Park National Corporation reports financial results for first quarter 2022 | #ukscams | #datingscams | #european









NEWARK, Ohio, April 22, 2022 (GLOBE NEWSWIRE) — Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the first quarter of 2022. Park’s board of directors declared a quarterly cash dividend of $1.04 per common share, payable on June 10, 2022 to common shareholders of record as of May 20, 2022.

“Many of our bankers returned to their offices April 4th. Our colleagues are genuinely happy to be together and to connect in person; the energy and engagement have been palpable,” said Park Chairman and Chief Executive Officer David Trautman. “Whether working in the office or remotely, we live and love to serve customers and help them on their financial journey.”

Park’s net income for the first quarter of 2022 was $38.9 million, a 9.2 percent decrease from $42.8 million for the first quarter of 2021. First quarter 2022 net income per diluted common share was $2.38, compared to $2.61 in the first quarter of 2021.

“We are excited to build upon the momentum generated from the growth in our commercial loan portfolio in the first quarter,” said Park President Matthew Miller. “Our bankers remain committed to deepening relationships and serving our clients, communities and shareholders more.”

Park’s community-banking subsidiary, The Park National Bank, reported net income of $41.5 million for the first quarter of 2022, an 8.1 percent decrease compared to $45.1 million for the same period of 2021.

Headquartered in Newark, Ohio, Park National Corporation has $9.6 billion in total assets (as of March 31, 2022). Park’s banking operations are conducted through its subsidiary The Park National Bank. Other Park subsidiaries are Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

Complete financial tables are listed below.

Category: Earnings

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

Park cautions that any forward-looking statements contained in this news 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:

