Segment Information

6 Months Ended

Jun. 30, 2019

The Corporation is a financial holding company headquartered in Newark, Ohio. The reportable segments for the Corporation are its chartered national bank subsidiary, PNB (headquartered in Newark, Ohio) and Guardian Financial Services Company. "All Other", which primarily consists of Park as the "Parent Company" and SE Property Holdings, LLC, is shown to reconcile the segment totals to the consolidated condensed statements of income.

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 two reportable segments, as: (i) discrete financial information is available for each reportable segment and (ii) the segments are aligned with internal reporting to Park’s Chief Executive Officer, who is the chief operating decision maker.



	Operating Results for the three months ended June 30, 2019
(In thousands)	PNB		GFSC		All Other			Total
Net interest income (expense)	$	74,893	$	1,217	$	(259	)	$	75,851
Provision for (recovery of) loan losses	1,803		170		(54		)	1,919
Other income	22,674		51		83			22,808
Other expense	60,014		891		9,287			70,192
Income (loss) before income taxes	$	35,750	$	207	$	(9,409	)	$	26,548
Income tax expense (benefit)	6,368		44		(2,027		)	4,385
Net income (loss)	$	29,382	$	163	$	(7,382	)	$	22,163

Assets (as of June 30, 2019)	$	8,607,583	$	29,222	$	20,648		$	8,657,453



	Operating Results for the three months ended June 30, 2018
(In thousands)	PNB		GFSC		All Other			Total
Net interest income	$	62,683	$	1,261	$	798		$	64,742
Provision for (recovery of) loan losses	1,623		87		(324		)	1,386
Other income	22,070		42		1,130			23,242
Other expense	48,169		842		3,523			52,534
Income (loss) before income taxes	$	34,961	$	374	$	(1,271	)	$	34,064
Income tax expense (benefit)	6,164		79		(420		)	5,823
Net income (loss)	$	28,797	$	295	$	(851	)	$	28,241

Assets (as of June 30, 2018)	$	7,404,498	$	29,232	$	28,426		$	7,462,156



	Operating Results for the six months ended June 30, 2019
(In thousands)	PNB		GFSC		All Other			Total
Net interest income (expense)	$	141,175	$	2,542	$	(90	)	$	143,627
Provision for (recovery of) loan losses	4,243		315		(141		)	4,417
Other income	43,382		83		1,368			44,833
Other expense	111,988		1,736		13,295			127,019
Income (loss) before income taxes	$	68,326	$	574	$	(11,876	)	$	57,024
Income tax expense (benefit)	12,252		124		(2,970		)	9,406
Net income (loss)	$	56,074	$	450	$	(8,906	)	$	47,618



	Operating Results for the six months ended June 30, 2018
(In thousands)	PNB		GFSC		All Other			Total
Net interest income	$	124,124	$	2,566	$	2,902		$	129,592
Provision for (recovery of) loan losses	1,556		590		(500		)	1,646
Other income	41,985		72		8,088			50,145
Other expense	97,170		1,602		8,070			106,842
Income before income taxes	$	67,383	$	446	$	3,420		$	71,249
Income tax expense (benefit)	11,841		94		(50		)	11,885
Net income	$	55,542	$	352	$	3,470		$	59,364

The operating results 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, 2019 and 2018. The reconciling amounts for consolidated total assets for the periods ended June 30, 2019 and 2018 consisted of the elimination of intersegment borrowings and the assets of the Parent Company and SEPH which were not eliminated.