,139		300		115,439
Mortgage	36,722		75		36,797		31,148		72		31,220
Installment	6,533		21		6,554		7,322		23		7,345
Residential real estate:
Commercial	410,571		1,014		411,585		417,612		1,038		418,650
Mortgage	1,210,819		1,469		1,212,288		1,189,709		1,548		1,191,257
HELOC	211,415		769		212,184		216,915		803		217,718
Installment	22,638		78		22,716		27,139		97		27,236
Consumer	967,111		3,032		970,143		893,160		2,967		896,127
Leases	2,856		14		2,870		3,171		17		3,188
Total loans	$	5,068,085	$	14,239	$	5,082,324	$	4,829,682	$	13,629	$	4,843,311

* Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

Loans are shown net of deferred origination fees, costs and unearned income of $10.4 million at December 31, 2015 and $9.4 million at December 31, 2014, which represented a net deferred income position in both years.

Overdrawn deposit accounts of $1.7 million and $2.3 million have been reclassified to loans at December 31, 2015 and 2014, respectively, and are included in the commercial, financial and agricultural loan class above.

F- 20

Notes to Consolidated Financial Statements

Credit Quality

The following table presents the recorded investment in nonaccrual loans, accruing troubled debt restructurings ("TDRs"), and loans past due 90 days or more and still accruing by class of loan as of December 31, 2015 and December 31, 2014:

	12/31/2015
(In thousands)	Nonaccrual Loans		Accruing Troubled Debt Restructurings		Loans Past Due 90 Days or More and Accruing		Total Nonperforming Loans
Commercial, financial and agricultural	$	21,676	$	8,947	$	—	$	30,623
Commercial real estate	15,268		2,757		—		18,025
Construction real estate:
SEPH commercial land and development	2,044		—		—		2,044
Remaining commercial	4,162		514		—		4,676
Mortgage	7		110		—		117
Installment	64		114		—		178
Residential real estate:
Commercial	25,063		261		—		25,324
Mortgage	20,378		10,143		851		31,372
HELOC	1,749		873		27		2,649
Installment	1,657		635		4		2,296
Consumer	3,819		734		1,093		5,646
Total loans	$	95,887	$	25,088	$	1,975	$	122,950

	12/31/2014
(In thousands)	Nonaccrual Loans		Accruing Troubled Debt Restructurings		Loans Past Due 90 Days or More and Accruing		Total Nonperforming Loans
Commercial, financial and agricultural	$	18,826	$	297	$	229	$	19,352
Commercial real estate	19,299		2,690		—		21,989
Construction real estate:
SEPH commercial land and development	2,078		—		—		2,078
Remaining commercial	5,558		51		—		5,609
Mortgage	59		94		9		162
Installment	115		125		—		240
Residential real estate:
Commercial	24,336		594		—		24,930
Mortgage	21,869		10,349		1,329		33,547
HELOC	1,879		630		9		2,518
Installment	1,743		779		—		2,522
Consumer	4,631		723		1,133		6,487
Total loans	$	100,393	$	16,332	$	2,709	$	119,434

F- 21

Notes to Consolidated Financial Statements

The following table provides additional information regarding those nonaccrual and accruing TDR loans that are individually evaluated for impairment and those collectively evaluated for impairment as of December 31, 2015 and December 31, 2014.

	12/31/2015						12/31/2014
(In thousands)	Nonaccrual and accruing TDRs		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Nonaccrual and accruing TDRs		Loans individually evaluated for impairment		Loans collectively evaluated for impairment
Commercial, financial and agricultural	$	30,623	$	30,595	$	28	$	19,123	$	19,106	$	17
Commercial real estate	18,025		18,025		—		21,989		21,989		—
Construction real estate:
SEPH commercial land and development	2,044		2,044		—		2,078		2,078		—
Remaining commercial	4,676		4,676		—		5,609		5,609		—
Mortgage	117		—		117		153		—		153
Installment	178		—		178		240		—		240
Residential real estate:
Commercial	25,324		25,324		—		24,930		24,930		—
Mortgage	30,521		—		30,521		32,218		—		32,218
HELOC	2,622		—		2,622		2,509		—		2,509
Installment	2,292		—		2,292		2,522		—		2,522
Consumer	4,553		—		4,553		5,354		—		5,354
Total loans	$	120,975	$	80,664	$	40,311	$	116,725	$	73,712	$	43,013

All of the loans individually evaluated for impairment were evaluated using the fair value of the collateral or the present value of expected future cash flows as the measurement method.

F- 22

Notes to Consolidated Financial Statements

The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2015 and December 31, 2014.

	12/31/2015						12/31/2014
(In thousands)	Unpaid principal balance		Recorded investment		Allowance for loan losses allocated		Unpaid principal balance		Recorded investment		Allowance for loan losses allocated
With no related allowance recorded
Commercial, financial and agricultural	$	32,583	$	18,763	$	—	$	30,601	$	17,883	$	—
Commercial real estate	15,138		14,916		—		27,923		20,696		—
Construction real estate:
SEPH commercial land and development	10,834		2,044		—		11,026		2,078		—
Remaining commercial	2,506		1,531		—		1,427		391		—
Residential real estate:
Commercial	23,798		23,480		—		25,822		23,352		—
With an allowance recorded
Commercial, financial and agricultural	16,155		11,832		1,904		1,251		1,223		981
Commercial real estate	3,195		3,109		381		1,310		1,293		262
Construction real estate:
Remaining commercial	3,145		3,145		1,356		5,218		5,218		1,812
Residential real estate:
Commercial	1,951		1,844		550		1,578		1,578		605
Total	$	109,305	$	80,664	$	4,191	$	106,156	$	73,712	$	3,660

Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. At December 31, 2015 and December 31, 2014, there were $24.2 million and $32.4 million, respectively, of partial charge-offs on loans individually evaluated for impairment with no related allowance recorded and $4.5 million and $45,000, respectively, of partial charge-offs on loans individually evaluated for impairment that also had a specific reserve allocated.

The allowance for loan losses included specific reserves related to loans individually evaluated for impairment at December 31, 2015 and 2014, of $4.2 million and $3.7 million, respectively. These loans with specific reserves had a recorded investment of $19.9 million and $9.3 million as of December 31, 2015 and 2014, respectively.

F- 23

Notes to Consolidated Financial Statements

Interest income on loans individually evaluated for impairment is recognized on a cash basis only when Park expects to receive the entire recorded investment of the loan. The following tables present the average recorded investment and interest income recognized subsequent to impairment on loans individually evaluated for impairment as of and for the years ended December 31, 2015, 2014, and 2013:

			Year ended December 31, 2015
(In thousands)	Recorded Investment as of December 31, 2015		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	30,595	$	20,179	$	340
Commercial real estate	18,025		17,883		550
Construction real estate:
SEPH commercial land and development	2,044		2,066		21
Remaining commercial	4,676		5,666		26
Residential real estate:
Commercial	25,324		24,968		1,026
Consumer	—		—		—
Total	$	80,664	$	70,762	$	1,963

			Year ended December 31, 2014
(In thousands)	Recorded Investment as of December 31, 2014		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	19,106	$	19,518	$	360
Commercial real estate	21,989		31,945		1,027
Construction real estate:
SEPH commercial land and development	2,078		3,658		146
Remaining commercial	5,609		8,784		61
Residential real estate:
Commercial	24,930		28,306		1,084
Consumer	—		403		—
Total	$	73,712	$	92,614	$	2,678

F- 24

Notes to Consolidated Financial Statements

			Year ended December 31, 2013
(In thousands)	Recorded Investment as of December 31, 2013		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	20,727	$	20,523	$	412
Commercial real estate	41,822		41,426		1,151
Construction real estate:
SEPH commercial land and development	4,777		8,723		—
Remaining commercial	10,782		17,829		616
Residential real estate:
Commercial	33,408		34,972		461
Consumer	799		616		—
Total	$	112,315	$	124,089	$	2,640

The following tables present the aging of the recorded investment in past due loans as of December 31, 2015 and December 31, 2014 by class of loan.

	12/31/2015
(In thousands)	Accruing loans past due 30-89 days		Past due nonaccrual loans and loans past due 90 days or more and accruing *		Total past due		Total current		Total recorded investment
Commercial, financial and agricultural	$	670	$	7,536	$	8,206	$	950,958	$	959,164
Commercial real estate	142		530		672		1,116,940		1,117,612
Construction real estate:
SEPH commercial land and development	—		2,044		2,044		—		2,044
Remaining commercial	165		84		249		128,118		128,367
Mortgage	63		7		70		36,727		36,797
Installment	200		46		246		6,308		6,554
Residential real estate:
Commercial	325		19,521		19,846		391,739		411,585
Mortgage	10,569		8,735		19,304		1,192,984		1,212,288
HELOC	487		186		673		211,511		212,184
Installment	426		318		744		21,972		22,716
Consumer	11,458		3,376		14,834		955,309		970,143
Leases	—		—		—		2,870		2,870
Total loans	$	24,505	$	42,383	$	66,888	$	5,015,436	$	5,082,324

* Includes $2.0 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans.

F- 25

Notes to Consolidated Financial Statements

	12/31/2014
(In thousands)	Accruing loans past due 30-89 days		Past due nonaccrual loans and loans past due 90 days or more and accruing *		Total past due		Total current		Total recorded investment
Commercial, financial and agricultural	$	6,482	$	7,508	$	13,990	$	845,763	$	859,753
Commercial real estate	808		8,288		9,096		1,064,087		1,073,183
Construction real estate:
SEPH commercial land and development	—		2,068		2,068		127		2,195
Remaining commercial	166		77		243		115,196		115,439
Mortgage	39		68		107		31,113		31,220
Installment	21		25		46		7,299		7,345
Residential real estate:
Commercial	250		19,592		19,842		398,808		418,650
Mortgage	11,146		10,637		21,783		1,169,474		1,191,257
HELOC	262		387		649		217,069		217,718
Installment	596		464		1,060		26,176		27,236
Consumer	11,304		3,818		15,122		881,005		896,127
Leases	—		—		—		3,188		3,188
Total loans	$	31,074	$	52,932	$	84,006	$	4,759,305	$	4,843,311

* Includes $2.7 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans.

Credit Quality Indicators

Management utilizes past due information as a credit quality indicator across the loan portfolio. Past due information as of December 31, 2015 and 2014 is included in the tables above. The past due information is the primary credit quality indicator within the following classes of loans: (1) mortgage loans and installment loans in the construction real estate segment; (2) mortgage loans, HELOC and installment loans in the residential real estate segment; and (3) consumer loans. The primary credit indicator for commercial loans is based on an internal grading system that grades all commercial loans on a scale from 1 to 8. Credit grades are continuously monitored by the responsible loan officer and adjustments are made when appropriate. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans that are pass-rated (graded a 1 through a 4) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans. Loans classified as special mention have potential weaknesses that require management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of Park’s credit position at some future date. Commercial loans graded 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or the value of the collateral pledged, if any. Loans so classified have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Park will sustain some loss if the deficiencies are not corrected. Commercial loans that are graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Certain 6-rated loans and all 7-rated loans are included within the impaired category. A loan is deemed impaired when management determines the borrower's ability to perform in accordance with the contractual loan agreement is in doubt. Any commercial loan graded an 8 (loss) is completely charged off.

F- 26

Notes to Consolidated Financial Statements

The tables below present the recorded investment by loan grade at December 31, 2015 and December 31, 2014 for all commercial loans:

	12/31/2015
(In thousands)	5 Rated		6 Rated		Impaired		Pass Rated		Recorded Investment
Commercial, financial and agricultural*	$	4,392	$	347	$	30,623	$	923,802	$	959,164
Commercial real estate*	14,880		3,417		18,025		1,081,290		1,117,612
Construction real estate:
SEPH commercial land and development	—		—		2,044		—		2,044
Remaining commercial	2,151		122		4,676		121,418		128,367
Residential real estate:
Commercial	3,280		386		25,324		382,595		411,585
Leases	—		—		—		2,870		2,870
Total Commercial Loans	$	24,703	$	4,272	$	80,692	$	2,511,975	$	2,621,642

* Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

	12/31/2014
(In thousands)	5 Rated		6 Rated		Impaired		Pass Rated		Recorded Investment
Commercial, financial and agricultural*	$	1,874	$	1,201	$	19,123	$	837,555	$	859,753
Commercial real estate*	8,448		1,712		21,989		1,041,034		1,073,183
Construction real estate:
SEPH commercial land and development	—		—		2,078		117		2,195
Remaining commercial	3,349		57		5,609		106,424		115,439
Residential real estate:
Commercial	2,581		598		24,930		390,541		418,650
Leases	—		—		—		3,188		3,188
Total Commercial Loans	$	16,252	$	3,568	$	73,729	$	2,378,859	$	2,472,408

* Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

Troubled Debt Restructuring

Management classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession to the borrower as part of a modification or in the loan renewal process. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. A court's discharge of a borrower's debt in a Chapter 7 bankruptcy is considered a concession when the borrower does not reaffirm the discharged debt.

Certain loans which were modified during the years ended December 31, 2015 and December 31, 2014 did not meet the definition of a TDR as the modification was a delay in a payment that was considered to be insignificant. Management considers a forbearance period of up to three months or a delay in payment of up to 30 days to be insignificant. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. Management reviews all accruing TDRs quarterly to ensure payments continue to be made in accordance with the modified terms.

Management reviews renewals/modifications of loans previously identified as TDRs to consider if it is appropriate to remove the TDR classification. If the borrower is no longer experiencing financial difficulty and the renewal/modification does not

F- 27

Notes to Consolidated Financial Statements

contain a concessionary interest rate or other concessionary terms, management considers the potential removal of the TDR classification. If deemed appropriate, the TDR classification is removed as the borrower has complied with the terms of the loan at the date of the renewal/modification and there was a reasonable expectation that the borrower would continue to comply with the terms of the loan subsequent to the date of the renewal/modification. The majority of these TDRs were originally considered restructurings in a prior year as a result of a renewal/modification with an interest rate that was not commensurate with the risk of the underlying loan at the time of the renewal/modification. During the years ended December 31, 2015 and 2014, Park removed the TDR classification on $1.2 million and $2.5 million, respectively, of loans that met the requirements discussed above.

At December 31, 2015 and 2014, there were $41.1 million and $47.5 million, respectively, of TDRs included in the nonaccrual loan totals. At December 31, 2015 and 2014, $19.1 million and $15.7 million, respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured note. As of December 31, 2015 and 2014, there were $25.1 million and $16.3 million, respectively, of TDRs included in accruing loan totals. Management will continue to review the restructured loans and may determine it appropriate to move certain nonaccrual TDRs to accrual status in the future.

At December 31, 2015 and 2014, Park had commitments to lend $2.3 million and $1.4 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR.

The specific reserve related to TDRs at December 31, 2015 and 2014 was $2.3 million and $2.4 million, respectively. Modifications made in 2014 and 2015 were largely the result of renewals, extending the maturity date of the loan, at terms consistent with the original note. These modifications were deemed to be TDRs primarily due to Park’s conclusion that the borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as impaired loans, and thus were also previously evaluated for impairment under ASC 310.  Additional specific reserves of $1.3 million were recorded during the year ended December 31, 2015, as a result of TDRs identified in the 2015 year. Additional specific reserves of $0.7 million were recorded during the year ended December 31, 2014 as a result of TDRs identified in the 2014 year. Additional specific reserves of $1.1 million were recorded during the year ended December 31, 2013 as a result of TDRs identified in the 2013 year.

The terms of certain other loans were modified during the years ended December 31, 2015 and 2014 that did not meet the definition of a TDR. Modified substandard commercial loans which did not meet the definition of a TDR had a total recorded investment as of December 31, 2015 and 2014 of $116,000 and $987,000, respectively. The renewal/modification of these loans: (1) involved a renewal/modification of the terms of a loan to a borrower who was not experiencing financial difficulties, (2) resulted in a delay in a payment that was considered to be insignificant, or (3) resulted in Park obtaining additional collateral or guarantees that improved the likelihood of the ultimate collection of the loan such that the modification was deemed to be at market terms.  Modified consumer loans which did not meet the definition of a TDR had a total recorded investment as of December 31, 2015 and 2014 of $16.5 million and $19.9 million, respectively. Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds.

F- 28

Notes to Consolidated Financial Statements

The following tables detail the number of contracts modified as TDRs during the years ended December 31, 2015, 2014 and 2013 as well as the recorded investment of these contracts at December 31, 2015, 2014, and 2013. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal.

	Year ended December 31, 2015
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	39	$	8,948	$	3,640	$	12,588
Commercial real estate	14	637		3,523		4,160
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	2	513		—		513
Mortgage	1	19		—		19
Installment	—	—		—		—
Residential real estate:
Commercial	11	—		1,185		1,185
Mortgage	39	1,132		2,122		3,254
HELOC	26	315		45		360
Installment	9	—		155		155
Consumer	283	202		888		1,090
Total loans	424	$	11,766	$	11,558	$	23,324

	Year ended December 31, 2014
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	30	$	292	$	431	$	723
Commercial real estate	11	1,184		1,254		2,438
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	2	—		206		206
Mortgage	—	—		—		—
Installment	2	—		56		56
Residential real estate:
Commercial	9	—		866		866
Mortgage	46	32		2,325		2,357
HELOC	10	85		241		326
Installment	10	109		12		121
Consumer	330	244		1,058		1,302
Total loans	450	$	1,946	$	6,449	$	8,395

F- 29

Notes to Consolidated Financial Statements

	Year ended December 31, 2013
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	34	$	7	$	1,334	$	1,341
Commercial real estate	22	—		8,563		8,563
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	3	—		98		98
Mortgage	—	—		—		—
Installment	4	26		25		51
Residential real estate:
Commercial	15	—		2,552		2,552
Mortgage	62	1,967		2,278		4,245
HELOC	16	175		—		175
Installment	13	113		179		292
Consumer	327	805		345		1,150
Total loans	496	$	3,093	$	15,374	$	18,467

Of those loans which were modified and determined to be a TDR during the year ended December 31, 2015, $0.8 million were on nonaccrual status as of December 31, 2014. Of those loans which were modified and determined to be a TDR during the year ended December 31, 2014, $0.7 million were on nonaccrual status as of December 31, 2013. Of those loans which were modified and determined to be a TDR during the year ended December 31, 2013, $5.5 million were on nonaccrual status as of December 31, 2012.

The following table presents the recorded investment in financing receivables which were modified as TDRs within the previous 12 months and for which there was a payment default during the year ended December 31, 2015, December 31, 2014, and December 31, 2013. For this table, a loan is considered to be in default when it becomes 30 days contractually past due under modified terms. The additional allowance for loan loss resulting from the defaults on TDR loans was immaterial.

	Year ended December 31, 2015			Year ended December 31, 2014				Year ended December 31, 2013
(In thousands)	Number of Contracts	Recorded Investment		Number of Contracts		Recorded Investment		Number of Contracts	Recorded Investment
Commercial, financial and agricultural	1	$	1	4		$	206	11	$	771
Commercial real estate	1	626		1		302		11	2,839
Construction real estate:
SEPH commercial land and development	—	—		—		—		—	—
Remaining commercial	—	—		—		—		—	—
Mortgage	—	—		—		—		—	—
Installment	—	—		—		—		1	10
Residential real estate:
Commercial	3	1,005		1		3		4	1,683
Mortgage	12	682		14		810		26	1,533
HELOC	1	5		2		160		—	—
Installment	2	101		2		12		5	72
Consumer	47	434		62		516		74	471
Leases	—	—		—		—		—	—
Total loans	67	$	2,854	$	86	$	2,009	132	$	7,379

F- 30

Notes to Consolidated Financial Statements

Of the $2.9 million in modified TDRs which defaulted during the year ended December 31, 2015, $44,000 were accruing loans and $2.8 million were nonaccrual loans. Of the $2.0 million in modified TDRs which defaulted during the year ended December 31, 2014, $314,000 were accruing loans and $1.7 million were nonaccrual loans. Of the $7.4 million in modified TDRs which defaulted during the year ended December 31, 2013, $397,000 were accruing loans and $7.0 million were nonaccrual loans.

Certain of the Corporation’s executive officers, directors and related entities of directors are loan customers of PNB. As of December 31, 2015 and 2014, credit exposure aggregating approximately $47.0 million and $45.7 million, respectively, was outstanding to such parties. Of this total exposure, approximately $36.0 million was outstanding at each of December 31, 2015 and 2014, with the remaining balance representing available credit. During 2015, new loans and advances on existing loans were made to these executive officers, directors and related entities totaling $5.8 million and $7.1 million, respectively. These extensions of credit were offset by payments of $12.9 million. During 2014, new loans and advances on existing loans were $6.0 million and $6.4 million, respectively. These extensions of credit were offset by payments of $14.1 million.

7. Allowance for Loan Losses

The allowance for loan losses is that amount management believes is adequate to absorb probable incurred credit losses in the loan portfolio based on management’s evaluation of various factors including overall growth in the loan portfolio, an analysis of individual loans, prior and current loss experience, and current economic conditions. A provision for loan losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1 - Summary of Significant Accounting Policies.

Management updates historical losses annually in the fourth quarter, or more frequently as deemed appropriate.

With the inclusion of 2013 net charge-off information, management concluded that it was no longer appropriate to calculate the historical loss average with an even allocation across the five-year period. Rather than apply a 20% allocation to each year in the calculation of the historical annualized loss factor, management determined that it was appropriate to more heavily weight those years with higher losses in the historical loss calculation, given the continued uncertainty in the current economic environment. Specifically, rather than applying equal percentages to each year in the historical loss calculation, management applied more weight to the 2009 through 2011 periods compared to the 2012 and 2013 periods.

Management continued to extend the historical loss period to six years in 2014 and seven years in 2015. Due to the same factors that management considered in 2013, management has continued to apply more weight to the 2009 through 2011 periods compared to the 2012 through 2015 periods.

The activity in the allowance for loan losses for the years ended December 31, 2015, 2014, and 2013 is summarized in the following tables.

	Year ended December 31, 2015
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for credit losses:
Beginning balance	$	10,719		$	8,808		$	8,652		$	14,772		$	11,401		$	—		$	54,352
Charge-offs	2,478			348			470			2,352			8,642			—			14,290
Recoveries	(1,373		)	(2,241		)	(2,092		)	(2,438		)	(3,295		)	(3		)	(11,442		)
Net charge-offs (recoveries)	1,105			(1,893		)	(1,622		)	(86		)	5,347			(3		)	2,848
Provision (Recovery)	$	4,080		$	(1,504	)	$	(1,710	)	$	(1,344	)	$	5,470		$	(2	)	$	4,990
Ending balance	$	13,694		$	9,197		$	8,564		$	13,514		$	11,524		1			$	56,494

F- 31

Notes to Consolidated Financial Statements

	Year ended December 31, 2014
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for credit losses:
Beginning balance	$	14,218		$	15,899		$	6,855		$	14,251		$	8,245		$	—		$	59,468
Charge-offs	3,779			8,003			1,316			3,944			7,738			—			24,780
Recoveries	(1,003		)	(7,759		)	(12,572		)	(2,985		)	(2,671		)	(7		)	(26,997		)
Net charge-offs (recoveries)	2,776			244			(11,256		)	959			5,067			(7		)	(2,217		)
(Recovery) Provision	(723		)	(6,847		)	(9,459		)	1,480			8,223			(7		)	(7,333		)
Ending balance	$	10,719		$	8,808		$	8,652		$	14,772		$	11,401		—			$	54,352

	Year ended December 31, 2013
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for credit losses:
Beginning balance	$	15,635		$	11,736		$	6,841		$	14,759		$	6,566		$	—		$	55,537
Charge-offs	6,160			1,832			1,791			3,207			6,163			—			19,153
Recoveries	(1,314		)	(726		)	(9,378		)	(6,000		)	(2,249		)	(2		)	(19,669		)
Net charge-offs (recoveries)	4,846			1,106			(7,587		)	(2,793		)	3,914			(2		)	(516		)
Provision (Recovery)	3,429			5,269			(7,573		)	(3,301		)	5,593			(2		)	3,415
Ending balance	$	14,218		$	15,899		$	6,855		$	14,251		$	8,245		—			$	59,468

Loans collectively evaluated for impairment in the following tables include all performing loans at December 31, 2015 and 2014, as well as nonperforming loans internally classified as consumer loans. Nonperforming consumer loans are not typically individually evaluated for impairment, but receive a portion of the statistical allocation of the allowance for loan losses. Loans individually evaluated for impairment include all impaired loans internally classified as commercial loans at December 31, 2015 and 2014, which are evaluated for impairment in accordance with GAAP (see Note 1 - Summary of Significant Accounting Policies).

F- 32

Notes to Consolidated Financial Statements

The composition of the allowance for loan losses at December 31, 2015 and 2014 was as follows: 

	December 31, 2015
(In thousands)	Commercial, financial, and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	1,904		$	381		$	1,356		$	550		$	—		$	—		$	4,191
Collectively evaluated for impairment	11,790			8,816			7,208			12,964			11,524			1			52,303
Total ending allowance balance	$	13,694		$	9,197		$	8,564		$	13,514		$	11,524		$	1		$	56,494
Loan Balance:
Loans individually evaluated for impairment	$	30,545		$	18,015		$	6,716		$	25,323		$	—		$	—		$	80,599
Loans collectively evaluated for impairment	925,182			1,095,588			166,629			1,830,120			967,111			2,856			4,987,486
Total ending loan balance	$	955,727		$	1,113,603		$	173,345		$	1,855,443		$	967,111		$	2,856		$	5,068,085
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment	6.23		%	2.11		%	20.19		%	2.17		%	—		%	—		%	5.20		%
Loans collectively evaluated for impairment	1.27		%	0.80		%	4.33		%	0.71		%	1.19		%	0.04		%	1.05		%
Total	1.43		%	0.83		%	4.94		%	0.73		%	1.19		%	0.04		%	1.11		%
Recorded Investment:
Loans individually evaluated for impairment	$	30,595		$	18,025		$	6,720		$	25,324		$	—		$	—		$	80,664
Loans collectively evaluated for impairment	928,569			1,099,587			167,042			1,833,449			970,143			2,870			5,001,660
Total ending recorded investment	$	959,164		$	1,117,612		$	173,762		$	1,858,773		$	970,143		$	2,870		$	5,082,324

F- 33

Notes to Consolidated Financial Statements

	December 31, 2014
(In thousands)	Commercial, financial, and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	981		$	262		$	1,812		$	605		$	—		$	—		$	3,660
Collectively evaluated for impairment	9,738			8,546			6,840			14,167			11,401			—			50,692
Total ending allowance balance	$	10,719		$	8,808		$	8,652		$	14,772		$	11,401		$	—		$	54,352
Loan Balance:
Loans individually evaluated for impairment	$	19,103		$	21,978		$	7,690		$	24,905		$	—		$	—		$	73,676
Loans collectively evaluated for impairment	837,432			1,047,659			148,114			1,826,470			893,160			3,171			4,756,006
Total ending loan balance	$	856,535		$	1,069,637		$	155,804		$	1,851,375		$	893,160		$	3,171		$	4,829,682
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment	5.14		%	1.19		%	23.56		%	2.43		%	—		%	—		%	4.97		%
Loans collectively evaluated for impairment	1.16		%	0.82		%	4.62		%	0.78		%	1.28		%	—		%	1.07		%
Total	1.25		%	0.82		%	5.55		%	0.80		%	1.28		%	—		%	1.13		%
Recorded Investment:
Loans individually evaluated for impairment	$	19,106		$	21,989		$	7,687		$	24,930		$	—		$	—		$	73,712
Loans collectively evaluated for impairment	840,647			1,051,194			148,512			1,829,931			896,127			3,188			4,769,599
Total ending recorded investment	$	859,753		$	1,073,183		$	156,199		$	1,854,861		$	896,127		$	3,188		$	4,843,311

8. Loans Held for Sale

Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale were $7.3 million and $5.3 million at December 31, 2015 and 2014, respectively. These amounts are included in loans on the Consolidated Balance Sheets and in the residential real estate loan segments in Note 6 - Loans and Note 7 - Allowance for Loan Losses. The contractual balance was $7.2 million and $5.2 million at December 31, 2015 and 2014, respectively. The gain expected upon sale was $95,000 and $80,000 at December 31, 2015 and 2014, respectively. None of these loans were 90 days or more past due or on nonaccrual status as of December 31, 2015 or 2014.

During 2015, Park transferred to held for sale and sold certain commercial loans previously held for investment with a book balance of $144,000, and recognized a gain of $756,000. During 2014, Park transferred certain commercial loans held for investment, with a book balance of $22.0 million, to the loans held for sale portfolio, and subsequently completed the sale of these commercial loans held for sale, recognizing a net gain on sale of $1.9 million.

F- 34

Notes to Consolidated Financial Statements

9. Other Real Estate Owned

The carrying amount of foreclosed properties held at December 31, 2015 and December 31, 2014 are listed below, as well as the recorded investment of loans secured by residential real estate properties for which formal foreclosure proceedings were in process at those dates.

(In thousands)	December 31, 2015		December 31, 2014
OREO:
Commercial real estate	$	8,333	$	6,352
Construction real estate	7,259		11,281
Residential real estate	3,059		4,972
Total OREO	$	18,651	$	22,605
Loans in process of foreclosure:
Residential real estate	$	2,021	$	2,807

10. Premises and Equipment

The major categories of premises and equipment and accumulated depreciation are summarized as follows:

December 31 (In thousands)	2015			2014
Land	$	19,123		$	17,836
Buildings	74,525			71,002
Equipment, furniture and fixtures	47,839			42,139
Leasehold improvements	3,878			3,439
Total	$	145,365		$	134,416
Less accumulated depreciation	(85,872		)	(78,937		)
Premises and equipment, net	$	59,493		$	55,479

Depreciation expense amounted to $7.3 million, $7.2 million and $7.3 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The Corporation leases certain premises and equipment accounted for as operating leases. The following is a schedule of the future minimum rental payments required for the next five years under such leases with initial terms in excess of one year: 

(In thousands)
2016	$	1,475
2017	1,276
2018	1,104
2019	1,019
2020	394
Thereafter	520
Total	$	5,788

Rent expense for Park was $1.7 million, $1.7 million and $1.8 million, for the years ended December 31, 2015, 2014 and 2013, respectively.

F- 35

Notes to Consolidated Financial Statements

11. Investment in Qualified Affordable Housing

Park makes certain equity investments in various limited partnerships that sponsor affordable housing projects. The purpose of these investments is to achieve a satisfactory return on capital, help create affordable housing opportunities, and assist the Company to achieve our goals associated with the Community Reinvestment Act.

Previously, these investments were accounted for under the cost method of accounting with amortization of the investment being recorded in other expense and tax benefits recognized in the provision for income taxes. During the first quarter of 2015, Park adopted ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, and elected the proportional amortization method with amortization expense and tax benefits recognized through the provision for income taxes. This ASU is required to be applied retrospectively to all periods presented. As a result of these changes, Park recorded a cumulative-effect adjustment to beginning retained earnings.

The following table summarizes the impact of retrospective application to the balance sheet and income statement for all prior periods presented:

(In thousands)	December 31, 2014
Total assets
As previously reported	$	7,003,256
As reported under the new guidance	7,001,199
Retained earnings
As previously reported	$	486,541
As reported under the new guidance	484,484
Total equity
As previously reported	$	698,598
As reported under the new guidance	696,541

(In thousands)	12 months ended December 31, 2014		12 months ended December 31, 2013
Total other expense
As previously reported	$	195,234	$	188,529
As reported under the new guidance	187,510		181,515
Income tax expense
As previously reported	$	28,602	$	25,131
As reported under the new guidance	36,459		32,503
Net income
As previously reported	$	84,090	$	77,227
As reported under the new guidance	83,957		76,869

The table below details the balances of Park’s affordable housing tax credit investments and related unfunded commitments as of December 31, 2015 and 2014.

(In thousands)	December 31, 2015		December 31, 2014
Affordable housing tax credit investments	$	51,247	$	48,911
Unfunded commitments	20,311		16,629

During the years ended December 31, 2015 and 2014, Park recognized amortization expense of $6.7 million and $6.9 million, respectively, which was included within the provision for income taxes. For the years ended December 31, 2015 and 2014, Park

F- 36

Notes to Consolidated Financial Statements

recognized tax credits and other benefits from its affordable housing tax credit investments of $8.9 million and $8.8 million, respectively.

12. Deposits

At December 31, 2015 and 2014, non-interest bearing and interest bearing deposits were as follows:

December 31 (In thousands)	2015		2014
Non-interest bearing	$	1,404,032	$	1,269,296
Interest bearing	3,943,610		3,858,704
Total	$	5,347,642	$	5,128,000

At December 31, 2015, the maturities of time deposits were as follows: 

(In thousands)
2016	$	814,387
2017	221,761
2018	56,744
2019	145,027
2020	52,062
After 5 years	431
Total	$	1,290,412

At December 31, 2015 and 2014, respectively, Park had approximately $21.6 million and $21.9 million of deposits received from executive officers, directors and their related entities.

Time deposits that exceed the FDIC Insurance limit of $250,000 at December 31, 2015 and 2014 were $49.7 million and $64.7 million, respectively.

13. Repurchase Agreement Borrowings

Securities sold under agreements to repurchase ("repurchase agreements") with customers represent funds deposited by customers, generally on an overnight basis, that are collateralized by investment securities owned by Park. Repurchase agreements with customers are included in short-term borrowings on the consolidated balance sheets. Park's repurchase agreements with a third-party financial institution are classified as long-term debt on the Consolidated Balance Sheets.

All repurchase agreements are subject to terms and conditions of repurchase/security agreements between Park and the client and are accounted for as secured borrowings. Park's repurchase agreements reflected in short-term borrowings consist of customer accounts and securities which are pledged on an individual security basis.

At December 31, 2015 and December 31, 2014, Park's repurchase agreement borrowings totaled $554 million and $577 million, respectively. At both December 31, 2015 and December 31, 2014, $300 million of Park's repurchase agreement borrowings were classified as long-term debt with the remaining amount being classified as short-term debt on the Consolidated Balance Sheets. These borrowings were collateralized with U.S. government and agency securities with a carrying value of $622 million and $664 million at December 31, 2015 and December 31, 2014, respectively. Declines in the value of the collateral would require Park to pledge additional securities. As of December 31, 2015 and December 31, 2014, Park had $585 million and $347 million, respectively, of available unpledged securities.

F- 37

Notes to Consolidated Financial Statements

The following table presents the carrying value of Park's repurchase agreements by remaining contractual maturity at December 31, 2015 and December 31, 2014:

	December 31, 2015
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government and agency securities	$	247,618	$	2,239	$	—	$	304,385	$	554,242
	December 31, 2014
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government and agency securities	$	268,427	$	164	$	4,940	$	303,449	$	576,980

See Note 14 - Short-Term Borrowings for additional information related to repurchase agreements classified as short-term borrowings. See Note 15 - Long-Term Debt for additional information related to repurchase agreements classified as long-term debt.

14. Short-Term Borrowings

Short-term borrowings were as follows:

December 31 (In thousands)	2015		2014
Securities sold under agreements to repurchase	$	254,242	$	276,980
FHLB advances	140,000		—
Total short-term borrowings	$	394,242	$	276,980

The outstanding balances for all short-term borrowings as of December 31, 2015 and 2014 and the weighted-average interest rates as of and paid during each of the years then ended were as follows: 

(In thousands)	Repurchase agreements			FHLB Advances
2015
Ending balance	$	254,242		$	140,000
Highest month-end balance	278,324			140,000
Average daily balance	257,622			1,096
Weighted-average interest rate:
As of year-end	0.17		%	0.56		%
Paid during the year	0.18		%	0.59		%
2014
Ending balance	$	276,980		$	—
Highest month-end balance	307,025			—
Average daily balance	262,709			561
Weighted-average interest rate:
As of year-end	0.18		%	—		%
Paid during the year	0.19		%	0.10		%

During 2014 and 2015, outstanding FHLB advances were collateralized by investment securities owned by the Corporation’s bank subsidiary and by various loans pledged under a blanket agreement by the Corporation’s bank subsidiary. At December 31, 2015 and 2014, $21 million and $28 million, respectively, of investment securities were pledged as collateral for FHLB advances. At December 31, 2015 and 2014, $1,985 million and $2,038 million, respectively, of commercial real estate and residential mortgage

F- 38

Notes to Consolidated Financial Statements

loans were pledged under a blanket agreement to the FHLB by Park’s bank subsidiary. See Note 13 - Repurchase Agreement Borrowings for information related to investment securities collateralizing repurchase agreements.

15. Long-Term Debt

Long-term debt is listed below:

December 31,	2015					2014
(In thousands)	Outstanding Balance			Average Rate		Outstanding Balance			Average Rate
Total Federal Home Loan Bank advances by year of maturity:
2015	—			—	%	51,000			2.00	%
2016	—			—	%	26,000			0.92	%
2017	50,000			1.25	%	51,000			1.28	%
2018	150,000			2.04	%	125,049			2.11	%
2019	75,000			1.96	%	75,333			1.97	%
2020	25,000			2.14	%	25,462			2.19	%
Thereafter	150,000			3.32	%	150,699			3.33	%
Total	$	450,000		2.37	%	504,543			2.30	%
Total broker repurchase agreements by year of maturity:
2017	300,000			1.75	%	300,000			1.75	%
Total	$	300,000		1.75	%	$	300,000		1.75	%
Total combined long-term debt by year of maturity:
2015	—			—	%	51,000			2.00	%
2016	—			—	%	26,000			0.92	%
2017	350,000			1.68	%	351,000			1.68	%
2018	150,000			2.04	%	125,049			2.11	%
2019	75,000			1.96	%	75,333			1.97	%
2020	25,000			2.14	%	25,462			2.19	%
Thereafter	150,000			3.32	%	150,699			3.33	%
Total	$	750,000		2.12	%	$	804,543		2.09	%
Prepayment penalty	(11,895		)	—		(17,941		)	—
Total long-term debt	$	738,105		2.16	%	$	786,602		2.89	%

On November 30, 2012, Park restructured $300 million in repurchase agreements at a rate of 1.75%. As part of this restructuring, Park paid a prepayment penalty of $25 million. The penalty is being amortized as an adjustment to interest expense over the remaining term of the repurchase agreements using the effective interest method, resulting in an effective interest rate of 3.55%. Of the $25 million prepayment penalty, $9.8 million remained to be amortized as of December 31, 2015. The remaining amortization will be $5.1 million in 2016 and $4.7 million in 2017.

On November 21, 2014, Park restructured $50 million in FHLB advances at a rate of 1.25%. As part of this restructuring, Park paid a prepayment penalty of $3.2 million. The penalty is being amortized as an adjustment to interest expense over the remaining term of the advances using the effective interest method, resulting in an effective interest rate of 3.52%. Of the $3.2 million prepayment penalty, $2.1 million remained to be amortized as of December 31, 2015. The remaining amortization will be $1.1 million in 2016 and $1.0 million in 2017.

On March 30, 2015, Park prepaid $54.5 million of FHLB advances, with a weighted average rate of 1.59%, resulting in a prepayment penalty of $532,000.

Park had approximately $150.0 million of long-term debt at December 31, 2015 with a contractual maturity longer than five years. However, all of this debt is callable by the issuer in 2016.

F- 39

Notes to Consolidated Financial Statements

At December 31, 2015 and 2014, FHLB advances were collateralized by investment securities owned by PNB’s banking divisions and by various loans pledged under a blanket agreement by PNB's banking divisions. At December 31, 2015 and 2014, $21 million and $28 million, respectively, of investment securities were pledged as collateral for FHLB advances. At December 31, 2015 and 2014, $1,985 million and $2,038 million, respectively, of commercial real estate and residential mortgage loans were pledged under a blanket agreement to the FHLB by Park's bank subsidiary. See Note 13 - RepurchaseAgreement Borrowings for information related to investment securities collateralizing repurchase agreements.

16. Subordinated Notes

As part of the acquisition of Vision's parent bank holding company ("Vision Parent") on March 9, 2007, Park became the successor to Vision Parent under (i) the Amended and Restated Trust Agreement of Vision Bancshares Trust I (the “Trust”), dated as of December 5, 2005, (ii) the Junior Subordinated Indenture, dated as of December 5, 2005, and (iii) the Guarantee Agreement, also dated as of December 5, 2005.

On December 1, 2005, Vision Parent formed a wholly-owned Delaware statutory business trust, Vision Bancshares Trust I (“Trust I”), which issued $15.0 million of Trust I's floating rate preferred securities (the “Trust Preferred Securities”) to institutional investors. These Trust Preferred Securities qualify as Tier I capital under FRB guidelines. All of the common securities of Trust I are owned by Park. The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by Trust I to purchase $15.5 million of junior subordinated notes, which carry a floating rate based on three-month LIBOR plus 148 basis points. The debentures represent the sole asset of Trust I. The Trust Preferred Securities accrue and pay distributions at a floating rate of three-month LIBOR plus 148 basis points per annum. The Trust Preferred Securities are mandatorily redeemable upon maturity of the notes in December 2035, or upon earlier redemption as provided in the notes. Park has the right to redeem the notes purchased by Trust I in whole or in part, on or after December 30, 2010. As specified in the indenture, if the notes are redeemed prior to maturity, the redemption price will be the principal amount, plus any unpaid accrued interest. In accordance with GAAP, Trust I is not consolidated with Park’s financial statements, but rather the subordinated notes are reflected as a liability.

On December 23, 2009, Park entered into a Note Purchase Agreement, dated December 23, 2009, with 38 purchasers (the “2009 Purchasers”). Under the terms of the Note Purchase Agreement, the 2009 Purchasers purchased from Park an aggregate principal amount of $35.25 million of 10% Subordinated Notes due December 23, 2019 (the “2009 Notes”). The 2009 Notes were intended to qualify as Tier 2 capital under applicable rules and regulations of the FRB. The 2009 Notes could not be prepaid in any amount prior to December 23, 2014; however, subsequent to that date, Park could prepay, without penalty, all or a portion of the principal amount outstanding. Of the $35.25 million in 2009 Notes, $14.05 million were purchased by related parties. The 2009 Notes were prepaid in full on December 24, 2014, together with accrued interest.

On April 20, 2012, Park entered into a Note Purchase Agreement, dated April 20, 2012 (the “2012 Purchase Agreement”), with 56 purchasers (the "2012 Purchasers"). Under the terms of the 2012 Purchase Agreement, the 2012 Purchasers purchased from Park an aggregate principal amount of $30 million of 7% Subordinated Notes due April 20, 2022 (the "2012 Notes"). The 2012 Notes are intended to qualify as Tier 2 capital under applicable rules and regulations of the FRB. Each 2012 Note was purchased at a purchase price of 100% of the principal amount thereof. The 2012 Notes may not be prepaid by Park prior to April 20, 2017. From and after April 20, 2017, Park may prepay all, or from time to time, any part of the 2012 Notes at 100% of the principal amount (plus accrued interest) without penalty, subject to any requirement under FRB regulations to obtain prior approval from the FRB before making any prepayment.

17. Share-Based Compensation

The Park National Corporation 2013 Long-Term Incentive Plan (the "2013 Incentive Plan") was adopted by the Board of Directors of Park on January 28, 2013 and was approved by Park's shareholders at the Annual Meeting of Shareholders on April 22, 2013. The 2013 Incentive Plan makes equity-based awards and cash-based awards available for grant to participants in the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted common shares, restricted stock unit awards that may be settled in common shares, cash or a combination of the two, unrestricted common shares and cash-based awards. Under the 2013 Incentive Plan, 600,000 common shares are authorized to be issued and delivered in connection with grants under the 2013 Incentive Plan. The common shares to be issued and delivered under the 2013 Incentive Plan may consist of either common shares currently held or common shares subsequently acquired by Park as treasury shares, including common shares purchased in the open market or in private transactions. No awards may be made under the 2013 Incentive Plan after April 22, 2023. At December 31, 2015, 524,100 common shares were available for future grants under the 2013 Incentive Plan.

During 2015, 2014, and 2013, Park granted 10,150, 10,200, and 10,550 common shares, respectively, to directors of Park and to directors of Park's bank subsidiary PNB (and its divisions) under the 2013 Incentive Plan.  The common shares granted to

F- 40

Notes to Consolidated Financial Statements

directors were not subjected to a vesting period and resulted in expense of $963,000, $801,000, and $850,000 in 2015, 2014, and 2013, respectively, which is included in Professional fees and services on the Consolidated Income Statement. 

On January 24, 2014, the Compensation Committee of the Board of Directors of Park granted awards of an aggregate of 21,975 performance-based restricted stock units (“PBRSUs”) to certain employees of Park, which grants were effective on January 24, 2014. On December 16, 2014, the Compensation Committee of the Board of Directors of Park granted awards of an aggregate of 23,025 PBRSUs to certain employees of Park, which grants were effective on January 2, 2015. The number of PBRSUs earned or settled will depend on certain performance conditions and are also subject to service-based vesting. None of the PBRSUs have vested as of December 31, 2015. As of December 31, 2015, 200 PBRSUs have been forfeited.

Share-based compensation expense of $865,000 and $458,000 was recognized for the years ended December 31, 2015 and 2014, respectively, related to PBRSU awards to employees. Park expects to recognize additional share-based compensation expense of approximately $734,000 through the first quarter of 2018 related to PBRSUs granted in 2014 and approximately $1.2 million through the first quarter of 2019 related to PBRSUs granted in 2015. No share-based compensation expense was recognized in 2013 as there were no outstanding awards held by employees.

18. Benefit Plans

The Corporation has a noncontributory Defined Benefit Pension Plan (the “Pension Plan”) covering substantially all of the employees of the Corporation and its subsidiaries. The Pension Plan provides benefits based on an employee’s years of service and compensation.

There were no pension contributions in 2014 or 2015 and there is no contribution expected in 2016.

Using an accrual measurement date of December 31, 2015 and 2014, plan assets and benefit obligation activity for the Pension Plan are listed below:

(In thousands)	2015			2014
Change in fair value of plan assets
Fair value at beginning of measurement period	$	160,598		$	152,739
Actual return on plan assets	(58		)	15,511
Benefits paid	(7,042		)	(7,652		)
Fair value at end of measurement period	$	153,498		$	160,598
Change in benefit obligation
Projected benefit obligation at beginning of measurement period	$	109,328		$	89,179
Service cost	5,368			4,331
Interest cost	4,695			4,577
Actuarial (gains) loss	(10,104		)	18,893
Benefits paid	(7,042		)	(7,652		)
Projected benefit obligation at the end of measurement period	$	102,245		$	109,328
Funded status at end of year (fair value of plan assets less benefit obligation)	$	51,253		$	51,270

 The asset allocation for the Pension Plan as of each measurement date, by asset category, was as follows:

		Percentage of Plan Assets
Asset category	Target Allocation	2015		2014
Equity securities	50% - 100%	85	%	85	%
Fixed income and cash equivalents	remaining balance	15	%	15	%
Total		100	%	100	%

F- 41

Notes to Consolidated Financial Statements

The investment policy, as established by the Retirement Plan Committee, is to invest assets according to the target allocation stated above. Assets will be reallocated periodically based on the investment strategy of the Retirement Plan Committee. The investment policy is reviewed periodically.

The expected long-term rate of return on plan assets used to measure the benefit obligation was 7.25% as of December 31, 2015 and 2014. This return was based on the expected return of each of the asset categories, weighted based on the median of the target allocation for each class.

The accumulated benefit obligation for the Pension Plan was $86.1 million and $92.0 million at December 31, 2015 and 2014, respectively.

On November 17, 2009, the Park Pension Plan completed the purchase of 115,800 common shares of Park for $7.0 million or $60.45 per share. At December 31, 2015 and 2014, the fair value of the 115,800 common shares held by the Pension Plan was $10.5 million, or $90.48 per share and $10.2 million, or $88.48 per share, respectively.

The weighted average assumptions used to determine benefit obligations at December 31, 2015, 2014 and 2013 were as follows:

	2015		2014		2013
Discount rate	4.88	%	4.42	%	5.30	%
Rate of compensation increase
Under age 30	10.00	%	10.00	%	10.00	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40 and over	3.00	%	3.00	%	3.00	%

The estimated future pension benefit payments reflecting expected future service for the next ten years are shown below (in thousands):

2016	$	5,010
2017	5,321
2018	5,800
2019	6,780
2020	7,317
2021-2025	45,831
Total	$	76,059

The following table shows ending balances of accumulated other comprehensive loss at December 31, 2015 and 2014.

(In thousands)	2015			2014
Prior service cost	$	—		$	(15	)
Net actuarial loss	(23,618		)	(22,855		)
Total	(23,618		)	(22,870		)
Deferred taxes	8,267			8,005
Accumulated other comprehensive loss	$	(15,351	)	$	(14,865	)

F- 42

Notes to Consolidated Financial Statements

Using an actuarial measurement date of December 31 for 2015, 2014 and 2013, components of net periodic benefit cost and other amounts recognized in other comprehensive (loss) income were as follows:

(In thousands)	2015			2014			2013
Components of net periodic benefit cost and other amounts recognized in other comprehensive (loss) income
Service cost	$	(5,368	)	$	(4,331	)	$	(4,817	)
Interest cost	(4,695		)	(4,577		)	(4,223		)
Expected return on plan assets	11,420			10,869			9,536
Amortization of prior service cost	(15		)	(19		)	(20		)
Recognized net actuarial loss	(637		)	—			(2,703		)
Net periodic benefit income (cost)	$	705		$	1,942		$	(2,227	)
Change to net actuarial (loss) gain for the period	$	(1,400	)	$	(14,276	)	$	30,409
Amortization of prior service cost	15			19			20
Amortization of net loss	637			—			2,703
Total recognized in other comprehensive (loss) income	(748		)	(14,257		)	33,132
Total recognized in net benefit cost and other comprehensive (loss) income	$	(43	)	$	(12,315	)	$	30,905

There are no estimated prior service costs for the Pension Plan to be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year. The estimated net actuarial loss expected to be recognized in the next fiscal year is $773,000.

The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2015, 2014 and 2013 are listed below:

	2015		2014		2013
Discount Rate	4.42	%	5.30	%	4.47	%
Rate of compensation increase
Under age 30	10.00	%	10.00	%	10.00	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40 and over	3.00	%	3.00	%	3.00	%
Expected long-term return on plan assets	7.25	%	7.25	%	7.50	%

The Pension Plan maintains cash in a PNB savings account. The Pension Plan cash balance was $0.7 million at December 31, 2015.

GAAP defines fair value as the price that would be received by Park for an asset or paid by Park to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date, using the most advantageous market for the asset or liability. The fair values of equity securities, consisting of mutual fund investments and common stock (U.S. large cap) held by the Pension Plan and the fixed income and cash equivalents, are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs). The fair value of Pension Plan assets at December 31, 2015 was $153.5 million. At December 31, 2015, $135.0 million of equity investments and cash in the Pension Plan were categorized as Level 1 inputs; $18.5 million of plan investments in corporate (U.S. large cap) and U.S. Government sponsored entity bonds were categorized as Level 2 inputs, as fair value was based on quoted market prices of comparable instruments; and no investments were categorized as Level 3 inputs. The fair value of Pension Plan assets was $160.6 million at December 31, 2014. At December 31, 2014, $141.1 million of investments in the Pension Plan were categorized as Level 1 inputs; $19.5 million were categorized as Level 2; and no investments were categorized as Level 3.

