-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Gk67d4VamHdGHFewGO8cth+/OsB8wAeKBSKhSEGm8VL6XQM9smntfZ0oHDaj5ZHs ByZXRnF6t6o12jcxViHMIA== 0000950152-96-003867.txt : 19960812 0000950152-96-003867.hdr.sgml : 19960812 ACCESSION NUMBER: 0000950152-96-003867 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960809 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARK NATIONAL CORP /OH/ CENTRAL INDEX KEY: 0000805676 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 311179518 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-13006 FILM NUMBER: 96606610 BUSINESS ADDRESS: STREET 1: 50 NORTH THIRD ST CITY: NEWARK STATE: OH ZIP: 43055 BUSINESS PHONE: 6143498451 MAIL ADDRESS: STREET 1: P O BOX 3500 CITY: NEWARK STATE: OH ZIP: 43058-3500 10-Q 1 PARK NATIONAL BANK 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number 1-13006 ------------------------------------------- Park National Corporation - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Ohio 31-1179518 - ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 50 North Third Street, Newark, Ohio 43055 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (614) 349-8451 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) N/A - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing require- ments for the past 90 days. Yes X No ------- ------- 7,141,532 common shares, no par value per share, outstanding at July 31, 1996. Page 1 of 18 Exhibit Index Page 16 2 PARK NATIONAL CORPORATION CONTENTS --------
Page PART I. FINANCIAL INFORMATION 3-8 Item 1. Financial Statements 3-8 Consolidated Balance Sheet as of June 30, 1996 and December 31, 1995 (unaudited) 3 Consolidated Condensed Statement of Income for the Three Months Ended and for the Six Months Ended June 30, 1996 and 1995 (unaudited) 4,5 Consolidated Statement of Cash Flows for the Six Months Ended June 30, 1996 and 1995 (unaudited) 6,7 Notes to Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial 9-15 Condition and Results of Operations PART II. OTHER INFORMATION 16 Item 1. Legal Proceedings 16 Item 2. Changes in Securities 16 Item 3. Defaults Upon Senior Securities 16 Item 4. Submission of Matters to a Vote of Security Holders 16 Item 5. Other Information 16 Item 6. Exhibits and Reports on Form 8-K 16 SIGNATURES 17 Exhibit 27 18
2 3 PARK NATIONAL CORPORATION Consolidated Balance Sheet (Unaudited) (Dollars in thousands, except per share data)
June 30, December 31, 1996 1995 ----------- ----------- Assets: Cash and due from banks $ 56,729 $ 92,752 Money market investments 21,700 0 Securities available-for-sale, at fair value (amortized cost of $314,928 and $308,298 at June 30, 1996 and December 31, 1995) 315,048 317,414 Securities held-to-maturity, at amortized cost (fair value approximates $12,508 and $11,917 at June 30, 1996 and December 31, 1995) 12,065 11,316 Loans (net of unearned interest) 1,031,530 1,024,727 Allowance for possible loan losses 26,565 25,073 Net loans 1,004,965 999,654 Bank premises and equipment, net 16,773 17,161 Other assets 43,253 37,911 ----------- ----------- Total assets $ 1,470,533 $ 1,476,208 Liabilities and Stockholders' Equity Deposits: Noninterest-bearing $ 164,386 $ 190,014 Interest-bearing 1,050,792 1,016,526 Total deposits 1,215,178 1,206,540 Short-term borrowings 101,885 113,992 Other liabilities 14,609 19,252 Total liabilities 1,331,672 1,339,784 Stockholders' Equity: Common stock (No par value; 20,000,000 shares authorized in 1996 and 10,000,000 authorized in 1995; 7,222,610 shares issued in 1996 and 1995) 26,819 26,819 Unrealized holding gain on available-for-sale securities, net 78 5,926 Retained earnings 114,404 106,508 Treasury stock (79,238 shares in 1996 and 87,388 shares in 1995) (2,440) (2,829) Total stockholders' equity 138,861 136,424 ----------- ----------- Total liabilities and stockholders' equity $ 1,470,533 $ 1,476,208
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 3 4 PARK NATIONAL CORPORATION Consolidated Condensed Statement of Income (Unaudited) (Dollars in thousands, except per share data)
