Unassociated Document

News Release

April 15, 2011

Exhibit 99.1

Park National Corporation Reports First Quarter 2011

Financial Results and Continues $0.94 Quarterly Dividend

NEWARK, Ohio – Park National Corporation (Park) (NYSE Amex: PRK) today reported financial results for the three months ended March 31, 2011 (first quarter). Also, Park's Board of Directors approved a $0.94 per common share quarterly cash dividend, payable on June 10, 2011 to common shareholders of record as of May 25, 2011.

Net income for the first quarter of 2011 was $21.4 million, an increase from the $20.8 million in net income for the same period in 2010. Net income per diluted common share was $1.29, a 0.8 percent decline from the $1.30 net income per diluted common share reported in the first quarter of 2010.

Net income for the periods ended March 31, 2011 and 2010 included pre-tax gains of $6.6 million and $8.3 million, respectively, from the sale of investment securities. Excluding these gains, net income for the first quarter of 2011 was $17.1 million or $1.01 per diluted common share, compared to net income of $15.4 million or $0.94 per diluted common share in 2010, which represented a 7.4 percent increase in net income per diluted common share.

“With national and regional economic conditions showing modest improvement, we are very pleased with this year’s first quarter results,” said Park Chairman C. Daniel DeLawder. “Our Ohio-based operations continue to perform at very strong levels driven largely by the consistent delivery of superior levels of customer service.”

Ohio-Based Operations

Park's Ohio-based operations reported net income of $29.0 million for the first quarter of 2011, compared to net income of $28.2 million for the same period in 2010. Park’s Ohio-based operations had total assets of $6.5 billion at March 31, 2011, compared to $6.3 billion at March 31, 2010. This performance resulted in return on assets of 1.82 percent and 1.85 percent for Park’s Ohio-based operations in the first quarter of 2011 and 2010, respectively.

Credit Quality

Total nonperforming loans (including loans past due 90 days and still accruing) were $281.3 million at March 31, 2011, a 4.0 percent decline from the $292.9 million in nonperforming loans at December 31, 2010. Net loan charge-offs for the first quarter of 2011 were $8.0 million, or an annualized 0.69 percent of average loans outstanding. Net loan charge-offs in the first quarter of 2010 were $13.6 million, or an annualized 1.19 percent of average loans.

Park's loan loss provision for the first quarter of 2011 was $13.5 million, compared to $16.6 million for the same period in 2010. Of the $13.5 million loan loss provision recorded in the first quarter of 2011, $8.0 million was recorded at Vision Bank, with the remaining $5.5 million recorded within Park's Ohio-based operations. Park’s allowance for loan losses increased by $5.5 million during the first quarter of 2011, ending the period at $126.9 million or 2.67 percent of period-end loans.

Headquartered in Newark, Ohio, Park National Corporation has $7.3 billion in total assets (as of March 31, 2011). Park consists of 13 community bank divisions and two specialty finance companies. Park's Ohio-based banking operations are conducted through Park subsidiary The Park National Bank and its divisions which include Fairfield National Bank Division, Richland Bank Division, Century National Bank Division, First-Knox National Bank Division, Farmers & Savings Bank Division, United Bank Division, Second National Bank Division, Security National Bank Division, Unity National Bank Division, The Park National Bank of Southwest Ohio & Northern Kentucky Division and Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance). Park's other banking subsidiary is Vision Bank (headquartered in Panama City, Florida), and its Vision Bank Division (of Gulf Shores, Alabama). Park also includes Guardian Financial Services Company (d.b.a. Guardian Finance Company).

