8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 24, 2022

PARK NATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	1-13006	31-1179518
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

50 North Third Street,	P.O. Box 3500,	Newark,	Ohio	43058-3500
(Address of principal executive offices) (Zip Code)

(740)	349-8451
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares, without par value	PRK	NYSE American

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

    Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02 - Results of Operations and Financial Condition

On October 24, 2022, Park National Corporation (“Park”) issued a news release (the “Financial Results News Release”) announcing financial results for the three months and the nine months ended September 30, 2022. A copy of the Financial Results News Release is included as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.

Non-GAAP Financial Measures

Item 7.01 of this Current Report on Form 8-K as well as the Financial Results News Release contain non-GAAP (generally accepted accounting principles in the United States or "U.S. GAAP") financial measures where management believes them to be helpful in understanding Park’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable U.S. GAAP financial measures, as well as the reconciliation to the comparable U.S. GAAP financial measures, can be found in the Financial Results News Release.

Items Impacting Comparability of Period Results

From time to time, revenue, expenses and/or taxes are impacted by items judged by management of Park to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by management of Park at that time to be infrequent or short-term in nature. Most often, these items impacting comparability of period results are due to merger and acquisition activities and revenue and expenses related to former Vision Bank loan relationships. In other cases, they may result from management's decisions associated with significant corporate actions outside of the ordinary course of business.

Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in market and economic environment conditions, as a general rule volatility alone does not result in the inclusion of an item as one impacting comparability of period results. For example, changes in the provision for / (recovery of) credit losses (aside from those related to former Vision Bank loan relationships), gains (losses) on equity securities, net, and asset valuation adjustments, reflect ordinary banking activities and are, therefore, typically excluded from consideration as items impacting comparability of period results.

Management believes the disclosure of items impacting comparability of period results provides a better understanding of Park's performance and trends and allows management to ascertain which of such items, if any, to include or exclude from an analysis of Park's performance; i.e., within the context of determining how that performance differed from expectations, as well as how, if at all, to adjust estimates of future performance taking such items into account.

Items impacting comparability of the results of particular periods are not intended to be a complete list of items that may materially impact current or future period performance.

Non-GAAP Financial Measures

Park's management uses certain non-GAAP financial measures to evaluate Park's performance. Specifically, management reviews the return on average tangible equity, the return on average tangible assets, the tangible equity to tangible assets ratio, the tangible book value per share and pre-tax, pre-provision net income.

Management has included in the Financial Results News Release information relating to the annualized return on average tangible equity, the annualized return on average tangible assets, the tangible equity to tangible assets ratio, tangible book value per share and pre-tax, pre-provision net income for the three months ended and at September 30, 2022, June 30, 2022 and September 30, 2021 and for the nine months ended and at September 30, 2022 and September 30, 2021. For the purpose of calculating the annualized return on average tangible equity, a non-GAAP financial measure, net income for each period is divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating the annualized return on average tangible assets, a non-GAAP financial measure, net income for each period is divided by average tangible assets during the period. Average tangible assets equals average assets during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating the tangible equity to tangible assets ratio, a non-GAAP financial measure, tangible equity is divided by tangible assets. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at period end. Tangible assets equal total assets less goodwill and other intangible assets, in each case at period end. For the purpose of calculating the tangible book value per share, a non-GAAP financial measure, tangible equity is divided by the number of common shares outstanding, in each case at period end. For the purpose of calculating pre-tax, pre-provision net income, a non-GAAP financial measure, income taxes and the provision for (recovery of) credit losses are added back to net income, in each case during the applicable period.

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Management believes that the disclosure of the annualized return on average tangible equity, the annualized return on average tangible assets, the tangible equity to tangible assets ratio, tangible book value per share and pre-tax, pre-provision net income presents additional information to the reader of the consolidated financial statements, which, when read in conjunction with the consolidated financial statements prepared in accordance with U.S. GAAP, assists in analyzing Park's operating performance, ensures comparability of operating performance from period to period, and facilitates comparisons with the performance of Park's peer financial holding companies and bank holding companies, while eliminating certain non-operational effects of acquisitions. In the Financial Results News Release, Park has provided a reconciliation of average tangible equity to average shareholders' equity, average tangible assets to average assets, tangible equity to total shareholders' equity, tangible assets to total assets, and pre-tax, pre-provision net income to net income solely for the purpose of complying with SEC Regulation G and not as an indication that the annualized return on average tangible equity, the annualized return on average tangible assets, the tangible equity to tangible assets ratio, tangible book value per share and pre-tax, pre-provision net income are substitutes for the annualized return on average equity, the annualized return on average assets, the total shareholders' equity to total assets ratio, book value per share and net income, respectively, as determined in accordance with U.S. GAAP.

FTE (fully taxable equivalent) Financial Measures

Interest income, yields, and ratios on a FTE basis are considered non-GAAP financial measures. Management believes net interest income on a FTE basis provides an insightful picture of the interest margin for comparison purposes. The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The FTE basis assumes a corporate federal statutory tax rate of 21 percent. In the Financial Results News Release, Park has provided a reconciliation of FTE interest income solely for the purpose of complying with SEC Regulation G and not as an indication that FTE interest income, yields and ratios are substitutes for interest income, yields and ratios, as determined in accordance with U.S. GAAP.

Paycheck Protection Program ("PPP") Loans

Park originated $764.7 million in loans as part of the PPP. These loans are not typical of Park's loan portfolio in that they are part of a specific government program to support businesses during the COVID-19 pandemic and are 100% guaranteed by the Small Business Administration ("SBA"). As such, management considers growth in the loan portfolio excluding PPP loans, the total allowance for credit losses to total loans ratio (excluding PPP loans), and general reserve on collectively evaluated loans as a percentage of total collectively evaluated loans (excluding PPP loans) in addition to the related U.S. GAAP metrics which are not adjusted for PPP loans.

Item 7.01 - Regulation FD Disclosure

COVID-19 Considerations

During 2022 and 2021, Park provided calamity pay and special bonuses to certain associates related to the COVID-19 pandemic. The cost of the calamity pay and special bonuses was $747,000 and $1.5 million for the nine months ended September 30, 2022 and 2021, respectively, and is included within salaries expense. There were no calamity pay and special bonuses paid during either of the three months ended September 30, 2022 and 2021.

Paycheck Protection Program: During 2020 and 2021, Park approved and funded 7,701 loans totaling $764.7 million as part of the PPP. For its assistance in making and retaining these loans, Park received an aggregate of $33.1 million in fees from the SBA, of which $2.9 million and $14.0 million were recognized within loan interest income during the nine months ended September 30, 2022 and 2021, respectively. At September 30, 2022, the remaining balance of PPP loans was $5.7 million.

Loan Modifications: During the COVID-19 pandemic, Park has worked with borrowers and provided modifications in the form of either interest only deferral or principal and interest deferral, in each case, for initial periods of up to 90 days. As necessary, Park made available a second 90-day interest only deferral or principal and interest deferral bringing the total potential deferral period to six months. Modifications were structured in a manner to best address each individual customer's then current situation. A majority of these modifications were excluded from the troubled debt restructuring ("TDR") classification under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators. The modified loans were considered current and continued to accrue interest during the deferral period.

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Financial Results by Segment

The table below reflects the net income (loss) by segment for the first, second and third quarters of 2022, for the first nine months of each of 2022 and 2021 (the nine months ended September 30) and for the years ended December 31, 2021 and 2020. Park's segments include The Park National Bank ("PNB") and "All Other" which primarily consists of Park as the "Parent Company", Guardian Financial Services Company ("GFSC") and SE Property Holdings, LLC ("SEPH").

(In thousands)	Q3 2022		Q2 2022		Q1 2022		Nine months YTD 2022		Nine months YTD 2021		2021		2020
PNB	$	31,515	$	34,940	$	41,468	$	107,923	$	122,469	$	159,461	$	123,730
All Other	10,553		(616)		(2,593)		7,344		(5,072)		(5,516)		4,193
Total Park	$	42,068	$	34,324	$	38,875	$	115,267	$	117,397	$	153,945	$	127,923

Highlights from the three month and nine month periods ended September 30, 2022 and 2021 include:

•Net income for the nine months ended September 30, 2022 of $115.3 million represented a $2.1 million, or 1.8%, decrease compared to $117.4 million for the nine months ended September 30, 2021.

•Pre-tax, pre-provision net income for the nine months ended September 30, 2022 of $141.7 million represented a $5.5 million, or 4.0%, increase compared to $136.2 million for the nine months ended September 30, 2021.

•During the three months and the nine months ended September 20, 2022, Park recorded interest income of $361,000 and $3.0 million, respectively, related to PPP loans, compared to $4.6 million and $15.5 million for the three months and the nine months ended September 30, 2021, respectively.

•Recognized a $5.6 million gain on the sale of OREO, net, during the three months and the nine months ended September 30, 2022 related to former Vision Bank relationships. There was no gain on the sale of OREO, net, related to former Vision Bank relationships during the three months and the nine months ended September 30, 2021.

•Recognized a $12.0 million OREO valuation markup during the three months and the nine months ended September 30, 2022 related to the foreclosure and subsequent sale of a property collateralizing a former Vision Bank relationship. There was no OREO valuation markup related to former Vision Bank relationships during the three months and the nine months ended September 30, 2021.

•During the three months and the nine months ended September 30, 2022, Park recorded income of $1.2 million as a result of an annual Visa incentive, compared to $1.1 million during the three months and the nine months ended September 30, 2021.

•During the three months and the nine months ended September 30, 2022, Park paid $1.8 million in one-time bonuses and accrued an additional $1.5 million for future one-time bonuses for additional associates. There were no similar one-time bonuses paid or accrued during the three months or the nine months ended September 30, 2021.

•During the three months and the nine months ended September 30, 2022, Park incurred expenses of $1.3 million and $1.7 million, respectively, in direct expenses related to the collection of payments on former Vision Bank loan relationships, compared to $254,000 and $661,000 for the three months and the nine months ended September 30, 2021, respectively.

•During the three months and the nine months ended September 30, 2022, Park contributed $4.0 million to its charitable foundation. There was no contribution made by Park to its charitable foundation during the three months ended September 20, 2021 and a $4.0 million contribution made by Park to its charitable foundation during the nine months ended September 30, 2021.

•PNB loan growth (excluding PPP loans) of 2.20% and 4.45% for the three months and the nine months ended September 30, 2022, respectively, compared to declines (excluding PPP loans) of (0.13)% and (0.89%) for the three months and the nine months ended September 30, 2021, respectively.