Three Months Six Months Ended June 30, Ended June 30, 1996 1995 1996 1995 ------- ------- ------- ------- Interest Income: Interest & fees on loans $23,941 $23,126 $48,057 $44,689 Interest on: Obligations of U.S. Govt., its agencies & other securities 5,353 4,430 10,573 8,802 Obligations of states & political subdivisions 154 157 297 316 Other interest income 468 103 892 167 Total interest income 29,916 27,816 59,819 53,974 Interest expense: Interest on deposits: Demand & savings deposits 3,040 3,219 6,109 6,472 Time deposits 7,907 6,614 15,745 12,113 Non-deposit interest 1,140 1,646 2,552 3,441 Total interest expense 12,087 11,479 24,406 22,026 Net interest income 17,829 16,337 35,413 31,948 Provision for loan losses 1,005 1,000 2,010 1,910 Net interest income after provision 16,824 15,337 33,403 30,038
4 5 PARK NATIONAL CORPORATION Consolidated Condensed Statement of Income (Unaudited) - (Continued) (Dollars in thousands, except per share data)
Three Months Six Months Ended June 30, Ended June 30, 1996 1995 1996 1995 ----------- ---------- ----------- ----------- Other income $ 3,587 $ 3,175 $ 7,268 $ 6,564 Loss on sale of securities (401) 0 (695) (614) Other expense: Salaries & employee benefits 5,263 4,951 10,734 10,036 Occupancy 528 502 1,123 1,012 Furniture & equipment 561 520 1,121 1,043 Other expenses 3,598 4,000 7,956 7,965 Total other expense 9,950 9,973 20,934 20,056 Income before federal income taxes 10,060 8,539 19,042 15,932 Federal income taxes 3,256 2,826 6,143 5,203 Net income $ 6,804 $ 5,713 $ 12,899 $ 10,729 =========== ========== =========== =========== Per Share: Net income $ 0.96 $ 0.79 $ 1.81 $ 1.49 Weighted average common shares outstanding 7,141,679 7,178,028 7,138,858 7,183,839 Cash dividends declared $ 0.35 $ 0.30 $ 0.70 $ 0.60
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5 6 PARK NATIONAL CORPORATION Consolidated Statement of Cash Flows (Unaudited) (Dollars in thousands)
Six Months Ended June 30, 1996 1995 -------- -------- Operating activities: Net income $ 12,899 $ 10,729 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization & accretion 189 317 Provision for loan losses 2,010 1,910 Amortization of the excess of cost over net assets of banks purchased 130 234 Realized investment security losses 695 614 Changes in assets & liabilities: Increase in other assets (2,323) (1,244) Decrease in other liabilities (2,146) (5,123) Net cash provided by operating activities 11,454 7,437 Investing activities: Proceeds from sales of: Available-for-sale securities 37,635 31,362 Proceeds from maturities of: Available-for-sale securities 52,640 26,883 Held-to-maturity securities 826 929 Purchases of: Available-for-sale securities (97,012) (50,679) Held-to-maturity securities (1,575) (914) Net increase in loans (7,091) (29,358) Purchases of premises & equipment, net (619) (720) Net cash used by investing activities (15,196) (22,497)
6 7 PARK NATIONAL CORPORATION Consolidated Statement of Cash Flows (Unaudited) - (Continued) (Dollars in thousands)
Six Months Ended June 30, 1996 1995 -------- -------- Financing activities: Net increase in deposits $ 8,638 $ 49,887 Decrease in short-term borrowings (12,107) (31,575) Reissue (purchase) of treasury stock 389 (1,523) Cash dividends paid (7,501) (6,465) Net cash (used by) provided by financing activities (10,581) 10,324 Decrease in cash and cash equivalents (14,323) (4,736) Cash & cash equivalents at beginning of year 92,752 64,116 Cash & cash equivalents at end of period $ 78,429 $ 59,380 ======== ======== Supplemental disclosures of cash flow information: Cash paid for: Interest $ 24,757 $ 21,437 Income taxes 7,700 3,300
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 7 8 PARK NATIONAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the Three and Six Month Periods Ended June 30, 1996 and 1995. Note 1 - Basis of Presentation --------------------- The consolidated financial statements included in this report have been prepared by Park National Corporation (the "Registrant", "Corporation", or "Park") without audit. In the opinion of management, all adjustments (consisting solely of normal recurring accruals) necessary for a fair presentation of results of operations for the interim periods included herein have been made. The results of operations for the periods ended June 30, 1996 are not necessarily indicative of the operating results to be anticipated for the fiscal year ended December 31, 1996. