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
incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
50 North Third Street, Newark, Ohio 43055
|
(Address of principal executive offices) (Zip Code)
|
(740) 349-8451
|
(Registrant’s telephone number, including area code)
|
N/A
|
(Former name, former address and former fiscal year, if changed since last report)
|
Yes
|
x
|
No
|
¨
|
Yes
|
x
|
No
|
¨
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
(Do not check if smaller reporting company)
|
Yes
|
¨
|
No
|
x
|
Page
|
|
PART I. FINANCIAL INFORMATION
|
|
Item 1. Financial Statements
|
3 |
Consolidated Condensed Balance Sheets as of September 30, 2011 (unaudited) and December 31, 2010
|
3
|
Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2011 and 2010 (unaudited)
|
4
|
Consolidated Condensed Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2011 and 2010 (unaudited)
|
6
|
Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2011 and 2010 (unaudited)
|
7
|
Notes to Unaudited Consolidated Condensed Financial Statements
|
9
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
41
|
Item 3. Quantitative and Qualitative Disclosures about Market Risk
|
68
|
Item 4. Controls and Procedures
|
69
|
PART II. OTHER INFORMATION
|
|
Item 1. Legal Proceedings
|
71
|
Item 1A. Risk Factors
|
71
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
72
|
Item 3. Defaults Upon Senior Securities
|
73
|
Item 4. [Reserved]
|
73
|
Item 5. Other Information
|
73
|
Item 6. Exhibits
|
73
|
SIGNATURES
|
76
|
September 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Assets:
|
||||||||
Cash and due from banks
|
$ | 132,988 | $ | 109,058 | ||||
Money market instruments
|
139,109 | 24,722 | ||||||
Cash and cash equivalents
|
272,097 | 133,780 | ||||||
Investment securities
|
||||||||
Securities available-for-sale, at fair value
|
||||||||
(amortized cost of $772,910 and $1,274,258 at September 30, 2011 and December 31, 2010)
|
797,163 | 1,297,522 | ||||||
Securities held-to-maturity, at amortized cost
|
||||||||
(fair value of $861,369 and $686,114 at September 30, 2011 and December 31, 2010)
|
843,576 | 673,570 | ||||||
Other investment securities
|
67,892 | 68,699 | ||||||
Total investment securities
|
1,708,631 | 2,039,791 | ||||||
Loans
|
4,680,575 | 4,732,685 | ||||||
Allowance for loan losses
|
(100,248 | ) | (121,397 | ) | ||||
Net loans
|
4,580,327 | 4,611,288 | ||||||
Bank owned life insurance
|
153,159 | 146,450 | ||||||
Goodwill and other intangible assets
|
76,370 | 78,377 | ||||||
Bank premises and equipment, net
|
68,633 | 69,567 | ||||||
Other real estate owned
|
46,911 | 44,325 | ||||||
Accrued interest receivable
|
21,990 | 24,137 | ||||||
Mortgage loan servicing rights
|
10,069 | 10,488 | ||||||
Other
|
161,501 | 140,174 | ||||||
Total assets
|
$ | 7,099,688 | $ | 7,298,377 | ||||
Liabilities and Stockholders' Equity:
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
|
$ | 1,000,969 | $ | 937,719 | ||||
Interest bearing
|
4,088,218 | 4,157,701 | ||||||
Total deposits
|
5,089,187 | 5,095,420 | ||||||
Short-term borrowings
|
243,071 | 663,669 | ||||||
Long-term debt
|
823,722 | 636,733 | ||||||
Subordinated debentures and notes
|
75,250 | 75,250 | ||||||
Accrued interest payable
|
5,416 | 6,123 | ||||||
Other
|
103,399 | 75,358 | ||||||
Total liabilities
|
6,340,045 | 6,552,553 | ||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
Stockholders' equity:
|
||||||||
Preferred stock (200,000 shares authorized; 100,000 shares issued with $1,000 per share liquidation preference)
|
97,932 | 97,290 | ||||||
Common stock (No par value; 20,000,000 shares authorized; 16,151,033 shares issued at September 30, 2011 and 16,151,062 shares issued at December 31, 2010)
|
301,203 | 301,204 | ||||||
Common stock warrants
|
4,406 | 4,473 | ||||||
Retained earnings
|
434,711 | 422,458 | ||||||
Treasury stock (752,129 shares at September 30, 2011 and 752,128 shares at December 31, 2010)
|
(77,733 | ) | (77,733 | ) | ||||
Accumulated other comprehensive (loss), net of taxes
|
(876 | ) | (1,868 | ) | ||||
Total stockholders' equity
|
759,643 | 745,824 | ||||||
Total liabilities and stockholders' equity
|
$ | 7,099,688 | $ | 7,298,377 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Interest and dividend income:
|
||||||||||||||||
Interest and fees on loans
|
$ | 65,645 | $ | 67,123 | $ | 196,961 | $ | 200,287 | ||||||||
Interest and dividends on:
|
||||||||||||||||
Obligations of U.S. Government, its agencies and other securities
|
16,289 | 19,333 | 54,302 | 60,071 | ||||||||||||
Obligations of states and political subdivisions
|
69 | 192 | 310 | 613 | ||||||||||||
Other interest income
|
62 | 34 | 76 | 155 | ||||||||||||
Total interest and dividend income
|
82,065 | 86,682 | 251,649 | 261,126 | ||||||||||||
Interest expense:
|
||||||||||||||||
Interest on deposits:
|
||||||||||||||||
Demand and savings deposits
|
976 | 1,263 | 2,918 | 4,620 | ||||||||||||
Time deposits
|
5,661 | 8,532 | 18,595 | 28,700 | ||||||||||||
Interest on borrowings:
|
||||||||||||||||
Short-term borrowings
|
182 | 269 | 642 | 915 | ||||||||||||
Long-term debt
|
7,626 | 7,173 | 22,539 | 21,345 | ||||||||||||
Total interest expense
|
14,445 | 17,237 | 44,694 | 55,580 | ||||||||||||
Net interest income
|
67,620 | 69,445 | 206,955 | 205,546 | ||||||||||||
Provision for loan losses
|
18,525 | 14,654 | 55,925 | 44,454 | ||||||||||||
Net interest income after provision for loan losses
|
49,095 | 54,791 | 151,030 | 161,092 | ||||||||||||
Other income:
|
||||||||||||||||
Income from fiduciary activities
|
3,615 | 3,314 | 11,266 | 10,264 | ||||||||||||
Service charges on deposit accounts
|
4,894 | 5,026 | 13,664 | 14,864 | ||||||||||||
Other service income
|
3,087 | 3,909 | 8,122 | 10,367 | ||||||||||||
Checkcard fee income
|
3,154 | 2,900 | 9,381 | 8,109 | ||||||||||||
Bank owned life insurance income
|
1,229 | 1,313 | 3,686 | 3,783 | ||||||||||||
ATM fees
|
726 | 699 | 2,062 | 2,296 | ||||||||||||
OREO devaluations
|
(1,688 | ) | (1,555 | ) | (11,339 | ) | (4,619 | ) | ||||||||
Other
|
1,910 | 1,924 | 6,492 | 5,823 | ||||||||||||
Total other income
|
16,927 | 17,530 | 43,334 | 50,887 | ||||||||||||
Gain on sale of securities
|
3,465 | - | 25,462 | 11,819 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Other expense:
|
||||||||||||||||
Salaries and employee benefits
|
$ | 25,799 | $ | 24,500 | $ | 76,116 | $ | 73,684 | ||||||||
Occupancy expense
|
2,665 | 2,840 | 8,429 | 8,750 | ||||||||||||
Furniture and equipment expense
|
2,688 | 2,624 | 8,130 | 7,820 | ||||||||||||
Data processing fees
|
1,184 | 1,403 | 3,572 | 4,390 | ||||||||||||
Professional fees and services
|
5,005 | 4,477 | 15,199 | 14,632 | ||||||||||||
Amortization of intangibles
|
669 | 822 | 2,007 | 2,600 | ||||||||||||
Marketing
|
764 | 840 | 2,115 | 2,688 | ||||||||||||
Insurance
|
681 | 2,316 | 5,295 | 6,847 | ||||||||||||
Communication
|
1,475 | 1,696 | 4,516 | 5,112 | ||||||||||||
State taxes
|
469 | 865 | 1,414 | 2,548 | ||||||||||||
Other expense
|
4,200 | 3,313 | 12,159 | 11,516 | ||||||||||||
Total other expense
|
45,599 | 45,696 | 138,952 | 140,587 | ||||||||||||
Income before income taxes
|
23,888 | 26,625 | 80,874 | 83,211 | ||||||||||||
Income taxes
|
5,579 | 7,048 | 20,870 | 21,689 | ||||||||||||
Net income
|
$ | 18,309 | $ | 19,577 | $ | 60,004 | $ | 61,522 | ||||||||
Preferred stock dividends and accretion
|
1,464 | 1,452 | 4,392 | 4,355 | ||||||||||||
Net income available to common shareholders
|
$ | 16,845 | $ | 18,125 | $ | 55,612 | $ | 57,167 | ||||||||
Per Common Share:
|
||||||||||||||||
Net income available to common shareholders
|
||||||||||||||||
Basic
|
$ | 1.09 | $ | 1.19 | $ | 3.61 | $ | 3.79 | ||||||||
Diluted
|
$ | 1.09 | $ | 1.19 | $ | 3.61 | $ | 3.79 | ||||||||
Weighted average common shares outstanding
|
||||||||||||||||
Basic
|
15,398,909 | 15,272,720 | 15,398,919 | 15,090,113 | ||||||||||||
Diluted
|
15,398,909 | 15,272,720 | 15,400,641 | 15,090,113 | ||||||||||||
Cash dividends declared
|
$ | 0.94 | $ | 0.94 | $ | 2.82 | $ | 2.82 |
Accumulated
|
||||||||||||||||||||||||
Treasury
|
Other
|
|||||||||||||||||||||||
Preferred
|
Common
|
Retained
|
Stock
|
Comprehensive
|
Comprehensive
|
|||||||||||||||||||
Nine Months ended September 30, 2011 and 2010
|
Stock
|
Stock
|
Earnings
|
at Cost
|
Income (loss)
|
Income (loss)
|
||||||||||||||||||
Balance at December 31, 2009
|
$ | 96,483 | $ | 306,569 | $ | 423,872 | $ | (125,321 | ) | $ | 15,661 | |||||||||||||
Net Income
|
61,522 | $ | 61,522 | |||||||||||||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||
Unrealized net holding (loss) on cash flow hedge, net of income taxes of $(149)
|
(277 | ) | (277 | ) | ||||||||||||||||||||
Unrealized net holding (loss) on securities available-for-sale, net of income taxes of $(1,631)
|
(3,030 | ) | (3,030 | ) | ||||||||||||||||||||
Total comprehensive income
|
$ | 58,215 | ||||||||||||||||||||||
Cash dividends on common stock at $2.82 per share
|
(42,668 | ) | ||||||||||||||||||||||
Cash payment for fractional shares in dividend reinvestment plan
|
(2 | ) | ||||||||||||||||||||||
Reissuance of common stock from treasury shares held for warrants issued
|
(852 | ) | (9,495 | ) | 37,915 | |||||||||||||||||||
Accretion of discount on preferred stock
|
605 | (605 | ) | |||||||||||||||||||||
Preferred stock dividends
|
(3,750 | ) | ||||||||||||||||||||||
Balance at September 30, 2010
|
$ | 97,088 | $ | 305,715 | $ | 428,876 | $ | (87,406 | ) | $ | 12,354 | |||||||||||||
Balance at December 31, 2010
|
$ | 97,290 | $ | 305,677 | $ | 422,458 | $ | (77,733 | ) | $ | (1,868 | ) | ||||||||||||
Net Income
|
60,004 | $ | 60,004 | |||||||||||||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||
Unrealized net holding gain on cash flow hedge, net of income taxes of $187
|
348 | 348 | ||||||||||||||||||||||
Unrealized net holding gain on securities available-for-sale, net of income taxes of $345
|
644 | 644 | ||||||||||||||||||||||
Total comprehensive income
|
$ | 60,996 | ||||||||||||||||||||||
Cash dividends on common stock at $2.82 per share
|
(43,425 | ) | ||||||||||||||||||||||
Cash payment for fractional shares in dividend reinvestment plan
|
(2 | ) | ||||||||||||||||||||||
Common stock warrants cancelled
|
(66 | ) | 66 | |||||||||||||||||||||
Accretion of discount on preferred stock
|
642 | (642 | ) | |||||||||||||||||||||
Preferred stock dividends
|
(3,750 | ) | ||||||||||||||||||||||
Balance at September 30, 2011
|
$ | 97,932 | $ | 305,609 | $ | 434,711 | $ | (77,733 | ) | $ | (876 | ) |
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2011
|
2010
|
|||||||
Operating activities:
|
||||||||
Net income
|
$ | 60,004 | $ | 61,522 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation, accretion and amortization
|
8,457 | 9,511 | ||||||
Provision for loan losses
|
55,925 | 44,454 | ||||||
Other-than-temporary impairment on investment securities
|
- | 23 | ||||||
Amortization of core deposit intangibles
|
2,007 | 2,600 | ||||||
Realized net investment security gains
|
(25,462 | ) | (11,819 | ) | ||||
OREO devaluations
|
11,339 | 4,619 | ||||||
Changes in assets and liabilities:
|
||||||||
(Increase) in other assets
|
(41,662 | ) | (30,621 | ) | ||||
Increase in other liabilities
|
6,510 | 712 | ||||||
Net cash provided by operating activities
|
$ | 77,118 | $ | 81,001 | ||||
Investing activities:
|
||||||||
Proceeds from sales of available-for-sale securities
|
$ | 535,768 | $ | 344,325 | ||||
Proceeds from sales of Federal Home Loan Bank stock
|
807 | 111 | ||||||
Proceeds from maturity of:
|
||||||||
Available-for-sale securities
|
351,226 | 1,354,317 | ||||||
Held-to-maturity securities
|
281,159 | 166,321 | ||||||
Purchases of:
|
||||||||
Available-for-sale securities
|
(360,835 | ) | (1,665,825 | ) | ||||
Held-to-maturity securities
|
(429,993 | ) | (77,478 | ) | ||||
Net (increase) in loans
|
(22,149 | ) | (60,036 | ) | ||||
Purchases of bank owned life insurance, net
|
(3,000 | ) | (4,562 | ) | ||||
Purchases of premises and equipment, net
|
(4,765 | ) | (6,579 | ) | ||||
Net cash provided by investing activities
|
$ | 348,218 | $ | 50,594 |
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2011
|
2010
|
|||||||
Financing activities:
|
||||||||
Net (decrease) in deposits
|
$ | (6,233 | ) | $ | (88,022 | ) | ||
Net (decrease) in short-term borrowings
|
(420,598 | ) | (38,562 | ) | ||||
Proceeds from issuance of long-term debt
|
203,000 | - | ||||||
Repayment of long-term debt
|
(16,011 | ) | (11,664 | ) | ||||
Cash payment for fractional shares in dividend reinvestment plan
|
(2 | ) | (2 | ) | ||||
Proceeds from reissuance of common stock from treasury shares held
|
- | 27,568 | ||||||
Cash dividends paid on common and preferred stock
|
(47,175 | ) | (46,418 | ) | ||||
Net cash (used in) financing activities
|
$ | (287,019 | ) | $ | (157,100 | ) | ||
Increase (decrease) in cash and cash equivalents
|
138,317 | (25,505 | ) | |||||
Cash and cash equivalents at beginning of year
|
133,780 | 159,091 | ||||||
Cash and cash equivalents at end of period
|
$ | 272,097 | $ | 133,586 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for:
|
||||||||
Interest
|
$ | 45,401 | $ | 58,068 | ||||
Income taxes
|
$ | 16,700 | $ | 19,200 | ||||
Non cash activities:
|
||||||||
Securities purchased, not yet settled
|
$ | 21,172 | $ | 148,023 |
(in thousands)
|
Goodwill
|
Core Deposit
Intangibles
|
Total
|
|||||||||
December 31, 2010
|
$ | 72,334 | $ | 6,043 | $ | 78,377 | ||||||
Amortization
|
- | 2,007 | 2,007 | |||||||||
September 30, 2011
|
$ | 72,334 | $ | 4,036 | $ | 76,370 |
(in thousands)
|
Annual
Amortization
|
|||
Remainder of 2011
|
$ | 669 | ||
2012
|
2,677 | |||
2013
|
690 | |||
Total
|
$ | 4,036 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||||||||||
Loan
balance
|
Accrued
interest
receivable
|
Recorded
investment
|
Loan
balance
|
Accrued
interest
receivable
|
Recorded
investment
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Commercial, financial and agricultural *
|
$ | 756,888 | $ | 2,992 | $ | 759,880 | $ | 737,902 | $ | 2,886 | $ | 740,788 | ||||||||||||
Commercial real estate *
|
1,250,936 | 5,064 | 1,256,000 | 1,226,616 | 4,804 | 1,231,420 | ||||||||||||||||||
Construction real estate:
|
||||||||||||||||||||||||
Vision commercial land and development *
|
102,271 | 232 | 102,503 | 171,334 | 282 | 171,616 | ||||||||||||||||||
Remaining commercial
|
163,606 | 341 | 163,947 | 195,693 | 622 | 196,315 | ||||||||||||||||||
Mortgage
|
19,857 | 62 | 19,919 | 26,326 | 95 | 26,421 | ||||||||||||||||||
Installment
|
15,007 | 65 | 15,072 | 13,127 | 54 | 13,181 | ||||||||||||||||||
Residential real estate
|
||||||||||||||||||||||||
Commercial
|
456,670 | 1,276 | 457,946 | 464,903 | 1,403 | 466,306 | ||||||||||||||||||