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

Media contacts: Bethany Lewis, 740.349.0421, blewis@parknationalbank.com or John Kozak, 740.349.3792

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation: deterioration in the asset value of Park's loan portfolio may be worse than expected due to a number of factors, such as adverse changes in economic conditions that impair the ability of borrowers to repay their loans, the underlying value of the collateral could prove less valuable than assumed and cash flows may be worse than expected; Park’s ability to sell OREO properties at prices as favorable as anticipated; Park's ability to execute its business plan successfully and within the expected timeframe; general economic and financial market conditions, and weakening in the economy, specifically the real estate market and credit market, either nationally or in the states in which Park and its subsidiaries do business, may be worse than expected which could decrease the demand for loan, deposit and other financial services and increase loan delinquencies and defaults; the effects of the Gulf of Mexico oil spill; changes in market rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our consolidated balance sheet; changes in consumer spending, borrowing and saving habits; our liquidity requirements could be adversely affected by changes in our assets and liabilities; competitive factors among financial institutions increase significantly, including product and pricing pressures and our ability to attract, develop and retain qualified bank professionals; the nature, timing and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and its subsidiaries, including changes in laws and regulations concerning taxes, accounting, banking, securities and other aspects of the financial services industry, specifically the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of fiscal and governmental policies of the United States federal government; demand for loans in the respective market areas served by Park and its subsidiaries, and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the Securities and Exchange Commission including those described in "Item 1A. Risk Factors" of Part I of Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2010. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Park does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Park National Corporation

50 N. Third Street, Newark, Ohio 43055

www.parknationalcorp.com

PARK NATIONAL CORPORATION

Financial Highlights

Three months ended March 31, 2011, December 31, 2010, and March 31, 2010

	2011			2010			2010			Percent change vs.
(in thousands, except share and per share data)	1st QTR			4th QTR			1st QTR			4Q '10			1Q '10
INCOME STATEMENT:
Net interest income	$	69,313		$	68,498		$	67,380			1.2	%		2.9	%
Provision for loan losses		13,500			20,448			16,550			-34.0	%		-18.4	%
Other income		13,171			14,745			16,710			-10.7	%		-21.2	%
Gain on sale of securities		6,635			45			8,304		N.M.				-20.1	%
Total other expense		46,346			46,520			47,890			-0.4	%		-3.2	%
Income before income taxes	$	29,273		$	16,320		$	27,954			79.4	%		4.7	%
Income taxes		7,895			3,625			7,175			117.8	%		10.0	%

Net income	$	21,378		$	12,695		$	20,779			68.4	%		2.9	%

Preferred stock dividends and accretion		1,464			1,452			1,452			0.8	%		0.8	%

Net income available to common shareholders	$	19,914		$	11,243		$	19,327			77.1	%		3.0	%

MARKET DATA:
Earnings per common share - basic (b)	$	1.29		$	0.73		$	1.30			76.7	%		-0.8	%
Earnings per common share - diluted (b)		1.29			0.73			1.30			76.7	%		-0.8	%
Cash dividends per common share		0.94			0.94			0.94			0.0	%		0.0	%
Common book value per common share at period end (h)		42.06			42.12			41.94			-0.1	%		0.3	%
Stock price per common share at period end		66.82			72.67			62.31			-8.1	%		7.2	%
Market capitalization at period end		1,028,956			1,119,040			927,345			-8.1	%		11.0	%

Weighted average common shares - basic (a)		15,398,930			15,340,427			14,882,774			0.4	%		3.5	%
Weighted average common shares - diluted (a)		15,403,420			15,352,600			14,882,774			0.3	%		3.5	%
Common shares outstanding at period end		15,398,923			15,398,934			14,882,765			0.0	%		3.5	%

