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Park National Corporation reports first quarter 2016 financial results and declares quarterly dividend

NEWARK, Ohio, April 22, 2016 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE:PRK) today announced financial results for the first quarter of 2016, which include continued consumer loan growth and a 13.5 percent increase in net income for its community banking subsidiary, The Park National Bank. The board of directors also declared a quarterly cash dividend of $0.94 per common share, payable on June 10, 2016 to common shareholders of record as of May 20, 2016.

Park’s net income for the three months ended March 31, 2016 (first quarter) was $18.7 million, compared to $19.0 million for the same period in 2015, a decrease of 1.9 percent. Net income per diluted common share for the first quarter of 2016 was $1.21, compared to $1.23 in the same period of 2015.

“Our banks have begun the year with great momentum, continuing our focus on lending and service,” said Park Chief Executive Officer David L. Trautman. “We are responding quickly to our clients’ requests for vehicle, home and business loans of all kinds. Our investment professionals are increasing their assets under management. We’re all working together to control expenses, support our communities, and plan exciting enhancements for our clients in the future.”

In the first quarter, The Park National Bank reported consumer loan growth of $11.9 million (4.9 percent annualized). Total loans for the bank were $5.02 billion at March 31, 2016, up $236.7 million (4.95 percent) from $4.79 billion at March 31, 2015.

The bank earned net income of $21.7 million for the first quarter March 31, 2016, compared to net income of $19.2 million for the same period of 2015. The bank had total assets of $7.3 billion at March 31, 2016, rising from $7.2 billion at December 31, 2015. This performance generated an annualized return on average assets of 1.19 percent and 1.09 percent for the first quarter 2016 and first quarter of 2015, respectively.

