EX-99.1 2 l10051aexv99w1.txt EX-99.1 NEWS RELEASE ISSUED BY PARK NATIONAL CORPORATION ON OCTOBER 18, 2004 Exhibit 99.1 PARK NATIONAL CORPORATION N E W S R E L E A S E Media contacts: Bethany White, Comm. Specialist 740.349.3754 Jerry Nethers, VP Marketing, 740.349.3710 John Kozak, Chief Financial Officer, 740.349.3792 October 18, 2004 For Immediate Release PARK NATIONAL CORPORATION ANNOUNCES THIRD QUARTER EARNINGS NEWARK, OHIO -- Park National Corporation ("Park") (AMEX:PRK) today announced earnings for the third quarter of 2004. Net income for the third quarter of 2004 totaled $23.547 million or $1.71 per diluted share, compared to net income of $20.200 million or $1.46 per diluted share in 2003, increases of 16.6 percent in net income and 17.1 percent in diluted earnings per share. Net income for the first nine months of 2004 totaled $70.610 million or $5.12 per diluted share, compared to $68.489 million or $4.95 per diluted share for the first nine months of 2003, increases of 3.1 percent in net income and 3.4 percent in diluted earnings per share. "Our improved performance for the first nine months of 2004 has been enhanced by a 5.2 percent increase in loans from year-end 2003, and by 6 percent from one year ago," said Park President C. Daniel DeLawder. "We experienced notable benefit last year from extraordinary volume for our banks in the area of home loan lending. Returning to a more typical level of mortgage lending activity has allowed our associates to concentrate, with considerable success, on other types of lending, including both personal and business loans." "We are pleased with our progress so far this year, and we look forward to the next few months as we welcome First Federal Savings Bank of Eastern Ohio ("First Federal Savings") and First Clermont Bank into our family of full-service community banks," he added. Park made two separate announcements in the third quarter.* On August 3, it announced intentions to acquire First Federal Savings of Zanesville (Muskingum County, Ohio) and merge it with Park affiliate Century National Bank. On September 24, Park announced plans to acquire First Clermont Bank (Clermont County, Ohio). The First Federal Bancorp merger transactions are anticipated to be completed in the fourth quarter of 2004 and the acquisition of First Clermont Bank by the first quarter of 2005. Park is an Ohio-based bank holding company headquartered in Newark, Ohio. Its 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, 119 financial service offices and a network of more than 100 automatic teller machines. For more information, visit www.parknationalcorp.com. Park National Corporation 50 N. Third Street, Newark, Ohio 43055 www.parknationalcorp.com PARK NATIONAL CORPORATION N E W S R E L E A S E * Park announced the signing of two separate acquisition agreements in the third quarter. On August 3, it announced the signing of a definitive agreement and plan of merger which will result in the acquisition of First Federal Bancorp, Inc. ("First Federal Bancorp") and its subsidiary First Federal Savings, both headquartered in Zanesville (Muskingum County, Ohio). First Federal Bancorp will be acquired through the merger of a newly-formed subsidiary of Park with and into First Federal in an all-cash transaction, immediately followed by the merger of the surviving corporation into Park. Following those merger transactions, First Federal Savings will be merged with Park affiliate Century National Bank. On September 24, Park announced the signing of a stock purchase agreement whereby Park will acquire First Clermont Bank (Clermont County, Ohio) in an all cash transaction. Following that acquisition, First Clermont Bank will merge with Park affiliate The Park National Bank. Both acquisitions are subject to the receipt of appropriate regulatory approvals and, in the case of the First Federal Bancorp merger transactions, the approval of the First Federal Bancorp shareholders. The First Federal Bancorp merger transactions are anticipated to be completed in the fourth quarter of 2004 and the acquisition of First Clermont Bank by the first quarter of 2005. SAFE HARBOR STATEMENT Except for the historical and present factual information contained in this press release, the matters discussed in this press release, including statements identified by words such as "will result," "look forward," "are anticipated," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those set forth in the forward-looking statements, including the following: the ability to obtain regulatory approvals and, in the case of the First Federal Bancorp merger transactions, shareholder approval, of the First Federal Bancorp and First Clermont Bank acquisitions on the proposed terms and schedule; the possibility that costs or difficulties related to the integration of the businesses of First Federal Bancorp, First Federal Savings and First Clermont Bank with our businesses will be greater than expected or that the cost savings and any revenue synergies of the combined entities following the acquisitions may be lower or take longer to realize than expected; disruptions from the acquisitions making it more difficult to maintain relationships with customers, employees or suppliers; the impact of competition; changes in economic conditions in Park's market area; changes in policies by regulatory agencies; fluctuations in interest rates; demand for loans in Park's market area; and other risk factors relating to our industry as detailed from time to time in Park's reports filed with the SEC. Park wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Park does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. ### Park National Corporation 50 N. Third Street, Newark, Ohio 43055 www.parknationalcorp.com PARK NATIONAL CORPORATION FINANCIAL HIGHLIGHTS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) SEPTEMBER 30, 2004