PERFORMANCE RATIOS:
Annualized return on average assets (a)(b)		1.11	%		0.64	%		1.11	%		73.4	%		0.0	%
Annualized return on average common equity (a)(b)		12.42	%		6.72	%		12.43	%		84.8	%		-0.1	%
Yield on loans		5.63	%		5.73	%		5.87	%		-1.7	%		-4.1	%
Yield on investments		3.95	%		3.87	%		4.43	%		2.1	%		-10.8	%
Yield on earning assets		5.14	%		5.23	%		5.45	%		-1.7	%		-5.7	%
Cost of interest bearing deposits		0.74	%		0.82	%		1.15	%		-9.8	%		-35.7	%
Cost of borrowings		2.50	%		2.76	%		2.90	%		-9.4	%		-13.8	%
Cost of paying liabilities		1.14	%		1.21	%		1.49	%		-5.8	%		-23.5	%
Net interest margin (annualized)		4.21	%		4.25	%		4.22	%		-0.9	%		-0.2	%
Efficiency ratio (g)		55.84	%		55.52	%		56.63	%		0.6	%		-1.4	%

OTHER RATIOS (NON GAAP):
Annualized return on average tangible assets (a)(b)(e)		1.12	%		0.64	%		1.12	%		75.0	%		0.0	%
Annualized return on average tangible common equity (a)(b)(c)		14.11	%		7.63	%		14.27	%		84.9	%		-1.1	%
Tangible common book value per common share (d)	$	37.02		$	37.03		$	36.51			0.0	%		1.4	%

PARK NATIONAL CORPORATION

Financial Highlights (continued)

Three months ended March 31, 2011, December 31, 2010, and March 31, 2010

										Percent change vs.
BALANCE SHEET:	March 31, 2011			December 31, 2010			March 31, 2010			4Q '10			1Q '10
Investment securities	$	2,045,656		$	2,039,791		$	1,941,465			0.3	%		5.4	%
Loans		4,750,975			4,732,685			4,597,304			0.4	%		3.3	%
Allowance for loan losses		126,859			121,397			119,674			4.5	%		6.0	%
Goodwill and other intangibles		77,708			78,377			80,863			-0.9	%		-3.9	%
Other real estate owned		47,133			44,325			45,854			6.3	%		2.8	%
Total assets		7,338,403			7,298,377			7,176,087			0.5	%		2.3	%
Total deposits		5,314,678			5,095,420			5,268,858			4.3	%		0.9	%
Borrowings		1,178,678			1,375,652			996,686			-14.3	%		18.3	%
Stockholders' equity		745,238			745,824			720,898			-0.1	%		3.4	%
Common equity		647,734			648,534			624,213			-0.1	%		3.8	%
Tangible common equity (d)		570,026			570,157			543,350			0.0	%		4.9	%
Nonperforming loans		279,079			289,268			230,558			-3.5	%		21.0	%
Nonperforming assets		326,212			333,593			276,412			-2.2	%		18.0	%
Past due 90 day loans and still accruing		2,228			3,590			11,853			-37.9	%		-81.2	%

ASSET QUALITY RATIOS:
Loans as a % of period end assets		64.74	%		64.85	%		64.06	%		-0.2	%		1.1	%
Nonperforming loans as a % of period end loans		5.87	%		6.11	%		5.02	%		-3.9	%		16.9	%
Past due 90 day loans as a % of period end loans		0.05	%		0.08	%		0.26	%		-37.5	%		-80.8	%
Nonperforming assets / Period end loans + OREO		6.80	%		6.98	%		5.95	%		-2.6	%		14.3	%
Allowance for loan losses as a % of period end loans		2.67	%		2.57	%		2.60	%		3.9	%		2.7	%
Net loan charge-offs	$	8,038		$	16,456		$	13,593			-51.2	%		-40.9	%
Annualized net loan charge-offs as a % of average loans (a)		0.69	%		1.39	%		1.19	%		-50.4	%		-42.0	%

CAPITAL & LIQUIDITY:
Total equity / Period end assets		10.16	%		10.22	%		10.05	%		-0.6	%		1.1	%
Common equity / Period end assets		8.83	%		8.89	%		8.70	%		-0.7	%		1.5	%
Tangible common equity (d) / Tangible assets (f)		7.85	%		7.90	%		7.66	%		-0.6	%		2.5	%
Average equity / Average assets (a)		10.28	%		10.84	%		10.26	%		-5.2	%		0.2	%
Average equity / Average loans (a)		15.77	%		16.20	%		15.75	%		-2.7	%		0.1	%
Average loans / Average deposits (a)		91.19	%		91.68	%		88.19	%		-0.5	%		3.4	%

PARK NATIONAL CORPORATION

Financial Highlights (continued)

N.M. - Not Meaningful

(a) Averages are for the quarters ended March 31, 2011, December 31, 2010, and March 31, 2010.