  • the ever-changing effects of the global novel coronavirus (COVID-19) pandemic – – the duration, extent and severity of which are impossible to predict, including the possibility of further resurgence in the spread of COVID-19 or variants thereof – – on economies (local, national and international), supply chains and markets, on the labor market, including the potential for a sustained reduction in labor force participation, and on our customers, counterparties, employees and third-party service providers, as well as the effects of various responses of governmental and nongovernmental authorities to the COVID-19 pandemic, including public health actions directed toward the containment of the COVID-19 pandemic (such as quarantines, shut downs and other restrictions on travel and commercial, social or other activities), the availability, effectiveness and acceptance of vaccines, and the implementation of fiscal stimulus packages;
  • the impact of future governmental and regulatory actions upon our participation in and execution of government programs related to the COVID-19 pandemic;
  • Park’s ability to execute our business plan successfully and within the expected timeframe as well as our ability to manage strategic initiatives in light of the impact of the COVID-19 pandemic and the various responses to the COVID-19 pandemic;
  • current and future economic and financial market conditions, either nationally or in the states in which Park and our subsidiaries do business, including the effects of higher unemployment rates, inflation, U.S. fiscal debt, budget and tax matters, geopolitical matters (including the conflict in Ukraine), and any slowdown in global economic growth, in addition to the continuing impact of the COVID-19 pandemic on our customers’ operations and financial condition, any of which may result in adverse impacts on the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties’ inability to meet credit and other obligations and the possible impairment of collectability of loans;
  • factors that can impact the performance of our loan portfolio, including changes in real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions;
  • the effect of monetary and other fiscal policies (including the impact of money supply, interest rate policies and policies impacting inflation, of the Federal Reserve Board, the U.S.Treasury and other governmental agencies) as well as disruption in the liquidity and functioning of U.S. financial markets, as a result of the COVID-19 pandemic and government policies implemented in response thereto, may adversely impact prepayment penalty income, mortgage banking income, income from fiduciary activities, the value of securities, deposits and other financial instruments, in addition to the loan demand and the performance of our loan portfolio, and the interest rate sensitivity of our consolidated balance sheet as well as reduce interest margins;
  • changes in the federal, state, or local tax laws may adversely affect the fair values of net deferred tax assets and obligations of state and political subdivisions held in Park’s investment securities portfolio and otherwise negatively impact our financial performance;
  • the impact of the changes in federal, state and local governmental policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation that may increase tax rates, infrastructure spending and social programs;
  • changes in laws or requirements imposed by Park’s regulators impacting Park’s capital actions, including dividend payments and stock repurchases;
  • changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions (including as a result of the COVID-19 pandemic and reactions thereto), legislative and regulatory initiatives (including those undertaken in response to the COVID-19 pandemic), or other factors may be different than anticipated;
  • changes in customers’, suppliers’, and other counterparties’ performance and creditworthiness, and Park’s expectations regarding future credit losses and our allowance for credit losses, may be different than anticipated due to the continuing impact of and the various responses to the COVID-19 pandemic;
  • Park may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral;
  • the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors;
  • the adequacy of our internal controls and risk management program in the event of changes in the market, economic, operational (including those which may result from our associates working remotely), asset/liability repricing, legal, compliance, strategic, cybersecurity, liquidity, credit and interest rate risks associated with Park’s business;
  • competitive pressures among financial services organizations could increase significantly, including product and pricing pressures (which could in turn impact our credit spreads), changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Park’s ability to attract, develop and retain qualified banking professionals;
  • uncertainty regarding the nature, timing, cost 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, FDIC insurance premium levels, pensions, bankruptcy, consumer protection, rent regulation and housing, financial accounting and reporting, environmental protection, insurance, bank products and services, bank and bank holding company capital and liquidity standards, fiduciary standards, securities and other aspects of the financial services industry, specifically the reforms provided for in the Coronavirus Aid, Relief and Economic Security (CARES) Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and the Basel III regulatory capital reforms, 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, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board, to implement the provisions of the CARES Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the provisions of the American Rescue Plan Act of 2021, the provisions of the Dodd-Frank Act, 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 “FASB”), the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, may adversely affect Park’s reported financial condition or results of operations;
  • Park’s assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate or not predictive of actual results;
  • the impact of Park’s ability to anticipate and respond to technological changes on Park’s ability to respond to customer needs and meet competitive demands;
  • operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Park and our subsidiaries are highly dependent;
  • the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Park’s third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Park and/or result in Park incurring a financial loss;
  • a failure in or breach of Park’s operational or security systems or infrastructure, or those of our third-party vendors and other service providers, resulting in failures or disruptions in customer account management, general ledger, deposit, loan, or other systems, including as a result of cyber attacks;
  • the impact on Park’s business and operating results of any costs associated with obtaining rights in intellectual property claimed by others and of adequacy of Park’s intellectual property protection in general;
  • the existence or exacerbation of general geopolitical instability and uncertainty as well as the effect of trade policies (including the impact of potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, closing of border crossings and changes in the relationship of the U.S. and its global trading partners);
  • 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 growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia and the risk they may face difficulties servicing their sovereign debt;
  • the effect of a fall in stock market prices on Park’s asset and wealth management businesses;
  • our litigation and regulatory compliance exposure, including the costs and effects of any adverse developments in legal proceedings or other claims and the costs and effects of unfavorable resolution of regulatory and other governmental examinations or other inquiries;
  • continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends;
  • the impact on Park’s business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties;
  • the impact of widespread natural and other disasters, pandemics (including the COVID-19 pandemic), dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities on the economy and financial markets generally and on us or our counterparties specifically;
  • any of the foregoing factors, or other cascading effects of the COVID-19 pandemic that are not currently foreseeable, could materially affect our business, including our customers’ willingness to conduct banking transactions and their ability to pay on existing obligations;
  • the effect of healthcare laws in the U.S. and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase our healthcare and other costs and negatively impact our operations and financial results;
  • risk and uncertainties associated with Park’s entry into new geographic markets with our recent acquisitions, including expected revenue synergies and cost savings from recent acquisitions not being fully realized or realized within the expected time frame;
  • the replacement of the London Inter-Bank Offered Rate (LIBOR) with other reference rates which may result in increased expenses and litigation, and adversely impact the effectiveness of hedging strategies;
  • 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, 2021.