The Corporation has a voluntary salary deferral plan covering substantially all of the employees of the Corporation and its subsidiaries. Eligible employees may contribute a portion of their compensation subject to a maximum statutory limitation. The Corporation provides a matching contribution established annually by the Corporation. Contribution expense for the Corporation was $1.2 million, $1.1 million, and $1.1 million for 2015, 2014 and 2013, respectively.

F- 43

Notes to Consolidated Financial Statements

The Corporation has entered into Supplemental Executive Retirement Benefits Agreements (the "SERP Agreements") with certain key officers of the Corporation and its subsidiaries which provide defined pension benefits in excess of limits imposed by federal tax law. The accrued benefit cost for the SERP Agreements totaled $8.0 million and $7.6 million for 2015 and 2014, respectively. The expense for the Corporation was $1.1 million for 2015, $1.5 million for 2014 and $28,000 for 2013.

19. Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax assets and liabilities are as follows:

December 31 (In thousands)	2015			2014
Deferred tax assets:
Allowance for loan losses	$	19,773		$	19,023
Accumulated other comprehensive loss – Pension Plan	8,266			8,005
Accumulated other comprehensive loss – Unrealized losses on securities	157			—
Deferred compensation	3,908			3,820
OREO valuation adjustments	2,418			3,984
Net deferred loan fees	1,204			933
Deferred contract bonus	1,031			—
Other	4,171			4,338
Total deferred tax assets	$	40,928		$	40,103
Deferred tax liabilities:
Accumulated other comprehensive income – Unrealized gains on securities	—			677
Deferred investment income	10,199			10,199
Pension plan	26,205			25,949
Mortgage servicing rights	3,153			3,015
Partnership adjustments	560			865
Other	872			804
Total deferred tax liabilities	$	40,989		$	41,509
Net deferred tax asset (liability)	$	(61	)	$	(1,406	)

Park performs an analysis to determine if a valuation allowance against deferred tax assets is required in accordance with GAAP. Management has determined that it is not required to establish a valuation allowance against the December 31, 2015 or 2014 deferred tax assets in accordance with GAAP since it is more likely than not that the deferred tax assets will be fully utilized in future periods.

The components of the provision for federal income taxes are shown below:

December 31, (In thousands)	2015			2014		2013
Currently payable
Federal	$	32,817		$	33,931	$	34,435
Deferred
Federal	(250		)	2,528		(1,932		)
Total	$	32,567		$	36,459	$	32,503

F- 44

Notes to Consolidated Financial Statements

The following is a reconciliation of income tax expense to the amount computed at the statutory rate of 35% for the years ended December 31, 2015, 2014 and 2013.

	2015		2014		2013
Statutory federal corporate tax rate	35.0	%	35.0	%	35.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest	(0.5	)%	(0.5	)%	(0.8	)%
Bank owned life insurance	(1.8	)%	(1.4	)%	(1.6	)%
Investments in qualified affordable housing projects, net of tax benefits	(1.9	)%	(1.6	)%	(1.7	)%
Other tax credits	(0.9	)%	—	%	—	%
KSOP dividend deduction	(1.0	)%	(1.0	)%	(1.1	)%
Other	(0.2	)%	(0.2	)%	(0.1	)%
Effective tax rate	28.7	%	30.3	%	29.7	%

Park and its subsidiaries do not pay state income tax to the state of Ohio, but pay a franchise tax based on equity. The franchise tax expense is included in the state tax expense and is shown in “State taxes” on Park’s Consolidated Statements of Income.

Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.

(In thousands)	2015			2014			2013
January 1 Balance	$	532		$	518		$	517
Additions based on tax positions related to the current year	80			76			74
Additions for tax positions of prior years	16			14			4
Reductions for tax positions of prior years	—			—			—
Reductions due to statute of limitations	(70		)	(76		)	(77		)
December 31 Balance	$	558		$	532		$	518

The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in the future periods at December 31, 2015, 2014 and 2013 was $432,000, $413,000 and $403,000, respectively. Park does not expect the total amount of unrecognized tax benefits to significantly increase or decrease during the next year.

The (income)/expense related to interest and penalties recorded on unrecognized tax benefits in the Consolidated Statements of Income for the years ended December 31, 2015 and 2013 was $2,000 and $(500), respectively. There was no expense related to interest and penalties for the year ending 2014. The amount accrued for interest and penalties at December 31, 2015, 2014 and 2013 was $69,000, $67,000 and $67,000, respectively.

Park and its subsidiaries are subject to U.S. federal income tax and income tax in various state jurisdictions. The Corporation is subject to routine audits of tax returns by the Internal Revenue Service and states in which we conduct business. No material adjustments have been made on closed federal and state tax audits. All tax years ending prior to December 31, 2012 are closed to examination by the federal and state taxing authorities.

F- 45

Notes to Consolidated Financial Statements

20. Other Comprehensive Income (Loss)

Other comprehensive income (loss) components, net of tax, are shown in the following table for the years ended December 31, 2015, 2014 and 2013.

Year ended December 31, (in thousands)		Changes in Pension Plan assets and benefit obligations			Unrealized gains and losses on available-for-sale securities			Total
Beginning balance at December 31, 2014		$	(14,865	)	$	1,257		$	(13,608	)
	Other comprehensive (loss) before reclassifications	(910		)	(1,549		)	(2,459		)
	Amounts reclassified from accumulated other comprehensive loss	424			—			424
Net current period other comprehensive loss		(486		)	(1,549		)	(2,035		)
Ending balance at December 31, 2015		$	(15,351	)	$	(292	)	$	(15,643	)
Beginning balance at December 31, 2013		$	(5,598	)	$	(29,821	)	$	(35,419	)
	Other comprehensive (loss) gain before reclassifications	(9,279		)	30,325			21,046
	Amounts reclassified from accumulated other comprehensive loss	12			753			765
Net current period other comprehensive (loss) income		(9,267		)	31,078			21,811
Ending balance at December 31, 2014		$	(14,865	)	$	1,257		$	(13,608	)
Beginning balance at December 31, 2012		$	(27,134	)	$	9,616		$	(17,518	)
	Other comprehensive gain (loss) before reclassifications	19,766			(39,448		)	(19,682		)
	Amounts reclassified from accumulated other comprehensive loss	1,770			11			1,781
Net current period other comprehensive income (loss)		21,536			(39,437		)	(17,901		)
Ending balance at December 31, 2013		$	(5,598	)	$	(29,821	)	$	(35,419	)

F- 46

Notes to Consolidated Financial Statements

The following table provides information concerning amounts reclassified out of accumulated other comprehensive loss for the years ended December 31, 2015, 2014 and 2013:

		Amount Reclassified from Accumulated Other Comprehensive Income (Loss)						Affected Line Item in the Statement of Income
(In thousands)		2015		2014		2013
Amortization of defined benefit pension items
	Amortization of prior service cost	$	15	$	19	$	20	Employee benefits
	Amortization of net loss	637		—		2,703		Employee benefits
Total income before income taxes		652		19		2,723		Total income before income taxes
	Federal income taxes	228		7		953		Federal income taxes
	Net of tax	$	424	$	12	$	1,770	Net of tax
Unrealized gains & losses on available for sale securities
	Loss on sale of investment securities	$	—	$	1,158	$	—	Gain (loss) on sale of investment securities
	Other than temporary impairment	—		—		17		Miscellaneous expense
Total income before income taxes		—		1,158		17		Total income before income taxes
	Federal income taxes	—		405		6		Federal income taxes
	Net of tax	$	—	$	753	$	11	Net of tax

21. Earnings Per Common Share

GAAP requires the reporting of basic and diluted earnings per common share. Basic earnings per common share excludes any dilutive effects of restricted stock units.

The following table sets forth the computation of basic and diluted earnings per common share:

Year ended December 31 (In thousands, except share data)	2015		2014		2013
Numerator:
Net income available to common shareholders	$	81,012	$	83,957	$	76,869
Denominator:
Basic earnings per common share:
Weighted-average common shares outstanding	15,364,281		15,394,971		15,412,365
Effect of dilutive securities – performance based restricted stock units	40,459		18,861		—
Diluted earnings per common share:
Adjusted weighted-average shares and assumed vesting	15,404,740		15,413,832		15,412,365
Earnings per common share:
Basic earnings per common share	$	5.27	$	5.45	$	4.99
Diluted earnings per common share	$	5.26	$	5.45	$	4.99

Park awarded 23,025 and 21,975 PBRSUs to certain employees during the years ended December 31, 2015 and 2014, respectively. The PBRSUs vest based on service and performance conditions. The dilutive effect of the PBRSUs was the addition of 40,459 and 18,861 common shares for the years ended December 31, 2015 and 2014, respectively.

F- 47

Notes to Consolidated Financial Statements

During the years ended December 31, 2015 and 2014, Park repurchased 71,700 and 29,700 common shares, respectively, to fund the PBRSUs and common shares awarded to directors of Park and to directors of Park's subsidiary PNB (and its divisions).

22. Dividend Restrictions

Bank regulators limit the amount of dividends a subsidiary bank can declare in any calendar year without obtaining prior approval. At December 31, 2015, approximately $107.5 million of the total shareholders’ equity of PNB was available for the payment of dividends to the Corporation, without approval by the applicable regulatory authorities.

23. Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk

The Corporation is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include loan commitments and standby letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements.

The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Since many of the loan commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers.

The total amounts of off-balance sheet financial instruments with credit risk were as follows:

December 31 (In thousands)	2015		2014
Loan commitments	$	888,411	$	869,793
Standby letters of credit	12,326		12,473

The loan commitments are generally for variable rates of interest.

The Corporation grants retail, commercial and commercial real estate loans to customers primarily located in Ohio. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.

Although the Corporation has a diversified loan portfolio, a substantial portion of the borrowers’ ability to honor their contracts is dependent upon the economic conditions in each borrower’s geographic location and industry.

24. Loan Servicing

Park serviced sold mortgage loans of $1,276 million at December 31, 2015, compared to $1,265 million at December 31, 2014 and $1,326 million at December 31, 2013. At December 31, 2015, $5.4 million of the sold mortgage loans were sold with recourse compared to $7.0 million at December 31, 2014. Management closely monitors the delinquency rates on the mortgage loans sold with recourse. As of December 31, 2015 and 2014, management had established a reserve of $454,000 and $379,000, respectively, to account for future loan repurchases.

The amortization of mortgage loan servicing rights is included within “Other service income”. Generally, mortgage servicing rights are capitalized and amortized on an individual sold loan basis. When a sold mortgage loan is paid off, the related mortgage servicing rights are fully amortized.

F- 48

Notes to Consolidated Financial Statements

Activity for mortgage servicing rights and the related valuation allowance follows:

December 31 (In thousands)	2015			2014			2013
Mortgage servicing rights:
Carrying amount, net, beginning of year	$	8,613		$	9,013		$	7,763
Additions	1,748			1,026			2,436
Amortization	(1,637		)	(1,631		)	(2,479		)
Change in valuation allowance	284			205			1,293
Carrying amount, net, end of year	$	9,008		$	8,613		$	9,013
Valuation allowance:
Beginning of year	$	826		$	1,031		$	2,324
Change in valuation allowance	(284		)	(205		)	(1,293		)
End of year	$	542		$	826		$	1,031

The fair value of mortgage servicing rights was $9.6 million and $9.1 million at December 31, 2015 and 2014, respectively. The fair value of mortgage servicing rights at December 31, 2015 was established using a discount rate of 10% and constant prepayment speeds ranging from 6.3% to 22.0%. The fair value of mortgage servicing rights at December 31, 2014 was established using a discount rate of 10% and constant prepayment speeds ranging from 5.7% to 22.3%.

Servicing fees included in other service income were $3.4 million, $3.5 million and $3.6 million for the years ended December 31, 2015, 2014 and 2013, respectively.

25. Fair Value

 The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that Park uses to measure fair value are as follows:

• Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that Park has the ability to access as of the measurement date.

• Level 2: Level 1 inputs for assets or liabilities that are not actively traded. Also consists of an observable market price for a similar asset or liability. This includes the use of “matrix pricing” to value debt securities absent the exclusive use of quoted prices.

• Level 3: Consists of unobservable inputs that are used to measure fair value when observable market inputs are not available. This could include the use of internally developed models, financial forecasting and similar inputs.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability between market participants at the balance sheet date. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and Park must use other valuation methods to develop a fair value. The fair value of impaired loans is typically based on the fair value of the underlying collateral, which is estimated through third-party appraisals or internal estimates of collateral values in accordance with Park's valuation requirements per its commercial and real estate loan policies.

F- 49

Notes to Consolidated Financial Statements

Assets and Liabilities Measured at Fair Value on a Recurring Basis:

The following table presents assets and liabilities measured at fair value on a recurring basis:

Fair Value Measurements at December 31, 2015 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2015
Assets
Investment securities:
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	—	$	522,063	$	—	$	522,063
U.S. Government sponsored entities’ asset-backed securities	—		911,493		—		911,493
Equity securities	1,941		—		769		2,710
Mortgage loans held for sale	—		7,306		—		7,306
Mortgage IRLCs	—		165		—		165
Liabilities
Fair value swap	$	—	$	—	$	226	$	226

Fair Value Measurements at December 31, 2014 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2014
Assets
Investment securities:
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	—	$	538,064	$	—	$	538,064
U.S. Government sponsored entities’ asset-backed securities	—		761,153		—		761,153
Equity securities	1,922		—		776		2,698
Mortgage loans held for sale	—		5,264		—		5,264
Mortgage IRLCs	—		70		—		70
Liabilities
Fair value swap	$	—	$	—	$	226	$	226

There were no transfers between Level 1 and Level 2 during 2015 or 2014. Management’s policy is to transfer assets or liabilities from one level to another when the methodology to obtain the fair value changes such that there are more or fewer unobservable inputs as of the end of the reporting period.

The following methods and assumptions were used by the Company in determining fair value of the financial assets and liabilities discussed above:

Investment securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows.

Fair value swap: The fair value of the swap agreement entered into with the purchaser of the Visa Class B shares represents an internally developed estimate of the exposure based upon probability-weighted potential Visa litigation losses.

F- 50

Notes to Consolidated Financial Statements

Mortgage Interest Rate Lock Commitments (IRLCs): IRLCs are based on current secondary market pricing and are classified as Level 2.

Mortgage loans held for sale: Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale are estimated using security prices for similar product types and, therefore, are classified in Level 2.

The table below is a reconciliation of the beginning and ending balances of the Level 3 inputs for the years ended December 31, 2015 and 2014, for financial instruments measured on a recurring basis and classified as Level 3:

Level 3 Fair Value Measurements
(In thousands)	Equity Securities			Fair Value Swap
Balance at January 1, 2015	$	776		$	(226	)
Total Gains (Losses)
Included in earnings - realized	—			—
Included in earnings - unrealized	—			—
Included in other comprehensive loss	(7		)	—
Purchases, sales, issuances and settlements, other, net	—			—
Re-evaluation of fair value swap	—			—
Balance at December 31, 2015	$	769		$	(226	)
Balance at January 1, 2014	$	759		$	(135	)
Total Gains (Losses)
Included in earnings - realized	—			—
Included in earnings - unrealized	—			—
Included in other comprehensive income	17			—
Purchases, sales, issuances and settlements, other, net	—			—
Re-evaluation of fair value swap	—			(91		)
Balance at December 31, 2014	$	776		$	(226	)

Assets and liabilities measured at fair value on a nonrecurring basis:

The following methods and assumptions were used by the Company in determining the fair value of assets and liabilities measured at fair value on a nonrecurring basis described below:

Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value have been partially charged-off or receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is generally based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value. Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Additionally, updated valuations are obtained annually for all impaired loans in accordance with Company policy.

Other Real Estate Owned (OREO): Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value.

F- 51

Notes to Consolidated Financial Statements

Appraisals for both collateral dependent impaired loans and OREO are performed by licensed appraisers. Appraisals are generally obtained to support the fair value of collateral. In general, there are three types of appraisals, real estate appraisals, income approach appraisals and lot development loan appraisals, received by the Company. These are discussed below:

• Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. Appraisers may make adjustments to the sales prices of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management generally applies a 15% discount to real estate appraised values which management expects will cover all disposition costs (including selling costs). This 15% is based on historical discounts to appraised values on sold OREO properties.

• Income approach appraisals typically incorporate the annual net operating income of the business divided by an appropriate capitalization rate, as determined by the appraiser. Management generally applies a 15% discount to income approach appraised values which management expects will cover all disposition costs (including selling costs).

• Lot development loan appraisals are typically performed using a discounted cash flow analysis. Appraisers determine an anticipated absorption period and a discount rate that takes into account an investor’s required rate of return based on recent comparable sales. Management generally applies a 6% discount to lot development appraised values, which is an additional discount above the net present value calculation included in the appraisal, to account for selling costs.

MSRs: MSRs are carried at the lower of cost or fair value. MSRs do not trade in active, open markets with readily observable prices. For example, sales of MSRs do occur, but precise terms and conditions typically are not readily available. As such, management, with the assistance of a third-party specialist, determines fair value based on the discounted value of the future cash flows estimated to be received. Significant inputs include the discount rate and assumed prepayment speeds utilized. The calculated fair value is then compared to market values where possible to ascertain the reasonableness of the valuation in relation to current market expectations for similar products. Accordingly, MSRs are classified as Level 2.

The following tables present assets and liabilities measured at fair value on a nonrecurring basis. Collateral dependent impaired loans are carried at fair value if they have been charged down to fair value or if a specific valuation allowance has been established. A new cost basis is established at the time a property is initially recorded in OREO. OREO properties are carried at fair value if a devaluation has been taken to the property's value subsequent to the initial measurement.

The following table presents assets and liabilities measured at fair value on a nonrecurring basis:

Fair Value Measurements at December 31, 2015 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2015
Impaired Loans:
Commercial real estate	$	—	$	—	$	3,698	$	3,698
Construction real estate:
SEPH commercial land and development	—		—		2,044		2,044
Remaining commercial	—		—		1,872		1,872
Residential real estate	—		—		1,882		1,882
Total impaired loans	$	—	$	—	$	9,496	$	9,496
Mortgage Servicing Rights	$	—	$	1,867	$	—	$	1,867
Other Real Estate Owned:
Commercial real estate	—		—		2,796		2,796
Construction real estate	—		—		3,387		3,387
Residential real estate	—		—		2,332		2,332
Total Other Real Estate Owned	$	—	$	—	$	8,515	$	8,515

F- 52

Notes to Consolidated Financial Statements

Fair Value Measurements at December 31, 2014 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2014
Impaired Loans:
Commercial real estate	$	—	$	—	$	8,481	$	8,481
Construction real estate:
SEPH commercial land and development	—		—		2,078		2,078
Remaining commercial	—		—		3,483		3,483
Residential real estate	—		—		2,921		2,921
Total impaired loans	$	—	$	—	$	16,963	$	16,963
Mortgage Servicing Rights	$	—	$	2,928	$	—	$	2,928
Other Real Estate Owned:
Commercial real estate	—		—		1,470		1,470
Construction real estate	—		—		6,473		6,473
Residential real estate	—		—		2,369		2,369
Total Other Real Estate Owned	$	—	$	—	$	10,312	$	10,312

The table below provides additional detail on those impaired loans which are recorded at fair value as well as the remaining impaired loan portfolio not included above. The remaining impaired loans consist of loans which are not collateral dependent as well as loans carried at cost as the fair value of the underlying collateral or the present value of expected future cash flows on each of the loans exceeded the book value for each respective credit.

	December 31, 2015
(In thousands)	Recorded Investment		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Impaired loans recorded at fair value	$	11,783	$	10,512	$	2,287	$	9,496
Remaining impaired loans	68,881		18,193		1,904		66,977
Total impaired loans	$	80,664	$	28,705	$	4,191	$	76,473

	December 31, 2014
(In thousands)	Recorded Investment		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Impaired loans recorded at fair value	$	19,643	$	19,731	$	2,680	$	16,963
Remaining impaired loans	54,069		12,749		980		53,089
Total impaired loans	$	73,712	$	32,480	$	3,660	$	70,052

The expense of credit adjustments related to impaired loans carried at fair value for the years ended December 31, 2015, 2014 and 2013 was $2.1 million, $3.0 million, and $8.1 million, respectively.

MSRs totaled $9.0 million at December 31, 2015. Of this $9.0 million MSR carrying balance, $1.9 million was recorded at fair value and included a valuation allowance of $0.5 million. The remaining $7.1 million was recorded at cost, as the fair value exceeded cost at December 31, 2015. At December 31, 2014, MSRs totaled $8.6 million. Of this $8.6 million MSR carrying balance, $2.9 million was recorded at fair value and included a valuation allowance of $0.8 million. The remaining $5.7 million was recorded at cost, as the fair value exceeded cost at December 31, 2014. Income related to MSRs carried at fair value for the years ended December 31, 2015, 2014 and 2013 was $0.3 million, $0.2 million and $1.3 million, respectively.

Total OREO held by Park at December 31, 2015 and 2014 was $18.7 million and $22.6 million, respectively. Approximately 46% of OREO held by Park at December 31, 2015 and 2014 was carried at fair value due to fair value adjustments made

F- 53

Notes to Consolidated Financial Statements

subsequent to the initial OREO measurement. At December 31, 2015 and 2014, OREO held at fair value, less estimated selling costs, amounted to $8.5 million and $10.3 million, respectively. The net expense related to OREO fair value adjustments was $1.6 million, $2.4 million and $3.2 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The following tables present qualitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2015 and December 31, 2014:

December 31, 2015
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial real estate	$	3,698	Sales comparison approach	Adj to comparables	0.0% - 45.9% (20.3%)
			Income approach	Capitalization rate	7.0% - 13.3% (9.5%)
			Cost approach	Accumulated depreciation	50.0% (50.0%)
Construction real estate:
SEPH commercial land and development	$	2,044	Sales comparison approach	Adj to comparables	5.0% - 40.0% (22.1%)
			Bulk sale approach	Discount rate	10.7% (10.7%)
Remaining commercial	$	1,872	Sales comparison approach	Adj to comparables	0.0% - 25.3% (1.0%)
			Bulk sale approach	Discount rate	10.0% - 10.7% (10.0%)
Residential real estate	$	1,882	Sales comparison approach	Adj to comparables	0.0% - 96.7% (12.5%)
			Income approach	Capitalization rate	3.8% - 10.1% (9.1%)
			Cost approach	Accumulated depreciation	33.3% - 50.0% (43.4%)
Other real estate owned:
Commercial real estate	$	2,796	Sales comparison approach	Adj to comparables	2.0% - 71.0% (26.9%)
			Income approach	Capitalization rate	9.5% (9.5%)
Construction real estate	$	3,387	Sales comparison approach	Adj to comparables	0.0% - 85.0% (24.3%)
			Bulk sale approach	Discount rate	15.0% (15.0%)
Residential real estate	$	2,332	Sales comparison approach	Adj to comparables	0.1% - 61.8% (23.0%)

F- 54

Notes to Consolidated Financial Statements

December 31, 2014
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial real estate	$	8,481	Sales comparison approach	Adj to comparables	0.0% - 84.0% (38.8%)
			Income approach	Capitalization rate	8.0% - 9.5% (9.4%)
			Cost approach	Accumulated depreciation	23.0% (23.0%)
Construction real estate:
SEPH commercial land and development	$	2,078	Sales comparison approach	Adj to comparables	5.0% - 35.0% (17.5%)
			Bulk sale approach	Discount rate	10.8% (10.8%)
Remaining commercial	$	3,483	Sales comparison approach	Adj to comparables	0.2% - 76.0% (45.4%)
			Bulk sale approach	Discount rate	10.0% - 22.0% (16.5%)
Residential real estate	$	2,921	Sales comparison approach	Adj to comparables	0.0% - 120.6% (11.1%)
			Income approach	Capitalization rate	7.9% - 10.0% (8.0%)
Other real estate owned:
Commercial real estate	$	1,470	Sales comparison approach	Adj to comparables	0.0% - 87.0% (30.5%)
			Income approach	Capitalization rate	8.4% - 10.0% (9.4%)
			Cost approach	Accumulated depreciation	60.0% - 95.0% (77.5%)
Construction real estate	$	6,473	Sales comparison approach	Adj to comparables	0.0% - 82.9% (27.1%)
			Bulk sale approach	Discount rate	15.0% (15.0%)
Residential real estate	$	2,369	Sales comparison approach	Adj to comparables	0.0% - 38.3% (10.1%)
			Income approach	Capitalization rate	6.8% - 7.8% (7.6%)

F- 55

Notes to Consolidated Financial Statements

The following methods and assumptions were used by the Corporation in estimating its fair value disclosures for assets and liabilities not discussed above:

Cash and cash equivalents:The carrying amounts reported in the Consolidated BalanceSheets for cash and short-term instruments approximate those assets’ fair values.

FHLB stock and FRB stock: These assets are carried at their respective redemption values as it is not practical to calculate their fair values.

Loans receivable:For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for certain mortgage loans (e.g., one-to-four family residential) are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted for differences in loan characteristics. The fair values for other loans are estimated using discounted cash flow analyses, based upon interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The methods utilized to estimate fair value do not necessarily represent an exit price.

Off-balance sheet instruments:Fair values for the Corporation’s loan commitments and standby letters of credit are based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The carrying amount and fair value are not material.

 Deposit liabilities:The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts for variable-rate, fixed-term certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities of time deposits.

Short-term borrowings:The carrying amounts of federal funds purchased, borrowings under repurchase agreements and other short-term borrowings approximate their fair values.

Long-term debt:Fair values for long-term debt are estimated using a discounted cash flow calculation that applies interest rates currently being offered on long-term debt to a schedule of monthly maturities.

Subordinated notes:Fair values for subordinated notes are estimated using a discounted cash flow calculation that applies interest rate spreads currently being offered on similar debt structures to a schedule of monthly maturities.

F- 56

Notes to Consolidated Financial Statements

The fair value of financial instruments at December 31, 2015 and December 31, 2014, was as follows:

	December 31, 2015
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	149,459	$	149,459	$	—	$	—	$	149,459
Investment securities	1,585,568		1,941		1,584,984		769		1,587,694
Accrued interest receivable - securities	4,436		—		4,436		—		4,436
Accrued interest receivable - loans	14,239		—		—		14,239		14,239
Mortgage loans held for sale	7,306		—		7,306		—		7,306
Impaired loans carried at fair value	9,496		—		—		9,496		9,496
Mortgage IRLCs	165		—		165		—		165
Other loans	4,994,624		—		—		4,997,318		4,997,318
Loans receivable, net	$	5,011,591	$	—	$	7,471	$	5,006,814	$	5,014,285
Financial liabilities:
Non-interest bearing checking accounts	$	1,404,032	$	1,404,032	$	—	$	—	$	1,404,032
Interest bearing transaction accounts	1,107,200		1,107,200		—		—		1,107,200
Savings accounts	1,544,708		1,544,708		—		—		1,544,708
Time deposits	1,290,412		—		1,295,329		—		1,295,329
Other	1,290		1,290		—		—		1,290
Total deposits	$	5,347,642	$	4,057,230	$	1,295,329	$	—	$	5,352,559
Short-term borrowings	$	394,242	$	—	$	394,242	$	—	$	394,242
Long-term debt	738,105		—		771,420		—		771,420
Subordinated notes	45,000		—		41,596		—		41,596
Accrued interest payable – deposits	987		66		921		—		987
Accrued interest payable – debt/borrowings	1,351		4		1,347		—		1,351
Derivative financial instruments:
Fair value swap	$	226	$	—	$	—	$	226	$	226

F- 57

Notes to Consolidated Financial Statements

	December 31, 2014
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	237,699	$	237,699	$	—	$	—	$	237,699
Investment securities	1,442,477		1,922		1,442,708		775		1,445,405
Accrued interest receivable - securities	4,048		—		4,048		—		4,048
Accrued interest receivable - loans	13,629		—		—		13,629		13,629
Mortgage loans held for sale	5,264		—		5,264		—		5,264
Impaired loans carried at fair value	16,963		—		—		16,963		16,963
Mortgage IRLCs	70		—		70		—		70
Other loans	4,753,033		—		—		4,757,461		4,757,461
Loans receivable, net	$	4,775,330	$	—	$	5,334	$	4,774,424	$	4,779,758
Financial liabilities:
Non-interest bearing checking accounts	$	1,269,296	$	1,269,296	$	—	—		$	1,269,296
Interest bearing transaction accounts	1,122,079		1,122,079		—		—		1,122,079
Savings accounts	1,325,445		1,325,445		—		—		1,325,445
Time deposits	1,409,911		—		1,422,885		—		1,422,885
Other	1,269		1,269		—		—		1,269
Total deposits	$	5,128,000	$	3,718,089	$	1,422,885	$	—	$	5,140,974
Short-term borrowings	$	276,980	$	—	$	276,980	$	—	$	276,980
Long-term debt	786,602		—		827,500		—		827,500
Subordinated notes	45,000		—		42,995		—		42,995
Accrued interest payable – deposits	1,125		14		1,111		—		1,125
Accrued interest payable – debt/borrowings	1,426		3		1,423		—		1,426
Derivative financial instruments:
Fair value swap	$	226	$	—	$	—	$	226	$	226

26. Capital Ratios

Financial institution regulators have established guidelines for minimum capital ratios for banks, thrifts and bank holding companies. During the first quarter of 2015, Park adopted the new Basel III regulatory capital framework as approved by the federal banking agencies. The adoption of this new framework modified the calculation of the various capital ratios, added a new ratio, common equity tier 1, and revised the adequately and well capitalized thresholds. Additionally, under the new rule, in order to avoid limitations on capital distributions, including dividend payments, Park must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The amounts shown below as the adequately capitalized ratio plus capital conservation buffer includes the fully phased-in 2.50% buffer.

F- 58

Notes to Consolidated Financial Statements

PNB met each of the well capitalized ratio guidelines at December 31, 2015. The following table indicates the capital ratios for PNB and Park at December 31, 2015 and 2014.

	As of December 31, 2015
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
The Park National Bank	7.06	%	9.83	%	9.83	%	11.37	%
Park National Corporation	9.22	%	12.82	%	12.54	%	14.49	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well capitalized ratio (PNB only)	5.00	%	8.00	%	6.50	%	10.00	%

	As of December 31, 2014
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1	Total Risk-Based
The Park National Bank	6.96	%	10.13	%	N/A	11.74	%
Park National Corporation	9.25	%	13.39	%	N/A	15.14	%
Adequately capitalized ratio	4.00	%	4.00	%	N/A	8.00	%
Well capitalized ratio (PNB only)	5.00	%	6.00	%	N/A	10.00	%

Failure to meet the minimum requirements above could cause the FRB to take action. PNB is also subject to the capital requirements of its primary regulator, the OCC. As of December 31, 2015 and 2014, Park and PNB were well-capitalized and met all capital requirements to which each was then subject. There are no conditions or events since PNB's most recent regulatory report filings, that management believes have changed the risk categories for PNB.

F- 59

Notes to Consolidated Financial Statements

The following table reflects various measures of capital for Park and PNB:

					To Be Adequately Capitalized				To Be Well Capitalized
(In thousands)	Actual Amount		Ratio		Amount		Ratio		Amount		Ratio
At December 31, 2015
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	588,467	11.37	%	$	414,079	8.00	%	$	517,599	10.00	%
Park	758,988		14.49	%	419,080		8.00	%	N/A		N/A
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	508,763	9.83	%	$	310,560	6.00	%	$	414,079	8.00	%
Park	671,664		12.82	%	314,310		6.00	%	N/A		N/A
Leverage Ratio (to average total assets)
PNB	$	508,763	7.06	%	$	288,147	4.00	%	$	360,183	5.00	%
Park	671,664		9.22	%	291,449		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	$	508,763	9.83	%	$	232,920	4.50	%	$	336,439	6.50	%
Park	656,664		12.54	%	235,732		4.50	%	N/A		N/A
At December 31, 2014
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	563,188	11.74	%	$	383,634	8.00	%	$	479,542	10.00	%
Park	739,517		15.14	%	390,822		8.00	%	N/A		N/A
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	485,943	10.13	%	$	191,817	4.00	%	$	287,725	6.00	%
Park	654,339		13.39	%	195,411		4.00	%	N/A		N/A
Leverage Ratio (to average total assets)
PNB	$	485,943	6.96	%	$	279,210	4.00	%	$	349,013	5.00	%
Park	654,339		9.25	%	282,992		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	N/A		N/A		N/A		N/A		N/A		N/A
Park	N/A		N/A		N/A		N/A		N/A		N/A

27. Segment Information

The Corporation is a financial holding company headquartered in Newark, Ohio. The operating segments for the Corporation are its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio), SEPH and GFSC.

GAAP requires management to disclose information about the different types of business activities in which a company engages and also information on the different economic environments in which a company operates, so that the users of the financial statements can better understand a company’s performance, better understand the potential for future cash flows, and make more informed judgments about the company as a whole. Park’s current operating segments are in line with GAAP as: (i) discrete financial information is available for each operating segment and (ii) the segments are aligned with internal reporting to Park’s Chief Executive Officer and President, who is the chief operating decision maker.  

F- 60

Notes to Consolidated Financial Statements

Operating results for the year ended December 31, 2015 (In thousands)
	PNB		GFSC		SEPH			All Other			Total
Net interest income (loss)	$	220,879	$	6,588	$	(74	)	$	239		$	227,632
Provision for (recovery of) loan losses	7,665		1,415		(4,090		)	—			4,990
Other income	75,188		2		1,848			513			77,551
Other expense	167,476		2,984		6,182			9,972			186,614
Income (loss) before taxes	120,926		2,191		(318		)	(9,220		)	113,579
Income taxes (benefit)	36,581		768		(111		)	(4,671		)	32,567
Net income (loss)	$	84,345	$	1,423	$	(207	)	$	(4,549	)	$	81,012
Balances at December 31, 2015
Assets	$	7,229,764	$	35,793	$	33,541		$	12,256		$	7,311,354
Loans	5,029,072		35,469		15,153			(11,609		)	5,068,085
Deposits	5,447,293		4,627		—			(104,278		)	5,347,642

Operating results for the year ended December 31, 2014 (In thousands)
	PNB		GFSC			SEPH			All Other			Total
Net interest income (loss)	$	218,641	$	7,457		$	958		$	(2,012	)	$	225,044
Provision for (recovery of) loan losses	3,517		1,544			(12,394		)	—			(7,333		)
Other income (loss)	69,384		(1		)	5,991			175			75,549
Other expense	163,641		4,103			11,766			8,000			187,510
Income (loss) before taxes	120,867		1,809			7,577			(9,837		)	120,416
Income taxes (benefit)	37,960		634			2,652			(4,787		)	36,459
Net income (loss)	$	82,907	$	1,175		$	4,925		$	(5,050	)	$	83,957
Balances at December 31, 2014
Assets	$	6,910,386	$	40,308		$	43,762		$	6,743		$	7,001,199
Loans	4,781,761		40,645			23,956			(16,680		)	4,829,682
Deposits	5,222,766		5,883			—			(100,649		)	5,128,000

Operating results for the year ended December 31, 2013 (In thousands)
	PNB		GFSC		SEPH			All Other			Total
Net interest income (loss)	$	210,781	$	8,741	$	(1,325	)	$	2,828		$	221,025
Provision for (recovery of) loan losses	14,039		1,175		(11,799		)	—			3,415
Other income	70,841		11		1,956			469			73,277
Other expense	158,651		3,133		12,211			7,520			181,515
Income (loss) before taxes	108,932		4,444		219			(4,223		)	109,372
Income taxes (benefit)	33,696		1,556		77			(2,826		)	32,503
Net income (loss)	$	75,236	$	2,888	$	142		$	(1,397	)	$	76,869
Balances at December 31, 2013
Assets	$	6,522,174	$	47,115	$	72,781		$	(5,647	)	$	6,636,423
Loans	4,559,406		47,228		38,014			(24,143		)	4,620,505
Deposits	4,896,405		7,159		—			(113,570		)	4,789,994

F- 61

Notes to Consolidated Financial Statements

The following is a reconciliation of financial information for the reportable segments to the Corporation’s consolidated totals:

	2015
(In thousands)	Net Interest Income			Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	227,393		$	7,347	$	169,295	$	37,238		$	7,299,098		$	5,451,920
Elimination of intersegment items	2,561			—		—		—			(13,557		)	(104,278		)
Parent Co. totals - not eliminated	(2,322		)	—		9,972		(4,671		)	25,813			—
Totals	$	227,632		$	7,347	$	179,267	$	32,567		$	7,311,354		$	5,347,642

	2014
(In thousands)	Net Interest Income			Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	227,056		$	7,243	$	172,267	$	41,246		$	6,994,456		$	5,228,649
Elimination of intersegment items	3,708			—		—		—			(18,556		)	(100,649		)
Parent Co. totals - not eliminated	(5,720		)	—		8,000		(4,787		)	25,299			—
Totals	$	225,044		$	7,243	$	180,267	$	36,459		$	7,001,199		$	5,128,000

	2013
(In thousands)	Net Interest Income			Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	218,197		$	7,315	$	166,680	$	35,329		$	6,642,070		$	4,903,564
Elimination of intersegment items	8,659			—		—		—			(30,369		)	(113,570		)
Parent Co. totals - not eliminated	(5,831		)	—		7,520		(2,826		)	24,722			—
Totals	$	221,025		$	7,315	$	174,200	$	32,503		$	6,636,423		$	4,789,994

28. Parent Company Statements

The Parent Company statements should be read in conjunction with the consolidated financial statements and the information set forth below. Investments in subsidiaries are accounted for using the equity method of accounting. The effective tax rate for the Parent Company is substantially less than the statutory rate due principally to tax-exempt dividends from subsidiaries.

Cash represents non-interest bearing deposits with PNB. Net cash provided by operating activities reflects cash payments (received from subsidiaries) for income taxes of $4.13 million, $5.81 million and $2.54 million in 2015, 2014 and 2013, respectively.

At December 31, 2015 and 2014, shareholders’ equity reflected in the Parent Company balance sheet includes $199.4 million and $196.5 million, respectively, of undistributed earnings of the Corporation’s subsidiaries which are restricted from transfer as dividends to the Corporation.

F- 62

Notes to Consolidated Financial Statements

Balance Sheets
December 31, 2015 and 2014
(In thousands)	2015		2014
Assets:
Cash	$	102,416	$	98,671
Investment in subsidiaries	613,383		599,855
Debentures receivable from PNB	25,000		25,000
Other investments	2,341		2,344
Other assets	23,443		23,260
Total assets	$	766,583	$	749,130
Liabilities:
Subordinated notes	45,000		45,000
Other liabilities	8,228		7,589
Total liabilities	53,228		52,589
Total shareholders’ equity	713,355		696,541
Total liabilities and shareholders’ equity	$	766,583	$	749,130

Statements of Income
for the years ended December 31, 2015, 2014 and 2013
(In thousands)	2015			2014		2013
Income:
Dividends from subsidiaries	$	60,000		$	60,000	$	15,000
Interest and dividends	2,561			3,708		8,659
Other	560			262		531
Total income	63,121			63,970		24,190
Expense:
Other, net	12,341			13,807		13,413
Total expense	12,341			13,807		13,413
Income before federal taxes and equity in undistributed income of subsidiaries	50,780			50,163		10,777
Federal income tax benefit	4,671			4,787		2,826
Income before equity in undistributed income of subsidiaries	55,451			54,950		13,603
Equity in undistributed income of subsidiaries	25,561			29,007		63,266
Net income	$	81,012		$	83,957	$	76,869
Other comprehensive (loss) income (1)	(2,035		)	21,811		(17,901		)
Comprehensive income	78,977			105,768		58,968

(1) See Consolidated Statements of Comprehensive Income for other comprehensive (loss) income detail

F- 63

Notes to Consolidated Financial Statements

Statements of Cash Flows
for the years ended December 31, 2015, 2014 and 2013
(In thousands)	2015			2014			2013
Operating activities:
Net income	$	81,012		$	83,957		$	76,869
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income of subsidiaries	(25,561		)	(29,007		)	(63,266		)
Compensation expense for issuance of treasury stock to directors	963			801			850
Share-based compensation expense	865			458			—
Decrease in other assets	(182		)	(1,292		)	(2,215		)
Increase (decrease) in other liabilities	485			298			(2,187		)
Net cash provided by operating activities	57,582			55,215			10,051
Investing activities:
Capital contribution in subsidiary	—			—			(45,000		)
Repayment of investments in and advances to subsidiaries	10,000			32,000			101,960
Net cash provided by investing activities	10,000			32,000			56,960
Financing activities:
Cash dividends paid	(57,776		)	(57,876		)	(57,949		)
Repayment of subordinated notes	—			(35,250		)	—
Repurchase of treasury shares	(6,058		)	(2,355		)	(843		)
Cash payment for fractional shares	(3		)	(5		)	(3		)
Net cash used in financing activities	(63,837		)	(95,486		)	(58,795		)
Increase (decrease) in cash	3,745			(8,271		)	8,216
Cash at beginning of year	98,671			106,942			98,726
Cash at end of year	$	102,416		$	98,671		$	106,942

F- 64

EX-21

Exhibit 21

SUBSIDIARIES OF PARK NATIONAL CORPORATION

Name of Subsidiary		Jurisdiction of Incorporation or Formation
The Park National Bank (“PNB”)		United States (federally-chartered national banking association)
•	Park Investments, Inc. (NOTE: is a wholly-owned subsidiary of PNB)	Delaware
•	Scope Leasing, Inc. (NOTE: is a wholly-owned subsidiary of PNB) [Also does business under “Scope Aircraft Finance”]	Ohio
•	River Park Properties, LLC (NOTE: is a wholly-owned subsidiary of PNB)	Ohio
•	Sunny Green, LLC (NOTE: is a wholly-owned subsidiary of PNB)	Ohio
•	The following are the divisions of PNB:
	∗ Fairfield National Bank (also sometimes known as “Fairfield National Division”)	n/a
	∗ The Park National Bank of Southwest Ohio & Northern Kentucky	n/a
	∗ Century National Bank	n/a
	∗ Second National Bank	n/a
	∗ Richland Bank (also sometimes known as “The Richland Trust Company”)	n/a
	∗ United Bank, N.A.	n/a
	∗ First-Knox National Bank (also sometimes known as “The First-Knox National Bank of Mount Vernon”)	n/a
	∗ Farmers Bank (also sometimes known as “Farmers and Savings”)	n/a
	∗ Security National Bank (also sometimes known as “The Security National Bank and Trust Co.” or “Security National Bank & Trust Company”)	n/a
	∗ Unity National Bank	n/a
Guardian Financial Services Company [Also does business under “Guardian Finance Company”]		Ohio

Name of Subsidiary		Jurisdiction of Incorporation or Formation
Park Title Agency, LLC. (NOTE: Park National Corporation holds 80% of ownership interest and other member, which is not a subsidiary of Park National Corporation, holds 20% of ownership interest)		Ohio
SE Property Holdings, LLC ("SEPH")		Ohio
•	Vision-Park Properties, L.L.C. (NOTE: SEPH is sole member)	Florida
•	87A Orange Beach, LLC (NOTE: SEPH is sole member)	Ohio
•	Morningside Holding, LLC (NOTE: SEPH is sole member)	Ohio
•	Swindall Holdings, LLC (NOTE: SEPH is sole member)	Ohio
•	Swindall Partnership Holdings, LLC (NOTE: SEPH is sole member)	Ohio
•	Marina Holdings Z, LLC (NOTE: SEPH is sole member)	Ohio
•	Marina Holding WE, LLC (NOTE: SEPH is sole member)	Ohio
Vision Bancshares Trust I (NOTE: Park holds all of the common securities as successor Depositor; floating rate preferred securities are held by institutional investors)		Delaware

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements of Park National

Corporation:

Form S-8 No. 33-92060

Form S-8 No. 333-52653

Form S-8 No. 333-59360

Form S-8 No. 333-59378

Form S-8 No. 333-91178

Form S-8 No. 333-168334

Form S-8 No. 333-188323

Form S-3 No. 333-181515

Form S-3 No. 333-207137

of our report dated February 18, 2016, relating to the consolidated financial statements and effectiveness

of internal control over financial reporting, appearing in this Annual Report on Form 10-K.

Crowe Horwath LLP

Columbus, Ohio

February 18, 2016

EX-24

Exhibit 24

POWER OF ATTORNEY

The undersigned officer and director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ David L. Trautman

David L. Trautman

POWER OF ATTORNEY

The undersigned officer and director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ C. Daniel DeLawder

C. Daniel DeLawder

POWER OF ATTORNEY

The undersigned officer of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder and David L. Trautman, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Brady T. Burt

Brady T. Burt

POWER OF ATTORNEY

The undersigned officer of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Matthew R. Miller

Matthew R. Miller

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in her name and on her behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as she could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Donna M. Alvarado

Donna M. Alvarado

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in her name and on her behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as she could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Maureen Buchwald

Maureen Buchwald

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ James R. DeRoberts

James R. DeRoberts

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ F. William Englefield IV

F. William Englefield IV

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in her name and on her behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as she could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Alicia J. Hupp

Alicia J. Hupp

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Stephen J. Kambeitz

Stephen J. Kambeitz

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Timothy S. McLain

Timothy S. McLain

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Robert E. O'Neill

Robert E. O'Neill

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in her name and on her behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as she could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Julia A. Sloat

Julia A. Sloat

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Rick R. Taylor

Rick R. Taylor

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2015, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and Brady T. Burt, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10‑K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25th day of January, 2016.

/s/ Leon Zazworsky

Leon Zazworsky

EX-31.1

Exhibit 31.1

Rule 13a-14(a)/15d-14(a) Certifications

[Principal Executive Officer]

CERTIFICATIONS

I, David L. Trautman, certify that:

1. I have reviewed this Annual Report on Form 10-K for the fiscal year ended December 31, 2015, of Park National Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  February 18, 2016	By:	/s/ David L. Trautman
	Printed Name: David L. Trautman
	Title: Chief Executive Officer and President

EX-31.2

Exhibit 31.2

Rule 13a-14(a)/15d-14(a) Certifications

[Principal Financial Officer]

CERTIFICATIONS

I, Brady T. Burt, certify that:

1. I have reviewed this Annual Report on Form 10-K for the fiscal year ended December 31, 2015, of Park National Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:   February 18, 2016	By:	/s/ Brady T. Burt
	Printed Name: Brady T. Burt
	Title: Chief Financial Officer, Secretary, and Treasurer

EX-32.1

Exhibit 32

CERTIFICATIONS PURSUANT TO

SECTION 1350 OF CHAPTER 63 OF

TITLE 18 OF THE UNITED STATES CODE*

In connection with the Annual Report of Park National Corporation (the “Company”) on Form 10-K for the fiscal year ended December 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned David L. Trautman, Chief Executive Officer and President of the Corporation, and Brady T. Burt, Chief Financial Officer, Secretary, and Treasurer of the Corporation, certify, pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of each of our respective knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company and its subsidiaries.

/s/ David L. Trautman	/s/ Brady T. Burt
David L. Trautman	Brady T. Burt
Chief Executive Officer and President (Principal Executive Officer)	Chief Financial Officer, Secretary, and Treasurer (Principal Financial Officer)
Dated: February 18, 2016	Dated: February 18, 2016

*    These certifications are being furnished as required by Rule 13a – 14(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 1350 of Chapter 63 of Title 18 of the United States Code, and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section.

These certifications shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates these certifications by reference.