(b) Reported measure uses net income available to common shareholders.

(c) Net income available to common shareholders for each period divided by average tangible common equity during the period. Average tangible common equity equals average stockholders' equity during the applicable period less (i) average preferred stock during the applicable period and (ii) average goodwill and other intangibles during the applicable period.

RECONCILIATION OF AVERAGE STOCKHOLDERS' EQUITY TO AVERAGE TANGIBLE COMMON EQUITY:

	THREE MONTHS ENDED
	March 31, 2011		December 31, 2010		March 31, 2010
AVERAGE STOCKHOLDERS' EQUITY	$	747,896	$	760,556	$	727,237
Less: Average preferred stock		97,380		97,174		96,568
Average goodwill and other intangibles		78,067		78,823		81,376
AVERAGE TANGIBLE COMMON EQUITY	$	572,449	$	584,559	$	549,293

(d) Tangible common equity equals ending stockholders' equity less preferred stock and goodwill and other intangibles, in each case at the end of the period.

RECONCILIATION OF STOCKHOLDERS' EQUITY TO TANGIBLE COMMON EQUITY:
	March 31, 2011		December 31, 2010		March 31, 2010
STOCKHOLDERS' EQUITY	$	745,238	$	745,824	$	720,898
Less: Preferred stock		97,504		97,290		96,685
Goodwill and other intangibles		77,708		78,377		80,863
TANGIBLE COMMON EQUITY	$	570,026	$	570,157	$	543,350

(e) Net income available to common shareholders for each period divided by average tangible assets during the period. Average tangible assets equals average assets less average goodwill and other intangibles.

RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS:

	THREE MONTHS ENDED
	March 31, 2011		December 31, 2010		March 31, 2010
AVERAGE ASSETS	$	7,274,527	$	7,013,852	$	7,086,333
Less: Average goodwill and other intangibles		78,067		78,823		81,376
AVERAGE TANGIBLE ASSETS	$	7,196,460	$	6,935,029	$	7,004,957

(f) Tangible common equity divided by tangible assets. Tangible assets equals total assets less goodwill and other intangibles.

RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
	March 31, 2011		December 31, 2010		March 31, 2010
TOTAL ASSETS	$	7,338,403	$	7,298,377	$	7,176,087
Less: Goodwill and other intangibles		77,708		78,377		80,863
TANGIBLE ASSETS	$	7,260,695	$	7,220,000	$	7,095,224

PARK NATIONAL CORPORATION

Financial Highlights (continued)

(g) Efficiency ratio is calculated by taking total other expense divided by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown below assuming a 35% tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis.

RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME

	THREE MONTHS ENDED
	March 31, 2011		December 31, 2010		March 31, 2010
Interest income	$	84,662	$	84,391	$	87,202
Fully taxable equivalent adjustment		518		540		481
Fully taxable equivalent interest income	$	85,180	$	84,931	$	87,683
Interest expense		15,349		15,893		19,822
Fully taxable equivalent net interest income	$	69,831	$	69,038	$	67,861

(h) Common book value at period end equals stockholders' equity less preferred stock, in each case at the end of the period.

