EX-99.1 2 exhibit991earningsrelease4.htm EX-99.1 Document

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January 22, 2024                                        Exhibit 99.1

Park National Corporation reports 2023 results

NEWARK, Ohio ‒ Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the fourth quarter and the full year of 2023. Park's board of directors declared a quarterly cash dividend of $1.06 per common share, payable on March 8, 2024, to common shareholders of record as of February 16, 2024.

“We are pleased to end the year with solid loan growth for the third consecutive quarter and enter 2024 with strong asset quality,” Park Chairman and Chief Executive Officer David Trautman said. “Park bankers remain committed to providing robust financial solutions in all market conditions.”

Park’s net income for the fourth quarter of 2023 was $24.5 million, a 25.9 percent decrease from $33.1 million for the fourth quarter of 2022. Fourth quarter 2023 net income per diluted common share was $1.51, compared to $2.02 for the fourth quarter of 2022. Park’s net income for the full year of 2023 was $126.7 million, a 14.6 percent decrease from $148.4 million for the full year of 2022. Net income per diluted common share was $7.80 for the full year of 2023, compared to $9.06 for the full year of 2022.

Net income for the fourth quarter of 2023 and 2022 and the full year 2023 and 2022 included several items of income and expense that impacted comparability of prior results. These items are detailed in the "Financial Reconciliation" section of this report. Considering these items impacting comparability of prior results, Park's adjusted (non-gaap) net income for the fourth quarter of 2023 was $32.4 million, a 1.9 percent increase from adjusted (non-gaap) net income of $31.8 million for the fourth quarter of 2022. Park’s adjusted (non-gaap) net income for the full year of 2023 was $133.9 million, a 0.2 percent decrease from adjusted (non-gaap) net income of $134.2 million for the full year of 2022.

Park’s total loans increased 4.7 percent during 2023.

“The personal relationships our bankers build with customers and a substantial core deposit base are pivotal factors impacting our stable net interest margin and overall financial results,” said Park President Matthew Miller. “Our unwavering attention to these factors serves as a testament to our customers that we are a reliable and trustworthy financial partner.”

Headquartered in Newark, Ohio, Park National Corporation has $9.8 billion in total assets (as of December 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: Michelle Hamilton, 740.349.6014, media@parknationalbank.com
Investor contact: Brady Burt, 740.322.6844, investor@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
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com


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 or labor shortages, the impact of persistent inflation, the impact of continued elevated interest rates, 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 the Russia-Ukraine conflict and associated sanctions and export controls as well as the Israel-Hamas conflict), and any slowdown in global economic growth, 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;
•the effect of monetary and other fiscal policies (including the impact of money supply, ongoing increasing 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, government shutdown, 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 and continued elevated interest rates;
•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;
•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 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 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;
•Park's ability to anticipate and respond to technological changes and Park's reliance on, and the potential failure of, a number of third-party vendors to perform as expected, including Park's primary core banking system provider, which can impact 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;
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com


•Park's 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 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 and the Israel-Hamas conflict) on the economy and financial markets generally and on us or our counterparties specifically;
•the potential further deterioration 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 which may increase our healthcare and other costs and negatively impact our operations and financial results;
•the impact of larger or similar-sized financial institutions encountering problems, such as the recent closures of Silicon Valley Bank in California, Signature Bank in New York, First Republic Bank in California, and Heartland Tri-State Bank in Kansas, which may adversely affect the banking industry and/or Park's business generation and retention, funding and liquidity, including potential increased regulatory requirements and increased reputational risk and potential impacts to macroeconomic conditions;
•Park's continued ability to grow deposits or maintain adequate deposit levels in light of the recent bank failures;
•unexpected outflows of deposits which may require Park to sell investment securities at a loss;
•and other risk factors relating to the financial services 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, in "Item 1A. Risk Factors" of Part II of Park's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023, in "Item 1A. Risk Factors" of Part II of Park's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023 and in "Item 1A. Risk Factors" of Part II of Park's Quarterly Report on Form 10-Q for the quarterly period ended September, 30, 2023.

