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, The Park National Bank (headquartered in Newark, Ohio) (“PNB”), SE Property Holdings, LLC (“SEPH”), and Guardian Financial Services Company (“GFSC”).

Management is required 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 the company’s performance, better understand the potential for future cash flows, and make more informed judgments about the company as a whole. Park has three operating segments, 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 three months ended March 31, 2018
(In thousands)	PNB			GFSC		SEPH			All Other			Total
Net interest income	$	61,441		$	1,305	$	1,877		$	227		$	64,850
(Recovery of) provision for loan losses	(67		)	503		(176		)	—			260
Other income	19,915			30		3,587			3,371			26,903
Other expense	49,001			760		2,025			2,522			54,308
Income before income taxes	$	32,422		$	72	$	3,615		$	1,076		$	37,185
Federal income tax expense (benefit)	5,677			15		759			(389		)	6,062
Net income	$	26,745		$	57	$	2,856		$	1,465		$	31,123

Assets (as of March 31, 2018)	$	7,455,518		$	30,553	$	27,726		$	5,173		$	7,518,970



	Operating Results for the three months ended March 31, 2017
(In thousands)	PNB		GFSC		SEPH			All Other			Total
Net interest income	$	57,480	$	1,478	$	201		$	(207	)	$	58,952
Provision for (recovery of) loan losses	720		437		(281		)	—			876
Other income (loss)	19,114		16		29			(204		)	18,955
Other expense	45,206		752		805			2,147			48,910
Income (loss) before income taxes	$	30,668	$	305	$	(294	)	$	(2,558	)	$	28,121
Federal income tax expense (benefit)	9,182		107		(103		)	(1,332		)	7,854
Net income (loss)	$	21,486	$	198	$	(191	)	$	(1,226	)	$	20,267

Assets (as of March 31, 2017)	$	7,667,288	$	34,574	$	24,727		$	18,101		$	7,744,690

The operating results of the Parent Company in the “All Other” column are used to reconcile the segment totals to the consolidated condensed statements of income for the three-month periods ended March 31, 2018 and 2017. The reconciling amounts for consolidated total assets for the periods ended March 31, 2018 and 2017 consisted of the elimination of intersegment borrowings and the assets of the Parent Company which were not eliminated.