RECONCILIATION OF STOCKHOLDERS' EQUITY TO COMMON EQUITY

	March 31, 2011		December 31, 2010		March 31, 2010
STOCKHOLDERS' EQUITY	$	745,238	$	745,824	$	720,898
Less: Preferred stock		97,504		97,290		96,685
COMMON EQUITY	$	647,734	$	648,534	$	543,350

PARK NATIONAL CORPORATION

Consolidated Statements of Income

	Three Months Ended
	March 31,
(in thousands, except share and per share data)	2011		2010

Interest income:
Interest and fees on loans	$	65,454	$	66,441
Interest on:
Obligations of U.S. Government, its agencies
and other securities		19,053		20,475
Obligations of states and political subdivisions		149		217
Other interest income		6		69
Total interest income		84,662		87,202

Interest expense:
Interest on deposits:
Demand and savings deposits		991		1,775
Time deposits		6,734		10,650
Interest on borrowings		7,624		7,397
Total interest expense		15,349		19,822

Net interest income		69,313		67,380

Provision for loan losses		13,500		16,550

Net interest income after provision for loan losses		55,813		50,830

Other income		13,171		16,710

Gain on sale of securities		6,635		8,304

Other expense:
Salaries and employee benefits		25,064		25,171
Occupancy expense		3,000		3,117
Furniture and equipment expense		2,657		2,632
Other expense		15,625		16,970
Total other expense		46,346		47,890

Income before income taxes		29,273		27,954

Income taxes		7,895		7,175

Net income	$	21,378	$	20,779

Preferred stock dividends and accretion		1,464		1,452

Net income available to common shareholders	$	19,914	$	19,327

Per Common Share:
Net income - basic	$	1.29	$	1.30
Net income - diluted	$	1.29	$	1.30

Weighted average shares - basic		15,398,930		14,882,774
Weighted average shares - diluted		15,403,420		14,882,774

PARK NATIONAL CORPORATION

Consolidated Balance Sheets

(in thousands, except share data)	March 31, 2011			December 31, 2010			March 31, 2010

Assets

Cash and due from banks	$	111,472		$	109,058		$	104,065
Money market instruments		22,775			24,722			145,995
Investment securities		2,045,656			2,039,791			1,941,465
Loans		4,750,975			4,732,685			4,597,304
Allowance for loan losses		126,859			121,397			119,674
Loans, net		4,624,116			4,611,288			4,477,630
Bank premises and equipment, net		69,673			69,567			69,231
Goodwill and other intangibles		77,708			78,377			80,863
Other real estate owned		47,133			44,325			45,854
Other assets		339,870			321,249			310,984

Total assets	$	7,338,403		$	7,298,377		$	7,176,087


Liabilities and Stockholders' Equity

Deposits:
Noninterest bearing	$	955,005		$	937,719		$	862,143
Interest bearing		4,359,673			4,157,701			4,406,715
Total deposits		5,314,678			5,095,420			5,268,858
Borrowings		1,178,678			1,375,652			996,686
Other liabilities		99,809			81,481			189,645
Total liabilities	$	6,593,165		$	6,552,553		$	6,455,189


Stockholders' Equity:
Preferred Stock (200,000 shares authorized in 2011 and 2010;
100,000 shares issued in 2011 and 2010)	$	97,504		$	97,290		$	96,685
Common stock (No par value; 20,000,000 shares authorized
in 2011 and 2010; 16,151,052 shares issued at March 31, 2011,
16,151,062 at December 31, 2010, and 16,151,097 at March 31, 2010)		301,203			301,204			301,207
Common stock warrants		4,473			4,473			5,361
Accumulated other comprehensive income (loss), net of taxes		(8,106	)		(1,868	)		13,757
Retained earnings		427,897			422,458			429,209
Treasury stock (752,129 shares at March 31, 2011, 752,128 shares
at December 31, 2010, and 1,268,332 at March 31, 2010)		(77,733	)		(77,733	)		(125,321	)
Total stockholders' equity	$	745,238		$	745,824		$	720,898

