EX-99.1 2 exhibit991earningsrelease1.htm EX-99.1 Document

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April 19, 2024                                        Exhibit 99.1

Park National Corporation reports financial results
for first quarter 2024

NEWARK, Ohio ‒ Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the first quarter of 2024. Park's board of directors declared a quarterly cash dividend of $1.06 per common share, payable on June 10, 2024, to common shareholders of record as of May 17, 2024.

"Park bankers meet customers when, where and how they wish. In doing so, we remain alert to service opportunities of all types," said Park Chairman and Chief Executive Officer David Trautman. "Our consistent and predictable approach helps build long-lasting relationships that customers tell us they value."

Park’s net income for the first quarter of 2024 was $35.2 million, a 4.4 percent increase from $33.7 million for the first quarter of 2023. First quarter 2024 net income per diluted common share was $2.17, compared to $2.07 for the first quarter of 2023.

Park’s total loans increased 0.7 percent (2.6 percent annualized) during the first quarter of 2024 and increased 6.1% for the 12-month period ended March 31, 2024.

“We prioritize being readily available for customers and prospects, as highlighted by our loan growth over the most recent 12-month period,” said Park President Matthew Miller. “Our bankers find joy in serving others and look for opportunities to make a meaningful impact within each of our communities.”

Headquartered in Newark, Ohio, Park National Corporation has $9.9 billion in total assets (as of March 31, 2024). 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 to a number of risks and uncertainties, including those described in Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by our filings with the SEC. 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: (1) Park's ability to execute our business plan successfully and within the expected timeframe; (2) adverse changes in future economic and financial market conditions; (3) adverse changes in real estate values and liquidity in our primary market areas; (4) the financial health of our commercial borrowers; (5) adverse changes in federal, state and local governmental law and policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation, government shutdown, infrastructure spending and social programs; (6) changes in consumer spending, borrowing and saving habits; (7) our litigation and regulatory compliance exposure; (8) increased credit risk and higher credit losses resulting from loan concentrations; (9) competitive pressures among financial services organizations; (10) changes in accounting
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com


policies and practices as may be adopted by regulatory agencies; (11) Park's assumptions and estimates used in applying critical accounting policies and modeling which may prove unreliable, inaccurate or not predictive of actual results; (12) 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; (13) failures in or breaches of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers; (14) negative impacts 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; (15) effects of a fall in stock market prices on Park's asset and wealth management businesses; (16) continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; (17) the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties; (18) the impact of widespread natural and other disasters, pandemics, dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities on the economy and financial markets generally and on us or our counterparties specifically; (19) the potential further deterioration of the U.S. economy due to financial, political, or other shocks; (20) the effect of healthcare laws in the U.S. and potential changes for such laws that may increase our healthcare and other costs and negatively impact our operations and financial results; (21) the impact of larger or similar-sized financial institutions encountering problems that may adversely affect the banking industry; (22) and other risk factors relating to the financial services industry.

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, 2024, December 31, 2023 and March 31, 2023     
       
 202420232023 Percent change vs.
(in thousands, except common share and per common share data and ratios)1st QTR4th QTR1st QTR 4Q '231Q '23
INCOME STATEMENT:     
Net interest income$95,623 $95,074 $92,198  0.6  %3.7  %
Provision for credit losses2,180 1,809 183  20.5  %N.M.
Other income26,200 15,519 24,387  68.8  %7.4  %
Other expense77,228 79,043 76,503  (2.3) %0.9  %
Income before income taxes$42,415 $29,741 $39,899  42.6 %6.3  %
Income taxes7,211 5,241 6,166  37.6 %16.9  %
Net income$35,204 $24,500 $33,733  43.7 %4.4  %
     
MARKET DATA:     
Earnings per common share - basic (a)$2.18 $1.52 $2.08  43.4 %4.8 %
Earnings per common share - diluted (a)2.17 1.51 2.07  43.7 %4.8 %
Quarterly cash dividend declared per common share1.06 1.05 1.05  1.0 %1.0 %
Book value per common share at period end71.95 71.06 66.91  1.3 %7.5 %
Market price per common share at period end135.85 132.86 118.57  2.3 %14.6 %
Market capitalization at period end2,199,556 2,141,235 1,917,759  2.7 %14.7 %
    