XML

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 17, 2016	Jun. 30, 2015
Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Entity Registrant Name	PARK NATIONAL CORP /OH/
Entity Central Index Key	0000805676
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Common Stock, Shares Outstanding		15,330,812
Entity Public Float			$ 1,316,169,477

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets:
Cash and due from banks	$ 119,412	$ 133,511
Money market instruments	30,047	104,188
Cash and cash equivalents	149,459	237,699
Investment securities:
Securities available-for-sale, at fair value (amortized cost of $1,436,714 and $1,299,980 at December 31, 2015 and 2014, respectively)	1,436,266	1,301,915
Securities held-to-maturity, at amortized cost (fair value of $151,428 and $143,490 at December 31, 2015 and 2014, respectively)	149,302	140,562
Other investment securities	58,311	58,311
Total investment securities	1,643,879	1,500,788
Total loans	5,068,085	4,829,682
Allowance for loan losses	(56,494)	(54,352)
Net loans	5,011,591	4,775,330
Other assets:
Bank owned life insurance	181,684	171,928
Prepaid Expense, Current	80,635	75,190
Goodwill	72,334	72,334
Premises and equipment, net	59,493	55,479
Amortization Method Qualified Affordable Housing Project Investments	51,247	48,911
Accrued interest receivable	18,675	17,677
Other Real Estate, Foreclosed Assets, and Repossessed Assets	18,651	22,605
Mortgage loan servicing rights	9,008	8,613
Other	14,698	14,645
Total other assets	506,425	487,382
Total assets	7,311,354	7,001,199
Deposits:
Non-interest bearing	1,404,032	1,269,296
Interest bearing	3,943,610	3,858,704
Total deposits	5,347,642	5,128,000
Short-term borrowings	394,242	276,980
Long-term debt	738,105	786,602
Subordinated notes	45,000	45,000
Total borrowings	1,177,347	1,108,582
Other liabilities:
Accrued interest payable	2,338	2,551
Qualified Affordable Housing Project Investments, Commitment	20,311	16,629
Other	50,361	48,896
Total other liabilities	73,010	68,076
Total liabilities	$ 6,597,999	$ 6,304,658
Commitments and Contingencies
Shareholders’ equity:
Preferred Stock, Value, Issued	$ 0	$ 0
Common shares, no par value (20,000,000 shares authorized; 16,150,854 and 16,150,888 shares issued at December 31, 2015 and 2014, respectively)	303,966	303,104
Accumulated other comprehensive loss, net	(15,643)	(13,608)
Retained earnings	507,505	484,484
Less: Treasury shares (820,039 and 758,489 shares at December 31, 2015 and 2014, respectively)	(82,473)	(77,439)
Total shareholders’ equity	713,355	696,541
Total liabilities and shareholders’ equity	$ 7,311,354	$ 7,001,199

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Amortized cost of securities available-for-sale	$ 1,436,714	$ 1,299,980
Fair value of securities held-to-maturity	$ 151,428	$ 143,490
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares issued	0	0
Preferred stock per share liquidation preference	$ 0	$ 0
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	20,000,000	20,000,000
Common stock stock, shares issued	16,150,854	16,150,888
Treasury stock, shares	820,039	758,489

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Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest and dividend income:
Interest and fees on loans	$ 227,979	$ 227,644	$ 225,538
Interest and dividends on:
Obligations of U.S. Government, its agencies and other securities	36,025	36,981	36,686
Obligations of states and political subdivisions	182	3	45
Other interest income	888	515	678
Total interest and dividend income	265,074	265,143	262,947
Interest on deposits:
Demand and savings deposits	2,229	1,677	1,773
Time deposits	10,125	9,323	11,235
Interest on short-term borrowings	469	517	544
Interest on long-term debt	24,619	28,582	28,370
Total interest expense	37,442	40,099	41,922
Net interest income	227,632	225,044	221,025
Provision for (recovery of) loan losses	4,990	(7,333)	3,415
Net interest income after provision for (recovery of) loan losses	222,642	232,377	217,610
Other income:
Income from fiduciary activities	20,195	19,150	17,133
Service charges on deposit accounts	14,751	15,423	16,316
Net gain on sales of securities	88	(1,158)	0
Other service income	11,438	10,459	12,913
Checkcard fee income	14,561	13,570	12,955
Bank owned life insurance income	5,783	4,861	5,041
ATM fees	2,428	2,467	2,632
Gain on sale of OREO, net	1,604	5,503	3,110
OREO valuation adjustments	(1,592)	(2,406)	(3,180)
Gain (Loss) on Sales of Loans, Net	756	1,867	0
Miscellaneous	7,539	5,813	6,357
Total other income	77,551	75,549	73,277
Other expense:
Salaries	86,189	81,977	80,985
Employee Benefit Expense	21,296	19,991	19,313
Data processing fees	5,037	4,712	4,174
Professional fees and services	23,452	29,580	27,865
Occupancy expense	9,686	10,006	9,804
Furniture and equipment expense	11,806	11,571	11,249
Insurance	5,629	5,723	5,205
Marketing	3,983	4,371	3,790
Communication	5,130	5,268	5,790
State tax expense	3,566	2,290	3,702
OREO expense	1,446	2,063	2,731
Miscellaneous	9,394	9,958	6,907
Total other expense	186,614	187,510	181,515
Income (loss) before taxes	113,579	120,416	109,372
Federal income taxes	32,567	36,459	32,503
Net income	$ 81,012	$ 83,957	$ 76,869
Earnings per common share:
Basic (in dollars per share)	$ 5.27	$ 5.45	$ 4.99
Diluted (in dollars per share)	$ 5.26	$ 5.45	$ 4.99

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Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income	$ 81,012	$ 83,957	$ 76,869
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax	424	12	1,770
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax	(910)	(9,279)	19,766
Other comprehensive income (loss), net of tax:
Changes in pension plan assets and benefit obligations recognized in other comprehensive income	(486)	(9,267)	21,536
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax	0	753	0
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, Net of Tax	0	0	11
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax	(1,549)	30,325	(39,448)
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	(1,549)	31,078	(39,437)
Other Comprehensive Income (Loss), Net of Tax	(2,035)	21,811	(17,901)
Comprehensive income	$ 78,977	$ 105,768	$ 58,968

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Statements of Comprehensive Income (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax	$ 424,000	$ 12,000	$ 1,770,000
Tax Effect
Amortization of net loss and prior service costs, tax expense	228	7	953
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax	(490)	(4,997)	10,643
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	0	405	0
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, Tax	0	0	6
Unrealized net holding gain (loss) on securities available-for-sale, tax expense	(834)	16,329	(21,242)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax	$ (910,000)	$ (9,279,000)	$ 19,766,000

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Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Shares	Common Shares	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive (Loss) Income
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	$ 648,800			$ 440,039
Cumulative Effect of New Accounting Principle in Period of Adoption	(1,566)			(1,566)
Beginning balance at Dec. 31, 2012	650,366	$ 0	$ 302,654	441,605	$ (76,375)	$ (17,518)
Beginning balance, shares at Dec. 31, 2012		0	15,411,998
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	76,869			76,869
Other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Net of Tax	(17,901)					(17,901)
Cash dividends	(57,949)			(57,949)
Fractional shares issued in dividend reinvestment plan, shares			(46)
Cash payment for fractional shares in dividend reinvestment plan	(3)		$ (3)
Treasury Stock, Shares, Acquired			(10,550)
Treasury Stock, Value, Acquired, Cost Method	$ 843				843
Treasury Stock Reissued Shares For Director Grants	10,550		10,550
Treasury shares reissued for director grants	$ 850			(240)	1,090
Ending balance at Dec. 31, 2013	649,823	$ 0	$ 302,651	458,719	(76,128)	(35,419)
Ending balance, shares at Dec. 31, 2013		0	15,411,952
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	83,957			83,957
Other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Net of Tax	21,811					21,811
Cash dividends	(57,949)			(57,949)
Fractional shares issued in dividend reinvestment plan, shares			(53)
Cash payment for fractional shares in dividend reinvestment plan	(5)		$ (5)
Allocated Share-based Compensation Expense	458		$ 458
Treasury Stock, Shares, Acquired			(29,700)
Treasury Stock, Value, Acquired, Cost Method	$ 2,355				(2,355)
Treasury Stock Reissued Shares For Director Grants	10,200		10,200
Treasury shares reissued for director grants	$ 801			(243)	1,044
Ending balance at Dec. 31, 2014	696,541	$ 0	$ 303,104	484,484	(77,439)	(13,608)
Ending balance, shares at Dec. 31, 2014		0	15,392,399
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	81,012			81,012
Other comprehensive income (loss), net of tax:
Other Comprehensive Income (Loss), Net of Tax	(2,035)					(2,035)
Cash dividends	(57,930)			(57,930)
Fractional shares issued in dividend reinvestment plan, shares			(34)
Cash payment for fractional shares in dividend reinvestment plan	(3)		$ (3)
Allocated Share-based Compensation Expense	865		$ 865
Treasury Stock, Shares, Acquired			(71,700)
Treasury Stock, Value, Acquired, Cost Method	$ 6,058				6,058
Treasury Stock Reissued Shares For Director Grants	10,150		10,150
Treasury shares reissued for director grants	$ 963			(61)	1,024
Ending balance at Dec. 31, 2015	$ 713,355	$ 0	$ 303,966	$ 507,505	$ (82,473)	$ (15,643)
Ending balance, shares at Dec. 31, 2015		0	15,330,815

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Consolidated Statements of Changes In Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash dividends on common stock per share	$ 3.76	$ 3.76	$ 3.76

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest Paid	$ 37,655	$ 40,449	$ 42,481
Operating activities:
Net income	81,012	83,957	76,869
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (recovery of) loan losses	4,990	(7,333)	3,415
Amortization of loan fees and costs, net	6,440	4,160	3,611
Depreciation	7,347	7,243	7,315
Other than temporary impairment on investment securities	0	0	17
Amortization of intangible assets	0	0	337
Accretion of investment securities, net	(226)	(213)	(33)
Amortization of prepayment penalty on long term debt	6,047	5,031	4,835
Deferred income tax	(250)	2,528	(1,932)
Realized net investment security (gains) losses	0	1,158	0
Loan originations to be sold in secondary market	(220,800)	(136,125)	(317,534)
Proceeds from sale of loans in secondary market	222,785	135,209	345,704
Gain on sale of loans in secondary market	(756)	(1,867)	0
Proceeds from Sale of Other Loans Held-for-sale	900	20,966	0
Share-based Compensation	1,828	1,259	850
OREO valuation adjustments	1,592	2,406	3,180
Gains (Losses) on Sales of Other Real Estate	(1,604)	(5,503)	(3,110)
Proceeds from Sale of Other Real Estate	17,058	27,798	23,043
Bank owned life insurance income	(5,783)	(4,861)	(5,041)
Changes in assets and liabilities:
(Increase) Decrease in other assets	(10,978)	(18,313)	12,222
Decrease (Increase) in other liabilities	1,173	5,689	(5,324)
Net cash provided by operating activities	88,702	71,743	121,288
Proceeds from Life Insurance Policies	6,340	2,221	1,430
Investing activities:
Proceeds from Sale of Federal Home Loan Bank Stock	0	8,946	0
Proceeds from sales of securities	3,144	173,123	75,000
Proceeds from calls and maturities of securities:
Held-to-maturity	36,393	41,436	219,329
Available-for-sale	321,146	99,092	385,259
Purchase of securities:
Held-to-maturity	(48,226)	0	0
Available-for-sale	(457,617)	(350,934)	(582,728)
Net increase in other investments	0	(1,350)	0
Net loan originations, portfolio loans	247,882	234,017	212,311
Payments for Affordable Housing Programs	(5,318)	(9,417)	(8,222)
Payments to Acquire Life Insurance Policies	10,045	0	4,600
Purchases of premises and equipment, net	(11,361)	(7,444)	(8,842)
Net cash used in investing activities	(395,468)	(229,580)	(112,642)
Financing activities
Net increase in deposits	219,642	338,006	73,962
Net increase (decrease) in short-term borrowings	117,262	34,951	(102,139)
Proceeds from issuance of long-term debt	25,000	125,000	75,000
Repayment of subordinated notes	0	(35,250)	0
Repayment of long-term debt	(79,544)	(153,970)	(50,952)
Treasury Stock, Value, Acquired, Cost Method	(6,058)	(2,355)	(843)
Cash dividends paid	(57,776)	(57,876)	(57,949)
Net cash provided by (used in) financing activities	218,526	248,506	(62,921)
(Decrease) increase in cash and cash equivalents	(88,240)	90,669	(54,275)
Cash and cash equivalents at beginning of year	237,699	147,030	201,305
Cash and cash equivalents at end of year	149,459	237,699	147,030
Income Taxes Paid	26,140	27,810	20,000
Non cash activities [Abstract]
Real Estate Owned, Transfer to Real Estate Owned	13,447	12,780	22,144
Transfer of Portfolio Loans and Leases to Held-for-sale	144	21,985	0
Affordable Housing Program Obligation, Period Increase (Decrease)	9,000	8,000	7,000
Mortgage Loans on Real Estate [Member]
Adjustments to reconcile net income to net cash provided by operating activities:
Gain (Loss) on Sale of Loans and Leases	4,027	$ 2,682	$ 4,093
Held-to-maturity Securities [Member]
Adjustments to reconcile net income to net cash provided by operating activities:
Realized net investment security (gains) losses	$ (88)

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The following is a summary of significant accounting policies followed in the preparation of the consolidated financial statements:

Principles of Consolidation

The consolidated financial statements include the accounts of Park National Corporation and its subsidiaries (“Park”, the “Company” or the “Corporation”). Material intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management has identified the allowance for loan losses, accounting for Other Real Estate Owned (“OREO”), fair value accounting, accounting for goodwill and accounting for pension plan and other post-retirement benefits as significant estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year presentation. Additionally, prior period financial statements reflect the retrospective application of Accounting Standards Update ("ASU") 2014-01, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.

Restrictions on Cash and Due from Banks

The Corporation’s national bank subsidiary is required to maintain average reserve balances with the Federal Reserve Bank. The average required reserve balance was approximately $44.2 million at December 31, 2015 and $40.3 million at December 31, 2014. No other compensating balance arrangements were in existence at December 31, 2015.

Investment Securities

Investment securities are classified upon acquisition into one of three categories: held-to-maturity ("HTM"), available-for-sale ("AFS"), or trading (see Note 5 - Investment Securities).

HTM securities are those securities that the Corporation has the positive intent and ability to hold to maturity and are recorded at amortized cost. AFS securities are those securities that would be available to be sold in the future in response to the Corporation’s liquidity needs, changes in market interest rates, and asset-liability management strategies, among other reasons. AFS securities are reported at fair value, with unrealized holding gains and losses excluded from earnings but included in other comprehensive income (loss), net of applicable taxes. The Corporation did not hold any trading securities during any period presented.

AFS and HTM securities are evaluated quarterly for potential other-than-temporary impairment. Management considers the facts related to each security including the nature of the security, the amount and duration of the loss, the credit quality of the issuer, the expectations for that security’s performance and whether Park intends to sell, or it is more likely than not that Park will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. Declines in the value of equity securities that are considered to be other-than-temporary are recorded as a charge to earnings in the Consolidated Statements of Income. Declines in the value of debt securities that are considered to be other-than-temporary are separated into (1) the amount of the total impairment related to credit loss and (2) the amount of the total impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income (loss), net of tax.

Interest income from investment securities includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated.

Gains and losses realized on the sale of investment securities are recorded on the trade date and determined using the specific identification basis.

Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock

Park’s national bank subsidiary, The Park National Bank ("PNB") is a member of the FHLB. Additionally, PNB is a member of the FRB. Members are required to own a certain amount of stock based on their level of borrowings and other factors and may invest in additional amounts. FHLB stock and FRB stock are classified as restricted securities and are carried at their redemption value within other investment securities on the Consolidated Balance Sheets. Impairment is evaluated based on the ultimate recovery of par value. Both cash and stock dividends are reported as income.

Bank Owned Life Insurance

Park has purchased insurance policies on the lives of directors and certain key officers. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

Loans Held for Sale

Generally, loans held for sale are carried at the lower of cost or fair value. Park has elected the fair value option for mortgage loans held for sale, which are carried at their fair value.

Mortgage Banking Derivatives

Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. The fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on sale of loans.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at their outstanding principal balances adjusted for any charge-offs, any deferred fees or costs on originated loans, and any unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan origination fees and costs over the loan term. Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) those commercial loans in the real estate construction loan segment; and (4) those commercial loans in the residential real estate loan segment. Consumer loans include: (1) mortgage and installment loans included in the real estate construction segment; (2) mortgage, home equity lines of credit (HELOC), and installment loans included in the residential real estate segment; and (3) all loans included in the consumer segment.

Generally, commercial loans are placed on nonaccrual status at 90 days past due and consumer and residential mortgage loans are placed on nonaccrual status at 120 days past due. Commercial loans placed on nonaccrual status are considered impaired (see Note 6 - Loans). For loans which are on nonaccrual status, it is Park’s policy to reverse interest previously accrued on the loans against interest income. Interest on such loans may be recorded on a cash basis and be included in earnings only when cash is actually received. Park’s charge-off policy for commercial loans requires management to establish a specific reserve or record a charge-off as soon as it is apparent that the borrower is troubled and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing the loan. The Company’s charge-off policy for consumer loans is dependent on the class of the loan. Residential mortgage loans, HELOCs, and consumer loans secured by residential real estate are typically charged down to the value of the collateral, less estimated selling costs, at 180 days past due. The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due.

The delinquency status of a loan is based on contractual terms and not on how recently payments have been received. Loans may be removed from nonaccrual status when loan payments have been received to cure the delinquency status, the borrower has demonstrated the ability to maintain current payment status in accordance with the loan agreement and the loan is deemed to be well-secured by management.

A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below:

Commercial, financial and agricultural: Commercial, financial and agricultural loans are made for a wide variety of general corporate purposes, including financing for commercial and industrial businesses, financing for equipment, inventories and accounts receivable, acquisition financing and commercial leasing. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. The commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications originated in the 28 Ohio counties where PNB operates. The primary industries represented by these customers include manufacturing, retail trade, health care and other services.

Commercial real estate: Commercial real estate (“CRE”) loans include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate.

Construction real estate: The Company defines construction loans as both commercial construction loans and residential construction loans where the loan proceeds are used exclusively for the improvement of real estate as to which the Company holds a mortgage. Construction loans may be in the form of a permanent loan or short-term construction loan, depending on the needs of the individual borrower. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, the PNB division making the loan may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, the PNB division may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event that a default on a construction loan occurs and foreclosure follows, the PNB division must take control of the project and attempt to either arrange for completion of construction or dispose of the unfinished project. Additional risk exists with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. PNB and its divisions attempt to reduce such risks on loans to developers by requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer.

Residential real estate: The Company defines residential real estate loans as first mortgages on individuals’ primary residences or second mortgages of individuals’ primary residences in the form of HELOCs or installment loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and an appraised value of the real estate securing the loan.

Consumer: The Company originates direct and indirect consumer loans, primarily automobile loans and home equity based lines of credit to customers in its primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s financial stability, and thus are more likely to be affected by adverse personal circumstances.

Allowance for Loan Losses

The allowance for loan losses is that amount believed adequate to absorb probable incurred credit losses in the loan portfolio based on management’s evaluation of various factors. The determination of the allowance requires significant estimates, including the timing and amounts of expected cash flows on impaired loans, consideration of current economic conditions, and historical loss experience pertaining to pools of homogeneous loans, all of which may be susceptible to change. The allowance is increased through a provision for loan losses that is charged to earnings based on management’s quarterly evaluation of the factors previously mentioned and is reduced by charge-offs, net of recoveries.

The allowance for loan losses includes both (1) an estimate of loss based on historical loss experience within both commercial and consumer loan categories with similar characteristics (“statistical allocation”) and (2) an estimate of loss based on an impairment analysis of each commercial loan that is considered to be impaired (“specific allocation”).

In calculating the allowance for loan losses, management believes it is appropriate to utilize historical loss rates that are comparable to the current period being analyzed, giving consideration to losses experienced over a full cycle. For the historical loss factor at December 31, 2015, the Company utilized an annual loss rate (“historical loss experience”), calculated based on an average of the net charge-offs and the annual change in specific reserves for impaired commercial loans, experienced during 2009 through 2015 within the individual segments of the commercial and consumer loan categories. Management believes the 84-month historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates consistent with current expectations based on current economic conditions. The loss factor applied to Park’s consumer portfolio as of December 31, 2015 was based on the historical loss experience over the past 84 months, plus an additional judgmental reserve, increasing the total allowance for loan loss coverage in the consumer portfolio to approximately 1.99 years of historical loss. The consumer loan portfolio loss coverage ratio was 1.98 years at December 31, 2014. The loss factor applied to Park’s commercial portfolio as of December 31, 2015 was based on the historical loss experience over the past 84 months, plus additional reserves for consideration of (1) a loss emergence period factor, (2) a loss migration factor and (3) a judgmental or environmental loss factor. These additional reserves increased the total allowance for loan loss coverage in the commercial portfolio to approximately 2.52 years of historical loss at December 31, 2015. The commercial loan portfolio loss coverage ratio was 2.28 years at December 31, 2014. Park’s commercial loans are individually risk graded. If loan downgrades occur, the probability of default increases and accordingly management allocates a higher percentage reserve to those accruing commercial loans graded special mention and substandard.

The judgmental increases discussed above incorporate management’s evaluation of the impact of environmental qualitative factors which pose additional risks and assign a component of the allowance for loan losses in consideration of these factors. Such environmental factors include: national and local economic trends and conditions; experience, ability and depth of lending management and staff; effects of any changes in lending policies and procedures; and levels of, and trends in, consumer bankruptcies, delinquencies, impaired loans and charge-offs and recoveries.

GAAP requires a specific allocation to be established as a component of the allowance for loan losses for certain loans when it is probable that all amounts due pursuant to the contractual terms of the loans will not be collected, and the recorded investment in the loans exceeds their measure of impairment. Management considers the following related to commercial loans when determining if a loan should be considered impaired: (1) current debt service coverage levels of the borrowing entity; (2) payment history over the most recent 12-month period; (3) other signs of deterioration in the borrower’s financial situation, such as changes in credit scores; and (4) consideration of global cash flows of financially sound guarantors that have previously supported loan payments. The recorded investment is the carrying balance of the loan, plus accrued interest receivable, both as of the end of the year. Impairment is measured using either the present value of expected future cash flows based upon the initial effective interest rate on the loan, or the fair value of the collateral. If a loan is considered to be collateral dependent, the fair value of collateral, less estimated selling costs, is used to measure impairment.

Troubled Debt Restructuring ("TDRs")

Management classifies loans as TDRs when a borrower is experiencing financial difficulty and Park has granted a concession. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. A court's discharge of a borrower's debt in a Chapter 7 bankruptcy is considered a concession when the borrower does not reaffirm the discharged debt. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral.

Income Recognition

Income earned by the Corporation and its subsidiaries is recognized on the accrual basis of accounting, except for nonaccrual loans as previously discussed, and late charges on loans which are recognized as income when they are collected.

Premises and Equipment

Land is carried at cost and is not subject to depreciation. Premises and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the remaining lease period or the estimated useful lives of the improvements. Upon the sale or other disposal of an asset, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are charged to expense as incurred while renewals and improvements that extend the useful life of an asset are capitalized. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.

The range of depreciable lives over which premises and equipment are being depreciated are:

Buildings	30 Years
Equipment, furniture and fixtures	3 to 12 Years
Leasehold improvements	1 to 10 Years

Other Real Estate Owned

Management transfers a loan to OREO at the time that Park takes deed/title of the asset. OREO is initially recorded at fair value less anticipated selling costs (net realizable value), establishing a new cost basis, and consists of property acquired through foreclosure and real estate held for sale. If the net realizable value is below the carrying value of the loan at the date of transfer, the difference is charged to the allowance for loan losses. These assets are subsequently accounted for at the lower of cost or fair value less costs to sell. Subsequent changes in the value of real estate are classified as OREO valuation adjustments, are reported as adjustments to the carrying amount of OREO and are recorded within “Other income”. In certain circumstances where management believes the devaluation may not be permanent in nature, Park utilizes a valuation allowance to record OREO devaluations, which is also expensed through “Other income”. Costs relating to development and improvement of such properties are capitalized (not in excess of fair value less estimated costs to sell) and costs relating to holding the properties are charged to "Other expense".

Mortgage Servicing Rights ("MSR")

When Park sells mortgage loans with servicing rights retained, servicing rights are recorded at an amount not to exceed fair value with the income statement effect recorded in "Other service income." Capitalized servicing rights are amortized in proportion to and over the period of the estimated future servicing income of the underlying loan and are included within “Other service income”.

Mortgage servicing rights are assessed for impairment periodically, based on fair value, with any impairment recognized through a valuation allowance. The fair value of mortgage servicing rights is determined by discounting estimated future cash flows from the servicing assets, using market discount rates and expected future prepayment rates. In order to calculate fair value, the sold loan portfolio is stratified into homogeneous pools of like categories. (See Note 24 - Loan Servicing.)

Fees received for servicing mortgage loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in income as loan payments are received. The cost of servicing loans is charged to expense as incurred.

Goodwill

Goodwill represents the excess of the purchase price over net identifiable tangible and intangible assets acquired in a purchase business combination. Other intangible assets represent purchased assets that have no physical property but represent some future economic benefit to their owner and are capable of being sold or exchanged on their own or in combination with a related asset or liability.

Goodwill and indefinite-lived intangible assets are not amortized to expense, but are subject to impairment tests annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets with definitive useful lives (such as core deposit intangibles) are amortized to expense over their estimated useful lives.

Management considers several factors when performing the annual impairment tests on goodwill. The factors considered include the operating results for the particular Park segment for the past year and the operating results budgeted for the current year (including multi-year projections), the deposit and loan totals of the Park segment and the economic conditions in the markets served by the Park segment. At December 31, 2015, the goodwill remaining on Park's Consolidated Balance Sheet consisted entirely of goodwill at PNB. (See Note 27 - Segment Information for operating segment results.)

GAAP requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired, by assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing these events or circumstances, it is concluded that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If the carrying amount of the goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess.

Park evaluates goodwill for impairment on April 1 of each year, with financial data as of March 31. Based on the analysis performed as of April 1, 2015, the Company determined that goodwill for Park’s national bank subsidiary (PNB) was not impaired. There have been no subsequent circumstances or events triggering an additional evaluation.

Consolidated Statement of Cash Flows

Cash and cash equivalents include cash and cash items, amounts due from banks and money market instruments. Generally, money market instruments are purchased and sold for one-day periods.

Loss Contingencies and Guarantees

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.

Income Taxes

The Corporation accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. To the extent that Park does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is recorded. All positive and negative evidence is reviewed when determining how much of a valuation allowance is recognized on a quarterly basis. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination being presumed to occur. The benefit recognized for a tax position that meets the “more-likely-than-not” criteria is measured based on the largest benefit that is more than 50 percent likely to be realized, taking into consideration the amounts and probabilities of the outcome upon settlement. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. Park recognizes any interest and penalties related to income tax matters in income tax expense.

Treasury Shares

The purchase of Park’s common shares is recorded at cost. At the date of retirement or subsequent reissuance, the treasury shares account is reduced by the weighted average cost of the common shares retired or reissued.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, and changes in the funded status of the Company’s defined benefit pension plan, which are also recognized as separate components of equity.

Share-Based Compensation

Compensation cost is recognized for restricted stock units and stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. The market price of Park’s common shares at the date of grant is used to estimate the fair value of restricted stock units and stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period and is recorded in "Salaries" expense. (See Note 17 - Share - Based Compensation.)

Loan Commitments and Related Financial Instruments

Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 25 - Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Retirement Plans

Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee KSOP plan expense is the amount of matching contributions to Park's employees stock ownership plan. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. (See Note 18 - Benefit Plans.)

Earnings Per Common Share

Basic earnings per common share is net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock awards, stock options, warrants and convertible securities. Earnings and dividends per common share are restated for any stock splits and stock dividends through the date of issuance of the consolidated financial statements. (See Note 21 - Earnings Per Common Share.)

Operating Segments

The Corporation is a financial holding company headquartered in Newark, Ohio. The operating segments for the Corporation are its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio), SE Property Holdings, LLC ("SEPH"), and Guardian Financial Services Company ("GFSC").

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Adoption of New Accounting Pronouncements (Notes)

12 Months Ended

Dec. 31, 2015

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Adoption of New Accounting Pronouncements

ASU 2014-01- Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force): In January 2014, the Financial Accounting Standards Board (the "FASB") issued ASU 2014-01, Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). The ASU permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. Additionally, a reporting entity should disclose information that enables users of its financial statements to understand the nature of its investments in qualified affordable housing projects, and the effect of the measurement of its investments in qualified affordable housing projects and the related tax credits on its financial position and results of operations. The new guidance became effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. Park adopted this guidance in the first quarter of 2015. The guidance was applied retrospectively to all prior periods presented. The adoption resulted in adjustments to reduce beginning retained earnings, other assets and the prior periods consolidated statements of income. See Note 11 - Investment in Qualified Affordable Housing for further details.

ASU 2014-04 - Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force): In January 2014, FASB issued ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force). This new ASU clarifies when an in substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of real estate property collateralizing a consumer mortgage loan. Specifically, the new ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. Additional disclosures are required detailing the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgages collateralized by real estate property that are in the process of foreclosure. The new guidance is effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. The adoption of this guidance as of January 1, 2015 did not have a material impact on Park's consolidated financial statements, but resulted in additional disclosures. See Note 9 - Other Real Estate Owned.

ASU 2014-09 - Revenue from Contracts with Customers (Topic 606): In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU creates a new topic, Topic 606, to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2017. Management is currently evaluating the impact of the adoption of this guidance on Park's consolidated financial statements.

ASU 2014-11 - Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures: In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this ASU change the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The amendments also require two new disclosures. The first disclosure requires an entity to disclose information on transfers accounted for as sales in transactions that are economically similar to repurchase agreements. The second disclosure provides increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The accounting changes are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, with all other disclosure requirements required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of this guidance as of January 1, 2015 did not have an impact on Park's consolidated financial statements, but resulted in additional disclosures. See Note 13 - Repurchase Agreement Borrowings.

ASU 2015-02 - Consolidation (Topic 810): Amendments to the Consolidation Analysis: In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The ASU amends the current consolidation guidance and affects both the variable interest entity and voting interest entity consolidation models. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. Management is currently evaluating the impact of the adoption of this guidance on Park’s consolidated financial statements.

ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2016, the FASB issued ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Changes to the current GAAP model primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale securities. The new guidance is effective for annual reporting period and interim reporting periods within those annual periods, beginning after December 15, 2017. Management is currently evaluating the impact of the adoption of this guidance on Park’s consolidated financial statements.

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Organization

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization

Park National Corporation is a financial holding company headquartered in Newark, Ohio. Through its national bank subsidiary, PNB, Park is engaged in a general commercial banking and trust business, primarily in Ohio. PNB operates through eleven banking divisions with the Park National Bank Division headquartered in Newark, Ohio, the Fairfield National Bank Division headquartered in Lancaster, Ohio, The Park National Bank of Southwest Ohio & Northern Kentucky Division headquartered in Cincinnati, Ohio, the First-Knox National Bank Division headquartered in Mount Vernon, Ohio, the Farmers Bank Division headquartered in Loudonville, Ohio, the Security National Bank Division headquartered in Springfield, Ohio, the Unity National Bank Division headquartered in Piqua, Ohio, the Richland Bank Division headquartered in Mansfield, Ohio, the Century National Bank Division headquartered in Zanesville, Ohio, the United Bank, N.A. Division headquartered in Bucyrus, Ohio and the Second National Bank Division headquartered in Greenville, Ohio. A wholly-owned subsidiary of Park, GFSC is a consumer finance company located in Central Ohio.

Through February 16, 2012, Park operated a second banking subsidiary, Vision Bank ("Vision"), which was engaged in a general commercial banking business, primarily in Baldwin County, Alabama and the panhandle of Florida. Vision operated through two banking divisions with the Vision Bank Florida Division headquartered in Panama City, Florida and the Vision Bank Alabama Division headquartered in Gulf Shores, Alabama. Promptly following the sale of the Vision business to Centennial Bank (a wholly-owned subsidiary of HomeBanc Shares, Inc.), Vision surrendered its Florida banking charter to the Florida Office of Financial Regulation and became a non-bank Florida corporation. Vision (the Florida corporation) merged with and into a wholly-owned, non-bank subsidiary of Park, SEPH, with SEPH being the surviving entity. SEPH holds the remaining assets and liabilities retained by Vision subsequent to the sale. SEPH also holds OREO that had previously been transferred to SEPH from Vision. SEPH's assets consist primarily of performing and nonperforming loans and OREO. This segment represents a run off portfolio of the legacy Vision assets.

All of the Ohio-based banking divisions provide the following principal services: the acceptance of deposits for demand, savings and time accounts; commercial, industrial, consumer and real estate lending, including installment loans, credit cards, home equity lines of credit; trust services; cash management; safe deposit operations; electronic funds transfers and a variety of additional banking-related services. See Note 27 - Segment Information for financial information on the Corporation’s operating segments.

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Goodwill (Notes)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill

The following table reflects the activity in goodwill and other intangible assets for the years ended December 31, 2015, 2014 and 2013.

(In thousands)	Goodwill		Core Deposit Intangibles			Total
January 1, 2013	$	72,334	$	337		$	72,671
Amortization	—		(337		)	(337		)
December 31, 2013	$	72,334	$	—		$	72,334
Amortization	—		—			—
December 31, 2014	$	72,334	$	—		$	72,334
Amortization	—		—			—
December 31, 2015	$	72,334	$	—		$	72,334

The core deposit intangibles were amortized to expense principally on the straight-line method, over a period of six years. Core deposit intangibles were fully amortized at December 31, 2013, and thus there was no amortization expense in 2014 or 2015. Core deposit intangible amortization expense was $337,000 in 2013.

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Investment Securities

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investments Securities

Investment Securities

The amortized cost and fair value of investment securities are shown in the following table. Management performs a quarterly evaluation of investment securities for any other-than-temporary impairment. During 2015 and 2014, there were no investment securities deemed to be other-than-temporarily impaired. During 2013, Park recognized other-than-temporary impairment charges of $17,000, related to an equity investment in a financial institution.

Investment securities at December 31, 2015 and December 31, 2014 were as follows:

(In thousands)	Amortized Cost		Gross Unrealized/Unrecognized Holding Gains		Gross Unrealized/Unrecognized Holding Losses		Estimated Fair Value
2015:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	527,605	$	—	$	5,542	$	522,063
U.S. Government sponsored entities’ asset-backed securities	907,989		8,776		5,272		911,493
Other equity securities	1,120		1,590		—		2,710
Total	$	1,436,714	$	10,366	$	10,814	$	1,436,266
2015:
Securities Held-to-Maturity
Obligations of states and political subdivisions	$	48,190	$	734	$	—	$	48,924
U.S. Government sponsored entities’ asset-backed securities	101,112		1,526		134		102,504
Total	$	149,302	$	2,260	$	134	$	151,428

(In thousands)	Amortized Cost		Gross Unrealized/Unrecognized Holding Gains		Gross Unrealized/Unrecognized Holding Losses		Estimated Fair Value
2014:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	546,886	$	11	$	8,833	$	538,064
U.S. Government sponsored entities’ asset-backed securities	751,974		13,421		4,242		761,153
Other equity securities	1,120		1,578		—		2,698
Total	$	1,299,980	$	15,010	$	13,075	$	1,301,915
2014:
Securities Held-to-Maturity
U.S. Government sponsored entities’ asset-backed securities	$	140,562	$	3,088	$	160	$	143,490

Park’s U.S. Government sponsored entities' asset-backed securities consisted of 15-year mortgage-backed securities and collateralized mortgage obligations (CMOs). At December 31, 2015, the amortized cost of Park’s available-for-sale mortgage-backed securities was $569.0 million and there were no held-to-maturity mortgage-backed securities within Park's investment portfolio. At December 31, 2015, the amortized cost of Park's available-for-sale and held-to-maturity CMOs was $339.0 million and $101.1 million, respectively.

The following table provides detail on investment securities with unrealized losses aggregated by investment category and length of time the individual securities had been in a continuous loss position at December 31, 2015 and December 31, 2014:

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2015:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	326,973	$	2,117	$	195,090	$	3,425	$	522,063	$	5,542
U.S. Government sponsored entities' asset-backed securities	384,169		2,776		114,543		2,496		498,712		5,272
Total	$	711,142	$	4,893	$	309,633	$	5,921	$	1,020,775	$	10,814
2015:
Securities Held-to-Maturity
U.S. Government sponsored entities’ asset-backed securities	$	5,656	$	10	$	7,792	$	124	$	13,448	$	134

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2014:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	119,913	$	87	$	388,140	$	8,746	$	508,053	$	8,833
U.S. Government sponsored entities' asset-backed securities	73,276		136		170,430		4,106		243,706		4,242
Total	$	193,189	$	223	$	558,570	$	12,852	$	751,759	$	13,075
2014:
Securities Held-to-Maturity
U.S. Government sponsored entities' asset-backed securities	$	8,032	$	148	$	2,714	$	12	$	10,746	$	160

Management does not believe any individual unrealized loss as of December 31, 2015 or 2014 represented an other-than-temporary impairment. The unrealized losses on debt securities are primarily the result of interest rate changes. These conditions will not prohibit Park from receiving its contractual principal and interest payments on these debt securities. The fair value of these debt securities is expected to recover as payments are received on these securities and they approach maturity. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

Other investment securities (as shown on the Consolidated Balance Sheets) consist of stock investments in the FHLB and the FRB. These restricted stock investments are carried at their redemption value. Park owned $50.1 million of FHLB stock and $8.2 million of FRB stock at both December 31, 2015 and December 31, 2014, respectively.

The amortized cost and estimated fair value of investments in debt securities at December 31, 2015, are shown in the following table by contractual maturity, except for asset-backed securities, which are shown as a single total, due to the unpredictability of the timing in principal repayments.

(In thousands)	Amortized Cost		Estimated Fair Value		Tax Equivalent Yield
Securities Available-for-Sale
U.S. Treasury and other U.S. Government sponsored entities’ notes:
Due one through five years	$	220,000	$	219,135	1.29	%
Due five through ten years	307,605		302,928		2.40	%
Total	$	527,605	$	522,063	1.94	%
U.S. Government sponsored entities’ asset-backed securities	$	907,989	$	911,493	2.23	%
Securities Held-to-Maturity
Obligations of states and political subdivisions
Due greater than ten years	$	48,190	$	48,924	4.65	%
Total	$	48,190	$	48,924	4.65	%
U.S. Government sponsored entities’ asset-backed securities	$	101,112	$	102,504	3.42	%

Approximately $527.6 million of Park’s securities shown in the above table as U.S. Treasury and other U.S. Government sponsored entities' notes are callable notes. These callable securities have a final maturity of 1 to 7 years. The remaining weighted average life of the investment portfolio is 4.8 years.

Investment securities having an amortized cost of $1,072 million and $1,205 million at December 31, 2015 and 2014, respectively, were pledged to collateralize government and trust department deposits in accordance with federal and state requirements, to secure repurchase agreements sold and as collateral for FHLB advance borrowings.

At December 31, 2015, $429 million was pledged for government and trust department deposits, $622 million was pledged to secure repurchase agreements and $21 million was pledged as collateral for FHLB advance borrowings. At December 31, 2014, $513 million was pledged for government and trust department deposits, $664 million was pledged to secure repurchase agreements and $28 million was pledged as collateral for FHLB advance borrowings.

At December 31, 2015, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

During 2015, Park sold certain HFS investment securities with a book value of $3.1 million at a gain of $88,000. These securities had been paid down to 97.8% of the principal outstanding at acquisition. During 2014, Park sold investment securities with a book value of $187,000 at a gain of $22,000. Additionally, Park sold investment securities with a book value of $174.1 million at a loss of $1.2 million. During 2013, Park sold $75.0 million of securities at book value for no gain.

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Loans

12 Months Ended

Dec. 31, 2015

Loans and Leases Receivable Disclosure [Abstract]

Loans

Loans

The composition of the loan portfolio, by class of loan, as of December 31, 2015 and December 31, 2014 was as follows:

	12/31/2015						12/31/2014
(In thousands)	Loan Balance		Accrued Interest Receivable		Recorded Investment		Loan Balance		Accrued Interest Receivable		Recorded Investment
Commercial, financial and agricultural *	$	955,727	$	3,437	$	959,164	$	856,535	$	3,218	$	859,753
Commercial real estate *	1,113,603		4,009		1,117,612		1,069,637		3,546		1,073,183
Construction real estate:
SEPH commercial land and development	2,044		—		2,044		2,195		—		2,195
Remaining commercial	128,046		321		128,367		115,139		300		115,439
Mortgage	36,722		75		36,797		31,148		72		31,220
Installment	6,533		21		6,554		7,322		23		7,345
Residential real estate:
Commercial	410,571		1,014		411,585		417,612		1,038		418,650
Mortgage	1,210,819		1,469		1,212,288		1,189,709		1,548		1,191,257
HELOC	211,415		769		212,184		216,915		803		217,718
Installment	22,638		78		22,716		27,139		97		27,236
Consumer	967,111		3,032		970,143		893,160		2,967		896,127
Leases	2,856		14		2,870		3,171		17		3,188
Total loans	$	5,068,085	$	14,239	$	5,082,324	$	4,829,682	$	13,629	$	4,843,311

* Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

Loans are shown net of deferred origination fees, costs and unearned income of $10.4 million at December 31, 2015 and $9.4 million at December 31, 2014, which represented a net deferred income position in both years.

Overdrawn deposit accounts of $1.7 million and $2.3 million have been reclassified to loans at December 31, 2015 and 2014, respectively, and are included in the commercial, financial and agricultural loan class above.

Credit Quality

The following table presents the recorded investment in nonaccrual loans, accruing troubled debt restructurings ("TDRs"), and loans past due 90 days or more and still accruing by class of loan as of December 31, 2015 and December 31, 2014:

	12/31/2015
(In thousands)	Nonaccrual Loans		Accruing Troubled Debt Restructurings		Loans Past Due 90 Days or More and Accruing		Total Nonperforming Loans
Commercial, financial and agricultural	$	21,676	$	8,947	$	—	$	30,623
Commercial real estate	15,268		2,757		—		18,025
Construction real estate:
SEPH commercial land and development	2,044		—		—		2,044
Remaining commercial	4,162		514		—		4,676
Mortgage	7		110		—		117
Installment	64		114		—		178
Residential real estate:
Commercial	25,063		261		—		25,324
Mortgage	20,378		10,143		851		31,372
HELOC	1,749		873		27		2,649
Installment	1,657		635		4		2,296
Consumer	3,819		734		1,093		5,646
Total loans	$	95,887	$	25,088	$	1,975	$	122,950

	12/31/2014
(In thousands)	Nonaccrual Loans		Accruing Troubled Debt Restructurings		Loans Past Due 90 Days or More and Accruing		Total Nonperforming Loans
Commercial, financial and agricultural	$	18,826	$	297	$	229	$	19,352
Commercial real estate	19,299		2,690		—		21,989
Construction real estate:
SEPH commercial land and development	2,078		—		—		2,078
Remaining commercial	5,558		51		—		5,609
Mortgage	59		94		9		162
Installment	115		125		—		240
Residential real estate:
Commercial	24,336		594		—		24,930
Mortgage	21,869		10,349		1,329		33,547
HELOC	1,879		630		9		2,518
Installment	1,743		779		—		2,522
Consumer	4,631		723		1,133		6,487
Total loans	$	100,393	$	16,332	$	2,709	$	119,434

The following table provides additional information regarding those nonaccrual and accruing TDR loans that are individually evaluated for impairment and those collectively evaluated for impairment as of December 31, 2015 and December 31, 2014.

	12/31/2015						12/31/2014
(In thousands)	Nonaccrual and accruing TDRs		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Nonaccrual and accruing TDRs		Loans individually evaluated for impairment		Loans collectively evaluated for impairment
Commercial, financial and agricultural	$	30,623	$	30,595	$	28	$	19,123	$	19,106	$	17
Commercial real estate	18,025		18,025		—		21,989		21,989		—
Construction real estate:
SEPH commercial land and development	2,044		2,044		—		2,078		2,078		—
Remaining commercial	4,676		4,676		—		5,609		5,609		—
Mortgage	117		—		117		153		—		153
Installment	178		—		178		240		—		240
Residential real estate:
Commercial	25,324		25,324		—		24,930		24,930		—
Mortgage	30,521		—		30,521		32,218		—		32,218
HELOC	2,622		—		2,622		2,509		—		2,509
Installment	2,292		—		2,292		2,522		—		2,522
Consumer	4,553		—		4,553		5,354		—		5,354
Total loans	$	120,975	$	80,664	$	40,311	$	116,725	$	73,712	$	43,013

All of the loans individually evaluated for impairment were evaluated using the fair value of the collateral or the present value of expected future cash flows as the measurement method.

The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2015 and December 31, 2014.

	12/31/2015						12/31/2014
(In thousands)	Unpaid principal balance		Recorded investment		Allowance for loan losses allocated		Unpaid principal balance		Recorded investment		Allowance for loan losses allocated
With no related allowance recorded
Commercial, financial and agricultural	$	32,583	$	18,763	$	—	$	30,601	$	17,883	$	—
Commercial real estate	15,138		14,916		—		27,923		20,696		—
Construction real estate:
SEPH commercial land and development	10,834		2,044		—		11,026		2,078		—
Remaining commercial	2,506		1,531		—		1,427		391		—
Residential real estate:
Commercial	23,798		23,480		—		25,822		23,352		—
With an allowance recorded
Commercial, financial and agricultural	16,155		11,832		1,904		1,251		1,223		981
Commercial real estate	3,195		3,109		381		1,310		1,293		262
Construction real estate:
Remaining commercial	3,145		3,145		1,356		5,218		5,218		1,812
Residential real estate:
Commercial	1,951		1,844		550		1,578		1,578		605
Total	$	109,305	$	80,664	$	4,191	$	106,156	$	73,712	$	3,660

Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. At December 31, 2015 and December 31, 2014, there were $24.2 million and $32.4 million, respectively, of partial charge-offs on loans individually evaluated for impairment with no related allowance recorded and $4.5 million and $45,000, respectively, of partial charge-offs on loans individually evaluated for impairment that also had a specific reserve allocated.

The allowance for loan losses included specific reserves related to loans individually evaluated for impairment at December 31, 2015 and 2014, of $4.2 million and $3.7 million, respectively. These loans with specific reserves had a recorded investment of $19.9 million and $9.3 million as of December 31, 2015 and 2014, respectively.

Interest income on loans individually evaluated for impairment is recognized on a cash basis only when Park expects to receive the entire recorded investment of the loan. The following tables present the average recorded investment and interest income recognized subsequent to impairment on loans individually evaluated for impairment as of and for the years ended December 31, 2015, 2014, and 2013:

			Year ended December 31, 2015
(In thousands)	Recorded Investment as of December 31, 2015		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	30,595	$	20,179	$	340
Commercial real estate	18,025		17,883		550
Construction real estate:
SEPH commercial land and development	2,044		2,066		21
Remaining commercial	4,676		5,666		26
Residential real estate:
Commercial	25,324		24,968		1,026
Consumer	—		—		—
Total	$	80,664	$	70,762	$	1,963

			Year ended December 31, 2014
(In thousands)	Recorded Investment as of December 31, 2014		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	19,106	$	19,518	$	360
Commercial real estate	21,989		31,945		1,027
Construction real estate:
SEPH commercial land and development	2,078		3,658		146
Remaining commercial	5,609		8,784		61
Residential real estate:
Commercial	24,930		28,306		1,084
Consumer	—		403		—
Total	$	73,712	$	92,614	$	2,678

			Year ended December 31, 2013
(In thousands)	Recorded Investment as of December 31, 2013		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	20,727	$	20,523	$	412
Commercial real estate	41,822		41,426		1,151
Construction real estate:
SEPH commercial land and development	4,777		8,723		—
Remaining commercial	10,782		17,829		616
Residential real estate:
Commercial	33,408		34,972		461
Consumer	799		616		—
Total	$	112,315	$	124,089	$	2,640

The following tables present the aging of the recorded investment in past due loans as of December 31, 2015 and December 31, 2014 by class of loan.

	12/31/2015
(In thousands)	Accruing loans past due 30-89 days		Past due nonaccrual loans and loans past due 90 days or more and accruing *		Total past due		Total current		Total recorded investment
Commercial, financial and agricultural	$	670	$	7,536	$	8,206	$	950,958	$	959,164
Commercial real estate	142		530		672		1,116,940		1,117,612
Construction real estate:
SEPH commercial land and development	—		2,044		2,044		—		2,044
Remaining commercial	165		84		249		128,118		128,367
Mortgage	63		7		70		36,727		36,797
Installment	200		46		246		6,308		6,554
Residential real estate:
Commercial	325		19,521		19,846		391,739		411,585
Mortgage	10,569		8,735		19,304		1,192,984		1,212,288
HELOC	487		186		673		211,511		212,184
Installment	426		318		744		21,972		22,716
Consumer	11,458		3,376		14,834		955,309		970,143
Leases	—		—		—		2,870		2,870
Total loans	$	24,505	$	42,383	$	66,888	$	5,015,436	$	5,082,324

* Includes $2.0 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans.

	12/31/2014
(In thousands)	Accruing loans past due 30-89 days		Past due nonaccrual loans and loans past due 90 days or more and accruing *		Total past due		Total current		Total recorded investment
Commercial, financial and agricultural	$	6,482	$	7,508	$	13,990	$	845,763	$	859,753
Commercial real estate	808		8,288		9,096		1,064,087		1,073,183
Construction real estate:
SEPH commercial land and development	—		2,068		2,068		127		2,195
Remaining commercial	166		77		243		115,196		115,439
Mortgage	39		68		107		31,113		31,220
Installment	21		25		46		7,299		7,345
Residential real estate:
Commercial	250		19,592		19,842		398,808		418,650
Mortgage	11,146		10,637		21,783		1,169,474		1,191,257
HELOC	262		387		649		217,069		217,718
Installment	596		464		1,060		26,176		27,236
Consumer	11,304		3,818		15,122		881,005		896,127
Leases	—		—		—		3,188		3,188
Total loans	$	31,074	$	52,932	$	84,006	$	4,759,305	$	4,843,311

* Includes $2.7 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans.

Credit Quality Indicators

Management utilizes past due information as a credit quality indicator across the loan portfolio. Past due information as of December 31, 2015 and 2014 is included in the tables above. The past due information is the primary credit quality indicator within the following classes of loans: (1) mortgage loans and installment loans in the construction real estate segment; (2) mortgage loans, HELOC and installment loans in the residential real estate segment; and (3) consumer loans. The primary credit indicator for commercial loans is based on an internal grading system that grades all commercial loans on a scale from 1 to 8. Credit grades are continuously monitored by the responsible loan officer and adjustments are made when appropriate. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans that are pass-rated (graded a 1 through a 4) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans. Loans classified as special mention have potential weaknesses that require management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of Park’s credit position at some future date. Commercial loans graded 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or the value of the collateral pledged, if any. Loans so classified have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Park will sustain some loss if the deficiencies are not corrected. Commercial loans that are graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Certain 6-rated loans and all 7-rated loans are included within the impaired category. A loan is deemed impaired when management determines the borrower's ability to perform in accordance with the contractual loan agreement is in doubt. Any commercial loan graded an 8 (loss) is completely charged off.

The tables below present the recorded investment by loan grade at December 31, 2015 and December 31, 2014 for all commercial loans:

	12/31/2015
(In thousands)	5 Rated		6 Rated		Impaired		Pass Rated		Recorded Investment
Commercial, financial and agricultural*	$	4,392	$	347	$	30,623	$	923,802	$	959,164
Commercial real estate*	14,880		3,417		18,025		1,081,290		1,117,612
Construction real estate:
SEPH commercial land and development	—		—		2,044		—		2,044
Remaining commercial	2,151		122		4,676		121,418		128,367
Residential real estate:
Commercial	3,280		386		25,324		382,595		411,585
Leases	—		—		—		2,870		2,870
Total Commercial Loans	$	24,703	$	4,272	$	80,692	$	2,511,975	$	2,621,642

* Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

	12/31/2014
(In thousands)	5 Rated		6 Rated		Impaired		Pass Rated		Recorded Investment
Commercial, financial and agricultural*	$	1,874	$	1,201	$	19,123	$	837,555	$	859,753
Commercial real estate*	8,448		1,712		21,989		1,041,034		1,073,183
Construction real estate:
SEPH commercial land and development	—		—		2,078		117		2,195
Remaining commercial	3,349		57		5,609		106,424		115,439
Residential real estate:
Commercial	2,581		598		24,930		390,541		418,650
Leases	—		—		—		3,188		3,188
Total Commercial Loans	$	16,252	$	3,568	$	73,729	$	2,378,859	$	2,472,408

* Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

Troubled Debt Restructuring

Management classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession to the borrower as part of a modification or in the loan renewal process. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. A court's discharge of a borrower's debt in a Chapter 7 bankruptcy is considered a concession when the borrower does not reaffirm the discharged debt.

Certain loans which were modified during the years ended December 31, 2015 and December 31, 2014 did not meet the definition of a TDR as the modification was a delay in a payment that was considered to be insignificant. Management considers a forbearance period of up to three months or a delay in payment of up to 30 days to be insignificant. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. Management reviews all accruing TDRs quarterly to ensure payments continue to be made in accordance with the modified terms.