•Continued good credit quality with annualized net charge-offs as a percentage of average loans of 0.04% and 0.02% for the three months and the nine months ended September 30, 2022, respectively, compared to annualized net recoveries as a percentage of average loans of 0.15% and 0.06% for the three months and the nine months ended September 30, 2021, respectively.

Net income for each of the nine months ended September 30, 2022 and 2021 included several items of income and expense that impacted comparability of period results. These items are detailed in the "Financial Reconciliations" section within the Financial Results News Release.

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The following discussion provides additional information regarding the PNB segment, followed by additional information regarding All Other.

The Park National Bank (PNB)

The table below reflects PNB's net income for the first, second and third quarters of 2022, for the first nine months of each of 2022 and 2021 (the nine months ended September 30) and for the years ended December 31, 2021 and 2020.

(In thousands)	Q3 2022		Q2 2022		Q1 2022		Nine months YTD 2022		Nine months YTD 2021		2021		2020
Net interest income	$	92,035	$	83,411	$	79,372	$	254,818	$	247,596	$	328,398	$	326,375
Provision for (recovery of) credit losses (1)	3,235		3,357		(4,547)		2,045		(3,670)		(8,554)		30,813
Other income	28,918		29,255		31,247		89,420		95,258		126,802		124,231
Other expense	79,070		66,214		64,216		209,500		195,361		266,678		268,938
Income before income taxes	$	38,648	$	43,095	$	50,950	$	132,693	$	151,163	$	197,076	$	150,855
Income tax expense	7,133		8,155		9,482		24,770		28,694		37,615		27,125
Net income	$	31,515	$	34,940	$	41,468	$	107,923	$	122,469	$	159,461	$	123,730

(1) Park adopted ASU 2016-13 effective January 1, 2021. The allowance for credit losses and the related provision for (recovery of) credit losses for all periods subsequent to the date of adoption were calculated utilizing this new guidance.

Net interest income of $254.8 million for the nine months ended September 30, 2022 represented a $7.2 million, or 2.9%, increase compared to $247.6 million for the nine months ended September 30, 2021. The increase was a result of a $12.0 million increase in interest income, partially offset by a $4.8 million increase in interest expense.

The $12.0 million increase in interest income was primarily due to a $15.2 million increase in investment income, partially offset by a $3.1 million decrease in interest income on loans. The $15.2 million increase in investment income was primarily the result of a $251.2 million increase in average investments, including money market investments, from $1.97 billion for the nine months ended September 30, 2021 to $2.22 billion for the nine months ended September 30, 2022. The increase was also the result of an increase in the yield on investments, which increased 78 basis points to 2.28% for the nine months ended September 30, 2022, compared to 1.50% for the nine months ended September 30, 2021. The decrease in interest income on loans was primarily the result of a $12.5 million decrease in interest income on PPP loans, which was partially offset by a $9.4 million increase in interest income on all other loans. Excluding PPP loans, there was a $123.2 million increase in average loans from $6.75 billion for the nine months ended September 30, 2021 to $6.87 billion for the nine months ended September 30, 2022. Additionally, there was a 11 basis point increase in the yield excluding PPP loans from 4.33% for the nine months ended September 30, 2021 to 4.44% for the nine months ended September 30, 2022.

The $4.8 million increase in interest expense was primarily due to a $4.6 million increase in interest expense on deposits, as well as a $189,000 increase in interest expense on borrowings. The increase in interest expense on deposits was the result of a $8.5 million increase in average on-balance sheet interest bearing deposits from $5.28 billion for the nine months ended September 30, 2021, to $5.29 billion for nine months ended September 30, 2022 as well as the result of an increase in the cost of deposits of 11 basis points, from 0.13% for the nine months ended September 30, 2021 to 0.24% for the nine months ended September 30, 2022. The increase in on-balance sheet interest bearing deposits was due to increases in transaction accounts, which were partially offset by decrease in both savings and time deposits. During the nine months ended September 30, 2022 and 2021, Park made the decision to continue its participation in a program to transfer deposits off balance sheet in order to manage growth of the balance sheet.

The provision for credit losses of $2.0 million for the nine months ended September 30, 2022 represented a difference of $5.7 million, compared to a recovery of credit losses of $3.7 million for the nine months ended September 30, 2021. Refer to the “Credit Metrics and Provision for (Recovery of) Credit Losses” section for additional details regarding the level of the provision for (recovery of) credit losses recognized in each period presented above.

Other income of $89.4 million for the nine months ended September 30, 2022 represented a decrease of $5.8 million, or 6.1%, compared to $95.3 million for the nine months ended September 30, 2021. The $5.8 million decrease was primarily related to a $11.0 million decrease in other service income, which was primarily due to declines in fee income from mortgage loan originations and mortgage servicing rights, partially offset by an increase in investor rate locks and mortgage loans held for

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sale. This decrease in other service income was partially offset by increases of (i) $2.9 million in other components of net periodic benefit income; (ii) $1.0 million in income from service charges on deposit accounts; (iii) $527,000 in gain on equity securities, net; (iv) $495,000 in gain on sale of loans recorded in miscellaneous income; and (v) $310,000 in income from fiduciary activities.

A summary of mortgage loan originations for each quarter of 2021, the year ended December 31, 2021 and the first three quarters of 2022 follows.

(In thousands)	Q1 2021			Q2 2021			Q3 2021			Q4 2021			2021			Q1 2022			Q2 2022			Q3 2022
Mortgage Loan Origination Volume
Sold	$	191,116		$	142,398		$	123,757		$	98,007		$	555,278		$	69,053		$	50,013		$	27,025
Portfolio	82,613			74,670			66,718			60,685			284,686			53,498			63,104			90,551
Construction	28,987			37,266			28,486			24,816			119,555			32,928			34,044			34,026
Service released	1,266			2,204			4,537			5,795			13,802			4,660			4,580			2,537
Total mortgage loan originations	$	303,982		$	256,538		$	223,498		$	189,303		$	973,321		$	160,139		$	151,741		$	154,139
Refinances as a % of Total Mortgage Loan Originations	71.1		%	50.0		%	44.8		%	44.2		%	54.2		%	41.7		%	25.9		%	24.0		%

Total mortgage loan originations decreased $318.0 million, or 40.6%, to $466.0 million for the nine months ended September 30, 2022 compared to $784.0 million for the nine months ended September 30, 2021.

The table below reflects PNB's other expense for the nine months ended September 30, 2022 and 2021.

(Dollars in thousands)	2022		2021		change		% change
Other expense:
Salaries	$	96,340	$	86,194	$	10,146	11.8	%
Employee benefits	30,221		30,451		(230)		(0.8)	%
Occupancy expense	9,699		9,440		259		2.7	%
Furniture and equipment expense	8,782		8,157		625		7.7	%
Data processing fees	23,844		22,426		1,418		6.3	%
Professional fees and services	16,020		14,332		1,688		11.8	%
Marketing	3,922		4,354		(432)		(9.9)	%
Insurance	3,875		4,080		(205)		(5.0)	%
Communication	2,894		2,650		244		9.2	%
State tax expense	3,332		2,986		346		11.6	%
Amortization of intangible assets	1,146		1,378		(232)		(16.8)	%
Foundation contributions	4,000		4,000		—		N.M.
Miscellaneous	5,425		4,913		512		10.4	%
Total other expense	$	209,500	$	195,361	$	14,139	7.2	%

Total other expense of $209.5 million for the nine months ended September 30, 2022 represented an increase of $14.1 million, or 7.2%, compared to $195.4 million for the nine months ended September 30, 2021. The increase in salaries expense was primarily related to increases in base salary expense, additional compensation expense and officer incentive compensation expense. The increase in furniture and equipment expense was primarily related to an increase in depreciation expense. The increase in data processing fees was primarily related to an increase in software data processing expense, partially offset by a decrease in debit card processing expense. The increase in professional fees and services expense was primarily due to increases in legal expense, recruiting fees and directors fees, which were partially offset by decreases in other credit related costs. The decrease in marketing expense was due to a decrease in advertising expenses. The increase in miscellaneous expense was due to increased supplies expense, training and travel related expenses and increases in non-loan related losses.

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The table below provides certain balance sheet information and financial ratios for PNB as of or for the nine months ended September 30, 2022 and 2021 and the year ended December 31, 2021.

(Dollars in thousands)	September 30, 2022		December 31, 2021		September 30, 2021		% change from 12/31/21		% change from 09/30/21
Loans	7,102,503		6,868,935		6,905,245		3.40	%	2.86	%
Loans less PPP loans (1)	7,096,788		6,794,515		6,773,762		4.45	%	4.77	%
Allowance for credit losses	83,947		83,111		87,992		1.01	%	(4.60)	%
Net loans	7,018,556		6,785,824		6,817,253		3.43	%	2.95	%
Investment securities	1,805,163		1,807,392		1,601,376		(0.12)	%	12.73	%
Total assets	9,816,644		9,538,217		10,012,868		2.92	%	(1.96)	%
Total deposits	8,606,272		8,157,720		8,603,171		5.50	%	0.04	%
Average assets (2)	9,934,726		9,814,766		9,819,220		1.22	%	1.18	%
Efficiency ratio (3)	60.40	%	58.21	%	56.63	%	3.76	%	6.66	%
Return on average assets (4)	1.45	%	1.62	%	1.67	%	(10.49)	%	(13.17)	%

(1) Excludes $5.7 million, $74.4 million and $131.5 million of PPP loans at September 30, 2022, December 31, 2021 and September 30, 2021.

(2) Average assets for the nine months ended September 30, 2022 and 2021 and for the year ended December 31, 2021.

(3) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustments were $2.6 million for the nine months ended September 30, 2022, $2.1 million for the nine months ended September 30, 2021 and $2.9 million for the year ended December 31, 2021.

(4) Annualized for the nine months ended September 30, 2022 and 2021.

Loans outstanding at September 30, 2022 were $7.10 billion, compared to $6.87 billion at December 31, 2021, an increase of $233.6 million. Loans outstanding at September 30, 2022 were $7.10 billion, compared to $6.91 billion at September 30, 2021, an increase of $197.3 million. Excluding $5.7 million and $74.4 million of PPP loans at September 30, 2022 and December 31, 2021, respectively, loans outstanding were $7.10 billion at September 30, 2022, compared to $6.79 billion at December 31, 2021, an increase of $302.3 million. Excluding $5.7 million and $131.5 million of PPP loans at September 30, 2022 and 2021, respectively, loans outstanding were $7.10 billion at September 30, 2022, compared to $6.77 billion at September 30, 2021, an increase of $323.0 million. The table below breaks out the change in loans outstanding, by loan type.

