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Park National Corporation Reports First Quarter Financial Results and Continues $0.94 Cash Dividend

NEWARK, Ohio, April 19, 2013 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE Amex:PRK) today reported financial results for the three-month (first quarter) period ended March 31, 2013. Also, Park's Board of Directors declared a $0.94 per common share quarterly cash dividend, payable on June 10, 2013 to common shareholders of record as of May 22, 2013.

Net income for the first quarter of 2013 was $20.7 million. Net income for the same period in 2012 was $31.5 million, which included a gain of $22.2 million ($14.4 million after-tax) from the sale of substantially all of the performing loans, operating assets and the liabilities of Vision Bank. That transaction closed on February 16, 2012.

Excluding the gain from the sale of the Vision Bank business in 2012, net income for the first quarter of 2012 would have been $17.1 million. Park's net income in the first quarter of 2013 of $20.7 million was an increase of approximately 21.1 percent above first quarter of 2012 results excluding the gain related to the Vision Bank sale.

Net income per diluted common share for the first quarter of 2013 was $1.34. Net income per diluted common share was $1.95 for the same period in 2012. Excluding the gain from the sale of the Vision Bank business in 2012, net income per diluted common share for the first quarter of 2012 would have been $1.01.

"Our lending activity continues at a strong pace. We pursue every opportunity to make residential, personal, and business loans within each community we serve," said Park Chairman C. Daniel DeLawder. "The local expertise and dedication of our bankers across Ohio, combined with substantial reduction of troubled assets retained from the Vision Bank business, were key drivers in our successful first quarter."

The Park National Bank Results

Park's community-banking subsidiary in Ohio, The Park National Bank, reported net income of $19.9 million for the first quarter of 2013, compared to net income of $21.6 million for the same period in 2012. The Park National Bank had total assets of $6.6 billion at both March 31, 2013 and 2012. This performance generated an annualized return on average assets of 1.23 percent and 1.34 percent for The Park National Bank through the first three months of 2013 and 2012, respectively.

"This extraordinary interest rate environment for home loans continues to fuel conversations and closings," said Park President David L. Trautman. "Our lenders have a number of loan options and services they are using to create good solutions for our customers."

Headquartered in Newark, Ohio, Park National Corporation had $6.7 billion in total assets (as of March 31, 2013). Park 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 & Savings Bank Division, United Bank Division, Second National Bank Division, Security National Bank Division, Unity National Bank Division, The Park National Bank of Southwest Ohio & Northern Kentucky Division and Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance). Park 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 its business plan successfully and within the expected timeframe; general economic and financial market conditions, and weakening in the economy, specifically the real estate market and the credit market, 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; changes in unemployment; 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 increase significantly, including product and pricing pressures and our 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 "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 and the American Taxpayer Relief Act of 2012; 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 fiscal and governmental policies of the United States federal government; 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 the banking industry as detailed from time to time in Park's reports filed with the Securities and Exchange Commission 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, 2012. 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.

PARK NATIONAL CORPORATION
Financial Highlights
Three months ended March 31, 2013, December 31, 2012, and March 31, 2012
2013 2012 2012 Percent change vs.
(in thousands, except share and per share data) 1st Qtr 4th Qtr 1st Qtr 4Q '12 1Q '12
INCOME STATEMENT:
Net interest income $ 55,453 $ 56,891 $ 61,728 -2.5% -10.2%
Provision for loan losses 329 5,188 8,338 -93.7% -96.1%
Gain on sale of Vision Bank -- -- 22,167 N.M. N.M.