Weighted average common shares - basic (b)16,116,842 16,113,215 16,242,353  — %(0.8)%
Weighted average common shares - diluted (b)16,191,065 16,216,562 16,324,823  (0.2)%(0.8)%
Common shares outstanding at period end16,149,523 16,116,479 16,174,067  0.2 %(0.2)%
    
PERFORMANCE RATIOS: (annualized)   
Return on average assets (a)(b)1.44 %0.98 %1.36  % 46.9  %5.9  %
Return on average shareholders' equity (a)(b)12.23 %8.81 %12.54  % 38.8  %(2.5) %
Yield on loans5.99 %5.84 %5.24  % 2.6  %14.3  %
Yield on investment securities3.90 %3.88 %3.60  % 0.5  %8.3  %
Yield on money market instruments5.48 %5.30 %4.70  % 3.4  %16.6  %
Yield on interest earning assets5.66 %5.48 %4.89  % 3.3  %15.7  %
Cost of interest bearing deposits1.94 %1.84 %1.15  % 5.4  %68.7  %
Cost of borrowings4.25 %4.42 %3.24  % (3.8) %31.2  %
Cost of paying interest bearing liabilities2.08 %2.01 %1.29  % 3.5  %61.2  %
Net interest margin (g)4.28 %4.17 %4.08  % 2.6  %4.9  %
Efficiency ratio (g)63.07 %70.93 %65.10  % (11.1) %(3.1) %
    
OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Tangible book value per common share (d)$61.80 $60.87 $56.69 1.5  %9.0  %
Average interest earning assets9,048,204 9,120,407 9,267,418 (0.8) %(2.4) %
Pre-tax, pre-provision net income (j)44,595 31,550 40,082 41.3  %11.3  %
Note: Explanations for footnotes (a) - (k) 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, 2024, December 31, 2023 and March 31, 2023     
    Percent change vs.
(in thousands, except ratios)March 31, 2024December 31, 2023March 31, 2023 4Q '231Q '23
BALANCE SHEET:    
Investment securities$1,339,747 $1,429,144 $1,800,410  (6.3) %(25.6) %
Loans7,525,005 7,476,221 7,093,857  0.7  %6.1  %
Allowance for credit losses85,084 83,745 85,946  1.6  %(1.0) %
Goodwill and other intangible assets163,927 164,247 165,243  (0.2) %(0.8) %
Other real estate owned (OREO)1,674 983 1,468  70.3  %14.0  %
Total assets9,881,077 9,836,453 9,856,981  0.5  %0.2  %
Total deposits8,306,032 8,042,566 8,294,444  3.3  %0.1  %
Borrowings295,130 517,329 360,843  (43.0) %(18.2) %
Total shareholders' equity1,161,979 1,145,293 1,082,153  1.5  %7.4  %
Tangible equity (d)998,052 981,046 916,910  1.7  %8.8  %
Total nonperforming loans 71,759 61,118 74,365  17.4  %(3.5) %
Total nonperforming assets73,433 62,101 75,833  18.2  %(3.2) %
    
ASSET QUALITY RATIOS:   
Loans as a % of period end total assets76.16 %76.01 %71.97 % 0.2  %5.8  %
Total nonperforming loans as a % of period end loans0.95 %0.82 %1.05 % 15.9  %(9.5) %
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets0.98 %0.83 %1.07 % 18.1  %(8.4) %
Allowance for credit losses as a % of period end loans1.13 %1.12 %1.21 % 0.9  %(6.6) %
Net loan charge-offs (recoveries)$841 $2,666 $(1) (68.5) %N.M.
Annualized net loan charge-offs (recoveries) as a % of average loans (b)0.05  %0.14  %—  % (64.3) %N.M.
    
