EX-99 3 l03430aexv99.txt EXHIBIT 99 PRESS RELEASE NEWS RELEASE Exhibit 99 For Release: October 14, 2003 Contact: John W. Kozak, CFO (740) 349-3792 or Jerry Nethers, Vice President/Director of Marketing (740) 349-3710 PARK NATIONAL CORPORATION REPORTS EARNINGS FOR THE QUARTER ENDED SEPTEMBER 30, 2003 NEWARK, OHIO - Park National Corporation (Park) (AMEX: PRK) today announced earnings for the third quarter of 2003. Net income for the third quarter of 2003 totaled $20.200 million or $1.46 per share, compared to net income of $22.073 million or $1.59 per share in 2002, decreases of 8.5% in net income and 8.2% in diluted earnings per share. Net income for the first three quarters of 2003 totaled $68.489 million or $4.95 per share, compared to $65.493 million or $4.70 per share for the first three quarters of 2002, increases of 4.6% in net income and 5.3% in diluted earnings per share. Net losses from the sale of investment securities totaled $4.474 million for the quarter ended September 30, 2003, and $5.387 million for the first nine months of 2003. There were no net losses from the sale of investment securities during the third quarter of 2002 and $210,000 in net losses for the first nine months of 2002. The proceeds from the sale of investment securities were reinvested in higher yielding U.S. Government Agency fifteen year mortgage backed securities. Park is an Ohio-based bank holding company headquartered in Newark, Ohio, whose significant subsidiaries include The Park National Bank, Fairfield National Division, The Richland Trust Company, Century National Bank, The First-Knox National Bank, Farmers and Savings Division, United Bank, N.A., Second National Bank, The Security National Bank and Trust Co., Unity National Division, The Citizens National Bank of Urbana, Scope Leasing, Inc., and Guardian Finance. Operating in twenty-five Ohio counties, Park and its subsidiaries have $4.7 billion in total consolidated assets, one hundred thirteen financial service offices and a network of one hundred seventeen automatic teller machines. PARK NATIONAL CORPORATION CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data)
SEPTEMBER 30, ---------------------------------- 2003 2002 ------------------------------------------------------------------------------------------------------------------ ASSETS Cash and due from banks $142,477 $161,516 ------------------------------------------------------------------------------------------------------------------ Federal funds sold 18,000 43,500 ------------------------------------------------------------------------------------------------------------------ Interest bearing deposits 50 50 ------------------------------------------------------------------------------------------------------------------ Investment securities 1,675,938 1,379,021 ------------------------------------------------------------------------------------------------------------------ Loans (net of unearned interest) 2,711,362 2,729,260 ------------------------------------------------------------------------------------------------------------------ Allowance for possible loan losses 64,476 63,653 ------------------------------------------------------------------------------------------------------------------ LOANS, NET 2,646,886 2,665,607 ------------------------------------------------------------------------------------------------------------------ Bank premises and equipment, net 37,450 38,926 ------------------------------------------------------------------------------------------------------------------ Other assets 164,981 152,102 ------------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $4,685,782 $4,440,722 ------------------------------------------------------------------------------------------------------------------ LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing $522,865 $590,386 ------------------------------------------------------------------------------------------------------------------ Interest-bearing 2,881,188 2,901,925 ------------------------------------------------------------------------------------------------------------------ TOTAL DEPOSITS 3,404,053 3,492,311 ------------------------------------------------------------------------------------------------------------------ Borrowings 691,141 381,536 ------------------------------------------------------------------------------------------------------------------ Other liabilities 54,822 61,316 ------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES 4,150,016 3,935,163 ------------------------------------------------------------------------------------------------------------------ STOCKHOLDERS' EQUITY: Common stock (No par value; 20,000,000 shares authorized in 2003 and 2002; 14,542,373 shares issued in 2003 and 14,540,480 in 2002) 105,898 105,770 ------------------------------------------------------------------------------------------------------------------ Accumulated other comprehensive income, net of taxes 17,579 23,576 ------------------------------------------------------------------------------------------------------------------ Retained earnings 480,507 437,675 ------------------------------------------------------------------------------------------------------------------ Treasury stock (772,841 shares in 2003 and 708,545 shares in 2002) (68,218) (61,462) ------------------------------------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY 535,766 505,559 ------------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,685,782 $4,440,722 ------------------------------------------------------------------------------------------------------------------
