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Park National Corporation Reports First Quarter 2015 Financial Results and Declares Dividend

NEWARK, Ohio, April 24, 2015 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE MKT:PRK) today announced financial results for the three months ended March 31, 2015. The board of directors also declared a quarterly cash dividend of $0.94 per common share, payable on June 10, 2015 to common shareholders of record as of May 22, 2015.

Park's net income for the first quarter of 2015 was $19.0 million, compared to $19.6 million for the same period in 2014, a decrease of $0.6 million or 3.1 percent. Net income per diluted common share for the first quarter of 2015 was $1.23, compared to $1.27 in the same period of 2014.

Park's community-banking subsidiary, The Park National Bank, reported net income of $19.2 million for the three-months ended March 31, 2015, compared to net income of $19.6 million for the same period of 2014. The Park National Bank had total assets of $7.2 billion at March 31, 2015 and $6.7 billion at March 31, 2014. This performance generated a return on average assets of 1.09 percent and 1.19 percent for the bank for the three-month periods ended March 31, 2015 and 2014, respectively.

The Park National Bank loan portfolio expanded during the first quarter of 2015 and the full year 2014. Loans outstanding at March 31, 2015 were $4.79 billion, compared to $4.78 billion at December 31, 2014 and $4.57 billion at March 31, 2014, increases of $5.1 million and $220 million, respectively over the last three and twelve months.

About Park National Corporation

Headquartered in Newark, Ohio, Park National Corporation had $7.3 billion in total assets (as of March 31, 2015). The Park organization principally consists of 11 community bank divisions, a non-bank subsidiary and two specialty finance companies. Park's Ohio-based banking operations are conducted through Park subsidiary The Park National Bank and its divisions, which include Fairfield National Bank Division, Richland Bank Division, Century National Bank Division, First-Knox National Bank Division, Farmers Bank Division, United Bank, N.A. Division, Second National Bank Division, Security National Bank Division, Unity National Bank Division, and The Park National Bank of Southwest Ohio & Northern Kentucky Division; and Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance). The Park organization also includes Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

Complete financial tables are listed below…

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

Park cautions that any forward-looking statements contained in this Current Report on Form 8-K or made by management of Park 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 our business plan successfully and within the expected timeframe; general economic and financial market conditions, specifically in the real estate markets and the credit markets, either nationally or in the states in which Park and our subsidiaries do business, may experience a slowing or reversal of the current economic expansion in addition to continuing residual effects of recessionary conditions and an uneven spread of positive impacts of recovery on the economy and our counterparties, including adverse impacts on demand for loan, deposit and other financial services, delinquencies, defaults and counterparty ability to meet credit and other obligations; 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 as well as reduce interest margins; changes in consumer spending, borrowing and saving habits, whether due to changing business and economic conditions, legislative and regulatory initiatives, or other factors; changes in customers', suppliers', and other counterparties' performance and creditworthiness; asset/liability repricing risks and liquidity risks; our liquidity requirements could be adversely affected by changes to regulations governing bank capital and liquidity standards as well as by changes in our assets and liabilities; competitive factors among financial services organizations could increase significantly, including product and pricing pressures, changes to third-party relationships and our ability to attract, develop and retain qualified bank professionals; clients could pursue alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; the nature, timing and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and our subsidiaries, including changes in laws and regulations concerning taxes, pensions, bankruptcy, consumer protection, 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 "Dodd-Frank Act"), as well as future regulations which will be adopted by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, to implement the Dodd-Frank Act's provisions, the Budget Control Act of 2011, the American Taxpayer Relief Act of 2012 and the Basel III regulatory capital reforms; the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board, 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 trade, monetary, fiscal and other governmental policies of the U.S. federal government, including money supply and interest rate policies of the Federal Reserve; disruption in the liquidity and other functioning of U.S. financial markets; the impact on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S. and European government debt and concerns regarding the creditworthiness of certain sovereign governments, supranationals and financial institutions in Europe; unfavorable resolution of legal proceedings or other claims and regulatory and other governmental examinations or other inquiries; the adequacy of our risk management program; the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; 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 our subsidiaries; and other risk factors relating to the banking 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, 2014. Park does not undertake, and specifically disclaims any obligation, to publicly release the results 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.