(Dollars in thousands)	September 30, 2022		December 31, 2021		September 30, 2021		change from 12/31/21		% change from 12/31/21		change from 09/30/21		% change from 09/30/21
Home equity	$	167,072	$	165,691	$	166,557	$	1,381	0.83	%	$	515	0.31	%
Installment	1,948,819		1,685,687		1,711,781		263,132		15.61	%	237,038		13.85	%
Real estate	1,171,079		1,142,991		1,165,045		28,088		2.46	%	6,034		0.52	%
Commercial (excluding PPP loans) (1)	3,807,976		3,797,673		3,725,362		10,303		0.27	%	82,614		2.22	%
PPP loans	5,715		74,420		131,483		(68,705)		(92.32)	%	(125,768)		(95.65)	%
Other	1,842		2,473		5,017		(631)		(25.52)	%	(3,175)		(63.28)	%
Total loans	$	7,102,503	$	6,868,935	$	6,905,245	$	233,568	3.40	%	$	197,258	2.86	%
Total loans (excluding PPP loans)	$	7,096,788	$	6,794,515	$	6,773,762	$	302,273	4.45	%	$	323,026	4.77	%

(1) Excludes $5.7 million of PPP loans at September 30, 2022, $74.4 million of PPP loans at December 31, 2021 and $131.5 million of PPP loans at September 30, 2021.

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Loans outstanding at September 30, 2022 were $7.10 billion, compared to $6.96 billion at June 30, 2022, an increase of $144.9 million. Excluding $5.7 million and $13.4 million of PPP loans at September 30, 2022 and June 30, 2022, respectively, loans outstanding were $7.10 billion at September 30, 2022, compared to $6.94 billion at June 30, 2022, an increase of $152.6 million.

(Dollars in thousands)	September 30, 2022		June 30, 2022		change from 06/30/22		% change from 06/30/22
Home equity	$	167,072	$	162,616	$	4,456	2.74	%
Installment	1,948,819		1,820,500		128,319		7.05	%
Real estate	1,171,079		1,134,763		36,316		3.20	%
Commercial (excluding PPP loans) (1)	3,807,976		3,821,686		(13,710)		(0.36)	%
PPP loans	5,715		13,428		(7,713)		(57.44)	%
Other	1,842		4,618		(2,776)		(60.11)	%
Total loans	$	7,102,503	$	6,957,611	$	144,892	2.08	%
Total loans (excluding PPP loans)	$	7,096,788	$	6,944,183	$	152,605	2.20	%

(1) Excludes $5.7 million of PPP loans at September 30, 2022 and $13.4 million of PPP loans at June 30, 2022.

PNB's allowance for credit losses increased by $836,000, or 1.0%, to $83.9 million at September 30, 2022, compared to $83.1 million at December 31, 2021. Net charge-offs were $1.2 million, or 0.02% of total average loans, for the nine months ended September 30, 2022 and were $640,000, or 0.01% of total average loans, for the year ended December 31, 2021. Refer to the “Credit Metrics and Provision for (Recovery of) Credit Losses” section for additional information regarding PNB's loan portfolio and the level of provision for (recovery of) credit losses recognized in each period presented.

Total deposits at September 30, 2022 were $8.61 billion, compared to $8.16 billion at December 31, 2021, an increase of $448.6 million, or 5.5%. Total deposits at September 30, 2022 were $8.61 billion, compared to $8.60 million at September 30, 2021, an increase of $3.1 million, or 0.04%. During the nine months ended September 30, 2022 and 2021 and the year ended December 31, 2021, Park made the decision to continue participation in two programs to transfer deposits off balance sheet in order to manage growth of the balance sheet, as deposits increased significantly throughout the COVID-19 pandemic. At September 30, 2022, December 31, 2021 and September 30, 2021, Park had $766.2 million, $983.1 million and $818.3 million, respectively, in deposits which were off-balance sheet. Total deposits would have increased $231.7 million, or 2.5%, compared to December 31, 2021 had the $766.2 million and $983.1 million in deposits remained on the balance sheet at the respective dates. Total deposits would have decreased $49.1 million, or 0.5%, compared to September 30, 2021 had the $766.2 million and $818.3 million in deposits remained on the balance sheet at the respective dates. The table below breaks out the change in deposit balances, by deposit type.

(Dollars in thousands)	September 30, 2022		December 31, 2021		September 30, 2021		change from 12/31/21		% change from 12/31/21		change from 09/30/21		% change from 09/30/21
Non-interest bearing deposits	$	3,435,307	$	3,320,413	$	3,221,859	$	114,894	3.5	%	$	213,448	6.6	%
Transaction accounts	1,989,340		1,502,876		1,620,375		486,464		32.4	%	368,965		22.8	%
Savings	2,568,404		2,622,771		3,035,734		(54,367)		(2.1)	%	(467,330)		(15.4)	%
Certificates of deposit	613,222		711,660		725,203		(98,438)		(13.8)	%	(111,981)		(15.4)	%
Total deposits	$	8,606,273	$	8,157,720	$	8,603,171	$	448,553	5.5	%	$	3,102	—	%
Off balance sheet deposits	766,184		983,053		818,340		(216,869)		(22.1)	%	(52,156)		(6.4)	%
Total deposits including off balance sheet deposits	$	9,372,457	$	9,140,773	$	9,421,511	$	231,684	2.5	%	$	(49,054)	(0.5)	%

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All Other

The table below reflects All Other net income (loss) for the first, second and third quarters of 2022, for the first nine months of each of 2022 and 2021 (the nine months ended September 30) and for the years ended December 31, 2021 and 2020.

(In thousands)	Q3 2022		Q2 2022		Q1 2022		Nine months YTD 2022		Nine months YTD 2021		2021		2020
Net interest (expense) income	$	(1,207)	$	528	$	(1,686)	$	(2,365)	$	(1,409)	$	1,495	$	1,255
Recovery of credit losses (1)	(45)		(366)		(58)		(469)		(3,253)		(3,362)		(18,759)
Other income	17,776		1,938		409		20,123		2,480		3,142		1,433
Other expense	3,833		3,834		3,157		10,824		12,393		16,840		17,657
Net income (loss) before income tax benefit	$	12,781	$	(1,002)	$	(4,376)	$	7,403	$	(8,069)	$	(8,841)	$	3,790
Income tax expense (benefit)	2,228		(386)		(1,783)		59		(2,997)		(3,325)		(403)
Net income (loss)	$	10,553	$	(616)	$	(2,593)	$	7,344	$	(5,072)	$	(5,516)	$	4,193

(1) Park adopted ASU 2016-13 effective January 1, 2021. The allowance for credit losses and the related recovery of credit losses for all periods subsequent to the date of adoption were calculated utilizing this new guidance.

The net interest (expense) income for All Other included, for all periods presented, interest income on subordinated debt investments in PNB, which were eliminated in the consolidated Park National Corporation totals, as well as interest income on GFSC loans and SEPH impaired loan relationships. The net interest (expense) income for All Other included interest expense on $175.0 million aggregate principal amount of 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030 issued by Park in August 2020 (the "Park Subordinated Notes").

Net interest (expense) income reflected net interest expense of $2.4 million for the nine months ended September 30, 2022, compared to $1.4 million for the nine months ended September 30, 2021. The change was largely the result of a decrease of $371,000 in loan interest income related to payment collections at SEPH, and a decrease of $791,000 in net interest income from GFSC, partially offset by a decrease in interest expense on borrowings of $196,000 mainly related to the Park Subordinated Notes.

Refer to the “Credit Metrics and Provision for (Recovery of) Credit Losses” section for additional information regarding the All Other loan portfolio and the level of recovery of credit losses recognized in each period presented.

All Other had other income of $20.1 million for the nine months ended September 30, 2022, compared to $2.5 million for the nine months ended September 30, 2021. The change was largely due to a $12.0 million increase in income from an OREO valuation markup, a $5.6 million increase in gain on the sale of OREO, net, a $771,000 increase in income from bank owned life insurance, mainly related to a death benefit payout, and a $222,000 increase in gain (loss) on equity securities, net, which went from a $361,000 gain for the nine months ended September 30, 2021 to a $584,000 gain for the nine months ended September 30, 2022. The forgoing increases were partially offset by $594,000 decrease in income due to an OREO devaluation and a $516,000 decrease in income related to partnership investments, which went from a $767,000 gain for the nine months ended September 30, 2021 to a $251,000 gain for the nine months ended September 30, 2022.

All Other had other expense of $10.8 million for the nine months ended September 30, 2022, compared to $12.4 million for the nine months ended September 30, 2021. The decrease was largely due to a $428,000 decrease in occupancy expense, a $316,000 decrease in salaries expense, a $305,000 decrease in professional fees and services, and a $278,000 decrease in other insurance expense.

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The table below provides certain balance sheet information for All Other as of or for the nine months ended September 30, 2022 and 2021 and the year ended December 31, 2021.

(Dollars in thousands)	September 30, 2022		December 31, 2021		September 30, 2021		% change from 12/31/21		% change from 9/30/21
Loans	$	743	$	2,187	$	3,172	(66.03)	%	(76.58)	%
Allowance for credit losses	14		86		137		(83.72)	%	(89.78)	%
Net loans	729		2,101		3,035		(65.30)	%	(75.98)	%
Total assets	38,403		22,037		21,150		74.27	%	81.57	%
Average assets (1)	30,137		32,692		34,237		(7.82)	%	(11.98)	%

(1) Average assets for the nine months ended September 30, 2022 and 2021, and the year ended December 31, 2021.

Park National Corporation

The table below reflects Park's consolidated net income for the first, second and third quarters of 2022, for the first nine months of each of 2022 and 2021 (the nine months ended September 30) and for the years ended December 31, 2021 and 2020.