Total liabilities and stockholders' equity	$	7,338,403		$	7,298,377		$	7,176,087

PARK NATIONAL CORPORATION

Consolidated Average Balance Sheets

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)	2011			2010			2010

Assets

Cash and due from banks	$	120,339		$	119,982		$	114,895
Money market instruments		26,948			84,379			125,795
Investment securities		1,970,950			1,707,321			1,838,396
Loans		4,743,075			4,695,257			4,617,479
Allowance for loan losses		124,517			118,101			117,272
Loans, net		4,618,558			4,577,156			4,500,207
Bank premises and equipment, net		69,894			70,299			69,553
Goodwill and other intangibles		78,067			78,823			81,376
Other real estate owned		47,778			53,424			41,973
Other assets		341,993			322,468			314,138

Total assets	$	7,274,527		$	7,013,852		$	7,086,333


Liabilities and Stockholders' Equity

Deposits:
Noninterest bearing	$	956,059		$	959,685		$	869,051
Interest bearing		4,245,255			4,161,547			4,367,017
Total deposits		5,201,314			5,121,232			5,236,068
Borrowings		1,239,166			1,041,920			1,035,884
Other liabilities		86,151			90,144			87,144
Total liabilities	$	6,526,631		$	6,253,296		$	6,359,096


Stockholders' Equity:
Preferred stock	$	97,380		$	97,174		$	96,568
Common stock		301,204			301,317			301,208
Common stock warrants		4,473			4,405			5,361
Accumulated other comprehensive income (loss), net of taxes		(4,753	)		11,169			20,162
Retained earnings		427,325			430,578			429,259
Treasury stock		(77,733	)		(84,087	)		(125,321	)
Total stockholders' equity	$	747,896		$	760,556		$	727,237

Total liabilities and stockholders' equity	$	7,274,527		$	7,013,852		$	7,086,333

PARK NATIONAL CORPORATION

Consolidated Statements of Income - Linked Quarters

	2011		2010		2010		2010		2010
(in thousands, except per share data)	1st QTR		4th QTR		3rd QTR		2nd QTR		1st QTR

Interest income:
Interest and fees on loans	$	65,454	$	67,405	$	67,123	$	66,723	$	66,441
Interest on:
Obligations of U.S. Government, its agencies
and other securities		19,053		16,768		19,333		20,263		20,475
Obligations of states and political subdivisions		149		173		192		204		217
Other interest income		6		45		34		52		69
Total interest income		84,662		84,391		86,682		87,242		87,202

Interest expense:
Interest on deposits:
Demand and savings deposits		991		1,133		1,263		1,582		1,775
Time deposits		6,734		7,512		8,532		9,518		10,650
Interest on borrowings		7,624		7,248		7,442		7,421		7,397
Total interest expense		15,349		15,893		17,237		18,521		19,822

Net interest income		69,313		68,498		69,445		68,721		67,380

Provision for loan losses		13,500		20,448		14,654		13,250		16,550

Net interest income after provision for loan losses		55,813		48,050		54,791		55,471		50,830

Other income		13,171		14,745		17,530		16,647		16,710

Gain on sale of securities		6,635		45		-		3,515		8,304

Other expense:
Salaries and employee benefits		25,064		24,631		24,500		24,013		25,171
Occupancy expense		3,000		2,760		2,840		2,793		3,117
Furniture and equipment expense		2,657		2,615		2,624		2,564		2,632
Other expense		15,625		16,514		15,732		17,631		16,970
Total other expense		46,346		46,520		45,696		47,001		47,890

Income before income taxes		29,273		16,320		26,625		28,632		27,954

Income taxes		7,895		3,625		7,048		7,466		7,175

Net income	$	21,378	$	12,695	$	19,577	$	21,166	$	20,779

Preferred stock dividends and accretion		1,464		1,452		1,452		1,451		1,452

Net income available to common shareholders	$	19,914	$	11,243	$	18,125	$	19,715	$	19,327