PARK NATIONAL CORPORATION
Financial Highlights
Three months ended March 31, 2015, December 31, 2014, and March 31, 2014
2015 2014 2014 Percent change vs.
(in thousands, except share and per share data) 1st QTR 4th QTR 1st QTR 4Q '14 1Q '14
INCOME STATEMENT:
Net interest income $ 55,535 $ 57,294 $ 54,480 (3.1) % 1.9 %
Provision for (recovery of) loan losses 1,632 (8,349) (2,225) N.M. N.M.
Other income 18,873 19,834 16,648 (4.8) % 13.4 %
Other expense 45,720 50,518 45,779 (9.5) % (0.1) %
Income before income taxes $ 27,056 $ 34,959 $ 27,574 (22.6) % (1.9) %
Income taxes 8,012 10,658 7,997 (24.8) % 0.2 %
Net income $ 19,044 $ 24,301 $ 19,577 (21.6) % (2.7) %
MARKET DATA:
Earnings per common share - basic (b) $ 1.24 $ 1.58 $ 1.27 (21.5) % (2.4) %
Earnings per common share - diluted (b) 1.23 1.58 1.27 (22.2) % (3.1) %
Cash dividends per common share 0.94 0.94 0.94 — % — %
Book value per common share at period end 46.02 45.25 43.17 1.7 % 6.6 %
Stock price per common share at period end 85.56 88.48 76.89 (3.3) % 11.3 %
Market capitalization at period end 1,315,133 1,361,919 1,183,525 (3.4) % 11.1 %
Weighted average common shares - basic (a) 15,379,170 15,393,924 15,401,105 (0.1) % (0.1) %
Weighted average common shares - diluted (a) 15,421,928 15,414,433 15,414,897 — % — %
Common shares outstanding at period end 15,370,887 15,392,399 15,392,441 (0.1) % (0.1) %
PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b) 1.07 % 1.35 % 1.17 % (20.7) % (8.5) %
Return on average equity (a)(b) 10.95 % 13.83 % 12.03 % (20.8) % (9.0) %
Yield on loans 4.68 % 4.83 % 4.84 % (3.1) % (3.3) %
Yield on investments 2.57 % 2.53 % 2.65 % 1.6 % (3.0) %
Yield on money markets 0.25 % 0.25 % 0.25 % — % — %
Yield on earning assets 3.98 % 4.11 % 4.20 % (3.2) % (5.2) %
Cost of interest bearing deposits 0.31 % 0.32 % 0.29 % (3.1) % 6.9 %
Cost of borrowings 2.34 % 2.51 % 2.61 % (6.8) % (10.3) %
Cost of paying liabilities 0.74 % 0.82 % 0.82 % (9.8) % (9.8) %
Net interest margin (g) 3.40 % 3.47 % 3.56 % (2.0) % (4.5) %
Efficiency ratio (g) 61.31 % 65.34 % 64.16 % (6.2) % (4.4) %
OTHER RATIOS (NON - GAAP):
Annualized return on average tangible assets (a)(b)(e) 1.08 % 1.37 % 1.19 % (21.2) % (9.2) %
Annualized return on average tangible equity (a)(b)(c) 12.21 % 15.43 % 13.51 % (20.9) % (9.6) %
Tangible book value per share (d) $ 41.32 $ 40.55 $ 38.47 1.9 % 7.4 %
N.M. - Not meaningful
Note: Explanations (a) - (g) are included at the end of the financial highlights.
PARK NATIONAL CORPORATION
Financial Highlights (continued)
Three months ended March 31, 2015, December 31, 2014, and March 31, 2014
Percent change vs.