Other income 18,805 17,196 17,453 9.4% 7.7%
Total other expense 46,098 48,011 48,470 -4.0% -4.9%
Income before income taxes $ 27,831 $ 20,888 $ 44,540 33.2% -37.5%
Income taxes 7,121 4,601 13,065 54.8% -45.5%
Net income $ 20,710 $ 16,287 $ 31,475 27.2% -34.2%
Preferred stock dividends and accretion -- -- 1,477 N.M. -100.0%
Net income available to common shareholders $ 20,710 $ 16,287 $ 29,998 27.2% -31.0%
MARKET DATA:
Earnings per common share - basic (b) $ 1.34 $ 1.06 $ 1.95 26.4% -31.3%
Earnings per common share - diluted (b) 1.34 1.06 1.95 26.4% -31.3%
Cash dividends per common share 0.94 0.94 0.94 -- --
Common book value per common share at period end 42.45 42.20 42.71 0.6% -0.6%
Stock price per common share at period end 69.79 64.63 69.17 8.0% 0.9%
Market capitalization at period end 1,075,602 996,077 1,065,626 8.0% 0.9%
Weighted average common shares - basic (a) 15,411,990 15,410,606 15,405,910 -- --
Weighted average common shares - diluted (a) 15,411,990 15,410,606 15,417,745 -- --
Common shares outstanding at period end 15,411,984 15,411,998 15,405,905 -- --
PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b) 1.25% 0.97% 1.75% 28.9% -28.6%
Return on average common equity (a)(b) 12.87% 9.81% 18.50% 31.2% -30.4%
Yield on loans 5.13% 5.23% 5.52% -1.9% -7.1%
Yield on investments 2.91% 2.88% 3.34% 1.0% -12.9%
Yield on money markets 0.25% 0.24% 0.25% 4.2% --
Yield on earning assets 4.41% 4.49% 4.81% -1.8% -8.3%
Cost of interest bearing deposits 0.39% 0.42% 0.56% -7.1% -30.4%
Cost of borrowings 2.62% 2.66% 2.73% -1.5% -4.0%
Cost of paying liabilities 0.90% 0.97% 1.05% -7.2% -14.3%
Net interest margin 3.70% 3.72% 3.97% -0.5% -6.8%
Efficiency ratio (g) 61.76% 64.47% 60.05% -4.2% 2.8%
OTHER RATIOS (NON GAAP):
Annualized return on average tangible assets (a)(b)(e) 1.27% 0.98% 1.77% 29.6% -28.2%
Annualized return on average tangible common equity (a)(b)(c) 14.48% 11.03% 20.85% 31.3% -30.6%
Tangible common book value per common share (d) $ 37.74 $ 37.48 $ 37.97 0.7% -0.6%
PARK NATIONAL CORPORATION
Financial Highlights (continued)
Three months ended March 31, 2013, December 31, 2012, and March 31, 2012
Percent change vs.
BALANCE SHEET: March 31, 2013 December 31, 2012 March 31, 2012 4Q '12 1Q '12
Investment securities $ 1,352,408 $ 1,581,751 $ 1,857,335 -14.5% -27.2%
Loans 4,443,523 4,450,322 4,324,383 -0.2% 2.8%
Allowance for loan losses 55,315 55,537 59,758 -0.4% -7.4%
Goodwill and other intangibles 72,559 72,671 73,088 -0.2% -0.7%
Other real estate owned 36,292 35,718 41,965 1.6% -13.5%
Total assets 6,747,155 6,642,803 6,776,851 1.6% -0.4%
Total deposits 4,916,541 4,716,032 4,817,388 4.3% 2.1%
Borrowings 1,107,097 1,206,076 1,133,738 -8.2% -2.3%
Stockholders' equity 654,210 650,366 756,429 0.6% -13.5%
Common equity 654,210 650,366 658,057 0.6% -0.6%
Tangible common equity (d) 581,651 577,695 584,969 0.7% -0.6%
Nonperforming loans 177,163 188,306 219,944 -5.9% -19.5%
Nonperforming assets 213,455 224,024 261,909 -4.7% -18.5%
ASSET QUALITY RATIOS:
Loans as a % of period end assets 65.86% 66.99% 63.81% -1.7% 3.2%
