10-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

S	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended December 31, 2011
	OR
£	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number: 1-13006

Park National Corporation

(Exact name of Registrant as specified in its charter)

Ohio	31-1179518
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
50 North Third Street, P.O. Box 3500, Newark, Ohio	43058-3500
(Address of principal executive offices)	(Zip Code)

(740) 349-8451

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Shares, without par value	NYSE Amex LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

S Yes £ No

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

£ Yes S No

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

S Yes £ No

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

S Yes £ No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. S

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.)

Large accelerated filer S	Accelerated filer £
Non-accelerated filer £	Smaller reporting company £
(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).

£Yes S No

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the Registrant’s most recently completed second fiscal quarter: As of June 30, 2011, the aggregate market value of the Registrant’s common shares (the only common equity of the Registrant) held by non-affiliates of the Registrant was $973,488,186 based on the closing sale price as reported on NYSE Amex LLC. For this purpose, executive officers and directors of the Registrant are considered affiliates.

Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the latest practicable date.

Class	Outstanding at February 24, 2012
Common Shares, without par value	15,405,908 common shares

DOCUMENTS INCORPORATED BY REFERENCE

Document	Parts Into Which Incorporated
Portions of the Registrant’s 2011 Annual Report	Parts I and II
Portions of the Registrant’s Definitive Proxy Statement for the Annual Meeting of Shareholders to be held on April 23, 2012	Part III

Exhibit Index on Page E-1

PART I

ITEM 1. BUSINESS.

General

Park National Corporation (“Park”) is a bank holding company registered under the Bank Holding Company Act of 1956, as amended (the “Bank Holding Company Act”). Park was incorporated under Ohio law in 1992. Park’s principal executive offices are located at 50 North Third Street, Newark, Ohio 43055, and its telephone number is (740) 349-8451. Park’s common shares, each without par value (“Common Shares”), are listed on NYSE Amex LLC (“NYSE Amex”), under the symbol “PRK.”

Park maintains an Internet site which can be accessed at http://www.parknationalcorp.com. Information contained in Park’s Internet site does not constitute part of, and is not incorporated into, this Annual Report on Form 10-K. Park makes available free of charge on or through its Internet site Park’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as Park’s definitive proxy statements filed pursuant to Section 14 of the Exchange Act, as soon as reasonably practicable after Park electronically files such material with, or furnishes it to, the Securities and Exchange Commission (the “SEC”).

Park’s principal business consists of owning and supervising its subsidiaries. Although Park directs the overall policies of its subsidiaries, including lending policies and financial resources, most day-to-day affairs are managed by the respective officers of Park’s subsidiaries.

Subsidiary Banks

Throughout the fiscal year ended December 31, 2011 (“Fiscal 2011”) and until February 16, 2012, Park’s banking operations were conducted through two subsidiary banks:

· The Park National Bank (“Park National Bank”), a national banking association with its main office in Newark, Ohio and financial service offices in Ashland, Athens, Butler, Champaign, Clark, Clermont, Coshocton, Crawford, Darke, Fairfield, Fayette, Franklin, Greene, Hamilton, Hocking, Holmes, Knox, Licking, Madison, Marion, Mercer, Miami, Morrow, Muskingum, Perry, Richland, Tuscarawas and Warren Counties in Ohio and Boone County in Kentucky; and

· Vision Bank (“Vision Bank”), a Florida state-chartered bank with its main office in Panama City, Florida and financial service offices in Baldwin County, Alabama and in Bay, Gulf, Okaloosa, Santa Rosa and Walton Counties in the panhandle of Florida.

As described in more detail later in this Item 1 under the caption “Recent Developments -- Transactions Involving Vision Bank,” on February 16, 2012, Vision Bank sold substantially all of its performing loans as well as all of the deposit accounts/liabilities and real estate, leases and assets associated with Vision Bank’s financial service offices to Centennial Bank, an Alabama state-chartered bank (“Centennial Bank”). In connection with that sale, Vision Bank surrendered its bank charter to the Florida Office of Financial Regulation (the “Florida OFR”) for cancellation and requested termination of its insured status by the Federal Deposit Insurance Corporation (the “FDIC”), which termination was effective February 16, 2012. Subsequently, on February 16, 2012, Vision Bank merged into Park’s wholly-owned non-bank subsidiary SE Property Holdings, LLC. (“SE LLC”).

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Park National Bank engages in the commercial banking and trust business primarily in small and medium population Ohio communities. Prior to the consummation of the transactions described below under the caption “Recent Developments – Transactions Involving Vision Bank”, Vision Bank also had engaged in the commercial banking and trust business primarily in Gulf Coast communities in Alabama and the Florida panhandle.

Park National Bank operates 124 financial service offices in Ohio and Northern Kentucky through eleven banking divisions with: (i) the Park National Bank Division headquartered in Newark, Ohio; (ii) the Fairfield National Bank Division headquartered in Lancaster, Ohio; (iii) The Park National Bank of Southwest Ohio & Northern Kentucky Division headquartered in Cincinnati, Ohio; (iv) the Century National Bank Division headquartered in Zanesville, Ohio; (v) the Second National Bank Division headquartered in Greenville, Ohio; (vi) the Richland Bank Division headquartered in Mansfield, Ohio; (vii) the United Bank Division headquartered in Bucyrus, Ohio; (viii) the First-Knox National Bank Division headquartered in Mount Vernon, Ohio; (ix) the Farmers Bank Division headquartered in Loudonville, Ohio; (x) the Security National Bank Division headquartered in Springfield, Ohio; and (xi) the Unity National Bank Division headquartered in Piqua, Ohio.

As of February 16, 2012, Vision Bank operated 17 financial service offices in Gulf Coast communities in Baldwin County, Alabama and the Florida panhandle. Vision Bank operated through two banking divisions – Vision Bank headquartered in Panama City, Florida and the Vision Bank Division of Gulf Shores, Alabama.

During Fiscal 2011 and through February 16, 2012, Park National Bank and Vision Bank comprised Park’s reportable operating segments. All other operating segments were combined and disclosed in the “All Other” category. After February 16, 2012, the Vision Bank operating segment was replaced with a new segment, that of SE LLC. Financial information about Park’s reportable operating segments as of December 31, 2011 is included in Note 23 of the Notes to Consolidated Financial Statements in Park’s 2011 Annual Report. That financial information is incorporated herein by reference.

As of the date of this Annual Report on Form 10-K, Park National Bank operated 124 financial service offices and a network of 143 automated teller machines.

Consumer Finance Subsidiary

Guardian Financial Services Company (“Guardian Finance”), an Ohio consumer finance company based in Hilliard, Ohio, also operates as a separate subsidiary of Park. Guardian Finance provides consumer finance services in the central Ohio area. As of the date of this Annual Report on Form 10-K, Guardian Finance had six financial service offices spanning six counties in Ohio: Clark, Fairfield, Franklin, Licking, Montgomery and Richland. Financial information about Guardian Finance is included in the “All Other” category for purposes of the reportable segment information included in Note 23 of the Notes to Consolidated Financial Statements in Park’s 2011 Annual Report. This financial information was immaterial for purposes of separate disclosure.

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SE Property Holdings, LLC

During the first quarter of Fiscal 2011, Park formed a limited liability company, organized under the laws of the State of Ohio, called SE Property Holdings, LLC (“SE LLC”), as a direct subsidiary of Park. The initial purpose of SE LLC was to purchase other real estate owned (“OREO”) from Vision Bank and continue to market such properties for sale. As of December 31, 2011, approximately $29.0 million of OREO was held by SE LLC, which had been purchased from Vision Bank (at the then current fair market value) during Fiscal 2011. Management plans to continue marketing the properties held by SE LLC and sell such properties in as effective a manner as possible.

By letter dated January 30, 2012, the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) authorized Park to engage in the business of extending credit through SE LLC. As a result, SE LLC is permitted to engage in lending activities and was able to succeed to the rights and obligations of Vision Bank in respect of the loans held by Vision Bank when Vision Bank merged into SE LLC.

As of the date of this Annual Report on Form 10-K, SE LLC is considered a separate operating segment of Park. On February 16, 2012, approximately $110 million in loans ($88 million non-performing and $22 million performing) remained at Vision Bank following the transaction with Centennial. As a result of the merger of Vision Bank into SE LLC, SE LLC held total assets of approximately $168 million as February 16, 2012. As stated previously, in addition to performing loans and non-performing loans that remained at Vision Bank and were transferred to SE LLC by operation of law as a result of the merger of Vision Bank into SE LLC , SE LLC held approximately $29.0 million of OREO at December 31, 2011 and at February 16, 2012. SE LLC also had other assets of approximately $29.0 million at February 16, 2012, primarily related to cash, federal deferred tax assets and other receivables. SE LLC will have operations in Ohio, Alabama, and Florida, with the sole purpose of such operations being to sell OREO in an effective and efficient manner and work out problem loan situations with the respective borrowers.

Leasing Subsidiary

Scope Leasing, Inc. (which does business as “Scope Aircraft Finance”), a subsidiary of Park National Bank, specializes in aircraft financing. The customers of Scope Aircraft Finance include small businesses and entrepreneurs intending to use the aircraft for business or pleasure. Scope Aircraft Finance serves customers throughout the United States of America (the “United States”) and Canada.

Title Agency Subsidiary

As of the date of this Annual Report on Form 10-K, Park National Bank held 49% of the ownership interest of Park Title Agency, LLC (“Park Title Agency”). Park Title Agency is a traditional title agency serving the central Ohio area.

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Vision Bancshares Trust I

In connection with the merger of Vision Bancshares, Inc. (“Vision”) into Park in March of 2007 (the “Vision Merger”), Park entered into a First Supplemental Indenture, dated as of the effective time of the Vision Merger (the “First Supplemental Indenture”), with Vision and Wilmington Trust Company, a Delaware banking corporation, as Trustee. Under the terms of the First Supplemental Indenture, Park assumed all of the payment and performance obligations of Vision under the Junior Subordinated Indenture, dated as of December 5, 2005 (the “Indenture”), pursuant to which Vision issued $15.5 million of junior subordinated debentures to Vision Bancshares Trust I, a Delaware statutory trust (the “Vision Trust”). The junior subordinated debentures were issued by Vision in connection with the sale by the Vision Trust of $15.0 million of floating rate preferred securities to institutional investors on December 5, 2005.

Under the terms of the First Supplemental Indenture, Park also succeeded to and was substituted for Vision with the same effect as if Park had originally been named (i) as “Depositor” in the Amended and Restated Trust Agreement of the Vision Trust, dated as of December 5, 2005 (the “Trust Agreement”), among Vision, Wilmington Trust Company, as Property Trustee and as Delaware Trustee, and the Administrative Trustees named therein and (ii) as “Guarantor” in the Guarantee Agreement, dated as of December 5, 2005 (the “Guarantee Agreement”), between Vision and Wilmington Trust Company, as Guarantee Trustee. Through these contractual obligations, Park has fully and unconditionally guaranteed all of the Vision Trust’s obligations with respect to the floating rate preferred securities.

Both the junior subordinated debentures and the floating rate preferred securities mature on December 30, 2035 (which maturity may be shortened), and carry a floating interest rate per annum, reset quarterly, equal to the sum of three-month LIBOR plus 148 basis points. Payment of interest on the junior subordinated debentures, and payment of cash distributions on the floating rate preferred securities, may be deferred at any time or from time to time for a period not to exceed twenty consecutive quarters, subject to specified conditions.

Under the terms of the Indenture and the related Guarantee Agreement, Park, as successor to Vision in accordance with the First Supplemental Indenture, is prohibited, subject to limited exceptions, from declaring or paying dividends or distributions on, or redeeming, repurchasing, acquiring or making any liquidation payments with respect to, any shares of Park’s capital stock (i) if an event of default under the Indenture has occurred and continues; (ii) if Park is in default with respect to the payment of any obligations under the Guarantee Agreement; or (iii) during any period in which the payment of interest on the junior subordinated debentures by Park (and the payment of cash distributions on the floating rate preferred securities by the Vision Trust) is being deferred. The floating rate preferred securities are considered Tier 1 Capital under regulatory capital standards.

Other Subsidiaries

Park Investments, Inc., which is a subsidiary of Park National Bank, operates as an asset management company. Its operations are not significant to the consolidated entity.

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The following subsidiaries operate as capital management companies: (i) Park Capital Investments, Inc. (“Park Capital”), a subsidiary of Park; (ii) Park National Capital LLC, whose members are Park Capital and Park National Bank; (iii) First-Knox National Capital LLC, whose members are Park Capital and Park National Bank (as successor by merger to The First-Knox National Bank of Mount Vernon); (iv) Security National Capital LLC, whose members are Park Capital and Park National Bank (as successor by merger to The Security National Bank and Trust Co.); and (v) Century National Capital LLC, whose members are Park Capital and Park National Bank (as successor by merger to Century National Bank). The operations of these subsidiaries are also not significant to the consolidated entity.

Recent Developments

Formation of SE Property Holdings, LLC

During the first quarter of Fiscal 2011, Park formed SE LLC. Please see the description of SE LLC in the section of this Item 1 captioned “General -- SE Property Holdings.”

Transactions Involving Vision Bank

Purchase and Assumption Agreement with Centennial Bank

On November 16, 2011, Park and Vision Bank entered into a Purchase and Assumption Agreement (as amended by the First Amendment to Purchase and Assumption Agreement, dated as of January 25, 2012, the “Centennial Bank P&A Agreement”) with Home BancShares, Inc., an Arkansas corporation (“Home”), and its wholly-owned subsidiary, Centennial Bank, to sell substantially all of the operating assets and liabilities associated with Vision Bank to Centennial Bank for a purchase price of $27.9 million.

On February 16, 2012, the parties closed the transactions contemplated by the Centennial Bank P&A Agreement. Centennial Bank purchased the real estate and fixed assets used in and/or related to the business conducted at the 17 Vision Bank financial service offices. In addition, Centennial Bank acquired the safe deposit business conducted at the Vision Bank financial service offices, cash on hand, prepaid expenses and Vision Bank’s rights under contracts related to the Vision Bank financial service offices.

Centennial Bank also purchased performing loans with an aggregate unpaid principal balance of $354 million as of February 16, 2012. These loans were sold at an aggregate discount of $13.1 million. Centennial Bank also has a put option whereby it will be entitled to put back to Vision Bank (or its successor) up to $7.5 million in the aggregate of purchased loans for a period of up to six months after the closing date.

Centennial Bank also assumed: (i) Vision Bank’s obligations related to approximately $520 million of deposit accounts/liabilities at the 17 financial service offices; and (ii) the liabilities and obligations of Vision Bank with respect to the safe deposit business, the assumed contracts, third-party leases for the real estate leased by Vision Bank and equipment and operating leases related to the 17 Vision Bank financial service offices.

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In conjunction with the transactions contemplated by the Centennial Bank P&A Agreement and as permitted by 12 C.F.R. § 327.12(f), Vision Bank transferred to Centennial Bank the $3.4 million balance of the prepaid assessment paid by Vision Bank to the FDIC.

Following the closing, Vision Bank retained non-performing loans, which had an aggregate book balance, as of February 16, 2012, of $88 million and performing loans, which had a book balance, as of February 16, 2012, of $22 million, which loans Centennial Bank had determined not to purchase as a result of its credit due diligence.

Sale of Loans by Vision Bank to Park National Bank

Pursuant to a Loan Sale and Purchase Agreement, dated as of December 27, 2011, with Park National Bank, on December 28, 2011, Vision Bank sold to Park National Bank performing loans which had an aggregate book balance of $7.6 million as of December 28. 2011.

Resignation of Vision Bank as Trustee and Surrender of Trust Powers by Vision Bank

In connection with the transactions contemplated by the Centennial Bank P&A Agreement, Vision Bank resigned as trustee under each of the 42 trust relationships as to which Vision Bank then exercised fiduciary or trust powers and surrendered the fiduciary/trust powers granted to Vision Bank by the Florida OFR. Park National Bank was appointed to serve as successor trustee under 27 of these trust relationships, Centennial was appointed to serve as successor trustee under six of these trust relationships and nine trust relationships were either closed or transferred to a different fiduciary besides Park National Bank or Centennial.

Surrender of Bank Charter by Vision Bank and Termination of FDIC Insured Status

After the consummation of the transactions contemplated by the Centennial Bank P&A Agreement, Vision Bank no longer carried on a banking business, held no deposit accounts/liabilities and had no offices; and, as a result, on February 16, 2012, Vision Bank surrendered its bank charter to the Florida OFR for cancellation as required by applicable Florida banking regulations and became a Florida corporation without any authority to conduct a banking business. In addition, Vision Bank requested termination of its insured status by the FDIC, which termination was effective February 16, 2012.

Merger of Vision Bank into SE Property Holdings

Following the consummation of the transactions contemplated by the Centennial Bank P&A Agreement, the surrender by Vision Bank of the fiduciary/trust powers granted to Vision Bank by the Florida OFR, the surrender by Vision Bank of its bank charter to the Florida OFR and the termination of Vision Bank’s insured status by the FDIC, on February 16, 2012, Vision Bank merged with and into SE LLC (the “Vision Bank – SE LLC Merger”) pursuant to an Agreement and Plan of Merger, dated as of January 25, 2012. SE LLC was the surviving entity in the merger and the separate existence of Vision Bank ceased.

As a result of the Vision Bank – SE LLC Merger, title to all of the assets and other property, and any interests therein, owned by Vision Bank transferred to SE LLC by operation of law. SE LLC became responsible for all of the liabilities and obligations of Vision Bank, also by operation of law.

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As of December 31, 2011, Park reported the following within assets held for sale and liabilities held for sale on Park’s Consolidated Balance Sheet in anticipation of the closing of the transactions contemplated by the Centennial Bank P&A Agreement. Further information about these assets and liabilities is included in Note 3 of the Notes to the Consolidated Financial Statements in Park’s 2011 Annual Report.

Assets held for sale	2011
Cash and due from banks	$	6,766
Loans		369,044
Allowance for loan losses (purchase discount)		(13,100	)
Net loans		355,944
Fixed assets		14,861
Other assets		4,891
Total assets held for sale	$	382,462
Liabilities held for sale		2011
Deposits	$	532,598
Other liabilities		3,588
Total liabilities held for sale	$	536,186

The above is included for reference for SE LLC and Vision Bank commentary within this Annual Report on Form 10-K.

Services Provided by Park’s Subsidiaries

Park National Bank and its divisions provide, and prior to February 16, 2012, Vision Bank and its divisions provided, the following principal services:

· the acceptance of deposits for demand, savings and time accounts and the servicing of those accounts;

· commercial, industrial, consumer and real estate lending, including installment loans, credit cards (which, except for home-equity-based credit cards, are offered through a third party), home equity lines of credit and commercial leasing;

· trust and wealth management services;

· cash management;

· safe deposit operations;

· electronic funds transfers;

· online Internet banking with bill pay service; and

· a variety of additional banking-related services tailored to the needs of individual customers.

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Park believes that the deposit mix of Park National Bank and its divisions is currently such that no material portion has been obtained from a single customer and, consequently, the loss of any one customer of Park National Bank (or its divisions) would not have a materially adverse effect on the business of Park National Bank (or the relevant division).

Guardian Finance also provides consumer finance services.

Lending Activities

Park National Bank deals with consumers as well as with a wide cross-section of businesses and corporations located primarily in the 28 Ohio counties and one Kentucky county served by the financial service offices of Park National Bank. Relatively few loans are made to borrowers outside these counties. As a result of the Vision Bank – SE LLC Merger, SE LLC holds loans originated by Vision Bank located in the five Florida counties and one Alabama county previously serviced by the financial service offices of Vision Bank. It is expected that SE LLC will originate loans only to further the collection efforts with respect to the loans transferred to SE LLC by operation of law as a result of the Vision Bank - SE LLC Merger. Such origination (or modification) volume is expected to be insignificant to the consolidated Park entity.

Park National Bank makes lending decisions in accordance with the written loan policy adopted by Park which is designed to maintain acceptable loan quality. Park National Bank originates and retains for its own portfolio commercial and commercial real estate loans, variable rate residential real estate loans, home equity lines of credit, and installment loans. Park National Bank also generates fixed rate residential real estate loans for sale to the secondary market.

Guardian Finance originates and retains for its own portfolio consumer installment loans. Guardian Finance makes lending decisions in accordance with the written loan policy adopted and approved by the Guardian Finance Board of Directors.

There are certain risks inherent in making loans. These risks include interest rate changes over the time period in which the loans may be repaid, risks resulting from changes in the national and local economies, risks inherent in dealing with borrowers and, in the case of loans secured by collateral, risks resulting from uncertainties about the future value of the collateral.

Commercial Loans

At December 31, 2011, Park’s subsidiaries (including Scope Aircraft Finance) had approximately $1,854 million in commercial loans (commercial, financial and agricultural loans and commercial real estate loans) and commercial leases outstanding, representing approximately 43% of their total aggregate loan portfolio as of that date. Of this amount, approximately $744 million represented commercial, financial and agricultural loans, $1,108 million represented commercial real estate loans and $2 million represented commercial leases.

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Vision Bank had approximately $42 million in commercial loans outstanding at December 31, 2011, representing approximately 34.2% of Vision Bank’s aggregate loan portfolio at that date, which were not included within assets held for sale. Of this amount, approximately $20 million represented commercial, financial and agricultural loans and approximately $22 million represented commercial real estate loans.

Included within assets held for sale at December 31, 2011, there were approximately $156 million of Vision Bank commercial loans (commercial, financial, and agricultural loans and commercial real estate loans). These were purchased by Centennial Bank pursuant to the Centennial Bank P&A Agreement.

Commercial loans are made for a wide variety of general corporate purposes, including financing for industrial and commercial properties, financing for equipment, inventories and accounts receivable, acquisition financing and commercial leasing. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. Information concerning the loan maturity distribution within the commercial loan portfolio is provided in Table 13 included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” and is incorporated herein by reference.

The commercial loan portfolio of Park’s current subsidiaries includes loans to a wide variety of corporations and businesses across many industrial classifications in (i) the 28 Ohio counties and one Kentucky county where Park National Bank operates and (ii) the five Florida counties and one Alabama county where Vision Bank operated. The primary industries represented by these customers include commercial real estate leasing, manufacturing, retail trade, health care and other services.

Commercial loans are evaluated for the adequacy of repayment sources at the time of approval and are regularly reviewed for any possible deterioration in the ability of the borrower to repay the loan. The credit information required generally includes, depending on the amount of money lent, fully completed financial statements, third-party prepared financial statements, two years of federal income tax returns and a current credit report. Loan terms include amortization schedules commensurate with the purpose of each loan, the source of each repayment and the risk involved. In most instances, collateral is required to provide an additional source of repayment in the event of default by a commercial borrower. The structure of the collateral package, including the type and amount of the collateral, varies from loan to loan depending on the financial strength of the borrower, the amount and terms of the loan and the collateral available to be pledged by the borrower. Most often, the collateral is inventory, machinery, accounts receivable or real estate. The guarantee of the principals is generally required on loans made to closely-held business entities.

Commercial real estate loans (“CRE loans”) include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate. Park National Bank generally requires that the CRE loan amount be no more than 85% of the purchase price or the appraised value of the commercial real estate securing the CRE loan, whichever is less. CRE loans made for Park National Bank’s portfolio generally have a variable interest rate. For more information concerning the loan maturity distribution in the CRE loan portfolio, please see Table 13 included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” which is incorporated herein by reference.

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The regulatory limit for loans made to one borrower by Park National Bank was $78.2 million at December 31, 2011. Participations in a loan by Park National Bank in an amount larger than $20.0 million are generally sold to third-party banks or financial institutions based on an internal Park loan policy. While Park National Bank has a loan limit of $78.2 million, total indebtedness of the largest single borrower within the commercial portfolio was $23.8 million at December 31, 2011.

Park has a loan review program which annually evaluates substantially all (generally, about 90%) of the loans with an outstanding balance greater than $250,000. Since February 16, 2012, loans held by SE LLC have been included within the scope of Park’s loan review program. If deterioration has occurred, the lending subsidiary takes prompt action designed to increase the likelihood of payment of the loan. Upon detection of the reduced ability of a borrower to service interest and/or principal on a loan, the subsidiary may downgrade the loan and, under certain circumstances, place the loan on nonaccrual status. The subsidiary then works with the borrower to develop a payment schedule which the subsidiary anticipates will permit service of the principal and interest on the loan by the borrower. Loans which deteriorate and show the inability of a borrower to repay principal and do not meet the subsidiary’s standards are charged off. A work-out officer is available to assist each subsidiary when a credit deteriorates. Information about Park’s policy for placing loans on nonaccrual status is included under the caption “Loans” in Note 1 of the Notes to Consolidated Financial Statements in Park’s 2011 Annual Report, and is incorporated herein by reference.

Commercial loans are generally viewed as having a higher credit risk than consumer loans because commercial loans usually involve larger loan balances to a single borrower and are more susceptible to a risk of default during an economic downturn. Commercial loans generally have variable interest rates. The Park pricing strategy generally does not include low introductory or “teaser” rates. Park uses several indices for commercial loans. However, the national prime rate is the most common index Park uses. Credit risk for commercial loans arises from borrowers lacking the ability or willingness to pay principal or interest and, in the case of secured loans, by a shortfall in the collateral value in relation to the outstanding loan balance in the event of a default and subsequent liquidation of collateral. The underwriting of all commercial loans, regardless of type, includes cash flow analyses with rates shocked 400 basis points. In the case of commercial loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of each borrower to collect amounts due from its customers. Other collateral securing commercial loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the borrower’s business. Information concerning the loan loss experience and allowance for loan losses related to the commercial, financial and agricultural loan portfolio and the commercial real estate portfolio is provided in Tables 25 and 26 included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” and is incorporated herein by reference.

Aircraft Financing

Scope Aircraft Finance specializes in aircraft financing. The customers of Scope Aircraft Finance include small businesses and entrepreneurs intending to use the aircraft for business or pleasure. The customers of Scope Aircraft Finance are located throughout the United States. The lending officers of Scope Aircraft Finance are experienced in the aircraft financing industry and rely upon that experience and industry guides in determining whether to grant an aircraft loan or lease. At December 31, 2011, Scope Aircraft Finance had outstanding approximately $168 million in loans primarily secured by aircraft (which are included in the commercial loan portfolio).

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Consumer Loans

At December 31, 2011, Park’s subsidiary banks, together with Guardian Finance, had outstanding consumer loans (including automobile leases and home-equity-based credit cards) in an aggregate amount of approximately $617 million, constituting approximately 14.3% of their aggregate total loan portfolio. These subsidiaries make installment credit available to customers and prospective customers in their primary market areas of (i) central and southern Ohio and Northern Kentucky for Park National Bank and (ii) prior to February 16, 2012 the Gulf Coast communities in Baldwin County, Alabama and the Florida panhandle for Vision Bank. Assets held for sale at December 31, 2011 included approximately $4.0 million of consumer loans from Vision Bank, which were sold to Centennial Bank pursuant to the Centennial Bank P&A Agreement.

Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. It is the policy of Park’s subsidiaries to adhere strictly to all laws and regulations governing consumer lending. A compliance officer is responsible for monitoring each subsidiary’s performance and advising and updating loan personnel in this area. Each subsidiary reviews its consumer loan portfolio monthly and charges off loans which do not meet Park’s standards. Information about Park’s policy for placing loans on nonaccrual status is included under the caption “Loans” in Note 1 of the Notes to Consolidated Financial Statements in Park’s 2011 Annual Report, and is incorporated herein by reference. Park National Bank and its divisions (other than The Park National Bank of Southwest Ohio & Northern Kentucky division of Park National Bank) also offer home-equity-based credit card accounts through the consumer lending department. These accounts are administered under the same standards as other consumer loans and leases.

Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount that can be recovered on these loans. Information concerning the loan loss experience and allowance for loan losses related to the consumer loan portfolio is provided in Tables 25 and 26 included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” and is incorporated herein by reference.

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Residential Real Estate and Construction Loans

At December 31, 2011, Park’s subsidiary banks had outstanding approximately $1,846 million in construction real estate and residential real estate, representing approximately 42.9% of total loans outstanding. Of the $1,846 million, approximately $1,629 million was included within the residential real estate loan segment, which included $396 million of commercial loans, $954 million of mortgage loans, $228 million of home equity lines of credit and $51 million of installment loans. The remaining $217 million was included within the construction real estate loan segment, which included $188 million of commercial land and development (“CL&D”) loans and $29 million of 1-4 family residential construction loans. The market area for real estate lending by Park National Bank is concentrated in central and southern Ohio and Northern Kentucky. The market area for real estate lending by Vision Bank was concentrated in the Gulf Coast communities in Baldwin County, Alabama and the Florida panhandle. Park had approximately $62.7 million of net charge-offs resulting from construction loans ($4.3 million related to 1-4 family residential construction loans and $58.4 million related to CL&D loans) during Fiscal 2011. Vision Bank accounted for approximately $46.4 million ($3.9 million related to 1-4 family residential construction loans and $42.5 million related to CL&D loans), or 74%, of this total. At December 31, 2011, Vision Bank had approximately $33.6 million outstanding in construction loans ($2 million of 1-4 family residential construction loans and $31.6 million of CL&D loans), or 15.4% of Park’s consolidated total at the end of Fiscal 2011. In addition to construction loans, Vision Bank had approximately $1.8 million of home equity lines of credit. None of these Vision Bank loans were included within assets held for sale as of December 31, 2011.

Excluded from amounts disclosed above, but included within assets held for sale at December 31, 2011 were approximately $210.0 million in construction real estate and residential real estate loans at Vision Bank, which were sold to Centennial Bank pursuant to the Centennial Bank P&A Agreement.

Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and the appropriate appraised value of the real estate securing the loan. All loans are sent through automated underwriting to determine a risk classification. All loans receiving a risk classification of caution require review by a senior lender and generally require additional documentation if the loan is approved.

Park National Bank generally requires, and Vision Bank generally required, that the residential real estate loan amount be no more than 80% of the purchase price or the appraised value of the real estate securing the loan, whichever is less, unless private mortgage insurance is obtained by the borrower. Loans in this lending category which are made to be held in the bank’s portfolio are generally adjustable rate, fully amortized mortgages. The rates used are generally fully-indexed rates. Park generally does not price residential loans using low introductory “teaser” rates. Park National Bank also originates fixed rate real estate loans for the secondary market. These loans are generally sold immediately after closing. However, beginning in 2010, Park’s management made a decision to retain 15-year fixed-rate residential mortgage loans, which previously would have been sold in the secondary market. At December 31, 2011 and 2010, Park reported $329 million and $176 million, respectively, of these loans on the Consolidated Balance Sheets. All real estate loans are secured by first mortgages with evidence of title in favor of the lender in the form of an attorney’s opinion of title or a title insurance policy. Each of Park National Bank and Vision Bank has also required proof of hazard insurance with lender named as the mortgagee and as the loss payee. Independent appraisals are generally obtained for consumer real estate loans.

Home equity lines of credit are generally made as second mortgages by Park National Bank. The maximum amount of a home equity line of credit is generally limited to 85% of the appraised value of the property less the balance of the first mortgage. The home equity lines of credit are written with ten-year terms. A variable interest rate is generally charged on the home equity lines of credit.

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Vision Bank also made home equity lines of credit available in the form of second mortgages. The maximum amount of a Vision Bank home equity line of credit could be as high as 89.9% of the appraised value of the property less the balance of the first mortgage, depending on the credit score and debt-to-income ratio of the borrower. The home equity lines of credit written by Vision Bank generally had 25-year terms and a variable interest rate.

Information concerning the loan loss experience and allowance for loan losses related to the residential real estate portfolio is provided in Tables 25 and 26 included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” and is incorporated herein by reference.

Construction loans include commercial construction loans as well as residential construction loans. Construction loans may be in the form of a permanent loan or a short-term construction loan, depending on the needs of the individual borrower. Generally, the permanent construction loans have a variable interest rate although a permanent construction loan may be made with a fixed interest rate for a term generally not exceeding five years. Short-term construction loans are made with variable interest rates. Information concerning the loan maturity distribution within the construction financing portfolio is provided in Table 13 included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” and is incorporated herein by reference.

Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, the subsidiary holding the loan may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, the subsidiary holding the loan may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event a default on a construction loan occurs and foreclosure follows, the subsidiary holding the loan must take control of the project and attempt either to arrange for completion of construction or to dispose of the unfinished project. Additional risk exists with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. Park National Bank attempts, and Vision Bank attempted, to reduce such risks on loans to developers by requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer. For additional information concerning the loan loss experience, please see “ITEM 1A. RISK FACTORS – Changes in economic and political conditions could adversely affect our earnings, as our borrowers’ ability to repay loans and the value of the collateral securing our loans decline.” and “– Our allowance for loan losses may prove to be insufficient to absorb potential losses in our loan portfolio.” in this Annual Report on Form 10-K. Information concerning the loan loss experience and allowance for loan losses related to the construction financing portfolio is provided in Tables 25 and 26 included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” and is incorporated herein by reference.

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SE Property Holdings, LLC

SE LLC is a non-bank subsidiary of Park, holding OREO property, non-performing loans and small number of performing loans. The loans are of higher risk as they are either on nonaccrual status or are accruing, but may have been classified by Park management. In addition to approximately $29 million in OREO property, SE LLC also held approximately $110 million in loans as of February 16, 2012 following the Vision Bank - SE LLC Merger. SE LLC has its main office in Licking County, Ohio, one office in Alabama (Baldwin County) and one office in Florida (Bay County). The employees of these offices are dedicated solely to working with a third-party work-out specialist to ensure effective and efficient resolution to the non-performing loans and OREO, while working closely with the borrowers of the performing loans to maximize collection efforts. It is expected that the loans and OREO will reduce over time and result in cash in-flow to Park in the future.

Title Agency

Park Title Agency is a traditional title agency serving residential and commercial customers in the central Ohio area who are seeking title insurance for purchases, construction and refinancing of real estate. Park Title Agency’s customers include current customers of Park National Bank and other residents primarily in the 28 Ohio counties and one Kentucky County served by Park National Bank.

Competition

The financial services industry is highly competitive. Park’s subsidiaries compete with other local, regional and national service providers, including banks, savings associations, credit unions and other types of financial institutions, finance companies, insurance agencies and title agencies. Other competitors include securities dealers, brokers, mortgage bankers, investment advisors, insurance companies and financial services subsidiaries of commercial and manufacturing companies. Competition within the financial service industry continues to increase as a result of mergers between, and expansion of, financial service providers within and outside Park’s primary market area.

The primary factors in competing for loans are interest rates charged and overall services provided to borrowers. The primary factors in competing for deposits are interest rates paid on deposits, account liquidity, convenience and hours of office locations and having trained and competent staff to deliver services. However, some competitors of Park’s subsidiaries may have greater resources and, as such, higher lending limits, which may adversely affect the ability of Park’s subsidiaries to compete. In addition, some of the financial service providers with which Park’s subsidiaries compete enjoy the benefits of fewer regulatory constraints and lower cost structures.

Employees

At December 31, 2011, Park and its subsidiaries had 1,920 full-time equivalent employees. Of this number, 184 were employees of Vision Bank. Centennial Bank hired 116 employees that were previously employees of Vision Bank as of December 31, 2011. As of the date of this Annual Report on Form 10-K, SE LLC has 37 employees, all of which were formerly employees of Vision Bank at December 31, 2011. These employees will assist in transitional operations until such time that core operating systems have been converted, after which time, the services of most of them will be terminated by SE LLC.

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Supervision and Regulation of Park and its Subsidiaries

Park, Park National Bank and many of Park’s other subsidiaries are subject to extensive regulation by federal and state agencies. The regulation of bank holding companies and their subsidiaries is intended primarily for the protection of consumers, depositors, borrowers, the FDIC’s Deposit Insurance Fund and the banking system as a whole and not for the protection of shareholders. Applicable laws and regulations restrict permissible activities and investments and require actions to protect loan, deposit, brokerage, fiduciary and other customers, as well as the FDIC’s Deposit Insurance Fund. They also may restrict Park’s ability to repurchase its Common Shares or to receive dividends from Park National Bank and impose capital adequacy and liquidity requirements.

Park is registered with the Federal Reserve Board as a bank holding company under the Bank Holding Company Act. As a bank holding company, Park is subject to regulation under the Bank Holding Company Act and to inspection, examination and supervision by the Federal Reserve Board. Park is also subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended (the “Securities Act”), and the Exchange Act, as administered by the SEC. Park’s Common Shares are listed on NYSE Amex under the trading symbol “PRK,” which subjects Park to the NYSE Amex Company Guide for listed companies. As a result of Park’s participation in the U.S. Treasury’s Capital Purchase Program enacted as part of the Troubled Assets Relief Program (“TARP”) under the Emergency Economic Stabilization Act of 2008 (“EESA”), Park is also subject to the regulatory authority granted to the United States Department of the Treasury (the “U.S. Treasury”) and the Special Inspector General for TARP under EESA and the American Recovery and Reinvestment Act of 2009 (“ARRA”), as discussed below under the caption “Capital Purchase Program.”

Park National Bank, as a national banking association, is subject to regulation, supervision and examination primarily by the Office of the Comptroller of the Company (the “OCC”) and secondarily by the FDIC.

Guardian Finance, as an Ohio state-chartered consumer finance company, is subject to regulation, supervision and examination by the Ohio Division of Financial Institutions.

As a subsidiary of Park, SE LLC is subject to inspection, examination and supervision by the Federal Reserve Board.

Park Title Agency, as an Ohio state-chartered title agency, is subject to regulation, supervision and examination by the Ohio Department of Insurance.

The following information describes selected federal and state statutory and regulatory provisions and is qualified in its entirety by reference to the full text of the particular statutory or regulatory provisions. These statutes and regulations are continually under review by the United States Congress and state legislatures and federal and state regulatory agencies. A change in statutes, regulations or regulatory policies applicable to Park and its subsidiaries could have a material effect on their respective businesses.

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Regulation of Bank Holding Companies

As a bank holding company, Park’s activities are subject to extensive regulation by the Federal Reserve Board. Park is required to file reports with the Federal Reserve Board and such additional information as the Federal Reserve Board may require, and is subject to regular examinations by the Federal Reserve Board.

The Federal Reserve Board also has extensive enforcement authority over bank holding companies, including, among other things, the ability to:

· assess civil money penalties;

· issue cease and desist or removal orders; and

· require that a bank holding company divest subsidiaries (including a subsidiary bank).

In general, the Federal Reserve Board may initiate enforcement actions for violations of laws and regulations and unsafe or unsound practices.

Under Federal Reserve Board policy, a bank holding company is expected to act as a source of financial strength to each subsidiary bank and to commit resources to support such subsidiary bank. Under this policy, the Federal Reserve Board may require a bank holding company to contribute additional capital to an undercapitalized subsidiary bank and may disapprove of the payment of dividends to the shareholders if the Federal Reserve Board believes the payment of such dividends would be an unsafe or unsound practice.

The Bank Holding Company Act requires the prior approval of the Federal Reserve Board in any case where a bank holding company proposes to:

· acquire direct or indirect ownership or control of more than 5% of the voting shares of any bank that is not already majority-owned by it;

· acquire all or substantially all of the assets of another bank or another financial or bank holding company; or

· merge or consolidate with any other financial or bank holding company.

The Gramm-Leach-Bliley Act of 1999 (“GLBA”) permits a qualifying bank holding company to become a financial holding company and thereby affiliate with securities firms and insurance companies and engage in other activities that are financial in nature and not otherwise permissible for a bank holding company. Although Park was a financial holding company effective in December 2007, Park ceased to be a financial holding company effective June 30, 2008, and neither Park nor any of its subsidiaries engage in any of the activities permitted for a financial holding company but not a bank holding company.

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Each subsidiary bank of a bank holding company is subject to certain restrictions imposed by the Federal Reserve Act on the maintenance of reserves against deposits, extensions of credit to the bank holding company or any of its subsidiaries, investments in the stock or other securities of the bank holding company or its subsidiaries and the taking of such stock or securities as collateral for loans to any borrower. Further, a bank holding company and its subsidiaries are prohibited from engaging in certain tying arrangements in connection with any extension of credit, lease or sale of property or furnishing of any services. Various consumer laws and regulations also affect the operations of these subsidiaries.

Transactions with Affiliates, Directors, Executive Officers and Shareholders

Sections 23A and 23B of the Federal Reserve Act and Federal Reserve Board Regulation W generally:

· limit the extent to which a bank or its subsidiaries may engage in “covered transactions” with any one affiliate;

· limit the extent to which a bank or its subsidiaries may engage in “covered transactions” with all affiliates; and

· require that all such transactions be on terms substantially the same, or at least as favorable to the bank or subsidiary, as those provided to a non-affiliate.

An affiliate of a bank is any company or entity which controls, is controlled by or is under common control with the bank. The term “covered transaction” includes the making of loans to the affiliate, the purchase of assets from the affiliate, the issuance of a guarantee on behalf of the affiliate, the purchase of securities issued by the affiliate and other similar types of transactions.

A bank’s authority to extend credit to executive officers, directors and greater than 10% shareholders, as well as entities such persons control, is subject to Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O promulgated thereunder by the Federal Reserve Board. Among other things, these loans must be made on terms (including interest rates charged and collateral required) substantially the same as those offered to unaffiliated individuals or be made as part of a benefit or compensation program and on terms widely available to employees, and must not involve a greater than normal risk of repayment. In addition, the amount of loans a bank may make to these persons is based, in part, on the bank’s capital position, and specified approval procedures must be followed in making loans which exceed specified amounts.

Regulation of Nationally-Chartered Banks

As a national banking association, Park National Bank is subject to regulation under the National Banking Act and is periodically examined by the OCC. OCC regulations govern permissible activities, capital requirements, dividend limitations, investments, loans and other matters. Furthermore, Park National Bank is subject, as a member bank, to certain rules and regulations of the Federal Reserve Board, many of which restrict activities and prescribe documentation to protect consumers. Park National Bank is an insured depository institution as a member of the Deposit Insurance Fund. As a result, it is subject to regulation and deposit insurance assessments by the FDIC. In addition, the establishment of branches by Park National Bank is subject to prior approval of the OCC. The OCC has broad enforcement powers over national banks, including the power to impose fines and other civil and criminal penalties and to appoint a conservator or receiver if any of a number of conditions are met.

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Regulation of Consumer Finance Companies

As a consumer finance company incorporated under Ohio law, Guardian Finance is subject to regulation and supervision by the Ohio Division of Financial Institutions. Division regulation and supervision designed to protect consumers affect the lending activities of Guardian Finance, including interest rates and certain loan terms, advertising and record retention. If grounds provided by law exist, the Ohio Division of Financial Institutions may suspend or revoke an Ohio consumer finance company’s ability to make loans.

Federal Deposit Insurance Corporation

The FDIC is an independent federal agency which insures the deposits, up to prescribed statutory limits, of federally-insured banks and savings associations and safeguards the safety and soundness of the financial institution industry.

Insurance Premiums

Insurance premiums for each insured depository institution are determined based upon the institution’s capital level and supervisory rating provided to the FDIC by the institution’s primary federal regulator and other information the FDIC determines to be relevant to the risk posed to the Deposit Insurance Fund by the institution. The assessment rate determined by considering such information is then applied to the amount of the institution’s average assets minus average tangible equity to determine the institution’s insurance premium. An increase in the assessment rate could have a material adverse effect on the earnings of the affected institution(s), depending on the amount of the increase.

Insurance of deposits may be terminated by the FDIC upon a finding that the insured depository institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition enacted or imposed by the institution’s regulatory agency.

Federal Home Loan Bank

The Federal Home Loan Banks (“FHLBs”) provide credit to their members in the form of advances. Park National Bank is a member of the FHLB of Cincinnati. Prior to February 17, 2012, Vision Bank was a member of the FHLB of Atlanta. As FHLB members, Park National Bank and Vision Bank must maintain an investment in the capital stock of their respective FHLBs. Effective February 16, 2012, Vision Bank’s investment in the capital stock of the FHLB of Atlanta was transferred to SE LLC.

Upon the origination or renewal of a loan or advance, each FHLB is required by law to obtain and maintain a security interest in certain types of collateral. Each FHLB is required to establish standards of community investment or service that its members must maintain for continued access to long-term advances from the FHLB. The standards take into account a member’s performance under the Community Reinvestment Act and the member’s record of lending to first-time home buyers.

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Regulatory Capital

The Federal Reserve Board has adopted risk-based capital guidelines for bank holding companies and state member banks. The OCC and the FDIC have adopted risk-based capital guidelines for national banks and state non-member banks, respectively. The guidelines provide a systematic analytical framework which makes regulatory capital requirements sensitive to differences in risk profiles among banking organizations, takes off-balance sheet exposures expressly into account in evaluating capital adequacy, and minimizes disincentives to holding liquid, low-risk assets. Capital levels as measured by these standards are also used to categorize financial institutions for purposes of certain prompt corrective action regulatory provisions.

The minimum guideline for the ratio of total capital to risk-weighted assets (including certain off-balance sheet items such as standby letters of credit) is 8%. At least half of the minimum total risk-based capital ratio (4%) must be composed of common shareholders’ equity, minority interests in certain equity accounts of consolidated subsidiaries and a limited amount of qualifying preferred stock and qualified trust preferred securities, less goodwill and certain other intangible assets, including the unrealized net gains and losses, after applicable taxes, on available-for-sale securities carried at fair value (commonly known as “Tier 1” risk-based capital). The remainder of total risk-based capital (commonly known as “Tier 2” risk-based capital) may consist of certain types and amounts of each of hybrid capital instruments, mandatory convertible debt, subordinated debt, preferred stock not qualifying as Tier 1 capital, allowance for loan losses and net unrealized gains on available-for-sale equity securities.

Under the guidelines, capital is compared to the relative risk related to the balance sheet. To derive the risk included in the balance sheet, one of four risk weights (0%, 20%, 50% and 100%) is applied to different balance sheet and off-balance sheet assets, primarily based on the relative credit risk of the counterparty. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The Federal Reserve Board has established minimum leverage ratio guidelines for bank holding companies. The Federal Reserve Board guidelines provide for a minimum ratio of Tier 1 capital to average assets (excluding the allowance for loan losses, goodwill and certain other intangibles), or “leverage ratio,” of 3% for bank holding companies that meet certain criteria, including having the highest regulatory rating, and 4% for all other bank holding companies. The guidelines further provide that bank holding companies making acquisitions will be expected to maintain strong capital positions substantially above the minimum levels. The OCC and the FDIC have each also adopted minimum leverage ratio guidelines for national banks and for state non-member banks, respectively.

The federal banking agencies have established a system of prompt corrective action to resolve certain of the problems of undercapitalized institutions. This system is based on five capital level categories for insured depository institutions: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized.”

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The federal banking agencies may (or in some cases must) take certain supervisory actions depending upon a bank’s capital level. For example, the banking agencies must appoint a receiver or conservator for a bank within 90 days after it becomes “critically undercapitalized” unless the bank’s primary regulator determines, with the concurrence of the FDIC, that other action would better achieve regulatory purposes. Banking operations otherwise may be significantly affected depending on a bank’s capital category. For example, a bank that is not “well capitalized” generally is prohibited from accepting brokered deposits and offering interest rates on deposits higher than the prevailing rate in its market, and the holding company of any undercapitalized depository institution must guarantee, in part, specific aspects of the bank’s capital plan for the plan to be acceptable.

In order to be “well-capitalized,” a bank or bank holding company must have total risk-based capital of at least 10%, Tier 1 risk-based capital of at least 6% and a leverage ratio of at least 5%, and the bank or bank holding company must not be subject to any written agreement, order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. Park’s management believes that both Park National Bank and Park meet, and prior to February 17, 2012, Vision Bank met, the ratio requirements to be deemed “well-capitalized” according to the guidelines described above. See Note 22 of the Notes to Consolidated Financial Statements located on page 88 of Park’s 2011 Annual Report, which is incorporated herein by reference.

The risk-based capital guidelines adopted by the federal banking agencies are based on the “International Convergence of Capital Measurement and Capital Standards” (Basel I), published by the Basel Committee on Banking Supervision (the “Basel Committee”) in 1988. In 2004, the Basel Committee published a new capital adequacy framework (Basel II) for large, internationally active banking organizations and in December 2010 and January 2011, the Basel Committee issued an update to Basel II (“Basel III”). The Basel Committee frameworks become applicable to banks supervised in the United States only when adopted into United States law or regulation. The United States banking regulators have not yet imposed any of the Basel II or Basel III rules on banks with less than $250 billion in assets or $10 billion of on-balance sheet foreign exposure. It is likely, however, that the Basel Committee provisions will be considered by the United States banking regulators in developing capital regulations that will apply to other United States banks, including Park National Bank.

Fiscal and Monetary Policies

The business and earnings of Park and its subsidiaries are affected significantly by the fiscal and monetary policies of the United States government and its agencies. Park National Bank is particularly affected by the policies of the Federal Reserve Board, which regulates the supply of money and credit in the United States. These policies are used in varying degrees and combinations to directly affect the availability of bank loans and deposits, as well as the interest rates charged on loans and paid on deposits.

Limits on Dividends and Other Payments

There are various legal limitations on the extent to which a subsidiary bank may finance or otherwise supply funds to its parent holding company. Under applicable federal and state laws, a subsidiary bank may not, subject to certain limited exceptions, make loans or extensions of credit to, or investments in the securities of, its bank holding company. A subsidiary bank is also subject to collateral security requirements for any loan or extension of credit permitted by such exceptions.

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Park National Bank may not pay dividends out of its surplus if, after paying these dividends, it would fail to meet the required minimum levels under the risk-based capital guidelines and minimum leverage ratio requirements established by the OCC. In addition, Park National Bank must have the approval of the OCC if a dividend in any year would cause the total dividends for that year to exceed the sum of Park National Bank’s current year’s net income and the retained net income for the preceding two years, less required transfers to surplus. Payment of dividends by Park National Bank may be restricted at any time at the discretion of its regulatory authorities, if such regulatory authorities deem such dividends to constitute unsafe and/or unsound banking practices or if necessary to maintain adequate capital.

The ability of Park to obtain funds for the payment of dividends and for other cash requirements is largely dependent on the amount of dividends which may be declared by Park National Bank. However, the Federal Reserve Board expects Park to serve as a source of strength to Park National Bank, which may require Park to retain capital for further investment in Park National Bank, rather than pay dividends to the Park shareholders. Payment of dividends by Park National Bank may be restricted at any time at the discretion of the OCC if the OCC deems such dividends to constitute an unsafe and/or unsound banking practice. These provisions could have the effect of limiting Park’s ability to pay dividends on its Common Shares.

At December 31, 2011, approximately $51.3 million of the total stockholders’ equity of Park National Bank was available for payment to Park without the approval of the OCC. See Note 17 of the Notes to Consolidated Financial Statements located on page 76 of Park’s 2011 Annual Report.

The Federal Reserve Board has issued a policy statement with regard to the payment of cash dividends by bank holding companies. The policy statement provides that, as a matter of prudent banking, a bank holding company should not maintain a rate of cash dividends unless its net income available to common shareholders has been sufficient to fully fund the dividends, and the prospective rate of earnings retention appears to be consistent with the bank holding company’s capital needs, asset quality, and overall financial condition. Accordingly, a bank holding company should not pay cash dividends that exceed its net income or can only be funded in ways that weaken the bank holding company’s financial health, such as by borrowing.

Under the terms of the Indenture governing the $15.5 million of junior subordinated debentures issued by Vision to the Vision Trust and the related Guarantee Agreement, Park, as successor to Vision in accordance with the First Supplemental Indenture, is prohibited, subject to limited exceptions, from declaring or paying any dividends or distributions on any shares of its capital stock (i) if an event of default under the Indenture has occurred and continues, (ii) if Park is in default with respect to the payment of any obligations under the Guarantee Agreement or (iii) during any period in which the payment of interest on the junior subordinated debentures by Park (and the payment of cash distributions on the floating rate preferred securities of the Vision Trust) is being deferred.

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The Note Purchase Agreement entered into by Park on December 23, 2009 (the “Note Purchase Agreement”) governs the 10% Subordinated Notes due December 23, 2019 issued by Park in December 2009. If an event of default has occurred under the Note Purchase Agreement and is continuing, Park’s ability to declare or pay dividends on any of its capital stock will be restricted.

The dividend rights of holders of Park common shares are also qualified and subject to the dividend rights of holders of Park Series A Preferred Shares held by the U.S. Treasury as described below under the caption “Capital Purchase Program.”

Privacy Provisions of Gramm-Leach-Bliley Act

Under the GLBA, federal banking regulators were required to adopt rules that limit the ability of banks and other financial institutions to disclose non-public information about consumers to nonaffiliated third parties. These limitations require disclosure of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to a nonaffiliated third party.

Patriot Act

In response to the terrorist events of September 11, 2001, the Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”) was signed into law in October 2001. The Patriot Act gives the United States government powers to address terrorist threats through enhanced domestic security measures, expanded surveillance powers, increased information sharing and broadened anti-money laundering requirements. Title III of the Patriot Act takes measures intended to encourage information sharing among bank regulatory agencies and law enforcement bodies. Further, certain provisions of Title III impose affirmative obligations on a broad range of financial institutions. Among other requirements, Title III and related regulations require regulated financial institutions to establish a program specifying procedures for obtaining identifying information from customers seeking to open new accounts and establish enhanced due diligence policies, procedures and controls designed to detect and report suspicious activity. Park National Bank has, and Vision Bank had, established policies and procedures that are believed to be compliant with the requirements of the Patriot Act.

Corporate Governance

As mandated by the Sarbanes-Oxley Act of 2002, the SEC has adopted rules and regulations governing, among other issues, corporate governance, auditing and accounting, executive compensation and enhanced and timely disclosure of corporate information. NYSE Amex has also adopted corporate governance rules. The Board of Directors of Park has taken a series of actions to strengthen and improve Park’s already strong corporate governance practices in light of the rules of the SEC and NYSE Amex. The Board of Directors has adopted charters for the Audit Committee, the Compensation Committee, the Nominating Committee and the Risk Committee as well as a Code of Business Conduct and Ethics governing the directors, officers and associates of Park and its affiliates.

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Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) into law. The Dodd-Frank Act is significantly changing the regulation of financial institutions and the financial services industry. The Dodd-Frank Act requires various federal agencies to adopt a broad range of regulations with significant discretion. Although some of the regulations have been adopted, the effects they will have on Park and its subsidiaries will not be known for months or even years.

Among the provisions already implemented that have or may have an effect on Park or its subsidiaries are the following:

· the Consumer Financial Protection Bureau has been formed, which has broad powers to adopt and enforce consumer protection regulations;

· the federal law prohibiting the payment of interest on commercial demand deposit accounts was eliminated effective July 21, 2011;

· the standard maximum amount of deposit insurance per customer was permanently increased to $250,000, and non-interest bearing transaction accounts have unlimited insurance through December 31, 2012;

· the assessment base for determining deposit insurance premiums has been expanded from domestic deposits to average assets minus average tangible equity;

· public companies in all industries are now required to provide shareholders the opportunity to cast a non-binding advisory vote on executive compensation; and

· the Federal Reserve Board has imposed on financial institutions with assets of $10 billion or more a cap on the debit card interchange fees the financial institutions may charge. Although the cap is not applicable to Park National Bank, it may have an adverse effect on Park National Bank as the debit cards issued by Park National Bank and other smaller banks, which have higher interchange fees, may become less competitive.

Additional provisions not yet implemented that may have an effect on Park or its subsidiaries are the following:

· new capital regulations for bank holding companies will be adopted, which may impose stricter requirements; and trust preferred securities issued after May 19, 2010 will no longer constitute Tier I capital; and

· new corporate governance requirements applicable generally to all public companies in all industries will require other new compensation practices and disclosure requirements, including requiring companies to “claw back” incentive compensation under certain circumstances, to consider the independence of compensation advisors and to make additional disclosures in proxy statements with respect to compensation matters.

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As many provisions of the Dodd-Frank Act have not yet been implemented and will require interpretation and rule making, the ultimate effect on Park and its subsidiaries cannot yet be determined. However, it is likely that the implementation of these provisions will increase compliance costs and fees paid to regulators, along with possibly restricting the operations of Park and its subsidiaries.

Capital Purchase Program

In response to the financial crisis affecting the banking system and financial markets, EESA was signed into law on October 3, 2008 creating TARP. The U.S. Treasury created the Capital Purchase Program to stabilize the financial system by providing capital to viable financial institutions of all sizes throughout the United States. Under the Capital Purchase Program, the U.S. Treasury provided $250 billion of capital to 707 financial institutions through the purchase of senior preferred shares on standardized terms, which included warrants for future U.S. Treasury purchases of common stock. The Capital Purchase Program is now closed.

ARRA was signed into law on February 17, 2009. ARRA includes a wide array of programs intended to stimulate the economy and provide for extensive infrastructure, energy, health and education needs. In addition, ARRA imposes certain executive compensation and corporate expenditure limits on all recipients of funds under the Capital Purchase Program, including Park, as long as any obligation arising from the financial assistance provided to the recipient under the Capital Purchase Program remains outstanding, excluding any period during which the U.S. Treasury holds only warrants to purchase common stock of a TARP participant. ARRA permits TARP recipients, subject to consultation with the appropriate federal banking agency, to repay to the U.S. Treasury any financial assistance received under the Capital Purchase Program without penalty, delay or the need to raise additional replacement capital.

On December 23, 2008, Park completed the sale to the U.S. Treasury of $100.0 million of newly-issued Park non-voting preferred shares as part of the Capital Purchase Program. To finalize Park’s participation in the Capital Purchase Program, Park and the U.S. Treasury entered into a Letter Agreement, dated December 23, 2008 (the “Letter Agreement”), including the related Securities Purchase Agreement – Standard Terms attached thereto (the “Securities Purchase Agreement” and together with the Letter Agreement, the “UST Agreement”). Pursuant to the UST Agreement, Park issued and sold to the U.S. Treasury (i) 100,000 of Park’s Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value and having a liquidation preference of $1,000 per share (the “Series A Preferred Shares”), and (ii) a warrant (the “Warrant”) to purchase 227,376 Park Common Shares, at an exercise price of $65.97 per share (subject to certain anti-dilution and other adjustments), for an aggregate purchase price of $100.0 million in cash.

As part of participation in the Capital Purchase Program, Park agreed to various requirements and restrictions imposed on all participants in the Capital Purchase Program. Among the terms of participation was a provision that the U.S. Treasury could change the terms of participation at any time. The current terms of participation in the Capital Purchase Program include the following:

· Park must file with the SEC a registration statement under the Securities Act, registering for resale the Series A Preferred Shares or, in the event the Series A Preferred Shares are deposited with a depository at the request of the U.S. Treasury, depository shares evidencing fractional interests in the Series A Preferred Shares; the Warrant to purchase 227,376 Common Shares; and any Common Shares issuable from time to time upon exercise of the Warrant. On January 22, 2009, Park filed a Registration Statement on Form S-3 (the “Initial Registration Statement”) to register these securities, which Initial Registration Statement became effective on filing. The securities registered on the Initial Registration Statement may be offered and sold if not more than three years have lapsed since the effective date of the Initial Registration Statement. As a result, Park must file a new registration statement under the Securities Act covering these securities. The U.S. Treasury has permitted Park to delay the filing of the new registration statement until March 15, 2012.

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· As long as the Series A Preferred Shares remain outstanding, unless all accrued and unpaid dividends for all past dividend periods on the Series A Preferred Shares are fully paid, Park will not be permitted to declare or pay dividends on any Common Shares (other than dividends payable solely in Common Shares), any junior preferred shares or, generally, any preferred shares ranking pari passu with the Series A Preferred Shares (other than in the case of pari passu preferred shares, dividends on a pro rata basis with the Series A Preferred Shares), nor will Park be permitted to repurchase or redeem any Common Shares or preferred shares other than the Series A Preferred Shares.

· As a recipient of government funding under the Capital Purchase Program, Park, together with its subsidiaries, must comply with the executive compensation and corporate governance standards established by the U.S. Treasury under ARRA for so long as the U.S. Treasury holds any securities acquired from Park pursuant to the Securities Purchase Agreement or upon exercise of the Warrant, excluding any period during which the U.S. Treasury holds only the Warrant (the “Covered Period”). On June 15, 2009, the U.S. Treasury published executive compensation and corporate governance standards, which were amended effective December 7, 2009, applicable to TARP recipients, including Park, and their subsidiaries. ARRA and the Interim Final Rule impose limitations on Park’s executive compensation practices by, among other things: (i) limiting the deductibility, for United States federal income tax purposes, of compensation paid to any of our Senior Executive Officers (as defined in the Interim Final Rule) to $500,000 per year; (ii) prohibiting the payment or accrual of any bonus, retention award or incentive compensation to the five most highly-compensated employees of Park and its subsidiaries, except in the form and under the limited circumstances permitted by the Interim Final Rule; (iii) prohibiting the payment of golden parachute payments (as defined in the Interim Final Rule) to Park’s Senior Executive Officers or any of the next five most highly-compensated employees of Park and its subsidiaries, upon a departure from Park and its subsidiaries or due to a change in control of Park, except for payments for services performed or benefits accrued; (iv) requiring Park or the applicable subsidiary to “claw back” any bonus, retention award or incentive compensation paid (or under a legally binding obligation to be paid) to a Senior Executive Officer or any of the next 20 most highly-compensated employees of Park and its subsidiaries if the payment was based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria; (v) prohibiting Park and its subsidiaries from maintaining any Employee Compensation Plan (as defined in the Interim Final Rule) that would encourage the manipulation of Park’s reported earnings to enhance the compensation of any of the employees of Park or its subsidiaries; (vi) prohibiting Park and its subsidiaries from maintaining compensation plans and arrangements for Park’s Senior Executive Officers that encourage Park’s Senior Executive Officers to take unnecessary and excessive risks that threaten the value of Park; (vii) requiring Park and its subsidiaries to limit any Employee Compensation Plan that unnecessarily exposes Park to risk; (viii) prohibiting Park and its subsidiaries from providing (formally or informally) “gross-ups” to any of Park’s Senior Executive Officers or the 20 next most highly-compensated employees of Park and its subsidiaries; (ix) requiring that Park disclose to the U.S. Treasury and Park’s primary regulator the amount, nature and justification for offering to any of the five most highly-compensated employees of Park and its subsidiaries any perquisites whose total value exceeds $25,000; (x) requiring that Park disclose to the U.S. Treasury and Park’s primary regulator whether Park, the Park Board of Directors or the Compensation Committee engaged a compensation consultant and the services performed by that compensation consultant and any of its affiliates; (xi) requiring that Park disclose to the U.S. Treasury the identity of Park’s Senior Executive Officers and the 20 next most highly-compensated employees of Park and its subsidiaries, identified by name and title and ranked in descending order of annual compensation; and (xii) subjecting any bonus, retention award or other compensation paid before February 17, 2009 to Park’s Senior Executive Officers or the 20 next most highly-compensated employees of Park and its subsidiaries to retroactive review by the U.S. Treasury to determine whether any such payments were inconsistent with the purposes of TARP or otherwise contrary to the public interest. ARRA and the Interim Final Rule also required that the Park Board of Directors adopt a Company-wide policy regarding “excessive or luxury expenditures,” which was adopted on September 4, 2009, and post this policy on Park’s Internet site. Park must also permit in its proxy statements for annual meetings of shareholders a non-binding advisory “say on pay” shareholder vote on the compensation of executives, as disclosed pursuant to the compensation disclosure rules of the SEC.

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The U.S. Treasury has certain supervisory and oversight duties and responsibilities under EESA, the Capital Purchase Program and ARRA. Also, the Special Inspector General for TARP (“SIGTARP”), which position was established pursuant to Section 121 of EESA, has the duty, among other things, to conduct, supervise and coordinate audits and investigations of the purchase, management and sale of assets by the U.S. Treasury under TARP and the Capital Purchase Program, including the Series A Preferred Shares purchased by the U.S. Treasury from Park.

Executive and Incentive Compensation

In June 2010, the Federal Reserve Board, the OCC and the FDIC issued joint interagency guidance on incentive compensation policies (the “Joint Guidance”) intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. This principles-based guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should: (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks; (ii) be compatible with effective internal controls and risk management; and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors.

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Pursuant to the Joint Guidance, the Federal Reserve Board will review as part of a regular, risk-focused examination process, the incentive compensation arrangements of financial institutions such as Park and Park National Bank. Such reviews will be tailored to each organization based on the scope and complexity of the organization’s activities and the prevalence of incentive compensation arrangements. The findings of the supervisory initiatives will be included in reports of examination and deficiencies will be incorporated into the institution’s supervisory ratings, which can affect the institution’s ability to make acquisitions and take other actions. Enforcement actions may be taken against an institution if its incentive compensation arrangements, or related risk-management control or governance processes, pose a risk to the organization’s safety and soundness and prompt and effective measures are not being taken to correct the deficiencies.

On February 7, 2011, federal banking regulatory agencies jointly issued proposed rules on incentive-based compensation arrangements under applicable provisions of the Dodd-Frank Act (the “Proposed Joint Rules”). The Proposed Joint Rules generally apply to financial institutions with $1.0 billion or more in assets that maintain incentive-based compensation arrangements for certain covered employees. The Proposed Joint Rules: (i) prohibit covered financial institutions from maintaining incentive-based compensation arrangements that encourage covered persons to expose the institution to inappropriate risk by providing the covered person with “excessive” compensation; (ii) prohibit covered financial institutions from establishing or maintaining incentive-based compensation arrangements for covered persons that encourage inappropriate risks that could lead to a material financial loss; (iii) require covered financial institutions to maintain policies and procedures appropriate to their size, complexity and use of incentive-based compensation to help ensure compliance with the Proposed Joint Rules; and (iv) require covered financial institutions to provide enhanced disclosure to regulators regarding their incentive-based compensation arrangements for covered persons within 90 days following the end of the fiscal year. Final rules related to incentive-based compensation arrangements are excepted to be issued in the latter half of 2012.

Public companies will also be required, once stock exchanges impose additional listing requirements under the Dodd-Frank Act, to implement “clawback” procedures for incentive compensation payments and to disclose the details of the procedures which allow recovery of incentive compensation that was paid on the basis of erroneous financial information necessitating a restatement due to material noncompliance with financial reporting requirements. This clawback policy is intended to apply to compensation paid within a three-year look-back window of the restatement and would cover all executives who received incentive awards.

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Future Legislation

Various and significant legislation affecting financial institutions and the financial industry is from time to time introduced by the United States Congress, as evidenced by the sweeping reforms in the Dodd-Frank Act adopted in 2010. Such legislation may continue to change banking statutes and the operating environment of Park and its subsidiaries in substantial and unpredictable ways, and could significantly increase or decrease costs of doing business, limit or expand permissible activities or affect the competitive balance among financial institutions. With the enactment of the Dodd-Frank Act and the continuing implementation of final rules and regulations thereunder, the nature and extent of future legislative and regulatory changes affecting financial institutions remains very unpredictable.

Statistical Disclosure

The statistical disclosure relating to Park and its subsidiaries required under the SEC’s Industry Guide 3, “Statistical Disclosure by Bank Holding Companies,” is included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW” and in Note 1 of the Notes to Consolidated Financial Statements in Park’s 2011 Annual Report, Note 4 of the Notes to Consolidated Financial Statements in Park’s 2011 Annual Report, Note 5 of the Notes to Consolidated Financial Statements in Park’s 2011 Annual Report, Note 8 of the Notes to Consolidated Financial Statements in Park’s 2011 Annual Report and Note 9 of the Notes to Consolidated Financial Statements in Park’s 2011 Annual Report. This statistical disclosure is incorporated herein by reference.

Effect of Environmental Regulation

Compliance with federal, state and local provisions regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, has not had a material effect upon the capital expenditures, earnings or competitive position of Park and its subsidiaries. Park believes the nature of the operations of its subsidiaries has little, if any, environmental impact. Park, therefore, anticipates no material capital expenditures for environmental control facilities for its current fiscal year or for the foreseeable future.

Park believes its primary exposure to environmental risk is through the lending activities of its subsidiaries. In cases where management believes environmental risk potentially exists, Park’s subsidiaries mitigate their environmental risk exposures by requiring environmental site assessments at the time of loan origination to confirm collateral quality as to commercial real estate parcels posing higher than normal potential for environmental impact, as determined by reference to present and past uses of the subject property and adjacent sites. In addition, environmental assessments are typically required prior to any foreclosure activity involving non-residential real estate collateral.

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ITEM 1A. RISK FACTORS.

Cautionary Statement Regarding Forward-Looking Information

Certain statements contained in this Annual Report on Form 10-K which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements specifically identified as forward-looking statements within this document. In addition, certain statements in future filings by Park with the SEC, in press releases, and in oral and written statements made by or with the approval of Park which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include: (i) projections of income or expense, earnings per share, the payment or non-payment of dividends, capital structure and other financial items; (ii) statements of plans and objectives of Park or our management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying those statements.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those discussed in the forward-looking statements. We desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events, including those factors and events identified below. There is also the risk that Park’s management or Board of Directors incorrectly analyzes these risks and uncertainties or that the strategies Park develops to address them are unsuccessful.

Forward-looking statements speak only as of the date on which they are made, and, except as may be required by law, Park undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made to reflect unanticipated events. All subsequent written and oral forward-looking statements attributable to Park or any person acting on Park’s behalf are qualified in their entirety by the following cautionary statements.

Changes in economic and political conditions could adversely affect our earnings, as our borrowers’ ability to repay loans and the value of the collateral securing our loans decline.

Our success depends, to a certain extent, upon economic and political conditions, local and national, as well as governmental fiscal and monetary policies. Conditions such as inflation, recession, unemployment, changes in interest rates, fiscal and monetary policy and other factors beyond our control may adversely affect our asset quality, deposit levels and loan demand and, therefore, our earnings and our capital. Because we have a significant amount of real estate loans, additional decreases in real estate values could adversely affect the value of property used as collateral and our ability to sell the collateral upon foreclosure. Adverse changes in the economy may also have a negative effect on the ability of our borrowers to make timely repayments of their loans, which would have an adverse impact on our earnings and cash flows. The substantial majority of the loans made by our subsidiaries are to individuals and businesses in Ohio, although we continue to hold certain loans made, and real estate located, in Gulf Coast communities in Alabama and the Florida panhandle. Consequently, a significant decline in the economy in Ohio or in Gulf Coast communities in Alabama or the panhandle of Florida could have a materially adverse effect on our financial condition and results of operations.

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While substantially all of the operating assets and liabilities of Vision Bank were sold to Centennial Bank on February 16, 2012, Vision Bank retained non-performing loans, which had a book balance as of February 16, 2012 of $88 million and performing loans which had a book balance of $22 million as of February 16, 2012, both balances being net of any loan loss allowances that existed prior to the close of the transactions between Vision Bank and Centennial Bank.These retained loans were transferred by operation of law to SE LLC as a result of the Vision Bank-SE LLC Merger. As a result, Park’s future earnings continue to be susceptible to further declining credit conditions in the markets in which the borrowers under these retained loans operate or declining credit conditions in the markets served by Park National Bank and its divisions.

Legislative or regulatory changes or actions could adversely impact us or the businesses in which we are engaged.

The financial services industry is extensively regulated. We are subject to extensive state and federal regulation, supervision and legislation that govern almost all aspects of our operations. Laws and regulations may change from time to time and are primarily intended for the protection of consumers, depositors, borrowers, the FDIC’s Deposit Insurance Fund and the banking system as a whole, and not to benefit our shareholders. Regulations affecting banks and financial services businesses are undergoing continuous changes, and management cannot predict the effect of these changes. The impact of any changes to laws and regulations or other actions by regulatory agencies may negatively impact us or our ability to increase the value of our business. Regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the imposition of restrictions on the operation of an institution, the classification of assets held by an institution and the adequacy of an institution’s allowance for loan losses. Additionally, actions by regulatory agencies against us could cause us to devote significant time and resources to defending our business and may lead to penalties that materially affect us and our shareholders.

In light of current conditions in the global financial markets and the global economy, regulators have increased their focus on the regulation of the financial services industry. Most recently, the United States Congress and the federal agencies regulating the financial services industry have acted on an unprecedented scale in responding to the stresses experienced in the global financial markets. Some of the laws enacted by the United States Congress and regulations promulgated by federal regulatory agencies subject us, and other financial institutions to which such laws and regulations apply, to additional restrictions, oversight and costs that may have an impact on our business, results of operations or the trading price of our Common Shares.

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The recently enacted Dodd-Frank Act may adversely impact Park’s results of operations, financial condition or liquidity.

On July 21, 2010, the Dodd-Frank Act was signed into law. The Dodd-Frank Act represents a comprehensive overhaul of the financial services industry within the United States. There are a number of reform provisions that are likely to significantly impact the ways in which banks and bank holding companies, including Park and Park National Bank, do business. A detailed discussion regarding the Dodd-Frank Act can be found under the caption “Supervision and Regulation of Park and its Subsidiaries” in “Item 1 – Business” of this Form 10-K.

Many provisions of the Dodd-Frank Act will not be implemented immediately and will require interpretation and rule making by federal regulators. Park is closely monitoring all relevant sections of the Dodd-Frank Act to ensure continued compliance with laws and regulations. While the ultimate effect of the Dodd-Frank Act on Park and our subsidiaries cannot currently be determined, the law and its implemented rules and regulations are likely to result in increased compliance costs and fees paid to regulators, along with possible restrictions on the operations of Park and our subsidiaries, all of which may have a material adverse affect on Park’s operating results and financial condition.

Deposit insurance premiums assessed on Park may increase and have a negative effect on Park’s results of operations.

The Deposit Insurance Fund (the “DIF”) maintained by the FDIC to resolve banks failures is funded by fees assessed on insured depository institutions. The costs of resolving bank failures has increased during the last few years and decreased the DIF. The FDIC collected a special assessment in 2009 to replenish the DIF and also required a prepayment of an estimated amount of future deposit insurance premiums. If the costs of future bank failures increase, deposit insurance premiums may also increase.

A default by another larger financial institution could adversely affect financial markets generally.

The commercial soundness of many financial institutions may be closely interrelated as a result of relationships between and among the institutions. As a result, concerns about, or a default or threatened default by, one institution could lead to significant marketwide liquidity and credit problems, losses or defaults by other institutions. This is sometimes referred to as “systemic risk” and may adversely affect our business.

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Changes in the general economic conditions and real estate valuations in our primary market areas could adversely impact results of operations, financial condition and cash flows.

Our lending and deposit gathering activities are concentrated primarily in Ohio and, prior to February 17, 2012, in markets served through Vision Bank operations in Alabama and Florida and our success depends on the general economic conditions of these areas, particularly given that a significant portion of our lending relates to real estate located in these regions. Real estate values in these Ohio and, more dramatically, Gulf Coast communities have been negatively impacted by the ongoing economic crisis. Additional adverse changes in the regional and general economic conditions could reduce our growth rate, impair our ability to collect payments on loans, increase loan delinquencies, increase problem assets and foreclosures, increase claims and lawsuits, increase devaluations recognized within our OREO portfolio, decrease the demand for our products and services and decrease the value of collateral for loans, especially real estate values, which could have a material adverse effect on our financial condition, results of operations and cash flows.

Because of our participation in the Capital Purchase Program, we are subject to several restrictions, including restrictions on compensation paid to our executive officers and certain other most highly-compensated employees.

We participate in the Capital Purchase Program. For more information regarding our participation in the Capital Purchase Program, see the discussion under the caption “Supervision and Regulation of Park and its Subsidiaries – Capital Purchase Program” in “Item 1 – Business” of Part I of this Annual Report on Form 10-K.

To finalize Park’s participation in the Capital Purchase Program, Park and the U.S. Treasury entered into the Securities Purchase Agreement. Pursuant to the Securities Purchase Agreement, Park issued and sold to the U.S. Treasury (i) 100,000 Series A Preferred Shares and (ii) the Warrant, for an aggregate purchase price of $100.0 million in cash. The Securities Purchase Agreement limits our ability to declare or pay dividends on any of our shares. Specifically, we are unable to declare dividend payments on Common Shares, junior preferred shares or pari passu preferred shares if we are in arrears on the payment of dividends on the Series A Preferred Shares. Common Shares, junior preferred shares or pari passu preferred shares may not be repurchased if we are in arrears on the payment of Series A Preferred Share dividends. 

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As a recipient of government funding under the Capital Purchase Program, we, together with our subsidiaries, must comply with the executive compensation and corporate governance standards imposed by ARRA and the standards established by the Secretary of the Treasury under ARRA (including the Interim Final Rule) for so long as the U.S. Treasury holds any securities acquired from us pursuant to the Securities Purchase Agreement or upon exercise of the Warrant, excluding any period during which the U.S. Treasury holds only the Warrant (the “Covered Period”). ARRA and the Interim Final Rule impose limitations on our executive compensation practices by, among other things: (i) limiting the deductibility, for United States federal income tax purposes, of compensation paid to any of our Senior Executive Officers (as defined in the Interim Final Rule) to $500,000 per year; (ii) prohibiting the payment or accrual of any bonus, retention award or incentive compensation to the five most highly-compensated employees of Park and our subsidiaries, except in the form and under the limited circumstances permitted by the Interim Final Rule; (iii) prohibiting the payment of golden parachute payments (as defined in the Interim Final Rule) to Park’s Senior Executive Officers or any of the next five most highly-compensated employees of Park and our subsidiaries upon a departure from Park and our subsidiaries or due to a change in control of Park, except for payments for services performed or benefits accrued; (iv) requiring Park or the applicable subsidiary to “claw back” any bonus, retention award or incentive compensation paid (or under a legally binding obligation to be paid) to a Senior Executive Officer or any of the next 20 most highly-compensated employees of Park and our subsidiaries if the payment was based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria; (v) prohibiting Park and our subsidiaries from maintaining any employee compensation plan (as defined in the Interim Final Rule) that would encourage the manipulation of our reported earnings to enhance the compensation of any of the employees of Park and our subsidiaries; (vi) prohibiting Park and our subsidiaries from maintaining compensation plans and arrangements for Park’s Senior Executive Officers that encourage Park’s Senior Executive Officers to take unnecessary and excessive risks that threaten the value of Park; (vii) requiring Park and our subsidiaries to limit any employee compensation plan that unnecessarily exposes Park to risk; (viii) prohibiting Park and our subsidiaries from providing (formally or informally) “gross-ups” to any of Park’s Senior Executive Officers or the 20 next most highly-compensated employees of Park and our subsidiaries; (ix) requiring that Park disclose to the U.S. Treasury and Park’s primary regulator the amount, nature and justification for offering to any of the five most highly-compensated employees of Park and our subsidiaries any perquisites whose total value exceeds $25,000; (x) requiring that Park disclose to the U.S. Treasury and Park’s primary regulator whether Park, the Park Board of Directors or the Compensation Committee engaged a compensation consultant and the services performed by that compensation consultant and any of its affiliates; (xi) requiring that Park disclose to the U.S. Treasury the identity of Park’s Senior Executive Officers and the 20 next most highly-compensated employees of Park and our subsidiaries, identified by name and title and ranked in descending order of annual compensation; and (xii) subjecting any bonus, retention award or other compensation paid before February 17, 2009 to Park’s Senior Executive Officers or the 20 next most highly-compensated employees of Park and our subsidiaries to retroactive review by the U.S. Treasury to determine whether any such payments were inconsistent with the purposes of TARP or otherwise contrary to the public interest. ARRA and the Interim Final Rule also required that the Park Board of Directors adopt a Company-wide policy regarding “excessive or luxury expenditures,” which was adopted on September 4, 2009 and is posted on Park’s Internet site.

Restrictions on compensation may make it more difficult for us to hire or retain personnel, which might adversely affect our financial condition or results of operations.

Changes in interest rates could have a material adverse effect on our financial condition, results of operations and cash flows.

Our earnings and cash flows depend substantially on our interest rate spread, which is the difference between (i) the rates we earn on loans, investment securities and other interest earning assets and (ii) the interest rates we pay on deposits and our borrowings. These rates are highly sensitive to many factors beyond our control, including general economic conditions and the policies of various governmental and regulatory authorities. Changes in monetary policy influence the origination of loans, the prepayment speed of loans, the purchase of investments, the generation of deposits and rates of interest received and paid. While we have taken measures intended to manage the risks of operating in a changing interest rate environment, there can be no assurance that such measures will be effective in avoiding undue interest rate risk. Information pertaining to the impact changes in interest rates could have on our net income is included in Table 30 in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” is incorporated herein by reference.  

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We extend credit to a variety of customers based on internally set standards and the judgment of our loan officers and bank division presidents. We manage the credit risk through a program of underwriting standards, the review of certain credit decisions and an on-going process of assessing the quality of the credit already extended. Our credit standards and on-going process of credit assessment might not protect us from significant credit losses.

We take credit risk by virtue of making loans and leases, extending loan commitments and letters of credit and, to a lesser degree, purchasing non-governmental securities. Our exposure to credit risk is managed through the use of consistent underwriting standards that emphasize “in-market” lending while avoiding highly leveraged transactions as well as excessive industry and other concentrations. Our credit administration function employs risk management techniques to ensure that loans and leases adhere to corporate policy and problem loans and leases are promptly identified. While these procedures are designed to provide us with the information needed to implement policy adjustments where necessary, and to take proactive corrective actions, there can be no assurance that such measures will be effective in avoiding undue credit risk.

We may elect or be compelled to seek additional capital in the future, but that capital may not be available when it is needed.

We are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations. As we experience loan losses, additional capital may need to be infused. In addition, we may elect to raise additional capital to support our business or to finance acquisitions, if any, or we may otherwise elect or be required to raise additional capital. Our ability to raise additional capital, if needed, will depend on our financial performance, conditions in the capital markets, economic conditions and a number of other factors, many of which are outside our control. Accordingly, there can be no assurance that we can raise additional capital if needed or on terms acceptable to us. If we cannot raise additional capital when needed, it may have a material adverse effect on our financial condition, results of operations and prospects.

Our allowance for loan losses may prove to be insufficient to absorb potential losses in our loan portfolio.

Lending money is a substantial part of our business. However, every loan we make carries a risk of non-payment. This risk is affected by, among other things: the cash flow of the borrower and/or the project being financed; in the case of a collateralized loan, the changes and uncertainties as to the future value of the collateral; the credit history of a particular borrower; changes in economic and industry conditions; and the duration of the loan.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make significant estimates that affect the financial statements. One of our most critical estimates is the level of the allowance for loan losses. Due to the inherent nature of these estimates, we cannot provide absolute assurance that we will not be required to charge earnings for significant unexpected loan losses.

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We maintain an allowance for loan losses that we believe is a reasonable estimate of known and inherent losses within the loan portfolio. We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of the real estate and other assets serving as collateral for the repayment of loans. Through a periodic review and consideration of the loan portfolio, management determines the amount of the allowance for loan losses by considering general market conditions, the credit quality of the loan portfolio, the collateral supporting the loans and the performance of customers relative to their financial obligations with us. The amount of future losses is susceptible to changes in economic, operating and other conditions, including changes in interest rates, which may be beyond our control, and these losses may exceed current estimates. We cannot fully predict the amount or timing of losses or whether the loan loss allowance will be adequate in the future. If our assumptions prove to be incorrect, our allowance for loan losses may not be sufficient to cover losses inherent in our loan portfolio, resulting in additions to the allowance. Excessive loan losses and significant additions to our allowance for loan losses could have a material adverse impact on our financial condition and results of operations.

In addition, bank regulators periodically review our allowance for loan losses and may require us to increase our provision for loan losses or recognize further loan charge-offs. Any increase in our allowance for loan losses or loan charge-offs as required by these regulatory authorities might have a material adverse effect on our financial condition and results of operations.

If we are unable to redeem the Series A Preferred Shares after five years, the cost of this capital to us will increase substantially.

If we are unable to redeem our Series A Preferred Shares prior to February 15, 2014, the cost of this capital to us will increase substantially on that date, from 5.0% per annum to 9.0% per annum. Depending on our financial condition at the time, this increase in the annual dividend rate on the Series A Preferred Shares could have a material negative effect on our liquidity and cash flows.

We are exposed to operational risk.

Similar to any large organization, we are exposed to many types of operational risk, including reputational risk, legal and compliance risk, the risk of fraud or theft by employees or outsiders, unauthorized transactions by employees or operational errors, including clerical or record-keeping errors or those resulting from faulty or disabled computer or telecommunications systems.

Negative public opinion can result from our actual or alleged conduct in any number of activities, including lending practices, corporate governance and acquisitions, and from actions taken by governmental regulators and community organizations in response to those activities. Negative public opinion can adversely affect our ability to attract and keep customers and can expose us to potential litigation and regulatory action.

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Given the volume of transactions we process, certain errors may be repeated or compounded before they are discovered and successfully rectified. Our necessary dependence upon automated systems to record and process our transaction volume may further increase the risk that technical system flaws or employee tampering or manipulation of those systems will result in losses that are difficult to detect. We may also be subject to disruptions of our operating systems arising from events that are wholly or partially beyond our control (for example, computer viruses or electrical or telecommunications outages), which may give rise to disruption of service to customers and to financial loss or liability. We are further exposed to the risk that our external vendors may be unable to fulfill their contractual obligations (or will be subject to the same risk of fraud or operational errors by their respective employees as we are) and to the risk that our (or our vendors’) business continuity and data security systems prove to be inadequate.

We depend upon the accuracy and completeness of information about customers and counterparties.

In deciding whether to extend credit or enter into other transactions with customers and counterparties, we may rely on information provided to us by customers and counterparties, including financial statements and other financial information. We may also rely on representations of customers and counterparties as to the accuracy and completeness of that information and, with respect to financial statements, on reports of independent auditors. For example, in deciding whether to extend credit to a business, we may assume that the customer’s audited financial statements conform with GAAP and present fairly, in all material respects, the financial condition, results of operations and cash flows of the customer. We may also rely on the audit report covering those financial statements. Our financial condition, results of operations and cash flows could be negatively impacted to the extent that we rely on financial statements that do not comply with GAAP or on financial statements and other financial information that are materially misleading.

Changes in accounting standards, policies, estimates or procedures could impact Park’s reported financial condition or results of operations.

The accounting standard setters, including the Financial Accounting Standards Board, the Public Company Accounting Oversight Board, the SEC and other regulatory bodies, periodically change the financial accounting and reporting guidance that governs the preparation of our consolidated financial statements. The pace of change continues to accelerate and changes in accounting standards can be hard to predict and could materially impact how we record and report our financial condition and results of operations. In some cases, we could be required to apply new or revised guidance retroactively, resulting in the restatement of prior period financial statements.

The preparation of consolidated financial statements in conformity with GAAP requires management to make significant estimates that affect the financial statements. Due to the inherent nature of these estimates, actual results may vary materially from management’s estimates. Additional information regarding Park’s critical accounting policies and the sensitivity of estimates can be found in the section captioned “FINANCIAL REVIEW - CRITICAL ACCOUNTING POLICIES” in Park’s 2011 Annual Report.

We may be a defendant from time to time in the future in a variety of litigation and other actions, which could have a material adverse effect on our financial condition, results of operations and cash flows.

We and our subsidiaries may be involved from time to time in the future in a variety of litigation arising out of our business. The risk of litigation increases in times of increased troubled loan collection activity. Our insurance may not cover all claims that may be asserted against us, and any claims asserted against us, regardless of merit or eventual outcome, may harm our reputation. Should the ultimate judgments or settlements in any litigation exceed our insurance coverage, they could have a material adverse effect on our financial condition, results of operations and cash flows. In addition, we may not be able to obtain appropriate types or levels of insurance in the future, nor may we be able to obtain adequate replacement policies with acceptable terms, if at all.

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We are a holding company and depend on our subsidiaries for dividends, distributions and other payments.

As a bank holding company, we are a legal entity separate and distinct from our subsidiaries and affiliates. Our principal source of funds to pay dividends on our Common Shares and service our debt is dividends from these subsidiaries. In the event our subsidiaries become unable to pay dividends to us, we may not be able to service our debt, pay our other obligations or pay dividends on the Series A Preferred Shares or our Common Shares. Accordingly, our inability to receive dividends from our subsidiaries could also have a material adverse effect on our business, financial condition and results of operations.

Various federal and state statutory provisions and regulations limit the amount of dividends that Park National Bank and our other subsidiaries may pay to us without regulatory approval. Park National Bank generally may not, without prior regulatory approval, pay a dividend in an amount greater than its undivided profits. In addition, the prior approval of the OCC is required for the payment of a dividend by Park National Bank if the total of all dividends declared in a calendar year would exceed the total of its net income for the year combined with its retained net income for the two preceding years. The Federal Reserve Board and the OCC have issued policy statements that provide that insured banks and bank holding companies should generally only pay dividends out of current operating earnings. Thus, the ability of Park National Bank to pay dividends in the future is currently influenced, and could be further influenced, by bank regulatory policies and capital guidelines and may restrict our ability to declare and pay dividends.

Payment of dividends could also be subject to regulatory limitations if Park National Bank were to become “under-capitalized” for purposes of the applicable “prompt corrective action” regulations. “Under-capitalized” is currently defined as having a total risk-based capital ratio of less than 8.0%, a Tier 1 risk-based capital ratio of less than 4.0%, or a core capital, or leverage, ratio of less than 4.0%. Throughout 2011 and 2012 to date, Park National Bank has been in compliance with all regulatory capital requirements and had sufficient capital under the “prompt corrective action” regulations to be deemed “well-capitalized.”

If any of our subsidiaries becomes insolvent, the direct creditors of that subsidiary will have a prior claim on that subsidiary’s assets. Our rights and the rights of our creditors will be subject to that prior claim, unless we are also a direct creditor of that subsidiary.

Unauthorized disclosure of sensitive or confidential client or customer information, whether through a breach of our computer systems or otherwise, could severely harm our business.

As part of our financial institution business, we collect, process and retain sensitive and confidential client and customer information on behalf of our subsidiaries and other third parties. Despite the security measures we have in place, our facilities and systems, and those of our third-party service providers, may be vulnerable to security breaches, acts of vandalism, computer viruses, misplaced or lost data, programming and/or human errors or other similar events. If information security is breached, information can be lost or misappropriated, resulting in financial loss or costs to us. Any security breach involving confidential customer information, whether by us or by our vendors, could severely damage our reputation, expose us to the risks of litigation and liability or disrupt our operations and have a material adverse effect on our business.

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Derivative transactions may expose us to unexpected risk and potential losses.

We are party to a number of derivative transactions. Many of these derivative instruments are individually negotiated and non-standardized, which can make exiting, transferring or settling the position difficult. We carry borrowings which contain embedded derivatives. These borrowing arrangements require that we deliver underlying securities to the counterparty as collateral. If market interest rates were to decline, we may be required to deliver more securities to the counterparty. We are dependent on the creditworthiness of the counterparties and are therefore susceptible to credit and operational risk in these situations.

Derivative contracts and other transactions entered into with third parties are not always confirmed by the counterparties on a timely basis. While the transaction remains unconfirmed, we are subject to heightened credit and operational risk and, in the event of a default, may find it more difficult to enforce the contract. In addition, as new and more complex derivative products are created, covering a wider array of underlying credit and other instruments, disputes about the terms of the underlying contracts could arise, which could impair our ability to effectively manage our risk exposures from these products and subject us to increased costs. Any regulatory effort to create an exchange or trading platform for credit derivatives and other over-the-counter derivative contracts, or a market shift toward standardized derivatives, could reduce the risk associated with such transactions, but under certain circumstances could also limit our ability to develop derivatives that best suit the needs of our clients and ourselves and adversely affect our profitability.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

No response required.

ITEM 2. PROPERTIES.