CAPITAL & LIQUIDITY:   
Total shareholders' equity / Period end total assets11.76  %11.64  %10.98  % 1.0  %7.1  %
Tangible equity (d) / Tangible assets (f)10.27  %10.14  %9.46  % 1.3  %8.6  %
Average shareholders' equity / Average assets (b)11.74  %11.16  %10.85  % 5.2  %8.2  %
Average shareholders' equity / Average loans (b)15.48  %14.94  %15.37  % 3.6  %0.7  %
Average loans / Average deposits (b)91.11  %89.48  %84.04  % 1.8  %8.4  %
Note: Explanations for footnotes (a) - (k) 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)20242023
Interest income:
   Interest and fees on loans$111,211 $91,614 
   Interest on debt securities:
Taxable11,899 12,979 
Tax-exempt1,410 2,912 
   Other interest income2,120 3,396 
         Total interest income126,640 110,901 
Interest expense:
   Interest on deposits:
      Demand and savings deposits19,855 14,212 
      Time deposits7,338 1,347 
   Interest on borrowings3,824 3,144 
      Total interest expense31,017 18,703 
         Net interest income95,623 92,198 
Provision for credit losses2,180 183 
         Net interest income after provision for credit losses93,443 92,015 
Other income26,200 24,387 
Other expense77,228 76,503 
         Income before income taxes42,415 39,899 
Income taxes7,211 6,166 
         Net income$35,204 $33,733 
Per common share:
         Net income - basic$2.18 $2.08 
         Net income - diluted$2.17 $2.07 
         Weighted average common shares - basic16,116,842 16,242,353 
         Weighted average common shares - diluted16,191,065 16,324,823 
        Cash dividends declared:
Quarterly dividend$1.06 $1.05 



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, 2024December 31, 2023
  
Assets 
  
Cash and due from banks$112,117 $160,477 
Money market instruments193,964 57,791 
Investment securities1,339,747 1,429,144 
Loans7,525,005 7,476,221 
Allowance for credit losses(85,084)(83,745)
Loans, net7,439,921 7,392,476 
Bank premises and equipment, net73,818 74,211 
Goodwill and other intangible assets163,927 164,247 
Other real estate owned1,674 983 
Other assets555,909 557,124 
Total assets$9,881,077 $9,836,453 
  
Liabilities and Shareholders' Equity 
  
Deposits:
Noninterest bearing$2,587,152 $2,628,234 
Interest bearing5,718,880 5,414,332 
Total deposits8,306,032 8,042,566 
Borrowings295,130 517,329 
Other liabilities117,936 131,265 
Total liabilities$8,719,098 $8,691,160 
  
  
Shareholders' Equity: 
Preferred shares (200,000 shares authorized; no shares outstanding at March 31, 2024 and December 31, 2023)$— $— 
Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at March 31, 2024 and December 31, 2023)459,532 463,280 
Accumulated other comprehensive loss, net of taxes(66,395)(66,191)
Retained earnings921,101 903,877 
Treasury shares (1,473,581 shares at March 31, 2024 and 1,506,625 shares at December 31, 2023)(152,259)(155,673)
Total shareholders' equity$1,161,979 $1,145,293 
Total liabilities and shareholders' equity$9,881,077 $9,836,453 


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)20242023
   
Assets  
   
Cash and due from banks$143,714 $155,582 
Money market instruments155,511 292,948 
Investment securities 1,368,527 1,806,679 
Loans7,482,650 7,099,240 
Allowance for credit losses(84,067)(86,809)
Loans, net7,398,583 7,012,431 
Bank premises and equipment, net74,919 82,047 
Goodwill and other intangible assets164,137 165,457 
Other real estate owned1,088 1,434 
Other assets556,899 542,302 
Total assets$9,863,378 $10,058,880 
   
   
Liabilities and Shareholders' Equity  
   
Deposits:
Noninterest bearing$2,569,030 $2,970,470 
Interest bearing5,644,088 5,476,661 
Total deposits8,213,118 8,447,131 
Borrowings361,703 393,198 
Other liabilities130,373 127,599 
Total liabilities$8,705,194 $8,967,928 
   
Shareholders' Equity:  
Preferred shares$— $— 
Common shares463,518 462,562 
Accumulated other comprehensive loss, net of taxes(67,343)(96,240)
Retained earnings917,645 865,276 
Treasury shares(155,636)(140,646)
Total shareholders' equity$1,158,184 $1,090,952 
Total liabilities and shareholders' equity$9,863,378 $10,058,880 