Management reviews renewals/modifications of loans previously identified as TDRs to consider if it is appropriate to remove the TDR classification. If the borrower is no longer experiencing financial difficulty and the renewal/modification does not contain a concessionary interest rate or other concessionary terms, management considers the potential removal of the TDR classification. If deemed appropriate, the TDR classification is removed as the borrower has complied with the terms of the loan at the date of the renewal/modification and there was a reasonable expectation that the borrower would continue to comply with the terms of the loan subsequent to the date of the renewal/modification. The majority of these TDRs were originally considered restructurings in a prior year as a result of a renewal/modification with an interest rate that was not commensurate with the risk of the underlying loan at the time of the renewal/modification. During the years ended December 31, 2015 and 2014, Park removed the TDR classification on $1.2 million and $2.5 million, respectively, of loans that met the requirements discussed above.

At December 31, 2015 and 2014, there were $41.1 million and $47.5 million, respectively, of TDRs included in the nonaccrual loan totals. At December 31, 2015 and 2014, $19.1 million and $15.7 million, respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured note. As of December 31, 2015 and 2014, there were $25.1 million and $16.3 million, respectively, of TDRs included in accruing loan totals. Management will continue to review the restructured loans and may determine it appropriate to move certain nonaccrual TDRs to accrual status in the future.

At December 31, 2015 and 2014, Park had commitments to lend $2.3 million and $1.4 million, respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR.

The specific reserve related to TDRs at December 31, 2015 and 2014 was $2.3 million and $2.4 million, respectively. Modifications made in 2014 and 2015 were largely the result of renewals, extending the maturity date of the loan, at terms consistent with the original note. These modifications were deemed to be TDRs primarily due to Park’s conclusion that the borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as impaired loans, and thus were also previously evaluated for impairment under ASC 310.  Additional specific reserves of $1.3 million were recorded during the year ended December 31, 2015, as a result of TDRs identified in the 2015 year. Additional specific reserves of $0.7 million were recorded during the year ended December 31, 2014 as a result of TDRs identified in the 2014 year. Additional specific reserves of $1.1 million were recorded during the year ended December 31, 2013 as a result of TDRs identified in the 2013 year.

The terms of certain other loans were modified during the years ended December 31, 2015 and 2014 that did not meet the definition of a TDR. Modified substandard commercial loans which did not meet the definition of a TDR had a total recorded investment as of December 31, 2015 and 2014 of $116,000 and $987,000, respectively. The renewal/modification of these loans: (1) involved a renewal/modification of the terms of a loan to a borrower who was not experiencing financial difficulties, (2) resulted in a delay in a payment that was considered to be insignificant, or (3) resulted in Park obtaining additional collateral or guarantees that improved the likelihood of the ultimate collection of the loan such that the modification was deemed to be at market terms.  Modified consumer loans which did not meet the definition of a TDR had a total recorded investment as of December 31, 2015 and 2014 of $16.5 million and $19.9 million, respectively. Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds.

The following tables detail the number of contracts modified as TDRs during the years ended December 31, 2015, 2014 and 2013 as well as the recorded investment of these contracts at December 31, 2015, 2014, and 2013. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal.

	Year ended December 31, 2015
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	39	$	8,948	$	3,640	$	12,588
Commercial real estate	14	637		3,523		4,160
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	2	513		—		513
Mortgage	1	19		—		19
Installment	—	—		—		—
Residential real estate:
Commercial	11	—		1,185		1,185
Mortgage	39	1,132		2,122		3,254
HELOC	26	315		45		360
Installment	9	—		155		155
Consumer	283	202		888		1,090
Total loans	424	$	11,766	$	11,558	$	23,324

	Year ended December 31, 2014
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	30	$	292	$	431	$	723
Commercial real estate	11	1,184		1,254		2,438
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	2	—		206		206
Mortgage	—	—		—		—
Installment	2	—		56		56
Residential real estate:
Commercial	9	—		866		866
Mortgage	46	32		2,325		2,357
HELOC	10	85		241		326
Installment	10	109		12		121
Consumer	330	244		1,058		1,302
Total loans	450	$	1,946	$	6,449	$	8,395

	Year ended December 31, 2013
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	34	$	7	$	1,334	$	1,341
Commercial real estate	22	—		8,563		8,563
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	3	—		98		98
Mortgage	—	—		—		—
Installment	4	26		25		51
Residential real estate:
Commercial	15	—		2,552		2,552
Mortgage	62	1,967		2,278		4,245
HELOC	16	175		—		175
Installment	13	113		179		292
Consumer	327	805		345		1,150
Total loans	496	$	3,093	$	15,374	$	18,467

Of those loans which were modified and determined to be a TDR during the year ended December 31, 2015, $0.8 million were on nonaccrual status as of December 31, 2014. Of those loans which were modified and determined to be a TDR during the year ended December 31, 2014, $0.7 million were on nonaccrual status as of December 31, 2013. Of those loans which were modified and determined to be a TDR during the year ended December 31, 2013, $5.5 million were on nonaccrual status as of December 31, 2012.

The following table presents the recorded investment in financing receivables which were modified as TDRs within the previous 12 months and for which there was a payment default during the year ended December 31, 2015, December 31, 2014, and December 31, 2013. For this table, a loan is considered to be in default when it becomes 30 days contractually past due under modified terms. The additional allowance for loan loss resulting from the defaults on TDR loans was immaterial.

	Year ended December 31, 2015			Year ended December 31, 2014				Year ended December 31, 2013
(In thousands)	Number of Contracts	Recorded Investment		Number of Contracts		Recorded Investment		Number of Contracts	Recorded Investment
Commercial, financial and agricultural	1	$	1	4		$	206	11	$	771
Commercial real estate	1	626		1		302		11	2,839
Construction real estate:
SEPH commercial land and development	—	—		—		—		—	—
Remaining commercial	—	—		—		—		—	—
Mortgage	—	—		—		—		—	—
Installment	—	—		—		—		1	10
Residential real estate:
Commercial	3	1,005		1		3		4	1,683
Mortgage	12	682		14		810		26	1,533
HELOC	1	5		2		160		—	—
Installment	2	101		2		12		5	72
Consumer	47	434		62		516		74	471
Leases	—	—		—		—		—	—
Total loans	67	$	2,854	$	86	$	2,009	132	$	7,379

Of the $2.9 million in modified TDRs which defaulted during the year ended December 31, 2015, $44,000 were accruing loans and $2.8 million were nonaccrual loans. Of the $2.0 million in modified TDRs which defaulted during the year ended December 31, 2014, $314,000 were accruing loans and $1.7 million were nonaccrual loans. Of the $7.4 million in modified TDRs which defaulted during the year ended December 31, 2013, $397,000 were accruing loans and $7.0 million were nonaccrual loans.

Certain of the Corporation’s executive officers, directors and related entities of directors are loan customers of PNB. As of December 31, 2015 and 2014, credit exposure aggregating approximately $47.0 million and $45.7 million, respectively, was outstanding to such parties. Of this total exposure, approximately $36.0 million was outstanding at each of December 31, 2015 and 2014, with the remaining balance representing available credit. During 2015, new loans and advances on existing loans were made to these executive officers, directors and related entities totaling $5.8 million and $7.1 million, respectively. These extensions of credit were offset by payments of $12.9 million. During 2014, new loans and advances on existing loans were $6.0 million and $6.4 million, respectively. These extensions of credit were offset by payments of $14.1 million.

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Allowance for Loan Losses

12 Months Ended

Dec. 31, 2015

Allowance For Loan Losses [Abstract]

Allowance for Loan Losses

Allowance for Loan Losses

The allowance for loan losses is that amount management believes is adequate to absorb probable incurred credit losses in the loan portfolio based on management’s evaluation of various factors including overall growth in the loan portfolio, an analysis of individual loans, prior and current loss experience, and current economic conditions. A provision for loan losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1 - Summary of Significant Accounting Policies.

Management updates historical losses annually in the fourth quarter, or more frequently as deemed appropriate.

With the inclusion of 2013 net charge-off information, management concluded that it was no longer appropriate to calculate the historical loss average with an even allocation across the five-year period. Rather than apply a 20% allocation to each year in the calculation of the historical annualized loss factor, management determined that it was appropriate to more heavily weight those years with higher losses in the historical loss calculation, given the continued uncertainty in the current economic environment. Specifically, rather than applying equal percentages to each year in the historical loss calculation, management applied more weight to the 2009 through 2011 periods compared to the 2012 and 2013 periods.

Management continued to extend the historical loss period to six years in 2014 and seven years in 2015. Due to the same factors that management considered in 2013, management has continued to apply more weight to the 2009 through 2011 periods compared to the 2012 through 2015 periods.

The activity in the allowance for loan losses for the years ended December 31, 2015, 2014, and 2013 is summarized in the following tables.

	Year ended December 31, 2015
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for credit losses:
Beginning balance	$	10,719		$	8,808		$	8,652		$	14,772		$	11,401		$	—		$	54,352
Charge-offs	2,478			348			470			2,352			8,642			—			14,290
Recoveries	(1,373		)	(2,241		)	(2,092		)	(2,438		)	(3,295		)	(3		)	(11,442		)
Net charge-offs (recoveries)	1,105			(1,893		)	(1,622		)	(86		)	5,347			(3		)	2,848
Provision (Recovery)	$	4,080		$	(1,504	)	$	(1,710	)	$	(1,344	)	$	5,470		$	(2	)	$	4,990
Ending balance	$	13,694		$	9,197		$	8,564		$	13,514		$	11,524		1			$	56,494

	Year ended December 31, 2014
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for credit losses:
Beginning balance	$	14,218		$	15,899		$	6,855		$	14,251		$	8,245		$	—		$	59,468
Charge-offs	3,779			8,003			1,316			3,944			7,738			—			24,780
Recoveries	(1,003		)	(7,759		)	(12,572		)	(2,985		)	(2,671		)	(7		)	(26,997		)
Net charge-offs (recoveries)	2,776			244			(11,256		)	959			5,067			(7		)	(2,217		)
(Recovery) Provision	(723		)	(6,847		)	(9,459		)	1,480			8,223			(7		)	(7,333		)
Ending balance	$	10,719		$	8,808		$	8,652		$	14,772		$	11,401		—			$	54,352

	Year ended December 31, 2013
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for credit losses:
Beginning balance	$	15,635		$	11,736		$	6,841		$	14,759		$	6,566		$	—		$	55,537
Charge-offs	6,160			1,832			1,791			3,207			6,163			—			19,153
Recoveries	(1,314		)	(726		)	(9,378		)	(6,000		)	(2,249		)	(2		)	(19,669		)
Net charge-offs (recoveries)	4,846			1,106			(7,587		)	(2,793		)	3,914			(2		)	(516		)
Provision (Recovery)	3,429			5,269			(7,573		)	(3,301		)	5,593			(2		)	3,415
Ending balance	$	14,218		$	15,899		$	6,855		$	14,251		$	8,245		—			$	59,468

Loans collectively evaluated for impairment in the following tables include all performing loans at December 31, 2015 and 2014, as well as nonperforming loans internally classified as consumer loans. Nonperforming consumer loans are not typically individually evaluated for impairment, but receive a portion of the statistical allocation of the allowance for loan losses. Loans individually evaluated for impairment include all impaired loans internally classified as commercial loans at December 31, 2015 and 2014, which are evaluated for impairment in accordance with GAAP (see Note 1 - Summary of Significant Accounting Policies).

The composition of the allowance for loan losses at December 31, 2015 and 2014 was as follows: 

	December 31, 2015
(In thousands)	Commercial, financial, and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	1,904		$	381		$	1,356		$	550		$	—		$	—		$	4,191
Collectively evaluated for impairment	11,790			8,816			7,208			12,964			11,524			1			52,303
Total ending allowance balance	$	13,694		$	9,197		$	8,564		$	13,514		$	11,524		$	1		$	56,494
Loan Balance:
Loans individually evaluated for impairment	$	30,545		$	18,015		$	6,716		$	25,323		$	—		$	—		$	80,599
Loans collectively evaluated for impairment	925,182			1,095,588			166,629			1,830,120			967,111			2,856			4,987,486
Total ending loan balance	$	955,727		$	1,113,603		$	173,345		$	1,855,443		$	967,111		$	2,856		$	5,068,085
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment	6.23		%	2.11		%	20.19		%	2.17		%	—		%	—		%	5.20		%
Loans collectively evaluated for impairment	1.27		%	0.80		%	4.33		%	0.71		%	1.19		%	0.04		%	1.05		%
Total	1.43		%	0.83		%	4.94		%	0.73		%	1.19		%	0.04		%	1.11		%
Recorded Investment:
Loans individually evaluated for impairment	$	30,595		$	18,025		$	6,720		$	25,324		$	—		$	—		$	80,664
Loans collectively evaluated for impairment	928,569			1,099,587			167,042			1,833,449			970,143			2,870			5,001,660
Total ending recorded investment	$	959,164		$	1,117,612		$	173,762		$	1,858,773		$	970,143		$	2,870		$	5,082,324

	December 31, 2014
(In thousands)	Commercial, financial, and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	981		$	262		$	1,812		$	605		$	—		$	—		$	3,660
Collectively evaluated for impairment	9,738			8,546			6,840			14,167			11,401			—			50,692
Total ending allowance balance	$	10,719		$	8,808		$	8,652		$	14,772		$	11,401		$	—		$	54,352
Loan Balance:
Loans individually evaluated for impairment	$	19,103		$	21,978		$	7,690		$	24,905		$	—		$	—		$	73,676
Loans collectively evaluated for impairment	837,432			1,047,659			148,114			1,826,470			893,160			3,171			4,756,006
Total ending loan balance	$	856,535		$	1,069,637		$	155,804		$	1,851,375		$	893,160		$	3,171		$	4,829,682
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment	5.14		%	1.19		%	23.56		%	2.43		%	—		%	—		%	4.97		%
Loans collectively evaluated for impairment	1.16		%	0.82		%	4.62		%	0.78		%	1.28		%	—		%	1.07		%
Total	1.25		%	0.82		%	5.55		%	0.80		%	1.28		%	—		%	1.13		%
Recorded Investment:
Loans individually evaluated for impairment	$	19,106		$	21,989		$	7,687		$	24,930		$	—		$	—		$	73,712
Loans collectively evaluated for impairment	840,647			1,051,194			148,512			1,829,931			896,127			3,188			4,769,599
Total ending recorded investment	$	859,753		$	1,073,183		$	156,199		$	1,854,861		$	896,127		$	3,188		$	4,843,311

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Loans Held for Sale (Notes)

12 Months Ended

Dec. 31, 2015

Loans Held for Sale [Abstract]

Loans Held for Sale [Table Text Block]

Loans Held for Sale

Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale were $7.3 million and $5.3 million at December 31, 2015 and 2014, respectively. These amounts are included in loans on the Consolidated Balance Sheets and in the residential real estate loan segments in Note 6 - Loans and Note 7 - Allowance for Loan Losses. The contractual balance was $7.2 million and $5.2 million at December 31, 2015 and 2014, respectively. The gain expected upon sale was $95,000 and $80,000 at December 31, 2015 and 2014, respectively. None of these loans were 90 days or more past due or on nonaccrual status as of December 31, 2015 or 2014.

During 2015, Park transferred to held for sale and sold certain commercial loans previously held for investment with a book balance of $144,000, and recognized a gain of $756,000. During 2014, Park transferred certain commercial loans held for investment, with a book balance of $22.0 million, to the loans held for sale portfolio, and subsequently completed the sale of these commercial loans held for sale, recognizing a net gain on sale of $1.9 million.

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Other Real Estate Owned (Notes)

12 Months Ended

Dec. 31, 2015

Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Line Items]

Real Estate Owned [Text Block]

Other Real Estate Owned

The carrying amount of foreclosed properties held at December 31, 2015 and December 31, 2014 are listed below, as well as the recorded investment of loans secured by residential real estate properties for which formal foreclosure proceedings were in process at those dates.

(In thousands)	December 31, 2015		December 31, 2014
OREO:
Commercial real estate	$	8,333	$	6,352
Construction real estate	7,259		11,281
Residential real estate	3,059		4,972
Total OREO	$	18,651	$	22,605
Loans in process of foreclosure:
Residential real estate	$	2,021	$	2,807

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Premises And Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and Equipment

The major categories of premises and equipment and accumulated depreciation are summarized as follows:

December 31 (In thousands)	2015			2014
Land	$	19,123		$	17,836
Buildings	74,525			71,002
Equipment, furniture and fixtures	47,839			42,139
Leasehold improvements	3,878			3,439
Total	$	145,365		$	134,416
Less accumulated depreciation	(85,872		)	(78,937		)
Premises and equipment, net	$	59,493		$	55,479

Depreciation expense amounted to $7.3 million, $7.2 million and $7.3 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The Corporation leases certain premises and equipment accounted for as operating leases. The following is a schedule of the future minimum rental payments required for the next five years under such leases with initial terms in excess of one year: 

(In thousands)
2016	$	1,475
2017	1,276
2018	1,104
2019	1,019
2020	394
Thereafter	520
Total	$	5,788

Rent expense for Park was $1.7 million, $1.7 million and $1.8 million, for the years ended December 31, 2015, 2014 and 2013, respectively.

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Investment in Qualified Affordable Housing

12 Months Ended

Dec. 31, 2015

Investments in Qualified Affordable Housing [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Investment in Qualified Affordable Housing

Park makes certain equity investments in various limited partnerships that sponsor affordable housing projects. The purpose of these investments is to achieve a satisfactory return on capital, help create affordable housing opportunities, and assist the Company to achieve our goals associated with the Community Reinvestment Act.

Previously, these investments were accounted for under the cost method of accounting with amortization of the investment being recorded in other expense and tax benefits recognized in the provision for income taxes. During the first quarter of 2015, Park adopted ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, and elected the proportional amortization method with amortization expense and tax benefits recognized through the provision for income taxes. This ASU is required to be applied retrospectively to all periods presented. As a result of these changes, Park recorded a cumulative-effect adjustment to beginning retained earnings.

The following table summarizes the impact of retrospective application to the balance sheet and income statement for all prior periods presented:

(In thousands)	December 31, 2014
Total assets
As previously reported	$	7,003,256
As reported under the new guidance	7,001,199
Retained earnings
As previously reported	$	486,541
As reported under the new guidance	484,484
Total equity
As previously reported	$	698,598
As reported under the new guidance	696,541

(In thousands)	12 months ended December 31, 2014		12 months ended December 31, 2013
Total other expense
As previously reported	$	195,234	$	188,529
As reported under the new guidance	187,510		181,515
Income tax expense
As previously reported	$	28,602	$	25,131
As reported under the new guidance	36,459		32,503
Net income
As previously reported	$	84,090	$	77,227
As reported under the new guidance	83,957		76,869

The table below details the balances of Park’s affordable housing tax credit investments and related unfunded commitments as of December 31, 2015 and 2014.

(In thousands)	December 31, 2015		December 31, 2014
Affordable housing tax credit investments	$	51,247	$	48,911
Unfunded commitments	20,311		16,629

During the years ended December 31, 2015 and 2014, Park recognized amortization expense of $6.7 million and $6.9 million, respectively, which was included within the provision for income taxes. For the years ended December 31, 2015 and 2014, Park recognized tax credits and other benefits from its affordable housing tax credit investments of $8.9 million and $8.8 million, respectively.

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Deposits

12 Months Ended

Dec. 31, 2015

Deposits [Abstract]

Deposits

Deposits

At December 31, 2015 and 2014, non-interest bearing and interest bearing deposits were as follows:

December 31 (In thousands)	2015		2014
Non-interest bearing	$	1,404,032	$	1,269,296
Interest bearing	3,943,610		3,858,704
Total	$	5,347,642	$	5,128,000

At December 31, 2015, the maturities of time deposits were as follows: 

(In thousands)
2016	$	814,387
2017	221,761
2018	56,744
2019	145,027
2020	52,062
After 5 years	431
Total	$	1,290,412

At December 31, 2015 and 2014, respectively, Park had approximately $21.6 million and $21.9 million of deposits received from executive officers, directors and their related entities.

Time deposits that exceed the FDIC Insurance limit of $250,000 at December 31, 2015 and 2014 were $49.7 million and $64.7 million, respectively.

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Repurchase Agreements (Notes)

12 Months Ended

Dec. 31, 2015

Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]

Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Table Text Block]

Repurchase Agreement Borrowings

Securities sold under agreements to repurchase ("repurchase agreements") with customers represent funds deposited by customers, generally on an overnight basis, that are collateralized by investment securities owned by Park. Repurchase agreements with customers are included in short-term borrowings on the consolidated balance sheets. Park's repurchase agreements with a third-party financial institution are classified as long-term debt on the Consolidated Balance Sheets.

All repurchase agreements are subject to terms and conditions of repurchase/security agreements between Park and the client and are accounted for as secured borrowings. Park's repurchase agreements reflected in short-term borrowings consist of customer accounts and securities which are pledged on an individual security basis.

At December 31, 2015 and December 31, 2014, Park's repurchase agreement borrowings totaled $554 million and $577 million, respectively. At both December 31, 2015 and December 31, 2014, $300 million of Park's repurchase agreement borrowings were classified as long-term debt with the remaining amount being classified as short-term debt on the Consolidated Balance Sheets. These borrowings were collateralized with U.S. government and agency securities with a carrying value of $622 million and $664 million at December 31, 2015 and December 31, 2014, respectively. Declines in the value of the collateral would require Park to pledge additional securities. As of December 31, 2015 and December 31, 2014, Park had $585 million and $347 million, respectively, of available unpledged securities.

The following table presents the carrying value of Park's repurchase agreements by remaining contractual maturity at December 31, 2015 and December 31, 2014:

	December 31, 2015
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government and agency securities	$	247,618	$	2,239	$	—	$	304,385	$	554,242
	December 31, 2014
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government and agency securities	$	268,427	$	164	$	4,940	$	303,449	$	576,980

See Note 14 - Short-Term Borrowings for additional information related to repurchase agreements classified as short-term borrowings. See Note 15 - Long-Term Debt for additional information related to repurchase agreements classified as long-term debt.

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Short-Term Borrowings

12 Months Ended

Dec. 31, 2015

Short-term Debt [Abstract]

Short-Term Borrowings

Short-Term Borrowings

Short-term borrowings were as follows:

December 31 (In thousands)	2015		2014
Securities sold under agreements to repurchase	$	254,242	$	276,980
FHLB advances	140,000		—
Total short-term borrowings	$	394,242	$	276,980

The outstanding balances for all short-term borrowings as of December 31, 2015 and 2014 and the weighted-average interest rates as of and paid during each of the years then ended were as follows: 

(In thousands)	Repurchase agreements			FHLB Advances
2015
Ending balance	$	254,242		$	140,000
Highest month-end balance	278,324			140,000
Average daily balance	257,622			1,096
Weighted-average interest rate:
As of year-end	0.17		%	0.56		%
Paid during the year	0.18		%	0.59		%
2014
Ending balance	$	276,980		$	—
Highest month-end balance	307,025			—
Average daily balance	262,709			561
Weighted-average interest rate:
As of year-end	0.18		%	—		%
Paid during the year	0.19		%	0.10		%

During 2014 and 2015, outstanding FHLB advances were collateralized by investment securities owned by the Corporation’s bank subsidiary and by various loans pledged under a blanket agreement by the Corporation’s bank subsidiary. At December 31, 2015 and 2014, $21 million and $28 million, respectively, of investment securities were pledged as collateral for FHLB advances. At December 31, 2015 and 2014, $1,985 million and $2,038 million, respectively, of commercial real estate and residential mortgage loans were pledged under a blanket agreement to the FHLB by Park’s bank subsidiary. See Note 13 - Repurchase Agreement Borrowings for information related to investment securities collateralizing repurchase agreements.

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Long-Term Debt

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt is listed below:

December 31,	2015					2014
(In thousands)	Outstanding Balance			Average Rate		Outstanding Balance			Average Rate
Total Federal Home Loan Bank advances by year of maturity:
2015	—			—	%	51,000			2.00	%
2016	—			—	%	26,000			0.92	%
2017	50,000			1.25	%	51,000			1.28	%
2018	150,000			2.04	%	125,049			2.11	%
2019	75,000			1.96	%	75,333			1.97	%
2020	25,000			2.14	%	25,462			2.19	%
Thereafter	150,000			3.32	%	150,699			3.33	%
Total	$	450,000		2.37	%	504,543			2.30	%
Total broker repurchase agreements by year of maturity:
2017	300,000			1.75	%	300,000			1.75	%
Total	$	300,000		1.75	%	$	300,000		1.75	%
Total combined long-term debt by year of maturity:
2015	—			—	%	51,000			2.00	%
2016	—			—	%	26,000			0.92	%
2017	350,000			1.68	%	351,000			1.68	%
2018	150,000			2.04	%	125,049			2.11	%
2019	75,000			1.96	%	75,333			1.97	%
2020	25,000			2.14	%	25,462			2.19	%
Thereafter	150,000			3.32	%	150,699			3.33	%
Total	$	750,000		2.12	%	$	804,543		2.09	%
Prepayment penalty	(11,895		)	—		(17,941		)	—
Total long-term debt	$	738,105		2.16	%	$	786,602		2.89	%

On November 30, 2012, Park restructured $300 million in repurchase agreements at a rate of 1.75%. As part of this restructuring, Park paid a prepayment penalty of $25 million. The penalty is being amortized as an adjustment to interest expense over the remaining term of the repurchase agreements using the effective interest method, resulting in an effective interest rate of 3.55%. Of the $25 million prepayment penalty, $9.8 million remained to be amortized as of December 31, 2015. The remaining amortization will be $5.1 million in 2016 and $4.7 million in 2017.

On November 21, 2014, Park restructured $50 million in FHLB advances at a rate of 1.25%. As part of this restructuring, Park paid a prepayment penalty of $3.2 million. The penalty is being amortized as an adjustment to interest expense over the remaining term of the advances using the effective interest method, resulting in an effective interest rate of 3.52%. Of the $3.2 million prepayment penalty, $2.1 million remained to be amortized as of December 31, 2015. The remaining amortization will be $1.1 million in 2016 and $1.0 million in 2017.

On March 30, 2015, Park prepaid $54.5 million of FHLB advances, with a weighted average rate of 1.59%, resulting in a prepayment penalty of $532,000.

Park had approximately $150.0 million of long-term debt at December 31, 2015 with a contractual maturity longer than five years. However, all of this debt is callable by the issuer in 2016.

At December 31, 2015 and 2014, FHLB advances were collateralized by investment securities owned by PNB’s banking divisions and by various loans pledged under a blanket agreement by PNB's banking divisions. At December 31, 2015 and 2014, $21 million and $28 million, respectively, of investment securities were pledged as collateral for FHLB advances. At December 31, 2015 and 2014, $1,985 million and $2,038 million, respectively, of commercial real estate and residential mortgage loans were pledged under a blanket agreement to the FHLB by Park's bank subsidiary. See Note 13 - RepurchaseAgreement Borrowings for information related to investment securities collateralizing repurchase agreements.

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Subordinated Debentures/Notes

12 Months Ended

Dec. 31, 2015

Long-term Debt, Unclassified [Abstract]

Subordinated Debentures/Notes

Subordinated Notes

As part of the acquisition of Vision's parent bank holding company ("Vision Parent") on March 9, 2007, Park became the successor to Vision Parent under (i) the Amended and Restated Trust Agreement of Vision Bancshares Trust I (the “Trust”), dated as of December 5, 2005, (ii) the Junior Subordinated Indenture, dated as of December 5, 2005, and (iii) the Guarantee Agreement, also dated as of December 5, 2005.

On December 1, 2005, Vision Parent formed a wholly-owned Delaware statutory business trust, Vision Bancshares Trust I (“Trust I”), which issued $15.0 million of Trust I's floating rate preferred securities (the “Trust Preferred Securities”) to institutional investors. These Trust Preferred Securities qualify as Tier I capital under FRB guidelines. All of the common securities of Trust I are owned by Park. The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by Trust I to purchase $15.5 million of junior subordinated notes, which carry a floating rate based on three-month LIBOR plus 148 basis points. The debentures represent the sole asset of Trust I. The Trust Preferred Securities accrue and pay distributions at a floating rate of three-month LIBOR plus 148 basis points per annum. The Trust Preferred Securities are mandatorily redeemable upon maturity of the notes in December 2035, or upon earlier redemption as provided in the notes. Park has the right to redeem the notes purchased by Trust I in whole or in part, on or after December 30, 2010. As specified in the indenture, if the notes are redeemed prior to maturity, the redemption price will be the principal amount, plus any unpaid accrued interest. In accordance with GAAP, Trust I is not consolidated with Park’s financial statements, but rather the subordinated notes are reflected as a liability.

On December 23, 2009, Park entered into a Note Purchase Agreement, dated December 23, 2009, with 38 purchasers (the “2009 Purchasers”). Under the terms of the Note Purchase Agreement, the 2009 Purchasers purchased from Park an aggregate principal amount of $35.25 million of 10% Subordinated Notes due December 23, 2019 (the “2009 Notes”). The 2009 Notes were intended to qualify as Tier 2 capital under applicable rules and regulations of the FRB. The 2009 Notes could not be prepaid in any amount prior to December 23, 2014; however, subsequent to that date, Park could prepay, without penalty, all or a portion of the principal amount outstanding. Of the $35.25 million in 2009 Notes, $14.05 million were purchased by related parties. The 2009 Notes were prepaid in full on December 24, 2014, together with accrued interest.

On April 20, 2012, Park entered into a Note Purchase Agreement, dated April 20, 2012 (the “2012 Purchase Agreement”), with 56 purchasers (the "2012 Purchasers"). Under the terms of the 2012 Purchase Agreement, the 2012 Purchasers purchased from Park an aggregate principal amount of $30 million of 7% Subordinated Notes due April 20, 2022 (the "2012 Notes"). The 2012 Notes are intended to qualify as Tier 2 capital under applicable rules and regulations of the FRB. Each 2012 Note was purchased at a purchase price of 100% of the principal amount thereof. The 2012 Notes may not be prepaid by Park prior to April 20, 2017. From and after April 20, 2017, Park may prepay all, or from time to time, any part of the 2012 Notes at 100% of the principal amount (plus accrued interest) without penalty, subject to any requirement under FRB regulations to obtain prior approval from the FRB before making any prepayment.

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Share-Based Compensation

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Plan

Share-Based Compensation

The Park National Corporation 2013 Long-Term Incentive Plan (the "2013 Incentive Plan") was adopted by the Board of Directors of Park on January 28, 2013 and was approved by Park's shareholders at the Annual Meeting of Shareholders on April 22, 2013. The 2013 Incentive Plan makes equity-based awards and cash-based awards available for grant to participants in the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted common shares, restricted stock unit awards that may be settled in common shares, cash or a combination of the two, unrestricted common shares and cash-based awards. Under the 2013 Incentive Plan, 600,000 common shares are authorized to be issued and delivered in connection with grants under the 2013 Incentive Plan. The common shares to be issued and delivered under the 2013 Incentive Plan may consist of either common shares currently held or common shares subsequently acquired by Park as treasury shares, including common shares purchased in the open market or in private transactions. No awards may be made under the 2013 Incentive Plan after April 22, 2023. At December 31, 2015, 524,100 common shares were available for future grants under the 2013 Incentive Plan.

During 2015, 2014, and 2013, Park granted 10,150, 10,200, and 10,550 common shares, respectively, to directors of Park and to directors of Park's bank subsidiary PNB (and its divisions) under the 2013 Incentive Plan.  The common shares granted to directors were not subjected to a vesting period and resulted in expense of $963,000, $801,000, and $850,000 in 2015, 2014, and 2013, respectively, which is included in Professional fees and services on the Consolidated Income Statement. 

On January 24, 2014, the Compensation Committee of the Board of Directors of Park granted awards of an aggregate of 21,975 performance-based restricted stock units (“PBRSUs”) to certain employees of Park, which grants were effective on January 24, 2014. On December 16, 2014, the Compensation Committee of the Board of Directors of Park granted awards of an aggregate of 23,025 PBRSUs to certain employees of Park, which grants were effective on January 2, 2015. The number of PBRSUs earned or settled will depend on certain performance conditions and are also subject to service-based vesting. None of the PBRSUs have vested as of December 31, 2015. As of December 31, 2015, 200 PBRSUs have been forfeited.

Share-based compensation expense of $865,000 and $458,000 was recognized for the years ended December 31, 2015 and 2014, respectively, related to PBRSU awards to employees. Park expects to recognize additional share-based compensation expense of approximately $734,000 through the first quarter of 2018 related to PBRSUs granted in 2014 and approximately $1.2 million through the first quarter of 2019 related to PBRSUs granted in 2015. No share-based compensation expense was recognized in 2013 as there were no outstanding awards held by employees.

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Benefit Plans

12 Months Ended

Dec. 31, 2015

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Benefit Plans

Benefit Plans

The Corporation has a noncontributory Defined Benefit Pension Plan (the “Pension Plan”) covering substantially all of the employees of the Corporation and its subsidiaries. The Pension Plan provides benefits based on an employee’s years of service and compensation.

There were no pension contributions in 2014 or 2015 and there is no contribution expected in 2016.

Using an accrual measurement date of December 31, 2015 and 2014, plan assets and benefit obligation activity for the Pension Plan are listed below:

(In thousands)	2015			2014
Change in fair value of plan assets
Fair value at beginning of measurement period	$	160,598		$	152,739
Actual return on plan assets	(58		)	15,511
Benefits paid	(7,042		)	(7,652		)
Fair value at end of measurement period	$	153,498		$	160,598
Change in benefit obligation
Projected benefit obligation at beginning of measurement period	$	109,328		$	89,179
Service cost	5,368			4,331
Interest cost	4,695			4,577
Actuarial (gains) loss	(10,104		)	18,893
Benefits paid	(7,042		)	(7,652		)
Projected benefit obligation at the end of measurement period	$	102,245		$	109,328
Funded status at end of year (fair value of plan assets less benefit obligation)	$	51,253		$	51,270

 The asset allocation for the Pension Plan as of each measurement date, by asset category, was as follows:

		Percentage of Plan Assets
Asset category	Target Allocation	2015		2014
Equity securities	50% - 100%	85	%	85	%
Fixed income and cash equivalents	remaining balance	15	%	15	%
Total		100	%	100	%

The investment policy, as established by the Retirement Plan Committee, is to invest assets according to the target allocation stated above. Assets will be reallocated periodically based on the investment strategy of the Retirement Plan Committee. The investment policy is reviewed periodically.

The expected long-term rate of return on plan assets used to measure the benefit obligation was 7.25% as of December 31, 2015 and 2014. This return was based on the expected return of each of the asset categories, weighted based on the median of the target allocation for each class.

The accumulated benefit obligation for the Pension Plan was $86.1 million and $92.0 million at December 31, 2015 and 2014, respectively.

On November 17, 2009, the Park Pension Plan completed the purchase of 115,800 common shares of Park for $7.0 million or $60.45 per share. At December 31, 2015 and 2014, the fair value of the 115,800 common shares held by the Pension Plan was $10.5 million, or $90.48 per share and $10.2 million, or $88.48 per share, respectively.

The weighted average assumptions used to determine benefit obligations at December 31, 2015, 2014 and 2013 were as follows:

	2015		2014		2013
Discount rate	4.88	%	4.42	%	5.30	%
Rate of compensation increase
Under age 30	10.00	%	10.00	%	10.00	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40 and over	3.00	%	3.00	%	3.00	%

The estimated future pension benefit payments reflecting expected future service for the next ten years are shown below (in thousands):

2016	$	5,010
2017	5,321
2018	5,800
2019	6,780
2020	7,317
2021-2025	45,831
Total	$	76,059

The following table shows ending balances of accumulated other comprehensive loss at December 31, 2015 and 2014.

(In thousands)	2015			2014
Prior service cost	$	—		$	(15	)
Net actuarial loss	(23,618		)	(22,855		)
Total	(23,618		)	(22,870		)
Deferred taxes	8,267			8,005
Accumulated other comprehensive loss	$	(15,351	)	$	(14,865	)

Using an actuarial measurement date of December 31 for 2015, 2014 and 2013, components of net periodic benefit cost and other amounts recognized in other comprehensive (loss) income were as follows:

(In thousands)	2015			2014			2013
Components of net periodic benefit cost and other amounts recognized in other comprehensive (loss) income
Service cost	$	(5,368	)	$	(4,331	)	$	(4,817	)
Interest cost	(4,695		)	(4,577		)	(4,223		)
Expected return on plan assets	11,420			10,869			9,536
Amortization of prior service cost	(15		)	(19		)	(20		)
Recognized net actuarial loss	(637		)	—			(2,703		)
Net periodic benefit income (cost)	$	705		$	1,942		$	(2,227	)
Change to net actuarial (loss) gain for the period	$	(1,400	)	$	(14,276	)	$	30,409
Amortization of prior service cost	15			19			20
Amortization of net loss	637			—			2,703
Total recognized in other comprehensive (loss) income	(748		)	(14,257		)	33,132
Total recognized in net benefit cost and other comprehensive (loss) income	$	(43	)	$	(12,315	)	$	30,905

There are no estimated prior service costs for the Pension Plan to be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year. The estimated net actuarial loss expected to be recognized in the next fiscal year is $773,000.

The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2015, 2014 and 2013 are listed below:

	2015		2014		2013
Discount Rate	4.42	%	5.30	%	4.47	%
Rate of compensation increase
Under age 30	10.00	%	10.00	%	10.00	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40 and over	3.00	%	3.00	%	3.00	%
Expected long-term return on plan assets	7.25	%	7.25	%	7.50	%

The Pension Plan maintains cash in a PNB savings account. The Pension Plan cash balance was $0.7 million at December 31, 2015.

GAAP defines fair value as the price that would be received by Park for an asset or paid by Park to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date, using the most advantageous market for the asset or liability. The fair values of equity securities, consisting of mutual fund investments and common stock (U.S. large cap) held by the Pension Plan and the fixed income and cash equivalents, are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs). The fair value of Pension Plan assets at December 31, 2015 was $153.5 million. At December 31, 2015, $135.0 million of equity investments and cash in the Pension Plan were categorized as Level 1 inputs; $18.5 million of plan investments in corporate (U.S. large cap) and U.S. Government sponsored entity bonds were categorized as Level 2 inputs, as fair value was based on quoted market prices of comparable instruments; and no investments were categorized as Level 3 inputs. The fair value of Pension Plan assets was $160.6 million at December 31, 2014. At December 31, 2014, $141.1 million of investments in the Pension Plan were categorized as Level 1 inputs; $19.5 million were categorized as Level 2; and no investments were categorized as Level 3.

The Corporation has a voluntary salary deferral plan covering substantially all of the employees of the Corporation and its subsidiaries. Eligible employees may contribute a portion of their compensation subject to a maximum statutory limitation. The Corporation provides a matching contribution established annually by the Corporation. Contribution expense for the Corporation was $1.2 million, $1.1 million, and $1.1 million for 2015, 2014 and 2013, respectively.

The Corporation has entered into Supplemental Executive Retirement Benefits Agreements (the "SERP Agreements") with certain key officers of the Corporation and its subsidiaries which provide defined pension benefits in excess of limits imposed by federal tax law. The accrued benefit cost for the SERP Agreements totaled $8.0 million and $7.6 million for 2015 and 2014, respectively. The expense for the Corporation was $1.1 million for 2015, $1.5 million for 2014 and $28,000 for 2013.

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Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax assets and liabilities are as follows:

December 31 (In thousands)	2015			2014
Deferred tax assets:
Allowance for loan losses	$	19,773		$	19,023
Accumulated other comprehensive loss – Pension Plan	8,266			8,005
Accumulated other comprehensive loss – Unrealized losses on securities	157			—
Deferred compensation	3,908			3,820
OREO valuation adjustments	2,418			3,984
Net deferred loan fees	1,204			933
Deferred contract bonus	1,031			—
Other	4,171			4,338
Total deferred tax assets	$	40,928		$	40,103
Deferred tax liabilities:
Accumulated other comprehensive income – Unrealized gains on securities	—			677
Deferred investment income	10,199			10,199
Pension plan	26,205			25,949
Mortgage servicing rights	3,153			3,015
Partnership adjustments	560			865
Other	872			804
Total deferred tax liabilities	$	40,989		$	41,509
Net deferred tax asset (liability)	$	(61	)	$	(1,406	)

Park performs an analysis to determine if a valuation allowance against deferred tax assets is required in accordance with GAAP. Management has determined that it is not required to establish a valuation allowance against the December 31, 2015 or 2014 deferred tax assets in accordance with GAAP since it is more likely than not that the deferred tax assets will be fully utilized in future periods.

The components of the provision for federal income taxes are shown below:

December 31, (In thousands)	2015			2014		2013
Currently payable
Federal	$	32,817		$	33,931	$	34,435
Deferred
Federal	(250		)	2,528		(1,932		)
Total	$	32,567		$	36,459	$	32,503

The following is a reconciliation of income tax expense to the amount computed at the statutory rate of 35% for the years ended December 31, 2015, 2014 and 2013.

	2015		2014		2013
Statutory federal corporate tax rate	35.0	%	35.0	%	35.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest	(0.5	)%	(0.5	)%	(0.8	)%
Bank owned life insurance	(1.8	)%	(1.4	)%	(1.6	)%
Investments in qualified affordable housing projects, net of tax benefits	(1.9	)%	(1.6	)%	(1.7	)%
Other tax credits	(0.9	)%	—	%	—	%
KSOP dividend deduction	(1.0	)%	(1.0	)%	(1.1	)%
Other	(0.2	)%	(0.2	)%	(0.1	)%
Effective tax rate	28.7	%	30.3	%	29.7	%

Park and its subsidiaries do not pay state income tax to the state of Ohio, but pay a franchise tax based on equity. The franchise tax expense is included in the state tax expense and is shown in “State taxes” on Park’s Consolidated Statements of Income.

Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.

(In thousands)	2015			2014			2013
January 1 Balance	$	532		$	518		$	517
Additions based on tax positions related to the current year	80			76			74
Additions for tax positions of prior years	16			14			4
Reductions for tax positions of prior years	—			—			—
Reductions due to statute of limitations	(70		)	(76		)	(77		)
December 31 Balance	$	558		$	532		$	518

The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in the future periods at December 31, 2015, 2014 and 2013 was $432,000, $413,000 and $403,000, respectively. Park does not expect the total amount of unrecognized tax benefits to significantly increase or decrease during the next year.

The (income)/expense related to interest and penalties recorded on unrecognized tax benefits in the Consolidated Statements of Income for the years ended December 31, 2015 and 2013 was $2,000 and $(500), respectively. There was no expense related to interest and penalties for the year ending 2014. The amount accrued for interest and penalties at December 31, 2015, 2014 and 2013 was $69,000, $67,000 and $67,000, respectively.

Park and its subsidiaries are subject to U.S. federal income tax and income tax in various state jurisdictions. The Corporation is subject to routine audits of tax returns by the Internal Revenue Service and states in which we conduct business. No material adjustments have been made on closed federal and state tax audits. All tax years ending prior to December 31, 2012 are closed to examination by the federal and state taxing authorities.

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Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2015

Other Comprehensive Income (Loss) [Abstract]

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

Other comprehensive income (loss) components, net of tax, are shown in the following table for the years ended December 31, 2015, 2014 and 2013.

Year ended December 31, (in thousands)		Changes in Pension Plan assets and benefit obligations			Unrealized gains and losses on available-for-sale securities			Total
Beginning balance at December 31, 2014		$	(14,865	)	$	1,257		$	(13,608	)
	Other comprehensive (loss) before reclassifications	(910		)	(1,549		)	(2,459		)
	Amounts reclassified from accumulated other comprehensive loss	424			—			424
Net current period other comprehensive loss		(486		)	(1,549		)	(2,035		)
Ending balance at December 31, 2015		$	(15,351	)	$	(292	)	$	(15,643	)
Beginning balance at December 31, 2013		$	(5,598	)	$	(29,821	)	$	(35,419	)
	Other comprehensive (loss) gain before reclassifications	(9,279		)	30,325			21,046
	Amounts reclassified from accumulated other comprehensive loss	12			753			765
Net current period other comprehensive (loss) income		(9,267		)	31,078			21,811
Ending balance at December 31, 2014		$	(14,865	)	$	1,257		$	(13,608	)
Beginning balance at December 31, 2012		$	(27,134	)	$	9,616		$	(17,518	)
	Other comprehensive gain (loss) before reclassifications	19,766			(39,448		)	(19,682		)
	Amounts reclassified from accumulated other comprehensive loss	1,770			11			1,781
Net current period other comprehensive income (loss)		21,536			(39,437		)	(17,901		)
Ending balance at December 31, 2013		$	(5,598	)	$	(29,821	)	$	(35,419	)

The following table provides information concerning amounts reclassified out of accumulated other comprehensive loss for the years ended December 31, 2015, 2014 and 2013:

		Amount Reclassified from Accumulated Other Comprehensive Income (Loss)						Affected Line Item in the Statement of Income
(In thousands)		2015		2014		2013
Amortization of defined benefit pension items
	Amortization of prior service cost	$	15	$	19	$	20	Employee benefits
	Amortization of net loss	637		—		2,703		Employee benefits
Total income before income taxes		652		19		2,723		Total income before income taxes
	Federal income taxes	228		7		953		Federal income taxes
	Net of tax	$	424	$	12	$	1,770	Net of tax
Unrealized gains & losses on available for sale securities
	Loss on sale of investment securities	$	—	$	1,158	$	—	Gain (loss) on sale of investment securities
	Other than temporary impairment	—		—		17		Miscellaneous expense
Total income before income taxes		—		1,158		17		Total income before income taxes
	Federal income taxes	—		405		6		Federal income taxes
	Net of tax	$	—	$	753	$	11	Net of tax

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Earnings Per Common Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

GAAP requires the reporting of basic and diluted earnings per common share. Basic earnings per common share excludes any dilutive effects of restricted stock units.

The following table sets forth the computation of basic and diluted earnings per common share:

Year ended December 31 (In thousands, except share data)	2015		2014		2013
Numerator:
Net income available to common shareholders	$	81,012	$	83,957	$	76,869
Denominator:
Basic earnings per common share:
Weighted-average common shares outstanding	15,364,281		15,394,971		15,412,365
Effect of dilutive securities – performance based restricted stock units	40,459		18,861		—
Diluted earnings per common share:
Adjusted weighted-average shares and assumed vesting	15,404,740		15,413,832		15,412,365
Earnings per common share:
Basic earnings per common share	$	5.27	$	5.45	$	4.99
Diluted earnings per common share	$	5.26	$	5.45	$	4.99

Park awarded 23,025 and 21,975 PBRSUs to certain employees during the years ended December 31, 2015 and 2014, respectively. The PBRSUs vest based on service and performance conditions. The dilutive effect of the PBRSUs was the addition of 40,459 and 18,861 common shares for the years ended December 31, 2015 and 2014, respectively.

During the years ended December 31, 2015 and 2014, Park repurchased 71,700 and 29,700 common shares, respectively, to fund the PBRSUs and common shares awarded to directors of Park and to directors of Park's subsidiary PNB (and its divisions).

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Dividend Restrictions

12 Months Ended

Dec. 31, 2015

Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]

Dividend Restrictions

Dividend Restrictions

Bank regulators limit the amount of dividends a subsidiary bank can declare in any calendar year without obtaining prior approval. At December 31, 2015, approximately $107.5 million of the total shareholders’ equity of PNB was available for the payment of dividends to the Corporation, without approval by the applicable regulatory authorities.

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Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations Of Credit Risk

12 Months Ended

Dec. 31, 2015

Risks and Uncertainties [Abstract]

Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentration of Credit Risk

Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk

The Corporation is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include loan commitments and standby letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements.

The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Since many of the loan commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers.

The total amounts of off-balance sheet financial instruments with credit risk were as follows:

December 31 (In thousands)	2015		2014
Loan commitments	$	888,411	$	869,793
Standby letters of credit	12,326		12,473

The loan commitments are generally for variable rates of interest.

The Corporation grants retail, commercial and commercial real estate loans to customers primarily located in Ohio. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.

Although the Corporation has a diversified loan portfolio, a substantial portion of the borrowers’ ability to honor their contracts is dependent upon the economic conditions in each borrower’s geographic location and industry.

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Loan Servicing

12 Months Ended

Dec. 31, 2015

Transfers and Servicing of Financial Assets [Abstract]

Loan Servicing

Loan Servicing

Park serviced sold mortgage loans of $1,276 million at December 31, 2015, compared to $1,265 million at December 31, 2014 and $1,326 million at December 31, 2013. At December 31, 2015, $5.4 million of the sold mortgage loans were sold with recourse compared to $7.0 million at December 31, 2014. Management closely monitors the delinquency rates on the mortgage loans sold with recourse. As of December 31, 2015 and 2014, management had established a reserve of $454,000 and $379,000, respectively, to account for future loan repurchases.

The amortization of mortgage loan servicing rights is included within “Other service income”. Generally, mortgage servicing rights are capitalized and amortized on an individual sold loan basis. When a sold mortgage loan is paid off, the related mortgage servicing rights are fully amortized.

Activity for mortgage servicing rights and the related valuation allowance follows:

December 31 (In thousands)	2015			2014			2013
Mortgage servicing rights:
Carrying amount, net, beginning of year	$	8,613		$	9,013		$	7,763
Additions	1,748			1,026			2,436
Amortization	(1,637		)	(1,631		)	(2,479		)
Change in valuation allowance	284			205			1,293
Carrying amount, net, end of year	$	9,008		$	8,613		$	9,013
Valuation allowance:
Beginning of year	$	826		$	1,031		$	2,324
Change in valuation allowance	(284		)	(205		)	(1,293		)
End of year	$	542		$	826		$	1,031

The fair value of mortgage servicing rights was $9.6 million and $9.1 million at December 31, 2015 and 2014, respectively. The fair value of mortgage servicing rights at December 31, 2015 was established using a discount rate of 10% and constant prepayment speeds ranging from 6.3% to 22.0%. The fair value of mortgage servicing rights at December 31, 2014 was established using a discount rate of 10% and constant prepayment speeds ranging from 5.7% to 22.3%.

Servicing fees included in other service income were $3.4 million, $3.5 million and $3.6 million for the years ended December 31, 2015, 2014 and 2013, respectively.

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Fair Values

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Values

Fair Value

 The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that Park uses to measure fair value are as follows:

• Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that Park has the ability to access as of the measurement date.

• Level 2: Level 1 inputs for assets or liabilities that are not actively traded. Also consists of an observable market price for a similar asset or liability. This includes the use of “matrix pricing” to value debt securities absent the exclusive use of quoted prices.

• Level 3: Consists of unobservable inputs that are used to measure fair value when observable market inputs are not available. This could include the use of internally developed models, financial forecasting and similar inputs.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability between market participants at the balance sheet date. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and Park must use other valuation methods to develop a fair value. The fair value of impaired loans is typically based on the fair value of the underlying collateral, which is estimated through third-party appraisals or internal estimates of collateral values in accordance with Park's valuation requirements per its commercial and real estate loan policies.