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q, and therefore, do not include all information and footnotes necessary for a fair presentation of the balance sheet, condensed statement of income and statement of cash flows in conformity with generally accepted accounting principles. These financial statements should be read in conjunction with the financial statements included in the Annual Report for the year ended December 31, 1995. Certain amounts in prior periods have been reclassified to conform to the financial statement presentation used for current periods. 8 9 ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Comparison of Results of Operations for the Three and Six Month Periods Ended June 30, 1996 and 1995 Net Interest Income - ------------------- The Corporation's principal source of earnings is net interest income, the difference between total interest income and total interest expense. Net interest income increased by $1.5 million or 9.1% to $17.8 million for the three months ended June 30, 1996 compared to $16.3 million for the second quarter of 1995. The following table indicates that the tax equivalent net interest margin (defined as net interest income divided by average earning assets) increased to 5.34% for the second quarter of 1996 compared to 5.26% for the second quarter of 1995.
Three Months Ended June 30th (In Thousands) 1996 1995 ---------------------- ---------------------- Tax Tax Average Equivalent Average Equivalent Balance % Balance % ---------------------- ---------------------- Loans, Net $ 991,648 9.74% $ 980,854 9.48% Taxable $ 315,372 6.83% $ 259,150 6.86% Investments Tax-Exempt Investments $ 10,195 8.71% $ 10,422 8.74% Money Markets $ 35,433 5.31% $ 6,656 6.24% ------------ ------ ------------ ------- Interest-Earning $1,352,648 8.93% $1,257,082 8.92% Assets ------------ ------- ------------ ------- Interest-Bearing $1,048,154 4.20% $ 959,652 4.11% Deposits Borrowings $ 105,944 4.33% $ 126,823 5.21% ---------- ----- ---------- ----- Interest-Bearing $1,154,098 4.21% $1,086,475 4.24% Liabilities ---------- ----- ---------- ----- Excess Interest- $ 198,550 4.72% $ 170,607 4.68% Earning Assets Net Interest Margin 5.34% 5.26%
9 10 Average interest-earning assets increased by 7.6% to $1,353 million for the quarter ended June 30, 1996 compared to the same quarter in 1995. Net average loans outstanding increased by 1.1% to $992 million for the second quarter of 1996 compared to the same period in 1995. Average investment securities including money markets increased by 30.7% to $361 million in 1996 compared to $276 million in 1995. The growth in average net loans outstanding of 1.1% in 1996 is somewhat slower than the 10.4% loan growth rate in the second quarter of 1995. The primary reason for the slower growth in net average loan balances has been weaker loan demand. Excess funds generated from the growth of interest-bearing deposits, and not needed to fund loans, have increased average investment securities and money markets by 30.7%. Average interest-bearing liabilities increased by 6.2% to $1,154 million for the three months ended June 30, 1996 compared to the same quarter in 1995. This increase was due to a 9.2% increase in average interest-bearing deposits to $1,048 million in the second quarter of 1996 compared to the same quarter in 1995. The increase in average interest-bearing deposits was primarily due to an increase in the average balance of certificates of deposit which have been more attractive to customers due to higher interest rates being paid on these deposits. For the three months ended June 30, 1996, the net interest spread improved to 4.72% compared to 4.68% for the same quarter in 1995. The average yield on interest-earning assets increased by .01% to 8.93% and the average cost of interest-bearing liabilities decreased by .03% to 4.21%. The net interest margin increased to 5.34% for the second quarter of 1996 compared to 5.26% for the same quarter in 1995. The increase in the net interest margin was due to the increase in the net interest spread and the increase in the amount of excess interest-earning assets. Net interest income increased by $3.5 million or 10.8% to $35.4 million for the six months ended June 30, 1996 compared to $31.9 million for the same period in 1995. The following table indicates that the tax equivalent net interest margin increased to 5.32% for the first half of 1996 compared to 5.22% for the first half of 1995.
