Subsequent events

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Events

On April 1, 2019, CAB Financial Corporation, a South Carolina corporation (“CABF”), merged with and into Park National Corporation ("Park"), with Park continuing as the surviving entity pursuant to the Agreement and Plan of Merger and Reorganization, dated as of September 12, 2018, by and between Park and CABF. Immediately following the merger, Carolina Alliance Bank, a South Carolina state chartered bank and a wholly-owned subsidiary of CABF, was merged with and into PNB, with the PNB as the surviving bank.

As of March 31, 2019, CABF had $757.1 million in total assets, $590.8 million in total loans and leases, and $631.5 million in total deposits. The acquisition was valued at $126.9 million and resulted in Park issuing 1,037,205 Park common shares and paying $28.6 million in cash in exchange for the CABF common stock as merger consideration.

The assets and liabilities of CABF will be recorded on Park's consolidated balance sheet at their preliminary estimated fair values as of April 1, 2019, the acquisition date, and CABF's results of operations will be included in Park's consolidated statement of income from that date. The initial accounting and determination of the fair values of the assets acquired and liabilities assumed in the acquisition was incomplete at the time of the filing of Park's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 (the "March 31, 2019 Form 10-Q") due to the timing of the closing of the acquisition in relation to the deadline for the filing of Park's March 31, 2019 Form 10-Q. A more complete disclosure of the business combination is expected to be reported in Park's Quarterly Report on Form 10-Q for the quarterly period ending June 30, 2019.

For the three months ended March 31, 2019, Park recorded merger-related expenses of $0.2 million associated with the CABF acquisition.