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
As of or for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021
                       
  2022 2021 2021   Percent change vs.
(in thousands, except share and per share data and ratios) 1st QTR 4th QTR 1st QTR   4Q ’21 1Q ’21
INCOME STATEMENT:                      
Net interest income $ 77,686   $ 83,706   $ 80,734     (7.2 )% (3.8 )%
Recovery of credit losses (4,605 ) (4,993 ) (4,855 )   (7.8 )% (5.1 )%
Other income 31,656   32,206   34,089     (1.7 )% (7.1 )%
Other expense 67,373   75,764   67,865     (11.1 )% (0.7 )%
Income before income taxes $ 46,574   $ 45,141   $ 51,813     3.2 % (10.1 )%
Income taxes 7,699   8,593   8,982     (10.4 )% (14.3 )%
Net income $ 38,875   $ 36,548   $ 42,831     6.4 % (9.2 )%
                       
MARKET DATA:                      
Earnings per common share – basic (a) $ 2.40   $ 2.25   $ 2.63     6.7 % (8.7 )%
Earnings per common share – diluted (a) 2.38   2.23   2.61     6.7 % (8.8 )%
Quarterly cash dividends declared per common share 1.04   1.03   1.03     1.0 % 1.0 %
Special cash dividends declared per common share   0.20   0.20     (100.0 )% (100.0 )%
Book value per common share at period end 66.24   68.48   63.74     (3.3 )% 3.9 %
Market price per common share at period end 131.38   137.31   129.30     (4.3 )% 1.6 %
Market capitalization at period end 2,134,834   2,227,108   2,112,238     (4.1 )% 1.1 %
                       
Weighted average common shares – basic (b) 16,219,889   16,216,076   16,314,987     % (0.6 )%
Weighted average common shares – diluted (b) 16,331,031   16,363,968   16,439,920     (0.2 )% (0.7 )%
Common shares outstanding at period end 16,249,308   16,219,563   16,335,951     0.2 % (0.5 )%
                       
PERFORMANCE RATIOS: (annualized)                      
Return on average assets (a)(b) 1.60 % 1.48 % 1.81 %   8.1 % (11.6 )%
Return on average shareholders’ equity (a)(b) 14.26 % 13.44 % 16.63 %   6.1 % (14.3 )%
Yield on loans 4.31 % 4.58 % 4.48 %   (5.9 )% (3.8 )%
Yield on investment securities 2.11 % 2.05 % 2.53 %   2.9 % (16.6 )%
Yield on money market instruments 0.17 % 0.15 % 0.11 %   13.3 % 54.5 %
Yield on interest earning assets 3.71 % 3.88 % 3.96 %   (4.4 )% (6.3 )%
Cost of interest bearing deposits 0.08 % 0.09 % 0.16 %   (11.1 )% (50.0 )%
Cost of borrowings 2.35 % 2.09 % 1.86 %   12.4 % 26.3 %
Cost of paying interest bearing liabilities 0.25 % 0.25 % 0.32 %   % (21.9 )%
Net interest margin (g) 3.55 % 3.72 % 3.76 %   (4.6 )% (5.6 )%
Efficiency ratio (g) 61.16 % 64.94 % 58.74 %   (5.8 )% 4.1 %
                       
OTHER RATIOS (NON-GAAP):                      
Tangible book value per share (d) $ 55.98   $ 58.18   $ 53.43     (3.8 )% 4.8 %
                       
                       
Note: Explanations for footnotes (a) – (k) are included at the end of the financial tables in the “Financial Reconciliations” section.
                       
                       
                       
                       
                       
                       
PARK NATIONAL CORPORATION
Financial Highlights (continued)
As of or for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021
                       
                Percent change vs.
(in thousands, except ratios) March 31, 2022 December 31, 2021 March 31, 2021   4Q ’21 1Q ’21
BALANCE SHEET:                      
Investment securities $ 1,832,274   $ 1,815,408   $ 1,176,240     0.9 % 55.8 %
Loans 6,821,606   6,871,122   7,168,745     (0.7 )% (4.8 )%
Allowance for credit losses 78,861   83,197   86,886     (5.2 )% (9.2 )%
Goodwill and other intangible assets 166,655   167,057   168,376     (0.2 )% (1.0 )%
Other real estate owned (OREO) 760   775   844     (1.9 )% (10.0 )%
Total assets 9,576,352   9,560,254   9,914,069     0.2 % (3.4 )%
Total deposits 7,996,318   7,904,528   8,236,199     1.2 % (2.9 )%
Borrowings 394,249   426,996   523,266     (7.7 )% (24.7 )%
Total shareholders’ equity 1,076,366   1,110,759   1,041,271     (3.1 )% 3.4 %
Tangible equity (d) 909,711   943,702   872,895     (3.6 )% 4.2 %
Total nonperforming loans 86,891   102,652   130,327     (15.4 )% (33.3 )%
Total nonperforming assets 87,651   106,177   134,335     (17.4 )% (34.8 )%
                       