About Park National Corporation

Headquartered in Newark, Ohio, Park National Corporation had $7.4 billion in total assets (as of March 31, 2016). 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 release 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 recent 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 the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties' 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 unemployment; 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 and bank holding company 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 major reform of the regulatory oversight structure of the financial services industry and changes in laws and regulations concerning taxes, pensions, bankruptcy, consumer protection, accounting, banking, securities and other aspects of the financial services industry, specifically the reforms provided for in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), as well as regulations already adopted and which may be adopted in the future 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., European and Asian government debt and concerns regarding the creditworthiness of certain sovereign governments, supranationals and financial institutions in Europe and Asia; our litigation and regulatory compliance exposure, including any adverse developments in legal proceedings or other claims and unfavorable resolution of 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, 2015. 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, 2016, December 31, 2015, and March 31, 2015
201620152015 Percent change vs.
(in thousands, except share and per share data)1st QTR4th QTR1st QTR 4Q '151Q '15
INCOME STATEMENT:
Net interest income$59,819 $57,867 $55,535 3.4%7.7%
Provision for (recovery of) loan losses910 (658)1,632 N.M. (44.2)%
Other income17,389 19,296 18,873 (9.9) %(7.9)%
Other expense49,899 48,798 45,720 2.3%9.1%
Income before income taxes$26,399 $29,023 $27,056 (9.0)%(2.4)%
Income taxes7,713 8,134 8,012 (5.2)%(3.7)%
Net income$18,686 $20,889 $19,044 (10.5)%(1.9)%
MARKET DATA:
Earnings per common share - basic (b)$1.22 $1.36 $1.24 (10.3)%(1.6)%
Earnings per common share - diluted (b)1.21 1.36 1.23 (11.0)%(1.6)%
Cash dividends per common share0.94 0.94 0.94 %%
Book value per common share at period end47.60 46.53 46.02 2.3%3.4%
Stock price per common share at period end90.00 90.48 85.56 (0.5)%5.2%
Market capitalization at period end1,379,773 1,387,132 1,315,133 (0.5)%4.9%
Weighted average common shares - basic (a)15,330,813 15,345,986 15,379,170 (0.1)%(0.3)%
Weighted average common shares - diluted (a)15,406,508 15,384,451 15,421,928 0.1%(0.1)%
Common shares outstanding at period end15,330,807 15,330,815 15,370,887 %(0.3)%
PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)1.01%1.13%1.07% (10.6)%(5.6)%
Return on average equity (a)(b)10.38%11.56%10.95% (10.2)%(5.2)%
Yield on loans4.80%4.63%4.68% 3.7%2.6%
Yield on investments2.38%2.38%2.57% %(7.4)%
Yield on money markets0.51%0.27%0.25% 88.9%104.0%
Yield on earning assets4.11%3.96%3.98% 3.8%3.3%
Cost of interest bearing deposits0.31%0.29%0.31% 6.9%%
Cost of borrowings2.35%2.34%2.34% 0.4%0.4%
Cost of paying liabilities0.73%0.71%0.74% 2.8%(1.4)%
Net interest margin (g)3.55%3.41%3.40% 4.1%4.4%
Efficiency ratio (g)64.26%62.98%61.31% 2.0%4.8%
OTHER RATIOS (NON - GAAP):
Annualized return on average tangible assets (a)(b)(e)1.02%1.14%1.08% (10.5)%(5.6)%
Annualized return on average tangible equity (a)(b)(c)11.53%12.86%12.21% (10.3)%(5.6)%
Tangible book value per share (d)$42.88 $41.81 $41.32 2.6%3.8%
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, 2016, December 31, 2015, and March 31, 2015
Percent change vs.
BALANCE SHEET:March 31,
2016
December 31,
2015
March 31,
2015
4Q '151Q '15
Investment securities$1,601,767 $1,643,879 $1,457,171 (2.6)%9.9%
Loans5,062,185 5,068,085 4,830,830 (0.1)%4.8%
Allowance for loan losses56,948 56,494 55,408 0.8%2.8%
Goodwill72,334 72,334 72,334 %%
Other real estate owned (OREO)17,745 18,651 26,337 (4.9)%(32.6)%
Total assets7,428,185 7,311,354 7,303,999 1.6%1.7%
Total deposits5,606,790 5,347,642 5,515,847 4.8%1.6%
Borrowings1,004,279 1,177,347 1,018,516 (14.7)%(1.4)%
Shareholders' equity729,701 713,355 707,431 2.3%3.1%
Tangible equity (d)657,367 641,021 635,097 2.5%3.5%
Nonperforming loans118,960 122,787 114,304 (3.1)%4.1%
Nonperforming assets136,705 141,438 140,641 (3.3)%(2.8)%
ASSET QUALITY RATIOS:
Loans as a % of period end total assets68.15%69.32%66.14% (1.7)%3.0%
Nonperforming loans as a % of period end loans2.35%2.42%2.37% (2.9)%(0.8)%
Nonperforming assets as a % of period end loans + OREO2.69%2.78%2.90% (3.2)%(7.2)%
Allowance for loan losses as a % of period end loans1.12%1.11%1.15% 0.9%(2.6)%
Net loan charge-offs$456 $1,331 $576 (65.7)%(20.8)%
Annualized net loan charge-offs as a % of average loans (a)0.04%0.11%0.05% (63.6)%(20.0)%
CAPITAL & LIQUIDITY:
Total equity / Period end total assets9.82%9.76%9.69% 0.6%1.3%
Tangible equity (d) / Tangible assets (f)8.94%8.86%8.78% 0.9%1.8%
Average equity / Average assets (a)9.78%9.76%9.78% 0.2%%
Average equity / Average loans (a)14.34%14.28%14.64% 0.4%(2.0)%
Average loans / Average deposits (a)91.31%91.51%90.34% (0.2)%1.1%
N.M. - Not meaningful
Note: Explanations (a) - (h) are included at the end of the financial highlights.


PARK NATIONAL CORPORATION
Financial Highlights (continued)
(a) Averages are for the three months ended March 31, 2016, December 31, 2015 and March 31, 2015.
(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 during the applicable period.
RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY:
THREE MONTHS ENDED
March 31, 2016December 31, 2015March 31, 2015
AVERAGE SHAREHOLDERS' EQUITY$724,316 $716,977 $705,041
Less: Average goodwill72,334 72,334 72,334
AVERAGE TANGIBLE EQUITY$651,982 $644,643 $632,707
(d) Tangible book value divided by common shares outstanding at period end. Tangible equity equals ending shareholders' equity less goodwill, in each case at the end of the period.
RECONCILIATION OF SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY:
March 31, 2016December 31, 2015March 31, 2015
SHAREHOLDERS' EQUITY$729,701 $713,355 $707,431
Less: Goodwill72,334 72,334 72,334
TANGIBLE EQUITY$657,367 $641,021 $635,097
(e) Net income for each period divided by average tangible assets during the period. Average tangible assets equals average assets less average goodwill, in each case during the applicable period.
RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS:
THREE MONTHS ENDED
March 31, 2016December 31, 2015March 31, 2015
AVERAGE ASSETS$7,405,345 $7,343,206 $7,209,143
Less: Average goodwill72,334 72,334 72,334
AVERAGE TANGIBLE ASSETS$7,333,011 $7,270,872 $7,136,809
(f) Tangible equity divided by tangible assets. Tangible assets equals total assets less goodwill, in each case at the end of the period.
RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
March 31, 2016December 31, 2015March 31, 2015
TOTAL ASSETS$7,428,185 $7,311,354 $7,303,999
Less: Goodwill72,334 72,334 72,334
TANGIBLE ASSETS$7,355,851 $7,239,020 $7,231,665
(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, 2016December 31, 2015March 31, 2015
Interest income$69,308 $67,165 $65,018
Fully taxable equivalent adjustment444 314 161
Fully taxable equivalent interest income$69,752 $67,479 $65,179
Interest expense9,489 9,298 9,483
Fully taxable equivalent net interest income$60,263 $58,181 $55,696


