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), 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 September 30, 2018
(In thousands)	PNB		GFSC		SEPH			All Other			Total
Net interest income	$	66,195	$	1,252	$	119		$	110		$	67,676
Provision for (recovery of) loan losses	2,935		183		(178		)	—			2,940
Other income (loss)	22,559		63		(99		)	1,541			24,064
Other expense	51,982		810		563			5,961			59,316
Income (loss) before income taxes	$	33,837	$	322	$	(365	)	$	(4,310	)	$	29,484
Income tax expense (benefit)	5,981		68		(76		)	(1,251		)	4,722
Net income (loss)	$	27,856	$	254	$	(289	)	$	(3,059	)	$	24,762

Assets (as of September 30, 2018)	$	7,707,474	$	28,551	$	7,475		$	12,991		$	7,756,491



	Operating Results for the three months ended September 30, 2017
(In thousands)	PNB		GFSC		SEPH			All Other			Total
Net interest income	$	59,415	$	1,455	$	401		$	280		$	61,551
Provision for (recovery of) loan losses	3,820		609		(1,146		)	—			3,283
Other income	21,770		34		440			1,293			23,537
Other expense	47,390		750		1,025			2,094			51,259
Income (loss) before income taxes	$	29,975	$	130	$	962		$	(521	)	$	30,546
Income tax expense (benefit)	8,678		46		336			(626		)	8,434
Net income	$	21,297	$	84	$	626		$	105		$	22,112

Assets (as of September 30, 2017)	$	7,788,248	$	33,260	$	25,377		$	15,810		$	7,862,695



	Operating Results for the nine months ended September 30, 2018
(In thousands)	PNB		GFSC		SEPH			All Other			Total
Net interest income	$	190,319	$	3,818	$	2,612		$	519		$	197,268
Provision for (recovery of) loan losses	4,491		773		(678		)	—			4,586
Other income	64,544		135		3,559			5,971			74,209
Other expense	149,152		2,412		3,445			11,149			166,158
Income (loss) before income taxes	$	101,220	$	768	$	3,404		$	(4,659	)	$	100,733
Income tax expense (benefit)	17,822		162		715			(2,092		)	16,607
Net income (loss)	$	83,398	$	606	$	2,689		$	(2,567	)	$	84,126



	Operating Results for the nine months ended September 30, 2017
(In thousands)	PNB		GFSC		SEPH			All Other			Total
Net interest income	$	174,717	$	4,424	$	884		$	256		$	180,281
Provision for (recovery of) loan losses	9,114		1,419		(1,793		)	—			8,740
Other income	61,466		58		477			1,190			63,191
Other expense	137,876		2,343		3,097			6,407			149,723
Income (loss) before income taxes	$	89,193	$	720	$	57		$	(4,961	)	$	85,009
Income tax expense (benefit)	26,247		252		20			(2,921		)	23,598
Net income (loss)	$	62,946	$	468	$	37		$	(2,040	)	$	61,411

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