Segment Information

9 Months Ended

Sep. 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 September 30, 2019
(In thousands)	PNB		GFSC		All Other			Total
Net interest income (expense)	$	76,180	$	1,244	$	(323	)	$	77,101
Provision for (recovery of) loan losses	2,320		143		(496		)	1,967
Other income	24,842		59		3,235			28,136
Other expense	60,943		902		3,893			65,738
Income (loss) before income taxes	$	37,759	$	258	$	(485	)	$	37,532
Income tax expense (benefit)	6,811		55		(480		)	6,386
Net income (loss)	$	30,948	$	203	$	(5	)	$	31,146

Assets (as of September 30, 2019)	$	8,673,919	$	27,481	$	22,210		$	8,723,610



	Operating Results for the three months ended September 30, 2018
(In thousands)	PNB		GFSC		All Other			Total
Net interest income	$	66,195	$	1,252	$	229		$	67,676
Provision for (recovery of) loan losses	2,935		183		(178		)	2,940
Other income	22,559		63		1,442			24,064
Other expense	51,982		810		6,524			59,316
Income (loss) before income taxes	$	33,837	$	322	$	(4,675	)	$	29,484
Income tax expense (benefit)	5,981		68		(1,327		)	4,722
Net income (loss)	$	27,856	$	254	$	(3,348	)	$	24,762

Assets (as of September 30, 2018)	$	7,707,474	$	28,551	$	20,466		$	7,756,491



	Operating Results for the nine months ended September 30, 2019
(In thousands)	PNB		GFSC		All Other			Total
Net interest income (expense)	$	217,355	$	3,786	$	(413	)	$	220,728
Provision for (recovery of) loan losses	6,563		458		(637		)	6,384
Other income	68,224		142		4,603			72,969
Other expense	172,931		2,638		17,188			192,757
Income (loss) before income taxes	$	106,085	$	832	$	(12,361	)	$	94,556
Income tax expense (benefit)	19,063		179		(3,450		)	15,792
Net income (loss)	$	87,022	$	653	$	(8,911	)	$	78,764



	Operating Results for the nine months ended September 30, 2018
(In thousands)	PNB		GFSC		All Other			Total
Net interest income	$	190,319	$	3,818	$	3,131		$	197,268
Provision for (recovery of) loan losses	4,491		773		(678		)	4,586
Other income	64,544		135		9,530			74,209
Other expense	149,152		2,412		14,594			166,158
Income (loss) before income taxes	$	101,220	$	768	$	(1,255	)	$	100,733
Income tax expense (benefit)	17,822		162		(1,377		)	16,607
Net income	$	83,398	$	606	$	122		$	84,126

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