PARK NATIONAL CORPORATION
Consolidated Statements of Income
Three Months Ended
March 31,
(in thousands, except share and per share data) 2016 2015
Interest income:
Interest and fees on loans $60,052 $55,412
Interest on:
Obligations of U.S. Government, its agencies and other securities 8,609 9,389
Obligations of states and political subdivisions 373
Other interest income 274 217
Total interest income 69,308 65,018
Interest expense:
Interest on deposits:
Demand and savings deposits 824 486
Time deposits 2,387 2,622
Interest on borrowings 6,278 6,375
Total interest expense 9,489 9,483
Net interest income 59,819 55,535
Provision for loan losses 910 1,632
Net interest income after provision for loan losses 58,909 53,903
Other income 17,389 18,873
Other expense 49,899 45,720
Income before income taxes 26,399 27,056
Income taxes 7,713 8,012
Net income $18,686 $19,044
Per Common Share:
Net income - basic $1.22 $1.24
Net income - diluted $1.21 $1.23
Weighted average shares - basic 15,330,813 15,379,170
Weighted average shares - diluted 15,406,508 15,421,928
Cash Dividends Declared $0.94 $0.94


PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(in thousands, except share data)
March 31, 2016
December 31, 2015
Assets
Cash and due from banks$105,664 $119,412
Money market instruments212,239 30,047
Investment securities1,601,767 1,643,879
Loans5,062,185 5,068,085
Allowance for loan losses(56,948)(56,494)
Loans, net5,005,237 5,011,591
Bank premises and equipment, net59,025 59,493
Goodwill72,334 72,334
Other real estate owned17,745 18,651
Other assets354,174 355,947
Total assets$7,428,185 $7,311,354
Liabilities and Shareholders' Equity
Deposits:
Noninterest bearing$1,360,605 $1,404,032
Interest bearing4,246,185 3,943,610
Total deposits5,606,790 5,347,642
Borrowings1,004,279 1,177,347
Other liabilities87,415 73,010
Total liabilities$6,698,484 $6,597,999
Shareholders' Equity:
Preferred shares (200,000 shares authorized; no shares outstanding at March 31, 2016 and December 31, 2015)$ $
Common shares (No par value; 20,000,000 shares authorized in 2016 and 2015; 16,150,846 shares issued at March 31, 2016 and
16,150,854 shares issued at December 31, 2015)
304,433 303,966
Accumulated other comprehensive loss, net of taxes(3,963)(15,643)
Retained earnings511,704 507,505
Treasury shares (820,039 shares at both March 31, 2016 and December 31, 2015, respectively)(82,473)(82,473)
Total shareholders' equity$729,701 $713,355
Total liabilities and shareholders' equity$7,428,185 $7,311,354


PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
Three Months Ended
March 31,
(in thousands)20162015
Assets
Cash and due from banks$118,981 $122,699
Money market instruments217,384 341,072
Investment securities1,562,194 1,490,545
Loans5,049,327 4,815,358
Allowance for loan losses(56,999)(55,031)
Loans, net4,992,328 4,760,327
Bank premises and equipment, net59,577 56,559
Goodwill72,334 72,334
Other real estate owned18,303 23,325
Other assets364,244 342,282
Total assets$7,405,345 $7,209,143
Liabilities and Shareholders' Equity
Deposits:
Noninterest bearing$1,357,998 $1,264,318
Interest bearing4,171,865 4,066,186
Total deposits5,529,863 5,330,504
Borrowings1,072,814 1,102,711
Other liabilities78,352 70,887
Total liabilities$6,681,029 $6,504,102
Shareholders' Equity:
Preferred shares$ $
Common shares303,986 303,106
Accumulated other comprehensive loss, net of taxes(8,446)(8,055)
Retained earnings511,249 488,525
Treasury shares(82,473)(78,535)
Total shareholders' equity$724,316 $705,041
Total liabilities and shareholders' equity$7,405,345 $7,209,143


