image.jpg

April 21, 2023                                        Exhibit 99.1

Park National Corporation reports financial results
for first quarter 2023


NEWARK, Ohio - Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the first quarter of 2023. Park's board of directors declared a quarterly cash dividend of $1.05 per common share, payable on June 9, 2023 to common shareholders of record as of May 19, 2023.

“Our associates serve customers when, where and how they prefer to be served. This produces solid financial results for our organization,” said Park Chairman and Chief Executive Officer, David Trautman. “Our colleagues’ commitment transcends banking, and begins with improving our communities.”

Park’s net income for the first quarter of 2023 was $33.7 million, a 13.2 percent decrease from $38.9 million for the first quarter of 2022. First quarter 2023 net income per diluted common share was $2.07, compared to $2.38 in the first quarter of 2022.

Park's community-banking subsidiary, The Park National Bank, reported net income of $36.3 million for the first quarter of 2023, a 12.5 percent decrease compared to $41.5 million for the same period of 2022.

“Recent events in the financial industry have created some uncertainty,” Trautman said. “At Park, we govern our finances with discipline and a conservative spirit that ensures we safeguard the hard-earned money entrusted to us. Our capital position and liquidity remain strong. Our bankers are available and welcome conversations about the strength of our bank and the financial industry. We value the confidence our communities have in us.”

Headquartered in Newark, Ohio, Park National Corporation has $9.9 billion in total assets (as of March 31, 2023). 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:

•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, that may reflect deterioration in business and economic conditions, including the effects of higher unemployment rates, an acceleration in the pace of inflation, interest rate fluctuations, changes in the economy or global supply chain, supply-demand imbalances affecting local real estate prices, U.S. fiscal debt, budget and tax matters, geopolitical matters (including the impact of
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com


the Russia-Ukraine conflict and associated sanctions and export controls), 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 net 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 behaviors, 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;
•Park's ability to meet heightened supervisory requirements and expectations;
•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;
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com


•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 the 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, the costs and effects of unfavorable resolution of regulatory and other governmental examinations or other inquiries, and liabilities and business restrictions resulting from litigation and regulatory investigations;
•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;
•a continuation of recent turmoil in the banking industry, and the impact of responsive measures to mitigate and manage such turmoil, including potential increased supervisory and regulatory actions and costs;
•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, 2022.

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 March 31, 2023, December 31, 2022, and March 31, 2022     
       
 202320222022 Percent change vs.
(in thousands, except common share and per common share data and ratios)1st QTR4th QTR1st QTR 4Q '221Q '22
INCOME STATEMENT:     
Net interest income$92,198 $94,606 $77,686  (2.5) %18.7  %
Provision for (recovery of) credit losses183 2,981 (4,605) (93.9) %N.M.
Other income24,387 26,392 31,656  (7.6) %(23.0) %
Other expense76,503 77,654 67,373  (1.5) %13.6  %
Income before income taxes$39,899 $40,363 $46,574  (1.1)%(14.3) %
Income taxes6,166 7,279 7,699  (15.3)%(19.9) %
Net income$33,733 $33,084 $38,875  2.0 %(13.2) %
     
MARKET DATA:     
Earnings per common share - basic (a)$2.08 $2.03 $2.40  2.5 %(13.3)%
Earnings per common share - diluted (a)2.07 2.02 2.38  2.5 %(13.0)%
Quarterly cash dividend declared per common share1.05 1.04 1.04  1.0 %1.0 %
Special cash dividend declared per common share— 0.50 — N.M.N.M.
Book value per common share at period end66.91 65.74 66.24  1.8 %1.0 %
Market price per common share at period end118.57 140.75 131.38  (15.8)%(9.8)%
Market capitalization at period end1,917,759 2,289,099 2,134,834  (16.2)%(10.2)%
    
Weighted average common shares - basic (b)16,242,353 16,261,136 16,219,889  (0.1)%0.1 %
Weighted average common shares - diluted (b)16,324,823 16,393,179 16,331,031  (0.4)%— %
Common shares outstanding at period end16,174,067 16,263,583 16,249,308  (0.6)%(0.5)%
    
