EX-99 2 l08697aexv99.txt EXHIBIT 99 EXHIBIT 99 NEWS RELEASE For Release: July 19, 2004 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 JUNE 30, 2004 AND DECLARES DIVIDEND NEWARK, OHIO - Park National Corporation (Park) (AMEX:PRK) today announced earnings for the second quarter of 2004. Net income for the second quarter of 2004 totaled $24.085 million or $1.75 per diluted share, compared to net income of $25.123 million or $1.81 per diluted share in 2003, decreases of 4.1% in net income and 3.3% in diluted earnings per share. Net income for the first half of 2004 totaled $47.063 million or $3.41 per diluted share, compared to $48.289 million or $3.49 per diluted share for the first half of 2003, decreases of 2.5% in net income and 2.3% in diluted earnings per share. The Board of Directors of Park declared a third quarter dividend of $.88 per share, payable September 10, 2004 to shareholders of record on August 24, 2004. 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-six Ohio counties, Park and its subsidiaries have $5.1 billion in total consolidated assets, one hundred sixteen financial service offices and a network of one hundred seventeen automatic teller machines. PARK NATIONAL CORPORATION FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) JUNE 30, 2004 INCOME STATEMENT
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, -------- -------- PERCENT PERCENT 2004 2003 CHANGE 2004 2003 CHANGE ---- ---- ------ ---- ---- ------ NET INTEREST INCOME ................. $52,522 $51,596 1.79% $105,138 $103,801 1.29% ------- ------- ---- -------- -------- ---- PROVISION FOR LOAN LOSSES ........... 1,905 2,836 -32.83% 3,370 6,269 -46.24% ------- ------- ---- -------- -------- ---- OTHER INCOME ........................ 14,046 17,400 -19.28% 26,918 32,855 -18.07% ------- ------- ---- -------- -------- ---- GAIN (LOSS) ON SALE OF SECURITIES ... 0 321 106 (913) ------- ------- ---- -------- -------- ---- OTHER EXPENSE ....................... 30,295 30,490 -0.64% 61,820 60,559 2.08% ------- ------- ---- -------- -------- ---- INCOME BEFORE TAXES ................. 34,368 35,991 -4.51% 66,972 68,915 -2.82% ------- ------- ---- -------- -------- ---- NET INCOME .......................... 24,085 25,123 -4.13% 47,063 48,289 -2.54% ------- ------- ---- -------- -------- ---- NET INCOME PER SHARE-BASIC .......... 1.76 1.83 -3.83% 3.43 3.51 -2.28% ------- ------- ---- -------- -------- ---- NET INCOME PER SHARE-DILUTED ........ 1.75 1.81 -3.31% 3.41 3.49 -2.29% ------- ------- ---- -------- -------- ---- CASH DIVIDENDS PER SHARE ............ 0.88 0.83 6.02% 1.76 1.66 6.02% ------- ------- ---- -------- -------- ---- RATIOS AND OTHER INFORMATION RETURN ON AVERAGE ASSETS ............ 1.92% 2.01% 1.89% 1.98% ------- ------- ---- -------- -------- ---- RETURN ON AVERAGE EQUITY ............ 18.26% 19.37% 17.63% 18.97% ------- ------- ---- -------- -------- ---- YIELD ON EARNING ASSETS ............. 5.72% 5.89% 5.78% 6.11% ------- ------- ---- -------- -------- ---- COST OF PAYING LIABILITIES .......... 1.44% 1.67% 1.47% 1.74% ------- ------- ---- -------- -------- ---- NET INTEREST MARGIN ................. 4.54% 4.49% 4.58% 4.66% ------- ------- ---- -------- -------- ---- EFFICIENCY RATIO .................... 44.96% 43.57% 46.26% 43.68% ------- ------- ---- -------- -------- ---- NET LOAN CHARGE-OFFS ................ $ 1,749 $ 1,373 $ 2,422 $ 2,772 ------- ------- ---- -------- -------- ---- NET CHARGE-OFFS AS A PERCENT OF LOANS 0.25% 0.21% 0.18% 0.21% ------- ------- ---- -------- -------- ----
BALANCE SHEET AT JUNE 30,
PERCENT 2004 2003 CHANGE ---- ---- ------ INVESTMENTS ....................... $1,943,150 $1,720,819 12.92% ---------- ---------- ------- LOANS ............................. 2,803,590 2,690,329 4.21% ---------- ---------- ------- LOAN LOSS RESERVE ................. 64,090 65,525 -2.19% ---------- ---------- ------- GOODWILL AND OTHER INTANGIBLES .... 12,219 14,904 -18.02% ---------- ---------- ------- TOTAL ASSETS ...................... 5,074,731 5,002,480 1.44% ---------- ---------- ------- DEPOSITS .......................... 3,516,553 3,535,170 -0.53% ---------- ---------- ------- BORROWINGS ........................ 984,406 865,676 13.72% ---------- ---------- ------- EQUITY ............................ 515,747 538,222 -4.18% ---------- ---------- ------- BOOK VALUE PER SHARE .............. 37.91 39.11 -3.07% ---------- ---------- ------- NONPERFORMING LOANS ............... 18,441 20,394 -9.58% ---------- ---------- ------- NONPERFORMING ASSETS .............. 21,154 23,055 -8.25% ---------- ---------- ------- PAST DUE 90 DAY LOANS ............. 5,572 7,659 -27.25% ---------- ---------- ------- RATIOS LOANS/ASSETS ...................... 55.25% 53.78% ---------- ---------- NONPERFORMING LOANS/LOANS ......... 0.66% 0.76% ---------- ---------- PAST DUE 90 DAY LOANS/LOANS ....... 0.20% 0.28% ---------- ---------- LOAN LOSS RESERVE/LOANS ........... 2.29% 2.44% ---------- ---------- EQUITY/ASSETS ..................... 10.16% 10.76% ---------- ----------