Mortgage
|
968,330 | 1,355 | 969,685 | 906,648 | 2,789 | 909,437 | ||||||||||||||||||
HELOC
|
253,461 | 959 | 254,420 | 260,463 | 1,014 | 261,477 | ||||||||||||||||||
Installment
|
51,118 | 204 | 51,322 | 60,195 | 255 | 60,450 | ||||||||||||||||||
Consumer
|
640,267 | 2,679 | 642,946 | 666,871 | 3,245 | 670,116 | ||||||||||||||||||
Leases
|
2,164 | 40 | 2,204 | 2,607 | 56 | 2,663 | ||||||||||||||||||
Total loans
|
$ | 4,680,575 | $ | 15,269 | $ | 4,695,844 | $ | 4,732,685 | $ | 17,505 | $ | 4,750,190 |
September 30, 2011
|
||||||||||||||||
(In thousands)
|
Nonaccrual
loans
|
Accruing
restructured
loans
|
Loans past due
90 days or more
and accruing
|
Total
nonperforming
loans
|
||||||||||||
Commercial, financial and agricultural
|
$ | 21,844 | $ | 3,081 | $ | 22 | $ | 24,947 | ||||||||
Commercial real estate
|
41,856 | 2,243 | - | 44,099 | ||||||||||||
Construction real estate:
|
||||||||||||||||
Vision commercial land and development
|
42,353 | 1,249 | - | 43,602 | ||||||||||||
Remaining commercial
|
29,386 | 4,575 | - | 33,961 | ||||||||||||
Mortgage
|
66 | - | - | 66 | ||||||||||||
Installment
|
107 | - | - | 107 | ||||||||||||
Residential real estate:
|
||||||||||||||||
Commercial
|
47,422 | - | - | 47,422 | ||||||||||||
Mortgage
|
25,976 | 4,393 | 1,237 | 31,606 | ||||||||||||
HELOC
|
1,420 | - | - | 1,420 | ||||||||||||
Installment
|
1,953 | 22 | 112 | 2,087 | ||||||||||||
Consumer
|
1,983 | - | 851 | 2,834 | ||||||||||||
Leases
|
- | - | - | - | ||||||||||||
Total loans
|
$ | 214,366 | $ | 15,563 | $ | 2,222 | $ | 232,151 |
December 31, 2010
|
||||||||||||||||
(In thousands)
|
Nonaccrual
loans
|
Accruing
restructured
loans
|
Loans past due
90 days or more
and accruing
|
Total
nonperforming
loans
|
||||||||||||
Commercial, financial and agricultural
|
$ | 19,276 | $ | - | $ | - | $ | 19,276 | ||||||||
Commercial real estate
|
57,941 | - | 20 | 57,961 | ||||||||||||
Construction real estate:
|
||||||||||||||||
Vision commercial land and development
|
87,424 | - | - | 87,424 | ||||||||||||
Remaining commercial
|
27,080 | - | - | 27,080 | ||||||||||||
Mortgage
|
354 | - | - | 354 | ||||||||||||
Installment
|
417 | - | 13 | 430 | ||||||||||||
Residential real estate:
|
||||||||||||||||
Commercial
|
60,227 | - | - | 60,227 | ||||||||||||
Mortgage
|
32,479 | - | 2,175 | 34,654 | ||||||||||||
HELOC
|
964 | - | 149 | 1,113 | ||||||||||||
Installment
|
1,195 | - | 277 | 1,472 | ||||||||||||
Consumer
|
1,911 | - | 1,059 | 2,970 | ||||||||||||
Leases
|
- | - | - | - | ||||||||||||
Total loans
|
$ | 289,268 | $ | - | $ | 3,693 | $ | 292,961 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||||||||||
(In thousands)
|
Nonaccrual
and accruing
restructured
loans
|
Loans
individually
evaluated for
impairment
|
Loans
collectively
evaluated for
impairment
|
Nonaccrual
and accruing
restructured
loans
|
Loans
individually
evaluated for
impairment
|
Loans
collectively
evaluated for
impairment
|
||||||||||||||||||
Commercial, financial and agricultural
|
$ | 24,925 | $ | 24,925 | $ | - | $ | 19,276 | $ | 19,205 | $ | 71 | ||||||||||||
Commercial real estate
|
44,099 | 44,099 | - | 57,941 | 57,930 | 11 | ||||||||||||||||||
Construction real estate:
|
||||||||||||||||||||||||
Vision commercial land and development
|
43,602 | 42,036 | 1,566 | 87,424 | 86,491 | 933 | ||||||||||||||||||
Remaining commercial
|
33,961 | 33,961 | - | 27,080 | 27,080 | - | ||||||||||||||||||
Mortgage
|
66 | - | 66 | 354 | - | 354 | ||||||||||||||||||
Installment
|
107 | - | 107 | 417 | - | 417 | ||||||||||||||||||
Residential real estate:
|
||||||||||||||||||||||||
Commercial
|
47,422 | 47,422 | - | 60,227 | 60,227 | - | ||||||||||||||||||
Mortgage
|
30,369 | - | 30,369 | 32,479 | - | 32,479 | ||||||||||||||||||
HELOC
|
1,420 | - | 1,420 | 964 | - | 964 | ||||||||||||||||||
Installment
|
1,975 | - | 1,975 | 1,195 | - | 1,195 | ||||||||||||||||||
Consumer
|
1,983 | 21 | 1,962 | 1,911 | - | 1,911 | ||||||||||||||||||
Leases
|
- | - | - | - | - | - | ||||||||||||||||||
Total loans
|
$ | 229,929 | $ | 192,464 | $ | 37,465 | $ | 289,268 | $ | 250,933 | $ | 38,335 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||||||||||
Unpaid
principal
balance
|
Recorded
investment
|
Allowance
for loan
losses
allocated
|
Unpaid
principal
balance
|
Recorded
investment
|
Allowance
for loan
losses
allocated
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
With no related allowance recorded
|
||||||||||||||||||||||||
Commercial, financial and agricultural
|
$ | 23,222 | $ | 15,496 | $ | - | $ | 9,347 | $ | 8,891 | $ | - | ||||||||||||
Commercial real estate
|
39,400 | 31,680 | - | 24,052 | 19,697 | - | ||||||||||||||||||
Construction real estate:
|
||||||||||||||||||||||||
Vision commercial land and development
|
50,070 | 17,468 | - | 23,021 | 20,162 | - | ||||||||||||||||||
Remaining commercial
|
17,582 | 16,299 | - | 15,192 | 14,630 | - | ||||||||||||||||||
Residential real estate:
|
||||||||||||||||||||||||
Commercial
|
32,568 | 29,949 | - | 51,261 | 47,009 | - | ||||||||||||||||||
Consumer
|
- | - | - | - | - | - | ||||||||||||||||||
With an allowance recorded
|
||||||||||||||||||||||||
Commercial, financial and agricultural
|
10,626 | 9,429 | 2,511 | 11,801 | 10,314 | 3,028 | ||||||||||||||||||
Commercial real estate
|
18,560 | 12,419 | 5,183 | 42,263 | 38,233 | 10,001 | ||||||||||||||||||
Construction real estate:
|
||||||||||||||||||||||||
Vision commercial land and development
|
43,575 | 24,568 | 12,135 | 92,122 | 66,329 | 23,585 | ||||||||||||||||||
Remaining commercial
|
30,813 | 17,662 | 8,765 | 20,676 | 12,450 | 2,802 | ||||||||||||||||||
Residential real estate:
|
||||||||||||||||||||||||
Commercial
|
21,847 | 17,473 | 4,681 | 14,799 | 13,218 | 4,043 | ||||||||||||||||||
Consumer
|
21 | 21 | - | - | - | - | ||||||||||||||||||
Total
|
$ | 288,284 | $ | 192,464 | $ | 33,275 | $ | 304,534 | $ | 250,933 | $ | 43,459 |
Three months ended
September 30, 2011
|
Nine months ended
September 30, 2011
|
|||||||||||||||||||
Recorded
investment as of
September 30,
2011
|
Average
recorded
investment
|
Interest
income
recognized
|
Average
recorded
investment
|
Interest
income
recognized
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Commercial, financial and agricultural
|
$ | 24,925 | $ | 24,049 | $ | 49 | $ | 21,361 | $ | 155 | ||||||||||
Commercial real estate
|
44,099 | 45,162 | 26 | 50,874 | 150 | |||||||||||||||
Construction real estate:
|
||||||||||||||||||||
Vision commercial land and development
|
42,036 | 43,555 | - | 67,135 | - | |||||||||||||||
Remaining commercial
|
33,961 | 34,027 | 116 | 29,573 | 330 | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
Commercial
|
47,422 | 48,064 | - | 54,454 | 153 | |||||||||||||||
Consumer
|
21 | 21 | - | 15 | 1 | |||||||||||||||
Total
|
$ | 192,464 | $ | 194,878 | $ | 191 | $ | 223,412 | $ | 789 |
September 30, 2011
|
||||||||||||||||||||
Accruing loans
past due 30-89
days
|
Past due
nonaccrual loans
and loans past
due 90 days or
more and
accruing*
|
Total past due
|
Total current
|
Total recorded
investment
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Commercial, financial and agricultural
|
$ | 2,211 | $ | 16,457 | $ | 18,668 | $ | 741,212 | $ | 759,880 | ||||||||||
Commercial real estate
|
9,543 | 23,119 | 32,662 | 1,223,338 | 1,256,000 | |||||||||||||||
Construction real estate:
|
||||||||||||||||||||
Vision commercial land and development
|
425 | 35,654 | 36,079 | 66,424 | 102,503 | |||||||||||||||
Remaining commercial
|
- | 17,807 | 17,807 | 146,140 | 163,947 | |||||||||||||||
Mortgage
|
145 | 66 | 211 | 19,708 | 19,919 | |||||||||||||||
Installment
|
202 | 69 | 271 | 14,801 | 15,072 | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
Commercial
|
1,264 | 17,295 | 18,559 | 439,387 | 457,946 | |||||||||||||||
Mortgage
|
14,015 | 21,618 | 35,633 | 934,052 | 969,685 | |||||||||||||||
HELOC
|
539 | 673 | 1,212 | 253,208 | 254,420 | |||||||||||||||
Installment
|
1,428 | 499 | 1,927 | 49,395 | 51,322 | |||||||||||||||
Consumer
|
9,799 | 2,061 | 11,860 | 631,086 | 642,946 | |||||||||||||||
Leases
|
- | - | - | 2,204 | 2,204 | |||||||||||||||
Total loans
|
$ | 39,571 | $ | 135,318 | $ | 174,889 | $ | 4,520,955 | $ | 4,695,844 |
December 31, 2010
|
||||||||||||||||||||
Accruing loans
past due 30-89
days
|
Past due
nonaccrual loans
and loans past
due 90 days or
more and
accruing*
|
Total past due
|
Total current
|
Total recorded
investment
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Commercial, financial and agricultural
|
$ | 2,247 | $ | 15,622 | $ | 17,869 | $ | 722,919 | $ | 740,788 | ||||||||||
Commercial real estate
|
9,521 | 53,269 | 62,790 | 1,168,630 | 1,231,420 | |||||||||||||||
Construction real estate:
|
||||||||||||||||||||
Vision commercial land and development
|
2,406 | 65,130 | 67,536 | 104,080 | 171,616 | |||||||||||||||
Remaining commercial
|
141 | 19,687 | 19,828 | 176,487 | 196,315 | |||||||||||||||
Mortgage
|
479 | 148 | 627 | 25,794 | 26,421 | |||||||||||||||
Installment
|
235 | 399 | 634 | 12,547 | 13,181 | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
Commercial
|
3,281 | 26,845 | 30,126 | 436,180 | 466,306 | |||||||||||||||
Mortgage
|
17,460 | 24,422 | 41,882 | 867,555 | 909,437 | |||||||||||||||
HELOC
|
1,396 | 667 | 2,063 | 259,414 | 261,477 | |||||||||||||||
Installment
|
1,018 | 892 | 1,910 | 58,540 | 60,450 | |||||||||||||||
Consumer
|
11,204 | 2,465 | 13,669 | 656,447 | 670,116 | |||||||||||||||
Leases
|
5 | - | 5 | 2,658 | 2,663 | |||||||||||||||
Total loans
|
$ | 49,393 | $ | 209,546 | $ | 258,939 | $ | 4,491,251 | $ | 4,750,190 |
September 30, 2011
|
||||||||||||||||||||
(in thousands)
|
5 Rated
|
6 Rated
|
Impaired
|
Pass Rated
|
Recorded
Investment
|
|||||||||||||||
Commercial, financial and agricultural
|
$ | 36,037 | $ | 7,150 | $ | 24,925 | $ | 691,768 | $ | 759,880 | ||||||||||
Commercial real estate
|
51,417 | 21,222 | 44,099 | 1,139,262 | 1,256,000 | |||||||||||||||
Construction real estate:
|
||||||||||||||||||||
Vision commercial land and development
|
10,791 | 2,040 | 42,036 | 47,636 | 102,503 | |||||||||||||||
Remaining commercial
|
7,954 | 14,626 | 33,961 | 107,406 | 163,947 | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
Commercial
|
22,825 | 14,096 | 47,422 | 373,603 | 457,946 | |||||||||||||||
Leases
|
- | - | - | 2,204 | 2,204 | |||||||||||||||
Total Commercial Loans
|
$ | 129,024 | $ | 59,134 | $ | 192,443 | $ | 2,361,879 | $ | 2,742,480 |
December 31, 2010
|
||||||||||||||||||||
(in thousands)
|
5 Rated
|
6 Rated
|
Impaired
|
Pass Rated
|
Recorded
Investment
|
|||||||||||||||
Commercial, financial and agricultural
|
$ | 26,322 | $ | 11,447 | $ | 19,276 | $ | 683,743 | $ | 740,788 | ||||||||||
Commercial real estate
|
57,394 | 26,992 | 57,941 | 1,089,093 | 1,231,420 | |||||||||||||||
Construction real estate:
|
||||||||||||||||||||
Vision commercial land and development
|
10,220 | 7,941 | 87,424 | 66,031 | 171,616 | |||||||||||||||
Remaining commercial
|
14,021 | 39,062 | 27,080 | 116,152 | 196,315 | |||||||||||||||
Residential real estate:
|
||||||||||||||||||||
Commercial
|
29,206 | 18,117 | 60,227 | 358,756 | 466,306 | |||||||||||||||
Leases
|
- | - | - | 2,663 | 2,663 | |||||||||||||||
Total Commercial Loans
|
$ | 137,163 | $ | 103,559 | $ | 251,948 | $ | 2,316,438 | $ | 2,809,108 |
3 months ended
September 30, 2011
|
9 months ended
September 30, 2011
|
|||||||||||||||
Number of
Contracts
|
Recorded
Investment
|
Number of
Contracts
|
Total recorded
investment
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Commercial, financial and agricultural
|
14 | $ | 1,977 | 32 | $ | 5,677 | ||||||||||
Commercial real estate
|
4 | 2,763 | 21 | 7,633 | ||||||||||||
Construction real estate:
|
||||||||||||||||
Vision commercial land and development
|
2 | 504 | 8 | 3,342 | ||||||||||||
Remaining commercial
|
3 | 2,192 | 16 | 14,795 | ||||||||||||
Mortgage
|
- | - | 1 | 66 | ||||||||||||
Installment
|
- | - | - | - | ||||||||||||
Residential real estate:
|
||||||||||||||||
Commercial
|
3 | 239 | 10 | 3,493 | ||||||||||||
Mortgage
|
7 | 1,550 | 27 | 4,137 | ||||||||||||
HELOC
|
- | - | 1 | 50 | ||||||||||||
Installment
|
1 | 17 | 2 | 36 | ||||||||||||
Consumer
|
- | - | - | - | ||||||||||||
Leases
|
- | - | - | - | ||||||||||||
Total loans
|
34 | $ | 9,242 | 118 | $ | 39,229 |
3 months ended
September 30, 2011
|
9 months ended
September 30, 2011
|
|||||||||||||||
Number of Contracts
|
Recorded Investment
|
Number of Contracts
|
Total recorded investment
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Commercial, financial and agricultural
|
3 | $ | 506 | 7 | $ | 642 | ||||||||||
Commercial real estate
|
5 | 8,511 | 7 | 12,994 | ||||||||||||
Construction real estate:
|
||||||||||||||||
Vision commercial land
and development
|
2 | 1,962 | 3 | 1,979 | ||||||||||||
Remaining commercial
|
1 | 5,000 | 1 | 5,000 | ||||||||||||
Mortgage
|
1 | 66 | 1 | 66 | ||||||||||||
Installment
|
- | - | - | - | ||||||||||||
Residential real estate:
|
||||||||||||||||
Commercial
|
1 | 607 | 5 | 20,061 | ||||||||||||
Mortgage
|
4 | 736 | 8 | 1,695 | ||||||||||||
HELOC
|
1 | 50 | 1 | 50 | ||||||||||||
Installment
|
- | - | - | - | ||||||||||||
Total loans
|
18 | $ | 17,438 | 33 | $ | 42,487 |
Three months ended September 30, 2011
|
||||||||||||||||||||||||||||
Commercial,
financial and
agricultural
|
Commercial
real estate
|
Construction
real estate
|
Residential
real estate
|
Consumer
|
Leases
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||
Beginning balance
|
$ | 12,607 | $ | 22,470 | $ | 35,280 | $ | 32,105 | $ | 7,721 | $ | 4 | $ | 110,187 | ||||||||||||||
Charge-offs
|
4,361 | 6,505 | 12,587 | 5,886 | 1,682 | - | 31,021 | |||||||||||||||||||||
Recoveries
|
154 | 845 | 621 | 341 | 595 | 1 | 2,557 | |||||||||||||||||||||
Net Charge-offs
|
4,207 | 5,660 | 11,966 | 5,545 | 1,087 | (1 | ) | 28,464 | ||||||||||||||||||||
Provision
|
2,733 | 1,749 | 9,900 | 3,725 | 419 | (1 | ) | 18,525 | ||||||||||||||||||||
Ending balance
|
$ | 11,133 | $ | 18,559 | $ | 33,214 | $ | 30,285 | $ | 7,053 | $ | 4 | $ | 100,248 |
Nine months ended September 30, 2011
|
||||||||||||||||||||||||||||
Commercial,
financial and
agricultural
|
Commercial
real estate
|
Construction
real estate
|
Residential
real estate
|
Consumer
|
Leases
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||
Beginning balance
|
$ | 13,584 | $ | 28,515 | $ | 46,194 | $ | 25,845 | $ | 7,228 | $ | 31 | $ | 121,397 | ||||||||||||||
Reallocation of allowance
|
(1,888 | ) | (6,604 | ) | 5,759 | 2,948 | (189 | ) | (26 | ) | - | |||||||||||||||||
Adjusted beginning balance:
|
11,696 | 21,911 | 51,953 | 28,793 | 7,039 | 5 | 121,397 | |||||||||||||||||||||
Charge-offs
|
10,125 | 14,855 | 39,686 | 13,162 | 5,597 | - | 83,425 | |||||||||||||||||||||