PERFORMANCE RATIOS: (annualized)   
Return on average assets (a)(b)1.36 %1.28 %1.60  % 6.3  %(15.0) %
Return on average shareholders' equity (a)(b)12.54 %12.44 %14.26  % 0.8  %(12.1) %
Yield on loans5.24 %5.00 %4.31  % 4.8  %21.6  %
Yield on investment securities3.60 %3.25 %2.11  % 10.8  %70.6  %
Yield on money market instruments4.70 %3.63 %0.17  % 29.5  %2,664.7  %
Yield on interest earning assets4.89 %4.57 %3.71  % 7.0  %31.8  %
Cost of interest bearing deposits1.15 %0.81 %0.08  % 42.0  %1,337.5  %
Cost of borrowings3.24 %2.88 %2.35  % 12.5  %37.9  %
Cost of paying interest bearing liabilities1.29 %0.95 %0.25  % 35.8  %416.0  %
Net interest margin (g)4.08 %3.98 %3.55  % 2.5  %14.9  %
Efficiency ratio (g)65.10 %63.69 %61.16  % 2.2  %6.4  %
    
OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Tangible book value per common share (d)$56.69 $55.56 $55.98 2.0  %1.3  %
Average interest earning assets9,267,418 9,517,746 8,959,109 (2.6) %3.4  %
Pre-tax, pre-provision net income (k)40,082 43,344 41,969 (7.5) %(4.5) %
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 March 31, 2023, December 31, 2022, and March 31, 2022     
    Percent change vs.
(in thousands, except ratios)March 31, 2023December 31, 2022March 31, 2022 4Q '221Q '22
BALANCE SHEET:    
Investment securities$1,800,410 $1,820,787 $1,832,274  (1.1) %(1.7) %
Loans7,093,857 7,141,891 6,821,606  (0.7) %4.0  %
Allowance for credit losses85,946 85,379 78,861  0.7  %9.0  %
Goodwill and other intangible assets165,243 165,570 166,655  (0.2) %(0.8) %
Other real estate owned (OREO)1,468 1,354 760  8.4  %93.2  %
Total assets9,856,981 9,854,993 9,576,352  —  %2.9  %
Total deposits8,294,444 8,234,715 7,996,318  0.7  %3.7  %
Borrowings360,843 416,009 394,249  (13.3) %(8.5) %
Total shareholders' equity1,082,153 1,069,226 1,076,366  1.2  %0.5  %
Tangible equity (d)916,910 903,656 909,711  1.5  %0.8  %
Total nonperforming loans (l)74,365 101,111 86,891  (26.5) %(14.4) %
Total nonperforming assets (l)75,833 102,465 87,651  (26.0) %(13.5) %
    
ASSET QUALITY RATIOS:   
Loans as a % of period end total assets71.97 %72.47 %71.23 % (0.7) %1.0  %
Total nonperforming loans as a % of period end loans1.05 %1.42 %1.27 % (26.1) %(17.3) %
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets1.07 %1.43 %1.28 % (25.2) %(16.4) %
Allowance for credit losses as a % of period end loans1.21 %1.20 %1.16 % 0.8  %4.3  %
Net loan (recoveries) charge-offs $(1)$1,563 $(269) (100.1) %(99.6) %
Annualized net loan (recoveries) charge-offs as a % of average loans (b)—  %0.09  %(0.02) % (100.0) %(100.0) %
    
CAPITAL & LIQUIDITY:   
Total shareholders' equity / Period end total assets10.98  %10.85  %11.24  % 1.2  %(2.3) %
Tangible equity (d) / Tangible assets (f)9.46  %9.33  %9.67  % 1.4  %(2.2) %
Average shareholders' equity / Average assets (b)10.85  %10.27  %11.25  % 5.6  %(3.6) %
Average shareholders' equity / Average loans (b)15.37  %14.85  %16.19  % 3.5  %(5.1) %
Average loans / Average deposits (b)84.04  %81.87  %83.32  % 2.7  %0.9  %
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
March 31
(in thousands, except share and per share data)20232022
Interest income:
   Interest and fees on loans$91,614 $72,416 
   Interest on debt securities:
Taxable12,979 6,130 
Tax-exempt2,912 2,447 
   Other interest income3,396 153 
         Total interest income110,901 81,146 
Interest expense:
   Interest on deposits:
      Demand and savings deposits14,212 351 
      Time deposits1,347 720 
   Interest on borrowings3,144 2,389 
      Total interest expense18,703 3,460 
         Net interest income92,198 77,686 
Provision for (recovery of) credit losses183 (4,605)
         Net interest income after provision for (recovery of) credit losses92,015 82,291 
Other income24,387 31,656 
Other expense76,503 67,373 
         Income before income taxes39,899 46,574 
Income taxes6,166 7,699 
         Net income$33,733 $38,875 
Per common share:
         Net income - basic$2.08 $2.40 
         Net income - diluted$2.07 $2.38 
         Weighted average common shares - basic16,242,353 16,219,889 
         Weighted average common shares - diluted16,324,823 16,331,031 
        Cash dividends declared:
Quarterly dividend$1.05 $1.04 