PARK NATIONAL CORPORATION
Consolidated Statements of Income - Linked Quarters
20162015201520152015
(in thousands, except per share data)1st QTR4th QTR3rd QTR2nd QTR1st QTR
Interest income:
Interest and fees on loans$60,052 $58,424 $57,680 $56,463 $55,412
Interest on:
Obligations of U.S. Government, its agencies and other securities8,609 8,360 9,163 9,113 9,389
Obligations of states and political subdivisions373 170 12
Other interest income274 211 232 228 217
Total interest income69,308 67,165 67,087 65,804 65,018
Interest expense:
Interest on deposits:
Demand and savings deposits824 573 614 556 486
Time deposits2,387 2,453 2,508 2,542 2,622
Interest on borrowings6,278 6,272 6,250 6,191 6,375
Total interest expense9,489 9,298 9,372 9,289 9,483
Net interest income59,819 57,867 57,715 56,515 55,535
Provision for (recovery of) loan losses910 (658)2,404 1,612 1,632
Net interest income after provision for (recovery of) loan losses58,909 58,525 55,311 54,903 53,903
Other income17,389 19,296 20,191 19,191 18,873
Other expense49,899 48,798 47,429 44,667 45,720
Income before income taxes26,399 29,023 28,073 29,427 27,056
Income taxes7,713 8,134 8,033 8,388 8,012
Net income$18,686 $20,889 $20,040 $21,039 $19,044
Per Common Share:
Net income - basic$1.22 $1.36 $1.30 $1.37 $1.24
Net income - diluted$1.21 $1.36 $1.30 $1.37 $1.23


PARK NATIONAL CORPORATION
Detail of other income and other expense - Linked Quarters
20162015201520152015
(in thousands)1st QTR4th QTR3rd QTR2nd QTR1st QTR
Other income:
Income from fiduciary activities$5,113 $5,140 $4,933 $5,210 $4,912
Service charges on deposits3,423 3,777 3,909 3,684 3,381
Other service income2,574 2,861 3,251 3,025 2,301
Checkcard fee income3,532 3,902 3,643 3,665 3,351
Bank owned life insurance income1,197 1,245 1,574 1,086 1,878
OREO valuation adjustments(118)(319)(718)(251)(304)
Gain on the sale of OREO, net134 175 243 513 673
Gain on commercial loans held for sale 756
Gain on sale of investments 88
Miscellaneous1,534 2,427 3,356 2,259 1,925
Total other income$17,389 $19,296 $20,191 $19,191 $18,873
Other expense:
Salaries$21,554 $22,520 $21,692 $20,995 $20,982
Employee benefits4,773 4,161 6,721 4,729 5,685
Occupancy expense2,548 2,257 2,469 2,381 2,579
Furniture and equipment expense3,443 3,069 3,044 2,831 2,862
Data processing fees1,217 1,190 1,383 1,197 1,267
Professional fees and services6,667 7,751 5,424 5,583 4,694
Marketing1,111 975 1,058 937 1,013
Insurance1,411 1,407 1,399 1,362 1,461
Communication1,221 1,321 1,245 1,233 1,331
Miscellaneous5,954 4,147 2,994 3,419 3,846
Total other expense$49,899 $48,798 $47,429 $44,667 $45,720


PARK NATIONAL CORPORATION
Asset Quality Information
Year ended December 31,
(in thousands, except ratios)March 31,
2016
20152014 20132012
Allowance for loan losses:
Allowance for loan losses, beginning of period$56,494 $54,352 $59,468 $55,537 $68,444
Charge-offs3,401 14,290 24,780 (B)19,153 61,268 (A)
Recoveries2,945 11,442 26,997 19,669 12,942
Net charge-offs (recoveries)456 2,848 (2,217) (516)48,326
Provision for (recovery of) loan losses910 4,990 (7,333) 3,415 35,419
Allowance for loan losses, end of period$56,948 $56,494 $54,352 $59,468 $55,537