Park’s principal executive offices are located at 50 North Third Street, Newark, Ohio 43055.

Park National Bank

As of the date of this Annual Report on Form 10-K, Park National Bank, its divisions and its subsidiary Scope Leasing, Inc. have a total of 124 financial service offices in Ohio and one in Kentucky. Park National Bank has six financial service offices (including its main office) and its operations center in Newark in Licking County. In addition, within Ohio, Park National Bank has:

· financial service offices in Ashland, Loudonville and Perrysville in Ashland County;

· a financial service office in Athens in Athens County;

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· a financial service office in West Chester in Butler County;

· financial service offices in Urbana (two offices), Mechanicsburg and North Lewisburg in Champaign County;

· financial service offices in Springfield (six offices), Enon, Medway, New Carlisle (two offices) and South Charleston in Clark County;

· financial service offices in Amelia (two offices), Cincinnati, Milford, New Richmond and Owensville in Clermont County;

· a financial service office in Coshocton in Coshocton County;

· financial service offices in Bucyrus, Crestline and Galion in Crawford County;

· financial service offices in Greenville (five offices), Arcanum and Versailles in Darke County;

· financial service offices in Baltimore, Pickerington (two offices) and Lancaster (six offices) in Fairfield County;

· a financial service office in Jeffersonville in Fayette County;

· financial service offices in Canal Winchester, Columbus (two offices), Gahanna, Reynoldsburg and Worthington in Franklin County;

· financial service offices in Beavercreek, Jamestown and Xenia (two offices) in Greene County;

· a financial service office in Cincinnati in Hamilton County;

· a financial service office in Logan in Hocking County;

· financial service offices in Millersburg (two offices) in Holmes County;

· financial service offices (3 offices) and an operations center in Mount Vernon as well as financial service offices in Centerburg, Danville and Fredericktown, all in Knox County;

· financial service offices in Granville, Heath (two offices), Hebron, Johnstown, Kirkersville, Pataskala, Reynoldsburg and Utica in Licking County;

· a financial service office in Plain City in Madison County;

· financial service offices in Caledonia, Marion (two offices) and Prospect in Marion County;

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· a financial service office in Fort Recovery in Mercer County;

· financial service offices (three offices) and an operations center in Piqua as well as financial service offices in Tipp City and Troy (two offices), all in Miami County;

· financial service offices in Mount Gilead (two offices) in Morrow County;

· financial service offices in Zanesville (nine offices), New Concord and Dresden in Muskingum County;

· a financial service office in New Lexington in Perry County;

· financial service offices in Bellville, Mansfield (eight offices), Butler, Lexington, Ontario and Shelby in Richland County;

· a financial service office in Newcomerstown in Tuscarawas County; and

· a financial service office in Springboro in Warren County.

Park National Bank also has one financial service office in Florence (Boone County), Kentucky.

The financial service offices in Athens, Coshocton, Hocking, Muskingum, Perry and Tuscarawas Counties comprise the Century National Bank Division. The financial service offices in Canal Winchester and Reynoldsburg in Franklin County and Fairfield County comprise the Fairfield National Bank Division. The financial service offices in Ashland County comprise the Farmers Bank Division. The financial service offices in Bellville in Richland County and in Holmes, Knox and Morrow Counties comprise the First-Knox National Bank Division. The financial service offices in Butler, Clermont and Hamilton Counties in Ohio and in Boone County, Kentucky comprise The Park National Bank of Southwest Ohio & Northern Kentucky Division. The financial service offices in Richland County (except the Bellville office) comprise the Richland Bank Division. The financial service offices in Darke and Mercer Counties comprise the Second National Bank Division. The financial service offices in Champaign, Clark, Fayette, Greene, Madison and Warren Counties comprise the Security National Bank Division. The financial service offices in Crawford and Marion Counties comprise the United Bank Division. The financial service offices in Miami County comprise the Unity National Bank Division. Of the financial service offices described above, 30 are leased and the remainder are owned. Park National Bank also operates 31 off-site automated teller machines.

Scope Leasing, Inc. has an office located in Columbus in Franklin County, Ohio.

Guardian Finance

As of the date of this Annual Report on Form 10-K, Guardian Finance has a total of six financial service offices, all of which are located in Ohio. Guardian Finance has its main office in Hilliard in Franklin County, a financial service office in Springfield in Clark County, a financial service office in Lancaster in Fairfield County where it leases space from the Fairfield National Bank division of Park National Bank, a financial service office in Heath in Licking County, a financial service office in Centerville in Montgomery County and a financial service office in Mansfield in Richland County where it leases space from the Richland Bank Division of Park National Bank. All of Guardian Finance’s financial service offices are leased.

SE Property Holdings, LLC

As of the date of this Annual Report on Form 10-K, SE LLC has a total of 3 offices, one in Licking County, Ohio, one in Baldwin County, Alabama, and one in Bay County, Florida. One office is leased and two are owned.

ITEM 3. LEGAL PROCEEDINGS.

There are no pending legal proceedings to which Park or any of its subsidiaries is a party or to which any of their property is subject, except for routine legal proceedings to which Park’s subsidiary banks are parties incidental to their respective banking businesses. Park considers none of those proceedings to be material.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

The information called for in this Item 5 by Items 201(a) through 201(c) of SEC Regulation S-K is incorporated herein by reference from “Table 35 – Market and Dividend Information” and the accompanying disclosure in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” on page 48.

No purchases of Park’s Common Shares were made by or on behalf of Park or any “affiliated purchaser” of Park, as defined in Rule 10b-18(a)(3) under the Exchange Act during the fiscal quarter ended December 31, 2011. The following table provides information concerning changes in the maximum number of Common Shares that may be purchased under Park’s previously announced stock repurchase authorization to fund the Park National Corporation 2005 Incentive Stock Option Plan as a result of the forfeiture of previously outstanding incentive stock options.

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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)
October 1 through October 31, 2011		–		–		–		1,018,259
November 1 through November 30, 2011		–		–		–		1,018,259
December 1 through December 31, 2011		–		–		–		982,267
Total		–		–		–		982,267

___________________

(1) The number shown represents, as of the end of each period, the maximum number of Common Shares that may yet be purchased under Park’s publicly announced stock repurchase authorization to fund the Park National Corporation 2005 Incentive Stock Option Plan.

The Park National Corporation 2005 Incentive Stock Option Plan (the “2005 Plan”) was adopted by the Board of Directors of Park on January 18, 2005 and was approved by the Park shareholders at the Annual Meeting of Shareholders on April 18, 2005. Under the 2005 Plan, 1,500,000 Common Shares are authorized for delivery upon the exercise of incentive stock options granted under the 2005 Plan. All of the Common Shares delivered upon the exercise of incentive stock options granted under the 2005 Plan are to be treasury shares. During Fiscal 2011, Park did not purchase any Common Shares to be held as treasury shares and delivered upon exercise of incentive stock options granted under the 2005 Plan. As of December 31, 2011, incentive stock options covering 74,020 Common Shares were outstanding and 1,425,980 Common Shares were available for future grants under the 2005 Plan.

With 443,713 Common Shares held as treasury shares for purposes of the 2005 Plan at December 31, 2011, an additional 982,267 Common Shares remained authorized for repurchase for purposes of funding the 2005 Plan.

ITEM 6. SELECTED FINANCIAL DATA.

The information called for in this Item 6 is incorporated herein by reference from “Table 32 – Consolidated Five-Year Selected Financial Data” and the accompanying disclosure in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW.”

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The information called for in this Item 7 is incorporated herein by reference from the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW.”

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As noted in Table 15 and Table 30 included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” Park’s tax equivalent net interest margin has remained fairly stable over each of the three fiscal years ended December 31, 2011, 2010 and 2009. Consistently, over the last several years, Park’s earnings simulation model has projected that changes in interest rates would have only a small impact on net income and the tax equivalent net interest margin. The tax equivalent net interest margin was 4.14%, 4.26% and 4.22% for each of the fiscal years ended December 31, 2011, 2010 and 2009, respectively. As noted in Note 21 of the Notes to Consolidated Financial Statements under the caption “Fair Values” in Park’s 2011 Annual Report, on January 2, 2008, Park entered into a “pay fixed-receive floating” interest rate swap agreement for a notional amount of $25 million, which matures on December 28, 2012. This interest rate swap agreement was designed as a cash flow hedge against the variability of cash flows related to the Subordinated Debenture in the principal amount of $25 million issued by Park National Bank on December 28, 2007. The discussion of this interest rate swap agreement included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW – SOURCE OF FUNDS – Subordinated Debentures/Notes,” and in Note 19 of the Notes to Consolidated Financial Statements of Park’s 2011 Annual Report and Note 21 of the Notes to Consolidated Financial Statements of Park’s 2011 Annual Report is incorporated herein by reference. The discussion of interest rate sensitivity included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW – CAPITAL RESOURCES – Liquidity and Interest Rate Sensitivity Management,” is incorporated herein by reference. In addition, the discussion of Park’s commitments, contingent liabilities and off-balance sheet arrangements included in Park’s 2011 Annual Report under the caption “FINANCIAL REVIEW – CONTRACTUAL OBLIGATIONS – Commitments, Contingent Liabilities, and Off-Balance Sheet Arrangements,” and in Note 18 of the Notes to Consolidated Financial Statements included in Park’s 2011 Annual Report, is incorporated herein by reference.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The Consolidated Balance Sheets of Park and its subsidiaries at December 31, 2011 and 2010, the related Consolidated Statements of Income, of Changes in Stockholders’ Equity and of Cash Flows for the years ended December 31, 2011, 2010 and 2009, the related Notes to Consolidated Financial Statements and the Report of Independent Registered Public Accounting Firm (Crowe Horwath LLP) in Park’s 2011 Annual Report, are incorporated herein by reference. Quarterly Financial Data provided in “Table 33 – Quarterly Financial Data” and the accompanying disclosure included in the section of Park’s 2011 Annual Report captioned “FINANCIAL REVIEW,” is also incorporated herein by reference.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

No response required.

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ITEM 9A. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

With the participation of the Chairman of the Board and Chief Executive Officer (the principal executive officer) and the Chief Financial Officer (the principal financial officer) of Park, Park’s management has evaluated the effectiveness of Park’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the fiscal year covered by this Annual Report on Form 10-K. Based on that evaluation, Park’s Chairman of the Board and Chief Executive Officer and Park’s Chief Financial Officer have concluded that:

· information required to be disclosed by Park in this Annual Report on Form 10-K and the 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 Annual Report on Form 10-K 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 as of the end of the fiscal year covered by this Annual Report on Form 10-K.

Management’s Annual Report on Internal Control over Financial Reporting

The “MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING” included in Park’s 2011 Annual Report is incorporated herein by reference.

Attestation Report of the Registered Public Accounting Firm

The “REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM” included in Park’s 2011 Annual Report is incorporated herein by reference.

Changes in Internal Control over Financial Reporting

Park reviews its disclosure controls and procedures, which may include its internal control over financial reporting, on an ongoing basis and may from time to time make changes aimed at enhancing their effectiveness. Park’s management made process improvements throughout 2011 in an effort to address the material weakness related to guarantor support and as of the date of this Annual Report on Form 10-K, when calculating impairment under ASC 310, management no longer relies on expected cash flows from guarantors where litigation is required to collect those cash flows. Additionally, Park’s management made process improvements throughout 2011 in an effort to address the material weakness related to the OREO devaluations and loan loss provisions that are not related to guarantor support. These process improvements included:

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· 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.

The enhancements to Park’s internal control processes have resolved the material weaknesses that existed as of December 31, 2010.

ITEM 9B. OTHER INFORMATION.

No response required.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

Directors, Executive Officers and Persons Nominated or Chosen to Become Directors or Executive Officers

The information required by Item 401 of SEC Regulation S-K concerning the directors of Park and the nominees for re-election as directors of Park at the Annual Meeting of Shareholders to be held on April 23, 2012 (the “2012 Annual Meeting”) is incorporated herein by reference from the disclosure to be included under the caption “PROPOSAL 1 – ELECTION OF DIRECTORS” in Park’s definitive Proxy Statement relating to the 2012 Annual Meeting to be filed pursuant to SEC Regulation 14A (“Park’s 2012 Proxy Statement”).

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The information required by Item 401 of SEC Regulation S-K concerning the executive officers of Park is incorporated herein by reference from the disclosure to be included under the caption “EXECUTIVE OFFICERS” in Park’s 2012 Proxy Statement.

Compliance with Section 16(a) of the Exchange Act

The information required by Item 405 of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “BENEFICIAL OWNERSHIP OF PARK COMMON SHARES – Section 16(a) Beneficial Ownership Reporting Compliance” in Park’s 2012 Proxy Statement.

Committee Charters; Code of Business Conduct and Ethics

Park’s Board of Directors has adopted charters for each of the Audit Committee, the Compensation Committee, the Nominating Committee and the Risk Committee.

In accordance with the requirements of Section 807 of the NYSE Amex Company Guide, the Board of Directors of Park has adopted a Code of Business Conduct and Ethics covering the directors, officers and employees of Park and its affiliates, including Park’s Chairman of the Board and Chief Executive Officer (the principal executive officer), Park’s President and Secretary, Park’s Chief Financial Officer (the principal financial officer) and Park’s Chief Accounting Officer (the principal accounting officer). Park intends to disclose the following events, if they occur, in a current report on Form 8-K within four business days following their occurrence: (A) the date and nature of any amendment to a provision of Park’s Code of Business Conduct and Ethics that (i) applies to Park’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, (ii) relates to any element of the code of ethics definition enumerated in Item 406(b) of SEC Regulation S-K, and (iii) is not a technical, administrative or other non-substantive amendment; and (B) a description of any waiver (including the nature of the waiver, the name of the person to whom the waiver was granted and the date of the waiver), including an implicit waiver, from a provision of the Code of Business Conduct and Ethics granted to Park’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions that relates to one or more of the elements of the code of ethics definition set forth in Item 406(b) of SEC Regulation S-K. In addition, Park will disclose any waivers from the provisions of the Code of Business Conduct and Ethics granted to a director or executive officer of Park in a current report on Form 8-K within four business days following their occurrence in accordance with the requirements of Section 807 of the NYSE Annex Company Guide.

The text of each of the Code of Business Conduct and Ethics, the Audit Committee Charter, the Compensation Committee Charter, the Nominating Committee Charter and the Risk Committee Charter is posted on the “Governance Documents” section of the “Investor Relations” page of Park’s Internet site located at http://www.parknationalcorp.com. Interested persons may also obtain copies of the Code of Business Conduct and Ethics, the Audit Committee Charter, the Compensation Committee Charter, the Nominating Committee Charter and the Risk Committee Charter, without charge, by writing to the President of Park at Park National Corporation, 50 North Third Street, P.O. Box 3500, Newark, Ohio 43058-3500, Attention: David L. Trautman.

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Procedures for Recommending Director Nominees

Information concerning the procedures by which shareholders of Park may recommend nominees to Park’s Board of Directors is incorporated herein by reference from the disclosure to be included under the caption “CORPORATE GOVERNANCE – Nominating Procedures” in Park’s 2012 Proxy Statement. These procedures have not materially changed from those described in Park’s definitive Proxy Statement for the 2011 Annual Meeting of Shareholders held on April 18, 2011.

Audit Committee

The information required by Items 407(d)(4) and 407(d)(5) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “BOARD OF DIRECTORS STRUCTURE AND MEETINGS – Committees of the Board – Audit Committee” in Park’s 2012 Proxy Statement.

ITEM 11. EXECUTIVE COMPENSATION.

The information required by Item 402 of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the captions “EXECUTIVE COMPENSATION” and “DIRECTOR COMPENSATION” in Park’s 2012 Proxy Statement.

The information required by Item 407(e)(4) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION” in Park’s 2012 Proxy Statement.

The information required by Item 407(e)(5) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “EXECUTIVE COMPENSATION – Compensation Committee Report” in Park’s 2012 Proxy Statement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

Beneficial Ownership of Common Shares of Park

The information required by Item 403 of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “BENEFICIAL OWNERSHIP OF PARK COMMON SHARES” in Park’s 2012 Proxy Statement.

Equity Compensation Plan Information

Park has two compensation plans under which Common Shares of Park are authorized for issuance to directors, officers or employees of Park and Park’s subsidiaries in exchange for consideration in the form of goods or services – the Park National Corporation 2005 Incentive Stock Option Plan (the “2005 Plan”) and the Park National Corporation Stock Plan for Non-Employee Directors of Park National Corporation and Subsidiaries (the “Directors’ Stock Plan”). In addition, Park maintains the Park National Corporation Employees Stock Ownership Plan (the “Park KSOP”), which is intended to meet the qualification requirements of Section 401(a) of the Internal Revenue Code of 1986, as amended. The 2005 Plan and the Directors’ Stock Plan have been approved by Park’s shareholders.

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The following table shows the number of Common Shares issuable upon exercise of incentive stock options (“ISOs”) granted under the 2005 Plan outstanding at December 31, 2011, the weighted-average exercise price of those ISOs and the number of Common Shares remaining available for future issuance under the 2005 Plan and the Directors’ Stock Plan at December 31, 2011, excluding Common Shares issuable upon exercise of outstanding ISOs granted under the 2005 Plan.

Plan category	Number of Common Shares to be issued upon exercise of outstanding options, warrants and rights                (a)		Weighted-average exercise price of outstanding options, warrants and rights               (b)		Number of Common Shares remaining available for future issuance under equity compensation plans (excluding Common Shares reflected in column (a))                (c)
Equity compensation plans approved by shareholders		74,020	$	74.96		1,472,340	(1)
Equity compensation plans not approved by shareholders		--		--		--
Total		74,020	$	74.96		1,472,340	(1)

__________________

(1) Includes 1,425,980 Common Shares remaining available for future issuance under the 2005 Plan and 46,360 Common Shares remaining available for future issuance under the Directors’ Stock Plan.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

Certain Relationships and Related Person Transactions

The information required by Item 404 of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the captions “CORPORATE GOVERNANCE – Transactions with Related Persons” and “COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION” in Park’s 2012 Proxy Statement.

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Director Independence

The information required by Item 407(a) of SEC Regulation S-K is incorporated herein by reference from the disclosure to be included under the caption “CORPORATE GOVERNANCE – Independence of Directors” in Park’s 2012 Proxy Statement.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The information called for in this Item 14 is incorporated herein by reference from the disclosure to be included under the captions “AUDIT COMMITTEE MATTERS – Pre-Approval of Services Performed by Independent Registered Public Accounting Firm” and “AUDIT COMMITTEE MATTERS – Fees of Independent Registered Public Accounting Firm” in Park’s 2012 Proxy Statement.

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

(a)(1) Financial Statements.

The consolidated financial statements (and report thereon) listed below are incorporated herein by reference from Park’s 2011 Annual Report as noted:

Report of Independent Registered Public Accounting Firm (Crowe Horwath LLP) -- Incorporated by reference from Park’s 2011 Annual Report

Consolidated Balance Sheets at December 31, 2011 and 2010 --
Incorporated by reference from Park’s 2011 Annual Report

Consolidated Statements of Income for the years ended December 31, 2011, 2010 and 2009 -- Incorporated by reference from Park’s 2011 Annual Report

Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2011, 2010 and 2009 -- Incorporated by reference from Park’s 2011 Annual Report

Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009 -- Incorporated by reference from Park’s 2011 Annual Report

Notes to Consolidated Financial Statements -- Incorporated by reference from Park’s 2011 Annual Report

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(a)(2)	Financial Statement Schedules.
	All schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instructions or are inapplicable and have been omitted.

(a)(3)	Exhibits.
	The documents listed below are filed/furnished with this Annual Report on Form 10-K as exhibits or incorporated into this Annual Report on Form 10-K by reference as noted:

Exhibit No. Description of Exhibit

2.1(a) Purchase and Assumption Agreement, made and entered into on November 16, 2011, by and between Vision Bank and Park National Corporation (collectively, “Seller”) and Centennial Bank and Home BancShares, Inc. (collectively, “Buyer”) (incorporated herein by reference to Exhibit 2.1 to Park National Corporation’s Current Report on Form 8-K, dated and filed November 17, 2011 (File No. 1-13006))

Note: The disclosure schedules and other schedules (with the exception of Schedule S) referenced in the Purchase and Assumption Agreement have been omitted pursuant to Item 601(b)(2) of SEC Regulation S-K. Park National Corporation hereby undertakes to furnish a copy of the omitted disclosure schedules and other schedules upon request by the SEC.

2.1(b) First Amendment to Purchase and Assumption Agreement by and between Vision Bank and Park National Corporation and Centennial Bank and Home BancShares, Inc., effective as of January 25, 2012 (incorporated herein by reference to Exhibit 2.1(b) to Park National Corporation’s Current Report on Form 8-K, dated and filed February 16, 2012 (File No. 1-13006))

2.2 Agreement and Plan of Merger, entered into as of January 25, 2012, by and between Vision Bank and SE Property Holdings, LLC (filed herewith)

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))

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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) (“Park’s December 23, 2008 Form 8-K”))

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))

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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 (“Park’s March 31, 2008 Form 10-Q”) (File No. 1-13006))

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)

4.1(a) Junior Subordinated Indenture, dated as of December 5, 2005, between Vision Bancshares, Inc. and Wilmington Trust Company, as Trustee (incorporated herein by reference to Exhibit 10.16 to Vision Bancshares, Inc.’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))

4.1(b) First Supplemental Indenture, dated to be effective as of 6:00 p.m., Eastern Standard Time, on March 9, 2007, among Wilmington Trust Company, as Trustee; Park National Corporation; and Vision Bancshares, Inc. (incorporated herein by reference to Exhibit 4.1(b) to Park National Corporation’s Current Report on Form 8-K dated and filed March 15, 2007 (File No. 1-13006) (“Park’s March 15, 2007 Form 8-K”))

4.2(a) Amended and Restated Trust Agreement, dated as of December 5, 2005, among Vision Bancshares, Inc., as Depositor; Wilmington Trust Company, as Property Trustee and as Delaware Trustee; and the Administrative Trustees named therein, in respect of Vision Bancshares Trust I (incorporated herein by reference to Exhibit 10.15 to Vision Bancshares, Inc.’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))

Note: Pursuant to the First Supplemental Indenture, dated to be effective as of 6:00 p.m., Eastern Standard Time, on March 9, 2007, among Wilmington Trust Company, as Trustee; Park National Corporation; and Vision Bancshares, Inc., Park National Corporation succeeded to and was substituted for Vision Bancshares, Inc. as “Depositor”

4.2(b) Notice of Resignation of Administrative Trustees and Appointment of Successors, dated March 9, 2007, delivered to Wilmington Trust Company by the Resigning Administrative Trustees named therein, the Successor Administrative Trustees named therein and Park National Corporation (incorporated herein by reference to Exhibit 4.2(b) to Park’s March 15, 2007 Form 8-K)

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4.3 Guarantee Agreement, dated as of December 5, 2005, between Vision Bancshares, Inc., as Guarantor, and Wilmington Trust Company, as Guarantee Trustee, in respect of Vision Bancshares Trust I (incorporated herein by reference to Exhibit 10.17 to Vision Bancshares, Inc.’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))

Note: Pursuant to the First Supplemental Indenture, dated to be effective as of 6:00 p.m., Eastern Standard Time, on March 9, 2007, among Wilmington Trust Company, as Trustee; Park National Corporation; and Vision Bancshares, Inc., Park National Corporation succeeded to and was substituted for Vision Bancshares, Inc. as “Guarantor”

4.4 Subordinated Debenture, dated December 28, 2007, in the principal amount of $25,000,000, issued by The Park National Bank to USB Capital Funding Corp. (incorporated herein by reference to Park National Corporation’s Current Report on Form 8-K dated and filed on January 2, 2008 (“Park’s January 2, 2008 Form 8-K”))

4.5 Warrant to Purchase 227,376 Shares of Common Stock (Common Shares) of Park National Corporation issued to the United States Department of the Treasury on December 23, 2008 (incorporated herein by reference to Exhibit 4.1 to Park’s December 23, 2008 Form 8-K)

4.6 Letter Agreement, dated December 23, 2008, including Securities Purchase Agreement – Standard Terms attached thereto as Exhibit A, between Park National Corporation and the United States Department of the Treasury (incorporated herein by reference to Exhibit 10.1 to Park’s December 23, 2008 Form 8-K) [NOTE: Annex A to Securities Purchase Agreement is not included therewith; filed as Exhibit 3.1 to Park’s December 23, 2008 Form 8-K and incorporated by reference at Exhibit 3.1(f) of this Annual Report on Form 10-K]

4.7 Note Purchase Agreement, dated December 23, 2009, between Park National Corporation and 38 accredited investors (incorporated herein by reference to Exhibit 4.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on December 28, 2009 (File No. 1-13006) (“Park’s December 28, 2009 Form 8-K”))

4.8 Form of 10% Subordinated Note due December 23, 2019 (incorporated herein by reference to Exhibit 4.2 to Park’s December 28, 2009 Form 8-K)

4.9 Form of Series A/Series B Common Share Warrant issued by Park National Corporation on December 10, 2010 (incorporated herein by reference to Exhibit 4.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on December 8, 2010 (File No. 1-13006) (“Park’s December 8, 2010 Form 8-K”))

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Note: The Series A Common Share Warrant expired on June 10, 2011 without being exercised and the Series B Common Share Warrant expired on December 10, 2011 without being exercised.

4.10 Agreement to furnish instruments and agreements defining rights of holders of long-term debt (filed herewith)

10.1† Summary of Base Salaries for Executive Officers of Park National Corporation (filed herewith)

10.2(a)† Split-Dollar Agreement, dated May 17, 1993, between William T. McConnell and The Park National Bank (incorporated herein by reference to Exhibit 10(f) to Park National Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 0-18772))

10.2(b)† Schedule identifying Split-Dollar Agreements covering executive officers or employees of The Park National Bank or one of its divisions who are also directors or executive officers of Park National Corporation, which Split-Dollar Agreements are identical to the Split-Dollar Agreement, dated May 17, 1993, between William T. McConnell and The Park National Bank (incorporated herein by reference to Exhibit 10.3(b) to Park National Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (File No. 1-13006) (“Park’s 2008 Form 10-K”))

10.3(a)† Description of Park National Corporation Supplemental Executive Retirement Benefits as in effect from and after February 18, 2008 (incorporated herein by reference to Exhibit 10.7(a) to Park’s 2008 Form 10-K)

10.3(b)† Supplemental Executive Retirement Benefits Agreement, made as of February 18, 2008, between Park National Corporation and David L. Trautman (incorporated herein by reference to Exhibit 10.1 to Park National Corporation’s Current Report on Form 8-K dated and filed February 19, 2008 (File No. 1-13006) (“Park’s February 19, 2008 Form 8-K”))

10.3(c)† Form of Amended and Restated Supplemental Executive Retirement Benefits Agreement, made as of February 18, 2008, between Park National Corporation and each of C. Daniel DeLawder, John W. Kozak and William T. McConnell (incorporated herein by reference to Exhibit 10.2 to Park’s February 19, 2008 Form 8-K)

10.4† Employment Agreement, made and entered into as of December 22, 1999, and the Amendment thereto, dated March 23, 2001, between The Security National Bank and Trust Co. (also known as Security National Bank and Trust Co.) and Harry O. Egger (incorporated herein by reference to Exhibit 10(e) to Park National Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2001 (File No. 1-13006))

10.5† Park National Corporation Stock Plan for Non-Employee Directors of Park National Corporation and Subsidiaries (incorporated herein by reference to Exhibit 10 to Park National Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 (File No. 1-13006))

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10.6† Summary of Certain Compensation for Directors of Park National Corporation (filed herewith)

10.7† Park National Corporation 2005 Incentive Stock Option Plan (incorporated herein by reference to Exhibit 10.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on April 20, 2005 (File No. 1-13006) (“Park’s April 20, 2005 Form 8-K”))

10.8† Form of Stock Option Agreement to be used in connection with the grant of incentive stock options under the Park National Corporation 2005 Incentive Stock Option Plan (incorporated herein by reference to Exhibit 10.2 to Park’s April 20, 2005 Form 8-K)

10.9 Subordinated Debenture Purchase Agreement, dated as of December 28, 2007, between The Park National Bank, as “Borrower,” and USB Capital Funding Corp., as “Lender” (incorporated herein by reference to Exhibit 10.1 to Park’s January 2, 2008 Form 8-K)

10.10(a)† Form of Split-Dollar Agreement, made and entered into effective as of December 28, 2007, covering Non-Employee Directors of Park National Corporation (incorporated herein by reference to Exhibit 10.2(a) to Park’s January 2, 2008 Form 8-K)

10.10(b)† Schedule identifying Non-Employee Directors of Park National Corporation covered by form of Split-Dollar Agreement, made and entered into effective as of December 28, 2007 (filed herewith)

10.11† Split-Dollar Agreement, made and entered into effective as of May 19, 2008, between The Park National Bank and David L. Trautman (incorporated herein by reference to Exhibit 10.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on May 20, 2008 (File No. 1-13006))

10.12(a)† Letter Agreement, dated July 20, 2009, between Park National Corporation and C. Daniel DeLawder (incorporated herein by reference to Exhibit 10.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on July 20, 2009 (File No. 1-13006) (“Park’s July 20, 2009 Form 8-K”))

10.12(b)† Letter Agreement, dated July 20, 2009, between Park National Corporation and David L. Trautman (incorporated herein by reference to Exhibit 10.2 to Park’s July 20, 2009 Form 8-K)

10.12(c)† Letter Agreement, dated July 20, 2009, between Park National Corporation and John W. Kozak (incorporated herein by reference to Exhibit 10.3 to Park’s July 20, 2009 Form 8-K)

10.13 Letter Agreement, dated December 7, 2010, by and between Park National Corporation and Rodman & Renshaw, LLC (incorporated herein by reference to Exhibit 10.1 to Park’s December 8, 2010 Form 8-K)

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10.14 Form of Securities Purchase Agreement – Common Shares and Warrants (incorporated herein by reference to Exhibit 10.2 to Park’s December 8, 2010 Form 8-K)

12 Computation of Ratios of Earnings to Fixed Charges and of Earnings to Fixed Charges and Preferred Share Dividends (filed herewith)

13 2011 Annual Report (not deemed filed except for portions thereof which are specifically incorporated by reference in this Annual Report on Form 10-K) (specified portions filed herewith)

14 Code of Business Conduct and Ethics, as amended January 23, 2012 and updated January 24, 2012 (filed herewith)

21 Subsidiaries of Park National Corporation (filed herewith)

23 Consent of Crowe Horwath LLP (filed herewith)

24 Powers of Attorney of Directors and Executive Officers of Park National Corporation (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 Certifications Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code – Principal Executive Officer and Principal Financial Officer (furnished herewith)

99.1 Certification Pursuant to Section 111(b)(4) of the Emergency Economic Stabilization Act of 2008 and 31 CFR § 30.15 -- Principal Executive Officer (filed herewith)

99.2 Certification Pursuant to Section 111(b)(4) of the Emergency Economic Stabilization Act of 2008 and 31 CFR § 30.15 -- Principal Financial Officer (filed herewith)

101 The following materials from Park National Corporation’s 2011 Annual Report and incorporated therefrom into Park National Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of December 31, 2011 and December 31, 2010; (ii) the Consolidated Statements of Income for the years ended December 31, 2011, 2010 and 2009; (iii) the Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2011, 2010 and 2009; (iv) the Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009; and (v) the Notes to Consolidated Financial Statements (furnished herewith)*

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* Pursuant to Rule 406T of SEC Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are furnished and not deemed filed or part of a registration statement or prospectus for purposes of Sections 11 and 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.

† Management contract or compensatory plan or arrangement.

(b)	Exhibits.
	The documents listed in Item 15(a)(3) are filed/furnished with this Annual Report on Form 10-K as exhibits or incorporated into this Annual Report on Form 10-K by reference.

(c)	Financial Statement Schedules.
	None

[Remainder of page intentionally left blank; signatures on following page]

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PARK NATIONAL CORPORATION
Date: February 29, 2012	By:	/s/ C. Daniel DeLawder
		C. Daniel DeLawder,
		Chairman of the Board and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on the 29^th day of February, 2012.

Name	Capacity
/s/ C. Daniel DeLawder C. Daniel DeLawder	Chairman of the Board, Chief Executive Officer and Director
/s/ David L. Trautman David L. Trautman	President, Secretary and Director
/s/ John W. Kozak John W. Kozak	Chief Financial Officer
/s/ Brady T. Burt Brady T. Burt	Chief Accounting Officer
/s/ Maureen Buchwald* Maureen Buchwald	Director
/s/ James J. Cullers* James J. Cullers	Director
/s/ Harry O. Egger* Harry O. Egger	Director
/s/ F. William Englefield IV* F. William Englefield IV	Director

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Name	Capacity
/s/ Stephen J. Kambeitz* Stephen J. Kambeitz	Director
/s/ William T. McConnell* William T. McConnell	Director
/s/ Timothy S. McLain* Timothy S. McLain	Director
/s/ John J. O’Neill* John J. O’Neill	Director
/s/ William A. Phillips* William A. Phillips	Director
/s/ Rick R. Taylor* Rick R. Taylor	Director
/s/ Sarah Reese Wallace* Sarah Reese Wallace	Director
/s/ Leon Zazworsky* Leon Zazworsky	Director

__________________________

* The above-named directors of the Registrant sign this Annual Report on Form 10-K by C. Daniel DeLawder, their attorney-in-fact, pursuant to Powers of Attorney signed by the above-named directors, which Powers of Attorney are filed with this Annual Report on Form 10-K as exhibits, in the capacities indicated and on the 29^th day of February, 2012.

By:	/s/ C. Daniel DeLawder
	C. Daniel DeLawder
	Chairman of the Board and Chief Executive Officer

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EX-2.2

Exhibit 2.2

Agreement and Plan of Merger

by and between

Vision Bank

and

SE Property Holdings, LLC

This Agreement and Plan of Merger (this “Plan of Merger”) is entered into as of this 25^th day of January, 2012, by and between Vision Bank, a Florida state-chartered banking corporation (“Vision Bank”), which has its principal office located at 2200 Stanford Road, Panama City, Florida 32405, and SE Property Holdings, LLC, a member-managed Ohio limited liability company (“SE LLC”), which has its principal office located at 50 North Third Street, Newark, Ohio 43055. In this Plan of Merger, Vision Bank and SE LLC are sometimes individually referred to as a “Constituent Entity” and collectively referred to as the “Constituent Entities.”

WHEREAS, each of Vision Bank and SE LLC is a wholly-owned subsidiary of Park National Corporation, an Ohio corporation (“Park”), which has its principal office located at 50 North Third Street, Newark, Ohio 43055; and

WHEREAS, Vision Bank has entered into that certain Purchase and Assumption Agreement, dated as of November 16, 2011 (the “Centennial P&A Agreement”), by and between Vision Bank and Park, on the one hand as “Seller”, and Home Bancshares, Inc. (“Home”) and its wholly-owned subsidiary Centennial Bank, an Arkansas state-chartered bank (“Centennial”), on the other hand as “Buyer”, pursuant to which Vision Bank is to sell substantially all of the operating assets and liabilities associated with Vision Bank to Centennial for a purchase price of $27.9 million; and

WHEREAS, under the terms of the Centennial P&A Agreement, Centennial will acquire all branch locations of Vision Bank including all real estate, leases and fixed assets associated with such offices; and Centennial will assume all of Vision Bank’s deposit accounts/liabilities; and

WHEREAS, under the terms of the Centennial P&A Agreement, Centennial will also purchase substantially all of Vision Bank’s performing loans, while Vision Bank is to retain all non-performing loans as well as an additional $56.5 million of loans (principal balance as of October 31, 2011) which Centennial did not wish to purchase as a result of their credit due diligence; and

WHEREAS, pursuant to that certain Loan Sale and Purchase Agreement, dated as of December 27, 2011 (the “PNB Agreement”), with The Park National Bank, the wholly-owned national bank subsidiary of Park (“PNB”), on December 28, 2011, Vision Bank sold, assigned, transferred and conveyed to PNB, and PNB purchased and accepted, all rights, title and interests of Vision Bank, as of December 28, 2011, in, to and under the “Loan Documents” (as defined in the PNB Agreement) set forth in Schedule A through Schedule F of the PNB Agreement for an aggregate purchase price of $7,467,293.04; and

WHEREAS, in conjunction with the transactions contemplated by the Centennial P&A Agreement and as permitted by 12 C.F.R. § 327.12(f), Vision Bank will transfer to Centennial the then current balance of the prepaid assessment paid by Vision Bank to the Federal Deposit Insurance Corporation (the “FDIC”) pursuant to 12 C.F.R. § 327.12 (the “FDIC Prepaid Assessment Balance”); and

WHEREAS, in connection with the consummation of the transactions contemplated by the Centennial P&A Agreement, Vision Bank proposes to resign as trustee under each of the trust relationships as to which Vision Bank exercises fiduciary or trust powers (the “Trust Relationships”) and it is contemplated that the person(s) having the power to appoint a successor trustee under each such Trust Relationship will appoint PNB to serve as successor trustee under such Trust Relationship; and

WHEREAS, as a result of Vision Bank’s resignation as trustee under each of the Trust Relationships in connection with the consummation of the transactions contemplated by the Centennial P&A Agreement, Vision Bank will no longer carry on any business as a fiduciary or trustee and will surrender, in accordance with Section 660.47 of Title XXXVIII of the Florida Statutes, the fiduciary/trust powers granted to Vision Bank by the Florida Office of Financial Regulation (the “Florida OFR”); and

WHEREAS, after the consummation of the transactions contemplated by the Centennial P&A Agreement, Vision Bank will no longer carry on a banking business, will not hold any deposit accounts/liabilities and will not have any offices; and, as a result, Vision Bank will relinquish the charter certificate of Vision Bank to the Florida OFR for cancellation as required by Florida OFR Regulation 69U-105.708 and become a Florida corporation without any authority to conduct a banking business; and

WHEREAS, upon consummation of the transactions contemplated by the Centennial P&A Agreement, Centennial will assume all of Vision Bank’s deposit accounts/liabilities and the insured status of Vision Bank will be terminated in accordance with the provisions of 12 C.F.R. § 307.2 on the date of the receipt by the FDIC of a Certificate of Total Assumption of Deposits from Vision Bank evidencing the assumption by Centennial of all of Vision Bank’s deposit accounts/liabilities; and

WHEREAS, following the consummation of the transactions contemplated by the Centennial P&A Agreement, the transfer by Vision Bank to Centennial of the FDIC Prepaid Assessment Balance, the resignation by Vision Bank as trustee under each of the Trust Relationships, the surrender by Vision Bank of the fiduciary/trust powers granted to Vision Bank by the Florida OFR, the relinquishment by Vision Bank of the charter certificate of Vision Bank to the Florida OFR and the certification to the FDIC that Centennial has assumed all of Vision Bank’s deposit accounts/liabilities and termination of Vision Bank’s insured status (collectively, the “Pre-Merger Events”), Vision Bank and SE LLC propose to merge, with SE LLC to be the surviving entity in the merger; and

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WHEREAS, as of January 18, 2012, Vision Bank is authorized to issue 50,000 shares of capital stock, each with a par value of $5.00, and had 23,200 shares of capital stock outstanding, all of which are held of record and beneficially by Park; and

WHEREAS, Park holds of record and beneficially all of the membership interest in SE LLC; and

WHEREAS, the Board of Directors of Vision Bank, by resolutions duly authorized and adopted by the vote of its members, has determined and declared it advisable and in the best interest of Vision Bank that Vision Bank merge with and into SE LLC in accordance with the terms and subject to the conditions set forth in this Plan of Merger; and

WHEREAS, the Board of Directors of Vision Bank has adopted this Plan of Merger on behalf of Vision Bank and recommended to Park, as the sole shareholder of Vision Bank, that this Plan of Merger be approved; and

WHEREAS, Park, in its capacity as the sole member of SE LLC, has, by resolutions duly authorized and adopted, determined and declared it advisable and in the best interest of SE LLC that Vision Bank merge with and into SE LLC in accordance with the terms and subject to the conditions set forth in this Plan of Merger and has adopted and approved this Plan of Merger on behalf of SE LLC;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements of the Constituent Entities contained herein, it is hereby agreed by and between Vision Bank and SE LLC that the terms of the merger of Vision Bank with and into SE LLC contemplated by this Plan of Merger and the mode of carrying such merger into effect shall be as follows:

Section 1. Merger of Vision Bank with and into SE LLC. At the Effective Time of the Merger (as defined in Section 11 of this Plan of Merger), Vision Bank shall be merged with and into SE LLC (the “Merger”). SE LLC shall be the surviving entity in the Merger (the “Surviving Entity”) and shall continue to exist as a limited liability company under the laws of the State of Ohio. At the Effective Time of the Merger, the separate existence of Vision Bank shall cease.

Section 2. Name of the Surviving Entity. The name of the Surviving Entity in the Merger shall be SE Property Holdings, LLC.

Section 3. Business and Location of Principal Office of Surviving Entity. The Surviving Entity shall be permitted to engage in any lawful act or activity for which limited liability companies may be formed under Chapter 1705 of the Ohio Revised Code (the “Ohio LLC Act”) and in which subsidiaries of a registered bank holding company may engage under the Federal Reserve Act and the regulations promulgated by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) thereunder and under the applicable laws, rules and regulations of each of the states in which the Surviving Entity proposes to conduct business. The Surviving Entity’s principal office shall be located at 50 North Third Street, City of Newark, County of Licking, State of Ohio 43055.

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Section 4. Effects of the Merger.

(a) At the Effective Time of the Merger, the Merger shall have the effects prescribed by the applicable provisions of the Florida Statutes and the applicable provisions of the Ohio LLC Act.

(b) The Constituent Entities intend that the Merger be treated as a tax-free liquidation in accordance with Sections 332 and 337 of the Internal Revenue Code of 1986, as amended, and the United States Treasury Department regulations promulgated thereunder.

(c) The title to all assets and real estate and other property, or any interest therein, owned by Vision Bank or by SE LLC shall, by virtue of the Merger and without any deed or other transfer, be vested in the Surviving Entity without reversion or impairment. From and after the Effective Time of the Merger, the Surviving Entity shall be responsible and liable for all the liabilities and obligations of Vision Bank and SE LLC, including liabilities, if any, arising out of appraisal rights with respect to the Merger under applicable laws, rules and regulations. Any claim existing or action or proceeding pending by or against Vision Bank or SE LLC may be continued and prosecuted to judgment with right of appeal as if the Merger did not occur or the Surviving Entity may be substituted in the action or proceeding for Vision Bank or SE LLC, as appropriate. Neither the rights of creditors nor any liens upon the property of Vision Bank or SE LLC shall be impaired by the Merger.

(d) If, at any time after the Effective Time of the Merger, the Surviving Entity shall consider or be advised that any further conveyances, assignments, transfers, deeds or other instruments or any other acts are necessary or desirable (i) to vest, perfect, confirm or record, in the Surviving Entity, title to and possession of any property or right of Vision Bank or SE LLC, acquired as a result of the Merger, or (ii) otherwise to carry out the purposes of this Plan of Merger, Vision Bank, SE LLC and their respective officers, directors and member, as appropriate, shall execute and deliver all such proper conveyances, assignments, transfers, deeds and other instruments and do all such acts as are necessary or proper to vest, perfect or confirm title to, and possession of, such property or right in the Surviving Entity and otherwise to carry out the purposes of this Plan of Merger; and the proper officers and the member of the Surviving Entity are fully authorized in the name of Vision Bank or SE LLC, or otherwise, to take any and all such action.

Section 5. Conversion of Shares and Membership Interests.

(a) At the Effective Time of the Merger, each of the 22,300 shares of capital stock, each with a par value of $5.00, of Vision Bank, issued and outstanding and held by Park as the sole shareholder of Vision Bank immediately prior to the Effective Time of the Merger shall, by virtue of the Merger and without any action on the part of Vision Bank or Park, be extinguished and shall cease to exist, and shall not be converted into interests (membership or otherwise) in or obligations of the Surviving Entity or the right to receive evidences of indebtedness, other securities, cash, rights or any other property.

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(b) At the Effective Time of the Merger, all of the membership interest in SE LLC held by Park immediately prior to the Merger shall, by virtue of the Merger and without any action on the part of Park or SE LLC, be converted into and constitute all of the membership interest in the Surviving Entity.

Section 6. Articles of Organization. The Articles of Organization of SE LLC, as in effect immediately prior to the Effective Time of the Merger, shall be the articles of organization of the Surviving Entity until amended in accordance with applicable law.

Section 7. Operating Agreement. The Operating Agreement of SE LLC, as in effect immediately prior to the Effective Time of the Merger, shall be the operating agreement of the Surviving Entity until amended in accordance with applicable law and the provisions of the articles of organization of the Surviving Entity.

Section 8. Officers. The officers of SE LLC immediately prior to the Effective Time of the Merger shall continue to serve as the officers of the Surviving Entity from and after the Effective Time of the Merger, each to hold office until changed in accordance with applicable law and the provisions of the articles of organization or the operating agreement of the Surviving Entity.

Section 9. Termination. This Plan of Merger may be terminated by the mutual consent of: (a) the Board of Directors of Vision Bank; and (b) Park, in its capacity as the sole member of SE LLC.

Section 10. Vision Bank Shareholder Vote. This Plan of Merger shall be approved by Park, in its capacity as the sole shareholder of Vision Bank.

Section 11. Effective Time of Merger. The Merger shall become effective on the date that the appropriate Certificate of Merger is filed with the Secretary of State of the State of Ohio and appropriate Articles of Merger are filed with the Florida Department of State, all in accordance with the applicable provisions of the Ohio LLC Act and the applicable provisions of the Florida Statutes (the “Effective Time of the Merger”).

Section 12. Service of Process. SE LLC, as the Surviving Entity in the Merger, hereby consents to be sued and served with process in the State of Florida in any proceeding in the State of Florida to enforce against the Surviving Entity any obligation of Vision Bank, or any obligation of the Surviving Entity arising from the Merger, and hereby agrees to the irrevocable appointment of the Secretary of State of the State of Florida as the agent of the Surviving Entity for service of process in any such proceeding.

Section 13. Counterparts. This Plan of Merger may be executed in multiple counterparts, each of which shall be deemed to be a duplicate original, but all of which taken together shall be deemed to constitute a single agreement and plan of merger.

-5-

IN WITNESS WHEREOF, Vision Bank and SE Property Holdings, LLC have caused this Agreement and Plan of Merger to be executed by their duly authorized officers this 25th day of January, 2012.

ATTEST:	VISION BANK
By:/s/ Nancy McCoy	By:/s/ Joey W. Ginn
Printed Name: Nancy McCoy	Printed Name: Joey W. Ginn
Title: Executive Assistant	Title: Chairman & CEO
ATTEST:	SE PROPERTY HOLDINGS, LLC
By: /s/ Brady Burt	By: /s/ John W. Kozak
Printed Name: Brady Burt	Printed Name: John W. Kozak
Title:Secretary	Title: VP and Treasurer

-6-

STATE OF FLORIDA	)
	) SS:
COUNTY OF BAY	)

BE IT REMEMBERED that on this 25^th day of January, 2012, personally came before me, the undersigned, Notary Public in and for the county and state aforesaid, Joey W. Ginn and ______________, the Chairman and CEO and the __________, respectively, of Vision Bank, a Florida corporation and one of the entities described in and which executed the foregoing Agreement and Plan of Merger, and they duly executed said Agreement and Plan of Merger before me and acknowledged said Agreement and Plan of Merger to be the agreement and plan of merger of said entity.

IN WITNESS WHEREOF, the above individuals have signed these presents and I have hereunto affixed my official hand and seal, on the day and date first hereinabove written.

	/s/ Nancy McCoy
	NOTARY PUBLIC
(NOTARIAL SEAL)

-7-

STATE OF OHIO	)
	) SS:
COUNTY OF LICKING	)

BE IT REMEMBERED that on this 25^th day of January, 2012, personally came before me, the undersigned, Notary Public in and for the county and state aforesaid, John Kozak and Brady Burt, the VP/Treasurer and the Secretary, respectively, of SE Property Holdings, LLC, an Ohio limited liability company and one of the entities described in and which executed the foregoing Agreement and Plan of Merger, and they duly executed said Agreement and Plan of Merger before me and acknowledged said Agreement and Plan of Merger to be the agreement and plan of merger of said entity.

IN WITNESS WHEREOF, the above individuals have signed these presents and I have hereunto affixed my official hand and seal, on the day and date first hereinabove written.

	/s/ Amy M. Adams
	NOTARY PUBLIC
(NOTARIAL SEAL)

-8-

EX-4.10

Exhibit 4.10

PARK NATIONAL CORPORATION

50 North Third Street

Post Office Box 3500

Newark, Ohio 43058-3500

(740) 349-8451

www.parknationalcorp.com

February 29, 2012

United States Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

Re:	Park National Corporation
	Commission File Number: 1-13006
	Annual Report on Form 10-K for the Fiscal Year
	Ended December 31, 2011

Ladies and Gentlemen:

Park National Corporation, an Ohio corporation (“Park”), is today filing with the Securities and Exchange Commission (the “SEC”) the Annual Report on Form 10-K of Park for the fiscal year ended December 31, 2011 (“Park’s 2011 Form 10-K”).

Neither (i) Park nor (ii) any of Park’s consolidated subsidiaries has outstanding any instrument or agreement with respect to its long-term debt under which the total amount of long-term debt authorized exceeds 10% of the total assets of Park and Park’s subsidiaries on a consolidated basis. In accordance with the provisions of Item 601(b)(4)(iii) of SEC Regulation S-K, Park hereby agrees to furnish to the SEC, upon request, a copy of each instrument or agreement defining (i) the rights of holders of long-term debt of Park or (ii) the rights of holders of long-term debt of a consolidated subsidiary of Park, in each case which is not being filed or incorporated by reference as an exhibit to Park’s 2011 Form 10-K.

Very truly yours,

PARK NATIONAL CORPORATION

/s/ John W. Kozak

John W. Kozak

Chief Financial Officer

EX-10.1

Exhibit 10.1

Summary of Base Salaries

for

Executive Officers of Park National Corporation

On December 16, 2011, the Compensation Committee of the Board of Directors of Park National Corporation (“Park”) approved the base salaries for the fiscal year ending December 31, 2012, for each of the executive officers of Park: (a) C. Daniel DeLawder, Chairman of the Board and Chief Executive Officer of Park and The Park National Bank, a subsidiary of Park; (b) David L. Trautman, President and Secretary of Park and President of The Park National Bank; and (c) John W. Kozak, Chief Financial Officer of Park and Senior Vice President and Chief Financial Officer of The Park National Bank. Those base salaries are:

* C. Daniel DeLawder -- $773,525

* David L. Trautman -- $563,250

* John W. Kozak -- $414,455

EX-10.6

Exhibit 10.6

Summary of Certain Compensation for

Directors of Park National Corporation

Annual Retainers and Meeting Fees

Each director of Park National Corporation (“Park”) who is not an employee of Park or one of Park’s subsidiaries (a “non-employee director”) receives, on the date of the regular meeting of the Park Board of Directors held during the fourth fiscal quarter, an annual retainer in the form of 120 common shares of Park awarded under the Park National Corporation Stock Plan for Non-Employee Directors of Park National Corporation and Subsidiaries (the “Directors’ Stock Plan”).

Each non-employee director receives $1,000 for each meeting of the Park Board of Directors attended and $400 for each meeting of a committee of the Park Board of Directors attended. If the date of a meeting of the full Board of Directors is changed from that provided for by resolution of the Board and a non-employee director is not able to attend the rescheduled meeting, he or she receives the meeting fee as though he or she attended the meeting.

In addition, each member of the Executive Committee of the Park Board of Directors receives a $2,500 annual cash retainer and each member of the Audit Committee of the Park Board of Directors (other than the Chair) receives a $2,000 annual cash retainer. The Chair of the Audit Committee receives a $5,000 annual cash retainer.

Each non-employee director of Park also serves on the board of directors of The Park National Bank, the national bank subsidiary of Park (“PNB”), or on the advisory board of one of PNB’s divisions, and receives, on the date of the regular meeting of the Park Board of Directors held during the fourth fiscal quarter, an annual retainer in the form of 60 common shares of Park awarded under the Directors’ Stock Plan and, in some cases, a specified amount of cash for such service as well as fees for attendance at meetings of the board of directors of PNB or the advisory board of the applicable division of PNB (and committees of the respective boards).

In addition to the annual retainers and meeting fees discussed above, non-employee directors also receive reimbursement of all reasonable travel and other expenses of attending board and committee meetings.

C. Daniel DeLawder, Harry O. Egger, William T. McConnell, William A. Phillips and David L. Trautman receive no compensation for: (a) serving as a member of the Board of Directors of Park; (b) serving as a member of the board of directors of PNB or the advisory board of one of its divisions; or (c) serving as a member of any committee of the respective boards.

Other Compensation

William T. McConnell is employed by PNB in a non-executive officer capacity. In such capacity, he received the amount of $33,000 during the fiscal year ended December 31, 2011 (the “2011 fiscal year”). William A. Phillips is employed by the Century National Bank Division of PNB, in a non-executive officer capacity. In such capacity, he received the amount of $33,000 during the 2011 fiscal year. Harry O. Egger is employed by the Security National Bank Division of PNB in a non-executive officer capacity. In such capacity, Mr. Egger received $33,000 during the 2011 fiscal year.

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EX-10.10(B)

Exhibit 10.10(b)

Schedule identifying

Non-Employee Directors of Park National Corporation

covered by

Split-Dollar Agreements, made and entered into effective as of December 28, 2007

The following directors of Park National Corporation (“Park”) are covered by Split-Dollar Agreements (the “Split-Dollar Agreements”) as identified below, which Split-Dollar Agreements are identical to the form of Split-Dollar Agreement, made and entered into effective as of December 28, 2007, filed as Exhibit 10.2(a) to Park’s Current Report on Form 8-K dated and filed January 2, 2008 (File No. 1-13006):

Name of Director	Subsidiary of Park which is a Party to Split-Dollar Agreement	Date of Split- Dollar Agreement
Maureen H. Buchwald	The Park National Bank (as successor by merger to The First-Knox National Bank of Mount Vernon)	December 28, 2007
James J. Cullers	The Park National Bank (as successor by merger to The First-Knox National Bank of Mount Vernon)	December 28, 2007
F. William Englefield IV	The Park National Bank	December 28, 2007
John J. O’Neill	The Park National Bank	December 28, 2007
Rick Taylor	The Park National Bank (as successor by merger to The Richland Trust Company)	December 28, 2007
Leon Zazworsky	The Park National Bank	December 28, 2007

EX-12

Exhibit 12

Computation of Ratio of Earnings to Fixed Charges

The following table shows the ratio of earnings to fixed charges for Park National Corporation, which includes our subsidiaries, on a consolidated basis:

	Year Ended December 31,
	2011		2010		2009		2008		2007
Ratio of earnings to fixed charges (1):
Excluding Interest on Deposits		4.65		3.47		4.20		1.77		2.12
Including Interest on Deposits		2.96		2.04		2.02		1.26		1.31

(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	$	116,555,000	$	74,737,000	$	97,135,000	$	35,719,000	$	52,677,000
Fixed Charges:
Interest on deposits		27,655,000		41,965,000		64,620,000		89,892,000		121,021,000
Borrowings and long-term debt		31,241,000		29,508,000		29,579,000		45,574,000		46,126,000
Rent expense interest factor (1/3)		662,843		721,687		794,866		801,147		731,723
Total fixed charges:
Including interest on deposits	$	59,617,687	$	72,194,687	$	94,993,866	$	136,267,147	$	167,878,723
Excluding interest on deposits	$	31,962,687	$	30,229,687	$	30,373,866	$	46,375,147	$	46,857,723

1

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 National Corporation, which includes our subsidiaries, on a consolidated basis:

	Year Ended December 31,
	2011		2010		2009		2008		2007
Ratio of earnings to fixed charges
and preferred dividends (1):
Excluding Interest on Deposits		3.89		2.94		3.52		1.77		2.12
Including Interest on Deposits		2.72		1.93		1.94		1.26		1.31

(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	$	116,555,000	$	74,737,000	$	97,135,000	$	35,719,000	$	52,677,000
Fixed Charges:
Interest on deposits		27,655,000		41,965,000		64,620,000		89,892,000		121,021,000
Borrowings and long-term debt		31,241,000		29,508,000		29,579,000		45,574,000		46,126,000
Preferred dividends and accretion		8,365,714		8,295,714		8,231,429		202,857
Rent expense interest factor (1/3)		662,843		721,687		794,866		801,147		731,723
Total fixed charges:
Including interest on deposits	$	67,924,557	$	80,490,401	$	103,225,295	$	136,470,004	$	167,878,723
Excluding interest on deposits	$	40,269,557	$	38,525,401	$	38,605,295	$	46,578,004	$	46,857,723

EX-13

FINANCIAL REVIEW

This financial review presents management's discussion and analysis of the financial condition and results of operations for Park National Corporation and its subsidiaries ("Park" or the "Corporation").  This discussion should be read in conjunction with the consolidated financial statements and related notes and the five-year summary of selected financial data.  Management’s discussion and analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance.  The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties.  Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.  Risks and uncertainties that could cause actual results to differ materially include, without limitation: Park’s ability to execute its business plan successfully and within the expected timeframe; deterioration in the asset value of our loan portfolio may be worse than expected due to a number of factors, such as adverse changes in economic conditions that impair the ability of borrowers to repay their loans, the underlying collateral could prove less valuable than assumed and cash flows may be worse than expected; Park’s ability to sell OREO properties at anticipated prices; general economic and financial market conditions, and weakening in the economy, specifically the real estate market and credit markets, either nationally or in the states in which Park and its subsidiaries do business, may be worse than expected which could decrease the demand for loan, deposit and other financial services and increase loan delinquencies and defaults; changes in interest rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our consolidated balance sheet; changes in consumer spending, borrowing and saving habits; our liquidity requirements could be adversely affected by changes in our assets and liabilities; competitive factors among financial institutions may increase significantly, including product and pricing pressures and Park’s ability to attract, develop and retain qualified bank professionals; the nature, timing and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and its subsidiaries, including changes in laws and regulations concerning taxes, accounting, banking, securities and other aspects of the financial services industry, specifically the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board (the “FASB”), the Securities and Exchange Commission (the “SEC”), the Public Company Accounting Oversight Board and other regulatory agencies, and the accuracy of our assumptions and estimates used to prepare our financial statements; the effect of fiscal and governmental policies of the United States federal government; the adequacy of our risk management program; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors and other service providers, including as a result of cyber attacks; demand for loans in the respective market areas served by Park and its subsidiaries; and other risk factors relating to our industry as detailed from time to time in Park’s reports filed with the SEC including those described in “Item 1A. Risk Factors” of Part I of Park’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011.  Undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this Annual Report.  Park does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.

RESTATEMENT OF FINANCIAL STATEMENTS

In a Current Report on Form 8-K filed on January 31, 2012 (the “January 31, 2012 Form 8-K”), Park announced that on January 27, 2012, management determined that (i) Park’s previously issued audited consolidated financial statements incorporated by reference in Park’s Annual Report on Form 10-K for the year ended December 31, 2010, filed on February 28, 2011, and (ii) Park’s unaudited condensed consolidated financial statements included in Park’s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2011, June 30, 2011, and September 30, 2011 should be restated.

The accounting treatment giving rise to the restatement was the inclusion of estimated future cash flows supporting the allowance for loan losses related to certain impaired commercial loans. For the year ended December 31, 2010, as part of Park’s process to measure impairment on certain impaired commercial loans at Vision Bank, management had relied on expected future cash flows from guarantors, with some of whom we were in litigation.  Management determined that reliance on expected future cash flows, which may require protracted litigation to actually be received, is inappropriate given the difficulty in obtaining objective verifiable evidence supporting a conclusion as to the amount and timing of the expected cash flows. GAAP requires that our assumptions be “reasonable and supportable” and the facts and circumstances around the existence of protracted litigation make this assumption more difficult to support.

The restatement also reflected certain OREO devaluations and additional loan loss provisions that were not related to guarantor support.  These expense items were related to valuation issues identified at December 31, 2010, where management utilized (i) the work of a third-party contractor, which was not a licensed appraiser, when calculating the fair value of collateral for certain impaired loans and the fair value of certain OREO held by Vision Bank, and management did not have sufficient documentation to support the estimates of this third-party contractor, and (ii) internal estimates of collateral value when calculating specific reserves for certain impaired loans when, at times, such internal estimates were outdated.  The impact was to reverse provisions for loan losses and OREO devaluations originally recorded in 2011 and recognize these provisions for loan losses and OREO devaluations in the restated audited consolidated financial statements for the year ended December 31, 2010.  Please see the following tables for a summary of the impact on Park’s income statement and balance sheet for the year ended December 31, 2010 and the nine months ended September 30, 2011 from the restatement.

On February 28, 2012, Park amended its previously filed 2010 Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011 to report the changes set forth above. The following discussion and impact is included again to assist in understanding those changes.

1

Table 1 - Restatement Impact on Income Statement
For the year ended December 31, 2010
(in thousands)	As amended in the Form 10-K/A		As originally filed		Change
Net interest income	$	274,044	$	274,044		-----
Provision for loan losses		87,080		64,902		22,178
Fee income		63,016		65,632		(2,616	)
Security gains		11,864		11,864		-----
Operating expenses		187,107		187,107		-----
Income before taxes	$	74,737	$	99,531	$	(24,794	)
Income taxes		16,636		25,314		(8,678	)
Net income	$	58,101	$	74,217	$	(16,116	)

Table 2 - Restatement Impact on Income Statement
For the nine months ended September 30, 2011
(in thousands)	As amended in the Form 10-Q/A		As originally filed		Change
Net interest income	$	206,955	$	206,955		-----
Provision for loan losses		43,054		55,925		(12,871	)
Fee income		48,195		43,334		4,861
Security gains		25,462		25,462		-----
Operating expenses		138,952		138,952		-----
Income before taxes	$	98,606	$	80,874	$	17,732
Income taxes		27,076		20,870		6,206
Net income	$	71,530	$	60,004	$	11,526

Table 3 - Restatement Impact on Balance Sheet
at December 31, 2010
(in thousands)	As amended in the Form 10-K/A		As originally filed		Change
Allowance for loan losses	$	143,575	$	121,397	$	22,178
Net loans		4,589,110		4,611,288		(22,178	)
Other real estate owned		41,709		44,325		(2,616	)
Other assets		148,852		140,174		8,678
Total assets		7,282,261		7,298,377		(16,116	)
Retained Earnings		406,342		422,458		(16,116	)
Total stockholders' equity		729,708		745,824		(16,116	)
Total liabilities and stockholders' equity		7,282,261		7,298,377		(16,116	)

2

Table 4 - Restatement Impact on Balance Sheet
at September 30, 2011
(in thousands)	As amended in the Form 10-Q/A		As originally filed		Change
Allowance for loan losses	$	107,310	$	100,248	$	7,062
Net loans		4,573,265		4,580,327		(7,062	)
Other real estate owned		46,911		46,911		-
Other assets		163,973		161,501		2,472
Total assets		7,095,098		7,099,688		(4,590	)
Retained Earnings		430,121		434,711		(4,590	)
Total stockholders' equity		755,053		759,643		(4,590	)
Total liabilities and stockholders' equity		7,095,098		7,099,688		(4,590	)

SALE OF VISION BANK

On November 16, 2011, Park and Vision Bank (“Vision”) entered into a Purchase and Assumption Agreement (the “Purchase Agreement”) with Home BancShares, Inc (“Home”) and its wholly-owned subsidiary Centennial Bank, an Arkansas state-chartered bank (“Centennial”), to sell substantially all of the performing loans, operating assets and liabilities associated with Vision to Centennial for a purchase price of $27.9 million.

Under the terms of the Purchase Agreement, Centennial will purchase the real estate and other assets described in the Purchase Agreement which are used in the banking business conducted by Vision at its eight offices in Baldwin County, Alabama and its nine offices in the Florida panhandle counties of Bay, Gulf, Okaloosa, Santa Rosa and Walton.  Centennial will assume Vision’s obligations relating to all of Vision’s deposit accounts, which had a balance of approximately $533 million at December 31, 2011.

Centennial will purchase performing loans, which had an unpaid principal balance of about $369 million at December 31, 2011.   These loans are shown on Park’s balance sheet as assets held for sale. Vision will retain all of the non-performing loans and certain performing loans under the terms of the Purchase Agreement.  As of December 31, 2011, the nonperforming loans totaled approximately $101 million and the performing loans totaled approximately $23 million.  Under the terms of the Purchase Agreement, the loans being acquired by Centennial will be sold by Vision at a discount of $13.1 million. Prior to the transfer to assets held for sale, Vision Bank’s allowance for loan losses totaled $23.8 million at December 31, 2011.  Upon the transfer, $13.1 million was transferred out of the allowance for loan losses with the related loans that moved to assets held for sale.  Management expects that the remaining loans at Vision Bank will be charged down by the remaining balance of the allowance for loan losses of $10.7 million prior to transfer to SE Property Holdings, LLC (“SE, LLC”).  Vision Bank will be merged into SE, LLC, a wholly-owned subsidiary of Park, following the closing of the transaction and the Florida banking charter will be surrendered to the state of Florida’s Office of Financial Regulation.

On February 16, 2012, Park completed the sale of Vision Bank as contemplated in the Purchase Agreement.  Park recognized a pre-tax gain, net of expenses directly related to the sale, of approximately $22 million.

OVERVIEW

Net income for 2011 was $82.1 million compared to $58.1 million in 2010 and $74.2 million in 2009.  As previously discussed, net income for 2010 was restated and decreased by $16.1 million as a result of an additional loan loss provision of $22.2 million and an increase in OREO devaluations of $2.6 million at Vision Bank for 2010.  The improvement in net income in 2011 was primarily due to a reduction in the net loss at Vision Bank.  The net loss at Vision Bank was $22.5 million in 2011, compared to a net loss of $45.4 million in 2010 and a net loss of $30.1 million in 2009.

Diluted earnings per common share were $4.95, $3.45 and $4.82 for 2011, 2010 and 2009, respectively.  Diluted earnings per common share for 2010 was originally reported as $4.51.

3

The following tables show the components of net income for 2011, 2010 and 2009 for Park National Corporation and its wholly owned subsidiaries. The subsidiaries that will be reviewed in the tables are The Park National Bank (“PNB”), Vision Bank, Guardian Financial Services Company (“GFSC”) and the Parent Company for Park.  We have also included some summary information on the balance sheet.

Table 5 - PNB – Summary Income Statement For the years ended December 31,
(In thousands)	2011		2010		2009
Net interest income	$	236,282	$	237,281	$	236,107
Provision for loan losses		30,220		23,474		22,339
Fee income		67,348		68,648		75,430
Security gains		23,634		11,864		7,340
Operating expenses		146,235		144,051		148,048
Income before taxes		150,809		150,268		148,490
Federal income taxes		43,958		47,320		47,032
Net income	$	106,851	$	102,948	$	101,458

Balances at December 31,
(In thousands)	2011		2010		2009
Assets	$	6,281,747	$	6,495,558	$	6,182,257
Loans		4,172,424		4,074,775		3,950,599
Deposits		4,611,646		4,622,693		4,670,113

Net income for PNB exceeded $100 million for each of the past three years.  Excluding the after-tax impact of security gains, net income was $91.5 million in 2011, compared to $95.2 million in 2010 and $96.7 million in 2009.  The decrease in net income excluding the after-tax impact of security gains in 2011, compared to 2010, was primarily due to an increase in the provision for loan losses of $6.7 million or 28.7%.  This increase was largely due to an increase in the provision for loan losses pertaining to participation loans that PNB had purchased from Vision Bank in 2007 and 2008.  The loan loss provision for those participation loans was $11.1 million in 2011.  Management expects a significant reduction in the provision for loan losses at PNB in 2012 as the old participation loans with Vision Bank have largely been written down to current appraised values, less anticipated selling costs.  Management estimates that net income excluding the after-tax impact of security gains will be approximately $93 million for PNB in 2012.  The projected reduction in the provision for loan losses of about $14 million is expected to be partially offset by a decrease in net interest income of $5 million and an increase in operating expenses of about $5 million.

Table 6 - Vision Bank – Summary Income Statement For the years ended December 31,
(In thousands)	2011			2010 - Restated			2009
Net interest income	$	27,078		$	27,867		$	25,634
Provision for loan losses		31,052			61,407			44,430
Fee income		1,422			(6,024	)		(2,047	)
Security gains		5,195			-			-
Operating expenses		31,379			31,623			28,091
Loss before taxes	$	(28,736	)	$	(71,187	)	$	(48,934	)
State income taxes		6,088			(1,161	)		(2,461	)
Federal income taxes		(12,298	)		(24,612	)		(16,363	)
Net loss	$	(22,526	)	$	(45,414	)	$	(30,110	)

Balances at December 31,
(In thousands)	2011		2010 - Restated		2009
Assets	$	650,935	$	791,945	$	897,981
Assets held for sale		382,462		-		-
Loans		492,927		640,580		677,018
Deposits		532,630		633,432		688,900
Liabilities held for sale		536,186		-		-

4

The financial results for Vision Bank were very poor for each of the past three years.  Real estate values in the markets in which Vision Bank operates in Alabama and Florida experienced sharp declines in value in 2007 and 2008.  A very high percentage of the Vision Bank loan portfolio was collateralized by real estate.  Due to the sudden and sharp decline in real estate values, these real estate loans became under-collateralized and the borrowers began experiencing financial difficulties.  As a result, Vision Bank has had to record an extraordinarily high provision for loan losses in each of the past three years.  Additionally, devaluations and losses on the sale of other real estate owned are included in fee income.  Fee income was negative in 2010 and 2009.

During the fourth quarter of 2011, management recorded state income tax expense of $6.1 million at Vision Bank to write off the state tax net operating loss carryforward.  With the pending sale of Vision Bank in the first quarter of 2012, this tax asset would not be able to be realized and needed to be written off.

As previously discussed, Vision Bank is being sold during the first quarter of 2012.  We expect that the operation of Vision Bank during the first quarter of 2012 will result in a small loss of about $3 million in 2012, prior to the expected pre-tax gain resulting from the sale to Centennial.

Table 7 - GFSC –Summary Income Statement For the years ended December 31,
(In thousands)	2011		2010		2009
Net interest income	$	8,693	$	7,611	$	7,010
Provision for loan losses		2,000		2,199		2,052
Fee income		-		2		3
Security gains		-		-		-
Operating expenses		2,506		2,326		2,264
Income before taxes	$	4,187	$	3,088	$	2,697
Federal income taxes		1,466		1,082		945
Net income	$	2,721	$	2,006	$	1,752

Balances at December 31,
(In thousands)	2011		2010		2009
Assets	$	46,682	$	43,209	$	38,606
Loans		47,111		43,714		38,550
Deposits		8,013		7,062		5,100

GFSC is a small consumer finance company that was started in 1999 with a $300,000 capital investment by Park.  GFSC is very well managed and is expected to earn $3 million in 2012.

Table 8 - Parent Company - Summary Income Statement For the years ended December 31,
(In thousands)	2011			2010			2009
Net interest income	$	1,180		$	1,285		$	4,740
Provision for loan losses		-			-			-
Fee income		(2,689	)		389			464
Security gains		-			-			-
Operating expenses		8,196			9,106			10,322
Income (loss) before taxes	$	(9,705	)	$	(7,432	)	$	(5,118	)
Federal income taxes		(4,799	)		(5,993	)		(6,210	)
Net income (loss)	$	(4,906	)	$	(1,439	)	$	1,092

The above table shows the summary results for Park’s Parent Company, which includes SE, LLC, the non-banking subsidiary of Park’s Parent Company, which holds other real estate owned (“OREO”) purchased from Vision Bank since March 2011.

5

The loss at the Parent Company increased by $3.5 million in 2011 to $4.9 million, compared to a $1.4 million loss in 2010.  The increase in the loss was primarily due to devaluations and losses from the sale of OREO acquired from Vision Bank. These charges caused other fee income to be a loss of $2.7 million in 2011.

After the sale of Vision Bank was completed on February 16, 2012, Vision Bank merged into SE, LLC and become part of Park’s Parent Company.  Beginning in the first quarter of 2012, SE, LLC will become a separate segment for financial reporting purposes.  Approximately $110 million of loans became part of SE, LLC, after the sale of Vision Bank.  The servicing and collection of these loans will add additional expenses to the Parent Company.  Management estimates that the loss at the Parent Company will increase by approximately $5 million in 2012 and be about $10 million, excluding the gain from the sale of Vision Bank.  The pre-tax gain from the sale of Vision Bank is estimated to be approximately $22 million, net of anticipated expenses directly related to the sale, which results in an after-tax gain of approximately $14.3 million.  This gain will be recognized at Vision Bank immediately prior to its merger into SE, LLC.  Overall, including the gain from the sale of Vision Bank, we expect the Parent Company to earn about $4 million in 2012.

Table 9 - Park – Summary Income Statement For the years ended December 31,
(In thousands)	2011		2010 – Restated			2009
Net interest income	$	273,234	$	274,044		$	273,491
Provision for loan losses		63,272		87,080			68,821
Fee income		66,081		63,016			73,850
Security gains		28,829		11,864			7,340
Operating expenses		188,317		187,107			188,725
Income before taxes	$	116,555	$	74,737		$	97,135
State income taxes		6,088		(1,161	)		(2,461	)
Federal income taxes		28,327		17,797			25,404
Net income	$	82,140	$	58,101		$	74,192

Balances at December 31,
(In thousands)	2011		2010 – Restated		2009
Assets	$	6,972,245	$	7,282,261	$	7,040,329
Assets held for sale (1)		382,462		-		-
Loans		4,317,099		4,732,685		4,640,432
Deposits		4,465,114		5,095,420		5,188,052
Liabilities held for sale (2)		536,186		-		-
(1)The assets held for sale represent the loans and other assets at Vision Bank that will be sold in the first quarter of 2012.      (2)The liabilities held for sale represent the deposits and other liabilities at Vision Bank that will be sold in the first quarter of 2012.

Management expects a significant improvement in net income in future years, because of the sale of Vision Bank in the first quarter of 2012.  Over the past three years, Vision Bank had aggregate net losses of $98.0 million.   Management is forecasting that Park’s net income in 2012 will be approximately $97 million.  This estimate is based on projected earnings of $93 million for PNB, $3 million for GFSC, $4 million for the Parent Company and a loss of $3 million at Vision Bank, before Vision Bank is merged with and into the SE, LLC.  Forecasted net income for 2012 certainly benefits from the projected after-tax gain from the sale of Vision Bank of approximately $14.3 million. However, Park’s earnings will benefit in future years as the remaining loans from Vision Bank are collected.  Specifically, management expects Park’s Parent Company will return to break-even net income when all of the old Vision Bank assets have been disposed.

SUMMARY DISCUSSION OF OPERATING RESULTS FOR PARK

A year ago, Park’s management projected that net interest income would be $268 million to $278 million in 2011.  The actual results in 2011 were $273.2 million, right in the middle of the estimated range.  Park’s management projected that the average interest earning assets for 2011 would be approximately $6,550 million.  The actual average interest earning assets for the year were $6,641 million, 1.4% higher than the projected balance.  Park’s forecast for the net interest margin in 2011 was a range of 4.10% to 4.20%.  The actual results for the year were 4.14%, slightly below the middle of the estimated range.

Park’s management also projected a year ago that the provision for loan losses would be $47 million to $57 million in 2011.  The actual provision for loan losses in 2011 was $63.3 million, which exceeded the top of the estimated range by $6.3 million.

6

Fee income for 2011 was $66.1 million.  A year ago, Park’s management projected that fee income would be in a range of $63 million to $67 million.  The actual results were $3.1 million above the bottom of the range.

Gains from the sale of securities were $28.8 million in 2011.  Management had not forecast selling securities for gains in 2011, but decided to take advantage of market opportunities during the year.

A year ago, Park’s management projected that operating expenses would be approximately $183 million to $187 million.  Operating expenses for 2011 were $188.3 million; $1.3 million above the top of the estimated range.

ISSUANCE OF PREFERRED STOCK AND EMERGENCY ECONOMIC STABILIZATION ACT

On October 3, 2008, Congress passed the Emergency Economic Stabilization Act of 2008 (“EESA”), which created the Troubled Asset Relief Program (“TARP”) and provided the Secretary of the Treasury with broad authority to implement certain actions to help restore stability and liquidity to U.S. markets. The Capital Purchase Program (the “CPP”) was announced by the U.S. Department of the Treasury (the “U.S. Treasury”) on October 14, 2008 as part of TARP.  The CPP is voluntary and requires a participating institution to comply with a number of restrictions and provisions, including standards for executive compensation and corporate governance and limitations on share repurchases and the declaration and payment of dividends on common shares.

Park elected to apply for $100 million of funds through the CPP.  On December 23, 2008, Park completed the sale to the U.S. Treasury of $100 million of newly-issued Park non-voting preferred shares as part of the CPP.  Park entered into a Securities Purchase Agreement and a Letter Agreement with the U.S. Treasury on December 23, 2008. Pursuant to these agreements, Park issued and sold to the U.S. Treasury (i) 100,000 of Park’s Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value and having a liquidation preference of $1,000 per share (the “Series A Preferred Shares”), and (ii) a warrant (the “Warrant”) to purchase 227,376 Park common shares at an exercise price of $65.97 per share, for an aggregate purchase price of $100 million.  The Warrant has a ten-year term.  All of the proceeds from the sale of the Series A Preferred Shares and the Warrant by Park to the U.S. Treasury under the CPP qualify as Tier 1 capital for regulatory purposes.

U.S. Generally Accepted Accounting Principles (GAAP) require management to allocate the proceeds from the issuance of the Series A Preferred Shares between the Series A Preferred Shares and related Warrant.  The terms of the Series A Preferred Shares require Park to pay a cumulative dividend at the rate of 5 percent per annum until February 14, 2014, and 9 percent thereafter.  Management determined that the 5 percent dividend rate is below market value; therefore, the fair value of the Series A Preferred Shares would be less than the $100 million in proceeds.  Management determined that a reasonable market discount rate was 12 percent for the fair value of the Series A Preferred Shares and used the Black-Scholes model to calculate the fair value of the Warrant (and related common shares).  The allocation between the Series A Preferred Shares and the Warrant at December 23, 2008, the date of issuance, was $95.7 million and $4.3 million, respectively.  The discount on the Series A Preferred Shares of $4.3 million is being accreted through retained earnings using the level yield method over a 60-month period.  GAAP requires Park to measure earnings per share with earnings available to common shareholders.  Therefore, the Consolidated Statements of Income reflect a line item for “Preferred stock dividends and accretion” and a line item for “Income available to common shareholders”.  The dividends and accretion on the Series A Preferred Shares totaled $5,856,000 for 2011, $5,807,000 for 2010 and $5,762,000 for 2009.   The accretion of the discount was $856,000 in 2011, $807,000 in 2010 and $762,000 in 2009.  Management expects the accretion of the discount in 2012 will be $907,000.

Income available to common shareholders is net income minus the preferred stock dividends and accretion.  Income available to common shareholders was $76.3 million for 2011, $52.3 million for 2010, and $68.4 million for 2009.

See Note 1 and Note 25 of the Notes to Consolidated Financial Statements for additional information on the issuance of the Series A Preferred Shares.

DIVIDENDS ON COMMON SHARES

Park declared quarterly cash dividends on common shares in 2011 that totaled $3.76 per share.  The quarterly cash dividend on common shares was $0.94 per share for each quarter of 2011.

Under the terms of the Securities Purchase Agreement with the U.S. Treasury under the CPP, prior to December 23, 2011, Park is not permitted to increase the quarterly cash dividend on its common shares above $0.94 per share without seeking prior approval from the U.S. Treasury.  This restriction lapsed on December 23, 2011.

7

Cash dividends declared on common shares were $3.76 in 2011, 2010 and 2009.  Park’s management expects to pay a quarterly cash dividend on its common shares of $0.94 per share in 2012.  This expectation is based on management’s current forecast that earnings will be sufficient to maintain historic dividend levels.

CRITICAL ACCOUNTING POLICIES

The significant accounting policies used in the development and presentation of Park’s consolidated financial statements are listed in Note 1 of the Notes to Consolidated Financial Statements.  The accounting and reporting policies of Park conform with U.S. GAAP and general practices within the financial services industry.  The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes.  Actual results could differ from those estimates.

Park believes the determination of the allowance for loan losses involves a higher degree of judgment and complexity than its other significant accounting policies.  The allowance for loan losses is calculated with the objective of maintaining a reserve level believed by management to be sufficient to absorb probable incurred credit losses in the loan portfolio.  Management’s determination of the adequacy of the allowance for loan losses is based on periodic evaluations of the loan portfolio and of current economic conditions.  However, this evaluation is inherently subjective as it requires material estimates, including expected default probabilities, the loss given default, the amounts and timing of expected future cash flows on impaired loans, and estimated losses on consumer loans and residential mortgage loans based on historical loss experience and current economic conditions.  All of these factors may be susceptible to significant change.  To the extent that actual results differ from management estimates, additional loan loss provisions may be required that would adversely impact earnings for future periods.  (Refer to the “Credit Experience-Provision for Loan Losses” section within this Financial Review for additional discussion.)

Other real estate owned (“OREO”), property acquired through foreclosure, is recorded at estimated fair value less anticipated selling costs (net realizable value). If the net realizable value is below the carrying value of the loan on the date of transfer, the difference is charged to the allowance for loan losses. Subsequent declines in value, OREO devaluations, are reported as adjustments to the carrying amount of OREO and are expensed within other income. Gains or losses not previously recognized, resulting from the sale of OREO, are recognized in other income on the date of sale.  At December 31, 2011, OREO totaled $42.3 million, representing a 1.4% increase compared to $41.7 million at December 31, 2010.

Effective January 1, 2008, management implemented the fair value hierarchy, which has the objective of maximizing the use of observable market inputs.  The related accounting guidance also requires enhanced disclosures regarding the inputs used to calculate fair value. These inputs are classified as Level 1, 2, and 3. Level 3 inputs are those with significant unobservable inputs that reflect a company’s own assumptions about the market for a particular instrument. Some of the inputs could be based on internal models and cash flow analysis. At December 31, 2011, financial assets valued using Level 3 inputs for Park had an aggregate fair value of approximately $130.8 million. This was 13.5% of the total amount of assets measured at fair value as of the end of the year. The fair value of impaired loans was approximately $87.8 million (or 67.1%) of the total amount of Level 3 inputs.  Additionally, there were $83.4 million of loans that were impaired and carried at cost, as fair value exceeded book value for each individual credit. The large majority of Park’s financial assets valued using Level 2 inputs consist of available-for-sale (“AFS”) securities. The fair value of these AFS securities is obtained largely by the use of matrix pricing, which is a mathematical technique widely used in the financial services industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.

Management believes that the accounting for goodwill and other intangible assets also involves a higher degree of judgment than most other significant accounting policies.  GAAP establishes standards for the amortization of acquired intangible assets and the impairment assessment of goodwill.  Goodwill arising from business combinations represents the value attributable to unidentifiable intangible assets in the business acquired.  Park’s goodwill relates to the value inherent in the banking industry and that value is dependent upon the ability of Park’s banking subsidiaries to provide quality, cost-effective banking services in a competitive marketplace.  The goodwill value is supported by revenue that is in part driven by the volume of business transacted.  A decrease in earnings resulting from a decline in the customer base, the inability to deliver cost-effective services over sustained periods or significant credit problems can lead to impairment of goodwill that could adversely impact earnings in future periods.  GAAP requires an annual evaluation of goodwill for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired.  The fair value of the goodwill, which resides on the books of Park’s subsidiary banks, is estimated by reviewing the past and projected operating results for the Park subsidiary banks, deposit and loan totals for the Park subsidiary banks and banking industry comparable information.  Park recognized a goodwill impairment charge of $55.0 million in the third quarter of 2008 to eliminate the remaining goodwill balance pertaining to Vision Bank.  At December 31, 2011, on a consolidated basis, Park had core deposit intangibles of $2.5 million subject to amortization and $72.3 million of goodwill, which was not subject to periodic amortization.  The core deposit intangibles recorded on the balance sheet of PNB totaled $893,000 and the core deposit intangibles at Vision Bank were $1.6 million.  The goodwill asset of $72.3 million is carried on the balance sheet of PNB.

8

ABOUT OUR BUSINESS

Through its Ohio-based banking divisions, Park is engaged in the commercial banking and trust business, generally in small to medium population Ohio communities.  Vision Bank is primarily engaged in the commercial banking business throughout the panhandle of Florida and in Baldwin County, Alabama.  Management believes there are a significant number of consumers and businesses which seek long-term relationships with community-based financial institutions of quality and strength.  While not engaging in activities such as foreign lending, nationally syndicated loans or investment banking, Park attempts to meet the needs of its customers for commercial, real estate and consumer loans, consumer and commercial leases, and investment, fiduciary and deposit services.

Park’s subsidiaries compete for deposits and loans with other banks, savings associations, credit unions and other types of financial institutions.  At December 31, 2011, Park and its Ohio-based banking divisions operated 123 banking offices and a network of 144 automated teller machines in 28 Ohio counties and one county in northern Kentucky.  Vision Bank operated 17 banking offices and a network of 15 automated teller machines in Baldwin County, Alabama and in five counties in the panhandle of Florida.

A summary of financial data for Park’s banking subsidiaries and their divisions for 2011, 2010 and 2009 is shown in Table 10.  See Note 23 of the Notes to Consolidated Financial Statements for additional financial information for the Corporation’s subsidiaries.  Please note that the financial statements for various divisions of PNB are not maintained on a separate basis and, therefore, net income is only an estimate by management.

Table 10  -  Park National Corporation Affiliate Financial Data

	2011						2010						2009
	Average			Net			Average			Net			Average			Net
(In thousands)	Assets			Income			Assets			Income			Assets			Income
							(restated)
Park National Bank:
Park National Division	$	2,092,084		$	25,563		$	1,973,443		$	25,903		$	1,798,814		$	26,991
Security National Division		795,305			16,242			770,319			14,603			825,481			14,316
First-Knox National Division		709,569			15,093			642,343			14,374			633,260			12,411
Century National Division		685,813			11,233			647,798			9,860			650,488			11,387
Richland Trust Division		501,541			10,044			519,102			9,754			563,776			9,954
Fairfield National Division		465,178			10,236			459,050			9,695			484,849			9,368
Second National Division		425,170			7,977			385,534			7,570			371,079			6,926
Park National SW & N KY Division		381,739			722			405,889			2,590			416,502			1,841
United Bank Division		233,212			4,211			243,909			4,344			242,166			4,300
Unity National Division		207,703			3,389			185,003			2,918			182,373			2,251
Farmers & Savings Division		100,577			2,141			103,121			1,337			107,437			1,713
Vision Bank		743,344			(22,526	)		859,447			(45,414	)		904,897			(30,110	)
Parent Company,
including consolidating
entries		(135,065	)		(2,185	)		(152,297	)		567			(145,591	)		2,844
Consolidated Totals	$	7,206,170		$	82,140		$	7,042,661		$	58,101		$	7,035,531		$	74,192

9

SOURCE OF FUNDS

Deposits: Park’s major source of funds is deposits from individuals, businesses and local government entities.  These deposits consist of noninterest bearing and interest bearing deposits.

Average total deposits were $5,192 million in 2011, compared to $5,182 million in 2010 and $5,051 million in 2009.

On Park’s balance sheet, total deposits were $4,465 million at December 31, 2011, compared to $5,095 million at December 31, 2010.  This represents a decrease in total deposits of $630 million or 12.4% in 2011.  The reason for the balance sheet showing a large decrease in deposits is due to the pending sale of Vision Bank.  The deposits for Vision Bank of $533 million at year-end 2011 are included on Park’s balance sheet in the category of liabilities held for sale.  At December 31, 2010, total deposits for Vision Bank were $633 million.  The deposits for Park’s Ohio-based subsidiaries increased by $3 million in 2011.  Additionally, the brokered time deposits of $110 million on Park’s balance sheet at December 31, 2010, matured in 2011 and were not renewed.  The brokered time deposits were with PNB at year-end 2010.

Table 11 - Year-End Deposits
December 31,
(In thousands)	2011		2010		Change
Noninterest bearing checking	$	995,733	$	937,719	$	58,014
Interest bearing transaction accounts		1,037,385		1,283,158		(245,773	)
Savings		931,527		899,288		32,239
Brokered time deposits		-		110,065		(110,065	)
All other time deposits		1,499,105		1,863,838		(364,734	)
Other		1,364		1,352		13
Total	$	4,465,114	$	5,095,420	$	(630,306	)

Total year-end deposits decreased by $93 million or 1.8% in 2010.  Excluding brokered deposits in 2010, certificates of deposit decreased by $359 million or 16.1% in 2010.  Vision Bank’s year-end deposits decreased by $56 million or 8.0% in 2010 and deposits for Park’s Ohio based subsidiaries decreased by $37 million or 0.8% in 2010.

A year ago, management projected that total deposits (exclusive of brokered deposits) would increase by 1% in 2011.  The actual increase in deposits for Park’s Ohio-based subsidiaries (exclusive of brokered deposits) was about $113 million or 2.6%.  Management expects total deposits (exclusive of brokered deposits) to increase by 1% to 2% in 2012.

The Federal Open Market Committee (“FOMC”) of the Federal Reserve Board decreased the federal funds rate from 4.25% at December 31, 2007 to a range of 0% to 0.25% at year-end 2008.  The FOMC aggressively lowered the federal funds rate during 2008 as the severity of the economic recession increased.  The FOMC has maintained the targeted federal funds rate in the 0% to 0.25% range for all of 2009, 2010 and 2011 as the U.S. economy has gradually recovered from the severe recession.  The average federal funds rate was 0.10% for 2011, 0.18% for 2010 and 0.16% for 2009.  Management expects that the FOMC will maintain the targeted federal funds rate in a range of 0% to 0.25% throughout 2012.

The average interest rate paid on interest bearing deposits was 0.66% in 2011, compared to 0.98% in 2010 and 1.53% in 2009.  The average cost of interest bearing deposits for each quarter of 2011 was 0.60% for the fourth quarter, 0.63% for the third quarter, 0.67% for the second quarter and 0.74% for the first quarter.  Management expects a small decrease in the average interest rate paid on interest bearing deposits in 2012.

Short-Term Borrowings: Short-term borrowings consist of securities sold under agreements to repurchase, Federal Home Loan Bank advances, federal funds purchased and other borrowings.  These funds are used to manage the Corporation’s liquidity needs and interest rate sensitivity risk.  The average rate paid on short-term borrowings generally moves closely with changes in market interest rates for short-term investments.  The average rate paid on short-term borrowings was 0.28% in 2011 compared to 0.39% in 2010 and 0.76% in 2009.

Management expects that the average interest rate paid on short-term borrowings in 2012 will be approximately the same as the average rate paid in 2011.

10

The year-end balance for short-term borrowings was $264 million at December 31, 2011, compared to $664 million at December 31, 2010 and $324 million at December 31, 2009.  The increase at December 31, 2010 compared to 2009 of $340 million was due to investment security purchases at year-end 2010 that were temporarily funded through the use of short-term borrowings.