(In thousands)	Q3 2022		Q2 2022		Q1 2022		Nine months YTD 2022		Nine months YTD 2021		2021		2020
Net interest income	$	90,828	$	83,939	$	77,686	$	252,453	$	246,187	$	329,893	$	327,630
Provision for (recovery of) credit losses (1)	3,190		2,991		(4,605)		1,576		(6,923)		(11,916)		12,054
Other income	46,694		31,193		31,656		109,543		97,738		129,944		125,664
Other expense	82,903		70,048		67,373		220,324		207,754		283,518		286,595
Income before income taxes	$	51,429	$	42,093	$	46,574	$	140,096	$	143,094	$	188,235	$	154,645
Income tax expense	9,361		7,769		7,699		24,829		25,697		34,290		26,722
Net income	$	42,068	$	34,324	$	38,875	$	115,267	$	117,397	$	153,945	$	127,923

(1) Park adopted ASU 2016-13 effective January 1, 2021. The allowance for credit losses and the related provision for (recovery of) credit losses for all periods subsequent to the date of adoption were calculated utilizing this new guidance.

Credit Metrics and Provision for (Recovery of) Credit Losses

On a consolidated basis, Park reported a provision for credit losses for the nine months ended September 30, 2022 of $1.6 million, compared to a recovery of credit losses of $6.9 million for the nine months ended September 30, 2021. The table below shows a breakdown of the provision for (recovery of) credit losses by reportable segment.

(In thousands)	Q3 2022		Q2 2022		Q1 2022		Nine months YTD 2022		Nine months YTD 2021		2021		2020
PNB	$	3,235	$	3,357	$	(4,547)	$	2,045	$	(3,670)	$	(8,554)	$	30,813
All Other	(45)		(366)		(58)		(469)		(3,253)		(3,362)		(18,759)
Total Park	$	3,190	$	2,991	$	(4,605)	$	1,576	$	(6,923)	$	(11,916)	$	12,054

PNB had net charge-offs of $1.2 million and All Other had net recoveries of $397,000 for the nine months ended September 30, 2022, resulting in net charge-offs of $812,000 for Park, on a consolidated basis. PNB had net recoveries of $638,000 and All Other had net recoveries of $2.7 million for the nine months ended September 30, 2021, resulting in net recoveries of $3.3 million for Park, on a consolidated basis.

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The table below provides additional information related to Park's allowance for credit losses as of September 30, 2022, December 31, 2021 and September 30, 2021.

(Dollars in thousands)	9/30/2022			12/31/2021			9/30/2021
Total allowance for credit losses	$	83,961		$	83,197		$	88,129
Allowance on purchased credit deteriorated ("PCD") loans	—			—			—
Specific reserves on individually evaluated loans	1,750			1,616			3,466
General reserves on collectively evaluated loans	$	82,211		$	81,581		$	84,663
Total loans	$	7,103,246		$	6,871,122		$	6,908,417
PCD loans	4,867			7,149			8,705
Individually evaluated loans	43,670			74,502			79,264
Collectively evaluated loans	$	7,054,709		$	6,789,471		$	6,820,448
Allowance for credit losses as a % of period end loans	1.18		%	1.21		%	1.28		%
Allowance for credit losses as a % of period end loans (excluding PPP loans) (1)	1.18		%	1.22		%	1.30		%
General reserve as a % of collectively evaluated loans	1.17		%	1.20		%	1.24		%
General reserve as a % of collectively evaluated loans (excluding PPP loans) (1)	1.17		%	1.21		%	1.27		%

(1) Excludes $5.7 million of PPP loans and $6,000 in related allowance at September 30, 2022; $74.4 million of PPP loans and $77,000 in related allowance at December 31, 2021; and $131.5 million of PPP loans and $136,000 in related allowance at September 30, 2021.

The allowance for credit losses of $84.0 million at September 30, 2022 represented a $764,000, or 0.9%, increase compared to $83.2 million at December 31, 2021. The increase was largely due to a $630,000 increase in general reserves, taking into consideration changing economic forecasts while balancing the ongoing risks associated with the COVID-19 pandemic, inflation and other economic risks.

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SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Park cautions that any forward-looking statements contained in this Current Report on Form 8-K or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.

Risks and uncertainties that could cause actual results to differ materially include, without limitation:

•the ever-changing effects of the global novel coronavirus (COVID-19) pandemic - - the duration, extent and severity of which are impossible to predict, including the possibility of further resurgence in the spread of COVID-19 or variants or mutations thereof - - on economies (local, national and international), supply chains and financial markets, on the labor market, including the potential for a sustained reduction in labor force participation, and on our customers (including potential changes in their banking preferences and behaviors), counterparties, employees and third-party service providers, as well as the effects of various responses of governmental and nongovernmental authorities to the COVID-19 pandemic;

•Park's ability to execute our business plan successfully and within the expected timeframe as well as our ability to manage strategic initiatives;

•current and future economic and financial market conditions, either nationally or in the states in which Park and our subsidiaries do business, including the effects of higher unemployment rates, an acceleration in the pace of inflation, U.S. fiscal debt, budget and tax matters, geopolitical matters (including the impact of the Russia-Ukraine conflict and associated sanctions), and any slowdown in global economic growth, in addition to the continuing impact of the COVID-19 pandemic and recovery therefrom on our customers’ operations and financial condition, any of which may result in adverse impacts on the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties' inability to meet credit and other obligations and the possible impairment of collectability of loans;

•factors that can impact the performance of our loan portfolio, including changes in real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions;

•the effect of monetary and other fiscal policies (including the impact of money supply, market interest rate policies and policies impacting inflation, of the Federal Reserve Board, the U.S. Treasury and other governmental agencies) as well as disruption in the liquidity and functioning of U.S. financial markets, may adversely impact prepayment penalty income, mortgage banking income, income from fiduciary activities, the value of securities, deposits and other financial instruments, in addition to the loan demand and the performance of our loan portfolio, and the interest rate sensitivity of our consolidated balance sheet as well as reduce interest margins;

•changes in the federal, state, or local tax laws may adversely affect the fair values of net deferred tax assets and obligations of state and political subdivisions held in Park's investment securities portfolio and otherwise negatively impact our financial performance;

•the impact of the changes in federal, state and local governmental policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation that may increase tax rates, infrastructure spending and social programs;

•changes in laws or requirements imposed by Park's regulators impacting Park's capital actions, including dividend payments and stock repurchases;

•changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions, legislative and regulatory initiatives, or other factors may be different than anticipated;

•changes in customers', suppliers', and other counterparties' performance and creditworthiness, and Park's expectations regarding future credit losses and our allowance for credit losses, may be different than anticipated due to the continuing impact of and the various responses to inflationary pressures;

•Park may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral;

•the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors;

•the adequacy of our internal controls and risk management program in the event of changes in the market, economic, operational (including those which may result from our associates working remotely), asset/liability repricing, legal, compliance, strategic, cybersecurity, liquidity, credit and interest rate risks associated with Park's business;

•competitive pressures among financial services organizations could increase significantly, including product and pricing pressures (which could in turn impact our credit spreads), changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Park's ability to attract, develop and retain qualified banking professionals;

•uncertainty regarding the nature, timing, cost and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and our subsidiaries, including major reform of the regulatory oversight structure of the financial services industry and changes in laws and regulations concerning taxes, FDIC insurance premium levels, pensions, bankruptcy, consumer protection, rent regulation and housing, financial accounting and reporting, environmental protection, insurance, bank products and services, bank and bank holding company capital and liquidity standards, fiduciary standards, securities and other aspects of the financial services industry, specifically the reforms provided for in the Coronavirus Aid, Relief and Economic Security (CARES) Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank

12

Act”) and the Basel III regulatory capital reforms, as well as regulations already adopted and which may be adopted in the future by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board, to implement the provisions of the CARES Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the provisions of the American Rescue Plan Act of 2021, the provisions of the Dodd-Frank Act, and the Basel III regulatory capital reforms;

•the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board (the "FASB"), the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, may adversely affect Park's reported financial condition or results of operations;

•Park's assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate or not predictive of actual results;

•the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions;

•the impact of Park's ability to anticipate and respond to technological changes on Park's ability to respond to customer needs and meet competitive demands;

•operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Park and our subsidiaries are highly dependent;

•the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Park's third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Park and/or result in Park incurring a financial loss;

•a failure in or breach of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers, resulting in failures or disruptions in customer account management, general ledger, deposit, loan, or other systems, including as a result of cyber attacks;

•the impact on Park's business and operating results of any costs associated with obtaining rights in intellectual property claimed by others and of adequacy of Park's intellectual property protection in general;

•the existence or exacerbation of general geopolitical instability and uncertainty as well as the effect of trade policies (including the impact of potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, closing of border crossings and changes in the relationship of the U.S. and its global trading partners);

•the impact on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia and the risk they may face difficulties servicing their sovereign debt;

•the effect of a fall in stock market prices on Park's asset and wealth management businesses;

•our litigation and regulatory compliance exposure, including the costs and effects of any adverse developments in legal proceedings or other claims and the costs and effects of unfavorable resolution of regulatory and other governmental examinations or other inquiries;

•continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends;

•the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties;

•the impact of widespread natural and other disasters, pandemics (including the COVID-19 pandemic), dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities (especially in light of the Russia-Ukraine conflict) on the economy and financial markets generally and on us or our counterparties specifically;

•a worsening of the U.S. economy due to financial, political, or other shocks;

•the effect of healthcare laws in the U.S. and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase our healthcare and other costs and negatively impact our operations and financial results;

•risk and uncertainties associated with Park's entry into new geographic markets with our most recent acquisitions, including expected revenue synergies and cost savings from recent acquisitions not being fully realized or realized within the expected time frame;

•uncertainty surrounding the transition from the London Inter-Bank Offered Rate (LIBOR) to an alternate reference rate;

•and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the SEC including those described in "Item 1A. Risk Factors" of Part I of Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Park does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.

13

Item 8.01 - Other Events

Declaration of Cash Dividend

As reported in the Financial Results News Release, on October 24, 2022, the Park Board of Directors (the "Park Board") declared a $1.04 per common share quarterly cash dividend in respect of Park's common shares and a special cash dividend of $0.50 per common share in respect of Park's common shares. The cash dividend and the special cash dividend are payable on December 9, 2022 to common shareholders of record as of the close of business on November 18, 2022. A copy of the Financial Results News Release is included as Exhibit 99.1 and the portion thereof addressing the declaration of the cash dividend and the special cash dividend by the Park Board is incorporated by reference herein.

Item 9.01 - Financial Statements and Exhibits.