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 December 31, 2023, September 30, 2023 and December 31, 2022     
       
 202320232022 Percent change vs.
(in thousands, except common share and per common share data and ratios)4th QTR3rd QTR4th QTR 3Q '234Q '22
INCOME STATEMENT:     
Net interest income$95,074 $94,269 $94,606  0.9  %0.5  %
Provision for (recovery of) credit losses1,809 (1,580)2,981  N.M.N.M.
Other income15,519 27,713 26,392  (44.0) %(41.2) %
Other expense79,043 77,808 77,654  1.6  %1.8  %
Income before income taxes$29,741 $45,754 $40,363  (35.0)%(26.3) %
Income taxes5,241 8,837 7,279  (40.7)%(28.0) %
Net income$24,500 $36,917 $33,084  (33.6)%(25.9) %
     
MARKET DATA:     
Earnings per common share - basic (a)$1.52 $2.29 $2.03  (33.6)%(25.1)%
Earnings per common share - diluted (a)1.51 2.28 2.02  (33.8)%(25.2)%
Quarterly cash dividend declared per common share1.05 1.05 1.04  — %1.0 %
Special cash dividend declared per common share— — 0.50 N.M.N.M.
Book value per common share at period end71.06 67.41 65.74  5.4 %8.1 %
Market price per common share at period end132.86 94.52 140.75  40.6 %(5.6)%
Market capitalization at period end2,141,235 1,522,096 2,289,099  40.7 %(6.5)%
    
Weighted average common shares - basic (b)16,113,215 16,133,310 16,261,136  (0.1)%(0.9)%
Weighted average common shares - diluted (b)16,216,562 16,217,880 16,393,179  — %(1.1)%
Common shares outstanding at period end16,116,479 16,103,425 16,263,583  0.1 %(0.9)%
    
PERFORMANCE RATIOS: (annualized)   
Return on average assets (a)(b)0.98 %1.47 %1.28  % (33.3) %(23.4) %
Return on average shareholders' equity (a)(b)8.81 %13.28 %12.44  % (33.7) %(29.2) %
Yield on loans5.84 %5.65 %5.00  % 3.4  %16.8  %
Yield on investment securities3.88 %3.73 %3.25  % 4.0  %19.4  %
Yield on money market instruments5.30 %5.34 %3.63  % (0.7) %46.0  %
Yield on interest earning assets5.48 %5.27 %4.57  % 4.0  %19.9  %
Cost of interest bearing deposits1.84 %1.63 %0.81  % 12.9  %127.2  %
Cost of borrowings4.42 %3.92 %2.88  % 12.8  %53.5  %
Cost of paying interest bearing liabilities2.01 %1.76 %0.95  % 14.2  %111.6  %
Net interest margin (g)4.17 %4.12 %3.98  % 1.2  %4.8  %
Efficiency ratio (g)70.93 %63.25 %63.69  % 12.1  %11.4  %
    
OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Tangible book value per common share (d)$60.87 $57.19 $55.56 6.4  %9.6  %
Average interest earning assets9,120,407 9,178,281 9,517,746 (0.6) %(4.2) %
Pre-tax, pre-provision net income (k)31,550 44,174 43,344 (28.6) %(27.2) %
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 December 31, 2023, September 30, 2023 and December 31, 2022     
    Percent change vs.
(in thousands, except ratios)December 31, 2023September 30, 2023December 31, 2022 3Q '234Q '22
BALANCE SHEET:    
Investment securities$1,429,144 $1,708,827 $1,820,787  (16.4) %(21.5) %
Loans7,476,221 7,349,745 7,141,891  1.7  %4.7  %
Allowance for credit losses83,745 84,602 85,379  (1.0) %(1.9) %
Goodwill and other intangible assets164,247 164,581 165,570  (0.2) %(0.8) %
Other real estate owned (OREO)983 1,354 1,354  (27.4) %(27.4) %
Total assets9,836,453 10,000,914 9,854,993  (1.6) %(0.2) %
Total deposits8,042,566 8,244,724 8,234,715  (2.5) %(2.3) %
Borrowings517,329 541,811 416,009  (4.5) %24.4  %
Total shareholders' equity1,145,293 1,085,564 1,069,226  5.5  %7.1  %
Tangible equity (d)981,046 920,983 903,656  6.5  %8.6  %
Total nonperforming loans (l)61,118 55,635 101,111  9.9  %(39.6) %
Total nonperforming assets (l)62,101 56,989 102,465  9.0  %(39.4) %
    