PARK NATIONAL CORPORATION CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data)
JUNE 30, -------- 2004 2003 ---- ---- ASSETS Cash and due from banks ............................... $ 145,063 $ 222,467 ----------- ----------- Federal funds sold .................................... 20,000 70,600 ----------- ----------- Securities purchased under resale agreements .......... -- 175,000 ----------- ----------- Interest bearing deposits ............................. 50 50 ----------- ----------- Investment securities ................................. 1,943,150 1,720,819 ----------- ----------- Loans (net of unearned interest) ...................... 2,803,590 2,690,329 ----------- ----------- Allowance for possible loan losses .................... 64,090 65,525 ----------- ----------- LOANS, NET ......................................... 2,739,500 2,624,804 ----------- ----------- Bank premises and equipment, net ...................... 35,695 38,029 ----------- ----------- Other assets .......................................... 191,273 150,711 ----------- ----------- TOTAL ASSETS .................................... $ 5,074,731 $ 5,002,480 ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing ................................ $ 551,072 $ 577,819 ----------- ----------- Interest-bearing ................................... 2,965,481 2,957,351 ----------- ----------- TOTAL DEPOSITS .................................. 3,516,553 3,535,170 ----------- ----------- Borrowings ............................................ 984,406 865,676 ----------- ----------- Other liabilities ..................................... 58,025 63,412 ----------- ----------- TOTAL LIABILITIES ............................... 4,558,984 4,464,258 ----------- ----------- STOCKHOLDERS' EQUITY: Common stock (No par value; 20,000,000 shares authorized in 2004 and 2003; 14,543,614 shares issued in 2004 and 14,542,373 in 2003) ... 105,995 105,898 ----------- ----------- Accumulated other comprehensive income, net of taxes (11,449) 29,524 ----------- ----------- Retained earnings .................................. 509,706 471,743 ----------- ----------- Treasury stock (939,037 shares in 2004 and 781,813 shares in 2003) ................................. (88,505) (68,943) ----------- ----------- TOTAL STOCKHOLDERS' EQUITY ...................... 515,747 538,222 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ... $ 5,074,731 $ 5,002,480 ----------- -----------
PARK NATIONAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, -------- -------- 2004 2003 2004 2003 ---- ---- ---- ---- Interest income: Interest and fees on loans ........................ $ 43,319 $ 46,591 $ 86,932 $ 93,509 ------------ ------------ ------------ ------------ Interest on: Obligations of U.S. Government, its agencies and other securities ........................ 21,717 19,450 43,527 39,710 ------------ ------------ ------------ ------------ Obligations of states and political subdivisions 1,302 1,568 2,649 3,173 ------------ ------------ ------------ ------------ Other interest income ............................. 34 362 51 442 ------------ ------------ ------------ ------------ TOTAL INTEREST INCOME ....................... 66,372 67,971 133,159 136,834 ------------ ------------ ------------ ------------ Interest expense: Interest on deposits: Demand and savings deposits .................... 1,490 2,288 3,013 4,640 ------------ ------------ ------------ ------------ Time deposits .................................. 8,068 10,541 16,578 21,741 ------------ ------------ ------------ ------------ Interest on borrowings ............................ 4,292 3,546 8,430 6,652 ------------ ------------ ------------ ------------ TOTAL INTEREST EXPENSE ......................... 13,850 16,375 28,021 33,033 ------------ ------------ ------------ ------------ NET INTEREST INCOME ......................... 52,522 51,596 105,138 103,801 ------------ ------------ ------------ ------------ Provision for loan losses ............................ 1,905 2,836 3,370 6,269 ------------ ------------ ------------ ------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES .......................... 50,617 48,760 101,768 97,532 ------------ ------------ ------------ ------------ Other income ......................................... 14,046 17,400 26,918 32,855 ------------ ------------ ------------ ------------ Gain (loss) on sale of securities .................... -- 321 106 (913) ------------ ------------ ------------ ------------ Other expense: Salaries and employee benefits .................... 