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

 
PARK NATIONAL CORPORATION 
Consolidated Balance Sheets
   
(in thousands, except share data)March 31, 2023December 31, 2022
  
Assets 
  
Cash and due from banks$146,155 $156,750 
Money market instruments115,764 32,978 
Investment securities1,800,410 1,820,787 
Loans7,093,857 7,141,891 
Allowance for credit losses(85,946)(85,379)
Loans, net7,007,911 7,056,512 
Bank premises and equipment, net81,223 82,126 
Goodwill and other intangible assets165,243 165,570 
Other real estate owned1,468 1,354 
Other assets538,807 538,916 
Total assets$9,856,981 $9,854,993 
  
Liabilities and Shareholders' Equity 
  
Deposits:
Noninterest bearing$2,922,242 $3,074,276 
Interest bearing5,372,202 5,160,439 
Total deposits8,294,444 8,234,715 
Borrowings360,843 416,009 
Other liabilities119,541 135,043 
Total liabilities$8,774,828 $8,785,767 
  
  
Shareholders' Equity: 
Preferred shares (200,000 shares authorized; no shares outstanding at March 31, 2023 and December 31, 2022)$— $— 
Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at March 31, 2023 and December 31, 2022)459,431 462,404 
Accumulated other comprehensive loss, net of taxes(90,033)(102,394)
Retained earnings862,518 847,235 
Treasury shares (1,449,037 shares at March 31, 2023 and 1,359,521 shares at December 31, 2022)(149,763)(138,019)
Total shareholders' equity$1,082,153 $1,069,226 
Total liabilities and shareholders' equity$9,856,981 $9,854,993 


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

 
PARK NATIONAL CORPORATION 
Consolidated Average Balance Sheets
   
 Three Months Ended
 March 31,
(in thousands)20232022
   
Assets  
   
Cash and due from banks$155,582 $168,726 
Money market instruments292,948 360,103 
Investment securities 1,806,679 1,801,527 
Loans7,099,240 6,829,336 
Allowance for credit losses(86,809)(83,434)
Loans, net7,012,431 6,745,902 
Bank premises and equipment, net82,047 88,739 
Goodwill and other intangible assets165,457 166,918 
Other real estate owned1,434 759 
Other assets542,302 492,708 
Total assets$10,058,880 $9,825,382 
   
   
Liabilities and Shareholders' Equity  
   
Deposits:
Noninterest bearing$2,970,470 $3,025,991 
Interest bearing5,476,661 5,170,296 
Total deposits8,447,131 8,196,287 
Borrowings393,198 411,424 
Other liabilities127,599 112,131 
Total liabilities$8,967,928 $8,719,842 
   
Shareholders' Equity:  
Preferred shares$— $— 
Common shares462,562 461,798 
Accumulated other comprehensive loss, net of taxes(96,240)(1,719)
Retained earnings865,276 787,917 
Treasury shares(140,646)(142,456)
Total shareholders' equity$1,090,952 $1,105,540 
Total liabilities and shareholders' equity$10,058,880 $9,825,382 



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

 
PARK NATIONAL CORPORATION 
Consolidated Statements of Income - Linked Quarters
    
 20232022202220222022
(in thousands, except per share data)1st QTR4th QTR3rd QTR2nd QTR1st QTR
  
Interest income: 
Interest and fees on loans $91,614 $89,382 $83,522 $77,787 $72,416 
Interest on debt securities:
Taxable12,979 11,974 10,319 7,624 6,130 
Tax-exempt2,912 2,918 2,923 2,676 2,447 
Other interest income3,396 4,536 3,180 260 153 
Total interest income110,901 108,810 99,944 88,347 81,146 
  