Nonperforming loans as a % of period end loans 3.99% 4.23% 5.09% -5.7% -21.6%
Nonperforming assets / Period end loans + OREO 4.76% 4.99% 6.00% -4.6% -20.7%
Allowance for loan losses as a % of period end loans 1.24% 1.25% 1.38% -0.8% -10.1%
Net loan charge-offs $ 551 $ 5,216 $ 17,024 -89.4% -96.8%
Annualized net loan charge-offs as a % of average loans (a) 0.05% 0.47% 1.53% -89.4% -96.7%
CAPITAL & LIQUIDITY:
Total equity / Period end assets 9.70% 9.79% 11.16% -0.9% -13.1%
Common equity / Period end assets 9.70% 9.79% 9.71% -0.9% -0.1%
Tangible common equity (d) / Tangible assets (f) 8.71% 8.79% 8.73% -0.9% -0.2%
Average equity / Average assets (a) 9.75% 9.87% 10.88% -1.2% -10.4%
Average equity / Average loans (a) 14.70% 14.97% 16.73% -1.8% -12.1%
Average loans / Average deposits (a) 91.54% 92.78% 90.82% -1.3% 0.8%
N.M. - Not meaningful
PARK NATIONAL CORPORATION
Financial Highlights (continued)
(a) Averages are for the quarters ended March 31, 2013, December 31, 2012 and March 31, 2012, as appropriate.
(b) Reported measure uses net income available to common shareholders.
(c) Net income available to common shareholders for each period divided by average tangible common equity during the period. Average tangible common equity equals average stockholders' equity during the applicable period less (i) average preferred stock during the applicable period and (ii) average goodwill and other intangibles during the applicable period.
RECONCILIATION OF AVERAGE STOCKHOLDERS' EQUITY TO AVERAGE TANGIBLE COMMON EQUITY:
THREE MONTHS ENDED
March 31, 2013 December 31, 2012 March 31, 2012
AVERAGE STOCKHOLDERS' EQUITY $ 652,543 $ 660,416 $ 750,505
Less: Average preferred stock -- -- 98,242
Average goodwill and other intangibles 72,621 72,748 73,619
AVERAGE TANGIBLE COMMON EQUITY $ 579,922 $ 587,668 $ 578,644
(d) Tangible common equity equals ending stockholders' equity less preferred stock and goodwill and other intangibles, in each case at the end of the period.
RECONCILIATION OF STOCKHOLDERS' EQUITY TO TANGIBLE COMMON EQUITY:
March 31, 2013 December 31, 2012 March 31, 2012
STOCKHOLDERS' EQUITY $ 654,210 $ 650,366 $ 756,429
Less: Preferred stock -- -- 98,372
Goodwill and other intangibles 72,559 72,671 73,088
TANGIBLE COMMON EQUITY $ 581,651 $ 577,695 $ 584,969
(e) Net income available to common 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, 2013 December 31, 2012 March 31, 2012
AVERAGE ASSETS $ 6,693,476 $ 6,689,321 $ 6,896,548
Less: Average goodwill and other intangibles 72,621 72,748 73,619
AVERAGE TANGIBLE ASSETS $ 6,620,855 $ 6,616,573 $ 6,822,929
(f) Tangible common equity divided by tangible assets. Tangible assets equals total assets less goodwill and other intangibles.
RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
March 31, 2013 December 31, 2012 March 31, 2012
TOTAL ASSETS $ 6,747,155 $ 6,642,803 $ 6,776,851
Less: Goodwill and other intangibles 72,559 72,671 73,088
TANGIBLE ASSETS $ 6,674,596 $ 6,570,132 $ 6,703,763
(g) Efficiency ratio is calculated by taking total other expense divided 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.