ASSET QUALITY RATIOS:   
Loans as a % of period end total assets76.01 %73.49 %72.47 % 3.4  %4.9  %
Total nonperforming loans as a % of period end loans0.82 %0.76 %1.42 % 7.9  %(42.3) %
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets0.83 %0.78 %1.43 % 6.4  %(42.0) %
Allowance for credit losses as a % of period end loans1.12 %1.15 %1.20 % (2.6) %(6.7) %
Net loan charge-offs $2,666 $1,024 $1,563  160.4  %70.6  %
Annualized net loan charge-offs as a % of average loans (b)0.14  %0.06  %0.09  % 133.3  %55.6  %
    
CAPITAL & LIQUIDITY:   
Total shareholders' equity / Period end total assets11.64  %10.85  %10.85  % 7.3  %7.3  %
Tangible equity (d) / Tangible assets (f)10.14  %9.36  %9.33  % 8.3  %8.7  %
Average shareholders' equity / Average assets (b)11.16  %11.07  %10.27  % 0.8  %8.7  %
Average shareholders' equity / Average loans (b)14.94  %15.17  %14.85  % (1.5) %0.6  %
Average loans / Average deposits (b)89.48  %86.69  %81.87  % 3.2  %9.3  %
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
Year ended December 31, 2023 and December 31, 2022   
     
  
(in thousands, except share and per share data)20232022 Percent change vs '22
INCOME STATEMENT:  
Net interest income$373,113 $347,059  7.5  %
Provision for credit losses2,904 4,557  (36.3) %
Other income92,634 135,935  (31.9) %
Other expense309,239 297,978  3.8  %
Income before income taxes$153,604 $180,459  (14.9)%
Income taxes26,870 32,108  (16.3)%
Net income$126,734 $148,351  (14.6)%
    
MARKET DATA:   
Earnings per common share - basic (a)$7.84 $9.13  (14.1)%
Earnings per common share - diluted (a)7.80 9.06  (13.9)%
Quarterly cash dividends declared per common share4.20 4.16  1.0 %
Special cash dividends declared per common share— 0.50 N.M.
   
Weighted average common shares - basic (b)16,163,500 16,246,009  (0.5)%
Weighted average common shares - diluted (b)16,250,019 16,365,309  (0.7)%
   
PERFORMANCE RATIOS:   
Return on average assets (a)(b)1.27 %1.48 % (14.2) %
Return on average shareholders' equity (a)(b)11.55 %13.78 % (16.2) %
Yield on loans5.55 %4.65 % 19.4  %
Yield on investment securities3.73 %2.66 % 40.2  %
Yield on money market instruments5.00 %2.07 % 141.5  %
Yield on interest earning assets5.18 %4.14 % 25.1  %
Cost of interest bearing deposits1.52 %0.39 % 289.7  %
Cost of borrowings3.79 %2.59 % 46.3  %
Cost of paying interest bearing liabilities1.67 %0.54 % 209.3  %
Net interest margin (g)4.11 %3.80 % 8.2  %
Efficiency ratio (g)65.87 %61.24 % 7.6  %
   