INCOME STATEMENT THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, PERCENT PERCENT 2004 2003 CHANGE 2004 2003 CHANGE ---- ---- ------ ---- ---- ------ NET INTEREST INCOME $53,810 $49,350 9.04% $158,948 $153,151 3.79% ---------------------------------------------------------------------------------------------------------------------- PROVISION FOR LOAN LOSSES 2,745 3,156 -13.02% 6,115 9,425 -35.12% ---------------------------------------------------------------------------------------------------------------------- OTHER INCOME 13,009 16,140 -19.40% 39,927 48,995 -18.51% ---------------------------------------------------------------------------------------------------------------------- GAIN (LOSS) ON SALE OF SECURITIES 0 (4,474) 106 (5,387) ---------------------------------------------------------------------------------------------------------------------- OTHER EXPENSE 31,092 29,358 5.91% 92,912 89,917 3.33% ---------------------------------------------------------------------------------------------------------------------- INCOME BEFORE TAXES 32,982 28,502 15.72% 99,954 97,417 2.60% ---------------------------------------------------------------------------------------------------------------------- NET INCOME 23,547 20,200 16.57% 70,610 68,489 3.10% ---------------------------------------------------------------------------------------------------------------------- NET INCOME PER SHARE-BASIC 1.73 1.47 17.69% 5.16 4.97 3.82% ---------------------------------------------------------------------------------------------------------------------- NET INCOME PER SHARE-DILUTED 1.71 1.46 17.12% 5.12 4.95 3.43% ---------------------------------------------------------------------------------------------------------------------- CASH DIVIDENDS PER SHARE 0.88 0.83 6.02% 2.64 2.49 6.02% ---------------------------------------------------------------------------------------------------------------------- RATIOS AND OTHER INFORMATION RETURN ON AVERAGE ASSETS 1.84% 1.72% 1.87% 1.90% ---------------------------------------------------------------------------------------------------------------------- RETURN ON AVERAGE EQUITY 17.84% 15.37% 17.70% 17.75% ---------------------------------------------------------------------------------------------------------------------- YIELD ON EARNING ASSETS 5.77% 5.92% 5.78% 6.05% ---------------------------------------------------------------------------------------------------------------------- COST OF PAYING LIABILITIES 1.50% 1.64% 1.48% 1.71% ---------------------------------------------------------------------------------------------------------------------- NET INTEREST MARGIN 4.54% 4.58% 4.56% 4.63% ---------------------------------------------------------------------------------------------------------------------- EFFICIENCY RATIO 46.00% 44.21% 46.17% 43.85% ---------------------------------------------------------------------------------------------------------------------- NET LOAN CHARGE-OFFS $2,096 $4,205 $4,518 $6,977 ---------------------------------------------------------------------------------------------------------------------- NET CHARGE-OFFS AS A PERCENT OF LOANS 0.29% 0.62% 0.22% 0.35% ----------------------------------------------------------------------------------------------------------------------
BALANCE SHEET AT SEPTEMBER 30, PERCENT 2004 2003 CHANGE ---- ---- ------ INVESTMENTS $1,955,443 $1,675,938 16.68% --------------------------------------------------------------------------------------- LOANS 2,873,433 2,711,362 5.98% --------------------------------------------------------------------------------------- LOAN LOSS RESERVE 64,739 64,476 0.41% --------------------------------------------------------------------------------------- GOODWILL AND OTHER INTANGIBLES 11,849 14,321 -17.26% -------------------------------------------------------------------------------------- TOTAL ASSETS 5,135,570 4,685,782 9.60% -------------------------------------------------------------------------------------- DEPOSITS 3,535,405 3,404,053 3.86% --------------------------------------------------------------------------------------- BORROWINGS 981,105 691,141 41.95% --------------------------------------------------------------------------------------- EQUITY 553,317 535,766 3.28% --------------------------------------------------------------------------------------- BOOK VALUE PER SHARE 40.64 38.91 4.45% --------------------------------------------------------------------------------------- NONPERFORMING LOANS 20,225 18,540 9.09% --------------------------------------------------------------------------------------- NONPERFORMING ASSETS 23,590 20,726 13.82% --------------------------------------------------------------------------------------- PAST DUE 90 DAY LOANS 7,322 6,468 13.20% --------------------------------------------------------------------------------------- RATIOS LOANS/ASSETS 55.95% 57.86% ---------------------------------------------------------------------- NONPERFORMING LOANS/LOANS 0.70% 0.68% ---------------------------------------------------------------------- PAST DUE 90 DAY LOANS/LOANS 0.25% 0.24% ---------------------------------------------------------------------- LOAN LOSS RESERVE/LOANS 2.25% 2.38% ---------------------------------------------------------------------- EQUITY/ASSETS 10.77% 11.43% ----------------------------------------------------------------------