ASSET QUALITY RATIOS:                      
Loans as a % of period end total assets 71.23 % 71.87 % 72.31 %   (0.9 )% (1.5 )%
Total nonperforming loans as a % of period end loans 1.27 % 1.49 % 1.82 %   (14.8 )% (30.2 )%
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets 1.28 % 1.54 % 1.87 %   (16.9 )% (31.6 )%
Allowance for credit losses as a % of period end loans 1.16 % 1.21 % 1.21 %   (4.1 )% (4.1 )%
Net loan (recoveries) charge-offs $ (269 ) $ (61 ) $ 24     N.M   N.M  
Annualized net loan (recoveries) charge-offs as a % of average loans (b) (0.02 )% % %   N.M   N.M  
                       
CAPITAL & LIQUIDITY:                      
Total shareholders’ equity / Period end total assets 11.24 % 11.62 % 10.50 %   (3.3 )% 7.0 %
Tangible equity (d) / Tangible assets (f) 9.67 % 10.05 % 8.96 %   (3.8 )% 7.9 %
Average shareholders’ equity / Average assets (b) 11.25 % 10.97 % 10.87 %   2.6 % 3.5 %
Average shareholders’ equity / Average loans (b) 16.19 % 15.69 % 14.63 %   3.2 % 10.7 %
Average loans / Average deposits (b) 83.32 % 83.78 % 90.12 %   (0.5 )% (7.5 )%
                       
Note: Explanations for footnotes (a) – (k) are included at the end of the financial tables in the “Financial Reconciliations” section.
     
PARK NATIONAL CORPORATION
Consolidated Statements of Income
     
  Three Months Ended
  March 31,
(in thousands, except share and per share data) 2022 2021
     
Interest income:    
Interest and fees on loans $ 72,416   $ 78,737  
Interest on debt securities:    
Taxable   6,130     4,256  
Tax-exempt   2,447     2,037  
Other interest income   153     143  
Total interest income   81,146     85,173  
     
Interest expense:    
Interest on deposits:    
Demand and savings deposits   351     386  
Time deposits   720     1,584  
Interest on borrowings   2,389     2,469  
Total interest expense   3,460     4,439  
     
Net interest income   77,686     80,734  
     
Recovery of credit losses   (4,605 )   (4,855 )
     
Net interest income after recovery of credit losses   82,291     85,589  
     
Other income   31,656     34,089  
     
Other expense   67,373     67,865  
     
Income before income taxes   46,574     51,813  
     
Income taxes   7,699     8,982  
     
Net income $ 38,875   $ 42,831  
     
Per common share:    
Net income – basic $ 2.40   $ 2.63  
Net income – diluted $ 2.38   $ 2.61  
     
Weighted average shares – basic   16,219,889     16,314,987  
Weighted average shares – diluted   16,331,031     16,439,920  
     
Cash dividends declared:    
Quarterly dividend $ 1.04   $ 1.03  
Special dividend $   $ 0.20  
 
PARK NATIONAL CORPORATION 
Consolidated Balance Sheets
     
(in thousands, except share data) March 31, 2022 December 31, 2021
         
Assets        
         
Cash and due from banks $ 159,858   $ 144,507  
Money market instruments   87,034     74,673  
Investment securities   1,832,274     1,815,408  
Loans   6,821,606     6,871,122  
Allowance for credit losses   (78,861 )   (83,197 )
Loans, net   6,742,745     6,787,925  
Bank premises and equipment, net   87,423     89,008  
Goodwill and other intangible assets   166,655     167,057  
Other real estate owned   760     775  
Other assets   499,603     480,901  
Total assets $ 9,576,352   $ 9,560,254  
     