BALANCE SHEET: March 31,
2015
December 31,
2014
March 31,
2014
4Q '14 1Q '14
Investment securities $ 1,457,171 $ 1,500,788 $ 1,416,624 (2.9) % 2.9 %
Loans 4,830,830 4,829,682 4,623,926 — % 4.5 %
Allowance for loan losses 55,408 54,352 60,257 1.9 % (8.0) %
Goodwill and other intangibles 72,334 72,334 72,334 — % — %
Other real estate owned 26,337 22,605 35,112 16.5 % (25.0) %
Total assets 7,303,999 7,001,199 6,809,106 4.3 % 7.3 %
Total deposits 5,515,847 5,128,000 4,976,698 7.6 % 10.8 %
Borrowings 1,018,516 1,108,582 1,118,894 (8.1) % (9.0) %
Shareholders' equity 707,431 696,541 664,470 1.6 % 6.5 %
Tangible equity (d) 635,097 624,207 592,136 1.7 % 7.3 %
Nonperforming loans 114,304 119,288 147,272 (4.2) % (22.4) %
Nonperforming assets 140,641 141,893 182,384 (0.9) % (22.9) %
ASSET QUALITY RATIOS:
Loans as a % of period end assets 66.14 % 68.98 % 67.91 % (4.1) % (2.6) %
Nonperforming loans as a % of period end loans 2.37 % 2.47 % 3.18 % (4.0) % (25.5) %
Nonperforming assets as a % of period end loans + OREO 2.90 % 2.92 % 3.91 % (0.7) % (25.8) %
Allowance for loan losses as a % of period end loans 1.15 % 1.13 % 1.30 % 1.8 % (11.5) %
Net loan charge-offs (recoveries) $ 576 $ (5,027) $ (3,014) N.M. N.M.
Annualized net loan charge-offs (recoveries) as a % of average loans (a) 0.05 % (0.41) % (0.27) % N.M. N.M.
CAPITAL & LIQUIDITY:
Total equity / Period end assets 9.69 % 9.95 % 9.76 % (2.6) % (0.7) %
Tangible equity (d) / Tangible assets (f) 8.78 % 9.01 % 8.79 % (2.6) % (0.1) %
Average equity / Average assets (a) 9.78 % 9.78 % 9.75 % — % 0.3 %
Average equity / Average loans (a) 14.64 % 14.49 % 14.32 % 1.0 % 2.2 %
Average loans / Average deposits (a) 90.34 % 92.43 % 93.55 % (2.3) % (3.4) %
N.M. - Not meaningful
Note: Explanations (a) - (g) are included at the end of the financial highlights.
PARK NATIONAL CORPORATION
Financial Highlights (continued)
(a) Averages are for the quarters ended March 31, 2015, December 31, 2014 and March 31, 2014.
(b) Reported measure uses net income.
(c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangibles during the applicable period.
RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY:
THREE MONTHS ENDED
March 31, 2015 December 31, 2014 March 31, 2014
AVERAGE SHAREHOLDERS' EQUITY $ 705,041 $ 697,161 $ 659,819
Less: Average goodwill and other intangibles 72,334 72,334 72,334
AVERAGE TANGIBLE EQUITY $ 632,707 $ 624,827 $ 587,485
(d) Tangible book value divided by common shares outstanding at period end. Tangible equity equals ending shareholders' equity less goodwill and other intangibles, in each case at the end of the period.
RECONCILIATION OF SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY:
March 31, 2015 December 31, 2014 March 31, 2014
SHAREHOLDERS' EQUITY $ 707,431 $ 696,541 $ 664,470
Less: Goodwill and other intangibles 72,334 72,334 72,334
TANGIBLE EQUITY $ 635,097 $ 624,207 $ 592,136
(e) Net income available to shareholders for each period divided by average tangible assets during the period. Average tangible assets equals average assets less average goodwill and other intangibles, in each case during the applicable period.
RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS:
THREE MONTHS ENDED
March 31, 2015 December 31, 2014 March 31, 2014
AVERAGE ASSETS $ 7,209,143 $ 7,130,743 $ 6,764,841
Less: Average goodwill and other intangibles 72,334 72,334 72,334
AVERAGE TANGIBLE ASSETS $ 7,136,809 $ 7,058,409 $ 6,692,507
(f) Tangible equity divided by tangible assets. Tangible assets equals total assets less goodwill and other intangibles, in each case at the end of the period.
RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
March 31, 2015 December 31, 2014 March 31, 2014
TOTAL ASSETS $ 7,303,999 $ 7,001,199 $ 6,809,106
Less: Goodwill and other intangibles 72,334 72,334 72,334
TANGIBLE ASSETS $ 7,231,665 $ 6,928,865 $ 6,736,772
(g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown below assuming a 35% tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis.
RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
THREE MONTHS ENDED
March 31, 2015 December 31, 2014 March 31, 2014
Interest income $ 65,018 $ 67,816 $ 64,342
Fully taxable equivalent adjustment 161 191 223
Fully taxable equivalent interest income $ 65,179 $ 68,007 $ 64,565
Interest expense 9,483 10,522 9,862
Fully taxable equivalent net interest income $ 55,696 $ 57,485 $ 54,703
PARK NATIONAL CORPORATION
Consolidated Statements of Income
Three Months Ended
March 31,
(in thousands, except share and per share data) 2015 2014
Interest income:
Interest and fees on loans $ 55,412 $ 54,753
Interest on:
Obligations of U.S. Government, its agencies
and other securities 9,389 9,476
Obligations of states and political subdivisions 2
Other interest income 217 111
Total interest income 65,018 64,342
Interest expense:
Interest on deposits:
Demand and savings deposits 486 393
Time deposits 2,622 2,278
Interest on borrowings 6,375 7,191
Total interest expense 9,483 9,862
Net interest income 55,535 54,480
Provision for (recovery of) loan losses 1,632 (2,225)
Net interest income after provision for (recovery of) loan losses 53,903 56,705
Other income 18,873 16,648
Other expense 45,720 45,779
Income before income taxes 27,056 27,574
Income taxes 8,012 7,997
Net income $ 19,044 $ 19,577
Per Common Share:
Net income - basic $ 1.24 $ 1.27
Net income - diluted $ 1.23 $ 1.27
Weighted average shares - basic 15,379,170 15,401,105
Weighted average shares - diluted 15,421,928 15,414,897
Cash Dividends Declared $ 0.94 $ 0.94
PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(in thousands, except share data) March 31, 2015 December 31, 2014
Assets
Cash and due from banks $ 108,528 $ 133,511
Money market instruments 471,957 104,188
Investment securities 1,457,171 1,500,788
Loans 4,830,830 4,829,682
Allowance for loan losses (55,408) (54,352)
Loans, net 4,775,422 4,775,330
Bank premises and equipment, net 57,189 55,479
Goodwill 72,334 72,334
Other real estate owned 26,337 22,605
Other assets 335,061 336,964
Total assets $ 7,303,999 $ 7,001,199
Liabilities and Shareholders' Equity
Deposits:
Noninterest bearing $ 1,262,442 $ 1,269,296
Interest bearing 4,253,405 3,858,704
Total deposits 5,515,847 5,128,000
Borrowings 1,018,516 1,108,582
Other liabilities 62,205 68,076
Total liabilities $ 6,596,568 $ 6,304,658
Shareholders' Equity:
Preferred shares (200,000 shares authorized; no shares outstanding at March 31, 2015 and December 31, 2014) $ — $ —
Common shares (No par value; 20,000,000 shares authorized in 2015 and 2014; 16,150,876 shares issued at March 31, 2015 and 16,150,888 shares issued at December 31, 2014) 303,362 303,104
Accumulated other comprehensive loss, net of taxes (5,749) (13,608)
Retained earnings 489,040 484,484
Treasury shares (779,989 shares at March 31, 2015 and 758,489 shares at December 31, 2014) (79,222) (77,439)
Total shareholders' equity $ 707,431 $ 696,541
Total liabilities and shareholders' equity $ 7,303,999 $ 7,001,199
PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
Three Months Ended
March 31,
(in thousands) 2015 2014
Assets
Cash and due from banks $ 122,699 $ 113,531
Money market instruments 341,072 181,026
Investment securities 1,490,545 1,417,178
Loans 4,815,358 4,607,198
Allowance for loan losses (55,031) (60,755)
Loans, net 4,760,327 4,546,443
Bank premises and equipment, net 56,559 55,815
Goodwill and other intangibles 72,334 72,334
Other real estate owned 23,325 33,988
Other assets 342,282 344,526
Total assets $ 7,209,143 $ 6,764,841
Liabilities and Shareholders' Equity
Deposits:
Noninterest bearing $ 1,264,318 $ 1,176,105
Interest bearing 4,066,186 3,748,845
Total deposits 5,330,504 4,924,950
Borrowings 1,102,711 1,117,902
Other liabilities 70,887 62,170
Total liabilities $ 6,504,102 $ 6,105,022
Shareholders' Equity:
Preferred shares $ — $ —
Common shares 303,106 302,658
Accumulated other comprehensive loss, net of taxes (8,055) (26,996)