Long-Term Debt: Long-term debt primarily consists of borrowings from the Federal Home Loan Bank and repurchase agreements with investment banking firms.  (The average balance of long-term debt and the average cost of long-term debt includes the subordinated debentures discussed in the following section.)  In 2011, average long-term debt was $882 million compared to $725 million in 2010 and $780 million in 2009.  Average total debt (long-term and short-term) was $1,179 million in 2011 compared to $1,026 million in 2010 and $1,200 million in 2009.  Average total debt increased by $153 million or 14.9% in 2011 compared to 2010 and decreased by $174 million or 14.5% in 2010 compared to 2009.  The increase in average total debt in 2011 compared to 2010 was primarily due to the increase in average loans combined with an increase in average taxable investments.  Management increased the amount of long-term debt to partially offset the interest rate risk from maintaining 15-year, fixed-rate residential mortgage loans on Park’s balance sheet.  Average long-term debt was 75% of average total debt in 2011 compared to 71% in 2010 and 65% in 2009.

The average rate paid on long-term debt was 3.42% for 2011, compared to 3.91% for 2010 and 3.38% for 2009.  Management expects that the average interest rate paid on long-term debt in 2012 will be about the same as the average interest rate paid on long-term debt in 2011.

Subordinated Debentures/Notes: Park assumed with the Vision acquisition $15 million of floating rate junior subordinated notes.  The interest rate on these subordinated notes adjusts every quarter at 148 basis points above the three-month LIBOR interest rate.  The maturity date for the junior subordinated notes is December 30, 2035 and the junior subordinated notes may be prepaid after December 30, 2010.  These junior subordinated notes qualify as Tier 1 capital under current Federal Reserve Board guidelines.

Park’s Ohio-based banking subsidiary, PNB, issued a $25 million subordinated debenture on December 28, 2007.  The interest rate on this subordinated debenture adjusts every quarter at 200 basis points above the three-month LIBOR interest rate.  The maturity date for the subordinated debenture is December 29, 2017 and the subordinated debenture may be prepaid after December 28, 2012.  On January 2, 2008, Park entered into a “pay fixed-receive floating” interest rate swap agreement for a notional amount of $25 million with a maturity date of December 28, 2012.  This interest rate swap agreement was designed to hedge the cash flows pertaining to the $25 million subordinated debenture until December 28, 2012.  Management converted the cash flows to a fixed interest rate of 6.01% through the use of the interest rate swap.  This subordinated debenture qualifies as Tier 2 capital under the applicable regulations of the Office of the Comptroller of the Currency of the United States of America (the “OCC”) and the Federal Reserve Board.

On December 23, 2009, Park issued $35.25 million of subordinated notes to 38 purchasers.  These subordinated notes have a fixed annual interest rate of 10% with quarterly interest payments.  The maturity date of these subordinated notes is December 23, 2019.  These subordinated notes may be prepaid by Park any time after December 23, 2014.  The subordinated notes qualify as Tier 2 capital under applicable rules of the Federal Reserve Board.  Each subordinated note was purchased at a purchase price of 100% of the principal amount by an accredited investor.

See Note 11 of the Notes to Consolidated Financial Statements for additional information on the subordinated debentures and subordinated notes.

Sale of Common Stock:  Park sold an aggregate of 509,184 common shares, out of treasury shares, during 2010.  Of the 509,184 common shares sold in 2010, 437,200 common shares were issued upon the exercise of warrants associated with the capital raise that closed on October 30, 2009.   As part of the capital raise that closed on December 10, 2010, Park sold 71,984 common shares and issued warrants for the purchase of 71,984 shares of common stock.  The warrants issued as part of the December 10, 2010 transaction had an exercise price of $76.41 per share.  Warrants covering the purchase of an aggregate of 35,992 common shares expired on June 10, 2011 and warrants covering the purchase of the other 35,992 common shares expired on December 10, 2011.

In total for 2010, Park sold 509,184 common shares and warrants covering 71,984 common shares at a weighted average price per share of $67.99 for gross proceeds of $34.6 million.  Net of selling expenses and professional fees, Park raised $33.5 million of common equity from capital raising activities in 2010.

During 2009, Park sold 904,072 common shares and warrants covering 500,000 common shares at a weighted average price per share of $61.20 for gross proceeds of $55.3 million.  Net of selling expenses and professional fees, Park raised $53.5 million of common equity from capital raising activities in 2009.

11

Stockholders' Equity: Tangible stockholders’ equity (stockholders’ equity less goodwill and other intangible assets) to tangible assets (total assets less goodwill and other intangible assets) was 9.68% at December 31, 2011 compared to 9.04% at December 31, 2010 and 9.13% at December 31, 2009.

The ratio of tangible stockholders’ equity to tangible assets for each of the past three years includes the issuance of $100 million of Park Series A Preferred Shares to the U.S. Treasury on December 23, 2008.  Excluding the balance of Series A Preferred Shares, the ratio of tangible common stockholders’ equity to tangible assets was 8.25% at December 31, 2011, 7.69% at December 31, 2010 and 7.75% at December 31, 2009.

In accordance with GAAP, Park reflects any unrealized holding gain or loss on AFS securities, net of income taxes, as accumulated other comprehensive income (loss) which is part of Park’s stockholders’ equity.  The unrealized holding gain on AFS securities, net of income taxes, was $12.7 million at year-end 2011, compared to $15.1 million at year-end 2010 and $30.1 million at year-end 2009.  The decrease in the amount of unrealized holding gains on AFS securities, net of income taxes, at year-end 2010 and year-end 2011 was primarily due to the sale of AFS securities in 2010 and 2011 for gains.  Park sold AFS securities with an amortized cost value of $373 million in 2010 for a gain of $11.9 million and sold AFS securities with an amortized cost value of $557 million in 2011 for a gain of $27.7 million.  The large gain from the sale of securities in 2011 was possible due to the sharp decline in long-term interest rates during the year.

In accordance with GAAP, Park adjusts accumulated other comprehensive income (loss) to recognize the net actuarial gain or loss reflected in the accounting for Park’s Pension Plan.  See Note 13 of the Notes to Consolidated Financial Statements for information on the accounting for Park’s Pension Plan.

Pertaining to the Pension Plan, Park recognized a net comprehensive loss of $5.0 million in 2011, a net comprehensive loss of $2.4 million in 2010 and a net comprehensive gain of $6.3 million in 2009.  The comprehensive loss in 2011 and 2010 was due to changes in actuarial assumptions, specifically a decrease in the discount rate.  This actuarial loss more than offset the positive investment returns and contributions to the Pension Plan in 2010 and 2011.  The comprehensive gain in 2009 was due to positive investment returns and contributions to the Pension Plan.  At year-end 2011, the balance in accumulated other comprehensive income/(loss) pertaining to the Pension Plan was $(20.9) million, compared to $(15.9) million at December 31, 2010 and $(13.5) million at December 31, 2009.

Park also recognized net comprehensive income/(loss) of $0.5 million, $(0.1) million and $0.3 million for the years ended December 31, 2011, 2010 and 2009, respectively, due to the mark-to-market of the $25 million cash flow hedge.  See Note 19 of the Notes to Consolidated Financial Statements for information on the accounting for Park’s derivative instruments.

INVESTMENT OF FUNDS

Loans:  Average loans were $4,714 million in 2011, compared to $4,642 million in 2010 and $4,594 million in 2009.  The average yield on loans was 5.61% in 2011, compared to 5.80% in 2010 and 6.03% in 2009.  The average prime lending rate was 3.25% in 2011, 2010 and 2009.  Approximately 59% of Park’s loan balances mature or reprice within one year (see Table 30).  The yield on average loan balances for each quarter of 2011 was 5.59% for both the fourth and third quarters, compared to 5.61% for the second quarter and 5.63% for the first quarter.  Management expects that the yield on the loan portfolio will decrease modestly in 2012 compared to the average yield of 5.61% for 2011.  At December 31, 2011, loan balances were $4,317 million compared to $4,733 million at year-end 2010, a decrease of $416 million or 8.8%.  The large decrease in loan balances shown on Park’s balance sheet during 2011 was primarily due to $369 million of loans at Vision Bank being shown on Park’s balance sheet as assets held for sale at December 31, 2011.  These loan balances will be included in the sale of Vision Bank during the first quarter of 2012.  Park’s Ohio-based subsidiaries increased loans by $101 million or 2.5% to $4,193 million at year-end 2011.  The remaining balance of Vision Bank loans at year-end 2011 of $110 million will become assets of SE, LLC as a result of the merger of Vision Bank into SE, LLC during the first quarter of 2012, when the sale is completed.  At December 31, 2010, Vision Bank had $641 million of loans.

In 2010, year-end loan balances increased by $92 million or 2.0%.  Park’s Ohio-based subsidiaries increased loans by $129 million or 3.2% during 2010.  Vision Bank had a decline in loans of $37 million or 5.4% in 2010.

In 2009, year-end loan balances increased by $149 million or 3.3%.  At Vision Bank, year-end loan balances decreased by $13 million or 1.9% during 2009.  Park’s Ohio-based subsidiaries increased loans by $162 million or 4.3% during 2009.

A year ago, management projected that year-end loan balances would increase by 1% to 3% in 2011.  The actual change in year-end loan balances was a decrease of 8.8% due to the pending sale of Vision Bank.  As discussed previously, year-end loan balances for Park’s Ohio-based subsidiaries increased by 2.5% in 2011.  Management expects that loan growth in 2012 will be in the 1% to 3% range.

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Year-end residential real estate loans were $1,629 million, $1,692 million and $1,555 million in 2011, 2010 and 2009, respectively.  Residential real estate loans decreased by $63.6 million or 3.8% in 2011, due to the pending sale of Vision Bank.  The residential real estate loans that will be included in the sale of Vision Bank in the first quarter of 2012 totaled $153.6 million at December 31, 2011, and were included in assets held for sale. Without the pending sale of Vision Bank, residential real estate loans would have increased by $90 million or 7.3% in 2011.  Residential real estate loans increased by $137 million or 8.8% in 2010 and decreased by $5 million or 0.3% in 2009.  The increase of $137 million in 2010 was primarily due to management’s decision to retain 15-year fixed-rate residential mortgage loans that were previously sold in the secondary market.  The balance of loans for this new product was $176 million at December 31, 2010, with a weighted average interest rate of 3.82%.  This 15-year, fixed-rate product increased by $153 million to $329 million at December 31, 2011, and has a weighted average interest rate of 3.79%.  Management expects an increase in residential real estate loans in 2012 of 3% to 5%.

The long-term fixed-rate residential mortgage loans that Park originates are generally sold in the secondary market and Park typically retains servicing on these loans.  As mentioned above, during 2010, Park began to retain on its balance sheet 15-year fixed-rate residential mortgage loans.  The balance of sold fixed-rate residential mortgage loans was $1,347 million at year-end 2011, compared to $1,471 million at year-end 2010 and $1,518 million at year-end 2009.  The decrease in Park’s sold residential mortgage loan portfolio of $171 million in the last two years was due to the retention of the 15-year fixed-rate residential mortgage loan product.  The increase in the 15-year fixed-rate residential mortgage loan product during 2010 and 2011, of $329 million, was $158 million more than the decrease in the long-term fixed-rate residential mortgage sold servicing portfolio.  Management is pleased with this performance as the 15-year fixed-rate mortgage loans retained on the balance sheet would have been sold prior to 2010 and included in the servicing portfolio.

Year-end consumer loans were $617 million, $667 million and $704 million in 2011, 2010 and 2009, respectively.  Consumer loans decreased by $50 million or 7.6% in 2011 and decreased by $37 million or 5.3% in 2010.  The consumer loans that will be included in the pending sale of Vision Bank were only $4 million at December 31, 2011.  The decrease in consumer loans in both 2011 and 2010 was primarily due to a decline in automobile loans originated in Ohio, as competition for automobile loans increased in 2010 and 2011.

Consumer loans increased by $61 million or 9.5% in 2009.  The increase in consumer loans in 2009 was primarily due to an increase in automobile loans originated through automobile dealers in Ohio.  Management expects that consumer loans will decrease by 1% to 2% in 2012.

On a combined basis, year-end commercial, financial and agricultural loans, real estate construction loans and commercial real estate loans totaled $2,070 million, $2,371 million and $2,377 million at year-end 2011, 2010 and 2009, respectively.  These combined loan totals decreased by $301 million or 12.7% in 2011.  This decrease was primarily due to the pending sale of Vision Bank as $211 million of these combined loan totals are classified as assets held for sale on Park’s balance sheet at December 31, 2011.  These combined loan totals declined by $6 million or 0.3% in 2010 and increased by $93 million or 4.1% in 2009.  Management expects that commercial, financial and agricultural loans, real estate construction loans and commercial real estate loans will grow by 1% to 3% in 2012.

Year-end lease balances were $2 million in 2011 and $3 million in both 2010 and 2009.  Management continues to de-emphasize leasing and expects the balance to further decline in 2012.

Table 12 reports year-end loan balances by type of loan for the past five years.

Table 12  -  Loans by Type
December 31,
(In thousands)	2011		2010		2009		2008		2007
Commercial, financial and agricultural	$	743,797	$	737,902	$	751,277	$	714,296	$	613,282
Real estate  -  construction		217,546		406,480		495,518		533,788		536,389
Real estate  -  residential		1,628,618		1,692,209		1,555,390		1,560,198		1,481,174
Real estate  -  commercial		1,108,574		1,226,616		1,130,672		1,035,725		993,101
Consumer		616,505		666,871		704,430		643,507		593,388
Leases		2,059		2,607		3,145		3,823		6,800
Total Loans	$	4,317,099	$	4,732,685	$	4,640,432	$	4,491,337	$	4,224,134

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Table 13 - Selected Loan Maturity Distribution
			Over One		Over
December 31, 2011	One Year		Through		Five
(In thousands)	or Less (1)		Five Years		Years		Total
Commercial, financial and agricultural	$	315,077	$	268,998	$	159,722	$	743,797
Real estate-construction		130,995		28,260		58,291		217,546
Real estate-commercial		145,748		200,627		762,199		1,108,574
Total	$	591,820	$	497,885	$	980,212	$	2,069,917
Total of these selected loans due
after one year with:
Fixed interest rate							$	529,119
Floating interest rate							$	948,978
(1) Nonaccrual loans of $121.4 million are included within the one year or less classification above.

Investment Securities: Park’s investment securities portfolio is structured to minimize credit risk, provide liquidity and contribute to earnings. Park’s investment strategy is dynamic.  As conditions change over time, Park’s overall interest rate risk, liquidity needs and potential return on the investment portfolio will change.  Management regularly evaluates the securities in the investment portfolio as circumstances evolve.  Circumstances that could result in the sale of a security include: to better manage interest rate risk; to meet liquidity needs; or to improve the overall yield in the investment portfolio.

Park classifies the majority of its securities as AFS (see Note 4 of the Notes to Consolidated Financial Statements).  These securities are carried on the books at their estimated fair value with the unrealized holding gain or loss, net of federal taxes, accounted for as accumulated other comprehensive income (loss) which is part of the Corporation’s equity.  The securities that are classified as AFS are free to be sold in future periods in carrying out Park’s investment strategies.

Generally, Park classifies U.S. Government sponsored entity collateralized mortgage obligations (“CMOs”) that it purchases as held-to-maturity.  A classification of held-to-maturity means that Park has the positive intent and the ability to hold these securities until maturity.  Park classifies CMOs as held-to-maturity because these securities are generally not as liquid as the U.S. Government sponsored entity mortgage-backed securities and U.S. Government sponsored entity notes that Park classifies as AFS.  At year-end 2011, Park’s held-to-maturity securities portfolio was $820 million, compared to $674 million at year-end 2010 and $507 million at year-end 2009.  Park purchased $628 million of CMOs in 2011, $314 million of CMOs in 2010 and $119 million of CMOs in 2009. All of the mortgage-backed securities and CMOs in Park’s investment portfolio were issued by a U.S. Government sponsored entity.

Average taxable investment securities were $1,841 million in 2011, compared to $1,730 million in 2010 and $1,848 million in 2009.  The average yield on taxable securities was 3.74% in 2011, compared to 4.44% in 2010 and 4.90% in 2009.  Average tax-exempt investment securities were $8 million in 2011, compared to $17 million in 2010 and $30 million in 2009.  The average tax-equivalent yield on tax-exempt investment securities was 7.17% in 2011, compared to 7.24% in 2010 and 7.45% in 2009.

Year-end total investment securities (at amortized cost) were $1,689 million in 2011, $2,017 million in 2010 and $1,817 million in 2009.  Management purchased investment securities totaling $1,268 million in 2011, $3,033 million in 2010 and $469 million in 2009.   The decrease in purchases during 2011 was primarily due to the reduced interest rate environment during the year and partially due to management’s decision to retain 15-year, fixed-rate residential mortgage loans on Park’s balance sheet.  The significant increase in purchases during 2010 was largely due to the purchase of $1,319 million of 28-day U.S. Government sponsored entity discount notes and $823 million of U.S. Government sponsored entity callable notes.  Proceeds from repayments and maturities of investment securities were $1,013 million in 2011, $2,385 million in 2010 and $467 million in 2009.  The decrease in proceeds from repayments and maturities in 2011 was primarily due to relative fewer holdings of 28-day U.S. Government sponsored entity discount notes during the year.  The increase in proceeds from repayments and maturities in 2010 was primarily due to the 28-day U.S. Government sponsored entity discount notes and U.S. Government sponsored entity callable notes, which had repayments or maturities of $1,319 million and $710 million, respectively, during the year.    Proceeds from sales of securities were $610 million in 2011, $460 million in 2010 and $204 million in 2009.  Park realized net security gains on a pre-tax basis of $28.8 million in 2011, $11.9 million in 2010 and $7.3 million in 2009.

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During 2011, Park sold investment securities during the first, second, third and fourth quarters.  In total, these sales resulted in proceeds of $610.0 million and a pre-tax gain of $28.8 million.

During the first quarter of 2011, Park sold $105.4 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $6.6 million.  These mortgage-backed securities had a weighted average remaining life of approximately 2 years, a weighted average book yield of 5.02% and were sold at an average price of 106.2% of the principal balance with an estimated yield to the buyer of 2.10%.  Additionally, Park sold $1.0 million of municipal securities held by Vision Bank for no gain or loss in the first quarter to reduce credit risk in the investment securities portfolio.  These securities had a weighted average tax-equivalent yield of 5.75% and a weighted average remaining life of approximately 4 years.

During the second quarter of 2011, Park sold $191.0 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $15.4 million.  These mortgage-backed securities had a weighted average remaining life of approximately 3 years, a weighted average book yield of 5.25% and were sold at an average price of 107.4% of the principal balance with an estimated yield to the buyer of 1.92%.

During the third quarter of 2011, Park sold $212.8 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $3.5 million.  These mortgage-backed securities had a weighted average book yield of 2.60% and a weighted average remaining life of approximately 3 years and were sold at an average price of 104.5% of the principal balance with an estimated yield to the buyer of 2.03%.

Late in the fourth quarter of 2011, Park liquidated Vision Bank’s securities portfolio.  These securities were sold in preparation of the sale of Vision Bank during the first quarter of 2012.  Park sold $45.7 million of U.S. Government sponsored entity mortgage-backed securities (available-for-sale securities) and $24.3 million of U.S. Government sponsored entity CMOs (held-to-maturity securities) held by Vision Bank for a pre-tax gain of $3.4 million.  While management would not normally sell held-to-maturity investment securities, the CMO’s held by Vision Bank were sold late in 2011 as management liquidated the entire Vision Bank securities portfolio in anticipation of the sale.  These securities had a weighted average book yield of 4.37% and a weighted average remaining life of approximately 3 years.  These securities were sold at an average price of approximately 104.9% of the principal balance with an estimated yield to the buyer of 2.12%.  Park also sold $896,000 of municipal securities held by Vision Bank for a pre-tax gain of $15,000.  The weighted average tax-equivalent yield on these municipal securities was 5.96% with a weighted average remaining life of approximately 2 years.  The proceeds from the sale of the Vision Bank securities were used to purchase U.S. Agency discount notes that mature during the first quarter of 2012.

During 2010, Park sold investment securities during the first, second and fourth quarters.  In total, these sales resulted in proceeds of $460.2 million and a pre-tax gain of $11.9 million.

During the first quarter of 2010, Park sold $200.7 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $8.3 million.  These mortgage-backed securities had a weighted average remaining life of approximately 3 years, a weighted average book yield of 4.75% and were sold at an average price of 103.7% of the principal balance with an estimated yield to the buyer of 2.99%.  Additionally, Park sold $75 million of U.S. Government sponsored entity callable notes for no gain or loss in the first quarter to reduce the extension risk in the investment securities portfolio in the case of interest rate increases in the future.  These securities had a book yield of 4.25% and a final maturity in approximately 9 years.

During the second quarter of 2010, Park sold $57 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $3.5 million.  These mortgage-backed securities had a weighted average remaining life of approximately 3 years, a weighted average book yield of 4.64% and were sold at an average price of 105.8% of the principal balance with an estimated yield to the buyer of 2.08%.

During the fourth quarter of 2010, Park sold $115.8 million of U.S. Government sponsored entity callable notes for a small gain of $45,000.  These securities had a book yield of 3.37% and a final maturity in approximately 10 years.

At year-end 2011 and 2010, the average tax-equivalent yield on the total investment portfolio was 3.31% and 4.01%, respectively.  The weighted average remaining maturity was 1.7 years at December 31, 2011 and 3.6 years at December 31, 2010.  U.S. Government sponsored entity asset-backed securities were approximately 74% of the total investment portfolio at year-end 2011 and were approximately 82% of the total investment portfolio at year-end 2010.  This segment of the investment portfolio consists predominantly of 15-year mortgage-backed securities and CMOs.

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The average maturity of the investment portfolio would lengthen if long-term interest rates would increase as the principal repayments from mortgage-backed securities and CMOs would be reduced and callable U.S. Government sponsored entity notes would extend to their maturity dates.  At year-end 2011, management estimated that the average maturity of the investment portfolio would lengthen to 5.3 years with a 100 basis point increase in long-term interest rates and to 7.0 years with a 200 basis point increase in long-term interest rates.  Likewise, the average maturity of the investment portfolio would shorten if long-term interest rates would decrease as the principal repayments from mortgage-backed securities and CMOs would increase as borrowers would refinance their mortgage loans and the callable U.S. Government sponsored entity notes would shorten to their call dates.  At year-end 2011, management estimated that the average maturity of the investment portfolio would decrease to 1.0 years with a 100 basis point decrease in long-term interest rates and to 0.8 years with a 200 basis point decrease in long-term interest rates.

Table 14 sets forth the carrying value of investment securities, as well as the percentage held within each category at year-end 2011, 2010 and 2009:

Table 14  -  Investment Securities
December 31,
(In thousands)	2011			2010			2009
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	371,657		$	273,313		$	347,595
Obligations of states and political subdivisions		4,652			14,211			20,123
U.S. Government asset-backed securities		1,262,527			1,681,815			1,425,361
Federal Home Loan Bank stock		60,728			61,823			62,044
Federal Reserve Bank stock		6,876			6,876			6,875
Equities		2,033			1,753			1,562
Total	$	1,708,473		$	2,039,791		$	1,863,560
Investments by category as a percentage of
total investment securities
Obligations of U.S. Treasury and other U.S. Government sponsored entities		21.8	%		13.4	%		18.6	%
Obligations of states and political subdivisions		0.3	%		0.7	%		1.1	%
U.S. Government asset-backed securities		73.9	%		82.5	%		76.5	%
Federal Home Loan Bank stock		3.5	%		3.0	%		3.3	%
Federal Reserve Bank stock		0.4	%		0.3	%		0.4	%
Equities		0.1	%		0.1	%		0.1	%
Total		100.0	%		100.0	%		100.0	%

ANALYSIS OF EARNINGS

Park’s principal source of earnings is net interest income, the difference between total interest income and total interest expense.  Net interest income results from average balances outstanding for interest earning assets and interest bearing liabilities in conjunction with the average rates earned and paid on them.  (See Table 15 for three years of history on the average balances of the balance sheet categories and the average rates earned on interest earning assets and the average rates paid on interest bearing liabilities.)

Net interest income decreased slightly by $810,000 or 0.3% to $273.2 million for 2011 compared to an increase of $553,000 or 0.2% to $274.0 million for 2010.  The tax equivalent net yield on interest earning assets was 4.14% for 2011 compared to 4.26% for 2010 and 4.22% for 2009.  The net interest rate spread (the difference between rates received for interest earning assets and the rates paid for interest bearing liabilities) was 3.94% for 2011, compared to 4.01% for 2010 and 3.94% for 2009.  The small decrease in net interest income in 2011 was due to the decrease in the net interest spread to 3.94% from 4.01%.  The average balance of interest earning assets increased by $159 million or 2.5% to $6,641 million in 2011.

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The average yield on interest earning assets was 5.03% in 2011 compared to 5.36% in 2010 and 5.67% in 2009.  The average federal funds rate for 2011 was 0.10%, compared to an average rate of 0.18% in 2010 and 0.16% in 2009.  On a quarterly basis for 2011, the average yield on interest earning assets was 4.93% for the fourth quarter, 4.95% for the third quarter, 5.08% for the second quarter and 5.14% for the first quarter.  Management expects that the average yield on interest earning assets will slightly decrease in 2012.

The average rate paid on interest bearing liabilities was 1.09% in 2011, compared to 1.35% in 2010 and 1.73% in 2009.  On a quarterly basis for 2011, the average rate paid on interest bearing liabilities was 1.07% for both the fourth and third quarters, 1.09% for the second quarter and 1.14% for the first quarter.  Management expects that the average rate paid on interest bearing liabilities will modestly decrease in 2012.

Table 15 - Distribution of Assets, Liabilities and Stockholders' Equity
December 31,				2011								2010								2009
(In thousands)	Daily					Average			Daily					Average			Daily					Average
	Average			Interest		Rate			Average			Interest		Rate			Average			Interest		Rate
ASSETS
Interest earning assets:
Loans (1) (2)	$	4,713,511		$	264,192		5.60	%	$	4,642,478		$	269,306		5.80	%	$	4,594,436		$	276,893		6.03	%
Taxable investment securities		1,840,842			68,873		3.74	%		1,729,511			76,838		4.44	%		1,847,706			90,558		4.90	%
Tax-exempt investment securities (3)		8,038			575		7.15	%		16,845			1,220		7.24	%		29,597			2,205		7.45	%
Money market instruments		78,593			178		0.23	%		93,009			200		0.22	%		52,658			116		0.22	%
Total interest earning assets		6,640,984			333,818		5.03	%		6,481,843			347,564		5.36	%		6,524,397			369,772		5.67	%
Noninterest earning assets:
Allowance for loan losses		(128,512	)							(119,639	)							(103,683	)
Cash and due from banks		124,649								116,961								110,227
Premises and equipment, net		69,507								69,839								67,944
Other assets		499,543								493,746								436,646
TOTAL	$	7,206,171							$	7,042,750							$	7,035,531

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Transaction accounts	$	1,430,492	$	2,686	0.19	%	$	1,354,392	$	4,450	0.33	%	$	1,229,553	$	7,889	0.64	%
Savings deposits		946,406		1,126	0.12	%		891,021		1,303	0.15	%		805,783		2,926	0.36	%
Time deposits		1,816,506		23,842	1.31	%		2,029,088		36,212	1.78	%		2,197,055		53,805	2.45	%
Total interest bearing deposits		4,193,404		27,654	0.66	%		4,274,501		41,965	0.98	%		4,232,391		64,620	1.53	%
Short-term borrowings		297,537		823	0.28	%		300,939		1,181	0.39	%		419,733		3,209	0.76	%
Long-term debt (4)		881,921		30,169	3.42	%		725,356		28,327	3.91	%		780,435		26,370	3.38	%
Total interest bearing liabilities		5,372,862		58,646	1.09	%		5,300,796		71,473	1.35	%		5,432,559		94,199	1.73	%
Noninterest bearing liabilities:
Demand deposits		999,085						907,514						818,243
Other		90,351						87,885						109,415
Total noninterest bearing liabilities		1,089,436						995,399						927,658
Stockholders' equity		743,873						746,555						675,314
TOTAL	$	7,206,171					$	7,042,750					$	7,035,531
Net interest earnings			$	275,172					$	276,091					$	275,573
Net interest spread					3.94	%					4.01	%					3.94	%
Net yield on interest earning assets (net interest margin)					4.14	%					4.26	%					4.22	%

(1) Loan income includes loan related fee income of $2,381 in 2011, $238 in 2010 and $1,669 in 2009.  Loan income also includes the effects of taxable equivalent

adjustments using a 35% tax rate in 2011, 2010 and 2009.  The taxable equivalent adjustment was $1,734 in 2011, $1,614 in 2010 and $1,294 in 2009.

(2) For the purpose of the computation, nonaccrual loans are included in the daily average loans outstanding.

(3) Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 35% tax rate in 2011, 2010 and 2009.

The taxable equivalent adjustments were $204 in 2011, $434 in 2010, and $788 in 2009.

(4) Includes subordinated debenture and subordinated notes.

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The following table displays (for each quarter of 2011) the average balance of interest earning assets, net interest income and the tax equivalent net interest margin.

Table 16  - Quarterly Net Interest Margin
(In thousands)	Average Interest Earning Assets		Net Interest Income		Tax Equivalent Net Interest Margin
First Quarter	$	6,722,136	$	69,313		4.21	%
Second Quarter		6,745,790		70,022		4.19	%
Third Quarter		6,610,953		67,620		4.09	%
Fourth Quarter		6,487,958		66,279		4.08	%
2011	$	6,640,984	$	273,234		4.14	%

Management expects that average interest earning assets will decrease significantly in 2012, due to the sale of Vision Bank during the first quarter of 2012.  Management projects that average interest earning assets will be approximately $6,200 million for 2012.  Management expects that net interest income will be in a range of $240 million to $250 million in 2012 and that the tax equivalent net interest margin will be in a range of 3.88% to 3.98% in 2012.  (Please see the “Summary Discussion of Operating Results for Park” section of this Financial Review for a comparison of 2011 results to management’s projections from a year ago.)

The change in interest due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.

Table 17  -  Volume/Rate Variance Analysis

	Change from 2010 to 2011									Change from 2009 to 2010
(In thousands)	Volume			Rate			Total			Volume			Rate			Total
Increase (decrease) in:
Interest income:
Total loans	$	3,988		$	(9,102	)	$	(5,114	)	$	2,915		$	(10,502	)	$	(7,587	)
Taxable investments		4,711			(12,676	)		(7,965	)		(5,560	)		(8,160	)		(13,720	)
Tax-exempt investments		(631	)		(14	)		(645	)		(925	)		(60	)		(985	)
Money market instruments		(31	)		9			(22	)		84			-			84
Total interest income		8,037			(21,783	)		(13,746	)		(3,486	)		(18,722	)		(22,208	)
Interest expense:
Transaction accounts	$	237		$	(2,001	)	$	(1,764	)	$	725		$	(4,164	)	$	(3,439	)
Savings accounts		85			(262	)		(177	)		270			(1,893	)		(1,623	)
Time deposits		(3,514	)		(8,856	)		(12,370	)		(3,844	)		(13,749	)		(17,593	)
Short-term borrowings		(14	)		(344	)		(358	)		(746	)		(1,282	)		(2,028	)
Long-term debt		5,663			(3,821	)		1,842			(1,960	)		3,917			1,957
Total interest expense		2,457			(15,284	)		(12,827	)		(5,555	)		(17,171	)		(22,726	)
Net variance	$	5,580		$	(6,499	)	$	(919	)	$	2,069		$	(1,551	)	$	518

18

Other Income:  Total other income was $94.9 million in 2011, compared to $74.9 million in 2010 and $81.2 million in 2009.  The large increase in total other income of $20.0 million in 2011 compared to 2010, was primarily due to the large increase in net gains from the sale of investment securities.  The net gain from the sale of investment securities was $28.8 million in 2011, compared to a net gain of $11.9 million in 2010.  In 2009, Park’s total other income included a “one-time” positive item of $3.0 million from the sale of all the Class B shares of stock that Park received from the initial public offering of Visa, Inc.

The following table displays total other income for Park in 2011, 2010 and 2009.

Table 18 - Other Income
Year Ended December 31,
(In thousands)	2011			2010 (restated)			2009
Income from fiduciary activities	$	14,965		$	13,874		$	12,468
Service charges on deposits		18,307			19,717			21,985
Net gains on sales of securities		28,829			11,864			7,340
Other service income		10,606			13,816			18,767
Checkcard fee income		12,496			11,177			9,339
Bank owned life insurance income		5,089			4,978			5,050
ATM fees		2,703			2,951			3,082
OREO devaluations		(8,219	)		(13,206	)		(6,818	)
Other		10,134			9,709			9,977
Total other income	$	94,910		$	74,880		$	81,190

Income from fiduciary activities increased by $1.1 million or 7.9% to $15.0 million in 2011 and increased by $1.4 million or 11.3% to $13.9 million in 2010.  The increase in fiduciary fee income in 2011 and 2010 was primarily due to improvements in the equity markets and also due to an increase in the total accounts served by Park’s Trust department.  Park charges fiduciary fees based on the market value of the assets being managed.  The Dow Jones Industrial Average stock index annual average was 8,885 for calendar year 2009, 10,669 for calendar year 2010 and 11,958 for calendar year 2011.  The market value of the assets that Park manages was $3.3 billion at December 31, 2011 and December 31, 2010, compared to $3.1 billion at December 31, 2009.  Management expects an increase of approximately 2% to 4% in fee income from fiduciary activities in 2012.

Service charges on deposit accounts decreased by $1.4 million or 7.2% to $18.3 million in 2011 and decreased by $2.3 million or 10.3% to $19.7 million in 2010.  The decrease in service charge income in 2011 was primarily due to a decrease in fee income from overdraft charges and other non-sufficient funds (NSF) charges.  Park’s customers did not use our courtesy overdraft program as frequently in 2011 and, as a result, this fee income decreased by $1.3 million or 8.7% in 2011 compared to 2010.  Management expects that revenue from service charges on deposits in 2012 will be within a range of $16 million to $18 million.

Fee income earned from origination and sale into the secondary market of long-term fixed-rate mortgage loans is included within other non-yield related fees in the subcategory “Other service income”.  Other service income decreased by $3.2 million, or 23.2%, to $10.6 million in 2011, compared to $13.8 million in 2010.   The decrease in other service income was primarily due to a decline in the amount of fixed-rate mortgage loans originated and sold in 2011.  The amount of fixed-rate mortgage loans originated and sold in 2011 was $190 million, compared to $358 million in 2010 and $615 million in 2009.  As previously discussed, Park began to originate and retain 15-year, fixed-rate residential mortgages in 2010, which contributed to the decline in loans sold in the secondary market.  The balance of loans for this product was $329 million at December 31, 2011, an increase of $153 million compared to $176 million at December 31, 2010.  Management expects an increase in residential real estate loans in 2012 of 3% to 5%.  In 2010, other service income decreased by $5.0 million or 26.4% to $13.8 million, which was due to a decline in the volume of fixed-rate residential mortgage loans that Park originated and sold into the secondary market in 2010 compared to 2009. Park’s management expects that the volume of sold fixed-rate residential mortgage loans will continue to decline in 2012 and as a result expects that other service income will decrease by approximately 12% to 14% in 2012.

Checkcard fee income, which is generated from debit card transactions increased $1.3 million or 11.8% to $12.5 million in 2011.  During 2010, checkcard fee income increased $1.8 million or 19.7% to $11.2 million.  The increases in both 2011 and 2010 were attributable to continued increases in the volume of debit card transactions.  Park’s management expects checkcard fee income will decline by approximately 4% to 6% in 2012, largely due to the full year impact of the Durbin Amendment that became a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act and became effective on October 1, 2011.

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OREO devaluations, which result from declines in the fair value (less anticipated selling costs) of property acquired through foreclosure, totaled $8.2 million in 2011, a decrease of $5.0 million or 37.8% compared to $13.2 million in 2010.  The OREO devaluations in 2011 related primarily to other real estate owned at Vision Bank.  As previously discussed, throughout the 2011 year, Vision Bank’s OREO property was transferred to SE, LLC.  Of the $8.2 million in OREO devaluations in 2011, $3.0 million and $4.2 million were related to devaluations recognized at Vision Bank and SE, LLC, respectively.  Park’s management expects that OREO devaluations will be less significant in 2012 as property values throughout Park’s footprint continue to stabilize.

The subcategory of “Other” income includes fees earned from the sale of official checks and printed checks, rental fee income from safe deposit boxes, gains and losses from the sale of OREO and other miscellaneous income.  Total other income increased by $425,000 or 4.4% to $10.1 million in 2011 and decreased by $268,000 or 2.7% to $9.7 million in 2010.  Park’s management expects 2012 revenue within the subcategory of other income, prior to the impact of the Vision Bank sale, will be consistent with the results experienced in 2011.  On February 16, 2012, the sale of Vision Bank closed and a pre-tax gain of $22 million, net of anticipated expenses directly related to the sale, was recognized by Park’s Parent Company.

Park recognized net gains from the sale of investment securities of $28.8 million in 2011, $11.9 million in 2010 and $7.3 million in 2009.  The majority of the investment securities sold in 2011, with an amortized cost of $579.2 million, were U.S. Government sponsored entity mortgage-backed securities. The remaining investment securities sold in 2011 were municipal securities.  The following table provides a summary of the gains realized from the sale of investment securities in 2011.  Park’s management does not expect to recognize any gains from the sale of investment securities in 2012.

Table 19 - Gain on Sale of Securities
(in thousands)	Amortized Cost		Book Yield			Sales Proceeds		Yield to buyer			Gain
Fourth Quarter	$	70,848		4.39	%	$	74,215		2.17	%	$	3,367
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		106,470		5.03	%		113,105		2.13	%		6,635
Total	$	581,154		4.13	%	$	609,983		2.03	%	$	28,829

A year ago, Park’s management forecast that total other income, excluding gains from the sale of securities, would be approximately $63 million to $67 million for 2011.  The actual performance for 2011 was in line with management’s original estimate, at $66.1 million.  For 2012, Park’s management expects that total other income, excluding gains from the sale of Vision Bank, will be approximately $62 million to $66 million.

20

Other Expense: Total other expense was $188.3 million in 2011, compared to $187.1 million in 2010 and $188.7 million in 2009.  Total other expense increased by $1.2 million, or 0.6%, to $188.3 million in 2011.  Total other expense decreased by $1.6 million or 0.9% to $187.1 million in 2010.  The following table displays total other expense for Park in 2011, 2010 and 2009.

Table 20 - Other Expense
Year Ended December 31,
(In thousands)	2011		2010		2009
Salaries and employee benefits	$	102,068	$	98,315	$	101,225
Data processing fees		4,965		5,728		5,674
Fees and service charges		21,119		19,972		15,935
Net occupancy expense of bank premises		11,295		11,510		11,552
Amortization of intangibles		3,534		3,422		3,746
Furniture and equipment expense		10,773		10,435		9,734
Insurance		6,821		8,983		12,072
Marketing		2,967		3,656		3,775
Postage and telephone		6,060		6,648		6,903
Other		18,715		18,438		18,109
Total other expense	$	188,317	$	187,107	$	188,725
Full time equivalent employees		1,920		1,969		2,024

Salaries and employee benefits expense increased by $3.8 million or 3.8% to $102.1 million in 2011 and decreased by $2.9 million or 2.9% to $98.3 million in 2010.  The increase in 2011 was primarily related to an increase in employee benefit costs, due to an increase in medical claims of $2.6 million.  Full-time equivalent employees at year-end 2011 were 1,920, compared to 1,969 at year-end 2010 and 2,024 at year-end 2009.  A year ago, Park’s management projected that salaries and benefit expense would be $102 million for 2011.  The actual performance for the year was consistent with this estimate.  For 2012, management is projecting a decline in salaries and employee benefits expense to $95 million to $97 million, primarily due to the sale of Vision Bank.

Fees and service charges increased by $1.1 million or 5.7% to $21.1 million in 2011 and increased by $4.0 million or 25.3% to $20.0 million in 2010.  This subcategory of total other expense includes legal fees, management consulting fees, director fees, audit fees, regulatory examination fees and memberships in industry associations.  The increase in fees and service charges expense in both 2010 and 2011 was primarily due to an increase in legal fees and consulting fees.  This additional expense was primarily related to an increase in costs associated with the workout of problem loans at Park’s Vision Bank subsidiary.  Park’s management expects that fees and service charges will be approximately $17 million to $18 million in 2012.

Insurance expense decreased by $2.2 million or 24.1% to $6.8 million in 2011 and decreased by $3.1 million or 25.6% to $9.0 million in 2010.  During the third quarter of 2011, Park began recognizing insurance expense for premiums paid to the FDIC based on a new assessment methodology utilizing total assets less tangible equity. The new methodology resulted in a decline in insurance expense in the second half of 2011 and will impact the full 2012 year.  Park’s management expects that insurance expense will be between $5 million to $6 million in 2012.

The subcategory “other” expense includes expenses for supplies, travel, charitable contributions, amortization of low income housing tax investments, state taxes, expenses pertaining to other real estate owned and other miscellaneous expenses.  The subcategory other expense increased by $276,000 or 1.5% to $18.7 million in 2011 and increased by $329,000 or 1.8% to $18.4 million in 2010.

21

A year ago, Park’s management projected that total other expense would be approximately $183 million to $187 million in 2011.  The actual expense for the year of $188.3 million was $1.3 million or 0.7% higher than the upper end of management’s estimate.  Management expects that total other expense for 2012 will be approximately $170 million to $175 million.

Income Taxes: Federal income tax expense was $28.3 million in 2011, compared to $17.8 million in 2010 and $25.4 million in 2009.  Federal income tax expense as a percentage of income before taxes, adjusted for the state income tax expense or benefit, was 25.6% in 2011, compared to 23.4% in 2010 and to 25.5% in 2009.  A lower federal effective tax rate than the statutory rate of 35% is primarily due to tax-exempt interest income from state and municipal investments and loans, low income housing tax credits and income from bank owned life insurance.  For the year ending December 31, 2012, management expects the effective federal income tax rate will be between 26% and 28%.

State income tax expense was $6.1 million in 2011, compared to state income tax benefits of $1.2 million in 2010 and $2.5 million in 2009.  All of the state income tax expense or benefit pertains to Vision Bank, as Park and its Ohio-based subsidiaries do not pay state income tax to the state of Ohio, but pay franchise tax based on year-end equity.  The franchise tax expense is included in “state taxes” as part of total other expense on Park’s Consolidated Statements of Income.

Park recognized $6.1 million in state tax expense during 2011, which was the charge necessary to write off the previously reported state operating loss carryforward asset and other state deferred tax assets at Vision Bank. Prior to the execution of the Purchase Agreement with Centennial, management of Park believed that a merger of Vision Bank into The Park National Bank (the national bank subsidiary of Park) would enable Park to fully utilize the state net operating loss carryforward asset recorded at Vision Bank. The structure of the transactions contemplated by the Purchase Agreement will not allow either the buyer or the seller to benefit from the previously recorded net operating loss carryforward asset at Vision Bank to offset future taxable income; therefore, this asset was written off by Vision Bank at December 31, 2011.

State income tax expense was a credit in 2010 and 2009 as a result of losses at Vision Bank in those years.  Park performed an analysis in those years to determine if a valuation allowance against deferred tax assets was required in accordance with GAAP.  Vision Bank is subject to state income tax in Alabama and Florida.  In 2010, a state tax benefit of $1.16 million was recorded by Vision Bank, consisting of a gross benefit of $3.46 million and a valuation allowance of $2.30 million ($1.5 million net of the federal income tax benefit).

CREDIT EXPERIENCE

Provision for Loan Losses: The provision for loan losses is the amount added to the allowance for loan losses to absorb future loan charge-offs. The amount of the loan loss provision is determined by management after reviewing the risk characteristics of the loan portfolio, historic and current loan loss experience and current economic conditions.

The provision for loan losses was $63.3 million in 2011, $87.1 million in 2010 and $68.8 million in 2009. Net loan charge-offs were $125.1 million in 2011, $60.2 million in 2010 and $52.2 million in 2009. The ratio of net loan charge-offs to average loans was 2.65% in 2011, 1.30% in 2010 and 1.14% in 2009.

The loan loss provision for Vision Bank was $31.1 million in 2011, $61.4 million in 2010 and $44.4 million in 2009.  Net loan charge-offs for Vision Bank were $75.9 million in 2011, $36.6 million in 2010 and $28.9 million in 2009. Vision Bank’s ratio of net loan charge-offs to average loans was 13.04% in 2011, 5.48% in 2010 and 4.18% in 2009.

Park’s Ohio-based subsidiaries had a combined loan loss provision of $32.2 million in 2011, $25.7 million in 2010 and $24.4 million in 2009. Net loan charge-offs for Park’s Ohio-based subsidiaries were $49.2 million in 2011, $23.6 million in 2010 and $23.3 million in 2009. The net loan charge-off ratio for Park’s Ohio-based subsidiaries was 1.19% for 2011 and 0.60% for both 2010 and 2009.  Of the $49.2 million in net loan charge-offs for Park’s Ohio-based subsidiaries in 2011, $18.1 million related to participations in Vision Bank loans that PNB had purchased.  Absent the charge-offs on these Vision Bank loan participations, net charge-offs for Park’s Ohio-based operations were $31.1 million and the net loan charge-off ratio was 0.75% for 2011.

At year-end 2011, the allowance for loan losses was $68.4 million or 1.59% of total loans outstanding, compared to $143.6 million or 3.03% of total loans outstanding at year-end 2010 and $116.7 million or 2.52% of total loans outstanding at year-end 2009. The decrease in the allowance for loan losses as a percentage of total loans outstanding in 2011 is primarily due to the significant decrease in specific reserves established for impaired commercial loans.  The table below provides additional information related to specific reserves on impaired commercial loans and general reserves for all other loans in Park’s portfolio at December 31, 2011, 2010 and 2009.

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Table 21 - General Reserve Trends - Park National Corporation
Year Ended December 31,
(In thousands)	2011			2010			2009
Allowance for loan losses, end of period	$	68,444		$	143,575		$	116,717
Specific reserves		15,935			66,904			36,721
General reserves	$	52,509		$	76,671		$	79,996
Total loans	$	4,317,099		$	4,732,685		$	4,640,432
Impaired commercial loans		187,074			250,933			201,143
Non-impaired loans	$	4,130,025		$	4,481,752		$	4,439,289
Allowance for loan losses as a % of period end loans		1.59	%		3.03	%		2.52	%
General reserves as a % of non-impaired loans		1.27	%		1.71	%		1.80	%

The table below provides information related to the specific reserves on impaired commercial loans and general reserves for all other loans in the retained Vision Bank portfolio at December 31, 2011, as well as historical Vision Bank information at December 31, 2010 and 2009.  The retained portfolio at December 31, 2011 represents those loans that will remain with Vision Bank and will become assets of SE, LLC as a result of the merger of Vision Bank into SE, LLC subsequent to the close of the Vision Bank sale.

Table 22 - General Reserve Trends - Vision Bank
Year Ended December 31,	2011
(In thousands)	Retained portfolio			2010			2009
Allowance for loan losses, end of period	$	10,739		$	68,937		$	44,087
Specific reserves		8,889			53,928			29,225
General reserves	$	1,850		$	15,009		$	14,862
Total loans	$	123,883		$	640,580		$	677,018
Impaired commercial loans		91,965			160,239			139,310
Non-impaired loans	$	31,918		$	480,341		$	537,708
Allowance for loan losses as a % of period end loans		8.67	%		10.76	%		6.51	%
General reserves as a % of non-impaired loans		5.80	%		3.12	%		2.76	%

The table below provides information related to the specific reserves on impaired commercial loans and general reserves for all other loans in Park’s Ohio-based subsidiaries portfolio at December 31, 2011, 2010 and 2009.

Table 23 - General Reserve Trends - Park's Ohio-Based Subsidiaries
Year Ended December 31,
(In thousands)	2011			2010			2009
Allowance for loan losses, end of period	$	57,705		$	74,638		$	72,630
Specific reserves		7,046			12,976			7,496
General reserves	$	50,659		$	61,662		$	65,134
Total loans	$	4,193,216		$	4,092,105		$	3,963,414
Impaired commercial loans		95,109			90,694			61,833
Non-impaired loans	$	4,098,107		$	4,001,411		$	3,901,581
Allowance for loan losses as a % of period end loans		1.38	%		1.82	%		1.83	%
General reserves as a % of non-impaired loans		1.24	%		1.54	%		1.67	%

23

As disclosed in Table 21 above, Park’s general reserves were $52.5 million at December 31, 2011, a decline of approximately $24.2 million in 2011 from $76.7 million at December 31, 2010.  A significant portion of the decline in general reserves is due to the impact of the sale of Vision Bank, as $13.1 million of general reserves were transferred to assets held for sale at December 31, 2011.  As such, the Vision Bank sale  results in a significant decline in non-impaired loans and the general reserves associated with those loans.  The retained Vision Bank loan portfolio, as noted in Table 22 above, had a general reserve balance of $1.85 million at December 31, 2011, a decline of $13.2 million from the general reserve balance of $15.0 million at December 31, 2010.  The remaining decline in general reserves of $11.0 million is a result of declines in new nonaccrual loans and delinquent loans throughout Park’s loan portfolio.  Management expects new nonaccrual loans in 2012 will continue to be well below levels experienced in 2009 and 2010, and as a result of the Vision Bank sale, will also decline from the levels experienced in 2011. The following table shows new nonaccrual loans for 2011 and the two previous years.

Table 24 – New nonaccrual loan information
Year Ended December 31,
(In thousands)	2011		2010		2009
Nonaccrual loans, beginning of period	$	289,268	$	233,544	$	159,512
New nonaccrual loans – Ohio-based subsidiaries		78,316		85,081		57,641
New nonaccrual loans – Vision Bank		45,842		90,094		126,540
Resolved nonaccrual loans		218,320		119,451		110,149
Nonaccrual loans, end of period	$	195,106	$	289,268	$	233,544

Management believes that the allowance for loan losses at year-end 2011 is adequate to absorb probable incurred credit losses in the loan portfolio. See Note 1 of the Notes to Consolidated Financial Statements and the discussion under the heading “Critical Accounting Policies” earlier in this Financial Review for additional information on management’s evaluation of the adequacy of the allowance for loan losses.

Management expects the loan loss provision for 2012 will be approximately $20 million to $27 million. This estimate reflects management’s expectation that: (1) future declines in collateral values will be moderate as the economy continues to improve and pricing stabilizes throughout 2012; (2) new nonperforming loans will continue to decline in 2012; and (3) loan delinquencies continue to remain at or near their current low levels.  This estimated range could change significantly as circumstances for individual loans and economic conditions change.

A year ago, management projected the provision for loan losses would be $47 million to $57 million in 2011.  The actual performance was above the high end of our expectation by $6.3 million, at $63.3 million for the 2011 year.  As previously discussed, Park restated its financial statements for the year ended December 31, 2010 and for each of the quarterly periods in 2011.  This restatement resulted in a $22.2 million increase to the provision for loan losses for the year ended December 31, 2010 and a decrease to the provision for loan losses of $12.9 million for the nine months ended September 30, 2011.  As discussed throughout the remainder of this “Credit Experience” section, the primary reasons that the provision for loan losses was greater than management’s projection were declines in collateral values for those loans that are collateral dependent.  The table below provides a summary of the loan loss experience over the past five years:

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Table 25  -  Summary of Loan Loss Experience
(In thousands)	2011			2010			2009			2008			2007
Average loans (net of unearned interest)	$	4,713,511		$	4,642,478		$	4,594,436		$	4,354,520		$	4,011,307
Allowance for loan losses:
Beginning balance		143,575			116,717			100,088			87,102			70,500
Charge-offs:
Commercial, financial
and agricultural		18,350			8,484			10,047			2,953			4,170
Real estate - construction		64,166			23,308			21,956			34,052			7,899
Real estate - residential		20,691			18,401			11,765			12,600			5,785
Real estate - commercial		23,063			7,748			5,662			4,126			1,899
Consumer		7,612			8,373			9,583			9,181			8,020
Leases		-			-			9			4			3
Total charge-offs	$	133,882		$	66,314		$	59,022		$	62,916		$	27,776
Recoveries:
Commercial, financial
and agricultural	$	1,402		$	1,237		$	1,010		$	861		$	1,011
Real estate - construction		1,463			813			1,322			137			180
Real estate - residential		1,719			1,429			1,723			1,128			718
Real estate - commercial		1,825			850			771			451			560
Consumer		2,385			1,763			2,001			2,807			3,035
Leases		4			-			3			31			64
Total recoveries	$	8,798		$	6,092		$	6,830		$	5,415		$	5,568
Net charge-offs	$	125,084		$	60,222		$	52,192		$	57,501		$	22,208
Provision charged to earnings		63,272			87,080			68,821			70,487			29,476
Transfer of loans at fair value		(219	)		-			-			-			-
Allowance for loan losses acquired          (transferred) related to Vision Bank		(13,100	)		-			-			-			9,334
Ending balance	$	68,444		$	143,575		$	116,717		$	100,088		$	87,102
Ratio of net charge-offs to average loans		2.65	%		1.30	%		1.14	%		1.32	%		0.55	%
Ratio of allowance for loan losses
to end of year loans, net of
unearned interest		1.59	%		3.03	%		2.52	%		2.23	%		2.06	%

25

The following table summarizes the allocation of the allowance for loan losses for the past five years:

Table 26 - Allocation of Allowance for Loan Losses
	2011					2010					2009					2008					2007
			Percent					Percent					Percent					Percent					Percent
			of Loans					of Loans					of Loans					of Loans					of Loans
December 31,			Per					Per					Per					Per					Per
(In thousands)	Allowance		Category			Allowance		Category			Allowance		Category			Allowance		Category			Allowance		Category
Commercial,
financial and
Agricultural	$	16,950		17.23	%	$	11,555		15.59	%	$	14,725		16.19	%	$	14,286		15.90	%	$	14,557		14.52	%
Real estate -
construction		15,539		5.04	%		70,462		8.59	%		47,521		10.68	%		24,794		11.88	%		20,007		12.70	%
Real estate -
residential		14,433		37.72	%		30,259		35.75	%		19,753		33.51	%		22,077		34.74	%		15,997		35.06	%
Real estate -
commercial		15,692		25.68	%		24,369		25.92	%		23,970		24.37	%		15,498		23.06	%		15,989		23.51	%
Consumer		5,830		14.28	%		6,925		14.09	%		10,713		15.18	%		23,391		14.33	%		20,477		14.05	%
Leases		-		0.05	%		5		0.06	%		35		0.07	%		42		0.09	%		75		0.16	%
Total	$	68,444		100.00	%	$	143,575		100.00	%	$	116,717		100.00	%	$	100,088		100.00	%	$	87,102		100.00	%

As of December 31, 2011, Park had no significant concentrations of loans to borrowers engaged in the same or similar industries nor did Park have any loans to foreign governments.

Nonperforming Assets: Nonperforming loans include: 1) loans whose interest is accounted for on a nonaccrual basis; 2) renegotiated loans on accrual status; and 3) loans which are contractually past due 90 days or more as to principal or interest payments but whose interest continues to accrue.  Prior to Park’s adoption of ASU 2011-02, Park classified all troubled debt restructurings (TDRs) as nonaccrual loans. With the adoption of ASU 2011-02, management determined it was appropriate to return certain TDRs to accrual status. Specifically, if the restructured note has been current for a period of at least six months, and management expects the borrower will remain current throughout the renegotiated contract, the loan may be returned to accrual status. At December 31, 2011, management deemed it appropriate to return $28.6 million TDRs to accrual status, while the remaining $92.1 million of TDRs are on nonaccrual status.  At December 31, 2010, there were $80.7 million of troubled debt restructurings included in nonaccrual loan totals.  Other real estate owned results from taking possession of property used as collateral for a defaulted loan.

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The following is a summary of Park National Corporation’s nonaccrual loans, renegotiated loans not currently on nonaccrual, loans past due 90 days or more and still accruing and other real estate owned for the last five years:

Table 27  -  Park - Nonperforming Assets
December 31, (In thousands)	2011			2010			2009			2008			2007
Nonaccrual loans	$	195,106		$	289,268		$	233,544		$	159,512		$	101,128
Renegotiated loans		28,607			-			142			2,845			2,804
Loans past due 90 days or more		3,489			3,590			14,773			5,421			4,545
Total nonperforming loans		227,202			292,858			248,459			167,778			108,477
Other real estate owned – Park National Bank		13,240			8,385			6,037			6,149			6,369
Other real estate owned – Vision Bank		-			33,324			35,203			19,699			7,074
Other real estate owned – SE, LLC		29,032			-			-			-			-
Total nonperforming assets	$	269,474		$	334,567		$	289,699		$	193,626		$	121,920
Percentage of nonperforming loans to loans		5.26	%		6.19	%		5.35	%		3.74	%		2.57	%
Percentage of nonperforming assets to loans		6.24	%		7.07	%		6.24	%		4.31	%		2.89	%
Percentage of nonperforming assets to total assets		3.86	%		4.59	%		4.11	%		2.74	%		1.88	%

Tax equivalent interest income from loans for 2011 was $264.2 million.  Park has forgone interest income of approximately $12.8 million from nonaccrual loans as of December 31, 2011 that would have been earned during the year if all loans had performed in accordance with their original terms.

During the first quarter of 2011, Park formed SE, LLC, a limited liability company under the laws of the state of Ohio as a direct subsidiary of Park. The purpose of SE, LLC is to purchase OREO from Vision Bank and continue to market such property for sale. As of December 31, 2011, approximately $29.0 million of OREO was held by SE, LLC and purchased from Vision Bank (at the then current fair market value) during 2011. Management plans to continue marketing the properties held by SE, LLC and sell such properties in an efficient manner.

Vision Bank nonperforming assets for the last five years were as follows:

Table 28 - Vision Bank - Nonperforming Assets
December 31, (In thousands)	2011			2010			2009			2008			2007
Nonaccrual loans	$	98,993		$	171,453		$	148,347		$	91,206		$	63,015
Renegotiated loans		2,265			-			-			2,845			-
Loans past due 90 days or more		122			364			11,277			644			457
Total nonperforming loans		101,380			171,817			159,624			94,695			63,472
Other real estate owned		-			33,324			35,203			19,699			7,074
Total nonperforming assets	$	101,380		$	205,141		$	194,827		$	114,394		$	70,546
Percentage of nonperforming loans to loans		81.84	%		26.82	%		23.58	%		13.71	%		9.93	%
Percentage of nonperforming assets to loans		81.84	%		32.02	%		28.78	%		16.57	%		11.04	%
Percentage of nonperforming assets to total assets		37.40	%		25.90	%		21.70	%		12.47	%		8.24	%

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Nonperforming assets for Park, excluding Vision Bank for the last five years were as follows:

Table 29 - Park Excluding Vision Bank - Nonperforming Assets
December 31, (In thousands)	2011			2010			2009			2008			2007
Nonaccrual loans	$	96,113		$	117,815		$	85,197		$	68,306		$	38,113
Renegotiated loans		26,342			-			142			-			2,804
Loans past due 90 days or more		3,367			3,226			3,496			4,777			4,088
Total nonperforming loans		125,822			121,041			88,835			73,083			45,005
Other real estate owned – Park National Bank		13,240			8,385			6,037			6,149			6,369
Other real estate owned – SE, LLC		29,032			-			-			-			-
Total nonperforming assets	$	168,094		$	129,426		$	94,872		$	79,232		$	51,374
Percentage of nonperforming loans to loans		3.00	%		2.96	%		2.24	%		1.92	%		1.26	%
Percentage of nonperforming assets to loans		4.01	%		3.16	%		2.39	%		2.08	%		1.43	%
Percentage of nonperforming assets to total assets		2.64	%		1.99	%		1.54	%		1.29	%		0.91	%

Economic conditions began deteriorating during the second half of 2007 and continued throughout 2008 and 2009. While conditions across the U.S. improved slightly in 2010 and 2011, the economic recovery continues to be a slow process.  Park and many other financial institutions throughout the country experienced a sharp increase in net loan charge-offs and nonperforming loans over the past five years. Financial institutions operating in Florida and Alabama (including Vision Bank) have been particularly hard hit by the severe recession as the demand for real estate and the price of real estate have sharply decreased.

Park had $134.5 million of commercial loans included on the watch list of potential problem commercial loans at December 31, 2011 compared to $238.7 million at year-end 2010 and $277.7 million at year-end 2009. Commercial loans include: (1) commercial, financial and agricultural loans, (2) commercial real estate loans, (3) certain real estate construction loans, and (4) certain residential real estate loans. Park’s watch list includes all criticized and classified commercial loans, defined by Park as loans rated special mention or worse, less those commercial loans currently considered to be impaired. As a percentage of year-end total loans, Park’s watch list of potential problem loans was 3.1% in 2011, 5.0% in 2010 and 6.0% in 2009. The existing conditions of these loans do not warrant classification as nonaccrual. However, these loans have shown some weakness and management performs additional analyses regarding a borrower’s ability to comply with payment terms for watch list loans.

Park’s allowance for loan losses includes an allocation for loans specifically identified as impaired under GAAP. At December 31, 2011, loans considered to be impaired consisted substantially of commercial loans graded as “doubtful” and placed on non-accrual status.  These specific reserves are typically based on management’s best estimate of the fair value of collateral securing these loans. The amount ultimately charged-off for these loans may be different from the specific reserve as the ultimate liquidation of the collateral may be for amounts different from management’s estimates.

When determining the quarterly loan loss provision, Park reviews the grades of commercial loans.  These loans are graded from 1 to 8.  A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss.  Commercial loans with grades of 1 to 4 (pass-rated) are considered to be of acceptable credit risk.  Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans.  Commercial loans graded 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans.  Generally, commercial loans that are graded a 6 are considered for partial charge-off.  Commercial loans that are graded a 7 (doubtful) are shown as nonperforming and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve.  Any commercial loan graded an 8 (loss) is completely charged-off.

As of December 31, 2011, management had taken partial charge-offs of approximately $103.8 million related to the $191.5 million of commercial loans considered to be impaired, compared to charge-offs of approximately $53.6 million related to the $250.9 million of impaired commercial loans at December 31, 2010.  Historically, Park’s management has been quick to recognize charge-offs on problem loans.  However, there is a higher level of uncertainty when valuing collateral in Vision Bank’s Florida and Alabama markets due to the illiquid nature of the collateral, and thus management had significant specific reserves recorded at Vision Bank of $53.9 million at December 31, 2010.  During 2011, Park determined it was appropriate to charge-off the majority of the specific reserves at Vision Bank, and total specific reserves were down to $8.9 million at December 31, 2011.

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A significant portion of Park’s allowance for loan losses is allocated to commercial loans classified as “special mention” or “substandard.” “Special mention” loans are loans that have potential weaknesses that may result in loss exposure to Park.  “Substandard” loans are those that exhibit a well defined weakness, jeopardizing repayment of the loan, resulting in a higher probability that Park will suffer a loss on the loan unless the weakness is corrected. Park’s annualized 36-month loss experience, defined as charge-offs plus changes in specific reserves, within the commercial loan portfolio has been 0.71% of the principal balance of these loans.  This annualized 36-month loss experience excludes Vision Bank loans, as the majority of the Vision Bank performing loan portfolio will be acquired by Centennial Bank.  The allowance for loan losses related to performing commercial loans was $37.9 million or 1.69% of the outstanding principal balance of other accruing commercial loans at December 31, 2011.  The overall reserve of 1.69% for other accruing commercial loans breaks down as follows: pass-rated commercial loans are reserved at 1.36%; special mention commercial loans are reserved at 5.20%; and substandard commercial loans are reserved at 14.90%.  The reserve levels for pass-rated, special mention and substandard commercial loans in excess of the annualized 36-month loss experience of 0.71% are due to the following factors which management reviews on a quarterly or annual basis:

• Loss Emergence Period Factor: Annually during the fourth quarter, management calculates the loss emergence period for each commercial loan segment.  This loss emergence period is calculated based upon the average period of time it takes a credit to move from pass-rated to nonaccrual.  If the loss emergence period for any commercial loan segment is greater than one year, management applies additional general reserves to all performing loans within that segment of the commercial loan portfolio.

• Loss Migration Factor: Park’s commercial loans are individually risk graded. If loan downgrades occur, the probability of default increases, and accordingly, management allocates a higher percentage reserve to those accruing commercial loans graded special mention and substandard.  Annually, management calculates a loss migration factor for each commercial loan segment for special mention and substandard credits based on a review of losses over the past three year period, considering how each individual credit was rated at the beginning of the three year period.

• Environmental Loss Factor: Management has identified certain macroeconomic factors that trend in accordance with losses in Park’s commercial loan portfolio.  These macroeconomic factors are reviewed quarterly and adjustments to the environmental loss factor impacting each segment in the performing commercial loan portfolio correlates to changes in the macroeconomic environment.

Generally, consumer loans are not individually graded.  Consumer loans include: (1) mortgage and installment loans included in the construction real estate segment of the loan portfolio; (2) mortgage, home equity lines of credit (HELOC), and installment loans included in the residential real estate segment of the loan portfolio; and (3) all loans included in the consumer segment of the loan portfolio.  The amount of loan loss reserve assigned to these loans is based on historical loss experience over the past 36 months.  Management generally considers a one-year coverage period (the “Historical Loss Factor”) appropriate because the probable loss on any given loan in the consumer loan pool should ordinarily become apparent in that time frame. However, management may incorporate adjustments to the Historical Loss Factor as circumstances warrant additional reserves (e.g., increased loan delinquencies, improving or deteriorating economic conditions, changes in lending management and underwriting standards, etc.).  At December 31, 2011, the coverage level within the consumer portfolio was approximately 1.38 years.

The judgmental increases discussed above incorporates management’s evaluation of the impact of environmental qualitative factors which pose additional risks and assigns a component of the allowance for loan losses in consideration of these factors.  Such environmental factors include: national and local economic trends and conditions; experience, ability and depth of lending management and staff; effects of any changes in lending policies and procedures; levels of, and trends in, consumer bankruptcies, delinquencies, impaired loans and charge-offs and recoveries.  The determination of this component of the allowance for loan losses requires considerable management judgment.  As always, management is working to address weaknesses in those loans that may result in future loss.  Actual loss experience may be more or less than the amount allocated.

CAPITAL RESOURCES

Liquidity and Interest Rate Sensitivity Management: Park’s objective in managing its liquidity is to maintain the ability to continuously meet the cash flow needs of customers, such as borrowings or deposit withdrawals, while at the same time seeking higher yields from longer-term lending and investing activities.

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Cash and cash equivalents increased by $23.7 million during 2011 to $157.5 million at year-end.  Cash provided by operating activities was $126.7 million in 2011, $126.1 million in 2010 and $72.3 million in 2009.  Net income was the primary source of cash for operating activities during each year.

Cash provided by investing activities was $271.2 million in 2011.  Cash used in investing activities was $352.1 million in 2010 and $5.3 million in 2009.  Investment security transactions are the major use or source of cash in investing activities.  Proceeds from the sale, repayment or maturity of securities provide cash and purchases of securities use cash.  Net security transactions provided cash of $354.8 million in 2011, used cash of $187.7 million in 2010 and provided cash of $202.7 million in 2009.  Another major use or source of cash in investing activities is the net increase or decrease in the loan portfolio.  Cash used by the net increase in the loan portfolio, including proceeds from the sale of loans, was $75.1 million in 2011, $152.5 million in 2010 and $199.9 million in 2009.

Cash used in financing activities was $374.2 million in 2011 and $79.2 million in 2009.  Cash provided by financing activities was $200.6 million in 2010.  A major source of cash for financing activities is the net change in deposits.  Deposits decreased and used $97.7 million of cash in 2011, and also decreased in 2010 and used cash of $92.6 million.  In 2009, deposits increased and provided cash of $426.3 million.  Another major source of cash for financing activities is short-term borrowings and long-term debt.  In 2011, net short-term borrowings declined, using $400.1 million in cash and net long-term borrowings increased, providing $186.4 million in cash.  In 2010, net short-term borrowings increased, providing $339.5 million in cash and net long-term borrowings declined, using $17.6 million in cash.  In 2009, net short-term borrowings declined, using $335.0 million in cash and net long-term borrowings declined, using $201.2 million in cash.  Park’s management generated cash in both 2010 and 2009 from the sale of common stock previously held as treasury shares.  The sale of common stock provided cash of $33.5 million in 2010 and $53.5 million in 2009.  The issuance of subordinated notes in 2009 provided cash of $35.3 million.  Additionally, cash declined by $62.9 million in 2011, $62.1 million in 2010 and $58.0 million in 2009, from cash dividends paid.

Funds are available from a number of sources, including the securities portfolio, the core deposit base, Federal Home Loan Bank borrowings and the capability to securitize or package loans for sale.  The present funding sources provide more than adequate liquidity for Park to meet its cash flow needs.

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The following table shows interest rate sensitivity data for five different time intervals as of December 31, 2011:

Table 30  -  Interest Rate Sensitivity
(In thousands)		0-3			3-12			1-3			3-5		Over 5			Total
Interest earning assets:	Months			Months			Years			Years			Years
Investment securities  (1)	$	373,909		$	644,127		$	403,371		$	128,725		$	158,341		$	1,708,473
Money market instruments		19,716			-			-			-			-			19,716
Loans  (1)		1,163,853			1,363,241			1,395,881			263,830			130,294			4,317,099
Loans held for sale		369,044			-			-			-			-			369,044
Total interest earning assets		1,926,522			2,007,368			1,799,252			392,555			288,635			6,414,332
Interest bearing liabilities:
Interest bearing transaction accounts (2)		568,504			-			468,881			-			-			1,037,385
Savings accounts (2)		203,610			-			727,917			-			-			931,527
Time deposits		344,381			692,923			332,885			127,371			1,545			1,499,105
Other		1,364			-			-			-			-			1,364
Total deposits		1,117,859			692,923			1,529,683			127,371			1,545			3,469,381
Deposits held for sale		452,667			-			-			-			-			452,667
Short-term borrowings		263,594			-			-			-			-			263,594
Long-term debt		-			15,500			151,000			52,000			604,682			823,182
Subordinated debentures/notes		15,000			-			25,000			35,250			-			75,250
Total interest bearing liabilities		1,849,120			708,423			1,705,683			214,621			606,227			5,084,074
Interest rate sensitivity gap		77,402			1,298,945			93,569			177,934			(317,592	)		1,330,258
Cumulative rate sensitivity gap		77,402			1,376,347			1,469,916			1,647,850			1,330,258
Cumulative gap as a
percentage of total
interest earning assets		1.21	%		21.46	%		22.92	%		25.69	%		20.74	%
(1) Investment securities and loans that are subject to prepayment are shown in the table by the earlier of their re-pricing date or their expected repayment date and not by their contractual maturity date. Nonaccrual loans of $195.1 million are included within the three to twelve month maturity.  (2) Management considers interest bearing transaction accounts and savings accounts to be core deposits and, therefore, not as rate sensitive as other deposit accounts and borrowed money. Accordingly, only 55% of interest bearing transaction accounts and 22% of savings accounts are considered to re-price within one year. If all of the interest bearing checking accounts and savings accounts were considered to re-price within one year, the one year cumulative gap would change from a positive 21.46% to a positive 2.80%.

The interest rate sensitivity gap analysis provides a good overall picture of Park’s static interest rate risk position.  At December 31, 2011, the cumulative interest earning assets maturing or repricing within twelve months were $3,934 million compared to the cumulative interest bearing liabilities maturing or repricing within twelve months of $2,558 million.  For the twelve-month cumulative gap position, rate sensitive assets exceed rate sensitive liabilities by $1,376 million or 21.46% of interest earning assets.

At December 31, 2011, Park had $369 million in loans held for sale which represents loans to be sold by Vision Bank to Centennial.  Also, at December 31, 2011, Park had $453 million of interest bearing deposits held for sale which represents the interest bearing deposits to be sold by Vision Bank to Centennial.  These interest earning assets and interest bearing liabilities are included in the 0-3 months portion of Table 30.

A positive twelve month cumulative rate sensitivity gap (assets exceed liabilities) would suggest that Park’s net interest margin would increase if interest rates were to increase.  Conversely, a negative twelve month cumulative rate sensitivity gap would suggest that Park’s net interest margin would decrease if interest rates were to decrease. However, the usefulness of the interest sensitivity gap analysis as a forecasting tool in projecting net interest income is limited.  The gap analysis does not consider the magnitude, timing or frequency by which assets or liabilities will reprice during a period and also contains assumptions as to the repricing of transaction and savings accounts that may not prove to be correct.

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A year ago, the cumulative twelve month interest rate sensitivity gap position at year-end 2010 was a positive $648 million or 9.53% of interest earning assets.  The percentage of interest earning assets maturing or repricing within one year was 61.3% at year-end 2011 compared to 53.7% at year-end 2010.  The percentage of interest bearing liabilities maturing or repricing within one year was 50.3% at year-end 2011 compared to 54.2% at year-end 2010.

Management supplements the interest rate sensitivity gap analysis with periodic simulations of balance sheet sensitivity under various interest rate and what-if scenarios to better forecast and manage the net interest margin.  Park’s management uses an earnings simulation model to analyze net interest income sensitivity to movements in interest rates.  This model is based on actual cash flows and repricing characteristics for balance sheet instruments and incorporates market-based assumptions regarding the impact of changing interest rates on the prepayment rate of certain assets and liabilities.  This model also includes management’s projections for activity levels of various balance sheet instruments and noninterest fee income and operating expense.  Assumptions based on the historical behavior of deposit rates and balances in relation to changes in interest rates are also incorporated into this earnings simulation model.  These assumptions are inherently uncertain and, as a result, the model cannot precisely measure net interest income and net income.  Actual results will differ from simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies.

Management uses a 50 basis point change in market interest rates per quarter for a total of 200 basis points per year in evaluating the impact of changing interest rates on net interest income and net income over a twelve month horizon.  At December 31, 2011, the earnings simulation model projected that net income would increase by 2.14% using a rising interest rate scenario and decrease by 3.52% using a declining interest rate scenario over the next year.  At December 31, 2010, the earnings simulation model projected that net income would increase by 2.4% using a rising interest rate scenario and decrease by 1.4% using a declining interest rate scenario over the next year and at December 31, 2009, the earnings simulation model projected that net income would increase by 2.2% using a rising interest rate scenario and decrease by 0.1% using a declining interest rate scenario over the next year.  Consistently, over the past several years, Park’s earnings simulation model has projected that changes in interest rates would have only a small impact on net income and the net interest margin.  Park’s net interest margin has been relatively stable over the past three years at 4.14% in 2011, 4.26% in 2010, and 4.22% in 2009.  A major goal of Park’s asset/liability committee is to maintain a relatively stable net interest margin regardless of the level of interest rates.  Management expects that the net interest margin will be approximately 3.88% to 3.98% in 2012.  The expected decline in the net interest margin in 2012 is primarily due to the decrease in long-term interest rates during the second half of 2011.  This decline in interest rates will negatively impact the yield on our investment portfolio in 2012.

CONTRACTUAL OBLIGATIONS

In the ordinary course of operations, Park enters into certain contractual obligations.  Such obligations include the funding of operations through debt issuances as well as leases for premises.  The following table summarizes Park’s significant and determinable obligations by payment date at December 31, 2011.

Further discussion of the nature of each specified obligation is included in the referenced Note to the Consolidated Financial Statements.

Table 31 - Contractual Obligations
December 31, 2011	Payments Due In

				0 -1		1 - 3		3 - 5	Over 5
(In thousands)	Note		Years		Years		Years		Years		Total
Deposits without stated maturity		8	$	2,966,009	$	-	$	-	$	-	$	2,966,009
Certificates of deposit		8		1,035,594		334,594		127,372		1,545		1,499,105
Short-term borrowings		9		263,594		-		-		-		263,594
Long-term debt		10		15,569		151,155		127,181		529,277		823,182
Subordinated debentures/notes		11		-		-		-		75,250		75,250
Operating leases		7		1,448		2,014		1,171		961		5,594
Purchase obligations				1,470		-		-		-		1,470
Total contractual obligations			$	4,283,684	$	487,763	$	255,724	$	607,033	$	5,634,204

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The Corporation’s operating lease obligations represent short-term and long-term lease and rental payments for facilities and equipment.  Purchase obligations represent obligations under agreements to purchase goods or services that are enforceable and legally binding on the Corporation.

Commitments, Contingent Liabilities, and Off-Balance Sheet Arrangements: In order to meet the financing needs of its customers, the Corporation issues loan commitments and standby letters of credit. At December 31, 2011, the Corporation had $809.1 million of loan commitments for commercial, commercial real estate, and residential real estate loans and had $18.8 million of standby letters of credit.  At December 31, 2010, the Corporation had $716.6 million of loan commitments for commercial, commercial real estate and residential real estate loans and had $24.5 million of standby letters of credit.

Commitments to extend credit under loan commitments and standby letters of credit do not necessarily represent future cash requirements.  These commitments often expire without being drawn upon.  However, all of the loan commitments and standby letters of credit are permitted to be drawn upon in 2012.  See Note 18 of the Notes to Consolidated Financial Statements for additional information on loan commitments and standby letters of credit.

The Corporation did not have any unrecorded significant contingent liabilities at December 31, 2011.

Capital: Park’s primary means of maintaining capital adequacy is through net retained earnings.  At December 31, 2011, the Corporation’s stockholders’ equity was $742.4 million, compared to $729.7 million at December 31, 2010.  Stockholders’ equity at December 31, 2011 was 10.65% of total assets compared to 10.02% of total assets at December 31, 2010.  During 2010, Park issued an aggregate of 509,184 common shares previously held as treasury shares, at a weighted average purchase price per share of $67.99, for net proceeds of $33.5 million.

Tangible stockholders’ equity (stockholders’ equity less goodwill and other intangible assets) was $667.5 million at December 31, 2011 and was $651.3 million at December 31, 2010.  At December 31, 2011, tangible stockholders’ equity was 9.68% of total tangible assets (total assets less goodwill and other intangible assets), compared to 9.04% at December 31, 2010.

Tangible common equity (tangible stockholders’ equity less the balance of the Series A Preferred Shares) was $569.4 million at December 31, 2011 compared to $554.0 million at December 31, 2010.  At December 31, 2011, tangible common equity was 8.25% of tangible assets, compared to 7.69% at December 31, 2010.

Net income for 2011 was $82.1 million, $58.1 million in 2010 and $74.2 million in 2009.

Preferred stock dividends paid as a result of Park’s participation in the CPP were $5.0 million in 2011, 2010, and 2009.  Accretion of the discount on the Series A Preferred Shares was $856,000 in 2011, $807,000 in 2010 and $762,000 in 2009.  Income available to common shareholders is net income less the preferred stock dividends and accretion.  Income available to common shareholders was $76.3 million for 2011, $52.3 million in 2010, and $68.4 million in 2009.

Cash dividends declared for common shares were $57.9 million in 2011, $57.1 million in 2010, and $53.6 million in 2009.  On a per share basis, the cash dividends declared were $3.76 per share in each of 2011, 2010 and 2009.

Park did not purchase any treasury stock during 2011, 2010 or 2009.  Treasury stock had a balance in stockholders’ equity of $77.0 million at December 31, 2011, $77.7 million at December 31, 2010, and $125.3 million at December 31, 2009.  During 2011, the value of treasury stock was reduced by $726,000 as a result of the issuance of an aggregate of 7,020 common shares to directors of the Board of Directors of Park and Park’s bank subsidiaries (and their divisions). During 2010, Park issued 437,200 shares of common stock as a result of the exercise of warrants that were originally issued in 2009.  Also during 2010, Park issued 71,984 shares of common stock resulting in a total of 509,184 shares of common stock issued in 2010, which reduced the amount of treasury stock available.  The issuance of these shares out of treasury stock reduced the value of treasury stock by the weighted average cost of $47.0 million. Additionally, the value of treasury stock was reduced by $634,000 as a result of the issuance of an aggregate of 7,020 common shares to the Board of Directors of Park and Park’s bank subsidiaries (and their divisions).  During 2009, Park issued 904,072 shares of common stock out of treasury stock. The issuance of these shares out of treasury stock during 2009 resulted in a reduction in treasury stock by the weighted average cost of $81.7 million. Additionally, the value of treasury stock was reduced by $634,000 as a result of the issuance of an aggregate of 7,020 common shares to directors of the Board of Directors of Park and Park’s bank subsidiaries (and their divisions).

33

Park did not issue any new common shares (that were not already held in treasury stock, as discussed above) in either 2011 or 2010. However, in 2010, Park recorded $0.2 million for the warrants that were issued as part of the issuance of the 71,984 common shares discussed above and also recorded a reduction of $1.1 million as warrants were either exercised or cancelled during 2010.  In 2009, Park recorded $1.1 million for the common stock warrants that were issued as part of the issuance of the 904,072 shares discussed above (see Note 1 and Note 26 of the Notes to Consolidated Financial Statements).  Common stock had a balance in stockholders’ equity of $301.2 million at each of the years ended December 31, 2011, 2010, and 2009.

Accumulated other comprehensive income (loss) was $(8.8) million at December 31, 2011 compared to $(1.9) million at December 31, 2010 and $15.7 million at December 31, 2009.  Long-term interest rates declined significantly in the fourth quarter of 2007, continued declining in 2008 and remained low throughout 2009. In 2010, long-term interest rates remained low through the first three quarters, but then increased fairly significantly during the fourth quarter.

During the 2009 year, the change in net unrealized gains, net of tax, was an increase of $3.3 million and Park realized after-tax gains of $4.8 million, resulting in an unrealized gain of $30.1 million at December 31, 2009.  During the 2010 year, the change in net unrealized gains, net of tax, was a loss of $7.3 million and Park realized after-tax gains of $7.7 million, resulting in an unrealized gain of $15.1 million at December 31, 2010.  During the 2011 year, the change in net unrealized gains, net of tax, was a gain of $16.3 million and Park realized after-tax gains of $18.7 million, resulting in an unrealized gain of $12.7 million at December 31, 2011. In addition, Park recognized other comprehensive loss of $5.0 million related to the change in Pension Plan assets and benefit obligations in 2011 compared to a loss of $2.4 million in 2010.  Finally, Park has recognized other comprehensive gain of $0.5 million in 2011 due to the mark-to-market of a cash flow hedge at December 31, 2011 compared to a $0.1 million loss in comprehensive income for the year ended December 31, 2010.

Financial institution regulators have established guidelines for minimum capital ratios for banks, thrifts, and bank holding companies.  Park’s accumulated other comprehensive income (loss) is not included in computing regulatory capital.  The minimum leverage capital ratio (defined as stockholders’ equity less intangible assets divided by tangible assets) is 4% and the well capitalized ratio is greater than or equal to 5%.  Park’s leverage ratio was 9.81% at December 31, 2011 and exceeded the minimum capital required by $409 million.  The minimum Tier 1 risk-based capital ratio (defined as leverage capital divided by risk-adjusted assets) is 4% and the well capitalized ratio is greater than or equal to 6%.  Park’s Tier 1 risk-based capital ratio was 14.15% at December 31, 2011 and exceeded the minimum capital required by $495 million.  The minimum total risk-based capital ratio (defined as leverage capital plus supplemental capital divided by risk-adjusted assets) is 8% and the well capitalized ratio is greater than or equal to 10%.  Park’s total risk-based capital ratio was 16.65% at December 31, 2011 and exceeded the minimum capital required by $422 million.

At December 31, 2011, Park exceeded the well capitalized regulatory guidelines for bank holding companies.  Park exceeded the well capitalized leverage capital ratio of 5% by $339 million, exceeded the well capitalized Tier 1 risk-based capital ratio of 6% by $398 million and exceeded the well capitalized total risk-based capital ratio of 10% by $324 million.

The two financial institution subsidiaries of Park each met the well capitalized ratio guidelines at December 31, 2011.  See Note 22 of the Notes to Consolidated Financial Statements for the capital ratios for Park and its two financial institution subsidiaries.

Effects of Inflation: Balance sheets of financial institutions typically contain assets and liabilities that are monetary in nature and, therefore, differ greatly from most commercial and industrial companies which have significant investments in premises, equipment and inventory.  During periods of inflation, financial institutions that are in a net positive monetary position will experience a decline in purchasing power, which does have an impact on growth.  Another significant effect on internal equity growth is other expenses, which tend to rise during periods of inflation.

Management believes the most significant impact on financial results is the Corporation's ability to align its asset/liability management program to react to changes in interest rates.

34

SELECTED FINANCIAL DATA

Table 32 summarizes five-year financial information.

Table 32 - Consolidated Five-Year Selected Financial Data
December 31, (Dollars in thousands, except per share data)	2011		2010		2009		2008		2007
Results of Operations:
Interest income	$	331,880	$	345,517	$	367,690	$	391,339	$	401,824
Interest expense		58,646		71,473		94,199		135,466		167,147
Net interest income		273,234		274,044		273,491		255,873		234,677
Provision for loan losses		63,272		87,080		68,821		70,487		29,476
Net interest income after provision for loan losses		209,962		186,964		204,670		185,386		205,201
Net gains on sale of securities		28,829		11,864		7,340		1,115		-
Noninterest income		66,081		63,016		73,850		83,719		71,640
Noninterest expense		188,317		187,107		188,725		234,501		224,164
Net income		82,140		58,101		74,192		13,708		22,707
Net income available to common shareholders		76,284		52,294		68,430		13,566		22,707
Per common share:
Net income per common share - basic		4.95		3.45		4.82		0.97		1.60
Net income per common share - diluted		4.95		3.45		4.82		0.97		1.60
Cash dividends declared		3.76		3.76		3.76		3.77		3.73
Average Balances:
Loans	$	4,713,511	$	4,642,478	$	4,594,436	$	4,354,520	$	4,011,307
Investment securities		1,848,880		1,746,356		1,877,303		1,801,299		1,596,205
Money market instruments and other		78,593		93,009		52,658		15,502		17,838
Total earning assets		6,640,984		6,481,843		6,524,397		6,171,321		5,625,350
Noninterest bearing deposits		999,085		907,514		818,243		739,993		697,247
Interest bearing deposits		4,193,404		4,274,501		4,232,391		3,862,780		3,706,231
Total deposits		5,192,489		5,182,015		5,050,634		4,602,773		4,403,478
Short-term borrowings	$	297,537	$	300,939	$	419,733	$	609,219	$	494,160
Long-term debt		881,921		725,356		780,435		835,522		568,575
Stockholders' equity		743,873		746,555		675,314		567,965		618,758
Common stockholders' equity		646,169		649,682		579,224		565,612		618,758
Total assets		7,206,171		7,042,750		7,035,531		6,708,086		6,169,156

Ratios:
Return on average assets (x)	1.06	%	0.74	%	0.97	%	0.20	%	0.37	%
Return on average common equity (x)	11.81	%	8.05	%	11.81	%	2.40	%	3.67	%
Net interest margin  (1)	4.14	%	4.26	%	4.22	%	4.16	%	4.20	%
Dividend payout ratio	70.50	%	98.24	%	78.27	%	387.79	%	232.35	%
Average stockholders' equity to
average total assets	10.32	%	10.60	%	9.60	%	8.47	%	10.03	%
Leverage capital	9.81	%	9.54	%	9.04	%	8.36	%	7.10	%
Tier 1 capital	14.15	%	13.24	%	12.45	%	11.69	%	10.16	%
Risk-based capital	16.65	%	15.71	%	14.89	%	13.47	%	11.97	%
(1) Computed on a fully taxable equivalent basis.
(x) Reported measure uses net income available to common shareholders.

The following table is a summary of selected quarterly results of operations for the years ended December 31, 2011 and 2010.  Certain quarterly amounts have been reclassified to conform to the year-end financial statement presentation.

35

Table 33  -  Quarterly Financial Data
(Dollars in thousands, except per share data)	Three Months Ended
2011:
		March 31		June 30		Sept. 30
		(Restated)		(Restated)		(Restated)		Dec. 31
Interest income		$	84,662	$	84,922	$	82,065	$	80,231
Interest expense			15,349		14,900		14,445		13,952
Net interest income			69,313		70,022		67,620		66,279
Provision for loan losses			14,100		12,516		16,438		20,218
Gain on sale of securities			6,635		15,362		3,465		3,367
Income before income taxes			30,532		41,000		27,075		17,948
Net income			22,196		28,954		20,381		10,609
Net income available to common shareholders			20,732		27,490		18,917		9,145
Per common share data:
Net income per common share -  basic (x)			1.35		1.79		1.23		0.59
Net income per common share -  diluted (x)			1.35		1.79		1.23		0.59
Weighted-average common stock outstanding - basic			15,398,930		15,398,919		15,398,909		15,403,861
Weighted-average common stock equivalent - diluted			15,403,420		15,399,593		15,398,909		15,403,861
2010:								(Restated)
Interest income		$	87,202	$	87,242	$	86,682	$	84,391
Interest expense			19,822		18,521		17,237		15,893
Net interest income			67,380		68,721		69,445		68,498
Provision for loan losses			16,550		13,250		14,654		42,626
Gain on sale of securities			8,304		3,515		-		45
Income before income taxes			27,954		28,632		26,625		(8,474	)
Net income			20,779		21,166		19,577		(3,421	)
Net income available to common shareholders			19,327		19,715		18,125		(4,873	)
Per common share data:
Net income per common share -  basic (x)			1.30		1.30		1.19		(0.32	)
Net income per common share -  diluted (x)			1.30		1.30		1.19		(0.32	)
Weighted-average common stock outstanding - basic			14,882,774		15,114,846		15,272,720		15,340,427
Weighted-average common stock equivalent - diluted			14,882,774		15,114,846		15,272,720		15,352,600
(x) Reported measure uses net income available to common shareholders.

Non-GAAP Financial Measures:  Park’s management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate Park’s performance.  Specifically, management reviews (i) net income available to common shareholders before impairment charge, (ii) net income available to common shareholders before impairment charge per common share-diluted, (iii) return on average assets before impairment charge, (iv) return on average common equity before impairment charge, and (v) the ratio of noninterest expense excluding impairment charge to net revenue (collectively, the “adjusted performance metrics”) and has included in this annual report information relating to the adjusted performance metrics for the twelve-month period ended December 31, 2008 and 2007.  Management believes the adjusted performance metrics present a more reasonable view of Park’s operating performance and ensures comparability of operating performance from period to period while eliminating the one-time non-recurring impairment charges.  Park has provided reconciliations of the GAAP measures to the adjusted performance metrics solely for the purpose of complying with SEC Regulation G and not as an indication that the adjusted performance metrics are a substitute for other measures determined by GAAP.

36

The following table displays net income available to common shareholders and related performance metrics after excluding the 2007 and 2008 goodwill impairment charges related to the Vision Bank acquisition.

Table 34 – Net income available to common shareholders and related performance metrics
December 31,				(Restated)
(Dollars in thousands, except per share data)	2011			2010			2009			2008			2007
Results of Operations:
Net income available to common  shareholders      excluding impairment charge (a)	$	76,284		$	52,294		$	68,430		$	68,552		$	76,742
Per common share:
Net income per common share excluding      impairment charge – diluted (a)		4.95			3.45			4.82			4.91			5.40
Ratios:
Return on average assets excluding                                                                                       impairment charge (a)(b)		1.06	%		0.74	%		0.97	%		1.02	%		1.24	%
Return on average common equity excluding      Impairment charge (a)(x)		11.81	%		8.05	%		11.81	%		12.12	%		12.40	%
Noninterest expense excluding impairment      charge to net revenue (1)		55.18	%		55.18	%		54.01	%		52.59	%		55.21	%

(1) Computed on a fully tax equivalent basis.

(x) Reported measure uses net income available to common stockholders.

(a) Net income for the year has been adjusted for the impairment charge to goodwill.  Net income before impairment charge equals net income for the year plus the impairment charge to goodwill of $54,986 and $54,035 for 2008 and 2007, respectively.

(b) Net income for the year available to common stockholders.