Six Months Ended June 30th (In Thousands) 1996 1995 ---------------------- ---------------------- Tax Tax Average Equivalent Average Equivalent Balance % Balance % ---------------------- ---------------------- Loans, Net $ 991,928 9.77% $ 971,854 9.30% Taxable $ 313,948 6.77% $ 256,964 6.91% Investments
10 11 Tax-Exempt Investments $ 9,750 8.80% $ 10,403 8.86% Money Markets $ 33,643 5.33% $ 5,536 6.10% ------------ ------ ------------ ------- Interest-Earning $1,349,269 8.95% $1,244,757 8.79% Assets ------------ ------- ------------ ------- Interest-Bearing $1,036,938 4.24% $ 946,835 3.96% Deposits Borrowings $ 113,611 4.52% $ 132,407 5.24% ---------- ----- ---------- ----- Interest-Bearing $1,150,549 4.27% $1,079,242 4.12% Liabilities ---------- ----- ---------- ----- Excess Interest- $ 198,720 4.68% $ 165,515 4.67% Earning Assets Net Interest Margin 5.32% 5.22%
Average interest-earning assets increased by 8.4% to $1,349 million for the six months ended June 30, 1996 compared to the same period in 1995. Net average loans outstanding increased by 2.1% to $992 million for the first half of 1996 compared to the same period in 1995. Average investment securities including money markets increased by 30.9% to $357 million in 1996 compared to $273 million in 1995. The primary reason for the slow growth in net average loan balances has been weaker loan demand. Excess funds generated from the growth of interest-bearing deposits, and not needed to fund loans, have increased average investment securities and money market by 30.9%. Average interest-bearing liabilities increased by 6.6% to $1,151 million for the six months ended June 30, 1996 compared to the same period in 1995. This increase was due to a 9.5% increase in average interest-bearing deposits to $1,037 million for the first half of 1996 compared to the same period in 1995. The increase in average interest-bearing deposits was primarily due to an increase in the average balance of certificates of deposit. For the six months ended June 30, 1996, the net interest spread improved to 4.68% compared to 4.67% for the same period in 1995. The average yield on interest-earning assets increased by .16% to 8.95% and the average cost of interest-bearing liabilities increased by .15% to 4.27%. The net interest margin increased to 5.32% for the first half of 1996 compared to 5.22% for the same period in 1995. This increase was primarily due to both the increase in the amount of excess interest-earning assets and the increase in the yield on those assets to 8.95% in 1996 compared to 8.79% in 1995. 11 12 Provision For Loan Losses - ------------------------- The provision for loan losses increased by $5,000 to $1,005,000 for the three months ended June 30, 1996 and by $100,000 to $2,010,000 for the six months ended June 30, 1996 compared to the same periods in 1995. Net charge-offs were $317,000 and $518,000, respectively, for the three and six month periods ended June 30, 1996 compared to net charge-offs of $230,000 and $246,000, respectively, for the same periods in 1995. Non-performing loans, defined as loans that are 90 days past due, renegotiated loans and non-accrual loans, were $4.2 million or .41% of loans at June 30, 1996 compared to $4.5 million or .43% of loans at December 31, 1995 and $5.0 million or .50% of loans at June 30, 1995. The reserve for loan losses as a percentage of outstanding loans was 2.58% at June 30, 1996 compared to 2.45% at December 31, 1995 and 2.30% at June 30, 1995. Non-Interest Income - ------------------- Non-interest income increased by $412,000 or 13.0% to $3.6 million for the three months ended June 30, 1996 and increased by $704,000 or 10.7% to $7.3 million for the six months ended June 30, 1996 compared to the same periods in 1995. The increase in non-interest income for both periods in 1996 compared to 1995 was due to increases in non-yield loan fees, service charges on deposit accounts, and fees from fiduciary activities. The increase in non-yield loan fees resulted from increased originations and sales into the secondary market of fixed rate mortgage loans. Security Losses - --------------- Investment security losses were $401,000 for the three month period ended June 30, 1996 and $695,000 for the first half of 1996 compared to no loss for the second quarter of 1995 and a loss of $614,000 for the first half of 1995. In both 