(a)Not applicable

(b)Not applicable

(c)Not applicable

(d)Exhibits. The following exhibits are included with this Current Report on Form 8-K:

Exhibit No.        Description

99.1    News Release issued by Park National Corporation on October 24, 2022 addressing financial results for the three months and the nine months ended September 30, 2022 and declaration of quarterly cash dividend and special cash dividend

104    Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

14

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	PARK NATIONAL CORPORATION
Dated: October 24, 2022	By:	/s/ Brady T. Burt
		Brady T. Burt
		Chief Financial Officer, Secretary and Treasurer

15

EX-99.1

October 24, 2022Exhibit 99.1

Park National Corporation reports financial results

for third quarter and first nine months of 2022

Board of directors declares special dividend

NEWARK, Ohio - Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the third quarter and first nine months of 2022. Park's board of directors declared a quarterly cash dividend of $1.04 per common share and a special cash dividend of $0.50 per common share in respect of Park's common shares, payable on December 9, 2022 to common shareholders of record as of November 18, 2022.

“Growth is a byproduct of service. When we grow assets and liabilities, it’s a result of taking care of customers in an exceptional way,” said Park Chairman and Chief Executive Officer, David Trautman. “Our associates’ hard work resulted in several highlights this quarter including 7.05 percent in installment loan growth and $17 million in recoveries of previously charged off assets.”

Park’s net income for the third quarter of 2022 was $42.1 million, an 18.7 percent increase from $35.4 million for the third quarter of 2021. Third quarter 2022 net income per diluted common share was $2.57, compared to $2.16 in the third quarter of 2021. Park's net income for the first nine months of 2022 was $115.3 million, a 1.8 percent decrease from $117.4 million for the first nine months of 2021. Net income per diluted common share was $7.05 for the first nine months of 2022, compared to $7.14 for the first nine months of 2021.

Park's community-banking subsidiary, The Park National Bank, reported net income of $31.5 million for the third quarter of 2022, a 13.5 percent decrease compared to $36.5 million for the same period of 2021. Park National Bank reported net income of $107.9 million for the first nine months of 2022, compared to $122.5 million for the first nine months of 2021.

Headquartered in Newark, Ohio, Park National Corporation has $9.9 billion in total assets (as of September 30, 2022). Park's banking operations are conducted through its subsidiary The Park National Bank. Other Park subsidiaries are Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

Complete financial tables are listed below.

Category: Earnings

Media contact: Ellie Akey, 740.349.5493, ellie.akey@parknationalbank.com

Investor contact: Brady Burt, 740.322.6844, brady.burt@parknationalbank.com

Park National Corporation, 50 N. Third Street, Newark, Ohio 43055

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Park cautions that any forward-looking statements contained in this news release or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.

Risks and uncertainties that could cause actual results to differ materially include, without limitation:

•the ever-changing effects of the global novel coronavirus (COVID-19) pandemic - - the duration, extent and severity of which are impossible to predict, including the possibility of further resurgence in the spread of COVID-19 or variants or mutations thereof - - on economies (local, national and international), supply chains and financial markets, on the labor market, including the potential for a sustained reduction in labor force participation, and on our customers (including potential changes in their banking preferences

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

and behaviors), counterparties, employees and third-party service providers, as well as the effects of various responses of governmental and nongovernmental authorities to the COVID-19 pandemic;

•Park's ability to execute our business plan successfully and within the expected timeframe as well as our ability to manage strategic initiatives;

•current and future economic and financial market conditions, either nationally or in the states in which Park and our subsidiaries do business, including the effects of higher unemployment rates, an acceleration in the pace of inflation, U.S. fiscal debt, budget and tax matters, geopolitical matters (including the impact of the Russia-Ukraine conflict and associated sanctions), and any slowdown in global economic growth, in addition to the continuing impact of the COVID-19 pandemic and recovery therefrom on our customers’ operations and financial condition, any of which may result in adverse impacts on the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties' inability to meet credit and other obligations and the possible impairment of collectability of loans;

•factors that can impact the performance of our loan portfolio, including changes in real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions;

•the effect of monetary and other fiscal policies (including the impact of money supply, market interest rate policies and policies impacting inflation, of the Federal Reserve Board, the U.S. Treasury and other governmental agencies) as well as disruption in the liquidity and functioning of U.S. financial markets, may adversely impact prepayment penalty income, mortgage banking income, income from fiduciary activities, the value of securities, deposits and other financial instruments, in addition to the loan demand and the performance of our loan portfolio, and the interest rate sensitivity of our consolidated balance sheet as well as reduce interest margins;

•changes in the federal, state, or local tax laws may adversely affect the fair values of net deferred tax assets and obligations of state and political subdivisions held in Park's investment securities portfolio and otherwise negatively impact our financial performance;

•the impact of the changes in federal, state and local governmental policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation that may increase tax rates, infrastructure spending and social programs;

•changes in laws or requirements imposed by Park's regulators impacting Park's capital actions, including dividend payments and stock repurchases;

•changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions, legislative and regulatory initiatives, or other factors may be different than anticipated;

•changes in customers', suppliers', and other counterparties' performance and creditworthiness, and Park's expectations regarding future credit losses and our allowance for credit losses, may be different than anticipated due to the continuing impact of and the various responses to inflationary pressures;

•Park may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral;

•the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors;

•the adequacy of our internal controls and risk management program in the event of changes in the market, economic, operational (including those which may result from our associates working remotely), asset/liability repricing, legal, compliance, strategic, cybersecurity, liquidity, credit and interest rate risks associated with Park's business;

•competitive pressures among financial services organizations could increase significantly, including product and pricing pressures (which could in turn impact our credit spreads), changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Park's ability to attract, develop and retain qualified banking professionals;

•uncertainty regarding the nature, timing, cost and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and our subsidiaries, including major reform of the regulatory oversight structure of the financial services industry and changes in laws and regulations concerning taxes, FDIC insurance premium levels, pensions, bankruptcy, consumer protection, rent regulation and housing, financial accounting and reporting, environmental protection, insurance, bank products and services, bank and bank holding company capital and liquidity standards, fiduciary standards, securities and other aspects of the financial services industry, specifically the reforms provided for in the Coronavirus Aid, Relief and Economic Security (CARES) Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and the Basel III regulatory capital reforms, as well as regulations already adopted and which may be adopted in the future by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board, to implement the provisions of the CARES Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the provisions of the American Rescue Plan Act of 2021, the provisions of the Dodd-Frank Act, and the Basel III regulatory capital reforms;

•the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board (the "FASB"), the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, may adversely affect Park's reported financial condition or results of operations;

•Park's assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate or not predictive of actual results;

•the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions;

•the impact of Park's ability to anticipate and respond to technological changes on Park's ability to respond to customer needs and meet competitive demands;

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

•operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Park and our subsidiaries are highly dependent;

•the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Park's third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Park and/or result in Park incurring a financial loss;

•a failure in or breach of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers, resulting in failures or disruptions in customer account management, general ledger, deposit, loan, or other systems, including as a result of cyber attacks;

•the impact on Park's business and operating results of any costs associated with obtaining rights in intellectual property claimed by others and of adequacy of Park's intellectual property protection in general;

•the existence or exacerbation of general geopolitical instability and uncertainty as well as the effect of trade policies (including the impact of potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, closing of border crossings and changes in the relationship of the U.S. and its global trading partners);

•the impact on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia and the risk they may face difficulties servicing their sovereign debt;

•the effect of a fall in stock market prices on Park's asset and wealth management businesses;

•our litigation and regulatory compliance exposure, including the costs and effects of any adverse developments in legal proceedings or other claims and the costs and effects of unfavorable resolution of regulatory and other governmental examinations or other inquiries;

•continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends;

•the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties;

•the impact of widespread natural and other disasters, pandemics (including the COVID-19 pandemic), dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities (especially in light of the Russia-Ukraine conflict) on the economy and financial markets generally and on us or our counterparties specifically;

•a worsening of the U.S. economy due to financial, political, or other shocks;

•the effect of healthcare laws in the U.S. and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase our healthcare and other costs and negatively impact our operations and financial results;

•risk and uncertainties associated with Park's entry into new geographic markets with our most recent acquisitions, including expected revenue synergies and cost savings from recent acquisitions not being fully realized or realized within the expected time frame;

•uncertainty surrounding the transition from the London Inter-Bank Offered Rate (LIBOR) to an alternate reference rate;

•and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the SEC including those described in "Item 1A. Risk Factors" of Part I of Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Park does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Financial Highlights
As of or for the three months ended September 30, 2022, June 30, 2022, and September 30, 2021
	2022			2022			2021			Percent change vs.
(in thousands, except share and per share data and ratios)	3rd QTR			2nd QTR			3rd QTR			2Q '22		3Q '21
INCOME STATEMENT:
Net interest income	$	90,828		$	83,939		$	81,602		8.2	%	11.3	%
Provision for credit losses	3,190			2,991			1,972			6.7	%	61.8	%
Other income	46,694			31,193			32,411			49.7	%	44.1	%
Other expense	82,903			70,048			68,489			18.4	%	21.0	%
Income before income taxes	$	51,429		$	42,093		$	43,552		22.2	%	18.1	%
Income taxes	9,361			7,769			8,118			20.5	%	15.3	%
Net income	$	42,068		$	34,324		$	35,434		22.6	%	18.7	%
MARKET DATA:
Earnings per common share - basic (a)	$	2.59		$	2.11		$	2.17		22.7	%	19.4	%
Earnings per common share - diluted (a)	2.57			2.10			2.16			22.4	%	19.0	%
Quarterly cash dividends declared per common share	1.04			1.04			1.03			—	%	1.0	%
Book value per common share at period end	63.75			64.62			65.90			(1.3)	%	(3.3)	%
Market price per common share at period end	124.48			121.25			121.95			2.7	%	2.1	%
Market capitalization at period end	2,023,272			1,970,228			1,976,343			2.7	%	2.4	%
Weighted average common shares - basic (b)	16,253,704			16,249,307			16,292,312			—	%	(0.2)	%
Weighted average common shares - diluted (b)	16,374,982			16,361,246			16,423,912			0.1	%	(0.3)	%
Common shares outstanding at period end	16,253,794			16,249,306			16,206,177			—	%	0.3	%
PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)	1.61		%	1.42		%	1.40		%	13.4	%	15.0	%
Return on average shareholders' equity (a)(b)	15.50		%	12.86		%	13.04		%	20.5	%	18.9	%
Yield on loans	4.72		%	4.57		%	4.47		%	3.3	%	5.6	%
Yield on investment securities	2.85		%	2.35		%	2.12		%	21.3	%	34.4	%
Yield on money market instruments	2.20		%	0.77		%	0.16		%	185.7	%	1,275.0	%
Yield on interest earning assets	4.18		%	4.04		%	3.69		%	3.5	%	13.3	%
Cost of interest bearing deposits	0.46		%	0.16		%	0.11		%	187.5	%	318.2	%
Cost of borrowings	2.61		%	2.50		%	2.00		%	4.4	%	30.5	%
Cost of paying interest bearing liabilities	0.60		%	0.33		%	0.26		%	81.8	%	130.8	%
Net interest margin (g)	3.81		%	3.84		%	3.53		%	(0.8)	%	7.9	%
Efficiency ratio (g)	59.88		%	60.38		%	59.70		%	(0.8)	%	0.3	%
OTHER DATA (NON-GAAP) AND BALANCE SHEET:
Tangible book value per share (d)	$	53.54		$	54.39		$	55.56		(1.6)	%	(3.6)	%
Average interest earning assets	9,565,710			8,857,089			9,250,939			8.0	%	3.4	%
Pre-tax, pre-provision net income (l)	54,619			45,084			45,524			21.1	%	20.0	%
Note: Explanations for footnotes (a) - (l) are included at the end of the financial tables in the "Financial Reconciliations" section.