Assets and Liabilities Measured at Fair Value on a Recurring Basis:

The following table presents assets and liabilities measured at fair value on a recurring basis:

Fair Value Measurements at December 31, 2015 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2015
Assets
Investment securities:
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	—	$	522,063	$	—	$	522,063
U.S. Government sponsored entities’ asset-backed securities	—		911,493		—		911,493
Equity securities	1,941		—		769		2,710
Mortgage loans held for sale	—		7,306		—		7,306
Mortgage IRLCs	—		165		—		165
Liabilities
Fair value swap	$	—	$	—	$	226	$	226

Fair Value Measurements at December 31, 2014 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2014
Assets
Investment securities:
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	—	$	538,064	$	—	$	538,064
U.S. Government sponsored entities’ asset-backed securities	—		761,153		—		761,153
Equity securities	1,922		—		776		2,698
Mortgage loans held for sale	—		5,264		—		5,264
Mortgage IRLCs	—		70		—		70
Liabilities
Fair value swap	$	—	$	—	$	226	$	226

There were no transfers between Level 1 and Level 2 during 2015 or 2014. Management’s policy is to transfer assets or liabilities from one level to another when the methodology to obtain the fair value changes such that there are more or fewer unobservable inputs as of the end of the reporting period.

The following methods and assumptions were used by the Company in determining fair value of the financial assets and liabilities discussed above:

Investment securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows.

Fair value swap: The fair value of the swap agreement entered into with the purchaser of the Visa Class B shares represents an internally developed estimate of the exposure based upon probability-weighted potential Visa litigation losses.

Mortgage Interest Rate Lock Commitments (IRLCs): IRLCs are based on current secondary market pricing and are classified as Level 2.

Mortgage loans held for sale: Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale are estimated using security prices for similar product types and, therefore, are classified in Level 2.

The table below is a reconciliation of the beginning and ending balances of the Level 3 inputs for the years ended December 31, 2015 and 2014, for financial instruments measured on a recurring basis and classified as Level 3:

Level 3 Fair Value Measurements
(In thousands)	Equity Securities			Fair Value Swap
Balance at January 1, 2015	$	776		$	(226	)
Total Gains (Losses)
Included in earnings - realized	—			—
Included in earnings - unrealized	—			—
Included in other comprehensive loss	(7		)	—
Purchases, sales, issuances and settlements, other, net	—			—
Re-evaluation of fair value swap	—			—
Balance at December 31, 2015	$	769		$	(226	)
Balance at January 1, 2014	$	759		$	(135	)
Total Gains (Losses)
Included in earnings - realized	—			—
Included in earnings - unrealized	—			—
Included in other comprehensive income	17			—
Purchases, sales, issuances and settlements, other, net	—			—
Re-evaluation of fair value swap	—			(91		)
Balance at December 31, 2014	$	776		$	(226	)

Assets and liabilities measured at fair value on a nonrecurring basis:

The following methods and assumptions were used by the Company in determining the fair value of assets and liabilities measured at fair value on a nonrecurring basis described below:

Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value have been partially charged-off or receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is generally based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value. Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Additionally, updated valuations are obtained annually for all impaired loans in accordance with Company policy.

Other Real Estate Owned (OREO): Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less costs to sell when acquired. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Fair value is based on recent real estate appraisals and is updated at least annually. These appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales approach and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments result in a Level 3 classification of the inputs for determining fair value.

Appraisals for both collateral dependent impaired loans and OREO are performed by licensed appraisers. Appraisals are generally obtained to support the fair value of collateral. In general, there are three types of appraisals, real estate appraisals, income approach appraisals and lot development loan appraisals, received by the Company. These are discussed below:

• Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. Appraisers may make adjustments to the sales prices of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management generally applies a 15% discount to real estate appraised values which management expects will cover all disposition costs (including selling costs). This 15% is based on historical discounts to appraised values on sold OREO properties.

• Income approach appraisals typically incorporate the annual net operating income of the business divided by an appropriate capitalization rate, as determined by the appraiser. Management generally applies a 15% discount to income approach appraised values which management expects will cover all disposition costs (including selling costs).

• Lot development loan appraisals are typically performed using a discounted cash flow analysis. Appraisers determine an anticipated absorption period and a discount rate that takes into account an investor’s required rate of return based on recent comparable sales. Management generally applies a 6% discount to lot development appraised values, which is an additional discount above the net present value calculation included in the appraisal, to account for selling costs.

MSRs: MSRs are carried at the lower of cost or fair value. MSRs do not trade in active, open markets with readily observable prices. For example, sales of MSRs do occur, but precise terms and conditions typically are not readily available. As such, management, with the assistance of a third-party specialist, determines fair value based on the discounted value of the future cash flows estimated to be received. Significant inputs include the discount rate and assumed prepayment speeds utilized. The calculated fair value is then compared to market values where possible to ascertain the reasonableness of the valuation in relation to current market expectations for similar products. Accordingly, MSRs are classified as Level 2.

The following tables present assets and liabilities measured at fair value on a nonrecurring basis. Collateral dependent impaired loans are carried at fair value if they have been charged down to fair value or if a specific valuation allowance has been established. A new cost basis is established at the time a property is initially recorded in OREO. OREO properties are carried at fair value if a devaluation has been taken to the property's value subsequent to the initial measurement.

The following table presents assets and liabilities measured at fair value on a nonrecurring basis:

Fair Value Measurements at December 31, 2015 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2015
Impaired Loans:
Commercial real estate	$	—	$	—	$	3,698	$	3,698
Construction real estate:
SEPH commercial land and development	—		—		2,044		2,044
Remaining commercial	—		—		1,872		1,872
Residential real estate	—		—		1,882		1,882
Total impaired loans	$	—	$	—	$	9,496	$	9,496
Mortgage Servicing Rights	$	—	$	1,867	$	—	$	1,867
Other Real Estate Owned:
Commercial real estate	—		—		2,796		2,796
Construction real estate	—		—		3,387		3,387
Residential real estate	—		—		2,332		2,332
Total Other Real Estate Owned	$	—	$	—	$	8,515	$	8,515

Fair Value Measurements at December 31, 2014 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2014
Impaired Loans:
Commercial real estate	$	—	$	—	$	8,481	$	8,481
Construction real estate:
SEPH commercial land and development	—		—		2,078		2,078
Remaining commercial	—		—		3,483		3,483
Residential real estate	—		—		2,921		2,921
Total impaired loans	$	—	$	—	$	16,963	$	16,963
Mortgage Servicing Rights	$	—	$	2,928	$	—	$	2,928
Other Real Estate Owned:
Commercial real estate	—		—		1,470		1,470
Construction real estate	—		—		6,473		6,473
Residential real estate	—		—		2,369		2,369
Total Other Real Estate Owned	$	—	$	—	$	10,312	$	10,312

The table below provides additional detail on those impaired loans which are recorded at fair value as well as the remaining impaired loan portfolio not included above. The remaining impaired loans consist of loans which are not collateral dependent as well as loans carried at cost as the fair value of the underlying collateral or the present value of expected future cash flows on each of the loans exceeded the book value for each respective credit.

	December 31, 2015
(In thousands)	Recorded Investment		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Impaired loans recorded at fair value	$	11,783	$	10,512	$	2,287	$	9,496
Remaining impaired loans	68,881		18,193		1,904		66,977
Total impaired loans	$	80,664	$	28,705	$	4,191	$	76,473

	December 31, 2014
(In thousands)	Recorded Investment		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Impaired loans recorded at fair value	$	19,643	$	19,731	$	2,680	$	16,963
Remaining impaired loans	54,069		12,749		980		53,089
Total impaired loans	$	73,712	$	32,480	$	3,660	$	70,052

The expense of credit adjustments related to impaired loans carried at fair value for the years ended December 31, 2015, 2014 and 2013 was $2.1 million, $3.0 million, and $8.1 million, respectively.

MSRs totaled $9.0 million at December 31, 2015. Of this $9.0 million MSR carrying balance, $1.9 million was recorded at fair value and included a valuation allowance of $0.5 million. The remaining $7.1 million was recorded at cost, as the fair value exceeded cost at December 31, 2015. At December 31, 2014, MSRs totaled $8.6 million. Of this $8.6 million MSR carrying balance, $2.9 million was recorded at fair value and included a valuation allowance of $0.8 million. The remaining $5.7 million was recorded at cost, as the fair value exceeded cost at December 31, 2014. Income related to MSRs carried at fair value for the years ended December 31, 2015, 2014 and 2013 was $0.3 million, $0.2 million and $1.3 million, respectively.

Total OREO held by Park at December 31, 2015 and 2014 was $18.7 million and $22.6 million, respectively. Approximately 46% of OREO held by Park at December 31, 2015 and 2014 was carried at fair value due to fair value adjustments made subsequent to the initial OREO measurement. At December 31, 2015 and 2014, OREO held at fair value, less estimated selling costs, amounted to $8.5 million and $10.3 million, respectively. The net expense related to OREO fair value adjustments was $1.6 million, $2.4 million and $3.2 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The following tables present qualitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2015 and December 31, 2014:

December 31, 2015
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial real estate	$	3,698	Sales comparison approach	Adj to comparables	0.0% - 45.9% (20.3%)
			Income approach	Capitalization rate	7.0% - 13.3% (9.5%)
			Cost approach	Accumulated depreciation	50.0% (50.0%)
Construction real estate:
SEPH commercial land and development	$	2,044	Sales comparison approach	Adj to comparables	5.0% - 40.0% (22.1%)
			Bulk sale approach	Discount rate	10.7% (10.7%)
Remaining commercial	$	1,872	Sales comparison approach	Adj to comparables	0.0% - 25.3% (1.0%)
			Bulk sale approach	Discount rate	10.0% - 10.7% (10.0%)
Residential real estate	$	1,882	Sales comparison approach	Adj to comparables	0.0% - 96.7% (12.5%)
			Income approach	Capitalization rate	3.8% - 10.1% (9.1%)
			Cost approach	Accumulated depreciation	33.3% - 50.0% (43.4%)
Other real estate owned:
Commercial real estate	$	2,796	Sales comparison approach	Adj to comparables	2.0% - 71.0% (26.9%)
			Income approach	Capitalization rate	9.5% (9.5%)
Construction real estate	$	3,387	Sales comparison approach	Adj to comparables	0.0% - 85.0% (24.3%)
			Bulk sale approach	Discount rate	15.0% (15.0%)
Residential real estate	$	2,332	Sales comparison approach	Adj to comparables	0.1% - 61.8% (23.0%)

December 31, 2014
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial real estate	$	8,481	Sales comparison approach	Adj to comparables	0.0% - 84.0% (38.8%)
			Income approach	Capitalization rate	8.0% - 9.5% (9.4%)
			Cost approach	Accumulated depreciation	23.0% (23.0%)
Construction real estate:
SEPH commercial land and development	$	2,078	Sales comparison approach	Adj to comparables	5.0% - 35.0% (17.5%)
			Bulk sale approach	Discount rate	10.8% (10.8%)
Remaining commercial	$	3,483	Sales comparison approach	Adj to comparables	0.2% - 76.0% (45.4%)
			Bulk sale approach	Discount rate	10.0% - 22.0% (16.5%)
Residential real estate	$	2,921	Sales comparison approach	Adj to comparables	0.0% - 120.6% (11.1%)
			Income approach	Capitalization rate	7.9% - 10.0% (8.0%)
Other real estate owned:
Commercial real estate	$	1,470	Sales comparison approach	Adj to comparables	0.0% - 87.0% (30.5%)
			Income approach	Capitalization rate	8.4% - 10.0% (9.4%)
			Cost approach	Accumulated depreciation	60.0% - 95.0% (77.5%)
Construction real estate	$	6,473	Sales comparison approach	Adj to comparables	0.0% - 82.9% (27.1%)
			Bulk sale approach	Discount rate	15.0% (15.0%)
Residential real estate	$	2,369	Sales comparison approach	Adj to comparables	0.0% - 38.3% (10.1%)
			Income approach	Capitalization rate	6.8% - 7.8% (7.6%)

The following methods and assumptions were used by the Corporation in estimating its fair value disclosures for assets and liabilities not discussed above:

Cash and cash equivalents:The carrying amounts reported in the Consolidated BalanceSheets for cash and short-term instruments approximate those assets’ fair values.

FHLB stock and FRB stock: These assets are carried at their respective redemption values as it is not practical to calculate their fair values.

Loans receivable:For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for certain mortgage loans (e.g., one-to-four family residential) are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted for differences in loan characteristics. The fair values for other loans are estimated using discounted cash flow analyses, based upon interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The methods utilized to estimate fair value do not necessarily represent an exit price.

Off-balance sheet instruments:Fair values for the Corporation’s loan commitments and standby letters of credit are based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The carrying amount and fair value are not material.

 Deposit liabilities:The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts for variable-rate, fixed-term certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities of time deposits.

Short-term borrowings:The carrying amounts of federal funds purchased, borrowings under repurchase agreements and other short-term borrowings approximate their fair values.

Long-term debt:Fair values for long-term debt are estimated using a discounted cash flow calculation that applies interest rates currently being offered on long-term debt to a schedule of monthly maturities.

Subordinated notes:Fair values for subordinated notes are estimated using a discounted cash flow calculation that applies interest rate spreads currently being offered on similar debt structures to a schedule of monthly maturities.

The fair value of financial instruments at December 31, 2015 and December 31, 2014, was as follows:

	December 31, 2015
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	149,459	$	149,459	$	—	$	—	$	149,459
Investment securities	1,585,568		1,941		1,584,984		769		1,587,694
Accrued interest receivable - securities	4,436		—		4,436		—		4,436
Accrued interest receivable - loans	14,239		—		—		14,239		14,239
Mortgage loans held for sale	7,306		—		7,306		—		7,306
Impaired loans carried at fair value	9,496		—		—		9,496		9,496
Mortgage IRLCs	165		—		165		—		165
Other loans	4,994,624		—		—		4,997,318		4,997,318
Loans receivable, net	$	5,011,591	$	—	$	7,471	$	5,006,814	$	5,014,285
Financial liabilities:
Non-interest bearing checking accounts	$	1,404,032	$	1,404,032	$	—	$	—	$	1,404,032
Interest bearing transaction accounts	1,107,200		1,107,200		—		—		1,107,200
Savings accounts	1,544,708		1,544,708		—		—		1,544,708
Time deposits	1,290,412		—		1,295,329		—		1,295,329
Other	1,290		1,290		—		—		1,290
Total deposits	$	5,347,642	$	4,057,230	$	1,295,329	$	—	$	5,352,559
Short-term borrowings	$	394,242	$	—	$	394,242	$	—	$	394,242
Long-term debt	738,105		—		771,420		—		771,420
Subordinated notes	45,000		—		41,596		—		41,596
Accrued interest payable – deposits	987		66		921		—		987
Accrued interest payable – debt/borrowings	1,351		4		1,347		—		1,351
Derivative financial instruments:
Fair value swap	$	226	$	—	$	—	$	226	$	226

	December 31, 2014
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	237,699	$	237,699	$	—	$	—	$	237,699
Investment securities	1,442,477		1,922		1,442,708		775		1,445,405
Accrued interest receivable - securities	4,048		—		4,048		—		4,048
Accrued interest receivable - loans	13,629		—		—		13,629		13,629
Mortgage loans held for sale	5,264		—		5,264		—		5,264
Impaired loans carried at fair value	16,963		—		—		16,963		16,963
Mortgage IRLCs	70		—		70		—		70
Other loans	4,753,033		—		—		4,757,461		4,757,461
Loans receivable, net	$	4,775,330	$	—	$	5,334	$	4,774,424	$	4,779,758
Financial liabilities:
Non-interest bearing checking accounts	$	1,269,296	$	1,269,296	$	—	—		$	1,269,296
Interest bearing transaction accounts	1,122,079		1,122,079		—		—		1,122,079
Savings accounts	1,325,445		1,325,445		—		—		1,325,445
Time deposits	1,409,911		—		1,422,885		—		1,422,885
Other	1,269		1,269		—		—		1,269
Total deposits	$	5,128,000	$	3,718,089	$	1,422,885	$	—	$	5,140,974
Short-term borrowings	$	276,980	$	—	$	276,980	$	—	$	276,980
Long-term debt	786,602		—		827,500		—		827,500
Subordinated notes	45,000		—		42,995		—		42,995
Accrued interest payable – deposits	1,125		14		1,111		—		1,125
Accrued interest payable – debt/borrowings	1,426		3		1,423		—		1,426
Derivative financial instruments:
Fair value swap	$	226	$	—	$	—	$	226	$	226

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Capital Ratios

12 Months Ended

Dec. 31, 2015

Capital [Abstract]

Capital Ratios

Capital Ratios

Financial institution regulators have established guidelines for minimum capital ratios for banks, thrifts and bank holding companies. During the first quarter of 2015, Park adopted the new Basel III regulatory capital framework as approved by the federal banking agencies. The adoption of this new framework modified the calculation of the various capital ratios, added a new ratio, common equity tier 1, and revised the adequately and well capitalized thresholds. Additionally, under the new rule, in order to avoid limitations on capital distributions, including dividend payments, Park must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The amounts shown below as the adequately capitalized ratio plus capital conservation buffer includes the fully phased-in 2.50% buffer.

PNB met each of the well capitalized ratio guidelines at December 31, 2015. The following table indicates the capital ratios for PNB and Park at December 31, 2015 and 2014.

	As of December 31, 2015
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
The Park National Bank	7.06	%	9.83	%	9.83	%	11.37	%
Park National Corporation	9.22	%	12.82	%	12.54	%	14.49	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well capitalized ratio (PNB only)	5.00	%	8.00	%	6.50	%	10.00	%

	As of December 31, 2014
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1	Total Risk-Based
The Park National Bank	6.96	%	10.13	%	N/A	11.74	%
Park National Corporation	9.25	%	13.39	%	N/A	15.14	%
Adequately capitalized ratio	4.00	%	4.00	%	N/A	8.00	%
Well capitalized ratio (PNB only)	5.00	%	6.00	%	N/A	10.00	%

Failure to meet the minimum requirements above could cause the FRB to take action. PNB is also subject to the capital requirements of its primary regulator, the OCC. As of December 31, 2015 and 2014, Park and PNB were well-capitalized and met all capital requirements to which each was then subject. There are no conditions or events since PNB's most recent regulatory report filings, that management believes have changed the risk categories for PNB.

The following table reflects various measures of capital for Park and PNB:

					To Be Adequately Capitalized				To Be Well Capitalized
(In thousands)	Actual Amount		Ratio		Amount		Ratio		Amount		Ratio
At December 31, 2015
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	588,467	11.37	%	$	414,079	8.00	%	$	517,599	10.00	%
Park	758,988		14.49	%	419,080		8.00	%	N/A		N/A
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	508,763	9.83	%	$	310,560	6.00	%	$	414,079	8.00	%
Park	671,664		12.82	%	314,310		6.00	%	N/A		N/A
Leverage Ratio (to average total assets)
PNB	$	508,763	7.06	%	$	288,147	4.00	%	$	360,183	5.00	%
Park	671,664		9.22	%	291,449		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	$	508,763	9.83	%	$	232,920	4.50	%	$	336,439	6.50	%
Park	656,664		12.54	%	235,732		4.50	%	N/A		N/A
At December 31, 2014
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	563,188	11.74	%	$	383,634	8.00	%	$	479,542	10.00	%
Park	739,517		15.14	%	390,822		8.00	%	N/A		N/A
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	485,943	10.13	%	$	191,817	4.00	%	$	287,725	6.00	%
Park	654,339		13.39	%	195,411		4.00	%	N/A		N/A
Leverage Ratio (to average total assets)
PNB	$	485,943	6.96	%	$	279,210	4.00	%	$	349,013	5.00	%
Park	654,339		9.25	%	282,992		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	N/A		N/A		N/A		N/A		N/A		N/A
Park	N/A		N/A		N/A		N/A		N/A		N/A

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Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

The Corporation is a financial holding company headquartered in Newark, Ohio. The operating segments for the Corporation are its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio), SEPH and GFSC.

GAAP requires management to disclose information about the different types of business activities in which a company engages and also information on the different economic environments in which a company operates, so that the users of the financial statements can better understand a company’s performance, better understand the potential for future cash flows, and make more informed judgments about the company as a whole. Park’s current operating segments are in line with GAAP as: (i) discrete financial information is available for each operating segment and (ii) the segments are aligned with internal reporting to Park’s Chief Executive Officer and President, who is the chief operating decision maker.  

Operating results for the year ended December 31, 2015 (In thousands)
	PNB		GFSC		SEPH			All Other			Total
Net interest income (loss)	$	220,879	$	6,588	$	(74	)	$	239		$	227,632
Provision for (recovery of) loan losses	7,665		1,415		(4,090		)	—			4,990
Other income	75,188		2		1,848			513			77,551
Other expense	167,476		2,984		6,182			9,972			186,614
Income (loss) before taxes	120,926		2,191		(318		)	(9,220		)	113,579
Income taxes (benefit)	36,581		768		(111		)	(4,671		)	32,567
Net income (loss)	$	84,345	$	1,423	$	(207	)	$	(4,549	)	$	81,012
Balances at December 31, 2015
Assets	$	7,229,764	$	35,793	$	33,541		$	12,256		$	7,311,354
Loans	5,029,072		35,469		15,153			(11,609		)	5,068,085
Deposits	5,447,293		4,627		—			(104,278		)	5,347,642

Operating results for the year ended December 31, 2014 (In thousands)
	PNB		GFSC			SEPH			All Other			Total
Net interest income (loss)	$	218,641	$	7,457		$	958		$	(2,012	)	$	225,044
Provision for (recovery of) loan losses	3,517		1,544			(12,394		)	—			(7,333		)
Other income (loss)	69,384		(1		)	5,991			175			75,549
Other expense	163,641		4,103			11,766			8,000			187,510
Income (loss) before taxes	120,867		1,809			7,577			(9,837		)	120,416
Income taxes (benefit)	37,960		634			2,652			(4,787		)	36,459
Net income (loss)	$	82,907	$	1,175		$	4,925		$	(5,050	)	$	83,957
Balances at December 31, 2014
Assets	$	6,910,386	$	40,308		$	43,762		$	6,743		$	7,001,199
Loans	4,781,761		40,645			23,956			(16,680		)	4,829,682
Deposits	5,222,766		5,883			—			(100,649		)	5,128,000

Operating results for the year ended December 31, 2013 (In thousands)
	PNB		GFSC		SEPH			All Other			Total
Net interest income (loss)	$	210,781	$	8,741	$	(1,325	)	$	2,828		$	221,025
Provision for (recovery of) loan losses	14,039		1,175		(11,799		)	—			3,415
Other income	70,841		11		1,956			469			73,277
Other expense	158,651		3,133		12,211			7,520			181,515
Income (loss) before taxes	108,932		4,444		219			(4,223		)	109,372
Income taxes (benefit)	33,696		1,556		77			(2,826		)	32,503
Net income (loss)	$	75,236	$	2,888	$	142		$	(1,397	)	$	76,869
Balances at December 31, 2013
Assets	$	6,522,174	$	47,115	$	72,781		$	(5,647	)	$	6,636,423
Loans	4,559,406		47,228		38,014			(24,143		)	4,620,505
Deposits	4,896,405		7,159		—			(113,570		)	4,789,994

The following is a reconciliation of financial information for the reportable segments to the Corporation’s consolidated totals:

	2015
(In thousands)	Net Interest Income			Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	227,393		$	7,347	$	169,295	$	37,238		$	7,299,098		$	5,451,920
Elimination of intersegment items	2,561			—		—		—			(13,557		)	(104,278		)
Parent Co. totals - not eliminated	(2,322		)	—		9,972		(4,671		)	25,813			—
Totals	$	227,632		$	7,347	$	179,267	$	32,567		$	7,311,354		$	5,347,642

	2014
(In thousands)	Net Interest Income			Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	227,056		$	7,243	$	172,267	$	41,246		$	6,994,456		$	5,228,649
Elimination of intersegment items	3,708			—		—		—			(18,556		)	(100,649		)
Parent Co. totals - not eliminated	(5,720		)	—		8,000		(4,787		)	25,299			—
Totals	$	225,044		$	7,243	$	180,267	$	36,459		$	7,001,199		$	5,128,000

	2013
(In thousands)	Net Interest Income			Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	218,197		$	7,315	$	166,680	$	35,329		$	6,642,070		$	4,903,564
Elimination of intersegment items	8,659			—		—		—			(30,369		)	(113,570		)
Parent Co. totals - not eliminated	(5,831		)	—		7,520		(2,826		)	24,722			—
Totals	$	221,025		$	7,315	$	174,200	$	32,503		$	6,636,423		$	4,789,994

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Parent Company Statements

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Parent Company Statements

Parent Company Statements

The Parent Company statements should be read in conjunction with the consolidated financial statements and the information set forth below. Investments in subsidiaries are accounted for using the equity method of accounting. The effective tax rate for the Parent Company is substantially less than the statutory rate due principally to tax-exempt dividends from subsidiaries.

Cash represents non-interest bearing deposits with PNB. Net cash provided by operating activities reflects cash payments (received from subsidiaries) for income taxes of $4.13 million, $5.81 million and $2.54 million in 2015, 2014 and 2013, respectively.

At December 31, 2015 and 2014, shareholders’ equity reflected in the Parent Company balance sheet includes $199.4 million and $196.5 million, respectively, of undistributed earnings of the Corporation’s subsidiaries which are restricted from transfer as dividends to the Corporation.

Balance Sheets
December 31, 2015 and 2014
(In thousands)	2015		2014
Assets:
Cash	$	102,416	$	98,671
Investment in subsidiaries	613,383		599,855
Debentures receivable from PNB	25,000		25,000
Other investments	2,341		2,344
Other assets	23,443		23,260
Total assets	$	766,583	$	749,130
Liabilities:
Subordinated notes	45,000		45,000
Other liabilities	8,228		7,589
Total liabilities	53,228		52,589
Total shareholders’ equity	713,355		696,541
Total liabilities and shareholders’ equity	$	766,583	$	749,130

Statements of Income
for the years ended December 31, 2015, 2014 and 2013
(In thousands)	2015			2014		2013
Income:
Dividends from subsidiaries	$	60,000		$	60,000	$	15,000
Interest and dividends	2,561			3,708		8,659
Other	560			262		531
Total income	63,121			63,970		24,190
Expense:
Other, net	12,341			13,807		13,413
Total expense	12,341			13,807		13,413
Income before federal taxes and equity in undistributed income of subsidiaries	50,780			50,163		10,777
Federal income tax benefit	4,671			4,787		2,826
Income before equity in undistributed income of subsidiaries	55,451			54,950		13,603
Equity in undistributed income of subsidiaries	25,561			29,007		63,266
Net income	$	81,012		$	83,957	$	76,869
Other comprehensive (loss) income (1)	(2,035		)	21,811		(17,901		)
Comprehensive income	78,977			105,768		58,968

(1) See Consolidated Statements of Comprehensive Income for other comprehensive (loss) income detail

Statements of Cash Flows
for the years ended December 31, 2015, 2014 and 2013
(In thousands)	2015			2014			2013
Operating activities:
Net income	$	81,012		$	83,957		$	76,869
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income of subsidiaries	(25,561		)	(29,007		)	(63,266		)
Compensation expense for issuance of treasury stock to directors	963			801			850
Share-based compensation expense	865			458			—
Decrease in other assets	(182		)	(1,292		)	(2,215		)
Increase (decrease) in other liabilities	485			298			(2,187		)
Net cash provided by operating activities	57,582			55,215			10,051
Investing activities:
Capital contribution in subsidiary	—			—			(45,000		)
Repayment of investments in and advances to subsidiaries	10,000			32,000			101,960
Net cash provided by investing activities	10,000			32,000			56,960
Financing activities:
Cash dividends paid	(57,776		)	(57,876		)	(57,949		)
Repayment of subordinated notes	—			(35,250		)	—
Repurchase of treasury shares	(6,058		)	(2,355		)	(843		)
Cash payment for fractional shares	(3		)	(5		)	(3		)
Net cash used in financing activities	(63,837		)	(95,486		)	(58,795		)
Increase (decrease) in cash	3,745			(8,271		)	8,216
Cash at beginning of year	98,671			106,942			98,726
Cash at end of year	$	102,416		$	98,671		$	106,942

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of Park National Corporation and its subsidiaries (“Park”, the “Company” or the “Corporation”). Material intercompany accounts and transactions have been eliminated.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management has identified the allowance for loan losses, accounting for Other Real Estate Owned (“OREO”), fair value accounting, accounting for goodwill and accounting for pension plan and other post-retirement benefits as significant estimates.

Reclassifications

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year presentation. Additionally, prior period financial statements reflect the retrospective application of Accounting Standards Update ("ASU") 2014-01, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.

Restrictions on Cash and Due from Banks

Restrictions on Cash and Due from Banks

The Corporation’s national bank subsidiary is required to maintain average reserve balances with the Federal Reserve Bank. The average required reserve balance was approximately $44.2 million at December 31, 2015 and $40.3 million at December 31, 2014. No other compensating balance arrangements were in existence at December 31, 2015.

Investment Securities

Investment Securities

Investment securities are classified upon acquisition into one of three categories: held-to-maturity ("HTM"), available-for-sale ("AFS"), or trading (see Note 5 - Investment Securities).

HTM securities are those securities that the Corporation has the positive intent and ability to hold to maturity and are recorded at amortized cost. AFS securities are those securities that would be available to be sold in the future in response to the Corporation’s liquidity needs, changes in market interest rates, and asset-liability management strategies, among other reasons. AFS securities are reported at fair value, with unrealized holding gains and losses excluded from earnings but included in other comprehensive income (loss), net of applicable taxes. The Corporation did not hold any trading securities during any period presented.

AFS and HTM securities are evaluated quarterly for potential other-than-temporary impairment. Management considers the facts related to each security including the nature of the security, the amount and duration of the loss, the credit quality of the issuer, the expectations for that security’s performance and whether Park intends to sell, or it is more likely than not that Park will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. Declines in the value of equity securities that are considered to be other-than-temporary are recorded as a charge to earnings in the Consolidated Statements of Income. Declines in the value of debt securities that are considered to be other-than-temporary are separated into (1) the amount of the total impairment related to credit loss and (2) the amount of the total impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income (loss), net of tax.

Interest income from investment securities includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated.

Gains and losses realized on the sale of investment securities are recorded on the trade date and determined using the specific identification basis.

Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock

Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock

Park’s national bank subsidiary, The Park National Bank ("PNB") is a member of the FHLB. Additionally, PNB is a member of the FRB. Members are required to own a certain amount of stock based on their level of borrowings and other factors and may invest in additional amounts. FHLB stock and FRB stock are classified as restricted securities and are carried at their redemption value within other investment securities on the Consolidated Balance Sheets. Impairment is evaluated based on the ultimate recovery of par value. Both cash and stock dividends are reported as income.

Bank Owned Life Insurance

Bank Owned Life Insurance

Park has purchased insurance policies on the lives of directors and certain key officers. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

Mortgage Loans Held For Sale

Loans Held for Sale

Generally, loans held for sale are carried at the lower of cost or fair value. Park has elected the fair value option for mortgage loans held for sale, which are carried at their fair value.

Mortgage Banking Derivatives

Mortgage Banking Derivatives

Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. The fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on sale of loans.

Loans

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at their outstanding principal balances adjusted for any charge-offs, any deferred fees or costs on originated loans, and any unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan origination fees and costs over the loan term. Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) those commercial loans in the real estate construction loan segment; and (4) those commercial loans in the residential real estate loan segment. Consumer loans include: (1) mortgage and installment loans included in the real estate construction segment; (2) mortgage, home equity lines of credit (HELOC), and installment loans included in the residential real estate segment; and (3) all loans included in the consumer segment.

Generally, commercial loans are placed on nonaccrual status at 90 days past due and consumer and residential mortgage loans are placed on nonaccrual status at 120 days past due. Commercial loans placed on nonaccrual status are considered impaired (see Note 6 - Loans). For loans which are on nonaccrual status, it is Park’s policy to reverse interest previously accrued on the loans against interest income. Interest on such loans may be recorded on a cash basis and be included in earnings only when cash is actually received. Park’s charge-off policy for commercial loans requires management to establish a specific reserve or record a charge-off as soon as it is apparent that the borrower is troubled and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing the loan. The Company’s charge-off policy for consumer loans is dependent on the class of the loan. Residential mortgage loans, HELOCs, and consumer loans secured by residential real estate are typically charged down to the value of the collateral, less estimated selling costs, at 180 days past due. The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due.

The delinquency status of a loan is based on contractual terms and not on how recently payments have been received. Loans may be removed from nonaccrual status when loan payments have been received to cure the delinquency status, the borrower has demonstrated the ability to maintain current payment status in accordance with the loan agreement and the loan is deemed to be well-secured by management.

A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below:

Commercial, financial and agricultural: Commercial, financial and agricultural loans are made for a wide variety of general corporate purposes, including financing for commercial and industrial businesses, financing for equipment, inventories and accounts receivable, acquisition financing and commercial leasing. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. The commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications originated in the 28 Ohio counties where PNB operates. The primary industries represented by these customers include manufacturing, retail trade, health care and other services.

Commercial real estate: Commercial real estate (“CRE”) loans include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate.

Construction real estate: The Company defines construction loans as both commercial construction loans and residential construction loans where the loan proceeds are used exclusively for the improvement of real estate as to which the Company holds a mortgage. Construction loans may be in the form of a permanent loan or short-term construction loan, depending on the needs of the individual borrower. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, the PNB division making the loan may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, the PNB division may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event that a default on a construction loan occurs and foreclosure follows, the PNB division must take control of the project and attempt to either arrange for completion of construction or dispose of the unfinished project. Additional risk exists with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. PNB and its divisions attempt to reduce such risks on loans to developers by requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer.

Residential real estate: The Company defines residential real estate loans as first mortgages on individuals’ primary residences or second mortgages of individuals’ primary residences in the form of HELOCs or installment loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and an appraised value of the real estate securing the loan.

Consumer: The Company originates direct and indirect consumer loans, primarily automobile loans and home equity based lines of credit to customers in its primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s financial stability, and thus are more likely to be affected by adverse personal circumstances.

Allowance for Loan Losses

Allowance for Loan Losses

The allowance for loan losses is that amount believed adequate to absorb probable incurred credit losses in the loan portfolio based on management’s evaluation of various factors. The determination of the allowance requires significant estimates, including the timing and amounts of expected cash flows on impaired loans, consideration of current economic conditions, and historical loss experience pertaining to pools of homogeneous loans, all of which may be susceptible to change. The allowance is increased through a provision for loan losses that is charged to earnings based on management’s quarterly evaluation of the factors previously mentioned and is reduced by charge-offs, net of recoveries.

The allowance for loan losses includes both (1) an estimate of loss based on historical loss experience within both commercial and consumer loan categories with similar characteristics (“statistical allocation”) and (2) an estimate of loss based on an impairment analysis of each commercial loan that is considered to be impaired (“specific allocation”).

In calculating the allowance for loan losses, management believes it is appropriate to utilize historical loss rates that are comparable to the current period being analyzed, giving consideration to losses experienced over a full cycle. For the historical loss factor at December 31, 2015, the Company utilized an annual loss rate (“historical loss experience”), calculated based on an average of the net charge-offs and the annual change in specific reserves for impaired commercial loans, experienced during 2009 through 2015 within the individual segments of the commercial and consumer loan categories. Management believes the 84-month historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates consistent with current expectations based on current economic conditions. The loss factor applied to Park’s consumer portfolio as of December 31, 2015 was based on the historical loss experience over the past 84 months, plus an additional judgmental reserve, increasing the total allowance for loan loss coverage in the consumer portfolio to approximately 1.99 years of historical loss. The consumer loan portfolio loss coverage ratio was 1.98 years at December 31, 2014. The loss factor applied to Park’s commercial portfolio as of December 31, 2015 was based on the historical loss experience over the past 84 months, plus additional reserves for consideration of (1) a loss emergence period factor, (2) a loss migration factor and (3) a judgmental or environmental loss factor. These additional reserves increased the total allowance for loan loss coverage in the commercial portfolio to approximately 2.52 years of historical loss at December 31, 2015. The commercial loan portfolio loss coverage ratio was 2.28 years at December 31, 2014. Park’s commercial loans are individually risk graded. If loan downgrades occur, the probability of default increases and accordingly management allocates a higher percentage reserve to those accruing commercial loans graded special mention and substandard.

The judgmental increases discussed above incorporate management’s evaluation of the impact of environmental qualitative factors which pose additional risks and assign a component of the allowance for loan losses in consideration of these factors. Such environmental factors include: national and local economic trends and conditions; experience, ability and depth of lending management and staff; effects of any changes in lending policies and procedures; and levels of, and trends in, consumer bankruptcies, delinquencies, impaired loans and charge-offs and recoveries.

GAAP requires a specific allocation to be established as a component of the allowance for loan losses for certain loans when it is probable that all amounts due pursuant to the contractual terms of the loans will not be collected, and the recorded investment in the loans exceeds their measure of impairment. Management considers the following related to commercial loans when determining if a loan should be considered impaired: (1) current debt service coverage levels of the borrowing entity; (2) payment history over the most recent 12-month period; (3) other signs of deterioration in the borrower’s financial situation, such as changes in credit scores; and (4) consideration of global cash flows of financially sound guarantors that have previously supported loan payments. The recorded investment is the carrying balance of the loan, plus accrued interest receivable, both as of the end of the year. Impairment is measured using either the present value of expected future cash flows based upon the initial effective interest rate on the loan, or the fair value of the collateral. If a loan is considered to be collateral dependent, the fair value of collateral, less estimated selling costs, is used to measure impairment.

Troubled Debt Restructuring (TDRs)

Troubled Debt Restructuring ("TDRs")

Management classifies loans as TDRs when a borrower is experiencing financial difficulty and Park has granted a concession. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. A court's discharge of a borrower's debt in a Chapter 7 bankruptcy is considered a concession when the borrower does not reaffirm the discharged debt. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral.

Income Recognition

Income Recognition

Income earned by the Corporation and its subsidiaries is recognized on the accrual basis of accounting, except for nonaccrual loans as previously discussed, and late charges on loans which are recognized as income when they are collected.

Premises and Equipment

Premises and Equipment

Land is carried at cost and is not subject to depreciation. Premises and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the remaining lease period or the estimated useful lives of the improvements. Upon the sale or other disposal of an asset, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are charged to expense as incurred while renewals and improvements that extend the useful life of an asset are capitalized. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.

The range of depreciable lives over which premises and equipment are being depreciated are:

Buildings	30 Years
Equipment, furniture and fixtures	3 to 12 Years
Leasehold improvements	1 to 10 Years

Other Real Estate Owned (OREO)

Other Real Estate Owned

Management transfers a loan to OREO at the time that Park takes deed/title of the asset. OREO is initially recorded at fair value less anticipated selling costs (net realizable value), establishing a new cost basis, and consists of property acquired through foreclosure and real estate held for sale. If the net realizable value is below the carrying value of the loan at the date of transfer, the difference is charged to the allowance for loan losses. These assets are subsequently accounted for at the lower of cost or fair value less costs to sell. Subsequent changes in the value of real estate are classified as OREO valuation adjustments, are reported as adjustments to the carrying amount of OREO and are recorded within “Other income”. In certain circumstances where management believes the devaluation may not be permanent in nature, Park utilizes a valuation allowance to record OREO devaluations, which is also expensed through “Other income”. Costs relating to development and improvement of such properties are capitalized (not in excess of fair value less estimated costs to sell) and costs relating to holding the properties are charged to "Other expense".

Mortgage Loan Servicing Rights

Mortgage Servicing Rights ("MSR")

When Park sells mortgage loans with servicing rights retained, servicing rights are recorded at an amount not to exceed fair value with the income statement effect recorded in "Other service income." Capitalized servicing rights are amortized in proportion to and over the period of the estimated future servicing income of the underlying loan and are included within “Other service income”.

Mortgage servicing rights are assessed for impairment periodically, based on fair value, with any impairment recognized through a valuation allowance. The fair value of mortgage servicing rights is determined by discounting estimated future cash flows from the servicing assets, using market discount rates and expected future prepayment rates. In order to calculate fair value, the sold loan portfolio is stratified into homogeneous pools of like categories. (See Note 24 - Loan Servicing.)

Fees received for servicing mortgage loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in income as loan payments are received. The cost of servicing loans is charged to expense as incurred.

Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price over net identifiable tangible and intangible assets acquired in a purchase business combination. Other intangible assets represent purchased assets that have no physical property but represent some future economic benefit to their owner and are capable of being sold or exchanged on their own or in combination with a related asset or liability.

Goodwill and indefinite-lived intangible assets are not amortized to expense, but are subject to impairment tests annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets with definitive useful lives (such as core deposit intangibles) are amortized to expense over their estimated useful lives.

Management considers several factors when performing the annual impairment tests on goodwill. The factors considered include the operating results for the particular Park segment for the past year and the operating results budgeted for the current year (including multi-year projections), the deposit and loan totals of the Park segment and the economic conditions in the markets served by the Park segment. At December 31, 2015, the goodwill remaining on Park's Consolidated Balance Sheet consisted entirely of goodwill at PNB. (See Note 27 - Segment Information for operating segment results.)

GAAP requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired, by assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing these events or circumstances, it is concluded that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If the carrying amount of the goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess.

Park evaluates goodwill for impairment on April 1 of each year, with financial data as of March 31. Based on the analysis performed as of April 1, 2015, the Company determined that goodwill for Park’s national bank subsidiary (PNB) was not impaired. There have been no subsequent circumstances or events triggering an additional evaluation.

Consolidated Statement of Cash Flows

Consolidated Statement of Cash Flows

Cash and cash equivalents include cash and cash items, amounts due from banks and money market instruments. Generally, money market instruments are purchased and sold for one-day periods.

Loss Contingencies and Guarantees

Loss Contingencies and Guarantees

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Corporation accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. To the extent that Park does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is recorded. All positive and negative evidence is reviewed when determining how much of a valuation allowance is recognized on a quarterly basis. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination being presumed to occur. The benefit recognized for a tax position that meets the “more-likely-than-not” criteria is measured based on the largest benefit that is more than 50 percent likely to be realized, taking into consideration the amounts and probabilities of the outcome upon settlement. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. Park recognizes any interest and penalties related to income tax matters in income tax expense.

Treasury Shares

Treasury Shares

The purchase of Park’s common shares is recorded at cost. At the date of retirement or subsequent reissuance, the treasury shares account is reduced by the weighted average cost of the common shares retired or reissued.

Comprehensive Income

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, and changes in the funded status of the Company’s defined benefit pension plan, which are also recognized as separate components of equity.

Stock Based Compensation

Share-Based Compensation

Compensation cost is recognized for restricted stock units and stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. The market price of Park’s common shares at the date of grant is used to estimate the fair value of restricted stock units and stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period and is recorded in "Salaries" expense. (See Note 17 - Share - Based Compensation.)

Loan Commitments and Related Financial Instruments

Loan Commitments and Related Financial Instruments

Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Fair Value Measurement

Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 25 - Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Transfers and Financial Assets

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Retirement Plans

Retirement Plans

Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee KSOP plan expense is the amount of matching contributions to Park's employees stock ownership plan. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. (See Note 18 - Benefit Plans.)

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per common share is net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock awards, stock options, warrants and convertible securities. Earnings and dividends per common share are restated for any stock splits and stock dividends through the date of issuance of the consolidated financial statements. (See Note 21 - Earnings Per Common Share.)

Segment Reporting, Policy [Policy Text Block]

Operating Segments

The Corporation is a financial holding company headquartered in Newark, Ohio. The operating segments for the Corporation are its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio), SE Property Holdings, LLC ("SEPH"), and Guardian Financial Services Company ("GFSC").

Adoption of New Accounting Pronouncements

Adoption of New Accounting Pronouncements

ASU 2014-01- Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force): In January 2014, the Financial Accounting Standards Board (the "FASB") issued ASU 2014-01, Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). The ASU permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. Additionally, a reporting entity should disclose information that enables users of its financial statements to understand the nature of its investments in qualified affordable housing projects, and the effect of the measurement of its investments in qualified affordable housing projects and the related tax credits on its financial position and results of operations. The new guidance became effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. Park adopted this guidance in the first quarter of 2015. The guidance was applied retrospectively to all prior periods presented. The adoption resulted in adjustments to reduce beginning retained earnings, other assets and the prior periods consolidated statements of income. See Note 11 - Investment in Qualified Affordable Housing for further details.

ASU 2014-04 - Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force): In January 2014, FASB issued ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force). This new ASU clarifies when an in substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of real estate property collateralizing a consumer mortgage loan. Specifically, the new ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. Additional disclosures are required detailing the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgages collateralized by real estate property that are in the process of foreclosure. The new guidance is effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. The adoption of this guidance as of January 1, 2015 did not have a material impact on Park's consolidated financial statements, but resulted in additional disclosures. See Note 9 - Other Real Estate Owned.

ASU 2014-09 - Revenue from Contracts with Customers (Topic 606): In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU creates a new topic, Topic 606, to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2017. Management is currently evaluating the impact of the adoption of this guidance on Park's consolidated financial statements.

ASU 2014-11 - Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures: In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this ASU change the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The amendments also require two new disclosures. The first disclosure requires an entity to disclose information on transfers accounted for as sales in transactions that are economically similar to repurchase agreements. The second disclosure provides increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The accounting changes are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, with all other disclosure requirements required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The adoption of this guidance as of January 1, 2015 did not have an impact on Park's consolidated financial statements, but resulted in additional disclosures. See Note 13 - Repurchase Agreement Borrowings.

ASU 2015-02 - Consolidation (Topic 810): Amendments to the Consolidation Analysis: In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The ASU amends the current consolidation guidance and affects both the variable interest entity and voting interest entity consolidation models. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. Management is currently evaluating the impact of the adoption of this guidance on Park’s consolidated financial statements.

ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2016, the FASB issued ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Changes to the current GAAP model primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale securities. The new guidance is effective for annual reporting period and interim reporting periods within those annual periods, beginning after December 15, 2017. Management is currently evaluating the impact of the adoption of this guidance on Park’s consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Schedule of depreciable lives of premises and equipment

The range of depreciable lives over which premises and equipment are being depreciated are:

Buildings	30 Years
Equipment, furniture and fixtures	3 to 12 Years
Leasehold improvements	1 to 10 Years

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Goodwill (Tables)

12 Months Ended

Dec. 31, 2015

Finite-Lived Intangible Assets [Line Items]

Schedule of Indefinite-Lived Intangible Assets [Table Text Block]

The following table reflects the activity in goodwill and other intangible assets for the years ended December 31, 2015, 2014 and 2013.

(In thousands)	Goodwill		Core Deposit Intangibles			Total
January 1, 2013	$	72,334	$	337		$	72,671
Amortization	—		(337		)	(337		)
December 31, 2013	$	72,334	$	—		$	72,334
Amortization	—		—			—
December 31, 2014	$	72,334	$	—		$	72,334
Amortization	—		—			—
December 31, 2015	$	72,334	$	—		$	72,334

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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of marketable securities

Investment securities at December 31, 2015 and December 31, 2014 were as follows:

(In thousands)	Amortized Cost		Gross Unrealized/Unrecognized Holding Gains		Gross Unrealized/Unrecognized Holding Losses		Estimated Fair Value
2015:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	527,605	$	—	$	5,542	$	522,063
U.S. Government sponsored entities’ asset-backed securities	907,989		8,776		5,272		911,493
Other equity securities	1,120		1,590		—		2,710
Total	$	1,436,714	$	10,366	$	10,814	$	1,436,266
2015:
Securities Held-to-Maturity
Obligations of states and political subdivisions	$	48,190	$	734	$	—	$	48,924
U.S. Government sponsored entities’ asset-backed securities	101,112		1,526		134		102,504
Total	$	149,302	$	2,260	$	134	$	151,428

(In thousands)	Amortized Cost		Gross Unrealized/Unrecognized Holding Gains		Gross Unrealized/Unrecognized Holding Losses		Estimated Fair Value
2014:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	546,886	$	11	$	8,833	$	538,064
U.S. Government sponsored entities’ asset-backed securities	751,974		13,421		4,242		761,153
Other equity securities	1,120		1,578		—		2,698
Total	$	1,299,980	$	15,010	$	13,075	$	1,301,915
2014:
Securities Held-to-Maturity
U.S. Government sponsored entities’ asset-backed securities	$	140,562	$	3,088	$	160	$	143,490

Schedule of unrealized loss on investments

The following table provides detail on investment securities with unrealized losses aggregated by investment category and length of time the individual securities had been in a continuous loss position at December 31, 2015 and December 31, 2014:

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2015:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	326,973	$	2,117	$	195,090	$	3,425	$	522,063	$	5,542
U.S. Government sponsored entities' asset-backed securities	384,169		2,776		114,543		2,496		498,712		5,272
Total	$	711,142	$	4,893	$	309,633	$	5,921	$	1,020,775	$	10,814
2015:
Securities Held-to-Maturity
U.S. Government sponsored entities’ asset-backed securities	$	5,656	$	10	$	7,792	$	124	$	13,448	$	134

	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2014:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	119,913	$	87	$	388,140	$	8,746	$	508,053	$	8,833
U.S. Government sponsored entities' asset-backed securities	73,276		136		170,430		4,106		243,706		4,242
Total	$	193,189	$	223	$	558,570	$	12,852	$	751,759	$	13,075
2014:
Securities Held-to-Maturity
U.S. Government sponsored entities' asset-backed securities	$	8,032	$	148	$	2,714	$	12	$	10,746	$	160

Schedule of contractual maturity of debt securities

The amortized cost and estimated fair value of investments in debt securities at December 31, 2015, are shown in the following table by contractual maturity, except for asset-backed securities, which are shown as a single total, due to the unpredictability of the timing in principal repayments.