ASSET QUALITY RATIOS
Net loan charge-offs$4,921 $2,375 107.2  %
Net loan charge-offs as a % of average loans (b)0.07 %0.03 %133.3  %
CAPITAL & LIQUIDITY
Average shareholders' equity / Average assets (b)11.02 %10.72 % 2.8  %
Average shareholders' equity / Average loans (b)15.19 %15.48 %(1.9) %
Average loans / Average deposits (b)86.39 %82.32 %4.9  %
OTHER DATA (NON-GAAP) AND BALANCE SHEET:
Average interest earning assets$9,171,721 $9,227,377  (0.6) %
Pre-tax, pre-provision net income (k)156,508 185,016 (15.4) %
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 EndedTwelve Months Ended
December 31December 31
(in thousands, except share and per share data)2023202220232022
Interest income:
   Interest and fees on loans$108,495 $89,382 $399,795 $323,107 
   Interest on debt securities:
Taxable13,055 11,974 52,786 36,047 
Tax-exempt2,248 2,918 10,966 10,964 
   Other interest income1,408 4,536 8,123 8,129 
         Total interest income125,206 108,810 471,670 378,247 
Interest expense:
   Interest on deposits:
      Demand and savings deposits19,467 10,205 71,776 17,646 
      Time deposits6,267 1,061 12,677 3,314 
   Interest on borrowings4,398 2,938 14,104 10,228 
      Total interest expense30,132 14,204 98,557 31,188 
         Net interest income95,074 94,606 373,113 347,059 
Provision for credit losses1,809 2,981 2,904 4,557 
         Net interest income after provision for credit losses93,265 91,625 370,209 342,502 
Other income15,519 26,392 92,634 135,935 
Other expense79,043 77,654 309,239 297,978 
         Income before income taxes29,741 40,363 153,604 180,459 
Income taxes5,241 7,279 26,870 32,108 
         Net income$24,500 $33,084 $126,734 $148,351 
Per common share:
         Net income - basic$1.52 $2.03 $7.84 $9.13 
         Net income - diluted$1.51 $2.02 $7.80 $9.06 
         Weighted average common shares - basic16,113,215 16,261,136 16,163,500 16,246,009 
         Weighted average common shares - diluted16,216,562 16,393,719 16,250,019 16,365,309 
        Cash dividends declared:
Quarterly dividend$1.05 $1.04 $4.20 $4.16 
Special dividend$— $0.50 $— $0.50 



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

 
PARK NATIONAL CORPORATION 
Consolidated Balance Sheets
   
(in thousands, except share data)December 31, 2023December 31, 2022
  
Assets 
  
Cash and due from banks$160,477 $156,750 
Money market instruments57,791 32,978 
Investment securities1,429,144 1,820,787 
Loans7,476,221 7,141,891 
Allowance for credit losses(83,745)(85,379)
Loans, net7,392,476 7,056,512 
Bank premises and equipment, net74,211 82,126 
Goodwill and other intangible assets164,247 165,570 
Other real estate owned983 1,354 
Other assets557,124 538,916 
Total assets$9,836,453 $9,854,993 
  
Liabilities and Shareholders' Equity 
  
Deposits:
Noninterest bearing$2,628,234 $3,074,276 
Interest bearing5,414,332 5,160,439 
Total deposits8,042,566 8,234,715 
Borrowings517,329 416,009 
Other liabilities131,265 135,043 
Total liabilities$8,691,160 $8,785,767 
  
  
Shareholders' Equity: 
Preferred shares (200,000 shares authorized; no shares outstanding at December 31, 2023 and December 31, 2022)$— $— 
Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at December 31, 2023 and December 31, 2022)463,280 462,404 
Accumulated other comprehensive loss, net of taxes(66,191)(102,394)
Retained earnings903,877 847,235 
Treasury shares (1,506,625 shares at December 31, 2023 and 1,359,521 shares at December 31, 2022)(155,673)(138,019)
Total shareholders' equity$1,145,293 $1,069,226 
Total liabilities and shareholders' equity$9,836,453 $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 EndedTwelve Months Ended
 December 31,December 31,
(in thousands)2023202220232022
   