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Financial Highlights (continued)
As of or for the three months ended September 30, 2022, June 30, 2022, and September 30, 2021
										Percent change vs.
(in thousands, except ratios)	September 30, 2022			June 30, 2022			September 30, 2021			2Q '22		3Q '21
BALANCE SHEET:
Investment securities	$	1,828,068		$	1,920,724		$	1,609,303		(4.8)	%	13.6	%
Commercial loans held for sale	—			6,321			—			N.M		N.M
Loans	7,103,246			6,958,685			6,908,417			2.1	%	2.8	%
Allowance for credit losses	83,961			81,448			88,129			3.1	%	(4.7)	%
Goodwill and other intangible assets	165,911			166,252			167,477			(0.2)	%	(0.9)	%
Other real estate owned (OREO)	1,354			1,354			813			—	%	66.5	%
Total assets	9,855,047			9,826,670			10,034,018			0.3	%	(1.8)	%
Total deposits	8,309,927			8,297,654			8,364,385			0.1	%	(0.7)	%
Borrowings	378,044			360,234			424,078			4.9	%	(10.9)	%
Total shareholders' equity	1,036,172			1,050,013			1,067,912			(1.3)	%	(3.0)	%
Tangible equity (d)	870,261			883,761			900,435			(1.5)	%	(3.4)	%
Total nonperforming loans	65,233			64,627			106,872			0.9	%	(39.0)	%
Total nonperforming loans including commercial loans held for sale, previously nonperforming	65,233			70,246			106,872			(7.1)	%	(39.0)	%
Total nonperforming assets	66,587			71,600			110,849			(7.0)	%	(39.9)	%
ASSET QUALITY RATIOS:
Loans as a % of period end total assets	72.08		%	70.81		%	68.85		%	1.8	%	4.7	%
Total nonperforming loans as a % of period end loans	0.92		%	0.93		%	1.55		%	(1.1)	%	(40.6)	%
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets	0.94		%	1.03		%	1.60		%	(8.7)	%	(41.3)	%
Allowance for credit losses as a % of period end loans	1.18		%	1.17		%	1.28		%	0.9	%	(7.8)	%
Net loan charge-offs (recoveries)	$	677		$	404		$	(2,580)		67.6	%	N.M.
Annualized net loan charge-offs (recoveries) as a % of average loans (b)	0.04		%	0.02		%	(0.15)		%	100.0	%	N.M.
CAPITAL & LIQUIDITY:
Total shareholders' equity / Period end total assets	10.51		%	10.69		%	10.64		%	(1.7)	%	(1.2)	%
Tangible equity (d) / Tangible assets (f)	8.98		%	9.15		%	9.13		%	(1.9)	%	(1.6)	%
Average shareholders' equity / Average assets (b)	10.37		%	11.06		%	10.71		%	(6.2)	%	(3.2)	%
Average shareholders' equity / Average loans (b)	15.29		%	15.65		%	15.50		%	(2.3)	%	(1.4)	%
Average loans / Average deposits (b)	80.06		%	84.27		%	82.68		%	(5.0)	%	(3.2)	%
Note: Explanations for footnotes (a) - (m) are included at the end of the financial tables in the "Financial Reconciliations" section.

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Financial Highlights
Nine months ended September 30, 2022 and September 30, 2021
	2022			2021
(in thousands, except share and per share data)	Nine months ended September 30			Nine months ended September 30			Percent change vs '21
INCOME STATEMENT:
Net interest income	$	252,453		$	246,187		2.5	%
Provision for (recovery of) credit losses	1,576			(6,923)			N.M
Other income	109,543			97,738			12.1	%
Other expense	220,324			207,754			6.1	%
Income before income taxes	$	140,096		$	143,094		(2.1)	%
Income taxes	24,829			25,697			(3.4)	%
Net income	$	115,267		$	117,397		(1.8)	%
MARKET DATA:
Earnings per common share - basic (a)	$	7.10		$	7.20		(1.4)	%
Earnings per common share - diluted (a)	7.05			7.14			(1.3)	%
Quarterly cash dividends declared per common share	3.12			3.09			1.0	%
Special cash dividends declared per common share	—			0.20			N.M.
Weighted average common shares - basic (b)	16,240,966			16,315,996			(0.5)	%
Weighted average common shares - diluted (b)	16,355,790			16,445,568			(0.5)	%
PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)	1.55		%	1.59		%	(2.5)	%
Return on average shareholders' equity (a)(b)	14.22		%	14.79		%	(3.9)	%
Yield on loans	4.54		%	4.52		%	0.4	%
Yield on investment securities	2.45		%	2.30		%	6.5	%
Yield on money market instruments	1.34		%	0.13		%	930.8	%
Yield on interest earning assets	3.98		%	3.86		%	3.1	%
Cost of interest bearing deposits	0.24		%	0.13		%	84.6	%
Cost of borrowings	2.48		%	1.92		%	29.2	%
Cost of paying interest bearing liabilities	0.40		%	0.29		%	37.9	%
Net interest margin (g)	3.74		%	3.67		%	1.9	%
Efficiency ratio (g)	60.43		%	60.03		%	0.7	%
ASSET QUALITY RATIOS
Net loan charge-offs (recoveries)	$	812		$	(3,287)		N.M.
Annualized net loan charge-offs (recoveries) as a % of average loans (b)	0.02		%	(0.06)		%	N.M.
CAPITAL & LIQUIDITY
Average shareholders' equity / Average assets (b)	10.88		%	10.77		%	1.0	%
Average shareholders' equity / Average loans (b)	15.70		%	15.02		%	4.5	%
Average loans / Average deposits (b)	82.47		%	86.33		%	(4.5)	%
OTHER DATA BALANCE SHEET AND (NON-GAAP) :
Average interest earning assets	$	9,129,524		$	9,034,904		1.0	%
Pre-tax, pre-provision net income (l)	141,672			136,171			4.0	%
Note: Explanations for footnotes (a) - (l) are included at the end of the financial tables in the "Financial Reconciliations" section.

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Consolidated Statements of Income
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except share and per share data)	2022		2021		2022		2021
Interest income:
Interest and fees on loans	$	83,522	$	78,127	$	233,725	$	238,040
Interest on debt securities:
Taxable	10,319		4,904		24,073		13,760
Tax-exempt	2,923		2,029		8,046		6,098
Other interest income	3,180		360		3,593		689
Total interest income	99,944		85,420		269,437		258,587
Interest expense:
Interest on deposits:
Demand and savings deposits	5,757		435		7,441		1,222
Time deposits	825		1,011		2,253		3,880
Interest on borrowings	2,534		2,372		7,290		7,298
Total interest expense	9,116		3,818		16,984		12,400
Net interest income	90,828		81,602		252,453		246,187
Provision for (recovery of) credit losses	3,190		1,972		1,576		(6,923)
Net interest income after provision for (recovery of) credit losses	87,638		79,630		250,877		253,110
Other income	46,694		32,411		109,543		97,738
Other expense	82,903		68,489		220,324		207,754
Income before income taxes	51,429		43,552		140,096		143,094
Income taxes	9,361		8,118		24,829		25,697
Net income	$	42,068	$	35,434	$	115,267	$	117,397
Per common share:
Net income - basic	$	2.59	$	2.17	$	7.10	$	7.20
Net income - diluted	$	2.57	$	2.16	$	7.05	$	7.14
Weighted average shares - basic	16,253,704		16,292,312		16,240,966		16,315,996
Weighted average shares - diluted	16,374,982		16,423,912		16,355,790		16,445,568
Cash dividends declared:
Quarterly dividend	$	1.04	$	1.03	$	3.12	$	3.09
Special dividend	$	—	$	—	$	—	$	0.20

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(in thousands, except share data)	September 30, 2022		December 31, 2021
Assets
Cash and due from banks	$	149,136	$	144,507
Money market instruments	58,297		74,673
Investment securities	1,828,068		1,815,408
Loans	7,103,246		6,871,122
Allowance for credit losses	(83,961)		(83,197)
Loans, net	7,019,285		6,787,925
Bank premises and equipment, net	84,669		89,008
Goodwill and other intangible assets	165,911		167,057
Other real estate owned	1,354		775
Other assets	548,327		480,901
Total assets	$	9,855,047	$	9,560,254
Liabilities and Shareholders' Equity
Deposits:
Noninterest bearing	$	3,138,417	$	3,066,419
Interest bearing	5,171,510		4,838,109
Total deposits	8,309,927		7,904,528
Borrowings	378,044		426,996
Other liabilities	130,904		117,971
Total liabilities	$	8,818,875	$	8,449,495
Shareholders' Equity:
Preferred shares (200,000 shares authorized; no shares outstanding at September 30, 2022 and December 31, 2021)	$	—	$	—
Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at September 30, 2022 and 17,623,118 shares issued at December 31, 2021)	461,321		461,800
Accumulated other comprehensive (loss) income, net of taxes	(125,343)		15,155
Retained earnings	839,207		776,294
Treasury shares (1,369,310 shares at September 30, 2022 and 1,403,555 shares at December 31, 2021)	(139,013)		(142,490)
Total shareholders' equity	$	1,036,172	$	1,110,759
Total liabilities and shareholders' equity	$	9,855,047	$	9,560,254