1996 and 1995, taxable investment securities were sold and the proceeds reinvested into taxable investment securities with slightly longer maturities. The average life of the taxable investment portfolio was approximately three years at June 30, 1996 and 1995. During the first half of 1996, longer-term taxable investment rates increased which resulted in the net unrealized holding gain on available-for-sale securities decreasing to $78,000 at June 30, 1996 compared to $5.9 million at December 31, 1995. If this trend of higher interest rates were to continue, the Corporation could realize additional investment security losses in the second half of 1996. Other Expense - ------------- Total other expense decreased by $23,000 to $9.95 million for the three month period ended June 30, 1996 compared to $9.97 million for 12 13 the same period in 1995. This decrease was due to a $402,000 decrease to $3.6 million in the subcategory other expense which exceeded the increases in salaries and employee benefits, occupancy, and furniture & equipment expense. The decrease in the subcategory other expense was due to a $435,000 decrease in deposit insurance premiums as a result of the reduction in the deposit insurance rate for banks in 1996. The subcategory other expense also includes data processing expense, fees and service charges, marketing, telephone, postage, and expenses pertaining to other real estate owned. Salaries and employee benefits expense increased by $312,000 or 6.3% to $5.3 million for the quarter ended June 30, 1996 compared to the same quarter in 1995. Full time equivalent employees were 703 at June 30, 1996 compared to 671 at June 30, 1995. For the six months ended June 30, 1996, total other expense increased by $878,000 or 4.4% to $20.9 million compared to the same period in 1995. This increase was primarily due to a $698,000 or 6.9% increase to $10.7 million in salaries and employee benefits expense for the first half of 1996 compared to $10.0 million for the same period in 1995. In the subcategory other expense, increases in data processing expense, fees & service charges, and miscellaneous expense offset the decrease in deposit insurance premiums for the first six months of 1996 compared to the same period in 1995. Federal Income Taxes - -------------------- Federal income tax expense increased by $430,000 to $3.3 million and by $940,000 to $6.1 million for the three and six month periods ended June 30, 1996, respectively, compared to the same periods in 1995. The ratio of federal income tax expense to income before taxes was approximately 32.5% for both periods in 1996 and 1995. Net Income - ---------- Net income increased by $1.1 million or 19.1% to $6.8 million for the three months ended June 30, 1996 compared to $5.7 million for the same period in 1995. For the six months ended June 30, 1996, net income increased by $2.2 million or 20.2% to $12.9 million compared to $10.7 million for the same period in 1995. The annualized, net income to average asset ratio (ROA) was 1.87% and 1.78%, respectively, for the three and six month periods ended June 30, 1996 compared to 1.67% and 1.59%, respectively, for the same periods in 1995. The annualized, net income to average equity ratios (ROE) was 20.1% and 19.0%, respectively, for the three and six month periods ended June 30, 1996 compared to 18.7% and 18.1%, respectively, for the same periods in 1995. 13 14 COMPARISON OF FINANCIAL CONDITION FOR JUNE 30, 1996 AND DECEMBER 31, 1995 Changes in Financial Condition and Liquidity - -------------------------------------------- Total assets decreased by $5.7 million to $1,470 million at June 30, 1996 compared to $1,476 million at December 31, 1995. Cash and due from banks decreased by $36.0 million to $56.7 million at June 30, 1996 compared to $92.7 million at December 31, 1995. This decrease was primarily due to a decrease in noninterest-bearing deposits of $25.6 million to $164.4 million at June 30, 1996 compared to $190.0 million at December 31, 1995. Noninterest-bearing deposit accounts had temporarily increased at year-end 1995 which caused cash and due from banks to also temporarily increase. The average balance for cash and due from banks was $55 million for the first half of 1996 and the average 1996 balance for noninterest-bearing deposit accounts was $156 million. Federal funds sold and investment