Recoveries
|
1,050 | 1,669 | 834 | 1,232 | 1,562 | 4 | 6,351 | |||||||||||||||||||||
Net Charge-offs
|
9,075 | 13,186 | 38,852 | 11,930 | 4,035 | (4 | ) | 77,074 | ||||||||||||||||||||
Provision
|
8,512 | 9,834 | 20,113 | 13,422 | 4,049 | (5 | ) | 55,925 | ||||||||||||||||||||
Ending balance
|
$ | 11,133 | $ | 18,559 | $ | 33,214 | $ | 30,285 | $ | 7,053 | $ | 4 | $ | 100,248 |
(In thousands)
|
Three months ended
September 30, 2010
|
Nine months ended
September 30, 2010
|
||||||
Allowance for credit losses:
|
||||||||
Beginning balance
|
$ | 120,676 | $ | 116,717 | ||||
Charge-offs
|
19,205 | 48,056 | ||||||
Recoveries
|
1,280 | 4,290 | ||||||
Net Charge-offs
|
17,925 | 43,766 | ||||||
Provision
|
14,654 | 44,454 | ||||||
Ending balance
|
$ | 117,405 | $ | 117,405 |
September 30, 2011
|
||||||||||||||||||||||||||||
Commercial,
financial and
agricultural
|
Commercial
real estate
|
Construction
real estate
|
Residential
real estate
|
Consumer
|
Leases
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Ending allowance balance attributed to loans:
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 2,511 | $ | 5,183 | $ | 20,900 | $ | 4,681 | $ | - | $ | - | $ | 33,275 | ||||||||||||||
Collectively evaluated for impairment
|
8,622 | 13,376 | 12,314 | 25,604 | 7,053 | 4 | 66,973 | |||||||||||||||||||||
Total ending allowance balance
|
$ | 11,133 | $ | 18,559 | $ | 33,214 | $ | 30,285 | $ | 7,053 | $ | 4 | $ | 100,248 | ||||||||||||||
Loan Balance:
|
||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$ | 24,899 | $ | 44,051 | $ | 75,970 | $ | 47,422 | $ | 21 | $ | - | $ | 192,363 | ||||||||||||||
Loans collectively evaluated for impairment
|
731,989 | 1,206,885 | 224,771 | 1,682,157 | 640,246 | 2,164 | 4,488,212 | |||||||||||||||||||||
Total ending loan balance
|
$ | 756,888 | $ | 1,250,936 | $ | 300,741 | $ | 1,729,579 | $ | 640,267 | $ | 2,164 | $ | 4,680,575 | ||||||||||||||
Allowance for loan losses as a percentage of loan balance:
|
||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
10.08 | % | 11.77 | % | 27.51 | % | 9.87 | % | - | - | 17.30 | % | ||||||||||||||||
Loans collectively evaluated for impairment
|
1.18 | % | 1.11 | % | 5.48 | % | 1.52 | % | 1.10 | % | 0.18 | % | 1.49 | % | ||||||||||||||
Total ending loan balance
|
1.47 | % | 1.48 | % | 11.04 | % | 1.75 | % | 1.10 | % | 0.18 | % | 2.14 | % | ||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$ | 24,925 | $ | 44,099 | $ | 75,997 | $ | 47,422 | $ | 21 | $ | - | $ | 192,464 | ||||||||||||||
Loans collectively evaluated for impairment
|
734,955 | 1,211,901 | 225,444 | 1,685,951 | 642,925 | 2,204 | 4,503,380 | |||||||||||||||||||||
Total ending loan balance
|
$ | 759,880 | $ | 1,256,000 | $ | 301,441 | $ | 1,733,373 | $ | 642,946 | $ | 2,204 | $ | 4,695,844 |
December 31, 2010
|
||||||||||||||||||||||||||||
Commercial,
financial and
agricultural
|
Commercial
real estate
|
Construction
real estate
|
Residential
real estate
|
Consumer
|
Leases
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Ending allowance balance attributed to loans:
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 3,028 | $ | 10,001 | $ | 26,387 | $ | 4,043 | $ | - | $ | - | $ | 43,459 | ||||||||||||||
Collectively evaluated for impairment
|
10,556 | 18,514 | 19,807 | 21,802 | 7,228 | 31 | 77,938 | |||||||||||||||||||||
Total ending allowance balance
|
$ | 13,584 | $ | 28,515 | $ | 46,194 | $ | 25,845 | $ | 7,228 | $ | 31 | $ | 121,397 | ||||||||||||||
Reallocated allowance for loan losses:
|
||||||||||||||||||||||||||||
Ending allowance balance attributed to loans:
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 3,028 | $ | 10,001 | $ | 26,387 | $ | 4,043 | $ | - | $ | - | $ | 43,459 | ||||||||||||||
Collectively evaluated for impairment
|
8,668 | 11,910 | 25,566 | 24,750 | 7,039 | 5 | 77,938 | |||||||||||||||||||||
Total ending allowance balance
|
$ | 11,696 | $ | 21,911 | $ | 51,953 | $ | 28,793 | $ | 7,039 | $ | 5 | $ | 121,397 | ||||||||||||||
Loan Balance:
|
||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$ | 19,205 | $ | 57,930 | $ | 113,571 | $ | 60,227 | $ | - | $ | - | $ | 250,933 | ||||||||||||||
Loans collectively evaluated for impairment
|
718,697 | 1,168,686 | 292,909 | 1,631,982 | 666,871 | 2,607 | 4,481,752 | |||||||||||||||||||||
Total ending loan balance
|
$ | 737,902 | $ | 1,226,616 | $ | 406,480 | $ | 1,692,209 | $ | 666,871 | $ | 2,607 | $ | 4,732,685 | ||||||||||||||
Reallocated allowance for loan losses as a percentage of loan balance:
|
||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
15.77 | % | 17.26 | % | 23.23 | % | 6.71 | % | - | - | 17.32 | % | ||||||||||||||||
Loans collectively evaluated for impairment
|
1.21 | % | 1.02 | % | 8.73 | % | 1.52 | % | 1.06 | % | 0.19 | % | 1.74 | % | ||||||||||||||
Total ending loan balance
|
1.59 | % | 1.79 | % | 12.78 | % | 1.70 | % | 1.06 | % | 0.19 | % | 2.57 | % | ||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$ | 19,205 | $ | 57,930 | $ | 113,571 | $ | 60,227 | $ | - | $ | - | $ | 250,933 | ||||||||||||||
Loans collectively evaluated for impairment
|
721,583 | 1,173,490 | 293,962 | 1,637,443 | 670,116 | 2,663 | 4,499,257 | |||||||||||||||||||||
Total ending loan balance
|
$ | 740,788 | $ | 1,231,420 | $ | 407,533 | $ | 1,697,670 | $ | 670,116 | $ | 2,663 | $ | 4,750,190 |
(in thousands, except share and per share data)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Numerator:
|
||||||||||||||||
Income available to common shareholders
|
$ | 16,845 | $ | 18,125 | $ | 55,612 | $ | 57,167 | ||||||||
Denominator:
|
||||||||||||||||
Denominator for basic earnings per share (weighted average common shares outstanding)
|
15,398,909 | 15,272,720 | 15,398,919 | 15,090,113 | ||||||||||||
Effect of dilutive options and warrants
|
- | - | 1,722 | - | ||||||||||||
Denominator for diluted earnings per share (weighted average common shares outstanding adjusted for the effect of dilutive options and warrants)
|
15,398,909 | 15,272,720 | 15,400,641 | 15,090,113 | ||||||||||||
Earnings per common share:
|
||||||||||||||||
Basic earnings per common share
|
$ | 1.09 | $ | 1.19 | $ | 3.61 | $ | 3.79 | ||||||||
Diluted earnings per common share
|
$ | 1.09 | $ | 1.19 | $ | 3.61 | $ | 3.79 |
Operating Results for the three months ended September 30, 2011
|
||||||||||||||||
(in thousands)
|
PNB
|
VB
|
All Other
|
Total
|
||||||||||||
Net interest income
|
$ | 58,588 | $ | 6,493 | $ | 2,539 | $ | 67,620 | ||||||||
Provision for loan losses
|
9,000 | 9,000 | 525 | 18,525 | ||||||||||||
Other income (loss) and security gains
|
20,290 | 914 | (812 | ) | 20,392 | |||||||||||
Other expense
|
35,936 | 7,267 | 2,396 | 45,599 | ||||||||||||
Net income (loss)
|
24,518 | (5,737 | ) | (472 | ) | 18,309 | ||||||||||
Balance at September 30, 2011
|
||||||||||||||||
Assets
|
$ | 6,346,125 | $ | 719,264 | $ | 34,299 | $ | 7,099,688 |
Operating Results for the three months ended September 30, 2010
|
||||||||||||||||
(in thousands)
|
PNB
|
VB
|
All Other
|
Total
|
||||||||||||
Net interest income
|
$ | 59,986 | $ | 7,174 | $ | 2,285 | $ | 69,445 | ||||||||
Provision for loan losses
|
6,576 | 7,529 | 549 | 14,654 | ||||||||||||
Other income (loss) and security gains
|
17,588 | (139 | ) | 81 | 17,530 | |||||||||||
Other expense
|
35,406 | 7,726 | 2,564 | 45,696 | ||||||||||||
Net income (loss)
|
24,425 | (5,316 | ) | 468 | 19,577 | |||||||||||
Balance at September 30, 2010
|
||||||||||||||||
Assets
|
$ | 6,269,783 | $ | 838,090 | $ | (17,417 | ) | $ | 7,090,456 |
Operating Results for the nine months ended September 30, 2011
|
||||||||||||||||
(in thousands)
|
PNB
|
VB
|
All Other
|
Total
|
||||||||||||
Net interest income
|
$ | 179,366 | $ | 20,248 | $ | 7,341 | $ | 206,955 | ||||||||
Provision for loan losses
|
18,950 | 35,400 | 1,575 | 55,925 | ||||||||||||
Other income (loss) and security gains
|
73,590 | (2,509 | ) | (2,285 | ) | 68,796 | ||||||||||
Other expense
|
108,572 | 22,866 | 7,514 | 138,952 | ||||||||||||
Net income (loss)
|
87,798 | (26,256 | ) | (1,538 | ) | 60,004 |
Operating Results for the nine months ended September 30, 2010
|
||||||||||||||||
(in thousands)
|
PNB
|
VB
|
All Other
|
Total
|
||||||||||||
Net interest income
|
$ | 177,997 | $ | 20,979 | $ | 6,570 | $ | 205,546 | ||||||||
Provision for loan losses
|
15,126 | 27,729 | 1,599 | 44,454 | ||||||||||||
Other income (loss) and security gains
|
63,206 | (744 | ) | 244 | 62,706 | |||||||||||
Other expense
|
107,960 | 23,817 | 8,810 | 140,587 | ||||||||||||
Net income (loss)
|
80,610 | (19,528 | ) | 440 | 61,522 |
Stock Options
|
Weighted
Average Exercise
Price Per Share
|
|||||||
Outstanding at December 31, 2010
|
78,075 | $ | 74.96 | |||||
Granted
|
- | - | ||||||
Exercised
|
- | - | ||||||
Forfeited/Expired
|
3,505 | 74.96 | ||||||
Outstanding at September 30, 2011
|
74,570 | $ | 74.96 |
(in thousands)
|
||||||||||||||||
Securities Available-for-Sale
|
Amortized
Cost
|
Gross
Unrealized
Holding Gains
|
Gross
Unrealized
Holding Losses
|
Estimated Fair
Value
|
||||||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
$ | 223,459 | $ | 1,358 | $ | - | $ | 224,817 | ||||||||
Obligations of states and political subdivisions
|
3,615 | 109 | - | 3,724 | ||||||||||||
U.S. Government sponsored entities asset-backed securities
|
544,648 | 22,100 | - | 566,748 | ||||||||||||
Other equity securities
|
1,188 | 717 | 31 | 1,874 | ||||||||||||
Total
|
$ | 772,910 | $ | 24,284 | $ | 31 | $ | 797,163 |
Securities Held-to-Maturity
|
Amortized
Cost
|
Gross
Unrealized
Holding Gains
|
Gross
Unrealized
Holding Losses
|
Estimated
Fair Value
|
||||||||||||
Obligations of states and political subdivisions
|
$ | 1,992 | $ | 7 | $ | - | $ | 1,999 | ||||||||
U.S. Government sponsored entities asset-backed securities
|
841,584 | 17,971 | 185 | 859,370 | ||||||||||||
Total
|
$ | 843,576 | $ | 17,978 | $ | 185 | $ | 861,369 |
(in thousands)
|
Less than 12 months
|
12 months or longer
|
Total
|
|||||||||||||||||||||
Securities Available-for-Sale
|
Fair value
|
Unrealized
losses
|
Fair value
|
Unrealized
losses
|
Fair
value
|
Unrealized
losses
|
||||||||||||||||||
Other equity securities
|
$ | - | $ | - | $ | 80 | $ | 31 | $ | 80 | $ | 31 | ||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||||||||||
U.S. Government sponsored entities asset-backed securities
|
$ | 107,352 | $ | 185 | $ | - | $ | - | $ | 107,352 | $ | 185 |
(in thousands)
|
||||||||||||||||
Securities Available-for-Sale
|
Amortized cost
|
Gross
unrealized
holding gains
|
Gross
unrealized
holding losses
|
Estimated
fair value
|
||||||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
$ | 272,301 | $ | 2,968 | $ | 1,956 | $ | 273,313 | ||||||||
Obligations of states and political subdivisions
|
10,815 | 281 | 52 | 11,044 | ||||||||||||
U.S. Government sponsored entities asset-backed securities
|
990,204 | 30,633 | 9,425 | 1,011,412 | ||||||||||||
Other equity securities
|
938 | 858 | 43 | 1,753 | ||||||||||||
Total
|
$ | 1,274,258 | $ | 34,740 | $ | 11,476 | $ | 1,297,522 |
Securities Held-to-Maturity
|
Amortized cost
|
Gross
unrealized
holding gains
|
Gross
unrealized
holding losses
|
Estimated
fair value
|
||||||||||||
Obligations of states and political subdivisions
|
$ | 3,167 | $ | 7 | $ | - | $ | 3,174 | ||||||||
U.S. Government sponsored entities asset-backed securities
|
670,403 | 17,157 | 4,620 | 682,940 | ||||||||||||
Total
|
$ | 673,570 | $ | 17,164 | $ | 4,620 | $ | 686,114 |
(in thousands)
|
Less than 12 months
|
12 months or longer
|
Total
|
|||||||||||||||||||||
Securities Available-for-Sale
|
Fair value
|
Unrealized
losses
|
Fair value
|
Unrealized
losses
|
Fair value
|
Unrealized
losses
|
||||||||||||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
$ | 74,379 | $ | 1,956 | $ | - | $ | - | $ | 74,379 | $ | 1,956 | ||||||||||||
Obligations of states and political subdivisions
|
1,459 | 52 | 1,459 | 52 | ||||||||||||||||||||
U.S. Government sponsored entities asset-backed securities
|
418,156 | 9,425 | - | - | 418,156 | 9,425 | ||||||||||||||||||
Other equity securities
|
74 | 29 | 221 | 14 | 295 | 43 | ||||||||||||||||||
Total
|
$ | 494,068 | $ | 11,462 | $ | 221 | $ | 14 | $ | 494,289 | $ | 11,476 | ||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||||||||||
U.S. Government sponsored entities asset-backed securities
|
$ | 297,584 | $ | 4,620 | $ | - | $ | - | $ | 297,584 | $ | 4,620 |
(in thousands)
|
Amortized
cost
|
Fair value
|
||||||
Securities Available-for-Sale
|
||||||||
U.S. Treasury and sponsored entities notes:
|
||||||||
Due within one year
|
$ | 223,459 | $ | 224,817 | ||||
Total
|
$ | 223,459 | $ | 224,817 | ||||
Obligations of states and political subdivisions:
|
||||||||
Due within one year
|
$ | 2,315 | $ | 2,327 | ||||
Due one through five years
|
1,300 | 1,397 | ||||||
$ | 3,615 | $ | 3,724 | |||||
U.S. Government sponsored entities asset-backed securities:
|
||||||||
Total
|
$ | 544,648 | $ | 566,748 |
(in thousands)
|
Amortized
cost
|
Fair value
|
||||||
Securities Held-to-Maturity
|
||||||||
Obligations of state and political subdivisions:
|
||||||||
Due within one year
|
$ | 1,992 | $ | 1,999 | ||||
Total
|
$ | 1,992 | $ | 1,999 | ||||
U.S. Government sponsored entities asset-backed securities:
|
||||||||
Total
|
$ | 841,584 | $ | 859,370 |
September 30,
|
December 31,
|
|||||||
(in thousands)
|
2011
|
2010
|
||||||
Federal Home Loan Bank stock
|
$ | 61,016 | $ | 61,823 | ||||
Federal Reserve Bank stock
|
6,876 | 6,876 | ||||||
Total
|
$ | 67,892 | $ | 68,699 |
(in thousands)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Service cost
|
$ | 1,139 | $ | 918 | $ | 3,417 | $ | 2,754 | ||||||||
Interest cost
|
992 | 895 | 2,976 | 2,687 | ||||||||||||
Expected return on plan assets
|
(1,885 | ) | (1,476 | ) | (5,657 | ) | (4,390 | ) | ||||||||
Amortization of prior service cost
|
5 | 6 | 15 | 16 | ||||||||||||
Recognized net actuarial loss
|
352 | 269 | 1,057 | 809 | ||||||||||||
Benefit expense
|
$ | 603 | $ | 612 | $ | 1,808 | $ | 1,876 |
(in thousands)
|
Three months ended
September 30, 2011
|
Nine months ended
September 30, 2011
|
||||||
Mortgage servicing rights:
|
||||||||
Carrying amount, net, beginning of period
|
$ | 10,259 | $ | 10,488 | ||||
Additions
|
431 | 1,070 | ||||||
Amortization
|
(621 | ) | (1,557 | ) | ||||
Changes in valuation inputs & assumptions
|
- | 68 | ||||||
Carrying amount, net, end of period
|
$ | 10,069 | $ | 10,069 | ||||
Valuation allowance:
|
||||||||
Beginning of period
|
$ | 680 | $ | 748 | ||||
Changes due to fair value adjustments
|
- | (68 | ) | |||||
End of period
|
$ | 680 | $ | 680 |
|
§
|
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that Park has the ability to access as of the measurement date.