The Corporation's common stock (symbol: PRK) is traded on the NYSE Amex.  At December 31, 2011, the Corporation had 4,344 stockholders of record.  The following table sets forth the high, low and closing sale prices of, and dividends declared on the common stock for each quarterly period for the years ended December 31, 2011 and 2010, as reported by NYSE Amex.

Table 35  -  Market and Dividend Information

	High		Low		Last Price		Cash Dividend Declared Per Share
2011:
First Quarter	$	73.64	$	62.99	$	66.82	$	0.94
Second Quarter		69.59		62.14		65.86		0.94
Third Quarter		66.21		49.00		52.88		0.94
Fourth Quarter		65.70		49.80		65.06		0.94
2010:
First Quarter	$	64.70	$	52.58	$	62.31	$	0.94
Second Quarter		70.25		61.50		65.04		0.94
Third Quarter		67.54		59.35		64.04		0.94
Fourth Quarter		74.39		62.66		72.67		0.94

37

PERFORMANCE GRAPH

Table 36 compares the total return performance for Park common shares with the NYSE Amex Composite Index, the NASDAQ Bank Stocks Index and the SNL Financial Bank and Thrift Index for the five-year period from December 31, 2006 to December 31, 2011.  The NYSE Amex Composite Index is a market capitalization-weighted index of the stocks listed on NYSE Amex.  The NASDAQ Bank Stocks Index is comprised of all depository institutions, holding companies and other investment companies that are traded on The NASDAQ Global Select and Global Markets.  Park considers a number of bank holding companies traded on The NASDAQ Global Select to be within its peer group.  The SNL Financial Bank and Thrift Index is comprised of all publicly traded bank and thrift stocks researched by SNL Financial.

The NYSE Amex Financial Stocks Index includes the stocks of banks, thrifts, finance companies and securities broker-dealers.  Park believes that the NASDAQ Bank Stocks Index and the SNL Financial Bank and Thrift Index are more appropriate industry indices for Park to use for the five-year total return performance comparison.

 

Table 36 – Total Return Performance			Period Ending
Index	12/31/06		12/31/07		12/31/08		12/31/09		12/31/10		12/31/11
Park National Corporation		100.00		68.11		80.17		70.06		91.82		87.57
NYSE Amex Composite		100.00		121.19		72.17		97.85		122.89		130.62
NASDAQ Bank		100.00		80.09		62.84		52.60		60.04		53.74
SNL Bank and Thrift Index		100.00		76.26		43.85		43.27		48.30		37.56

The total return for Park’s common shares has underperformed the total return of the NYSE Amex Composite Index in the five-year comparison as indicated in Table 36, but outperformed both the NASDAQ Bank Stocks Index and the SNL Bank and Thrift Index for the same five-year period.  The annual compound total return on Park’s common shares for the past five years was a negative 2.6%.  By comparison, the annual compound total returns for the past five years on the NYSE Amex Composite Index, the NASDAQ Bank Stocks Index and the SNL Bank and Thrift Index were positive 5.5%, negative 11.7% and negative 17.8%, respectively.

38

Management’s Report on Internal Control Over Financial Reporting

To the Board of Directors and Stockholders

Park National Corporation

The management of Park National Corporation (the “Corporation”) is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a – 15(f) and 15d – 15(f) under the Securities Exchange Act of 1934. The Corporation’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. The Corporation’s internal control over financial reporting includes those policies and procedures that:

a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Corporation and its consolidated subsidiaries;

b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the Corporation and its consolidated subsidiaries are being made only in accordance with authorizations of management and directors of the Corporation; and

c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Corporation and its consolidated subsidiaries that could have a material effect on the financial statements.

The Corporation’s internal control over financial reporting as it relates to the financial statements is evaluated for effectiveness by management and tested for reliability through a program of internal audits. Actions are taken to correct potential deficiencies as they are identified.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluations of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Accordingly, even an effective system of internal control over financial reporting will provide only reasonable assurance with respect to financial statement preparation.

With the participation of our Chairman of the Board and Chief Executive Officer, our President and our Chief Financial

Officer, management evaluated the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2011, the end of the Corporation’s fiscal year. In making this assessment, management used the criteria set forth for effective internal control over financial reporting by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework.

Based on our assessment under the criteria described in the preceding paragraph, management concluded that the

Corporation maintained effective internal control over financial reporting as of December 31, 2011.

The Corporation’s independent registered public accounting firm, Crowe Horwath LLP, has audited the Corporation’s 2011 and 2010 consolidated financial statements included in this Annual Report and the Corporation’s internal control over financial reporting as of December 31, 2011, and has issued their Report of Independent Registered Public Accounting Firm, which appears in this Annual Report.

/s/ C. Daniel DeLawder	/s/ David L. Trautman	/s/ John W. Kozak
C. Daniel DeLawder	David L. Trautman	John W. Kozak
Chairman and Chief Executive	President	Chief Financial Officer Officer
February 29, 2012

39

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders

Park National Corporation

Newark, Ohio

We have audited the accompanying consolidated balance sheets of Park National Corporation as of December 31, 2011 and 2010 and the related consolidated statements of income, changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2011. We also have audited Park National Corporation’s internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Park National Corporation’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the company's internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Park National Corporation as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2011, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, Park National Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control – Integrated Framework issued by the COSO.

/s/ Crowe Horwath LLP

Crowe Horwath LLP

Columbus, Ohio

February 29, 2012

40

Park National Corporation and Subsidiaries

Consolidated Balance Sheets

at December 31, 2011 and 2010

(In thousands, except share and per share data)	2011			2010
Assets
Cash and due from banks	$	137,770		$	109,058
Money market instruments		19,716			24,722
Cash and cash equivalents		157,486			133,780
Investment securities:
Securities available-for-sale, at fair value (amortized cost of $801,147 and $1,274,258 at December 31, 2011 and 2010, respectively)		820,645			1,297,522
Securities held-to-maturity, at amortized cost (fair value of $834,574 and $686,114 at December 31, 2011 and 2010, respectively)		820,224			673,570
Other investment securities		67,604			68,699
Total investment securities		1,708,473			2,039,791
Total loans		4,317,099			4,732,685
Allowance for loan losses		(68,444	)		(143,575	)
Net loans		4,248,655			4,589,110
Other assets:
Bank owned life insurance		154,567			146,450
Goodwill		72,334			72,334
Other intangibles		2,509			6,043
Premises and equipment, net		53,741			69,567
Accrued interest receivable		19,697			24,137
Other real estate owned		42,272			41,709
Mortgage loan servicing rights		9,301			10,488
Other		120,748			148,852
Assets held for sale		382,462			-
Total other assets		857,631			519,580
Total assets	$	6,972,245		$	7,282,261

The accompanying notes are an integral part of the consolidated financial statements.

F-1

Park National Corporation and Subsidiaries

Consolidated Balance Sheets

at December 31, 2011 and 2010

(In thousands, except share and per share data)	2011			2010
Liabilities and stockholders’ equity
Deposits:
Noninterest bearing	$	995,733		$	937,719
Interest bearing		3,469,381			4,157,701
Total deposits		4,465,114			5,095,420
Short-term borrowings		263,594			663,669
Long-term debt		823,182			636,733
Subordinated debentures		75,250			75,250
Total borrowings		1,162,026			1,375,652
Other liabilities:
Accrued interest payable		4,916			6,123
Other		61,639			75,358
Liabilities held for sale		536,186			-
Total other liabilities		602,741			81,481
Total liabilities		6,229,881			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)		98,146			97,290
Common stock, no par value (20,000,000 shares authorized; 16,151,021 shares issued at December 31, 2011 and 16,151,062 issued at December 31, 2010)		301,202			301,204
Common stock warrants		4,297			4,473
Accumulated other comprehensive income (loss), net		(8,831	)		(1,868	)
Retained earnings		424,557			406,342
Less: Treasury stock (745,109 shares at December 31, 2011 and 752,128 shares at December 31, 2010)		(77,007	)		(77,733	)
Total stockholders’ equity		742,364			729,708
Total liabilities and stockholders’ equity	$	6,972,245		$	7,282,261

The accompanying notes are an integral part of the consolidated financial statements.

F-2

Park National Corporation and Subsidiaries

Consolidated Statements of Income

for years ended December 31, 2011, 2010 and 2009

(In thousands, except per share data)	2011			2010			2009
Interest and dividend income:
Interest and fees on loans	$	262,458		$	267,692		$	275,599
Interest and dividends on:
Obligations of U.S. Government, its agencies and other securities		68,873			76,839			90,558
Obligations of states and political subdivisions		371			786			1,417
Other interest income		178			200			116
Total interest and dividend income		331,880			345,517			367,690
Interest expense:
Interest on deposits:
Demand and savings deposits		3,812			5,753			10,815
Time deposits		23,842			36,212			53,805
Interest on short-term borrowings		823			1,181			3,209
Interest on long-term debt		30,169			28,327			26,370
Total interest expense		58,646			71,473			94,199
Net interest income		273,234			274,044			273,491
Provision for loan losses		63,272			87,080			68,821
Net interest income after provision for loan losses		209,962			186,964			204,670
Other income:
Income from fiduciary activities		14,965			13,874			12,468
Service charges on deposit accounts		18,307			19,717			21,985
Net gains on sales of securities		28,829			11,864			7,340
Other service income		10,606			13,816			18,767
Checkcard fee income		12,496			11,177			9,339
Bank owned life insurance income		5,089			4,978			5,050
ATM fees		2,703			2,951			3,082
OREO devaluations		(8,219	)		(13,206	)		(6,818	)
Other		10,134			9,709			9,977
Total other income		94,910		$	74,880		$	81,190

The accompanying notes are an integral part of the consolidated financial statements.

F-3

Park National Corporation and Subsidiaries

Consolidated Statements of Income

for years ended December 31, 2011, 2010 and 2009

(In thousands, except per share data)	2011		2010			2009
Other expense:
Salaries and employee benefits	$	102,068	$	98,315		$	101,225
Data processing fees		4,965		5,728			5,674
Professional fees and services		21,119		19,972			15,935
Net occupancy expense of bank premises		11,295		11,510			11,552
Amortization of intangibles		3,534		3,422			3,746
Furniture and equipment expense		10,773		10,435			9,734
Insurance		6,821		8,983			12,072
Marketing		2,967		3,656			3,775
Postage and telephone		6,060		6,648			6,903
State taxes		1,544		3,171			3,206
Other		17,171		15,267			14,903
Total other expense		188,317		187,107			188,725
Income before income taxes		116,555		74,737			97,135
State income taxes (benefit)		6,088		(1,161	)		(2,461	)
Federal income taxes		28,327		17,797			25,404
Net income	$	82,140	$	58,101		$	74,192
		5,856		5,807			5,762
Preferred stock dividends and accretion
Income available to common shareholders	$	76,284	$	52,294		$	68,430
Earnings per common share:
Basic	$	4.95	$	3.45		$	4.82
Diluted	$	4.95	$	3.45		$	4.82

The accompanying notes are an integral part of the consolidated financial statements.

F-4

Park National Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity

for the years ended December 31, 2011, 2010 and 2009

																	Accumulated
	Preferred Stock				Common Stock												Other
	Shares				Shares						Retained			Treasury			Comprehensive						Comprehensive
(In thousands, except share and per share data)	Outstanding		Amount		Outstanding			Amount			Earnings			Stock			Income (Loss)			Total			Income
Balance, January 1, 2009		100,000	$	95,721		13,971,727		$	305,507		$	438,504		$	(207,665	)	$	10,596		$	642,663
Net income						-			-			74,192			-			-			74,192		$	74,192
Other comprehensive income (loss), net of tax:
Change in funded status of pension plan, net of of income taxes of $3,383																		6,283			6,283			6,283
Unrealized net holding gain on cash flow hedge, net of income taxes of $159																		295			295			295
Unrealized net holding loss on securities available-for-sale, net of income taxes of $(815)																		(1,513	)		(1,513	)		(1,513	)
Total comprehensive income																							$	79,257
Cash dividends, $3.76 per share						-			-			(53,563	)		-			-			(53,563	)
Cash payment for fractional shares in dividend reinvestment plan						(39	)		(2	)		-			-			-			(2	)
Reissuance of common stock from treasury shares held						904,072			-			(29,299	)		81,710			-			52,411
Accretion of discount on preferred stock				762								(762	)								-
Common stock warrants issued						-			1,064												1,064
Preferred stock dividends												(5,000	)								(5,000	)
Treasury stock reissued for director grants						7,020						(200	)		634						434
Balance, December 31, 2009		100,000	$	96,483		14,882,780		$	306,569		$	423,872		$	(125,321	)	$	15,661		$	717,264
Net income												58,101									58,101		$	58,101
Other comprehensive income (loss), net of tax:
Change in funded status of pension plan, net of of income taxes of $(1,307)																		(2,427	)		(2,427	)		(2,427	)
Unrealized net holding loss on cash flow hedge, net of income taxes of $(53)																		(98	)		(98	)		(98	)
Unrealized net holding loss on securities available-for-sale, net of income taxes of $(8,078)																		(15,004	)		(15,004	)		(15,004	)
Total comprehensive income																							$	40,572
Cash dividends, $3.76 per share												(57,076	)								(57,076	)
Cash payment for fractional shares in dividend reinvestment plan						(50	)		(4	)											(4	)
Reissuance of common stock from treasury shares held						509,184			(898	)		(12,729	)		46,954						33,327
Accretion of discount on preferred stock				807								(807	)								-
Common stock warrants issued									176												176
Common stock warrants expired									(166	)		166									-
Preferred stock dividends												(5,000	)								(5,000	)
Treasury stock reissued for director grants						7,020						(185	)		634						449
Balance, December 31, 2010		100,000	$	97,290		15,398,934		$	305,677		$	406,342		$	(77,733	)	$	(1,868	)	$	729,708
Net income												82,140									82,140			82,140
Other comprehensive income (loss), net of tax:
Change in funded status of pension plan, net of of income taxes of $(2,707)																		(5,027	)		(5,027	)		(5,027	)
Unrealized net holding gain on cash flow hedge, net of income taxes of $276																		512			512			512
Unrealized net holding loss on securities available-for-sale, net of income taxes of $(1,318)																		(2,448	)		(2,448	)		(2,448	)
Total comprehensive income																								75,117
Cash dividends, $3.76 per share												(57,907	)								(57,907	)
Cash payment for fractional shares in dividend reinvestment plan						(42	)		(2	)											(2	)
Accretion of discount on preferred stock				856								(856	)								-
Common stock warrants expired									(176	)		176									-
Preferred stock dividends												(5,000	)								(5,000	)
Treasury stock reissued for director grants						7,020						(338	)		726						388
Balance, December 31, 2011		100,000	$	98,146		15,405,912		$	305,499		$	424,557		$	(77,007	)	$	(8,831	)	$	742,364

F-5

Park National Corporation and Subsidiaries

Consolidated Statements of Cash Flows

for the years ended December 31, 2011, 2010 and 2009

(In thousands)	2011			2010			2009
Operating activities:
Net income	$	82,140		$	58,101		$	74,192
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		63,272			87,080			68,821
Amortization of loan fees and costs, net		2,871			4,179			3,500
Provision for depreciation		7,583			7,126			7,473
Other than temporary impairment on investment securities		-			23			613
Amortization of intangible assets		3,534			3,422			3,746
Amortization/(accretion) of investment securities		490			(2,413	)		(2,682	)
Deferred income tax (benefit)		28,466			(9,603	)		(8,932	)
Realized net investment security gains		(28,829	)		(11,864	)		(7,340	)
Compensation expense for issuance of treasury stock to directors		388			449			434
OREO devaluations		8,219			13,206			6,818
Changes in assets and liabilities:
Increase in other assets		(23,811	)		(23,752	)		(43,683	)
Increase (decrease) in other liabilities		(10,826	)		180			(30,622	)
Cash included in assets held for sale		(6,766	)		-			-
Net cash provided by operating activities		126,731			126,134			72,338
Investing activities:
Proceeds from sales of available-for-sale securities		584,573			460,192			204,304
Proceeds from sales of held-to-maturity securities		25,410			-			-
Proceeds from calls and maturities of securities:
Held-to-maturity		454,937			146,986			40,105
Available-for-sale		557,552			2,238,059			426,841
Purchase of securities:
Held-to-maturity		(625,925	)		(313,642	)		(118,667	)
Available-for-sale		(641,751	)		(2,719,265	)		(349,895	)
Net decrease (increase) in other investments		1,095			220			(114	)
Net loan originations, excluding loan sales		(344,979	)		(595,835	)		(814,981	)
Proceeds from sale of loans		269,922			443,369			615,072
Purchases of bank owned life insurance, net		(3,000	)		(4,562	)		-
Purchases of premises and equipment, net		(6,618	)		(7,602	)		(8,011	)
Net cash provided by (used in) investing activities		271,216			(352,080	)		(5,346	)
Financing activities
Net (decrease) increase in deposits		(97,708	)		(92,632	)		426,302
Net decrease (increase) in short-term borrowings		(400,075	)		339,450			(334,977	)
Issuance of treasury stock, net		-			33,541			53,475
Proceeds from issuance of subordinated notes		-			-			35,250
Proceeds from long-term debt		203,000			-			60,100
Repayment of long-term debt		(16,551	)		(17,648	)		(261,278	)
Cash dividends paid		(62,907	)		(62,076	)		(58,035	)
Net cash (used in) provided by financing activities		(374,241	)		200,635			(79,163	)
Increase (decrease) in cash and cash equivalents		23,706			(25,311	)		(12,171	)
Cash and cash equivalents at beginning of year		133,780			159,091			171,262
Cash and cash equivalents at end of year	$	157,486		$	133,780		$	159,091

The accompanying notes are an integral part of the consolidated financial statements.

F-6

Notes to Consolidated Financial Statements

1. Summary of Significant Accounting Policies

The following is a summary of significant accounting policies followed in the preparation of the consolidated financial statements:

Principles of Consolidation

The consolidated financial statements include the accounts of Park National Corporation and its subsidiaries (“Park”, the “Company” or the “Corporation”). Material intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management has identified the allowance for loan losses, accounting for Other Real Estate Owned (“OREO”) and accounting for goodwill as significant estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year presentation.

Subsequent Events

Management has evaluated events occurring subsequent to the balance sheet date through February 29, 2012, determining no events require additional disclosure in these consolidated financial statements, with the exception of the subsequent event discussed in Note 27 of these Notes to Consolidated Financial Statements.

Restrictions on Cash and Due from Banks

The Corporation’s two bank subsidiaries are required to maintain average reserve balances with the Federal Reserve Bank. The average required reserve balance was approximately $38.1 million at December 31, 2011 and $37.8 million at December 31, 2010. No other compensating balance arrangements were in existence at December 31, 2011.

Investment Securities

Investment securities are classified upon acquisition into one of three categories: held-to-maturity, available-for-sale, or trading (see Note 4 of these Notes to Consolidated Financial Statements).

Held-to-maturity securities are those securities that the Corporation has the positive intent and ability to hold to maturity and are recorded at amortized cost. Available-for-sale securities are those securities that would be available to be sold in the future in response to the Corporation’s liquidity needs, changes in market interest rates, and asset-liability management strategies, among other reasons. Available-for-sale securities are reported at fair value, with unrealized holding gains and losses excluded from earnings but included in other comprehensive income, net of applicable taxes. The Corporation did not hold any trading securities during any period presented.

Available-for-sale and held-to-maturity securities are evaluated quarterly for potential other-than-temporary impairment. Management considers the facts related to each security including the nature of the security, the amount and duration of the loss, the credit quality of the issuer, the expectations for that security’s performance and whether Park intends to sell, or it is more likely than not to be required to sell, a security in an unrealized loss position before recovery of it’s amortized cost basis. Declines in equity securities that are considered to be other-than-temporary are recorded as a charge to earnings in the Consolidated Statements of Income. Declines in debt securities that are considered to be other-than-temporary are separated into (1) the amount of the total impairment related to credit loss and (2) the amount of the total impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total impairment related to all other factors is recognized in other comprehensive income.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated.

Gains and losses realized on the sale of investment securities are recorded on the trade date and determined using the specific identification basis.

1

Notes to Consolidated Financial Statements

Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock

Park’s two separately chartered banks, The Park National Bank (PNB) and Vision Bank (“VB” or “Vision”), are members of the FHLB. Additionally, PNB is a member of the FRB. Members are required to own a certain amount of stock based on their level of borrowings and other factors and may invest in additional amounts. FHLB and FRB stock are carried at cost, classified as restricted securities and are carried at their redemption value. Both cash and stock dividends are reported as income.

Bank Owned Life Insurance

Park has purchased life insurance policies on directors and certain key officers. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

Mortgage Loans Held for Sale

Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale were $11.5 million and $8.3 million at December 31, 2011 and 2010, respectively. These amounts are included in loans on the Consolidated Balance Sheets.

Mortgage Banking Derivatives

Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on sales of loans.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at their outstanding principal balances adjusted for any charge-offs, any deferred fees or costs on originated loans, and any unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan origination fees and costs over the loan term. Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) those commercial loans in the real estate construction loan segment; and (4) those commercial loans in the residential real estate loan segment. Consumer loans include: (1) mortgage and installment loans included in the real estate construction segment; (2) mortgage, home equity lines of credit (HELOC), and installment loans included in the residential real estate segment; and (3) all loans included in the consumer segment. Generally, commercial loans are placed on nonaccrual status at 90 days past due and consumer and residential mortgage loans are placed on nonaccrual status at 120 days past due. Accrued interest on these loans is considered a loss, unless the loan is well-secured and in the process of collection. Commercial loans placed on nonaccrual status are considered impaired (See Note 5 of these Notes to Consolidated Financial Statements). For loans which are on nonaccrual status, it is Park’s policy to reverse interest previously accrued on the loans against interest income. Interest on such loans is thereafter recorded on a cash basis and is included in earnings only when cash is actually received. Park’s charge-off policy for commercial loans requires management to establish a specific reserve or record a charge-off as soon as it is apparent that the borrower is troubled and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing the loan. The Company’s charge-off policy for consumer loans is dependent on the class of the loan. Residential mortgage loans and HELOC are typically charged down to the value of the collateral, less estimated selling costs at 180 days past due. The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due.

The delinquency status of a loan is based on contractual terms and not on how recently payments have been received. Loans are removed from nonaccrual status when loan payments have been received to cure the delinquency status and the loan is deemed to be well-secured by management.

A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below:

Commercial, financial and agricultural: Commercial, financial and agricultural loans are made for a wide variety of general corporate purposes, including financing for commercial and industrial businesses, financing for equipment, inventories and accounts receivable, acquisition financing and commercial leasing. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. The commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in (i) the 28 Ohio counties and one Kentucky county where Park National Bank operates and (ii) the five Florida counties and one Alabama county where Vision Bank operates. The primary industries represented by these customers include manufacturing, retail trade, health care and other services.

2

Notes to Consolidated Financial Statements

Commercial real estate: Commercial real estate loans (“CRE loans”) include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate. Each subsidiary bank generally requires that the CRE loan amount be no more than 85% of the purchase price or the appraised value of the commercial real estate securing the CRE loan, whichever is less. CRE loans made for each subsidiary bank’s portfolio generally have a variable interest rate. A CRE loan may be made with a fixed interest rate for a term generally not exceeding five years.

Construction real estate: The Company defines construction loans as both commercial construction loans and residential construction loans where the loan proceeds are used exclusively for the improvement of real estate as to which the Company holds a mortgage. Construction loans may be in the form of a permanent loan or short-term construction loan, depending on the needs of the individual borrower. Generally, the permanent construction loans have a variable interest rate although a permanent construction loan may be made with a fixed interest rate for a term generally not exceeding five years. Short-term construction loans are made with variable interest rates. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, the subsidiary bank making the loan may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, the subsidiary bank may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event a default on a construction loan occurs and foreclosure follows, the subsidiary bank must take control of the project and attempt either to arrange for completion of construction or to dispose of the unfinished project. Additional risk exists with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. Park’s subsidiary banks attempt to reduce such risks on loans to developers by requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer.

Residential real estate: The Company defines residential real estate loans as first mortgages on individuals’ primary residence or second mortgages of individuals’ primary residence in the form of home equity lines of credit or installment loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and an appropriately appraised value of the real estate securing the loan. Each subsidiary bank generally requires that the residential real estate loan amount be no more than 80% of the purchase price or the appraised value of the real estate securing the loan, whichever is less, unless private mortgage insurance is obtained by the borrower. Loans made for each subsidiary bank’s portfolio in this lending category are generally adjustable rate, fully amortized mortgages. The rates used are generally fully-indexed rates. Park generally does not price residential loans using low introductory “teaser” rates. Home equity lines of credit are generally made as second mortgages by Park’s subsidiary banks. The maximum amount of a home equity line of credit is generally limited to 85% of the appraised value of the property less the balance of the first mortgage.

Consumer: The Company originates direct and indirect consumer loans, primarily automobile loans and home equity based credit cards to customers and prospective customers in its primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances.

Allowance for Loan Losses

The allowance for loan losses is that amount believed adequate to absorb probable incurred credit losses in the loan portfolio based on management’s evaluation of various factors. The determination of the allowance requires significant estimates, including the timing and amounts of expected cash flows on impaired loans, consideration of current economic conditions, and historical loss experience pertaining to pools of homogeneous loans, all of which may be susceptible to change. The allowance is increased through a provision for loan losses that is charged to earnings based on management’s quarterly evaluation of the factors previously mentioned and is reduced by charge-offs, net of recoveries.

3

Notes to Consolidated Financial Statements

The allowance for loan losses includes both (1) an estimate of loss based on historical loss experience within both commercial and consumer loan categories with similar characteristics (“statistical allocation”) and (2) an estimate of loss based on an impairment analysis of each commercial loan that is considered to be impaired (“specific allocation”).

In calculating the allowance for loan losses, management believes it is appropriate to utilize historical loss rates that are comparable to the current period being analyzed. For the historical loss factor at December 31, 2011, the Company utilized an annual loss rate (“historical loss experience”), calculated based on an average of the net charge-offs and the annual change in specific reserves for impaired commercial loans, experienced during 2009, 2010 and 2011 within the individual segments of the commercial and consumer loan categories. Management believes the 36-month historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. The loss factor applied to Park’s consumer portfolio is based on the historical loss experience over the past 36 months, plus an additional judgmental reserve, increasing the total allowance for loan loss coverage in the consumer portfolio to approximately 1.38 years of historical loss. The loss factor applied to Park’s commercial portfolio is based on the historical loss experience over the past 36 months, plus additional reserves for consideration of (1) a loss emergence period factor, (2) a loss migration factor and (3) a judgmental or environmental loss factor. These additional reserves increase the total allowance for loan loss coverage in the commercial portfolio to approximately 2.8 years of historical loss. Park’s commercial loans are individually risk graded. If loan downgrades occur, the probability of default increases, and accordingly management allocates a higher percentage reserve to those accruing commercial loans graded special mention and substandard.

The judgmental increases discussed above incorporates management’s evaluation of the impact of environmental qualitative factors which pose additional risks and assigns a component of the allowance for loan losses in consideration of these factors. Such environmental factors include: national and local economic trends and conditions; experience, ability and depth of lending management and staff; effects of any changes in lending policies and procedures; and levels of, and trends in, consumer bankruptcies, delinquencies, impaired loans and charge-offs and recoveries.

U.S. generally accepted accounting principles (“GAAP”) require a specific allocation to be established as a component of the allowance for loan losses for certain loans when it is probable that all amounts due pursuant to the contractual terms of the loans will not be collected, and the recorded investment in the loans exceeds their measure of impairment. Management considers the following related to commercial loans when determining if a loan should be considered impaired: (1) current debt service coverage levels of the borrowing entity; (2) payment history over the most recent 12-month period; (3) other signs of deterioration in the borrower’s financial situation, such as changes in beacon scores; and (4) consideration of the current collateral supporting the loan.The recorded investment is the carrying balance of the loan, plus the accrued interest receivable, both as of the end of the year. Impairment is measured using either the present value of expected future cash flows based upon the initial effective interest rate on the loan, the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent.

Troubled Debt Restructuring (TDRs)

Management classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral.

Income Recognition

Income earned by the Corporation and its subsidiaries is recognized on the accrual basis of accounting, except for nonaccrual loans as previously discussed, and late charges on loans which are recognized as income when they are collected.

Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the remaining lease period or the estimated useful lives of the improvements. Upon the sale or other disposal of an asset, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are charged to expense as incurred while renewals and improvements that extend the useful life of an asset are capitalized. Premises and equipment is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

The range of depreciable lives over which premises and equipment are being depreciated are:

Buildings	5 to 50 Years
Equipment, furniture and fixtures	3 to 20 Years
Leasehold improvements	1 to 10 Years

4

Notes to Consolidated Financial Statements

Buildings that are currently placed in service are depreciated over 30 years. Equipment, furniture and fixtures that are currently placed in service are depreciated over 3 to 12 years. Leasehold improvements are depreciated over the lives of the related leases which range from 1 to 10 years.

Other Real Estate Owned (OREO)

OREO is recorded at fair value less anticipated selling costs (net realizable value) and consists of property acquired through foreclosure and real estate held for sale. If the net realizable value is below the carrying value of the loan at the date of transfer, the difference is charged to the allowance for loan losses. Subsequent declines in the value of real estate are classified as OREO devaluations, are reported as adjustments to the carrying amount of OREO and are expensed within “other income”. In certain circumstances where management believes the devaluation may not be permanent in nature, Park utilizes a valuation allowance to record OREO devaluations, which is also expensed through “other income”. Costs relating to development and improvement of such properties are capitalized (not in excess of fair value less estimated costs to sell) and costs relating to holding the properties are charged to expense.

Mortgage Loan Servicing Rights

When Park sells mortgage loans with servicing rights retained, servicing rights are recorded at an amount not to exceed fair value with the income statement effect recorded in gains on sale of loans. Capitalized servicing rights are amortized in proportion to and over the period of estimated future servicing income of the underlying loan.

Mortgage servicing rights are assessed for impairment periodically, based on fair value, with any impairment recognized through a valuation allowance. The fair value of mortgage servicing rights is determined by discounting estimated future cash flows from the servicing assets, using market discount rates and expected future prepayment rates. In order to calculate fair value, the sold loan portfolio is stratified into homogeneous pools of like categories. (See Note 20 of these Notes to Consolidated Financial Statements.)

Fees received for servicing mortgage loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in income as loan payments are received. The cost of servicing loans is charged to expense as incurred.

Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over net identifiable tangible and intangible assets acquired in a purchase business combination. Other intangible assets represent purchased assets that have no physical property but represent some future economic benefit to their owner and are capable of being sold or exchanged on their own or in combination with a related asset or liability.

Goodwill and indefinite-lived intangible assets are not amortized to expense, but are subject to impairment tests annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets with definitive useful lives (such as core deposit intangibles) are amortized to expense over their estimated useful lives.

Management considers several factors when performing the annual impairment tests on goodwill. The factors considered include the operating results for the particular Park segment for the past year and the operating results budgeted for the current year (including multi-year projections), the purchase prices being paid for financial institutions in the markets served by the Park segment, the deposit and loan totals of the Park segment and the economic conditions in the markets served by the Park segment.

The following table reflects the activity in goodwill and other intangible assets for the years 2011, 2010 and 2009.

			Core Deposit
(In thousands)	Goodwill		Intangibles			Total
December 31, 2008	$	72,334	$	13,211		$	85,545
Amortization		—		(3,746	)		(3,746	)
December 31, 2009	$	72,334	$	9,465		$	81,799
Amortization		—		(3,422	)		(3,422	)
December 31, 2010	$	72,334	$	6,043		$	78,377
Amortization		—		(3,534	)		(3,534	)
December 31, 2011	$	72,334	$	2,509		$	74,843

5

Notes to Consolidated Financial Statements

GAAP requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired, by comparing the fair value of such goodwill to its recorded or carrying amount. If the carrying amount of the goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess.

Park typically evaluates goodwill for impairment on April 1 of each year, with financial data as of March 31. Based on the analysis performed as of April 1, 2011, the Company determined that goodwill for Park’s Ohio-based bank (The Park National Bank) was not impaired.

Goodwill and other intangible assets (as shown on the Consolidated Balance Sheets) totaled $74.8 million at December 31, 2011, $78.4 million at December 31, 2010 and $81.8 million at December 31, 2009.

The core deposit intangibles are being amortized to expense principally on the straight-line method, over periods ranging from six to ten years. The amortization period for the core deposit intangibles related to Vision Bank was accelerated due to the pending acquisition of Vision Bank branches by Centennial Bank. (See Note3 of these Notes to Consolidated Financial Statements for details on the Vision Bank branch sale.) Core deposit intangible amortization expense was $3.5 million in 2011, $3.4 million in 2010 and $3.7 million in 2009.

The accumulated amortization of core deposit intangibles was $19.6 million as of December 31, 2011 and $16.1 million at December 31, 2010. The expected core deposit intangible amortization expense for each of the next five years is as follows:

(In thousands)
2012	$	2,172
2013		337
2014		-
2015		-
2016		-
Total	$	2,509

Consolidated Statement of Cash Flows

Cash and cash equivalents include cash and cash items, amounts due from banks and money market instruments. Generally, money market instruments are purchased and sold for one-day periods.

Net cash provided by operating activities reflects cash payments as follows:

December 31,
(In thousands)	2011		2010		2009
Interest paid on deposits and other borrowings	$	59,552	$	74,680	$	96,204
Income taxes paid		17,700		24,600		30,660

Non-cash Items

The cash flow statement for the year ended December 31, 2011 was prepared with the assets and liabilities held for sale (refer to Note 3) included within each of their respective categories (loans, fixed assets, other assets, deposits and other liabilities).

Non-cash items included in cash provided by operating activities:

December 31,
(In thousands)	2011			2010		2009
Transfers to OREO		$	36,209	$	35,507	$	35,902

Loss Contingencies and Guarantees

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.

Income Taxes

The Corporation accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. To the extent that Park does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is recorded. All positive and negative evidence is reviewed when determining how much of a valuation allowance is recognized on a quarterly basis. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination being presumed to occur. The benefit recognized for a tax position that meets the “more-likely-than-not” criteria is measured based on the largest benefit that is more than 50 percent likely to be realized, taking into consideration the amounts and probabilities of the outcome upon settlement. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. Park recognizes any interest and penalties related to income tax matters in income tax expense.

6

Notes to Consolidated Financial Statements

Preferred Stock

On December 23, 2008, Park issued $100 million of Senior Preferred Shares to the U.S. Department of Treasury (the “Treasury”) under the Capital Purchase Program (CPP), consisting of 100,000 shares, each with a liquidation preference of $1,000 per share. In addition, on December 23, 2008, Park issued a warrant to the Treasury to purchase 227,376 common shares. These preferred shares and related warrant are considered permanent equity for accounting purposes. GAAP requires management to allocate the proceeds from the issuance of the preferred stock between the preferred stock and related warrant. The terms of the preferred shares require management to pay a cumulative dividend at the rate of 5 percent per annum until February 14, 2014 and 9 percent thereafter. Management determined that the 5 percent dividend rate is below market value; therefore, the fair value of the preferred shares would be less than the $100 million in proceeds. Management determined that a reasonable market discount rate is 12 percent for the fair value of preferred shares. Management used the Black-Scholes model for calculating the fair value of the warrant (and related common shares). The allocation between the preferred shares and warrant at December 23, 2008, the date of issuance, was $95.7 million and $4.3 million, respectively. The discount on the preferred shares of $4.3 million is being accreted through retained earnings over a 60 month period.

Treasury Stock

The purchase of Park’s common stock is recorded at cost. At the date of retirement or subsequent reissuance, the treasury stock account is reduced by the weighted average cost of the common shares retired or reissued.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, changes in the funded status of the Company’s Defined Benefit Pension Plan, and the unrealized net holding gains and losses on the cash flow hedge, which are also recognized as separate components of equity.

Stock Based Compensation

Compensation cost is recognized for stock options and stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of Park’s common stock at the date of grant is used for stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Park did not grant any stock options during 2011, 2010 or 2009. No stock options vested in 2011, 2010 or 2009. Park granted 7,020 shares of common stock to its directors in each of 2011, 2010 and 2009, respectively.

Derivative Instruments

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are: (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”); (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”); or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the Consolidated Balance Sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

7

Notes to Consolidated Financial Statements

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings.

Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 21 of these Notes to Consolidated Financial Statements. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Retirement Plans

Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service.

Earnings Per Common Share

Basic earnings per common share is net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options, warrants and convertible securities. Earnings and dividends per common share are restated for any stock splits and stock dividends through the date of issuance of the consolidated financial statements.

Adoption of New Accounting Pronouncements:

Improving Disclosures About Fair Value Measurements: In January 2010, the FASB issued an amendment to Fair Value Measurements and Disclosures, Topic 820, Improving Disclosures About Fair Value Measurements. This amendment requires new disclosures regarding significant transfers in and out of Level 1 and 2 fair value measurements and the reasons for the transfers. This amendment also requires that a reporting entity present separately information about purchases, sales, issuances and settlements, on a gross basis rather than a net basis for activity in Level 3 fair value measurements using significant unobservable inputs. This amendment also clarifies existing disclosures on the level of disaggregation, in that the reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities, and that a reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements for Level 2 and 3. The new disclosures and clarifications of existing disclosures for Accounting Standard Codification (ASC) 820 are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures were effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of ASC 820 on January 1, 2011 did not have a material effect on the Company’s consolidated financial statements.

Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses: In July 2010, FASB issued Accounting Standards Update 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses (ASU 2010-20), to address concerns about the sufficiency, transparency, and robustness of credit risk disclosures for finance receivables and the related allowance for credit losses. This ASU requires new and enhanced disclosures at disaggregated levels, specifically defined as “portfolio segments” and “classes”. Among other things, the expanded disclosures include roll-forward schedules of the allowance for credit losses and information regarding the credit quality of receivables as of the end of a reporting period. New and enhanced disclosures were required for interim and annual periods ending after December 15, 2010, although the disclosures of reporting period activity were required for interim and annual periods beginning after December 15, 2010. The adoption of the new guidance on January 1, 2011 impacted interim and annual disclosures included in the Company’s consolidated financial statements.

8

Notes to Consolidated Financial Statements

No. 2011-01 - Receivables (Topic 310) Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010- 20: In January 2011, FASB issued Accounting Standards Update 2011-01, Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20 (ASU 2011-01). ASU 2011-01 was issued as a result of concerns raised from stakeholders that the introduction of new disclosure requirements (paragraphs 310-10-50-31 through 50-34 of the FASB Accounting Standards Codification) about troubled debt restructurings in one reporting period followed by a change in what constitutes a troubled debt restructuring shortly thereafter would be burdensome for preparers and may not provide financial statement users with useful information.

No. 2011-02 – Receivables (Topic 310) A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring: In April 2011, FASB issued Accounting Standards Update 2011-02, A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring (ASU 2011-02). The ASU provides additional guidance to creditors for evaluating whether a modification or restructuring of a receivable is a troubled debt restructuring (“TDR”). The new guidance requires creditors to evaluate modifications and restructurings of receivables using a more principles-based approach, which may result in more modifications and restructurings being considered TDRs. Additionally, creditors will be required to provide additional disclosures about their TDR activities in accordance with the requirements of ASU 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses, which was deferred by ASU 2011-01 Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20 (ASU 2011-01). The new guidance was effective for the first interim or annual period beginning on or after June 15, 2011, with retrospective application required to the beginning of the annual period of adoption. Disclosure requirements were effective for the first interim and annual period beginning on or after June 15, 2011. The adoption of the new guidance effective July 1, 2011 resulted in an increase in the number of modifications and restructuring deemed to be TDRs and impacted interim and annual disclosures included in the Company’s consolidated financial statements.

No. 2011-04 – Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirement in U.S. GAAP and IFRSs: In May 2011, FASB issued Accounting Standards Update 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirement in U.S. GAAP and IFRSs (ASU 2011-04). The new guidance in this ASU results in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs. Certain amendments clarify the FASBs intent about the application of existing fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. These amendments also enhance disclosure requirements surrounding fair value measurement. Most significantly, an entity will be required to disclose additional information regarding Level 3 fair value measurements including quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements. The new guidance is effective for interim and annual periods beginning on or after December 15, 2011. Management is currently working through the guidance to determine the impact, if any, to the consolidated financial statements.

No. 2011-05 – Presentation of Comprehensive Income: In June 2011, FASB issued Accounting Standards Update 2011-05, Presentation of Comprehensive Income (ASU 2011-05). The ASU eliminates the option to report other comprehensive income and its components in the statement of changes in equity. An entity can elect to present the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The ASU does not change the items that must be reported in other comprehensive income, when an item of other comprehensive income must be reclassified to net income, or how earnings per share is calculated or presented. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and must be applied retrospectively. The adoption of the new guidance will impact the presentation of the consolidated financial statements.

No. 2011-08 – Intangibles – Goodwill and Other: In September 2011, FASB issued Accounting Standards Update 2011-08, Intangibles – Goodwill and Other (ASU 2011-08). The ASU allows an entity to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The new guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Management does not expect the adoption of this guidance will have an impact on the consolidated financial statements.

9

Notes to Consolidated Financial Statements

2. Organization

Park National Corporation is a multi-bank holding company headquartered in Newark, Ohio. Through its banking subsidiaries, PNB and VB, Park is engaged in a general commercial banking and trust business, primarily in Ohio, Baldwin County, Alabama and the panhandle of Florida. A wholly-owned subsidiary of Park, Guardian Financial Services Company (GFSC) began operating in May 1999. GFSC is a consumer finance company located in Central Ohio. PNB operates through eleven banking divisions with the Park National Division headquartered in Newark, Ohio, the Fairfield National Division headquartered in Lancaster, Ohio, The Park National Bank of Southwest Ohio & Northern Kentucky Division headquartered in Cincinnati, Ohio, the First-Knox National Division headquartered in Mount Vernon, Ohio, the Farmers and Savings Division headquartered in Loudonville, Ohio, the Security National Division headquartered in Springfield, Ohio, the Unity National Division headquartered in Piqua, Ohio, the Richland Bank Division headquartered in Mansfield, Ohio, the Century National Division headquartered in Zanesville, Ohio, the United Bank Division headquartered in Bucyrus, Ohio and the Second National Division headquartered in Greenville, Ohio. VB, through February 16, 2012, operated through two banking divisions with the Vision Bank Florida Division headquartered in Panama City, Florida and the Vision Bank Alabama Division headquartered in Gulf Shores, Alabama. All of the Ohio-based banking divisions provide the following principal services: the acceptance of deposits for demand, savings and time accounts; commercial, industrial, consumer and real estate lending, including installment loans, credit cards, home equity lines of credit, commercial leasing; trust services; cash management; safe deposit operations; electronic funds transfers and a variety of additional banking-related services. VB, with its two banking divisions, through February 16, 2012, provided the services mentioned above, with the exception of commercial leasing. See Note 23 of these Notes to Consolidated Financial Statements for financial information on the Corporation’s operating segments.

3. Sale of Vision Bank

On November 16, 2011, Park and Vision entered into a Purchase and Assumption Agreement (the “Purchase Agreement”) with Home BancShares, Inc. (“Home”) and its wholly-owned subsidiary Centennial Bank, an Arkansas state-chartered bank (“Centennial”), to sell substantially all of the performing loans, operating assets and liabilities associated with Vision to Centennial for a purchase price of $27.9 million.

Under the terms of the Purchase Agreement, Centennial will purchase the real estate and other assets described in the Purchase Agreement which are used in the banking business conducted by Vision at its eight offices in Baldwin County, Alabama and its nine offices in the Florida panhandle counties of Bay, Gulf, Okaloosa, Santa Rosa and Walton. Centennial will assume Vision’s obligations relating to all of Vision’s deposit accounts and will purchase substantially all of Vision’s performing loans. The assets purchased and liabilities assumed by Centennial, classified on Park’s consolidated balance sheet as held for sale at December 31, 2011, include the following:

Assets and Liabilities Held for Sale December 31, 2011 (in thousands)
Assets held for sale	2011
Cash and due from banks	$	6,766
Loans		369,044
Allowance for loan losses		(13,100	)
Net loans		355,944
Fixed assets		14,861
Other assets		4,891
Total assets held for sale	$	382,462

Liabilities held for sale	2011
Deposits	$	532,598
Other liabilities		3,588
Total liabilities held for sale	$	536,186

The assets and liabilities held for sale were evaluated for impairment as of December 31, 2011 and continue to be carried at their historical cost, net of any previously established valuation allowance.

Vision will retain all of the non-performing loans and certain performing loans under the terms of the Purchase Agreement. As of December 31, 2011, the carrying balance of nonperforming loans totaled approximately $101 million and the carrying balance of performing loans totaled approximately $23 million. Prior to the transfer to assets held for sale, Vision Bank’s allowance for loan losses totaled $23.8 million at December 31, 2011. Upon the transfer, $13.1 million was transferred out of the allowance for loan losses with the related loans that moved to assets held for sale. Management expects that the remaining loans at Vision Bank will be charged down by the remaining balance of the allowance for loan losses of $10.7 million prior to transfer to SE Property Holdings, LLC (“SE, LLC”). Vision Bank will be merged with and into SE, LLC, the non-banking subsidiary of Park’s Parent Company, promptly following the closing of the transaction with Centennial.

10

Notes to Consolidated Financial Statements

4. Investment Securities

The amortized cost and fair value of investment securities are shown in the following table. Management performs a quarterly evaluation of investment securities for any other-than-temporary impairment.

During 2011, there were no investment securities deemed to be other-than-temporarily impaired. During 2010, Park recognized an other-than-temporary impairment charge of $23,000, related to an equity investment in a financial institution, which is recorded in “other expenses” within the Consolidated Statements of Income. Since this was an equity security, no amounts were recognized in other comprehensive income at the time of the impairment recognition.

Investment securities at December 31, 2011 were as follows:

	Amortized		Gross Unrealized		Gross Unrealized		Estimated
(In thousands)	Cost		Holding Gains		Holding Losses		Fair Value
2011:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	370,043	$	1,614	$	-	$	371,657
Obligations of states and political subdivisions		2,616		44		-		2,660
U.S. Government sponsored entities’ asset-backed securities		427,300		16,995		-		444,295
Other equity securities		1,188		877		32		2,033
Total	$	801,147	$	19,530	$	32	$	820,645
2011:
Securities Held-to-Maturity
Obligations of states and political subdivisions	$	1,992	$	5	$	-	$	1,997
U.S. Government sponsored entities’ asset-backed securities		818,232		14,377		32		832,577
Total	$	820,224	$	14,382	$	32	$	834,574

Park’s U.S. Government sponsored entity asset-backed securities consisted of 15-year mortgage-backed securities and collateralized mortgage obligations (CMOs). At December 31, 2011, the amortized cost of Park’s available-for-sale (AFS) and held-to-maturity mortgage-backed securities was $427.3 million and $0.1 million, respectively. At December 31, 2011, the amortized cost of Park’s held-to-maturity CMOs was $818.2 million. There were no AFS CMOs at December 31, 2011.

Other investment securities (as shown on the Consolidated Balance Sheets) consist of stock investments in the Federal Home Loan Bank and the Federal Reserve Bank. These restricted stock investments are carried at their redemption value. Park owned $60.7 million of Federal Home Loan Bank stock and $6.9 million of Federal Reserve Bank stock at December 31, 2011. Park owned $61.8 million of Federal Home Loan Bank stock and $6.9 million of Federal Reserve Bank stock at December 31, 2010.

Management does not believe any individual unrealized loss as of December 31, 2011 or December 31, 2010, represents other-than-temporary impairment. The unrealized losses on debt securities are primarily the result of interest rate changes. These conditions will not prohibit Park from receiving its contractual principal and interest payments on these debt securities. The fair value of these debt securities is expected to recover as payments are received on these securities and they approach maturity. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

11

Notes to Consolidated Financial Statements

The following table provides detail on investment securities with unrealized losses aggregated by investment category and length of time the individual securities had been in a continuous loss position at December 31, 2011:

	Less than				12 Months
	12 Months				or Longer				Total
			Unrealized				Unrealized				Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
2011:
Securities Available-for-Sale
Other equity securities	$	-	$	-	$	80	$	32	$	80	$	32
2011:
Securities Held-to-Maturity
U.S. Government sponsored entities’ asset-backed securities	$	-	$	-	$	38,775	$	32	$	38,775	$	32

Investment securities at December 31, 2010 were as follows:

	Amortized		Gross Unrealized		Gross Unrealized		Estimated
(In thousands)	Cost		Holding Gains		Holding Losses		Fair Value
2010:
Securities Available-for-Sale
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
2010:
Securities Held-to-Maturity
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

12

Notes to Consolidated Financial Statements

The following table provides detail on investment securities with unrealized losses aggregated by investment category and length of time the individual securities had been in a continuous loss position at December 31, 2010:

	Less than				12 Months
	12 Months				or Longer				Total
			Unrealized				Unrealized				Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
2010:
Securities Available-for-Sale
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
2010:
Securities Held-to-Maturity
U.S. Government sponsored entities’ asset-backed securities	$	297,584	$	4,620	$	—	$	—	$	297,584	$	4,620

The amortized cost and estimated fair value of investments in debt securities at December 31, 2011, are shown in the following table by contractual maturity or the expected call date, except for asset-backed securities, which are shown as a single total, due to the unpredictability of the timing in principal repayments.

	Amortized		Estimated
(In thousands)	Cost		Fair Value
Securities Available-for-Sale
U.S. Treasury and sponsored entities’ notes:
Due within one year	$	370,043	$	371,657
Total	$	370,043	$	371,657
Obligations of states and political subdivisions:
Due within one year	$	2,121	$	2,133
Due one through five years		495		527
Total	$	2,616	$	2,660
U.S. Government sponsored entities’ asset-backed securities:
Total	$	427,300	$	444,295
Securities Held-to-Maturity
Obligations of states and political subdivisions:
Due within one year	$	1,992	$	1,997
Total	$	1,992	$	1,997
U.S. Government sponsored entities’ asset-backed securities:
Total	$	818,232	$	832,577

Approximately $269.1 million of Park’s securities shown in the above table as U.S. Treasury and sponsored entities notes are callable notes. These callable securities have a final maturity of 9 to 10 years, but are shown in the table at their expected call date. The remaining $100.9 million of securities in this category are U.S. Government sponsored entities discount notes that mature within 60 days.

Investment securities having a book value of $1,548 million and $1,481 million at December 31, 2011 and 2010, respectively, were pledged to collateralize government and trust department deposits in accordance with federal and state requirements, to secure repurchase agreements sold and as collateral for Federal Home Loan Bank (FHLB) advance borrowings.

13

Notes to Consolidated Financial Statements

At December 31, 2011, $813 million was pledged for government and trust department deposits, $669 million was pledged to secure repurchase agreements and $66 million was pledged as collateral for FHLB advance borrowings. At December 31, 2010, $736 million was pledged for government and trust department deposits, $668 million was pledged to secure repurchase agreements and $77 million was pledged as collateral for FHLB advance borrowings.

At December 31, 2011, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

During 2011, Park’s management sold investment securities during the first, second, third and fourth quarters. In total, these sales resulted in proceeds of $610.0 million, resulting in a pre-tax gain of $28.8 million.

During the first quarter of 2011, Park sold $105.4 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $6.6 million. Park also sold $1.0 million of municipal securities for no gain or loss. During the second quarter of 2011, Park sold $191.0 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $15.4 million. During the third quarter of 2011, Park sold $212.8 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $3.5 million.

Late in the fourth quarter of 2011, in preparation for the sale of Vision, Park sold $45.7 million of U.S. Government sponsored entity mortgage-backed securities (available-for-sale securities) and $24.3 million of U.S. Government sponsored entity CMOs (held-to-maturity securities) held by Vision for a pre-tax gain of $3.4 million. Park also sold $0.9 million of municipal securities held by Vision for a pre-tax gain of $15,000. The proceeds from the sale of the Vision securities were used to purchase U.S. Agency discount notes that mature during the first quarter of 2012.

During 2010, Park received proceeds from the sale of investment securities of $460.2 million, realizing a pre-tax gain of $11.9 million. During 2009, Park sold $204.3 million of U.S. Government sponsored entity mortgage-backed securities, realizing a pre-tax gain of $7.3 million. No gross losses were realized in 2011, 2010 or 2009.

14

Notes to Consolidated Financial Statements

5. Loans

The composition of the loan portfolio, by class of loan, as of December 31, 2011 and December 31, 2010 was as follows:

	December 31, 2011						December 31, 2010
			Accrued						Accrued
	Loan		interest		Recorded		Loan		interest		Recorded
(In thousands)	balance		receivable		investment		balance		receivable		investment
Commercial, financial and agricultural *	$	743,797	$	3,121	$	746,918	$	737,902	$	2,886	$	740,788
Commercial real estate *		1,108,574		4,235		1,112,809		1,226,616		4,804		1,231,420
Construction real estate:
Vision commercial land and development *		31,603		31		31,634		171,334		282		171,616
Remaining commercial		156,053		394		156,447		195,693		622		196,315
Mortgage		20,039		64		20,103		26,326		95		26,421
Installment		9,851		61		9,912		13,127		54		13,181
Residential real estate
Commercial		395,824		1,105		396,929		464,903		1,403		466,306
Mortgage		953,758		1,522		955,280		906,648		2,789		909,437
HELOC		227,682		942		228,624		260,463		1,014		261,477
Installment		51,354		236		51,590		60,195		255		60,450
Consumer		616,505		2,930		619,435		666,871		3,245		670,116
Leases		2,059		43		2,102		2,607		56		2,663
Total loans	$	4,317,099	$	14,684	$	4,331,783	$	4,732,685	$	17,505	$	4,750,190

* Included within commercial, financial and agricultural loans, commercial real estate loans, and Vision commercial land and development loans are an immaterial amount of consumer loans that are not broken out by class.

Loans are shown net of deferred origination fees, costs and unearned income of $6.8 million at December 31, 2011 and $6.7 million at December 31, 2010, which is a net deferred income position in both years.

Overdrawn deposit accounts of $3.6 million and $2.6 million have been reclassified to loans at December 31, 2011 and 2010, respectively.

15

Notes to Consolidated Financial Statements

Credit Quality

The following table presents the recorded investment in nonaccrual, accruing restructured, and loans past due 90 days or more and still accruing by class of loans as of December 31, 2011 and December 31, 2010:

	December 31, 2011
(In thousands)	Nonaccrual loans		Accruing restructured loans		Loans past due 90 days or more and accruing		Total nonperforming loans
Commercial, financial and agricultural	$	37,797	$	2,848	$	-	$	40,645
Commercial real estate		43,704		8,274		-		51,978
Construction real estate:
Vision commercial land and development		25,761		-		-		25,761
Remaining commercial		14,021		11,891		-		25,912
Mortgage		66		-		-		66
Installment		30		-		-		30
Residential real estate
Commercial		43,461		815		-		44,276
Mortgage		25,201		4,757		2,610		32,568
HELOC		1,412		-		-		1,412
Installment		1,777		98		58		1,933
Consumer		1,876		-		893		2,769
Leases		-		-		-		-
Total loans	$	195,106	$	28,683	$	3,561	$	227,350

	December 31, 2010
			Accruing		Loans past due 90		Total
			restructured		days or more and		nonperforming
(In thousands)	Nonaccrual loans		loans		accruing		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

16

Notes to Consolidated Financial Statements

The following table provides additional information regarding those nonaccrual and accruing restructured loans that are individually evaluated for impairment and those collectively evaluated for impairment as of December 31, 2011 and December 31, 2010.

	December 31, 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	$	40,645	$	40,621	$	24	$	19,276	$	19,205	$	71
Commercial real estate		51,978		51,978		-		57,941		57,930		11
Construction real estate:
Vision commercial land and development		25,761		24,328		1,433		87,424		86,491		933
Remaining commercial		25,912		25,912		-		27,080		27,080		-
Mortgage		66		-		66		354		-		354
Installment		30		-		30		417		-		417
Residential real estate:
Commercial		44,276		44,276		-		60,227		60,227		-
Mortgage		29,958		-		29,958		32,479		-		32,479
HELOC		1,412		-		1,412		964		-		964
Installment		1,875		-		1,875		1,195		-		1,195
Consumer		1,876		20		1,856		1,911		-		1,911
Leases		-		-		-		-		-		-
Total loans	$	223,789	$	187,135	$	36,654	$	289,268	$	250,933	$	38,335

All of the loans individually evaluated for impairment were evaluated using the fair value of the collateral or present value of expected future cash flows as the measurement method.

17

Notes to Consolidated Financial Statements

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2011 and December 31, 2010.

	December 31, 2011						December 31, 2010
(In thousands)	Unpaid principal balance		Recorded investment		Allowance for loan losses allocated		Unpaid principal balance		Recorded investment		Allowance for loan losses allocated
With no related allowance recorded
Commercial, financial and agricultural	$	23,164	$	18,098	$	-	$	9,347	$	8,891	$	-
Commercial real estate		58,242		41,506		-		21,526		17,170		-
Construction real estate:
Vision commercial land and development		54,032		17,786		-		11,206		7,847		-
Remaining commercial		33,319		18,372		-		12,305		11,743		-
Residential real estate:
Commercial		49,341		38,686		-		46,344		43,031		-
Consumer		-		-		-		-		-		-
With an allowance recorded
Commercial, financial and agricultural		23,719		22,523		5,819		11,801		10,314		3,028
Commercial real estate		12,183		10,472		4,431		44,789		40,760		12,652
Construction real estate:
Vision commercial land and development		20,775		6,542		1,540		103,937		78,644		39,887
Remaining commercial		9,711		7,540		1,874		23,563		15,337		5,425
Residential real estate:
Commercial		6,402		5,590		2,271		19,716		17,196		5,912
Consumer		20		20		-		-		-		-
Total	$	290,908	$	187,135	$	15,935	$	304,534	$	250,933	$	66,904

Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. At December 31, 2011 and December 31, 2010, there were $83.7 million and $12.0 million, respectively, in partial charge-offs on loans individually evaluated for impairment with no related allowance recorded and $20.1 million and $41.6 million, respectively, of partial charge-offs on loans individually evaluated for impairment that also had a specific reserve allocated.

The allowance for loan losses included specific reserves related to loans individually evaluated for impairment at December 31, 2011 and 2010, of $15.9 million and $66.9 million, respectively, related to loans with a recorded investment of $52.7 million and $162.3 million.

The average balance of loans individually evaluated for impairment was $214.0 million, $210.4 million, and $184.7 million for 2011, 2010, and 2009, respectively.

Interest income on loans individually evaluated for impairment is recognized on a cash basis after all past due and current principal payments have been made.

18

Notes to Consolidated Financial Statements

The following table presents the average recorded investment and interest income recognized on loans individually evaluated for impairment for the year ended December 31, 2011.

			Year ended December 31, 2011
(In thousands)	Recorded investment as of December 31, 2011		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	40,621	$	23,518	$	209
Commercial real estate		51,978		49,927		829
Construction real estate:
Vision commercial land and development		24,328		58,792		-
Remaining commercial		25,912		29,152		339
Residential real estate:
Commercial		44,276		52,640		214
Consumer		20		16		1
Total	$	187,135	$	214,045	$	1,592

For the year ended December 31, 2010, the Corporation recognized a net reversal to interest income for $1.3 million, consisting of $948,000 in interest recognized at PNB and $2.2 million in interest reversed at Vision, on loans that were individually evaluated for impairment as of the end of the year. For the year ended December 31, 2009, the Corporation recognized a net reversal to interest income of $1.3 million, consisting of $1.8 million in interest recognized at PNB and $3.1 million in interest reversed at Vision.

The following table presents the aging of the recorded investment in past due loans as of December 31, 2011 and December 31, 2010 by class of loans.

	December 31, 2011
			Past due
			nonaccrual
			loans and loans
	Accruing loans		past due 90						Total
	past due 30-89		days or more						recorded
(In thousands)	days		and accruing		Total past due		Total current		investment
Commercial, financial and agricultural	$	3,106	$	11,308	$	14,414	$	732,504	$	746,918
Commercial real estate		2,632		21,798		24,430		1,088,379		1,112,809
Construction real estate:
Vision commercial land and development		-		19,235		19,235		12,399		31,634
Remaining commercial		99		7,839		7,938		148,509		156,447
Mortgage		76		-		76		20,027		20,103
Installment		421		8		429		9,483		9,912
Residential real estate
Commercial		1,545		10,097		11,642		385,287		396,929
Mortgage		15,879		20,614		36,493		918,787		955,280
HELOC		1,015		436		1,451		227,173		228,624
Installment		1,549		1,136		2,685		48,905		51,590
Consumer		11,195		2,192		13,387		606,048		619,435
Leases		-		-		-		2,102		2,102
Total loans	$	37,517	$	94,663	$	132,180	$	4,199,603	$	4,331,783

19

Notes to Consolidated Financial Statements

	December 31, 2010
			Past due
			nonaccrual
			loans and loans
	Accruing loans		past due 90						Total
	past due 30-89		days or more						recorded
(In thousands)	days		and accruing		Total past due		Total current		investment
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

Credit Quality Indicators

Management utilizes past due information as a credit quality indicator across the loan portfolio. The past due information is the primary credit quality indicator within the following classes of loans: (1) mortgage loans and installment loans in the construction real estate segment; (2) mortgage loans, HELOC and installment loans in the residential real estate segment; and (3) consumer loans. The primary credit indicator for commercial loans is based on an internal grading system that grades all commercial loans from 1 to 8. Credit grades are continuously monitored by the respective loan officer and adjustments are made when appropriate. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans with grades of 1 to 4 (pass-rated) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans. Loans classified as special mention have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Commercial loans graded 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans. Loans classified as substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Commercial loans that are graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Any commercial loan graded an 8 (loss) is completely charged-off.

20

Notes to Consolidated Financial Statements

The tables below present the recorded investment by loan grade at December 31, 2011 and December 31, 2010 for all commercial loans:

	December 31, 2011
(In thousands)	5 Rated		6 Rated		Nonaccrual		Pass Rated		Recorded Investment
Commercial , financial and agricultural:	$	11,785	$	7,628	$	40,645	$	686,860	$	746,918
Commercial real estate:		37,445		10,460		51,978		1,012,926		1,112,809
Construction real estate:
Vision commercial land and development		3,102		-		25,761		2,771		31,634
Remaining commercial		6,982		8,311		25,912		115,242		156,447
Residential real estate:
Commercial		17,120		3,785		44,276		331,748		396,929
Leases		-		-		-		2,102		2,102
Total Commercial Loans	$	76,434	$	30,184	$	188,572	$	2,151,649	$	2,446,839

	December 31, 2010
(In thousands)	5 Rated		6 Rated		Nonaccrual		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

Troubled Debt Restructuring (TDRs)

Management classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. Certain loans which were modified during the period ending December 31, 2011 did not meet the definition of a TDR as the modification was a delay in a payment that was considered to be insignificant. Management considers a forbearance period of up to three months or a delay in payment of up to 30 days to be insignificant. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. Management reviews all accruing TDRs quarterly to ensure payments continue to be made in accordance with the modified terms.

21

Notes to Consolidated Financial Statements

At December 31, 2011 and December 31, 2010, there were $100.4 million and $80.7 million, respectively, of TDRs included in nonaccrual loan totals. As of December 31, 2011, there were $28.7 million of TDRs included in accruing loan totals. None of the TDRs as of December 31, 2010 were accruing. Prior to management’s adoption of ASU 2011-02, Park classified all TDRs as nonaccrual loans. With the adoption of ASU 2011-02, management determined it was appropriate to return certain TDRs to accrual status. Specifically, if the restructured note has been current for a period of at least six months and management expects the borrower will remain current throughout the renegotiated contract, the loan may be returned to accrual status. At December 31, 2011 and December 31, 2010, $79.9 million and $50.3 million of the nonaccrual TDRs were current. Management will continue to review the renegotiated loans and may determine it appropriate to move certain of the loans back to accrual status in the future. At December 31, 2011 and December 31, 2010, Park had commitments to lend $4.0 million and $434,000, respectively, of additional funds to borrowers whose terms had been modified in a TDR.

The specific reserve related to TDRs at December 31, 2011 and December 31, 2010 was $9.1 million and $9.4 million, respectively. Modifications made in 2011 were largely the result of renewals, extending the maturity date of the loan, at terms consistent with the original note. These modifications were deemed to be TDRs primarily due to Park’s conclusion that the borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as impaired loans, and thus were evaluated for impairment under ASC 310.  An immaterial amount of additional specific reserves were recorded during the period ending December 31, 2011 as a result of TDRs identified in the 2011 year.

The terms of certain other loans were modified during the period ended December 31, 2011 that did not meet the definition of a troubled debt restructuring. Modified substandard commercial loans which did not meet the definition of a TDR have a total recorded investment as of December 31, 2011 of $13.6 million. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or resulted in a delay in a payment that was considered to be insignificant.  Modified consumer loans which did not meet the definition of a TDR have a total recorded investment as of December 31, 2011 of $19.6 million. Many of these loans were modified as a lower cost option than a full refinancing to borrowers who were not experiencing financial difficulties.

The following table details the number of contracts modified as TDRs during the 12 months ended December 31, 2011 as well as the period end recorded investment of these contracts. The recorded investment pre- and post-modification is generally the same, as historically Park has not forgiven debt.

	12 months ended December 31, 2011
(In thousands)	Number of Contracts		Recorded Investment
Commercial, financial and agricultural		56	$	24,100
Commercial real estate		23		7,163
Construction real estate:
Vision commercial land and development		12		4,268
Remaining commercial		24		18,602
Mortgage		1		66
Installment		-		-
Residential real estate:
Commercial		30		29,595
Mortgage		37		5,925
HELOC		2		56
Installment		7		221
Consumer		1		18
Leases		-		-
Total loans		193	$	90,014

22

Notes to Consolidated Financial Statements

The following table presents the recorded investment in financing receivables which were modified as troubled debt restructurings within the previous 12 months and for which there was a payment default during the 12 month period ended December 31, 2011. For this table, a loan is considered to be in default when it becomes 30 days contractually past due under modified terms. The additional allowance for loan loss resulting from the defaults on TDR loans was immaterial.

	12 months ended December 31, 2011
(In thousands)	Number of Contracts		Recorded Investment
Commercial, financial and agricultural		19	$	3,878
Commercial real estate		5		2,353
Construction real estate:
Vision commercial land and development		5		3,406
Remaining commercial		4		1,277
Mortgage		1		66
Installment		----		---
Residential real estate:
Commercial		10		20,195
Mortgage		7		1,193
HELOC		1		50
Installment		2		44
Consumer		----		---
Leases		----		---
Total loans		54	$	32,462

Management transfers a loan to other real estate owned at the time that Park takes title of the asset. At December 31, 2011 and 2010, Park had $42.3 million and $41.7 million, respectively, of other real estate owned.

Certain of the Corporation’s executive officers, directors and related entities of directors are loan customers of the Corporation’s two banking subsidiaries. As of December 31, 2011 and 2010, loans and lines of credit aggregating approximately $53.0 million and $53.6 million, respectively, were outstanding to such parties. During 2011, $4.9 million of new loans were made to these executive officers and directors and repayments totaled $5.5 million. New loans and repayments for 2010 were $2.1 million and $5.3 million, respectively.

6. 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 these Notes to Consolidated Financial Statements .

23

Notes to Consolidated Financial Statements

The activity in the allowance for loan losses for the 12 months ended December 31, 2011, December 31, 2010,. And December 31, 2009 is summarized in the following tables.

	Year ended December 31, 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	$	11,555	$	24,369	$	70,462	$	30,259	$	6,925	$	5		$	143,575
Transfer of loans at fair value		2		150		63		4		-		-			219
Transfer of allowance to held for sale (1)		1,184		4,327		1,998		5,450		141		-			13,100
Charge-offs		18,350		23,063		64,166		20,691		7,612		-			133,882
Recoveries		1,402		1,825		1,463		1,719		2,385		4			8,798
Net Charge-offs		16,948		21,238		62,703		18,972		5,227		(4	)		125,084
Provision		23,529		16,885		8,735		9,859		4,273		(9	)		63,272
Ending balance	$	16,950	$	15,539	$	14,433	$	15,692	$	5,830	$	-		$	68,444

(1) Transfer of allowance to held for sale was allocated on a pro-rata basis based on the outstanding balance of the loans held for sale.

(In thousands)	2010			2009
Average loans	$	4,642,478		$	4,594,436
Allowance for loan losses:
Beginning balance	$	116,717		$	100,088
Charge-offs:
Commercial, financial and agricultural		8,484			10,047
Commercial real estate		7,748			5,662
Construction real estate		23,308			21,956
Residential real estate		18,401			11,765
Consumer		8,373			9,583
Lease financing		-			9
Total charge-offs		66,314			59,022
Recoveries:
Commercial, financial and agricultural		1,237			1,010
Commercial real estate		850			771
Construction real estate		813			1,322
Residential real estate		1,429			1,723
Consumer		1,763			2,001
Lease financing		-			3
Total recoveries		6,092			6,830
Net charge-offs		60,222			52,192
Provision for loan losses		87,080			68,821
Ending balance	$	143,575		$	116,717
Ratio of net charge-offs to average loans		1.30	%		1.14	%
Ratio of allowance for loan losses to end of period loans		3.03	%		2.52	%

24

Notes to Consolidated Financial Statements

The composition of the allowance for loan losses at December 31, 2011 and December 31, 2010 was as follows:

	December 31, 2011
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	5,819		$	4,431		$	3,414		$	2,271		$	-		$	-		$	15,935
Collectively evaluated for impairment		11,131			11,108			11,019			13,421			5,830			-			52,509
Total ending allowance balance	$	16,950		$	15,539		$	14,433		$	15,692		$	5,830		$	-		$	68,444
Loan Balance:
Loans individually evaluated for impairment	$	40,621		$	51,978		$	50,240		$	44,276		$	20		$	-		$	187,135
Loans collectively evaluated for impairment		703,176			1,056,596			167,306			1,584,342			616,485			2,059			4,129,964
Total ending loan balance	$	743,797		$	1,108,574		$	217,546		$	1,628,618		$	616,505		$	2,059		$	4,317,099
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		14.33	%		8.52	%		6.80	%		5.13	%		-	%		-	%		8.52	%
Loans collectively evaluated for impairment		1.58	%		1.05	%		6.59	%		0.85	%		0.95	%		-	%		1.27	%
Total ending loan balance		2.28	%		1.40	%		6.63	%		0.96	%		0.95	%		-	%		1.59	%
Recorded Investment:
Loans individually evaluated for impairment	$	40,621		$	51,978		$	50,240		$	44,276		$	20		$	-		$	187,135
Loans collectively evaluated for impairment		706,297			1,060,831			167,856			1,588,147			619,415			2,102			4,144,648
Total ending loan balance	$	746,918		$	1,112,809		$	218,096		$	1,632,423		$	619,435		$	2,102		$	4,331,783

25

Notes to Consolidated Financial Statements

	December 31, 2010
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	3,028		$	12,652		$	45,312		$	5,912		$	-		$	-		$	66,904
Collectively evaluated for impairment		8,527			11,717			25,150			24,347			6,925			5			76,671
Total ending allowance balance	$	11,555		$	24,369		$	70,462		$	30,259		$	6,925		$	5		$	143,575
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
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		15.77	%		21.84	%		39.90	%		9.82	%		-			-			26.66	%
Loans collectively evaluated for impairment		1.19	%		1.00	%		8.59	%		1.49	%		1.04	%		0.19	%		1.71	%
Total ending loan balance		1.57	%		1.99	%		17.33	%		1.79	%		1.04	%		0.19	%		3.03	%
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

Loans collectively evaluated for impairment above include all performing loans at December 31, 2011 and 2010, as well as nonperforming loans internally classified as consumer loans. Nonperforming consumer loans are not typically evaluated for impairment, but receive a portion of the statistical allocation of the allowance for loan losses. Loans individually evaluated for impairment above include all impaired loans internally classified as commercial loans at December 31, 2011 and 2010, which are evaluated for impairment in accordance with GAAP (see Note 1 of these Notes to Consolidated Financial Statements).

26

Notes to Consolidated Financial Statements

7. Premises and Equipment

The major categories of premises and equipment and accumulated depreciation are summarized as follows:

December 31 (In thousands)	2011			2010
Land	$	18,151		$	23,827
Buildings		69,690			78,185
Equipment, furniture and fixtures		59,037			61,086
Leasehold improvements		4,283			6,031
Total	$	151,161		$	169,129
Less accumulated depreciation		(97,420	)		(99,562	)
Premises and Equipment, Net	$	53,741		$	69,567

Depreciation expense amounted to $7.6 million, $7.1 million and $7.5 million for the years ended December 31, 2011, 2010 and 2009, respectively.

The Corporation leases certain premises and equipment accounted for as operating leases. The following is a schedule of the future minimum rental payments required for the next five years under such leases with initial terms in excess of one year: 

(In thousands)
2012	$	1,448
2013		1,104
2014		910
2015		714
2016		457
Thereafter		961
Total	$	5,594

Included in the operating lease schedule above is $101,000 of future rental payments associated with Vision operating leases covering future rental payments through February 29, 2012. Operating lease payments subsequent to February 29, 2012 have not been considered as the branch offices of Vision are to be acquired by Centennial in the first quarter of 2012.

Rent expense for Park was $2.4 million, $2.6 million and $2.8 million, for the years ended December 31, 2011, 2010 and 2009, respectively. Rent expense for Vision Bank was $687,000, $732,000 and $775,000 for the years ended December 31, 2011, 2010 and 2009, respectively.

8. Deposits

At December 31, 2011 and 2010, noninterest bearing and interest bearing deposits were as follows:

December 31 (In thousands)	2011		2010
Noninterest bearing	$	995,733	$	937,719
Interest bearing		3,469,381		4,157,701
Total	$	4,465,114	$	5,095,420

At December 31, 2011, the maturities of time deposits were as follows: 

(In thousands)
2012	$	1,035,594
2013		236,549
2014		98,045
2015		66,353
2016		61,019
After 5 years		1,545
Total	$	1,499,105

27

Notes to Consolidated Financial Statements

At December 31, 2011, Park had approximately $20.2 million of deposits received from executive officers, directors, and their related interests. Of the $20.2 million at December 31, 2011, Vision had approximately $3.2 million of deposits received from executive officers, directors, and their related interests, which are included within liabilities held for sale.

Maturities of time deposits over $100,000 as of December 31, 2011 were:

December 31 (In thousands)
3 months or less	$	171,090
Over 3 months through 6 months		122,481
Over 6 months through 12 months		186,793
Over 12 months		158,581
Total	$	638,945

9. Short-Term Borrowings

Short-term borrowings were as follows:

December 31 (In thousands)	2011		2010
Securities sold under agreements to repurchase and federal funds purchased	$	240,594	$	279,669
Federal Home Loan Bank advances		23,000		384,000
Total short-term borrowings	$	263,594	$	663,669

The outstanding balances for all short-term borrowings as of December 31, 2011 and 2010 and the weighted-average interest rates as of and paid during each of the years then ended were as follows:

(In thousands)	Repurchase  agreements  and Federal  Funds  Purchased			Federal Home  Loan Bank  Advances			Demand Notes  Due U.S.  Treasury and  Other
2011:
Ending balance	$	240,594		$	23,000		$	—
Highest month-end balance		265,412			232,000			—
Average daily balance		246,145			51,392			—
Weighted-average interest rate:
As of year-end		0.29	%		0.40	%		—
Paid during the year		0.30	%		0.18	%		—
2010:
Ending balance	$	279,669		$	384,000		$	—
Highest month-end balance		295,467			384,000			—
Average daily balance		269,260			31,679			—
Weighted-average interest rate:
As of year-end		0.32	%		0.19	%		—
Paid during the year		0.39	%		0.39	%		—

At December 31, 2011 and 2010, Federal Home Loan Bank (FHLB) advances were collateralized by investment securities owned by the Corporation’s subsidiary banks and by various loans pledged under a blanket agreement by the Corporation’s subsidiary banks.

See Note 4 of these Notes to Consolidated Financial Statements for the amount of investment securities that are pledged. At December 31, 2011 and 2010, $2,231 million and $2,071 million, respectively, of commercial real estate and residential mortgage loans were pledged under a blanket agreement to the FHLB by Park’s subsidiary banks.

28

Notes to Consolidated Financial Statements

Note 4 states that $669 million and $668 million of securities were pledged to secure repurchase agreements as of December 31, 2011 and 2010, respectively. Park’s repurchase agreements in short-term borrowings consist of customer accounts and securities which are pledged on an individual security basis. Park’s repurchase agreements with a third-party financial institution are classified in long-term debt. See Note 10 of these Notes to Consolidated Financial Statements.

10. Long-Term Debt

Long-term debt is listed below:

December 31,	2011					2010
(In thousands)	Outstanding Balance		Average Rate			Outstanding Balance		Average Rate
Total Federal Home Loan Bank advances by year of maturity:
2011	$	-		-		$	16,460		1.99	%
2012		15,500		2.09	%		15,500		2.09	%
2013		75,500		1.11	%		500		4.03	%
2014		75,500		1.61	%		500		4.23	%
2015		51,000		2.00	%		-		-
2016		1,000		2.05	%		-		-
Thereafter		303,314		3.02	%		302,342		3.02	%
Total	$	521,814		2.41	%	$	335,302		2.93	%
Total broker repurchase agreements by year of maturity:
2016	$	75,000		4.05	%	$	75,000		4.05	%
Thereafter		225,000		4.03	%		225,000		4.03	%
Total	$	300,000		4.04	%	$	300,000		4.04	%
Other borrowings by year of maturity:
2011	$	-		-		$	63		7.97	%
2012		69		7.97	%		69		7.97	%
2013		74		7.97	%		74		7.97	%
2014		81		7.97	%		81		7.97	%
2015		87		7.97	%		87		7.97	%
2016		94		7.97	%		94		7.97	%
Thereafter		963		7.97	%		963		7.97	%
Total	$	1,368		7.97	%	$	1,431		7.97	%
Total combined long-term debt by year of maturity:
2011	$	-		-		$	16,523		2.01	%
2012		15,569		2.12	%		15,569		2.12	%
2013		75,574		1.11	%		574		4.54	%
2014		75,581		1.62	%		581		4.75	%
2015		51,087		2.01	%		87		7.97	%
2016		76,094		4.03	%		75,094		4.05	%
Thereafter		529,277		3.46	%		528,305		3.46	%
Total	$	823,182		3.01	%	$	636,733		3.46	%

Other borrowings consist of a capital lease obligation of $1.4 million, pertaining to an arrangement that was part of the acquisition of Vision on March 9, 2007 and its associated minimum lease payments. This capital lease is scheduled to be assumed by Centennial Bank, in connection with their acquisition of Vision’s branches, in the first quarter of 2012.

Park had approximately $529.3 million of long-term debt at December 31, 2011 with a contractual maturity longer than five years. However, approximately $525 million of this debt is callable by the issuer in 2012.

At December 31, 2011 and 2010, Federal Home Loan Bank (FHLB) advances were collateralized by investment securities owned by the Corporation’s subsidiary banks and by various loans pledged under a blanket agreement by the Corporation’s subsidiary banks.

29

Notes to Consolidated Financial Statements

See Note 4 of these Notes to Consolidated Financial Statements for the amount of investment securities that are pledged. See Note 9 of these Notes to Consolidated Financial Statements for the amount of commercial real estate and residential mortgage loans that are pledged to the FHLB.

11. Subordinated Debentures/Notes

As part of the acquisition of Vision on March 9, 2007, Park became the successor to Vision under (i) the Amended and Restated Trust Agreement of Vision Bancshares Trust I (the “Trust”), dated as of December 5, 2005, (ii) the Junior Subordinated Indenture, dated as of December 5, 2005, and (iii) the Guarantee Agreement, also dated as of December 5, 2005.

On December 1, 2005, Vision formed a wholly-owned Delaware statutory business trust, Vision Bancshares Trust I (“Trust I”), which issued $15.0 million of the Trust’s floating rate preferred securities (the “Trust Preferred Securities”) to institutional investors. These Trust Preferred Securities qualify as Tier I capital under Federal Reserve Board guidelines. All of the common securities of Trust I are owned by Park. The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by Trust I to purchase $15.5 million of junior subordinated notes, which carry a floating rate based on a three-month LIBOR plus 148 basis points. The debentures represent the sole asset of Trust I. The Trust Preferred Securities accrue and pay distributions at a floating rate of three-month LIBOR plus 148 basis points per annum. The Trust Preferred Securities are mandatorily redeemable upon maturity of the notes in December 2035, or upon earlier redemption as provided in the notes. Park has the right to redeem the notes purchased by Trust I in whole or in part, on or after December 30, 2010. As specified in the indenture, if the notes are redeemed prior to maturity, the redemption price will be the principal amount, plus any unpaid accrued interest.

In accordance with GAAP, Trust I is not consolidated with Park’s financial statements, but rather the subordinated notes are reflected as a liability.

On December 28, 2007, one of Park’s wholly-owned subsidiary banks, The Park National Bank (“PNB”), entered into a Subordinated Debenture Purchase Agreement with USB Capital Funding Corp. Under the terms of the Purchase Agreement, USB Capital Funding Corp. purchased from PNB a Subordinated Debenture dated December 28, 2007, in the principal amount of $25 million, which matures on December 29, 2017. The Subordinated Debenture is intended to qualify as Tier 2 capital under the applicable regulations of the Office of the Comptroller of the Currency of the United States of America (the “OCC”). The Subordinated Debenture accrues and pays interest at a floating rate of three-month LIBOR plus 200 basis points. The Subordinated Debenture may not be prepaid in any amount prior to December 28, 2012; however, subsequent to that date, PNB may prepay, without penalty, all or a portion of the principal amount outstanding in a minimum amount of $5 million or any larger multiple of $5 million. The three-month LIBOR rate was 0.58% at December 31, 2011. On January 2, 2008, Park entered into an interest rate swap transaction, which was designated as a cash flow hedge against the variability of cash flows related to the Subordinated Debenture of $25 million (see Note 19 of these Notes to Consolidated Financial Statements).

On December 23, 2009, Park entered into a Note Purchase Agreement, dated December 23, 2009, with 38 purchasers (the “Purchasers”). Under the terms of the Note Purchase Agreement, the Purchasers purchased from Park an aggregate principal amount of $35.25 million of 10% Subordinated Notes due December 23, 2019 (the “Notes”). The Notes are intended to qualify as Tier 2 capital under applicable rules and regulations of the Federal Reserve Board. The Notes may not be prepaid in any amount prior to December 23, 2014; however, subsequent to that date, Park may prepay, without penalty, all or a portion of the principal amount outstanding. Of the $35.25 million in Notes, $14.05 million were purchased by related parties.

12. Stock Option Plan

The Park National Corporation 2005 Incentive Stock Option Plan (the “2005 Plan”) was adopted by the Board of Directors of Park on January 18, 2005, and was approved by the shareholders at the Annual Meeting of Shareholders on April 18, 2005. Under the 2005 Plan, 1,500,000 common shares are authorized for delivery upon the exercise of incentive stock options. All of the common shares delivered upon the exercise of incentive stock options granted under the 2005 Plan are to be treasury shares. At December 31, 2011, 1,425,980 common shares were available for future grants under the 2005 Plan. Under the terms of the 2005 Plan, incentive stock options may be granted at a price not less than the fair market value at the date of the grant, and for an option term of up to five years. No additional incentive stock options may be granted under the 2005 Plan after January 17, 2015.

30

Notes to Consolidated Financial Statements

The fair value of each incentive stock option granted is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of Park’s common stock. The Corporation uses historical data to estimate option exercise behavior. The expected term of incentive stock options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the incentive stock options is based on the U.S. Treasury yield curve in effect at the time of the grant.

The activity in the 2005 Plan is listed in the following table for 2011:

	Number		Weighted Average Exercise Price  per Share
January 1, 2011		78,075	$	74.96
Granted		—		—
Exercised		—		—
Forfeited/Expired		4,055		74.96
December 31, 2011		74,020	$	74.96
Exercisable at year end				74,020
Weighted-average remaining contractual life				0.94 years
Aggregate intrinsic value			$	0

There were no options granted or exercised in 2011, 2010 or 2009. Additionally, no expense was recognized for 2011, 2010 or 2009.

13. Benefit Plans

The Corporation has a noncontributory Defined Benefit Pension Plan (the “Pension Plan”) covering substantially all of the employees of the Corporation and its subsidiaries. The Pension Plan provides benefits based on an employee’s years of service and compensation.

The Corporation’s funding policy is to contribute annually an amount that can be deducted for federal income tax purposes using a different actuarial cost method and different assumptions from those used for financial reporting purposes. Management contributed $2 million in September 2010, which was deductible on the 2010 tax return and was reflected in deferred tax liabilities at December 31, 2010. In January 2011, management contributed $14 million, of which $12.4 million was deductible on the 2010 tax return and $1.6 million on the 2011 tax return. In January 2012, management contributed $15.9 million, of which $14.3 million was deductible on the 2011 tax return and $1.6 million on the 2012 tax return. The entire $14.3 million deductible on the 2011 tax return is reflected as part of the deferred taxes at December 31, 2011. See Note 14 of these Notes to Consolidated Financial Statements. Park does not expect to make any additional contributions to the Pension Plan in 2012.

31

Notes to Consolidated Financial Statements

Using an accrual measurement date of December 31, 2011 and 2010, plan assets and benefit obligation activity for the Pension Plan are listed below:

(In thousands)	2011			2010
Change in fair value of plan assets
Fair value at beginning of measurement period	$	85,464		$	75,815
Actual return on plan assets		1,813			11,296
Company contributions		14,000			2,000
Benefits paid		(4,696	)		(3,647	)
Fair value at end of measurement period	$	96,581		$	85,464

Change in benefit obligation
Projected benefit obligation at beginning of measurement period	$	74,164		$	60,342
Service cost		4,557			3,671
Interest cost		3,967			3,583
Actuarial loss		3,515			10,215
Benefits paid		(4,696	)		(3,647	)
Projected benefit obligation at the end of measurement period	$	81,507		$	74,164
Funded status at end of year (assets less benefit obligation)	$	15,074		$	11,300

The asset allocation for the Pension Plan as of the measurement date, by asset category, was as follows:

			Percentage of Plan Assets
Asset category	Target Allocation		2011			2010
Equity securities		50% - 100%		80	%		86	%
Fixed income and cash equivalents		remaining balance		20	%		14	%
Total				100	%		100	%

The investment policy, as established by the Retirement Plan Committee, is to invest assets according to the target allocation stated above. Assets will be reallocated periodically based on the investment strategy of the Retirement Plan Committee. The investment policy is reviewed periodically.

The expected long-term rate of return on plan assets was 7.75% in 2011 and 2010. This return was based on the expected return of each of the asset categories, weighted based on the median of the target allocation for each class.

The accumulated benefit obligation for the Pension Plan was $71.4 million and $63.5 million at December 31, 2011 and 2010, respectively.

On November 17, 2009, the Park Pension Plan completed the purchase of 115,800 common shares of Park for $7.0 million or $60.45 per share. At December 31, 2011 and 2010, the fair value of the 115,800 common shares held by the Pension Plan was $7.5 million, or $65.06 per share and $8.4 million, or $72.67 per share, respectively.

The weighted average assumptions used to determine benefit obligations at December 31, 2011 and December 31, 2010 were as follows:

	2011			2010
Discount rate		5.18	%		5.50	%
Rate of compensation increase		3.00	%		3.00	%

32

Notes to Consolidated Financial Statements

The estimated future pension benefit payments reflecting expected future service for the next ten years are shown below in thousands:

2012	$	5,535
2013		4,999
2014		5,543
2015		6,259
2016		6,284
2017-2021		37,823
Total	$	66,443

The following table shows ending balances of accumulated other comprehensive income (loss) at December 31, 2011 and 2010.

(In thousands)	2011			2010
Prior service cost	$	(74	)	$	(93	)
Net actuarial loss		(32,163	)		(24,410	)
Total		(32,237	)		(24,503	)
Deferred taxes		11,283			8,576
Accumulated other comprehensive loss	$	(20,954	)	$	(15,927	)

Using an actuarial measurement date of December 31 for 2011, 2010 and 2009, components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) were as follows:

(In thousands)	2011			2010			2009
Components of net periodic benefit cost and other amounts recognized in other comprehensive income (Loss)
Service cost	$	(4,557	)	$	(3,671	)	$	(3,813	)
Interest cost		(3,967	)		(3,583	)		(3,432	)
Expected return on plan assets		7,543			5,867			4,487
Amortization of prior service cost		(19	)		(22	)		(34	)
Recognized net actuarial loss		(1,411	)		(1,079	)		(2,041	)
Net periodic benefit cost	$	(2,411	)	$	(2,488	)	$	(4,833	)
Change to net actuarial (loss)/gain for the period	$	(9,164	)	$	(4,835	)	$	7,591
Amortization of prior service cost		19			22			34
Amortization of net loss		1,411			1,079			2,041
Total recognized in other comprehensive (loss)/income		(7,734	)		(3,734	)		9,666
Total recognized in net benefit cost and other comprehensive (loss)/income	$	(10,145	)	$	(6,222	)	$	4,833

The estimated prior service costs for the Pension Plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $20,000. The estimated net actuarial (loss) expected to be recognized in the next fiscal year is $(2.0) million.

The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2011 and 2010 are listed below:

	2011			2010
Discount Rate		5.50	%		6.00	%
Rate of compensation increase		3.00	%		3.00	%
Expected long-term return on plan assets		7.75	%		7.75	%

Management believes the 7.75% expected long-term rate of return is an appropriate assumption given historical performance of the S&P 500 Index, which management believes is a good indicator of future performance of Pension Plan assets.

33

Notes to Consolidated Financial Statements

The Pension Plan maintains cash in a Park National Bank savings account. The Pension Plan cash balance was $2.1 million at December 31, 2011.

GAAP defines fair value as the price that would be received by Park for an asset or paid by Park to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date, using the most advantageous market for the asset or liability. The fair values of equity securities, consisting of mutual fund investments and common stock held by the Pension Plan and the fixed income and cash equivalents, are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs). The market value of Pension Plan assets at December 31, 2011 was $96.6 million. At December 31, 2011, $83.2 million of equity investments in the Pension Plan were categorized as Level 1 inputs; $13.4 million of plan investments in corporate and U.S. Government sponsored entity bonds were categorized as Level 2 inputs, as fair value is based on quoted market prices of comparable instruments; and no investments were categorized as Level 3 inputs. The market value of Pension Plan assets was $85.5 million at December 31, 2010. At December 31, 2010, $73.5 million of investments in the Pension Plan were categorized as Level 1 inputs; $12.0 million were categorized as Level 2; and no investments were categorized as Level 3.

The Corporation has a voluntary salary deferral plan covering substantially all of the employees of the Corporation and its subsidiaries. Eligible employees may contribute a portion of their compensation subject to a maximum statutory limitation. The Corporation provides a matching contribution established annually by the Corporation. Contribution expense for the Corporation was $1.1 million, $1.0 million, and $1.5 million for 2011, 2010 and 2009, respectively.

The Corporation has a Supplemental Executive Retirement Plan (SERP) covering certain key officers of the Corporation and its subsidiaries with defined pension benefits in excess of limits imposed by federal tax law. At December 31, 2011 and 2010, the accrued benefit cost for the SERP totaled $7.2 million. The expense for the Corporation was $0.6 million for 2011 and $0.5 million for both 2010 and 2009.

14. Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax assets and liabilities are as follows:

December 31 (In thousands)	2011		2010
Deferred tax assets:
Allowance for loan losses	$	23,956	$	52,418
Accumulated other comprehensive loss – Interest rate swap		296		572
Accumulated other comprehensive loss – pension plan		11,283		8,576
Intangible assets		1,523		2,156
Deferred compensation		3,733		4,123
OREO devaluations		6,364		7,171
State net operating loss carryforwards		-		2,812
Other		5,220		4,988
Loans held for sale fair value adjustment		4,585		-
Tax credit carryforwards		1,269		-
Valuation allowance		-		(1,491	)
Total deferred tax assets	$	58,229	$	81,325
Deferred tax liabilities:
Accumulated other comprehensive income – Unrealized gains on securities	$	6,824	$	8,142
Deferred investment income		10,199		10,199
Pension plan		21,567		16,835
Mortgage servicing rights		3,255		3,671
Purchase accounting adjustments		943		2,150
Other		2,006		2,176
Total deferred tax liabilities	$	44,794	$	43,173
Net deferred tax assets	$	13,435	$	38,152

34

Notes to Consolidated Financial Statements

Park performs an analysis to determine if a valuation allowance against deferred tax assets is required in accordance with GAAP. Vision Bank is subject to state income tax in Alabama and Florida. During 2011, Park recognized $6.10 million in state tax expense which was the charge necessary to write off the previously reported state operating loss carryforward asset and other state deferred tax assets at Vision Bank. Prior to the execution of the Purchase Agreement with Centennial, management of Park believed that a merger of Vision Bank into The Park National Bank (the national bank subsidiary of Park) would enable Park to fully utilize the state net operating loss carryforward asset recorded at Vision Bank. The structure of the transactions contemplated by the Purchase Agreement will not allow either the buyer or the seller to benefit from the previously recorded net operating loss carryforward asset at Vision bank to offset future taxable income; therefore, this asset was written off by Vision Bank at December 31, 2011. In 2010, a state tax benefit of $1.16 million was recorded by Vision Bank, consisting of a gross benefit of $3.45 million and a valuation allowance of $2.29 million. In the schedule of deferred taxes, the valuation allowance is shown net of the federal tax benefit of $803,000.

Management has determined that it is not required to establish a valuation allowance against remaining deferred tax assets in accordance with GAAP since it is more likely than not that the deferred tax assets will be fully utilized in future periods.

The components of the provision for federal and state income taxes are shown below:

December 31, (In thousands)	2011			2010			2009
Currently payable
Federal	$	5,949		$	26,130		$	32,148
State		-			109			(273	)
Deferred
Federal		22,378			(8,333	)		(6,745	)
State		8,382			(3,564	)		(2,187	)
Valuation allowance
Federal		-			-			-
State		(2,294	)		2,294			-
Total	$	34,415		$	16,636		$	22,943

The following is a reconciliation of income tax expense to the amount computed at the statutory rate of 35% for the years ended December 31, 2011, 2010 and 2009.

December 31	2011			2010			2009
Statutory federal corporate tax rate		35.0	%		35.0	%		35.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest		(1.0	)%		(1.7	)%		(1.3	)%
Bank owned life insurance		(1.5	)%		(2.3	)%		(1.8	)%
Tax credits (low income housing)		(5.2	)%		(6.7	)%		(4.8	)%
State income tax expense, net of federal benefit		4.7	%		(3.0	)%		(1.6	)%
Valuation allowance, net of federal benefit		(1.3	)%		2.0	%		-
Other		(1.2	)%		(1.0	)%		(1.9	)%
Effective tax rate		29.5	%		22.3	%		23.6	%

Park and its Ohio-based subsidiaries do not pay state income tax to the state of Ohio, but pay a franchise tax based on their year-end equity. The franchise tax expense is included in the state tax expense and is shown in “state taxes” on Park’s Consolidated Statements of Income. Vision Bank is subject to state income tax, in the states of Alabama and Florida. State income tax expense/(benefit) for Vision Bank is included in “income taxes” on Park’s Consolidated Statements of Income. Vision Bank’s 2011 state income tax expense was $6.10 million.

35

Notes to Consolidated Financial Statements

Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.

(In thousands)	2011			2010			2009
January 1 Balance	$	477		$	595		$	783
Additions based on tax positions related to the current year		70			69			64
Additions for tax positions of prior years		1			7			----
Reductions for tax positions of prior  years		(3	)		(131	)		(189	)
Reductions due to statute of limitations		(60	)		(63	)		(63	)
December 31 Balance	$	485		$	477		$	595

The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in the future periods at December 31, 2011, 2010 and 2009 was $378,000, $370,000 and $504,000, respectively. Park does not expect the total amount of unrecognized tax benefits to significantly increase or decrease during the next year.

The (income)/expense related to interest and penalties recorded in the Consolidated Statements of Income for the years ended December 31, 2011, 2010 and 2009 was $2,500, $(10,500) and $(18,000), respectively. The amount accrued for interest and penalties at December 31, 2011, 2010 and 2009 was $63,000, $60,500 and $71,000, respectively.

Park and its subsidiaries are subject to U.S. federal income tax. Some of Park’s subsidiaries are subject to state income tax in the following states: Alabama, Florida, California and Kentucky. Park is no longer subject to examination by federal or state taxing authorities for the tax year 2007 and the years prior.

The 2007 and 2008 federal income tax returns of Park National Corporation were recently under examination by the Internal Revenue Service. Additionally, the 2009 state of Ohio franchise tax return was recently under examination. The IRS examination closed in the first quarter of 2012 with no adjustments. The Ohio examination closed in 2011 with no material adjustments.

15. Other Comprehensive Income (Loss)

Other comprehensive income (loss) components and related taxes are shown in the following table for the years ended December 31, 2011, 2010 and 2009.

Year ended December 31, (In thousands)	Before-Tax Amount			Tax Effect			Net-of-Tax Amount
2011:
Unrealized gains on available-for-sale securities	$	25,063		$	8,772		$	16,291
Reclassification adjustment for gains realized in net income		(28,829	)		(10,090	)		(18,739	)
Unrealized net holding gain on cash flow hedge		788			276			512
Changes in pension plan assets and benefit obligations recognized in other comprehensive income		(7,734	)		(2,707	)		(5,027	)
Other comprehensive loss	$	(10,712	)	$	(3,749	)	$	(6,963	)
2010:
Unrealized losses on available-for-sale securities	$	(11,218	)	$	(3,926	)	$	(7,292	)
Reclassification adjustment for gains realized in net income		(11,864	)		(4,152	)		(7,712	)
Unrealized net holding loss on cash flow hedge		(151	)		(53	)		(98	)
Changes in pension plan assets and benefit obligations recognized in other comprehensive income		(3,734	)		(1,307	)		(2,427	)
Other comprehensive loss	$	(26,967	)	$	(9,438	)	$	(17,529	)
2009:
Unrealized gains on available-for-sale securities	$	5,012		$	1,754		$	3,258
Reclassification adjustment for gains realized in net income		(7,340	)		(2,569	)		(4,771	)
Unrealized net holding gain on cash flow hedge		454			159			295
Changes in pension plan assets and benefit obligations recognized in other comprehensive income		9,666			3,383			6,283
Other comprehensive income	$	7,792		$	2,727		$	5,065

36

Notes to Consolidated Financial Statements

The ending balance of each component of accumulated other comprehensive income (loss) was as follows as of December 31:

(In thousands)	2011			2010
Pension benefit adjustments	$	(20,954	)	$	(15,927	)
Unrealized net holding loss on cash flow hedge		(550	)		(1,062	)
Unrealized net holding gains on AFS securities		12,673			15,121
Total accumulated other comprehensive income (loss)	$	(8,831	)	$	(1,868	)

16. Earnings Per Common Share

GAAP requires the reporting of basic and diluted earnings per common share. Basic earnings per common share excludes any dilutive effects of options, warrants and convertible securities.

The following table sets forth the computation of basic and diluted earnings per common share:

Year ended December 31 (In thousands, except per share data)	2011		2010		2009
Numerator:
Net income available to common shareholders	$	76,284	$	52,294	$	68,430
Denominator:
Basic earnings per common share:
Weighted-average shares		15,400,155		15,152,692		14,206,335
Effect of dilutive securities – stock options and warrants		1,291		3,043		-
Diluted earnings per common share:
Adjusted weighted-average shares and assumed conversions		15,401,446		15,155,735		14,206,335
Earnings per common share:
Basic earnings per common share	$	4.95	$	3.45	$	4.82
Diluted earnings per common share	$	4.95	$	3.45	$	4.82

As of December 31, 2011 and 2010, options to purchase 74,020 and 78,075 common shares, respectively, were outstanding under Park’s 2005 Plan. A warrant to purchase 227,376 common shares was outstanding at both December 31, 2011 and 2010 as a result of Park’s participation in the CPP. In addition, warrants to purchase an aggregate of 71,984 common shares were outstanding at December 31, 2010 as a result of the issuance of common stock and warrants which closed on December 10, 2010 (the “December 2010 Warrants”). The December 2010 Warrants expired in 2011, with no warrants being exercised.

The common shares represented by the options and the warrants for the twelve months ended December 31, 2011 and 2010, totaling a weighted average of 126,292 and 382,445, respectively, were not included in the computation of diluted earnings per common share because the respective exercise prices exceeded the market value of the underlying common shares such that their inclusion would have had an anti-dilutive effect. The warrant to purchase 227,376 common shares issued under the CPP was not included in the twelve month weighted average of 126,292 for 2011 or 382,445 for 2010, as the dilutive effect of this warrant was 1,291 and 3,043 shares of common stock for the twelve month periods ended December 31, 2011 and December 31, 2010, respectively. The exercise price of the CPP warrant to purchase 227,376 common shares is $65.97.

17. Dividend Restrictions

Bank regulators limit the amount of dividends a subsidiary bank can declare in any calendar year without obtaining prior approval. At December 31, 2011, approximately $51.3 million of the total stockholders’ equity of PNB was available for the payment of dividends to the Corporation, without approval by the applicable regulatory authorities. Vision Bank is currently not permitted to pay dividends to the Corporation.

37

Notes to Consolidated Financial Statements

18. Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk

The Corporation is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include loan commitments and standby letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements.

The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Since many of the loan commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers.

The total amounts of off-balance sheet financial instruments with credit risk were as follows:

December 31 (In thousands)	2011		2010
Loan commitments	$	809,140	$	716,598
Standby letters of credit		18,772		24,462

The loan commitments are generally for variable rates of interest.

The Corporation grants retail, commercial and commercial real estate loans to customers primarily located in Ohio, Baldwin County, Alabama and the panhandle of Florida. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.

Although the Corporation has a diversified loan portfolio, a substantial portion of the borrowers’ ability to honor their contracts is dependent upon the economic conditions in each borrower’s geographic location and industry.

19. Derivative Instruments

FASB ASC 815, Derivatives and Hedging, establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. As required by GAAP, the Company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivatives and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.

For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivatives is initially reported in other comprehensive income (outside of earnings) and subsequently reclassified into earnings when the hedged transaction affects earnings, with any ineffective portion of changes in the fair value of the derivative recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction.

During the first quarter of 2008, the Company executed an interest rate swap to hedge a $25 million floating-rate subordinated note that was entered into by PNB during the fourth quarter of 2007. The Company’s objective in using this derivative is to add stability to interest expense and to manage its exposure to interest rate risk. Our interest rate swap involves the receipt of variable-rate amounts in exchange for fixed-rate payments over the life of the agreement without exchange of the underlying principal amount, and has been designated as a cash flow hedge.

At December 31, 2011 and 2010, the interest rate swap’s fair value of $(0.8) million and $(1.6) million, respectively, was included in other liabilities. No hedge ineffectiveness on the cash flow hedge was recognized during the twelve months ended December 31, 2011 or 2010. At December 31, 2011, the variable rate on the $25 million subordinated note was 2.58% (3-month LIBOR plus 200 basis points) and Park was paying 6.01% (4.01% fixed rate on the interest rate swap plus 200 basis points).

38

Notes to Consolidated Financial Statements 

For the twelve months ended December 31, 2011 and 2010, the change in the fair value of the interest rate swap reported in other comprehensive income was a gain of $512,000 (net of taxes of $276,000) and a loss of $98,000 (net of taxes of $53,000), respectively. Amounts reported in accumulated other comprehensive income related to the interest rate swap will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.

As of December 31, 2011 and 2010, no derivatives were designated as fair value hedges or hedges of net investments in foreign operations. Additionally, the Company does not use derivatives for trading or speculative purposes.

As of December 31, 2011 and December 31, 2010, Park had mortgage loan interest rate lock commitments (IRLCs) outstanding of approximately $17.2 million and $14.5 million, respectively. Park has specific forward contracts to sell each of these loans to a third party investor. These loan commitments represent derivative instruments, which are required to be carried at fair value. The derivative instruments used are not designed as hedges under GAAP. The fair value of the derivative instruments was approximately $251,000 at December 31, 2011 and $166,000 at December 31, 2010. The fair value of the derivative instruments is included within loans held for sale and the corresponding income is included within non-yield loan fee income. Gains and losses resulting from expected sales of mortgage loans are recognized when the respective loan contract is entered into between the borrower, Park, and the third party investor. The fair value of Park’s mortgage IRLCs is based on current secondary market pricing.

In connection with the sale of Park’s Class B Visa shares during the 2009 year, Park entered into a swap agreement with the purchaser of the shares. The swap agreement adjusts for dilution in the conversion ratio of Class B Visa shares resulting from certain Visa litigation. At December 31, 2011 and December 31, 2010, the fair value of the swap liability of $700,000 and $60,000, respectively, is an estimate of the exposure based upon probability-weighted potential Visa litigation losses.

20. Loan Servicing

Park serviced sold mortgage loans of $1,349 million at December 31, 2011 compared to $1,471 million at December 31, 2010, and $1,518 million at December 31, 2009. At December 31, 2011, $25 million of the sold mortgage loans were sold with recourse compared to $36 million at December 31, 2010. Management closely monitors the delinquency rates on the mortgage loans sold with recourse. At December 31, 2011, management determined that no liability was deemed necessary for these loans.

Park capitalized $1.7 million in mortgage servicing rights in 2011, $3.1 million in 2010 and $5.5 million in 2009. Park’s amortization of mortgage servicing rights was $2.6 million in 2011, $3.2 million in 2010 and $4.0 million in 2009. The amortization of mortgage loan servicing rights is included within “Other service income”. Generally, mortgage servicing rights are capitalized and amortized on an individual sold loan basis. When a sold mortgage loan is paid off, the related mortgage servicing rights are fully amortized.

Activity for mortgage servicing rights and the related valuation allowance follows:

December 31 (In thousands)	2011			2010
Mortgage servicing rights:
Carrying amount, net, beginning of year	$	10,488		$	10,780
Additions		1,659			3,062
Amortization		(2,573	)		(3,180	)
Change in valuation allowance		(273	)		(174	)
Carrying amount, net, end of year	$	9,301		$	10,488
Valuation allowance:
Beginning of year	$	748		$	574
Additions expensed		273			174
End of year	$	1,021		$	748

39

Notes to Consolidated Financial Statements

21. Fair Values

The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that Park uses to measure fair value are as follows:

§ 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” used 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 is defined as the price that would be received to sell an asset or paid to transfer a liability between market participants at the balance sheet date. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and Park must use other valuation methods to develop a fair value. The fair value of impaired loans is based on the fair value of the underlying collateral, which is estimated through third party appraisals or internal estimates of collateral values.

40

Notes to Consolidated Financial Statements

Assets and Liabilities Measured on a Recurring Basis:

The following table presents financial assets and liabilities measured on a recurring basis:

Fair Value Measurements at December 31, 2011 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2011
Assets
Investment Securities
Obligations of U.S. Treasury and Other U.S. Government Sponsored Entities	$	-	$	371,657	$	-	$	371,657
Obligations of States and Political Subdivisions		-		2,660		-		2,660
U.S. Government Sponsored Entities’ Asset-Backed Securities		-		444,295		-		444,295
Equity Securities		1,270		-		763		2,033
Mortgage Loans Held for Sale		-		11,535		-		11,535
Mortgage IRLCs		-		251		-		251
Liabilities
Interest Rate Swap	$	-	$	846	$	-	$	846
Fair value swap		-		-		700		700

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

The following methods and assumptions were used by the Corporation in determining fair value of the financial assets and liabilities discussed above:

Investment securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. The Fair Value Measurements tables exclude Park’s Federal Home Loan Bank stock and Federal Reserve Bank stock. These assets are carried at their respective redemption values, as it is not practicable to calculate their fair values. For securities where quoted prices or market prices of similar securities are not available, which include municipal securities, fair values are calculated using discounted cash flows.

41

Notes to Consolidated Financial Statements

Interest rate swap: The fair value of the interest rate swap represents the estimated amount Park would pay or receive to terminate the agreement, considering current interest rates and the current creditworthiness of the counterparty.

Fair Value Swap: The fair value of the swap agreement entered into with the purchaser of the Visa Class B shares represents an internally developed estimate of the exposure based upon probability-weighted potential Visa litigation losses.

Interest Rate Lock Commitments (IRLCs): IRLCs are based on current secondary market pricing and are classified as Level 2.

Mortgage Loans Held for Sale: Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale are estimated using security prices for similar product types and, therefore, are classified in Level 2.

The table below is a reconciliation of the beginning and ending balances of the Level 3 inputs for the years ended December 31, 2011 and 2010, for financial instruments measured on a recurring basis and classified as Level 3:

Level 3 Fair Value Measurements
(In thousands)	Obligations of States and Political Subdivisions			Equity Securities		Fair Value Swap
Balance, at December 31, 2010	$	2,598		$	745	$	(60	)
Total Gains/(Losses)
Included in earnings - realized		-			-		-
Included in earnings - unrealized		(128	)		-		-
Included in other comprehensive income		-			18		-
Purchases, sales, issuances and settlements, other, net		(2,470	)		-		-
Re-evaluation of fair value swap		-			-		(640	)
Balance December 31, 2011	$	-		$	763	$	(700	)
Balance, at December 31, 2009	$	2,751		$	-	$	(500	)
Total Gains/(Losses)
Included in earnings - realized		-			-		-
Included in earnings - unrealized		-			-		-
Included in other comprehensive income		(43	)		-		-
Purchases, sales, issuances and settlements, other, net		(110	)		-		-
Settlements		-			-		440
Transfers in and/or out of Level 3		-			745		-
Balance December 31, 2010	$	2,598		$	745	$	(60	)

The fair value for several equity securities with a fair value of $745,000 as of December 31, 2010 was transferred out of Level 1 and into Level 3 because of a lack of observable market data for these investments. The Company’s policy is to recognize transfers as of the end of the reporting period. As a result, the fair value for these equity securities was transferred on December 31, 2010.

42

Notes to Consolidated Financial Statements

Assets and Liabilities Measured on a Nonrecurring Basis:

The following table presents financial assets and liabilities measured at fair value on a nonrecurring basis:

Fair Value Measurements at December 31, 2011 Using:
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Balance at December 31, 2011
Impaired Loans:
Commercial, financial and       Agricultural	$	-	$	-	$	19,931	$	19,931
Commercial real estate		-		-		24,859		24,859
Construction real estate:
Vision commercial            land and development		-		-		21,228		21,228
Remaining commercial		-		-		8,860		8,860
Residential real estate		-		-		12,935		12,935
Total impaired loans	$	-	$	-	$	87,813	$	87,813
Mortgage Servicing Rights		-		5,815		-		5,815
Other Real Estate Owned		-		-		42,272		42,272

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		-		-		32,229		32,229
Construction real estate:
Vision commercial land and development		-		-		42,274		42,274
Remaining commercial		-		-		10,465		10,465
Residential real estate		-		-		16,399		16,399
Total impaired loans	$	-	$	-	$	109,643	$	109,643
Mortgage Servicing Rights		-		3,813		-		3,813
Other Real Estate Owned		-		-		41,709		41,709

Impaired loans, which are usually measured for impairment using the fair value of collateral had a book value of $187.1 million at December 31, 2011, after partial charge-offs of $103.8 million. In addition, these loans had a specific valuation allowance of $15.9 million. Of the $187.1 million impaired loan portfolio, loans with a book value of $103.7 million were carried at their fair value of $87.8 million, as a result of the aforementioned charge-offs and specific valuation allowance. The remaining $83.4 million of impaired loans were carried at cost, as the fair value of the underlying collateral or present value of expected future cash flows on these loans exceeded the book value for each individual credit. At December 31, 2010, impaired loans had a book value of $250.9 million. Of these, loans with a book value of $176.5 million were carried at their fair value of $109.6 million, as a result of partial charge-offs of $53.6 million and a specific valuation allowance of $66.9 million. The remaining $74.4 million of impaired loans at December 31, 2010 were carried at cost.

Mortgage servicing rights (MSRs), which are carried at the lower of cost or fair value, were recorded at $9.3 million at December 31, 2011. Of the $9.3 million MSR carrying balance at December 31, 2011, $5.8 million was recorded at fair value and included a valuation allowance of $1.0 million. The remaining $3.5 million was recorded at cost, as the fair value exceeded the cost at December 31, 2011. MSRs do not trade in active, open markets with readily observable prices. For example, sales of MSRs do occur, but precise terms and conditions typically are not readily available. As such, management, with the assistance of a third party specialist, determined fair value based on the discounted value of the future cash flows estimated to be received. Significant inputs include the discount rate and assumed prepayment speeds utilized. The calculated fair value was then compared to market vales where possible to ascertain the reasonableness of the valuation in relation to current market expectations for similar products. Accordingly, MSRs are classified in Level 2. At December 31, 2010, of the $10.5 million MSR carrying balance, $3.8 million were recorded at fair value and included a valuation allowance of $748,000.

43

Notes to Consolidated Financial Statements

Other real estate owned (OREO) is recorded at fair value based on property appraisals, less estimated selling costs, at the date of transfer. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. At December 31, 2011 and 2010, the estimated fair value of OREO, less estimated selling costs amounted to $42.3 million and $41.7 million, respectively. The financial impact of OREO valuation adjustments for the year ended December 31, 2011 was $8.2 million.

The following methods and assumptions were used by the Corporation in estimating its fair value disclosures for assets and liabilities not discussed above:

Cash and money market instruments: The carrying amounts reported in the Consolidated Balance Sheets for cash and short-term instruments approximate those assets’ fair values.

Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for certain mortgage loans (e.g., one-to-four family residential) are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted for differences in loan characteristics. The fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

Off-balance sheet instruments: Fair values for the Corporation’s loan commitments and standby letters of credit are based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The carrying amount and fair value were not material.

Deposit liabilities: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts for variable-rate, fixed-term certificates of deposit approximate their fair values at the reporting date. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities of time deposits.

Short-term borrowings: The carrying amounts of federal funds purchased, borrowings under repurchase agreements and other short-term borrowings approximate their fair values.

Long-term debt: Fair values for long-term debt are estimated using a discounted cash flow calculation that applies interest rates currently being offered on long-term debt to a schedule of monthly maturities.

Subordinated debentures/notes: Fair values for subordinated debentures and notes are estimated using a discounted cash flow calculation that applies interest rate spreads currently being offered on similar debt structures to a schedule of monthly maturities.

44

Notes to Consolidated Financial Statements

The fair value of financial instruments at December 31, 2011 and December 31, 2010, was as follows:

(In thousands)	December 31, 2011				December 31, 2010
Financial Assets:	Carrying Value		Fair Value		Carrying Value		Fair Value
Cash and Money Market Instruments	$157,486		$157,486		$133,780		$133,780
Investment Securities		1,640,869		1,655,219		1,971,092		1,983,636
Accrued Interest Receivable		19,697		19,697		24,137		24,137
Mortgage Loans Held for Sale		11,535		11,535		8,340		8,340
Impaired Loans Carried at Fair Value		87,813		87,813		109,643		109,643
Other Loans		4,149,307		4,167,224		4,471,127		4,490,855
Loans Receivable, Net	$	4,248,655	$	4,266,572	$	4,589,110	$	4,608,838
Assets held for sale	$	382,462	$	382,462	$	-	$	-
Financial Liabilities:
Noninterest Bearing Checking		995,733		995,733	$	937,719	$	937,719
Interest Bearing Transactions Accounts		1,037,385		1,037,385		1,283,159		1,283,159
Savings		931,526		931,526		899,288		899,288
Time Deposits		1,499,105		1,506,075		1,973,903		1,990,163
Other		1,365		1,365		1,351		1,351
Total Deposits	$	4,465,114	$	4,472,084	$	5,095,420	$	5,111,680
Short-Term Borrowings	$	263,594	$	263,594	$	663,669	$	663,669
Long-Term Debt		823,182		915,274		636,733		699,080
Subordinated Debentures/Notes		75,250		68,601		75,250		63,099
Accrued Interest Payable		4,916		4,916		6,123		6,123
Liabilities held for sale		536,186		536,991		-		-
Derivative Financial Instruments:
Interest Rate Swap	$	846	$	846	$	1,634	$	1,634
Fair value swap		700		700		60		60

22. Capital Ratios

At December 31, 2011 and 2010, the Corporation and each of its two separately chartered banks had Tier 1, total risk-based capital and leverage ratios which were well above both the required minimum levels of 4.00%, 8.00% and 4.00%, respectively, and the well-capitalized levels of 6.00%, 10.00% and 5.00%, respectively.

The following table indicates the capital ratios for Park and each subsidiary at December 31, 2011 and December 31, 2010.

	2011									2010
	Tier 1 Risk-Based			Total Risk-Based			Leverage			Tier 1 Risk-Based			Total Risk-Based			Leverage
Park National Bank		9.52	%		11.46	%		6.58	%		9.43	%		11.38	%		6.68	%
Vision Bank		23.42	%		24.72	%		15.89	%		11.75	%		13.12	%		9.12	%
Park		14.15	%		16.65	%		9.81	%		13.24	%		15.71	%		9.54	%

Failure to meet the minimum requirements above could cause the Federal Reserve Board to take action. Park’s bank subsidiaries are also subject to these capital requirements by their primary regulators. As of December 31, 2011 and 2010, Park and its banking subsidiaries were well-capitalized and met all capital requirements to which each was subject. There are no conditions or events since the most recent regulatory report filings, by PNB or Vision Bank (“VB”) that management believes have changed the risk categories for either of the two banks.

45

Notes to Consolidated Financial Statements

The following table reflects various measures of capital for Park and each of PNB and VB:

						To Be Adequately Capitalized					To Be Well Capitalized
(In thousands)	Actual Amount		Ratio			Amount		Ratio			Amount		Ratio
At December 31, 2011
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	498,367		11.46	%	$	347,972		8.00	%	$	434,965		10.00	%
VB (1)		115,637		24.72	%		37,427		8.00	%		46,784		10.00	%
Park		812,286		16.65	%		390,270		8.00	%		487,837		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	413,870		9.52	%	$	173,986		4.00	%	$	260,979		6.00	%
VB		109,566		23.42	%		18,714		4.00	%		28,071		6.00	%
Park		690,419		14.15	%		195,135		4.00	%		292,702		6.00	%
Leverage Ratio (to average total assets)
PNB	$	413,870		6.58	%	$	251,691		4.00	%	$	314,614		5.00	%
VB (1)		109,566		15.89	%		27,588		4.00	%		34,485		5.00	%
Park		690,419		9.81	%		281,506		4.00	%		351,882		5.00	%
At December 31, 2010
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	495,668		11.38	%	$	348,452		8.00	%	$	435,565		10.00	%
VB (Restated) (1)(2)		80,305		13.12	%		48,966		8.00	%		61,208		10.00	%
Park (Restated)		786,214		15.71	%		400,307		8.00	%		500,384		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	410,879		9.43	%	$	174,226		4.00	%	$	261,339		6.00	%
VB (Restated)		71,897		11.75	%		24,483		4.00	%		36,725		6.00	%
Park (Restated)		662,390		13.24	%		200,154		4.00	%		300,230		6.00	%
Leverage Ratio (to average total assets)
PNB	$	410,879		6.68	%	$	246,084		4.00	%	$	307,605		5.00	%
VB (Restated) (1)(2)		71,897		9.12	%		31,520		4.00	%		39,400		5.00	%
Park (Restated)		662,390		9.54	%		277,817		4.00	%		347,271		5.00	%

(1) Park management had agreed to maintain Vision Bank’s total risk-based capital at 16.00% and the leverage ratio at 12.00%.

(2) As a result of the financial statement restatement for the year ended December 31, 2010, Vision Bank’s December 31, 2010 total risk-based capital ratio declined from 19.55% to 13.12% and its leverage ratio declined from 14.05% to 9.12%.

23. Segment Information

The Corporation is a multi-bank holding company headquartered in Newark, Ohio. The operating segments for the Corporation are its two chartered bank subsidiaries, The Park National Bank (headquartered in Newark, Ohio) and Vision Bank (headquartered in Panama City, Florida). Guardian Financial Services Company is a consumer finance company and is excluded from PNB for segment reporting purposes. GFSC is included within the presentation of “All Other” in the segment reporting tables that follow. GAAP requires management to disclose information about the different types of business activities in which a company engages and also information on the different economic environments in which a company operates, so that the users of the financial statements can better understand a company’s performance, better understand the potential for future cash flows, and make more informed judgments about the company as a whole. Park’s two operating segments are in line with GAAP as there are: (i) two separate and distinct geographic markets in which Park operates, (ii) discrete financial information is available for each operating segment and (iii) the segments are aligned with internal reporting to Park’s Chief Executive Officer, who is the chief operating decision maker.

46

Notes to Consolidated Financial Statements

Operating results for the year ended December 31, 2011 (In thousands)
	PNB		VB			All Other			Total
Net interest income	$	236,282	$	27,078		$	9,874		$	273,234
Provision for loan losses		30,220		31,052			2,000			63,272
Other income (loss)		90,982		6,617			(2,689	)		94,910
Other expense		146,235		31,379			10,703			188,317
Income (loss) before taxes		150,809		(28,736	)		(5,518	)		116,555
Income taxes (benefit)		43,958		(6,210	)		(3,333	)		34,415
Net income (loss)	$	106,851	$	(22,526	)	$	(2,185	)	$	82,140
Balances at December 31, 2011
Assets	$	6,281,747	$	650,935		$	39,563		$	6,972,245
Assets held for sale (1)		--		382,462			--			382,462
Loans		4,172,424		123,883			20,792			4,317,099
Deposits		4,611,646		32			(146,564	)		4,465,114
Liabilities held for sale (2)		--		536,186			--			536,186

Operating results for the year ended December 31, 2010 (In thousands)
	PNB		VB			All Other			Total
Net interest income	$	237,281	$	27,867		$	8,896		$	274,044
Provision for loan losses		23,474		61,407			2,199			87,080
Other income (loss)		80,512		(6,024	)		392			74,880
Other expense		144,051		31,623			11,433			187,107
Income (loss) before taxes		150,268		(71,187	)		(4,344	)		74,737
Income taxes (benefit)		47,320		(25,773	)		(4,911	)		16,636
Net income (loss)	$	102,948	$	(45,414	)	$	567		$	58,101
Balances at December 31, 2010
Assets	$	6,495,558	$	791,945		$	(5,242	)	$	7,282,261
Loans		4,074,775		640,580			17,330			4,732,685
Deposits		4,622,693		633,432			(160,705	)		5,095,420

Operating results for the year ended December 31, 2009 (In thousands)
	PNB		VB			All Other			Total
Net interest income	$	236,107	$	25,634		$	11,750		$	273,491
Provision for loan losses		22,339		44,430			2,052			68,821
Other income (loss)		82,770		(2,047	)		467			81,190
Other expense		148,048		28,091			12,586			188,725
Income (loss) before taxes		148,490		(48,934	)		(2,421	)		97,135
Income taxes (benefit)		47,032		(18,824	)		(5,265	)		22,943
Net income (loss)	$	101,458	$	(30,110	)	$	2,844		$	74,192
Balances at December 31, 2009
Assets	$	6,182,257	$	897,981		$	(39,909	)	$	7,040,329
Loans		3,950,599		677,018			12,815			4,640,432
Deposits		4,670,113		688,900			(170,961	)		5,188,052

(1) The assets held for sale represent the loans and other assets at Vision Bank that will be sold in the first quarter of 2012.

(2) The liabilities held for sale represent the deposits and other liabilities at Vision Bank that will be sold in the first quarter of 2012.

47

Notes to Consolidated Financial Statements

The following is a reconciliation of financial information for the reportable segments to the Corporation’s consolidated totals:

	2011
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	263,360	$	7,562	$	170,052	$	37,748		$	6,932,682		$	4,611,678
Elimination of intersegment items		-		-		-		-			(57,286	)		(146,564	)
Parent Co. & GFSC totals - not eliminated		9,874		21		10,682		(3,333	)		96,849			-
Totals	$	273,234	$	7,583	$	180,734	$	34,415		$	6,972,245		$	4,465,114

	2010
	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	265,148	$	7,109	$	168,565	$	21,547		$	7,287,503		$	5,256,125
Elimination of intersegment items		-		-		-		-			(77,876	)		(160,705	)
Parent Co. & GFSC totals - not eliminated		8,896		17		11,416		(4,911	)		72,634			-
Totals	$	274,044	$	7,126	$	179,981	$	16,636		$	7,282,261		$	5,095,420

	2009
	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	261,741	$	7,451	$	168,688	$	28,208		$	7,080,238		$	5,359,013
Elimination of intersegment items		-		-		-		-			(114,214	)		(170,961	)
Parent Co. & GFSC totals - not eliminated		11,750		22		12,564		(5,265	)		74,305			-
Totals	$	273,491	$	7,473	$	181,252	$	22,943		$	7,040,329		$	5,188,052

24. Parent Company Statements

The Parent Company statements should be read in conjunction with the consolidated financial statements and the information set forth below.

Investments in subsidiaries are accounted for using the equity method of accounting.

The effective tax rate for the Parent Company is substantially less than the statutory rate due principally to tax-exempt dividends from subsidiaries.

Cash represents noninterest bearing deposits with a bank subsidiary.

Net cash provided by operating activities reflects cash payments (received from subsidiaries) for income taxes of $4.21 million, $5.97 million and $5.22 million in 2011, 2010 and 2009, respectively.

At December 31, 2011 and 2010, stockholders’ equity reflected in the Parent Company balance sheet includes $146.6 million and $143 million, respectively, of undistributed earnings of the Corporation’s subsidiaries which are restricted from transfer as dividends to the Corporation.

48

Notes to Consolidated Financial Statements

Balance Sheets
	December 31,
(In thousands)	2011		2010
Assets:
Cash	$	140,607	$	160,011
Investment in subsidiaries		602,270		601,201
Debentures receivable from subsidiary banks		5,000		5,000
Other investments		2,280		1,451
Other assets		90,438		69,845
Total assets	$	840,595	$	837,508
Liabilities:
Dividends payable	$	-	$	-
Subordinated notes		50,250		50,250
Other liabilities		47,981		57,550
Total liabilities		98,231		107,800
Total stockholders’ equity		742,364		729,708
Total liabilities and stockholders’ equity	$	840,595	$	837,508

Statements of Income
	For the Years ended December 31,
(in thousands)	2011			2010			2009
Income:
Dividends from subsidiaries	$	105,000		$	80,000		$	75,000
Interest and dividends		4,669			4,789			4,715
Other		(2,653	)		411			489
Total income		107,016			85,200			80,204
Expense:
Other, net		11,721			12,632			10,322
Total expense		11,721			12,632			10,322
Income before federal taxes and equity in undistributed losses of subsidiaries		95,295			72,568			69,882
Federal income tax benefit		4,799			5,993			6,210
Income before equity in undistributed losses of subsidiaries		100,094			78,561			76,092
Equity in undistributed losses of subsidiaries		(17,954	)		(20,460	)		(1,900	)
Net income	$	82,140		$	58,101		$	74,192

49

Notes to Consolidated Financial Statements

Statements of Cash Flows
	For the Years ended December 31,
(In thousands)	2011			2010			2009
Operating activities:
Net income	$	82,140		$	58,101		$	74,192
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed losses of subsidiaries		17,954			20,460			1,900
Other than temporary impairment charge, investments		(560	)		23			140
(Increase) decrease in other assets		(20,204	)		7,321			(18,420	)
(Decrease) increase in other liabilities		(9,575	)		(3,763	)		24,178
Net cash provided by operating activities		69,755			82,142			81,990
Investing activities:
Purchase of investment securities		(250	)		-			(113	)
Capital contribution to subsidiary		(26,000	)		(52,000	)		(37,000	)
Repayment of debentures receivable from subsidiaries		-			2,500			-
Net cash used in investing activities		(26,250	)		(49,500	)		(37,113	)
Financing activities:
Cash dividends paid		(62,907	)		(62,076	)		(58,035	)
Proceeds from issuance of common stock and warrants		-			33,541			53,475
Proceeds from issuance of subordinated notes		-			-			35,250
Cash payment for fractional shares		(2	)		(4	)		(2	)
Proceeds from issuance of preferred stock		-			-			-
Net cash (used in) provided by financing activities		(62,909	)		(28,539	)		30,688
(Decrease) increase in cash		(19,404	)		4,103			75,565
Cash at beginning of year		160,011			155,908			80,343
Cash at end of year	$	140,607		$	160,011		$	155,908

25. Participation in the U.S. Treasury Capital Purchase Program

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 year ended December 31, 2011, Park recognized a charge to retained earnings of $5.9 million representing the preferred stock dividend and accretion of the discount on the preferred stock, associated with its 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 United States Department of the Treasury (calculated on a 20-day trailing average). The warrant has a term of 10 years.

50

Notes to Consolidated Financial Statements

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.

26. Sale of Common Shares and Issuance of Common Stock Warrants

There were no sales of common shares or issuance of common stock warrants during 2011. Outstanding as of December 31, 2010 were 35,992 Series A Common Share Warrants and 35,992 Series B Common Share Warrants which were issued as part of the registered direct public offering completed on December 10, 2010. The Series A and Series B Common Share Warrants had an exercise price of $76.41. The Series A Common Share Warrants issued in December 2010 were not exercised and expired on June 10, 2011. The Series B Common Share Warrants issued in December 2010 were not exercised and expired on December 20, 2011.

27. Subsequent Event – Vision Bank Closing

On February 16, 2012, Park and its wholly-owned subsidiary, Vision Bank, a Florida state-chartered bank, completed their sale of substantially all of the performing loans, operating assets and liabilities associated with Vision Bank to Centennial Bank (“Centennial”), an Arkansas state-chartered bank which is a wholly-owned subsidiary of Home BancShares, Inc., an Arkansas Corporation (“Home”), as contemplated by the previously announced Purchase and Assumption Agreement by and between Park, Vision, Home and Centennial, dated as of November 16, 2011, as amended by the First Amendment to Purchase and Assumption Agreement, dated as of January 25, 2012 (the “Agreement”).

In accordance with the Agreement, on the closing date, Vision sold approximately $354 million in performing loans, approximately $520 million of deposits, fixed assets of approximately $12.5 million and other miscellaneous assets and liabilities for a purchase price of $27.9 million. Subsequent to the transactions contemplated by the Agreement, Vision was left with approximately $22 million of performing loans (including mortgage loans held for sale) and non-performing loans with a fair value of $88 million. Park will record a pre-tax gain, net of expenses directly related to the sale, of approximately $22 million, resulting from the transactions contemplated by the Agreement.

Promptly following the closing of the transactions contemplated by the Agreement, Vision surrendered its Florida banking charter to the Florida Office of Financial Regulation (the “OFR”) and became a non-bank Florida corporation (the “Florida Corporation”). The Florida Corporation merged with and into a wholly-owned, non-bank subsidiary of Park, SE Property Holdings, LLC (“SE, LLC”), with SE, LLC being the surviving entity.

51

EX-14

CODE OF BUSINESS CONDUCT AND ETHICS

Adopted by the Board of Directors

Park National Corporation

January 16, 2001

Amended

April 15, 2002

July 21, 2003

April 19, 2004

July 18, 2005

July 17, 2006

July 16, 2007
(updated 7/24/07)

April 21, 2008

(updated 4/23/08)

July 21, 2008

(updated 7/25/08)

January 26, 2009

(updated 1/30/09)

April 20, 2009

(updated 4/27/09)

July 19, 2010

(updated 7/20/10)
July 18, 2011
(updated 7/20/11)

January 23, 2012
(updated 01/24/12)

LBL

CODE OF BUSINESS CONDUCT AND ETHICS

Park National Corporation ("Park") is judged by the collective and individual performance of the directors, officers, associates, and agents of Park and its affiliates (collectively, the "Company"). Thus, these individuals traditionally have recognized that their first duty to the Company and its several publics is to act in a manner that merits public trust and confidence.

As professionals, the Company's directors, officers, associates, and agents have earned a reputation for integrity and competence. They have been guided and judged by the highest standards of conduct. Over the years, these standards have been reaffirmed, despite new challenges and ever-changing social values. Integrity, honesty, public trust and confidence have served as crucial tests of our service and success.

This Code of Business Conduct and Ethics (the "Code of Ethics") has been adopted by the Board of Directors of Park to demonstrate to the public and the Company's various constituents the importance that Park's Board of Directors and leadership place on ethical conduct. The Code of Ethics is intended to set forth the Company's expectations for the conduct of ethical business practices by its directors, officers, associates, and agents to promote advanced disclosure and review of potential conflicts of interest and similar matters, to protect and encourage the reporting of questionable behavior, to foster an atmosphere of self-awareness and prudent conduct and to discipline appropriately those who engage in improper conduct. The Code of Ethics is not presented to expand upon or change the ethical standards of our directors, officers, associates, and agents. It is not intended to be all-inclusive, and cannot address every situation that might arise. Rather its purpose is to reduce to writing many of the patterns of conduct that are expected at Park or any of its affiliates. It represents a set of minimum standards. It is important to remember that our good reputation emerges from many actions and can be jeopardized by one.

You are required to read this Code of Ethics carefully. Should it be unclear, please seek guidance from your affiliate president or the Chief Executive Officer, the Chairman of the Board, the President or the Internal Auditor of Park, for in matters such as these, appearance is often as important as reality. It is not only the letter but the spirit of the commitment that is important.

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On an annual basis, directors and officers of Park and each affiliate must re-read this Code of Ethics and provide written verification of such review by signing an appropriate acknowledgment form. New associates must read the Code of Ethics and sign the appropriate acknowledgment form during their orientation meeting. All associates must re-read the Code of Ethics (as amended) and sign new acknowledgment forms after any amendments are approved by the Board of Directors of Park.

Conflicts of Interest

As directors, officers, associates, and agents of a financial services organization, we assume a duty to our communities, our customers and our shareholders. Such duty is to act in all matters in a manner that will merit public trust and confidence. This duty extends to all activities -- both personal and professional. Each person associated with the Company is expected to direct his or her personal conduct in a manner which will bring credit to the Company and to avoid any action which would discredit it.

In the exercise of privileges and authority arising from employment or other association with the Company, two fundamental principles apply: directors, officers, associates, and agents, when acting for, on behalf of, or in the name of the Company, will place the interests of the Company ahead of their own private interests, and directors, officers, associates, and agents have a duty to make full disclosure of any situation in which their private interests create a conflict or potential conflict with those of the Company.

Conflicts of interest occur when business judgments or decisions may be influenced by personal interests not shared by the organization as a whole. A conflict situation may, for example, arise when an individual, or a member of the individual’s family, has an interest in a transaction to which the Company is a party, competes with the Company or takes advantage of an opportunity that belongs to the Company.

When a conflict of interest arises, an officer, director, associate, or agent has a duty to place the Company's interests above his or her own personal interests. It is essential that in those instances where a Company decision or practice may appear to have been made to advance a personal interest, that the decision be made or approved by the independent and "disinterested" officers or directors of the Company. Thus, in those instances where an associate faces a potential conflict of interest, the associate should report the potential conflict of interest to a senior officer for his or her review. Any action or transaction in which the personal interest of an officer, director, or agent of the Company may be in conflict with those of the Company must be promptly reported to the chairperson of the Audit Committee of the Board of Directors of Park (the "Audit Committee"). The Audit Committee shall review and oversee all actions and transactions which involve the personal interest of an associate, officer, or director and shall have the right to determine in advance that any such action or transaction does not constitute a conflict of interest in violation of this Code of Ethics.

It is considered a conflict of interest, and therefore could result in termination of employment, if an associate of one of the affiliates of Park makes a loan, processes any type of transaction (e.g., withdrawals, deposits, check cashing or payments), or waives fees and/or service charges for his/her own personal loans, accounts, or transactions or those of immediate family members or persons living in the same household (roommate, boyfriend, girlfriend, etc.). It is each associate’s responsibility to exercise prudence and good judgment when making loans or processing transactions to or for anyone whose personal relationship with the associate may influence his/her judgment.

This policy is not meant to discourage relatives and/or friends of associates from banking with any of our affiliates. They should be afforded the same fine service as other customers.

Trusts

It is improper for an associate to accept appointment of or continue to act as a fiduciary or co-fiduciary in the case of any trust, estate, agency, guardianship or custodianship of a client of Park, unless, the creator of the relationship, or the ward in the case of a guardianship, is or was at the time of death, a member of the employee’s immediate family. An associate shall not serve as a personal representative of an estate; act as a trustee of a trust, or guardian of a minor heir unless the client is a close relative or personal friend of the associate.

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No associate shall accept appointment as a fiduciary or co-fiduciary in any trust, estate, agency, guardianship or conservatorship of an estate or custodianship, or act as an investment counselor or estate appraiser for a client of the Company (other than in the course of employment with the Company), unless, the creator of the relationship, or the ward in the case of a guardianship or conservatorship, is in the immediate family of the associate or a close personal friend. The provision can be waived, on a case-by-case basis, by written approval of the Chief Executive Officer of the appropriate affiliate of Park.

Associates must report to the Company any legacy or bequest to them under wills or trusts of clients (other than immediate family or relatives). The Audit Committee or the Board of Directors will evaluate such reports to assure than a conflict of interest does not exist. If a conflict does exist, the beneficiary associate may be expected to be relieved of the administration of the legacy and may be required to renounce the gift. Noncompliance with a Company directive on such a matter may be grounds for discipline or termination.

Outside Activities

No outside activity must interfere or conflict with the interest of any of Park or its affiliates. Acceptance of outside employment, election to directorships of other for-profit corporations, representation of customers in their dealings with our affiliates and participation in the affairs of all outside organizations carry possibilities of conflict of interest. No associate may serve as an official or director of any for-profit enterprise without obtaining written approval from the appropriate affiliate's Chief Executive Officer.

Associates of the Company should ask themselves the following questions when considering a job outside the Company: Is there a conflict of interest? Will it adversely affect my affiliate? Will the job interfere with the time and attention that must be devoted to the job duties, responsibilities, or other obligations at the affiliate? Will Company property or equipment or use of proprietary information (such as mailing lists, computer systems, etc.) be involved? If the answer to any of these questions is "yes," the second job should not be accepted.

Service with constructive non-profit organizations and participation in civic affairs is strongly encouraged. There are cases, however, when organizations having business relationships with one of our affiliates in which the handling of confidential information is involved might result in a conflict of interest. Associates must be sensitive to such potential conflicts.

Gifts, Fees, Gratuities, and Other Payments from Customers or Suppliers

Some of our business acquaintances customarily distribute small gifts at Christmas and on other occasions. In the event of receipt of such gift or entertainment opportunity, each director, officer, associate, and agent (when acting for, on behalf of or in the name of the Company) must decide conscientiously whether or not acceptance would give rise to a feeling of obligation, or could lead to misinterpretation. Gifts, benefits, or unusual hospitality that might tend to influence one in the performance of his or her duty must not be accepted. Such gifts, benefits or unusual hospitality do not include gifts of nominal value, or gifts which serve as general advertising for the donor, or discounts or special concessions available to all associates, or hospitality which is casual and limited to a normal situation. As a further guide to what may or may not be acceptable, you should ask yourself whether, in the judgment of business associates or disinterested parties, such acceptance might seem to impair your ability to act at all times solely in the best interests of your affiliate.

Officers, directors, associates and agents of the Company are prohibited from (1) soliciting for themselves or for a third party (other than the respective affiliate of Park with which they are associated) anything of value from anyone in return for any business, service or confidential information of the affiliate of Park with which they are associated, and (2) accepting anything of value (other than a bona fide salary, wages and fees referred to in 18 U.S.C. 215c) from anyone in connection with the business of the respective affiliate of Park with which they are associated, either before or after a transaction is discussed or consummated.

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Additional direction on this subject is provided in the "Insider Activities" booklet of the Comptroller’s Handbook (Comptroller of the Currency, March 2006) which also addresses Title 18 U.S.C. 215, "Crime Control Act of 1984".

This statute is intended to prevent a pay-off to officers, directors, associates or agents of an affiliate of Park as a quid pro quo either to induce a particular transaction or as a "gratuity" in support of a particular transaction. Thus, where a benefit is given or received as a result of a banking transaction, the statute may be violated. However, it is not intended to proscribe the receipt of gratuities or favors of nominal value when it is clear from the circumstances that (a) a customer is not trying to exert any influence over the officer, director, associate or agent of the affiliate of Park in connection with a transaction and (b) the gratuity or favor is, in fact, unsolicited.

If an officer, director, or agent receives a personal benefit that is not clearly reasonable and business-related, he/she must report it to the Audit Committee. If an associate receives a personal benefit that is not clearly reasonable and business-related, he/she must report it to the Chief Executive Officer of the appropriate affiliate. The Park Audit Committee or the affiliate Chief Executive Officer, as the case may be, shall have the right to determine in advance that any such personal benefit does not constitute a conflict of interest in violation of this Code of Ethics and/or to require that such personal benefit be returned to the provider and/or reimbursed by the Company.

Dealing Fairly With Customers, Suppliers, and Other Associates

No officer, director, associate, or agent of the Company should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practice. The Company does not sanction offering or making payments of any kind, whether of money, services or property, to any domestic or foreign public official or of providing personal benefits that are not clearly reasonable and business-related to any employee, agent or representative of any organization seeking to or doing business with the Company. If there is any question as to whether any such personal benefit is clearly reasonable and business-related, an officer, director, or agent should seek pre-approval from the Audit Committee, and an associate from the appropriate affiliate’s Chief Executive Officer.

Competition

The Company believes that open and honest competition in the marketplace is healthy and must always be positive, not negative. Any collusion with competitors about the pricing of bank services, interest rates or otherwise engaging in any activity that has the effect, directly or indirectly, of lessening competition, is not permitted.

Associates should avoid portraying bank competitors, or the Company itself, in a negative or adverse way. Associates have a duty to portray the Company in the best possible light when communicating with clients, friends, neighbors and any current or potential clients.

If an associate chooses to identify himself or herself as a Company associate in any media (e.g., website, blog, newspaper, email, video, Facebook, other social media, etc.), the associate must adhere to the following guidelines:

1. Make it clear that the views expressed are the associate’s alone and that they do not necessarily reflect the views of the Company;

2. Never disclose any information that is confidential or proprietary to the Company or any of its clients, or to any third party that has disclosed information to the Company.

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3. Uphold at all times the Company’s values and respect for individuals, and avoid making defamatory statements about Company associates, clients, partners, affiliates and others, including competitors.

If the communication activities of any associate are seen as compromising the Company in any way, the Company may request a cessation of such commentary and the associate may be subject to disciplinary action. Associates should read the Acceptable Use Policy for more specific direction on these communication activities and related issues.

Political Activities

Neither Park nor any of its affiliates will make any contribution or expenditure, either directly or indirectly, to, or for the benefit of, use of, in support of, or in opposition to, any political party, candidate, political committee, or for any non public issue purpose. The Company will not reimburse any person for such contribution or expenditure. This policy relates to the use of corporate and/or affiliate funds only, and in no way is intended to discourage officers, directors, associates, and/or agents from making personal contributions to individual candidates, political parties, or political action committees.

The Company may make political loans in connection with campaigns provided that such loans are made in accordance with applicable banking laws, rules and regulations, in the ordinary course of business and according to loan policies, and in conformity with applicable federal, state and local laws, rules and regulations.

Directors, officers, associates, and agents of the Company may engage in political activity (serving for example as a campaign treasurer). Associates should inform the persons to whom they report and be very careful not to allow their activity to interfere with their work-related responsibilities. This means such activity would ordinarily be confined to the evenings and weekends and only occasionally and exceptionally would it be engaged in during business hours.

Any associate of one of our affiliates who is considering becoming a candidate for any elective public office, engaging in outside employment under any governmental unit, or being appointed to any governmental position should inform the affiliate with which the associate is employed and obtain prior approval by the appropriate affiliate’s Chief Executive Officer.

It is contrary to the Company’s Code of Ethics to permit the payment of funds of any affiliate of Park, or use of bank property, either directly or indirectly to secure favored business treatment for the applicable bank. In addition, bank property or funds cannot be used to support a campaign for public office. This includes the use of bank personnel and equipment such as telephones, copy machines, postage, etc.

Confidential Information

Perhaps the most crucial area of concern for bankers and regulatory authorities is the use and/or abuse of confidential information. Financial institutions by their very nature are privy to customers' business plans, forecasts, decisions, and problems. Bankers receive this information as an aid to providing more efficient, more knowledgeable service … and for no other reason.

The use of such information for one's own, or another’s, personal benefit constitutes an abuse which subjects an individual and the institution to statutory penalties.

Banks also possess considerable information which, though not necessarily confidential by nature, must nonetheless be treated confidentially if the right of privacy of customers and staff is to be safeguarded.

Therefore, confidential information with respect to the Company's customers and suppliers acquired by an officer, director, associate or agent of the Company, through his or her association with the Company, is considered to be privileged and must be held in the strictest confidence. It is to be used solely for corporate purposes and not as a basis for personal gain by the officer, director, associate or agent. In no case shall such information be transmitted to persons outside the Company, including family or other acquaintances, or even to other officers, directors, associates, or agents of the Company who do not need to know such information in discharging their duties as officers, directors, associates or agents. The restrictions in this paragraph shall also apply to the reports and statements prepared for use in the Company's business and not generally released. The disclosure of material, non-public information to others can lead to significant legal difficulties, fines and punishment as well as termination of employment. Only specifically designated representatives of the Company may discuss any aspect of the Company’s business with the news media or the investment community. Officers, directors, associates, or agents may not under any circumstances provide information or discuss matters involving the Company with the news media or investment community even if contacted directly by a media organization or investment entity. All such contact or inquiries should be referred to the Chairman of the Board, the Chief Executive Officer, or the President of Park or their designate(s).

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Dishonesty and Breach of Trust

An officer, director, associate, or agent shall not use his/her position at one of our affiliates to commit an act that would be considered illegal (e.g. theft, falsifying affiliate records, forgery, check kiting, etc.)

All officers, directors, associates, and agents must conduct themselves with honesty and integrity at all times. Suspicious activities must be reported to the Internal Auditor or Security Officer of their respective affiliate or through the confidential PRK Improvement Line (see page 8.) Upon receipt of such report, the PRK Investigation Team, comprised of Internal Audit, Security, and Human Resources officers, will conduct an investigation. All officers, directors, associates, and agents are to cooperate with the resulting investigation. Withholding information or lying to investigators will be cause for immediate termination of employment. All legal violations will be referred to the appropriate police agency for prosecution.

Compliance With Applicable Laws, Rules and Regulations

The Company expects that each and every officer, director, associate, and agent of the Company will comply with all applicable federal, state, local and foreign laws, rules and regulations governing the Company's business, including insider trading laws. In addition, all officers, directors, associates, and agents are required to respond honestly and candidly when dealing with the Company’s independent public accountants and internal auditors, regulators and attorneys.

While these principles are seemingly self-explanatory, at times, the application of any particular law, rule or regulation to the Company may not be perfectly clear. Where an associate is unsure or has any question as to the application to the Company of any law, rule or regulation, it is expected that the associate will seek appropriate guidance from the appropriate affiliate’s Chief Executive Officer, who may seek guidance from outside counsel to the Company. Officers, directors, and agents of the Company should seek guidance from the appropriate affiliate’s Chief Executive Officer or from outside counsel to the Company. In addition, the Audit Committee is specifically empowered to engage non-Company counsel if or when it believes such engagement is prudent.

Personal Investments

In making personal investments, all officers, directors, associates, and agents shall be guided by a keen awareness of potential conflict. Generally speaking, one's own investments should not be such as to influence his or her judgment or action in the conduct of the Company's business or to profit from security transactions made for our affiliates’ customers.

An officer, director, associate, or agent should not enter into a security transaction for his or her own account under conditions where information not generally available to the public is made available to the Company on a confidential basis or for corporate purposes and is used as a basis for the individual's action; nor should the individual disclose such information to any unauthorized person. The Company has a comprehensive "Insider Trading Policy" which is applicable to all officers, directors, and associates of the Company as well as to each of their immediate family members. The Company expects that every officer, director, and associate will comply, and will cause their family members to comply, with every aspect of the Securities Trading Policy.

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Personal Borrowing

Officers subject to Regulation O, as well as, associates and other officers of the Company may borrow from the bank or other financial institutions, providing all transactions are at arm's-length, at market prices, and control of the lending situation is clearly in the hands of the lender. An associate may not have lending authority over an account involving themselves, their immediate family, relatives or any related interests. Associates are not permitted to borrow from other customers or suppliers. This prohibition does not preclude the Company from entering into a lending relationship with an individual related to the associate by blood or marriage. Only officers subject to Regulation O must report to the bank board.

It is the policy of the Company that credit standards will be consistent for all loan applications and existing clients regardless of race, color, national origin, religion, sex, sexual orientation, age, disability, marital status, veteran’s status or any other legally protected status, provided the applicant meets all other relevant criteria and the capacity to enter into a binding contract.

Annual Personal Financial Statements

Annual personal financial statements are required of all officers of our affiliates at year-end, including data for both the officer and his or her spouse. The very nature of a bank officer's job requires that full and complete financial disclosures be made at least on an annual basis, and more often as required.

The statements are to be submitted to the affiliate bank's President and will be made available to the internal auditor of Park and to the Chairman of the Board, the Chief Executive Officer and the President of Park as requested.

Employment of Relatives

The relatives of officers below the title of Vice President and all remaining associates of our affiliates can be employed by one of our affiliates. Occasionally, our affiliates may employ both spouses, although they will be prohibited from working in the same department or branch office and may not have a reporting relationship.

The children of senior officers (Vice President and above) and directors may be employed as temporary help during their student years in any affiliate bank or company, including that of the senior officer or director parent, but they are not permitted to work in the same office or department as the senior officer or director parent.

Children of senior officers and directors of Park and each of our affiliates are only permitted to have permanent employment in a separate affiliate bank or company than that of the senior officer or director parent. Additionally, the position held by children of senior officers cannot have a reporting relationship to the senior officer parent at another affiliate bank. Exceptions may be made by the Affiliate President and either Park’s Chairman of the Board or Park’s President.

Giving Advice to Clients

Clients may occasionally request an opinion on legal or tax transactions. The Company cannot practice law or give legal or tax advice. Accordingly, associates must take care in discussing such transactions so as not to give the impression or allow the client to interpret such discussions as providing legal or tax advice.

Privacy Principles

The Company is committed to protecting customer privacy and the confidentiality of all customer information. The Company follows the Banking Industry Privacy Principles for U.S. Financial Institutions, which is attached to and incorporated as part of this Code of Ethics.

Assistance in Meeting the Company's Accounting, Financial Reporting and Disclosure Obligations

In compliance with the rules and regulations of the U.S. Securities and Exchange Commission and NYSE Amex, the Company is required to issue financial statements in conformity with generally accepted accounting principles and then make public disclosures regarding certain aspects of its business. It is expected that all officers, directors, and associates of the Company will keep accurate and complete books, records and accounts that enable the Company to meet its accounting and financial reporting obligations. It is expected that any officer, director, or associate of the Company involved in preparing the Company's disclosures, or any associate or officer asked to provide information relevant to such disclosure, will work to ensure that our public reports and communications are fair, accurate, certifiable, complete, objective, relevant, timely, and understandable. Any associate or officer who, in good faith, believes that the Company's accounting method is inappropriate or not in compliance with generally accepted accounting principles, or has concerns about any questionable accounting or auditing matter or any other accounting, internal accounting control or auditing matter, should report this finding directly to Park's Chief Financial Officer and, if unsatisfied with the response, directly to the Audit Committee. The Audit Committee has established a procedure for such reports that ensures the confidentiality of the reporting person. Associates and officers may call the PRK Improvement Line at 1-800-418-6423 (Ext. 775).

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An additional method of reporting is online via www.securityvoice.com/reports. Note that both telephone and online reporting are confidential, and an outside company is used to transmit the information to appropriate bank management. (In some cases, the PRK Audit Committee Chairman and/or Committee may receive such information directly.) However, any email that originates from a bank or PRK email address (e.g. an associate’s work email) could be tracked later through computer system documentation, so for maximum confidentiality it is suggested that a personal (home) computer is used for the online method of reporting.

In addition, any officer or associate who becomes aware of a material event or fact involving the Company that has not been previously disclosed publicly by the Company should immediately report such material event or fact to Park's Chief Financial Officer or the appropriate affiliate’s Chief Executive Officer.

Pre-Employment Screening

The Company uses a risk-based approach when deciding what level of pre-employment screening is required for new associates and agents of Park or one of its affiliates. These can include, but not be limited to, drug screens, credit reports and employment and personal reference checks.

Post-Employment Activities

At the time of termination or resignation, departing officers, directors, associates, and agents will be required to return all Company property in their possession or control, including but not limited to electronic or written Company documents, files, computer diskettes, reports and records containing any Company or nonpublic information, along with all copies thereof. A departed officer, director, associate, or agent remains obligated by law not to disclose to any third party or use for his/her own purposes any confidential or proprietary information to which the officer, director, associate, or agent had access while employed by the Company. A departed officer, director, associate, or agent is also expected not to disparage the Company or engage in activity that damages the Company’s reputation or business, since such activity may also be unlawful.

Violations of Policies

There are many other policies that are very important to the Company and its operations. Nothing herein shall relieve any officer, director, associate, or agent of the Company from complying with all other applicable company policies.

Violations of any of the Company's board-approved policies may be cause for disciplinary action, including termination of employment.

The Company expects full compliance with this Code of Ethics. In that regard, associates are encouraged to report any violation of the Code of Ethics to their supervisor, Internal Audit Department, Human Resources representative or to their respective Chief Executive Officer. Officers and directors must report any violation of the Code of Ethics to the Audit Committee. Associates, including officers, may also report suspected violations of the Code of Ethics to the PRK Improvement Line, a confidential telephone number and website established for these purposes. The Company will not permit any retaliation against an officer, director, associate, or agent who properly reports (to the appropriate personnel) a matter that he or she believes, in good faith, to be a violation of the Code of Ethics. Reports to the Audit Committee may be made on a confidential basis through the procedure established by the Audit Committee. Any officer, director, associate, or agent who is found to have violated the Code of Ethics may be subject to discipline, including termination of employment.

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The Audit Committee shall investigate any alleged violation of the Code of Ethics by any of the Company's officers, directors, associates, or agents. In the event that the Audit Committee determines that a violation of the Code of Ethics has occurred, the Audit Committee shall be authorized to take any action it deems appropriate. If the violation involves an executive officer or director of Park, the Audit Committee shall notify Park's Board of Directors and the Board shall take such action as it deems appropriate. In the event that Park's Board of Directors recognizes that a violation by an executive officer or a director of Park has occurred but elects not to take any remedial or other action against the offending executive officer or director, Park shall disclose the facts and circumstances of its election to waive the Code of Ethics by posting the same on Park's web site or by any other such means as may be required under applicable laws, rules and regulations or the requirements of the Securities and Exchange Commission or NYSE Amex.

Also, nothing in this Code of Ethics affects the general policy of the Company that employment is at will and can be terminated by the Company or the associate at any time and for any or no reason.

Privacy Principles
1. Recognition of a Customer’s Expectation of Privacy

The Company will recognize and respect the privacy expectations of our customers and explain principles of financial privacy to our customers in an appropriate fashion.

2. Use, Collection and Retention of Customer Information

The Company will collect, retain, and use information about individual customers only where we reasonably believe it would be useful (and allowed by law) to administering our business and to provide products, services and other opportunities to our customers.

3. Maintenance of Accurate Information

The Company will maintain procedures so that our customers’ financial information is accurate, current and complete in accordance with reasonable commercial standards. We will also respond to requests to correct inaccurate information in a timely manner.

4. Limiting Associate Access to Information

The Company will take reasonable steps to limit access by our associates to personally identifiable information to those with a business reason for knowing such information. We will continue to educate our associates so that they will understand the importance of confidentiality and customer privacy. We will also take appropriate disciplinary measures to enforce associate privacy responsibilities.

5. Protection of Information via Established Security Procedures

The Company will maintain appropriate security standards and procedures regarding unauthorized access to customer information.

6. Restrictions on the Disclosure of Account Information

The Company will not reveal specific information about customer accounts or other personally identifiable data to unaffiliated third parties for their independent use, except for the exchange of information with reputable information reporting agencies to maximize the accuracy and security of such information in the performance of bona fide corporate due diligence, unless (1) the information is provided to help complete a customer-initiated transaction; (2) the customer requests it; (3) the disclosure is required or allowed by any applicable law, rule or regulation (i.e. subpoena, investigation of fraudulent activity, etc.); or (4) the customer has been informed about the possibility of such disclosure for marketing or similar purposes through a prior communication and is given the opportunity to decline (i.e. "opt out").

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7. Maintaining Customer Privacy in Business Relationships with Third Parties

If personally identifiable customer information is provided to a third party, the Company will insist that the third party adhere to similar Privacy Principles that provide for keeping such information confidential.

8. Disclosure of Privacy Principles to Customers

The Company will devise methods of providing our customers with an understanding of our privacy policies.

If you have any comments or suggestions regarding the Code of Ethics Policy please contact Laura B. Lewis at (740) 349-3750. If you have comments or suggestions on overall policy administration or governance, please contact David L. Trautman at (740) 349-3927.

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ASSOCIATE'S ACKNOWLEDGEMENT
OF PARK NATIONAL CORPORATION
CODE OF BUSINESS CONDUCT AND ETHICS

The foregoing Code of Business Conduct and Ethics (the "Code of Ethics") will not answer or resolve every question you may have. If you are uncertain about what the right thing to do is, you are encouraged to seek the advice and guidance of your supervisor, your Human Resources representative or your Chief Executive Officer.

YOU MAY ALWAYS DIRECTLY REPORT ANY MATTER WHICH YOU BELIEVE, IN GOOD FAITH, TO BE A VIOLATION OF THE FOREGOING CODE OF ETHICS TO PARK’S CHIEF EXECUTIVE OFFICER OR AUDIT COMMITTEE OF PARK'S BOARD OF DIRECTORS ON A CONFIDENTIAL BASIS. YOU MAY ALSO CONTACT THE PRK IMPROVEMENT LINE AT 1-800-418-6423 (Ext. 775) OR VIA THE WEBSITE AT www.securityvoice.com/reports.

I have read and understand the foregoing Code of Ethics, have been given a copy to retain for my reference, and agree to be bound by its terms. I understand I can be subject to discipline, dismissal from my job and prosecution under the law for violating any of the above provisions of the Code of Ethics.

________________________________________	___________________
Print Name	Last 4 digits of Social Security Number
________________________________________	_____/_____/_____
Signature	Date

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OFFICER'S ACKNOWLEDGEMENT
OF PARK NATIONAL CORPORATION
CODE OF BUSINESS CONDUCT AND ETHICS

The foregoing Code of Business Conduct and Ethics (the "Code of Ethics") will not answer or resolve every question you may have. If you are uncertain about what the right thing to do is, you are encouraged to seek the advice and guidance of your affiliate's Chief Executive Officer.

YOU MAY ALWAYS DIRECTLY REPORT ANY MATTER WHICH YOU BELIEVE, IN GOOD FAITH, TO BE A VIOLATION OF THE FOREGOING CODE OF ETHICS TO PARK'S CHIEF EXECUTIVE OFFICER OR TO THE AUDIT COMMITTEE OF PARK'S BOARD OF DIRECTORS ON A CONFIDENTIAL BASIS. YOU MAY ALSO CONTACT THE PRK IMPROVEMENT LINE AT 1-800-418-6423 (Ext. 775) OR VIA THE WEBSITE AT www.securityvoice.com/reports.

.

I have read and understand the foregoing Code of Ethics, have been given a copy to retain for my reference, and agree to be bound by its terms. I understand I may be subject to discipline, dismissal from my job and prosecution under the law for violating any of the above provisions of the Code of Ethics.

________________________________________	___________________
Print Name	Last 4 digits of Social Security Number
________________________________________	_____/_____/_____
Signature	Date

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DIRECTOR'S ACKNOWLEDGEMENT
OF PARK NATIONAL CORPORATION
CODE OF BUSINESS CONDUCT AND ETHICS

The foregoing Code of Business Conduct and Ethics (the "Code of Ethics") will not answer or resolve every question you may have. If you are uncertain about what the right thing to do is, you are encouraged to seek the advice and guidance of outside counsel to Park National Corporation ("Park") or other counsel designated by the Audit Committee of the Board of Directors of Park.

YOU MAY ALWAYS DIRECTLY REPORT ANY MATTER WHICH YOU BELIEVE, IN GOOD FAITH, TO BE A VIOLATION OF THE FOREGOING CODE OF ETHICS TO THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS OR THE FULL BOARD.

I have read and understand the foregoing Code of Ethics, have been given a copy to retain for my reference, and agree to be bound by its terms. I understand I can be subject to discipline, removal for cause from the Board of Directors and prosecution under the law for violating any of the above provisions of the Code of Ethics.

________________________________________	___________________
Print Name	Last 4 digits of Social Security Number
________________________________________	_____/_____/_____
Signature	Date

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EX-21

Exhibit 21

SUBSIDIARIES OF PARK NATIONAL CORPORATION

Name of Subsidiary	Jurisdiction of Incorporation or Formation
The Park National Bank (“PNB”)	United States (federally-chartered national banking association)
·Park Investments, Inc. (NOTE: is a wholly-owned subsidiary of PNB)	Delaware
·Scope Leasing, Inc. (NOTE: is a wholly-owned subsidiary of PNB) [Also does business under “Scope Aircraft Finance”]	Ohio
·River Park Properties, LLC (NOTE: is a wholly-owned subsidiary of PNB)	Ohio
·Park Title Agency, LLC. (NOTE: PNB holds 49% of ownership interest and other member, which is not a subsidiary of Park National Corporation, holds 51% of ownership interest)	Ohio
·The following are the divisions of PNB:
*Fairfield National Bank (also sometimes known as “Fairfield National Division”)	n/a
*The Park National Bank of Southwest Ohio & Northern Kentucky	n/a
*Century National Bank	n/a
*Second National Bank	n/a
*Richland Bank (also sometimes known as “The Richland Trust Company”)	n/a
*United Bank, N.A.	n/a
*First-Knox National Bank (also sometimes known as “The First-Knox National Bank of Mount Vernon”)	n/a
*Farmers Bank (also sometimes known as “Farmers and Savings”)	n/a
*Security National Bank (also sometimes known as “The Security National Bank and Trust Co.” or “Security National Bank & Trust Company”)	n/a
*Unity National Bank	n/a

-1-

Name of Subsidiary	Jurisdiction of Incorporation or Formation
Guardian Financial Services Company [Also does business under “Guardian Finance Company”]	Ohio
Park Capital Investments, Inc. (“Park Capital”)	Delaware
·Park National Capital LLC (NOTE: members are Park Capital and PNB)	Delaware
·Security National Capital LLC (NOTE: members are Park Capital and PNB)	Delaware
·First-Knox National Capital LLC (NOTE: members are Park Capital and PNB)	Delaware
·Century National Capital LLC (NOTE: members are Park Capital and PNB)	Delaware
SE Property Holdings, LLC	Ohio
·Vision-Park Properties, L.L.C. (NOTE: SE Property Holdings, LLC is sole member)	Florida
Vision Bancshares Trust I (NOTE: Park holds all of the common securities as successor Depositor; floating rate preferred securities are held by institutional investors)	Delaware

-2-

EX-23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements of Park National Corporation:

Form S-8 No.  33-92060

Form S-8 No.  333-52653

Form S-8 No.  333-59360

Form S-8 No.  333-59378

Form S-8 No.  333-91178

Form S-8 No.  333-115136

Form S-8 No.  333-126875

Form S-3 No.  333-156887

Form S-3 No.  333-159454

Form S-8 No.  333-168334

of our report dated February 29, 2012, with respect to the consolidated financial statements of Park National Corporation and the effectiveness of internal control over financial reporting, which report is incorporated by reference from Park National Corporation’s 2011 Annual Report to Shareholders in this Annual Report on Form 10-K of Park National Corporation for the year ended December 31, 2011.

/s/ Crowe Horwath LLP

Crowe Horwath LLP

Columbus, Ohio

February 29, 2012

EX-24

Exhibit 24

POWER OF ATTORNEY

The undersigned officer and director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 29 day of February, 2012.

/s/ C. Danial DeLawder

C. Daniel DeLawder

POWER OF ATTORNEY

The undersigned officer and director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 23 day of February, 2012.

/s/ David L. Trautman

David L. Trautman

POWER OF ATTORNEY

The undersigned officer of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder and David L. Trautman, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 28 day of February, 2012.

/s/ John W. Kozak

John W. Kozak

POWER OF ATTORNEY

The undersigned officer of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 28 day of February, 2012.

/s/ Brady T. Burt

Brady T. Burt

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in her name and on her behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as she could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25 day of February, 2012.

/s/ Maureen Buchwald

Maureen Buchwald

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 23 day of February, 2012.

/s/ James J. Cullers

James J. Cullers

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 25 day of February, 2012.

/s/ Harry O. Egger

Harry O. Egger

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 24 day of February, 2012.

/s/ F. William Englefield IV

F. William Englefield IV

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 23 day of February, 2012.

/w/ Stephen J. Kambeitz

Stephen J. Kambeitz

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 23 day of February, 2012.

/s/ William T. McConnell

William T. McConnell

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 24 day of February, 2012.

/s/ Timothy S. McLain

Timothy S. McLain

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 23 day of February, 2012.

/s/ John J. O’Neill

John J. O’Neill

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 27 day of February, 2012.

/s/ William A. Phillips

William A. Phillips

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 23 day of February, 2012.

/s/ Rick R. Taylor

Rick R. Taylor

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in her name and on her behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as she could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 23 day of February, 2012.

/s/ Sarah Reese Wallace

Sarah Reese Wallace

POWER OF ATTORNEY

The undersigned director of Park National Corporation, an Ohio corporation (the “Corporation”), which anticipates filing with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Corporation on Form 10-K for the fiscal year ended December 31, 2011, hereby constitutes and appoints C. Daniel DeLawder, David L. Trautman and John W. Kozak, and each of them, with full power of substitution and resubstitution, as attorney-in-fact and agent to execute, deliver and file, in his name and on his behalf, in any and all capacities, such Annual Report on Form 10-K and any and all amendments thereto, and any and all applications or documents to be filed with the Securities and Exchange Commission pertaining to such Annual Report on Form 10-K, with full power and authority to do and perform any and all acts and things whatsoever required and necessary to be done in the premises, as fully to all intents and purposes as he could do if personally present. The undersigned hereby ratifies and confirms all that each said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney this 23 day of February, 2012.

/s/ Leon Zazworsky

Leon Zazworsky

EX-31.1

Exhibit 31.1

Rule 13a-14(a)/15d-14(a) Certifications

[Principal Executive Officer]

CERTIFICATIONS

I, C. Daniel DeLawder, certify that:

1.	I have reviewed this Annual Report on Form 10-K for the fiscal year ended December 31, 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:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  February 29, 2012	By:	/s/ C. Daniel DeLawder
	Printed Name: C. Daniel DeLawder
	Title: Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

Rule 13a-14(a)/15d-14(a) Certifications

[Principal Financial Officer]

CERTIFICATIONS

I, John W. Kozak, certify that:

1.	I have reviewed this Annual Report on Form 10-K for the fiscal year ended December 31, 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:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  February 29, 2012	By:	/s/ John W. Kozak
	Printed Name: John W. Kozak
	Title: Chief Financial Officer

EX-32.1

Exhibit 32

CERTIFICATIONS PURSUANT TO

SECTION 1350 OF CHAPTER 63 OF

TITLE 18 OF THE UNITED STATES CODE*

In connection with the Annual Report of Park National Corporation (the “Corporation”) on Form 10-K for the fiscal year ended December 31, 2011, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned C. Daniel DeLawder, Chairman of the Board and Chief Executive Officer of the Corporation, and John W. Kozak, Chief Financial Officer of the Corporation, certify, pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) 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 Corporation and its subsidiaries.

/s/ C. Daniel DeLawder	/s/ John W. Kozak
C. Daniel DeLawder Chairman of the Board and Chief Executive Officer (Principal Executive Officer)	John W. Kozak Chief Financial Officer (Principal Financial Officer)
Dated:  February 29, 2012	Dated:  February 29, 2012

* These certifications are being furnished as required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 1350 of Chapter 63 of Title 18 of the United States Code, and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. These certifications shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Corporation specifically incorporates these certifications by reference.

EX-99.1

 Exhibit 99.1

PARK NATIONAL CORPORATION

UST #174

CERTIFICATION PURSUANT TO SECTION 111(b)(4) OF THE

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008 AND 31 C.F.R. §30.15

[PRINCIPAL EXECUTIVE OFFICER]

“I, C. Daniel DeLawder, the Chairman of the Board and Chief Executive Officer of Park National Corporation (“Park”), certify, based on my knowledge, that:

(i) The compensation committee of Park has discussed, reviewed, and evaluated with senior risk officers, as defined in the regulations and guidance established under Section 111 of the Emergency Economic Stabilization Act of 2008 (as amended, “EESA”), two times during the most recently completed fiscal year that was a TARP period, as defined in the regulations and guidance established under Section 111 of EESA (the “Applicable Period”), the senior executive officer (“SEO”) compensation plans and employee compensation plans, each as defined in the regulations and guidance established under Section 111 of EESA, and the risks these plans pose to Park;

(ii) The compensation committee of Park has identified and limited during the Applicable Period any features of the SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Park and has identified any features of the employee compensation plans that pose risks to Park and has limited those features to ensure that Park is not unnecessarily exposed to risks;

(iii) The compensation committee of Park has reviewed, two times during the Applicable Period, the terms of each employee compensation plan and identified any features of the plan that could encourage the manipulation of reported earnings of Park to enhance the compensation of an employee, and has limited any such features;

(iv) The compensation committee of Park will certify to the reviews of the SEO compensation plans and employee compensation plans required under paragraphs (i) and (iii) above;

(v) The compensation committee of Park will provide a narrative description of how it limited during the Applicable Period the features in:

(A) SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Park;

(B) Employee compensation plans that unnecessarily expose Park to risks; and

(C) Employee compensation plans that could encourage the manipulation of reported earnings of Park to enhance the compensation of an employee;

(vi) Park has required that bonus payments, as defined in the regulations and guidance established under Section 111 of EESA, to SEOs or any of the next twenty most highly compensated employees, as defined in the regulations and guidance established under Section 111 of EESA, be subject to a recovery or “clawback” provision during the Applicable Period if the bonus payments were based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria;

-1-

(vii) Park has prohibited any golden parachute payment, as defined in the regulations and guidance established under Section 111 of EESA, to an SEO or any of the next five most highly compensated employees during the Applicable Period;

(viii) Park has limited bonus payments to its five most highly compensated employees in accordance with Section 111 of EESA and the regulations and guidance established thereunder during the Applicable Period.

(ix) Park and its employees have complied with the excessive or luxury expenditures policy, as defined in the regulations and guidance established under Section 111 of EESA, during the Applicable Period; and any expenses that, pursuant to the policy, required approval of the board of directors, a committee of the board of directors, an SEO, or an executive officer with a similar level of responsibility were properly approved;

(x) Park will permit a non-binding shareholder resolution in compliance with any applicable Federal securities rules and regulations on the disclosures provided under the Federal securities laws related to SEO compensation paid or accrued during the Applicable Period;

(xi) Park will disclose the amount, nature, and justification for the offering, during any part of the Applicable Period, of any perquisites, as defined in the regulations and guidance established under Section 111 of EESA, whose total value exceeds $25,000 for any employee who is subject to the bonus payment limitations identified in paragraph (viii);

(xii) Park will disclose whether Park, the board of directors of Park or the compensation committee of Park has engaged during the Applicable Period a compensation consultant; and the services the compensation consultant or any affiliate of the compensation consultant provided during this period;

(xiii) Park has prohibited the payment of any gross-ups, as defined in the regulations and guidance established under Section 111 of EESA, to the SEOs and the next twenty most highly compensated employees during the Applicable Period;

(xiv) Park has substantially complied with all other requirements related to employee compensation that are provided in the agreement between Park and Treasury, including any amendments;

(xv) Park has submitted to Treasury a complete and accurate list of the SEOs and the twenty next most highly compensated employees for the current fiscal year, with the non-SEOs ranked in descending order of level of annual compensation, and with the name, title, and employer of each SEO and most highly compensated employee identified; and

2

(xvi) I understand that a knowing and willful false or fraudulent statement made in connection with this certification may be punished by fine, imprisonment, or both. (See, for example 18 U.S.C. 1001).”

	/s/ C. Daniel DeLawder
Date: February 29, 2012	C. Daniel DeLawder
	Chairman of the Board and
	Chief Executive Officer of
	Park National Corporation

3

EX-99.2

Exhibit 99.2

PARK NATIONAL CORPORATION

UST #174

CERTIFICATION PURSUANT TO SECTION 111(b)(4) OF THE

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008 AND 31 C.F.R. §30.15

[PRINCIPAL FINANCIAL OFFICER]

“I, John W. Kozak, the Chief Financial Officer of Park National Corporation (“Park”), certify, based on my knowledge, that:

(i) The compensation committee of Park has discussed, reviewed, and evaluated with senior risk officers, as defined in the regulations and guidance established under Section 111 of the Emergency Economic Stabilization Act of 2008 (as amended, “EESA”), two times during the most recently completed fiscal year that was a TARP period, as defined in the regulations and guidance established under Section 111 of EESA (the “Applicable Period”), the senior executive officer (“SEO”) compensation plans and employee compensation plans, each as defined in the regulations and guidance established under Section 111 of EESA, and the risks these plans pose to Park;

(ii) The compensation committee of Park has identified and limited during the Applicable Period any features of the SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Park and has identified any features of the employee compensation plans that pose risks to Park and has limited those features to ensure that Park is not unnecessarily exposed to risks;

(iii) The compensation committee of Park has reviewed, two times during the Applicable Period, the terms of each employee compensation plan and identified any features of the plan that could encourage the manipulation of reported earnings of Park to enhance the compensation of an employee, and has limited any such features;

(iv) The compensation committee of Park will certify to the reviews of the SEO compensation plans and employee compensation plans required under paragraphs (i) and (iii) above;

(v) The compensation committee of Park will provide a narrative description of how it limited during the Applicable Period the features in:

(A) SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Park;

(B) Employee compensation plans that unnecessarily expose Park to risks; and

(C) Employee compensation plans that could encourage the manipulation of reported earnings of Park to enhance the compensation of an employee;

(vi) Park has required that bonus payments, as defined in the regulations and guidance established under Section 111 of EESA, to SEOs or any of the next twenty most highly compensated employees, as defined in the regulations and guidance established under Section 111 of EESA, be subject to a recovery or “clawback” provision during the Applicable Period if the bonus payments were based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria;

1

(vii) Park has prohibited any golden parachute payment, as defined in the regulations and guidance established under Section 111 of EESA, to an SEO or any of the next five most highly compensated employees during the Applicable Period;

(viii) Park has limited bonus payments to its five most highly compensated employees in accordance with Section 111 of EESA and the regulations and guidance established thereunder during the Applicable Period.

(ix) Park and its employees have complied with the excessive or luxury expenditures policy, as defined in the regulations and guidance established under Section 111 of EESA, during the Applicable Period; and any expenses that, pursuant to the policy, required approval of the board of directors, a committee of the board of directors, an SEO, or an executive officer with a similar level of responsibility were properly approved;

(x) Park will permit a non-binding shareholder resolution in compliance with any applicable Federal securities rules and regulations on the disclosures provided under the Federal securities laws related to SEO compensation paid or accrued during the Applicable Period;

(xi) Park will disclose the amount, nature, and justification for the offering, during any part of the Applicable Period, of any perquisites, as defined in the regulations and guidance established under Section 111 of EESA, whose total value exceeds $25,000 for any employee who is subject to the bonus payment limitations identified in paragraph (viii);

(xii) Park will disclose whether Park, the board of directors of Park or the compensation committee of Park has engaged during the Applicable Period a compensation consultant; and the services the compensation consultant or any affiliate of the compensation consultant provided during this period;

(xiii) Park has prohibited the payment of any gross-ups, as defined in the regulations and guidance established under Section 111 of EESA, to the SEOs and the next twenty most highly compensated employees during the Applicable Period;

(xiv) Park has substantially complied with all other requirements related to employee compensation that are provided in the agreement between Park and Treasury, including any amendments;

(xv) Park has submitted to Treasury a complete and accurate list of the SEOs and the twenty next most highly compensated employees for the current fiscal year, with the non-SEOs ranked in descending order of level of annual compensation, and with the name, title, and employer of each SEO and most highly compensated employee identified; and

2

(xvi) I understand that a knowing and willful false or fraudulent statement made in connection with this certification may be punished by fine, imprisonment, or both. (See, for example 18 U.S.C. 1001).”

	/s/ John W. Kozak
Date: February 29, 2012	John W. Kozak
	Chief Financial Officer of
	Park National Corporation

3

XML

Loans (Tables)

12 Months Ended

Dec. 31, 2011

Loans [Abstract]

Composition Of The Loan Portfolio By Class Of Loan

	December 31, 2011						December 31, 2010
			Accrued						Accrued
	Loan		interest		Recorded		Loan		interest		Recorded
(In thousands)	balance		receivable		investment		balance		receivable		investment
Commercial, financial and agricultural *	$	743,797	$	3,121	$	746,918	$	737,902	$	2,886	$	740,788
Commercial real estate *		1,108,574		4,235		1,112,809		1,226,616		4,804		1,231,420
Construction real estate:
Vision commercial land and development *		31,603		31		31,634		171,334		282		171,616
Remaining commercial		156,053		394		156,447		195,693		622		196,315
Mortgage		20,039		64		20,103		26,326		95		26,421
Installment		9,851		61		9,912		13,127		54		13,181
Residential real estate
Commercial		395,824		1,105		396,929		464,903		1,403		466,306
Mortgage		953,758		1,522		955,280		906,648		2,789		909,437
HELOC		227,682		942		228,624		260,463		1,014		261,477
Installment		51,354		236		51,590		60,195		255		60,450
Consumer		616,505		2,930		619,435		666,871		3,245		670,116
Leases		2,059		43		2,102		2,607		56		2,663
Total loans	$	4,317,099	$	14,684	$	4,331,783	$	4,732,685	$	17,505	$	4,750,190

* Included within commercial, financial and agricultural loans, commercial real estate loans, and Vision commercial land and development loans are an immaterial amount of consumer loans that are not broken out by class.   