(In thousands)	Amortized Cost		Estimated Fair Value		Tax Equivalent Yield
Securities Available-for-Sale
U.S. Treasury and other U.S. Government sponsored entities’ notes:
Due one through five years	$	220,000	$	219,135	1.29	%
Due five through ten years	307,605		302,928		2.40	%
Total	$	527,605	$	522,063	1.94	%
U.S. Government sponsored entities’ asset-backed securities	$	907,989	$	911,493	2.23	%
Securities Held-to-Maturity
Obligations of states and political subdivisions
Due greater than ten years	$	48,190	$	48,924	4.65	%
Total	$	48,190	$	48,924	4.65	%
U.S. Government sponsored entities’ asset-backed securities	$	101,112	$	102,504	3.42	%

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Loans (Tables)

12 Months Ended

Dec. 31, 2015

Loans and Leases Receivable Disclosure [Abstract]

Schedule of composition of loan portfolio by class of loan

The composition of the loan portfolio, by class of loan, as of December 31, 2015 and December 31, 2014 was as follows:

	12/31/2015						12/31/2014
(In thousands)	Loan Balance		Accrued Interest Receivable		Recorded Investment		Loan Balance		Accrued Interest Receivable		Recorded Investment
Commercial, financial and agricultural *	$	955,727	$	3,437	$	959,164	$	856,535	$	3,218	$	859,753
Commercial real estate *	1,113,603		4,009		1,117,612		1,069,637		3,546		1,073,183
Construction real estate:
SEPH commercial land and development	2,044		—		2,044		2,195		—		2,195
Remaining commercial	128,046		321		128,367		115,139		300		115,439
Mortgage	36,722		75		36,797		31,148		72		31,220
Installment	6,533		21		6,554		7,322		23		7,345
Residential real estate:
Commercial	410,571		1,014		411,585		417,612		1,038		418,650
Mortgage	1,210,819		1,469		1,212,288		1,189,709		1,548		1,191,257
HELOC	211,415		769		212,184		216,915		803		217,718
Installment	22,638		78		22,716		27,139		97		27,236
Consumer	967,111		3,032		970,143		893,160		2,967		896,127
Leases	2,856		14		2,870		3,171		17		3,188
Total loans	$	5,068,085	$	14,239	$	5,082,324	$	4,829,682	$	13,629	$	4,843,311

* Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

Schedule of recorded investment in nonaccrual restructured and loans past due 90 days or more and accruing

The following table presents the recorded investment in nonaccrual loans, accruing troubled debt restructurings ("TDRs"), and loans past due 90 days or more and still accruing by class of loan as of December 31, 2015 and December 31, 2014:

	12/31/2015
(In thousands)	Nonaccrual Loans		Accruing Troubled Debt Restructurings		Loans Past Due 90 Days or More and Accruing		Total Nonperforming Loans
Commercial, financial and agricultural	$	21,676	$	8,947	$	—	$	30,623
Commercial real estate	15,268		2,757		—		18,025
Construction real estate:
SEPH commercial land and development	2,044		—		—		2,044
Remaining commercial	4,162		514		—		4,676
Mortgage	7		110		—		117
Installment	64		114		—		178
Residential real estate:
Commercial	25,063		261		—		25,324
Mortgage	20,378		10,143		851		31,372
HELOC	1,749		873		27		2,649
Installment	1,657		635		4		2,296
Consumer	3,819		734		1,093		5,646
Total loans	$	95,887	$	25,088	$	1,975	$	122,950

	12/31/2014
(In thousands)	Nonaccrual Loans		Accruing Troubled Debt Restructurings		Loans Past Due 90 Days or More and Accruing		Total Nonperforming Loans
Commercial, financial and agricultural	$	18,826	$	297	$	229	$	19,352
Commercial real estate	19,299		2,690		—		21,989
Construction real estate:
SEPH commercial land and development	2,078		—		—		2,078
Remaining commercial	5,558		51		—		5,609
Mortgage	59		94		9		162
Installment	115		125		—		240
Residential real estate:
Commercial	24,336		594		—		24,930
Mortgage	21,869		10,349		1,329		33,547
HELOC	1,879		630		9		2,518
Installment	1,743		779		—		2,522
Consumer	4,631		723		1,133		6,487
Total loans	$	100,393	$	16,332	$	2,709	$	119,434

Schedule of loans individually evaluated for impairment and loans collectively evaluated for impairment

The following table provides additional information regarding those nonaccrual and accruing TDR loans that are individually evaluated for impairment and those collectively evaluated for impairment as of December 31, 2015 and December 31, 2014.

	12/31/2015						12/31/2014
(In thousands)	Nonaccrual and accruing TDRs		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Nonaccrual and accruing TDRs		Loans individually evaluated for impairment		Loans collectively evaluated for impairment
Commercial, financial and agricultural	$	30,623	$	30,595	$	28	$	19,123	$	19,106	$	17
Commercial real estate	18,025		18,025		—		21,989		21,989		—
Construction real estate:
SEPH commercial land and development	2,044		2,044		—		2,078		2,078		—
Remaining commercial	4,676		4,676		—		5,609		5,609		—
Mortgage	117		—		117		153		—		153
Installment	178		—		178		240		—		240
Residential real estate:
Commercial	25,324		25,324		—		24,930		24,930		—
Mortgage	30,521		—		30,521		32,218		—		32,218
HELOC	2,622		—		2,622		2,509		—		2,509
Installment	2,292		—		2,292		2,522		—		2,522
Consumer	4,553		—		4,553		5,354		—		5,354
Total loans	$	120,975	$	80,664	$	40,311	$	116,725	$	73,712	$	43,013

Schedule of loans individually evaluated for impairment by class of loan

The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2015 and December 31, 2014.

	12/31/2015						12/31/2014
(In thousands)	Unpaid principal balance		Recorded investment		Allowance for loan losses allocated		Unpaid principal balance		Recorded investment		Allowance for loan losses allocated
With no related allowance recorded
Commercial, financial and agricultural	$	32,583	$	18,763	$	—	$	30,601	$	17,883	$	—
Commercial real estate	15,138		14,916		—		27,923		20,696		—
Construction real estate:
SEPH commercial land and development	10,834		2,044		—		11,026		2,078		—
Remaining commercial	2,506		1,531		—		1,427		391		—
Residential real estate:
Commercial	23,798		23,480		—		25,822		23,352		—
With an allowance recorded
Commercial, financial and agricultural	16,155		11,832		1,904		1,251		1,223		981
Commercial real estate	3,195		3,109		381		1,310		1,293		262
Construction real estate:
Remaining commercial	3,145		3,145		1,356		5,218		5,218		1,812
Residential real estate:
Commercial	1,951		1,844		550		1,578		1,578		605
Total	$	109,305	$	80,664	$	4,191	$	106,156	$	73,712	$	3,660

Schedule of average recorded investment and interest income recognized on loans individually evaluated for impairment

The following tables present the average recorded investment and interest income recognized subsequent to impairment on loans individually evaluated for impairment as of and for the years ended December 31, 2015, 2014, and 2013:

			Year ended December 31, 2015
(In thousands)	Recorded Investment as of December 31, 2015		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	30,595	$	20,179	$	340
Commercial real estate	18,025		17,883		550
Construction real estate:
SEPH commercial land and development	2,044		2,066		21
Remaining commercial	4,676		5,666		26
Residential real estate:
Commercial	25,324		24,968		1,026
Consumer	—		—		—
Total	$	80,664	$	70,762	$	1,963

			Year ended December 31, 2014
(In thousands)	Recorded Investment as of December 31, 2014		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	19,106	$	19,518	$	360
Commercial real estate	21,989		31,945		1,027
Construction real estate:
SEPH commercial land and development	2,078		3,658		146
Remaining commercial	5,609		8,784		61
Residential real estate:
Commercial	24,930		28,306		1,084
Consumer	—		403		—
Total	$	73,712	$	92,614	$	2,678

			Year ended December 31, 2013
(In thousands)	Recorded Investment as of December 31, 2013		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	20,727	$	20,523	$	412
Commercial real estate	41,822		41,426		1,151
Construction real estate:
SEPH commercial land and development	4,777		8,723		—
Remaining commercial	10,782		17,829		616
Residential real estate:
Commercial	33,408		34,972		461
Consumer	799		616		—
Total	$	112,315	$	124,089	$	2,640

Schedule of aging of the recorded investment in past due loans

The following tables present the aging of the recorded investment in past due loans as of December 31, 2015 and December 31, 2014 by class of loan.

	12/31/2015
(In thousands)	Accruing loans past due 30-89 days		Past due nonaccrual loans and loans past due 90 days or more and accruing *		Total past due		Total current		Total recorded investment
Commercial, financial and agricultural	$	670	$	7,536	$	8,206	$	950,958	$	959,164
Commercial real estate	142		530		672		1,116,940		1,117,612
Construction real estate:
SEPH commercial land and development	—		2,044		2,044		—		2,044
Remaining commercial	165		84		249		128,118		128,367
Mortgage	63		7		70		36,727		36,797
Installment	200		46		246		6,308		6,554
Residential real estate:
Commercial	325		19,521		19,846		391,739		411,585
Mortgage	10,569		8,735		19,304		1,192,984		1,212,288
HELOC	487		186		673		211,511		212,184
Installment	426		318		744		21,972		22,716
Consumer	11,458		3,376		14,834		955,309		970,143
Leases	—		—		—		2,870		2,870
Total loans	$	24,505	$	42,383	$	66,888	$	5,015,436	$	5,082,324

* Includes $2.0 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans.

	12/31/2014
(In thousands)	Accruing loans past due 30-89 days		Past due nonaccrual loans and loans past due 90 days or more and accruing *		Total past due		Total current		Total recorded investment
Commercial, financial and agricultural	$	6,482	$	7,508	$	13,990	$	845,763	$	859,753
Commercial real estate	808		8,288		9,096		1,064,087		1,073,183
Construction real estate:
SEPH commercial land and development	—		2,068		2,068		127		2,195
Remaining commercial	166		77		243		115,196		115,439
Mortgage	39		68		107		31,113		31,220
Installment	21		25		46		7,299		7,345
Residential real estate:
Commercial	250		19,592		19,842		398,808		418,650
Mortgage	11,146		10,637		21,783		1,169,474		1,191,257
HELOC	262		387		649		217,069		217,718
Installment	596		464		1,060		26,176		27,236
Consumer	11,304		3,818		15,122		881,005		896,127
Leases	—		—		—		3,188		3,188
Total loans	$	31,074	$	52,932	$	84,006	$	4,759,305	$	4,843,311

Schedule of recorded investment by loan grade

The tables below present the recorded investment by loan grade at December 31, 2015 and December 31, 2014 for all commercial loans:

	12/31/2015
(In thousands)	5 Rated		6 Rated		Impaired		Pass Rated		Recorded Investment
Commercial, financial and agricultural*	$	4,392	$	347	$	30,623	$	923,802	$	959,164
Commercial real estate*	14,880		3,417		18,025		1,081,290		1,117,612
Construction real estate:
SEPH commercial land and development	—		—		2,044		—		2,044
Remaining commercial	2,151		122		4,676		121,418		128,367
Residential real estate:
Commercial	3,280		386		25,324		382,595		411,585
Leases	—		—		—		2,870		2,870
Total Commercial Loans	$	24,703	$	4,272	$	80,692	$	2,511,975	$	2,621,642

* Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

	12/31/2014
(In thousands)	5 Rated		6 Rated		Impaired		Pass Rated		Recorded Investment
Commercial, financial and agricultural*	$	1,874	$	1,201	$	19,123	$	837,555	$	859,753
Commercial real estate*	8,448		1,712		21,989		1,041,034		1,073,183
Construction real estate:
SEPH commercial land and development	—		—		2,078		117		2,195
Remaining commercial	3,349		57		5,609		106,424		115,439
Residential real estate:
Commercial	2,581		598		24,930		390,541		418,650
Leases	—		—		—		3,188		3,188
Total Commercial Loans	$	16,252	$	3,568	$	73,729	$	2,378,859	$	2,472,408

Schedule of troubled debt restructurings on financing receivables

The following tables detail the number of contracts modified as TDRs during the years ended December 31, 2015, 2014 and 2013 as well as the recorded investment of these contracts at December 31, 2015, 2014, and 2013. The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal.

	Year ended December 31, 2015
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	39	$	8,948	$	3,640	$	12,588
Commercial real estate	14	637		3,523		4,160
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	2	513		—		513
Mortgage	1	19		—		19
Installment	—	—		—		—
Residential real estate:
Commercial	11	—		1,185		1,185
Mortgage	39	1,132		2,122		3,254
HELOC	26	315		45		360
Installment	9	—		155		155
Consumer	283	202		888		1,090
Total loans	424	$	11,766	$	11,558	$	23,324

	Year ended December 31, 2014
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	30	$	292	$	431	$	723
Commercial real estate	11	1,184		1,254		2,438
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	2	—		206		206
Mortgage	—	—		—		—
Installment	2	—		56		56
Residential real estate:
Commercial	9	—		866		866
Mortgage	46	32		2,325		2,357
HELOC	10	85		241		326
Installment	10	109		12		121
Consumer	330	244		1,058		1,302
Total loans	450	$	1,946	$	6,449	$	8,395

	Year ended December 31, 2013
(In thousands)	Number of Contracts	Accruing		Nonaccrual		Recorded Investment
Commercial, financial and agricultural	34	$	7	$	1,334	$	1,341
Commercial real estate	22	—		8,563		8,563
Construction real estate:
SEPH commercial land and development	—	—		—		—
Remaining commercial	3	—		98		98
Mortgage	—	—		—		—
Installment	4	26		25		51
Residential real estate:
Commercial	15	—		2,552		2,552
Mortgage	62	1,967		2,278		4,245
HELOC	16	175		—		175
Installment	13	113		179		292
Consumer	327	805		345		1,150
Total loans	496	$	3,093	$	15,374	$	18,467

Schedule recorded investment in financing receivables which were modified as troubled debt restructurings within the previous 12 months and for which there was a payment default during the 12 month

The following table presents the recorded investment in financing receivables which were modified as TDRs within the previous 12 months and for which there was a payment default during the year ended December 31, 2015, December 31, 2014, and December 31, 2013. For this table, a loan is considered to be in default when it becomes 30 days contractually past due under modified terms. The additional allowance for loan loss resulting from the defaults on TDR loans was immaterial.

	Year ended December 31, 2015			Year ended December 31, 2014				Year ended December 31, 2013
(In thousands)	Number of Contracts	Recorded Investment		Number of Contracts		Recorded Investment		Number of Contracts	Recorded Investment
Commercial, financial and agricultural	1	$	1	4		$	206	11	$	771
Commercial real estate	1	626		1		302		11	2,839
Construction real estate:
SEPH commercial land and development	—	—		—		—		—	—
Remaining commercial	—	—		—		—		—	—
Mortgage	—	—		—		—		—	—
Installment	—	—		—		—		1	10
Residential real estate:
Commercial	3	1,005		1		3		4	1,683
Mortgage	12	682		14		810		26	1,533
HELOC	1	5		2		160		—	—
Installment	2	101		2		12		5	72
Consumer	47	434		62		516		74	471
Leases	—	—		—		—		—	—
Total loans	67	$	2,854	$	86	$	2,009	132	$	7,379

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Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2015

Allowance For Loan Losses [Abstract]

Schedule of the activity in the allowance for loan losses

The activity in the allowance for loan losses for the years ended December 31, 2015, 2014, and 2013 is summarized in the following tables.

	Year ended December 31, 2015
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for credit losses:
Beginning balance	$	10,719		$	8,808		$	8,652		$	14,772		$	11,401		$	—		$	54,352
Charge-offs	2,478			348			470			2,352			8,642			—			14,290
Recoveries	(1,373		)	(2,241		)	(2,092		)	(2,438		)	(3,295		)	(3		)	(11,442		)
Net charge-offs (recoveries)	1,105			(1,893		)	(1,622		)	(86		)	5,347			(3		)	2,848
Provision (Recovery)	$	4,080		$	(1,504	)	$	(1,710	)	$	(1,344	)	$	5,470		$	(2	)	$	4,990
Ending balance	$	13,694		$	9,197		$	8,564		$	13,514		$	11,524		1			$	56,494

	Year ended December 31, 2014
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for credit losses:
Beginning balance	$	14,218		$	15,899		$	6,855		$	14,251		$	8,245		$	—		$	59,468
Charge-offs	3,779			8,003			1,316			3,944			7,738			—			24,780
Recoveries	(1,003		)	(7,759		)	(12,572		)	(2,985		)	(2,671		)	(7		)	(26,997		)
Net charge-offs (recoveries)	2,776			244			(11,256		)	959			5,067			(7		)	(2,217		)
(Recovery) Provision	(723		)	(6,847		)	(9,459		)	1,480			8,223			(7		)	(7,333		)
Ending balance	$	10,719		$	8,808		$	8,652		$	14,772		$	11,401		—			$	54,352

	Year ended December 31, 2013
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for credit losses:
Beginning balance	$	15,635		$	11,736		$	6,841		$	14,759		$	6,566		$	—		$	55,537
Charge-offs	6,160			1,832			1,791			3,207			6,163			—			19,153
Recoveries	(1,314		)	(726		)	(9,378		)	(6,000		)	(2,249		)	(2		)	(19,669		)
Net charge-offs (recoveries)	4,846			1,106			(7,587		)	(2,793		)	3,914			(2		)	(516		)
Provision (Recovery)	3,429			5,269			(7,573		)	(3,301		)	5,593			(2		)	3,415
Ending balance	$	14,218		$	15,899		$	6,855		$	14,251		$	8,245		—			$	59,468

Schedule of the composition of the allowance for loan losses

The composition of the allowance for loan losses at December 31, 2015 and 2014 was as follows: 

	December 31, 2015
(In thousands)	Commercial, financial, and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	1,904		$	381		$	1,356		$	550		$	—		$	—		$	4,191
Collectively evaluated for impairment	11,790			8,816			7,208			12,964			11,524			1			52,303
Total ending allowance balance	$	13,694		$	9,197		$	8,564		$	13,514		$	11,524		$	1		$	56,494
Loan Balance:
Loans individually evaluated for impairment	$	30,545		$	18,015		$	6,716		$	25,323		$	—		$	—		$	80,599
Loans collectively evaluated for impairment	925,182			1,095,588			166,629			1,830,120			967,111			2,856			4,987,486
Total ending loan balance	$	955,727		$	1,113,603		$	173,345		$	1,855,443		$	967,111		$	2,856		$	5,068,085
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment	6.23		%	2.11		%	20.19		%	2.17		%	—		%	—		%	5.20		%
Loans collectively evaluated for impairment	1.27		%	0.80		%	4.33		%	0.71		%	1.19		%	0.04		%	1.05		%
Total	1.43		%	0.83		%	4.94		%	0.73		%	1.19		%	0.04		%	1.11		%
Recorded Investment:
Loans individually evaluated for impairment	$	30,595		$	18,025		$	6,720		$	25,324		$	—		$	—		$	80,664
Loans collectively evaluated for impairment	928,569			1,099,587			167,042			1,833,449			970,143			2,870			5,001,660
Total ending recorded investment	$	959,164		$	1,117,612		$	173,762		$	1,858,773		$	970,143		$	2,870		$	5,082,324

	December 31, 2014
(In thousands)	Commercial, financial, and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	981		$	262		$	1,812		$	605		$	—		$	—		$	3,660
Collectively evaluated for impairment	9,738			8,546			6,840			14,167			11,401			—			50,692
Total ending allowance balance	$	10,719		$	8,808		$	8,652		$	14,772		$	11,401		$	—		$	54,352
Loan Balance:
Loans individually evaluated for impairment	$	19,103		$	21,978		$	7,690		$	24,905		$	—		$	—		$	73,676
Loans collectively evaluated for impairment	837,432			1,047,659			148,114			1,826,470			893,160			3,171			4,756,006
Total ending loan balance	$	856,535		$	1,069,637		$	155,804		$	1,851,375		$	893,160		$	3,171		$	4,829,682
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment	5.14		%	1.19		%	23.56		%	2.43		%	—		%	—		%	4.97		%
Loans collectively evaluated for impairment	1.16		%	0.82		%	4.62		%	0.78		%	1.28		%	—		%	1.07		%
Total	1.25		%	0.82		%	5.55		%	0.80		%	1.28		%	—		%	1.13		%
Recorded Investment:
Loans individually evaluated for impairment	$	19,106		$	21,989		$	7,687		$	24,930		$	—		$	—		$	73,712
Loans collectively evaluated for impairment	840,647			1,051,194			148,512			1,829,931			896,127			3,188			4,769,599
Total ending recorded investment	$	859,753		$	1,073,183		$	156,199		$	1,854,861		$	896,127		$	3,188		$	4,843,311

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Other Real Estate Owned (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Line Items]

Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Table Text Block] [Text Block]

The carrying amount of foreclosed properties held at December 31, 2015 and December 31, 2014 are listed below, as well as the recorded investment of loans secured by residential real estate properties for which formal foreclosure proceedings were in process at those dates.

(In thousands)	December 31, 2015		December 31, 2014
OREO:
Commercial real estate	$	8,333	$	6,352
Construction real estate	7,259		11,281
Residential real estate	3,059		4,972
Total OREO	$	18,651	$	22,605
Loans in process of foreclosure:
Residential real estate	$	2,021	$	2,807

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Premises And Equipment (Tables)

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Schedule of major categories of premises and equipment

The major categories of premises and equipment and accumulated depreciation are summarized as follows:

December 31 (In thousands)	2015			2014
Land	$	19,123		$	17,836
Buildings	74,525			71,002
Equipment, furniture and fixtures	47,839			42,139
Leasehold improvements	3,878			3,439
Total	$	145,365		$	134,416
Less accumulated depreciation	(85,872		)	(78,937		)
Premises and equipment, net	$	59,493		$	55,479

Schedule of future minimum rental payments under operating leases

The Corporation leases certain premises and equipment accounted for as operating leases. The following is a schedule of the future minimum rental payments required for the next five years under such leases with initial terms in excess of one year: 

(In thousands)
2016	$	1,475
2017	1,276
2018	1,104
2019	1,019
2020	394
Thereafter	520
Total	$	5,788

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Investment in Qualified Affordable Housing (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Equity Method Investments [Line Items]

Activity in Affordable Housing Program Obligation [Table Text Block]

The following table summarizes the impact of retrospective application to the balance sheet and income statement for all prior periods presented:

(In thousands)	December 31, 2014
Total assets
As previously reported	$	7,003,256
As reported under the new guidance	7,001,199
Retained earnings
As previously reported	$	486,541
As reported under the new guidance	484,484
Total equity
As previously reported	$	698,598
As reported under the new guidance	696,541

(In thousands)	12 months ended December 31, 2014		12 months ended December 31, 2013
Total other expense
As previously reported	$	195,234	$	188,529
As reported under the new guidance	187,510		181,515
Income tax expense
As previously reported	$	28,602	$	25,131
As reported under the new guidance	36,459		32,503
Net income
As previously reported	$	84,090	$	77,227
As reported under the new guidance	83,957		76,869

Equity Method Investments [Table Text Block]

The table below details the balances of Park’s affordable housing tax credit investments and related unfunded commitments as of December 31, 2015 and 2014.

(In thousands)	December 31, 2015		December 31, 2014
Affordable housing tax credit investments	$	51,247	$	48,911
Unfunded commitments	20,311		16,629

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Deposits (Tables)

12 Months Ended

Dec. 31, 2015

Deposits [Abstract]

Schedule of summary of non-interest bearing and interest bearing deposits

At December 31, 2015 and 2014, non-interest bearing and interest bearing deposits were as follows:

December 31 (In thousands)	2015		2014
Non-interest bearing	$	1,404,032	$	1,269,296
Interest bearing	3,943,610		3,858,704
Total	$	5,347,642	$	5,128,000

Schedule of maturities of time deposits

At December 31, 2015, the maturities of time deposits were as follows: 

(In thousands)
2016	$	814,387
2017	221,761
2018	56,744
2019	145,027
2020	52,062
After 5 years	431
Total	$	1,290,412

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Repurchase Agreements (Tables)

12 Months Ended

Dec. 31, 2015

Transfers of Certain Financial Assets Accounted for as Secured Borrowings [Abstract]

Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings [Table Text Block]

The following table presents the carrying value of Park's repurchase agreements by remaining contractual maturity at December 31, 2015 and December 31, 2014:

	December 31, 2015
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government and agency securities	$	247,618	$	2,239	$	—	$	304,385	$	554,242
	December 31, 2014
(In thousands)	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
U.S. government and agency securities	$	268,427	$	164	$	4,940	$	303,449	$	576,980

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Short-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2015

Short-term Debt [Abstract]

Schedule of short-term debt

The outstanding balances for all short-term borrowings as of December 31, 2015 and 2014 and the weighted-average interest rates as of and paid during each of the years then ended were as follows: 

(In thousands)	Repurchase agreements			FHLB Advances
2015
Ending balance	$	254,242		$	140,000
Highest month-end balance	278,324			140,000
Average daily balance	257,622			1,096
Weighted-average interest rate:
As of year-end	0.17		%	0.56		%
Paid during the year	0.18		%	0.59		%
2014
Ending balance	$	276,980		$	—
Highest month-end balance	307,025			—
Average daily balance	262,709			561
Weighted-average interest rate:
As of year-end	0.18		%	—		%
Paid during the year	0.19		%	0.10		%

Short-term borrowings were as follows:

December 31 (In thousands)	2015		2014
Securities sold under agreements to repurchase	$	254,242	$	276,980
FHLB advances	140,000		—
Total short-term borrowings	$	394,242	$	276,980

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of maturities of long-term debt

Long-term debt is listed below:

December 31,	2015					2014
(In thousands)	Outstanding Balance			Average Rate		Outstanding Balance			Average Rate
Total Federal Home Loan Bank advances by year of maturity:
2015	—			—	%	51,000			2.00	%
2016	—			—	%	26,000			0.92	%
2017	50,000			1.25	%	51,000			1.28	%
2018	150,000			2.04	%	125,049			2.11	%
2019	75,000			1.96	%	75,333			1.97	%
2020	25,000			2.14	%	25,462			2.19	%
Thereafter	150,000			3.32	%	150,699			3.33	%
Total	$	450,000		2.37	%	504,543			2.30	%
Total broker repurchase agreements by year of maturity:
2017	300,000			1.75	%	300,000			1.75	%
Total	$	300,000		1.75	%	$	300,000		1.75	%
Total combined long-term debt by year of maturity:
2015	—			—	%	51,000			2.00	%
2016	—			—	%	26,000			0.92	%
2017	350,000			1.68	%	351,000			1.68	%
2018	150,000			2.04	%	125,049			2.11	%
2019	75,000			1.96	%	75,333			1.97	%
2020	25,000			2.14	%	25,462			2.19	%
Thereafter	150,000			3.32	%	150,699			3.33	%
Total	$	750,000		2.12	%	$	804,543		2.09	%
Prepayment penalty	(11,895		)	—		(17,941		)	—
Total long-term debt	$	738,105		2.16	%	$	786,602		2.89	%

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Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2015

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Schedule of plan assets and benefit obligation activity

Using an accrual measurement date of December 31, 2015 and 2014, plan assets and benefit obligation activity for the Pension Plan are listed below:

(In thousands)	2015			2014
Change in fair value of plan assets
Fair value at beginning of measurement period	$	160,598		$	152,739
Actual return on plan assets	(58		)	15,511
Benefits paid	(7,042		)	(7,652		)
Fair value at end of measurement period	$	153,498		$	160,598
Change in benefit obligation
Projected benefit obligation at beginning of measurement period	$	109,328		$	89,179
Service cost	5,368			4,331
Interest cost	4,695			4,577
Actuarial (gains) loss	(10,104		)	18,893
Benefits paid	(7,042		)	(7,652		)
Projected benefit obligation at the end of measurement period	$	102,245		$	109,328
Funded status at end of year (fair value of plan assets less benefit obligation)	$	51,253		$	51,270

Schedule of allocation of plan assets

The asset allocation for the Pension Plan as of each measurement date, by asset category, was as follows:

		Percentage of Plan Assets
Asset category	Target Allocation	2015		2014
Equity securities	50% - 100%	85	%	85	%
Fixed income and cash equivalents	remaining balance	15	%	15	%
Total		100	%	100	%

Schedule of assumptions used to determine benefit obligations

The weighted average assumptions used to determine benefit obligations at December 31, 2015, 2014 and 2013 were as follows:

	2015		2014		2013
Discount rate	4.88	%	4.42	%	5.30	%
Rate of compensation increase
Under age 30	10.00	%	10.00	%	10.00	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40 and over	3.00	%	3.00	%	3.00	%

Schedule of estimated future pension benefit Payments

The estimated future pension benefit payments reflecting expected future service for the next ten years are shown below (in thousands):

2016	$	5,010
2017	5,321
2018	5,800
2019	6,780
2020	7,317
2021-2025	45,831
Total	$	76,059

Schedule of balances of accumulated other comprehensive income loss

The following table shows ending balances of accumulated other comprehensive loss at December 31, 2015 and 2014.

(In thousands)	2015			2014
Prior service cost	$	—		$	(15	)
Net actuarial loss	(23,618		)	(22,855		)
Total	(23,618		)	(22,870		)
Deferred taxes	8,267			8,005
Accumulated other comprehensive loss	$	(15,351	)	$	(14,865	)

Schedule of components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss)

Using an actuarial measurement date of December 31 for 2015, 2014 and 2013, components of net periodic benefit cost and other amounts recognized in other comprehensive (loss) income were as follows:

(In thousands)	2015			2014			2013
Components of net periodic benefit cost and other amounts recognized in other comprehensive (loss) income
Service cost	$	(5,368	)	$	(4,331	)	$	(4,817	)
Interest cost	(4,695		)	(4,577		)	(4,223		)
Expected return on plan assets	11,420			10,869			9,536
Amortization of prior service cost	(15		)	(19		)	(20		)
Recognized net actuarial loss	(637		)	—			(2,703		)
Net periodic benefit income (cost)	$	705		$	1,942		$	(2,227	)
Change to net actuarial (loss) gain for the period	$	(1,400	)	$	(14,276	)	$	30,409
Amortization of prior service cost	15			19			20
Amortization of net loss	637			—			2,703
Total recognized in other comprehensive (loss) income	(748		)	(14,257		)	33,132
Total recognized in net benefit cost and other comprehensive (loss) income	$	(43	)	$	(12,315	)	$	30,905

Schedule of assumptions used to determine costs

The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2015, 2014 and 2013 are listed below:

	2015		2014		2013
Discount Rate	4.42	%	5.30	%	4.47	%
Rate of compensation increase
Under age 30	10.00	%	10.00	%	10.00	%
Ages 30-39	6.00	%	6.00	%	6.00	%
Ages 40 and over	3.00	%	3.00	%	3.00	%
Expected long-term return on plan assets	7.25	%	7.25	%	7.50	%

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of deferred tax assets and liabilities

Significant components of the Corporation’s deferred tax assets and liabilities are as follows:

December 31 (In thousands)	2015			2014
Deferred tax assets:
Allowance for loan losses	$	19,773		$	19,023
Accumulated other comprehensive loss – Pension Plan	8,266			8,005
Accumulated other comprehensive loss – Unrealized losses on securities	157			—
Deferred compensation	3,908			3,820
OREO valuation adjustments	2,418			3,984
Net deferred loan fees	1,204			933
Deferred contract bonus	1,031			—
Other	4,171			4,338
Total deferred tax assets	$	40,928		$	40,103
Deferred tax liabilities:
Accumulated other comprehensive income – Unrealized gains on securities	—			677
Deferred investment income	10,199			10,199
Pension plan	26,205			25,949
Mortgage servicing rights	3,153			3,015
Partnership adjustments	560			865
Other	872			804
Total deferred tax liabilities	$	40,989		$	41,509
Net deferred tax asset (liability)	$	(61	)	$	(1,406	)

Federal and state income taxes

The components of the provision for federal income taxes are shown below:

December 31, (In thousands)	2015			2014		2013
Currently payable
Federal	$	32,817		$	33,931	$	34,435
Deferred
Federal	(250		)	2,528		(1,932		)
Total	$	32,567		$	36,459	$	32,503

Schedule of income tax rate reconciliation

The following is a reconciliation of income tax expense to the amount computed at the statutory rate of 35% for the years ended December 31, 2015, 2014 and 2013.

	2015		2014		2013
Statutory federal corporate tax rate	35.0	%	35.0	%	35.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest	(0.5	)%	(0.5	)%	(0.8	)%
Bank owned life insurance	(1.8	)%	(1.4	)%	(1.6	)%
Investments in qualified affordable housing projects, net of tax benefits	(1.9	)%	(1.6	)%	(1.7	)%
Other tax credits	(0.9	)%	—	%	—	%
KSOP dividend deduction	(1.0	)%	(1.0	)%	(1.1	)%
Other	(0.2	)%	(0.2	)%	(0.1	)%
Effective tax rate	28.7	%	30.3	%	29.7	%

Reconciliation of unrecognized tax benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.

(In thousands)	2015			2014			2013
January 1 Balance	$	532		$	518		$	517
Additions based on tax positions related to the current year	80			76			74
Additions for tax positions of prior years	16			14			4
Reductions for tax positions of prior years	—			—			—
Reductions due to statute of limitations	(70		)	(76		)	(77		)
December 31 Balance	$	558		$	532		$	518

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Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2015

Other Comprehensive Income (Loss) [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Other comprehensive income (loss) components, net of tax, are shown in the following table for the years ended December 31, 2015, 2014 and 2013.

Year ended December 31, (in thousands)		Changes in Pension Plan assets and benefit obligations			Unrealized gains and losses on available-for-sale securities			Total
Beginning balance at December 31, 2014		$	(14,865	)	$	1,257		$	(13,608	)
	Other comprehensive (loss) before reclassifications	(910		)	(1,549		)	(2,459		)
	Amounts reclassified from accumulated other comprehensive loss	424			—			424
Net current period other comprehensive loss		(486		)	(1,549		)	(2,035		)
Ending balance at December 31, 2015		$	(15,351	)	$	(292	)	$	(15,643	)
Beginning balance at December 31, 2013		$	(5,598	)	$	(29,821	)	$	(35,419	)
	Other comprehensive (loss) gain before reclassifications	(9,279		)	30,325			21,046
	Amounts reclassified from accumulated other comprehensive loss	12			753			765
Net current period other comprehensive (loss) income		(9,267		)	31,078			21,811
Ending balance at December 31, 2014		$	(14,865	)	$	1,257		$	(13,608	)
Beginning balance at December 31, 2012		$	(27,134	)	$	9,616		$	(17,518	)
	Other comprehensive gain (loss) before reclassifications	19,766			(39,448		)	(19,682		)
	Amounts reclassified from accumulated other comprehensive loss	1,770			11			1,781
Net current period other comprehensive income (loss)		21,536			(39,437		)	(17,901		)
Ending balance at December 31, 2013		$	(5,598	)	$	(29,821	)	$	(35,419	)

Schedule of components of other comprehensive income (loss)

The following table provides information concerning amounts reclassified out of accumulated other comprehensive loss for the years ended December 31, 2015, 2014 and 2013:

		Amount Reclassified from Accumulated Other Comprehensive Income (Loss)						Affected Line Item in the Statement of Income
(In thousands)		2015		2014		2013
Amortization of defined benefit pension items
	Amortization of prior service cost	$	15	$	19	$	20	Employee benefits
	Amortization of net loss	637		—		2,703		Employee benefits
Total income before income taxes		652		19		2,723		Total income before income taxes
	Federal income taxes	228		7		953		Federal income taxes
	Net of tax	$	424	$	12	$	1,770	Net of tax
Unrealized gains & losses on available for sale securities
	Loss on sale of investment securities	$	—	$	1,158	$	—	Gain (loss) on sale of investment securities
	Other than temporary impairment	—		—		17		Miscellaneous expense
Total income before income taxes		—		1,158		17		Total income before income taxes
	Federal income taxes	—		405		6		Federal income taxes
	Net of tax	$	—	$	753	$	11	Net of tax

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Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted earnings per common share

The following table sets forth the computation of basic and diluted earnings per common share:

Year ended December 31 (In thousands, except share data)	2015		2014		2013
Numerator:
Net income available to common shareholders	$	81,012	$	83,957	$	76,869
Denominator:
Basic earnings per common share:
Weighted-average common shares outstanding	15,364,281		15,394,971		15,412,365
Effect of dilutive securities – performance based restricted stock units	40,459		18,861		—
Diluted earnings per common share:
Adjusted weighted-average shares and assumed vesting	15,404,740		15,413,832		15,412,365
Earnings per common share:
Basic earnings per common share	$	5.27	$	5.45	$	4.99
Diluted earnings per common share	$	5.26	$	5.45	$	4.99

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Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations Of Credit Risk (Tables)

12 Months Ended

Dec. 31, 2015

Risks and Uncertainties [Abstract]

Schedule of off-balance sheet financial instruments with credit risk

The total amounts of off-balance sheet financial instruments with credit risk were as follows:

December 31 (In thousands)	2015		2014
Loan commitments	$	888,411	$	869,793
Standby letters of credit	12,326		12,473

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Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2015

Transfers and Servicing of Financial Assets [Abstract]

Schedule of servicing assets at amortized value

Activity for mortgage servicing rights and the related valuation allowance follows:

December 31 (In thousands)	2015			2014			2013
Mortgage servicing rights:
Carrying amount, net, beginning of year	$	8,613		$	9,013		$	7,763
Additions	1,748			1,026			2,436
Amortization	(1,637		)	(1,631		)	(2,479		)
Change in valuation allowance	284			205			1,293
Carrying amount, net, end of year	$	9,008		$	8,613		$	9,013
Valuation allowance:
Beginning of year	$	826		$	1,031		$	2,324
Change in valuation allowance	(284		)	(205		)	(1,293		)
End of year	$	542		$	826		$	1,031

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Fair Values (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Schedule of financial assets and liabilities measured on a recurring basis

The following table presents assets and liabilities measured at fair value on a recurring basis:

Fair Value Measurements at December 31, 2015 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2015
Assets
Investment securities:
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	—	$	522,063	$	—	$	522,063
U.S. Government sponsored entities’ asset-backed securities	—		911,493		—		911,493
Equity securities	1,941		—		769		2,710
Mortgage loans held for sale	—		7,306		—		7,306
Mortgage IRLCs	—		165		—		165
Liabilities
Fair value swap	$	—	$	—	$	226	$	226

Fair Value Measurements at December 31, 2014 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2014
Assets
Investment securities:
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	—	$	538,064	$	—	$	538,064
U.S. Government sponsored entities’ asset-backed securities	—		761,153		—		761,153
Equity securities	1,922		—		776		2,698
Mortgage loans held for sale	—		5,264		—		5,264
Mortgage IRLCs	—		70		—		70
Liabilities
Fair value swap	$	—	$	—	$	226	$	226

Schedule of reconciliation of level 3 input for financial instruments measured on recurring basis

The table below is a reconciliation of the beginning and ending balances of the Level 3 inputs for the years ended December 31, 2015 and 2014, for financial instruments measured on a recurring basis and classified as Level 3:

Level 3 Fair Value Measurements
(In thousands)	Equity Securities			Fair Value Swap
Balance at January 1, 2015	$	776		$	(226	)
Total Gains (Losses)
Included in earnings - realized	—			—
Included in earnings - unrealized	—			—
Included in other comprehensive loss	(7		)	—
Purchases, sales, issuances and settlements, other, net	—			—
Re-evaluation of fair value swap	—			—
Balance at December 31, 2015	$	769		$	(226	)
Balance at January 1, 2014	$	759		$	(135	)
Total Gains (Losses)
Included in earnings - realized	—			—
Included in earnings - unrealized	—			—
Included in other comprehensive income	17			—
Purchases, sales, issuances and settlements, other, net	—			—
Re-evaluation of fair value swap	—			(91		)
Balance at December 31, 2014	$	776		$	(226	)

Schedule of assets and liabilities measured at fair value on a nonrecurring basis

The following table presents assets and liabilities measured at fair value on a nonrecurring basis:

Fair Value Measurements at December 31, 2015 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2015
Impaired Loans:
Commercial real estate	$	—	$	—	$	3,698	$	3,698
Construction real estate:
SEPH commercial land and development	—		—		2,044		2,044
Remaining commercial	—		—		1,872		1,872
Residential real estate	—		—		1,882		1,882
Total impaired loans	$	—	$	—	$	9,496	$	9,496
Mortgage Servicing Rights	$	—	$	1,867	$	—	$	1,867
Other Real Estate Owned:
Commercial real estate	—		—		2,796		2,796
Construction real estate	—		—		3,387		3,387
Residential real estate	—		—		2,332		2,332
Total Other Real Estate Owned	$	—	$	—	$	8,515	$	8,515

Fair Value Measurements at December 31, 2014 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2014
Impaired Loans:
Commercial real estate	$	—	$	—	$	8,481	$	8,481
Construction real estate:
SEPH commercial land and development	—		—		2,078		2,078
Remaining commercial	—		—		3,483		3,483
Residential real estate	—		—		2,921		2,921
Total impaired loans	$	—	$	—	$	16,963	$	16,963
Mortgage Servicing Rights	$	—	$	2,928	$	—	$	2,928
Other Real Estate Owned:
Commercial real estate	—		—		1,470		1,470
Construction real estate	—		—		6,473		6,473
Residential real estate	—		—		2,369		2,369
Total Other Real Estate Owned	$	—	$	—	$	10,312	$	10,312

Schedule of qualitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis

The following tables present qualitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2015 and December 31, 2014:

December 31, 2015
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial real estate	$	3,698	Sales comparison approach	Adj to comparables	0.0% - 45.9% (20.3%)
			Income approach	Capitalization rate	7.0% - 13.3% (9.5%)
			Cost approach	Accumulated depreciation	50.0% (50.0%)
Construction real estate:
SEPH commercial land and development	$	2,044	Sales comparison approach	Adj to comparables	5.0% - 40.0% (22.1%)
			Bulk sale approach	Discount rate	10.7% (10.7%)
Remaining commercial	$	1,872	Sales comparison approach	Adj to comparables	0.0% - 25.3% (1.0%)
			Bulk sale approach	Discount rate	10.0% - 10.7% (10.0%)
Residential real estate	$	1,882	Sales comparison approach	Adj to comparables	0.0% - 96.7% (12.5%)
			Income approach	Capitalization rate	3.8% - 10.1% (9.1%)
			Cost approach	Accumulated depreciation	33.3% - 50.0% (43.4%)
Other real estate owned:
Commercial real estate	$	2,796	Sales comparison approach	Adj to comparables	2.0% - 71.0% (26.9%)
			Income approach	Capitalization rate	9.5% (9.5%)
Construction real estate	$	3,387	Sales comparison approach	Adj to comparables	0.0% - 85.0% (24.3%)
			Bulk sale approach	Discount rate	15.0% (15.0%)
Residential real estate	$	2,332	Sales comparison approach	Adj to comparables	0.1% - 61.8% (23.0%)

December 31, 2014
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial real estate	$	8,481	Sales comparison approach	Adj to comparables	0.0% - 84.0% (38.8%)
			Income approach	Capitalization rate	8.0% - 9.5% (9.4%)
			Cost approach	Accumulated depreciation	23.0% (23.0%)
Construction real estate:
SEPH commercial land and development	$	2,078	Sales comparison approach	Adj to comparables	5.0% - 35.0% (17.5%)
			Bulk sale approach	Discount rate	10.8% (10.8%)
Remaining commercial	$	3,483	Sales comparison approach	Adj to comparables	0.2% - 76.0% (45.4%)
			Bulk sale approach	Discount rate	10.0% - 22.0% (16.5%)
Residential real estate	$	2,921	Sales comparison approach	Adj to comparables	0.0% - 120.6% (11.1%)
			Income approach	Capitalization rate	7.9% - 10.0% (8.0%)
Other real estate owned:
Commercial real estate	$	1,470	Sales comparison approach	Adj to comparables	0.0% - 87.0% (30.5%)
			Income approach	Capitalization rate	8.4% - 10.0% (9.4%)
			Cost approach	Accumulated depreciation	60.0% - 95.0% (77.5%)
Construction real estate	$	6,473	Sales comparison approach	Adj to comparables	0.0% - 82.9% (27.1%)
			Bulk sale approach	Discount rate	15.0% (15.0%)
Residential real estate	$	2,369	Sales comparison approach	Adj to comparables	0.0% - 38.3% (10.1%)
			Income approach	Capitalization rate	6.8% - 7.8% (7.6%)

Fair value, by balance sheet grouping

The fair value of financial instruments at December 31, 2015 and December 31, 2014, was as follows:

	December 31, 2015
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	149,459	$	149,459	$	—	$	—	$	149,459
Investment securities	1,585,568		1,941		1,584,984		769		1,587,694
Accrued interest receivable - securities	4,436		—		4,436		—		4,436
Accrued interest receivable - loans	14,239		—		—		14,239		14,239
Mortgage loans held for sale	7,306		—		7,306		—		7,306
Impaired loans carried at fair value	9,496		—		—		9,496		9,496
Mortgage IRLCs	165		—		165		—		165
Other loans	4,994,624		—		—		4,997,318		4,997,318
Loans receivable, net	$	5,011,591	$	—	$	7,471	$	5,006,814	$	5,014,285
Financial liabilities:
Non-interest bearing checking accounts	$	1,404,032	$	1,404,032	$	—	$	—	$	1,404,032
Interest bearing transaction accounts	1,107,200		1,107,200		—		—		1,107,200
Savings accounts	1,544,708		1,544,708		—		—		1,544,708
Time deposits	1,290,412		—		1,295,329		—		1,295,329
Other	1,290		1,290		—		—		1,290
Total deposits	$	5,347,642	$	4,057,230	$	1,295,329	$	—	$	5,352,559
Short-term borrowings	$	394,242	$	—	$	394,242	$	—	$	394,242
Long-term debt	738,105		—		771,420		—		771,420
Subordinated notes	45,000		—		41,596		—		41,596
Accrued interest payable – deposits	987		66		921		—		987
Accrued interest payable – debt/borrowings	1,351		4		1,347		—		1,351
Derivative financial instruments:
Fair value swap	$	226	$	—	$	—	$	226	$	226

	December 31, 2014
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	237,699	$	237,699	$	—	$	—	$	237,699
Investment securities	1,442,477		1,922		1,442,708		775		1,445,405
Accrued interest receivable - securities	4,048		—		4,048		—		4,048
Accrued interest receivable - loans	13,629		—		—		13,629		13,629
Mortgage loans held for sale	5,264		—		5,264		—		5,264
Impaired loans carried at fair value	16,963		—		—		16,963		16,963
Mortgage IRLCs	70		—		70		—		70
Other loans	4,753,033		—		—		4,757,461		4,757,461
Loans receivable, net	$	4,775,330	$	—	$	5,334	$	4,774,424	$	4,779,758
Financial liabilities:
Non-interest bearing checking accounts	$	1,269,296	$	1,269,296	$	—	—		$	1,269,296
Interest bearing transaction accounts	1,122,079		1,122,079		—		—		1,122,079
Savings accounts	1,325,445		1,325,445		—		—		1,325,445
Time deposits	1,409,911		—		1,422,885		—		1,422,885
Other	1,269		1,269		—		—		1,269
Total deposits	$	5,128,000	$	3,718,089	$	1,422,885	$	—	$	5,140,974
Short-term borrowings	$	276,980	$	—	$	276,980	$	—	$	276,980
Long-term debt	786,602		—		827,500		—		827,500
Subordinated notes	45,000		—		42,995		—		42,995
Accrued interest payable – deposits	1,125		14		1,111		—		1,125
Accrued interest payable – debt/borrowings	1,426		3		1,423		—		1,426
Derivative financial instruments:
Fair value swap	$	226	$	—	$	—	$	226	$	226

Impaired Financing Receivables [Table Text Block]

	December 31, 2015
(In thousands)	Recorded Investment		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Impaired loans recorded at fair value	$	11,783	$	10,512	$	2,287	$	9,496
Remaining impaired loans	68,881		18,193		1,904		66,977
Total impaired loans	$	80,664	$	28,705	$	4,191	$	76,473

	December 31, 2014
(In thousands)	Recorded Investment		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Impaired loans recorded at fair value	$	19,643	$	19,731	$	2,680	$	16,963
Remaining impaired loans	54,069		12,749		980		53,089
Total impaired loans	$	73,712	$	32,480	$	3,660	$	70,052

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Capital Ratios (Tables)

12 Months Ended

Dec. 31, 2015

Capital [Abstract]

Schedule of compliance with regulatory capital requirements under banking regulations

The following table indicates the capital ratios for PNB and Park at December 31, 2015 and 2014.

	As of December 31, 2015
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
The Park National Bank	7.06	%	9.83	%	9.83	%	11.37	%
Park National Corporation	9.22	%	12.82	%	12.54	%	14.49	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well capitalized ratio (PNB only)	5.00	%	8.00	%	6.50	%	10.00	%

	As of December 31, 2014
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1	Total Risk-Based
The Park National Bank	6.96	%	10.13	%	N/A	11.74	%
Park National Corporation	9.25	%	13.39	%	N/A	15.14	%
Adequately capitalized ratio	4.00	%	4.00	%	N/A	8.00	%
Well capitalized ratio (PNB only)	5.00	%	6.00	%	N/A	10.00	%

Schedule of various measures of capital ratio

The following table reflects various measures of capital for Park and PNB:

					To Be Adequately Capitalized				To Be Well Capitalized
(In thousands)	Actual Amount		Ratio		Amount		Ratio		Amount		Ratio
At December 31, 2015
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	588,467	11.37	%	$	414,079	8.00	%	$	517,599	10.00	%
Park	758,988		14.49	%	419,080		8.00	%	N/A		N/A
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	508,763	9.83	%	$	310,560	6.00	%	$	414,079	8.00	%
Park	671,664		12.82	%	314,310		6.00	%	N/A		N/A
Leverage Ratio (to average total assets)
PNB	$	508,763	7.06	%	$	288,147	4.00	%	$	360,183	5.00	%
Park	671,664		9.22	%	291,449		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	$	508,763	9.83	%	$	232,920	4.50	%	$	336,439	6.50	%
Park	656,664		12.54	%	235,732		4.50	%	N/A		N/A
At December 31, 2014
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	563,188	11.74	%	$	383,634	8.00	%	$	479,542	10.00	%
Park	739,517		15.14	%	390,822		8.00	%	N/A		N/A
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	485,943	10.13	%	$	191,817	4.00	%	$	287,725	6.00	%
Park	654,339		13.39	%	195,411		4.00	%	N/A		N/A
Leverage Ratio (to average total assets)
PNB	$	485,943	6.96	%	$	279,210	4.00	%	$	349,013	5.00	%
Park	654,339		9.25	%	282,992		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	N/A		N/A		N/A		N/A		N/A		N/A
Park	N/A		N/A		N/A		N/A		N/A		N/A

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Schedule of operating results by Segment

Segment Information

The Corporation is a financial holding company headquartered in Newark, Ohio. The operating segments for the Corporation are its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio), SEPH and GFSC.

GAAP requires management to disclose information about the different types of business activities in which a company engages and also information on the different economic environments in which a company operates, so that the users of the financial statements can better understand a company’s performance, better understand the potential for future cash flows, and make more informed judgments about the company as a whole. Park’s current operating segments are in line with GAAP as: (i) discrete financial information is available for each operating segment and (ii) the segments are aligned with internal reporting to Park’s Chief Executive Officer and President, who is the chief operating decision maker.  