securities increased by $20.1 million and loans increased by $6.8 million during the first half of 1996 which partially offset the $36.0 million decrease in cash and due from banks. Loan balances were 70.1% of total assets at June 30, 1996 compared to 69.4% at December 31, 1995 and 72.8% of total assets at June 30, 1995. Total liabilities decreased by $8.1 million to $1,332 million at June 30, 1996 compared to $1,340 million at December 31, 1995. This decrease was primarily due to the $25.6 million decrease in noninterest-bearing deposit accounts and a $12.1 million decrease in short-term borrowings. These decreases were partially offset by the $34.3 million increase in interest-bearing deposits which resulted primarily from an increase in certificates of deposit. Capital Resources - ----------------- Stockholders' equity at June 30, 1996 was $138.9 million or 9.44% of total assets compared to $136.4 million or 9.24% of total assets at December 31, 1995 and $128.1 million or 9.23% of total assets at June 30, 1995. Financial institution regulators have established guidelines for minimum capital ratios and well capitalized capital ratios for banks, thrifts, and bank holding companies. The unrealized net gain on available-for-sale securities is not included in computing regulatory capital. The minimum leverage capital ratio (defined as stockholders' equity less intangible assets divided by assets less intangible assets) is 4% and the well capitalized ratio is greater than or equal to 5%. Park's leverage capital ratio was 9.39% at June 30, 1996 and 8.91% at December 31, 1995. The minimum Tier I risk-based capital ratio (defined as leverage capital divided by risk-adjusted assets) is 4% and the well capitalized ratio is greater than or equal to 6%. 14 15 Park's Tier I risk-based capital ratio was 14.05% at June 30, 1996 and 13.35% at December 31, 1995. The minimum total risk-based capital ratio (defined as leverage capital plus supplemental capital divided by risk-adjusted assets) is 8% and the well capitalized ratio is greater than or equal to 10%. Park's total risk-based capital ratio was 15.31% at June 30, 1996 and 14.61% at December 31, 1995. The financial institution subsidiaries of Park each met the applicable well capitalized capital ratio guidelines at June 30, 1996. The following table indicates the capital ratios for each subsidiary at June 30, 1996:
Tier I Total Leverage Risk-Based Risk-Based -------- ---------- ---------- Park National Bank 8.37% 12.11% 13.38% Richland Trust Company 8.13% 12.73% 14.00% Mutual Federal Savings Bank 7.60% 12.90% 14.16%
At the July 15, 1996 Park National Corporation Board of Directors' Meeting, a cash dividend of $.35 per share was declared payable on September 10, 1996 to shareholders of record on August 23, 1996. 15 16 PARK NATIONAL CORPORATION PART II - OTHER INFORMATION Item 1. Legal Proceedings ----------------- Park National Corporation is not engaged in any legal proceedings of a material nature at the present time. Item 2. Changes in Securities --------------------- Not applicable Item 3. Defaults Upon Senior Securities ------------------------------- Not applicable Item 4. Submission of Matters to a Vote of Security Holders --------------------------------------------------- Not applicable Item 5. Other Information ----------------- Not applicable Item 6. Exhibits and Reports on Form 8-K -------------------------------- a. Exhibits -------- See Exhibit 27, Financial Data Schedule on Page 18 b. Reports on Form 8-K ------------------- No reports on Form 8-K were filed during the quarter ended June 30, 1996. 16 17 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PARK NATIONAL CORPORATION DATE: August 9, 1996 BY: /S/ C. Daniel DeLawder --------------- ---------------------------------- C. Daniel DeLawder President DATE: August 9, 1996 BY: /s/ David C. Bowers --------------- ---------------------------------- David C. Bowers Chief Financial Officer/Secretary 17 EX-27 2 EXHIBIT 27
9 1,000 6-MOS DEC-31-1996 JAN-01-1996 JUN-30-1996 56,729 0 21,700 0 315,048 12,065 12,508 1,031,530 26,565 1,470,533 1,215,178 101,885 14,609 0 26,819 0 0 112,042 1,470,533 48,057 10,870 892 59,819 21,854 24,406 35,413 2,010 (695) 20,934 19,042 12,899 0 0 12,899 1.81 1.81 5.32 1,844 873 1,485 0 25,073 1,731 1,213 26,565 26,565 0 0
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