Recorded Investment In Nonaccrual, Restructured And Loans Past Due 90 Days Or More And Accruing

	December 31, 2011
(In thousands)	Nonaccrual loans		Accruing restructured loans		Loans past due 90 days or more and accruing		Total nonperforming loans
Commercial, financial and agricultural	$	37,797	$	2,848	$	-	$	40,645
Commercial real estate		43,704		8,274		-		51,978
Construction real estate:
Vision commercial land and development		25,761		-		-		25,761
Remaining commercial		14,021		11,891		-		25,912
Mortgage		66		-		-		66
Installment		30		-		-		30
Residential real estate
Commercial		43,461		815		-		44,276
Mortgage		25,201		4,757		2,610		32,568
HELOC		1,412		-		-		1,412
Installment		1,777		98		58		1,933
Consumer		1,876		-		893		2,769
Leases		-		-		-		-
Total loans	$	195,106	$	28,683	$	3,561	$	227,350

	December 31, 2010
			Accruing		Loans past due 90		Total
			restructured		days or more and		nonperforming
(In thousands)	Nonaccrual loans		loans		accruing		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

Loans Individually And Collectively Evaluated For Impairment

	December 31, 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	$	40,645	$	40,621	$	24	$	19,276	$	19,205	$	71
Commercial real estate		51,978		51,978		-		57,941		57,930		11
Construction real estate:
Vision commercial land and development		25,761		24,328		1,433		87,424		86,491		933
Remaining commercial		25,912		25,912		-		27,080		27,080		-
Mortgage		66		-		66		354		-		354
Installment		30		-		30		417		-		417
Residential real estate:
Commercial		44,276		44,276		-		60,227		60,227		-
Mortgage		29,958		-		29,958		32,479		-		32,479
HELOC		1,412		-		1,412		964		-		964
Installment		1,875		-		1,875		1,195		-		1,195
Consumer		1,876		20		1,856		1,911		-		1,911
Leases		-		-		-		-		-		-
Total loans	$	223,789	$	187,135	$	36,654	$	289,268	$	250,933	$	38,335

Loans Individually Evaluated For Impairment By Class Of Loans

	December 31, 2011						December 31, 2010
(In thousands)	Unpaid principal balance		Recorded investment		Allowance for loan losses allocated		Unpaid principal balance		Recorded investment		Allowance for loan losses allocated
With no related allowance recorded
Commercial, financial and agricultural	$	23,164	$	18,098	$	-	$	9,347	$	8,891	$	-
Commercial real estate		58,242		41,506		-		21,526		17,170		-
Construction real estate:
Vision commercial land and development		54,032		17,786		-		11,206		7,847		-
Remaining commercial		33,319		18,372		-		12,305		11,743		-
Residential real estate:
Commercial		49,341		38,686		-		46,344		43,031		-
Consumer		-		-		-		-		-		-
With an allowance recorded
Commercial, financial and agricultural		23,719		22,523		5,819		11,801		10,314		3,028
Commercial real estate		12,183		10,472		4,431		44,789		40,760		12,652
Construction real estate:
Vision commercial land and development		20,775		6,542		1,540		103,937		78,644		39,887
Remaining commercial		9,711		7,540		1,874		23,563		15,337		5,425
Residential real estate:
Commercial		6,402		5,590		2,271		19,716		17,196		5,912
Consumer		20		20		-		-		-		-
Total	$	290,908	$	187,135	$	15,935	$	304,534	$	250,933	$	66,904

Average Recorded Investment And Interest Income Recognized On Loans Individually Evaluated For Impairment

			Year ended December 31, 2011
(In thousands)	Recorded investment as of December 31, 2011		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	40,621	$	23,518	$	209
Commercial real estate		51,978		49,927		829
Construction real estate:
Vision commercial land and development		24,328		58,792		-
Remaining commercial		25,912		29,152		339
Residential real estate:
Commercial		44,276		52,640		214
Consumer		20		16		1
Total	$	187,135	$	214,045	$	1,592

Aging Of Recorded Investment In Past Due Loans

	December 31, 2011
			Past due
			nonaccrual
			loans and loans
	Accruing loans		past due 90						Total
	past due 30-89		days or more						recorded
(In thousands)	days		and accruing		Total past due		Total current		investment
Commercial, financial and agricultural	$	3,106	$	11,308	$	14,414	$	732,504	$	746,918
Commercial real estate		2,632		21,798		24,430		1,088,379		1,112,809
Construction real estate:
Vision commercial land and development		-		19,235		19,235		12,399		31,634
Remaining commercial		99		7,839		7,938		148,509		156,447
Mortgage		76		-		76		20,027		20,103
Installment		421		8		429		9,483		9,912
Residential real estate
Commercial		1,545		10,097		11,642		385,287		396,929
Mortgage		15,879		20,614		36,493		918,787		955,280
HELOC		1,015		436		1,451		227,173		228,624
Installment		1,549		1,136		2,685		48,905		51,590
Consumer		11,195		2,192		13,387		606,048		619,435
Leases		-		-		-		2,102		2,102
Total loans	$	37,517	$	94,663	$	132,180	$	4,199,603	$	4,331,783

	December 31, 2010
			Past due
			nonaccrual
			loans and loans
	Accruing loans		past due 90						Total
	past due 30-89		days or more						recorded
(In thousands)	days		and accruing		Total past due		Total current		investment
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

Recorded Investment By Loan Grade

	December 31, 2011
(In thousands)	5 Rated		6 Rated		Nonaccrual		Pass Rated		Recorded Investment
Commercial , financial and agricultural:	$	11,785	$	7,628	$	40,645	$	686,860	$	746,918
Commercial real estate:		37,445		10,460		51,978		1,012,926		1,112,809
Construction real estate:
Vision commercial land and development		3,102		-		25,761		2,771		31,634
Remaining commercial		6,982		8,311		25,912		115,242		156,447
Residential real estate:
Commercial		17,120		3,785		44,276		331,748		396,929
Leases		-		-		-		2,102		2,102
Total Commercial Loans	$	76,434	$	30,184	$	188,572	$	2,151,649	$	2,446,839

	December 31, 2010
(In thousands)	5 Rated		6 Rated		Nonaccrual		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

TDR Number Of Contracts Modified And Recorded Investment

	12 months ended December 31, 2011
(In thousands)	Number of Contracts		Recorded Investment
Commercial, financial and agricultural		56	$	24,100
Commercial real estate		23		7,163
Construction real estate:
Vision commercial land and development		12		4,268
Remaining commercial		24		18,602
Mortgage		1		66
Installment		-		-
Residential real estate:
Commercial		30		29,595
Mortgage		37		5,925
HELOC		2		56
Installment		7		221
Consumer		1		18
Leases		-		-
Total loans		193	$	90,014

Recorded Investment In Financing Receivable Modified As TDR Within 12 Months

	12 months ended December 31, 2011
(In thousands)	Number of Contracts		Recorded Investment
Commercial, financial and agricultural		19	$	3,878
Commercial real estate		5		2,353
Construction real estate:
Vision commercial land and development		5		3,406
Remaining commercial		4		1,277
Mortgage		1		66
Installment		----		---
Residential real estate:
Commercial		10		20,195
Mortgage		7		1,193
HELOC		1		50
Installment		2		44
Consumer		----		---
Leases		----		---
Total loans		54	$	32,462

XML

Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations Of Credit Risk (Amounts Of Off- Balance Sheet Financial Instruments With Credit Risk) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations Of Credit Risk [Abstract]
Loan commitments	$ 809,140	$ 716,598
Standby letters of credit	$ 18,772	$ 24,462

XML

Segment Information (Tables)

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Schedule Of Operating Results By Segment

Operating results for the year ended December 31, 2011 (In thousands)
	PNB		VB			All Other			Total
Net interest income	$	236,282	$	27,078		$	9,874		$	273,234
Provision for loan losses		30,220		31,052			2,000			63,272
Other income (loss)		90,982		6,617			(2,689	)		94,910
Other expense		146,235		31,379			10,703			188,317
Income (loss) before taxes		150,809		(28,736	)		(5,518	)		116,555
Income taxes (benefit)		43,958		(6,210	)		(3,333	)		34,415
Net income (loss)	$	106,851	$	(22,526	)	$	(2,185	)	$	82,140
Balances at December 31, 2011
Assets	$	6,281,747	$	650,935		$	39,563		$	6,972,245
Assets held for sale (1)		--		382,462			--			382,462
Loans		4,172,424		123,883			20,792			4,317,099
Deposits		4,611,646		32			(146,564	)		4,465,114
Liabilities held for sale (2)		--		536,186			--			536,186

Operating results for the year ended December 31, 2010 (In thousands)
	PNB		VB			All Other			Total
Net interest income	$	237,281	$	27,867		$	8,896		$	274,044
Provision for loan losses		23,474		61,407			2,199			87,080
Other income (loss)		80,512		(6,024	)		392			74,880
Other expense		144,051		31,623			11,433			187,107
Income (loss) before taxes		150,268		(71,187	)		(4,344	)		74,737
Income taxes (benefit)		47,320		(25,773	)		(4,911	)		16,636
Net income (loss)	$	102,948	$	(45,414	)	$	567		$	58,101
Balances at December 31, 2010
Assets	$	6,495,558	$	791,945		$	(5,242	)	$	7,282,261
Loans		4,074,775		640,580			17,330			4,732,685
Deposits		4,622,693		633,432			(160,705	)		5,095,420

Operating results for the year ended December 31, 2009 (In thousands)
	PNB		VB			All Other			Total
Net interest income	$	236,107	$	25,634		$	11,750		$	273,491
Provision for loan losses		22,339		44,430			2,052			68,821
Other income (loss)		82,770		(2,047	)		467			81,190
Other expense		148,048		28,091			12,586			188,725
Income (loss) before taxes		148,490		(48,934	)		(2,421	)		97,135
Income taxes (benefit)		47,032		(18,824	)		(5,265	)		22,943
Net income (loss)	$	101,458	$	(30,110	)	$	2,844		$	74,192
Balances at December 31, 2009
Assets	$	6,182,257	$	897,981		$	(39,909	)	$	7,040,329
Loans		3,950,599		677,018			12,815			4,640,432
Deposits		4,670,113		688,900			(170,961	)		5,188,052

(1) The assets held for sale represent the loans and other assets at Vision Bank that will be sold in the first quarter of 2012.

(2) The liabilities held for sale represent the deposits and other liabilities at Vision Bank that will be sold in the first quarter of 2012.

Reconciliation Of Financial Information

	2011
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	263,360	$	7,562	$	170,052	$	37,748		$	6,932,682		$	4,611,678
Elimination of intersegment items		-		-		-		-			(57,286	)		(146,564	)
Parent Co. & GFSC totals - not eliminated		9,874		21		10,682		(3,333	)		96,849			-
Totals	$	273,234	$	7,583	$	180,734	$	34,415		$	6,972,245		$	4,465,114

	2010
	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	265,148	$	7,109	$	168,565	$	21,547		$	7,287,503		$	5,256,125
Elimination of intersegment items		-		-		-		-			(77,876	)		(160,705	)
Parent Co. & GFSC totals - not eliminated		8,896		17		11,416		(4,911	)		72,634			-
Totals	$	274,044	$	7,126	$	179,981	$	16,636		$	7,282,261		$	5,095,420

	2009
	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	261,741	$	7,451	$	168,688	$	28,208		$	7,080,238		$	5,359,013
Elimination of intersegment items		-		-		-		-			(114,214	)		(170,961	)
Parent Co. & GFSC totals - not eliminated		11,750		22		12,564		(5,265	)		74,305			-
Totals	$	273,491	$	7,473	$	181,252	$	22,943		$	7,040,329		$	5,188,052

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Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2011

Other Comprehensive Income (Loss) [Abstract]

Other Comprehensive Income (Loss) Components And Related Taxes

Year ended December 31, (In thousands)	Before-Tax Amount			Tax Effect			Net-of-Tax Amount
2011:
Unrealized gains on available-for-sale securities	$	25,063		$	8,772		$	16,291
Reclassification adjustment for gains realized in net income		(28,829	)		(10,090	)		(18,739	)
Unrealized net holding gain on cash flow hedge		788			276			512
Changes in pension plan assets and benefit obligations recognized in other comprehensive income		(7,734	)		(2,707	)		(5,027	)
Other comprehensive loss	$	(10,712	)	$	(3,749	)	$	(6,963	)
2010:
Unrealized losses on available-for-sale securities	$	(11,218	)	$	(3,926	)	$	(7,292	)
Reclassification adjustment for gains realized in net income		(11,864	)		(4,152	)		(7,712	)
Unrealized net holding loss on cash flow hedge		(151	)		(53	)		(98	)
Changes in pension plan assets and benefit obligations recognized in other comprehensive income		(3,734	)		(1,307	)		(2,427	)
Other comprehensive loss	$	(26,967	)	$	(9,438	)	$	(17,529	)
2009:
Unrealized gains on available-for-sale securities	$	5,012		$	1,754		$	3,258
Reclassification adjustment for gains realized in net income		(7,340	)		(2,569	)		(4,771	)
Unrealized net holding gain on cash flow hedge		454			159			295
Changes in pension plan assets and benefit obligations recognized in other comprehensive income		9,666			3,383			6,283
Other comprehensive income	$	7,792		$	2,727		$	5,065

Component Of Accumulated Other Comprehensive Income (Loss)

(In thousands)	2011			2010
Pension benefit adjustments	$	(20,954	)	$	(15,927	)
Unrealized net holding loss on cash flow hedge		(550	)		(1,062	)
Unrealized net holding gains on AFS securities		12,673			15,121
Total accumulated other comprehensive income (loss)	$	(8,831	)	$	(1,868	)

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Capital Ratios (Capital Ratios For Park And Each Subsidiary) (Details)	Dec. 31, 2011		Dec. 31, 2010
Park National Bank [Member]
Tier 1 Risk-Based Capital	9.52%		9.43%
Total Risk-Based	11.46%		11.38%
Leverage	6.58%		6.68%
Vision Bank [Member]
Tier 1 Risk-Based Capital	23.42%		11.75%
Total Risk-Based	24.72%	[1]	13.12%	[1],[2]
Leverage	15.89%	[1]	9.12%	[1],[2]
Park [Member]
Tier 1 Risk-Based Capital	14.15%		13.24%
Total Risk-Based	16.65%		15.71%
Leverage	9.81%		9.54%

[1] Park management had agreed to maintain Vision Bank's total risk-based capital at 16.00% and the leverage ratio at 12.00%.

[2] As a result of the financial statement restatement for the year ended December 31, 2010, Vision Bank's December 31, 2010 total risk-based capital ratio declined from 19.55% to 13.12% and its leverage ratio declined from 14.05% to 9.12%.

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Loans (Recorded Investment In Nonaccrual, Restructured And Loans Past Due 90 Days Or More And Accruing) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	$ 195,106	$ 289,268
Accruing restructured loans	28,683
Loans past due 90 days or more and accruing	3,561	3,693
Total nonperforming loans	227,350	292,961
Commercial, Financial And Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	37,797	19,276
Accruing restructured loans	2,848
Loans past due 90 days or more and accruing
Total nonperforming loans	40,645	19,276
Construction Real Estate - Vision Commercial Land And Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	25,761	87,424
Accruing restructured loans
Loans past due 90 days or more and accruing
Total nonperforming loans	25,761	87,424
Construction Real Estate - Remaining Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	14,021	27,080
Accruing restructured loans	11,891
Loans past due 90 days or more and accruing
Total nonperforming loans	25,912	27,080
Construction Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	66	354
Accruing restructured loans
Loans past due 90 days or more and accruing
Total nonperforming loans	66	354
Construction Real Estate - Installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	30	417
Accruing restructured loans
Loans past due 90 days or more and accruing		13
Total nonperforming loans	30	430
Residential Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	43,461	60,227
Accruing restructured loans	815
Loans past due 90 days or more and accruing
Total nonperforming loans	44,276	60,227
Residential Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	25,201	32,479
Accruing restructured loans	4,757
Loans past due 90 days or more and accruing	2,610	2,175
Total nonperforming loans	32,568	34,654
Residential Real Estate - HELOC [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	1,412	964
Accruing restructured loans
Loans past due 90 days or more and accruing		149
Total nonperforming loans	1,412	1,113
Residential Real Estate - Installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	1,777	1,195
Accruing restructured loans	98
Loans past due 90 days or more and accruing	58	277
Total nonperforming loans	1,933	1,472
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	43,704	57,941
Accruing restructured loans	8,274
Loans past due 90 days or more and accruing		20
Total nonperforming loans	51,978	57,961
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans	1,876	1,911
Accruing restructured loans
Loans past due 90 days or more and accruing	893	1,059
Total nonperforming loans	2,769	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

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Segment Information (Reconciliation Of Financial Information) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Reconciliation Of Segment Information [Line Items]
Net Interest Income	$ 273,234	$ 274,044	$ 273,491
Depreciation Expense	7,583	7,126	7,473
Other Expense	180,734	179,981	181,252
Income taxes	34,415	16,636	22,943
Assets	6,972,245	7,282,261	7,040,329
Deposits	4,465,114	5,095,420	5,188,052
Totals For Reportable Segments [Member]
Reconciliation Of Segment Information [Line Items]
Net Interest Income	263,360	265,148	261,741
Depreciation Expense	7,562	7,109	7,451
Other Expense	170,052	168,565	168,688
Income taxes	37,748	21,547	28,208
Assets	6,932,682	7,287,503	7,080,238
Deposits	4,611,678	5,256,125	5,359,013
Elimination Of Intersegment Items [Member]
Reconciliation Of Segment Information [Line Items]
Assets	(57,286)	(77,876)	(114,214)
Deposits	(146,564)	(160,705)	(170,961)
Parent Co. & GFSC Totals-Not Eliminated [Member]
Reconciliation Of Segment Information [Line Items]
Net Interest Income	9,874	8,896	11,750
Depreciation Expense	21	17	22
Other Expense	10,682	11,416	12,564
Income taxes	(3,333)	(4,911)	(5,265)
Assets	$ 96,849	$ 72,634	$ 74,305

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Parent Company Statements (Tables)

12 Months Ended

Dec. 31, 2011

Parent Company Statements [Abstract]

Parent Company Schedule Balance Sheets

Balance Sheets
	December 31,
(In thousands)	2011		2010
Assets:
Cash	$	140,607	$	160,011
Investment in subsidiaries		602,270		601,201
Debentures receivable from subsidiary banks		5,000		5,000
Other investments		2,280		1,451
Other assets		90,438		69,845
Total assets	$	840,595	$	837,508
Liabilities:
Dividends payable	$	-	$	-
Subordinated notes		50,250		50,250
Other liabilities		47,981		57,550
Total liabilities		98,231		107,800
Total stockholders' equity		742,364		729,708
Total liabilities and stockholders' equity	$	840,595	$	837,508

Parent Company Schedule Statements Of Income

Statements of Income
	For the Years ended December 31,
(in thousands)	2011			2010			2009
Income:
Dividends from subsidiaries	$	105,000		$	80,000		$	75,000
Interest and dividends		4,669			4,789			4,715
Other		(2,653	)		411			489
Total income		107,016			85,200			80,204
Expense:
Other, net		11,721			12,632			10,322
Total expense		11,721			12,632			10,322
Income before federal taxes and equity in undistributed losses of subsidiaries		95,295			72,568			69,882
Federal income tax benefit		4,799			5,993			6,210
Income before equity in undistributed losses of subsidiaries		100,094			78,561			76,092
Equity in undistributed losses of subsidiaries		(17,954	)		(20,460	)		(1,900	)
Net income	$	82,140		$	58,101		$	74,192

Parent Company Schedule Statement Of Cash Flows

Statements of Cash Flows
	For the Years ended December 31,
(In thousands)	2011			2010			2009
Operating activities:
Net income	$	82,140		$	58,101		$	74,192
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed losses of subsidiaries		17,954			20,460			1,900
Other than temporary impairment charge, investments		(560	)		23			140
(Increase) decrease in other assets		(20,204	)		7,321			(18,420	)
(Decrease) increase in other liabilities		(9,575	)		(3,763	)		24,178
Net cash provided by operating activities		69,755			82,142			81,990
Investing activities:
Purchase of investment securities		(250	)		-			(113	)
Capital contribution to subsidiary		(26,000	)		(52,000	)		(37,000	)
Repayment of debentures receivable from subsidiaries		-			2,500			-
Net cash used in investing activities		(26,250	)		(49,500	)		(37,113	)
Financing activities:
Cash dividends paid		(62,907	)		(62,076	)		(58,035	)
Proceeds from issuance of common stock and warrants		-			33,541			53,475
Proceeds from issuance of subordinated notes		-			-			35,250
Cash payment for fractional shares		(2	)		(4	)		(2	)
Proceeds from issuance of preferred stock		-			-			-
Net cash (used in) provided by financing activities		(62,909	)		(28,539	)		30,688
(Decrease) increase in cash		(19,404	)		4,103			75,565
Cash at beginning of year		160,011			155,908			80,343
Cash at end of year	$	140,607		$	160,011		$	155,908

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Allowance For Loan Losses (Allowance Calculation At The Segment Level And Adjusted Beginning Balance For The Allowance For Credit Losses) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010	Dec. 31, 2009
Financing Receivable, Allowance for Credit Losses [Line Items]
Average loans			$ 4,642,478	$ 4,594,436
Beginning balance	143,575		116,717	100,088
Transfer of loans at fair value	219
Transfer of allowance to held for sale	13,100	[1]
Charge-offs	133,882		66,314	59,022
Recoveries	8,798		6,092	6,830
Net Charge-offs	125,084		60,222	52,192
Provision for loan losses	63,272		87,080	68,821
Ending balance	68,444		143,575	116,717
Ratio of net charge-offs to average loans			1.30%	1.14%
Ratio of allowance for loan losses to end of period loans			3.03%	2.52%
Commercial, Financial And Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	11,555
Transfer of loans at fair value	2
Transfer of allowance to held for sale	1,184	[1]
Charge-offs	18,350		8,484	10,047
Recoveries	1,402		1,237	1,010
Net Charge-offs	16,948
Provision for loan losses	23,529
Ending balance	16,950		11,555
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	24,369
Transfer of loans at fair value	150
Transfer of allowance to held for sale	4,327	[1]
Charge-offs	23,063		7,748	5,662
Recoveries	1,825		850	771
Net Charge-offs	21,238
Provision for loan losses	16,885
Ending balance	15,539		24,369
Construction Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	70,462
Transfer of loans at fair value	63
Transfer of allowance to held for sale	1,998	[1]
Charge-offs	64,166		23,308	21,956
Recoveries	1,463		813	1,322
Net Charge-offs	62,703
Provision for loan losses	8,735
Ending balance	14,433		70,462
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	30,259
Transfer of loans at fair value	4
Transfer of allowance to held for sale	5,450	[1]
Charge-offs	20,691		18,401	11,765
Recoveries	1,719		1,429	1,723
Net Charge-offs	18,972
Provision for loan losses	9,859
Ending balance	15,692		30,259
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	6,925
Transfer of allowance to held for sale	141	[1]
Charge-offs	7,612		8,373	9,583
Recoveries	2,385		1,763	2,001
Net Charge-offs	5,227
Provision for loan losses	4,273
Ending balance	5,830		6,925
Leases [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	5
Charge-offs				9
Recoveries	4			3
Net Charge-offs	(4)
Provision for loan losses	$ (9)

[1] Transfer of allowance to held for sale was allocated on a pro-rata basis based on the outstanding balance of the loans held for sale.

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Income Taxes (Components Of The Provision For Federal And State Income Taxes) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income Taxes [Abstract]
Currently payable, Federal	$ 5,949	$ 26,130	$ 32,148
State taxes currently payable		109	(273)
Deferred, Federal	22,378	(8,333)	(6,745)
Deferred, State	8,382	(3,564)	(2,187)
Valuation allowance, State	(2,294)	2,294
Total	$ 34,415	$ 16,636	$ 22,943

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Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2011

Benefit Plans [Abstract]

Plan Assets And Benefit Obligation Activity

(In thousands)	2011			2010
Change in fair value of plan assets
Fair value at beginning of measurement period	$	85,464		$	75,815
Actual return on plan assets		1,813			11,296
Company contributions		14,000			2,000
Benefits paid		(4,696	)		(3,647	)
Fair value at end of measurement period	$	96,581		$	85,464

Change in benefit obligation
Projected benefit obligation at beginning of measurement period	$	74,164		$	60,342
Service cost		4,557			3,671
Interest cost		3,967			3,583
Actuarial loss		3,515			10,215
Benefits paid		(4,696	)		(3,647	)
Projected benefit obligation at the end of measurement period	$	81,507		$	74,164
Funded status at end of year (assets less benefit obligation)	$	15,074		$	11,300

Asset Allocation For The Pension Plan By Asset Category

			Percentage of Plan Assets
Asset category	Target Allocation		2011			2010
Equity securities		50% - 100%		80	%		86	%
Fixed income and cash equivalents		remaining balance		20	%		14	%
Total				100	%		100	%

Weighted Average Assumptions Used To Determine Benefit Obligations

	2011			2010
Discount rate		5.18	%		5.50	%
Rate of compensation increase		3.00	%		3.00	%

Estimated Future Pension Benefit Payments

2012	$	5,535
2013		4,999
2014		5,543
2015		6,259
2016		6,284
2017-2021		37,823
Total	$	66,443

Balances Of Accumulated Other Comprehensive Income (Loss)

(In thousands)	2011			2010
Prior service cost	$	(74	)	$	(93	)
Net actuarial loss		(32,163	)		(24,410	)
Total		(32,237	)		(24,503	)
Deferred taxes		11,283			8,576
Accumulated other comprehensive loss	$	(20,954	)	$	(15,927	)

Components Of Net Periodic Benefit Cost And Other Amounts Recognized In Other Comprehensive Income (Loss)

(In thousands)	2011			2010			2009
Components of net periodic benefit cost and other amounts recognized in other comprehensive income (Loss)
Service cost	$	(4,557	)	$	(3,671	)	$	(3,813	)
Interest cost		(3,967	)		(3,583	)		(3,432	)
Expected return on plan assets		7,543			5,867			4,487
Amortization of prior service cost		(19	)		(22	)		(34	)
Recognized net actuarial loss		(1,411	)		(1,079	)		(2,041	)
Net periodic benefit cost	$	(2,411	)	$	(2,488	)	$	(4,833	)
Change to net actuarial (loss)/gain for the period	$	(9,164	)	$	(4,835	)	$	7,591
Amortization of prior service cost		19			22			34
Amortization of net loss		1,411			1,079			2,041
Total recognized in other comprehensive (loss)/income		(7,734	)		(3,734	)		9,666
Total recognized in net benefit cost and other comprehensive (loss)/income	$	(10,145	)	$	(6,222	)	$	4,833

Weighted Average Assumptions Used To Determine Net Periodic Benefit Cost

	2011			2010
Discount Rate		5.50	%		6.00	%
Rate of compensation increase		3.00	%		3.00	%
Expected long-term return on plan assets		7.75	%		7.75	%

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Sale Of Common Shares And Issuance Of Common Stock Warrants

12 Months Ended

Dec. 31, 2011

Sale Of Common Shares And Issuance Of Common Stock Warrants [Abstract]

Sale Of Common Shares And Issuance Of Common Stock Warrants

26. Sale of Common Shares and Issuance of Common Stock Warrants

There were no sales of common shares or issuance of common stock warrants during 2011. Outstanding as of December 31, 2010 were 35,992 Series A Common Share Warrants and 35,992 Series B Common Share Warrants which were issued as part of the registered direct public offering completed on December 10, 2010. The Series A and Series B Common Share Warrants had an exercise price of $76.41. The Series A Common Share Warrants issued in December 2010 were not exercised and expired on June 10, 2011. The Series B Common Share Warrants issued in December 2010 were not exercised and expired on December 20, 2011.

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Allowance For Loan Losses (Composition Of The Allowance For Loan Losses) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009	Dec. 31, 2008
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	$ 68,444		$ 143,575		$ 116,717	$ 100,088
Loan balance	4,317,099		4,732,685
Allowance for loan losses as a percentage of loan balance	1.59%		3.03%
Recorded investment	4,331,783		4,750,190
Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	15,935		66,904
Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	52,509		76,671
Loans Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	187,135		250,933
Allowance for loan losses as a percentage of loan balance	8.52%		26.66%
Recorded investment	187,135		250,933
Loans Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	4,129,964		4,481,752
Allowance for loan losses as a percentage of loan balance	1.27%		1.71%
Recorded investment	4,144,648		4,499,257
Commercial, Financial And Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	16,950		11,555
Loan balance	743,797		737,902
Allowance for loan losses as a percentage of loan balance	2.28%		1.57%
Recorded investment	746,918		740,788
Commercial, Financial And Agricultural [Member] | Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	5,819		3,028
Commercial, Financial And Agricultural [Member] | Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	11,131		8,527
Commercial, Financial And Agricultural [Member] | Loans Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	40,621		19,205
Allowance for loan losses as a percentage of loan balance	14.33%		15.77%
Recorded investment	40,621		19,205
Commercial, Financial And Agricultural [Member] | Loans Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	703,176		718,697
Allowance for loan losses as a percentage of loan balance	1.58%		1.19%
Recorded investment	706,297		721,583
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	15,539		24,369
Loan balance	1,108,574	[1]	1,226,616	[1]
Allowance for loan losses as a percentage of loan balance	1.40%		1.99%
Recorded investment	1,112,809	[1]	1,231,420	[1]
Commercial Real Estate [Member] | Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	4,431		12,652
Commercial Real Estate [Member] | Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	11,108		11,717
Commercial Real Estate [Member] | Loans Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	51,978		57,930
Allowance for loan losses as a percentage of loan balance	8.52%		21.84%
Recorded investment	51,978		57,930
Commercial Real Estate [Member] | Loans Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	1,056,596		1,168,686
Allowance for loan losses as a percentage of loan balance	1.05%		1.00%
Recorded investment	1,060,831		1,173,490
Construction Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	14,433		70,462
Loan balance	217,546		406,480
Allowance for loan losses as a percentage of loan balance	6.63%		17.33%
Recorded investment	218,096		407,533
Construction Real Estate [Member] | Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	3,414		45,312
Construction Real Estate [Member] | Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	11,019		25,150
Construction Real Estate [Member] | Loans Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	50,240		113,571
Allowance for loan losses as a percentage of loan balance	6.80%		39.90%
Recorded investment	50,240		113,571
Construction Real Estate [Member] | Loans Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	167,306		292,909
Allowance for loan losses as a percentage of loan balance	6.59%		8.59%
Recorded investment	167,856		293,962
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	15,692		30,259
Loan balance	1,628,618		1,692,209
Allowance for loan losses as a percentage of loan balance	0.96%		1.79%
Recorded investment	1,632,423		1,697,670
Residential Real Estate [Member] | Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	2,271		5,912
Residential Real Estate [Member] | Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	13,421		24,347
Residential Real Estate [Member] | Loans Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	44,276		60,227
Allowance for loan losses as a percentage of loan balance	5.13%		9.82%
Recorded investment	44,276		60,227
Residential Real Estate [Member] | Loans Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	1,584,342		1,631,982
Allowance for loan losses as a percentage of loan balance	0.85%		1.49%
Recorded investment	1,588,147		1,637,443
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	5,830		6,925
Loan balance	616,505		666,871
Allowance for loan losses as a percentage of loan balance	0.95%		1.04%
Recorded investment	619,435		670,116
Consumer [Member] | Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans	5,830		6,925
Consumer [Member] | Loans Individually Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	20
Recorded investment	20
Consumer [Member] | Loans Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	616,485		666,871
Allowance for loan losses as a percentage of loan balance	0.95%		1.04%
Recorded investment	619,415		670,116
Leases [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans			5
Loan balance	2,059		2,607
Allowance for loan losses as a percentage of loan balance			0.19%
Recorded investment	2,102		2,663
Leases [Member] | Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses, Ending allowance balance attributed to loans			5
Leases [Member] | Loans Collectively Evaluated For Impairment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan balance	2,059		2,607
Allowance for loan losses as a percentage of loan balance			0.19%
Recorded investment	$ 2,102		$ 2,663

[1] Included within commercial, financial and agricultural loans, commercial real estate loans, and Vision commercial land and development loans are an immaterial amount of consumer loans that are not broken out by class.

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Fair Values (Reconciliation Of The Level 3 Inputs For Financial Instruments Measured On A Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Obligations Of States And Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning	$ 2,598	$ 2,751
Total Gains/(Losses), Included in earnings - unrealized	(128)
Total Gains/(Losses), Included in other comprehensive income		(43)
Purchases, sales, issuances and settlements, other, net	(2,470)	(110)
Balance, ending		2,598
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning	745
Total Gains/(Losses), Included in other comprehensive income	18
Transfers in and/or out of Level 3		745
Balance, ending	763	745
Fair Value Swap [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning	(60)	(500)
Re-evaluation of fair value swap	(640)
Settlements		440
Balance, ending	$ (700)	$ (60)

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Parent Company Statements (Statements Of Income) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Interest and dividends	$ 331,880	$ 345,517	$ 367,690
Federal income tax benefit	34,415	16,636	22,943
Net income	82,140	58,101	74,192
Parent Company [Member]
Dividends from subsidiaries	105,000	80,000	75,000
Interest and dividends	4,669	4,789	4,715
Other	(2,653)	411	489
Total income	107,016	85,200	80,204
Other, net	11,721	12,632	10,322
Total expense	11,721	12,632	10,322
Income before federal taxes and equity in undistributed losses of subsidiaries	95,295	72,568	69,882
Federal income tax benefit	4,799	5,993	6,210
Income before equity in undistributed losses of subsidiaries	100,094	78,561	76,092
Equity in undistributed losses of subsidiaries	(17,954)	(20,460)	(1,900)
Net income	$ 82,140	$ 58,101	$ 74,192

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Loans (Average Recorded Investment And Interest Income Recognized On Loans Individually Evaluated For Impairment) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Recorded investment	$ 187,135
Average recorded investment	214,045
Interest income recognized	1,592
Commercial, Financial And Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Recorded investment	40,621
Average recorded investment	23,518
Interest income recognized	209
Construction Real Estate - Vision Commercial Land And Development [Member]
Financing Receivable, Impaired [Line Items]
Recorded investment	24,328
Average recorded investment	58,792
Construction Real Estate - Remaining Commercial [Member]
Financing Receivable, Impaired [Line Items]
Recorded investment	25,912
Average recorded investment	29,152
Interest income recognized	339
Residential Real Estate - Commercial [Member]
Financing Receivable, Impaired [Line Items]
Recorded investment	44,276
Average recorded investment	52,640
Interest income recognized	214
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Recorded investment	51,978
Average recorded investment	49,927
Interest income recognized	829
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Recorded investment	20
Average recorded investment	16
Interest income recognized	$ 1

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Long-Term Debt (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Mar. 09, 2007
Long-Term Debt [Abstract]
Capital lease obligation pertaining to acquisition of Vision		$ 1.4
Long term debt, callable by the issuer in 2012	$ 525.0

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Summary Of Significant Accounting Policies (Depreciable Lives Over Which Premises And Equipment Are Depreciated) (Details)	12 Months Ended
	Dec. 31, 2011 years
Buildings [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives, minimum	5
Premises and equipment, depreciable lives, maximum	50
Equipment, Furniture And Fixtures [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives, minimum	3
Premises and equipment, depreciable lives, maximum	20
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, depreciable lives, minimum	1
Premises and equipment, depreciable lives, maximum	10

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Earnings Per Common Share (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 U.S. Treasury's Capital Purchase Program [Member]	Dec. 31, 2010 U.S. Treasury's Capital Purchase Program [Member]	Dec. 31, 2009 October 2009 Warrants [Member]
Shares outstanding under the Incentive Stock Option Plan	74,020	78,075
Warrants to purchase common shares outstanding related to common stock issuances			227,376	227,376	71,984
Options and warrants not included in computation of diluted earnings per common shares	126,292	382,445
Weighted average options and warrants	126,292	382,445
Dilutive effect of Capital Purchase Plan warrants	1,291	3,043
Exercise price of Capital Purchase Plan warrants to purchase common shares		$ 65.97

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Loans (TDR Number Of Contracts Modified And Recorded Investment) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	193
Recorded Investment	$ 90,014
Commercial, Financial And Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	56
Recorded Investment	24,100
Construction Real Estate - Vision Commercial Land And Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	12
Recorded Investment	4,268
Construction Real Estate - Remaining Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	24
Recorded Investment	18,602
Construction Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	1
Recorded Investment	66
Residential Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	30
Recorded Investment	29,595
Residential Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	37
Recorded Investment	5,925
Residential Real Estate - HELOC [Member]
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	2
Recorded Investment	56
Residential Real Estate - Installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	7
Recorded Investment	221
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	23
Recorded Investment	7,163
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Number Of Contracts	1
Recorded Investment	$ 18

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Deposits (Maturities Of Time Deposits) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Contractual Maturities, Time Deposits, $100,000 or More [Abstract]
3 months or less	$ 171,090
Over 3 months through 6 months	122,481
Over 6 months through 12 months	186,793
Over 12 months	158,581
Total	$ 638,945

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Premises And Equipment (Major Categories Of Premises And Equipment) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Premises and Equipment, Total	$ 151,161	$ 169,129
Less accumulated depreciation	(97,420)	(99,562)
Premises and Equipment, Net	53,741	69,567
Land [Member]
Property, Plant and Equipment [Line Items]
Premises and Equipment, Total	18,151	23,827
Buildings [Member]
Property, Plant and Equipment [Line Items]
Premises and Equipment, Total	69,690	78,185
Equipment, Furniture And Fixtures [Member]
Property, Plant and Equipment [Line Items]
Premises and Equipment, Total	59,037	61,086
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and Equipment, Total	$ 4,283	$ 6,031

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Short-Term Borrowings (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Short-term Debt [Line Items]
Securities pledged to secure repurchase agreements	$ 669.0	$ 668.0
Federal Home Loan Bank Advances [Member]
Short-term Debt [Line Items]
Commercial real estate and residential mortgage loans pledged under blanket agreement	$ 2,231.0	$ 2,071.0

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Loans (Recorded Investment In Financing Receivable Modified As TDR Within 12 Months) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	54
Recorded Investment	$ 32,462
Commercial, Financial And Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	19
Recorded Investment	3,878
Construction Real Estate - Vision Commercial Land And Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	5
Recorded Investment	3,406
Construction Real Estate - Remaining Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	4
Recorded Investment	1,277
Construction Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	1
Recorded Investment	66
Residential Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	10
Recorded Investment	20,195
Residential Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	7
Recorded Investment	1,193
Residential Real Estate - HELOC [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	1
Recorded Investment	50
Residential Real Estate - Installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	2
Recorded Investment	44
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Number of Contracts	5
Recorded Investment	$ 2,353

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Loans (Loans Individually And Collectively Evaluated For Impairment) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	$ 223,789	$ 289,268
Loans individually evaluated for impairment	187,135	250,933
Loans collectively evaluated for impairment	36,654	38,335
Commercial, Financial And Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	40,645	19,276
Loans individually evaluated for impairment	40,621	19,205
Loans collectively evaluated for impairment	24	71
Construction Real Estate - Vision Commercial Land And Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	25,761	87,424
Loans individually evaluated for impairment	24,328	86,491
Loans collectively evaluated for impairment	1,433	933
Construction Real Estate - Remaining Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	25,912	27,080
Loans individually evaluated for impairment	25,912	27,080
Construction Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	66	354
Loans collectively evaluated for impairment	66	354
Construction Real Estate - Installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	30	417
Loans collectively evaluated for impairment	30	417
Residential Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	44,276	60,227
Loans individually evaluated for impairment	44,276	60,227
Residential Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	29,958	32,479
Loans collectively evaluated for impairment	29,958	32,479
Residential Real Estate - HELOC [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	1,412	964
Loans collectively evaluated for impairment	1,412	964
Residential Real Estate - Installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	1,875	1,195
Loans collectively evaluated for impairment	1,875	1,195
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	51,978	57,941
Loans individually evaluated for impairment	51,978	57,930
Loans collectively evaluated for impairment		11
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual and accruing restructured loans	1,876	1,911
Loans individually evaluated for impairment	20
Loans collectively evaluated for impairment	$ 1,856	$ 1,911

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Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations Of Credit Risk

12 Months Ended

Dec. 31, 2011

Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations Of Credit Risk [Abstract]

Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations Of Credit Risk

18. Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentrations of Credit Risk

The Corporation is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include loan commitments and standby letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements.

The Corporation's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Since many of the loan commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers.

The total amounts of off-balance sheet financial instruments with credit risk were as follows:

December 31 (In thousands)	2011		2010
Loan commitments	$	809,140	$	716,598
Standby letters of credit		18,772		24,462

The loan commitments are generally for variable rates of interest.

The Corporation grants retail, commercial and commercial real estate loans to customers primarily located in Ohio, Baldwin County, Alabama and the panhandle of Florida. The Corporation evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management's credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.

Although the Corporation has a diversified loan portfolio, a substantial portion of the borrowers' ability to honor their contracts is dependent upon the economic conditions in each borrower's geographic location and industry.

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Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations Of Credit Risk (Tables)

12 Months Ended

Dec. 31, 2011

Financial Instruments With Off-Balance Sheet Risk And Financial Instruments With Concentrations Of Credit Risk [Abstract]

Amounts Of Off-Balance Sheet Financial Instruments With Credit Risk

December 31 (In thousands)	2011		2010
Loan commitments	$	809,140	$	716,598
Standby letters of credit		18,772		24,462

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Deposits (Tables)

12 Months Ended

Dec. 31, 2011

Deposits [Abstract]

Summary Of Noninterest Bearing And Interest Bearing Deposits

December 31 (In thousands)	2011		2010
Noninterest bearing	$	995,733	$	937,719
Interest bearing		3,469,381		4,157,701
Total	$	4,465,114	$	5,095,420

Maturities Of Time Deposits

(In thousands)
2012	$	1,035,594
2013		236,549
2014		98,045
2015		66,353
2016		61,019
After 5 years		1,545
Total	$	1,499,105

Maturities Of Time Deposits Less Than 100K

December 31 (In thousands)
3 months or less	$	171,090
Over 3 months through 6 months		122,481
Over 6 months through 12 months		186,793
Over 12 months		158,581
Total	$	638,945

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Loans (Recorded Investment By Loan Grade) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
5 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	$ 76,434	$ 137,163
6 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	30,184	103,559
Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	188,572	251,948
Pass Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	2,151,649	2,316,438
Recorded Investment [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	2,446,839	2,809,108
Vision Commercial Land And Development [Member] | 5 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	3,102	10,220
Vision Commercial Land And Development [Member] | 6 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans		7,941
Vision Commercial Land And Development [Member] | Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	25,761	87,424
Vision Commercial Land And Development [Member] | Pass Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	2,771	66,031
Vision Commercial Land And Development [Member] | Recorded Investment [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	31,634	171,616
Remaining Commercial [Member] | 5 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	6,982	14,021
Remaining Commercial [Member] | 6 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	8,311	39,062
Remaining Commercial [Member] | Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	25,912	27,080
Remaining Commercial [Member] | Pass Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	115,242	116,152
Remaining Commercial [Member] | Recorded Investment [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	156,447	196,315
Residential Real Estate - Commercial [Member] | 5 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	17,120	29,206
Residential Real Estate - Commercial [Member] | 6 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	3,785	18,117
Residential Real Estate - Commercial [Member] | Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	44,276	60,227
Residential Real Estate - Commercial [Member] | Pass Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	331,748	358,756
Residential Real Estate - Commercial [Member] | Recorded Investment [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	396,929	466,306
Commercial, Financial, and Agricultural [Member] | 5 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	11,785	26,322
Commercial, Financial, and Agricultural [Member] | 6 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	7,628	11,447
Commercial, Financial, and Agricultural [Member] | Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	40,645	19,276
Commercial, Financial, and Agricultural [Member] | Pass Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	686,860	683,743
Commercial, Financial, and Agricultural [Member] | Recorded Investment [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	746,918	740,788
Commercial Real Estate [Member] | 5 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	37,445	57,394
Commercial Real Estate [Member] | 6 Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	10,460	26,992
Commercial Real Estate [Member] | Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	51,978	57,941
Commercial Real Estate [Member] | Pass Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	1,012,926	1,089,093
Commercial Real Estate [Member] | Recorded Investment [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	1,112,809	1,231,420
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] | Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans
Leases [Member] | Pass Rated [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	2,102	2,663
Leases [Member] | Recorded Investment [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial Loans	$ 2,102	$ 2,663

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Benefit Plans (Weighted Average Assumptions Used To Determine Benefit Obligations) (Details)	Dec. 31, 2011	Dec. 31, 2010
Benefit Plans [Abstract]
Discount rate	5.18%	5.50%
Rate of compensation increase	3.00%	3.00%

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Sale Of Vision Bank (Tables)

12 Months Ended

Dec. 31, 2011

Sale Of Vision Bank [Abstract]

Schedule Of Assets Purchased And Liabilities Assumed In Vision Bank Disposition

Assets and Liabilities Held for Sale December 31, 2011 (in thousands)
Assets held for sale	2011
Cash and due from banks	$	6,766
Loans		369,044
Allowance for loan losses		(13,100	)
Net loans		355,944
Fixed assets		14,861
Other assets		4,891
Total assets held for sale	$	382,462

Liabilities held for sale	2011
Deposits	$	532,598
Other liabilities		3,588
Total liabilities held for sale	$	536,186

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Fair Values (Tables)

12 Months Ended

Dec. 31, 2011

Fair Values [Abstract]

Assets And Liabilities Measured At Fair Value On A Recurring Basis

Fair Value Measurements at December 31, 2011 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2011
Assets
Investment Securities
Obligations of U.S. Treasury and Other U.S. Government Sponsored Entities	$	-	$	371,657	$	-	$	371,657
Obligations of States and Political Subdivisions		-		2,660		-		2,660
U.S. Government Sponsored Entities' Asset-Backed Securities		-		444,295		-		444,295
Equity Securities		1,270		-		763		2,033
Mortgage Loans Held for Sale		-		11,535		-		11,535
Mortgage IRLCs		-		251		-		251
Liabilities
Interest Rate Swap	$	-	$	846	$	-	$	846
Fair value swap		-		-		700		700

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

Reconciliation Of Level 3 Inputs For Financial Instruments Measured On Recurring Basis

Level 3 Fair Value Measurements
(In thousands)	Obligations of States and Political Subdivisions			Equity Securities		Fair Value Swap
Balance, at December 31, 2010	$	2,598		$	745	$	(60	)
Total Gains/(Losses)
Included in earnings - realized		-			-		-
Included in earnings - unrealized		(128	)		-		-
Included in other comprehensive income		-			18		-
Purchases, sales, issuances and settlements, other, net		(2,470	)		-		-
Re-evaluation of fair value swap		-			-		(640	)
Balance December 31, 2011	$	-		$	763	$	(700	)
Balance, at December 31, 2009	$	2,751		$	-	$	(500	)
Total Gains/(Losses)
Included in earnings - realized		-			-		-
Included in earnings - unrealized		-			-		-
Included in other comprehensive income		(43	)		-		-
Purchases, sales, issuances and settlements, other, net		(110	)		-		-
Settlements		-			-		440
Transfers in and/or out of Level 3		-			745		-
Balance December 31, 2010	$	2,598		$	745	$	(60	)

Assets And Liabilities Measured At Fair Value On A Nonrecurring Basis

Fair Value Measurements at December 31, 2011 Using:
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Balance at December 31, 2011
Impaired Loans:
Commercial, financial and       Agricultural	$	-	$	-	$	19,931	$	19,931
Commercial real estate		-		-		24,859		24,859
Construction real estate:
Vision commercial            land and development		-		-		21,228		21,228
Remaining commercial		-		-		8,860		8,860
Residential real estate		-		-		12,935		12,935
Total impaired loans	$	-	$	-	$	87,813	$	87,813
Mortgage Servicing Rights		-		5,815		-		5,815
Other Real Estate Owned		-		-		42,272		42,272

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		-		-		32,229		32,229
Construction real estate:
Vision commercial land and development		-		-		42,274		42,274
Remaining commercial		-		-		10,465		10,465
Residential real estate		-		-		16,399		16,399
Total impaired loans	$	-	$	-	$	109,643	$	109,643
Mortgage Servicing Rights		-		3,813		-		3,813
Other Real Estate Owned		-		-		41,709		41,709

Fair Value Of Financial Instruments

(In thousands)	December 31, 2011				December 31, 2010
Financial Assets:	Carrying Value		Fair Value		Carrying Value		Fair Value
Cash and Money Market Instruments	$157,486		$157,486		$133,780		$133,780
Investment Securities		1,640,869		1,655,219		1,971,092		1,983,636
Accrued Interest Receivable		19,697		19,697		24,137		24,137
Mortgage Loans Held for Sale		11,535		11,535		8,340		8,340
Impaired Loans Carried at Fair Value		87,813		87,813		109,643		109,643
Other Loans		4,149,307		4,167,224		4,471,127		4,490,855
Loans Receivable, Net	$	4,248,655	$	4,266,572	$	4,589,110	$	4,608,838
Assets held for sale	$	382,462	$	382,462	$	-	$	-
Financial Liabilities:
Noninterest Bearing Checking		995,733		995,733	$	937,719	$	937,719
Interest Bearing Transactions Accounts		1,037,385		1,037,385		1,283,159		1,283,159
Savings		931,526		931,526		899,288		899,288
Time Deposits		1,499,105		1,506,075		1,973,903		1,990,163
Other		1,365		1,365		1,351		1,351
Total Deposits	$	4,465,114	$	4,472,084	$	5,095,420	$	5,111,680
Short-Term Borrowings	$	263,594	$	263,594	$	663,669	$	663,669
Long-Term Debt		823,182		915,274		636,733		699,080
Subordinated Debentures/Notes		75,250		68,601		75,250		63,099
Accrued Interest Payable		4,916		4,916		6,123		6,123
Liabilities held for sale		536,186		536,991		-		-
Derivative Financial Instruments:
Interest Rate Swap	$	846	$	846	$	1,634	$	1,634
Fair value swap		700		700		60		60

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Investment Securities (Amortized Cost And Estimated Fair Value Of Investments In Debt Securities By Contractual Maturity) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Schedule of Investments [Line Items]
Securities Available-for-Sale, at Fair value	$ 820,645	$ 1,297,522
Obligations Of U.S. Treasury And Other U.S. Government Sponsored Entities [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Due within one year, Amortized cost	370,043
Securities Available-for-Sale, Due within one year, Fair value	371,657
Securities Available-for-Sale, Total, Amortized cost	370,043
Securities Available-for-Sale, at Fair value	371,657	273,313
Obligations Of States And Political Subdivisions [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Due within one year, Amortized cost	2,121
Securities Available-for-Sale, Due within one year, Fair value	2,133
Securities Available-for-Sale, Due one through five years, Amortized cost	495
Securities Available-for-Sale, Due one through five years, Fair value	527
Securities Available-for-Sale, Total, Amortized cost	2,616
Securities Available-for-Sale, at Fair value	2,660	11,044
Securities Held-to-Maturity, Due within one year, Amortized cost	1,992
Securities Held-to-Maturity, Due within one year, Fair value	1,997
Securities Held-to-Maturity, Total, Amortized cost	1,992
Securities Held-to-Maturity, Total, Fair value	1,997
U.S. Government Sponsored Entities Asset-Backed Securities [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Total, Amortized cost	427,300
Securities Available-for-Sale, at Fair value	444,295	1,011,412
Securities Held-to-Maturity, Total, Amortized cost	818,232
Securities Held-to-Maturity, Total, Fair value	$ 832,577

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Dividend Restrictions (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Dividend Restrictions [Abstract]
Amount available for dividend distribution without prior approval from regulatory authority	$ 51.3

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Summary Of Significant Accounting Policies (Non-Cash Items Included In Cash Provided By Operating Activities) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Summary Of Significant Accounting Policies [Abstract]
Transfer of Other Real Estate	$ 36,209	$ 35,507	$ 35,902

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Components Of The Corporation's Deferred Tax Assets And Liabilities

December 31 (In thousands)	2011		2010
Deferred tax assets:
Allowance for loan losses	$	23,956	$	52,418
Accumulated other comprehensive loss – Interest rate swap		296		572
Accumulated other comprehensive loss – pension plan		11,283		8,576
Intangible assets		1,523		2,156
Deferred compensation		3,733		4,123
OREO devaluations		6,364		7,171
State net operating loss carryforwards		-		2,812
Other		5,220		4,988
Loans held for sale fair value adjustment		4,585		-
Tax credit carryforwards		1,269		-
Valuation allowance		-		(1,491	)
Total deferred tax assets	$	58,229	$	81,325
Deferred tax liabilities:
Accumulated other comprehensive income – Unrealized gains on securities	$	6,824	$	8,142
Deferred investment income		10,199		10,199
Pension plan		21,567		16,835
Mortgage servicing rights		3,255		3,671
Purchase accounting adjustments		943		2,150
Other		2,006		2,176
Total deferred tax liabilities	$	44,794	$	43,173
Net deferred tax assets	$	13,435	$	38,152

Components Of The Provision For Federal And State Income Taxes

December 31, (In thousands)	2011			2010			2009
Currently payable
Federal	$	5,949		$	26,130		$	32,148
State		-			109			(273	)
Deferred
Federal		22,378			(8,333	)		(6,745	)
State		8,382			(3,564	)		(2,187	)
Valuation allowance
Federal		-			-			-
State		(2,294	)		2,294			-
Total	$	34,415		$	16,636		$	22,943

Reconciliation Of Federal Income Tax Expense

December 31	2011			2010			2009
Statutory federal corporate tax rate		35.0	%		35.0	%		35.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest		(1.0	)%		(1.7	)%		(1.3	)%
Bank owned life insurance		(1.5	)%		(2.3	)%		(1.8	)%
Tax credits (low income housing)		(5.2	)%		(6.7	)%		(4.8	)%
State income tax expense, net of federal benefit		4.7	%		(3.0	)%		(1.6	)%
Valuation allowance, net of federal benefit		(1.3	)%		2.0	%		-
Other		(1.2	)%		(1.0	)%		(1.9	)%
Effective tax rate		29.5	%		22.3	%		23.6	%

Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits

(In thousands)	2011			2010			2009
January 1 Balance	$	477		$	595		$	783
Additions based on tax positions related to the current year		70			69			64
Additions for tax positions of prior years		1			7			----
Reductions for tax positions of prior  years		(3	)		(131	)		(189	)
Reductions due to statute of limitations		(60	)		(63	)		(63	)
December 31 Balance	$	485		$	477		$	595

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Organization

12 Months Ended

Dec. 31, 2011

Organization And Acquisitions [Abstract]

Organization

2. Organization

Park National Corporation is a multi-bank holding company headquartered in Newark, Ohio. Through its banking subsidiaries, PNB and VB, Park is engaged in a general commercial banking and trust business, primarily in Ohio, Baldwin County, Alabama and the panhandle of Florida. A wholly-owned subsidiary of Park, Guardian Financial Services Company (GFSC) began operating in May 1999. GFSC is a consumer finance company located in Central Ohio. PNB operates through eleven banking divisions with the Park National Division headquartered in Newark, Ohio, the Fairfield National Division headquartered in Lancaster, Ohio, The Park National Bank of Southwest Ohio & Northern Kentucky Division headquartered in Cincinnati, Ohio, the First-Knox National Division headquartered in Mount Vernon, Ohio, the Farmers and Savings Division headquartered in Loudonville, Ohio, the Security National Division headquartered in Springfield, Ohio, the Unity National Division headquartered in Piqua, Ohio, the Richland Bank Division headquartered in Mansfield, Ohio, the Century National Division headquartered in Zanesville, Ohio, the United Bank Division headquartered in Bucyrus, Ohio and the Second National Division headquartered in Greenville, Ohio. VB, through February 16, 2012, operated through two banking divisions with the Vision Bank Florida Division headquartered in Panama City, Florida and the Vision Bank Alabama Division headquartered in Gulf Shores, Alabama. All of the Ohio-based banking divisions provide the following principal services: the acceptance of deposits for demand, savings and time accounts; commercial, industrial, consumer and real estate lending, including installment loans, credit cards, home equity lines of credit, commercial leasing; trust services; cash management; safe deposit operations; electronic funds transfers and a variety of additional banking-related services. VB, with its two banking divisions, through February 16, 2012, provided the services mentioned above, with the exception of commercial leasing. See Note 23 of these Notes to Consolidated Financial Statements for financial information on the Corporation's operating segments.

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Fair Values (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Fair Values [Abstract]
Fair value transferred out of Level 1 and into Level 3		$ 745,000
Book value of impaired loans	187,135,000	250,933,000
Partial charge-offs on impaired loans	103,800,000	53,600,000
Valuation allowance of impaired loans	15,935,000	66,904,000
Book value of impaired loans carried at fair value	103,700,000	176,500,000
Impaired Loans Carried at Fair Value, Fair Value	87,813,000	109,643,000
Remaining amount of impaired loans carried at cost	83,400,000	74,400,000
MSR recorded at lower of cost or fair value	9,301,000	10,488,000	10,780,000
Mortgage Servicing Rights, at fair value	5,815,000	3,813,000
Valuation allowance of MSR	1,021,000	748,000	574,000
MSRs recorded at cost	3,500,000
Devaluation adjustments of OREO		8,200,000
Estimated fair value of OREO, less estimated selling costs	$ 42,272,000	$ 41,709,000

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Sale Of Vision Bank (Narrative) (Details) (USD $)	12 Months Ended					0 Months Ended
	Dec. 31, 2011	Nov. 16, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Feb. 16, 2012 Vision Bank [Member]	Dec. 31, 2011 Vision Bank [Member]	Dec. 31, 2011 SE Property Holdings, LLC [Member]
Business acquisition date	November 16, 2011
Business acquisition, cash paid		$ 27,900,000
Nonperforming loans	101,000,000
Performing loans	23,000,000					354,000,000
Loans acquired sold at discount	13,100,000
Allowance for loan losses	$ 68,444,000		$ 143,575,000	$ 116,717,000	$ 100,088,000		$ 23,800,000	$ 10,700,000

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Parent Company Statements (Statements Of Cash Flows) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Net income	$ 82,140	$ 58,101	$ 74,192
(Decrease) increase in other liabilities	(10,826)	180	(30,622)
Net cash provided by operating activities	126,731	126,134	72,338
Net cash used in investing activities	271,216	(352,080)	(5,346)
Proceeds from issuance of subordinated notes			35,250
Net cash (used in) provided by financing activities	(374,241)	200,635	(79,163)
(Decrease) increase in cash	23,706	(25,311)	(12,171)
Parent Company [Member]
Net income	82,140	58,101	74,192
Undistributed losses of subsidiaries	17,954	20,460	1,900
Other than temporary impairment charge, investments	(560)	23	140
(Increase) decrease in other assets	(20,204)	7,321	(18,420)
(Decrease) increase in other liabilities	(9,575)	(3,763)	24,178
Net cash provided by operating activities	69,755	82,142	81,990
Purchase of investment securities	(250)		(113)
Capital contribution to subsidiary	(26,000)	(52,000)	(37,000)
Repayment of debentures receivable from subsidiaries		2,500
Net cash used in investing activities	(26,250)	(49,500)	(37,113)
Cash dividends paid	(62,907)	(62,076)	(58,035)
Proceeds from issuance of common stock and warrants		33,541	53,475
Proceeds from issuance of subordinated notes			35,250
Cash payment for fractional shares	(2)	(4)	(2)
Net cash (used in) provided by financing activities	(62,909)	(28,539)	30,688
(Decrease) increase in cash	(19,404)	4,103	75,565
Cash at beginning of year	160,011	155,908	80,343
Cash at end of year	$ 140,607	$ 160,011	$ 155,908

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Short-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2011

Short-Term Borrowings [Abstract]

Schedule Of Short-Term Borrowings

December 31 (In thousands)	2011		2010
Securities sold under agreements to repurchase and federal funds purchased	$	240,594	$	279,669
Federal Home Loan Bank advances		23,000		384,000
Total short-term borrowings	$	263,594	$	663,669

Repurchase  agreements  and Federal  Funds  Purchased			Federal Home  Loan Bank  Advances			Demand Notes  Due U.S.  Treasury and  Other
2011:
Ending balance	$	240,594		$	23,000		$	—
Highest month-end balance		265,412			232,000			—
Average daily balance		246,145			51,392			—
Weighted-average interest rate:
As of year-end		0.29	%		0.40	%		—
Paid during the year		0.30	%		0.18	%		—
2010:
Ending balance	$	279,669		$	384,000		$	—
Highest month-end balance		295,467			384,000			—
Average daily balance		269,260			31,679			—
Weighted-average interest rate:
As of year-end		0.32	%		0.19	%		—
Paid during the year		0.39	%		0.39	%		—

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Capital Ratios

12 Months Ended

Dec. 31, 2011

Capital Ratios [Abstract]

Capital Ratios

22. Capital Ratios

At December 31, 2011 and 2010, the Corporation and each of its two separately chartered banks had Tier 1, total risk-based capital and leverage ratios which were well above both the required minimum levels of 4.00%, 8.00% and 4.00%, respectively, and the well-capitalized levels of 6.00%, 10.00% and 5.00%, respectively.

The following table indicates the capital ratios for Park and each subsidiary at December 31, 2011 and December 31, 2010.

	2011									2010
	Tier 1 Risk-Based			Total Risk-Based			Leverage			Tier 1 Risk-Based			Total Risk-Based			Leverage
Park National Bank		9.52	%		11.46	%		6.58	%		9.43	%		11.38	%		6.68	%
Vision Bank		23.42	%		24.72	%		15.89	%		11.75	%		13.12	%		9.12	%
Park		14.15	%		16.65	%		9.81	%		13.24	%		15.71	%		9.54	%

Failure to meet the minimum requirements above could cause the Federal Reserve Board to take action. Park's bank subsidiaries are also subject to these capital requirements by their primary regulators. As of December 31, 2011 and 2010, Park and its banking subsidiaries were well-capitalized and met all capital requirements to which each was subject. There are no conditions or events since the most recent regulatory report filings, by PNB or Vision Bank ("VB") that management believes have changed the risk categories for either of the two banks.

The following table reflects various measures of capital for Park and each of PNB and VB

						To Be Adequately Capitalized					To Be Well Capitalized
(In thousands)	Actual Amount		Ratio			Amount		Ratio			Amount		Ratio
At December 31, 2011
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	498,367		11.46	%	$	347,972		8.00	%	$	434,965		10.00	%
VB (1)		115,637		24.72	%		37,427		8.00	%		46,784		10.00	%
Park		812,286		16.65	%		390,270		8.00	%		487,837		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	413,870		9.52	%	$	173,986		4.00	%	$	260,979		6.00	%
VB		109,566		23.42	%		18,714		4.00	%		28,071		6.00	%
Park		690,419		14.15	%		195,135		4.00	%		292,702		6.00	%
Leverage Ratio (to average total assets)
PNB	$	413,870		6.58	%	$	251,691		4.00	%	$	314,614		5.00	%
VB (1)		109,566		15.89	%		27,588		4.00	%		34,485		5.00	%
Park		690,419		9.81	%		281,506		4.00	%		351,882		5.00	%
At December 31, 2010
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	495,668		11.38	%	$	348,452		8.00	%	$	435,565		10.00	%
VB (Restated) (1)(2)		80,305		13.12	%		48,966		8.00	%		61,208		10.00	%
Park (Restated)		786,214		15.71	%		400,307		8.00	%		500,384		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	410,879		9.43	%	$	174,226		4.00	%	$	261,339		6.00	%
VB (Restated)		71,897		11.75	%		24,483		4.00	%		36,725		6.00	%
Park (Restated)		662,390		13.24	%		200,154		4.00	%		300,230		6.00	%
Leverage Ratio (to average total assets)
PNB	$	410,879		6.68	%	$	246,084		4.00	%	$	307,605		5.00	%
VB (Restated) (1)(2)		71,897		9.12	%		31,520		4.00	%		39,400		5.00	%
Park (Restated)		662,390		9.54	%		277,817		4.00	%		347,271		5.00	%

(1) Park management had agreed to maintain Vision Bank's total risk-based capital at 16.00% and the leverage ratio at 12.00%.

(2) As a result of the financial statement restatement for the year ended December 31, 2010, Vision Bank's December 31, 2010 total risk-based capital ratio declined from 19.55% to 13.12% and its leverage ratio declined from 14.05% to 9.12%.

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Fair Values

12 Months Ended

Dec. 31, 2011

Fair Values [Abstract]

Fair Values

21. Fair Values

The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that Park uses to measure fair value are as follows:

§ 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" used 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 is defined as the price that would be received to sell an asset or paid to transfer a liability between market participants at the balance sheet date. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and Park must use other valuation methods to develop a fair value. The fair value of impaired loans is based on the fair value of the underlying collateral, which is estimated through third party appraisals or internal estimates of collateral values.

Assets and Liabilities Measured on a Recurring Basis:

The following table presents financial assets and liabilities measured on a recurring basis:

Fair Value Measurements at December 31, 2011 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2011
Assets
Investment Securities
Obligations of U.S. Treasury and Other U.S. Government Sponsored Entities	$	-	$	371,657	$	-	$	371,657
Obligations of States and Political Subdivisions		-		2,660		-		2,660
U.S. Government Sponsored Entities' Asset-Backed Securities		-		444,295		-		444,295
Equity Securities		1,270		-		763		2,033
Mortgage Loans Held for Sale		-		11,535		-		11,535
Mortgage IRLCs		-		251		-		251
Liabilities
Interest Rate Swap	$	-	$	846	$	-	$	846
Fair value swap		-		-		700		700

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

The following methods and assumptions were used by the Corporation in determining fair value of the financial assets and liabilities discussed above:

Investment securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. The Fair Value Measurements tables exclude Park's Federal Home Loan Bank stock and Federal Reserve Bank stock. These assets are carried at their respective redemption values, as it is not practicable to calculate their fair values. For securities where quoted prices or market prices of similar securities are not available, which include municipal securities, fair values are calculated using discounted cash flows.

Interest rate swap: The fair value of the interest rate swap represents the estimated amount Park would pay or receive to terminate the agreement, considering current interest rates and the current creditworthiness of the counterparty.

Fair Value Swap: The fair value of the swap agreement entered into with the purchaser of the Visa Class B shares represents an internally developed estimate of the exposure based upon probability-weighted potential Visa litigation losses.

Interest Rate Lock Commitments (IRLCs): IRLCs are based on current secondary market pricing and are classified as Level 2.

Mortgage Loans Held for Sale: Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale are estimated using security prices for similar product types and, therefore, are classified in Level 2.

The table below is a reconciliation of the beginning and ending balances of the Level 3 inputs for the years ended December 31, 2011 and 2010, for financial instruments measured on a recurring basis and classified as Level 3:

Level 3 Fair Value Measurements
(In thousands)	Obligations of States and Political Subdivisions			Equity Securities		Fair Value Swap
Balance, at December 31, 2010	$	2,598		$	745	$	(60	)
Total Gains/(Losses)
Included in earnings - realized		-			-		-
Included in earnings - unrealized		(128	)		-		-
Included in other comprehensive income		-			18		-
Purchases, sales, issuances and settlements, other, net		(2,470	)		-		-
Re-evaluation of fair value swap		-			-		(640	)
Balance December 31, 2011	$	-		$	763	$	(700	)
Balance, at December 31, 2009	$	2,751		$	-	$	(500	)
Total Gains/(Losses)
Included in earnings - realized		-			-		-
Included in earnings - unrealized		-			-		-
Included in other comprehensive income		(43	)		-		-
Purchases, sales, issuances and settlements, other, net		(110	)		-		-
Settlements		-			-		440
Transfers in and/or out of Level 3		-			745		-
Balance December 31, 2010	$	2,598		$	745	$	(60	)

The fair value for several equity securities with a fair value of $745,000 as of December 31, 2010 was transferred out of Level 1 and into Level 3 because of a lack of observable market data for these investments. The Company's policy is to recognize transfers as of the end of the reporting period. As a result, the fair value for these equity securities was transferred on December 31, 2010.

Assets and Liabilities Measured on a Nonrecurring Basis:

The following table presents financial assets and liabilities measured at fair value on a nonrecurring basis:

Fair Value Measurements at December 31, 2011 Using:
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Balance at December 31, 2011
Impaired Loans:
Commercial, financial and       Agricultural	$	-	$	-	$	19,931	$	19,931
Commercial real estate		-		-		24,859		24,859
Construction real estate:
Vision commercial            land and development		-		-		21,228		21,228
Remaining commercial		-		-		8,860		8,860
Residential real estate		-		-		12,935		12,935
Total impaired loans	$	-	$	-	$	87,813	$	87,813
Mortgage Servicing Rights		-		5,815		-		5,815
Other Real Estate Owned		-		-		42,272		42,272

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		-		-		32,229		32,229
Construction real estate:
Vision commercial land and development		-		-		42,274		42,274
Remaining commercial		-		-		10,465		10,465
Residential real estate		-		-		16,399		16,399
Total impaired loans	$	-	$	-	$	109,643	$	109,643
Mortgage Servicing Rights		-		3,813		-		3,813
Other Real Estate Owned		-		-		41,709		41,709

Impaired loans, which are usually measured for impairment using the fair value of collateral had a book value of $187.1 million at December 31, 2011, after partial charge-offs of $103.8 million. In addition, these loans had a specific valuation allowance of $15.9 million. Of the $187.1 million impaired loan portfolio, loans with a book value of $103.7 million were carried at their fair value of $87.8 million, as a result of the aforementioned charge-offs and specific valuation allowance. The remaining $83.4 million of impaired loans were carried at cost, as the fair value of the underlying collateral or present value of expected future cash flows on these loans exceeded the book value for each individual credit. At December 31, 2010, impaired loans had a book value of $250.9 million. Of these, loans with a book value of $176.5 million were carried at their fair value of $109.6 million, as a result of partial charge-offs of $53.6 million and a specific valuation allowance of $66.9 million. The remaining $74.4 million of impaired loans at December 31, 2010 were carried at cost.

Mortgage servicing rights (MSRs), which are carried at the lower of cost or fair value, were recorded at $9.3 million at December 31, 2011. Of the $9.3 million MSR carrying balance at December 31, 2011, $5.8 million was recorded at fair value and included a valuation allowance of $1.0 million. The remaining $3.5 million was recorded at cost, as the fair value exceeded the cost at December 31, 2011. MSRs do not trade in active, open markets with readily observable prices. For example, sales of MSRs do occur, but precise terms and conditions typically are not readily available. As such, management, with the assistance of a third party specialist, determined fair value based on the discounted value of the future cash flows estimated to be received. Significant inputs include the discount rate and assumed prepayment speeds utilized. The calculated fair value was then compared to market vales where possible to ascertain the reasonableness of the valuation in relation to current market expectations for similar products. Accordingly, MSRs are classified in Level 2. At December 31, 2010, of the $10.5 million MSR carrying balance, $3.8 million were recorded at fair value and included a valuation allowance of $748,000.

Other real estate owned (OREO) is recorded at fair value based on property appraisals, less estimated selling costs, at the date of transfer. The carrying value of OREO is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. At December 31, 2011 and 2010, the estimated fair value of OREO, less estimated selling costs amounted to $42.3 million and $41.7 million, respectively. The financial impact of OREO valuation adjustments for the year ended December 31, 2011 was $8.2 million.

The following methods and assumptions were used by the Corporation in estimating its fair value disclosures for assets and liabilities not discussed above:

Cash and money market instruments: The carrying amounts reported in the Consolidated Balance Sheets for cash and short-term instruments approximate those assets' fair values.

Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for certain mortgage loans (e.g., one-to-four family residential) are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted for differences in loan characteristics. The fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

Off-balance sheet instruments: Fair values for the Corporation's loan commitments and standby letters of credit are based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. The carrying amount and fair value were not material.

Deposit liabilities: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts for variable-rate, fixed-term certificates of deposit approximate their fair values at the reporting date. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities of time deposits.

Short-term borrowings: The carrying amounts of federal funds purchased, borrowings under repurchase agreements and other short-term borrowings approximate their fair values.

Long-term debt: Fair values for long-term debt are estimated using a discounted cash flow calculation that applies interest rates currently being offered on long-term debt to a schedule of monthly maturities.

Subordinated debentures/notes: Fair values for subordinated debentures and notes are estimated using a discounted cash flow calculation that applies interest rate spreads currently being offered on similar debt structures to a schedule of monthly maturities.

The fair value of financial instruments at December 31, 2011 and December 31, 2010, was as follows:

(In thousands)	December 31, 2011				December 31, 2010
Financial Assets:	Carrying Value		Fair Value		Carrying Value		Fair Value
Cash and Money Market Instruments	$157,486		$157,486		$133,780		$133,780
Investment Securities		1,640,869		1,655,219		1,971,092		1,983,636
Accrued Interest Receivable		19,697		19,697		24,137		24,137
Mortgage Loans Held for Sale		11,535		11,535		8,340		8,340
Impaired Loans Carried at Fair Value		87,813		87,813		109,643		109,643
Other Loans		4,149,307		4,167,224		4,471,127		4,490,855
Loans Receivable, Net	$	4,248,655	$	4,266,572	$	4,589,110	$	4,608,838
Assets held for sale	$	382,462	$	382,462	$	-	$	-
Financial Liabilities:
Noninterest Bearing Checking		995,733		995,733	$	937,719	$	937,719
Interest Bearing Transactions Accounts		1,037,385		1,037,385		1,283,159		1,283,159
Savings		931,526		931,526		899,288		899,288
Time Deposits		1,499,105		1,506,075		1,973,903		1,990,163
Other		1,365		1,365		1,351		1,351
Total Deposits	$	4,465,114	$	4,472,084	$	5,095,420	$	5,111,680
Short-Term Borrowings	$	263,594	$	263,594	$	663,669	$	663,669
Long-Term Debt		823,182		915,274		636,733		699,080
Subordinated Debentures/Notes		75,250		68,601		75,250		63,099
Accrued Interest Payable		4,916		4,916		6,123		6,123
Liabilities held for sale		536,186		536,991		-		-
Derivative Financial Instruments:
Interest Rate Swap	$	846	$	846	$	1,634	$	1,634
Fair value swap		700		700		60		60

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Benefit Plans (Components Of Net Periodic Benefit Cost And Other Amounts Recognized In Other Comprehensive Income (Loss)) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Benefit Plans [Abstract]
Service cost	$ (4,557)	$ (3,671)	$ (3,813)
Interest cost	(3,967)	(3,583)	(3,432)
Expected return on plan assets	7,543	5,867	4,487
Amortization of prior service cost	(19)	(22)	(34)
Recognized net actuarial loss	(1,411)	(1,079)	(2,041)
Net periodic benefit cost	(2,411)	(2,488)	(4,833)
Change to net actuarial (loss)/gain for the period	(9,164)	(4,835)	7,591
Amortization of prior service cost	19	22	34
Amortization of net loss	1,411	1,079	2,041
Total recognized in other comprehensive (loss)/income	(7,734)	(3,734)	9,666
Total recognized in net benefit cost and other comprehensive (loss)/income	$ (10,145)	$ (6,222)	$ 4,833

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Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)	0 Months Ended	12 Months Ended
	Dec. 23, 2008	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Accounting Policies [Line Items]
Average required reserve balance		$ 38,100,000	$ 37,800,000
Mortgage loans held for sale		11,535,000	8,340,000
Amortized mortgage servicing rights		9,301,000	10,488,000	10,780,000
Goodwill and other intangible assets		74,800,000	78,400,000	81,800,000
Accumulated amortization of core deposit intangibles		19,600,000	16,100,000
Preferred stock value	100,000,000	98,146,000	97,290,000
Preferred shares per share liquidation preference	$ 1,000
Warrants issued to U.S. Treasury	227,376	227,376
Discount on preferred shares		4,300,000
Common stock granted		7,020	7,020	7,020
Buildings [Member]
Accounting Policies [Line Items]
Useful life years maximum		30
Equipment, Furniture And Fixtures [Member]
Accounting Policies [Line Items]
Useful life years minimum		3
Useful life years maximum		12
Leasehold Improvements [Member]
Accounting Policies [Line Items]
Useful life years minimum		1
Useful life years maximum		10
Capital Purchase Program (CPP) [Member]
Accounting Policies [Line Items]
Issue of Senior Preferred Shares	100,000
Preferred stock value	100,000,000
Cumulative Preferred Stock Dividend Percentage [Member]
Accounting Policies [Line Items]
Preferred stock cumulative dividend percent rate		5.00%
Revised Cumulative Preferred Stock Dividend Percentage [Member]
Accounting Policies [Line Items]
Preferred stock cumulative dividend percent rate		9.00%
Cumulative Preferred Stock [Member]
Accounting Policies [Line Items]
Preferred stock value		95,700,000
Warrants [Member]
Accounting Policies [Line Items]
Value of warrants		$ 4,300,000

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2011

Long-Term Debt [Abstract]

Schedule Of Long-Term Debt

December 31,	2011					2010
(In thousands)	Outstanding Balance		Average Rate			Outstanding Balance		Average Rate
Total Federal Home Loan Bank advances by year of maturity:
2011	$	-		-		$	16,460		1.99	%
2012		15,500		2.09	%		15,500		2.09	%
2013		75,500		1.11	%		500		4.03	%
2014		75,500		1.61	%		500		4.23	%
2015		51,000		2.00	%		-		-
2016		1,000		2.05	%		-		-
Thereafter		303,314		3.02	%		302,342		3.02	%
Total	$	521,814		2.41	%	$	335,302		2.93	%
Total broker repurchase agreements by year of maturity:
2016	$	75,000		4.05	%	$	75,000		4.05	%
Thereafter		225,000		4.03	%		225,000		4.03	%
Total	$	300,000		4.04	%	$	300,000		4.04	%
Other borrowings by year of maturity:
2011	$	-		-		$	63		7.97	%
2012		69		7.97	%		69		7.97	%
2013		74		7.97	%		74		7.97	%
2014		81		7.97	%		81		7.97	%
2015		87		7.97	%		87		7.97	%
2016		94		7.97	%		94		7.97	%
Thereafter		963		7.97	%		963		7.97	%
Total	$	1,368		7.97	%	$	1,431		7.97	%
Total combined long-term debt by year of maturity:
2011	$	-		-		$	16,523		2.01	%
2012		15,569		2.12	%		15,569		2.12	%
2013		75,574		1.11	%		574		4.54	%
2014		75,581		1.62	%		581		4.75	%
2015		51,087		2.01	%		87		7.97	%
2016		76,094		4.03	%		75,094		4.05	%
Thereafter		529,277		3.46	%		528,305		3.46	%
Total	$	823,182		3.01	%	$	636,733		3.46	%

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Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

23. Segment Information

The Corporation is a multi-bank holding company headquartered in Newark, Ohio. The operating segments for the Corporation are its two chartered bank subsidiaries, The Park National Bank (headquartered in Newark, Ohio) and Vision Bank (headquartered in Panama City, Florida). Guardian Financial Services Company is a consumer finance company and is excluded from PNB for segment reporting purposes. GFSC is included within the presentation of "All Other" in the segment reporting tables that follow. GAAP requires management to disclose information about the different types of business activities in which a company engages and also information on the different economic environments in which a company operates, so that the users of the financial statements can better understand a company's performance, better understand the potential for future cash flows, and make more informed judgments about the company as a whole. Park's two operating segments are in line with GAAP as there are: (i) two separate and distinct geographic markets in which Park operates, (ii) discrete financial information is available for each operating segment and (iii) the segments are aligned with internal reporting to Park's Chief Executive Officer, who is the chief operating decision maker.

Operating results for the year ended December 31, 2011 (In thousands)
	PNB		VB			All Other			Total
Net interest income	$	236,282	$	27,078		$	9,874		$	273,234
Provision for loan losses		30,220		31,052			2,000			63,272
Other income (loss)		90,982		6,617			(2,689	)		94,910
Other expense		146,235		31,379			10,703			188,317
Income (loss) before taxes		150,809		(28,736	)		(5,518	)		116,555
Income taxes (benefit)		43,958		(6,210	)		(3,333	)		34,415
Net income (loss)	$	106,851	$	(22,526	)	$	(2,185	)	$	82,140
Balances at December 31, 2011
Assets	$	6,281,747	$	650,935		$	39,563		$	6,972,245
Assets held for sale (1)		--		382,462			--			382,462
Loans		4,172,424		123,883			20,792			4,317,099
Deposits		4,611,646		32			(146,564	)		4,465,114
Liabilities held for sale (2)		--		536,186			--			536,186

Operating results for the year ended December 31, 2010 (In thousands)
	PNB		VB			All Other			Total
Net interest income	$	237,281	$	27,867		$	8,896		$	274,044
Provision for loan losses		23,474		61,407			2,199			87,080
Other income (loss)		80,512		(6,024	)		392			74,880
Other expense		144,051		31,623			11,433			187,107
Income (loss) before taxes		150,268		(71,187	)		(4,344	)		74,737
Income taxes (benefit)		47,320		(25,773	)		(4,911	)		16,636
Net income (loss)	$	102,948	$	(45,414	)	$	567		$	58,101
Balances at December 31, 2010
Assets	$	6,495,558	$	791,945		$	(5,242	)	$	7,282,261
Loans		4,074,775		640,580			17,330			4,732,685
Deposits		4,622,693		633,432			(160,705	)		5,095,420

Operating results for the year ended December 31, 2009 (In thousands)
	PNB		VB			All Other			Total
Net interest income	$	236,107	$	25,634		$	11,750		$	273,491
Provision for loan losses		22,339		44,430			2,052			68,821
Other income (loss)		82,770		(2,047	)		467			81,190
Other expense		148,048		28,091			12,586			188,725
Income (loss) before taxes		148,490		(48,934	)		(2,421	)		97,135
Income taxes (benefit)		47,032		(18,824	)		(5,265	)		22,943
Net income (loss)	$	101,458	$	(30,110	)	$	2,844		$	74,192
Balances at December 31, 2009
Assets	$	6,182,257	$	897,981		$	(39,909	)	$	7,040,329
Loans		3,950,599		677,018			12,815			4,640,432
Deposits		4,670,113		688,900			(170,961	)		5,188,052

(1) The assets held for sale represent the loans and other assets at Vision Bank that will be sold in the first quarter of 2012.

(2) The liabilities held for sale represent the deposits and other liabilities at Vision Bank that will be sold in the first quarter of 2012.

The following is a reconciliation of financial information for the reportable segments to the Corporation's consolidated totals:

	2011
(In thousands)	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	263,360	$	7,562	$	170,052	$	37,748		$	6,932,682		$	4,611,678
Elimination of intersegment items		-		-		-		-			(57,286	)		(146,564	)
Parent Co. & GFSC totals - not eliminated		9,874		21		10,682		(3,333	)		96,849			-
Totals	$	273,234	$	7,583	$	180,734	$	34,415		$	6,972,245		$	4,465,114

	2010
	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	265,148	$	7,109	$	168,565	$	21,547		$	7,287,503		$	5,256,125
Elimination of intersegment items		-		-		-		-			(77,876	)		(160,705	)
Parent Co. & GFSC totals - not eliminated		8,896		17		11,416		(4,911	)		72,634			-
Totals	$	274,044	$	7,126	$	179,981	$	16,636		$	7,282,261		$	5,095,420

	2009
	Net Interest Income		Depreciation Expense		Other Expense		Income Taxes			Assets			Deposits
Totals for reportable segments	$	261,741	$	7,451	$	168,688	$	28,208		$	7,080,238		$	5,359,013
Elimination of intersegment items		-		-		-		-			(114,214	)		(170,961	)
Parent Co. & GFSC totals - not eliminated		11,750		22		12,564		(5,265	)		74,305			-
Totals	$	273,491	$	7,473	$	181,252	$	22,943		$	7,040,329		$	5,188,052

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Parent Company Statements

12 Months Ended

Dec. 31, 2011

Parent Company Statements [Abstract]

Parent Company Statements

24. Parent Company Statements

The Parent Company statements should be read in conjunction with the consolidated financial statements and the information set forth below.

Investments in subsidiaries are accounted for using the equity method of accounting.

The effective tax rate for the Parent Company is substantially less than the statutory rate due principally to tax-exempt dividends from subsidiaries.

Cash represents noninterest bearing deposits with a bank subsidiary.

Net cash provided by operating activities reflects cash payments (received from subsidiaries) for income taxes of $4.21 million, $5.97 million and $5.22 million in 2011, 2010 and 2009, respectively.

At December 31, 2011 and 2010, stockholders' equity reflected in the Parent Company balance sheet includes $146.6 million and $143 million, respectively, of undistributed earnings of the Corporation's subsidiaries which are restricted from transfer as dividends to the Corporation.

Balance Sheets
	December 31,
(In thousands)	2011		2010
Assets:
Cash	$	140,607	$	160,011
Investment in subsidiaries		602,270		601,201
Debentures receivable from subsidiary banks		5,000		5,000
Other investments		2,280		1,451
Other assets		90,438		69,845
Total assets	$	840,595	$	837,508
Liabilities:
Dividends payable	$	-	$	-
Subordinated notes		50,250		50,250
Other liabilities		47,981		57,550
Total liabilities		98,231		107,800
Total stockholders' equity		742,364		729,708
Total liabilities and stockholders' equity	$	840,595	$	837,508

Statements of Income
	For the Years ended December 31,
(in thousands)	2011			2010			2009
Income:
Dividends from subsidiaries	$	105,000		$	80,000		$	75,000
Interest and dividends		4,669			4,789			4,715
Other		(2,653	)		411			489
Total income		107,016			85,200			80,204
Expense:
Other, net		11,721			12,632			10,322
Total expense		11,721			12,632			10,322
Income before federal taxes and equity in undistributed losses of subsidiaries		95,295			72,568			69,882
Federal income tax benefit		4,799			5,993			6,210
Income before equity in undistributed losses of subsidiaries		100,094			78,561			76,092
Equity in undistributed losses of subsidiaries		(17,954	)		(20,460	)		(1,900	)
Net income	$	82,140		$	58,101		$	74,192

Statements of Cash Flows
	For the Years ended December 31,
(In thousands)	2011			2010			2009
Operating activities:
Net income	$	82,140		$	58,101		$	74,192
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed losses of subsidiaries		17,954			20,460			1,900
Other than temporary impairment charge, investments		(560	)		23			140
(Increase) decrease in other assets		(20,204	)		7,321			(18,420	)
(Decrease) increase in other liabilities		(9,575	)		(3,763	)		24,178
Net cash provided by operating activities		69,755			82,142			81,990
Investing activities:
Purchase of investment securities		(250	)		-			(113	)
Capital contribution to subsidiary		(26,000	)		(52,000	)		(37,000	)
Repayment of debentures receivable from subsidiaries		-			2,500			-
Net cash used in investing activities		(26,250	)		(49,500	)		(37,113	)
Financing activities:
Cash dividends paid		(62,907	)		(62,076	)		(58,035	)
Proceeds from issuance of common stock and warrants		-			33,541			53,475
Proceeds from issuance of subordinated notes		-			-			35,250
Cash payment for fractional shares		(2	)		(4	)		(2	)
Proceeds from issuance of preferred stock		-			-			-
Net cash (used in) provided by financing activities		(62,909	)		(28,539	)		30,688
(Decrease) increase in cash		(19,404	)		4,103			75,565
Cash at beginning of year		160,011			155,908			80,343
Cash at end of year	$	140,607		$	160,011		$	155,908

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Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

1. Summary of Significant Accounting Policies

The following is a summary of significant accounting policies followed in the preparation of the consolidated financial statements:

Principles of Consolidation

The consolidated financial statements include the accounts of Park National Corporation and its subsidiaries ("Park", the "Company" or the "Corporation"). Material intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management has identified the allowance for loan losses, accounting for Other Real Estate Owned ("OREO") and accounting for goodwill as significant estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year presentation.

Subsequent Events

Management has evaluated events occurring subsequent to the balance sheet date through February 29, 2012, determining no events require additional disclosure in these consolidated financial statements, with the exception of the subsequent event discussed in Note 27 of these Notes to Consolidated Financial Statements.

Restrictions on Cash and Due from Banks

The Corporation's two bank subsidiaries are required to maintain average reserve balances with the Federal Reserve Bank. The average required reserve balance was approximately $38.1 million at December 31, 2011 and $37.8 million at December 31, 2010. No other compensating balance arrangements were in existence at December 31, 2011.

Investment Securities

Investment securities are classified upon acquisition into one of three categories: held-to-maturity, available-for-sale, or trading (see Note 4 of these Notes to Consolidated Financial Statements).

Held-to-maturity securities are those securities that the Corporation has the positive intent and ability to hold to maturity and are recorded at amortized cost. Available-for-sale securities are those securities that would be available to be sold in the future in response to the Corporation's liquidity needs, changes in market interest rates, and asset-liability management strategies, among other reasons. Available-for-sale securities are reported at fair value, with unrealized holding gains and losses excluded from earnings but included in other comprehensive income, net of applicable taxes. The Corporation did not hold any trading securities during any period presented.

Available-for-sale and held-to-maturity securities are evaluated quarterly for potential other-than-temporary impairment. Management considers the facts related to each security including the nature of the security, the amount and duration of the loss, the credit quality of the issuer, the expectations for that security's performance and whether Park intends to sell, or it is more likely than not to be required to sell, a security in an unrealized loss position before recovery of it's amortized cost basis. Declines in equity securities that are considered to be other-than-temporary are recorded as a charge to earnings in the Consolidated Statements of Income. Declines in debt securities that are considered to be other-than-temporary are separated into (1) the amount of the total impairment related to credit loss and (2) the amount of the total impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total impairment related to all other factors is recognized in other comprehensive income.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated.

Gains and losses realized on the sale of investment securities are recorded on the trade date and determined using the specific identification basis.

Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock

Park's two separately chartered banks, The Park National Bank (PNB) and Vision Bank ("VB" or "Vision"), are members of the FHLB. Additionally, PNB is a member of the FRB. Members are required to own a certain amount of stock based on their level of borrowings and other factors and may invest in additional amounts. FHLB and FRB stock are carried at cost, classified as restricted securities and are carried at their redemption value. Both cash and stock dividends are reported as income.

Bank Owned Life Insurance

Park has purchased life insurance policies on directors and certain key officers. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

Mortgage Loans Held for Sale

Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale were $11.5 million and $8.3 million at December 31, 2011 and 2010, respectively. These amounts are included in loans on the Consolidated Balance Sheets.

Mortgage Banking Derivatives

Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on sales of loans.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at their outstanding principal balances adjusted for any charge-offs, any deferred fees or costs on originated loans, and any unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan origination fees and costs over the loan term. Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) those commercial loans in the real estate construction loan segment; and (4) those commercial loans in the residential real estate loan segment. Consumer loans include: (1) mortgage and installment loans included in the real estate construction segment; (2) mortgage, home equity lines of credit (HELOC), and installment loans included in the residential real estate segment; and (3) all loans included in the consumer segment. Generally, commercial loans are placed on nonaccrual status at 90 days past due and consumer and residential mortgage loans are placed on nonaccrual status at 120 days past due. Accrued interest on these loans is considered a loss, unless the loan is well-secured and in the process of collection. Commercial loans placed on nonaccrual status are considered impaired (See Note 5 of these Notes to Consolidated Financial Statements). For loans which are on nonaccrual status, it is Park's policy to reverse interest previously accrued on the loans against interest income. Interest on such loans is thereafter recorded on a cash basis and is included in earnings only when cash is actually received. Park's charge-off policy for commercial loans requires management to establish a specific reserve or record a charge-off as soon as it is apparent that the borrower is troubled and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing the loan. The Company's charge-off policy for consumer loans is dependent on the class of the loan. Residential mortgage loans and HELOC are typically charged down to the value of the collateral, less estimated selling costs at 180 days past due. The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due.

The delinquency status of a loan is based on contractual terms and not on how recently payments have been received. Loans are removed from nonaccrual status when loan payments have been received to cure the delinquency status and the loan is deemed to be well-secured by management.

A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below:

Commercial, financial and agricultural:

Commercial, financial and agricultural loans are made for a wide variety of general corporate purposes, including financing for commercial and industrial businesses, financing for equipment, inventories and accounts receivable, acquisition financing and commercial leasing. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. The commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in (i) the 28 Ohio counties and one Kentucky county where Park National Bank operates and (ii) the five Florida counties and one Alabama county where Vision Bank operates. The primary industries represented by these customers include manufacturing, retail trade, health care and other services.

Commercial real estate: Commercial real estate loans ("CRE loans") include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate. Each subsidiary bank generally requires that the CRE loan amount be no more than 85% of the purchase price or the appraised value of the commercial real estate securing the CRE loan, whichever is less. CRE loans made for each subsidiary bank's portfolio generally have a variable interest rate. A CRE loan may be made with a fixed interest rate for a term generally not exceeding five years.

Construction real estate: The Company defines construction loans as both commercial construction loans and residential construction loans where the loan proceeds are used exclusively for the improvement of real estate as to which the Company holds a mortgage. Construction loans may be in the form of a permanent loan or short-term construction loan, depending on the needs of the individual borrower. Generally, the permanent construction loans have a variable interest rate although a permanent construction loan may be made with a fixed interest rate for a term generally not exceeding five years. Short-term construction loans are made with variable interest rates. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property's value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, the subsidiary bank making the loan may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, the subsidiary bank may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event a default on a construction loan occurs and foreclosure follows, the subsidiary bank must take control of the project and attempt either to arrange for completion of construction or to dispose of the unfinished project. Additional risk exists with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. Park's subsidiary banks attempt to reduce such risks on loans to developers by requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer.

Residential real estate: The Company defines residential real estate loans as first mortgages on individuals' primary residence or second mortgages of individuals' primary residence in the form of home equity lines of credit or installment loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and an appropriately appraised value of the real estate securing the loan. Each subsidiary bank generally requires that the residential real estate loan amount be no more than 80% of the purchase price or the appraised value of the real estate securing the loan, whichever is less, unless private mortgage insurance is obtained by the borrower. Loans made for each subsidiary bank's portfolio in this lending category are generally adjustable rate, fully amortized mortgages. The rates used are generally fully-indexed rates. Park generally does not price residential loans using low introductory "teaser" rates. Home equity lines of credit are generally made as second mortgages by Park's subsidiary banks. The maximum amount of a home equity line of credit is generally limited to 85% of the appraised value of the property less the balance of the first mortgage.

Consumer: The Company originates direct and indirect consumer loans, primarily automobile loans and home equity based credit cards to customers and prospective customers in its primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances.

Allowance for Loan Losses

The allowance for loan losses is that amount believed adequate to absorb probable incurred credit losses in the loan portfolio based on management's evaluation of various factors. The determination of the allowance requires significant estimates, including the timing and amounts of expected cash flows on impaired loans, consideration of current economic conditions, and historical loss experience pertaining to pools of homogeneous loans, all of which may be susceptible to change. The allowance is increased through a provision for loan losses that is charged to earnings based on management's quarterly evaluation of the factors previously mentioned and is reduced by charge-offs, net of recoveries.

The allowance for loan losses includes both (1) an estimate of loss based on historical loss experience within both commercial and consumer loan categories with similar characteristics ("statistical allocation") and (2) an estimate of loss based on an impairment analysis of each commercial loan that is considered to be impaired ("specific allocation").

In calculating the allowance for loan losses, management believes it is appropriate to utilize historical loss rates that are comparable to the current period being analyzed. For the historical loss factor at December 31, 2011, the Company utilized an annual loss rate ("historical loss experience"), calculated based on an average of the net charge-offs and the annual change in specific reserves for impaired commercial loans, experienced during 2009, 2010 and 2011 within the individual segments of the commercial and consumer loan categories. Management believes the 36-month historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. The loss factor applied to Park's consumer portfolio is based on the historical loss experience over the past 36 months, plus an additional judgmental reserve, increasing the total allowance for loan loss coverage in the consumer portfolio to approximately 1.38 years of historical loss. The loss factor applied to Park's commercial portfolio is based on the historical loss experience over the past 36 months, plus additional reserves for consideration of (1) a loss emergence period factor, (2) a loss migration factor and (3) a judgmental or environmental loss factor. These additional reserves increase the total allowance for loan loss coverage in the commercial portfolio to approximately 2.8 years of historical loss. Park's commercial loans are individually risk graded. If loan downgrades occur, the probability of default increases, and accordingly management allocates a higher percentage reserve to those accruing commercial loans graded special mention and substandard.