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2022		2021		2022		2021
Assets
Cash and due from banks	$	156,585	$	130,716	$	161,424	$	136,728
Money market instruments	573,858		895,784		357,514		724,561
Investment securities	1,904,909		1,461,434		1,854,295		1,310,762
Loans	7,039,040		6,956,064		6,904,019		7,062,336
Allowance for credit losses	(81,130)		(83,935)		(81,148)		(86,969)
Loans, net	6,957,910		6,872,129		6,822,871		6,975,367
Bank premises and equipment, net	85,588		89,718		87,107		89,909
Goodwill and other intangible assets	166,136		167,754		166,521		168,215
Other real estate owned	1,745		776		1,096		935
Other assets	537,318		452,405		514,035		446,980
Total assets	$	10,384,049	$	10,070,716	$	9,964,863	$	9,853,457
Liabilities and Shareholders' Equity
Deposits:
Noninterest bearing	$	3,112,219	$	2,953,605	$	3,079,026	$	2,896,126
Interest bearing	5,679,989		5,459,400		5,292,194		5,284,664
Total deposits	8,792,208		8,413,005		8,371,220		8,180,790
Borrowings	385,310		471,148		392,269		507,989
Other liabilities	130,005		108,098		117,294		103,612
Total liabilities	$	9,307,523	$	8,992,251	$	8,880,783	$	8,792,391
Shareholders' Equity:
Preferred shares	$	—	$	—	$	—	$	—
Common shares	460,188		458,988		460,462		459,213
Accumulated other comprehensive loss, net of taxes	(78,040)		(2,022)		(46,489)		(1,918)
Retained earnings	833,540		755,435		810,457		734,715
Treasury shares	(139,162)		(133,936)		(140,350)		(130,944)
Total shareholders' equity	$	1,076,526	$	1,078,465	$	1,084,080	$	1,061,066
Total liabilities and shareholders' equity	$	10,384,049	$	10,070,716	$	9,964,863	$	9,853,457

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Consolidated Statements of Income - Linked Quarters
	2022		2022		2022		2021		2021
(in thousands, except per share data)	3rd QTR		2nd QTR		1st QTR		4th QTR		3rd QTR
Interest income:
Interest and fees on loans	$	83,522	$	77,787	$	72,416	$	79,168	$	78,127
Interest on debt securities:
Taxable	10,319		7,624		6,130		5,698		4,904
Tax-exempt	2,923		2,676		2,447		2,209		2,029
Other interest income	3,180		260		153		191		360
Total interest income	99,944		88,347		81,146		87,266		85,420
Interest expense:
Interest on deposits:
Demand and savings deposits	5,757		1,333		351		373		435
Time deposits	825		708		720		831		1,011
Interest on borrowings	2,534		2,367		2,389		2,356		2,372
Total interest expense	9,116		4,408		3,460		3,560		3,818
Net interest income	90,828		83,939		77,686		83,706		81,602
Provision for (recovery of) credit losses	3,190		2,991		(4,605)		(4,993)		1,972
Net interest income after provision for (recovery of) credit losses	87,638		80,948		82,291		88,699		79,630
Other income	46,694		31,193		31,656		32,206		32,411
Other expense	82,903		70,048		67,373		75,764		68,489
Income before income taxes	51,429		42,093		46,574		45,141		43,552
Income taxes	9,361		7,769		7,699		8,593		8,118
Net income	$	42,068	$	34,324	$	38,875	$	36,548	$	35,434
Per common share:
Net income - basic	$	2.59	$	2.11	$	2.40	$	2.25	$	2.17
Net income - diluted	$	2.57	$	2.10	$	2.38	$	2.23	$	2.16

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Detail of other income and other expense - Linked Quarters
	2022		2022		2022		2021		2021
(in thousands)	3rd QTR		2nd QTR		1st QTR		4th QTR		3rd QTR
Other income:
Income from fiduciary activities	$	8,216	$	8,859	$	8,797	$	8,887	$	8,820
Service charges on deposit accounts	2,859		2,563		2,074		2,357		2,389
Other service income	2,956		4,940		4,819		6,368		6,668
Debit card fee income	6,514		6,731		6,126		6,568		6,453
Bank owned life insurance income	1,185		2,374		1,175		1,121		1,462
ATM fees	610		583		532		572		622
Gain on the sale of OREO, net	5,607		4		—		22		3
OREO valuation markup	12,009		—		30		51		—
Gain on equity securities, net	58		709		2,353		2,125		609
Other components of net periodic benefit income	3,027		3,027		3,027		2,038		2,038
Miscellaneous	3,653		1,403		2,723		2,097		3,347
Total other income	$	46,694	$	31,193	$	31,656	$	32,206	$	32,411
Other expense:
Salaries	$	37,889	$	31,052	$	30,521	$	35,953	$	29,433
Employee benefits	9,897		10,199		10,499		10,706		10,640
Occupancy expense	3,455		3,040		3,214		3,161		3,211
Furniture and equipment expense	2,912		2,934		2,937		2,724		2,797
Data processing fees	8,170		8,416		7,504		7,860		7,817
Professional fees and services	8,359		6,775		5,858		7,840		6,973
Marketing	1,595		1,019		1,317		1,718		1,574
Insurance	1,237		1,245		1,405		1,547		1,403
Communication	1,098		935		890		851		796
State tax expense	1,186		1,167		1,192		931		1,113
Amortization of intangible assets	341		403		402		420		420
Foundation contributions	4,000		—		—		—		—
Miscellaneous	2,764		2,863		1,634		2,053		2,312
Total other expense	$	82,903	$	70,048	$	67,373	$	75,764	$	68,489

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Asset Quality Information
										Year ended December 31,
(in thousands, except ratios)	September 30, 2022			June 30, 2022			March 31, 2022			2021			2020			2019			2018
Allowance for credit losses:
Allowance for credit losses, beginning of period	$	81,448		$	78,861		$	83,197		$	85,675		$	56,679		$	51,512		$	49,988
Cumulative change in accounting principle; adoption of ASU 2016-13	—			—			—			6,090			—			—			—
Charge-offs	1,748			2,402			1,347			5,093			10,304			11,177			13,552
Recoveries	1,071			1,998			1,616			8,441			27,246			10,173			7,131
Net charge-offs (recoveries)	677			404			(269)			(3,348)			(16,942)			1,004			6,421
Provision for (recovery of) credit losses	3,190			2,991			(4,605)			(11,916)			12,054			6,171			7,945
Allowance for credit losses, end of period	$	83,961		$	81,448		$	78,861		$	83,197		$	85,675		$	56,679		$	51,512
General reserve trends:
Allowance for credit losses, end of period	$	83,961		$	81,448		$	78,861		$	83,197		$	85,675		$	56,679		$	51,512
Allowance on purchased credit deteriorated ("PCD") loans (purchased credit impaired ("PCI") loans for years 2020 and prior)	—			—			—			—			167			268			—
Allowance on purchased loans excluded from the general reserve (for years 2020 and prior)	N.A.			N.A.			N.A.			N.A.			678			—			—
Specific reserves on individually evaluated loans	1,750			1,874			1,513			1,616			5,434			5,230			2,273
General reserves on collectively evaluated loans	$	82,211		$	79,574		$	77,348		$	81,581		$	79,396		$	51,181		$	49,239
Total loans	$	7,103,246		$	6,958,685		$	6,821,606		$	6,871,122		$	7,177,785		$	6,501,404		$	5,692,132
PCD loans (PCI loans for years 2020 and prior)	4,867			5,934			6,987			7,149			11,153			14,331			3,943
Purchased loans excluded from collectively evaluated loans (for years 2020 and prior)	N.A.			N.A.			N.A.			N.A.			360,056			548,436			225,029
Individually evaluated loans	43,670			42,523			63,209			74,502			108,407			77,459			48,135
Collectively evaluated loans	$	7,054,709		$	6,910,228		$	6,751,410		$	6,789,471		$	6,698,169		$	5,861,178		$	5,415,025
Asset Quality Ratios:
Annualized net charge-offs (recoveries) as a % of average loans	0.04		%	0.02		%	(0.02)		%	(0.05)		%	(0.24)		%	0.02		%	0.12		%
Allowance for credit losses as a % of period end loans	1.18		%	1.17		%	1.16		%	1.21		%	1.19		%	0.87		%	0.90		%
Allowance for credit losses as a % of period end loans (excluding PPP loans) (j)	1.18		%	1.17		%	1.16		%	1.22		%	1.25		%	N.A.			N.A.
General reserve as a % of collectively evaluated loans	1.17		%	1.15		%	1.15		%	1.20		%	1.19		%	0.87		%	0.91		%
General reserves as a % of collectively evaluated loans (excluding PPP loans) (j)	1.17		%	1.15		%	1.15		%	1.21		%	1.24		%	N.A.			N.A.
Nonperforming assets:
Nonaccrual loans	$	44,612		$	44,374		$	54,018		$	72,722		$	117,368		$	90,080		$	67,954
Accruing troubled debt restructurings	19,831			19,746			32,428			28,323			20,788			21,215			15,173
Loans past due 90 days or more	790			507			445			1,607			1,458			2,658			2,243
Total nonperforming loans	$	65,233		$	64,627		$	86,891		$	102,652		$	139,614		$	113,953		$	85,370
Commercial loans held for sale, previously nonperforming	—			5,619			—			—			—			—			—
Total nonperforming loans, including commercial loans held for sale, previously nonperforming	$	65,233		$	70,246		$	86,891		$	102,652		$	139,614		$	113,953		$	85,370
Other real estate owned - Park National Bank	—			—			166			181			837			3,100			2,788
Other real estate owned - SEPH	1,354			1,354			594			594			594			929			1,515
Other nonperforming assets - Park National Bank	—			—			—			2,750			3,164			3,599			3,464
Total nonperforming assets	$	66,587		$	71,600		$	87,651		$	106,177		$	144,209		$	121,581		$	93,137
Percentage of nonaccrual loans to period end loans	0.63		%	0.64		%	0.79		%	1.06		%	1.64		%	1.39		%	1.19		%
Percentage of nonperforming loans to period end loans	0.92		%	0.93		%	1.27		%	1.49		%	1.95		%	1.75		%	1.50		%
Percentage of nonperforming assets to period end loans	0.94		%	1.03		%	1.28		%	1.55		%	2.01		%	1.87		%	1.64		%
Percentage of nonperforming assets to period end total assets	0.68		%	0.73		%	0.92		%	1.11		%	1.55		%	1.42		%	1.19		%
Note: Explanations for footnotes (a) - (l) are included at the end of the financial tables in the "Financial Reconciliations" section.