|
|
§
|
Level 2: Level 1 inputs for assets or liabilities that are not actively traded. Also consists of an observable market price for a similar asset or liability. This includes the use of “matrix pricing” to value debt securities absent the exclusive use of quoted prices.
|
|
§
|
Level 3: Consists of unobservable inputs that are used to measure fair value when observable market inputs are not available. This could include the use of internally developed models, financial forecasting and similar inputs.
|
Fair Value Measurements at September 30, 2011 using:
|
||||||||||||||||
(in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Balance at
September 30,
2011
|
||||||||||||
Assets
|
||||||||||||||||
Investment securities
|
||||||||||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
$ | - | $ | 224,817 | $ | - | $ | 224,817 | ||||||||
Obligations of states and political subdivisions
|
- | 3,724 | - | 3,724 | ||||||||||||
U.S. Government sponsored entities’ asset-backed securities
|
- | 566,748 | - | 566,748 | ||||||||||||
Equity securities
|
1,125 | - | 749 | 1,874 | ||||||||||||
Mortgage loans held for sale
|
- | 10,778 | - | 10,778 | ||||||||||||
Mortgage IRLCs
|
- | 378 | - | 378 | ||||||||||||
Liabilities
|
||||||||||||||||
Interest rate swap
|
$ | - | $ | 1,099 | $ | - | $ | 1,099 | ||||||||
Fair value swap
|
- | - | 200 | 200 |
Fair Value Measurements at December 31, 2010 using:
|
||||||||||||||||
(in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Balance at
December 31,
2010
|
||||||||||||
Assets
|
||||||||||||||||
Investment securities
|
||||||||||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
$ | - | $ | 273,313 | $ | - | $ | 273,313 | ||||||||
Obligations of states and political subdivisions
|
- | 8,446 | 2,598 | 11,044 | ||||||||||||
U.S. Government sponsored entities’ asset-backed securities
|
- | 1,011,412 | - | 1,011,412 | ||||||||||||
Equity securities
|
1,008 | - | 745 | 1,753 | ||||||||||||
Mortgage loans held for sale
|
- | 8,340 | - | 8,340 | ||||||||||||
Mortgage IRLCs
|
- | 166 | - | 166 | ||||||||||||
Liabilities
|
||||||||||||||||
Interest rate swap
|
$ | - | $ | 1,634 | $ | - | $ | 1,634 | ||||||||
Fair value swap
|
- | - | 60 | 60 |
Level 3 Fair Value Measurements
Three months ended September 30, 2011 and 2010
|
||||||||||||
(in thousands)
|
Obligations of states
and political
subdivisions
|
Equity
Securities
|
Fair value
swap
|
|||||||||
Balance, at June 30, 2011
|
$ | - | $ | 741 | $ | (200 | ) | |||||
Total gains/(losses)
|
||||||||||||
Included in earnings – realized
|
- | - | - | |||||||||
Included in earnings – unrealized
|
- | - | - | |||||||||
Included in other comprehensive income
|
- | 8 | - | |||||||||
Purchases, sales, issuances and settlements, other, net
|
- | - | - | |||||||||
Balance September 30, 2011
|
$ | - | $ | 749 | $ | (200 | ) | |||||
Balance, at June 30, 2010
|
$ | 2,756 | $ | - | $ | (340 | ) | |||||
Total gains/(losses)
|
||||||||||||
Included in earnings – realized
|
- | - | - | |||||||||
Included in earnings – unrealized
|
- | - | - | |||||||||
Included in other comprehensive income
|
93 | - | - | |||||||||
Purchases, sales, issuances and settlements, other, net
|
- | - | - | |||||||||
Balance September 30, 2010
|
$ | 2,849 | $ | - | $ | (340 | ) |
(in thousands)
|
Obligations of states
and political
subdivisions
|
Equity
Securities
|
Fair value
swap
|
|||||||||
Balance, at January 1, 2011
|
$ | 2,598 | $ | 745 | $ | (60 | ) | |||||
Total gains/(losses)
|
||||||||||||
Included in earnings – realized
|
- | - | - | |||||||||
Included in earnings – unrealized
|
(128 | ) | - | - | ||||||||
Included in other comprehensive income
|
- | 4 | - | |||||||||
Settlement
|
(2,470 | ) | - | - | ||||||||
Re-evaluation of fair value swap
|
- | - | (140 | ) | ||||||||
Balance September 30, 2011
|
$ | - | $ | 749 | $ | (200 | ) | |||||
Balance, at January 1, 2010
|
$ | 2,751 | $ | - | $ | (500 | ) | |||||
Total gains/(losses)
|
||||||||||||
Included in earnings – realized
|
- | - | - | |||||||||
Included in earnings – unrealized
|
- | - | - | |||||||||
Included in other comprehensive income
|
98 | - | - | |||||||||
Settlements
|
- | - | 160 | |||||||||
Balance September 30, 2010
|
$ | 2,849 | $ | - | $ | (340 | ) |
Fair Value Measurements at September 30, 2011 using:
|
||||||||||||||||
(in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Balance at
September 30, 2011
|
||||||||||||
Impaired loans:
|
||||||||||||||||
Commercial, financial and agricultural
|
$ | - | $ | - | $ | 15,620 | $ | 15,620 | ||||||||
Commercial real estate
|
20,347 | 20,347 | ||||||||||||||
Construction real estate:
|
||||||||||||||||
Vision commercial land and development
|
28,315 | 28,315 | ||||||||||||||
Remaining commercial
|
10,353 | 10,353 | ||||||||||||||
Residential real estate
|
15,222 | 15,222 | ||||||||||||||
Total impaired loans
|
$ | - | $ | - | $ | 89,857 | $ | 89,857 | ||||||||
Mortgage servicing rights
|
- | 4,963 | - | 4,963 | ||||||||||||
Other real estate owned
|
- | - | 46,911 | 46,911 |
Fair Value Measurements at December 31, 2010 Using:
|
||||||||||||||||
(in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Balance at
December 31, 2010
|
||||||||||||
Impaired loans:
|
||||||||||||||||
Commercial, financial and agricultural
|
$ | - | $ | - | $ | 8,276 | $ | 8,276 | ||||||||
Commercial real estate
|
32,354 | 32,354 | ||||||||||||||
Construction real estate:
|
||||||||||||||||
Vision commercial land and development
|
45,121 | 45,121 | ||||||||||||||
Remaining commercial
|
10,202 | 10,202 | ||||||||||||||
Residential real estate
|
15,304 | 15,304 | ||||||||||||||
Total impaired loans
|
$ | - | $ | - | $ | 111,257 | $ | 111,257 | ||||||||
Mortgage servicing rights
|
- | 3,813 | - | 3,813 | ||||||||||||
Other real estate owned
|
- | - | 44,325 | 44,325 |
(in thousands)
|
September 30, 2011
|
December 31, 2010
|
||||||||||||||
|
Carrying value
|
Fair value
|
Carrying value
|
Fair value
|
||||||||||||
Financial assets: | ||||||||||||||||
Cash and money market instruments
|
$ | 272,097 | $ | 272,097 | $ | 133,780 | $ | 133,780 | ||||||||
Investment securities
|
1,640,739 | 1,658,532 | 1,971,092 | 1,983,636 | ||||||||||||
Accrued interest receivable
|
21,990 | 21,990 | 24,137 | 24,137 | ||||||||||||
Mortgage loans held for sale
|
10,778 | 10,778 | 8,340 | 8,340 | ||||||||||||
Impaired loans carried at fair value
|
89,857 | 89,857 | 111,257 | 111,257 | ||||||||||||
Other loans
|
4,479,692 | 4,491,085 | 4,491,691 | 4,511,419 | ||||||||||||
Loans receivable, net
|
$ | 4,580,327 | $ | 4,591,720 | $ | 4,611,288 | $ | 4,631,016 | ||||||||
Financial liabilities:
|
||||||||||||||||
Noninterest bearing checking accounts
|
$ | 1,000,969 | $ | 1,000,969 | $ | 937,719 | $ | 937,719 | ||||||||
Interest bearing transactions accounts
|
1,432,827 | 1,432,827 | 1,283,159 | 1,283,159 | ||||||||||||
Savings accounts
|
943,948 | 943,948 | 899,288 | 899,288 | ||||||||||||
Time deposits
|
1,705,844 | 1,713,888 | 1,973,903 | 1,990,163 | ||||||||||||
Other
|
5,599 | 5,599 | 1,351 | 1,351 | ||||||||||||
Total deposits
|
$ | 5,089,187 | $ | 5,097,231 | $ | 5,095,420 | $ | 5,111,680 | ||||||||
Short-term borrowings
|
$ | 243,071 | $ | 243,071 | $ | 663,669 | $ | 663,669 | ||||||||
Long-term debt
|
823,722 | 917,963 | 636,733 | 699,080 | ||||||||||||
Subordinated debentures/notes
|
75,250 | 66,934 | 75,250 | 63,099 | ||||||||||||
Accrued interest payable
|
5,416 | 5,416 | 6,123 | 6,123 | ||||||||||||
Derivative financial instruments:
|
||||||||||||||||
Interest rate swap
|
$ | 1,099 | $ | 1,099 | $ | 1,634 | $ | 1,634 | ||||||||
Fair value swap
|
200 | 200 | 60 | 60 |
Nine months ended September 30,
(in thousands)
|
Before-tax
amount
|
Tax expense
(benefit)
|
Net-of-tax
amount
|
|||||||||
2011:
|
||||||||||||
Unrealized gains on available-for-sale securities
|
$ | 26,451 | $ | 9,257 | $ | 17,194 | ||||||
Reclassification adjustment for gains realized in net income
|
(25,462 | ) | (8,912 | ) | (16,550 | ) | ||||||
Unrealized net holding gain on cash flow hedge
|
535 | 187 | 348 | |||||||||
Other comprehensive income
|
$ | 1,524 | $ | 532 | $ | 992 | ||||||
2010:
|
||||||||||||
Unrealized gains on available-for-sale securities
|
$ | 7,158 | $ | 2,506 | $ | 4,652 | ||||||
Reclassification adjustment for gains realized in net income
|
(11,819 | ) | (4,137 | ) | (7,682 | ) | ||||||
Unrealized net holding loss on cash flow hedge
|
(426 | ) | (149 | ) | (277 | ) | ||||||
Other comprehensive loss
|
$ | (5,087 | ) | $ | (1,780 | ) | $ | (3,307 | ) |
Three months ended September 30,
(in thousands)
|
Before-tax
amount
|
Tax expense
(benefit)
|
Net-of-tax
amount
|
|||||||||
2011:
|
||||||||||||
Unrealized gains on available-for-sale securities
|
$ | 17,532 | $ | 6,136 | $ | 11,396 | ||||||
Reclassification adjustment for gains realized in net income
|
(3,465 | ) | (1,213 | ) | (2,252 | ) | ||||||
Unrealized net holding gain on cash flow hedge
|
238 | 83 | 155 | |||||||||
Other comprehensive income
|
$ | 14,305 | $ | 5,006 | $ | 9,299 | ||||||
2010:
|
||||||||||||
Unrealized losses on available-for-sale securities
|
$ | (5,321 | ) | $ | (1,862 | ) | $ | (3,459 | ) | |||
Unrealized net holding loss on cash flow hedge
|
(102 | ) | (36 | ) | (66 | ) | ||||||
Other comprehensive loss
|
$ | (5,423 | ) | $ | (1,898 | ) | $ | (3,525 | ) |
(in thousands)
|
Before-tax
amount
|
Tax expense
(benefit)
|
Net-of-tax
amount
|
|||||||||
September 30, 2011:
|
||||||||||||
Changes in pension plan assets and benefit obligations
|
$ | (24,503 | ) | $ | (8,576 | ) | $ | (15,927 | ) | |||
Unrealized gains on available-for-sale securities
|
24,253 | 8,488 | 15,765 | |||||||||
Unrealized net holding loss on cash flow hedge
|
(1,099 | ) | (385 | ) | (714 | ) | ||||||
Total accumulated other comprehensive loss
|
$ | (1,349 | ) | $ | (473 | ) | $ | (876 | ) | |||
December 31, 2010:
|
||||||||||||
Changes in pension plan assets and benefit obligations
|
$ | (24,503 | ) | $ | (8,576 | ) | $ | (15,927 | ) | |||
Unrealized gains on available-for-sale securities
|
23,264 | 8,143 | 15,121 | |||||||||
Unrealized net holding loss on cash flow hedge
|
(1,634 | ) | (572 | ) | (1,062 | ) | ||||||
Total accumulated other comprehensive loss
|
$ | (2,873 | ) | $ | (1,005 | ) | $ | (1,868 | ) | |||
September 30, 2010:
|
||||||||||||
Changes in pension plan assets and benefit obligations
|
$ | (20,769 | ) | $ | (7,269 | ) | $ | (13,500 | ) | |||
Unrealized gains on available-for-sale securities
|
41,685 | 14,590 | 27,095 | |||||||||
Unrealized net holding loss on cash flow hedge
|
(1,909 | ) | (668 | ) | (1,241 | ) | ||||||
Total accumulated other comprehensive income
|
$ | 19,007 | $ | 6,653 | $ | 12,354 |
Park – Summary Income Statement
|
||||||||||||||||||||||||
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||||||||||
(in thousands)
|
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
||||||||||||||||||
Net interest income
|
$ | 67,620 | $ | 69,445 | -2.63 | % | $ | 206,955 | $ | 205,546 | 0.69 | % | ||||||||||||
Provision for loan losses
|
18,525 | 14,654 | 26.42 | % | 55,925 | 44,454 | 25.80 | % | ||||||||||||||||
Total other income
|
16,927 | 17,530 | -3.44 | % | 43,334 | 50,887 | -14.84 | % | ||||||||||||||||
Gain on sale of securities
|
3,465 | - |
N.M.