Interest expense: 
Interest on deposits:
Demand and savings deposits14,212 10,205 5,757 1,333 351 
Time deposits1,347 1,061 825 708 720 
Interest on borrowings3,144 2,938 2,534 2,367 2,389 
Total interest expense18,703 14,204 9,116 4,408 3,460 
  
Net interest income92,198 94,606 90,828 83,939 77,686 
  
Provision for (recovery of) credit losses183 2,981 3,190 2,991 (4,605)
  
Net interest income after provision for (recovery of) credit losses92,015 91,625 87,638 80,948 82,291 
  
Other income24,387 26,392 46,694 31,193 31,656 
Other expense76,503 77,654 82,903 70,048 67,373 
  
Income before income taxes39,899 40,363 51,429 42,093 46,574 
  
Income taxes6,166 7,279 9,361 7,769 7,699 
 
Net income $33,733 $33,084 $42,068 $34,324 $38,875 
  
Per common share:
Net income - basic$2.08 $2.03 $2.59 $2.11 $2.40 
Net income - diluted$2.07 $2.02 $2.57 $2.10 $2.38 




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
    
 20232022202220222022
(in thousands)1st QTR4th QTR3rd QTR2nd QTR1st QTR
 
Other income:
Income from fiduciary activities$8,615 $8,219 $8,216 $8,859 $8,797 
Service charges on deposit accounts2,241 2,595 2,859 2,563 2,074 
Other service income2,697 2,580 2,956 4,940 4,819 
Debit card fee income6,457 6,675 6,514 6,731 6,126 
Bank owned life insurance income1,185 1,366 1,185 2,374 1,175 
ATM fees533 548 610 583 532 
(Loss) gain on the sale of OREO, net(9)— 5,607 4 — 
OREO valuation markup15 — 12,009 — 30 
(Loss) gain on equity securities, net(405)(165)58 709 2,353 
Other components of net periodic benefit income1,893 3,027 3,027 3,027 3,027 
Miscellaneous1,165 1,547 3,653 1,403 2,723 
Total other income$24,387 $26,392 $46,694 $31,193 $31,656 
 
Other expense:
Salaries$34,871 $33,837 $37,889 $31,052 $30,521 
Employee benefits10,816 9,895 9,897 10,199 10,499 
Occupancy expense3,353 4,157 3,455 3,040 3,214 
Furniture and equipment expense3,246 3,118 2,912 2,934 2,937 
Data processing fees8,750 8,537 8,170 8,416 7,504 
Professional fees and services7,221 9,845 8,359 6,775 5,858 
Marketing1,319 1,404 1,595 1,019 1,317 
Insurance1,814 1,526 1,237 1,245 1,405 
Communication1,037 968 1,098 935 890 
State tax expense1,278 1,040 1,186 1,167 1,192 
Amortization of intangible assets327 341 341 403 402 
Foundation contributions— — 4,000 — — 
Miscellaneous2,471 2,986 2,764 2,863 1,634 
Total other expense$76,503 $77,654 $82,903 $70,048 $67,373 



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)March 31, 202320222021202020192018
 
Allowance for credit losses:
Allowance for credit losses, beginning of period$85,379 $83,197 $85,675 $56,679 $51,512 $49,988 
Cumulative change in accounting principle; adoption of ASU 2022-02 in 2023 and ASU 2016-13 in 2021383 — 6,090 — — — 
Charge-offs2,235 9,133 5,093 10,304 11,177 13,552 
Recoveries2,236 6,758 8,441 27,246 10,173 7,131 
Net (recoveries) charge-offs (1)2,375 (3,348)(16,942)1,004 6,421 
Provision for (recovery of) credit losses183 4,557 (11,916)12,054 6,171 7,945 
Allowance for credit losses, end of period$85,946 $85,379 $83,197 $85,675 $56,679 $51,512 
General reserve trends:
Allowance for credit losses, end of period$85,946 $85,379 $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 collectively evaluated loans (for years 2020 and prior)N.A.N.A.N.A.678 — — 
Specific reserves on individually evaluated loans4,318 3,566 1,616 5,434 5,230 2,273 
General reserves on collectively evaluated loans$81,628 $81,813 $81,581 $79,396 $51,181 $49,239 
 