17,096 16,517 35,244 34,053 ------------ ------------ ------------ ------------ Occupancy expense ................................. 1,735 1,671 3,464 3,403 ------------ ------------ ------------ ------------ Furniture and equipment expense ................... 1,484 1,600 3,065 3,227 ------------ ------------ ------------ ------------ Other expense ..................................... 9,980 10,702 20,047 19,876 ------------ ------------ ------------ ------------ TOTAL OTHER EXPENSE ............................ 30,295 30,490 61,820 60,559 ------------ ------------ ------------ ------------ INCOME BEFORE FEDERAL INCOME TAXES .......... 34,368 35,991 66,972 68,915 ------------ ------------ ------------ ------------ Federal income taxes ................................. 10,283 10,868 19,909 20,626 ------------ ------------ ------------ ------------ NET INCOME .................................. $ 24,085 $ 25,123 $ 47,063 $ 48,289 ============ ============ ============ ============ PER SHARE: NET INCOME - BASIC ......................... $ 1.76 $ 1.83 $ 3.43 $ 3.51 ------------ ------------ ------------ ------------ NET INCOME - DILUTED ....................... $ 1.75 $ 1.81 $ 3.41 $ 3.49 ------------ ------------ ------------ ------------ WEIGHTED AVERAGE SHARES - BASIC ............. 13,658,212 13,761,117 13,707,153 13,770,973 ------------ ------------ ------------ ------------ WEIGHTED AVERAGE SHARES - DILUTED ........... 13,781,626 13,842,161 13,820,822 13,833,412 ------------ ------------ ------------ ------------
PARK NATIONAL CORPORATION CONSOLIDATED AVERAGE BALANCE SHEETS (dollars in thousands)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, -------- -------- 2004 2003 2004 2003 ---- ---- ---- ---- ASSETS Cash and due from banks ............................... $ 142,294 $ 139,225 $ 140,387 $ 137,194 ----------- ----------- ----------- ----------- Federal funds sold .................................... 12,570 41,301 8,682 31,524 ----------- ----------- ----------- ----------- Securities purchased under resale agreements .......... 0 82,692 0 41,575 ----------- ----------- ----------- ----------- Interest bearing deposits ............................. 50 50 50 50 ----------- ----------- ----------- ----------- Investment securities ................................. 1,928,658 1,922,229 1,936,265 1,863,527 ----------- ----------- ----------- ----------- Loans (net of unearned interest) ...................... 2,791,973 2,684,883 2,768,048 2,680,318 ----------- ----------- ----------- ----------- Allowance for possible loan losses .................... 64,711 65,127 64,359 64,046 ----------- ----------- ----------- ----------- LOANS, NET ......................................... 2,727,262 2,619,756 2,703,689 2,616,272 ----------- ----------- ----------- ----------- Bank premises and equipment, net ...................... 35,973 38,404 36,260 38,569 ----------- ----------- ----------- ----------- Other assets .......................................... 192,204 179,268 185,191 177,832 ----------- ----------- ----------- ----------- TOTAL ASSETS ............................................. $ 5,039,011 $ 5,022,925 $ 5,010,524 $ 4,906,543 ----------- ----------- ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing ................................ $ 567,895 $ 513,593 $ 560,550 $ 512,857 ----------- ----------- ----------- ----------- Interest-bearing ................................... 2,931,331 2,915,687 2,929,244 2,905,771 ----------- ----------- ----------- ----------- TOTAL DEPOSITS .................................. 3,499,226 3,429,280 3,489,794 3,418,628 ----------- ----------- ----------- ----------- Borrowings ............................................ 943,696 1,010,672 917,143 915,488 ----------- ----------- ----------- ----------- Other liabilities ..................................... 66,422 62,773 66,830 59,139 ----------- ----------- ----------- ----------- TOTAL LIABILITIES ............................... 4,509,344 4,502,725 4,473,767 4,393,255 ----------- ----------- ----------- ----------- STOCKHOLDERS' EQUITY: Common stock ....................................... 105,910 105,870 105,902 105,820 ----------- ----------- ----------- ----------- Accumulated other comprehensive income, net of taxes 9,469 25,249 16,250 23,475 ----------- ----------- ----------- ----------- Retained earnings .................................. 495,996 457,812 490,431 451,571 ----------- ----------- ----------- ----------- Treasury stock ..................................... (81,708) (68,731) (75,826) (67,578) ----------- ----------- ----------- ----------- TOTAL STOCKHOLDERS' EQUITY ...................... 529,667 520,200 536,757 513,288 ----------- ----------- ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ... $ 5,039,011 $ 5,022,925 $ 5,010,524 $ 4,906,543 ----------- ----------- ----------- -----------