Operating results for the year ended December 31, 2015 (In thousands)
	PNB		GFSC		SEPH			All Other			Total
Net interest income (loss)	$	220,879	$	6,588	$	(74	)	$	239		$	227,632
Provision for (recovery of) loan losses	7,665		1,415		(4,090		)	—			4,990
Other income	75,188		2		1,848			513			77,551
Other expense	167,476		2,984		6,182			9,972			186,614
Income (loss) before taxes	120,926		2,191		(318		)	(9,220		)	113,579
Income taxes (benefit)	36,581		768		(111		)	(4,671		)	32,567
Net income (loss)	$	84,345	$	1,423	$	(207	)	$	(4,549	)	$	81,012
Balances at December 31, 2015
Assets	$	7,229,764	$	35,793	$	33,541		$	12,256		$	7,311,354
Loans	5,029,072		35,469		15,153			(11,609		)	5,068,085
Deposits	5,447,293		4,627		—			(104,278		)	5,347,642

Operating results for the year ended December 31, 2014 (In thousands)
	PNB		GFSC			SEPH			All Other			Total
Net interest income (loss)	$	218,641	$	7,457		$	958		$	(2,012	)	$	225,044
Provision for (recovery of) loan losses	3,517		1,544			(12,394		)	—			(7,333		)
Other income (loss)	69,384		(1		)	5,991			175			75,549
Other expense	163,641		4,103			11,766			8,000			187,510
Income (loss) before taxes	120,867		1,809			7,577			(9,837		)	120,416
Income taxes (benefit)	37,960		634			2,652			(4,787		)	36,459
Net income (loss)	$	82,907	$	1,175		$	4,925		$	(5,050	)	$	83,957
Balances at December 31, 2014
Assets	$	6,910,386	$	40,308		$	43,762		$	6,743		$	7,001,199
Loans	4,781,761		40,645			23,956			(16,680		)	4,829,682
Deposits	5,222,766		5,883			—			(100,649		)	5,128,000

Operating results for the year ended December 31, 2013 (In thousands)
	PNB		GFSC		SEPH			All Other			Total
Net interest income (loss)	$	210,781	$	8,741	$	(1,325	)	$	2,828		$	221,025
Provision for (recovery of) loan losses	14,039		1,175		(11,799		)	—			3,415
Other income	70,841		11		1,956			469			73,277
Other expense	158,651		3,133		12,211			7,520			181,515
Income (loss) before taxes	108,932		4,444		219			(4,223		)	109,372
Income taxes (benefit)	33,696		1,556		77			(2,826		)	32,503
Net income (loss)	$	75,236	$	2,888	$	142		$	(1,397	)	$	76,869
Balances at December 31, 2013
Assets	$	6,522,174	$	47,115	$	72,781		$	(5,647	)	$	6,636,423
Loans	4,559,406		47,228		38,014			(24,143		)	4,620,505
Deposits	4,896,405		7,159		—			(113,570		)	4,789,994

Schedule of reconciliation of financial information for the reportable segments to the Corporation’s consolidated totals

The following is a reconciliation of financial information for the reportable segments to the Corporation’s consolidated totals:

	2015
(In thousands)	Net Interest Income			Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	227,393		$	7,347	$	169,295	$	37,238		$	7,299,098		$	5,451,920
Elimination of intersegment items	2,561			—		—		—			(13,557		)	(104,278		)
Parent Co. totals - not eliminated	(2,322		)	—		9,972		(4,671		)	25,813			—
Totals	$	227,632		$	7,347	$	179,267	$	32,567		$	7,311,354		$	5,347,642

	2014
(In thousands)	Net Interest Income			Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	227,056		$	7,243	$	172,267	$	41,246		$	6,994,456		$	5,228,649
Elimination of intersegment items	3,708			—		—		—			(18,556		)	(100,649		)
Parent Co. totals - not eliminated	(5,720		)	—		8,000		(4,787		)	25,299			—
Totals	$	225,044		$	7,243	$	180,267	$	36,459		$	7,001,199		$	5,128,000

	2013
(In thousands)	Net Interest Income			Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	218,197		$	7,315	$	166,680	$	35,329		$	6,642,070		$	4,903,564
Elimination of intersegment items	8,659			—		—		—			(30,369		)	(113,570		)
Parent Co. totals - not eliminated	(5,831		)	—		7,520		(2,826		)	24,722			—
Totals	$	221,025		$	7,315	$	174,200	$	32,503		$	6,636,423		$	4,789,994

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Parent Company Statements (Tables)

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Balance Sheets

Balance Sheets
December 31, 2015 and 2014
(In thousands)	2015		2014
Assets:
Cash	$	102,416	$	98,671
Investment in subsidiaries	613,383		599,855
Debentures receivable from PNB	25,000		25,000
Other investments	2,341		2,344
Other assets	23,443		23,260
Total assets	$	766,583	$	749,130
Liabilities:
Subordinated notes	45,000		45,000
Other liabilities	8,228		7,589
Total liabilities	53,228		52,589
Total shareholders’ equity	713,355		696,541
Total liabilities and shareholders’ equity	$	766,583	$	749,130

Statements of Income

Statements of Income
for the years ended December 31, 2015, 2014 and 2013
(In thousands)	2015			2014		2013
Income:
Dividends from subsidiaries	$	60,000		$	60,000	$	15,000
Interest and dividends	2,561			3,708		8,659
Other	560			262		531
Total income	63,121			63,970		24,190
Expense:
Other, net	12,341			13,807		13,413
Total expense	12,341			13,807		13,413
Income before federal taxes and equity in undistributed income of subsidiaries	50,780			50,163		10,777
Federal income tax benefit	4,671			4,787		2,826
Income before equity in undistributed income of subsidiaries	55,451			54,950		13,603
Equity in undistributed income of subsidiaries	25,561			29,007		63,266
Net income	$	81,012		$	83,957	$	76,869
Other comprehensive (loss) income (1)	(2,035		)	21,811		(17,901		)
Comprehensive income	78,977			105,768		58,968

Statements of Cash Flows

Statements of Cash Flows
for the years ended December 31, 2015, 2014 and 2013
(In thousands)	2015			2014			2013
Operating activities:
Net income	$	81,012		$	83,957		$	76,869
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income of subsidiaries	(25,561		)	(29,007		)	(63,266		)
Compensation expense for issuance of treasury stock to directors	963			801			850
Share-based compensation expense	865			458			—
Decrease in other assets	(182		)	(1,292		)	(2,215		)
Increase (decrease) in other liabilities	485			298			(2,187		)
Net cash provided by operating activities	57,582			55,215			10,051
Investing activities:
Capital contribution in subsidiary	—			—			(45,000		)
Repayment of investments in and advances to subsidiaries	10,000			32,000			101,960
Net cash provided by investing activities	10,000			32,000			56,960
Financing activities:
Cash dividends paid	(57,776		)	(57,876		)	(57,949		)
Repayment of subordinated notes	—			(35,250		)	—
Repurchase of treasury shares	(6,058		)	(2,355		)	(843		)
Cash payment for fractional shares	(3		)	(5		)	(3		)
Net cash used in financing activities	(63,837		)	(95,486		)	(58,795		)
Increase (decrease) in cash	3,745			(8,271		)	8,216
Cash at beginning of year	98,671			106,942			98,726
Cash at end of year	$	102,416		$	98,671		$	106,942

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Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Line Items]
Average required reserve balance	$ 44.2	$ 40.3
Historical loss period used in estimating loan loss reserve	84 months
Reserve coverage period in historical losses	1 year 11 months 26 days	1 year 11 months 22 days
Compensating Balance, Amount	$ 0.0
Commercial Loan
Accounting Policies [Line Items]
Reserve coverage period in historical losses	2 years 6 months 8 days	2 years 3 months 12 days

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Summary of Significant Accounting Policies - Depreciable Lives of Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2015
Minimum | Buildings
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	30 years
Minimum | Equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	3 years
Minimum | Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	1 year
Maximum | Buildings
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	30 years
Maximum | Equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	12 years
Maximum | Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives	10 years

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Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 72,334,000	$ 72,334,000	$ 72,334,000	$ 72,334,000
Amortization of intangibles	0	0	337,000
Goodwill And Finite Lived Intangible Assets	72,334,000	72,334,000	72,334,000	72,671,000
Core deposits
Finite-Lived Intangible Assets [Line Items]
Other Intangible Assets Amortization	0	0	337,000
Other Intangible Assets, Net	$ 0	$ 0	$ 0	$ 337,000

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Investment Securities - Narrative (Details)	12 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Schedule of Investments [Line Items]
Other than Temporary Impairment Losses, Investments	$ 0	$ 0	$ 17,000
Amortized cost of securities available-for-sale	1,436,714,000	1,299,980,000
Securities held-to-maturity, at amortized cost (fair value of $151,428 and $143,490 at December 31, 2015 and 2014, respectively)	149,302,000	140,562,000
Federal home loan bank stock	50,100,000	50,086,000
Federal reserve bank stock	$ 8,200,000	8,226,000
Investment Securities average remaining life	4 years 9 months 14 days
Federal Home Loan Bank (FHLB) advance borrowings	$ 1,072,000,000	1,205,000,000
Money pledged for government and trust department deposits	429,000,000	513,000,000
Money pledged to secure repurchase agreements	622,000,000	664,000,000
Money Pledged as Collateral for FHLB Advance Borrowings	$ 21,000,000	28,000,000
Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity [Table Text Block]	0
Percentage of amount greater than shareholder's equity	10.00%
Held-to-maturity Securities, Sold Security, Cost Basis of Securities Sold	3056
Held-to-maturity Securities, Sold Security, Realized Gain (Loss)	$ 88,000
Proceeds from sale of investment securities			75,000,000
Available-for-sale Securities, Gross Realized Gains		22,000
Available-for-sale Securities, Realized Losses, Excluding Other than Temporary Impairments		$ 1,200,000	$ 0
U.S. Treasury and sponsored entities callable notes
Schedule of Investments [Line Items]
Available-for-sale securities	$ 527,600,000
Securities sold at a gain [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Gross Realized Gains (Losses), Cost Basis (Methodology) of Securities Sold		187000
Securities sold at a loss [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Gross Realized Gains (Losses), Cost Basis (Methodology) of Securities Sold		174.1
U.S. Government sponsored entity asset-backed securities
Schedule of Investments [Line Items]
Asset-backed securities mortgage portfolio, maturity term	15 years
Amortized cost of securities available-for-sale	$ 907,989,000	$ 751,974,000
Securities held-to-maturity, at amortized cost (fair value of $151,428 and $143,490 at December 31, 2015 and 2014, respectively)	101,112,000	$ 140,562,000
Residential mortgage-backed securities
Schedule of Investments [Line Items]
Amortized cost of securities available-for-sale	569,000,000
Securities held-to-maturity, at amortized cost (fair value of $151,428 and $143,490 at December 31, 2015 and 2014, respectively)	0
Collateralized mortgage-backed securities
Schedule of Investments [Line Items]
Amortized cost of securities available-for-sale	339,000,000
Securities held-to-maturity, at amortized cost (fair value of $151,428 and $143,490 at December 31, 2015 and 2014, respectively)	$ 101,100,000
Minimum | U.S. Treasury and sponsored entities callable notes
Schedule of Investments [Line Items]
Available for Sale Securities, Debt Maturities, Term.	1
Maximum | U.S. Treasury and sponsored entities callable notes
Schedule of Investments [Line Items]
Available for Sale Securities, Debt Maturities, Term.	7

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Investment Securities - Schedule of Investment Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Securities Available-for-Sale
Amortized Cost	$ 1,436,714	$ 1,299,980
Gross Unrealized/Unrecognized Holding Gains	10,366	15,010
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	10,814	13,075
Estimated Fair Value	1,436,266	1,301,915
Securities Held-to-Maturity
Securities held-to-maturity, at amortized cost (fair value of $151,428 and $143,490 at December 31, 2015 and 2014, respectively)	149,302	140,562
Gross Unrealized/Unrecognized Holding Gains	2,260
Gross Unrealized/Unrecognized Holding Losses	134
Estimated Fair Value	151,428	143,490
Obligations of U.S. Treasury and other U.S. Government sponsored entities
Securities Available-for-Sale
Amortized Cost	527,605	546,886
Gross Unrealized/Unrecognized Holding Gains		11
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	5,542	8,833
Estimated Fair Value	522,063	538,064
Obligations of States and Political Subdivisions
Securities Held-to-Maturity
Securities held-to-maturity, at amortized cost (fair value of $151,428 and $143,490 at December 31, 2015 and 2014, respectively)	48,190
Gross Unrealized/Unrecognized Holding Gains	734
Estimated Fair Value	48,924
U.S. Government sponsored entity asset-backed securities
Securities Available-for-Sale
Amortized Cost	907,989	751,974
Gross Unrealized/Unrecognized Holding Gains	8,776	13,421
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	5,272	4,242
Estimated Fair Value	911,493	761,153
Securities Held-to-Maturity
Securities held-to-maturity, at amortized cost (fair value of $151,428 and $143,490 at December 31, 2015 and 2014, respectively)	101,112	140,562
Gross Unrealized/Unrecognized Holding Gains	1,526	3,088
Gross Unrealized/Unrecognized Holding Losses	134	160
Estimated Fair Value	102,504	143,490
Equity securities
Securities Available-for-Sale
Amortized Cost	1,120	1,120
Gross Unrealized/Unrecognized Holding Gains	1,590	1,578
Estimated Fair Value	$ 2,710	$ 2,698

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Investment Securities - Schedule of Unrealized Loss on Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 Months	$ 711,142	$ 193,189
12 Months or Longer	309,633	558,570
Total	1,020,775	751,759
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 Months	4,893	223
12 Months or Longer	5,921	12,852
Total	10,814	13,075
Obligations of U.S. Treasury and other U.S. Government sponsored entities
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 Months	326,973	119,913
12 Months or Longer	195,090	388,140
Total	522,063	508,053
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 Months	2,117	87
12 Months or Longer	3,425	8,746
Total	5,542	8,833
U.S. Government sponsored entity asset-backed securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 Months	384,169	73,276
12 Months or Longer	114,543	170,430
Total	498,712	243,706
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 Months	2,776	136
12 Months or Longer	2,496	4,106
Total	5,272	4,242
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 Months	5,656	8,032
12 Months or Longer	7,792	2,714
Total	13,448	10,746
Held-to-maturity Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 Months	10	148
12 Months or Longer	124	12
Total	$ 134	$ 160

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Investment Securities - Amortized Cost and Estimated Fair Value of Investments in Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Available-for-sale Securities, Debt Maturities, Estimated Fair Value [Abstract]
Estimated Fair Value	$ 1,436,266	$ 1,301,915
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	48,190
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value	48,924
Held-to-maturity Securities, Debt Maturities, Amortized Cost [Abstract]
U.S. Government sponsored entities’ asset-backed securities	149,302	140,562
Obligations of U.S. Treasury and other U.S. Government sponsored entities
Available-for-sale Securities, Debt Maturities, Amortized Cost [Abstract]
Due one through five years	220,000
Due five through ten years	307,605
Total	527,605
Available-for-sale Securities, Debt Maturities, Estimated Fair Value [Abstract]
Due one through five years	219,135
Due five through ten years	302,928
Estimated Fair Value	$ 522,063	538,064
Available for Sale Securities Weighted Avg Yield	1.94%
Available for Sale Securities Debt Maturities After Five Through Ten Years Weighted Avg Yield	2.40%
Available for Sale Securities Debt Maturities After One Through Five Years Weighted Avg Yield	1.29%
Obligations of States and Political Subdivisions
Available-for-sale Securities, Debt Maturities, Estimated Fair Value [Abstract]
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	$ 48,190
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value	48,924
Held-to-maturity Securities, Debt Maturities, Amortized Cost [Abstract]
U.S. Government sponsored entities’ asset-backed securities	$ 48,190
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value [Abstract]
Held to Maturity Securities weighted avg yield	4.65%
U.S. Government sponsored entity asset-backed securities
Available-for-sale Securities, Debt Maturities, Amortized Cost [Abstract]
Total	$ 907,989
Available-for-sale Securities, Debt Maturities, Estimated Fair Value [Abstract]
Estimated Fair Value	$ 911,493	761,153
Available for Sale Securities Weighted Avg Yield	2.23%
Held-to-maturity Securities, Debt Maturities, Amortized Cost [Abstract]
U.S. Government sponsored entities’ asset-backed securities	$ 101,112	$ 140,562
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value [Abstract]
Held to Maturity Securities weighted avg yield	3.42%

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Loans - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Deferred Income	$ 10,400,000	$ 9,400,000
Deposit Liabilities Reclassified as Loans Receivable	1,700,000	2,300,000
Troubled Debt Restructuring, Classification removed	1,200,000	2,500,000
Partial charge-offs on impaired loans	28,705,000	32,480,000
Allowance for loans individually evaluated for impairment	4,191,000	3,660,000
Recorded investment, related to loans	19,900,000	9,300,000
Loans 90 days past due and still accruing	1,975,000	2,709,000
TDRs included in nonaccrual loan totals	41,100,000	47,500,000
Nonaccrual TDRs considered current	19,100,000	15,700,000
TDRs included in accruing loan totals	25,100,000	16,300,000
Commitments to lend additional funds to borrowers whose terms had been modified in a TDR	2,300,000	1,400,000
Specific reserves related to troubled debt restructuring	2,300,000	2,400,000
Additional specific reserves related to troubled debt restructuring	1,300,000	700,000	$ 1,100,000
Modified substandard commercial loans, total recorded investment	116,000	987,000
Modified substandard consumer loans total recorded investment	16,500,000	19,900,000
Nonaccrual loans not classified as TDRs at prior fiscal year end	800,000	700,000	5,500,000
Recorded investment modified as TDRs	2,854,000	2,009,000	7,379,000
Consumer
Financing Receivable, Recorded Investment [Line Items]
Allowance for loans individually evaluated for impairment	0	0
Loans 90 days past due and still accruing	1,093,000	1,133,000
Executive officers and directors
Financing Receivable, Recorded Investment [Line Items]
Loans due from related party	47,000,000	45,700,000
New loan made to related party	5,800,000	6,000,000
Repayment of loans due from related party	12,900,000	14,100,000
Increase (Decrease) in Customer Advances	7,100,000	6,400,000
Accruing
Financing Receivable, Recorded Investment [Line Items]
Recorded investment modified as TDRs	44,000	314,000	397,000
Nonaccrual
Financing Receivable, Recorded Investment [Line Items]
Recorded investment modified as TDRs	2,800,000	1,700,000	$ 7,000,000
Financing Receivable With No Related Allowance Recorded [Member]
Financing Receivable, Recorded Investment [Line Items]
Partial charge-offs on impaired loans	24,200,000	32,400,000
Financing Receivable With Related Allowance Recorded [Member]
Financing Receivable, Recorded Investment [Line Items]
Partial charge-offs on impaired loans	4,500,000	$ 0
Loans receivable | Executive officers and directors
Financing Receivable, Recorded Investment [Line Items]
Loans due from related party	$ 36,000,000

XML

Loans - Composition of Loan Portfolio By Class of Loan (Details) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance		$ 109,305	$ 106,156
Impaired Financing Receivable, Recorded Investment		80,664	73,712	$ 112,315
Impaired Financing Receivable, Related Allowance		4,191	3,660
Loan Balance		5,068,085	4,829,682
Accrued Interest Receivable		14,239	13,629
Recorded Investment		5,082,324	4,843,311
Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment		30,595	19,106	20,727
Loan Balance	[1]	955,727	856,535
Accrued Interest Receivable	[1]	3,437	3,218
Recorded Investment	[1]	959,164	859,753
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment		18,025	21,989	41,822
Loan Balance	[1]	1,113,603	1,069,637
Accrued Interest Receivable	[1]	4,009	3,546
Recorded Investment	[1]	1,117,612	1,073,183
Construction real estate
Financing Receivable, Recorded Investment [Line Items]
Loan Balance		173,345	155,804
Recorded Investment		173,762	156,199
SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Loan Balance	[1]	2,044	2,195
Accrued Interest Receivable	[1]	0	0
Recorded Investment	[1]	2,044	2,195
Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment		4,676	5,609	10,782
Loan Balance		128,046	115,139
Accrued Interest Receivable		321	300
Recorded Investment		128,367	115,439
Mortgage
Financing Receivable, Recorded Investment [Line Items]
Loan Balance		36,722	31,148
Accrued Interest Receivable		75	72
Recorded Investment		36,797	31,220
Installment
Financing Receivable, Recorded Investment [Line Items]
Loan Balance		6,533	7,322
Accrued Interest Receivable		21	23
Recorded Investment		6,554	7,345
Commercial
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment		25,324	24,930	33,408
Loan Balance		410,571	417,612
Accrued Interest Receivable		1,014	1,038
Recorded Investment		411,585	418,650
Mortgage
Financing Receivable, Recorded Investment [Line Items]
Loan Balance		1,210,819	1,189,709
Accrued Interest Receivable		1,469	1,548
Recorded Investment		1,212,288	1,191,257
HELOC
Financing Receivable, Recorded Investment [Line Items]
Loan Balance		211,415	216,915
Accrued Interest Receivable		769	803
Recorded Investment		212,184	217,718
Installment
Financing Receivable, Recorded Investment [Line Items]
Loan Balance		22,638	27,139
Accrued Interest Receivable		78	97
Recorded Investment		22,716	27,236
Consumer
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment				$ 799
Loan Balance		967,111	893,160
Accrued Interest Receivable		3,032	2,967
Recorded Investment		970,143	896,127
Leases
Financing Receivable, Recorded Investment [Line Items]
Loan Balance		2,856	3,171
Accrued Interest Receivable		14	17
Recorded Investment		2,870	3,188
Financing Receivable With No Related Allowance Recorded [Member] | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance		32,583	30,601
Impaired Financing Receivable, Recorded Investment		18,763	17,883
Financing Receivable With No Related Allowance Recorded [Member] | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance		15,138	27,923
Impaired Financing Receivable, Recorded Investment		14,916	20,696
Financing Receivable With No Related Allowance Recorded [Member] | SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance		10,834	11,026
Impaired Financing Receivable, Recorded Investment		2,044	2,078
Financing Receivable With No Related Allowance Recorded [Member] | Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance		2,506	1,427
Impaired Financing Receivable, Recorded Investment		1,531	391
Financing Receivable With No Related Allowance Recorded [Member] | Commercial
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance		23,798	25,822
Impaired Financing Receivable, Recorded Investment		23,480	23,352
Financing Receivable With Related Allowance Recorded [Member] | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance		16,155	1,251
Impaired Financing Receivable, Recorded Investment		11,832	1,223
Impaired Financing Receivable, Related Allowance		1,904	981
Financing Receivable With Related Allowance Recorded [Member] | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance		3,195	1,310
Impaired Financing Receivable, Recorded Investment		3,109	1,293
Impaired Financing Receivable, Related Allowance		381	262
Financing Receivable With Related Allowance Recorded [Member] | Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance		3,145	5,218
Impaired Financing Receivable, Recorded Investment		3,145	5,218
Impaired Financing Receivable, Related Allowance		1,356	1,812
Financing Receivable With Related Allowance Recorded [Member] | Commercial
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance		1,951	1,578
Impaired Financing Receivable, Recorded Investment		1,844	1,578
Impaired Financing Receivable, Related Allowance		$ 550	$ 605

[1] Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

XML

Loans - Recorded Investment in Nonaccrual, Restructured and Loans Past Due 90 Days or More and Accruing (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 80,664	$ 73,712	$ 112,315
Nonaccrual Loans	95,887	100,393
Accruing Troubled Debt Restructurings	25,088	16,332
Loans Past Due 90 Days or More and Accruing	1,975	2,709
Total Nonperforming Loans	122,950	119,434
Impaired Financing Receivable, Average Recorded Investment	70,762	92,614	124,089
Impaired Financing Receivable, Interest Income, Cash Basis Method	1,963	2,678	2,640
Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment	30,595	19,106	20,727
Nonaccrual Loans	21,676	18,826
Accruing Troubled Debt Restructurings	8,947	297
Loans Past Due 90 Days or More and Accruing	0	229
Total Nonperforming Loans	30,623	19,352
Impaired Financing Receivable, Average Recorded Investment	20,179	19,518	20,523
Impaired Financing Receivable, Interest Income, Cash Basis Method	340	360	412
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment	18,025	21,989	41,822
Nonaccrual Loans	15,268	19,299
Accruing Troubled Debt Restructurings	2,757	2,690
Loans Past Due 90 Days or More and Accruing	0	0
Total Nonperforming Loans	18,025	21,989
Impaired Financing Receivable, Average Recorded Investment	17,883	31,945	41,426
Impaired Financing Receivable, Interest Income, Cash Basis Method	550	1,027	1,151
SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment	2,044	2,078	4,777
Nonaccrual Loans	2,044	2,078
Accruing Troubled Debt Restructurings	0	0
Loans Past Due 90 Days or More and Accruing	0	0
Total Nonperforming Loans	2,044	2,078
Impaired Financing Receivable, Average Recorded Investment	2,066	3,658	8,723
Impaired Financing Receivable, Interest Income, Cash Basis Method	21	146
Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment	4,676	5,609	10,782
Nonaccrual Loans	4,162	5,558
Accruing Troubled Debt Restructurings	514	51
Loans Past Due 90 Days or More and Accruing	0	0
Total Nonperforming Loans	4,676	5,609
Impaired Financing Receivable, Average Recorded Investment	5,666	8,784	17,829
Impaired Financing Receivable, Interest Income, Cash Basis Method	26	61	616
Mortgage
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual Loans	7	59
Accruing Troubled Debt Restructurings	110	94
Loans Past Due 90 Days or More and Accruing	0	9
Total Nonperforming Loans	117	162
Installment
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual Loans	64	115
Accruing Troubled Debt Restructurings	114	125
Loans Past Due 90 Days or More and Accruing	0	0
Total Nonperforming Loans	178	240
Commercial
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment	25,324	24,930	33,408
Nonaccrual Loans	25,063	24,336
Accruing Troubled Debt Restructurings	261	594
Loans Past Due 90 Days or More and Accruing	0	0
Total Nonperforming Loans	25,324	24,930
Impaired Financing Receivable, Average Recorded Investment	24,968	28,306	34,972
Impaired Financing Receivable, Interest Income, Cash Basis Method	1,026	1,084	461
Mortgage
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual Loans	20,378	21,869
Accruing Troubled Debt Restructurings	10,143	10,349
Loans Past Due 90 Days or More and Accruing	851	1,329
Total Nonperforming Loans	31,372	33,547
HELOC
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual Loans	1,749	1,879
Accruing Troubled Debt Restructurings	873	630
Loans Past Due 90 Days or More and Accruing	27	9
Total Nonperforming Loans	2,649	2,518
Installment
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual Loans	1,657	1,743
Accruing Troubled Debt Restructurings	635	779
Loans Past Due 90 Days or More and Accruing	4	0
Total Nonperforming Loans	2,296	2,522
Consumer
Financing Receivable, Recorded Investment [Line Items]
Impaired Financing Receivable, Recorded Investment			799
Nonaccrual Loans	3,819	4,631
Accruing Troubled Debt Restructurings	734	723
Loans Past Due 90 Days or More and Accruing	1,093	1,133
Total Nonperforming Loans	$ 5,646	6,487
Impaired Financing Receivable, Average Recorded Investment		$ 403	$ 616

XML

Loans - Loans Individually and Collectively Evaluated for Impairment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	$ 120,975	$ 116,725
Loans individually evaluated for impairment	80,664	73,712
Loans collectively evaluated for impairment	40,311	43,013
Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	30,623	19,123
Loans individually evaluated for impairment	30,595	19,106
Loans collectively evaluated for impairment	28	17
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	18,025	21,989
Loans individually evaluated for impairment	18,025	21,989
Loans collectively evaluated for impairment	0	0
SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	2,044	2,078
Loans individually evaluated for impairment	2,044	2,078
Loans collectively evaluated for impairment	0	0
Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	4,676	5,609
Loans individually evaluated for impairment	4,676	5,609
Loans collectively evaluated for impairment	0	0
Mortgage
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	117	153
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	117	153
Installment
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	178	240
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	178	240
Commercial
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	25,324	24,930
Loans individually evaluated for impairment	25,324	24,930
Loans collectively evaluated for impairment	0	0
Mortgage
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	30,521	32,218
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	30,521	32,218
HELOC
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	2,622	2,509
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	2,622	2,509
Installment
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	2,292	2,522
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	2,292	2,522
Consumer
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing TDRs	4,553	5,354
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	$ 4,553	$ 5,354

XML

Loans - Loans Individually Evaluated for Impairment by Class of Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	$ 109,305	$ 106,156
Recorded investment	80,664	73,712	$ 112,315
Allowance for loan losses allocated	4,191	3,660
Impaired Financing Receivable, Average Recorded Investment	70,762	92,614	124,089
Impaired Financing Receivable, Interest Income, Cash Basis Method	1,963	2,678	2,640
Commercial, financial and agricultural
Financing Receivable, Impaired [Line Items]
Recorded investment	30,595	19,106	20,727
Impaired Financing Receivable, Average Recorded Investment	20,179	19,518	20,523
Impaired Financing Receivable, Interest Income, Cash Basis Method	340	360	412
Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded investment	18,025	21,989	41,822
Impaired Financing Receivable, Average Recorded Investment	17,883	31,945	41,426
Impaired Financing Receivable, Interest Income, Cash Basis Method	550	1,027	1,151
Remaining commercial
Financing Receivable, Impaired [Line Items]
Recorded investment	4,676	5,609	10,782
Impaired Financing Receivable, Average Recorded Investment	5,666	8,784	17,829
Impaired Financing Receivable, Interest Income, Cash Basis Method	26	61	616
Commercial
Financing Receivable, Impaired [Line Items]
Recorded investment	25,324	24,930	33,408
Impaired Financing Receivable, Average Recorded Investment	24,968	28,306	34,972
Impaired Financing Receivable, Interest Income, Cash Basis Method	1,026	1,084	461
Consumer
Financing Receivable, Impaired [Line Items]
Recorded investment			799
Impaired Financing Receivable, Average Recorded Investment		403	616
Construction Real Estate Vision Commercial Land And Development [Member]
Financing Receivable, Impaired [Line Items]
Recorded investment	2,044	2,078	4,777
Impaired Financing Receivable, Average Recorded Investment	2,066	3,658	$ 8,723
Impaired Financing Receivable, Interest Income, Cash Basis Method	21	146
With no related allowance recorded | Commercial, financial and agricultural
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	32,583	30,601
Recorded investment	18,763	17,883
With no related allowance recorded | Commercial real estate
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	15,138	27,923
Recorded investment	14,916	20,696
With no related allowance recorded | SEPH commercial land and development
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	10,834	11,026
Recorded investment	2,044	2,078
With no related allowance recorded | Remaining commercial
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	2,506	1,427
Recorded investment	1,531	391
With no related allowance recorded | Commercial
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	23,798	25,822
Recorded investment	$ 23,480	$ 23,352

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Loans - Average Recorded Investment and Interest Income Recognized on Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Recorded investment	$ 80,664	$ 73,712	$ 112,315
Average recorded investment	70,762	92,614	124,089
Interest income recognized	1,963	2,678	2,640
Commercial, financial and agricultural
Financing Receivable, Impaired [Line Items]
Recorded investment	30,595	19,106	20,727
Average recorded investment	20,179	19,518	20,523
Interest income recognized	340	360	412
Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded investment	18,025	21,989	41,822
Average recorded investment	17,883	31,945	41,426
Interest income recognized	550	1,027	1,151
SEPH commercial land and development
Financing Receivable, Impaired [Line Items]
Recorded investment	2,044	2,078	4,777
Average recorded investment	2,066	3,658	8,723
Interest income recognized	21	146
Remaining commercial
Financing Receivable, Impaired [Line Items]
Recorded investment	4,676	5,609	10,782
Average recorded investment	5,666	8,784	17,829
Interest income recognized	26	61	616
Commercial
Financing Receivable, Impaired [Line Items]
Recorded investment	25,324	24,930	33,408
Average recorded investment	24,968	28,306	34,972
Interest income recognized	$ 1,026	1,084	461
Consumer
Financing Receivable, Impaired [Line Items]
Recorded investment			799
Average recorded investment		$ 403	$ 616

XML

Loans - Aging of Recorded Investment in Past Due Loans(Details) - USD ($) $ in Thousands		Dec. 31, 2015		Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		$ 24,505		$ 31,074
Past due nonaccrual loans and loans past due 90 days or more and accruing		42,383	[1]	52,932	[2]
Total past due		66,888		84,006
Total current		5,015,436		4,759,305
Recorded Investment		5,082,324		4,843,311
Commercial, financial and agricultural
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		670		6,482
Past due nonaccrual loans and loans past due 90 days or more and accruing		7,536	[1]	7,508	[2]
Total past due		8,206		13,990
Total current		950,958		845,763
Recorded Investment	[3]	959,164		859,753
Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		142		808
Past due nonaccrual loans and loans past due 90 days or more and accruing		530	[1]	8,288	[2]
Total past due		672		9,096
Total current		1,116,940		1,064,087
Recorded Investment	[3]	1,117,612		1,073,183
Construction real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded Investment		173,762		156,199
SEPH commercial land and development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due nonaccrual loans and loans past due 90 days or more and accruing	[1]	2,044
Total past due		2,044
Recorded Investment		2,044
SEPH commercial land and development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due nonaccrual loans and loans past due 90 days or more and accruing	[2]			2,068
Total past due				2,068
Total current				127
Recorded Investment				2,195
Remaining commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		165		166
Past due nonaccrual loans and loans past due 90 days or more and accruing		84	[1]	77	[2]
Total past due		249		243
Total current		128,118		115,196
Recorded Investment		128,367		115,439
Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		63		39
Past due nonaccrual loans and loans past due 90 days or more and accruing		7	[1]	68	[2]
Total past due		70		107
Total current		36,727		31,113
Recorded Investment		36,797		31,220
Installment
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		200		21
Past due nonaccrual loans and loans past due 90 days or more and accruing		46	[1]	25	[2]
Total past due		246		46
Total current		6,308		7,299
Recorded Investment		6,554		7,345
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		325		250
Past due nonaccrual loans and loans past due 90 days or more and accruing		19,521	[1]	19,592	[2]
Total past due		19,846		19,842
Total current		391,739		398,808
Recorded Investment		411,585		418,650
Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		10,569		11,146
Past due nonaccrual loans and loans past due 90 days or more and accruing		8,735	[1]	10,637	[2]
Total past due		19,304		21,783
Total current		1,192,984		1,169,474
Recorded Investment		1,212,288		1,191,257
HELOC
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		487		262
Past due nonaccrual loans and loans past due 90 days or more and accruing		186	[1]	387	[2]
Total past due		673		649
Total current		211,511		217,069
Recorded Investment		212,184		217,718
Installment
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		426		596
Past due nonaccrual loans and loans past due 90 days or more and accruing		318	[1]	464	[2]
Total past due		744		1,060
Total current		21,972		26,176
Recorded Investment		22,716		27,236
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days		11,458		11,304
Past due nonaccrual loans and loans past due 90 days or more and accruing		3,376	[1]	3,818	[2]
Total past due		14,834		15,122
Total current		955,309		881,005
Recorded Investment		970,143		896,127
Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total current		2,870		3,188
Recorded Investment		$ 2,870		$ 3,188

[1] Includes $2.0 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans.

[2] Includes $2.7 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans.

[3] Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

XML

Loans - Recorded Investment by Loan Grade (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Five Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	$ 24,703	$ 16,252
Five Rated [Member] | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	4,392	1,874
Five Rated [Member] | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	14,880	8,448
Five Rated [Member] | Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	2,151	3,349
Five Rated [Member] | Commercial
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	3,280	2,581
Six Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	4,272	3,568
Six Rated [Member] | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	347	1,201
Six Rated [Member] | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	3,417	1,712
Six Rated [Member] | Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	122	57
Six Rated [Member] | Commercial
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	386	598
Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	80,692	73,729
Impaired [Member] | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	30,623	19,123
Impaired [Member] | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	18,025	21,989
Impaired [Member] | SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	2,044
Impaired [Member] | SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Commercial loans		2,078
Impaired [Member] | Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	4,676	5,609
Impaired [Member] | Commercial
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	25,324	24,930
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	2,511,975	2,378,859
Pass [Member] | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	923,802	837,555
Pass [Member] | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	1,081,290	1,041,034
Pass [Member] | SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Commercial loans		117
Pass [Member] | Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	121,418	106,424
Pass [Member] | Commercial
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	382,595	390,541
Pass [Member] | Leases
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	2,870	3,188
Recorded Investment [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	2,621,642	2,472,408
Recorded Investment [Member] | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	959,164	859,753
Recorded Investment [Member] | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	1,117,612	1,073,183
Recorded Investment [Member] | SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	2,044
Recorded Investment [Member] | SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Commercial loans		2,195
Recorded Investment [Member] | Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	128,367	115,439
Recorded Investment [Member] | Commercial
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	411,585	418,650
Recorded Investment [Member] | Leases
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	$ 2,870	$ 3,188

XML

Loans - TDR Number of Contracts Modified And Recorded Investment (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) contracts	Dec. 31, 2014 USD ($) contracts	Dec. 31, 2013 USD ($) contracts
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	424	450	496
Total Recorded Investment Modified as TDRs During Period	$ 23,324	$ 8,395	$ 18,467
Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	39	30	34
Total Recorded Investment Modified as TDRs During Period	$ 12,588	$ 723	$ 1,341
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	14	11	22
Total Recorded Investment Modified as TDRs During Period	$ 4,160	$ 2,438	$ 8,563
SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	0
SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts		0	0
Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	2	2	3
Total Recorded Investment Modified as TDRs During Period	$ 513	$ 206	$ 98
Mortgage
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	1	0	0
Total Recorded Investment Modified as TDRs During Period	$ 19
Installment
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	0	2	4
Total Recorded Investment Modified as TDRs During Period		$ 56	$ 51
Commercial
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	11	9	15
Total Recorded Investment Modified as TDRs During Period	$ 1,185	$ 866	$ 2,552
Mortgage
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	39	46	62
Total Recorded Investment Modified as TDRs During Period	$ 3,254	$ 2,357	$ 4,245
HELOC
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	26	10	16
Total Recorded Investment Modified as TDRs During Period	$ 360	$ 326	$ 175
Installment
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	9	10	13
Total Recorded Investment Modified as TDRs During Period	$ 155	$ 121	$ 292
Consumer
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts | contracts	283	330	327
Total Recorded Investment Modified as TDRs During Period	$ 1,090	$ 1,302	$ 1,150
Accruing
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	11,766	1,946	3,093
Accruing | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	8,948	292	7
Accruing | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	637	1,184
Accruing | Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	513
Accruing | Mortgage
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	19	0	0
Accruing | Installment
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	0	0	26
Accruing | Mortgage
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	1,132	32	1,967
Accruing | HELOC
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	315	85	175
Accruing | Installment
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period		109	113
Accruing | Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	202	244	805
Nonaccrual
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	11,558	6,449	15,374
Nonaccrual | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	3,640	431	1,334
Nonaccrual | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	3,523	1,254	8,563
Nonaccrual | Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period		206	98
Nonaccrual | Installment
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period		56	25
Nonaccrual | Commercial
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	1,185	866	2,552
Nonaccrual | Mortgage
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	2,122	2,325	2,278
Nonaccrual | HELOC
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	45	241	0
Nonaccrual | Installment
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	155	12	179
Nonaccrual | Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Recorded Investment Modified as TDRs During Period	$ 888	$ 1,058	$ 345

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Loans - Recorded Investment in Financing Receivable Modified as TDR Within 12 Month (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) contracts	Dec. 31, 2014 USD ($) contracts	Dec. 31, 2013 USD ($) contracts
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	67	86	132
Recorded Investment | $	$ 2,854	$ 2,009	$ 7,379
Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	1	4	11
Recorded Investment | $	$ 1	$ 206	$ 771
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	1	1	11
Recorded Investment | $	$ 626	$ 302	$ 2,839
SEPH commercial land and development
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	0	0	0
Remaining commercial
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	0	0	0
Mortgage
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	0	0	0
Recorded Investment | $	$ 0
Installment
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	0	0	1
Recorded Investment | $	$ 0		$ 10
Commercial
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	3	1	4
Recorded Investment | $	$ 1,005	$ 3	$ 1,683
Mortgage
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	12	14	26
Recorded Investment | $	$ 682	$ 810	$ 1,533
HELOC
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	1	2	0
Recorded Investment | $	$ 5	$ 160
Installment
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	2	2	5
Recorded Investment | $	$ 101	$ 12	$ 72
Leases
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	47	62	74
Recorded Investment | $	$ 434	$ 516	$ 471
Leases
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	0	0	0
Recorded Investment | $	$ 0

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Allowance for Loan Losses - Allowance Calculation at the Segment Level and Adjusted Beginning Balance for the Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for Loan and Lease Losses, Reserve Estimate Methodology, Historical Loss Period Factor	84 months
Beginning balance	$ 54,352	$ 59,468	$ 55,537
Charge-offs	14,290	24,780	19,153
Recoveries	(11,442)	(26,997)	(19,669)
Net charge-offs (recoveries)	2,848	(2,217)	(516)
(Recovery) Provision	4,990	(7,333)	3,415
Ending balance	56,494	54,352	59,468
Commercial, financial and agricultural
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	10,719	14,218	15,635
Charge-offs	2,478	3,779	6,160
Recoveries	(1,373)	(1,003)	(1,314)
Net charge-offs (recoveries)	1,105	2,776	4,846
(Recovery) Provision	4,080	(723)	3,429
Ending balance	13,694	10,719	14,218
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	8,808	15,899	11,736
Charge-offs	348	8,003	1,832
Recoveries	(2,241)	(7,759)	(726)
Net charge-offs (recoveries)	(1,893)	244	1,106
(Recovery) Provision	(1,504)	(6,847)	5,269
Ending balance	9,197	8,808	15,899
Construction real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	8,652	6,855	6,841
Charge-offs	470	1,316	1,791
Recoveries	(2,092)	(12,572)	(9,378)
Net charge-offs (recoveries)	(1,622)	(11,256)	(7,587)
(Recovery) Provision	(1,710)	(9,459)	(7,573)
Ending balance	8,564	8,652	6,855
Residential real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	14,772	14,251	14,759
Charge-offs	2,352	3,944	3,207
Recoveries	(2,438)	(2,985)	(6,000)
Net charge-offs (recoveries)	(86)	959	(2,793)
(Recovery) Provision	(1,344)	1,480	(3,301)
Ending balance	13,514	14,772	14,251
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	11,401	8,245	6,566
Charge-offs	8,642	7,738	6,163
Recoveries	(3,295)	(2,671)	(2,249)
Net charge-offs (recoveries)	5,347	5,067	3,914
(Recovery) Provision	5,470	8,223	5,593
Ending balance	11,524	11,401	8,245
Leases
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	0	0	0
Charge-offs	0	0	0
Recoveries	(3)	(7)	(2)
Net charge-offs (recoveries)	(3)	(7)	(2)
(Recovery) Provision	(2)	(7)	(2)
Ending balance	$ 1	$ 0	$ 0

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Allowance for Loan Losses - Composition of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance		$ 56,494	$ 54,352	$ 59,468	$ 55,537
Ending allowance balance attributed to loans
Individually evaluated for impairment		4,191	3,660
Collectively evaluated for impairment		52,303	50,692
Total ending allowance balance		56,494	54,352
Loan Balance:
Loans individually evaluated for impairment		80,599	73,676
Loans collectively evaluated for impairment		4,987,486	4,756,006
Total ending loan balance		$ 5,068,085	$ 4,829,682
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		5.20%	4.97%
Loans collectively evaluated for impairment		1.05%	1.07%
Total		1.11%	1.13%
Recorded Investment:
Loans individually evaluated for impairment		$ 80,664	$ 73,712
Loans collectively evaluated for impairment		5,001,660	4,769,599
Recorded Investment		5,082,324	4,843,311
Financing Receivable, Allowance for Credit Losses, Write-downs		14,290	24,780	19,153
Financing Receivable, Allowance for Credit Losses, Recovery		(11,442)	(26,997)	(19,669)
Financing Receivables Allowance For Credit Losses Net Charge Offs		2,848	(2,217)	(516)
Provision for Loan, Lease, and Other Losses		4,990	(7,333)	3,415
Commercial, financial and agricultural
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance		13,694	10,719	14,218	15,635
Ending allowance balance attributed to loans
Individually evaluated for impairment		1,904	981
Collectively evaluated for impairment		11,790	9,738
Total ending allowance balance		13,694	10,719
Loan Balance:
Loans individually evaluated for impairment		30,545	19,103
Loans collectively evaluated for impairment		925,182	837,432
Total ending loan balance	[1]	$ 955,727	$ 856,535
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		6.23%	5.14%
Loans collectively evaluated for impairment		1.27%	1.16%
Total		1.43%	1.25%
Recorded Investment:
Loans individually evaluated for impairment		$ 30,595	$ 19,106
Loans collectively evaluated for impairment		928,569	840,647
Recorded Investment	[1]	959,164	859,753
Financing Receivable, Allowance for Credit Losses, Write-downs		2,478	3,779	6,160
Financing Receivable, Allowance for Credit Losses, Recovery		(1,373)	(1,003)	(1,314)
Financing Receivables Allowance For Credit Losses Net Charge Offs		1,105	2,776	4,846
Provision for Loan, Lease, and Other Losses		4,080	(723)	3,429
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance		9,197	8,808	15,899	11,736
Ending allowance balance attributed to loans
Individually evaluated for impairment		381	262
Collectively evaluated for impairment		8,816	8,546
Total ending allowance balance		9,197	8,808
Loan Balance:
Loans individually evaluated for impairment		18,015	21,978
Loans collectively evaluated for impairment		1,095,588	1,047,659
Total ending loan balance	[1]	$ 1,113,603	$ 1,069,637
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		2.11%	1.19%
Loans collectively evaluated for impairment		0.80%	0.82%
Total		0.83%	0.82%
Recorded Investment:
Loans individually evaluated for impairment		$ 18,025	$ 21,989
Loans collectively evaluated for impairment		1,099,587	1,051,194
Recorded Investment	[1]	1,117,612	1,073,183
Financing Receivable, Allowance for Credit Losses, Write-downs		348	8,003	1,832
Financing Receivable, Allowance for Credit Losses, Recovery		(2,241)	(7,759)	(726)
Financing Receivables Allowance For Credit Losses Net Charge Offs		(1,893)	244	1,106
Provision for Loan, Lease, and Other Losses		(1,504)	(6,847)	5,269
Construction real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance		8,564	8,652	6,855	6,841
Ending allowance balance attributed to loans
Individually evaluated for impairment		1,356	1,812
Collectively evaluated for impairment		7,208	6,840
Total ending allowance balance		8,564	8,652
Loan Balance:
Loans individually evaluated for impairment		6,716	7,690
Loans collectively evaluated for impairment		166,629	148,114
Total ending loan balance		$ 173,345	$ 155,804
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		20.19%	23.56%
Loans collectively evaluated for impairment		4.33%	4.62%
Total		4.94%	5.55%
Recorded Investment:
Loans individually evaluated for impairment		$ 6,720	$ 7,687
Loans collectively evaluated for impairment		167,042	148,512
Recorded Investment		173,762	156,199
Financing Receivable, Allowance for Credit Losses, Write-downs		470	1,316	1,791
Financing Receivable, Allowance for Credit Losses, Recovery		(2,092)	(12,572)	(9,378)
Financing Receivables Allowance For Credit Losses Net Charge Offs		(1,622)	(11,256)	(7,587)
Provision for Loan, Lease, and Other Losses		(1,710)	(9,459)	(7,573)
Residential real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance		13,514	14,772	14,251	14,759
Ending allowance balance attributed to loans
Individually evaluated for impairment		550	605
Collectively evaluated for impairment		12,964	14,167
Total ending allowance balance		13,514	14,772
Loan Balance:
Loans individually evaluated for impairment		25,323	24,905
Loans collectively evaluated for impairment		1,830,120	1,826,470
Total ending loan balance		$ 1,855,443	$ 1,851,375
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		2.17%	2.43%
Loans collectively evaluated for impairment		0.71%	0.78%
Total		0.73%	0.80%
Recorded Investment:
Loans individually evaluated for impairment		$ 25,324	$ 24,930
Loans collectively evaluated for impairment		1,833,449	1,829,931
Recorded Investment		1,858,773	1,854,861
Financing Receivable, Allowance for Credit Losses, Write-downs		2,352	3,944	3,207
Financing Receivable, Allowance for Credit Losses, Recovery		(2,438)	(2,985)	(6,000)
Financing Receivables Allowance For Credit Losses Net Charge Offs		(86)	959	(2,793)
Provision for Loan, Lease, and Other Losses		(1,344)	1,480	(3,301)
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance		11,524	11,401	8,245	6,566
Ending allowance balance attributed to loans
Individually evaluated for impairment		0	0
Collectively evaluated for impairment		11,524	11,401
Total ending allowance balance		11,524	11,401
Loan Balance:
Loans individually evaluated for impairment		0	0
Loans collectively evaluated for impairment		967,111	893,160
Total ending loan balance		$ 967,111	$ 893,160
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		0.00%	0.00%
Loans collectively evaluated for impairment		1.19%	1.28%
Total		1.19%	1.28%
Recorded Investment:
Loans individually evaluated for impairment		$ 0	$ 0
Loans collectively evaluated for impairment		970,143	896,127
Recorded Investment		970,143	896,127
Financing Receivable, Allowance for Credit Losses, Write-downs		8,642	7,738	6,163
Financing Receivable, Allowance for Credit Losses, Recovery		(3,295)	(2,671)	(2,249)
Financing Receivables Allowance For Credit Losses Net Charge Offs		5,347	5,067	3,914
Provision for Loan, Lease, and Other Losses		5,470	8,223	5,593
Leases
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance		1	0	0	$ 0
Ending allowance balance attributed to loans
Individually evaluated for impairment		0	0
Collectively evaluated for impairment		1	0
Total ending allowance balance		1	0
Loan Balance:
Loans individually evaluated for impairment		0	0
Loans collectively evaluated for impairment		2,856	3,171
Total ending loan balance		$ 2,856	$ 3,171
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		0.00%	0.00%
Loans collectively evaluated for impairment		0.04%	0.00%
Total		0.04%	0.00%
Recorded Investment:
Loans individually evaluated for impairment		$ 0	$ 0
Loans collectively evaluated for impairment		2,870	3,188
Recorded Investment		2,870	3,188
Financing Receivable, Allowance for Credit Losses, Write-downs		0	0	0
Financing Receivable, Allowance for Credit Losses, Recovery		(3)	(7)	(2)
Financing Receivables Allowance For Credit Losses Net Charge Offs		(3)	(7)	(2)
Provision for Loan, Lease, and Other Losses		$ (2)	$ (7)	$ (2)

[1] Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class.