(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$56,948 $56,494 $54,352 $59,468 $55,537
Specific reserves4,930 4,191 3,660 10,451 8,276
General reserves$52,018 $52,303 $50,692 $49,017 $47,261
Total loans$5,062,185 $5,068,085 $4,829,682 $4,620,505 $4,450,322
Impaired commercial loans78,117 80,599 73,676 112,304 137,238
Total loans less impaired commercial loans$4,984,068 $4,987,486 $4,756,006 $4,508,201 $4,313,084
Asset Quality Ratios:
Net charge-offs (recoveries) as a % of average loans0.04%0.06%(0.05)% (0.01)%1.10%
Allowance for loan losses as a % of period end loans1.12%1.11%1.13% 1.29%1.25%
General reserves as a % of total loans less impaired commercial loans1.04%1.05%1.07% 1.09%1.10%
Nonperforming Assets - Park National Corporation:
Nonaccrual loans$102,625 $95,887 $100,393 $135,216 $155,536
Accruing troubled debt restructuring14,999 24,979 16,254 18,747 29,800
Loans past due 90 days or more1,336 1,921 2,641 1,677 2,970
Total nonperforming loans$118,960 $122,787 $119,288 $155,640 $188,306
Other real estate owned - Park National Bank6,846 7,456 10,687 11,412 14,715
Other real estate owned - SEPH10,899 11,195 11,918 23,224 21,003
Total nonperforming assets$136,705 $141,438 $141,893 $190,276 $224,024
Percentage of nonaccrual loans to period end loans2.03%1.89%2.08% 2.93%3.49%
Percentage of nonperforming loans to period end loans2.35%2.42%2.47% 3.37%4.23%
Percentage of nonperforming assets to period end loans2.70%2.79%2.94% 4.12%5.03%
Percentage of nonperforming assets to period end total assets1.84%1.93%2.03% 2.87%3.37%
PARK NATIONAL CORPORATION
Asset Quality Information (continued)
Year ended December 31,
(in thousands, except ratios)March 31,
2016
20152014 20132012
Nonperforming Assets - Park National Bank and Guardian:
Nonaccrual loans$88,351 $81,468 $77,477 $99,108 $100,244
Accruing troubled debt restructuring14,999 24,979 16,157 18,747 29,800
Loans past due 90 days or more1,336 1,921 2,641 1,677 2,970
Total nonperforming loans$104,686 $108,368 $96,275 $119,532 $133,014
Other real estate owned - Park National Bank6,846 7,456 10,687 11,412 14,715
Total nonperforming assets$111,532 $115,824 $106,962 $130,944 $147,729
Percentage of nonaccrual loans to period end loans1.75%1.61%1.61% 2.16%2.28%
Percentage of nonperforming loans to period end loans2.07%2.14%2.00% 2.61%3.03%
Percentage of nonperforming assets to period end loans2.21%2.29%2.23% 2.86%3.36%
Percentage of nonperforming assets to period end total assets1.52%1.60%1.55% 2.01%2.27%
Nonperforming Assets - SEPH/Vision Bank (retained portfolio):
Nonaccrual loans$14,274 $14,419 $22,916 $36,108 $55,292
Accruing troubled debt restructuring 97
Loans past due 90 days or more
Total nonperforming loans$14,274 $14,419 $23,013 $36,108 $55,292
Other real estate owned - SEPH10,899 11,195 11,918 23,224 21,003
Total nonperforming assets$25,173 $25,614 $34,931 $59,332 $76,295
New nonaccrual loan information - Park National Corporation
Nonaccrual loans, beginning of period$95,887 $100,393 $135,216 $155,536 $195,106
New nonaccrual loans21,339 80,791 70,059 67,398 83,204
Resolved nonaccrual loans14,601 85,165 86,384 87,718 122,774
Sale of nonaccrual loans held for sale 132 18,498
Nonaccrual loans, end of period$102,625 $95,887 $100,393 $135,216 $155,536
New nonaccrual loan information - Ohio - based operations
Nonaccrual loans, beginning of period$81,468 $77,477 $99,108 $100,244 $96,113
New nonaccrual loans - Ohio-based operations21,339 80,791 69,389 66,197 68,960
Resolved nonaccrual loans14,456 76,800 78,288 67,333 64,829
Sale of nonaccrual loans held for sale 12,732
Nonaccrual loans, end of period$88,351 $81,468 $77,477 $99,108 $100,244
New nonaccrual loan information - SEPH/Vision Bank
Nonaccrual loans, beginning of period$14,419 $22,916 $36,108 $55,292 $98,993
New nonaccrual loans - SEPH/Vision Bank 670 1,201 14,243
Resolved nonaccrual loans145 8,365 8,096 20,385 57,944
Sale of nonaccrual loans held for sale 132 5,766
Nonaccrual loans, end of period$14,274 $14,419 $22,916 $36,108 $55,292
Impaired Commercial Loan Portfolio Information (period end):
Unpaid principal balance$106,539 $109,304 $106,156 $175,576 $242,345
Prior charge-offs28,422 28,705 32,480 63,272 105,107
Remaining principal balance78,117 80,599 73,676 112,304 137,238
Specific reserves4,930 4,191 3,660 10,451 8,276
Book value, after specific reserve$73,187 $76,408 $70,016 $101,853 $128,962


Media contact: Bethany Lewis, 740.349.0421, blewis@parknationalbank.com Investor contact: Brady Burt, 740.322.6844, bburt@parknationalbank.com

Source:Park National Corporation