EX-99.1 2 l25666aexv99w1.htm EX-99.1 EX-99.1
 

Exhibit 99.1
N e w s   R e l e a s e
April 16, 2007
For Immediate Release
Park National Corporation reports first quarter 2007 earnings
and declares cash dividend
NEWARK, Ohio — Park National Corporation (Park) (AMEX:PRK) today reported net income of $21.063 million for the first three months of 2007, an 11.5 percent decrease compared to the same period in 2006, when net income of $23.807 million was reported. Diluted earnings per share for the first quarter of this year were $1.49, a decrease of 11.8 percent from 2006’s first quarter diluted earnings per share of $1.69.
Park announced the declaration of a regular cash dividend of $.93 per share, an increase of 1.1 percent over the same period a year ago. The dividends are payable on June 8, 2007 to shareholders of record as of May 22, 2007.
Park made a provision to the allowance for loan and lease losses of $2.2 million in the first quarter of 2007. There was no loan loss provision expense during the first quarter of 2006.
As previously announced, Park concluded its merger transaction with Vision Bancshares, Inc. on March 9, 2007. Vision Bank of Gulf Shores, Alabama and Vision Bank of Panama City, Florida are Park’s two newest bank subsidiaries and added 22 days of earnings to net income for the first quarter of 2007.
Headquartered in Newark, Ohio, Park holds $6.307 billion in assets (based on asset totals as of March 31, 2007). Park and its subsidiaries consist of 14 community banking divisions, 12 of which are based in Ohio, 1 in Alabama and 1 in Florida, and 2 specialty finance companies. Park operates 153 offices through the following organizations: The Park National Bank, The Park National Bank of Southwest Ohio & Northern Kentucky Division, Fairfield National Division, The Richland Trust Company, Century National Bank, The First-Knox National Bank of Mount Vernon, 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, Vision Bank of Gulf Shores, Alabama, Vision Bank of Panama City, Florida, Scope Leasing, Inc., and Guardian Financial Services Company.
Media contacts:
Bethany White, Communication Specialist, 740.349.3754
John Kozak, Chief Financial Officer, 740.349.3792
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)
MARCH 31, 2007
INCOME STATEMENT
                         
    THREE MONTHS ENDED  
    MARCH 31,  
                    PERCENT  
    2007     2006     CHANGE  
NET INTEREST INCOME
  $ 54,898     $ 53,419       2.77 %
PROVISION FOR LOAN LOSSES
    2,205             100.00 %
OTHER INCOME
    16,174       15,393       5.07 %
GAIN (LOSS) ON SALE OF SECURITIES
                   
OTHER EXPENSE
    39,309       35,012       12.27 %
INCOME BEFORE TAXES
    29,558       33,800       -12.55 %
NET INCOME
    21,063       23,807       -11.53 %
NET INCOME PER SHARE-BASIC
    1.49       1.70       -12.35 %
NET INCOME PER SHARE-DILUTED
    1.49       1.69       -11.83 %
CASH DIVIDENDS PER SHARE
    0.93       0.92       1.09 %
 
                       
RATIOS AND OTHER INFORMATION
                       
RETURN ON AVERAGE ASSETS
    1.51 %     1.78 %        
RETURN ON AVERAGE EQUITY
    14.58 %     17.65 %        
YIELD ON EARNING ASSETS
    7.10 %     6.57 %        
COST OF PAYING LIABILITIES
    3.36 %     2.67 %        
NET INTEREST MARGIN
    4.31 %     4.37 %        
EFFICIENCY RATIO
    54.94 %     50.48 %        
NET LOAN CHARGE-OFFS (RECOVERIES)
  $ 2,199       ($1 )        
NET CHARGE-OFFS AS A PERCENT OF LOANS
    0.25 %     0.00 %        
BALANCE SHEET
AT MARCH 31,
                         
    2007     2006     PERCENT
CHANGE
 
INVESTMENTS
  $ 1,590,948     $ 1,683,274       -5.48 %
LOANS
    4,088,683       3,318,314       23.22 %
LOAN LOSS RESERVE
    79,839       69,695       14.55 %
GOODWILL AND OTHER INTANGIBLES
    198,228       68,551       189.17 %
TOTAL ASSETS
    6,307,455       5,444,445       15.85 %
DEPOSITS
    4,552,476       3,833,939       18.74 %
BORROWINGS
    1,010,970       989,312       2.19 %
EQUITY
    660,890       544,961       21.27 %
BOOK VALUE PER SHARE
    45.07       38.90       15.86 %
NONPERFORMING LOANS
    37,748       22,454       68.11 %
NONPERFORMING ASSETS
    42,346       25,349       67.05 %
PAST DUE 90 DAY LOANS
    2,881       5,490       -47.52 %
 
                       
RATIOS
                       
LOANS/ASSETS
    64.82 %     60.95 %        
NONPERFORMING LOANS/LOANS
    0.92 %     0.68 %        
PAST DUE 90 DAY LOANS/LOANS
    0.07 %     0.17 %        
LOAN LOSS RESERVE/LOANS
    1.95 %     2.10 %        
EQUITY/ASSETS
    10.48 %     10.01 %        
TANGIBLE EQUITY/TANGIBLE ASSETS
    7.57 %     8.86 %        


 