PARK NATIONAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, -------------------------- --------------------------- 2004 2003 2004 2003 ---------------------------------------------------------------------------------------------- ---------------------------- Interest income: Interest and fees on loans $45,130 $45,696 $132,062 $139,205 ---------------------------------------------------------------------------------------------- ---------------------------- Interest on: Obligations of U.S. Government, its agencies and other securities 22,187 16,615 65,714 56,325 ---------------------------------------------------------------------------------------------- ---------------------------- Obligations of states and political subdivisions 1,255 1,533 3,904 4,706 ---------------------------------------------------------------------------------------------- ---------------------------- Other interest income 32 207 83 649 ---------------------------------------------------------------------------------------------- ---------------------------- TOTAL INTEREST INCOME 68,604 64,051 201,763 200,885 ---------------------------------------------------------------------------------------------- ---------------------------- Interest expense: Interest on deposits: Demand and savings deposits 1,821 1,763 4,834 6,403 ---------------------------------------------------------------------------------------------- ---------------------------- Time deposits 8,181 9,743 24,759 31,484 ---------------------------------------------------------------------------------------------- ---------------------------- Interest on borrowings 4,792 3,195 13,222 9,847 ---------------------------------------------------------------------------------------------- ---------------------------- TOTAL INTEREST EXPENSE 14,794 14,701 42,815 47,734 ---------------------------------------------------------------------------------------------- ---------------------------- NET INTEREST INCOME 53,810 49,350 158,948 153,151 ---------------------------------------------------------------------------------------------- ---------------------------- Provision for loan losses 2,745 3,156 6,115 9,425 ---------------------------------------------------------------------------------------------- ---------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 51,065 46,194 152,833 143,726 ---------------------------------------------------------------------------------------------- ---------------------------- Other income 13,009 16,140 39,927 48,995 ---------------------------------------------------------------------------------------------- ---------------------------- Gain (loss) on sale of securities - (4,474) 106 (5,387) ---------------------------------------------------------------------------------------------- ---------------------------- Other expense: Salaries and employee benefits 17,838 16,566 53,082 50,619 ---------------------------------------------------------------------------------------------- ---------------------------- Occupancy expense 1,803 1,775 5,267 5,178 ---------------------------------------------------------------------------------------------- ---------------------------- Furniture and equipment expense 1,333 1,610 4,398 4,837 ---------------------------------------------------------------------------------------------- ---------------------------- Other expense 10,118 9,407 30,165 29,283 ---------------------------------------------------------------------------------------------- ---------------------------- TOTAL OTHER EXPENSE 31,092 29,358 92,912 89,917 ---------------------------------------------------------------------------------------------- ---------------------------- INCOME BEFORE FEDERAL INCOME TAXES 32,982 28,502 99,954 97,417 ---------------------------------------------------------------------------------------------- ---------------------------- Federal income taxes 9,435 8,302 29,344 28,928 ---------------------------------------------------------------------------------------------- ---------------------------- NET INCOME $23,547 $20,200 $70,610 $68,489 ============================================================================================== ============================ PER SHARE: NET INCOME - BASIC $1.73 $1.47 $5.16 $4.97 ---------------------------------------------------------------------------------------------- ---------------------------- NET INCOME - DILUTED $1.71 $1.46 $5.12 $4.95 ---------------------------------------------------------------------------------------------- ---------------------------- WEIGHTED AVERAGE SHARES - BASIC 13,608,629 13,764,381 13,674,311 13,768,775 ---------------------------------------------------------------------------------------------- ---------------------------- WEIGHTED AVERAGE SHARES - DILUTED 13,740,925 13,880,442 13,794,190 13,849,082 ---------------------------------------------------------------------------------------------- ----------------------------
PARK NATIONAL CORPORATION CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data)
SEPTEMBER 30, --------------------------------- 2004 2003 ------------------------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $141,530 $142,477 ------------------------------------------------------------------------------------------------------------------- Federal funds sold - 18,000 ------------------------------------------------------------------------------------------------------------------- Interest bearing deposits - 50 ------------------------------------------------------------------------------------------------------------------- Investment securities 1,955,443 1,675,938 ------------------------------------------------------------------------------------------------------------------- Loans (net of unearned interest) 2,873,433 2,711,362 ------------------------------------------------------------------------------------------------------------------- Allowance for possible loan losses 64,739 64,476 ------------------------------------------------------------------------------------------------------------------- LOANS, NET 2,808,694 2,646,886 ------------------------------------------------------------------------------------------------------------------- Bank premises and equipment, net 37,179 37,450 ------------------------------------------------------------------------------------------------------------------- Other assets 192,724 164,981 ------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $5,135,570 $4,685,782 ------------------------------------------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing $567,708 $522,865 ------------------------------------------------------------------------------------------------------------------- Interest-bearing 2,967,697 