PARK NATIONAL CORPORATION
Financial Highlights (continued)
RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
THREE MONTHS ENDED
March 31, 2013 December 31, 2012 March 31, 2012
Interest income $ 66,192 $ 68,793 $ 74,838
Fully taxable equivalent adjustment 387 382 427
Fully taxable equivalent interest income $ 66,579 $ 69,175 $ 75,265
Interest expense 10,739 11,902 13,110
Fully taxable equivalent net interest income $ 55,840 $ 57,273 $ 62,155
PARK NATIONAL CORPORATION
Consolidated Statements of Income
Three Months Ended
March 31,
(in thousands, except share and per share data) 2013 2012
Interest income:
Interest and fees on loans $ 55,775 $ 61,105
Interest on:
Obligations of U.S. Government, its agencies and other securities 10,242 13,584
Obligations of states and political subdivisions 17 46
Other interest income 158 103
Total interest income 66,192 74,838
Interest expense:
Interest on deposits:
Demand and savings deposits 501 754
Time deposits 3,090 4,639
Interest on borrowings 7,148 7,717
Total interest expense 10,739 13,110
Net interest income 55,453 61,728
Provision for loan losses 329 8,338
Net interest income after provision for loan losses 55,124 53,390
Gain on sale of Vision Bank business -- 22,167
Other income 18,805 17,453
Total other expense 46,098 48,470
Income before income taxes 27,831 44,540
Income taxes 7,121 13,065
Net income $ 20,710 $ 31,475
Preferred stock dividends and accretion -- 1,477
Net income available to common shareholders $ 20,710 $ 29,998
Per Common Share:
Net income - basic $ 1.34 $ 1.95
Net income - diluted $ 1.34 $ 1.95
Weighted average shares - basic 15,411,990 15,405,910
Weighted average shares - diluted 15,411,990 15,417,745
Cash Dividends Declared 0.94 0.94
PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(in thousands, except share data) March 31, 2013 December 31, 2012
Assets
Cash and due from banks $ 99,976 $ 164,120
Money market instruments 420,536 37,185
Investment securities 1,352,408 1,581,751
Loans 4,443,523 4,450,322
Allowance for loan losses 55,315 55,537
Loans, net 4,388,208 4,394,785
Bank premises and equipment, net 56,725 53,751
Goodwill and other intangibles 72,559 72,671
Other real estate owned 36,292 35,718
Other assets 320,451 302,822
Total assets $ 6,747,155 $ 6,642,803
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing $ 1,119,902 $ 1,137,290
Interest bearing 3,796,639 3,578,742
Total deposits 4,916,541 4,716,032
Borrowings 1,107,097 1,206,076
Other liabilities 69,307 70,329
Total liabilities $ 6,092,945 $ 5,992,437
Stockholders' Equity:
Common stock (No par value; 20,000,000 shares authorized in 2013 and 2012; 16,150,973 shares issued at March 31, 2013, and 16,150,987 shares issued at December 31, 2012) $ 302,653 $ 302,654
Accumulated other comprehensive loss, net of taxes (19,897) (17,518)
Retained earnings 447,829 441,605
Treasury stock (738,989 shares at March 31, 2013, and 738,989 shares at December 31, 2012) (76,375) (76,375)
Total stockholders' equity $ 654,210 $ 650,366
Total liabilities and stockholders' equity $ 6,747,155 $ 6,642,803
PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
Three Months Ended
March 31,
(in thousands) 2013 2012
Assets
Cash and due from banks $ 114,662 $ 136,480