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

 
PARK NATIONAL CORPORATION 
Consolidated Statements of Income - Linked Quarters
    
 20242023202320232023
(in thousands, except per share data)1st QTR4th QTR3rd QTR2nd QTR1st QTR
  
Interest income: 
Interest and fees on loans $111,211 $108,495 $103,258 $96,428 $91,614 
Interest on debt securities:
Taxable11,899 13,055 13,321 13,431 12,979 
Tax-exempt1,410 2,248 2,900 2,906 2,912 
Other interest income2,120 1,408 1,410 1,909 3,396 
Total interest income126,640 125,206 120,889 114,674 110,901 
  
Interest expense: 
Interest on deposits:
Demand and savings deposits19,855 19,467 20,029 18,068 14,212 
Time deposits7,338 6,267 3,097 1,966 1,347 
Interest on borrowings3,824 4,398 3,494 3,068 3,144 
Total interest expense31,017 30,132 26,620 23,102 18,703 
  
Net interest income95,623 95,074 94,269 91,572 92,198 
  
Provision for (recovery of) credit losses2,180 1,809 (1,580)2,492 183 
  
Net interest income after provision for (recovery of ) credit losses93,443 93,265 95,849 89,080 92,015 
  
Other income26,200 15,519 27,713 25,015 24,387 
Other expense77,228 79,043 77,808 75,885 76,503 
  
Income before income taxes42,415 29,741 45,754 38,210 39,899 
  
Income taxes7,211 5,241 8,837 6,626 6,166 
 
Net income $35,204 $24,500 $36,917 $31,584 $33,733 
  
Per common share:
Net income - basic$2.18 $1.52 $2.29 $1.95 $2.08 
Net income - diluted$2.17 $1.51 $2.28 $1.94 $2.07 




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
    
 20242023202320232023
(in thousands)1st QTR4th QTR3rd QTR2nd QTR1st QTR
 
Other income:
Income from fiduciary activities$10,024 $8,943 $9,100 $8,816 $8,615 
Service charges on deposit accounts2,106 2,054 2,109 2,041 2,241 
Other service income2,524 2,349 2,615 2,639 2,697 
Debit card fee income6,243 6,583 6,652 6,830 6,457 
Bank owned life insurance income2,629 1,373 1,448 1,332 1,185 
ATM fees496 517 575 553 533 
Gain (loss) on the sale of OREO, net121 — (6)12 (9)
Loss on sale of debt securities, net(398)(7,875)— — — 
(Loss) gain on equity securities, net(687)353 998 25 (405)
Other components of net periodic benefit income2,204 1,893 1,893 1,893 1,893 
Miscellaneous938 (671)2,329 874 1,180 
Total other income$26,200 $15,519 $27,713 $25,015 $24,387 
 
Other expense:
Salaries$35,733 $36,192 $34,525 $33,649 $34,871 
Employee benefits11,560 10,088 10,822 10,538 10,816 
Occupancy expense3,181 3,344 3,203 3,214 3,353 
Furniture and equipment expense2,583 2,824 3,060 3,103 3,246 
Data processing fees8,808 9,605 9,700 9,582 8,750 
Professional fees and services6,817 7,015 7,572 7,365 7,221 
Marketing1,741 1,716 1,197 1,239 1,319 
Insurance1,718 1,708 2,158 1,960 1,814 
Communication1,036 993 1,135 1,045 1,037 
State tax expense1,110 1,158 1,125 1,096 1,278 
Amortization of intangible assets320 334 334 328 327 
Foundation contributions— 1,000 — — — 
Miscellaneous2,621 3,066 2,977 2,766 2,471 
Total other expense$77,228 $79,043 $77,808 $75,885 $76,503 