Assets  
   
Cash and due from banks$134,593 $145,040 $147,414 $157,295 
Money market instruments105,425 495,350 162,544 392,256 
Investment securities 1,544,942 1,811,403 1,716,037 1,843,484 
Loans7,387,512 7,108,956 7,222,479 6,955,674 
Allowance for credit losses(85,493)(83,478)(87,002)(81,736)
Loans, net7,302,019 7,025,478 7,135,477 6,873,938 
Bank premises and equipment, net76,718 83,992 79,443 86,322 
Goodwill and other intangible assets164,466 165,794 164,960 166,337 
Other real estate owned1,342 1,354 1,654 1,161 
Other assets560,683 551,245 550,025 523,415 
Total assets$9,890,188 $10,279,656 $9,957,554 $10,044,208 
   
   
Liabilities and Shareholders' Equity  
   
Deposits:
Noninterest bearing$2,694,148 $3,134,544 $2,814,259 $3,093,019 
Interest bearing5,561,845 5,548,542 5,546,015 5,356,809 
Total deposits8,255,993 8,683,086 8,360,274 8,449,828 
Borrowings394,423 405,146 371,955 395,515 
Other liabilities136,046 135,915 128,182 121,986 
Total liabilities$8,786,462 $9,224,147 $8,860,411 $8,967,329 
   
Shareholders' Equity:  
Preferred shares$— $— $— $— 
Common shares461,864 461,391 460,973 460,696 
Accumulated other comprehensive loss, net of taxes(108,219)(121,416)(98,154)(65,374)
Retained earnings906,091 853,802 884,711 821,382 
Treasury shares(156,010)(138,268)(150,387)(139,825)
Total shareholders' equity$1,103,726 $1,055,509 $1,097,143 $1,076,879 
Total liabilities and shareholders' equity$9,890,188 $10,279,656 $9,957,554 $10,044,208 



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

 
PARK NATIONAL CORPORATION 
Consolidated Statements of Income - Linked Quarters
    
 20232023202320232022
(in thousands, except per share data)4th QTR3rd QTR2nd QTR1st QTR4th QTR
  
Interest income: 
Interest and fees on loans $108,495 $103,258 $96,428 $91,614 $89,382 
Interest on debt securities:
Taxable13,055 13,321 13,431 12,979 11,974 
Tax-exempt2,248 2,900 2,906 2,912 2,918 
Other interest income1,408 1,410 1,909 3,396 4,536 
Total interest income125,206 120,889 114,674 110,901 108,810 
  
Interest expense: 
Interest on deposits:
Demand and savings deposits19,467 20,029 18,068 14,212 10,205 
Time deposits6,267 3,097 1,966 1,347 1,061 
Interest on borrowings4,398 3,494 3,068 3,144 2,938 
Total interest expense30,132 26,620 23,102 18,703 14,204 
  
Net interest income95,074 94,269 91,572 92,198 94,606 
  
Provision for (recovery of) credit losses1,809 (1,580)2,492 183 2,981 
  
Net interest income after provision for (recovery of ) credit losses93,265 95,849 89,080 92,015 91,625 
  
Other income15,519 27,713 25,015 24,387 26,392 
Other expense79,043 77,808 75,885 76,503 77,654 
  
Income before income taxes29,741 45,754 38,210 39,899 40,363 
  
Income taxes5,241 8,837 6,626 6,166 7,279 
 
Net income $24,500 $36,917 $31,584 $33,733 $33,084 
  
Per common share:
Net income - basic$1.52 $2.29 $1.95 $2.08 $2.03 
Net income - diluted$1.51 $2.28 $1.94 $2.07 $2.02 