Money market instruments 259,723 168,880
Investment securities 1,440,281 1,663,891
Loans 4,438,308 4,485,074
Allowance for loan losses 57,299 70,441
Loans, net 4,381,009 4,414,633
Bank premises and equipment, net 55,090 60,398
Goodwill and other intangibles 72,621 73,619
Other real estate owned 34,282 42,663
Other assets 335,808 335,984
Total assets $ 6,693,476 $ 6,896,548
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing $ 1,100,953 $ 1,047,062
Interest bearing 3,747,634 3,891,482
Total deposits 4,848,587 4,938,544
Borrowings 1,108,304 1,139,028
Other liabilities 84,042 68,471
Total liabilities $ 6,040,933 $ 6,146,043
Stockholders' Equity:
Preferred stock $ -- $ 98,242
Common stock 302,653 301,202
Common stock warrants -- 4,297
Accumulated other comprehensive loss, net of taxes (18,744) (8,357)
Retained earnings 445,009 432,128
Treasury stock (76,375) (77,007)
Total stockholders' equity $ 652,543 $ 750,505
Total liabilities and stockholders' equity $ 6,693,476 $ 6,896,548
PARK NATIONAL CORPORATION
Consolidated Statements of Income - Linked Quarters
2013 2012 2012 2012 2012
(in thousands, except per share data) 1st QTR 4th QTR 3rd QTR 2nd QTR 1st QTR
Interest income:
Interest and fees on loans $ 55,775 $ 57,671 $ 58,269 $ 57,593 $ 61,105
Interest on:
Obligations of U.S. Government, its agencies and other securities 10,242 10,984 12,187 13,794 13,584
Obligations of states and political subdivisions 17 19 33 42 46
Other interest income 158 119 129 57 103
Total interest income 66,192 68,793 70,618 71,486 74,838
Interest expense:
Interest on deposits:
Demand and savings deposits 501 491 636 602 754
Time deposits 3,090 3,404 3,757 4,121 4,639
Interest on borrowings 7,148 8,007 8,209 8,083 7,717
Total interest expense 10,739 11,902 12,602 12,806 13,110
Net interest income 55,453 56,891 58,016 58,680 61,728
Provision for loan losses 329 5,188 16,655 5,238 8,338
Net interest income after provision for loan losses 55,124 51,703 41,361 53,442 53,390
Gain on sale of Vision business -- -- -- -- 22,167
Other income 18,805 17,196 18,079 17,508 17,453
Gain on sale of securities -- -- -- -- --
Total other expense 46,098 48,011 45,683 45,804 48,470
Income before income taxes 27,831 20,888 13,757 25,146 44,540
Income taxes 7,121 4,601 1,775 6,260 13,065
Net income $ 20,710 $ 16,287 $ 11,982 $ 18,886 $ 31,475
Preferred stock dividends and accretion -- -- -- 1,948 1,477
Net income available to common shareholders $ 20,710 $ 16,287 $ 11,982 $ 16,938 $ 29,998
Per Common Share:
Net income - basic $ 1.34 $ 1.06 $ 0.78 $ 1.10 $ 1.95
Net income - diluted $ 1.34 $ 1.06 $ 0.78 $ 1.10 $ 1.95
PARK NATIONAL CORPORATION
Detail of other income and other expense - Linked Quarters
2013 2012 2012 2012 2012
(in thousands) 1st QTR 4th QTR 3rd QTR 2nd QTR 1st QTR
Other income:
Income from fiduciary activities $ 4,076 $ 4,056 $ 4,019 $ 4,044 $ 3,828
Service charges on deposits 3,822 4,235 4,244 4,154 4,071
Other service income 3,985 3,463 4,017 3,417 2,734
Checkcard fee income 2,983 3,151 3,038 3,180 3,172
Bank owned life insurance income 1,202 1,184 1,184 1,184 1,202
ATM fees 627 650 565 536 608
OREO devaluations, net 401 (2,440) (425) (2,648) (1,359)
Gain/(loss) on sale of OREO, net 224 1,028 138 2,203 1,045