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, 202420232022202120202019
 
Allowance for credit losses:
Allowance for credit losses, beginning of period$83,745 $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 2021— 383 — 6,090 — — 
Charge-offs3,240 10,863 9,133 5,093 10,304 11,177 
Recoveries2,399 5,942 6,758 8,441 27,246 10,173 
Net charge-offs (recoveries) 841 4,921 2,375 (3,348)(16,942)1,004 
Provision for (recovery of) credit losses2,180 2,904 4,557 (11,916)12,054 6,171 
Allowance for credit losses, end of period$85,084 $83,745 $85,379 $83,197 $85,675 $56,679 
General reserve trends:
Allowance for credit losses, end of period$85,084 $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.N.A.678 — 
Specific reserves on individually evaluated loans5,032 4,983 3,566 1,616 5,434 5,230 
General reserves on collectively evaluated loans$80,052 $78,762 $81,813 $81,581 $79,396 $51,181 
 
Total loans$7,525,005 $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)2,454 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.N.A.360,056 548,436 
Individually evaluated loans (k)54,742 45,215 78,341 74,502 108,407 77,459 
Collectively evaluated loans$7,467,809 $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 loans0.05  %0.07  %0.03  %(0.05) %(0.24) %0.02  %
Allowance for credit losses as a % of period end loans 1.13  %1.12  %1.20  %1.21  %1.19  %0.87  %
General reserve as a % of collectively evaluated loans 1.07  %1.06  %1.16  %1.20  %1.19  %0.87  %
 
Nonperforming assets:
Nonaccrual loans$70,189 $60,259 $79,696 $72,722 $117,368 $90,080 
Accruing troubled debt restructurings (for years 2022 and prior) (k)N.A.N.A.20,134 28,323 20,788 21,215 
Loans past due 90 days or more1,570 859 1,281 1,607 1,458 2,658 
Total nonperforming loans$71,759 $61,118 $101,111 $102,652 $139,614 $113,953 
Other real estate owned 1,674 983 1,354 775 1,431 4,029 
Other nonperforming assets — — — 2,750 3,164 3,599 
Total nonperforming assets$73,433 $62,101 $102,465 $106,177 $144,209 $121,581 
Percentage of nonaccrual loans to period end loans0.93  %0.81  %1.12  %1.06  %1.64  %1.39  %
Percentage of nonperforming loans to period end loans0.95  %0.82  %1.42  %1.49  %1.95  %1.75  %
Percentage of nonperforming assets to period end loans0.98  %0.83  %1.43  %1.55  %2.01  %1.87  %
Percentage of nonperforming assets to period end total assets0.74  %0.63  %1.04  %1.11  %1.55  %1.42  %
Note: Explanations for footnotes (a) - (k) 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, 202420232022202120202019
 
New nonaccrual loan information:
Nonaccrual loans, beginning of period$60,259 $79,696 $72,722 $117,368 $90,080 $67,954 
New nonaccrual loans19,012 48,280 64,918 38,478 103,386 81,009 
Resolved nonaccrual loans9,082 67,717 57,944 83,124 76,098 58,883 
Nonaccrual loans, end of period$70,189 $60,259 $79,696 $72,722 $117,368 $90,080 
 