Total loans$7,093,857 $7,141,891 $6,871,122 $7,177,785 $6,501,404 $5,692,132 
PCD loans (PCI loans for years 2020 and prior)4,555 4,653 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.360,056 548,436 225,029 
Individually evaluated loans (l)59,384 78,341 74,502 108,407 77,459 48,135 
Collectively evaluated loans$7,029,918 $7,058,897 $6,789,471 $6,698,169 $5,861,178 $5,415,025 
 
Asset Quality Ratios:
Net (recoveries) charge-offs as a % of average loans—  %0.03  %(0.05) %(0.24) %0.02  %0.12  %
Allowance for credit losses as a % of period end loans 1.21  %1.20  %1.21  %1.19  %0.87  %0.90  %
Allowance for credit losses as a % of period end loans (excluding PPP loans) (j)1.21 %1.20 %1.22 %1.25 %N.A.N.A.
General reserve as a % of collectively evaluated loans 1.16  %1.16  %1.20  %1.19  %0.87  %0.91  %
General reserves as a % of collectively evaluated loans (excluding PPP loans) (j)1.16 %1.16 %1.21 %1.24 %N.A.N.A.
 
Nonperforming assets:
Nonaccrual loans$73,114 $79,696 $72,722 $117,368 $90,080 $67,954 
Accruing troubled debt restructurings (for years 2022 and prior) (l)N.A.20,134 28,323 20,788 21,215 15,173 
Loans past due 90 days or more1,251 1,281 1,607 1,458 2,658 2,243 
Total nonperforming loans$74,365 $101,111 $102,652 $139,614 $113,953 $85,370 
Other real estate owned - Park National Bank114 — 181 837 3,100 2,788 
Other real estate owned - SEPH1,354 1,354 594 594 929 1,515 
Other nonperforming assets - Park National Bank— — 2,750 3,164 3,599 3,464 
Total nonperforming assets$75,833 $102,465 $106,177 $144,209 $121,581 $93,137 
Percentage of nonaccrual loans to period end loans1.03  %1.12  %1.06  %1.64  %1.39  %1.19  %
Percentage of nonperforming loans to period end loans1.05  %1.42  %1.49  %1.95  %1.75  %1.50  %
Percentage of nonperforming assets to period end loans1.07  %1.43  %1.55  %2.01  %1.87  %1.64  %
Percentage of nonperforming assets to period end total assets0.77  %1.04  %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)March 31, 202320222021202020192018
 
New nonaccrual loan information:
Nonaccrual loans, beginning of period$79,696 $72,722 $117,368 $90,080 $67,954 $72,056 
New nonaccrual loans9,207 64,918 38,478 103,386 81,009 76,611 
Resolved nonaccrual loans15,789 57,944 83,124 76,098 58,883 80,713 
Nonaccrual loans, end of period$73,114 $79,696 $72,722 $117,368 $90,080 $67,954 
 
