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%.