Per Common Share:
Net income - basic	$	1.29	$	0.73	$	1.19	$	1.30	$	1.30
Net income - diluted	$	1.29	$	0.73	$	1.19	$	1.30	$	1.30

PARK NATIONAL CORPORATION

Detail of other income and other expense - Linked Quarters

	2011			2010			2010			2010			2010
(in thousands)	1st QTR			4th QTR			3rd QTR			2nd QTR			1st QTR

Other income:
Income from fiduciary activities	$	3,722		$	3,609		$	3,314		$	3,528		$	3,422
Service charges on deposits		4,245			4,853			5,026			5,092			4,746
Other service income		2,301			3,449			3,909			3,476			2,982
Checkcard fee income		2,976			3,068			2,900			2,765			2,444
Bank owned life insurance income		1,229			1,195			1,313			1,254			1,216
ATM fees		654			655			699			832			765
OREO devaluations		(4,394	)		(5,971	)		(1,555	)		(1,919	)		(1,145	)
Other		2,438			3,887			1,924			1,619			2,280
Total other income	$	13,171		$	14,745		$	17,530		$	16,647		$	16,710

Other expense:
Salaries and employee benefits	$	25,064		$	24,631		$	24,500		$	24,013		$	25,171
Net occupancy expense		3,000			2,760			2,840			2,793			3,117
Furniture and equipment expense		2,657			2,615			2,624			2,564			2,632
Data processing fees		1,253			1,339			1,403			1,394			1,593
Professional fees and services		4,874			5,341			4,477			5,299			4,856
Amortization of intangibles		669			822			822			842			936
Marketing		623			968			840			946			902
Insurance		2,269			2,136			2,316			2,333			2,198
Communication		1,556			1,536			1,696			1,647			1,769
State taxes		457			622			865			838			845
Other		3,924			3,750			3,313			4,332			3,871
Total other expense	$	46,346		$	46,520		$	45,696		$	47,001		$	47,890

PARK NATIONAL CORPORATION

Asset Quality Information

	Quarter ended			Year ended December 31,
(in thousands, except ratios)	March 31, 2011			2010			2009			2008

Allowance for loan losses:
Allowance for loan losses, beginning of period	$	121,397		$	116,717		$	100,088		$	87,102
Charge-offs		10,399			66,314			59,022			62,916
Recoveries		2,361			6,092			6,830			5,415
Net charge-offs		8,038			60,222			52,192			57,501
Provision for loan losses		13,500			64,902			68,821			70,487
Allowance for loan losses, end of period	$	126,859		$	121,397		$	116,717		$	100,088


General reserve trends:
Allowance for loan losses, end of period	$	126,859		$	121,397		$	116,717		$	100,088
Specific reserves		47,287			43,459			36,721			8,875
General reserves	$	79,572		$	77,938		$	79,996		$	91,213

Total loans	$	4,750,975		$	4,732,685		$	4,640,432		$	4,491,337
Impaired commercial loans		238,959			250,933			201,143			141,343
Non-impaired loans	$	4,512,016		$	4,481,752		$	4,439,289		$	4,349,994


Asset Quality Ratios:
Net charge-offs as a % of average loans (annualized for quarterly periods)		0.69	%		1.30	%		1.14	%		1.32	%
Allowance for loan losses as a % of period end loans		2.67	%		2.57	%		2.52	%		2.23	%
General reserves as a % of non-impaired loans		1.76	%		1.74	%		1.80	%		2.10	%