Individually evaluated commercial loan portfolio information (period end): (l)
Unpaid principal balance$60,922 $80,116 $75,126 $109,062 $78,178 $59,381 
Prior charge-offs1,538 1,775 624 655 719 11,246 
Remaining principal balance59,384 78,341 74,502 108,407 77,459 48,135 
Specific reserves4,318 3,566 1,616 5,434 5,230 2,273 
Book value, after specific reserves$55,066 $74,775 $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
(in thousands, except share and per share data)March 31, 2023December 31, 2022March 31, 2022
Net interest income$92,198 $94,606 $77,686 
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions200 258 480 
less interest income on former Vision Bank relationships574 707 42 
Net interest income - adjusted$91,424 $93,641 $77,164 
Provision for (recovery of) credit losses$183 $2,981 $(4,605)
less recoveries on former Vision Bank relationships(723)(792)(1)
Provision for (recovery of) credit losses - adjusted$906 $3,773 $(4,604)
Other income$24,387 $26,392 $31,656 
less other service income related to former Vision Bank relationships135 285 — 
Other income - adjusted$24,252 $26,107 $31,656 
Other expense$76,503 $77,654 $67,373 
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions327 341 402 
less direct expenses related to collection of payments on former Vision Bank loan relationships100 100 — 
Other expense - adjusted$76,076 $77,213 $66,971 
Tax effect of adjustments to net income identified above (i)$(253)$(336)$(25)
Net income - reported$33,733 $33,084 $38,875 
Net income - adjusted (h)$32,781 $31,819 $38,779 
Diluted earnings per common share$2.07 $2.02 $2.38 
Diluted earnings per common share, adjusted (h)$2.01 $1.94 $2.37 
Annualized return on average assets (a)(b)1.36 %1.28 %1.60 %
Annualized return on average assets, adjusted (a)(b)(h)
1.32 %1.23 %1.60 %
Annualized return on average tangible assets (a)(b)(e)1.38 %1.30 %1.63 %
Annualized return on average tangible assets, adjusted (a)(b)(e)(h)1.34 %1.25 %1.63 %
Annualized return on average shareholders' equity (a)(b)12.54 %12.44 %14.26 %
Annualized return on average shareholders' equity, adjusted (a)(b)(h)12.19 %11.96 %14.23 %
Annualized return on average tangible equity (a)(b)(c)14.78 %14.75 %16.80 %
Annualized return on average tangible equity, adjusted (a)(b)(c)(h)14.36 %14.19 %16.76 %
Efficiency ratio (g)65.10 %63.69 %61.16 %
Efficiency ratio, adjusted (g)(h)65.24 %63.99 %61.08 %
Annualized net interest margin (g)4.08 %3.98 %3.55 %
Annualized net interest margin, adjusted (g)(h)4.04 %3.94 %3.53 %
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 March 31, 2023, December 31, 2022, and March 31, 2022, 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
 March 31, 2023December 31, 2022March 31, 2022
AVERAGE SHAREHOLDERS' EQUITY$1,090,952 $1,055,509 $1,105,540 
Less: Average goodwill and other intangible assets165,457 165,794 166,918 
AVERAGE TANGIBLE EQUITY$925,495 $889,715 $938,622 
(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:
 March 31, 2023December 31, 2022March 31, 2022
TOTAL SHAREHOLDERS' EQUITY$1,082,153 $1,069,226 $1,076,366 
Less: Goodwill and other intangible assets165,243 165,570 166,655 
TANGIBLE EQUITY$916,910 $903,656 $909,711 
    
(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
 March 31, 2023December 31, 2022March 31, 2022
AVERAGE ASSETS$10,058,880 $10,279,656 $9,825,382 
Less: Average goodwill and other intangible assets165,457 165,794 166,918 
AVERAGE TANGIBLE ASSETS$9,893,423 $10,113,862 $9,658,464 
(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:
 March 31, 2023December 31, 2022March 31, 2022
TOTAL ASSETS$9,856,981 $9,854,993 $9,576,352 
Less: Goodwill and other intangible assets165,243 165,570 166,655 
TANGIBLE ASSETS$9,691,738 $9,689,423 $9,409,697 
    
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
 March 31, 2023December 31, 2022March 31, 2022
Interest income$110,901 $108,810 $81,146 
Fully taxable equivalent adjustment926 918 819 
Fully taxable equivalent interest income$111,827 $109,728 $81,965 
Interest expense18,703 14,204 3,460 
Fully taxable equivalent net interest income$93,124 $95,524 $78,505 
(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, other expense and income taxes.
(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.
(j) Excludes $3.4 million of PPP loans and $3,000 in related allowance at March 31, 2023, $4.2 million of PPP loans and $4,000 in related allowance at December 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) 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
March 31, 2023December 31, 2022March 31, 2022
Net income$33,733 $33,084 $38,875 
Plus: Income taxes6,166 7,279 7,699 
Plus: Provision for (recovery of) credit losses183 2,981 (4,605)
Pre-tax, pre-provision net income$40,082 $43,344 $41,969 
(l) Effective January 1, 2023, Park adopted Accounting Standards Update ("ASU") 2022-02. Among other things, this ASU eliminated the concept of troubled debt restructurings ("TDRs"). As a result of the adoption of this ASU and elimination of the concept of TDRs, total nonperforming loans ("NPLs") and total nonperforming assets ("NPAs") each decreased by $20.1 million during the three months ended March 31, 2023. Additionally, as a result of the adoption of this ASU, individually evaluated loans decreased by $11.5 million.
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com