Individually evaluated commercial loan portfolio information (period end): (k)
Unpaid principal balance$57,053 $47,564 $80,116 $75,126 $109,062 $78,178 
Prior charge-offs2,311 2,349 1,775 624 655 719 
Remaining principal balance54,742 45,215 78,341 74,502 108,407 77,459 
Specific reserves5,032 4,983 3,566 1,616 5,434 5,230 
Book value, after specific reserves$49,710 $40,232 $74,775 $72,886 $102,973 $72,229 
Note: Explanations for footnotes (a) - (k) 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, 2024December 31, 2023March 31, 2023
Net interest income$95,623 $95,074 $92,198 
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions352 124 200 
less interest income on former Vision Bank relationships2 35 574 
Net interest income - adjusted$95,269 $94,915 $91,424 
Provision for credit losses$2,180 $1,809 $183 
less recoveries on former Vision Bank relationships(953)— (723)
Provision for credit losses - adjusted$3,133 $1,809 $906 
Other income$26,200 $15,519 $24,387 
less loss on sale of debt securities, net(398)(7,875)— 
less write-downs on strategic initiatives(155)(1,038)— 
less Vision related gain on the sale of OREO, net121 — — 
less Vision related OREO valuation markup— 46 — 
less other service income related to former Vision Bank relationships7 40 135 
Other income - adjusted$26,625 $24,346 $24,252 
Other expense$77,228 $79,043 $76,503 
less Foundation contribution— 1,000 — 
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions320 334 327 
less direct expenses related to collection of payments on former Vision Bank loan relationships— — 100 
Other expense - adjusted$76,908 $77,709 $76,076 
Tax effect of adjustments to net income identified above (i)$(118)$2,100 $(253)
Net income - reported$35,204 $24,500 $33,733 
Net income - adjusted (h)$34,760 $32,402 $32,781 
Diluted earnings per common share$2.17 $1.51 $2.07 
Diluted earnings per common share, adjusted (h)$2.15 $2.00 $2.01 
Annualized return on average assets (a)(b)1.44 %0.98 %1.36 %
Annualized return on average assets, adjusted (a)(b)(h)
1.42 %1.30 %1.32 %
Annualized return on average tangible assets (a)(b)(e)1.46 %1.00 %1.38 %
Annualized return on average tangible assets, adjusted (a)(b)(e)(h)1.44 %1.32 %1.34 %
Annualized return on average shareholders' equity (a)(b)12.23 %8.81 %12.54 %
Annualized return on average shareholders' equity, adjusted (a)(b)(h)12.07 %11.65 %12.19 %
Annualized return on average tangible equity (a)(b)(c)14.24 %10.35 %14.78 %
Annualized return on average tangible equity, adjusted (a)(b)(c)(h)14.06 %13.69 %14.36 %
Efficiency ratio (g)63.07 %70.93 %65.10 %
Efficiency ratio, adjusted (g)(h)62.78 %64.70 %65.24 %
Annualized net interest margin (g)4.28 %4.17 %4.08 %
Annualized net interest margin, adjusted (g)(h)4.26 %4.17 %4.04 %
Note: Explanations for footnotes (a) - (k) 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, 2024, December 31, 2023, and March 31, 2023, 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, 2024December 31, 2023March 31, 2023
AVERAGE SHAREHOLDERS' EQUITY$1,158,184 $1,103,726 $1,090,952 
Less: Average goodwill and other intangible assets164,137 164,466 165,457 
AVERAGE TANGIBLE EQUITY$994,047 $939,260 $925,495 
(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, 2024December 31, 2023March 31, 2023
TOTAL SHAREHOLDERS' EQUITY$1,161,979 $1,145,293 $1,082,153 
Less: Goodwill and other intangible assets163,927 164,247 165,243 
TANGIBLE EQUITY$998,052 $981,046 $916,910 
    
(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, 2024December 31, 2023March 31, 2023
AVERAGE ASSETS$9,863,378 $9,890,188 $10,058,880 
Less: Average goodwill and other intangible assets164,137 164,466 165,457 
AVERAGE TANGIBLE ASSETS$9,699,241 $9,725,722 $9,893,423 
(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, 2024December 31, 2023March 31, 2023
TOTAL ASSETS$9,881,077 $9,836,453 $9,856,981 
Less: Goodwill and other intangible assets163,927 164,247 165,243 
TANGIBLE ASSETS$9,717,150 $9,672,206 $9,691,738 
    
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, 2024December 31, 2023March 31, 2023
Interest income$126,640 $125,206 $110,901 
Fully taxable equivalent adjustment616 838 926 
Fully taxable equivalent interest income$127,256 $126,044 $111,827 
Interest expense31,017 30,132 18,703 
Fully taxable equivalent net interest income$96,239 $95,912 $93,124 
(h) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for 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) Pre-tax, pre-provision ("PTPP") net income is calculated as net income, plus income taxes, plus the provision for 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 credit losses.
RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME
THREE MONTHS ENDED
March 31, 2024December 31, 2023March 31, 2023
Net income$35,204 $24,500 $33,733 
Plus: Income taxes7,211 5,241 6,166 
Plus: Provision for credit losses2,180 1,809 183 
Pre-tax, pre-provision net income$44,595 $31,550 $40,082 
(k) 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