Capital Ratios

12 Months Ended

Dec. 31, 2022

Banking Regulation, Total Capital [Abstract]

Capital Ratios

Capital RatiosFinancial institution regulators have established guidelines for minimum capital ratios for banks, thrifts and bank holding companies. Park has elected not to include the net unrealized gain or loss on debt securities AFS in computing regulatory capital. Park has adopted the Basel III regulatory capital framework as approved by the federal banking agencies. Under the Basel III regulatory capital framework, in order to avoid limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers, Park must hold a capital conservation buffer of 2.50% above the adequately capitalized risk-based capital ratios. The amounts shown below as the adequately capitalized ratio plus capital conservation buffer include the 2.50% buffer. The Federal Reserve Board has also adopted requirements Park must maintain to be deemed "well-capitalized" and to remain a financial holding company.

Each of PNB and Park met all of the well-capitalized ratio guidelines applicable to it at December 31, 2022. The following table indicates the capital ratios for PNB and Park at December 31, 2022 and 2021.

 

	As of December 31, 2022
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
PNB	8.34	%	10.69	%	10.69	%	12.15	%
Park	9.90	%	12.76	%	12.57	%	16.07	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well-capitalized ratio - PNB	5.00	%	8.00	%	6.50	%	10.00	%
Well-capitalized ratio - Park	N/A		6.00	%	N/A		10.00	%

 

	As of December 31, 2021
	Leverage		Tier 1 Risk-Based		Common Equity Tier 1		Total Risk-Based
PNB	8.58	%	11.05	%	11.05	%	12.56	%
Park	9.77	%	12.57	%	12.37	%	16.05	%
Adequately capitalized ratio	4.00	%	6.00	%	4.50	%	8.00	%
Adequately capitalized ratio plus capital conservation buffer	4.00	%	8.50	%	7.00	%	10.50	%
Well-capitalized ratio - PNB	5.00	%	8.00	%	6.50	%	10.00	%
Well-capitalized ratio - Park	N/A		6.00	%	N/A		10.00	%

The following table reflects various measures of capital for Park and PNB:

 

					To Be Adequately Capitalized				To Be Well-Capitalized
(In thousands)	Actual Amount		Ratio		Amount		Ratio		Amount		Ratio
At December 31, 2022
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	965,470	12.15	%	$	635,769	8.00	%	$	794,711	10.00	%
Park	1,283,409		16.07	%	639,102		8.00	%	798,877		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	849,886	10.69	%	$	476,827	6.00	%	$	635,769	8.00	%
Park	1,019,149		12.76	%	479,326		6.00	%	479,326		6.00	%
Leverage Ratio (to average total assets)
PNB	$	849,886	8.34	%	$	407,836	4.00	%	$	509,795	5.00	%
Park	1,019,149		9.90	%	411,838		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	$	849,886	10.69	%	$	357,620	4.50	%	$	516,562	6.50	%
Park	1,004,149		12.57	%	359,495		4.50	%	N/A		N/A
At December 31, 2021
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	937,438	12.56	%	$	597,094	8.00	%	$	746,368	10.00	%
Park	1,202,225		16.05	%	599,102		8.00	%	748,878		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	825,045	11.05	%	$	447,821	6.00	%	$	597,094	8.00	%
Park	941,536		12.57	%	449,327		6.00	%	449,327		6.00	%
Leverage Ratio (to average total assets)
PNB	$	825,045	8.58	%	$	384,582	4.00	%	$	480,728	5.00	%
Park	941,536		9.77	%	385,313		4.00	%	N/A		N/A
Common Equity Tier 1 (to risk-weighted assets)
PNB	825,045		11.05	%	335,866		4.50	%	485,139		6.50	%
Park	926,536		12.37	%	336,995		4.50	%	N/A		N/A