|
25,462 | 11,819 | 115.43 | % | |||||||||||||||||
Total other expense
|
45,599 | 45,696 | -0.21 | % | 138,952 | 140,587 | -1.16 | % | ||||||||||||||||
Income before taxes
|
$ | 23,888 | $ | 26,625 | -10.28 | % | $ | 80,874 | $ | 83,211 | -2.81 | % | ||||||||||||
Income taxes
|
5,579 | 7,048 | -20.84 | % | 20,870 | 21,689 | -3.78 | % | ||||||||||||||||
Net income
|
$ | 18,309 | $ | 19,577 | -6.48 | % | $ | 60,004 | $ | 61,522 | -2.47 | % |
(in thousands)
|
Projected results for
2011
|
75% of annual projection
|
Actual results
for the first nine months
of 2011
|
|||||||||
Net interest income
|
$ | 268,000 to $278,000 | $ | 201,000 - $208,500 | $ | 206,955 | ||||||
Provision for loan losses
|
$ | 47,000 to $57,000 | $ | 35,250 - $42,750 | $ | 55,925 | ||||||
Total other income
|
$ | 63,000 to $67,000 | $ | 47,250 - $50,250 | $ | 43,334 | ||||||
Total other expense
|
$ | 183,000 to $187,000 | $ | 137,250- $140,250 | $ | 138,952 |
Vision Bank – Summary Statement of Operations
|
||||||||||||||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||||||||||
(in thousands)
|
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
||||||||||||||||||
Net interest income
|
$ | 6,493 | $ | 7,174 | -9.49 | % | $ | 20,248 | $ | 20,979 | -3.48 | % | ||||||||||||
Provision for loan losses
|
9,000 | 7,529 | 19.54 | % | 35,400 | 27,729 | 27.66 | % | ||||||||||||||||
Total other income (loss)
|
914 | (139 | ) | N.M. | (4,337 | ) | (744 | ) | N.M. | |||||||||||||||
Gain on sale of securities
|
— | — |
N.M.
|
1,828 | — |
N.M.
|
||||||||||||||||||
Total other expense
|
7,267 | 7,726 | -5.94 | % | 22,866 | 23,817 | -3.99 | % | ||||||||||||||||
Loss before taxes
|
$ | (8,860 | ) | $ | (8,220 | ) | -7.79 | % | $ | (40,527 | ) | $ | (31,311 | ) | -29.43 | % | ||||||||
Income tax credits
|
(3,123 | ) | (2,904 | ) | -7.54 | % | (14,271 | ) | (11,783 | ) | -21.12 | % | ||||||||||||
Net loss
|
$ | (5,737 | ) | $ | (5,316 | ) | -7.92 | % | $ | (26,256 | ) | $ | (19,528 | ) | -34.45 | % |
Park Excluding Vision Bank – Summary Income Statement
|
||||||||||||||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||||||||||
(in thousands)
|
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
||||||||||||||||||
Net interest income
|
$ | 61,127 | $ | 62,271 | -1.84 | % | $ | 186,707 | $ | 184,567 | 1.16 | % | ||||||||||||
Provision for loan losses
|
9,525 | 7,125 | 33.68 | % | 20,525 | 16,725 | 22.72 | % | ||||||||||||||||
Total other income
|
16,013 | 17,669 | -9.37 | % | 47,671 | 51,631 | -7.67 | % | ||||||||||||||||
Gain on sale of securities
|
3,465 | — |
N.M.
|
23,634 | 11,819 | 99.97 | % | |||||||||||||||||
Total other expense
|
38,332 | 37,970 | 0.95 | % | 116,086 | 116,770 | -0.59 | % | ||||||||||||||||
Income before taxes
|
$ | 32,748 | $ | 34,845 | -6.02 | % | $ | 121,401 | $ | 114,522 | 6.01 | % | ||||||||||||
Income taxes
|
8,702 | 9,952 | -12.56 | % | 35,141 | 33,472 | 4.99 | % | ||||||||||||||||
Net income
|
$ | 24,046 | $ | 24,893 | -3.40 | % | $ | 86,260 | $ | 81,050 | 6.43 | % |
Vision Bank – Summary Statement of Operations
|
||||||||||||||||
Nine Months Ended
September 30,
|
Year Ended
December 31,
|
|||||||||||||||
(in thousands)
|
2011
|
2010
|
2009
|
2008
|
||||||||||||
Net interest income
|
$ | 20,248 | $ | 27,867 | $ | 25,634 | $ | 27,065 | ||||||||
Provision for loan losses
|
35,400 | 39,229 | 44,430 | 46,963 | ||||||||||||
Total other income (loss)
|
(4,337 | ) | (3,407 | ) | (2,047 | ) | 3,014 | |||||||||
Goodwill impairment
|
- | - | - | 54,986 | ||||||||||||
Gain on sale of securities
|
1,828 | - | - | - | ||||||||||||
Total other expense
|
22,866 | 31,623 | 28,091 | 27,149 | ||||||||||||
Loss before taxes
|
$ | (40,527 | ) | $ | (46,392 | ) | $ | (48,934 | ) | $ | (99,019 | ) | ||||
Income tax credits
|
(14,271 | ) | (17,095 | ) | (18,824 | ) | (17,832 | ) | ||||||||
Net loss
|
$ | (26,256 | ) | $ | (29,297 | ) | $ | (30,110 | ) | $ | (81,187 | ) |
Vision Bank CL&D Loan Portfolio
|
||||||||||||||||
(in thousands) - end of each respective period
|
September 30,
2011
|
Dec. 31,
2010
|
Dec. 31,
2009
|
Dec. 31,
2008
|
||||||||||||
CL&D loans
|
$ | 102,271 | $ | 171,334 | $ | 218,263 | $ | 251,443 | ||||||||
Performing CL&D loans
|
60,240 | 84,843 | 132,380 | 191,712 | ||||||||||||
Impaired CL&D loans
|
$ | 42,031 | $ | 86,491 | $ | 85,883 | $ | 59,731 | ||||||||
Specific reserve on impaired CL&D loans
|
$ | 12,135 | $ | 23,585 | $ | 21,802 | $ | 3,134 | ||||||||
Cumulative charge-offs on impaired CL&D loans
|
51,615 | 28,652 | 24,931 | 18,839 | ||||||||||||
Specific reserves plus cumulative charge-offs
|
$ | 63,750 | $ | 52,237 | $ | 46,733 | $ | 21,973 | ||||||||
Specific reserves plus cumulative charge-offs as a percentage of impaired CL&D loans plus cumulative charge-offs
|
68.1 | % | 45.4 | % | 42.2 | % | 28.0 | % |
Nine months
ended
|
Year ended December 31,
|
|||||||||||||||
(dollars in thousands)
|
Sept. 30, 2011
|
2010
|
2009
|
2008
|
||||||||||||
OREO devaluations
|
$ | 7,886 | $ | 8,743 | $ | 6,139 | $ | 2,663 | ||||||||
Other income absent OREO devaluations
|
3,549 | 5,336 | 4,092 | 5,440 | ||||||||||||
Other income absent OREO devaluations as a % of average assets (annualized for 2011)
|
0.62 | % | 0.62 | % | 0.45 | % | 0.60 | % |
|
·
|
In the first half of 2008, Park and Vision Bank decided to largely discontinue the origination of CL&D loans within the Vision Bank footprint. This has resulted in a decline in CL&D loans as a percentage of the total loan portfolio from 50.1% at June 30, 2007 to 18.6% at September 30, 2011. Management expects this decline will continue, as this portfolio continues to pay down in future periods.
|
|
·
|
During 2009, Park determined it was necessary to lower the lending authority of Vision Bank personnel. The origination or renewal of any loan exceeding the individual loan officer’s new lending authority required, and continues to require, Park approval. Loans originated subsequent to January 1, 2009 have defaulted at a much lower rate than those originated prior to this date.
|
|
·
|
In April 2009, Park engaged a third-party contractor to assist in the resolution of nonperforming loans at Vision Bank. This third-party contractor has helped maximize the value of the nonperforming loans at Vision Bank. We expect to continue utilizing this third-party contractor through 2011 and thereafter, until such point in time that Vision Bank’s impaired loan portfolio shows sustained and substantive improvement. Management expects to see an increase in recoveries of previously charged-off loans as our third party collection efforts continue.
|
|
·
|
During 2010, Park asked three additional Park-Ohio associates to move to Vision Bank to address the many challenges we face there. One additional Park-Ohio associate had moved to Vision Bank shortly after Park’s acquisition in 2007. All four were officers previously served in our Ohio affiliates and we were especially pleased with the individual response each made when presented with the opportunity to transfer to Vision Bank to assist. One of these individuals serves as the chief lending officer for Vision Bank and another serves as the senior lender of the Florida market. A significant focus of these four individuals in the 2010 year was the identification and administration of problem loans, which resulted in an increase in new nonaccruals in both the second and fourth quarters of 2010.
|
|
·
|
During the first quarter of 2011, Park formed SE Property Holdings to purchase OREO from Vision Bank. As of September 30, 2011, approximately $35 million of OREO was held by SE Property Holdings, which had been purchased from Vision Bank (at the then current fair market value) over the course of the 2011 year. The remaining OREO held by Vision Bank as of September 30, 2011, of $769,000, was purchased by SE Property Holdings (at the then current fair market value) during the fourth quarter of 2011.
|
|
Updated appraisals have been obtained on almost all nonperforming loans and OREO properties in the first nine months of 2011. Through the first nine months of 2011, sales of OREO held at Vision Bank and SE Property Holdings have resulted in proceeds of $9.7 million for assets with a book value prior to sale of $9.3 million, therefore resulting in a small gain of $0.4 million. Management considers this to be an indication that real estate prices within Vision Bank’s footprint may be stabilizing. As such, provision expense pertaining to the write-down or reserving for nonaccrual loans is expected to dramatically decrease as management does not believe that new appraisals in 2012 will indicate that collateral values have continued to significantly decline.
|
September 30,
|
Year ended December 31,
|
|||||||||||||||
2011
|
2010
|
2009
|
2008
|
|||||||||||||
Nonperforming Assets - Vision Bank:
|
||||||||||||||||
Nonaccrual loans
|
$ | 106,000 | $ | 171,453 | $ | 148,347 | $ | 91,206 | ||||||||
Accruing renegotiated loans
|
1,743 | - | - | 2,845 | ||||||||||||
Loans past due 90 days or more
|
- | 364 | 11,277 | 644 | ||||||||||||
Total nonperforming loans
|
$ | 107,743 | $ | 171,817 | $ | 159,624 | $ | 94,695 | ||||||||
Other real estate owned
|
769 | 35,940 | 35,203 | 19,699 | ||||||||||||
Total nonperforming assets
|
$ | 108,512 | $ | 207,757 | $ | 194,827 | $ | 114,394 | ||||||||
% of nonperforming loans to period end loans
|
19.61 | % | 26.82 | % | 23.58 | % | 13.71 | % | ||||||||
% of nonperforming assets to period end loans
|
19.75 | % | 32.43 | % | 28.78 | % | 16.57 | % | ||||||||
% of nonperforming assets to period end assets
|
15.09 | % | 25.71 | % | 21.70 | % | 12.47 | % |
Nine months ended
|
Year ended December 31,
|
|||||||||||||||
(in thousands)
|
September 30, 2011
|
2010
|
2009
|
2008
|
||||||||||||
Nonaccrual loans, beginning of period
|
$ | 171,453 | $ | 148,347 | $ | 91,206 | $ | 63,015 | ||||||||
New nonaccrual loans - Vision Bank
|
14,517 | 90,094 | 126,540 | 83,588 | ||||||||||||
Resolved nonaccrual loans (1)
|
79,970 | 66,988 | 69,399 | 55,397 | ||||||||||||
Nonaccrual loans, end of period
|
$ | 106,000 | $ | 171,453 | $ | 148,347 | $ | 91,206 |
(1)
|
Consists of paydowns, charge-offs, transfers to accrual status and transfers to OREO.
|
Vision Bank - Projected Operating Results
|
||||||||||||
Q4 2011 | 2011 | 2012 | ||||||||||
Net interest income
|
$ | 6,193 | $ | 26,441 | $ | 23,866 | ||||||
Provision for loan losses
|
6,000 | 41,400 | 13,000 | |||||||||
Total other income (loss)
|
737 | (3,600 | ) | 4,662 | ||||||||
Gain on sale of securities
|
- | 1,828 | - | |||||||||
Total other expense
|
7,558 | 30,424 | 26,416 | |||||||||
Loss before taxes
|
$ | (6,628 | ) | $ | (47,155 | ) | $ | (10,888 | ) | |||
Income tax credits
|
(2,320 | ) | (16,591 | ) | (3,811 | ) | ||||||
Net loss
|
$ | (4,308 | ) | $ | (30,564 | ) | $ | (7,077 | ) |
Three months ended September 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
(in thousands)
|
Average
balance
|
Tax
equivalent %
|
Average
balance
|
Tax
equivalent %
|
||||||||||||
Loans (1)
|
$ | 4,692,013 | 5.59 | % | $ | 4,651,739 | 5.76 | % | ||||||||
Taxable investments
|
1,812,012 | 3.57 | % | 1,748,629 | 4.39 | % | ||||||||||
Tax exempt investments
|
6,293 | 6.79 | % | 16,650 | 7.11 | % | ||||||||||
Money market instruments
|
100,635 | 0.24 | % | 67,923 | 0.20 | % | ||||||||||
Interest earning assets
|
$ | 6,610,953 | 4.95 | % | $ | 6,484,941 | 5.34 | % | ||||||||
Interest bearing deposits
|
$ | 4,191,312 | 0.63 | % | $ | 4,283,049 | 0.91 | % | ||||||||
Short-term borrowings
|
253,700 | 0.28 | % | 287,172 | 0.37 | % | ||||||||||
Long-term debt
|
898,789 | 3.37 | % | 727,262 | 3.91 | % | ||||||||||
Interest bearing liabilities
|
$ | 5,343,801 | 1.07 | % | $ | 5,297,483 | 1.29 | % | ||||||||
Excess interest earning assets
|
$ | 1,267,152 | $ | 1,187,458 | ||||||||||||
Net interest spread
|
3.88 | % | 4.05 | % | ||||||||||||
Net interest margin
|
4.09 | % | 4.28 | % |
Nine Months Ended September 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
(in thousands)
|
Average
balance
|
Tax
equivalent %
|
Average
balance
|
Tax
equivalent %
|
||||||||||||
Loans (1)
|
$ | 4,726,074 | 5.61 | % | $ | 4,624,692 | 5.82 | % | ||||||||
Taxable investments
|
1,907,719 | 3.81 | % | 1,755,472 | 4.58 | % | ||||||||||
Tax exempt investments
|
8,882 | 7.24 | % | 17,489 | 7.28 | % | ||||||||||
Money market instruments
|
49,877 | 0.20 | % | 95,917 | 0.22 | % | ||||||||||
Interest earning assets
|
$ | 6,692,552 | 5.06 | % | $ | 6,493,570 | 5.41 | % | ||||||||
Interest bearing deposits
|
$ | 4,245,949 | 0.68 | % | $ | 4,312,565 | 1.03 | % | ||||||||
Short-term borrowings
|
311,281 | 0.28 | % | 292,305 | 0.42 | % | ||||||||||
Long-term debt
|
876,228 | 3.44 | % | 728,724 | 3.92 | % | ||||||||||
Interest bearing liabilities
|
$ | 5,433,458 | 1.10 | % | $ | 5,333,594 | 1.39 | % | ||||||||
Excess interest earning assets
|
$ | 1,259,094 | $ | 1,159,976 | ||||||||||||
Net interest spread
|
3.96 | % | 4.02 | % | ||||||||||||
Net interest margin
|
4.16 | % | 4.26 | % |
|
(1)
|
For purposes of the computation, nonaccrual loans are included in the average balance.