PARK NATIONAL CORPORATION CONSOLIDATED AVERAGE BALANCE SHEETS (dollars in thousands)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------------ ------------------------------ 2003 2002 2003 2002 ----------------------------------------------------------------------------------------------- ----------------------------- ASSETS Cash and due from banks $134,670 $127,645 $136,343 $127,211 ----------------------------------------------------------------------------------------------- ----------------------------- Federal funds sold 31,686 22,910 31,578 19,051 ----------------------------------------------------------------------------------------------- ----------------------------- Securities purchased under resale agreements 30,417 - 37,855 - ----------------------------------------------------------------------------------------------- ----------------------------- Interest bearing deposits 50 50 50 50 ----------------------------------------------------------------------------------------------- ----------------------------- Investment securities 1,612,633 1,456,855 1,778,937 1,443,335 ----------------------------------------------------------------------------------------------- ----------------------------- Loans (net of unearned interest) 2,700,373 2,717,057 2,687,076 2,722,131 ----------------------------------------------------------------------------------------------- ----------------------------- Allowance for possible loan losses 66,195 63,843 64,770 62,153 ----------------------------------------------------------------------------------------------- ----------------------------- LOANS, NET 2,634,178 2,653,214 2,622,306 2,659,978 ----------------------------------------------------------------------------------------------- ----------------------------- Bank premises and equipment, net 37,903 39,183 38,344 39,531 ----------------------------------------------------------------------------------------------- ----------------------------- Other assets 176,999 157,212 177,553 161,005 ----------------------------------------------------------------------------------------------- ----------------------------- TOTAL ASSETS $4,658,536 $4,457,069 $4,822,966 $4,450,161 ----------------------------------------------------------------------------------------------- ----------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing $516,406 $500,199 $514,053 $491,061 ----------------------------------------------------------------------------------------------- ----------------------------- Interest-bearing 2,911,736 2,951,314 2,907,782 2,896,377 ----------------------------------------------------------------------------------------------- ----------------------------- TOTAL DEPOSITS 3,428,142 3,451,513 3,421,835 3,387,438 ----------------------------------------------------------------------------------------------- ----------------------------- Borrowings 636,871 444,745 821,595 516,351 ----------------------------------------------------------------------------------------------- ----------------------------- Other liabilities 72,171 67,219 63,530 64,514 ----------------------------------------------------------------------------------------------- ----------------------------- TOTAL LIABILITIES 4,137,184 3,963,477 4,306,960 3,968,303 ----------------------------------------------------------------------------------------------- ----------------------------- STOCKHOLDERS' EQUITY: Common stock 105,898 105,770 105,846 105,771 ----------------------------------------------------------------------------------------------- ----------------------------- Accumulated other comprehensive income, net of taxes 13,771 22,346 20,205 16,034 ----------------------------------------------------------------------------------------------- ----------------------------- Retained earnings 470,306 425,457 457,886 414,742 ----------------------------------------------------------------------------------------------- ----------------------------- Treasury stock (68,623) (59,981) (67,931) (54,689) ----------------------------------------------------------------------------------------------- ----------------------------- TOTAL STOCKHOLDERS' EQUITY 521,352 493,592 516,006 481,858 ----------------------------------------------------------------------------------------------- ----------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,658,536 $4,457,069 $4,822,966 $4,450,161 ----------------------------------------------------------------------------------------------- -----------------------------