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Loans Held for Sale Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2014
Loans Held for Sale [Line Items]
Disposal Group, Including Discontinued Operation, Mortgage Loans	$ 7,306,000	$ 5,264,000
Loans Held-for-sale, Mortgages, Contractual Balance	7,200,000	5,200,000
Expected Gain (Loss) on Sale of Mortgage Loans	95,000	80,000
Commercial Portfolio Segment [Member]
Loans Held for Sale [Line Items]
Loans held for sale - lower of cost or market	100,000		$ 22,000,000
Gain (Loss) on Sale of Loans and Leases	$ 800,000	$ 1,900,000

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Other Real Estate Owned (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Line Items]
Other Real Estate, Foreclosed Assets, and Repossessed Assets	$ 18,651	$ 22,605
Construction real estate
Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Line Items]
Other Real Estate, Foreclosed Assets, and Repossessed Assets	7,259	11,281
Commercial Real Estate [Member]
Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Line Items]
Other Real Estate, Foreclosed Assets, and Repossessed Assets	8,333	6,352
Residential real estate
Schedule of Assets Repossessed or Foreclosed, or loans in process of foreclosure [Line Items]
Other Real Estate, Foreclosed Assets, and Repossessed Assets	3,059	4,972
Mortgage Loans in Process of Foreclosure, Amount	$ 2,021	$ 2,807

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Premises And Equipment - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 7.3	$ 7.2	$ 7.3
Rent expense	$ 1.7	$ 1.7	$ 1.8

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Premises And Equipment - Major Categories of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	$ 145,365	$ 134,416
Less accumulated depreciation	(85,872)	(78,937)
Premises and equipment, net	59,493	55,479
Land
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	19,123	17,836
Buildings
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	74,525	71,002
Equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	47,839	42,139
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and Equipment, Gross	$ 3,878	$ 3,439

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Premises And Equipment - Schedule of Future Minimum Rental Payments Under Operating Leases (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2014	$ 1,475
2015	1,276
2016	1,104
2017	1,019
2018	394
Thereafter	520
Total	$ 5,788

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Investment in Qualified Affordable Housing (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other expense	$ 186,614	$ 187,510	$ 181,515
Assets	7,311,354	7,001,199	6,636,423
Amortization Method Qualified Affordable Housing Project Investments, Amortization	6,700	6,900
Affordable Housing Tax Credits and Other Tax Benefits, Amount	8,900	8,800
Affordable Housing Program Obligation	20,311	16,629
Retained earnings	507,505	484,484
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	713,355	696,541	649,823	$ 650,366
Income Tax Expense (Benefit)	32,567	36,459	32,503
Net income	81,012	83,957	76,869
Qualified Affordable Housing [Domain]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity investments	51,247	48,911
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	507,505	484,484	458,719	$ 441,605
Net income	$ 81,012	83,957	76,869
Accounting Standards Update 2014-01 [Member] | Assets [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets		7,001,199
Accounting Standards Update 2014-01 [Member] | Assets [Member] | Scenario, Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets		7,003,256
Accounting Standards Update 2014-01 [Member] | Retained Earnings | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		484,484
Accounting Standards Update 2014-01 [Member] | Retained Earnings | Scenario, Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		486,541
Accounting Standards Update 2014-01 [Member] | Equity [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		696,541
Accounting Standards Update 2014-01 [Member] | Equity [Member] | Scenario, Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		698,598
Net Income [Domain] | Accounting Standards Update 2014-01 [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income		83,957	76,869
Net Income [Domain] | Accounting Standards Update 2014-01 [Member] | Scenario, Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income		84,090	77,227
Income Tax Expense [Member] | Accounting Standards Update 2014-01 [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income Tax Expense (Benefit)		36,459	32,503
Income Tax Expense [Member] | Accounting Standards Update 2014-01 [Member] | Scenario, Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income Tax Expense (Benefit)		28,602	25,131
Other Expense [Member] | Accounting Standards Update 2014-01 [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other expense		187,510	181,515
Other Expense [Member] | Accounting Standards Update 2014-01 [Member] | Scenario, Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other expense		$ 195,234	$ 188,529

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Deposits - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Deposits [Abstract]
Deposits received from executive officers, directors, and their related interests	$ 21.6	$ 21.9
Time Deposits, $250,000 or more	$ 49.7	$ 64.7

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Deposits - Summary of Noninterest Bearing and Interest Bearing Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deposits [Abstract]
Non-interest bearing	$ 1,404,032	$ 1,269,296
Interest bearing	3,943,610	3,858,704
Total deposits	$ 5,347,642	$ 5,128,000	$ 4,789,994

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Deposits - Time Deposits (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Time Deposits, Fiscal Year Maturity [Abstract]
2013	$ 814,387
2014	221,761
2015	56,744
2016	145,027
2017	52,062
After 5 years	431
Total	$ 1,290,412

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Deposits - Maturities of Time Deposits (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Time Deposits, $250,000 or more	$ 49.7	$ 64.7

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Repurchase Agreements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Nov. 30, 2012
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
ERROR in label resolution.	$ 585,000	$ 347,000
Pledged Assets Separately Reported, Securities Pledged for Repurchase Agreements, at Fair Value	622,000	664,000
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	554,242	576,980
Maturity Greater than 90 Days [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	304,385	303,449
Maturity 30 to 90 Days [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	0	4,940
Maturity Less than 30 Days [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	2,239	164
Maturity Overnight [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount	$ 247,618	$ 268,427
Long-term Debt [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount			$ 300,000

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Short-Term Borrowings - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Money Pledged as Collateral for FHLB Advance Borrowings	$ 21	$ 28
FHLB Advances
Short-term Debt [Line Items]
Commercial real estate and residential mortgage loans pledged under blanket agreement	$ 1,985	$ 2,038

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Short-Term Borrowings - Schedule of Short-Term Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Securities sold under agreements to repurchase	$ 254,242	$ 276,980
FHLB advances	140,000	0
Total short-term borrowings	394,242	276,980
Repurchase agreements
Short-term Debt [Line Items]
Total short-term borrowings	254,242	276,980
Highest month-end balance	278,324	307,025
Average daily balance	$ 257,622	$ 262,709
Weighted-average interest rate:
As of year-end	0.17%	0.18%
Paid during the year	0.18%	0.19%
FHLB Advances
Short-term Debt [Line Items]
Total short-term borrowings	$ 140,000	$ 0
Highest month-end balance	140,000	0
Average daily balance	$ 1,096	$ 561
Weighted-average interest rate:
As of year-end	0.56%	0.00%
Paid during the year	0.59%	0.10%

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Long-Term Debt - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Nov. 30, 2012
Debt Instrument [Line Items]
Gains (Losses) on Restructuring of Debt	$ 500	$ 3,200
prepayment penalty amount remaining to amortize	2,100
Amortization of prepayment penalty on long term debt	6,047	5,031	$ 4,835
Prepayment Penalty, Future Amortization Expense [Abstract]
Prepayment penalty	11,895	17,941
Long-term debt with contractual maturity longer than five years	150,000	150,699
Money Pledged as Collateral for FHLB Advance Borrowings	21,000	28,000
FHLB Debt Prepaid	$ 54,500
FHLB Debt Prepaid Weighted Avg Rate	1.59%
FHLB Debt Amount Restructured		$ 50,000
Broker Repurchase Agreements
Debt Instrument [Line Items]
Debt repurchased during period				$ 300,000
Debt repurchased during period, rate				1.75%
Total prepayment penalty	$ 25,000
Effective interest rate percentage	3.55%
Prepayment Penalty, Future Amortization Expense [Abstract]
Prepayment penalty	$ 9,800
Payments of Debt Extinguishment Costs, Amount to be Amortized in Year Two	5,100
Payments of Debt Extinguishment Costs, Amount to be Amortized in Year Three	$ 4,700
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member]
Debt Instrument [Line Items]
Debt repurchased during period, rate				1.25%
Effective interest rate percentage	3.52%
Prepayment Penalty, Future Amortization Expense [Abstract]
Payments of Debt Extinguishment Costs, Amount to be Amortized in Year Two	$ 1,100
Payments of Debt Extinguishment Costs, Amount to be Amortized in Year Three	$ 1,000

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Long-Term Debt - Schedule of long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Long-term Debt, Fiscal Year Maturity [Abstract]
2015	$ 0	$ 51,000
2016	350,000	26,000
2017	150,000	351,000
2018	75,000	125,049
2019	25,000	75,333
2020		25,462
Thereafter	150,000	150,699
Total long-term debt, excluding prepayment penalty	750,000	804,543
Prepayment penalty	(11,895)	(17,941)
Total long-term debt	$ 738,105	$ 786,602
Long-term Debt, Fiscal Year Maturity, Average Rate [Abstract] [Abstract]
2015	0.00%	2.00%
2016	1.68%	0.92%
2017	2.04%	1.68%
2018	1.96%	2.11%
2019	2.14%	1.97%
2020		2.19%
Long-term Debt, Maturities, Repayments of Principal after Year Five	$ 150,000
Thereafter		3.33%
Average rate, total, excluding prepayment penalty	2.12%	2.09%
Average rate, total	2.16%	2.89%
Long Term Debt Maturities Average Rate In After Year Five	3.32%
FHLB Advances
Long-term Debt, Fiscal Year Maturity [Abstract]
2015	$ 0	$ 51,000
2016	50,000	26,000
2017	150,000	51,000
2018	75,000	125,049
2019	25,000	75,333
2020		25,462
Thereafter		150,699
Total long-term debt, excluding prepayment penalty	$ 450,000	$ 504,543
Long-term Debt, Fiscal Year Maturity, Average Rate [Abstract] [Abstract]
2015	0.00%	2.00%
2016	1.25%	0.92%
2017	2.04%	1.28%
2018	1.96%	2.11%
2019	2.14%	1.97%
2020		2.19%
Long-term Debt, Maturities, Repayments of Principal after Year Five	$ 150,000
Thereafter		3.33%
Average rate, total, excluding prepayment penalty	2.37%	2.30%
Long Term Debt Maturities Average Rate In After Year Five	3.32%
Broker Repurchase Agreements
Long-term Debt, Fiscal Year Maturity [Abstract]
2017	$ 300,000
2018		$ 300,000
Total long-term debt, excluding prepayment penalty	300,000	$ 300,000
Prepayment penalty	$ (9,800)
Long-term Debt, Fiscal Year Maturity, Average Rate [Abstract] [Abstract]
2017	1.75%
2018		1.75%
Average rate, total, excluding prepayment penalty	1.75%	1.75%

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Subordinated Debentures/Notes (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Apr. 20, 2012 USD ($) purchaser	Dec. 23, 2009 purchaser
Subordinated notes	$ 45,000	$ 45,000
Number of purchasers | purchaser				38
Trust I
Preferred securities issued	15,000
Junior subordinated notes
Junior subordinated debt purchased by Trust I	$ 15,500
Trust preferred securities
Variable rate basis	three-month LIBOR plus 148 basis points
Basis spread on variable rate (percent)	1.48%
Subordinated note
Subordinated notes principal amount	$ 35,250
Portion of principal amount purchased by related parties	$ 14,050
Interest rate	10.00%
Subordinated debt | 7% Subordinated notes due April 20, 2022
Subordinated borrowing, number of purchasers | purchaser			56
Aggregate principal amount			$ 30,000
Interest rate	7.00%
Purchase price as a percentage of principal amount			100.00%
Repurchase amount as a percentage of principal			100.00%

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Share-Based Compensation - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury Stock Reissued Shares For Director Grants		10,150	10,200	10,550
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost		$ 963,000	$ 801,000	$ 850,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period		200
Allocated Share-based Compensation Expense		$ 865,000	$ 458,000
2013 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares authorized for delivery upon the exercise of incentive stock options		600,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease)		524,100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		23,025	21,975
Allocated Share-based Compensation Expense		$ 458,000	$ 865,000	$ 0
Common Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury Stock Reissued Shares For Director Grants		10,150	10,200	10,550
Allocated Share-based Compensation Expense		$ 865,000	$ 458,000
2015 Awards [Member] [Member] | Scenario, Forecast [Member] | 2013 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 1,208,000
2014 Awards [Member] | Scenario, Forecast [Member] | 2013 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 734,000

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Benefit Plans - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Nov. 17, 2009
Defined Benefit Plan Disclosure [Line Items]
Company contributions		$ 0	$ 0
Accumulated benefit obligation for the pension plan		$ 86,100,000	$ 92,000,000
Common share purchased under pension plan, shares					115,800
Common share purchased under pension plan, value					$ 7,000,000
Common share purchased under pension plan, value per share					$ 60.45
Fair value, pension plan common shares held, shares		115,800	115,800
Fair value of common shares held by pension plan		$ 10,500,000	$ 10,200,000
Fair value of common shares held by pension plan, per share		$ 90.48	$ 88.48
Estimated net actuarial (loss) expected to be recognized in the next fiscal year		$ (637,000)	$ 0	$ (2,703,000)
Expected long-term return on plan assets		7.25%	7.25%	7.50%
Cash balance in bank		$ 700,000
Market value of pension plan assets		153,500,000	$ 160,600,000
Defined Contribution Plan, Cost Recognized		1,200,000	$ 1,100,000	$ 1,100,000
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Estimated prior service costs expected to be recognized in net periodic benefit cost during next fiscal year		$ 0
S&P 500 Index
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets		7.25%	7.25%
Supplemental Executive Retirement Plan (SERP)
Defined Benefit Plan Disclosure [Line Items]
Benefit expense		$ 1,100,000	$ 1,500,000	$ 0
Accrued benefit cost		8,000,000	7,600,000
Level 1
Defined Benefit Plan Disclosure [Line Items]
Equity investments		135,000,000	141,100,000
Level 2
Defined Benefit Plan Disclosure [Line Items]
Equity investments		18,500,000	19,500,000
Level 3
Defined Benefit Plan Disclosure [Line Items]
Equity investments		$ 0	$ 0
Scenario, Forecast [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated net actuarial (loss) expected to be recognized in the next fiscal year	$ 773,000

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Benefit Plans - Plan Assets and Benefit Obligation Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Change in fair value of plan assets
Fair value at beginning of measurement period	$ 160,598	$ 152,739
Actual return on plan assets	(58)	15,511
Benefits paid	(7,042)	(7,652)
Fair value at end of measurement period	153,498	160,598	$ 152,739
Change in benefit obligation
Projected benefit obligation at beginning of measurement period	109,328	89,179
Service cost	5,368	4,331	4,817
Interest cost	4,695	4,577	4,223
Actuarial (gains) loss	(10,104)	18,893
Benefits paid	(7,042)	(7,652)
Projected benefit obligation at the end of measurement period	102,245	109,328	$ 89,179
Funded status at end of year (fair value of plan assets less benefit obligation)	$ 51,253	$ 51,270

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Benefit Plans - Asset Allocation for the Pension Plan by Asset Category (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Contributions by Employer	$ 0	$ 0
Defined Benefit Plan, Information about Plan Assets [Abstract]
Actual Plan Asset Allocations	100.00%	100.00%
Equity securities
Defined Benefit Plan, Information about Plan Assets [Abstract]
Actual Plan Asset Allocations	85.00%	85.00%
Fixed income and cash equivalents
Defined Benefit Plan, Information about Plan Assets [Abstract]
Actual Plan Asset Allocations	15.00%	15.00%
S&P 500 Index
Defined Benefit Plan, Information about Plan Assets [Abstract]
Defined Benefit Plan, Expected Return on Plan Assets, Percentage	7.25%	7.25%

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Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Obligations (Details)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	4.88%	4.42%	5.30%
Rate of compensation increase
Under age 30 [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	10.00%	10.00%	10.00%
Ages 30-39 [Member] [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	6.00%	6.00%	6.00%
Ages 40 and over [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	3.00%	3.00%	3.00%

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Benefit Plans - Estimated Future Pension Benefit Payments (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
2013	$ 5,010
2014	5,321
2015	5,800
2016	6,780
2017	7,317
2018-2022	45,831
Total	$ 76,059

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Benefit Plans - Balances of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]
Prior service cost	$ 0	$ 15
Net actuarial loss	(23,618)	(22,855)
Total	(23,618)	(22,870)
Deferred taxes	(8,267)	(8,005)
Accumulated other comprehensive loss	$ (15,351)	$ (14,865)

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Benefit Plans - Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components of net periodic benefit cost
Service cost	$ (5,368,000)	$ (4,331,000)	$ (4,817,000)
Interest cost	(4,695,000)	(4,577,000)	(4,223,000)
Expected return on plan assets	11,420,000	10,869,000	9,536,000
Net periodic benefit income (cost)	(705,000)	(1,942,000)	2,227,000
Other amounts recognized in other comprehensive (Loss)
Change to net actuarial (loss) gain for the period	(1,400,000)	(14,276,000)	30,409,000
Amortization of prior service cost	(15,000)	(19,000)	(20,000)
Defined Benefit Plan, Future Amortization of Gain (Loss)	(637,000)	0	(2,703,000)
Amortization of net loss	637,000	0	2,703,000
Total recognized in other comprehensive (loss) income	(748,000)	(14,257,000)	33,132,000
Total recognized in net benefit cost and other comprehensive (loss) income	$ (43,000)	$ (12,315,000)	$ 30,905,000

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Benefit Plans - Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount Rate	4.42%	5.30%	4.47%
Rate of compensation increase
Expected long-term return on plan assets	7.25%	7.25%	7.50%

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Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Allowance for loan losses	$ 19,773	$ 19,023
Accumulated other comprehensive loss – Pension Plan	8,266	8,005
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross	157	0
Deferred compensation	3,908	3,820
OREO valuation adjustments	2,418	3,984
Deferred Tax Assets, Deferred Income	1,204	933
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Other	1,031	0
Other	4,171	4,338
Total deferred tax assets	40,928	40,103
Deferred tax liabilities:
Accumulated other comprehensive income – Unrealized gains on securities	0	677
Deferred investment income	10,199	10,199
Pension plan	26,205	25,949
Mortgage servicing rights	3,153	3,015
Deferred Tax Liabilities, Partnership Adjustments	560	865
Other	872	804
Total deferred tax liabilities	40,989	41,509
Net deferred tax asset (liability)	$ (61)	$ (1,406)

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Income Taxes - Components of the Provision for Federal and State Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Currently payable
Federal	$ 32,817	$ 33,931	$ 34,435
Deferred
Federal	(250)	2,528	(1,932)
Total	$ 32,567	$ 36,459	$ 32,503

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Income Taxes - Reconciliation of Federal Income Tax Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income Tax Examination, Penalties and Interest Expense	$ 2,000		$ (500)
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Statutory federal corporate tax rate	35.00%	35.00%	35.00%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest	(0.50%)	(0.50%)	(0.80%)
Bank owned life insurance	(1.80%)	(1.40%)	(1.60%)
Effective Income Tax Rate Reconciliation, Investment in Qualified Affordable Housing, Percent	(1.90%)	(1.60%)	(1.70%)
Investments in qualified affordable housing projects, net of tax benefits	(0.90%)	(0.00%)	(0.00%)
Effective Income Tax Rate Reconciliation, Deduction, Employee Stock Ownership Plan Dividend, Percent	(1.00%)	(1.00%)	(1.10%)
Other	(0.20%)	(0.20%)	(0.10%)
Effective tax rate	28.70%	30.30%	29.70%

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Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 432,000	$ 413,000	$ 403,000
Income Tax Examination, Penalties and Interest Expense	2,000		(500)
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
January 1 Balance	532,000	518,000	517,000
Additions based on tax positions related to the current year	80,000	76,000	74,000
Additions for tax positions of prior years	16,000	14,000	4,000
Reductions for tax positions of prior years	0	0	0
Reductions due to statute of limitations	(70,000)	(76,000)	(77,000)
December 31 Balance	558,000	532,000	518,000
Income Tax Examination, Penalties and Interest Accrued	$ 69,000	$ 67,000	$ 67,000

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Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax	$ 652	$ 19	$ 2,723
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax	228	7	953
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax	15,351	(14,865)	(5,598)	$ 27,134
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	(292)	1,257	(29,821)	9,616
Accumulated Other Comprehensive Income (Loss), Net of Tax	(15,643)	(13,608)	(35,419)	$ (17,518)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	(486)	(9,267)	21,536
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	(1,549)	31,078	(39,437)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax	(910)	(9,279)	19,766
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax	(1,549)	30,325	(39,448)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(2,459)	21,046	(19,682)
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax	424	12	1,770
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	424	765	1,781
Other Comprehensive Income (Loss), Net of Tax	(2,035)	21,811	(17,901)
Gain (Loss) on Sale of Investments	0	1,158	0
Other than Temporary Impairment Losses, Investments	0	0	17
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax	0	1,158	17
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	0	405	6
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	753	11
Amortization of prior service cost [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax	15	19	20
Amortization of net loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax	$ 637	$ 0	$ 2,703

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Earnings Per Common Share - Summary of Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net Income (Loss) Available to Common Stockholders, Basic [Abstract]
Net income available to common shareholders	$ 81,012	$ 83,957	$ 76,869
Denominator:
Weighted-average common shares outstanding	15,364,281	15,394,971	15,412,365
Effect of dilutive securities – performance based restricted stock units	40,459	18,861	0
Earnings per common share:	15,404,740	15,413,832	15,412,365
Earnings per common share:
Basic earnings per common share	$ 5.27	$ 5.45	$ 4.99
Diluted earnings per common share	$ 5.26	$ 5.45	$ 4.99

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Earnings Per Common Share - Narrative (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Class of Warrant or Right [Line Items]
Weighted Average Number Diluted Shares Outstanding Adjustment	40,459	18,861	0
2013 Long Term Incentive Plan [Member]
Class of Warrant or Right [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	23,025	21,975
Common Shares
Class of Warrant or Right [Line Items]
Treasury Stock, Shares, Acquired	71,700	29,700	10,550

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Dividend Restrictions (Details) $ in Millions	Dec. 31, 2015 USD ($)
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]
Amount available for dividend distribution without prior approval from regulatory authority	$ 107.5

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Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations Of Credit Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Risks and Uncertainties [Abstract]
Loan commitments	$ 888,411	$ 869,793
Standby letters of credit	$ 12,326	$ 12,473

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Loan Servicing - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Servicing Assets at Fair Value [Line Items]
Mortgage Servicing Rights Fair Value	$ 9,593	$ 9,057
Transfers and Servicing of Financial Assets [Abstract]
Serviced sold mortgage loans	1,276,000	1,265,000	$ 1,326,000
Serviced sold mortgage loans with recourse	5,400	7,000
Mortgage loans sold with recourse, reserve	$ 454	$ 400
Mortgage servicing rights, discount rate	10.00%	10.00%
Servicing fees included in other service income	$ 3,400	$ 3,500	$ 3,600
Minimum
Transfers and Servicing of Financial Assets [Abstract]
Mortgage servicing rights, constant prepayment speeds	6.30%	5.70%
Maximum
Transfers and Servicing of Financial Assets [Abstract]
Mortgage servicing rights, constant prepayment speeds	22.00%	22.30%

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Loan Servicing - Activity for MSRs And Related Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Mortgage servicing rights:
Carrying amount, net, beginning of year	$ 8,613	$ 9,013	$ 7,763
Additions	1,748	1,026	2,436
Amortization	(1,637)	(1,631)	(2,479)
Change in valuation allowance	284	205	1,293
Carrying amount, net, end of year	9,008	8,613	9,013
Valuation allowance:
Beginning of year	826	1,031	2,324
Change in valuation allowance	(284)	(205)	(1,293)
End of year	$ 542	$ 826	$ 1,031

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Fair Values - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount percentage applied to real estate appraised values	15.00%
Discount percentage applied to lot development appraised values	6.00%
Partial charge-offs on impaired loans	$ 28,705	$ 32,480
Allowance for loans individually evaluated for impairment	4,191	3,660
Book Value Of Impaired Loans Carried At Fair Value	11,783	19,643
Impaired loans carried at fair value	9,496	16,963
Impaired Financing Receivable, Related Allowance	4,191	3,660
Impaired Financing Receivable, carried at fair value, related expense	2,100	3,000	$ 8,100
MSR recorded at lower of cost or fair value	9,008	8,613	9,013	$ 7,763
Servicing Asset at Fair Value, Amount	1,900	2,900
Mortgage Servicing Rights, at fair value	9,593	9,057
Valuation allowance of MSR	542	826	1,031	$ 2,324
MSRs recorded at cost	7,100	5,700
Valuation allowance for impairment of recognized servicing assets, provisions (recoveries)	284	205	1,293
Other Real Estate, Foreclosed Assets, and Repossessed Assets	$ 18,651	22,605
Percent of OREO held at fair value	46.00%
Estimated fair value of other real estate owned (OREO)	$ 8,500	10,300
OREO devaluations	1,592	2,406	$ 3,180
Commercial Receivables, excluding Commercial, Financial, and Agricultural [Domain]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Related Allowance	$ 2,287	$ 2,680

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Fair Values - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Mortgage Loans Held for Sale	$ 7,306	$ 5,264
Mortgage IRLCs	165	70
Level 1
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Mortgage IRLCs	0	0
Level 2
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Mortgage Loans Held for Sale	7,306	5,264
Mortgage IRLCs	165	70
Level 3
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Mortgage IRLCs	0	0
Fair value swap
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Swaps, fair value	226	226
Fair value swap | Level 3
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Swaps, fair value	226	226
Recurring basis
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Mortgage Loans Held for Sale	7,306	5,264
Mortgage IRLCs	165	70
Recurring basis | Level 2
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Mortgage Loans Held for Sale	7,306	5,264
Mortgage IRLCs	165	70
Recurring basis | Obligations of U.S. Treasury and other U.S. Government sponsored entities
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	522,063	538,064
Recurring basis | Obligations of U.S. Treasury and other U.S. Government sponsored entities | Level 2
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	522,063	538,064
Recurring basis | U.S. Government Sponsored Entities’ Asset-Backed Securities
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	911,493	761,153
Recurring basis | U.S. Government Sponsored Entities’ Asset-Backed Securities | Level 2
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	911,493	761,153
Recurring basis | Equity securities
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	2,710	2,698
Recurring basis | Equity securities | Level 1
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	1,941	1,922
Recurring basis | Equity securities | Level 3
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	769	776
Recurring basis | Fair value swap
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Swaps, fair value	226	226
Recurring basis | Fair value swap | Level 3
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Swaps, fair value	$ 226	$ 226

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Fair Values - Reconciliation of the Level 3 Inputs for Financial Instruments Measured on a Recurring Basis (Details) - Recurring basis - Level 3 - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Equity Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 776	$ 759
Total Gains (Losses)
Included in earnings - realized	0	0
Included in earnings - unrealized	0	0
Included in other comprehensive loss	(7)	17
Purchases, sales, issuances and settlements, other, net	0	0
Re-evaluation of fair value swap		0
Ending balance	769	776
Fair Value Swap
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	(226)	(135)
Total Gains (Losses)
Included in earnings - realized	0	0
Included in earnings - unrealized	0	0
Purchases, sales, issuances and settlements, other, net	0	0
Re-evaluation of fair value swap		(91)
Ending Balance	$ (226)	$ (226)

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Fair Values - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	$ 9,496	$ 16,963
Mortgage Servicing Rights	1,900	2,900
Other loans	4,997,318	4,757,461
Level 3
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	9,496	16,963
Other loans	4,997,318	4,757,461
Nonrecurring basis
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	9,496	16,963
Mortgage Servicing Rights	1,867	2,928
Other loans	8,515	10,312
Nonrecurring basis | Level 1
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Other loans	0	0
Nonrecurring basis | Level 2
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Mortgage Servicing Rights	1,867	2,928
Other loans	0	0
Nonrecurring basis | Level 3
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	9,496	16,963
Other loans	8,515	10,312
Nonrecurring basis | Commercial real estate
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	3,698	8,481
Other loans	2,796	1,470
Nonrecurring basis | Commercial real estate | Level 1
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Other loans	0	0
Nonrecurring basis | Commercial real estate | Level 2
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Other loans	0	0
Nonrecurring basis | Commercial real estate | Level 3
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	3,698	8,481
Other loans	2,796	1,470
Nonrecurring basis | Construction real estate
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Other loans	3,387	6,473
Nonrecurring basis | Construction real estate | Level 1
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Other loans	0	0
Nonrecurring basis | Construction real estate | Level 2
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Other loans	0	0
Nonrecurring basis | Construction real estate | Level 3
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Other loans	3,387	6,473
Nonrecurring basis | SEPH commercial land and development
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	2,044
Nonrecurring basis | SEPH commercial land and development | Level 3
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	2,044
Nonrecurring basis | SEPH commercial land and development
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value		2,078
Nonrecurring basis | SEPH commercial land and development | Level 3
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value		2,078
Nonrecurring basis | Remaining commercial
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	1,872	3,483
Nonrecurring basis | Remaining commercial | Level 3
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	1,872	3,483
Nonrecurring basis | Residential real estate
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	1,882	2,921
Other loans	2,332	2,369
Nonrecurring basis | Residential real estate | Level 1
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Other loans	0	0
Nonrecurring basis | Residential real estate | Level 2
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Other loans	0	0
Nonrecurring basis | Residential real estate | Level 3
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans carried at fair value	1,882	2,921
Other loans	$ 2,332	$ 2,369

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Fair Values - Qualitative Information About Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired loans	$ 9,496	$ 16,963
Other real estate owned	4,997,318	4,757,461
Nonrecurring basis
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired loans	9,496	16,963
Other real estate owned	8,515	10,312
Commercial real estate | Nonrecurring basis
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired loans	3,698	8,481
Other real estate owned	2,796	1,470
Commercial real estate | Nonrecurring basis | Loans receivable
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired loans	3,698	8,481
Construction real estate | Nonrecurring basis
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Other real estate owned	3,387	6,473
SEPH commercial land and development | Nonrecurring basis
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired loans	2,044
SEPH commercial land and development | Nonrecurring basis | Loans receivable
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired loans	2,044	2,078
Remaining commercial | Nonrecurring basis
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired loans	1,872	3,483
Remaining commercial | Nonrecurring basis | Loans receivable
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired loans	1,872	3,483
Residential real estate | Nonrecurring basis
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired loans	1,882	2,921
Other real estate owned	2,332	2,369
Residential real estate | Nonrecurring basis | Loans receivable
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired loans	1,882	2,921
Commercial real estate | Nonrecurring basis | Other real estate owned
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Other real estate owned	2,796	1,470
Construction real estate | Nonrecurring basis | Other real estate owned
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Other real estate owned	3,387	6,473
Residential Real Estate | Nonrecurring basis | Other real estate owned
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Other real estate owned	$ 2,332	$ 2,369
Sales comparison approach | Commercial real estate | Low | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	0.00%	0.00%
Sales comparison approach | Commercial real estate | High | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	45.90%	84.00%
Sales comparison approach | Commercial real estate | Weighted Average [Member] | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	20.30%	38.80%
Sales comparison approach | SEPH commercial land and development | Low | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	5.00%	5.00%
Sales comparison approach | SEPH commercial land and development | High | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	40.00%	35.00%
Sales comparison approach | SEPH commercial land and development | Weighted Average [Member] | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	22.10%	17.50%
Sales comparison approach | Remaining commercial | Low | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	0.00%	0.20%
Sales comparison approach | Remaining commercial | High | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	25.30%	76.00%
Sales comparison approach | Remaining commercial | Weighted Average [Member] | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	1.00%	45.40%
Sales comparison approach | Residential real estate | Low | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	0.00%	0.00%
Sales comparison approach | Residential real estate | High | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	96.70%	120.60%
Sales comparison approach | Residential real estate | Weighted Average [Member] | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Adj to comparables	12.50%	11.10%
Sales comparison approach | Commercial real estate | Low | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Adj to comparables	2.00%	0.00%
Sales comparison approach | Commercial real estate | High | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Adj to comparables	71.00%	87.00%
Sales comparison approach | Commercial real estate | Weighted Average [Member] | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Adj to comparables	26.90%	30.50%
Sales comparison approach | Construction real estate | Low | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Adj to comparables	0.00%	0.00%
Sales comparison approach | Construction real estate | High | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Adj to comparables	85.00%	82.90%
Sales comparison approach | Construction real estate | Weighted Average [Member] | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Adj to comparables	24.30%	27.10%
Sales comparison approach | Residential Real Estate | Low | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Adj to comparables	0.10%	0.00%
Sales comparison approach | Residential Real Estate | High | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Adj to comparables	61.80%	38.30%
Sales comparison approach | Residential Real Estate | Weighted Average [Member] | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Adj to comparables	23.00%	10.10%
Income approach | Commercial real estate | Low | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Capitalization rate	7.00%	8.00%
Income approach | Commercial real estate | High | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Capitalization rate	13.30%	9.50%
Income approach | Commercial real estate | Weighted Average [Member] | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Capitalization rate	9.50%	9.40%
Income approach | Residential real estate | Low | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Capitalization rate	3.80%	7.90%
Income approach | Residential real estate | High | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Capitalization rate	10.10%	10.00%
Income approach | Residential real estate | Weighted Average [Member] | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Capitalization rate	9.10%	8.00%
Income approach | Commercial real estate | Low | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Capitalization rate	9.50%	8.40%
Income approach | Commercial real estate | High | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Capitalization rate	9.50%	10.00%
Income approach | Commercial real estate | Weighted Average [Member] | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Capitalization rate	9.50%	9.40%
Income approach | Residential Real Estate | Low | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Capitalization rate		6.80%
Income approach | Residential Real Estate | High | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Capitalization rate		7.80%
Income approach | Residential Real Estate | Weighted Average [Member] | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Capitalization rate		7.60%
Cost approach | Commercial real estate | Low | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Fair Value Inputs, Accumulated Depreciation	50.00%	23.00%
Cost approach | Commercial real estate | High | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Fair Value Inputs, Accumulated Depreciation	50.00%	23.00%
Cost approach | Commercial real estate | Weighted Average [Member] | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Fair Value Inputs, Accumulated Depreciation	50.00%	23.00%
Cost approach | Residential real estate | Low | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Fair Value Inputs, Accumulated Depreciation	33.30%
Cost approach | Residential real estate | High | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Fair Value Inputs, Accumulated Depreciation	50.00%
Cost approach | Residential real estate | Weighted Average [Member] | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Fair Value Inputs, Accumulated Depreciation	43.40%
Cost approach | Commercial real estate | Low | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Fair Value Inputs, Accumulated Depreciation		60.00%
Cost approach | Commercial real estate | High | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Fair Value Inputs, Accumulated Depreciation		95.00%
Cost approach | Commercial real estate | Weighted Average [Member] | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Fair Value Inputs, Accumulated Depreciation		77.50%
Bulk sale approach | SEPH commercial land and development | Low | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Discount rate	10.70%	10.80%
Bulk sale approach | SEPH commercial land and development | High | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Discount rate	10.70%	10.80%
Bulk sale approach | SEPH commercial land and development | Weighted Average [Member] | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Discount rate	10.70%	10.80%
Bulk sale approach | Remaining commercial | Low | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Discount rate	10.00%	10.00%
Bulk sale approach | Remaining commercial | High | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Discount rate	10.70%	22.00%
Bulk sale approach | Remaining commercial | Weighted Average [Member] | Nonrecurring basis | Loans receivable
Fair Value Inputs [Abstract]
Discount rate	10.00%	16.50%
Bulk sale approach | Construction real estate | Low | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Discount rate	15.00%	15.00%
Bulk sale approach | Construction real estate | High | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Discount rate	15.00%	15.00%
Bulk sale approach | Construction real estate | Weighted Average [Member] | Nonrecurring basis | Other real estate owned
Fair Value Inputs [Abstract]
Discount rate	15.00%	15.00%

XML

Fair Values - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financial assets:
Cash and money market instruments	$ 149,459	$ 237,699
Investment securities	1,587,694	1,445,405
Mortgage loans held for sale	7,306	5,264
Impaired loans carried at fair value	9,496	16,963
Derivative Asset	165	70
Other loans	4,997,318	4,757,461
Loans receivable, net	5,014,285	4,779,758
Financial liabilities:
Non-interest bearing checking accounts	1,404,032	1,269,296
Interest bearing transaction accounts	1,107,200	1,122,079
Savings accounts	1,544,708	1,325,445
Time Deposits, Fair Value	1,295,329	1,422,885
Other	1,290	1,269
Total deposits	5,352,559	5,140,974
Short-term borrowings	394,242	276,980
Long-term debt	771,420	827,500
Subordinated debentures/notes	41,596	42,995
Fair value swap
Derivative financial instruments:
Swaps, fair value	226	226
Carrying value
Financial assets:
Cash and money market instruments	149,459	237,699
Investment securities	1,585,568	1,442,477
Mortgage loans held for sale	7,306	5,264
Impaired loans carried at fair value	9,496	16,963
Derivative Asset	165	70
Other loans	4,994,624	4,753,033
Loans receivable, net	5,011,591	4,775,330
Financial liabilities:
Non-interest bearing checking accounts	1,404,032	1,269,296
Interest bearing transaction accounts	1,107,200	1,122,079
Savings accounts	1,544,708	1,325,445
Time Deposits, Fair Value	1,290,412	1,409,911
Other	1,290	1,269
Total deposits	5,347,642	5,128,000
Short-term borrowings	394,242	276,980
Long-term debt	738,105	786,602
Subordinated debentures/notes	45,000	45,000
Carrying value | Fair value swap
Derivative financial instruments:
Swaps, fair value	226	226
Level 1
Financial assets:
Cash and money market instruments	149,459	237,699
Investment securities	1,941	1,922
Derivative Asset	0	0
Loans receivable, net	0	0
Financial liabilities:
Non-interest bearing checking accounts	1,404,032	1,269,296
Interest bearing transaction accounts	1,107,200	1,122,079
Savings accounts	1,544,708	1,325,445
Other	1,290	1,269
Total deposits	4,057,230	3,718,089
Level 2
Financial assets:
Investment securities	1,584,984	1,442,708
Mortgage loans held for sale	7,306	5,264
Derivative Asset	165	70
Loans receivable, net	7,471	5,334
Financial liabilities:
Time Deposits, Fair Value	1,295,329	1,422,885
Total deposits	1,295,329	1,422,885
Short-term borrowings	394,242	276,980
Long-term debt	771,420	827,500
Subordinated debentures/notes	41,596	42,995
Level 3
Financial assets:
Investment securities	769	775
Impaired loans carried at fair value	9,496	16,963
Derivative Asset	0	0
Other loans	4,997,318	4,757,461
Loans receivable, net	5,006,814	4,774,424
Financial liabilities:
Total deposits	0	0
Level 3 | Fair value swap
Derivative financial instruments:
Swaps, fair value	226	226
Available-for-sale Securities [Member]
Financial assets:
Accrued interest receivable	4,436	4,048
Available-for-sale Securities [Member] | Carrying value
Financial assets:
Accrued interest receivable	4,436	4,048
Available-for-sale Securities [Member] | Level 2
Financial assets:
Accrued interest receivable	4,436	4,048
Loans
Financial assets:
Accrued interest receivable	14,239	13,629
Loans | Carrying value
Financial assets:
Accrued interest receivable	14,239	13,629
Loans | Level 3
Financial assets:
Accrued interest receivable	14,239	13,629
Deposits
Financial liabilities:
Accrued interest payable	987	1,125
Deposits | Carrying value
Financial liabilities:
Accrued interest payable	987	1,125
Deposits | Level 1
Financial liabilities:
Accrued interest payable	66	14
Deposits | Level 2
Financial liabilities:
Accrued interest payable	921	1,111
Borrowings
Financial liabilities:
Accrued interest payable	1,351	1,426
Borrowings | Carrying value
Financial liabilities:
Accrued interest payable	1,351	1,426
Borrowings | Level 1
Financial liabilities:
Accrued interest payable	4	3
Borrowings | Level 2
Financial liabilities:
Accrued interest payable	$ 1,347	$ 1,423

XML

Fair Values Schedule of Impaired Financing Receivables (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Book Value Of Impaired Loans Carried At Fair Value	$ 11,783	$ 19,643
Partial Charge-Offs On Impaired Loans carried at Fair Value	10,512	19,731
Impaired Financing Receivable, Related Allowance	4,191	3,660
Impaired loans carried at fair value	9,496	16,963
Impaired Financing Receivable, loans not held at Fair Value, Recorded Investment	68,881	54,069
Partial Charge-offs on Impaired Loans carried at Cost	18,193	12,749
impaired Financing Receivable, loans not held at Fair Value, Carrying Amount	66,977	53,089
Recorded investment	80,664	73,712	$ 112,315
Partial charge-offs on impaired loans	28,705	32,480
Individually evaluated for impairment	4,191	3,660
Impaired Financing Receivable, Carrying Value	76,473	70,052
Financing Receivable, not collateral dependent [Domain]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance	1,904	980
Commercial Receivables, excluding Commercial, Financial, and Agricultural [Domain]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance	$ 2,287	$ 2,680

XML

Capital Ratios - Capital Ratios for Park and Each Subsidiary (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Park National Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 Risk-Based Capital	9.83%	10.13%
Tier One Risk Based Capital Required for Capital Adequacy	$ 310,560	$ 191,817
Common Equity Tier 1	9.83%
Common Equity Tier 1 Capital Required For Capital Adequacy	$ 232,920
Total Risk-Based	11.37%	11.74%
Capital Required for Capital Adequacy	$ 414,079	$ 383,634
Leverage Capital Required For Capital Adequacy To Average Total Assets	4.00%	4.00%
Common Equity Tier 1 Capital	$ 508,763
Leverage Capital Required To Be Well Capitalized	$ 360,183	$ 349,013
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	4.00%
Leverage Capital	$ 508,763	$ 485,943
Tier One Risk Based Capital Required to be Well Capitalized	$ 414,079	$ 287,725
Common Equity Tier 1 Capital Required For Capital Adequacy To Average Total Assets	4.50%
Common Equity Tier 1 Capital Required To Be Well Capitalized	$ 336,439
Leverage	7.06%	6.96%
Leverage Capital Required For Capital Adequacy	$ 288,147	$ 279,210
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Capital Required to be Well Capitalized	$ 517,599	$ 479,542
Leverage Capital Required To Be Well Capitalized To Average Total Assets	5.00%	5.00%
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	6.00%
Tier One Risk Based Capital	$ 508,763	$ 485,943
Common Equity Tier 1 Capital Required To Be Well Capitalized To Average Total Assets	6.50%
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Risk Based Capital	$ 588,467	$ 563,188
Park
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 Risk-Based Capital	12.82%	13.39%
Tier One Risk Based Capital Required for Capital Adequacy	$ 314,310	$ 195,411
Common Equity Tier 1	12.54%
Common Equity Tier 1 Capital Required For Capital Adequacy	$ 235,732
Total Risk-Based	14.49%	15.14%
Capital Required for Capital Adequacy	$ 419,080	$ 390,822
Leverage Capital Required For Capital Adequacy To Average Total Assets	4.00%	4.00%
Common Equity Tier 1 Capital	$ 656,664
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	4.00%
Leverage Capital	$ 671,664	$ 654,339
Common Equity Tier 1 Capital Required For Capital Adequacy To Average Total Assets	4.50%
Leverage	9.22%	9.25%
Leverage Capital Required For Capital Adequacy	$ 291,449	$ 282,992
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Leverage Capital Required For Capital Adequacy plus capital conservation buffer To Average Total Assets	4.00%
Tier One Risk Based Capital Required For Capital Adequacy plus capital conservation buffer To Average Total Assets	8.50%
Common Equity Tier 1 Capital Required For Capital Adequacy plus capital conservation buffer To Average Total Assets	7.00%
Capital Required For Capital Adequacy plus capital conservation buffer To Average Total Assets	10.50%
Tier One Risk Based Capital	$ 671,664	$ 654,339
Risk Based Capital	$ 758,988	$ 739,517

XML

Segment Information - Schedule of Operating Results by Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Other Noninterest Expense	$ 179,267	$ 180,267	$ 174,200
Net interest income (loss)	227,632	225,044	221,025
Depreciation, Amortization and Accretion, Net	7,347	7,243	7,315
Provision for (recovery of) loan losses	4,990	(7,333)	3,415
Other income (loss)	77,551	75,549	73,277
Gain (Loss) on Sale of Investments	0	(1,158)	0
Other expense	186,614	187,510	181,515
Income (loss) before taxes	113,579	120,416	109,372
Income taxes (benefit)	32,567	36,459	32,503
Net income	81,012	83,957	76,869
Assets	7,311,354	7,001,199	6,636,423
Loans	5,068,085	4,829,682	4,620,505
Deposits	5,347,642	5,128,000	4,789,994
Totals For Reportable Segments [Member]
Segment Reporting Information [Line Items]
Other Noninterest Expense	169,295	172,267	166,680
Net interest income (loss)	227,393	227,056	218,197
Depreciation, Amortization and Accretion, Net	7,347	7,243	7,315
Income taxes (benefit)	37,238	41,246	35,329
Assets	7,299,098	6,994,456	6,642,070
Deposits	5,451,920	5,228,649	4,903,564
PNB
Segment Reporting Information [Line Items]
Net interest income (loss)	220,879	218,641	210,781
Provision for (recovery of) loan losses	7,665	3,517	14,039
Other income (loss)	75,188	69,384	70,841
Other expense	167,476	163,641	158,651
Income (loss) before taxes	120,926	120,867	108,932
Income taxes (benefit)	36,581	37,960	33,696
Net income	84,345	82,907	75,236
Assets	7,229,764	6,910,386	6,522,174
Loans	5,029,072	4,781,761	4,559,406
Deposits	5,447,293	5,222,766	4,896,405
GFSC
Segment Reporting Information [Line Items]
Net interest income (loss)	6,588	7,457	8,741
Provision for (recovery of) loan losses	1,415	1,544	1,175
Other income (loss)	2	(1)	11
Other expense	2,984	4,103	3,133
Income (loss) before taxes	2,191	1,809	4,444
Income taxes (benefit)	768	634	1,556
Net income	1,423	1,175	2,888
Assets	35,793	40,308	47,115
Loans	35,469	40,645	47,228
Deposits	4,627	5,883	7,159
SEPH
Segment Reporting Information [Line Items]
Net interest income (loss)	(74)	958	(1,325)
Provision for (recovery of) loan losses	(4,090)	(12,394)	(11,799)
Other income (loss)	1,848	5,991	1,956
Other expense	6,182	11,766	12,211
Income (loss) before taxes	(318)	7,577	219
Income taxes (benefit)	(111)	2,652	77
Net income	(207)	4,925	142
Assets	33,541	43,762	72,781
Loans	15,153	23,956	38,014
Deposits	0	0	0
All Other
Segment Reporting Information [Line Items]
Net interest income (loss)	239	(2,012)	2,828
Provision for (recovery of) loan losses	0	0	0
Other income (loss)	513	175	469
Other expense	9,972	8,000	7,520
Income (loss) before taxes	(9,220)	(9,837)	(4,223)
Income taxes (benefit)	(4,671)	(4,787)	(2,826)
Net income	(4,549)	(5,050)	(1,397)
Assets	12,256	6,743	(5,647)
Loans	(11,609)	(16,680)	(24,143)
Deposits	(104,278)	(100,649)	(113,570)
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Other Noninterest Expense	0	0	0
Net interest income (loss)	2,561	3,708	8,659
Depreciation, Amortization and Accretion, Net	0	0	0
Income taxes (benefit)	0	0	0
Assets	(13,557)	(18,556)	(30,369)
Deposits	(104,278)	(100,649)	(113,570)
Parent Co Gfsc Totals Not Eliminated [Member]
Segment Reporting Information [Line Items]
Other Noninterest Expense	9,972	8,000	7,520
Net interest income (loss)	(2,322)	(5,720)	(5,831)
Depreciation, Amortization and Accretion, Net	0	0	0
Income taxes (benefit)	(4,671)	(4,787)	(2,826)
Assets	25,813	25,299	24,722
Deposits	$ 0	$ 0	$ 0

XML

Parent Company Statements - Narrative (Details) - Parent Company - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income taxes	$ 4,130	$ 5,810	$ 2,540
Undistributed earnings, restricted from transfer as dividends	$ 199,400	$ 196,500

XML

Parent Company Statements - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets:
Other assets	$ 506,425	$ 487,382
Total assets	7,311,354	7,001,199	$ 6,636,423
Liabilities:
Subordinated notes	45,000	45,000
Other liabilities	73,010	68,076
Total liabilities	6,597,999	6,304,658
Total liabilities and shareholders’ equity	7,311,354	7,001,199
Parent Company
Assets:
Cash	102,416	98,671	$ 106,942	$ 98,726
Investment in subsidiaries	613,383	599,855
Debentures receivable from PNB	25,000	25,000
Other investments	2,341	2,344
Other assets	23,443	23,260
Total assets	766,583	749,130
Liabilities:
Subordinated notes	45,000	45,000
Other liabilities	8,228	7,589
Total liabilities	53,228	52,589
Total shareholders’ equity	713,355	696,541
Total liabilities and shareholders’ equity	$ 766,583	$ 749,130

XML

Parent Company Statements - Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income:
Interest and dividends	$ 265,074	$ 265,143	$ 262,947
Expense:
Federal income tax benefit	(32,567)	(36,459)	(32,503)
Net income	81,012	83,957	76,869
Other Comprehensive Income (Loss), Net of Tax	(2,035)	21,811	(17,901)
Parent Company
Income:
Dividends from subsidiaries	60,000	60,000	15,000
Interest and dividends	2,561	3,708	8,659
Other	560	262	531
Total income	63,121	63,970	24,190
Expense:
Other, net	12,341	13,807	13,413
Total expense	12,341	13,807	13,413
Income before federal taxes and equity in undistributed income of subsidiaries	50,780	50,163	10,777
Federal income tax benefit	4,671	4,787	2,826
Income before equity in undistributed income of subsidiaries	55,451	54,950	13,603
Equity in undistributed income of subsidiaries	25,561	29,007	63,266
Net income	81,012	83,957	76,869
Other Comprehensive Income (Loss), Net of Tax	(2,035)	21,811	(17,901)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 78,977	$ 105,768	$ 58,968

XML

Parent Company Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income	$ 81,012	$ 83,957	$ 76,869
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based Compensation	1,828	1,259	850
Increase (decrease) in other liabilities	1,173	5,689	(5,324)
Net cash provided by operating activities	88,702	71,743	121,288
Investing activities:
Net cash used in investing activities	(395,468)	(229,580)	(112,642)
Financing activities
Repayment of subordinated notes	0	(35,250)	0
Treasury Stock, Value, Acquired, Cost Method	(6,058)	(2,355)	(843)
Net cash provided by (used in) financing activities	218,526	248,506	(62,921)
Increase (decrease) in cash and cash equivalents	(88,240)	90,669	(54,275)
Parent Company
Net income	81,012	83,957	76,869
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed income of subsidiaries	(25,561)	(29,007)	(63,266)
Decrease in other assets	(182)	(1,292)	(2,215)
Increase (decrease) in other liabilities	485	298	(2,187)
Net cash provided by operating activities	57,582	55,215	10,051
Investing activities:
Capital contribution in subsidiary	0	0	(45,000)
Repayment of investments in and advances to subsidiaries	10,000	32,000	101,960
Net cash used in investing activities	10,000	32,000	56,960
Financing activities
Cash dividends paid	(57,776)	(57,876)	(57,949)
Cash payment for fractional shares	(3)	(5)	(3)
Net cash provided by (used in) financing activities	(63,837)	(95,486)	(58,795)
Increase (decrease) in cash and cash equivalents	3,745	(8,271)	8,216
Cash at beginning of year	98,671	106,942	98,726
Cash at end of year	102,416	98,671	106,942
Parent Company
Adjustments to reconcile net income to net cash provided by operating activities:
Compensation expense for issuance of treasury shares to directors	963	801	850
Share-based Compensation	$ 865	$ 458	$ 0