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
    
 20232023202320232022
(in thousands)4th QTR3rd QTR2nd QTR1st QTR4th QTR
 
Other income:
Income from fiduciary activities$8,943 $9,100 $8,816 $8,615 $8,219 
Service charges on deposit accounts2,054 2,109 2,041 2,241 2,595 
Other service income2,349 2,615 2,639 2,697 2,580 
Debit card fee income6,583 6,652 6,830 6,457 6,675 
Bank owned life insurance income1,373 1,448 1,332 1,185 1,366 
ATM fees517 575 553 533 548 
(Loss) gain on the sale of OREO, net— (6)12 (9)— 
Loss on sale of debt securities, net(7,875)— — — — 
Gain (loss) on equity securities, net353 998 25 (405)(165)
Other components of net periodic benefit income1,893 1,893 1,893 1,893 3,027 
Miscellaneous(671)2,329 874 1,180 1,547 
Total other income$15,519 $27,713 $25,015 $24,387 $26,392 
 
Other expense:
Salaries$36,192 $34,525 $33,649 $34,871 $33,837 
Employee benefits10,088 10,822 10,538 10,816 9,895 
Occupancy expense3,344 3,203 3,214 3,353 4,157 
Furniture and equipment expense2,824 3,060 3,103 3,246 3,118 
Data processing fees9,605 9,700 9,582 8,750 8,537 
Professional fees and services7,015 7,572 7,365 7,221 9,845 
Marketing1,716 1,197 1,239 1,319 1,404 
Insurance1,708 2,158 1,960 1,814 1,526 
Communication993 1,135 1,045 1,037 968 
State tax expense1,158 1,125 1,096 1,278 1,040 
Amortization of intangible assets334 334 328 327 341 
Foundation contributions1,000 — — — — 
Miscellaneous3,066 2,977 2,766 2,471 2,986 
Total other expense$79,043 $77,808 $75,885 $76,503 $77,654 



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)20232022202120202019
 
Allowance for credit losses:
Allowance for credit losses, beginning of period$85,379 $83,197 $85,675 $56,679 $51,512 
Cumulative change in accounting principle; adoption of ASU 2022-02 in 2023 and ASU 2016-13 in 2021383 — 6,090 — — 
Charge-offs10,863 9,133 5,093 10,304 11,177 
Recoveries5,942 6,758 8,441 27,246 10,173 
Net charge-offs (recoveries) 4,921 2,375 (3,348)(16,942)1,004 
Provision for (recovery of) credit losses2,904 4,557 (11,916)12,054 6,171 
Allowance for credit losses, end of period$83,745 $85,379 $83,197 $85,675 $56,679 
General reserve trends:
Allowance for credit losses, end of period$83,745 $85,379 $83,197 $85,675 $56,679 
Allowance on accruing 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 loans4,983 3,566 1,616 5,434 5,230 
General reserves on collectively evaluated loans$78,762 $81,813 $81,581 $79,396 $51,181 
 
Total loans$7,476,221 $7,141,891 $6,871,122 $7,177,785 $6,501,404 
Accruing PCD loans (PCI loans for years 2020 and prior)2,835 4,653 7,149 11,153 14,331 
Purchased loans excluded from collectively evaluated loans (for years 2020 and prior)N.A.N.A.N.A.360,056 548,436 
Individually evaluated loans (l)45,215 78,341 74,502 108,407 77,459 
Collectively evaluated loans$7,428,171 $7,058,897 $6,789,471 $6,698,169 $5,861,178 
 
Asset Quality Ratios:
Net charge-offs (recoveries) as a % of average loans0.07  %0.03  %(0.05) %(0.24) %0.02  %
Allowance for credit losses as a % of period end loans 1.12  %1.20  %1.21  %1.19  %0.87  %
Allowance for credit losses as a % of period end loans (excluding PPP loans) (j)1.12 %1.20 %1.22 %1.25 %N.A.
General reserve as a % of collectively evaluated loans 1.06  %1.16  %1.20  %1.19  %0.87  %
General reserves as a % of collectively evaluated loans (excluding PPP loans) (j)1.06 %1.16 %1.21 %1.24 %N.A.
 