Retained earnings 488,525 461,126
Treasury shares (78,535) (76,969)
Total shareholders' equity $ 705,041 $ 659,819
Total liabilities and shareholders' equity $ 7,209,143 $ 6,764,841
PARK NATIONAL CORPORATION
Consolidated Statements of Income - Linked Quarters
2015 2014 2014 2014 2014
(in thousands, except per share data) 1st QTR 4th QTR 3rd QTR 2nd QTR 1st QTR
Interest income:
Interest and fees on loans $ 55,412 $ 58,395 $ 57,492 $ 57,004 $ 54,753
Interest on:
Obligations of U.S. Government, its agencies and other securities 9,389 9,223 9,011 9,271 9,476
Obligations of states and political subdivisions 1 2
Other interest income 217 198 119 87 111
Total interest income 65,018 67,816 66,622 66,363 64,342
Interest expense:
Interest on deposits:
Demand and savings deposits 486 445 440 399 393
Time deposits 2,622 2,776 2,136 2,133 2,278
Interest on borrowings 6,375 7,301 7,337 7,270 7,191
Total interest expense 9,483 10,522 9,913 9,802 9,862
Net interest income 55,535 57,294 56,709 56,561 54,480
Provision for (recovery of) loan losses 1,632 (8,349) 4,501 (1,260) (2,225)
Net interest income after provision for (recovery of) loan losses 53,903 65,643 52,208 57,821 56,705
Other income 18,873 19,834 19,396 19,671 16,648
Other expense 45,720 50,518 44,972 46,241 45,779
Income before income taxes 27,056 34,959 26,632 31,251 27,574
Income taxes 8,012 10,658 8,363 9,441 7,997
Net income $ 19,044 $ 24,301 $ 18,269 $ 21,810 $ 19,577
Per Common Share:
Net income - basic $ 1.24 $ 1.58 $ 1.19 $ 1.42 $ 1.27
Net income - diluted $ 1.23 $ 1.58 $ 1.19 $ 1.42 $ 1.27
PARK NATIONAL CORPORATION
Detail of other income and other expense - Linked Quarters
2015 2014 2014 2014 2014
(in thousands) 1st QTR 4th QTR 3rd QTR 2nd QTR 1st QTR
Other income:
Income from fiduciary activities $ 4,912 $ 5,050 $ 4,734 $ 4,825 $ 4,541
Service charges on deposits 3,381 3,651 4,171 3,942 3,659
Other service income 2,301 3,564 2,450 2,527 1,918
Checkcard fee income 3,351 3,433 3,431 3,493 3,213
Bank owned life insurance income 1,878 1,153 1,420 1,026 1,262
OREO valuation adjustments (304) (380) (935) (675) (416)
Gain on the sale of OREO, net 673 45 2,149 2,603 706
Gain on loans held for sale 756 1,867
Gain (loss) on sale of investments (1,175) 17
Miscellaneous 1,925 2,626 1,976 1,913 1,765
Total other income $ 18,873 $ 19,834 $ 19,396 $ 19,671 $ 16,648
Other expense:
Salaries and employee benefits $ 26,667 $ 24,525 $ 26,243 $ 26,140 $ 25,060
Net occupancy expense 2,579 2,378 2,339 2,457 2,832
Furniture and equipment expense 2,862 2,709 2,870 2,994 2,998
Data processing fees 1,267 1,196 1,281 1,121 1,114
Professional fees and services 4,694 8,195 6,934 8,168 6,283
Marketing 1,013 1,160 1,087 1,006 1,118
Insurance 1,461 1,413 1,396 1,467 1,447
Communication 1,331 1,328 1,304 1,293 1,343
Miscellaneous 3,846 7,614 1,518 1,595 3,584
Total other expense $ 45,720 $ 50,518 $ 44,972 $ 46,241 $ 45,779
PARK NATIONAL CORPORATION
Asset Quality Information
March 31, Year ended December 31,
(in thousands, except ratios) 2015 2014 2013 2012 2011
Allowance for loan losses:
Allowance for loan losses, beginning of period $ 54,352 $ 59,468 $ 55,537 $ 68,444 $ 143,575
Transfer of loans at fair value (219)
Transfer of allowance to held for sale (13,100)
Charge-offs 3,418 24,780 (B) 19,153 61,268 (A) 133,882
Recoveries 2,842 26,997 19,669 12,942 8,798
Net charge-offs (recoveries) 576 (2,217) (516) 48,326 125,084
Provision for (recovery of) loan losses 1,632 (7,333) 3,415 35,419 63,272
Allowance for loan losses, end of period $ 55,408 $ 54,352 $ 59,468 $ 55,537 $ 68,444
(A) Year ended December 31, 2012 included the full charge-off of the Vision Bank ALLL of $12.1 million to bring the retained Vision Bank loan portfolio to fair value prior to the merger of Vision Bank (as constituted following the transaction with Centennial Bank and Home BancShares, Inc.) with and into SEPH, the non-bank subsidiary of Park, on February 16, 2012.