|
(in thousands)
|
Average interest
earning assets
|
Net interest
income
|
Tax equivalent
net interest margin
|
|||||||||
September 2010
|
$ | 6,484,941 | $ | 69,445 | 4.28 | % | ||||||
December 2010
|
$ | 6,447,046 | $ | 68,498 | 4.25 | % | ||||||
March 2011
|
$ | 6,722,136 | $ | 69,313 | 4.21 | % | ||||||
June 2011
|
$ | 6,745,790 | $ | 70,022 | 4.19 | % | ||||||
September 2011
|
$ | 6,610,953 | $ | 67,620 | 4.09 | % |
($ in thousands)
|
Loans
|
Investments
|
Money Market
Instruments
|
Total
|
||||||||||||
2009 - year
|
$ | 4,594,436 | $ | 1,877,303 | $ | 52,658 | $ | 6,524,397 | ||||||||
Percentage
|
70.42 | % | 28.77 | % | .81 | % | 100.00 | % | ||||||||
2010 - year
|
$ | 4,642,478 | $ | 1,746,356 | $ | 93,009 | $ | 6,481,843 | ||||||||
Percentage
|
71.62 | % | 26.94 | % | 1.44 | % | 100.00 | % | ||||||||
March 2011 - quarter
|
$ | 4,743,075 | $ | 1,952,113 | $ | 26,948 | $ | 6,722,136 | ||||||||
Percentage
|
70.56 | % | 29.04 | % | .40 | % | 100.00 | % | ||||||||
June 2011 - quarter
|
$ | 4,743,696 | $ | 1,980,855 | $ | 21,239 | $ | 6,745,790 | ||||||||
Percentage
|
70.32 | % | 29.36 | % | .32 | % | 100.00 | % | ||||||||
Sept. 2011 - quarter
|
$ | 4,692,013 | $ | 1,818,305 | $ | 100,635 | $ | 6,610,953 | ||||||||
Percentage
|
70.97 | % | 27.51 | % | 1.52 | % | 100.00 | % |
Loans
|
Investments
|
Money Market
Instruments
|
Total
|
|||||||||||||
2009
|
6.03 | % | 4.94 | % | .22 | % | 5.67 | % | ||||||||
2010
|
5.80 | % | 4.47 | % | .22 | % | 5.36 | % | ||||||||
March 2011
|
5.63 | % | 4.00 | % | .10 | % | 5.14 | % | ||||||||
June 2011
|
5.61 | % | 3.87 | % | .15 | % | 5.08 | % | ||||||||
September 2011
|
5.59 | % | 3.58 | % | .24 | % | 4.95 | % |
Park National Corporation – Allowance for Loan & Lease Losses (ALLL)
|
||||||||||||
(in thousands)
|
September 30,
2011
|
December 31,
2010
|
September 30,
2010
|
|||||||||
Total ALLL
|
$ | 100,248 | $ | 121,397 | $ | 117,405 | ||||||
Less Ohio specific reserves
|
||||||||||||
Ohio impaired loans
|
7,496 | 5,475 | 4,582 | |||||||||
Vision Bank participations
|
7,396 | 7,501 | 4,843 | |||||||||
Less specific reserves at Vision Bank
|
18,383 | 30,483 | 25,868 | |||||||||
General reserves
|
$ | 66,973 | $ | 77,938 | $ | 82,112 | ||||||
Total loans
|
$ | 4,680,575 | $ | 4,732,685 | $ | 4,656,902 | ||||||
Less impaired commercial loans
|
192,363 | 250,933 | 206,155 | |||||||||
Non-impaired loans
|
$ | 4,488,212 | $ | 4,481,752 | $ | 4,450,747 | ||||||
Total ALLL to total loan ratio
|
2.14 | % | 2.57 | % | 2.52 | % | ||||||
General reserves as a % of non-impaired loans
|
1.49 | % | 1.74 | % | 1.84 | % |
New nonaccrual loan information (in
thousands):
|
Sept. 30,
2011
|
June 30,
2011
|
March 31,
2011
|
2010
|
2009
|
|||||||||||||||
Nonaccrual loans, beginning of period
|
$ | 238,690 | $ | 278,819 | $ | 289,268 | $ | 233,544 | $ | 159,512 | ||||||||||
New nonaccrual loans - Ohio-based operations
|
19,354 | 22,439 | 8,674 | 85,081 | 57,641 | |||||||||||||||
New nonaccrual loans - Vision Bank
|
5,543 | 2,980 | 5,994 | 90,094 | 126,540 | |||||||||||||||
Resolved nonaccrual loans
|
49,221 | 65,548 | 25,117 | 119,451 | 110,149 | |||||||||||||||
Nonaccrual loans, end of period
|
$ | 214,366 | $ | 238,690 | $ | 278,819 | $ | 289,268 | $ | 233,544 |
Park National Corporation - Nonperforming Assets
|
||||||||||||
(in thousands)
|
September 30,
2011
|
December 31,
2010
|
September 30,
2010
|
|||||||||
Nonaccrual loans
|
$ | 214,366 | $ | 289,268 | $ | 237,194 | ||||||
Renegotiated loans on accrual status
|
15,448 | - | - | |||||||||
Loans past due 90 days or more
|
2,162 | 3,590 | 10,700 | |||||||||
Total nonperforming loans
|
$ | 231,976 | $ | 292,858 | $ | 247,894 | ||||||
Other Real Estate Owned – Park National Bank
|
11,815 | 8,385 | 9,658 | |||||||||
Other Real Estate Owned – SE Property Holdings
|
34,327 | - | - | |||||||||
Other Real Estate Owned – Vision Bank
|
769 | 35,940 | 43,179 | |||||||||
Total nonperforming assets
|
$ | 278,887 | $ | 337,183 | $ | 300,731 | ||||||
Percentage of nonperforming loans to total loans
|
4.96 | % | 6.19 | % | 5.32 | % | ||||||
Percentage of nonperforming assets to total loans
|
5.96 | % | 7.12 | % | 6.46 | % | ||||||
Percentage of nonperforming assets to total assets
|
3.93 | % | 4.62 | % | 4.24 | % |
Vision Bank - Nonperforming Assets
|
||||||||||||
(in thousands)
|
September 30,
2011
|
December 31,
2010
|
September 30,
2010
|
|||||||||
Nonaccrual loans
|
$ | 106,000 | $ | 171,453 | $ | 132,806 | ||||||
Renegotiated loans on accrual status
|
1,743 | - | - | |||||||||
Loans past due 90 days or more
|
- | 364 | 5,962 | |||||||||
Total nonperforming loans
|
$ | 107,743 | $ | 171,817 | $ | 138,768 | ||||||
Other Real Estate Owned
|
769 | 35,940 | 43,179 | |||||||||
Total nonperforming assets
|
$ | 108,512 | $ | 207,757 | $ | 181,947 | ||||||
Percentage of nonperforming loans to total loans
|
19.61 | % | 26.82 | % | 21.27 | % | ||||||
Percentage of nonperforming assets to total loans
|
19.75 | % | 32.43 | % | 27.89 | % | ||||||
Percentage of nonperforming assets to total assets
|
15.09 | % | 25.71 | % | 21.71 | % |
Park, excluding Vision Bank - Nonperforming Assets
|
||||||||||||
(in thousands)
|
September 30,
2011
|
December 31,
2010
|
September 30,
2010
|
|||||||||
Nonaccrual loans
|
$ | 108,366 | $ | 117,815 | $ | 104,388 | ||||||
Renegotiated loans
|
13,705 | - | - | |||||||||
Loans past due 90 days or more
|
2,162 | 3,226 | 4,738 | |||||||||
Total nonperforming loans
|
$ | 124,233 | $ | 121,041 | $ | 109,126 | ||||||
Other Real Estate Owned – Park National Bank
|
11,815 | 8,385 | 9,658 | |||||||||
Other Real Estate Owned – SE Property Holdings
|
34,327 | - | - | |||||||||
Total nonperforming assets
|
$ | 170,375 | $ | 129,426 | $ | 118,784 | ||||||
Percentage of nonperforming loans to total loans
|
3.01 | % | 2.96 | % | 2.73 | % | ||||||
Percentage of nonperforming assets to total loans
|
4.12 | % | 3.16 | % | 2.97 | % | ||||||
Percentage of nonperforming assets to total assets
|
2.67 | % | 1.99 | % | 1.90 | % |
Vision Bank CL&D Loan Portfolio
|
||||||||||||||||
(in thousands) - end of each respective period
|
September 30,
2011
|
Dec. 31,
2010
|
Dec. 31,
2009
|
Dec. 31,
2008
|
||||||||||||
CL&D loans
|
$ | 102,271 | $ | 171,334 | $ | 218,263 | $ | 251,443 | ||||||||
Performing CL&D loans
|
60,240 | 84,843 | 132,380 | 191,712 | ||||||||||||
Impaired CL&D loans
|
$ | 42,031 | $ | 86,491 | $ | 85,883 | $ | 59,731 | ||||||||
Specific reserve on impaired CL&D loans
|
$ | 12,135 | $ | 23,585 | $ | 21,802 | $ | 3,134 | ||||||||
Cumulative charge-offs on impaired CL&D loans
|
51,615 | 28,652 | 24,931 | 18,839 | ||||||||||||
Specific reserves plus cumulative charge-offs
|
$ | 63,750 | $ | 52,237 | $ | 46,733 | $ | 21,973 | ||||||||
Specific reserves plus cumulative charge-offs as a percentage of impaired CL&D loans plus cumulative charge-offs
|
68.1 | % | 45.4 | % | 42.2 | % | 28.0 | % |
Forecast
|
||||||||||||||||
(in
thousands)
|
Actual
September
2011
|
Fourth
Quarter
2011
|
Total
2011
|
Total
2012
|
||||||||||||
Vision Bank
|
$ | 35,400 | $ | 6,000 | $ | 41,400 | $ | 13,000 | ||||||||
Park Ohio
|
20,525 | 6,000 | 26,525 | 20,000 | ||||||||||||
Total
|
$ | 55,925 | $ | 12,000 | $ | 67,925 | $ | 33,000 |
|
·
|
The level of new nonaccrual loans is expected to continue to be very low in 2012.
|
|
·
|
Provision expense pertaining to the write-down or reserving for nonaccrual loans is expected to dramatically decrease as all the real estate collateral has been re-appraised in 2011. Management does not believe that the new appraisals in 2012 will indicate that collateral values have continued to significantly decline.
|
|
·
|
Management expects to see an increase in recoveries of previously charged-off loans as our third party collection efforts continue.
|
(in thousands)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
||||||||||||||||||||||
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
|||||||||||||||||||
Income from fiduciary activities
|
$ | 3,615 | $ | 3,314 | $ | 301 | $ | 11,266 | $ | 10,264 | $ | 1,002 | ||||||||||||
Service charges on deposits
|
4,894 | 5,026 | (132 | ) | 13,664 | 14,864 | (1,200 | ) | ||||||||||||||||
Other service income
|
3,087 | 3,909 | (822 | ) | 8,122 | 10,367 | (2,245 | ) | ||||||||||||||||
Checkcard fee income
|
3,154 | 2,900 | 254 | 9,381 | 8,109 | 1,272 | ||||||||||||||||||
Bank owned life insurance income
|
1,229 | 1,313 | (84 | ) | 3,686 | 3,783 | (97 | ) | ||||||||||||||||
ATM fees
|
726 | 699 | 27 | 2,062 | 2,296 | (234 | ) | |||||||||||||||||
OREO devaluations
|
(1,688 | ) | (1,555 | ) | (133 | ) | (11,339 | ) | (4,619 | ) | (6,720 | ) | ||||||||||||
Other
|
1,910 | 1,924 | (14 | ) | 6,492 | 5,823 | 669 | |||||||||||||||||
Total other income
|
$ | 16,927 | $ | 17,530 | $ | (603 | ) | $ | 43,334 | $ | 50,887 | $ | (7,553 | ) |
Three months ended
September 30, 2011
|
Nine months ended
September 30, 2011
|
|||||||||||||||||||||||
(In thousands)
|
Ohio-based
operations
|
Vision
Bank
|
Total
|
Ohio-based
operations
|
Vision
Bank
|
Total
|
||||||||||||||||||
Income from fiduciary activities
|
$ | 302 | $ | (1 | ) | $ | 301 | $ | 997 | $ | 5 | $ | 1,002 | |||||||||||
Service charges on deposits
|
(118 | ) | (14 | ) | (132 | ) | (953 | ) | (247 | ) | (1,200 | ) | ||||||||||||
Non-yield loan fee income
|
(851 | ) | 29 | (822 | ) | (2,335 | ) | 90 | (2,245 | ) | ||||||||||||||
Checkcard fee income
|
212 | 42 | 254 | 816 | 456 | 1,272 | ||||||||||||||||||
Bank owned life insurance income
|
(84 | ) | - | (84 | ) | (92 | ) | (5 | ) | (97 | ) | |||||||||||||
ATM fees
|
31 | (4 | ) | 27 | 48 | (282 | ) | (234 | ) | |||||||||||||||
OREO devaluations
|
(1,285 | ) | 1,152 | (133 | ) | (2,967 | ) | (3,753 | ) | (6,720 | ) | |||||||||||||
Other
|
137 | (151 | ) | (14 | ) | 525 | 144 | 669 | ||||||||||||||||
Total
|
$ | (1,656 | ) | $ | 1,053 | $ | (603 | ) | $ | (3,961 | ) | $ | (3,592 | ) | $ | (7,553 | ) |
(in thousands)
|
Amortized Cost
|
Book Yield
|
Sales Proceeds
|
Yield to buyer
|
Gain
|
|||||||||||||||
Third Quarter
|
$ | 212,799 | 2.60 | % | $ | 216,264 | 2.03 | % | $ | 3,465 | ||||||||||
Second Quarter
|
191,037 | 5.25 | % | 206,399 | 1.92 | % | 15,362 | |||||||||||||
First Quarter
|
105,444 | 5.02 | % | 112,079 | 2.10 | % | 6,635 | |||||||||||||
Total
|
$ | 509,280 | 4.10 | % | $ | 534,742 | 2.00 | % | $ | 25,462 |
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||||||||||
(in thousands)
|
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
||||||||||||||||||
Salaries and employee benefits
|
$ | 25,799 | $ | 24,500 | $ | 1,299 | $ | 76,116 | $ | 73,684 | $ | 2,432 | ||||||||||||
Occupancy expense
|
2,665 | 2,840 | (175 | ) | 8,429 | 8,750 | (321 | ) | ||||||||||||||||
Furniture and equipment expense
|
2,688 | 2,624 | 64 | 8,130 | 7,820 | 310 | ||||||||||||||||||
Data processing fees
|
1,184 | 1,403 | (219 | ) | 3,572 | 4,390 | (818 | ) | ||||||||||||||||
Professional fees and services
|
5,005 | 4,477 | 528 | 15,199 | 14,632 | 567 | ||||||||||||||||||
Amortization of intangibles
|
669 | 822 | (153 | ) | 2,007 | 2,600 | (593 | ) | ||||||||||||||||
Marketing
|
764 | 840 | (76 | ) | 2,115 | 2,688 | (573 | ) | ||||||||||||||||
Insurance
|
681 | 2,316 | (1,635 | ) | 5,295 | 6,847 | (1,552 | ) | ||||||||||||||||
Communication
|
1,475 | 1,696 | (221 | ) | 4,516 | 5,112 | (596 | ) | ||||||||||||||||
State taxes
|
469 | 865 | (396 | ) | 1,414 | 2,548 | (1,134 | ) | ||||||||||||||||
Other
|
4,200 | 3,313 | 887 | 12,159 | 11,516 | 643 | ||||||||||||||||||
Total other expense
|
$ | 45,599 | $ | 45,696 | $ | (97 | ) | $ | 138,952 | $ | 140,587 | $ | (1,635 | ) |
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||||||||||
(in thousands)
|
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
||||||||||||||||||
Salaries
|
$ | 20,503 | $ | 19,747 | $ | 756 | $ | 60,519 | $ | 59,407 | $ | 1,112 | ||||||||||||
Employee benefits
|
5,296 | 4,753 | 543 | 15,597 | 14,277 | 1,320 | ||||||||||||||||||
Total salaries and employee benefits
|
$ | 25,799 | $ | 24,500 | $ | 1,299 | $ | 76,116 | $ | 73,684 | $ | 2,432 |
Three months ended
September 30, 2011
|
Nine months ended
September 30, 2011
|
|||||||||||||||||||||||
(in thousands)
|
Ohio-based
operations
|
Vision
Bank
|
Total
|
Ohio-based
operations
|
Vision
Bank
|
Total
|
||||||||||||||||||
Salaries and employee benefits
|
$ | 1,624 | $ | (325 | ) | $ | 1,299 | $ | 2,835 | $ | (403 | ) | $ | 2,432 | ||||||||||
Occupancy expense
|
(186 | ) | 11 | (175 | ) | (339 | ) | 18 | (321 | ) | ||||||||||||||
Furniture and equipment expense
|
90 | (26 | ) | 64 | 428 | (118 | ) | 310 | ||||||||||||||||
Data processing fees
|
(100 | ) | (119 | ) | (219 | ) | (420 | ) | (398 | ) | (818 | ) | ||||||||||||
Professional fees and services
|
(123 | ) | 651 | 528 | 124 | 443 | 567 | |||||||||||||||||
Amortization of intangibles
|
(153 | ) | - | (153 | ) | (593 | ) | - | (593 | ) | ||||||||||||||
Marketing
|
(79 | ) | 3 | (76 | ) | (534 | ) | (39 | ) | (573 | ) | |||||||||||||
Insurance
|
(1,394 | ) | (241 | ) | (1,635 | ) | (1,122 | ) | (430 | ) | (1,552 | ) | ||||||||||||
Communication
|
(198 | ) | (23 | ) | (221 | ) | (587 | ) | (9 | ) | (596 | ) | ||||||||||||
State taxes
|
(377 | ) | (19 | ) | (396 | ) | (1,130 | ) | (4 | ) | (1,134 | ) | ||||||||||||
Other
|
1,258 | (371 | ) | 887 | 654 | (11 | ) | 643 | ||||||||||||||||
Total other expense
|
$ | 362 | $ | (459 | ) | $ | (97 | ) | $ | (684 | ) | $ | (951 | ) | $ | (1,635 | ) |
(in thousands)
|
September 30, 2011
|
December 31, 2010
|
Change
|
|||||||||
Noninterest bearing deposits
|
$ | 1,000,969 | $ | 937,719 | $ | 63,250 | ||||||
NOW and Money Market
|
1,432,827 | 1,283,158 | 149,669 | |||||||||
Savings
|
949,547 | 900,639 | 48,908 | |||||||||
Brokered Deposits
|
0 | 110,065 | (110,065 | ) | ||||||||
Certificates of Deposit
|
1,705,844 | 1,863,839 | (157,995 | ) | ||||||||
Total Deposits
|
$ | 5,089,187 | $ | 5,095,420 | $ | (6,233 | ) |
Leverage
|
Tier 1
Risk Based
|
Total
Risk-Based
|
||||||||||
The Park National Bank
|
6.67 | % | 9.81 | % | 11.76 | % | ||||||
Vision Bank
|
16.30 | % | 22.19 | % | 23.48 | % | ||||||
Park National Corporation
|
9.73 | % | 14.04 | % | 16.52 | % | ||||||
Minimum capital ratio
|
4.00 | % | 4.00 | % | 8.00 | % | ||||||
Well capitalized ratio
|
5.00 | % | 6.00 | % | 10.00 | % |
(in thousands)
|
September 30, 2011
|
December 31, 2010
|
||||||
Loan commitments
|
$ | 837,299 | $ | 716,598 | ||||
Standby letters of credit
|
$ | 20,238 | $ | 24,462 |
·
|
information required to be disclosed by Park in this Quarterly Report on Form 10-Q and other reports that Park files or submits under the Exchange Act would be accumulated and communicated to Park’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure;
|
·
|
information required to be disclosed by Park in this Quarterly Report on Form 10-Q and the other reports that Park files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and
|
·
|
Park’s disclosure controls and procedures were effective, with the exception of the material weakness previously identified in the Form 10-K/A filed on October 11, 2011, as of the end of the quarterly period covered by this Quarterly Report on Form 10-Q. Refer to the “Changes in Internal Control over Financial Reporting” section below for additional discussion of the material weakness.