Liabilities and Shareholders’ Equity    
     
Deposits:    
Noninterest bearing $ 3,055,614   $ 3,066,419  
Interest bearing   4,940,704     4,838,109  
Total deposits   7,996,318     7,904,528  
Borrowings   394,249     426,996  
Other liabilities   109,419     117,971  
Total liabilities $ 8,499,986   $ 8,449,495  
     
     
Shareholders’ Equity:    
Preferred shares (200,000 shares authorized; no shares outstanding at March 31, 2022 and December 31, 2021) $   $  
Common shares (No par value; 20,000,000 shares authorized; 17,623,106 shares issued at March 31, 2022 and 17,623,118 shares issued at December 31, 2021)   459,271     461,800  
Accumulated other comprehensive (loss) income, net of taxes   (40,469 )   15,155  
Retained earnings   797,033     776,294  
Treasury shares (1,373,798 shares at March 31, 2022 and 1,403,555 shares at December 31, 2021)   (139,469 )   (142,490 )
Total shareholders’ equity $ 1,076,366   $ 1,110,759  
Total liabilities and shareholders’ equity $ 9,576,352   $ 9,560,254  
 
PARK NATIONAL CORPORATION 
Consolidated Average Balance Sheets
     
  Three Months Ended
  March 31,
(in thousands) 2022 2021
     
Assets    
     
Cash and due from banks $ 168,726   $ 148,264  
Money market instruments   360,103     553,906  
Investment securities   1,801,527     1,160,509  
Loans   6,829,336     7,138,854  
Allowance for credit losses   (83,434 )   (89,954 )
Loans, net   6,745,902     7,048,900  
Bank premises and equipment, net   88,739     89,740  
Goodwill and other intangible assets   166,918     168,690  
Other real estate owned   759     1,212  
Other assets   492,708     441,321  
Total assets $ 9,825,382   $ 9,612,542  
     
     
Liabilities and Shareholders’ Equity    
     
Deposits:    
Noninterest bearing $ 3,025,991   $ 2,792,398  
Interest bearing   5,170,296     5,129,357  
Total deposits   8,196,287     7,921,755  
Borrowings   411,424     538,706  
Other liabilities   112,131     107,669  
Total liabilities $ 8,719,842   $ 8,568,130  
     
Shareholders’ Equity:    
Preferred shares $   $  
Common shares   461,798     460,721  
Accumulated other comprehensive (loss) income, net of taxes   (1,719 )   1,179  
Retained earnings   787,917     713,254  
Treasury shares   (142,456 )   (130,742 )
Total shareholders’ equity $ 1,105,540   $ 1,044,412  
Total liabilities and shareholders’ equity $ 9,825,382   $ 9,612,542  
 
PARK NATIONAL CORPORATION 
Consolidated Statements of Income – Linked Quarters
           
    2022     2021     2021   2021     2021  
(in thousands, except per share data) 1st QTR 4th QTR 3rd QTR 2nd QTR 1st QTR
           
Interest income:          
Interest and fees on loans $ 72,416   $ 79,168   $ 78,127 $ 81,176   $ 78,737  
Interest on debt securities:          
Taxable   6,130     5,698     4,904   4,600     4,256  
Tax-exempt   2,447     2,209     2,029   2,032     2,037  
Other interest income   153     191     360   186     143  
Total interest income   81,146     87,266     85,420   87,994     85,173  
           
Interest expense:          
Interest on deposits:          
Demand and savings deposits   351     373     435   401     386  
Time deposits   720     831     1,011   1,285     1,584  
Interest on borrowings   2,389     2,356     2,372   2,457     2,469  
Total interest expense   3,460     3,560     3,818   4,143     4,439  
           
Net interest income   77,686     83,706     81,602   83,851     80,734  
           
(Recovery of) provision for credit losses   (4,605 )   (4,993 )   1,972   (4,040 )   (4,855 )
           
Net interest income after (recovery of) provision for credit losses   82,291     88,699     79,630   87,891     85,589  
           