(B) Year ended December 31, 2014 included $4.3 million in charge-offs related to the transfer of $22.0 million of commercial loans to the held for sale portfolio.
General reserve trends:
Allowance for loan losses, end of period $ 55,408 $ 54,352 $ 59,468 $ 55,537 $ 68,444
Specific reserves 5,064 3,660 10,451 8,276 15,935
General reserves $ 50,344 $ 50,692 $ 49,017 $ 47,261 $ 52,509
Total loans $ 4,830,830 $ 4,829,682 $ 4,620,505 $ 4,450,322 $ 4,317,099
Impaired commercial loans 70,461 73,676 112,304 137,238 187,074
Total loans less impaired commercial loans $ 4,760,369 $ 4,756,006 $ 4,508,201 $ 4,313,084 $ 4,130,025
Asset Quality Ratios:
Net charge-offs (recoveries) as a % of average loans 0.05 % (0.05) % (0.01) % 1.10 % 2.65 %
Allowance for loan losses as a % of period end loans 1.15 % 1.13 % 1.29 % 1.25 % 1.59 %
General reserves as a % of total loans less impaired commercial loans 1.06 % 1.07 % 1.09 % 1.10 % 1.27 %
Nonperforming Assets - Park National Corporation:
Nonaccrual loans $ 95,873 $ 100,393 $ 135,216 $ 155,536 $ 195,106
Accruing troubled debt restructuring 16,802 16,254 18,747 29,800 28,607
Loans past due 90 days or more 1,629 2,641 1,677 2,970 3,489
Total nonperforming loans $ 114,304 $ 119,288 $ 155,640 $ 188,306 $ 227,202
Other real estate owned - Park National Bank 10,223 10,687 11,412 14,715 13,240
Other real estate owned - SEPH 16,114 11,918 23,224 21,003 29,032
Other real estate owned - Vision Bank
Total nonperforming assets $ 140,641 $ 141,893 $ 190,276 $ 224,024 $ 269,474
Percentage of nonaccrual loans to period end loans 1.98 % 2.08 % 2.93 % 3.49 % 4.52 %
Percentage of nonperforming loans to period end loans 2.37 % 2.47 % 3.37 % 4.23 % 5.26 %
Percentage of nonperforming assets to period end loans 2.91 % 2.94 % 4.12 % 5.03 % 6.24 %
Percentage of nonperforming assets to period end assets 1.92 % 2.03 % 2.87 % 3.37 % 3.86 %
PARK NATIONAL CORPORATION
Asset Quality Information (continued)
Year ended December 31,
(in thousands, except ratios) March 31,
2015
2014 2013 2012 2011
Nonperforming Assets - Park National Bank and Guardian:
Nonaccrual loans $ 77,387 $ 77,477 $ 99,108 $ 100,244 $ 96,113
Accruing troubled debt restructuring 16,706 16,157 18,747 29,800 26,342
Loans past due 90 days or more 1,629 2,641 1,677 2,970 3,367
Total nonperforming loans $ 95,722 $ 96,275 $ 119,532 $ 133,014 $ 125,822
Other real estate owned - Park National Bank 10,223 10,687 11,412 14,715 13,240
Total nonperforming assets $ 105,945 $ 106,962 $ 130,944 $ 147,729 $ 139,062
Percentage of nonaccrual loans to period end loans 1.61 % 1.61 % 2.16 % 2.28 % 2.29 %
Percentage of nonperforming loans to period end loans 1.99 % 2.00 % 2.61 % 3.03 % 3.00 %
Percentage of nonperforming assets to period end loans 2.20 % 2.23 % 2.86 % 3.36 % 3.32 %
