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 June 30, 2018
(In thousands)	PNB		GFSC		SEPH			All Other			Total
Net interest income	$	62,683	$	1,261	$	616		$	182		$	64,742
Provision for (recovery of) loan losses	1,623		87		(324		)	—			1,386
Other income	22,070		42		71			1,059			23,242
Other expense	48,169		842		857			2,666			52,534
Income (loss) before income taxes	$	34,961	$	374	$	154		$	(1,425	)	$	34,064
Federal income tax expense (benefit)	6,164		79		32			(452		)	5,823
Net income (loss)	$	28,797	$	295	$	122		$	(973	)	$	28,241

Assets (as of June 30, 2018)	$	7,404,498	$	29,232	$	7,786		$	20,640		$	7,462,156



	Operating Results for the three months ended June 30, 2017
(In thousands)	PNB		GFSC		SEPH			All Other			Total
Net interest income	$	57,822	$	1,491	$	282		$	183		$	59,778
Provision for (recovery of) loan losses	4,574		373		(366		)	—			4,581
Other income	20,582		8		8			101			20,699
Other expense	45,280		841		1,267			2,166			49,554
Income (loss) before income taxes	$	28,550	$	285	$	(611	)	$	(1,882	)	$	26,342
Federal income tax expense (benefit)	8,387		99		(213		)	(963		)	7,310
Net income (loss)	$	20,163	$	186	$	(398	)	$	(919	)	$	19,032

Assets (as of June 30, 2017)	$	7,754,898	$	33,860	$	24,595		$	18,739		$	7,832,092



	Operating Results for the six months ended June 30, 2018
(In thousands)	PNB		GFSC		SEPH			All Other			Total
Net interest income	$	124,124	$	2,566	$	2,493		$	409		$	129,592
Provision for (recovery of) loan losses	1,556		590		(500		)	—			1,646
Other income	41,985		72		3,658			4,430			50,145
Other expense	97,170		1,602		2,882			5,188			106,842
Income (loss) before income taxes	$	67,383	$	446	$	3,769		$	(349	)	$	71,249
Federal income tax expense (benefit)	11,841		94		791			(841		)	11,885
Net income	$	55,542	$	352	$	2,978		$	492		$	59,364



	Operating Results for the six months ended June 30, 2017
(In thousands)	PNB		GFSC		SEPH			All Other			Total
Net interest income	$	115,302	$	2,969	$	483		$	(24	)	$	118,730
Provision for (recovery of) loan losses	5,294		810		(647		)	—			5,457
Other income (loss)	39,696		24		37			(103		)	39,654
Other expense	90,486		1,593		2,072			4,313			98,464
Income (loss) before income taxes	$	59,218	$	590	$	(905	)	$	(4,440	)	$	54,463
Federal income tax expense (benefit)	17,569		206		(316		)	(2,295		)	15,164
Net income (loss)	$	41,649	$	384	$	(589	)	$	(2,145	)	$	39,299

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 and six-month periods ended June 30, 2018 and 2017. The reconciling amounts for consolidated total assets for the periods ended June 30, 2018 and 2017 consisted of the elimination of intersegment borrowings and the assets of the Parent Company which were not eliminated.