PARK NATIONAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------------ ------------------------------ 2003 2002 2003 2002 -------------------------------------------------------------------------------------------- ------------------------------ Interest income: Interest and fees on loans $45,696 $51,596 $139,205 $156,294 -------------------------------------------------------------------------------------------- ------------------------------ Interest on: Obligations of U.S. Government, its agencies and other securities 16,615 18,976 56,325 58,530 -------------------------------------------------------------------------------------------- ------------------------------ Obligations of states and political subdivisions 1,533 1,719 4,706 5,277 -------------------------------------------------------------------------------------------- ------------------------------ Other interest income 207 111 649 274 -------------------------------------------------------------------------------------------- ------------------------------ TOTAL INTEREST INCOME 64,051 72,402 200,885 220,375 -------------------------------------------------------------------------------------------- ------------------------------ Interest expense: Interest on deposits: Demand and savings deposits 1,763 3,275 6,403 9,728 -------------------------------------------------------------------------------------------- ------------------------------ Time deposits 9,743 13,829 31,484 43,363 -------------------------------------------------------------------------------------------- ------------------------------ Interest on borrowings 3,195 3,368 9,847 11,208 -------------------------------------------------------------------------------------------- ------------------------------ TOTAL INTEREST EXPENSE 14,701 20,472 47,734 64,299 -------------------------------------------------------------------------------------------- ------------------------------ NET INTEREST INCOME 49,350 51,930 153,151 156,076 -------------------------------------------------------------------------------------------- ------------------------------ Provision for loan losses 3,156 3,194 9,425 11,357 -------------------------------------------------------------------------------------------- ------------------------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 46,194 48,736 143,726 144,719 -------------------------------------------------------------------------------------------- ------------------------------ Other income 16,140 12,229 48,995 35,198 -------------------------------------------------------------------------------------------- ------------------------------ Gain (loss) on sale of securities (4,474) - (5,387) (210) -------------------------------------------------------------------------------------------- ------------------------------ Other expense: Salaries and employee benefits 16,566 16,039 50,619 47,982 -------------------------------------------------------------------------------------------- ------------------------------ Occupancy expense 1,775 1,503 5,178 4,531 -------------------------------------------------------------------------------------------- ------------------------------ Furniture and equipment expense 1,610 1,493 4,837 4,499 -------------------------------------------------------------------------------------------- ------------------------------ Other expense 9,407 10,272 29,283 29,851 -------------------------------------------------------------------------------------------- ------------------------------ TOTAL OTHER EXPENSE 29,358 29,307 89,917 86,863 -------------------------------------------------------------------------------------------- ------------------------------ INCOME BEFORE FEDERAL INCOME TAXES 28,502 31,658 97,417 92,844 -------------------------------------------------------------------------------------------- ------------------------------ Federal income taxes 8,302 9,585 28,928 27,351 -------------------------------------------------------------------------------------------- ------------------------------ NET INCOME $20,200 $22,073 $68,489 $65,493 ============================================================================================ ============================== PER SHARE: NET INCOME - BASIC $1.47 $1.59 $4.97 $4.71 -------------------------------------------------------------------------------------------- ------------------------------ NET INCOME - DILUTED $1.46 $1.59 $4.95 $4.70 -------------------------------------------------------------------------------------------- ------------------------------ WEIGHTED AVERAGE SHARES - BASIC 13,764,381 13,847,583 13,768,775 13,901,345 -------------------------------------------------------------------------------------------- ------------------------------ WEIGHTED AVERAGE SHARES - DILUTED 13,880,442 13,871,544 13,849,082 13,934,287 -------------------------------------------------------------------------------------------- ------------------------------
PARK NATIONAL CORPORATION FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) SEPTEMBER 30, 2003
INCOME STATEMENT PERCENT THREE MONTHS ENDED SEPTEMBER 30, 2003 2002 CHANGE ---- ---- ------ NET INTEREST INCOME $49,350 $51,930 -4.97% -------------------------------------------------------------------------------------------------------------- PROVISION FOR LOAN LOSSES 3,156 3,194 -1.19% -------------------------------------------------------------------------------------------------------------- OTHER INCOME 16,140 12,229 31.98% -------------------------------------------------------------------------------------------------------------- GAIN (LOSS) ON SALE OF SECURITIES (4,474) - -------------------------------------------------------------------------------------------------------------- OTHER EXPENSE 29,358 29,307 0.17% -------------------------------------------------------------------------------------------------------------- INCOME BEFORE TAXES 28,502 31,658 -9.97% -------------------------------------------------------------------------------------------------------------- NET INCOME 20,200 22,073 -8.49% -------------------------------------------------------------------------------------------------------------- NET INCOME PER SHARE-BASIC 1.47 1.59 -7.55% -------------------------------------------------------------------------------------------------------------- NET INCOME PER SHARE-DILUTED 1.46 1.59 -8.18% -------------------------------------------------------------------------------------------------------------- CASH DIVIDENDS PER SHARE 0.83 0.76 9.21% -------------------------------------------------------------------------------------------------------------- RATIOS RETURN ON AVERAGE ASSETS 1.72% 1.96% -------------------------------------------------------------------------------------------------------------- RETURN ON AVERAGE EQUITY 15.37% 17.74% -------------------------------------------------------------------------------------------------------------- NET INTEREST MARGIN 4.58% 5.05% -------------------------------------------------------------------------------------------------------------- EFFICIENCY RATIO 44.21% 44.93% -------------------------------------------------------------------------------------------------------------- NET CHARGE-OFFS AS A PERCENT OF LOANS 0.62% 0.38% -------------------------------------------------------------------------------------------------------------- INCOME STATEMENT NINE MONTHS ENDED SEPTEMBER 30, NET INTEREST INCOME $153,151 $156,076 -1.87% -------------------------------------------------------------------------------------------------------------- PROVISION FOR LOAN LOSSES 9,425 11,357 -17.01% -------------------------------------------------------------------------------------------------------------- OTHER INCOME 48,995 35,198 39.20% -------------------------------------------------------------------------------------------------------------- GAIN (LOSS) ON SALE OF SECURITIES (5,387) (210) -------------------------------------------------------------------------------------------------------------- OTHER EXPENSE 89,917 86,863 3.52% -------------------------------------------------------------------------------------------------------------- INCOME BEFORE TAXES 97,417 92,844 4.93% -------------------------------------------------------------------------------------------------------------- NET INCOME 68,489 65,493 4.57% -------------------------------------------------------------------------------------------------------------- NET INCOME PER SHARE-BASIC 4.97 4.71 5.52% -------------------------------------------------------------------------------------------------------------- NET INCOME PER SHARE-DILUTED 4.95 4.70 5.32% -------------------------------------------------------------------------------------------------------------- CASH DIVIDENDS PER SHARE 2.49 2.28 9.21% -------------------------------------------------------------------------------------------------------------- RATIOS RETURN ON AVERAGE ASSETS 1.90% 1.97% -------------------------------------------------------------------------------------------------------------- RETURN ON AVERAGE EQUITY 17.75% 18.17% -------------------------------------------------------------------------------------------------------------- NET INTEREST MARGIN 4.63% 5.12% -------------------------------------------------------------------------------------------------------------- EFFICIENCY RATIO 43.85% 44.66% -------------------------------------------------------------------------------------------------------------- NET CHARGE-OFFS AS A PERCENT OF LOANS 0.35% 0.38% -------------------------------------------------------------------------------------------------------------- BALANCE SHEET AT SEPTEMBER 30, INVESTMENTS $1,675,938 $1,379,021 21.53% -------------------------------------------------------------------------------------------------------------- LOANS 2,711,362 2,729,260 -0.66% -------------------------------------------------------------------------------------------------------------- LOAN LOSS RESERVE 64,476 63,653 1.29% -------------------------------------------------------------------------------------------------------------- GOODWILL AND OTHER INTANGIBLES 14,321 17,901 -20.00% -------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 4,685,782 4,440,722 5.52% -------------------------------------------------------------------------------------------------------------- DEPOSITS 3,404,053 3,492,311 -3.14% -------------------------------------------------------------------------------------------------------------- BORROWINGS 691,141 381,536 81.15% -------------------------------------------------------------------------------------------------------------- EQUITY 535,766 505,559 5.97% -------------------------------------------------------------------------------------------------------------- BOOK VALUE PER SHARE 38.91 36.55 6.46% -------------------------------------------------------------------------------------------------------------- RATIOS LOANS/ASSETS 57.86% 61.46% -------------------------------------------------------------------------------------------------------------- NONPERFORMING LOANS/LOANS 0.68% 0.71% -------------------------------------------------------------------------------------------------------------- PAST DUE 90 DAY LOANS/LOANS 0.24% 0.26% -------------------------------------------------------------------------------------------------------------- LOAN LOSS RESERVE/LOANS 2.38% 2.33% -------------------------------------------------------------------------------------------------------------- EQUITY/ASSETS 11.43% 11.38% --------------------------------------------------------------------------------------------------------------