PARK NATIONAL CORPORATION
Consolidated Balance Sheets

(dollars in thousands, except share data)
                 
    March 31,  
    2007     2006  
 
 
               
Assets
               
 
               
Cash and due from banks
  $ 169,192     $ 146,389  
Money market instruments
    28,938       10,052  
Interest bearing deposits
    1       300  
Investment securities
    1,590,948       1,683,274  
 
               
Loans (net of unearned interest)
    4,088,683       3,318,314  
Allowance for possible loan losses
    79,839       69,695  
Loans, net
    4,008,844       3,248,619  
 
               
Bank premises and equipment, net
    64,946       47,149  
Goodwill and other intangible assets
    198,228       68,551  
Other assets
    246,358       240,111  
       
Total assets
  $ 6,307,455     $ 5,444,445  
       
 
               
Liabilities and Stockholders’ Equity
               
 
               
Deposits:
               
Noninterest-bearing
  $ 718,829     $ 654,689  
Interest-bearing
    3,833,647       3,179,250  
       
Total deposits
    4,552,476       3,833,939  
       
Borrowings
    1,010,970       989,312  
Other liabilities
    83,119       76,233  
       
Total liabilities
    5,646,565       4,899,484  
       
 
               
Stockholders’ Equity:
               
Common stock (No par value; 20,000,000 shares authorized in 2007 and 2006; 16,151,243 shares issued in 2007 and 15,272,258 in 2006)
    300,324       208,405  
Accumulated other comprehensive income, net of taxes
    (19,111 )     (25,280 )
Retained earnings
    527,677       487,816  
Treasury stock (1,486,382 shares in 2007 and 1,263,339 shares in 2006)
    (148,000 )     (125,980 )
       
Total stockholders’ equity
    660,890       544,961  
       
Total liabilities and stockholders’ equity
  $ 6,307,455     $ 5,444,445  
       


 

PARK NATIONAL CORPORATION
Consolidated Statements of Income

(dollars in thousands, except per share data)
                 
    Three Months Ended  
    March 31,  
    2007     2006  
 
               
Interest income:
               
Interest and fees on loans
  $ 71,182     $ 59,933  
Interest on:
               
Obligations of U.S. Government, its agencies and other securities
    18,547       19,564  
Obligations of states and political subdivisions
    813       977  
Other interest income
    294       122  
     
Total interest income
    90,836       80,596  
     
 
               
Interest expense:
               
Interest on deposits:
               
Demand and savings deposits
    8,097       5,004  
Time deposits
    17,581       12,316  
Interest on borrowings
    10,260       9,857  
     
Total interest expense
    35,938       27,177  
     
 
               
Net interest income
    54,898       53,419  
     
 
               
Provision for loan losses
    2,205        
     
 
               
Net interest income after provision for loan losses
    52,693       53,419  
     
 
               
Other income
    16,174       15,393  
 
               
Gain (loss) on sale of securities
           
 
               
Other expense:
               
Salaries and employee benefits
    22,460       20,046  
Occupancy expense
    2,538       2,262  
Furniture and equipment expense
    1,392       1,336  
Other expense
    12,919       11,368  
     
Total other expense
    39,309       35,012  
     
 
               
Income before federal income taxes
    29,558       33,800  
     
 
               
Income taxes
    8,495       9,993  
     
 
               
Net income
  $ 21,063     $ 23,807  
     
 
               
Per Share:
               
 
               
Net income — basic
  $ 1.49     $ 1.70  
Net income — diluted
  $ 1.49     $ 1.69  
 
               
Weighted average shares — basic
    14,121,331       14,034,360  
Weighted average shares — diluted
    14,138,517       14,095,895  


 

PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets

(dollars in thousands)
                 
    Three Months Ended  
    March 31,  
    2007     2006  
 
 
               
Assets
               
 
               
Cash and due from banks
  $ 150,773     $ 144,959  
Money market instruments
    23,395       9,067  
Interest bearing deposits
    1       300  
Investment securities
    1,536,664       1,664,820  
 
               
Loans (net of unearned interest)
    3,631,168       3,311,576  
Allowance for possible loan losses
    73,174       70,924  
       
Loans, net
    3,557,994       3,240,652  
       
 
               
Bank premises and equipment, net
    49,988       46,999  
Goodwill and other intangible assets
    108,794       68,954  
Other assets
    244,437       239,606  
       
Total assets
  $ 5,672,046     $ 5,415,357  
       
 
               
Liabilities and Stockholders’ Equity
               
 
               
Deposits:
               
Noninterest-bearing
  $ 656,765     $ 654,181  
Interest-bearing
    3,376,488       3,126,606  
       
Total deposits
    4,033,253       3,780,787  
       
Borrowings
    963,787       1,000,367  
Other liabilities
    89,304       87,120  
       
Total liabilities
    5,086,344       4,868,274  
       
 
               
Stockholders’ Equity:
               
Common stock
    236,509       208,392  
Accumulated other comprehensive income, net of taxes
    (22,810 )     (12,431 )
Retained earnings
    515,649       474,114  
Treasury stock
    (143,646 )     (122,992 )
       
Total stockholders’ equity
    585,702       547,083  
       
Total liabilities and stockholders’ equity
  $ 5,672,046     $ 5,415,357