Nonperforming assets:
Nonaccrual loans$60,259 $79,696 $72,722 $117,368 $90,080 
Accruing troubled debt restructurings (for years 2022 and prior) (l)N.A.20,134 28,323 20,788 21,215 
Loans past due 90 days or more859 1,281 1,607 1,458 2,658 
Total nonperforming loans$61,118 $101,111 $102,652 $139,614 $113,953 
Other real estate owned 983 1,354 775 1,431 4,029 
Other nonperforming assets — — 2,750 3,164 3,599 
Total nonperforming assets$62,101 $102,465 $106,177 $144,209 $121,581 
Percentage of nonaccrual loans to period end loans0.81  %1.12  %1.06  %1.64  %1.39  %
Percentage of nonperforming loans to period end loans0.82  %1.42  %1.49  %1.95  %1.75  %
Percentage of nonperforming assets to period end loans0.83  %1.43  %1.55  %2.01  %1.87  %
Percentage of nonperforming assets to period end total assets0.63  %1.04  %1.11  %1.55  %1.42  %
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)20232022202120202019
 
New nonaccrual loan information:
Nonaccrual loans, beginning of period$79,696 $72,722 $117,368 $90,080 $67,954 
New nonaccrual loans48,280 64,918 38,478 103,386 81,009 
Resolved nonaccrual loans67,717 57,944 83,124 76,098 58,883 
Nonaccrual loans, end of period$60,259 $79,696 $72,722 $117,368 $90,080 
 
Individually evaluated commercial loan portfolio information (period end): (l)
Unpaid principal balance$47,564 $80,116 $75,126 $109,062 $78,178 
Prior charge-offs2,349 1,775 624 655 719 
Remaining principal balance45,215 78,341 74,502 108,407 77,459 
Specific reserves4,983 3,566 1,616 5,434 5,230 
Book value, after specific reserves$40,232 $74,775 $72,886 $102,973 $72,229 
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 ENDEDTWELVE MONTHS ENDED
(in thousands, except share and per share data)December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
Net interest income$95,074 $94,269 $94,606 $373,113 $347,059 
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions124 145 258 633 1,780 
less interest income on former Vision Bank relationships35 9 707 631 3,703 
Net interest income - adjusted$94,915 $94,115 $93,641 $371,849 $341,576 
Provision for (recovery of) credit losses$1,809 $(1,580)$2,981 $2,904 $4,557 
less recoveries on former Vision Bank relationships— (40)(792)(788)(1,319)
Provision for (recovery of) credit losses - adjusted$1,809 $(1,540)$3,773 $3,692 $5,876 
Other income$15,519 $27,713 $26,392 $92,634 $135,935 
less loss on sale of debt securities, net(7,875)— — (7,875)— 
less write-downs on strategic initiatives(1,038)— — (1,038)— 
less Vision related gain on the sale of OREO, net— — — — 5,607 
less Vision related OREO valuation markup46 — — 46 12,009 
less other service income related to former Vision Bank relationships40 — 285 175 788 
Other income - adjusted$24,346 $27,713 $26,107 $101,326 $117,531 
Other expense$79,043 $77,808 $77,654 $309,239 $297,978 
less Foundation contribution1,000 — — 1,000 4,000 
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions334 334 341 1,323 1,487 
less direct expenses related to collection of payments on former Vision Bank loan relationships— — 100 100 1,761 
Other expense - adjusted$77,709 $77,474 $77,213 $306,816 $290,730 
Tax effect of adjustments to net income identified above (i)$2,100 $29 $(336)$1,903 $(3,771)
Net income - reported$24,500 $36,917 $33,084 $126,734 $148,351 
Net income - adjusted (h)$32,402 $37,028 $31,819 $133,894 $134,164 
Diluted earnings per common share$1.51 $2.28 $2.02 $7.80 $9.06 
Diluted earnings per common share, adjusted (h)$2.00 $2.28 $1.94 $8.24 $8.20 
Annualized return on average assets (a)(b)0.98 %1.47 %1.28 %1.27 %1.48 %
Annualized return on average assets, adjusted (a)(b)(h)
1.30 %1.47 %1.23 %1.34 %1.34 %
Annualized return on average tangible assets (a)(b)(e)1.00 %1.49 %1.30 %1.29 %1.50 %
Annualized return on average tangible assets, adjusted (a)(b)(e)(h)1.32 %1.50 %1.25 %1.37 %1.36 %
Annualized return on average shareholders' equity (a)(b)8.81 %13.28 %12.44 %11.55 %13.78 %
Annualized return on average shareholders' equity, adjusted (a)(b)(h)11.65 %13.32 %11.96 %12.20 %12.46 %
Annualized return on average tangible equity (a)(b)(c)10.35 %15.62 %14.75 %13.60 %16.29 %
Annualized return on average tangible equity, adjusted (a)(b)(c)(h)13.69 %15.66 %14.19 %14.36 %14.73 %
Efficiency ratio (g)70.93 %63.25 %63.69 %65.87 %61.24 %
Efficiency ratio, adjusted (g)(h)64.70 %63.05 %63.99 %64.34 %62.84 %
Annualized net interest margin (g)4.17 %4.12 %3.98 %4.11 %3.80 %
Annualized net interest margin, adjusted (g)(h)4.17 %4.11 %3.94 %4.09 %3.74 %
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 December 31, 2023, September 30, 2023, and December 31, 2022 and the twelve months ended December 31, 2023 and December 30, 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 ENDEDTWELVE MONTHS ENDED
 December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
AVERAGE SHAREHOLDERS' EQUITY$1,103,726 $1,102,677 $1,055,509 $1,097,143 $1,076,879 
Less: Average goodwill and other intangible assets164,466 164,801 165,794 164,960 166,337 
AVERAGE TANGIBLE EQUITY$939,260 $937,876 $889,715 $932,183 $910,542 
(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:
 December 31, 2023September 30, 2023December 31, 2022
TOTAL SHAREHOLDERS' EQUITY$1,145,293 $1,085,564 $1,069,226 
Less: Goodwill and other intangible assets164,247 164,581 165,570 
TANGIBLE EQUITY$981,046 $920,983 $903,656 
    