2,881,188 ------------------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS 3,535,405 3,404,053 ------------------------------------------------------------------------------------------------------------------- Borrowings 981,105 691,141 ------------------------------------------------------------------------------------------------------------------- Other liabilities 65,743 54,822 ------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 4,582,253 4,150,016 ------------------------------------------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY: Common stock (No par value; 20,000,000 shares authorized in 2004 and 2003; 14,544,266 shares issued in 2004 and 14,542,373 in 2003) 106,036 105,898 ------------------------------------------------------------------------------------------------------------------- Accumulated other comprehensive income, net of taxes 13,638 17,579 ------------------------------------------------------------------------------------------------------------------- Retained earnings 521,275 480,507 ------------------------------------------------------------------------------------------------------------------- Treasury stock (929,476 shares in 2004 and 772,841 shares in 2003) (87,632) (68,218) ------------------------------------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 553,317 535,766 ------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,135,570 $4,685,782 -------------------------------------------------------------------------------------------------------------------
PARK NATIONAL CORPORATION CONSOLIDATED AVERAGE BALANCE SHEETS (dollars in thousands)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, -------------------------- --------------------------- 2004 2003 2004 2003 ---------------------------------------------------------------------------------------------- --------------------------- ASSETS Cash and due from banks $145,212 $134,670 $142,007 $136,343 ---------------------------------------------------------------------------------------------- --------------------------- Federal funds sold 4,932 31,686 7,423 31,578 ---------------------------------------------------------------------------------------------- --------------------------- Securities purchased under resale agreements 0 30,417 0 37,855 ---------------------------------------------------------------------------------------------- --------------------------- Interest bearing deposits 29 50 43 50 ---------------------------------------------------------------------------------------------- --------------------------- Investment securities 1,941,864 1,612,633 1,938,132 1,778,937 ---------------------------------------------------------------------------------------------- --------------------------- Loans (net of unearned interest) 2,836,341 2,700,373 2,790,978 2,687,076 ---------------------------------------------------------------------------------------------- --------------------------- Allowance for possible loan losses 64,757 66,195 64,492 64,770 ---------------------------------------------------------------------------------------------- --------------------------- LOANS, NET 2,771,584 2,634,178 2,726,486 2,622,306 ---------------------------------------------------------------------------------------------- --------------------------- Bank premises and equipment, net 36,198 37,903 36,239 38,344 ---------------------------------------------------------------------------------------------- --------------------------- Other assets 198,955 176,999 189,813 177,553 ---------------------------------------------------------------------------------------------- --------------------------- TOTAL ASSETS $5,098,774 $4,658,536 $5,040,143 $4,822,966 ---------------------------------------------------------------------------------------------- --------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing $570,975 $516,406 $564,050 $514,053 ---------------------------------------------------------------------------------------------- --------------------------- Interest-bearing 2,981,788 2,911,736 2,946,887 2,907,782 ---------------------------------------------------------------------------------------------- --------------------------- TOTAL DEPOSITS 3,552,763 3,428,142 3,510,937 3,421,835 ---------------------------------------------------------------------------------------------- --------------------------- Borrowings 954,543 636,871 929,700 821,595 ---------------------------------------------------------------------------------------------- --------------------------- Other liabilities 66,478 72,171 66,713 63,530 ---------------------------------------------------------------------------------------------- --------------------------- TOTAL LIABILITIES 4,573,784 4,137,184 4,507,350 4,306,960 ---------------------------------------------------------------------------------------------- --------------------------- STOCKHOLDERS' EQUITY: Common stock 106,014 105,898 105,940 105,846 ---------------------------------------------------------------------------------------------- --------------------------- Accumulated other comprehensive income, net of taxes (607) 13,771 10,577 20,205 ---------------------------------------------------------------------------------------------- --------------------------- Retained earnings 507,747 470,306 496,245 457,886 ---------------------------------------------------------------------------------------------- --------------------------- Treasury stock (88,164) (68,623) (79,969) (67,931) ---------------------------------------------------------------------------------------------- --------------------------- TOTAL STOCKHOLDERS' EQUITY 524,990 521,352 532,793 516,006 ---------------------------------------------------------------------------------------------- --------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,098,774 $4,658,536 $5,040,143 $4,822,966 ---------------------------------------------------------------------------------------------- ---------------------------