Nonperforming Assets - Park National Corporation:
Nonaccrual loans	$	278,819		$	289,268		$	233,544		$	159,512
Renegotiated loans		260			-			142			2,845
Loans past due 90 days or more		2,228			3,590			14,773			5,421
Total nonperforming loans	$	281,307		$	292,858		$	248,459		$	167,778
Other real estate owned - Park National Bank		9,788			8,385			6,037			6,149
Other real estate owned - Parent Company		13,004			-			-			-
Other real estate owned - Vision Bank		24,341			35,940			35,203			19,699
Total nonperforming assets	$	328,440		$	337,183		$	289,699		$	193,626
Percentage of nonperforming loans to period end loans		5.92	%		6.19	%		5.35	%		3.74	%
Percentage of nonperforming assets to period end loans		6.91	%		7.12	%		6.24	%		4.31	%
Percentage of nonperforming assets to period end assets		4.48	%		4.62	%		4.11	%		2.74	%

PARK NATIONAL CORPORATION

Asset Quality Information

	Quarter ended				Year ended December 31,
(in thousands, except ratios)	March 31, 2011				2010			2009			2008

Nonperforming Assets - Ohio-based operations:
Nonaccrual loans	$	115,476		$	117,815		$	85,197		$	68,306
Renegotiated loans		260			-			142			-
Loans past due 90 days or more		2,228			3,226			3,496			4,777
Total nonperforming loans	$	117,964		$	121,041		$	88,835		$	73,083
Other real estate owned - Park National Bank		9,788			8,385			6,037			6,149
Other real estate owned - Parent Company		13,004			-			-			-
Total nonperforming assets	$	140,756		$	129,426		$	94,872		$	79,232
Percentage of nonperforming loans to period end loans		2.86	%		2.96	%		2.24	%		1.92	%
Percentage of nonperforming assets to period end loans		3.41	%		3.16	%		2.39	%		2.08	%
Percentage of nonperforming assets to period end assets		2.15	%		1.99	%		1.54	%		1.29	%


Nonperforming Assets - Vision Bank:
Nonaccrual loans	$	163,343		$	171,453		$	148,347		$	91,206
Renegotiated loans		-			-			-			2,845
Loans past due 90 days or more		-			364			11,277			644
Total nonperforming loans	$	163,343		$	171,817		$	159,624		$	94,695
Other real estate owned		24,341			35,940			35,203			19,699
Total nonperforming assets	$	187,684		$	207,757		$	194,827		$	114,394
Percentage of nonperforming loans to period end loans		26.06	%		26.82	%		23.58	%		13.71	%
Percentage of nonperforming assets to period end loans		29.95	%		32.43	%		28.78	%		16.57	%
Percentage of nonperforming assets to period end assets		23.40	%		25.71	%		21.70	%		12.47	%


New nonaccrual loan information:
Nonaccrual loans, beginning of period	$	289,268		$	233,544		$	159,512		$	101,128
New nonaccrual loans - Ohio-based operations		8,674			85,081			57,641			58,161
New nonaccrual loans - Vision Bank		5,994			90,094			126,540			83,588
Resolved nonaccrual loans		25,117			119,451			110,149			83,365
Nonaccrual loans, end of period	$	278,819		$	289,268		$	233,544		$	159,512


Impaired Commercial Loan Portfolio Information (period end):
Unpaid principal balance	$	294,355		$	304,534		$	245,092		$	171,310
Prior charge-offs		55,396			53,601			43,949			29,967
Remaining principal balance		238,959			250,933			201,143			141,343
Specific reserves		47,287			43,459			36,721			8,875
Book value, after specific reserve	$	191,672		$	207,474		$	164,422		$	132,468


Vision Bank Commercial Land & Development (CL&D) Loan Portfolio Information:
CL&D loans, period end	$	161,140		$	170,989		$	218,263		$	251,443
Performing CL&D loans, period end		79,080			84,498			132,380			191,712
Impaired CL&D loans, period end		82,060			86,491			85,883			59,731
Specific reserve on impaired CL&D loans		25,543			23,585			21,802			3,134
Book value of impaired CL&D loans, after specific reserve	$	56,517		$	62,906		$	64,081		$	56,597

Cumulative prior charge-offs on impaired Vision Bank CL&D loans, period end	$	30,538		$	28,652		$	24,931		$	18,839