Other income   31,656     32,206     32,411   31,238     34,089  
           
Other expense   67,373     75,764     68,489   71,400     67,865  
           
Income before income taxes   46,574     45,141     43,552   47,729     51,813  
           
Income taxes   7,699     8,593     8,118   8,597     8,982  
           
Net income  $ 38,875   $ 36,548   $ 35,434 $ 39,132   $ 42,831  
           
Per common share:          
Net income – basic $ 2.40   $ 2.25   $ 2.17 $ 2.39   $ 2.63  
Net income – diluted $ 2.38   $ 2.23   $ 2.16 $ 2.38   $ 2.61  
 
PARK NATIONAL CORPORATION 
Detail of other income and other expense – Linked Quarters
           
    2022 2021 2021 2021 2021
(in thousands) 1st QTR 4th QTR 3rd QTR 2nd QTR 1st QTR
           
Other income:          
Income from fiduciary activities $ 8,797 $ 8,887 $ 8,820 $ 8,569 $ 8,173  
Service charges on deposit accounts   2,074   2,357   2,389   2,032   2,054  
Other service income   4,819   6,368   6,668   7,159   9,617  
Debit card fee income   6,126   6,568   6,453   6,758   6,086  
Bank owned life insurance income   1,175   1,121   1,462   1,149   1,165  
ATM fees   532   572   622   655   530  
Gain (loss) on the sale of OREO, net     22   3   4   (33 )
Gain on equity securities, net   2,353   2,125   609   467   1,810  
Other components of net periodic benefit income   3,027   2,038   2,038   2,038   2,038  
Miscellaneous   2,753   2,148   3,347   2,407   2,649  
Total other income $ 31,656 $ 32,206 $ 32,411 $ 31,238 $ 34,089  
           
Other expense:          
Salaries $ 30,521 $ 35,953 $ 29,433 $ 30,303 $ 29,896  
Employee benefits   10,499   10,706   10,640   10,056   10,201  
Occupancy expense   3,214   3,161   3,211   3,027   3,640  
Furniture and equipment expense   2,937   2,724   2,797   2,756   2,610  
Data processing fees   7,504   7,860   7,817   7,150   7,712  
Professional fees and services   5,858   7,840   6,973   6,973   5,664  
Marketing   1,317   1,718   1,574   1,290   1,491  
Insurance   1,405   1,547   1,403   1,276   1,691  
Communication   890   851   796   770   1,122  
State tax expense   1,192   931   1,113   1,103   1,108  
Amortization of intangible assets   402   420   420   479   479  
Foundation contributions         4,000    
Miscellaneous   1,634   2,053   2,312   2,217   2,251  
Total other expense $ 67,373 $ 75,764 $ 68,489 $ 71,400 $ 67,865  
 
PARK NATIONAL CORPORATION 
Asset Quality Information
           
    Year ended December 31,
(in thousands, except ratios) March 31, 2022 2021 2020 2019 2018
           
Allowance for credit losses:          
Allowance for credit losses, beginning of period $ 83,197   $ 85,675   $ 56,679   $ 51,512   $ 49,988  
Cumulative change in accounting principle; adoption of ASU 2016-13       6,090              
Charge-offs   1,347     5,093     10,304     11,177     13,552  
Recoveries   1,616     8,441     27,246     10,173     7,131  
Net (recoveries) charge-offs   (269 )   (3,348 )   (16,942 )   1,004     6,421  
(Recovery of) provision for credit losses   (4,605 )   (11,916 )   12,054     6,171     7,945  
Allowance for credit losses, end of period $ 78,861   $ 83,197   $ 85,675   $ 56,679   $ 51,512  
           
           
General reserve trends:          
Allowance for credit losses, end of period $ 78,861   $ 83,197   $ 85,675   $ 56,679   $ 51,512  
Allowance on purchased credit deteriorated (“PCD”) loans (purchased credit impaired (“PCI”) loans for years 2020 and prior)           167     268      
Allowance on purchased loans excluded from the general reserve           678          
Specific reserves on individually evaluated loans   1,513     1,616     5,434     5,230     2,273  
General reserves on collectively evaluated loans $ 77,348   $ 81,581   $ 79,396   $ 51,181   $ 49,239  
           