|
|
·
|
Management has discontinued the use of value-related information received from a third-party contractor, who is not a licensed appraiser. While management continues to consult with this third-party contractor on the current status of loan workouts and progress related to the pursuit of legally bound borrowers and guarantors, management no longer utilizes the third-party contractor’s estimates of value to determine the specific reserves that should be established on impaired loans.
|
|
·
|
Management has discontinued the use of information received from the third-party contractor to value OREO properties. Currently, OREO properties are valued based on external appraisals that are no more than 12 months old and were prepared by external licensed appraisers.
|
|
·
|
Management has discontinued the use of retail lot values (discounted by management’s standard bulk sale discount) on lot development projects and is now utilizing the bulk sale value provided by external licensed appraisers, which in certain cases applies a larger discount.
|
|
·
|
In addition to the real estate appraisal policy in place as of December 31, 2010, management has enhanced its commercial loan policy to formalize the requirements for the frequency and dollar threshold for which updated real estate appraisals are to be obtained from qualified licensed appraisers with respect to impaired loans and OREO properties. This enhancement to the commercial loan policy also discusses those situations where internally prepared valuations (“IPV”) are considered appropriate, the documentation that should accompany IPVs and the frequency of evaluating the accuracy of the assumptions and data used in the IPV estimates.
|
|
(a.)
|
Not applicable
|
(b.)
|
Not applicable
|
|
(c.)
|
No purchases of Park’s common shares were made by or on behalf of Park or any “affiliated purchaser” as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended, during the three months ended September 30, 2011. The following table provides information concerning changes in the maximum number of common shares that may be purchased under Park’s previously announced repurchase programs as a result of the forfeiture of previously outstanding incentive stock options:
|
Period
|
Total number of
common shares
purchased
|
Average price
paid per
common
share
|
Total number of common
shares purchased as part of
publicly announced plans
or programs
|
Maximum number of
common shares that may
yet be purchased under the
plans or programs (1)
|
||||||||||||
July 1 through
July 31, 2011
|
- | - | - | 1,011,239 | ||||||||||||
August 1 through
August 31, 2011
|
- | - | - | 1,011,239 | ||||||||||||
September 1 through
September 30, 2011
|
- | - | - | 1,011,239 | ||||||||||||
Total
|
- | - | - | 1,011,239 |
|
(1)
|
The number shown represents, as of the end of each period, the maximum number of common shares that may yet be purchased as part of Park’s publicly announced stock repurchase authorization to fund the Park National Corporation 2005 Incentive Stock Option Plan.
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
[Reserved]
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
3.1(a)
|
Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on March 24, 1992 (Incorporated herein by reference to Exhibit 3(a) to Park National Corporation’s Form 8-B, filed on May 20, 1992 (File No. 0-18772) (“Park’s Form 8-B”))
|
|
3.1(b)
|
Certificate of Amendment to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on May 6, 1993 (Incorporated herein by reference to Exhibit 3(b) to Park National Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 0-18772))
|
|
3.1(c)
|
Certificate of Amendment to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on April 16, 1996 (Incorporated herein by reference to Exhibit 3(a) to Park National Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1996 (File No. 1-13006))
|
|
3.1(d)
|
Certificate of Amendment by Shareholders to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on April 22, 1997 (Incorporated herein by reference to Exhibit 3(a)(1) to Park National Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1997 (File No. 1-13006) (“Park’s June 30, 1997 Form 10-Q”))
|
|
3.1(e)
|
Certificate of Amendment by Shareholders or Members as filed with the Secretary of State of the State of Ohio on December 18, 2008 in order to evidence the adoption by the shareholders of Park National Corporation on December 18, 2008 of an amendment to Article FOURTH of Park National Corporation’s Articles of Incorporation to authorize Park National Corporation to issue up to 200,000 preferred shares, without par value (Incorporated herein by reference to Exhibit 3.1 to Park National Corporation’s Current Report on Form 8-K dated and filed December 19, 2008 (File No. 1-13006))
|
|
3.1(f)
|
Certificate of Amendment by Directors or Incorporators to Articles as filed with the Secretary of State of the State of Ohio on December 19, 2008, evidencing adoption of amendment by Board of Directors of Park National Corporation to Article FOURTH of Articles of Incorporation to establish express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of Park National Corporation (Incorporated herein by reference to Exhibit 3.1 to Park National Corporation’s Current Report on Form 8-K dated and filed December 23, 2008 (File No. 1-13006))
|
3.1(g)
|
Certificate of Amendment by Shareholders or Members filed with the Secretary of State of the State of Ohio on April 18, 2011 in order to evidence the adoption by Park National Corporation’s shareholders of an amendment to Article SIXTH of Park National Corporation’s Articles of Incorporation in order to provide that shareholders do not have preemptive rights (Incorporated herein by reference to Exhibit 3.1 to Park National Corporation’s Current Report on Form 8-K dated and filed April 19, 2011 (File No. 1-13006))
|
|
3.1(h)
|
Articles of Incorporation of Park National Corporation (reflecting amendments through April 18, 2011) [for SEC reporting compliance purposes only – not filed with Ohio Secretary of State] (Incorporated herein by reference to Exhibit 3.1(h) to Park National Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011 (File No. 1-13006))
|
|
3.2(a)
|
Regulations of Park National Corporation (Incorporated herein by reference to Exhibit 3(b) to Park’s Form 8-B)
|
|
3.2(b)
|
Certified Resolution regarding Adoption of Amendment to Subsection 2.02(A) of the Regulations of Park National Corporation by Shareholders on April 21, 1997 (Incorporated herein by reference to Exhibit 3(b)(1) to Park’s June 30, 1997 Form 10-Q)
|
|
3.2(c)
|
Certificate Regarding Adoption of Amendments to Sections 1.04 and 1.11 of Park National Corporation’s Regulations by the Shareholders on April 17, 2006 (Incorporated herein by reference to Exhibit 3.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on April 18, 2006 (File No. 1-13006))
|
|
3.2(d)
|
Certificate Regarding Adoption by the Shareholders of Park National Corporation on April 21, 2008 of Amendment to Regulations to Add New Section 5.10 to Article Five (Incorporated herein by reference to Exhibit 3.2(d) to Park National Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008 (File No. 1-13006) (“Park’s March 31, 2008 Form 10-Q”))
|
|
3.2(e)
|
Regulations of Park National Corporation (reflecting amendments through April 21, 2008) [For purposes of SEC reporting compliance only] (Incorporated herein by reference to Exhibit 3.2(e) to Park’s March 31, 2008 Form 10-Q)
|
|
12
|
Computation of Ratios of Earnings to Fixed Charges and of Earnings to Fixed Charges and Preferred Share Dividends (filed herewith)
|
|
31.1
|
Rule 13a – 14(a) / 15d – 14(a) Certifications (Principal Executive Officer) (filed herewith)
|
|
31.2
|
Rule 13a – 14(a) / 15d – 14(a) Certifications (Principal Financial Officer) (filed herewith)
|
|
32.1
|
Certifications Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (Principal Executive Officer) (furnished herewith)
|
32.2
|
Certifications Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (Principal Financial Officer) (furnished herewith)
|
|
101
|
The following information from Park’s September 30, 2011 Form 10-Q formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Condensed Balance Sheets as of September 30, 2011 (unaudited) and December 31, 2010; (ii) the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2011 and 2010 (unaudited); (iii) the Consolidated Condensed Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2011 and 2010 (unaudited); (iv) the Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2011 and 2010 (unaudited); and (v) the Notes to Unaudited Consolidated Condensed Financial Statements.
Pursuant to Rule 406T of Regulation S-T, the interactive data files included as Exhibit 101 are furnished and not deemed filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those Sections.
|
PARK NATIONAL CORPORATION
|
|
DATE: November 9, 2011
|
/s/ C. Daniel DeLawder
|
C. Daniel DeLawder
|
|
Chairman of the Board and
|
|
Chief Executive Officer
|
|
DATE: November 9, 2011
|
/s/ John W. Kozak
|
John W. Kozak
|
|
Chief Financial Officer
|
Nine Months
|
||||||||||||||||||||||||
Ended
|
Year Ended December 31,
|
|||||||||||||||||||||||
Sept 30, 2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||||||||||
Ratio of earnings to fixed charges (1)
|
||||||||||||||||||||||||
Excluding Interest on Deposits
|
4.43 | 4.29 | 4.20 | 1.77 | 2.12 | 4.36 | ||||||||||||||||||
Including Interest on Deposits
|
2.79 | 2.38 | 2.02 | 1.26 | 1.31 | 2.09 |
(1)
|
For purposes of computing the ratios, earnings consist of income before income taxes and fixed charges. Fixed charges consist of interest on borrowings and long-term debt, including/excluding interest on deposits, and one-third of rental expense, which Park National Corporation believes is representative of the interest factor.
|
Earnings:
|
||||||||||||||||||||||||
Income before income taxes
|
$ | 80,874,000 | $ | 99,531,000 | $ | 97,135,000 | $ | 35,719,000 | $ | 52,677,000 | $ | 133,077,000 | ||||||||||||
Fixed Charges:
|
||||||||||||||||||||||||
Interest on deposits
|
21,513,000 | 41,965,000 | 64,620,000 | 89,892,000 | 121,021,000 | 82,272,000 | ||||||||||||||||||
Borrowings and long-term debt
|
23,181,000 | 29,508,000 | 29,579,000 | 45,574,000 | 46,126,000 | 39,043,000 | ||||||||||||||||||
Rent expense interest factor (1/3)
|
424,897 | 721,687 | 794,866 | 801,147 | 731,723 | 530,030 | ||||||||||||||||||
Total fixed charges:
|
||||||||||||||||||||||||
Including interest on deposits
|
$ | 45,118,897 | $ | 72,194,687 | $ | 94,993,866 | $ | 136,267,147 | $ | 167,878,723 | $ | 121,845,030 | ||||||||||||
Excluding interest on deposits
|
$ | 23,605,897 | $ | 30,229,687 | $ | 30,373,866 | $ | 46,375,147 | $ | 46,857,723 | $ | 39,573,030 |
Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends
|
The following table shows the ratio of earnings to fixed charges and preferred dividends for Park, which includes our subsidiaries, on a consolidated basis:
|
Nine Months
|
||||||||||||||||||||||||
Ended
|
Year Ended December 31,
|
|||||||||||||||||||||||
Sept 30, 2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||||||||||
Ratio of earnings to fixed charges
|
||||||||||||||||||||||||
and preferred dividends (1):
|
||||||||||||||||||||||||
Excluding Interest on Deposits
|
3.71 | 3.58 | 3.52 | 1.77 | 2.12 | 4.36 | ||||||||||||||||||
Including Interest on Deposits
|
2.57 | 2.24 | 1.94 | 1.26 | 1.31 | 2.09 | ||||||||||||||||||
|
(1)
|
For purposes of computing the ratios, earnings consist of income before income taxes and fixed charges. Fixed charges consist of interest on borrowings and long-term debt, including/excluding interest on deposits, preferred dividends and accretion, and one-third of rental expense, which Park National Corporation believes is representative of the interest factor.
|
Earnings:
|
||||||||||||||||||||||||
Income before income taxes
|
$ | 80,874,000 | $ | 99,531,000 | $ | 97,135,000 | $ | 35,719,000 | $ | 52,677,000 | $ | 133,077,000 | ||||||||||||
Fixed Charges:
|
||||||||||||||||||||||||
Interest on deposits
|
21,513,000 | 41,965,000 | 64,620,000 | 89,892,000 | 121,021,000 | 82,272,000 | ||||||||||||||||||
Borrowings and long-term debt
|
23,181,000 | 29,508,000 | 29,579,000 | 45,574,000 | 46,126,000 | 39,043,000 | ||||||||||||||||||
Preferred dividends and accretion
|
6,274,286 | 8,295,714 | 8,231,429 | 202,857 | ||||||||||||||||||||
Rent expense interest factor (1/3)
|
424,897 | 721,687 | 794,866 | 801,147 | 731,723 | 530,030 | ||||||||||||||||||
Total fixed charges:
|
||||||||||||||||||||||||
Including interest on deposits
|
$ | 51,393,182 | $ | 80,490,402 | $ | 103,225,295 | $ | 136,470,004 | $ | 167,878,723 | $ | 121,845,030 | ||||||||||||
Excluding interest on deposits
|
$ | 29,880,182 | $ | 38,525,402 | $ | 38,605,295 | $ | 46,578,004 | $ | 46,857,723 | $ | 39,573,030 |
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2011, of Park National Corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
Date: November 9, 2011
|
/s/ C. Daniel DeLawder
|
|
C. Daniel DeLawder
|
||
Chairman of the Board and Chief Executive Officer
|
||
(Principal Executive Officer)
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2011, of Park National Corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
Date: November 9, 2011
|
/s/ John W. Kozak
|
|
John W. Kozak
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company and its subsidiaries.
|
/s/ C. Daniel DeLawder
|
|
C. Daniel DeLawder
|
|
Chairman of the Board and
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
November 9, 2011
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company and its subsidiaries.
|
/s/ John W. Kozak
|
|
John W. Kozak
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
November 9, 2011
|
Consolidated Condensed Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Consolidated Condensed Balance Sheets [Abstract] | ||
Amortized cost of securities available-for-sale | $ 772,910,000 | $ 1,274,258,000 |
Fair value of securities held-to-maturity | 861,369,000 | 686,114,000 |
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 100,000 | 100,000 |
Preferred stock per share liquidation preference | $ 1,000 | $ 1,000 |
Common stock no par value | ||
Common stock shares authorized | 20,000,000 | 20,000,000 |
Common stock shares issued | 16,151,033 | 16,151,062 |
Treasury stock shares | 752,129 | 752,128 |
Participation In The U.S. Treasury Capital Purchase Program (CPP) | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Participation In The U.S. Treasury Capital Purchase Program (CPP) [Abstract] | |
Participation In The U.S. Treasury Capital Purchase Program (CPP) | Note 16 –Participation in the U.S. Treasury Capital Purchase Program (CPP)
On December 23, 2008, Park issued $100 million of cumulative perpetual preferred shares, with a liquidation preference of $1,000 per share (the "Senior Preferred Shares"). The Senior Preferred Shares constitute Tier 1 capital and rank senior to Park's common shares. The Senior Preferred Shares pay cumulative dividends at a rate of 5% per annum through February 14, 2014 and will reset to a rate of 9% per annum thereafter. For the three and nine month periods ended September 30, 2011, Park recognized a charge to retained earnings of $1.5 million and $4.4 million, respectively, representing the preferred stock dividend and accretion of the discount on the preferred stock, associated with Park's participation in the CPP.