Percentage of nonperforming assets to period end assets 1.47 % 1.55 % 2.01 % 2.27 % 2.21 %
Nonperforming Assets - SEPH/Vision Bank (retained portfolio as of March 31, 2015, and December 31, 2014, 2013, 2012, and 2011):
Nonaccrual loans $ 18,486 $ 22,916 $ 36,108 $ 55,292 $ 98,993
Accruing troubled debt restructuring 96 97 2,265
Loans past due 90 days or more 122
Total nonperforming loans $ 18,582 $ 23,013 $ 36,108 $ 55,292 $ 101,380
Other real estate owned - Vision Bank
Other real estate owned - SEPH 16,114 11,918 23,224 21,003 29,032
Total nonperforming assets $ 34,696 $ 34,931 $ 59,332 $ 76,295 $ 130,412
Percentage of nonaccrual loans to period end loans N.M. N.M. N.M. N.M. N.M.
Percentage of nonperforming loans to period end loans N.M. N.M. N.M. N.M. N.M.
Percentage of nonperforming assets to period end loans N.M. N.M. N.M. N.M. N.M.
Percentage of nonperforming assets to period end assets N.M. N.M. N.M. N.M. N.M.
PARK NATIONAL CORPORATION
Asset Quality Information (continued)
Year ended December 31,
(in thousands, except ratios) March 31, 2015 2014 2013 2012 2011
New nonaccrual loan information - Park National Corporation
Nonaccrual loans, beginning of period $ 100,393 $ 135,216 $ 155,536 $ 195,106 $ 289,268
New nonaccrual loans 13,844 70,059 67,398 83,204 124,158
Resolved nonaccrual loans 18,232 86,384 87,718 122,774 218,320
Sale of nonaccrual loans held for sale 132 18,498
Nonaccrual loans, end of period $ 95,873 $ 100,393 $ 135,216 $ 155,536 $ 195,106
New nonaccrual loan information - Ohio - based operations
Nonaccrual loans, beginning of period $ 77,477 $ 99,108 $ 100,244 $ 96,113 $ 117,815
New nonaccrual loans - Ohio-based operations 13,844 69,389 66,197 68,960 78,316
Resolved nonaccrual loans 13,934 78,288 67,333 64,829 100,018
Sale of nonaccrual loans held for sale 12,732
Nonaccrual loans, end of period $ 77,387 $ 77,477 $ 99,108 $ 100,244 $ 96,113
New nonaccrual loan information - SEPH/Vision Bank
Nonaccrual loans, beginning of period $ 22,916 $ 36,108 $ 55,292 $ 98,993 $ 171,453
New nonaccrual loans - SEPH/Vision Bank 670 1,201 14,243 45,842
Resolved nonaccrual loans 4,298 8,096 20,385 57,944 118,302
Sale of nonaccrual loans held for sale 132 5,766
Nonaccrual loans, end of period $ 18,486 $ 22,916 $ 36,108 $ 55,292 $ 98,993
Impaired Commercial Loan Portfolio Information (period end):
Unpaid principal balance $ 96,235 $ 106,156 $ 175,576 $ 242,345 $ 290,908
Prior charge-offs 25,774 32,480 63,272 105,107 103,834
Remaining principal balance 70,461 73,676 112,304 137,238 187,074
Specific reserves 5,064 3,660 10,451 8,276 15,935
Book value, after specific reserve $ 65,397 $ 70,016 $ 101,853 $ 128,962 $ 171,139

CONTACT: Media contact: Bethany Lewis, 740.349.0421, blewis@parknationalbank.com Investor contact: Brady Burt, 740.322.6844, bburt@parknationalbank.comSource:Park National Corporation