(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 ENDEDTWELVE MONTHS ENDED
 December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
AVERAGE ASSETS$9,890,188 $9,965,114 $10,279,656 $9,957,554 $10,044,208 
Less: Average goodwill and other intangible assets164,466 164,801 165,794 164,960 166,337 
AVERAGE TANGIBLE ASSETS$9,725,722 $9,800,313 $10,113,862 $9,792,594 $9,877,871 
(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:
 December 31, 2023September 30, 2023December 31, 2022
TOTAL ASSETS$9,836,453 $10,000,914 $9,854,993 
Less: Goodwill and other intangible assets164,247 164,581 165,570 
TANGIBLE ASSETS$9,672,206 $9,836,333 $9,689,423 
    
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 ENDEDTWELVE MONTHS ENDED
 December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
Interest income$125,206 $120,889 $108,810 $471,670 $378,247 
Fully taxable equivalent adjustment838 1,042 918 3,726 3,541 
Fully taxable equivalent interest income$126,044 $121,931 $109,728 $475,396 $381,788 
Interest expense30,132 26,620 14,204 98,557 31,188 
Fully taxable equivalent net interest income$95,912 $95,311 $95,524 $376,839 $350,600 
(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 tax effect of adjustments to net income.
(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.
(j) Excludes $2.1 million of PPP loans and $2,000 in related allowance at December 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 ENDEDTWELVE MONTHS ENDED
December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
Net income$24,500 $36,917 $33,084 $126,734 $148,351 
Plus: Income taxes5,241 8,837 7,279 26,870 32,108 
Plus: Provision for (recovery of) credit losses1,809 (1,580)2,981 2,904 4,557 
Pre-tax, pre-provision net income$31,550 $44,174 $43,344 $156,508 $185,016 
(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 effective January 1, 2023. Additionally, as a result of the adoption of this ASU, individually evaluated loans decreased by $11.5 million effective January 1, 2023.
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com