The judgmental increases discussed above incorporates management's evaluation of the impact of environmental qualitative factors which pose additional risks and assigns a component of the allowance for loan losses in consideration of these factors. Such environmental factors include: national and local economic trends and conditions; experience, ability and depth of lending management and staff; effects of any changes in lending policies and procedures; and levels of, and trends in, consumer bankruptcies, delinquencies, impaired loans and charge-offs and recoveries.

U.S. generally accepted accounting principles ("GAAP") require a specific allocation to be established as a component of the allowance for loan losses for certain loans when it is probable that all amounts due pursuant to the contractual terms of the loans will not be collected, and the recorded investment in the loans exceeds their measure of impairment. Management considers the following related to commercial loans when determining if a loan should be considered impaired: (1) current debt service coverage levels of the borrowing entity; (2) payment history over the most recent 12-month period; (3) other signs of deterioration in the borrower's financial situation, such as changes in beacon scores; and (4) consideration of the current collateral supporting the loan.The recorded investment is the carrying balance of the loan, plus the accrued interest receivable, both as of the end of the year. Impairment is measured using either the present value of expected future cash flows based upon the initial effective interest rate on the loan, the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent.

Troubled Debt Restructuring (TDRs)

Management classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the company's internal underwriting policy. Management's policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan's effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral.

Income Recognition

Income earned by the Corporation and its subsidiaries is recognized on the accrual basis of accounting, except for nonaccrual loans as previously discussed, and late charges on loans which are recognized as income when they are collected.

Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the remaining lease period or the estimated useful lives of the improvements. Upon the sale or other disposal of an asset, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are charged to expense as incurred while renewals and improvements that extend the useful life of an asset are capitalized. Premises and equipment is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

The range of depreciable lives over which premises and equipment are being depreciated are:

Buildings	5 to 50 Years
Equipment, furniture and fixtures	3 to 20 Years
Leasehold improvements	1 to 10 Years

Buildings that are currently placed in service are depreciated over 30 years. Equipment, furniture and fixtures that are currently placed in service are depreciated over 3 to 12 years. Leasehold improvements are depreciated over the lives of the related leases which range from 1 to 10 years.

Other Real Estate Owned (OREO)

OREO is recorded at fair value less anticipated selling costs (net realizable value) and consists of property acquired through foreclosure and real estate held for sale. If the net realizable value is below the carrying value of the loan at the date of transfer, the difference is charged to the allowance for loan losses. Subsequent declines in the value of real estate are classified as OREO devaluations, are reported as adjustments to the carrying amount of OREO and are expensed within "other income". In certain circumstances where management believes the devaluation may not be permanent in nature, Park utilizes a valuation allowance to record OREO devaluations, which is also expensed through "other income". Costs relating to development and improvement of such properties are capitalized (not in excess of fair value less estimated costs to sell) and costs relating to holding the properties are charged to expense.

Mortgage Loan Servicing Rights

When Park sells mortgage loans with servicing rights retained, servicing rights are recorded at an amount not to exceed fair value with the income statement effect recorded in gains on sale of loans. Capitalized servicing rights are amortized in proportion to and over the period of estimated future servicing income of the underlying loan.

Mortgage servicing rights are assessed for impairment periodically, based on fair value, with any impairment recognized through a valuation allowance. The fair value of mortgage servicing rights is determined by discounting estimated future cash flows from the servicing assets, using market discount rates and expected future prepayment rates. In order to calculate fair value, the sold loan portfolio is stratified into homogeneous pools of like categories. (See Note 20 of these Notes to Consolidated Financial Statements.)

Fees received for servicing mortgage loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in income as loan payments are received. The cost of servicing loans is charged to expense as incurred.

Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over net identifiable tangible and intangible assets acquired in a purchase business combination. Other intangible assets represent purchased assets that have no physical property but represent some future economic benefit to their owner and are capable of being sold or exchanged on their own or in combination with a related asset or liability.

Goodwill and indefinite-lived intangible assets are not amortized to expense, but are subject to impairment tests annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets with definitive useful lives (such as core deposit intangibles) are amortized to expense over their estimated useful lives.

Management considers several factors when performing the annual impairment tests on goodwill. The factors considered include the operating results for the particular Park segment for the past year and the operating results budgeted for the current year (including multi-year projections), the purchase prices being paid for financial institutions in the markets served by the Park segment, the deposit and loan totals of the Park segment and the economic conditions in the markets served by the Park segment.

The following table reflects the activity in goodwill and other intangible assets for the years 2011, 2010 and 2009.

			Core Deposit
(In thousands)	Goodwill		Intangibles			Total
December 31, 2008	$	72,334	$	13,211		$	85,545
Amortization		—		(3,746	)		(3,746	)
December 31, 2009	$	72,334	$	9,465		$	81,799
Amortization		—		(3,422	)		(3,422	)
December 31, 2010	$	72,334	$	6,043		$	78,377
Amortization		—		(3,534	)		(3,534	)
December 31, 2011	$	72,334	$	2,509		$	74,843

GAAP requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired, by comparing the fair value of such goodwill to its recorded or carrying amount. If the carrying amount of the goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess.

Park typically evaluates goodwill for impairment on April 1 of each year, with financial data as of March 31. Based on the analysis performed as of April 1, 2011, the Company determined that goodwill for Park's Ohio-based bank (The Park National Bank) was not impaired.

Goodwill and other intangible assets (as shown on the Consolidated Balance Sheets) totaled $74.8 million at December 31, 2011, $78.4 million at December 31, 2010 and $81.8 million at December 31, 2009.

The core deposit intangibles are being amortized to expense principally on the straight-line method, over periods ranging from six to ten years. The amortization period for the core deposit intangibles related to Vision Bank was accelerated due to the pending acquisition of Vision Bank branches by Centennial Bank. (See Note3 of these Notes to Consolidated Financial Statements for details on the Vision Bank branch sale.) Core deposit intangible amortization expense was $3.5 million in 2011, $3.4 million in 2010 and $3.7 million in 2009.

The accumulated amortization of core deposit intangibles was $19.6 million as of December 31, 2011 and $16.1 million at December 31, 2010. The expected core deposit intangible amortization expense for each of the next five years is as follows:

(In thousands)
2012	$	2,172
2013		337
2014		-
2015		-
2016		-
Total	$	2,509

Consolidated Statement of Cash Flows

Cash and cash equivalents include cash and cash items, amounts due from banks and money market instruments. Generally money market instruments are purchased and sold for one-day periods.

Net cash provided by operating activities reflects cash payments as follows:

December 31,
(In thousands)	2011		2010		2009
Interest paid on deposits and other borrowings	$	59,552	$	74,680	$	96,204
Income taxes paid		17,700		24,600		30,660

Non-cash Items

The cash flow statement for the year ended December 31, 2011 was prepared with the assets and liabilities held for sale (refer to Note 3) included within each of their respective categories (loans, fixed assets, other assets, deposits and other liabilities).

Non-cash items included in cash provided by operating activities:

December 31,
(In thousands)	2011			2010		2009
Transfers to OREO		$	36,209	$	35,507	$	35,902

Loss Contingencies and Guarantees

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.

Income Taxes

The Corporation accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. To the extent that Park does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is recorded. All positive and negative evidence is reviewed when determining how much of a valuation allowance is recognized on a quarterly basis. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is "more-likely-than-not" that the tax position would be sustained in a tax examination being presumed to occur. The benefit recognized for a tax position that meets the "more-likely-than-not" criteria is measured based on the largest benefit that is more than 50 percent likely to be realized, taking into consideration the amounts and probabilities of the outcome upon settlement. For tax positions not meeting the "more-likely-than-not" test, no tax benefit is recorded. Park recognizes any interest and penalties related to income tax matters in income tax expense.

Preferred Stock

On December 23, 2008, Park issued $100 million of Senior Preferred Shares to the U.S. Department of Treasury (the "Treasury") under the Capital Purchase Program (CPP), consisting of 100,000 shares, each with a liquidation preference of $1,000 per share. In addition, on December 23, 2008, Park issued a warrant to the Treasury to purchase 227,376 common shares. These preferred shares and related warrant are considered permanent equity for accounting purposes. GAAP requires management to allocate the proceeds from the issuance of the preferred stock between the preferred stock and related warrant. The terms of the preferred shares require management to pay a cumulative dividend at the rate of 5 percent per annum until February 14, 2014 and 9 percent thereafter. Management determined that the 5 percent dividend rate is below market value; therefore, the fair value of the preferred shares would be less than the $100 million in proceeds. Management determined that a reasonable market discount rate is 12 percent for the fair value of preferred shares. Management used the Black-Scholes model for calculating the fair value of the warrant (and related common shares). The allocation between the preferred shares and warrant at December 23, 2008, the date of issuance, was $95.7 million and $4.3 million, respectively. The discount on the preferred shares of $4.3 million is being accreted through retained earnings over a 60 month period.

Treasury Stock

The purchase of Park's common stock is recorded at cost. At the date of retirement or subsequent reissuance, the treasury stock account is reduced by the weighted average cost of the common shares retired or reissued.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, changes in the funded status of the Company's Defined Benefit Pension Plan, and the unrealized net holding gains and losses on the cash flow hedge, which are also recognized as separate components of equity.

Stock Based Compensation

Compensation cost is recognized for stock options and stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of Park's common stock at the date of grant is used for stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Park did not grant any stock options during 2011, 2010 or 2009. No stock options vested in 2011, 2010 or 2009. Park granted 7,020 shares of common stock to its directors in each of 2011, 2010 and 2009, respectively.

Derivative Instruments

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company's intentions and belief as to likely effectiveness as a hedge. These three types are: (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"); (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"); or (3) an instrument with no hedging designation ("stand-alone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the Consolidated Balance Sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings.

Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 21 of these Notes to Consolidated Financial Statements. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Retirement Plans

Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service.

Earnings Per Common Share

Basic earnings per common share is net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options, warrants and convertible securities. Earnings and dividends per common share are restated for any stock splits and stock dividends through the date of issuance of the consolidated financial statements.

Adoption of New Accounting Pronouncements:

Improving Disclosures About Fair Value Measurements: In January 2010, the FASB issued an amendment to Fair Value Measurements and Disclosures, Topic 820, Improving Disclosures About Fair Value Measurements. This amendment requires new disclosures regarding significant transfers in and out of Level 1 and 2 fair value measurements and the reasons for the transfers. This amendment also requires that a reporting entity present separately information about purchases, sales, issuances and settlements, on a gross basis rather than a net basis for activity in Level 3 fair value measurements using significant unobservable inputs. This amendment also clarifies existing disclosures on the level of disaggregation, in that the reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities, and that a reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements for Level 2 and 3. The new disclosures and clarifications of existing disclosures for Accounting Standard Codification (ASC) 820 are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures were effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of ASC 820 on January 1, 2011 did not have a material effect on the Company's consolidated financial statements.

Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses: In July 2010, FASB issued Accounting Standards Update 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses (ASU 2010-20), to address concerns about the sufficiency, transparency, and robustness of credit risk disclosures for finance receivables and the related allowance for credit losses. This ASU requires new and enhanced disclosures at disaggregated levels, specifically defined as "portfolio segments" and "classes". Among other things, the expanded disclosures include roll-forward schedules of the allowance for credit losses and information regarding the credit quality of receivables as of the end of a reporting period. New and enhanced disclosures were required for interim and annual periods ending after December 15, 2010, although the disclosures of reporting period activity were required for interim and annual periods beginning after December 15, 2010. The adoption of the new guidance on January 1, 2011 impacted interim and annual disclosures included in the Company's consolidated financial statements.

No. 2011-01 - Receivables (Topic 310) Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010- 20: In January 2011, FASB issued Accounting Standards Update 2011-01, Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20 (ASU 2011-01). ASU 2011-01 was issued as a result of concerns raised from stakeholders that the introduction of new disclosure requirements (paragraphs 310-10-50-31 through 50-34 of the FASB Accounting Standards Codification) about troubled debt restructurings in one reporting period followed by a change in what constitutes a troubled debt restructuring shortly thereafter would be burdensome for preparers and may not provide financial statement users with useful information.

No. 2011-02 – Receivables (Topic 310) A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring: In April 2011, FASB issued Accounting Standards Update 2011-02, A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring (ASU 2011-02). The ASU provides additional guidance to creditors for evaluating whether a modification or restructuring of a receivable is a troubled debt restructuring ("TDR"). The new guidance requires creditors to evaluate modifications and restructurings of receivables using a more principles-based approach, which may result in more modifications and restructurings being considered TDRs. Additionally, creditors will be required to provide additional disclosures about their TDR activities in accordance with the requirements of ASU 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses, which was deferred by ASU 2011-01 Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20 (ASU 2011-01). The new guidance was effective for the first interim or annual period beginning on or after June 15, 2011, with retrospective application required to the beginning of the annual period of adoption. Disclosure requirements were effective for the first interim and annual period beginning on or after June 15, 2011. The adoption of the new guidance effective July 1, 2011 resulted in an increase in the number of modifications and restructuring deemed to be TDRs and impacted interim and annual disclosures included in the Company's consolidated financial statements.

No. 2011-04 – Fair Value Measurement (Topic 820) Amendments to Achieve Common Fair Value Measurement and Disclosure Requirement in U.S. GAAP and IFRSs: In May 2011, FASB issued Accounting Standards Update 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirement in U.S. GAAP and IFRSs (ASU 2011-04). The new guidance in this ASU results in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs. Certain amendments clarify the FASBs intent about the application of existing fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. These amendments also enhance disclosure requirements surrounding fair value measurement. Most significantly, an entity will be required to disclose additional information regarding Level 3 fair value measurements including quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements. The new guidance is effective for interim and annual periods beginning on or after December 15, 2011. Management is currently working through the guidance to determine the impact, if any, to the consolidated financial statements.

No. 2011-05 – Presentation of Comprehensive Income: In June 2011, FASB issued Accounting Standards Update 2011-05, Presentation of Comprehensive Income (ASU 2011-05). The ASU eliminates the option to report other comprehensive income and its components in the statement of changes in equity. An entity can elect to present the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The ASU does not change the items that must be reported in other comprehensive income, when an item of other comprehensive income must be reclassified to net income, or how earnings per share is calculated or presented. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and must be applied retrospectively. The adoption of the new guidance will impact the presentation of the consolidated financial statements.

No. 2011-08 – Intangibles – Goodwill and Other: In September 2011, FASB issued Accounting Standards Update 2011-08, Intangibles – Goodwill and Other (ASU 2011-08). The ASU allows an entity to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The new guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Management does not expect the adoption of this guidance will have an impact on the consolidated financial statements.

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Participation In The U.S. Treasury Capital Purchase Program

12 Months Ended

Dec. 31, 2011

Participation In The U.S. Treasury Capital Purchase Program [Abstract]

Participation In U.S. Treasury Capital Purchase Program

25. Participation in the U.S. Treasury Capital Purchase Program

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 year ended December 31, 2011, Park recognized a charge to retained earnings of $5.9 million representing the preferred stock dividend and accretion of the discount on the preferred stock, associated with its 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 United States 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.

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Deposits (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Deposits received from executive officers, directors, and their related interests	$ 20.2
Vision Bank [Member]
Deposits received from executive officers, directors, and their related interests	$ 3.2

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Loan Servicing (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Loan Servicing [Abstract]
Serviced sold mortgage loans	$ 1,349	$ 1,471	$ 1,518
Serviced sold mortgage loans with recourse	25	36
Capitalized mortgage servicing rights	1.7	3.1	5.5
Amortization of mortgage servicing rights	$ 2.6	$ 3.2	$ 4.0

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Allowance For Loan Losses (Tables)

12 Months Ended

Dec. 31, 2011

Allowance For Loan Losses [Abstract]

Allowance Calculation At The Segment Level And Adjusted Beginning Balance For The Allowance For Credit Losses

	Year ended December 31, 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	$	11,555	$	24,369	$	70,462	$	30,259	$	6,925	$	5		$	143,575
Transfer of loans at fair value		2		150		63		4		-		-			219
Transfer of allowance to held            for sale (1)		1,184		4,327		1,998		5,450		141		-			13,100
Charge-offs		18,350		23,063		64,166		20,691		7,612		-			133,882
Recoveries		1,402		1,825		1,463		1,719		2,385		4			8,798
Net Charge-offs		16,948		21,238		62,703		18,972		5,227		(4	)		125,084
Provision		23,529		16,885		8,735		9,859		4,273		(9	)		63,272
Ending balance	$	16,950	$	15,539	$	14,433	$	15,692	$	5,830	$	-		$	68,444

(1) Transfer of allowance to held for sale was allocated on a pro-rata basis based on the outstanding balance of the loans held for sale.

Activity In The Allowance For Loan Losses

(In thousands)	2010			2009
Average loans	$	4,642,478		$	4,594,436
Allowance for loan losses:
Beginning balance	$	116,717		$	100,088
Charge-offs:
Commercial, financial and agricultural		8,484			10,047
Commercial real estate		7,748			5,662
Construction real estate		23,308			21,956
Residential real estate		18,401			11,765
Consumer		8,373			9,583
Lease financing		-			9
Total charge-offs		66,314			59,022
Recoveries:
Commercial, financial and agricultural		1,237			1,010
Commercial real estate		850			771
Construction real estate		813			1,322
Residential real estate		1,429			1,723
Consumer		1,763			2,001
Lease financing		-			3
Total recoveries		6,092			6,830
Net charge-offs		60,222			52,192
Provision for loan losses		87,080			68,821
Ending balance	$	143,575		$	116,717
Ratio of net charge-offs to average loans		1.30	%		1.14	%
Ratio of allowance for loan losses to end of period loans		3.03	%		2.52	%

Composition Of The Allowance For Loan Losses

	December 31, 2011
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	5,819		$	4,431		$	3,414		$	2,271		$	-		$	-		$	15,935
Collectively evaluated for impairment		11,131			11,108			11,019			13,421			5,830			-			52,509
Total ending allowance balance	$	16,950		$	15,539		$	14,433		$	15,692		$	5,830		$	-		$	68,444
Loan Balance:
Loans individually evaluated for impairment	$	40,621		$	51,978		$	50,240		$	44,276		$	20		$	-		$	187,135
Loans collectively evaluated for impairment		703,176			1,056,596			167,306			1,584,342			616,485			2,059			4,129,964
Total ending loan balance	$	743,797		$	1,108,574		$	217,546		$	1,628,618		$	616,505		$	2,059		$	4,317,099
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		14.33	%		8.52	%		6.80	%		5.13	%		-	%		-	%		8.52	%
Loans collectively evaluated for impairment		1.58	%		1.05	%		6.59	%		0.85	%		0.95	%		-	%		1.27	%
Total ending loan balance		2.28	%		1.40	%		6.63	%		0.96	%		0.95	%		-	%		1.59	%
Recorded Investment:
Loans individually evaluated for impairment	$	40,621		$	51,978		$	50,240		$	44,276		$	20		$	-		$	187,135
Loans collectively evaluated for impairment		706,297			1,060,831			167,856			1,588,147			619,415			2,102			4,144,648
Total ending loan balance	$	746,918		$	1,112,809		$	218,096		$	1,632,423		$	619,435		$	2,102		$	4,331,783

	December 31, 2010
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	3,028		$	12,652		$	45,312		$	5,912		$	-		$	-		$	66,904
Collectively evaluated for impairment		8,527			11,717			25,150			24,347			6,925			5			76,671
Total ending allowance balance	$	11,555		$	24,369		$	70,462		$	30,259		$	6,925		$	5		$	143,575
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
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		15.77	%		21.84	%		39.90	%		9.82	%		-			-			26.66	%
Loans collectively evaluated for impairment		1.19	%		1.00	%		8.59	%		1.49	%		1.04	%		0.19	%		1.71	%
Total ending loan balance		1.57	%		1.99	%		17.33	%		1.79	%		1.04	%		0.19	%		3.03	%
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

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Capital Ratios (Tables)

12 Months Ended

Dec. 31, 2011

Capital Ratios [Abstract]

Capital Ratios For Park And Each Subsidiary

	2011									2010
	Tier 1 Risk-Based			Total Risk-Based			Leverage			Tier 1 Risk-Based			Total Risk-Based			Leverage
Park National Bank		9.52	%		11.46	%		6.58	%		9.43	%		11.38	%		6.68	%
Vision Bank		23.42	%		24.72	%		15.89	%		11.75	%		13.12	%		9.12	%
Park		14.15	%		16.65	%		9.81	%		13.24	%		15.71	%		9.54	%

Various Measures Of Capital For Park And Each Of PNB And VB

						To Be Adequately Capitalized					To Be Well Capitalized
(In thousands)	Actual Amount		Ratio			Amount		Ratio			Amount		Ratio
At December 31, 2011
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	498,367		11.46	%	$	347,972		8.00	%	$	434,965		10.00	%
VB (1)		115,637		24.72	%		37,427		8.00	%		46,784		10.00	%
Park		812,286		16.65	%		390,270		8.00	%		487,837		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	413,870		9.52	%	$	173,986		4.00	%	$	260,979		6.00	%
VB		109,566		23.42	%		18,714		4.00	%		28,071		6.00	%
Park		690,419		14.15	%		195,135		4.00	%		292,702		6.00	%
Leverage Ratio (to average total assets)
PNB	$	413,870		6.58	%	$	251,691		4.00	%	$	314,614		5.00	%
VB (1)		109,566		15.89	%		27,588		4.00	%		34,485		5.00	%
Park		690,419		9.81	%		281,506		4.00	%		351,882		5.00	%
At December 31, 2010
Total Risk-Based Capital (to risk-weighted assets)
PNB	$	495,668		11.38	%	$	348,452		8.00	%	$	435,565		10.00	%
VB (Restated) (1)(2)		80,305		13.12	%		48,966		8.00	%		61,208		10.00	%
Park (Restated)		786,214		15.71	%		400,307		8.00	%		500,384		10.00	%
Tier 1 Risk-Based Capital (to risk-weighted assets)
PNB	$	410,879		9.43	%	$	174,226		4.00	%	$	261,339		6.00	%
VB (Restated)		71,897		11.75	%		24,483		4.00	%		36,725		6.00	%
Park (Restated)		662,390		13.24	%		200,154		4.00	%		300,230		6.00	%
Leverage Ratio (to average total assets)
PNB	$	410,879		6.68	%	$	246,084		4.00	%	$	307,605		5.00	%
VB (Restated) (1)(2)		71,897		9.12	%		31,520		4.00	%		39,400		5.00	%
Park (Restated)		662,390		9.54	%		277,817		4.00	%		347,271		5.00	%

(1) Park management had agreed to maintain Vision Bank's total risk-based capital at 16.00% and the leverage ratio at 12.00%.

(2) As a result of the financial statement restatement for the year ended December 31, 2010, Vision Bank's December 31, 2010 total risk-based capital ratio declined from 19.55% to 13.12% and its leverage ratio declined from 14.05% to 9.12%.

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Loans (Loans Individually Evaluated For Impairment By Class Of Loans) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	$ 290,908	$ 304,534
Recorded investment	187,135	250,933
Allowance for loan losses allocated	15,935	66,904
Commercial Real Estate [Member] | With No Related Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	58,242	21,526
Recorded investment	41,506	17,170
Commercial Real Estate [Member] | With An Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	12,183	44,789
Recorded investment	10,472	40,760
Allowance for loan losses allocated	4,431	12,652
Consumer [Member] | With No Related Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance
Recorded investment
Allowance for loan losses allocated
Consumer [Member] | With An Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	20
Recorded investment	20
Commercial, Financial And Agricultural [Member] | With No Related Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	23,164	9,347
Recorded investment	18,098	8,891
Commercial, Financial And Agricultural [Member] | With An Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	23,719	11,801
Recorded investment	22,523	10,314
Allowance for loan losses allocated	5,819	3,028
Construction Real Estate - Vision Commercial Land And Development [Member] | With No Related Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	54,032	11,206
Recorded investment	17,786	7,847
Construction Real Estate - Vision Commercial Land And Development [Member] | With An Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	20,775	103,937
Recorded investment	6,542	78,644
Allowance for loan losses allocated	1,540	39,887
Construction Real Estate - Remaining Commercial [Member] | With No Related Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	33,319	12,305
Recorded investment	18,372	11,743
Construction Real Estate - Remaining Commercial [Member] | With An Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	9,711	23,563
Recorded investment	7,540	15,337
Allowance for loan losses allocated	1,874	5,425
Residential Real Estate - Commercial [Member] | With No Related Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	49,341	46,344
Recorded investment	38,686	43,031
Residential Real Estate - Commercial [Member] | With An Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Unpaid principal balance	6,402	19,716
Recorded investment	5,590	17,196
Allowance for loan losses allocated	$ 2,271	$ 5,912

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Assets
Cash and due from banks	$ 137,770	$ 109,058
Money market instruments	19,716	24,722
Cash and cash equivalents	157,486	133,780
Investment securities:
Securities available-for-sale, at fair value (amortized cost of $801,147 and $1,274,258 at December 31, 2011 and 2010, respectively)	820,645	1,297,522
Securities held-to-maturity, at amortized cost (fair value of $834,574 and $686,114 at December 31, 2011 and 2010, respectively)	820,224	673,570
Other investment securities	67,604	68,699
Total investment securities	1,708,473	2,039,791
Total loans	4,317,099	4,732,685
Allowance for loan losses	(68,444)	(143,575)
Net loans	4,248,655	4,589,110
Other assets:
Bank owned life insurance	154,567	146,450
Goodwill	72,334	72,334
Other intangibles	2,509	6,043
Premises and equipment, net	53,741	69,567
Accrued interest receivable	19,697	24,137
Other real estate owned	42,272	41,709
Mortgage loan servicing rights	9,301	10,488
Other	120,748	148,852
Assets held for sale	382,462
Total other assets	857,631	519,580
Total assets	6,972,245	7,282,261
Liabilities and stockholders' equity
Noninterest bearing	995,733	937,719
Interest bearing	3,469,381	4,157,701
Total deposits	4,465,114	5,095,420
Short-term borrowings	263,594	663,669
Long-term debt	823,182	636,733
Subordinated debentures	75,250	75,250
Total borrowings	1,162,026	1,375,652
Other liabilities:
Accrued interest payable	4,916	6,123
Other	61,639	75,358
Liabilities held for sale	536,186
Total other liabilities	602,741	81,481
Total liabilities	6,229,881	6,552,553
Stockholders' equity:
Preferred stock (200,000 shares authorized; 100,000 shares issued with $1,000 per share liquidation preference)	98,146	97,290
Common stock, no par value (20,000,000 shares authorized; 16,151,021 shares issued at December 31, 2011 and 16,151,062 issued at December 31, 2010)	301,202	301,204
Common stock warrants	4,297	4,473
Accumulated other comprehensive income (loss), net	(8,831)	(1,868)
Retained earnings	424,557	406,342
Less: Treasury stock (745,109 shares at December 31, 2011 and 752,128 shares at December 31, 2010)	(77,007)	(77,733)
Total stockholders' equity	742,364	729,708
Total liabilities and stockholders' equity	$ 6,972,245	$ 7,282,261

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Stock Option Plan (Tables)

12 Months Ended

Dec. 31, 2011

Stock Option Plan [Abstract]

Schedule Of Activity In 2005 Plan

	Number		Weighted Average Exercise Price  per Share
January 1, 2011		78,075	$	74.96
Granted		—		—
Exercised		—		—
Forfeited/Expired		4,055		74.96
December 31, 2011		74,020	$	74.96
Exercisable at year end				74,020
Weighted-average remaining contractual life				0.94years
Aggregate intrinsic value			$	0

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Benefit Plans (Asset Allocation For The Pension Plan By Asset Category) (Details)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Defined Benefit Plan Disclosure [Line Items]
Total	100.00%	100.00%
Target Allocation, Equity securities, minimum percentage	50.00%
Target Allocation, Equity securities, maximum percentage	100.00%
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity securities	80.00%	86.00%
Cash And Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Fixed income and cash equivalents	20.00%	14.00%

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Derivative Instruments (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Mar. 31, 2008
Derivative Instruments [Abstract]
Floating-rate subordinated note	$ 25,000,000			$ 25,000,000
Interest rate swap's fair value included in other liabilities	800,000	1,600,000
Number of months for LIBOR basis	3
Number of basis points over LIBOR	200
Hedge ineffectiveness on the cash flow hedge	0	0
Variable rate on subordinated note	2.58%
Fixed rate on interest rate swap paid by Park	6.01%
Fixed rate on the interest rate swap	4.01%
Change in fair value of interest rate swap, Net-of-tax amount	512,000	(98,000)	295,000
Change in fair value of interest rate swap, Tax expense (benefit)	276,000	(53,000)	159,000
Mortgage loan interest rate lock commitments outstanding	17,200,000	14,500,000
Fair value of the derivative instruments	251,000	166,000
Fair value of the swap liability	$ 700,000	$ 60,000

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Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements Of Changes In Stockholders' Equity [Abstract]
Unrealized net holding gain (loss) on cash flow hedge, tax	$ 276	$ (53)	$ 159
Unrealized net holding gain (loss) on securities available-for-sale, tax	(1,318)	(8,078)	(815)
Cash dividends on common stock per share	$ 3.76	$ 3.76	$ 3.76
Change in funded status of pension plan, tax	$ (2,707)	$ (1,370)	$ 3,383

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Benefit Plans (Narrative) (Details) (USD $)	0 Months Ended	1 Months Ended		12 Months Ended
	Nov. 17, 2009	Jan. 31, 2012	Jan. 31, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Sep. 30, 2010
Defined Benefit Plan Disclosure [Line Items]
Deferred tax liabilities		$ 15,900,000		$ 14,300,000			$ 2,000,000
Company contributions			14,000,000	14,000,000	2,000,000
Company contribution deductible on the 2010 tax return			12,400,000
Company contribution deductible on the 2011 tax return		14,300,000	1,600,000
Company contributions deductible on the 2012 tax return		1,600,000
Expected long-term return on plan assets				7.75%	7.75%
Defined Benefit Plan, Actual Return on Plan Assets				1,813,000	11,296,000
Accumulated benefit obligation for the pension plan				71,400,000	63,500,000
Common share purchased under pension plan, shares	115,800
Common share purchased under pension plan, value	7,000,000
Common share purchased under pension plan, value per share	$ 60.45
Fair value, pension plan common shares held, shares				115,800	115,800
Fair value of common shares held by pension plan				7,500,000	8,400,000
Fair value of common shares held by pension plan, per share				$ 65.06	$ 72.67
Estimated prior service costs amortized from accumulated other comprehensive income into net periodic benefit cost				(2,000,000)
Cash balance in bank				2,100,000
Market value of pension plan assets				96,600,000	85,500,000
Benefit expense				1,100,000	1,000,000	1,500,000
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected long-term return on plan assets				7.75%	7.75%
Estimated prior service costs amortized from accumulated other comprehensive income into net periodic benefit cost				20,000,000
S&P 500 Index [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected long-term return on plan assets				7.75%
Supplemental Executive Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefit expense				600,000	500,000	500,000
Accrued benefit cost				7,200,000	7,200,000
Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity investments				83,200,000	73,500,000
Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity investments				$ 13,400,000	$ 12,000,000

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Summary Of Significant Accounting Policies (Schedule Of Core Deposit Intangibles Amortization Expense) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Goodwill And Intangible Assets [Abstract]
2012	$ 2,172
2013	337
Total	$ 2,509

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Benefit Plans (Balances Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Benefit Plans [Abstract]
Prior service cost	$ (74)	$ (93)
Net actuarial loss	(32,163)	(24,410)
Total	(32,237)	(24,503)
Deferred taxes	11,283	8,576
Accumulated other comprehensive loss	$ (20,954)	$ (15,927)

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Summary Of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

Summary Of Significant Accounting Policies [Abstract]

Principles Of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of Park National Corporation and its subsidiaries ("Park", the "Company" or the "Corporation"). Material intercompany accounts and transactions have been eliminated.

Use Of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management has identified the allowance for loan losses, accounting for Other Real Estate Owned ("OREO") and accounting for goodwill as significant estimates.

Reclassifications

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year presentation.

Subsequent Events

Subsequent Events

Management has evaluated events occurring subsequent to the balance sheet date through February 29, 2012, determining no events require additional disclosure in these consolidated financial statements, with the exception of the subsequent event discussed in Note 27 of these Notes to Consolidated Financial Statements.

Restrictions On Cash And Due From Banks

Restrictions on Cash and Due from Banks

The Corporation's two bank subsidiaries are required to maintain average reserve balances with the Federal Reserve Bank. The average required reserve balance was approximately $38.1 million at December 31, 2011 and $37.8 million at December 31, 2010. No other compensating balance arrangements were in existence at December 31, 2011.

Investment Securities

Investment Securities

Investment securities are classified upon acquisition into one of three categories: held-to-maturity, available-for-sale, or trading (see Note 4 of these Notes to Consolidated Financial Statements).

Held-to-maturity securities are those securities that the Corporation has the positive intent and ability to hold to maturity and are recorded at amortized cost. Available-for-sale securities are those securities that would be available to be sold in the future in response to the Corporation's liquidity needs, changes in market interest rates, and asset-liability management strategies, among other reasons. Available-for-sale securities are reported at fair value, with unrealized holding gains and losses excluded from earnings but included in other comprehensive income, net of applicable taxes. The Corporation did not hold any trading securities during any period presented.

Available-for-sale and held-to-maturity securities are evaluated quarterly for potential other-than-temporary impairment. Management considers the facts related to each security including the nature of the security, the amount and duration of the loss, the credit quality of the issuer, the expectations for that security's performance and whether Park intends to sell, or it is more likely than not to be required to sell, a security in an unrealized loss position before recovery of it's amortized cost basis. Declines in equity securities that are considered to be other-than-temporary are recorded as a charge to earnings in the Consolidated Statements of Income. Declines in debt securities that are considered to be other-than-temporary are separated into (1) the amount of the total impairment related to credit loss and (2) the amount of the total impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total impairment related to all other factors is recognized in other comprehensive income.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated.

Gains and losses realized on the sale of investment securities are recorded on the trade date and determined using the specific identification basis.

Federal Home Loan Bank (FHLB) And Federal Reserve Bank (FRB) Stock

Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) Stock

Park's two separately chartered banks, The Park National Bank (PNB) and Vision Bank ("VB" or "Vision"), are members of the FHLB. Additionally, PNB is a member of the FRB. Members are required to own a certain amount of stock based on their level of borrowings and other factors and may invest in additional amounts. FHLB and FRB stock are carried at cost, classified as restricted securities and are carried at their redemption value. Both cash and stock dividends are reported as income.

Bank Owned Life Insurance

Bank Owned Life Insurance

Park has purchased life insurance policies on directors and certain key officers. Bank owned life insurance is recorded at its cash surrender value (or the amount that can be realized).

Mortgage Loans Held For Sale

Mortgage Loans Held for Sale

Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale were $11.5 million and $8.3 million at December 31, 2011 and 2010, respectively. These amounts are included in loans on the Consolidated Balance Sheets.

Mortgage Banking Derivatives

Mortgage Banking Derivatives

Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on sales of loans.

Loans

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at their outstanding principal balances adjusted for any charge-offs, any deferred fees or costs on originated loans, and any unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan origination fees and costs over the loan term. Commercial loans include: (1) commercial, financial and agricultural loans; (2) commercial real estate loans; (3) those commercial loans in the real estate construction loan segment; and (4) those commercial loans in the residential real estate loan segment. Consumer loans include: (1) mortgage and installment loans included in the real estate construction segment; (2) mortgage, home equity lines of credit (HELOC), and installment loans included in the residential real estate segment; and (3) all loans included in the consumer segment. Generally, commercial loans are placed on nonaccrual status at 90 days past due and consumer and residential mortgage loans are placed on nonaccrual status at 120 days past due. Accrued interest on these loans is considered a loss, unless the loan is well-secured and in the process of collection. Commercial loans placed on nonaccrual status are considered impaired (See Note 5 of these Notes to Consolidated Financial Statements). For loans which are on nonaccrual status, it is Park's policy to reverse interest previously accrued on the loans against interest income. Interest on such loans is thereafter recorded on a cash basis and is included in earnings only when cash is actually received. Park's charge-off policy for commercial loans requires management to establish a specific reserve or record a charge-off as soon as it is apparent that the borrower is troubled and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing the loan. The Company's charge-off policy for consumer loans is dependent on the class of the loan. Residential mortgage loans and HELOC are typically charged down to the value of the collateral, less estimated selling costs at 180 days past due. The charge-off policy for other consumer loans, primarily installment loans, requires a monthly review of delinquent loans and a complete charge-off for any account that reaches 120 days past due.

The delinquency status of a loan is based on contractual terms and not on how recently payments have been received. Loans are removed from nonaccrual status when loan payments have been received to cure the delinquency status and the loan is deemed to be well-secured by management.

A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below:

Commercial, financial and agricultural:

Commercial, financial and agricultural loans are made for a wide variety of general corporate purposes, including financing for commercial and industrial businesses, financing for equipment, inventories and accounts receivable, acquisition financing and commercial leasing. The term of each commercial loan varies by its purpose. Repayment terms are structured such that commercial loans will be repaid within the economic useful life of the underlying asset. The commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in (i) the 28 Ohio counties and one Kentucky county where Park National Bank operates and (ii) the five Florida counties and one Alabama county where Vision Bank operates. The primary industries represented by these customers include manufacturing, retail trade, health care and other services.

Commercial real estate: Commercial real estate loans ("CRE loans") include mortgage loans to developers and owners of commercial real estate. The lending policy for CRE loans is designed to address the unique risk attributes of CRE lending. The collateral for these CRE loans is the underlying commercial real estate. Each subsidiary bank generally requires that the CRE loan amount be no more than 85% of the purchase price or the appraised value of the commercial real estate securing the CRE loan, whichever is less. CRE loans made for each subsidiary bank's portfolio generally have a variable interest rate. A CRE loan may be made with a fixed interest rate for a term generally not exceeding five years.

Construction real estate: The Company defines construction loans as both commercial construction loans and residential construction loans where the loan proceeds are used exclusively for the improvement of real estate as to which the Company holds a mortgage. Construction loans may be in the form of a permanent loan or short-term construction loan, depending on the needs of the individual borrower. Generally, the permanent construction loans have a variable interest rate although a permanent construction loan may be made with a fixed interest rate for a term generally not exceeding five years. Short-term construction loans are made with variable interest rates. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property's value at completion of construction and the estimated cost (including interest) of construction. If the estimate of construction cost proves to be inaccurate, the subsidiary bank making the loan may be required to advance funds beyond the amount originally committed to permit completion of the project. If the estimate of value proves inaccurate, the subsidiary bank may be confronted, at or prior to the maturity of the loan, with a project having a value insufficient to assure full repayment, should the borrower default. In the event a default on a construction loan occurs and foreclosure follows, the subsidiary bank must take control of the project and attempt either to arrange for completion of construction or to dispose of the unfinished project. Additional risk exists with respect to loans made to developers who do not have a buyer for the property, as the developer may lack funds to pay the loan if the property is not sold upon completion. Park's subsidiary banks attempt to reduce such risks on loans to developers by requiring personal guarantees and reviewing current personal financial statements and tax returns as well as other projects undertaken by the developer.

Residential real estate: The Company defines residential real estate loans as first mortgages on individuals' primary residence or second mortgages of individuals' primary residence in the form of home equity lines of credit or installment loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and an appropriately appraised value of the real estate securing the loan. Each subsidiary bank generally requires that the residential real estate loan amount be no more than 80% of the purchase price or the appraised value of the real estate securing the loan, whichever is less, unless private mortgage insurance is obtained by the borrower. Loans made for each subsidiary bank's portfolio in this lending category are generally adjustable rate, fully amortized mortgages. The rates used are generally fully-indexed rates. Park generally does not price residential loans using low introductory "teaser" rates. Home equity lines of credit are generally made as second mortgages by Park's subsidiary banks. The maximum amount of a home equity line of credit is generally limited to 85% of the appraised value of the property less the balance of the first mortgage.

Consumer: The Company originates direct and indirect consumer loans, primarily automobile loans and home equity based credit cards to customers and prospective customers in its primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances.

Allowance For Loan Losses

Allowance for Loan Losses

The allowance for loan losses is that amount believed adequate to absorb probable incurred credit losses in the loan portfolio based on management's evaluation of various factors. The determination of the allowance requires significant estimates, including the timing and amounts of expected cash flows on impaired loans, consideration of current economic conditions, and historical loss experience pertaining to pools of homogeneous loans, all of which may be susceptible to change. The allowance is increased through a provision for loan losses that is charged to earnings based on management's quarterly evaluation of the factors previously mentioned and is reduced by charge-offs, net of recoveries.

The allowance for loan losses includes both (1) an estimate of loss based on historical loss experience within both commercial and consumer loan categories with similar characteristics ("statistical allocation") and (2) an estimate of loss based on an impairment analysis of each commercial loan that is considered to be impaired ("specific allocation").

In calculating the allowance for loan losses, management believes it is appropriate to utilize historical loss rates that are comparable to the current period being analyzed. For the historical loss factor at December 31, 2011, the Company utilized an annual loss rate ("historical loss experience"), calculated based on an average of the net charge-offs and the annual change in specific reserves for impaired commercial loans, experienced during 2009, 2010 and 2011 within the individual segments of the commercial and consumer loan categories. Management believes the 36-month historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. The loss factor applied to Park's consumer portfolio is based on the historical loss experience over the past 36 months, plus an additional judgmental reserve, increasing the total allowance for loan loss coverage in the consumer portfolio to approximately 1.38 years of historical loss. The loss factor applied to Park's commercial portfolio is based on the historical loss experience over the past 36 months, plus additional reserves for consideration of (1) a loss emergence period factor, (2) a loss migration factor and (3) a judgmental or environmental loss factor. These additional reserves increase the total allowance for loan loss coverage in the commercial portfolio to approximately 2.8 years of historical loss. Park's commercial loans are individually risk graded. If loan downgrades occur, the probability of default increases, and accordingly management allocates a higher percentage reserve to those accruing commercial loans graded special mention and substandard.

The judgmental increases discussed above incorporates management's evaluation of the impact of environmental qualitative factors which pose additional risks and assigns a component of the allowance for loan losses in consideration of these factors. Such environmental factors include: national and local economic trends and conditions; experience, ability and depth of lending management and staff; effects of any changes in lending policies and procedures; and levels of, and trends in, consumer bankruptcies, delinquencies, impaired loans and charge-offs and recoveries.

U.S. generally accepted accounting principles ("GAAP") require a specific allocation to be established as a component of the allowance for loan losses for certain loans when it is probable that all amounts due pursuant to the contractual terms of the loans will not be collected, and the recorded investment in the loans exceeds their measure of impairment. Management considers the following related to commercial loans when determining if a loan should be considered impaired: (1) current debt service coverage levels of the borrowing entity; (2) payment history over the most recent 12-month period; (3) other signs of deterioration in the borrower's financial situation, such as changes in beacon scores; and (4) consideration of the current collateral supporting the loan.The recorded investment is the carrying balance of the loan, plus the accrued interest receivable, both as of the end of the year. Impairment is measured using either the present value of expected future cash flows based upon the initial effective interest rate on the loan, the observable market price of the loan or the fair value of the collateral, if the loan is collateral dependent.

Troubled Debt Restructuring (TDRs)

Troubled Debt Restructuring (TDRs)

Management classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the company's internal underwriting policy. Management's policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan's effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral.

Income Recognition

Income Recognition

Income earned by the Corporation and its subsidiaries is recognized on the accrual basis of accounting, except for nonaccrual loans as previously discussed, and late charges on loans which are recognized as income when they are collected.

Premises And Equipment

Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is generally provided on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the remaining lease period or the estimated useful lives of the improvements. Upon the sale or other disposal of an asset, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Maintenance and repairs are charged to expense as incurred while renewals and improvements that extend the useful life of an asset are capitalized. Premises and equipment is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

The range of depreciable lives over which premises and equipment are being depreciated are:

Buildings	5 to 50 Years
Equipment, furniture and fixtures	3 to 20 Years
Leasehold improvements	1 to 10 Years

Buildings that are currently placed in service are depreciated over 30 years. Equipment, furniture and fixtures that are currently placed in service are depreciated over 3 to 12 years. Leasehold improvements are depreciated over the lives of the related leases which range from 1 to 10 years.

Other Real Estate Owned (OREO)

Other Real Estate Owned (OREO)

OREO is recorded at fair value less anticipated selling costs (net realizable value) and consists of property acquired through foreclosure and real estate held for sale. If the net realizable value is below the carrying value of the loan at the date of transfer, the difference is charged to the allowance for loan losses. Subsequent declines in the value of real estate are classified as OREO devaluations, are reported as adjustments to the carrying amount of OREO and are expensed within "other income". In certain circumstances where management believes the devaluation may not be permanent in nature, Park utilizes a valuation allowance to record OREO devaluations, which is also expensed through "other income". Costs relating to development and improvement of such properties are capitalized (not in excess of fair value less estimated costs to sell) and costs relating to holding the properties are charged to expense.

Mortgage Loan Servicing Rights

Mortgage Loan Servicing Rights

When Park sells mortgage loans with servicing rights retained, servicing rights are recorded at an amount not to exceed fair value with the income statement effect recorded in gains on sale of loans. Capitalized servicing rights are amortized in proportion to and over the period of estimated future servicing income of the underlying loan.

Mortgage servicing rights are assessed for impairment periodically, based on fair value, with any impairment recognized through a valuation allowance. The fair value of mortgage servicing rights is determined by discounting estimated future cash flows from the servicing assets, using market discount rates and expected future prepayment rates. In order to calculate fair value, the sold loan portfolio is stratified into homogeneous pools of like categories. (See Note 20 of these Notes to Consolidated Financial Statements.)

Fees received for servicing mortgage loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in income as loan payments are received. The cost of servicing loans is charged to expense as incurred.

Goodwill And Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over net identifiable tangible and intangible assets acquired in a purchase business combination. Other intangible assets represent purchased assets that have no physical property but represent some future economic benefit to their owner and are capable of being sold or exchanged on their own or in combination with a related asset or liability.

Goodwill and indefinite-lived intangible assets are not amortized to expense, but are subject to impairment tests annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets with definitive useful lives (such as core deposit intangibles) are amortized to expense over their estimated useful lives.

Management considers several factors when performing the annual impairment tests on goodwill. The factors considered include the operating results for the particular Park segment for the past year and the operating results budgeted for the current year (including multi-year projections), the purchase prices being paid for financial institutions in the markets served by the Park segment, the deposit and loan totals of the Park segment and the economic conditions in the markets served by the Park segment.

The following table reflects the activity in goodwill and other intangible assets for the years 2011, 2010 and 2009.

			Core Deposit
(In thousands)	Goodwill		Intangibles			Total
December 31, 2008	$	72,334	$	13,211		$	85,545
Amortization		—		(3,746	)		(3,746	)
December 31, 2009	$	72,334	$	9,465		$	81,799
Amortization		—		(3,422	)		(3,422	)
December 31, 2010	$	72,334	$	6,043		$	78,377
Amortization		—		(3,534	)		(3,534	)
December 31, 2011	$	72,334	$	2,509		$	74,843

GAAP requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired, by comparing the fair value of such goodwill to its recorded or carrying amount. If the carrying amount of the goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess.

Park typically evaluates goodwill for impairment on April 1 of each year, with financial data as of March 31. Based on the analysis performed as of April 1, 2011, the Company determined that goodwill for Park's Ohio-based bank (The Park National Bank) was not impaired.

Goodwill and other intangible assets (as shown on the Consolidated Balance Sheets) totaled $74.8 million at December 31, 2011, $78.4 million at December 31, 2010 and $81.8 million at December 31, 2009.

The core deposit intangibles are being amortized to expense principally on the straight-line method, over periods ranging from six to ten years. The amortization period for the core deposit intangibles related to Vision Bank was accelerated due to the pending acquisition of Vision Bank branches by Centennial Bank. (See Note3 of these Notes to Consolidated Financial Statements for details on the Vision Bank branch sale.) Core deposit intangible amortization expense was $3.5 million in 2011, $3.4 million in 2010 and $3.7 million in 2009.

The accumulated amortization of core deposit intangibles was $19.6 million as of December 31, 2011 and $16.1 million at December 31, 2010. The expected core deposit intangible amortization expense for each of the next five years is as follows:

(In thousands)
2012	$	2,172
2013		337
2014		-
2015		-
2016		-
Total	$	2,509

Consolidated Statement Of Cash Flows

Consolidated Statement of Cash Flows

Cash and cash equivalents include cash and cash items, amounts due from banks and money market instruments. Generally money market instruments are purchased and sold for one-day periods.

Net cash provided by operating activities reflects cash payments as follows:

December 31,
(In thousands)	2011		2010		2009
Interest paid on deposits and other borrowings	$	59,552	$	74,680	$	96,204
Income taxes paid		17,700		24,600		30,660

Non-cash Items

Non-cash Items

The cash flow statement for the year ended December 31, 2011 was prepared with the assets and liabilities held for sale (refer to Note 3) included within each of their respective categories (loans, fixed assets, other assets, deposits and other liabilities).

Non-cash items included in cash provided by operating activities:

December 31,
(In thousands)	2011			2010		2009
Transfers to OREO		$	36,209	$	35,507	$	35,902

Loss Contingencies And Guarantees

Loss Contingencies and Guarantees

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.

Income Taxes

Income Taxes

The Corporation accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. To the extent that Park does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is recorded. All positive and negative evidence is reviewed when determining how much of a valuation allowance is recognized on a quarterly basis. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is "more-likely-than-not" that the tax position would be sustained in a tax examination being presumed to occur. The benefit recognized for a tax position that meets the "more-likely-than-not" criteria is measured based on the largest benefit that is more than 50 percent likely to be realized, taking into consideration the amounts and probabilities of the outcome upon settlement. For tax positions not meeting the "more-likely-than-not" test, no tax benefit is recorded. Park recognizes any interest and penalties related to income tax matters in income tax expense.

Preferred Stock

Preferred Stock

On December 23, 2008, Park issued $100 million of Senior Preferred Shares to the U.S. Department of Treasury (the "Treasury") under the Capital Purchase Program (CPP), consisting of 100,000 shares, each with a liquidation preference of $1,000 per share. In addition, on December 23, 2008, Park issued a warrant to the Treasury to purchase 227,376 common shares. These preferred shares and related warrant are considered permanent equity for accounting purposes. GAAP requires management to allocate the proceeds from the issuance of the preferred stock between the preferred stock and related warrant. The terms of the preferred shares require management to pay a cumulative dividend at the rate of 5 percent per annum until February 14, 2014 and 9 percent thereafter. Management determined that the 5 percent dividend rate is below market value; therefore, the fair value of the preferred shares would be less than the $100 million in proceeds. Management determined that a reasonable market discount rate is 12 percent for the fair value of preferred shares. Management used the Black-Scholes model for calculating the fair value of the warrant (and related common shares). The allocation between the preferred shares and warrant at December 23, 2008, the date of issuance, was $95.7 million and $4.3 million, respectively. The discount on the preferred shares of $4.3 million is being accreted through retained earnings over a 60 month period.

Treasury Stock

Treasury Stock

The purchase of Park's common stock is recorded at cost. At the date of retirement or subsequent reissuance, the treasury stock account is reduced by the weighted average cost of the common shares retired or reissued.

Comprehensive Income

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, changes in the funded status of the Company's Defined Benefit Pension Plan, and the unrealized net holding gains and losses on the cash flow hedge, which are also recognized as separate components of equity.

Stock Based Compensation

Stock Based Compensation

Compensation cost is recognized for stock options and stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of Park's common stock at the date of grant is used for stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Park did not grant any stock options during 2011, 2010 or 2009. No stock options vested in 2011, 2010 or 2009. Park granted 7,020 shares of common stock to its directors in each of 2011, 2010 and 2009, respectively.

Derivative Instruments

Derivative Instruments

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company's intentions and belief as to likely effectiveness as a hedge. These three types are: (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"); (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"); or (3) an instrument with no hedging designation ("stand-alone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the Consolidated Balance Sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods in which the hedged transactions will affect earnings.

Fair Value Measurement

Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 21 of these Notes to Consolidated Financial Statements. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Transfers Of Financial Assets

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Retirement Plans

Retirement Plans

Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service.

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per common share is net income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options, warrants and convertible securities. Earnings and dividends per common share are restated for any stock splits and stock dividends through the date of issuance of the consolidated financial statements.

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Subsequent Event - Vision Bank Closing (Details) (USD $)	12 Months Ended			0 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Feb. 16, 2012 Vision Bank [Member]
Performing loans	$ 23,000,000			$ 354,000,000
Deposit	4,465,114,000	5,095,420,000	5,188,052,000	520,000,000
Premises and equipment, net	53,741,000	69,567,000		12,500,000
Other miscellaneous assets and liabilities				27,900,000
Performing loans at fair value				22,000,000
Non-performing loans at fair value				88,000,000
Pretax gain on sale of business				$ 22,000,000

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Investment Securities (Schedule Of Investment Securities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Schedule of Investments [Line Items]
Securities Available-for-Sale, Amortized Cost	$ 801,147	$ 1,274,258
Securities Available-for-Sale, Gross Unrealized Holdings Gains	19,530	34,740
Securities Available-for-Sale, Gross Unrealized Holding Losses	32	11,476
Securities Available-for-Sale, Estimated Fair Value	820,645	1,297,522
Securities Held-to-Maturity, Amortized Cost	820,224	673,570
Securities Held-to-Maturity, Gross Unrealized Holding Gains	14,382	17,164
Securities Held-to-Maturity, Gross Unrecognized Holding Losses	32	4,620
Securities Held-to-Maturity, Estimated Fair Value	834,574	686,114
Obligations Of U.S. Treasury And Other U.S. Government Sponsored Entities [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Amortized Cost	370,043	272,301
Securities Available-for-Sale, Gross Unrealized Holdings Gains	1,614	2,968
Securities Available-for-Sale, Gross Unrealized Holding Losses		1,956
Securities Available-for-Sale, Estimated Fair Value	371,657	273,313
Obligations Of States And Political Subdivisions [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Amortized Cost	2,616	10,815
Securities Available-for-Sale, Gross Unrealized Holdings Gains	44	281
Securities Available-for-Sale, Gross Unrealized Holding Losses		52
Securities Available-for-Sale, Estimated Fair Value	2,660	11,044
Securities Held-to-Maturity, Amortized Cost	1,992	3,167
Securities Held-to-Maturity, Gross Unrealized Holding Gains	5	7
Securities Held-to-Maturity, Gross Unrecognized Holding Losses
Securities Held-to-Maturity, Estimated Fair Value	1,997	3,174
U.S. Government Sponsored Entities Asset-Backed Securities [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Amortized Cost	427,300	990,204
Securities Available-for-Sale, Gross Unrealized Holdings Gains	16,995	30,633
Securities Available-for-Sale, Gross Unrealized Holding Losses		9,425
Securities Available-for-Sale, Estimated Fair Value	444,295	1,011,412
Securities Held-to-Maturity, Amortized Cost	818,232	670,403
Securities Held-to-Maturity, Gross Unrealized Holding Gains	14,377	17,157
Securities Held-to-Maturity, Gross Unrecognized Holding Losses	32	4,620
Securities Held-to-Maturity, Estimated Fair Value	832,577	682,940
Other Equity Securities [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Amortized Cost	1,188	938
Securities Available-for-Sale, Gross Unrealized Holdings Gains	877	858
Securities Available-for-Sale, Gross Unrealized Holding Losses	32	43
Securities Available-for-Sale, Estimated Fair Value	$ 2,033	$ 1,753

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Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2011

Other Comprehensive Income (Loss) [Abstract]

Other Comprehensive Income (Loss)

15. Other Comprehensive Income (Loss)

Other comprehensive income (loss) components and related taxes are shown in the following table for the years ended December 31, 2011, 2010 and 2009.

Year ended December 31, (In thousands)	Before-Tax Amount			Tax Effect			Net-of-Tax Amount
2011:
Unrealized gains on available-for-sale securities	$	25,063		$	8,772		$	16,291
Reclassification adjustment for gains realized in net income		(28,829	)		(10,090	)		(18,739	)
Unrealized net holding gain on cash flow hedge		788			276			512
Changes in pension plan assets and benefit obligations recognized in other comprehensive income		(7,734	)		(2,707	)		(5,027	)
Other comprehensive loss	$	(10,712	)	$	(3,749	)	$	(6,963	)
2010:
Unrealized losses on available-for-sale securities	$	(11,218	)	$	(3,926	)	$	(7,292	)
Reclassification adjustment for gains realized in net income		(11,864	)		(4,152	)		(7,712	)
Unrealized net holding loss on cash flow hedge		(151	)		(53	)		(98	)
Changes in pension plan assets and benefit obligations recognized in other comprehensive income		(3,734	)		(1,307	)		(2,427	)
Other comprehensive loss	$	(26,967	)	$	(9,438	)	$	(17,529	)
2009:
Unrealized gains on available-for-sale securities	$	5,012		$	1,754		$	3,258
Reclassification adjustment for gains realized in net income		(7,340	)		(2,569	)		(4,771	)
Unrealized net holding gain on cash flow hedge		454			159			295
Changes in pension plan assets and benefit obligations recognized in other comprehensive income		9,666			3,383			6,283
Other comprehensive income	$	7,792		$	2,727		$	5,065

The ending balance of each component of accumulated other comprehensive income (loss) was as follows as of December 31:

(In thousands)	2011			2010
Pension benefit adjustments	$	(20,954	)	$	(15,927	)
Unrealized net holding loss on cash flow hedge		(550	)		(1,062	)
Unrealized net holding gains on AFS securities		12,673			15,121
Total accumulated other comprehensive income (loss)	$	(8,831	)	$	(1,868	)

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Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2011

Summary Of Significant Accounting Policies [Abstract]

Depreciable Lives Over Which Premises And Equipment Are Depreciated

Buildings	5 to 50 Years
Equipment, furniture and fixtures	3 to 20 Years
Leasehold improvements	1 to 10 Years

Activity In Goodwill And Other Intangible Assets

			Core Deposit
(In thousands)	Goodwill		Intangibles			Total
December 31, 2008	$	72,334	$	13,211		$	85,545
Amortization		—		(3,746	)		(3,746	)
December 31, 2009	$	72,334	$	9,465		$	81,799
Amortization		—		(3,422	)		(3,422	)
December 31, 2010	$	72,334	$	6,043		$	78,377
Amortization		—		(3,534	)		(3,534	)
December 31, 2011	$	72,334	$	2,509		$	74,843

Expected Core Deposit Intangibles Amortization Expense

(In thousands)
2012	$	2,172
2013		337
2014		-
2015		-
2016		-
Total	$	2,509

Net Cash Provided By Operating Activities

December 31,
(In thousands)	2011		2010		2009
Interest paid on deposits and other borrowings	$	59,552	$	74,680	$	96,204
Income taxes paid		17,700		24,600		30,660

Non-Cash Items Included In Cash Provided By Operating Activities

December 31,
(In thousands)	2011			2010		2009
Transfers to OREO		$	36,209	$	35,507	$	35,902

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Benefit Plans (Estimated Future Pension Benefit Payments) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Benefit Plans [Abstract]
2012	$ 5,535
2013	4,999
2014	5,543
2015	6,259
2016	6,284
2017-2021	37,823
Total	$ 66,443

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Segment Information (Schedule Of Operating Results By Segment) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010	Dec. 31, 2009
Segment Reporting Information [Line Items]
Net interest income	$ 273,234		$ 274,044	$ 273,491
Provision for loan losses	63,272		87,080	68,821
Other income (loss)	94,910		74,880	81,190
Other expense	188,317		187,107	188,725
Income (loss) before taxes	116,555		74,737	97,135
Income before income taxes	116,555		74,737	97,135
Income taxes (benefit)	34,415		16,636	22,943
Net income (loss)	82,140		58,101	74,192
Assets	6,972,245		7,282,261	7,040,329
Assets held for sale	382,462	[1]
Loans	4,317,099		4,732,685	4,640,432
Total loans	4,317,099		4,732,685	4,640,432
Deposits	4,465,114		5,095,420	5,188,052
Liabilities held for sale	536,186	[2]
PNB [Member]
Segment Reporting Information [Line Items]
Net interest income	236,282		237,281	236,107
Provision for loan losses	30,220		23,474	22,339
Other income (loss)	90,982		80,512	82,770
Other expense	146,235		144,051	148,048
Income (loss) before taxes	150,809		150,268	148,490
Income before income taxes	150,809		150,268	148,490
Income taxes (benefit)	43,958		47,320	47,032
Net income (loss)	106,851		102,948	101,458
Assets	6,281,747		6,495,558	6,182,257
Loans	4,172,424		4,074,775	3,950,599
Total loans	4,172,424		4,074,775	3,950,599
Deposits	4,611,646		4,622,693	4,670,113
VB [Member]
Segment Reporting Information [Line Items]
Net interest income	27,078		27,867	25,634
Provision for loan losses	31,052		61,407	44,430
Other income (loss)	6,617		(6,024)	(2,047)
Other expense	31,379		31,623	28,091
Income (loss) before taxes	(28,736)		(71,187)	(48,934)
Income before income taxes	(28,736)		(71,187)	(48,934)
Income taxes (benefit)	(6,210)		(25,773)	(18,824)
Net income (loss)	(22,526)		(45,414)	(30,110)
Assets	650,935		791,945	897,981
Assets held for sale	382,462	[1]
Loans	123,883		640,580	677,018
Total loans	123,883		640,580	677,018
Deposits	32		633,432	688,900
Liabilities held for sale	536,186	[2]
All Other [Member]
Segment Reporting Information [Line Items]
Net interest income	9,874		8,896	11,750
Provision for loan losses	2,000		2,199	2,052
Other income (loss)	(2,689)		392	467
Other expense	10,703		11,433	12,586
Income (loss) before taxes	(5,518)		(4,344)	(2,421)
Income before income taxes	(5,518)		(4,344)	(2,421)
Income taxes (benefit)	(3,333)		(4,911)	(5,265)
Net income (loss)	(2,185)		567	2,844
Assets	39,563		(5,242)	(39,909)
Loans	20,792		17,330	12,815
Total loans	20,792		17,330	12,815
Deposits	$ (146,564)		$ (160,705)	$ (170,961)

[1] The assets held for sale represent the loans and other assets at Vision Bank that will be sold in the first quarter of 2012.

[2] The liabilities held for sale represent the deposits and other liabilities at Vision Bank that will be sold in the first quarter of 2012.

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Dividend Restrictions

12 Months Ended

Dec. 31, 2011

Dividend Restrictions [Abstract]

Dividend Restrictions

17. Dividend Restrictions

Bank regulators limit the amount of dividends a subsidiary bank can declare in any calendar year without obtaining prior approval. At December 31, 2011, approximately $51.3 million of the total stockholders' equity of PNB was available for the payment of dividends to the Corporation, without approval by the applicable regulatory authorities. Vision Bank is currently not permitted to pay dividends to the Corporation.

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Loans (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Financing Receivable, Recorded Investment [Line Items]
Loans net of deferred origination fees, costs and unearned income	$ 6,800,000	$ 6,700,000
Overdrawn deposit account reclassified to loans	3,600,000	2,600,000
Partial charge-offs on impaired loans	103,800,000	53,600,000
Recorded investment, related to loans	52,700,000	162,300,000
Average balance of financing receivable, individually evaluated for impairment	214,000,000	210,400,000	184,700,000
Recognized net reversal to interest income		(1,300,000)	(1,300,000)
TDRs included in nonaccrual loan totals	100,400,000	80,700,000
TDRs included in accruing loan totals	28,700,000
Commitments to lend additional funds to borrowers whose terms had been modified in a TDR	4,000,000	434,000
Nonaccrual TDRs considered current	79,900,000	50,300,000
Specific reserves related to troubled debt restructuring	9,100,000	9,400,000
Other real estate owned	42,300,000	41,700,000
Recorded investment	187,135,000	250,933,000
New loan made to executive officers and directors	4,900,000	2,100,000
Repayment of loan	5,500,000	5,300,000
Park National Bank [Member]
Financing Receivable, Recorded Investment [Line Items]
Recognized net reversal to interest income		948,000,000	1,800,000
Vision Bank [Member]
Financing Receivable, Recorded Investment [Line Items]
Recognized net reversal to interest income		(2,200,000)	(3,100,000)
With No Related Allowance Recorded [Member]
Financing Receivable, Recorded Investment [Line Items]
Partial charge-offs on impaired loans	83,700,000	12,000,000
With An Allowance Recorded [Member]
Financing Receivable, Recorded Investment [Line Items]
Partial charge-offs on impaired loans	20,100,000	41,600,000
Allowance For Loans And Leases Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Allowance for loans individually evaluated for impairment	15,900,000	66,900,000
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Modified consumer loans	19,600,000
Consumer [Member] | With No Related Allowance Recorded [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded investment
Consumer [Member] | With An Allowance Recorded [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded investment	20,000
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Modified substandard commercial loans, total recorded investment	13,600,000
Executive Officers And Directors [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded investment	$ 53,000,000	$ 53,600,000

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Other Comprehensive Income (Loss) (Component Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Other Comprehensive Income (Loss) [Abstract]
Pension benefit adjustments	$ (20,954)	$ (15,927)
Unrealized net holding loss on cash flow hedge	(550)	(1,062)
Unrealized net holding gains on AFS Securities	12,673	15,121
Total accumulated other comprehensive income (loss)	$ (8,831)	$ (1,868)

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Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating activities:
Net income	$ 82,140	$ 58,101	$ 74,192
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	63,272	87,080	68,821
Amortization of loan fees and costs, net	2,871	4,179	3,500
Provision for depreciation	7,583	7,126	7,473
Other than temporary impairment on investment securities		23	613
Amortization of intangible assets	3,534	3,422	3,746
Amortization/(accretion) of investment securities	490	(2,413)	(2,682)
Deferred income tax (benefit)	28,466	(9,603)	(8,932)
Realized net investment security gains	(28,829)	(11,864)	(7,340)
Compensation expense for issuance of treasury stock to directors	388	449	434
OREO devaluations	8,219	13,206	6,818
Changes in assets and liabilities:
Increase in other assets	(23,811)	(23,752)	(43,683)
Increase (decrease) in other liabilities	(10,826)	180	(30,622)
Cash included in assets held for sale	(6,766)
Net cash provided by operating activities	126,731	126,134	72,338
Investing activities:
Proceeds from sales of available-for-sale securities	584,573	460,192	204,304
Proceeds from sales of held-to-maturity securities	25,410
Proceeds from calls and maturities of securities:
Held-to-maturity	454,937	146,986	40,105
Available-for-sale	557,552	2,238,059	426,841
Purchase of securities:
Held-to-maturity	(625,925)	(313,642)	(118,667)
Available-for-sale	(641,751)	(2,719,265)	(349,895)
Net decrease (increase) in other investments	1,095	220	(114)
Net loan originations, excluding loan sales	(344,979)	(595,835)	(814,981)
Proceeds from sale of loans	269,922	443,369	615,072
Purchases of bank owned life insurance, net	(3,000)	(4,562)
Purchases of premises and equipment, net	(6,618)	(7,602)	(8,011)
Net cash provided by (used in) investing activities	271,216	(352,080)	(5,346)
Financing activities:
Net (decrease) increase in deposits	(97,708)	(92,632)	426,302
Net decrease(increase) in short-term borrowings	(400,075)	339,450	(334,977)
Issuance of treasury stock, net		33,541	53,475
Proceeds from issuance of subordinated notes			35,250
Proceeds from long-term debt	203,000		60,100
Repayment of long-term debt	(16,551)	(17,648)	(261,278)
Cash dividends paid	(62,907)	(62,076)	(58,035)
Net cash (used in) provided by (used in) financing activities	(374,241)	200,635	(79,163)
Increase (decrease) in cash and cash equivalents	23,706	(25,311)	(12,171)
Cash and cash equivalents at beginning of year	133,780	159,091	171,262
Cash and cash equivalents at end of year	$ 157,486	$ 133,780	$ 159,091

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets [Abstract]
Amortized cost of securities available-for-sale	$ 801,147	$ 1,274,258
Fair value of securities held-to-maturity	$ 834,574	$ 686,114
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	16,151,062	16,151,062
Treasury stock, shares	745,109	752,128

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Long-Term Debt

12 Months Ended

Dec. 31, 2011

Long-Term Debt [Abstract]

Long-Term Debt

10. Long-Term Debt

Long-term debt is listed below:

December 31,	2011					2010
(In thousands)	Outstanding Balance		Average Rate			Outstanding Balance		Average Rate
Total Federal Home Loan Bank advances by year of maturity:
2011	$	-		-		$	16,460		1.99	%
2012		15,500		2.09	%		15,500		2.09	%
2013		75,500		1.11	%		500		4.03	%
2014		75,500		1.61	%		500		4.23	%
2015		51,000		2.00	%		-		-
2016		1,000		2.05	%		-		-
Thereafter		303,314		3.02	%		302,342		3.02	%
Total	$	521,814		2.41	%	$	335,302		2.93	%
Total broker repurchase agreements by year of maturity:
2016	$	75,000		4.05	%	$	75,000		4.05	%
Thereafter		225,000		4.03	%		225,000		4.03	%
Total	$	300,000		4.04	%	$	300,000		4.04	%
Other borrowings by year of maturity:
2011	$	-		-		$	63		7.97	%
2012		69		7.97	%		69		7.97	%
2013		74		7.97	%		74		7.97	%
2014		81		7.97	%		81		7.97	%
2015		87		7.97	%		87		7.97	%
2016		94		7.97	%		94		7.97	%
Thereafter		963		7.97	%		963		7.97	%
Total	$	1,368		7.97	%	$	1,431		7.97	%
Total combined long-term debt by year of maturity:
2011	$	-		-		$	16,523		2.01	%
2012		15,569		2.12	%		15,569		2.12	%
2013		75,574		1.11	%		574		4.54	%
2014		75,581		1.62	%		581		4.75	%
2015		51,087		2.01	%		87		7.97	%
2016		76,094		4.03	%		75,094		4.05	%
Thereafter		529,277		3.46	%		528,305		3.46	%
Total	$	823,182		3.01	%	$	636,733		3.46	%

Other borrowings consist of a capital lease obligation of $1.4 million, pertaining to an arrangement that was part of the acquisition of Vision on March 9, 2007 and its associated minimum lease payments. This capital lease is scheduled to be assumed by Centennial Bank, in connection with their acquisition of Vision's branches, in the first quarter of 2012.

Park had approximately $529.3 million of long-term debt at December 31, 2011 with a contractual maturity longer than five years. However, approximately $525 million of this debt is callable by the issuer in 2012.

At December 31, 2011 and 2010, Federal Home Loan Bank (FHLB) advances were collateralized by investment securities owned by the Corporation's subsidiary banks and by various loans pledged under a blanket agreement by the Corporation's subsidiary banks.

See Note 4 of these Notes to Consolidated Financial Statements for the amount of investment securities that are pledged. See Note 9 of these Notes to Consolidated Financial Statements for the amount of commercial real estate and residential mortgage loans that are pledged to the FHLB.

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Income Taxes (Components Of The Corporation's Deferred Tax Assets And Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Abstract]
Allowance for loan losses	$ 23,956	$ 52,418
Accumulated other comprehensive loss - Interest rate swap	296	572
Accumulated other comprehensive loss - pension plan	11,283	8,576
Intangible assets	1,523	2,156
Deferred compensation	3,733	4,123
OREO devaluations	6,364	7,171
State net operating loss carryforwards		2,812
Other	5,220	4,988
Loans held for sale fair value adjustment	4,585
Tax credit carryforwards	1,269
Valuation allowance		(1,491)
Total deferred tax assets	58,229	81,325
Accumulated other comprehensive income - Unrealized gains on securities	6,824	8,142
Deferred investment income	10,199	10,199
Pension plan	21,567	16,835
Mortgage servicing rights	3,255	3,671
Purchase accounting adjustments	943	2,150
Other	2,006	2,176
Total deferred tax liabilities	44,794	43,173
Net deferred tax assets	$ 13,435	$ 38,152

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Stock Option Plan (Schedule Of Activity In 2005 Plan) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Stock Option Plan [Abstract]
Number, January 1, 2011	78,075
Number, Granted	7,020	7,020	7,020
Number, Forfeited/Expired	4,055
Number, December 31, 2011	74,020	78,075
Weighted Average Exercise Price per Share, January 1, 2011	$ 74.96
Weighted Average Exercise Price per Share, Forfeited/Expired	$ 74.96
Weighted Average Exercise Price per Share, December 31, 2011	$ 74.96	$ 74.96
Exercisable at year end	74,020
Weighted-average remaining contractual life, in years	0.94
Aggregate intrinsic value	$ 0

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Subordinated Debentures/Notes (Details) (USD $)			12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 USB Capital Funding Corp [Member]	Dec. 31, 2011 Trust I [Member]	Dec. 31, 2011 Junior Subordinated Notes [Member]	Dec. 31, 2011 Trust Preferred Securities [Member]	Dec. 31, 2011 Interest Rate Swap [Member]	Dec. 31, 2011 Subordinated Debenture [Member]	Dec. 31, 2011 Subordinated Note [Member]	Dec. 23, 2009 Subordinated Note [Member]
Preferred securities issued				$ 15,000,000
Junior subordinated debt purchased by Trust I					15,500,000
Floating rate			three-month LIBOR plus 200 basis points			three-month LIBOR plus 148 basis points
Maturity date						Dec. 01, 2035		Dec. 29, 2017
Redemption date				Dec. 30, 2010
Subordinated debentures	75,250,000	75,250,000	25,000,000
Subordinated note, interest rate									10.00%
Cash flow hedge against variability of cash flows related to subordinated debenture							25,000,000
Principal amount			5,000,000
Three-month LIBOR rate			0.58%
Principal amount outstanding larger multiple			5,000,000
Number of purchasers										38
Subordinated notes principal amount									35,250,000
Portion of principal amount purchased by related parties									$ 14,050,000
Subordinated Notes, due date									Dec. 23, 2019

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Capital Ratios (Various Measures Of Capital For Park And Each Of PNB And VB) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010		Dec. 31, 2011
Park National Bank [Member]
Total Risk-Based Capital (to risk-weighted assets), Actual Amount	$ 495,668		$ 498,367
Total Risk-Based Capital (to risk-weighted assets), Ratio	11.38%		11.46%
Total Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Amount	348,452		347,972
Total Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Ratio	8.00%		8.00%
Total Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Amount	435,565		434,965
Total Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Ratio	10.00%		10.00%
Tier 1 Risk-Based Capital (to risk-weighted assets), Actual Amount	410,879		413,870
Tier 1 Risk-Based Capital (to risk-weighted assets), Ratio	9.43%		9.52%
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Amount	174,226		173,986
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Ratio	4.00%		4.00%
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Amount	261,339		260,979
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Ratio	6.00%		6.00%
Leverage Ratio (to risk-weighted assets), Actual Amount	410,879		413,870
Leverage Ratio (to risk-weighted assets), Ratio	6.68%		6.58%
Leverage Ratio (to risk-weighted assets), To Be Adequately Capitalized, Amount	246,084		251,691
Leverage Ratio (to risk-weighted assets), To Be Adequately Capitalized, Ratio	4.00%		4.00%
Leverage Ratio (to risk-weighted assets), To Be Well Capitalized, Amount	307,605		314,614
Leverage Ratio (to risk-weighted assets), To Be Well Capitalized, Ratio	5.00%		5.00%
Vision Bank [Member]
Total Risk-Based Capital (to risk-weighted assets), Actual Amount	80,305	[1],[2]	115,637	[1]
Total Risk-Based Capital (to risk-weighted assets), Ratio	13.12%	[1],[2]	24.72%	[1]
Total Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Amount	48,966	[1],[2]	37,427	[1]
Total Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Ratio	8.00%	[1],[2]	8.00%	[1]
Total Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Amount	61,208	[1],[2]	46,784	[1]
Total Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Ratio	10.00%	[1],[2]	10.00%	[1]
Tier 1 Risk-Based Capital (to risk-weighted assets), Actual Amount	71,897		109,566
Tier 1 Risk-Based Capital (to risk-weighted assets), Ratio	11.75%		23.42%
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Amount	24,483		18,714
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Ratio	4.00%		4.00%
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Amount	36,725		28,071
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Ratio	6.00%		6.00%
Leverage Ratio (to risk-weighted assets), Actual Amount	71,897	[1],[2]	109,566	[1]
Leverage Ratio (to risk-weighted assets), Ratio	9.12%	[1],[2]	15.89%	[1]
Leverage Ratio (to risk-weighted assets), To Be Adequately Capitalized, Amount	31,520	[1],[2]	27,588	[1]
Leverage Ratio (to risk-weighted assets), To Be Adequately Capitalized, Ratio	4.00%	[1],[2]	4.00%	[1]
Leverage Ratio (to risk-weighted assets), To Be Well Capitalized, Amount	39,400	[1],[2]	34,485	[1]
Leverage Ratio (to risk-weighted assets), To Be Well Capitalized, Ratio	5.00%	[1],[2]	5.00%	[1]
Agreed total risk-based capital ratio	13.12%		16.00%
Agreed leverage Ratio	9.12%		12.00%
Agreed total risk based capital ratio, previous	19.55%
Agreed leverage ratio, previous	14.05%
Park [Member]
Total Risk-Based Capital (to risk-weighted assets), Actual Amount	786,214		812,286
Total Risk-Based Capital (to risk-weighted assets), Ratio	15.71%		16.65%
Total Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Amount	400,307		390,270
Total Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Ratio	8.00%		8.00%
Total Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Amount	500,384		487,837
Total Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Ratio	10.00%		10.00%
Tier 1 Risk-Based Capital (to risk-weighted assets), Actual Amount	662,390		690,419
Tier 1 Risk-Based Capital (to risk-weighted assets), Ratio	13.24%		14.15%
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Amount	200,154		195,135
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Adequately Capitalized, Ratio	4.00%		4.00%
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Amount	300,230		292,702
Tier 1 Risk-Based Capital (to risk-weighted assets), To Be Well Capitalized, Ratio	6.00%		6.00%
Leverage Ratio (to risk-weighted assets), Actual Amount	662,390		690,419
Leverage Ratio (to risk-weighted assets), Ratio	9.54%		9.81%
Leverage Ratio (to risk-weighted assets), To Be Adequately Capitalized, Amount	277,817		281,506
Leverage Ratio (to risk-weighted assets), To Be Adequately Capitalized, Ratio	4.00%		4.00%
Leverage Ratio (to risk-weighted assets), To Be Well Capitalized, Amount	$ 347,271		$ 351,882
Leverage Ratio (to risk-weighted assets), To Be Well Capitalized, Ratio	5.00%		5.00%

[1] Park management had agreed to maintain Vision Bank's total risk-based capital at 16.00% and the leverage ratio at 12.00%.

[2] As a result of the financial statement restatement for the year ended December 31, 2010, Vision Bank's December 31, 2010 total risk-based capital ratio declined from 19.55% to 13.12% and its leverage ratio declined from 14.05% to 9.12%.

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Fair Values (Assets And Liabilities Measured At Fair Value On A Nonrecurring Basis (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	$ 87,813	$ 109,643
Mortgage Servicing Rights, at fair value	5,815	3,813
Other Real Estate Owned	42,272	41,709
Level 1 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value
Mortgage Servicing Rights, at fair value
Other Real Estate Owned
Level 2 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Mortgage Servicing Rights, at fair value	5,815	3,813
Level 3 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	87,813	109,643
Other Real Estate Owned	42,272	41,709
Commercial, Financial And Agricultural [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	19,931	8,276
Commercial, Financial And Agricultural [Member] | Level 1 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value
Commercial, Financial And Agricultural [Member] | Level 3 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	19,931	8,276
Construction Real Estate - Vision Commercial Land And Development [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	21,228	42,274
Construction Real Estate - Vision Commercial Land And Development [Member] | Level 1 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value
Construction Real Estate - Vision Commercial Land And Development [Member] | Level 3 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	21,228	42,274
Construction Real Estate - Remaining Commercial [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	8,860	10,465
Construction Real Estate - Remaining Commercial [Member] | Level 1 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value
Construction Real Estate - Remaining Commercial [Member] | Level 3 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	8,860	10,465
Residential Real Estate [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	12,935	16,399
Residential Real Estate [Member] | Level 1 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value
Residential Real Estate [Member] | Level 3 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	12,935	16,399
Commercial Real Estate [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	24,859	32,229
Commercial Real Estate [Member] | Level 1 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value
Commercial Real Estate [Member] | Level 3 [Member]
Fair Value, Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired Loans Carried at Fair Value, Fair Value	$ 24,859	$ 32,229

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Document And Entity Information (USD $)	12 Months Ended
	Dec. 31, 2011	Feb. 24, 2012	Jun. 30, 2011
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
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 Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Common Stock, Shares Outstanding		15,405,908
Entity Public Float			$ 973,488,186

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Parent Company Statements (Narrative) (Details) (Parent Company [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Parent Company [Member]
Income taxes	$ 4.21	$ 5.97	$ 5.22
Undistributed earnings, restricted from transfer as dividends	$ 146.6	$ 143.0

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Subordinated Debentures/Notes

12 Months Ended

Dec. 31, 2011

Subordinated Debentures/Notes [Abstract]

Subordinated Debentures/Notes

11. Subordinated Debentures/Notes

As part of the acquisition of Vision on March 9, 2007, Park became the successor to Vision under (i) the Amended and Restated Trust Agreement of Vision Bancshares Trust I (the "Trust"), dated as of December 5, 2005, (ii) the Junior Subordinated Indenture, dated as of December 5, 2005, and (iii) the Guarantee Agreement, also dated as of December 5, 2005.

On December 1, 2005, Vision formed a wholly-owned Delaware statutory business trust, Vision Bancshares Trust I ("Trust I"), which issued $15.0 million of the Trust's floating rate preferred securities (the "Trust Preferred Securities") to institutional investors. These Trust Preferred Securities qualify as Tier I capital under Federal Reserve Board guidelines. All of the common securities of Trust I are owned by Park. The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by Trust I to purchase $15.5 million of junior subordinated notes, which carry a floating rate based on a three-month LIBOR plus 148 basis points. The debentures represent the sole asset of Trust I. The Trust Preferred Securities accrue and pay distributions at a floating rate of three-month LIBOR plus 148 basis points per annum. The Trust Preferred Securities are mandatorily redeemable upon maturity of the notes in December 2035, or upon earlier redemption as provided in the notes. Park has the right to redeem the notes purchased by Trust I in whole or in part, on or after December 30, 2010. As specified in the indenture, if the notes are redeemed prior to maturity, the redemption price will be the principal amount, plus any unpaid accrued interest.

In accordance with GAAP, Trust I is not consolidated with Park's financial statements, but rather the subordinated notes are reflected as a liability.

On December 28, 2007, one of Park's wholly-owned subsidiary banks, The Park National Bank ("PNB"), entered into a Subordinated Debenture Purchase Agreement with USB Capital Funding Corp. Under the terms of the Purchase Agreement, USB Capital Funding Corp. purchased from PNB a Subordinated Debenture dated December 28, 2007, in the principal amount of $25 million, which matures on December 29, 2017. The Subordinated Debenture is intended to qualify as Tier 2 capital under the applicable regulations of the Office of the Comptroller of the Currency of the United States of America (the "OCC"). The Subordinated Debenture accrues and pays interest at a floating rate of three-month LIBOR plus 200 basis points. The Subordinated Debenture may not be prepaid in any amount prior to December 28, 2012; however, subsequent to that date, PNB may prepay, without penalty, all or a portion of the principal amount outstanding in a minimum amount of $5 million or any larger multiple of $5 million. The three-month LIBOR rate was 0.58% at December 31, 2011. On January 2, 2008, Park entered into an interest rate swap transaction, which was designated as a cash flow hedge against the variability of cash flows related to the Subordinated Debenture of $25 million (see Note 19 of these Notes to Consolidated Financial Statements).

On December 23, 2009, Park entered into a Note Purchase Agreement, dated December 23, 2009, with 38 purchasers (the "Purchasers"). Under the terms of the Note Purchase Agreement, the Purchasers purchased from Park an aggregate principal amount of $35.25 million of 10% Subordinated Notes due December 23, 2019 (the "Notes"). The Notes are intended to qualify as Tier 2 capital under applicable rules and regulations of the Federal Reserve Board. The Notes may not be prepaid in any amount prior to December 23, 2014; however, subsequent to that date, Park may prepay, without penalty, all or a portion of the principal amount outstanding. Of the $35.25 million in Notes, $14.05 million were purchased by related parties.

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Premises And Equipment (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Depreciation and amortization expense	$ 7,600,000	$ 7,100,000	$ 7,500,000
Rent expense	2,400,000	2,600,000	2,800,000
Future rental payments	101,000
Vision Bank [Member]
Rent expense	$ 687,000	$ 732,000	$ 775,000

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Long-Term Debt (Schedule Of Long Term Debt) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Debt Instrument [Line Items]
Outstanding Balance, 2011		$ 16,523
Outstanding Balance, 2012	15,569	15,569
Outstanding Balance, 2013	75,574	574
Outstanding Balance, 2014	75,581	581
Outstanding Balance, 2015	51,087	87
Outstanding Balance, 2016	76,094	75,094
Outstanding Balance, Thereafter	529,277	528,305
Outstanding Balance, Total	823,182	636,733
Average Rate, 2011		2.01%
Average Rate, 2012	2.12%	2.12%
Average Rate, 2013	1.11%	4.54%
Average Rate, 2014	1.62%	4.75%
Average Rate, 2015	2.01%	7.97%
Average Rate, 2016	4.03%	4.05%
Average Rate, Thereafter	3.46%	3.46%
Average Rate, Total	3.01%	3.46%
Federal Home Loan Bank Advances [Member]
Debt Instrument [Line Items]
Outstanding Balance, 2011		16,460
Outstanding Balance, 2012	15,500	15,500
Outstanding Balance, 2013	75,500	500
Outstanding Balance, 2014	75,500	500
Outstanding Balance, 2015	51,000
Outstanding Balance, 2016	1,000
Outstanding Balance, Thereafter	303,314	302,342
Outstanding Balance, Total	521,814	335,302
Average Rate, 2011		1.99%
Average Rate, 2012	2.09%	2.09%
Average Rate, 2013	1.11%	4.03%
Average Rate, 2014	1.61%	4.23%
Average Rate, 2015	2.00%
Average Rate, 2016	2.05%
Average Rate, Thereafter	3.02%	3.02%
Average Rate, Total	2.41%	2.93%
Broker Repurchase Agreements [Member]
Debt Instrument [Line Items]
Outstanding Balance, 2016	75,000	75,000
Outstanding Balance, Thereafter	225,000	225,000
Outstanding Balance, Total	300,000	300,000
Average Rate, 2016	4.05%	4.05%
Average Rate, Thereafter	4.03%	4.03%
Average Rate, Total	4.04%	4.04%
Other Borrowings [Member]
Debt Instrument [Line Items]
Outstanding Balance, 2011		63
Outstanding Balance, 2012	69	69
Outstanding Balance, 2013	74	74
Outstanding Balance, 2014	81	81
Outstanding Balance, 2015	87	87
Outstanding Balance, 2016	94	94
Outstanding Balance, Thereafter	963	963
Outstanding Balance, Total	$ 1,368	$ 1,431
Average Rate, 2011		7.97%
Average Rate, 2012	7.97%	7.97%
Average Rate, 2013	7.97%	7.97%
Average Rate, 2014	7.97%	7.97%
Average Rate, 2015	7.97%	7.97%
Average Rate, 2016	7.97%	7.97%
Average Rate, Thereafter	7.97%	7.97%
Average Rate, Total	7.97%	7.97%

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Consolidated Statements Of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Interest and dividend income:
Interest and fees on loans	$ 262,458	$ 267,692	$ 275,599
Interest and dividends on:
Obligations of U.S. Government, its agencies and other securities	68,873	76,839	90,558
Obligations of states and political subdivisions	371	786	1,417
Other interest income	178	200	116
Total interest and dividend income	331,880	345,517	367,690
Interest on deposits:
Demand and savings deposits	3,812	5,753	10,815
Time deposits	23,842	36,212	53,805
Interest on short-term borrowings	823	1,181	3,209
Interest on long-term debt	30,169	28,327	26,370
Total interest expense	58,646	71,473	94,199
Net interest income	273,234	274,044	273,491
Provision for loan losses	63,272	87,080	68,821
Net interest income after provision for loan losses	209,962	186,964	204,670
Other income:
Income from fiduciary activities	14,965	13,874	12,468
Service charges on deposit accounts	18,307	19,717	21,985
Net gains on sales of securities	28,829	11,864	7,340
Other service income	10,606	13,816	18,767
Checkcard fee income	12,496	11,177	9,339
Bank owned life insurance income	5,089	4,978	5,050
ATM fees	2,703	2,951	3,082
OREO devaluations	(8,219)	(13,206)	(6,818)
Other	10,134	9,709	9,977
Total other income	94,910	74,880	81,190
Other expense:
Salaries and employee benefits	102,068	98,315	101,225
Data processing fees	4,965	5,728	5,674
Professional fees and services	21,119	19,972	15,935
Net occupancy expense of bank premises	11,295	11,510	11,552
Amortization of intangibles	3,534	3,422	3,746
Furniture and equipment expense	10,773	10,435	9,734
Insurance	6,821	8,983	12,072
Marketing	2,967	3,656	3,775
Postage and telephone	6,060	6,648	6,903
State taxes	1,544	3,171	3,206
Other	17,171	15,267	14,903
Total other expense	188,317	187,107	188,725
Income before income taxes	116,555	74,737	97,135
State income taxes (benefit)	6,088	(1,161)	(2,461)
Federal income taxes	28,327	17,797	25,404
Net income	82,140	58,101	74,192
Preferred stock dividends and accretion	5,856	5,807	5,762
Income available to common shareholders	$ 76,284	$ 52,294	$ 68,430
Earnings per common share:
Basic	$ 4.95	$ 3.45	$ 4.82
Diluted	$ 4.95	$ 3.45	$ 4.82

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Loans

12 Months Ended

Dec. 31, 2011

Loans [Abstract]

Loans

5. Loans

The composition of the loan portfolio, by class of loan, as of December 31, 2011 and December 31, 2010 was as follows:

	December 31, 2011						December 31, 2010
			Accrued						Accrued
	Loan		interest		Recorded		Loan		interest		Recorded
(In thousands)	balance		receivable		investment		balance		receivable		investment
Commercial, financial and agricultural *	$	743,797	$	3,121	$	746,918	$	737,902	$	2,886	$	740,788
Commercial real estate *		1,108,574		4,235		1,112,809		1,226,616		4,804		1,231,420
Construction real estate:
Vision commercial land and development *		31,603		31		31,634		171,334		282		171,616
Remaining commercial		156,053		394		156,447		195,693		622		196,315
Mortgage		20,039		64		20,103		26,326		95		26,421
Installment		9,851		61		9,912		13,127		54		13,181
Residential real estate
Commercial		395,824		1,105		396,929		464,903		1,403		466,306
Mortgage		953,758		1,522		955,280		906,648		2,789		909,437
HELOC		227,682		942		228,624		260,463		1,014		261,477
Installment		51,354		236		51,590		60,195		255		60,450
Consumer		616,505		2,930		619,435		666,871		3,245		670,116
Leases		2,059		43		2,102		2,607		56		2,663
Total loans	$	4,317,099	$	14,684	$	4,331,783	$	4,732,685	$	17,505	$	4,750,190

* Included within commercial, financial and agricultural loans, commercial real estate loans, and Vision commercial land and development loans are an immaterial amount of consumer loans that are not broken out by class.   