Total loans $ 6,821,606   $ 6,871,122   $ 7,177,785   $ 6,501,404   $ 5,692,132  
PCD loans (PCI loans for years 2020 and prior)   6,987     7,149     11,153     14,331     3,943  
Purchased loans excluded from collectively evaluated loans           360,056     548,436     225,029  
Individually evaluated loans   63,209     74,502     108,407     77,459     48,135  
Collectively evaluated loans $ 6,751,410   $ 6,789,471   $ 6,698,169   $ 5,861,178   $ 5,415,025  
           
Asset Quality Ratios:          
Net (recoveries) charge-offs as a % of average loans   (0.02 )%   (0.05 )%   (0.24 )%   0.02 %   0.12 %
Allowance for credit losses as a % of period end loans   1.16 %   1.21 %   1.19 %   0.87 %   0.90 %
Allowance for credit losses as a % of period end loans (excluding PPP loans) (k)   1.16 %   1.22 %   1.25 % N.A. N.A.
General reserve as a % of collectively evaluated loans   1.15 %   1.20 %   1.19 %   0.87 %   0.91 %
General reserves as a % of collectively evaluated loans (excluding PPP loans) (k)   1.15 %   1.21 %   1.24 % N.A. N.A.
           
Nonperforming assets:          
Nonaccrual loans $ 54,018   $ 72,722   $ 117,368   $ 90,080   $ 67,954  
Accruing troubled debt restructurings   32,428     28,323     20,788     21,215     15,173  
Loans past due 90 days or more   445     1,607     1,458     2,658     2,243  
Total nonperforming loans $ 86,891   $ 102,652   $ 139,614   $ 113,953   $ 85,370  
Other real estate owned – Park National Bank   166     181     837     3,100     2,788  
Other real estate owned – SEPH   594     594     594     929     1,515  
Other nonperforming assets – Park National Bank       2,750     3,164     3,599     3,464  
Total nonperforming assets $ 87,651   $ 106,177   $ 144,209   $ 121,581   $ 93,137  
Percentage of nonaccrual loans to period end loans   0.79 %   1.06 %   1.64 %   1.39 %   1.19 %
Percentage of nonperforming loans to period end loans   1.27 %   1.49 %   1.95 %   1.75 %   1.50 %
Percentage of nonperforming assets to period end loans   1.28 %   1.55 %   2.01 %   1.87 %   1.64 %
Percentage of nonperforming assets to period end total assets   0.92 %   1.11 %   1.55 %   1.42 %   1.19 %
           
Note: Explanations for footnotes (a) – (k) are included at the end of the financial tables in the “Financial Reconciliations” section.
 
PARK NATIONAL CORPORATION 
Asset Quality Information (continued)
           
    Year ended December 31,
(in thousands, except ratios) March 31, 2022 2021 2020 2019 2018
           
           
New nonaccrual loan information:          
Nonaccrual loans, beginning of period $ 72,722 $ 117,368 $ 90,080 $ 67,954 $ 72,056
New nonaccrual loans   6,000   38,478   103,386   81,009   76,611
Resolved nonaccrual loans   24,704   83,124   76,098   58,883   80,713
Nonaccrual loans, end of period $ 54,018 $ 72,722 $ 117,368 $ 90,080 $ 67,954
           
Impaired commercial loan portfolio information (period end):          
Unpaid principal balance $ 63,833 $ 75,126 $ 109,062 $ 78,178 $ 59,381
Prior charge-offs   624   624   655   719   11,246
Remaining principal balance   63,209   74,502   108,407   77,459   48,135
Specific reserves   1,513   1,616   5,434   5,230   2,273
Book value, after specific reserves $ 61,696 $ 72,886 $ 102,973 $ 72,229 $ 45,862
           
PARK NATIONAL CORPORATION
Financial Reconciliations      
NON-GAAP RECONCILIATIONS      
  THREE MONTHS ENDED
(in thousands, except share and per share data) March 31, 2022 December 31, 2021 March 31, 2021
Net interest income $ 77,686   $ 83,706   $ 80,734  
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions   480     559     1,131  
less interest income on former Vision Bank relationships   42     4,628     105  
Net interest income – adjusted $ 77,164   $ 78,519   $ 79,498  
       
(Recovery of) provision for credit losses $ (4,605 ) $ (4,993 ) $ (4,855 )
less recoveries on former Vision Bank relationships   (1 )   (106 )   (257 )
(Recovery of) provision for credit losses – adjusted $ (4,604 ) $ (4,887 ) $ (4,598 )
       