Gain on sale of Vision Bank -- -- -- -- 22,167
Other 1,485 1,869 1,299 1,438 2,152
Total other income $ 18,805 $ 17,196 $ 18,079 $ 17,508 $ 39,620
Other expense:
Salaries and employee benefits $ 24,633 $ 24,086 $ 24,255 $ 22,813 $ 24,823
Net occupancy expense 2,597 2,222 2,303 2,249 2,670
Furniture and equipment expense 2,607 2,774 2,666 2,727 2,621
Data processing fees 1,019 913 904 899 1,200
Professional fees and services 5,864 6,846 6,040 5,800 5,581
Amortization of intangibles 112 139 139 139 1,754
Marketing 848 1,002 924 705 843
Insurance 1,302 1,482 1,408 1,400 1,490
Communication 1,580 1,482 1,470 1,494 1,537
Loan put provision -- -- 346 2,701 662
Other 5,536 7,065 5,228 4,877 5,289
Total other expense $ 46,098 $ 48,011 $ 45,683 $ 45,804 $ 48,470
PARK NATIONAL CORPORATION
Asset Quality Information
Year ended December 31,
(in thousands, except ratios) March 31, 2013 2012 2011 2010 2009
Allowance for loan losses:
Allowance for loan losses, beginning of period $ 55,537 $ 68,444 $ 143,575 $ 116,717 $ 100,088
Transfer of loans at fair value -- -- (219) -- --
Transfer of allowance to held for sale -- -- (13,100) -- --
Charge-offs (A) 6,508 61,268 133,882 66,314 59,022
Recoveries 5,957 12,942 8,798 6,092 6,830
Net charge-offs 551 48,326 125,084 60,222 52,192
Provision for loan losses 329 35,419 63,272 87,080 68,821
Allowance for loan losses, end of period $ 55,315 $ 55,537 $ 68,444 $ 143,575 $ 116,717
(A) Year ended 2012 includes 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.
General reserve trends:
Allowance for loan losses, end of period $ 55,315 $ 55,537 $ 68,444 $ 143,575 $ 116,717
Specific reserves 8,260 8,276 15,935 66,904 36,721
General reserves $ 47,055 $ 47,261 $ 52,509 $ 76,671 $ 79,996
Total loans $ 4,443,523 $ 4,450,322 $ 4,317,099 $ 4,732,685 $ 4,640,432
Impaired commercial loans 130,270 137,238 187,074 250,933 201,143
Non-impaired loans $ 4,313,253 $ 4,313,084 $ 4,130,025 $ 4,481,752 $ 4,439,289
Asset Quality Ratios:
Net charge-offs as a % of average loans (annualized for quarterly periods) 0.05% 1.10% 2.65% 1.30% 1.14%
Allowance for loan losses as a % of period end loans 1.24% 1.25% 1.59% 3.03% 2.52%
General reserves as a % of non-impaired loans 1.09% 1.10% 1.27% 1.71% 1.80%
Nonperforming Assets - Park National Corporation:
Nonaccrual loans $ 151,539 $ 155,536 $ 195,106 $ 289,268 $ 233,544
Accruing troubled debt restructuring 24,274 29,800 28,607 -- 142
Loans past due 90 days or more 1,350 2,970 3,489 3,590 14,773
Total nonperforming loans $ 177,163 $ 188,306 $ 227,202 $ 292,858 $ 248,459
Other real estate owned - Park National Bank 14,587 14,715 13,240 8,385 6,037
Other real estate owned - SEPH 21,705 21,003 29,032 -- --
Other real estate owned - Vision Bank -- -- -- 33,324 35,203
Total nonperforming assets $ 213,455 $ 224,024 $ 269,474 $ 334,567 $ 289,699
Percentage of nonaccrual loans to period end loans 3.41% 3.49% 4.52% 6.11% 5.03%
Percentage of nonperforming loans to period end loans 3.99% 4.23% 5.26% 6.19% 5.35%
Percentage of nonperforming assets to period end loans 4.80% 5.03% 6.24% 7.07% 6.24%
Percentage of nonperforming assets to period end assets 3.16% 3.37% 3.86% 4.59% 4.11%
Nonperforming Assets - Park National Bank and Guardian:
Nonaccrual loans $ 103,246 $ 100,244 $ 96,113 $ 117,815 $ 85,197
Accruing troubled debt restructuring 24,274 29,800 26,342 -- 142
Loans past due 90 days or more 1,350 2,970 3,367 3,226 3,496
Total nonperforming loans $ 128,870 $ 133,014 $ 125,822 $ 121,041 $ 88,835
Other real estate owned - Park National Bank 14,587 14,715 13,240 8,385 6,037
Total nonperforming assets $ 143,457 $ 147,729 $ 139,062 $ 129,426 $ 94,872
Percentage of nonaccrual loans to period end loans 2.35% 2.28% 2.29% 2.88% 2.15%
Percentage of nonperforming loans to period end loans 2.93% 3.03% 3.00% 2.96% 2.24%
Percentage of nonperforming assets to period end loans 3.27% 3.36% 3.32% 3.16% 2.39%
Percentage of nonperforming assets to period end assets 2.17% 2.27% 2.21% 1.99% 1.53%
Nonperforming Assets - SEPH/Vision Bank (retained portfolio as of March 31, 2013, December 31, 2012 and December 31, 2011):
Nonaccrual loans $ 48,293 $ 55,292 $ 98,993 $ 171,453 $ 148,347
Accruing troubled debt restructuring -- -- 2,265 -- --
Loans past due 90 days or more -- -- 122 364 11,277
Total nonperforming loans $ 48,293 $ 55,292 $ 101,380 $ 171,817 $ 159,624
Other real estate owned - Vision Bank -- -- -- 33,324 35,203
Other real estate owned - SEPH 21,705 21,003 29,032 -- --
Total nonperforming assets $ 69,998 $ 76,295 $ 130,412 $ 205,141 $ 194,827
Percentage of nonaccrual loans to period end loans N.M. N.M. N.M. 26.77% 21.91%
Percentage of nonperforming loans to period end loans N.M. N.M. N.M. 26.82% 23.58%
Percentage of nonperforming assets to period end loans N.M. N.M. N.M. 32.02% 28.78%
Percentage of nonperforming assets to period end assets N.M. N.M. N.M. 25.90% 21.70%
New nonaccrual loan information - Park National Corporation
Nonaccrual loans, beginning of period $ 155,536 $ 195,106 $ 289,268 $ 233,544 $ 159,512
New nonaccrual loans 21,141 83,204 124,158 175,175 184,181
Resolved nonaccrual loans 25,138 122,774 218,320 119,451 110,149
Nonaccrual loans, end of period $ 151,539 $ 155,536 $ 195,106 $ 289,268 $ 233,544
New nonaccrual loan information - Ohio-based operations
Nonaccrual loans, beginning of period $ 100,244 $ 96,113 $ 117,815 $ 85,197 $ 68,306
New nonaccrual loans - Ohio-based operations 21,141 68,960 78,316 85,081 57,641
Resolved nonaccrual loans 18,139 64,829 100,018 52,463 40,750
Nonaccrual loans, end of period $ 103,246 $ 100,244 $ 96,113 $ 117,815 $ 85,197
New nonaccrual loan information- SEPH/Vision Bank (SEPH as of March 31, 2012)
Nonaccrual loans, beginning of period $ 55,292 $ 98,993 $ 171,453 $ 148,347 $ 91,206
New nonaccrual loans - SEPH/Vision Bank -- 14,243 45,842 90,094 126,540
Resolved nonaccrual loans 6,999 57,944 118,302 66,988 69,399
Nonaccrual loans, end of period $ 48,293 $ 55,292 $ 98,993 $ 171,453 $ 148,347
Impaired Commercial Loan Portfolio Information (period end):
Unpaid principal balance $ 233,144 $ 242,345 $ 290,908 $ 304,534 $ 245,092
Prior charge-offs 102,874 105,107 103,834 53,601 43,949
Remaining principal balance 130,270 137,238 187,074 250,933 201,143
Specific reserves 8,260 8,276 15,935 66,904 36,721
Book value, after specific reserve $ 122,010 $ 128,962 $ 171,139 $ 184,029 $ 164,422

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