Loans are shown net of deferred origination fees, costs and unearned income of $6.8 million at December 31, 2011 and $6.7 million at December 31, 2010, which is a net deferred income position in both years.

Overdrawn deposit accounts of $3.6 million and $2.6 million have been reclassified to loans at December 31, 2011 and 2010, respectively.

Credit Quality

The following table presents the recorded investment in nonaccrual, accruing restructured, and loans past due 90 days or more and still accruing by class of loans as of December 31, 2011 and December 31, 2010:

	December 31, 2011
(In thousands)	Nonaccrual loans		Accruing restructured loans		Loans past due 90 days or more and accruing		Total nonperforming loans
Commercial, financial and agricultural	$	37,797	$	2,848	$	-	$	40,645
Commercial real estate		43,704		8,274		-		51,978
Construction real estate:
Vision commercial land and development		25,761		-		-		25,761
Remaining commercial		14,021		11,891		-		25,912
Mortgage		66		-		-		66
Installment		30		-		-		30
Residential real estate
Commercial		43,461		815		-		44,276
Mortgage		25,201		4,757		2,610		32,568
HELOC		1,412		-		-		1,412
Installment		1,777		98		58		1,933
Consumer		1,876		-		893		2,769
Leases		-		-		-		-
Total loans	$	195,106	$	28,683	$	3,561	$	227,350

	December 31, 2010
			Accruing		Loans past due 90		Total
			restructured		days or more and		nonperforming
(In thousands)	Nonaccrual loans		loans		accruing		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

The following table provides additional information regarding those nonaccrual and accruing restructured loans that are individually evaluated for impairment and those collectively evaluated for impairment as of December 31, 2011 and December 31, 2010.

	December 31, 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	$	40,645	$	40,621	$	24	$	19,276	$	19,205	$	71
Commercial real estate		51,978		51,978		-		57,941		57,930		11
Construction real estate:
Vision commercial land and development		25,761		24,328		1,433		87,424		86,491		933
Remaining commercial		25,912		25,912		-		27,080		27,080		-
Mortgage		66		-		66		354		-		354
Installment		30		-		30		417		-		417
Residential real estate:
Commercial		44,276		44,276		-		60,227		60,227		-
Mortgage		29,958		-		29,958		32,479		-		32,479
HELOC		1,412		-		1,412		964		-		964
Installment		1,875		-		1,875		1,195		-		1,195
Consumer		1,876		20		1,856		1,911		-		1,911
Leases		-		-		-		-		-		-
Total loans	$	223,789	$	187,135	$	36,654	$	289,268	$	250,933	$	38,335

All of the loans individually evaluated for impairment were evaluated using the fair value of the collateral or present value of expected future cash flows as the measurement method.

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2011 and December 31, 2010.

	December 31, 2011						December 31, 2010
(In thousands)	Unpaid principal balance		Recorded investment		Allowance for loan losses allocated		Unpaid principal balance		Recorded investment		Allowance for loan losses allocated
With no related allowance recorded
Commercial, financial and agricultural	$	23,164	$	18,098	$	-	$	9,347	$	8,891	$	-
Commercial real estate		58,242		41,506		-		21,526		17,170		-
Construction real estate:
Vision commercial land and development		54,032		17,786		-		11,206		7,847		-
Remaining commercial		33,319		18,372		-		12,305		11,743		-
Residential real estate:
Commercial		49,341		38,686		-		46,344		43,031		-
Consumer		-		-		-		-		-		-
With an allowance recorded
Commercial, financial and agricultural		23,719		22,523		5,819		11,801		10,314		3,028
Commercial real estate		12,183		10,472		4,431		44,789		40,760		12,652
Construction real estate:
Vision commercial land and development		20,775		6,542		1,540		103,937		78,644		39,887
Remaining commercial		9,711		7,540		1,874		23,563		15,337		5,425
Residential real estate:
Commercial		6,402		5,590		2,271		19,716		17,196		5,912
Consumer		20		20		-		-		-		-
Total	$	290,908	$	187,135	$	15,935	$	304,534	$	250,933	$	66,904

Management's general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. At December 31, 2011 and December 31, 2010, there were $83.7 million and $12.0 million, respectively, in partial charge-offs on loans individually evaluated for impairment with no related allowance recorded and $20.1 million and $41.6 million, respectively, of partial charge-offs on loans individually evaluated for impairment that also had a specific reserve allocated.

The allowance for loan losses included specific reserves related to loans individually evaluated for impairment at December 31, 2011 and 2010, of $15.9 million and $66.9 million, respectively, related to loans with a recorded investment of $52.7 million and $162.3 million.

The average balance of loans individually evaluated for impairment was $214.0 million, $210.4 million, and $184.7 million for 2011, 2010, and 2009, respectively.

Interest income on loans individually evaluated for impairment is recognized on a cash basis after all past due and current principal payments have been made.

The following table presents the average recorded investment and interest income recognized on loans individually evaluated for impairment for the year ended December 31, 2011.

			Year ended December 31, 2011
(In thousands)	Recorded investment as of December 31, 2011		Average recorded investment		Interest income recognized
Commercial, financial and agricultural	$	40,621	$	23,518	$	209
Commercial real estate		51,978		49,927		829
Construction real estate:
Vision commercial land and development		24,328		58,792		-
Remaining commercial		25,912		29,152		339
Residential real estate:
Commercial		44,276		52,640		214
Consumer		20		16		1
Total	$	187,135	$	214,045	$	1,592

For the year ended December 31, 2010, the Corporation recognized a net reversal to interest income for $1.3 million, consisting of $948,000 in interest recognized at PNB and $2.2 million in interest reversed at Vision, on loans that were individually evaluated for impairment as of the end of the year. For the year ended December 31, 2009, the Corporation recognized a net reversal to interest income of $1.3 million, consisting of $1.8 million in interest recognized at PNB and $3.1 million in interest reversed at Vision.

The following table presents the aging of the recorded investment in past due loans as of December 31, 2011 and December 31, 2010 by class of loans.

	December 31, 2011
			Past due
			nonaccrual
			loans and loans
	Accruing loans		past due 90						Total
	past due 30-89		days or more						recorded
(In thousands)	days		and accruing		Total past due		Total current		investment
Commercial, financial and agricultural	$	3,106	$	11,308	$	14,414	$	732,504	$	746,918
Commercial real estate		2,632		21,798		24,430		1,088,379		1,112,809
Construction real estate:
Vision commercial land and development		-		19,235		19,235		12,399		31,634
Remaining commercial		99		7,839		7,938		148,509		156,447
Mortgage		76		-		76		20,027		20,103
Installment		421		8		429		9,483		9,912
Residential real estate
Commercial		1,545		10,097		11,642		385,287		396,929
Mortgage		15,879		20,614		36,493		918,787		955,280
HELOC		1,015		436		1,451		227,173		228,624
Installment		1,549		1,136		2,685		48,905		51,590
Consumer		11,195		2,192		13,387		606,048		619,435
Leases		-		-		-		2,102		2,102
Total loans	$	37,517	$	94,663	$	132,180	$	4,199,603	$	4,331,783

	December 31, 2010
			Past due
			nonaccrual
			loans and loans
	Accruing loans		past due 90						Total
	past due 30-89		days or more						recorded
(In thousands)	days		and accruing		Total past due		Total current		investment
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

Credit Quality Indicators

Management utilizes past due information as a credit quality indicator across the loan portfolio. The past due information is the primary credit quality indicator within the following classes of loans: (1) mortgage loans and installment loans in the construction real estate segment; (2) mortgage loans, HELOC and installment loans in the residential real estate segment; and (3) consumer loans. The primary credit indicator for commercial loans is based on an internal grading system that grades all commercial loans from 1 to 8. Credit grades are continuously monitored by the respective loan officer and adjustments are made when appropriate. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans with grades of 1 to 4 (pass-rated) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans. Loans classified as special mention have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Commercial loans graded 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans. Loans classified as substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Commercial loans that are graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Any commercial loan graded an 8 (loss) is completely charged-off.

The tables below present the recorded investment by loan grade at December 31, 2011 and December 31, 2010 for all commercial loans:

	December 31, 2011
(In thousands)	5 Rated		6 Rated		Nonaccrual		Pass Rated		Recorded Investment
Commercial , financial and agricultural:	$	11,785	$	7,628	$	40,645	$	686,860	$	746,918
Commercial real estate:		37,445		10,460		51,978		1,012,926		1,112,809
Construction real estate:
Vision commercial land and development		3,102		-		25,761		2,771		31,634
Remaining commercial		6,982		8,311		25,912		115,242		156,447
Residential real estate:
Commercial		17,120		3,785		44,276		331,748		396,929
Leases		-		-		-		2,102		2,102
Total Commercial Loans	$	76,434	$	30,184	$	188,572	$	2,151,649	$	2,446,839

	December 31, 2010
(In thousands)	5 Rated		6 Rated		Nonaccrual		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

Troubled Debt Restructuring (TDRs)

Management classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company's internal underwriting policy. Management's policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. Certain loans which were modified during the period ending December 31, 2011 did not meet the definition of a TDR as the modification was a delay in a payment that was considered to be insignificant. Management considers a forbearance period of up to three months or a delay in payment of up to 30 days to be insignificant. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. Management reviews all accruing TDRs quarterly to ensure payments continue to be made in accordance with the modified terms.

At December 31, 2011 and December 31, 2010, there were $100.4 million and $80.7 million, respectively, of TDRs included in nonaccrual loan totals. As of December 31, 2011, there were $28.7 million of TDRs included in accruing loan totals. None of the TDRs as of December 31, 2010 were accruing. Prior to management's adoption of ASU 2011-02, Park classified all TDRs as nonaccrual loans. With the adoption of ASU 2011-02, management determined it was appropriate to return certain TDRs to accrual status. Specifically, if the restructured note has been current for a period of at least six months and management expects the borrower will remain current throughout the renegotiated contract, the loan may be returned to accrual status. At December 31, 2011 and December 31, 2010, $79.9 million and $50.3 million of the nonaccrual TDRs were current. Management will continue to review the renegotiated loans and may determine it appropriate to move certain of the loans back to accrual status in the future. At December 31, 2011 and December 31, 2010, Park had commitments to lend $4.0 million and $434,000, respectively, of additional funds to borrowers whose terms had been modified in a TDR.

The specific reserve related to TDRs at December 31, 2011 and December 31, 2010 was $9.1 million and $9.4 million, respectively. Modifications made in 2011 were largely the result of renewals, extending the maturity date of the loan, at terms consistent with the original note. These modifications were deemed to be TDRs primarily due to Park's conclusion that the borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as impaired loans, and thus were evaluated for impairment under ASC 310. An immaterial amount of additional specific reserves were recorded during the period ending December 31, 2011 as a result of TDRs identified in the 2011 year.

The terms of certain other loans were modified during the period ended December 31, 2011 that did not meet the definition of a troubled debt restructuring. Modified substandard commercial loans which did not meet the definition of a TDR have a total recorded investment as of December 31, 2011 of $13.6 million. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or resulted in a delay in a payment that was considered to be insignificant. Modified consumer loans which did not meet the definition of a TDR have a total recorded investment as of December 31, 2011 of $19.6 million. Many of these loans were modified as a lower cost option than a full refinancing to borrowers who were not experiencing financial difficulties.

The following table details the number of contracts modified as TDRs during the 12 months ended December 31, 2011 as well as the period end recorded investment of these contracts. The recorded investment pre- and post-modification is generally the same, as historically Park has not forgiven debt.

	12 months ended December 31, 2011
(In thousands)	Number of Contracts		Recorded Investment
Commercial, financial and agricultural		56	$	24,100
Commercial real estate		23		7,163
Construction real estate:
Vision commercial land and development		12		4,268
Remaining commercial		24		18,602
Mortgage		1		66
Installment		-		-
Residential real estate:
Commercial		30		29,595
Mortgage		37		5,925
HELOC		2		56
Installment		7		221
Consumer		1		18
Leases		-		-
Total loans		193	$	90,014

The following table presents the recorded investment in financing receivables which were modified as troubled debt restructurings within the previous 12 months and for which there was a payment default during the 12 month period ended December 31, 2011. For this table, a loan is considered to be in default when it becomes 30 days contractually past due under modified terms. The additional allowance for loan loss resulting from the defaults on TDR loans was immaterial.

	12 months ended December 31, 2011
(In thousands)	Number of Contracts		Recorded Investment
Commercial, financial and agricultural		19	$	3,878
Commercial real estate		5		2,353
Construction real estate:
Vision commercial land and development		5		3,406
Remaining commercial		4		1,277
Mortgage		1		66
Installment		----		---
Residential real estate:
Commercial		10		20,195
Mortgage		7		1,193
HELOC		1		50
Installment		2		44
Consumer		----		---
Leases		----		---
Total loans		54	$	32,462

Management transfers a loan to other real estate owned at the time that Park takes title of the asset. At December 31, 2011 and 2010, Park had $42.3 million and $41.7 million, respectively, of other real estate owned.

Certain of the Corporation's executive officers, directors and related entities of directors are loan customers of the Corporation's two banking subsidiaries. As of December 31, 2011 and 2010, loans and lines of credit aggregating approximately $53.0 million and $53.6 million, respectively, were outstanding to such parties. During 2011, $4.9 million of new loans were made to these executive officers and directors and repayments totaled $5.5 million. New loans and repayments for 2010 were $2.1 million and $5.3 million, respectively.

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Investment Securities

12 Months Ended

Dec. 31, 2011

Investment Securities [Abstract]

Investment Securities

4. Investment Securities

The amortized cost and fair value of investment securities are shown in the following table. Management performs a quarterly evaluation of investment securities for any other-than-temporary impairment.

During 2011, there were no investment securities deemed to be other-than-temporarily impaired. During 2010, Park recognized an other-than-temporary impairment charge of $23,000, related to an equity investment in a financial institution, which is recorded in "other expenses" within the Consolidated Statements of Income. Since this was an equity security, no amounts were recognized in other comprehensive income at the time of the impairment recognition.

Investment securities at December 31, 2011 were as follows:

		Amortized	Gross	Unrealized	Gross	Unrealized		Estimated
(In thousands)	Cost		Holding Gains		Holding Losses		Fair Value
2011:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	370,043	$	1,614	$	-	$	371,657
Obligations of states and political subdivisions		2,616		44		-		2,660
U.S. Government sponsored entities' asset-backed securities		427,300		16,995		-		444,295
Other equity securities		1,188		877		32		2,033
Total	$	801,147	$	19,530	$	32	$	820,645
2011:
Securities Held-to-Maturity
Obligations of states and political subdivisions	$	1,992	$	5	$	-	$	1,997
U.S. Government sponsored entities' asset-backed securities		818,232		14,377		32		832,577
Total	$	820,224	$	14,382	$	32	$	834,574

Park's U.S. Government sponsored entity asset-backed securities consisted of 15-year mortgage-backed securities and collateralized mortgage obligations (CMOs). At December 31, 2011, the amortized cost of Park's available-for-sale (AFS) and held-to-maturity mortgage-backed securities was $427.3 million and $0.1 million, respectively. At December 31, 2011, the amortized cost of Park's held-to-maturity CMOs was $818.2 million. There were no AFS CMOs at December 31, 2011.

Other investment securities (as shown on the Consolidated Balance Sheets) consist of stock investments in the Federal Home Loan Bank and the Federal Reserve Bank. These restricted stock investments are carried at their redemption value. Park owned $60.7 million of Federal Home Loan Bank stock and $6.9 million of Federal Reserve Bank stock at December 31, 2011. Park owned $61.8 million of Federal Home Loan Bank stock and $6.9 million of Federal Reserve Bank stock at December 31, 2010.

Management does not believe any individual unrealized loss as of December 31, 2011 or December 31, 2010, represents other-than-temporary impairment. The unrealized losses on debt securities are primarily the result of interest rate changes. These conditions will not prohibit Park from receiving its contractual principal and interest payments on these debt securities. The fair value of these debt securities is expected to recover as payments are received on these securities and they approach maturity. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

Notes to Consolidated Financial Statements

The following table provides detail on investment securities with unrealized losses aggregated by investment category and length of time the individual securities had been in a continuous loss position at December 31, 2011:

	Less than				12 Months
	12 Months				or Longer				Total
			Unrealized				Unrealized				Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
2011:
Securities Available-for-Sale
Other equity securities	$	-	$	-	$	80	$	32	$	80	$	32
2011:
Securities Held-to-Maturity
U.S. Government sponsored entities' asset-backed securities	$	-	$	-	$	38,775	$	32	$	38,775	$	32

Investment securities at December 31, 2010 were as follows:

	Amortized		Gross Unrealized		Gross Unrealized		Estimated
(In thousands)	Cost		Holding Gains		Holding Losses		Fair Value
2010:
Securities Available-for-Sale
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
2010:
Securities Held-to-Maturity
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

The following table provides detail on investment securities with unrealized losses aggregated by investment category and length of time the individual securities had been in a continuous loss position at December 31, 2010:

	Less than				12 Months
	12 Months				or Longer				Total
			Unrealized				Unrealized				Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
2010:
Securities Available-for-Sale
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
2010:
Securities Held-to-Maturity
U.S. Government sponsored entities' asset-backed securities	$	297,584	$	4,620	$	—	$	—	$	297,584	$	4,620

The amortized cost and estimated fair value of investments in debt securities at December 31, 2011, are shown in the following table by contractual maturity or the expected call date, except for asset-backed securities, which are shown as a single total, due to the unpredictability of the timing in principal repayments.

	Amortized		Estimated
(In thousands)	Cost		Fair Value
Securities Available-for-Sale
U.S. Treasury and sponsored entities' notes:
Due within one year	$	370,043	$	371,657
Total	$	370,043	$	371,657
Obligations of states and political subdivisions:
Due within one year	$	2,121	$	2,133
Due one through five years		495		527
Total	$	2,616	$	2,660
U.S. Government sponsored entities' asset-backed securities:
Total	$	427,300	$	444,295
Securities Held-to-Maturity
Obligations of states and political subdivisions:
Due within one year	$	1,992	$	1,997
Total	$	1,992	$	1,997
U.S. Government sponsored entities' asset-backed securities:
Total	$	818,232	$	832,577

Approximately $269.1 million of Park's securities shown in the above table as U.S. Treasury and sponsored entities notes are callable notes. These callable securities have a final maturity of 9 to 10 years, but are shown in the table at their expected call date. The remaining $100.9 million of securities in this category are U.S. Government sponsored entities discount notes that mature within 60 days.

Investment securities having a book value of $1,548 million and $1,481 million at December 31, 2011 and 2010, respectively, were pledged to collateralize government and trust department deposits in accordance with federal and state requirements, to secure repurchase agreements sold and as collateral for Federal Home Loan Bank (FHLB) advance borrowings.

At December 31, 2011, $813 million was pledged for government and trust department deposits, $669 million was pledged to secure repurchase agreements and $66 million was pledged as collateral for FHLB advance borrowings. At December 31, 2010, $736 million was pledged for government and trust department deposits, $668 million was pledged to secure repurchase agreements and $77 million was pledged as collateral for FHLB advance borrowings.

At December 31, 2011, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity.

During 2011, Park's management sold investment securities during the first, second, third and fourth quarters. In total, these sales resulted in proceeds of $610.0 million, resulting in a pre-tax gain of $28.8 million.

During the first quarter of 2011, Park sold $105.4 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $6.6 million. Park also sold $1.0 million of municipal securities for no gain or loss. During the second quarter of 2011, Park sold $191.0 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $15.4 million. During the third quarter of 2011, Park sold $212.8 million of U.S. Government sponsored entity mortgage-backed securities for a pre-tax gain of $3.5 million.

Late in the fourth quarter of 2011, in preparation for the sale of Vision, Park sold $45.7 million of U.S. Government sponsored entity mortgage-backed securities (available-for-sale securities) and $24.3 million of U.S. Government sponsored entity CMOs (held-to-maturity securities) held by Vision for a pre-tax gain of $3.4 million. Park also sold $0.9 million of municipal securities held by Vision for a pre-tax gain of $15,000. The proceeds from the sale of the Vision securities were used to purchase U.S. Agency discount notes that mature during the first quarter of 2012.

During 2010, Park received proceeds from the sale of investment securities of $460.2 million, realizing a pre-tax gain of $11.9 million. During 2009, Park sold $204.3 million of U.S. Government sponsored entity mortgage-backed securities, realizing a pre-tax gain of $7.3 million. No gross losses were realized in 2011, 2010 or 2009.

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Earnings Per Common Share

12 Months Ended

Dec. 31, 2011

Earnings Per Common Share [Abstract]

Earnings Per Common Share

16. Earnings Per Common Share

GAAP requires the reporting of basic and diluted earnings per common share. Basic earnings per common share excludes any dilutive effects of options, warrants and convertible securities.

The following table sets forth the computation of basic and diluted earnings per common share:

Year ended December 31 (In thousands, except per share data)	2011		2010		2009
Numerator:
Net income available to common shareholders	$	76,284	$	52,294	$	68,430
Denominator:
Basic earnings per common share:
Weighted-average shares		15,400,155		15,152,692		14,206,335
Effect of dilutive securities – stock options and warrants		1,291		3,043		-
Diluted earnings per common share:
Adjusted weighted-average shares and assumed conversions		15,401,446		15,155,735		14,206,335
Earnings per common share:
Basic earnings per common share	$	4.95	$	3.45	$	4.82
Diluted earnings per common share	$	4.95	$	3.45	$	4.82

As of December 31, 2011 and 2010, options to purchase 74,020 and 78,075 common shares, respectively, were outstanding under Park's 2005 Plan. A warrant to purchase 227,376 common shares was outstanding at both December 31, 2011 and 2010 as a result of Park's participation in the CPP. In addition, warrants to purchase an aggregate of 71,984 common shares were outstanding at December 31, 2010 as a result of the issuance of common stock and warrants which closed on December 10, 2010 (the "December 2010 Warrants"). The December 2010 Warrants expired in 2011, with no warrants being exercised.

The common shares represented by the options and the warrants for the twelve months ended December 31, 2011 and 2010, totaling a weighted average of 126,292 and 382,445, respectively, were not included in the computation of diluted earnings per common share because the respective exercise prices exceeded the market value of the underlying common shares such that their inclusion would have had an anti-dilutive effect. The warrant to purchase 227,376 common shares issued under the CPP was not included in the twelve month weighted average of 126,292 for 2011 or 382,445 for 2010, as the dilutive effect of this warrant was 1,291 and 3,043 shares of common stock for the twelve month periods ended December 31, 2011 and December 31, 2010, respectively. The exercise price of the CPP warrant to purchase 227,376 common shares is $65.97.

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Stock Option Plan

12 Months Ended

Dec. 31, 2011

Stock Option Plan [Abstract]

Stock Option Plan

12. Stock Option Plan

The Park National Corporation 2005 Incentive Stock Option Plan (the "2005 Plan") was adopted by the Board of Directors of Park on January 18, 2005, and was approved by the shareholders at the Annual Meeting of Shareholders on April 18, 2005. Under the 2005 Plan, 1,500,000 common shares are authorized for delivery upon the exercise of incentive stock options. All of the common shares delivered upon the exercise of incentive stock options granted under the 2005 Plan are to be treasury shares. At December 31, 2011, 1,425,980 common shares were available for future grants under the 2005 Plan. Under the terms of the 2005 Plan, incentive stock options may be granted at a price not less than the fair market value at the date of the grant, and for an option term of up to five years. No additional incentive stock options may be granted under the 2005 Plan after January 17, 2015.

The fair value of each incentive stock option granted is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of Park's common stock. The Corporation uses historical data to estimate option exercise behavior. The expected term of incentive stock options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the incentive stock options is based on the U.S. Treasury yield curve in effect at the time of the grant.

The activity in the 2005 Plan is listed in the following table for 2011:

	Number		Weighted Average Exercise Price  per Share
January 1, 2011		78,075	$	74.96
Granted		—		—
Exercised		—		—
Forfeited/Expired		4,055		74.96
December 31, 2011		74,020	$	74.96
Exercisable at year end				74,020
Weighted-average remaining contractual life				0.94years
Aggregate intrinsic value			$	0

There were no options granted or exercised in 2011, 2010 or 2009. Additionally, no expense was recognized for 2011, 2010 or 2009.

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Deposits (Summary Of Noninterest Bearing And Interest Bearing Deposits) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Deposits [Abstract]
Noninterest bearing	$ 995,733	$ 937,719
Interest bearing	3,469,381	4,157,701
Total	$ 4,465,114	$ 5,095,420	$ 5,188,052

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Deposits

12 Months Ended

Dec. 31, 2011

Deposits [Abstract]

Deposits

8. Deposits

At December 31, 2011 and 2010, noninterest bearing and interest bearing deposits were as follows:

December 31 (In thousands)	2011		2010
Noninterest bearing	$	995,733	$	937,719
Interest bearing		3,469,381		4,157,701
Total	$	4,465,114	$	5,095,420

At December 31, 2011, the maturities of time deposits were as follows:

(In thousands)
2012	$	1,035,594
2013		236,549
2014		98,045
2015		66,353
2016		61,019
After 5 years		1,545
Total	$	1,499,105

At December 31, 2011, Park had approximately $20.2 million of deposits received from executive officers, directors, and their related interests. Of the $20.2 million at December 31, 2011, Vision had approximately $3.2 million of deposits received from executive officers, directors, and their related interests, which are included within liabilities held for sale.

Maturities of time deposits over $100,000 as of December 31, 2011 were:

December 31 (In thousands)
3 months or less	$	171,090
Over 3 months through 6 months		122,481
Over 6 months through 12 months		186,793
Over 12 months		158,581
Total	$	638,945

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Summary Of Significant Accounting Policies (Net Cash Provided By Operating Activities) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Summary Of Significant Accounting Policies [Abstract]
Interest paid on deposits and other borrowings	$ 59,552	$ 74,680	$ 96,204
Income taxes paid	$ 17,700	$ 24,600	$ 30,660

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Earnings Per Common Share (Summary Of Computation Of Basic And Diluted Earnings Per Common Share) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Earnings Per Common Share [Abstract]
Net income available to common shareholders	$ 76,284	$ 52,294	$ 68,430
Basic earnings per common share, Weighted-average shares	15,400,155	15,152,692	14,206,335
Effect of dilutive securities - stock options and warrants	1,291,000	3,043,000
Diluted earnings per common share, Adjusted weighted-average shares and assumed conversion	15,401,446	15,155,735	14,206,335
Basic earnings per common share	$ 4.95	$ 3.45	$ 4.82
Diluted earnings per common share	$ 4.95	$ 3.45	$ 4.82

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Allowance For Loan Losses

12 Months Ended

Dec. 31, 2011

Allowance For Loan Losses [Abstract]

Allowance For Loan Losses

6. 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 these Notes to Consolidated Financial Statements .

The activity in the allowance for loan losses for the 12 months ended December 31, 2011, December 31, 2010,. And December 31, 2009 is summarized in the following tables.

	Year ended December 31, 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	$	11,555	$	24,369	$	70,462	$	30,259	$	6,925	$	5		$	143,575
Transfer of loans at fair value		2		150		63		4		-		-			219
Transfer of allowance to held            for sale (1)		1,184		4,327		1,998		5,450		141		-			13,100
Charge-offs		18,350		23,063		64,166		20,691		7,612		-			133,882
Recoveries		1,402		1,825		1,463		1,719		2,385		4			8,798
Net Charge-offs		16,948		21,238		62,703		18,972		5,227		(4	)		125,084
Provision		23,529		16,885		8,735		9,859		4,273		(9	)		63,272
Ending balance	$	16,950	$	15,539	$	14,433	$	15,692	$	5,830	$	-		$	68,444

(1) Transfer of allowance to held for sale was allocated on a pro-rata basis based on the outstanding balance of the loans held for sale.

(In thousands)	2010			2009
Average loans	$	4,642,478		$	4,594,436
Allowance for loan losses:
Beginning balance	$	116,717		$	100,088
Charge-offs:
Commercial, financial and agricultural		8,484			10,047
Commercial real estate		7,748			5,662
Construction real estate		23,308			21,956
Residential real estate		18,401			11,765
Consumer		8,373			9,583
Lease financing		-			9
Total charge-offs		66,314			59,022
Recoveries:
Commercial, financial and agricultural		1,237			1,010
Commercial real estate		850			771
Construction real estate		813			1,322
Residential real estate		1,429			1,723
Consumer		1,763			2,001
Lease financing		-			3
Total recoveries		6,092			6,830
Net charge-offs		60,222			52,192
Provision for loan losses		87,080			68,821
Ending balance	$	143,575		$	116,717
Ratio of net charge-offs to average loans		1.30	%		1.14	%
Ratio of allowance for loan losses to end of period loans		3.03	%		2.52	%

The composition of the allowance for loan losses at December 31, 2011 and December 31, 2010 was as follows:

	December 31, 2011
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	5,819		$	4,431		$	3,414		$	2,271		$	-		$	-		$	15,935
Collectively evaluated for impairment		11,131			11,108			11,019			13,421			5,830			-			52,509
Total ending allowance balance	$	16,950		$	15,539		$	14,433		$	15,692		$	5,830		$	-		$	68,444
Loan Balance:
Loans individually evaluated for impairment	$	40,621		$	51,978		$	50,240		$	44,276		$	20		$	-		$	187,135
Loans collectively evaluated for impairment		703,176			1,056,596			167,306			1,584,342			616,485			2,059			4,129,964
Total ending loan balance	$	743,797		$	1,108,574		$	217,546		$	1,628,618		$	616,505		$	2,059		$	4,317,099
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		14.33	%		8.52	%		6.80	%		5.13	%		-	%		-	%		8.52	%
Loans collectively evaluated for impairment		1.58	%		1.05	%		6.59	%		0.85	%		0.95	%		-	%		1.27	%
Total ending loan balance		2.28	%		1.40	%		6.63	%		0.96	%		0.95	%		-	%		1.59	%
Recorded Investment:
Loans individually evaluated for impairment	$	40,621		$	51,978		$	50,240		$	44,276		$	20		$	-		$	187,135
Loans collectively evaluated for impairment		706,297			1,060,831			167,856			1,588,147			619,415			2,102			4,144,648
Total ending loan balance	$	746,918		$	1,112,809		$	218,096		$	1,632,423		$	619,435		$	2,102		$	4,331,783

	December 31, 2010
(In thousands)	Commercial, financial and agricultural			Commercial real estate			Construction real estate			Residential real estate			Consumer			Leases			Total
Allowance for loan losses:
Ending allowance balance attributed to loans
Individually evaluated for impairment	$	3,028		$	12,652		$	45,312		$	5,912		$	-		$	-		$	66,904
Collectively evaluated for impairment		8,527			11,717			25,150			24,347			6,925			5			76,671
Total ending allowance balance	$	11,555		$	24,369		$	70,462		$	30,259		$	6,925		$	5		$	143,575
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
Allowance for loan losses as a percentage of loan balance:
Loans individually evaluated for impairment		15.77	%		21.84	%		39.90	%		9.82	%		-			-			26.66	%
Loans collectively evaluated for impairment		1.19	%		1.00	%		8.59	%		1.49	%		1.04	%		0.19	%		1.71	%
Total ending loan balance		1.57	%		1.99	%		17.33	%		1.79	%		1.04	%		0.19	%		3.03	%
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

Loans collectively evaluated for impairment above include all performing loans at December 31, 2011 and 2010, as well as nonperforming loans internally classified as consumer loans. Nonperforming consumer loans are not typically evaluated for impairment, but receive a portion of the statistical allocation of the allowance for loan losses. Loans individually evaluated for impairment above include all impaired loans internally classified as commercial loans at December 31, 2011 and 2010, which are evaluated for impairment in accordance with GAAP (see Note 1 of these Notes to Consolidated Financial Statements).

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Premises And Equipment

12 Months Ended

Dec. 31, 2011

Premises And Equipment [Abstract]

Premises And Equipment

7. Premises and Equipment

The major categories of premises and equipment and accumulated depreciation are summarized as follows:

December 31 (In thousands)	2011			2010
Land	$	18,151		$	23,827
Buildings		69,690			78,185
Equipment, furniture and fixtures		59,037			61,086
Leasehold improvements		4,283			6,031
Total	$	151,161		$	169,129
Less accumulated depreciation		(97,420	)		(99,562	)
Premises and Equipment, Net	$	53,741		$	69,567

Depreciation expense amounted to $7.6 million, $7.1 million and $7.5 million for the years ended December 31, 2011, 2010 and 2009, respectively.

The Corporation leases certain premises and equipment accounted for as operating leases. The following is a schedule of the future minimum rental payments required for the next five years under such leases with initial terms in excess of one year:

(In thousands)
2012	$	1,448
2013		1,104
2014		910
2015		714
2016		457
Thereafter		961
Total	$	5,594

Included in the operating lease schedule above is $101,000 of future rental payments associated with Vision operating leases covering future rental payments through February 29, 2012. Operating lease payments subsequent to February 29, 2012 have not been considered as the branch offices of Vision are to be acquired by Centennial in the first quarter of 2012.

Rent expense for Park was $2.4 million, $2.6 million and $2.8 million, for the years ended December 31, 2011, 2010 and 2009, respectively. Rent expense for Vision Bank was $687,000, $732,000 and $775,000 for the years ended December 31, 2011, 2010 and 2009, respectively.

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Short-Term Borrowings

12 Months Ended

Dec. 31, 2011

Short-Term Borrowings [Abstract]

Short-Term Borrowings

9. Short-Term Borrowings

Short-term borrowings were as follows:

December 31 (In thousands)	2011		2010
Securities sold under agreements to repurchase and federal funds purchased	$	240,594	$	279,669
Federal Home Loan Bank advances		23,000		384,000
Total short-term borrowings	$	263,594	$	663,669

The outstanding balances for all short-term borrowings as of December 31, 2011 and 2010 and the weighted-average interest rates as of and paid during each of the years then ended were as follows:

(In thousands)	Repurchase  agreements  and Federal  Funds  Purchased			Federal Home  Loan Bank  Advances			Demand Notes  Due U.S.  Treasury and  Other
2011:
Ending balance	$	240,594		$	23,000		$	—
Highest month-end balance		265,412			232,000			—
Average daily balance		246,145			51,392			—
Weighted-average interest rate:
As of year-end		0.29	%		0.40	%		—
Paid during the year		0.30	%		0.18	%		—
2010:
Ending balance	$	279,669		$	384,000		$	—
Highest month-end balance		295,467			384,000			—
Average daily balance		269,260			31,679			—
Weighted-average interest rate:
As of year-end		0.32	%		0.19	%		—
Paid during the year		0.39	%		0.39	%		—

At December 31, 2011 and 2010, Federal Home Loan Bank (FHLB) advances were collateralized by investment securities owned by the Corporation's subsidiary banks and by various loans pledged under a blanket agreement by the Corporation's subsidiary banks.

See Note 4 of these Notes to Consolidated Financial Statements for the amount of investment securities that are pledged. At December 31, 2011 and 2010, $2,231 million and $2,071 million, respectively, of commercial real estate and residential mortgage loans were pledged under a blanket agreement to the FHLB by Park's subsidiary banks.

Note 4 states that $669 million and $668 million of securities were pledged to secure repurchase agreements as of December 31, 2011 and 2010, respectively. Park's repurchase agreements in short-term borrowings consist of customer accounts and securities which are pledged on an individual security basis. Park's repurchase agreements with a third-party financial institution are classified in long-term debt. See Note 10 of these Notes to Consolidated Financial Statements.

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Investment Securities (Narrative) (Details) (USD $)	3 Months Ended	12 Months Ended												3 Months Ended
	Dec. 31, 2011 years	Dec. 31, 2011 years	Dec. 31, 2010	Dec. 31, 2009	Mar. 31, 2011	Dec. 31, 2011 U.S. Treasury And Sponsored Entities Callable Notes [Member]	Dec. 31, 2011 U.S. Treasury And Sponsored Entities Discount Notes [Member]	Dec. 31, 2011 Collateralized Mortgage-Backed Securities [Member]	Dec. 31, 2011 Residential Mortgage-Backed Securities [Member]	Dec. 31, 2011 U.S. Government Sponsored Entities Asset-Backed Securities [Member]	Jun. 30, 2011 U.S. Government Sponsored Entities Asset-Backed Securities [Member]	Mar. 31, 2011 U.S. Government Sponsored Entities Asset-Backed Securities [Member]	Dec. 31, 2010 U.S. Government Sponsored Entities Asset-Backed Securities [Member]	Dec. 31, 2011 U.S. Government Sponsored Entity Mortgage-Backed Securities [Member]	Sep. 30, 2011 U.S. Government Sponsored Entity Mortgage-Backed Securities [Member]	Jun. 30, 2011 U.S. Government Sponsored Entity Mortgage-Backed Securities [Member]	Dec. 31, 2010 U.S. Government Sponsored Entity Mortgage-Backed Securities [Member]	Dec. 31, 2009 U.S. Government Sponsored Entity Mortgage-Backed Securities [Member]	Mar. 31, 2011 U.S. Government Agency Mortgage-Backed Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities						$ 269,100,000	$ 100,900,000				$ 191,000,000	$ 105,400,000		$ 45,700,000	$ 212,800,000		$ 460,200,000	$ 204,300,000
Other than temporary impairment on investment securities			23,000	613,000
Number in years until U.S. government residential mortgage-backed securities mature		15
Amortized cost of securities available-for-sale	801,147,000	801,147,000	1,274,258,000					0	427,300,000	427,300,000			990,204,000
Amortized cost of securities held-to-maturity								818,200,000	100,000
Federal reserve bank stock	6,900,000	6,900,000	6,900,000
Federal home loan bank stock	60,700,000	60,700,000	61,800,000
Callable securities final maturity in years, minimum		9
Callable securities final maturity in years, maximum	10	10
Federal Home Loan Bank (FHLB) advance borrowings	1,548,000,000	1,548,000,000	1,481,000,000
money pledged for government and trust department deposits	813,000,000	813,000,000	736,000,000
money pledged to secure repurchase agreements	669,000,000	669,000,000	668,000,000
Percentage of amount greater than shareholder's equity			10.00%
Proceeds from sale of investment securities		610,000,000
Proceeds from sale of investment securities, pre-tax gain		28,800,000
Money pledged as collateral for FHLB advance borrowings	66,000,000	66,000,000	77,000,000
Available-for-sale securities, pre-tax gain	19,530,000	19,530,000	34,740,000							16,995,000			30,633,000		3,500,000	15,400,000	11,900,000	7,300,000	6,600,000
Municipal securities sold	900,000	900,000			1,000,000
Held-to-maturity securities	820,224,000	820,224,000	673,570,000											24,300,000
Held-to-maturity securities, pretax gain														3,400,000
Municipal securities, pretax gain	$ 15,000

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Fair Values (Fair Value Of Financial Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Money Market Instruments, Carrying Value	$ 157,486	$ 133,780	$ 159,091	$ 171,262
Cash and Money Market Instruments, Fair Value	157,486	133,780
Investment Securities, Carrying Value	1,640,869	1,971,092
Investment Securities, Fair Value	1,655,219	1,983,636
Accrued Interest Receivable, Carrying Value	19,697	24,137
Accrued Interest Receivable, Fair Value	19,697	24,137
Mortgage Loans Held for Sale, Carrying Value	11,535	8,340
Mortgage Loans Held for Sale, Fair Value	11,535	8,340
Impaired Loans Carried at Fair Value, Carrying Value	87,813	109,643
Impaired Loans Carried at Fair Value, Fair Value	87,813	109,643
Other Loans, Carrying Value	4,149,307	4,471,127
Other Loans, Fair Value	4,167,224	4,490,855
Net loans	4,248,655	4,589,110
Loans Receivable, Net, Fair Value	4,266,572	4,608,838
Assets held for sale, Carrying Value	382,462
Assets held for sale, Fair Value	382,462
Noninterest Bearing Checking, Carrying Value	995,733	937,719
Noninterest Bearing Checking, Fair Value	995,733	937,719
Interest Bearing Transactions Accounts, Carrying Value	1,037,385	1,283,159
Interest Bearing Transactions Accounts, Fair Value	1,037,385	1,283,159
Savings, Carrying Value	931,526	899,288
Savings, Fair Value	931,526	899,288
Time Deposits, Carrying Value	1,499,105	1,973,903
Time Deposits, Fair Value	1,506,075	1,990,163
Other, Carrying Value	1,365	1,351
Other, Fair Value	1,365	1,351
Total deposits	4,465,114	5,095,420	5,188,052
Total Deposits , Fair Value	4,472,084	5,111,680
Short-Term Borrowings, Carrying Value	263,594	663,669
Short-Term Borrowings, Fair Value	263,594	663,669
Long-Term Debt, Carrying Value	823,182	636,733
Long-Term Debt, Fair Value	915,274	699,080
Subordinated Debentures/Notes, Carrying Value	75,250	75,250
Subordinated Debentures/Notes, Fair Value	68,601	63,099
Accrued Interest Payable, Carrying Value	4,916	6,123
Accrued Interest Payable, Fair Value	4,916	6,123
Liabilities held for sale, Carrying Amount	536,186
Liabilities held for sale, Fair Value	536,991
Fair Value Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value swap, Carrying Value	700	60
Swap, Fair Value	700	60
Interest Rate Swap [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest Rate Swap, Carrying Value	846	1,634
Swap, Fair Value	$ 846	$ 1,634

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Deposits (Time Deposits) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Deposits [Abstract]
2012	$ 1,035,594
2013	236,549
2014	98,045
2015	66,353
2016	61,019
After 5 years	1,545
Total	$ 1,499,105	$ 1,973,903

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Investment Securities (Schedule Of Unrealized Loss On Securities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Schedule of Investments [Line Items]
Securities Available-for-Sale, Less than 12 months, Fair value		$ 494,068
Securities Available-for-Sale, Less than 12 months, Unrealized losses		11,462
Securities Available-for-Sale, 12 months or longer, Fair value		221
Securities Available-for-Sale, 12 months or longer, Unrealized losses		14
Securities Available-for-Sale, Fair value, Total		494,289
Securities Available-for-Sale, Unrealized losses, Total		11,476
Obligations Of U.S. Treasury And Other U.S. Government Sponsored Entities [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Less than 12 months, Fair value		74,379
Securities Available-for-Sale, Less than 12 months, Unrealized losses		1,956
Securities Available-for-Sale, 12 months or longer, Fair value
Securities Available-for-Sale, 12 months or longer, Unrealized losses
Securities Available-for-Sale, Fair value, Total		74,379
Securities Held-to-Maturity, Unrealized losses, Total		1,956
Obligations Of States And Political Subdivisions [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Less than 12 months, Fair value		1,459
Securities Available-for-Sale, Less than 12 months, Unrealized losses		52
Securities Available-for-Sale, 12 months or longer, Fair value
Securities Available-for-Sale, 12 months or longer, Unrealized losses
Securities Available-for-Sale, Fair value, Total		1,459
Securities Available-for-Sale, Unrealized losses, Total		52
U.S. Government Sponsored Entities Asset-Backed Securities [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Less than 12 months, Fair value		418,156
Securities Available-for-Sale, Less than 12 months, Unrealized losses		9,425
Securities Available-for-Sale, 12 months or longer, Fair value
Securities Available-for-Sale, 12 months or longer, Unrealized losses
Securities Available-for-Sale, Fair value, Total		418,156
Securities Available-for-Sale, Unrealized losses, Total		9,425
Securities Held-to-Maturity, Less than 12 months, Fair value		297,584
Securities Held-to-Maturity, Less than 12 months, Unrealized losses		4,620
Securities Held-to-Maturity, 12 months or longer, Fair value	38,775
Securities Held-to-Maturity, 12 months or longer, Unrealized losses	32
Securities Held-to-Maturity, Fair value, Total	38,775	297,584
Securities Held-to-Maturity, Unrealized losses, Total	32	4,620
Other Equity Securities [Member]
Schedule of Investments [Line Items]
Securities Available-for-Sale, Less than 12 months, Fair value		74
Securities Available-for-Sale, Less than 12 months, Unrealized losses		29
Securities Available-for-Sale, 12 months or longer, Fair value	80	221
Securities Available-for-Sale, 12 months or longer, Unrealized losses	32	14
Securities Available-for-Sale, Fair value, Total	80	295
Securities Available-for-Sale, Unrealized losses, Total	$ 32	$ 43

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Income Taxes (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income Taxes [Line Items]
State tax benefit	$ 6,088,000	$ (1,161,000)	$ (2,461,000)
Gross benefit	28,466,000	(9,603,000)	(8,932,000)
Federal tax benefit	28,327,000	17,797,000	25,404,000
Unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate	378,000	370,000	504,000
(Income)/expense related to interest and penalties	2,500	(10,500)	(18,000)
Accrued amount for interest and penalties	63,000	60,500	71,000
Vision Bank [Member]
Income Taxes [Line Items]
State tax benefit	6,100,000	1,160,000
Gross benefit	3,450,000
Valuation allowance	2,290,000
Federal tax benefit	$ 803,000,000

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Sale Of Vision Bank (Schedule Of Assets Purchased And Liabilities Assumed In Vision Bank Disposition) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash and due from banks	$ 137,770	$ 109,058
Loans	4,317,099	4,732,685	4,640,432
Allowance for loan losses	(68,444)	(143,575)	(116,717)	(100,088)
Net loans	4,248,655	4,589,110
Fixed assets	53,741	69,567
Other assets	857,631	519,580
Total assets	6,972,245	7,282,261	7,040,329
Deposits	4,465,114	5,095,420	5,188,052
Other Liabilities	602,741	81,481
Total liabilities	6,229,881	6,552,553
Assets Held-For-Sale [Member]
Cash and due from banks	6,766
Loans	369,044
Allowance for loan losses	(13,100)
Net loans	355,944
Fixed assets	14,861
Other assets	4,891
Total assets	382,462
Liabilities Held-For-Sale [Member]
Deposits	532,598
Other Liabilities	3,588
Total liabilities	$ 536,186

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Stock Option Plan (Narrative) (Details) (2005 Stock Compensation Plan [Member])	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
2005 Stock Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares authorized for delivery upon the exercise of incentive stock options	1,500,000
Common shares available for future grants under the 2005 Plan		1,425,980

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Participation In The U.S. Treasury Capital Purchase Program (Details) (USD $)	0 Months Ended	12 Months Ended
	Dec. 23, 2008	Dec. 31, 2011	Dec. 31, 2010
Participation In The U.S. Treasury Capital Repurchase Program [Line Items]
Liquidation preference per senior preferred shares	$ 1,000
Charge to retained earnings representing preferred stock dividend and accretion of discount		$ 5,900,000
Warrant issued to U.S. Treasury relating to CPP, common shares	227,376	227,376
Issued warrants as a percentage of senior preferred shares purchased		15.00%
Warrant issued to U.S. treasury relating to CPP, exercise price		$ 65.97
Trailing average in days		20
Term of warrants in years		10
Preferred stock value	$ 100,000,000	$ 98,146,000	$ 97,290,000
Revised Cumulative Dividends Rate [Member]
Participation In The U.S. Treasury Capital Repurchase Program [Line Items]
Preferred stock, dividend rate, percentage		9.00%
Cumulative Dividends Rate [Member]
Participation In The U.S. Treasury Capital Repurchase Program [Line Items]
Preferred stock, dividend rate, percentage		5.00%

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Subsequent Event - Vision Bank Closing

12 Months Ended

Dec. 31, 2011

Subsequent Event - Vision Bank Closing [Abstract]

Subsequent Event - Vision Bank Closing

27. Subsequent Event – Vision Bank Closing

On February 16, 2012, Park and its wholly-owned subsidiary, Vision Bank, a Florida state-chartered bank, completed their sale of substantially all of the performing loans, operating assets and liabilities associated with Vision Bank to Centennial Bank ("Centennial"), an Arkansas state-chartered bank which is a wholly-owned subsidiary of Home BancShares, Inc., an Arkansas Corporation ("Home"), as contemplated by the previously announced Purchase and Assumption Agreement by and between Park, Vision, Home and Centennial, dated as of November 16, 2011, as amended by the First Amendment to Purchase and Assumption Agreement, dated as of January 25, 2012 (the "Agreement").

In accordance with the Agreement, on the closing date, Vision sold approximately $354 million in performing loans, approximately $520 million of deposits, fixed assets of approximately $12.5 million and other miscellaneous assets and liabilities for a purchase price of $27.9 million. Subsequent to the transactions contemplated by the Agreement, Vision was left with approximately $22 million of performing loans (including mortgage loans held for sale) and non-performing loans with a fair value of $88 million. Park will record a pre-tax gain, net of expenses directly related to the sale, of approximately $22 million, resulting from the transactions contemplated by the Agreement.

Promptly following the closing of the transactions contemplated by the Agreement, Vision surrendered its Florida banking charter to the Florida Office of Financial Regulation (the "OFR") and became a non-bank Florida corporation (the "Florida Corporation"). The Florida Corporation merged with and into a wholly-owned, non-bank subsidiary of Park, SE Property Holdings, LLC ("SE, LLC"), with SE, LLC being the surviving entity.

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Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2011

Loan Servicing [Abstract]

Activity For MSRs And Related Valuation Allowance

December 31 (In thousands)	2011			2010
Mortgage servicing rights:
Carrying amount, net, beginning of year	$	10,488		$	10,780
Additions		1,659			3,062
Amortization		(2,573	)		(3,180	)
Change in valuation allowance		(273	)		(174	)
Carrying amount, net, end of year	$	9,301		$	10,488
Valuation allowance:
Beginning of year	$	748		$	574
Additions expensed		273			174
End of year	$	1,021		$	748

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Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

14. Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation's deferred tax assets and liabilities are as follows:

December 31 (In thousands)	2011		2010
Deferred tax assets:
Allowance for loan losses	$	23,956	$	52,418
Accumulated other comprehensive loss – Interest rate swap		296		572
Accumulated other comprehensive loss – pension plan		11,283		8,576
Intangible assets		1,523		2,156
Deferred compensation		3,733		4,123
OREO devaluations		6,364		7,171
State net operating loss carryforwards		-		2,812
Other		5,220		4,988
Loans held for sale fair value adjustment		4,585		-
Tax credit carryforwards		1,269		-
Valuation allowance		-		(1,491	)
Total deferred tax assets	$	58,229	$	81,325
Deferred tax liabilities:
Accumulated other comprehensive income – Unrealized gains on securities	$	6,824	$	8,142
Deferred investment income		10,199		10,199
Pension plan		21,567		16,835
Mortgage servicing rights		3,255		3,671
Purchase accounting adjustments		943		2,150
Other		2,006		2,176
Total deferred tax liabilities	$	44,794	$	43,173
Net deferred tax assets	$	13,435	$	38,152

Park performs an analysis to determine if a valuation allowance against deferred tax assets is required in accordance with GAAP. Vision Bank is subject to state income tax in Alabama and Florida. During 2011, Park recognized $6.10 million in state tax expense which was the charge necessary to write off the previously reported state operating loss carryforward asset and other state deferred tax assets at Vision Bank. Prior to the execution of the Purchase Agreement with Centennial, management of Park believed that a merger of Vision Bank into The Park National Bank (the national bank subsidiary of Park) would enable Park to fully utilize the state net operating loss carryforward asset recorded at Vision Bank. The structure of the transactions contemplated by the Purchase Agreement will not allow either the buyer or the seller to benefit from the previously recorded net operating loss carryforward asset at Vision bank to offset future taxable income; therefore, this asset was written off by Vision Bank at December 31, 2011. In 2010, a state tax benefit of $1.16 million was recorded by Vision Bank, consisting of a gross benefit of $3.45 million and a valuation allowance of $2.29 million. In the schedule of deferred taxes, the valuation allowance is shown net of the federal tax benefit of $803,000.

Management has determined that it is not required to establish a valuation allowance against remaining deferred tax assets in accordance with GAAP since it is more likely than not that the deferred tax assets will be fully utilized in future periods.

The components of the provision for federal and state income taxes are shown below:

December 31, (In thousands)	2011			2010			2009
Currently payable
Federal	$	5,949		$	26,130		$	32,148
State		-			109			(273	)
Deferred
Federal		22,378			(8,333	)		(6,745	)
State		8,382			(3,564	)		(2,187	)
Valuation allowance
Federal		-			-			-
State		(2,294	)		2,294			-
Total	$	34,415		$	16,636		$	22,943

The following is a reconciliation of income tax expense to the amount computed at the statutory rate of 35% for the years ended December 31, 2011, 2010 and 2009.

December 31	2011			2010			2009
Statutory federal corporate tax rate		35.0	%		35.0	%		35.0	%
Changes in rates resulting from:
Tax exempt interest income, net of disallowed interest		(1.0	)%		(1.7	)%		(1.3	)%
Bank owned life insurance		(1.5	)%		(2.3	)%		(1.8	)%
Tax credits (low income housing)		(5.2	)%		(6.7	)%		(4.8	)%
State income tax expense, net of federal benefit		4.7	%		(3.0	)%		(1.6	)%
Valuation allowance, net of federal benefit		(1.3	)%		2.0	%		-
Other		(1.2	)%		(1.0	)%		(1.9	)%
Effective tax rate		29.5	%		22.3	%		23.6	%

Park and its Ohio-based subsidiaries do not pay state income tax to the state of Ohio, but pay a franchise tax based on their year-end equity. The franchise tax expense is included in the state tax expense and is shown in "state taxes" on Park's Consolidated Statements of Income. Vision Bank is subject to state income tax, in the states of Alabama and Florida. State income tax expense/(benefit) for Vision Bank is included in "income taxes" on Park's Consolidated Statements of Income. Vision Bank's 2011 state income tax expense was $6.10 million.

Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits.

(In thousands)	2011			2010			2009
January 1 Balance	$	477		$	595		$	783
Additions based on tax positions related to the current year		70			69			64
Additions for tax positions of prior years		1			7			----
Reductions for tax positions of prior  years		(3	)		(131	)		(189	)
Reductions due to statute of limitations		(60	)		(63	)		(63	)
December 31 Balance	$	485		$	477		$	595

The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in the future periods at December 31, 2011, 2010 and 2009 was $378,000, $370,000 and $504,000, respectively. Park does not expect the total amount of unrecognized tax benefits to significantly increase or decrease during the next year.

The (income)/expense related to interest and penalties recorded in the Consolidated Statements of Income for the years ended December 31, 2011, 2010 and 2009 was $2,500, $(10,500) and $(18,000), respectively. The amount accrued for interest and penalties at December 31, 2011, 2010 and 2009 was $63,000, $60,500 and $71,000, respectively.

Park and its subsidiaries are subject to U.S. federal income tax. Some of Park's subsidiaries are subject to state income tax in the following states: Alabama, Florida, California and Kentucky. Park is no longer subject to examination by federal or state taxing authorities for the tax year 2007 and the years prior.

The 2007 and 2008 federal income tax returns of Park National Corporation were recently under examination by the Internal Revenue Service. Additionally, the 2009 state of Ohio franchise tax return was recently under examination. The IRS examination closed in the first quarter of 2012 with no adjustments. The Ohio examination closed in 2011 with no material adjustments.

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Loan Servicing (Activity For MSRs And Related Valuation Allowance) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Loan Servicing [Abstract]
Carrying amount, net, beginning of period	$ 10,488	$ 10,780
Additions	1,659	3,062
Amortization	(2,573)	(3,180)
Change in valuation allowance	(273)	(174)
Carrying amount, net, end of period	9,301	10,488
Valuation allowance, beginning of period	748	574
Additions expensed	273	174
Valuation allowance, end of period	$ 1,021	$ 748

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Derivative Instruments

12 Months Ended

Dec. 31, 2011

Derivative Instruments [Abstract]

Derivative Instruments

19. Derivative Instruments

FASB ASC 815, Derivatives and Hedging, establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. As required by GAAP, the Company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivatives and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.

For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivatives is initially reported in other comprehensive income (outside of earnings) and subsequently reclassified into earnings when the hedged transaction affects earnings, with any ineffective portion of changes in the fair value of the derivative recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction.

During the first quarter of 2008, the Company executed an interest rate swap to hedge a $25 million floating-rate subordinated note that was entered into by PNB during the fourth quarter of 2007. The Company's objective in using this derivative is to add stability to interest expense and to manage its exposure to interest rate risk. Our interest rate swap involves the receipt of variable-rate amounts in exchange for fixed-rate payments over the life of the agreement without exchange of the underlying principal amount, and has been designated as a cash flow hedge.

At December 31, 2011 and 2010, the interest rate swap's fair value of $(0.8) million and $(1.6) million, respectively, was included in other liabilities. No hedge ineffectiveness on the cash flow hedge was recognized during the twelve months ended December 31, 2011 or 2010. At December 31, 2011, the variable rate on the $25 million subordinated note was 2.58% (3-month LIBOR plus 200 basis points) and Park was paying 6.01% (4.01% fixed rate on the interest rate swap plus 200 basis points).

For the twelve months ended December 31, 2011 and 2010, the change in the fair value of the interest rate swap reported in other comprehensive income was a gain of $512,000 (net of taxes of $276,000) and a loss of $98,000 (net of taxes of $53,000), respectively. Amounts reported in accumulated other comprehensive income related to the interest rate swap will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt.

As of December 31, 2011 and 2010, no derivatives were designated as fair value hedges or hedges of net investments in foreign operations. Additionally, the Company does not use derivatives for trading or speculative purposes.

As of December 31, 2011 and December 31, 2010, Park had mortgage loan interest rate lock commitments (IRLCs) outstanding of approximately $17.2 million and $14.5 million, respectively. Park has specific forward contracts to sell each of these loans to a third party investor. These loan commitments represent derivative instruments, which are required to be carried at fair value. The derivative instruments used are not designed as hedges under GAAP. The fair value of the derivative instruments was approximately $251,000 at December 31, 2011 and $166,000 at December 31, 2010. The fair value of the derivative instruments is included within loans held for sale and the corresponding income is included within non-yield loan fee income. Gains and losses resulting from expected sales of mortgage loans are recognized when the respective loan contract is entered into between the borrower, Park, and the third party investor. The fair value of Park's mortgage IRLCs is based on current secondary market pricing.

In connection with the sale of Park's Class B Visa shares during the 2009 year, Park entered into a swap agreement with the purchaser of the shares. The swap agreement adjusts for dilution in the conversion ratio of Class B Visa shares resulting from certain Visa litigation. At December 31, 2011 and December 31, 2010, the fair value of the swap liability of $700,000 and $60,000, respectively, is an estimate of the exposure based upon probability-weighted potential Visa litigation losses.

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Benefit Plans (Plan Assets And Benefit Obligation Activity) (Details) (USD $) In Thousands, unless otherwise specified	1 Months Ended	12 Months Ended
	Jan. 31, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Benefit Plans [Abstract]
Fair value at beginning of measurement period	$ 85,464	$ 85,464	$ 75,815
Actual return on plan assets		1,813	11,296
Company contributions	14,000	14,000	2,000
Benefits paid		(4,696)	(3,647)
Fair value at end of measurement period		96,581	85,464	75,815
Projected benefit obligation at beginning of measurement period	74,164	74,164	60,342
Service cost		4,557	3,671	3,813
Interest cost		3,967	3,583	3,432
Actuarial loss		3,515	10,215
Projected benefit obligation at the end of measurement period		81,507	74,164	60,342
Funded status at end of year (assets less benefit obligation)		$ 15,074	$ 11,300

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Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2011

Earnings Per Common Share [Abstract]

Summary Of Computation Of Basic And Diluted Earnings Per Common Share

Year ended December 31 (In thousands, except per share data)	2011		2010		2009
Numerator:
Net income available to common shareholders	$	76,284	$	52,294	$	68,430
Denominator:
Basic earnings per common share:
Weighted-average shares		15,400,155		15,152,692		14,206,335
Effect of dilutive securities – stock options and warrants		1,291		3,043		-
Diluted earnings per common share:
Adjusted weighted-average shares and assumed conversions		15,401,446		15,155,735		14,206,335
Earnings per common share:
Basic earnings per common share	$	4.95	$	3.45	$	4.82
Diluted earnings per common share	$	4.95	$	3.45	$	4.82

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Income Taxes (Reconciliation Of Federal Income Tax Expense) (Details)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income Taxes [Abstract]
Statutory federal corporate tax rate	35.00%	35.00%	35.00%
Tax-exempt interest income, net of disallowed interest	(1.00%)	(1.70%)	(1.30%)
Bank owned life insurance	(1.50%)	(2.30%)	(1.80%)
Tax credits (low income housing)	(5.20%)	(6.70%)	(4.80%)
State income tax expense, net of federal benefit	4.70%	(3.00%)	(1.60%)
Valuation allowance, net of federal benefit	(1.30%)	2.00%
Other	(1.20%)	(1.00%)	(1.90%)
Effective tax rate	29.50%	22.30%	23.60%

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Premises And Equipment (Tables)

12 Months Ended

Dec. 31, 2011

Premises And Equipment [Abstract]

Major Categories Of Premises And Equipment

December 31 (In thousands)	2011			2010
Land	$	18,151		$	23,827
Buildings		69,690			78,185
Equipment, furniture and fixtures		59,037			61,086
Leasehold improvements		4,283			6,031
Total	$	151,161		$	169,129
Less accumulated depreciation		(97,420	)		(99,562	)
Premises and Equipment, Net	$	53,741		$	69,567

Schedule Of The Future Minimum Rental Payments

(In thousands)
2012	$	1,448
2013		1,104
2014		910
2015		714
2016		457
Thereafter		961
Total	$	5,594

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Other Comprehensive Income (Loss) (Other Comprehensive Income (Loss) Components And Related Taxes) (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Other Comprehensive Income (Loss) [Abstract]
Unrealized gains (losses) on available-for-sale securities, Before-tax amount	$ 25,063,000	$ (11,218,000)	$ 5,012,000
Unrealized gains (losses) on available-for-sale securities, Tax effect	8,772,000	(3,926,000)	1,754,000
Unrealized gains (losses) on available-for-sale securities, Net-of-tax amount	16,291,000	(7,292,000)	3,258,000
Reclassification adjustment for gains realized in net income, Before-tax amount	(28,829,000)	(11,864,000)	(7,340,000)
Reclassification adjustment for gains realized in net income, Tax effect	(10,090,000)	(4,152,000)	(2,569,000)
Reclassification adjustment for gains realized in net income, Net-of-tax amount	(18,739,000)	(7,712,000)	(4,771,000)
Unrealized net holding gain (loss) on cash flow hedge, Before-tax amount	788,000	(151,000)	454,000
Unrealized net holding gain (loss) on cash flow hedge, Tax effect	276,000	(53,000)	159,000
Unrealized net holding gain (loss) on cash flow hedge, Net-of-tax amount	512,000	(98,000)	295,000
Changes in pension plan assets and benefit obligations recognized in other comprehensive income, Before-Tax Amount	(7,734,000)	(3,734,000)	9,666,000
Changes in pension plan assets and benefit obligations recognized in other comprehensive income, Tax Effect	(2,707,000)	(1,307,000)	3,383,000
Changes in pension plan assets and benefit obligations recognized in other comprehensive income, Net-of-Tax Amount	(5,027,000)	(2,427,000)	6,283,000
Other comprehensive income (loss), Before-tax amount	(10,712,000)	(26,967,000)	7,792,000
Other comprehensive income (loss), Tax effect	(3,749,000)	(9,438,000)	2,727,000
Other comprehensive income (loss), Net-of-tax amount	$ (6,963,000)	$ (17,529,000)	$ 5,065,000

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Consolidated Statements Of Changes In Stockholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified	Preferred Stock [Member]	Common Stock [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2008	$ 95,721	$ 305,507	$ 438,504	$ (207,665)	$ 10,596		$ 642,663
Shares outstanding, beginning balance at Dec. 31, 2008	100,000	13,971,727
Net income			74,192			74,192	74,192
Other comprehensive income (loss), net of tax:
Change in funded status of pension plan, net of income taxes					6,283	6,283	6,283
Unrealized net holding gain (loss) on cash flow hedge, net of income taxes					295	295	295
Unrealized net holding gain (loss) on securities available-for-sale, net of income taxes					(1,513)	(1,513)	(1,513)
Total comprehensive income						79,257
Cash dividends paid per share			(53,563)				(53,563)
Reissuance of common stock from treasury shares held, shares		904,072
Reissuance of common stock from treasury shares held			(29,299)	81,710			52,411
Cash payment for fractional shares in dividend reinvestment plan		(2)					(2)
Fractional shares issued in dividend reinvestment plan		(39)
Common stock warrants issued		1,064					1,064
Accretion of discount on preferred stock	762		(762)
Preferred stock dividends			(5,000)				(5,000)
Treasury stock reissued for director grants, shares		7,020
Treasury stock reissued for director grants			(200)	634			434
Balance at Dec. 31, 2009	96,483	306,569	423,872	(125,321)	15,661		717,264
Shares outstanding, ending balance at Dec. 31, 2009	100,000	14,882,780
Net income			58,101			58,101	58,101
Other comprehensive income (loss), net of tax:
Change in funded status of pension plan, net of income taxes					(2,427)	(2,427)	(2,427)
Unrealized net holding gain (loss) on cash flow hedge, net of income taxes					(98)	(98)	(98)
Unrealized net holding gain (loss) on securities available-for-sale, net of income taxes					(15,004)	(15,004)	(15,004)
Total comprehensive income						40,572
Cash dividends paid per share			(57,076)				(57,076)
Reissuance of common stock from treasury shares held, shares		509,184
Reissuance of common stock from treasury shares held		(898)	(12,729)	46,954			33,327
Cash payment for fractional shares in dividend reinvestment plan		(4)					(4)
Fractional shares issued in dividend reinvestment plan		50
Common stock warrants issued		176					176
Common stock warrants expired		(166)	166
Accretion of discount on preferred stock	807		(807)
Preferred stock dividends			(5,000)				(5,000)
Treasury stock reissued for director grants, shares		7,020
Treasury stock reissued for director grants			(185)	634			449
Balance at Dec. 31, 2010	97,290	305,677	406,342	(77,733)	(1,868)		729,708
Shares outstanding, ending balance at Dec. 31, 2010	100,000	15,398,934
Net income			82,140			82,140	82,140
Other comprehensive income (loss), net of tax:
Change in funded status of pension plan, net of income taxes					(5,027)	(5,027)	(5,027)
Unrealized net holding gain (loss) on cash flow hedge, net of income taxes					512	512	512
Unrealized net holding gain (loss) on securities available-for-sale, net of income taxes					(2,448)	(2,448)	(2,448)
Total comprehensive income						75,117
Cash dividends paid per share			(57,907)				(57,907)
Cash payment for fractional shares in dividend reinvestment plan		(2)					(2)
Fractional shares issued in dividend reinvestment plan		(42)
Common stock warrants expired		(176)	176
Accretion of discount on preferred stock	856		(856)
Preferred stock dividends			(5,000)				(5,000)
Treasury stock reissued for director grants, shares		7,020
Treasury stock reissued for director grants			(338)	726			388
Balance at Dec. 31, 2011	$ 98,146	$ 305,499	$ 424,557	$ (77,007)	$ (8,831)		$ 742,364
Shares outstanding, ending balance at Dec. 31, 2011	100,000	15,405,912

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Short-Term Borrowings (Schedule Of Short-Term Borrowings) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Short-term Debt [Line Items]
Securities sold under agreements to repurchase and federal funds purchased	$ 240,594	$ 279,669
Federal Home Loan Bank advances	23,000	384,000
Total short-term borrowings	263,594	663,669
Repurchase Agreements And Federal Funds Purchased [Member]
Short-term Debt [Line Items]
Total short-term borrowings	240,594	279,669
Highest month-end balance	265,412	295,467
Average daily balance	246,145	269,260
Weighted-average interest rate: As of year-end	0.29%	0.32%
Weighted-average interest rate: Paid during the year	0.30%	0.39%
Federal Home Loan Bank Advances [Member]
Short-term Debt [Line Items]
Total short-term borrowings	23,000	384,000
Highest month-end balance	232,000	384,000
Average daily balance	$ 51,392	$ 31,679
Weighted-average interest rate: As of year-end	0.40%	0.19%
Weighted-average interest rate: Paid during the year	0.18%	0.39%

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Sale Of Vision Bank

12 Months Ended

Dec. 31, 2011

Sale Of Vision Bank [Abstract]

Sale Of Vision Bank

3. Sale of Vision Bank

On November 16, 2011, Park and Vision entered into a Purchase and Assumption Agreement (the "Purchase Agreement") with Home BancShares, Inc. ("Home") and its wholly-owned subsidiary Centennial Bank, an Arkansas state-chartered bank ("Centennial"), to sell substantially all of the performing loans, operating assets and liabilities associated with Vision to Centennial for a purchase price of $27.9 million.

Under the terms of the Purchase Agreement, Centennial will purchase the real estate and other assets described in the Purchase Agreement which are used in the banking business conducted by Vision at its eight offices in Baldwin County, Alabama and its nine offices in the Florida panhandle counties of Bay, Gulf, Okaloosa, Santa Rosa and Walton. Centennial will assume Vision's obligations relating to all of Vision's deposit accounts and will purchase substantially all of Vision's performing loans. The assets purchased and liabilities assumed by Centennial, classified on Park's consolidated balance sheet as held for sale at December 31, 2011, include the following:

Assets and Liabilities Held for Sale December 31, 2011 (in thousands)
Assets held for sale	2011
Cash and due from banks	$	6,766
Loans		369,044
Allowance for loan losses		(13,100	)
Net loans		355,944
Fixed assets		14,861
Other assets		4,891
Total assets held for sale	$	382,462

Liabilities held for sale	2011
Deposits	$	532,598
Other liabilities		3,588
Total liabilities held for sale	$	536,186

The assets and liabilities held for sale were evaluated for impairment as of December 31, 2011 and continue to be carried at their historical cost, net of any previously established valuation allowance.

Vision will retain all of the non-performing loans and certain performing loans under the terms of the Purchase Agreement. As of December 31, 2011, the carrying balance of nonperforming loans totaled approximately $101 million and the carrying balance of performing loans totaled approximately $23 million. Prior to the transfer to assets held for sale, Vision Bank's allowance for loan losses totaled $23.8 million at December 31, 2011. Upon the transfer, $13.1 million was transferred out of the allowance for loan losses with the related loans that moved to assets held for sale. Management expects that the remaining loans at Vision Bank will be charged down by the remaining balance of the allowance for loan losses of $10.7 million prior to transfer to SE Property Holdings, LLC ("SE, LLC"). Vision Bank will be merged with and into SE, LLC, the non-banking subsidiary of Park's Parent Company, promptly following the closing of the transaction with Centennial.

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Summary Of Significant Accounting Policies (Activity In Goodwill And Other Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Goodwill And Intangible Assets [Abstract]
Goodwill, Beginning Balance	$ 72,334	$ 72,334	$ 72,334
Goodwill, Ending Balance	72,334	72,334	72,334
Core Deposit Intangibles, Beginning Balance	6,043	9,465	13,211
Core Deposit Intangibles, Amortization	(3,534)	(3,422)	(3,746)
Core Deposit Intangibles, Ending Balance	2,509	6,043	9,465
Total Goodwill and Core Deposit Intangibles, Beginning Balance	78,377	81,799	85,545
Amortization of intangibles	(3,534)	(3,422)	(3,746)
Total Goodwill and Core Deposit Intangibles, Ending Balance	$ 74,843	$ 78,377	$ 81,799

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Premises And Equipment (Schedule Of The Future Minimum Rental Payments) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Premises And Equipment [Abstract]
2012	$ 1,448
2013	1,104
2014	910
2015	714
2016	457
Thereafter	961
Total	$ 5,594

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Income Taxes (Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income Taxes [Abstract]
January 1 Balance	$ 477	$ 595	$ 783
Additions based on tax positions related to the current year	70	69	64
Additions for tax positions of prior years	1	7
Reductions for tax positions of prior years	(3)	(131)	(189)
Reductions due to statute of limitations	(60)	(63)	(63)
December 31 Balance	$ 485	$ 477	$ 595

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Loans (Composition Of Loan Portfolio By Class Of Loan) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010
Financing Receivable, Recorded Investment [Line Items]
Loan balance	$ 4,317,099		$ 4,732,685
Accrued interest receivable	14,684		17,505
Total recorded investment	4,331,783		4,750,190
Commercial, Financial And Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	743,797	[1]	737,902	[1]
Accrued interest receivable	3,121	[1]	2,886	[1]
Total recorded investment	746,918	[1]	740,788	[1]
Construction Real Estate - Vision Commercial Land And Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	31,603	[1]	171,334	[1]
Accrued interest receivable	31	[1]	282	[1]
Total recorded investment	31,634	[1]	171,616	[1]
Construction Real Estate - Remaining Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	156,053		195,693
Accrued interest receivable	394		622
Total recorded investment	156,447		196,315
Construction Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	20,039		26,326
Accrued interest receivable	64		95
Total recorded investment	20,103		26,421
Construction Real Estate - Installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	9,851		13,127
Accrued interest receivable	61		54
Total recorded investment	9,912		13,181
Residential Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	395,824		464,903
Accrued interest receivable	1,105		1,403
Total recorded investment	396,929		466,306
Residential Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	953,758		906,648
Accrued interest receivable	1,522		2,789
Total recorded investment	955,280		909,437
Residential Real Estate - HELOC [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	227,682		260,463
Accrued interest receivable	942		1,014
Total recorded investment	228,624		261,477
Residential Real Estate - Installment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	51,354		60,195
Accrued interest receivable	236		255
Total recorded investment	51,590		60,450
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	1,108,574	[1]	1,226,616	[1]
Accrued interest receivable	4,235	[1]	4,804	[1]
Total recorded investment	1,112,809	[1]	1,231,420	[1]
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	616,505		666,871
Accrued interest receivable	2,930		3,245
Total recorded investment	619,435		670,116
Leases [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan balance	2,059		2,607
Accrued interest receivable	43		56
Total recorded investment	$ 2,102		$ 2,663

[1] Included within commercial, financial and agricultural loans, commercial real estate loans, and Vision commercial land and development loans are an immaterial amount of consumer loans that are not broken out by class.

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Loan Servicing

12 Months Ended

Dec. 31, 2011

Loan Servicing [Abstract]

Loan Servicing

20. Loan Servicing

Park serviced sold mortgage loans of $1,349 million at December 31, 2011 compared to $1,471 million at December 31, 2010, and $1,518 million at December 31, 2009. At December 31, 2011, $25 million of the sold mortgage loans were sold with recourse compared to $36 million at December 31, 2010. Management closely monitors the delinquency rates on the mortgage loans sold with recourse. At December 31, 2011, management determined that no liability was deemed necessary for these loans.

Park capitalized $1.7 million in mortgage servicing rights in 2011, $3.1 million in 2010 and $5.5 million in 2009. Park's amortization of mortgage servicing rights was $2.6 million in 2011, $3.2 million in 2010 and $4.0 million in 2009. The amortization of mortgage loan servicing rights is included within "Other service income". Generally, mortgage servicing rights are capitalized and amortized on an individual sold loan basis. When a sold mortgage loan is paid off, the related mortgage servicing rights are fully amortized.

Activity for mortgage servicing rights and the related valuation allowance follows:

December 31 (In thousands)	2011			2010
Mortgage servicing rights:
Carrying amount, net, beginning of year	$	10,488		$	10,780
Additions		1,659			3,062
Amortization		(2,573	)		(3,180	)
Change in valuation allowance		(273	)		(174	)
Carrying amount, net, end of year	$	9,301		$	10,488
Valuation allowance:
Beginning of year	$	748		$	574
Additions expensed		273			174
End of year	$	1,021		$	748

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Fair Values (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Mortgage Loans Held for Sale, Fair Value	$ 11,535	$ 8,340
Mortgage IRLCs	251	166
Level 2 [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Mortgage Loans Held for Sale, Fair Value	11,535	8,340
Mortgage IRLCs	251	166
Obligations Of U.S. Treasury And Other U.S. Government Sponsored Entities [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	371,657	273,313
Obligations Of U.S. Treasury And Other U.S. Government Sponsored Entities [Member] | Level 2 [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	371,657	273,313
Obligations Of States And Political Subdivisions [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	2,660	11,044
Obligations Of States And Political Subdivisions [Member] | Level 2 [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	2,660	8,446
Obligations Of States And Political Subdivisions [Member] | Level 3 [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities		2,598
U.S. Government Sponsored Entities' Asset-Backed Securities [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	444,295	1,011,412
U.S. Government Sponsored Entities' Asset-Backed Securities [Member] | Level 2 [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	444,295	1,011,412
Equity Securities [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	2,033	1,753
Equity Securities [Member] | Level 1 [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	1,270	1,008
Equity Securities [Member] | Level 3 [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Investment Securities	763	745
Interest Rate Swap [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Swap, Fair Value	846	1,634
Interest Rate Swap [Member] | Level 2 [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Swap, Fair Value	846	1,634
Fair Value Swap [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Swap, Fair Value	700	60
Fair Value Swap [Member] | Level 3 [Member]
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
Swap, Fair Value	$ 700	$ 60

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Sale Of Common Shares And Issuance Of Common Stock Warrants (Details)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Series A Common Share Warrants [Member]
Sale Of Common Shares And Issuance Of Common Stock Warrants [Line Items]
Common share warrants outstanding		35,992
Common share warrants exercise price		76.41
Common share warrants expiration date	June 10, 2011
Series B Common Share Warrants [Member]
Sale Of Common Shares And Issuance Of Common Stock Warrants [Line Items]
Common share warrants outstanding		35,992
Common share warrants exercise price		76.41
Common share warrants expiration date	December 20, 2011

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Parent Company Statements (Balance Sheets) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Other assets	$ 857,631	$ 519,580
Total assets	6,972,245	7,282,261	7,040,329
Subordinated notes	75,250	75,250
Other liabilities	602,741	81,481
Total liabilities	6,229,881	6,552,553
Total liabilities and stockholders' equity	6,972,245	7,282,261
Parent Company [Member]
Cash	140,607	160,011	155,908	80,343
Investment in subsidiaries	602,270	601,201
Debentures receivable from subsidiary banks	5,000	5,000
Other investments	2,280	1,451
Other assets	90,438	69,845
Total assets	840,595	837,508
Subordinated notes	50,250	50,250
Other liabilities	47,981	57,550
Total liabilities	98,231	107,800
Total stockholders' equity	742,364	729,708
Total liabilities and stockholders' equity	$ 840,595	$ 837,508

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Loans (Aging Of Recorded Investment In Past Due Loans) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	$ 37,517		$ 49,393
Past due nonaccrual loans and loans past due 90 days or more and accruing	94,663		209,546
Total loans past due	132,180		258,939
Total current	4,199,603		4,491,251
Total recorded investment	4,331,783		4,750,190
Commercial, Financial And Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	3,106		2,247
Past due nonaccrual loans and loans past due 90 days or more and accruing	11,308		15,622
Total loans past due	14,414		17,869
Total current	732,504		722,919
Total recorded investment	746,918	[1]	740,788	[1]
Construction Real Estate - Vision Commercial Land And Development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days			2,406
Past due nonaccrual loans and loans past due 90 days or more and accruing	19,235		65,130
Total loans past due	19,235		67,536
Total current	12,399		104,080
Total recorded investment	31,634	[1]	171,616	[1]
Construction Real Estate - Remaining Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	99		141
Past due nonaccrual loans and loans past due 90 days or more and accruing	7,839		19,687
Total loans past due	7,938		19,828
Total current	148,509		176,487
Total recorded investment	156,447		196,315
Construction Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	76		479
Past due nonaccrual loans and loans past due 90 days or more and accruing			148
Total loans past due	76		627
Total current	20,027		25,794
Total recorded investment	20,103		26,421
Construction Real Estate - Installment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	421		235
Past due nonaccrual loans and loans past due 90 days or more and accruing	8		399
Total loans past due	429		634
Total current	9,483		12,547
Total recorded investment	9,912		13,181
Residential Real Estate - Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	1,545		3,281
Past due nonaccrual loans and loans past due 90 days or more and accruing	10,097		26,845
Total loans past due	11,642		30,126
Total current	385,287		436,180
Total recorded investment	396,929		466,306
Residential Real Estate - Mortgage [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	15,879		17,460
Past due nonaccrual loans and loans past due 90 days or more and accruing	20,614		24,422
Total loans past due	36,493		41,882
Total current	918,787		867,555
Total recorded investment	955,280		909,437
Residential Real Estate - HELOC [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	1,015		1,396
Past due nonaccrual loans and loans past due 90 days or more and accruing	436		667
Total loans past due	1,451		2,063
Total current	227,173		259,414
Total recorded investment	228,624		261,477
Residential Real Estate - Installment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	1,549		1,018
Past due nonaccrual loans and loans past due 90 days or more and accruing	1,136		892
Total loans past due	2,685		1,910
Total current	48,905		58,540
Total recorded investment	51,590		60,450
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	2,632		9,521
Past due nonaccrual loans and loans past due 90 days or more and accruing	21,798		53,269
Total loans past due	24,430		62,790
Total current	1,088,379		1,168,630
Total recorded investment	1,112,809	[1]	1,231,420	[1]
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing loans past due 30-89 days	11,195		11,204
Past due nonaccrual loans and loans past due 90 days or more and accruing	2,192		2,465
Total loans past due	13,387		13,669
Total current	606,048		656,447
Total recorded investment	619,435		670,116
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	2,102		2,658
Total recorded investment	$ 2,102		$ 2,663

[1] Included within commercial, financial and agricultural loans, commercial real estate loans, and Vision commercial land and development loans are an immaterial amount of consumer loans that are not broken out by class.

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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2011

Investment Securities [Abstract]

Schedule Of Investment Securities

Amortized			Gross Unrealized			Gross Unrealized			Estimated
(In thousands)	Cost			Holding Gains			Holding Losses			Fair Value
2011:
Securities Available-for-Sale
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	370,043		$	1,614		$	-		$	371,657
Obligations of states and political subdivisions		2,616			44			-			2,660
U.S. Government sponsored entities' asset-backed securities		427,300			16,995			-			444,295
Other equity securities		1,188			877			(32	)		2,033
Total	$	801,147		$	19,530		$	(32	)	$	820,645
2011:
Securities Held-to-Maturity
Obligations of states and political subdivisions	$	1,992		$	5		$	-		$	1,997
U.S. Government sponsored entities' asset-backed securities		818,232			14,377			(32	)		832,577
Total	$	820,224		$	14,382		$	(32	)	$	834,574

Amortized			Gross Unrealized			Gross Unrealized			Estimated
(In thousands)	Cost			Holding Gains			Holding Losses			Fair Value
2010:
Securities Available-for-Sale
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
2010:
Securities Held-to-Maturity
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

Schedule Of Unrealized Loss On Securities

Less than					12 Months
	12 Months					or Longer				Total
			Unrealized					Unrealized				Unrealized
(In thousands)	Fair Value		Losses			Fair Value		Losses		Fair Value		Losses
2011:
Securities Available-for-Sale
Other equity securities	$	-	$	-		$	80	$	32	$	80	$	32
2011:
Securities Held-to-Maturity
U.S. Government sponsored entities' asset-backed securities	$	-	$	-		$	38,775	$	32	$	38,775	$	32

Less than					12 Months
	12 Months					or Longer				Total
			Unrealized					Unrealized				Unrealized
(In thousands)	Fair Value		Losses			Fair Value		Losses		Fair Value		Losses
2010:
Securities Available-for-Sale
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
2010:
Securities Held-to-Maturity
U.S. Government sponsored entities' asset-backed securities	$	297,584	$	4,620		$	—	$	—	$	297,584	$	4,620

Amortized Cost And Estimated Fair Value Of Investments In Debt Securities By Contractual Maturity

	Amortized		Estimated
(In thousands)	Cost		Fair Value
Securities Available-for-Sale
U.S. Treasury and sponsored entities' notes:
Due within one year	$	370,043	$	371,657
Total	$	370,043	$	371,657
Obligations of states and political subdivisions:
Due within one year	$	2,121	$	2,133
Due one through five years		495		527
Total	$	2,616	$	2,660
U.S. Government sponsored entities' asset-backed securities:
Total	$	427,300	$	444,295
Securities Held-to-Maturity
Obligations of states and political subdivisions:
Due within one year	$	1,992	$	1,997
Total	$	1,992	$	1,997
U.S. Government sponsored entities' asset-backed securities:
Total	$	818,232	$	832,577

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Benefit Plans

12 Months Ended

Dec. 31, 2011

Benefit Plans [Abstract]

Benefit Plans

13. Benefit Plans

The Corporation has a noncontributory Defined Benefit Pension Plan (the "Pension Plan") covering substantially all of the employees of the Corporation and its subsidiaries. The Pension Plan provides benefits based on an employee's years of service and compensation.

The Corporation's funding policy is to contribute annually an amount that can be deducted for federal income tax purposes using a different actuarial cost method and different assumptions from those used for financial reporting purposes. Management contributed $2 million in September 2010, which was deductible on the 2010 tax return and was reflected in deferred tax liabilities at December 31, 2010. In January 2011, management contributed $14 million, of which $12.4 million was deductible on the 2010 tax return and $1.6 million on the 2011 tax return. In January 2012, management contributed $15.9 million, of which $14.3 million was deductible on the 2011 tax return and $1.6 million on the 2012 tax return. The entire $14.3 million deductible on the 2011 tax return is reflected as part of the deferred taxes at December 31, 2011. See Note 14 of these Notes to Consolidated Financial Statements. Park does not expect to make any additional contributions to the Pension Plan in 2012.

Using an accrual measurement date of December 31, 2011 and 2010, plan assets and benefit obligation activity for the Pension Plan are listed below:

(In thousands)	2011			2010
Change in fair value of plan assets
Fair value at beginning of measurement period	$	85,464		$	75,815
Actual return on plan assets		1,813			11,296
Company contributions		14,000			2,000
Benefits paid		(4,696	)		(3,647	)
Fair value at end of measurement period	$	96,581		$	85,464

Change in benefit obligation
Projected benefit obligation at beginning of measurement period	$	74,164		$	60,342
Service cost		4,557			3,671
Interest cost		3,967			3,583
Actuarial loss		3,515			10,215
Benefits paid		(4,696	)		(3,647	)
Projected benefit obligation at the end of measurement period	$	81,507		$	74,164
Funded status at end of year (assets less benefit obligation)	$	15,074		$	11,300

The asset allocation for the Pension Plan as of the measurement date, by asset category, was as follows:

			Percentage of Plan Assets
Asset category	Target Allocation		2011			2010
Equity securities		50% - 100%		80	%		86	%
Fixed income and cash equivalents		remaining balance		20	%		14	%
Total				100	%		100	%

The investment policy, as established by the Retirement Plan Committee, is to invest assets according to the target allocation stated above. Assets will be reallocated periodically based on the investment strategy of the Retirement Plan Committee. The investment policy is reviewed periodically.

The expected long-term rate of return on plan assets was 7.75% in 2011 and 2010. This return was based on the expected return of each of the asset categories, weighted based on the median of the target allocation for each class.

The accumulated benefit obligation for the Pension Plan was $71.4 million and $63.5 million at December 31, 2011 and 2010, respectively.

On November 17, 2009, the Park Pension Plan completed the purchase of 115,800 common shares of Park for $7.0 million or $60.45 per share. At December 31, 2011 and 2010, the fair value of the 115,800 common shares held by the Pension Plan was $7.5 million, or $65.06 per share and $8.4 million, or $72.67 per share, respectively.

The weighted average assumptions used to determine benefit obligations at December 31, 2011 and December 31, 2010 were as follows:

	2011			2010
Discount rate		5.18	%		5.50	%
Rate of compensation increase		3.00	%		3.00	%

The estimated future pension benefit payments reflecting expected future service for the next ten years are shown below in thousands:

2012	$	5,535
2013		4,999
2014		5,543
2015		6,259
2016		6,284
2017-2021		37,823
Total	$	66,443

The following table shows ending balances of accumulated other comprehensive income (loss) at December 31, 2011 and 2010.

(In thousands)	2011			2010
Prior service cost	$	(74	)	$	(93	)
Net actuarial loss		(32,163	)		(24,410	)
Total		(32,237	)		(24,503	)
Deferred taxes		11,283			8,576
Accumulated other comprehensive loss	$	(20,954	)	$	(15,927	)

Using an actuarial measurement date of December 31 for 2011, 2010 and 2009, components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) were as follows:

(In thousands)	2011			2010			2009
Components of net periodic benefit cost and other amounts recognized in other comprehensive income (Loss)
Service cost	$	(4,557	)	$	(3,671	)	$	(3,813	)
Interest cost		(3,967	)		(3,583	)		(3,432	)
Expected return on plan assets		7,543			5,867			4,487
Amortization of prior service cost		(19	)		(22	)		(34	)
Recognized net actuarial loss		(1,411	)		(1,079	)		(2,041	)
Net periodic benefit cost	$	(2,411	)	$	(2,488	)	$	(4,833	)
Change to net actuarial (loss)/gain for the period	$	(9,164	)	$	(4,835	)	$	7,591
Amortization of prior service cost		19			22			34
Amortization of net loss		1,411			1,079			2,041
Total recognized in other comprehensive (loss)/income		(7,734	)		(3,734	)		9,666
Total recognized in net benefit cost and other comprehensive (loss)/income	$	(10,145	)	$	(6,222	)	$	4,833

The estimated prior service costs for the Pension Plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $20,000. The estimated net actuarial (loss) expected to be recognized in the next fiscal year is $(2.0) million.

The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, 2011 and 2010 are listed below:

	2011			2010
Discount Rate		5.50	%		6.00	%
Rate of compensation increase		3.00	%		3.00	%
Expected long-term return on plan assets		7.75	%		7.75	%

Management believes the 7.75% expected long-term rate of return is an appropriate assumption given historical performance of the S&P 500 Index, which management believes is a good indicator of future performance of Pension Plan assets.

The Pension Plan maintains cash in a Park National Bank savings account. The Pension Plan cash balance was $2.1 million at December 31, 2011.

GAAP defines fair value as the price that would be received by Park for an asset or paid by Park to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date, using the most advantageous market for the asset or liability. The fair values of equity securities, consisting of mutual fund investments and common stock held by the Pension Plan and the fixed income and cash equivalents, are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs). The market value of Pension Plan assets at December 31, 2011 was $96.6 million. At December 31, 2011, $83.2 million of equity investments in the Pension Plan were categorized as Level 1 inputs; $13.4 million of plan investments in corporate and U.S. Government sponsored entity bonds were categorized as Level 2 inputs, as fair value is based on quoted market prices of comparable instruments; and no investments were categorized as Level 3 inputs. The market value of Pension Plan assets was $85.5 million at December 31, 2010. At December 31, 2010, $73.5 million of investments in the Pension Plan were categorized as Level 1 inputs; $12.0 million were categorized as Level 2; and no investments were categorized as Level 3.

The Corporation has a voluntary salary deferral plan covering substantially all of the employees of the Corporation and its subsidiaries. Eligible employees may contribute a portion of their compensation subject to a maximum statutory limitation. The Corporation provides a matching contribution established annually by the Corporation. Contribution expense for the Corporation was $1.1 million, $1.0 million, and $1.5 million for 2011, 2010 and 2009, respectively.

The Corporation has a Supplemental Executive Retirement Plan (SERP) covering certain key officers of the Corporation and its subsidiaries with defined pension benefits in excess of limits imposed by federal tax law. At December 31, 2011 and 2010, the accrued benefit cost for the SERP totaled $7.2 million. The expense for the Corporation was $0.6 million for 2011 and $0.5 million for both 2010 and 2009.

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Benefit Plans (Weighted Average Assumptions Used To Determine Net Periodic Benefit Cost) (Details)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Benefit Plans [Abstract]
Discount Rate	5.50%	6.00%
Rate of compensation increase	3.00%	3.00%
Expected long-term return on plan assets	7.75%	7.75%