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Asset Quality Information (continued)
							Year ended December 31,
(in thousands, except ratios)	September 30, 2022		June 30, 2022		March 31, 2022		2021		2020		2019		2018
New nonaccrual loan information:
Nonaccrual loans, beginning of period	$	44,374	$	54,018	$	72,722	$	117,368	$	90,080	$	67,954	$	72,056
New nonaccrual loans	5,209		7,881		6,000		38,478		103,386		81,009		76,611
Resolved nonaccrual loans	7,402		11,906		24,704		83,124		76,098		58,883		80,713
Loans transferred (from) to held for sale	(2,431)		5,619		—		—		—		—		—
Nonaccrual loans, end of period	$	44,612	$	44,374	$	54,018	$	72,722	$	117,368	$	90,080	$	67,954
Individually evaluated commercial loan portfolio information (period end): (k)
Unpaid principal balance	$	44,465	$	42,905	$	63,833	$	75,126	$	109,062	$	78,178	$	59,381
Prior charge-offs	795		382		624		624		655		719		11,246
Remaining principal balance	43,670		42,523		63,209		74,502		108,407		77,459		48,135
Specific reserves	1,750		1,874		1,513		1,616		5,434		5,230		2,273
Book value, after specific reserves	$	41,920	$	40,649	$	61,696	$	72,886	$	102,973	$	72,229	$	45,862
Note: Explanations for footnotes (a) - (l) are included at the end of the financial tables in the "Financial Reconciliations" section.

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Financial Reconciliations
NON-GAAP RECONCILIATIONS
	THREE MONTHS ENDED									NINE MONTHS ENDED
(in thousands, except share and per share data)	September 30, 2022			June 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Net interest income	$	90,828		$	83,939		$	81,602		$	252,453		$	246,187
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions	495			547			807			1,522			2,744
less interest income on former Vision Bank relationships	649			2,305			414			2,996			3,357
Net interest income - adjusted	$	89,684		$	81,087		$	80,381		$	247,935		$	240,086
Provision for (recovery of) credit losses	$	3,190		$	2,991		$	1,972		$	1,576		$	(6,923)
less recoveries on former Vision Bank relationships	(20)			(506)			(2,231)			(527)			(2,640)
Provision for (recovery of) credit losses - adjusted	$	3,210		$	3,497		$	4,203		$	2,103		$	(4,283)
Other income	$	46,694		$	31,193		$	32,411		$	109,543		$	97,738
less other service income related to former Vision Bank relationships	3			500			143			503			204
less gain on the sale of OREO, net	5,607			—			—			5,607			—
less Vision related OREO valuation markup	12,009			—			—			12,009			—
Other income - adjusted	$	29,075		$	30,693		$	32,268		$	91,424		$	97,534
Other expense	$	82,903		$	70,048		$	68,489		$	220,324		$	207,754
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions	341			403			420			1,146			1,378
less direct expenses related to collection of payments on former Vision Bank loan relationships	1,295			366			254			1,661			661
less Foundation contribution	4,000			—			—			4,000			4,000
Other expense - adjusted	$	77,267		$	69,279		$	67,815		$	213,517		$	201,715
Tax effect of adjustments to net income identified above (i)	$	(2,761)		$	(649)		$	(613)		$	(3,435)		$	(610)
Net income - reported	$	42,068		$	34,324		$	35,434		$	115,267		$	117,397
Net income - adjusted (h)	$	31,682		$	31,884		$	33,126		$	102,345		$	115,101
Diluted earnings per share	$	2.57		$	2.10		$	2.16		$	7.05		$	7.14
Diluted earnings per share, adjusted (h)	$	1.93		$	1.95		$	2.02		$	6.26		$	7.00
Annualized return on average assets (a)(b)	1.61		%	1.42		%	1.40		%	1.55		%	1.59		%
Annualized return on average assets, adjusted(a)(b)(h)	1.21		%	1.32		%	1.31		%	1.37		%	1.56		%
Annualized return on average tangible assets (a)(b)(e)	1.63		%	1.45		%	1.42		%	1.57		%	1.62		%
Annualized return on average tangible assets, adjusted (a)(b)(e)(h)	1.23		%	1.34		%	1.33		%	1.40		%	1.59		%
Annualized return on average shareholders' equity (a)(b)	15.50		%	12.86		%	13.04		%	14.22		%	14.79		%
Annualized return on average shareholders' equity, adjusted (a)(b)(h)	11.68		%	11.95		%	12.19		%	12.62		%	14.50		%
Annualized return on average tangible equity (a)(b)(c)	18.33		%	15.23		%	15.44		%	16.80		%	17.58		%
Annualized return on average tangible equity, adjusted (a)(b)(c)(h)	13.81		%	14.15		%	14.43		%	14.91		%	17.24		%
Efficiency ratio (g)	59.88		%	60.38		%	59.70		%	60.43		%	60.03		%
Efficiency ratio, adjusted (g)(h)	64.56		%	61.50		%	59.82		%	62.44		%	59.37		%
Annualized net interest margin (g)	3.81		%	3.84		%	3.53		%	3.74		%	3.67		%
Annualized net interest margin, adjusted (g)(h)	3.76		%	3.71		%	3.48		%	3.67		%	3.58		%
Note: Explanations for footnotes (a) - (l) are included at the end of the financial tables in the "Financial Reconciliations" section.

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Financial Reconciliations (continued)
(a) Reported measure uses net income
(b) Averages are for the three months ended September 30, 2022, June 30, 2022, and September 30, 2021 and the nine months ended September 30, 2022 and September 30, 2021, as appropriate
(c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period.
RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY:
	THREE MONTHS ENDED						NINE MONTHS ENDED
	September 30, 2022		June 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
AVERAGE SHAREHOLDERS' EQUITY	$	1,076,526	$	1,070,493	$	1,078,465	$	1,084,080	$	1,061,066
Less: Average goodwill and other intangible assets	166,136		166,516		167,754		166,521		168,215
AVERAGE TANGIBLE EQUITY	$	910,390	$	903,977	$	910,711	$	917,559	$	892,851
(d) Tangible equity divided by common shares outstanding at period end. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at the end of the period.
RECONCILIATION OF TOTAL SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY:
	September 30, 2022		June 30, 2022		September 30, 2021
TOTAL SHAREHOLDERS' EQUITY	$	1,036,172	$	1,050,013	$	1,067,912
Less: Goodwill and other intangible assets	165,911		166,252		167,477
TANGIBLE EQUITY	$	870,261	$	883,761	$	900,435
(e) Net income for each period divided by average tangible assets during the period. Average tangible assets equal average assets less average goodwill and other intangible assets, in each case during the applicable period.
RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS
	THREE MONTHS ENDED						NINE MONTHS ENDED
	September 30, 2022		June 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
AVERAGE ASSETS	$	10,384,049	$	9,679,020	$	10,070,716	$	9,964,863	$	9,853,457
Less: Average goodwill and other intangible assets	166,136		166,516		167,754		166,521		168,215
AVERAGE TANGIBLE ASSETS	$	10,217,913	$	9,512,504	$	9,902,962	$	9,798,342	$	9,685,242
(f) Tangible equity divided by tangible assets. Tangible assets equal total assets less goodwill and other intangible assets, in each case at the end of the period.
RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
	September 30, 2022		June 30, 2022		September 30, 2021
TOTAL ASSETS	$	9,855,047	$	9,826,670	$	10,034,018
Less: Goodwill and other intangible assets	165,911		166,252		167,477
TANGIBLE ASSETS	$	9,689,136	$	9,660,418	$	9,866,541

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION
Financial Reconciliations (continued)
(g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period.
RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
	THREE MONTHS ENDED						NINE MONTHS ENDED
	September 30, 2022		June 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Interest income	$	99,944	$	88,347	$	85,420	$	269,437	$	258,587
Fully taxable equivalent adjustment	932		872		717		2,623		2,149
Fully taxable equivalent interest income	$	100,876	$	89,219	$	86,137	$	272,060	$	260,736
Interest expense	9,116		4,408		3,818		16,984		12,400
Fully taxable equivalent net interest income	$	91,760	$	84,811	$	82,319	$	255,076	$	248,336
(h) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for (recovery of) credit losses, other income and other expense.
(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.
(j) Excludes $5.7 million of PPP loans and $6,000 in related allowance at September 30, 2022, $13.4 million of PPP loans and $14,000 in related allowance at June 30, 2022, $37.4 million of PPP loans and $39,000 in related allowance at March 31, 2022, $74.4 million of PPP loans and $77,000 in related allowance at December 31, 2021 and $331.6 million of PPP loans and $337,000 in related allowance at December 31, 2020.
(k) Excludes $5.6 million of commercial loans held for sale, previously nonperforming, for the period ended June 30, 2022.
(l) Pre-tax, pre-provision ("PTPP") net income is calculated as net income, plus income taxes, plus the provision for (recovery of) credit losses, in each case during the applicable period. PTPP net income is a common industry metric utilized in capital analysis and review. PTPP is used to assess the operating performance of Park while excluding the impact of the provision for (recovery of) credit losses.
RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME
	THREE MONTHS ENDED						NINE MONTHS ENDED
	September 30, 2022		June 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Net income	$	42,068	$	34,324	$	35,434	$	115,267	$	117,397
Plus: Income Taxes	9,361		7,769		8,118		24,829		25,697
Plus: Provision for (recovery of) credit losses	3,190		2,991		1,972		1,576		(6,923)
Pre-tax, pre-provision net income	$	54,619	$	45,084	$	45,524	$	141,672	$	136,171

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

XML

DEI Document	Oct. 24, 2022
Document Information [Line Items]
City Area Code	(740)
Entity Registrant Name	PARK NATIONAL CORPORATION
Entity Address, Address Line One	50 North Third Street,
Entity Address, Address Line Two	P.O. Box 3500,
Entity Address, City or Town	Newark,
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43058-3500
Entity Incorporation, State or Country Code	OH
Document Period End Date	Oct. 24, 2022
Document Type	8-K
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common shares, without par value
Trading Symbol	PRK
Entity Emerging Growth Company	false
Amendment Flag	false
Document Fiscal Year Focus
Document Fiscal Period Focus
Entity Central Index Key	0000805676
Security Exchange Name	NYSEAMER
Entity File Number	1-13006
Entity Tax Identification Number	31-1179518
Local Phone Number	349-8451