Segment Reporting

12 Months Ended

Dec. 31, 2019

The Corporation is a financial holding company headquartered in Newark, Ohio. The operating segments for the Corporation are PNB and GFSC. "All Other", which primarily consists of Park as the "Parent Company" and SEPH, is shown to reconcile the segment totals to the consolidated statements of income.

U.S. GAAP requires management 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 a company’s performance, better understand the potential for future cash flows, and make more informed judgments about the company as a whole. Park’s current operating segments are in line with U.S. GAAP 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, who is the chief operating decision-maker.


Operating results for the year ended December 31, 2019 (In thousands)
	PNB		GFSC		All Other		Total
Net interest income (expense)	$	293,130	$	5,013	$	(406)	$	297,737
Provision for (recovery of) loan losses	8,356		754		(2,939)		6,171
Other income	92,392		170		4,631		97,193
Other expense	237,433		3,478		23,077		263,988
Income (loss) before income taxes	139,733		951		(15,913)		124,771
Income tax expense (benefit)	26,133		189		(4,251)		22,071
Net income (loss)	$	113,600	$	762	$	(11,662)	$	102,700
Balances at December 31, 2019
Assets	$	8,521,537	$	27,593	$	9,247	$	8,558,377
Loans	6,481,644		28,143		(8,383)		6,501,404
Deposits	7,125,111		3,919		(76,418)		7,052,612


Operating results for the year ended December 31, 2018 (In thousands)
	PNB		GFSC		All Other		Total
Net interest income	$	258,547	$	5,048	$	3,303	$	266,898
Provision for (recovery of) loan losses	7,569		1,328		(952)		7,945
Other income	88,981		187		11,933		101,101
Other expense	206,843		3,245		18,667		228,755
Income (loss) before income taxes	133,116		662		(2,479)		131,299
Income tax expense (benefit)	23,644		141		(2,873)		20,912
Net income	$	109,472	$	521	$	394	$	110,387
Balances at December 31, 2018
Assets	$	7,753,848	$	31,388	$	19,072	$	7,804,308
Loans	5,671,173		32,664		(11,705)		5,692,132
Deposits	6,334,796		4,142		(78,078)		6,260,860


Operating results for the year ended December 31, 2017 (In thousands)
	PNB		GFSC		All Other		Total
Net interest income	$	235,243	$	5,839	$	2,677	$	243,759
Provision for (recovery of) loan losses	9,898		1,917		(3,258)		8,557
Other income	82,742		103		3,584		86,429
Other expense	185,891		3,099		14,172		203,162
Income (loss) before income taxes	122,196		926		(4,653)		118,469
Income tax expense (benefit)	34,881		666		(1,320)		34,227
Net income (loss)	$	87,315	$	260	$	(3,333)	$	84,242
Balances at December 31, 2017
Assets	$	7,467,851	$	32,077	$	37,692	$	7,537,620
Loans	5,339,255		33,385		(157)		5,372,483
Deposits	5,896,676		3,449		(82,799)		5,817,326

The operating results in the "All Other" column are used to reconcile the segment totals to the Consolidated Statements of Income. The reconciling amounts for consolidated total assets, loans and deposits consist of the elimination of intersegment borrowings, intersegment loans, intersegment deposits, and the assets of the Parent Company and SEPH which were not eliminated.

The following is a reconciliation of financial information for the reportable segments to the Corporation’s consolidated totals:


	2019
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	298,143	$	9,112	$	231,799	$	26,322	$	8,549,130	$	7,129,030
Elimination of intersegment items	1,250		—		—		—		(19,231)		(76,418)
All other totals - not eliminated	(1,656)		—		23,077		(4,251)		28,478		—
Totals	$	297,737	$	9,112	$	254,876	$	22,071	$	8,558,377	$	7,052,612


	2018
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	263,595	$	8,585	$	201,503	$	23,785	$	7,785,236	$	6,338,938
Elimination of intersegment items	1,275		—		—		—		(13,482)		(78,078)
All other totals - not eliminated	2,028		—		18,667		(2,873)		32,554		—
Totals	$	266,898	$	8,585	$	220,170	$	20,912	$	7,804,308	$	6,260,860


	2017
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes		Assets		Deposits
Totals for reportable segments	$	241,082	$	8,644	$	180,346	$	35,547	$	7,499,928	$	5,900,125
Elimination of intersegment items	1,500		—		—		—		(11,211)		(82,799)
All other totals - not eliminated	1,177		—		14,172		(1,320)		48,903		—
Totals	$	243,759	$	8,644	$	194,518	$	34,227	$	7,537,620	$	5,817,326