As part of its participation in the CPP, Park also issued a warrant to the U.S. Treasury to purchase 227,376 common shares, which is equal to 15% of the aggregate amount of the Senior Preferred Shares purchased by the U.S. Treasury, having an exercise price of $65.97. The initial exercise price for the warrant and the market price for determining the number of common shares subject to the warrant were determined by reference to the market price of the common shares on the date the Company's application for participation in the CPP was approved by the U.S. Department of the Treasury (calculated on a 20-day trailing average). The warrant has a term of 10 years.
A company that participates in the CPP must adopt certain standards for compensation and corporate governance, established under the American Recovery and Reinvestment Act of 2009 (the "ARRA"), which amended and replaced the executive compensation provisions of the Emergency Economic Stabilization Act of 2008 ("EESA") in their entirety, and the Interim Final Rule promulgated by the Secretary of the U.S. Treasury under 31 C.F.R. Part 30 (collectively, the "Troubled Asset Relief Program (TARP) Compensation Standards"). In addition, Park's ability to declare or pay dividends on or repurchase its common shares is partially restricted as a result of its participation in the CPP. |
Document And Entity Information | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Nov. 04, 2011 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2011 | |
Document Fiscal Year Focus | 2011 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | PARK NATIONAL CORP /OH/ | |
Entity Central Index Key | 0000805676 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,405,921 |
Loans (Recorded Investment By Loan Grade) (Details) (USD $) In Thousands | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Commercial, Financial, and Agricultural [Member] | 5 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | $ 36,037 | $ 26,322 |
Commercial, Financial, and Agricultural [Member] | 6 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 7,150 | 11,447 |
Commercial, Financial, and Agricultural [Member] | Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 24,925 | 19,276 |
Commercial, Financial, and Agricultural [Member] | Recorded Investment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 759,880 | 740,788 |
Commercial, Financial, and Agricultural [Member] | Pass Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 691,768 | 683,743 |
Commercial Real Estate [Member] | 5 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 51,417 | 57,394 |
Commercial Real Estate [Member] | 6 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 21,222 | 26,992 |
Commercial Real Estate [Member] | Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 44,099 | 57,941 |
Commercial Real Estate [Member] | Recorded Investment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 1,256,000 | 1,231,420 |
Commercial Real Estate [Member] | Pass Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 1,139,262 | 1,089,093 |
Leases [Member] | 5 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | ||
Leases [Member] | 6 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | ||
Leases [Member] | Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | ||
Leases [Member] | Recorded Investment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 2,204 | 2,663 |
Leases [Member] | Pass Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 2,204 | 2,663 |
Vision Commercial Land And Development [Member] | 5 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 10,791 | 10,220 |
Vision Commercial Land And Development [Member] | 6 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 2,040 | 7,941 |
Vision Commercial Land And Development [Member] | Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 42,036 | 87,424 |
Vision Commercial Land And Development [Member] | Recorded Investment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 102,503 | 171,616 |
Vision Commercial Land And Development [Member] | Pass Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 47,636 | 66,031 |
Remaining Commercial [Member] | 5 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 7,954 | 14,021 |
Remaining Commercial [Member] | 6 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 14,626 | 39,062 |
Remaining Commercial [Member] | Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 33,961 | 27,080 |
Remaining Commercial [Member] | Recorded Investment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 163,947 | 196,315 |
Remaining Commercial [Member] | Pass Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 107,406 | 116,152 |
Residential Real Estate - Commercial [Member] | 5 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 22,825 | 29,206 |
Residential Real Estate - Commercial [Member] | 6 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 14,096 | 18,117 |
Residential Real Estate - Commercial [Member] | Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 47,422 | 60,227 |
Residential Real Estate - Commercial [Member] | Recorded Investment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 457,946 | 466,306 |
Residential Real Estate - Commercial [Member] | Pass Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 373,603 | 358,756 |
5 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 129,024 | 137,163 |
6 Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 59,134 | 103,559 |
Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 192,443 | 251,948 |
Recorded Investment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | 2,742,480 | 2,809,108 |
Pass Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Loans | $ 2,361,879 | $ 2,316,438 |
Regulatory Update | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Regulatory Update [Abstract] | |
Regulatory Update | Note 19 – Regulatory Update
In a Current Report on Form 8-K filed on June 30, 2011, management reported that the Federal Deposit Insurance Corporation ("FDIC") and the Office of Financial Regulation ("OFR") had communicated their preliminary on-site examination findings to the management of Vision Bank. As reported in the June 30, 2011 Form 8-K, the FDIC and the OFR have taken exception to approximately $18 million in guarantor support underlying certain impaired commercial loans, which had been incorporated into our analysis of the allowance for loan losses at Vision Bank. On August 1, 2011 and August 29, 2011, management of Vision Bank received the final reports of examination from the OFR and FDIC, which were consistent with the preliminary findings communicated to management at the on-site exit meeting. On October 26, 2011, management formally submitted an appeal to the FDIC and OFR. Management expects to receive a response from the FDIC and OFR during the fourth quarter. It remains possible that management could be required to re-file the December 31, 2010 call report for Vision Bank if we are unsuccessful upon appeal. The amount of underlying guarantor support specific to the $18 million noted by the FDIC and the OFR has been reduced to $9.0 million at September 30, 2011.
The $18 million in guarantor support noted by the FDIC and the OFR constitutes the majority of the guarantor support that management had incorporated into the analysis of allowance for loan losses at December 31, 2010, which totaled $21.6 million. The $21.6 million in total guarantor support at December 31, 2010, related to 25 individual credit relationships, has declined to $9.2 million at September 30, 2011. The decline in guarantor support of $12.4 million during 2011 consists of the following: (1) cash payments received of approximately $3.3 million; (2) new appraisal information received in 2011 that resulted in increases in collateral values of approximately $3.8 million; and (3) charge-offs or additional specific reserves of approximately $5.3 million. |
Loans (Aging Of Recorded Investment In Past Due Loans) (Details) (USD $) In Thousands | Sep. 30, 2011 | Dec. 31, 2010 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | $ 39,571 | $ 49,393 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 135,318 | [1] | 209,546 | [2] | ||||||
Total loans past due | 174,889 | 258,939 | ||||||||
Total current | 4,520,955 | 4,491,251 | ||||||||
Total recorded investment | 4,695,844 | 4,750,190 | ||||||||
Loans past due 90 days or more and accruing | 2,222 | 3,693 | ||||||||
Commercial Real Estate [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 9,543 | 9,521 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 23,119 | [1] | 53,269 | [2] | ||||||
Total loans past due | 32,662 | 62,790 | ||||||||
Total current | 1,223,338 | 1,168,630 | ||||||||
Total recorded investment | 1,256,000 | [3] | 1,231,420 | [3] | ||||||
Loans past due 90 days or more and accruing | 20 | |||||||||
Consumer [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 9,799 | 11,204 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 2,061 | [1] | 2,465 | [2] | ||||||
Total loans past due | 11,860 | 13,669 | ||||||||
Total current | 631,086 | 656,447 | ||||||||
Total recorded investment | 642,946 | 670,116 | ||||||||
Loans past due 90 days or more and accruing | 851 | 1,059 | ||||||||
Leases [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 5 | |||||||||
Total loans past due | 5 | |||||||||
Total current | 2,204 | 2,658 | ||||||||
Total recorded investment | 2,204 | 2,663 | ||||||||
Loans past due 90 days or more and accruing | ||||||||||
Commercial, Financial And Agricultural [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 2,211 | 2,247 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 16,457 | [1] | 15,622 | [2] | ||||||
Total loans past due | 18,668 | 17,869 | ||||||||
Total current | 741,212 | 722,919 | ||||||||
Total recorded investment | 759,880 | [3] | 740,788 | [3] | ||||||
Loans past due 90 days or more and accruing | 22 | |||||||||
Construction Real Estate - Vision Commercial Land And Development [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 425 | 2,406 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 35,654 | [1] | 65,130 | [2] | ||||||
Total loans past due | 36,079 | 67,536 | ||||||||
Total current | 66,424 | 104,080 | ||||||||
Total recorded investment | 102,503 | [3] | 171,616 | [3] | ||||||
Construction Real Estate - Remaining Commercial [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 141 | |||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 17,807 | [1] | 19,687 | [2] | ||||||
Total loans past due | 17,807 | 19,828 | ||||||||
Total current | 146,140 | 176,487 | ||||||||
Total recorded investment | 163,947 | 196,315 | ||||||||
Construction Real Estate - Mortgage [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 145 | 479 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 66 | [1] | 148 | [2] | ||||||
Total loans past due | 211 | 627 | ||||||||
Total current | 19,708 | 25,794 | ||||||||
Total recorded investment | 19,919 | 26,421 | ||||||||
Construction Real Estate - Installment [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 202 | 235 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 69 | [1] | 399 | [2] | ||||||
Total loans past due | 271 | 634 | ||||||||
Total current | 14,801 | 12,547 | ||||||||
Total recorded investment | 15,072 | 13,181 | ||||||||
Loans past due 90 days or more and accruing | 13 | |||||||||
Residential Real Estate - Commercial [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 1,264 | 3,281 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 17,295 | [1] | 26,845 | [2] | ||||||
Total loans past due | 18,559 | 30,126 | ||||||||
Total current | 439,387 | 436,180 | ||||||||
Total recorded investment | 457,946 | 466,306 | ||||||||
Residential Real Estate - Mortgage [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 14,015 | 17,460 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 21,618 | [1] | 24,422 | [2] | ||||||
Total loans past due | 35,633 | 41,882 | ||||||||
Total current | 934,052 | 867,555 | ||||||||
Total recorded investment | 969,685 | 909,437 | ||||||||
Loans past due 90 days or more and accruing | 1,237 | 2,175 | ||||||||
Residential Real Estate - HELOC [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 539 | 1,396 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 673 | [1] | 667 | [2] | ||||||
Total loans past due | 1,212 | 2,063 | ||||||||
Total current | 253,208 | 259,414 | ||||||||
Total recorded investment | 254,420 | 261,477 | ||||||||
Loans past due 90 days or more and accruing | 149 | |||||||||
Residential Real Estate - Installment [Member] | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Accruing loans past due 30-89 days | 1,428 | 1,018 | ||||||||
Past due nonaccrual loans and loans past due 90 days or more and accruing | 499 | [1] | 892 | [2] | ||||||
Total loans past due | 1,927 | 1,910 | ||||||||
Total current | 49,395 | 58,540 | ||||||||
Total recorded investment | 51,322 | 60,450 | ||||||||
Loans past due 90 days or more and accruing | $ 112 | $ 277 | ||||||||
|
Sale Of Common Shares And Issuance Of Common Stock Warrants (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |
---|---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2011 | Sep. 30, 2010 | Dec. 31, 2010
Series A Common Share Warrants [Member] | Sep. 30, 2011
Series B Common Share Warrants [Member] | |
Sale Of Common Shares And Issuance Of Common Stock Warrants [Line Items] | |||||
Additional share of common stock issued | 0 | 0 | |||
Common share warrants outstanding | 227,376 | 227,376 | 227,376 | 35,992 | 35,992 |
Common share warrants exercise price | $ 76.41 | ||||
Common share warrants expiration dates | Jun. 10, 2011 | Dec. 10, 2011 |
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Allowance For Loan Losses | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Allowance For Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance For Loan Losses | Note 5 – Allowance for Loan Losses
The allowance for loan losses is that amount management believes is adequate to absorb probable incurred credit losses in the loan portfolio based on management's evaluation of various factors including overall growth in the loan portfolio, an analysis of individual loans, prior and current loss experience, and current economic conditions. A provision for loan losses is charged to operations based on management's periodic evaluation of these and other pertinent factors as discussed within Note 1 of Park's 2010 Annual Report.
The activity in the allowance for loan losses for the three and nine months ended September 30, 2011 and September 30, 2010 is summarized in the following table. As noted below, management included a reallocation of the beginning allowance for credit losses balance, which primarily impacted the commercial loan segments of the loan portfolio. At December 31, 2010, management's allowance calculation was performed in the aggregate for all commercial loans and then allocated across each segment of the commercial loan portfolio on a pro rata basis. During the first quarter of 2011, management determined that it would be more appropriate to perform the allowance calculation at the segment level and has provided an adjusted beginning balance for the allowance for credit losses in the nine months ended September 30, 2011 table below.
The activity in the allowance for loan losses for the three and nine months ended September 30, 2010 is summarized as follows:
The composition of the allowance for loan losses at September 30, 2011 and December 31, 2010 was as follows:
Loans collectively evaluated for impairment above include all performing loans at September 30, 2011 and December 31, 2010, as well as nonperforming loans internally classified as consumer loans. Nonperforming consumer loans are not typically individually evaluated for impairment, but receive a portion of the statistical allocation of the allowance for loan losses. If these consumer loans become 180 days past due, they are charged off or charged down to the appraised value of the underlying collateral, less anticipated selling costs. Loans individually evaluated for impairment include all impaired loans internally classified as commercial loans at September 30, 2011 and December 31, 2010, which are evaluated for impairment in accordance with GAAP (see Note 1 of Park's 2010 Annual Report). |
Goodwill And Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Activity In Goodwill And Core Deposit Intangibles |
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Schedule Of Core Deposit Intangibles Amortization Expense |
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Loans (Recorded Investment In Nonaccrual Restructured And Loans Past Due 90 Days Or More And Accruing) (Details) (USD $) In Thousands | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | $ 214,366 | $ 289,268 |
Accruing restructured loans | 15,563 | |
Loans past due 90 days or more and accruing | 2,222 | 3,693 |
Total nonperforming loans | 232,151 | 292,961 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 41,856 | 57,941 |
Accruing restructured loans | 2,243 | |
Loans past due 90 days or more and accruing | 20 | |
Total nonperforming loans | 44,099 | 57,961 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 1,983 | 1,911 |
Accruing restructured loans | ||
Loans past due 90 days or more and accruing | 851 | 1,059 |
Total nonperforming loans | 2,834 | 2,970 |
Leases [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | ||
Accruing restructured loans | ||
Loans past due 90 days or more and accruing | ||
Total nonperforming loans | ||
Commercial, Financial And Agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 21,844 | 19,276 |
Accruing restructured loans | 3,081 | |
Loans past due 90 days or more and accruing | 22 | |
Total nonperforming loans | 24,947 | 19,276 |
Construction Real Estate - Vision Commercial Land And Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 42,353 | 87,424 |
Accruing restructured loans | 1,249 | |
Total nonperforming loans | 43,602 | 87,424 |
Construction Real Estate - Remaining Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 29,386 | 27,080 |
Accruing restructured loans | 4,575 | |
Total nonperforming loans | 33,961 | 27,080 |
Construction Real Estate - Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 66 | 354 |
Accruing restructured loans | ||
Total nonperforming loans | 66 | 354 |
Construction Real Estate - Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 107 | 417 |
Accruing restructured loans | ||
Loans past due 90 days or more and accruing | 13 | |
Total nonperforming loans | 107 | 430 |
Residential Real Estate - Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 47,422 | 60,227 |
Accruing restructured loans | ||
Total nonperforming loans | 47,422 | 60,227 |
Residential Real Estate - Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 25,976 | 32,479 |
Accruing restructured loans | 4,393 | |
Loans past due 90 days or more and accruing | 1,237 | 2,175 |
Total nonperforming loans | 31,606 | 34,654 |
Residential Real Estate - HELOC [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 1,420 | 964 |
Accruing restructured loans | ||
Loans past due 90 days or more and accruing | 149 | |
Total nonperforming loans | 1,420 | 1,113 |
Residential Real Estate - Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual loans | 1,953 | 1,195 |
Accruing restructured loans | 22 | |
Loans past due 90 days or more and accruing | 112 | 277 |
Total nonperforming loans | $ 2,087 | $ 1,472 |
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