Other income $ 31,656   $ 32,206   $ 34,089  
less other service income related to former Vision Bank relationships       321     58  
Other income – adjusted $ 31,656   $ 31,885   $ 34,031  
       
Other expense $ 67,373   $ 75,764   $ 67,865  
less merger-related expenses related to NewDominion and Carolina Alliance acquisitions       4     12  
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions   402     420     479  
less direct expenses related to collection of payments on former Vision Bank loan relationships       700     107  
less rebranding initiative related expenses   344     351     618  
less severance and restructuring charges   42     73     108  
less COVID-19 related expenses (j)   606     587     634  
Other expense – adjusted $ 65,979   $ 73,629   $ 65,907  
       
Tax effect of adjustments to net income identified above (i) $ 183   $ (731 ) $ 85  
       
Net income – reported $ 38,875   $ 36,548   $ 42,831  
Net income – adjusted (h) $ 39,563   $ 33,800   $ 43,153  
       
Diluted earnings per share $ 2.38   $ 2.23   $ 2.61  
Diluted earnings per share, adjusted (h) $ 2.42   $ 2.07   $ 2.62  
       
Annualized return on average assets (a)(b)   1.60 %   1.48 %   1.81 %
Annualized return on average assets, adjusted (a)(b)(h)   1.63 %   1.36 %   1.82 %
       
Annualized return on average tangible assets (a)(b)(e)   1.63 %   1.50 %   1.84 %
Annualized return on average tangible assets, adjusted (a)(b)(e)(h)   1.66 %   1.39 %   1.85 %
       
Annualized return on average shareholders’ equity (a)(b)   14.26 %   13.44 %   16.63 %
Annualized return on average shareholders’ equity, adjusted (a)(b)(h)   14.51 %   12.43 %   16.76 %
       
Annualized return on average tangible equity (a)(b)(c)   16.80 %   15.91 %   19.84 %
Annualized return on average tangible equity, adjusted (a)(b)(c)(h)   17.09 %   14.72 %   19.98 %
       
Efficiency ratio (g)   61.16 %   64.94 %   58.74 %
Efficiency ratio, adjusted (g)(h)   60.18 %   66.23 %   57.69 %
       
Annualized net interest margin (g)   3.55 %   3.72 %   3.76 %
Annualized net interest margin, adjusted (g)(h)   3.53 %   3.49 %   3.70 %
       
Note: Explanations for footnotes (a) – (k) are included at the end of the financial tables in the “Financial Reconciliations” section.
 
PARK NATIONAL CORPORATION
Financial Reconciliations (continued)      
       
(a) Reported measure uses net income
(b) Averages are for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, as appropriate
(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 intangible assets during the applicable period.
       
RECONCILIATION OF AVERAGE SHAREHOLDERS’ EQUITY TO AVERAGE TANGIBLE EQUITY:
  THREE MONTHS ENDED
  March 31, 2022 December 31, 2021 March 31, 2021
AVERAGE SHAREHOLDERS’ EQUITY $ 1,105,540 $ 1,078,494 $ 1,044,412
Less: Average goodwill and other intangible assets   166,918   167,332   168,690
AVERAGE TANGIBLE EQUITY $ 938,622 $ 911,162 $ 875,722
       
(d) Tangible equity divided by common shares outstanding at period end. Tangible equity equals total shareholders’ equity less goodwill and other intangible assets, in each case at the end of the period.
       
RECONCILIATION OF TOTAL SHAREHOLDERS’ EQUITY TO TANGIBLE EQUITY:
  March 31, 2022 December 31, 2021 March 31, 2021
TOTAL SHAREHOLDERS’ EQUITY $ 1,076,366 $ 1,110,759 $ 1,041,271
Less: Goodwill and other intangible assets   166,655   167,057   168,376
TANGIBLE EQUITY $ 909,711 $ 943,702 $ 872,895
       
(e) Net income for each period divided by average tangible assets during the period. Average tangible assets equal average assets less average goodwill and other intangible assets, in each case during the applicable period.
       
RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS
  THREE MONTHS ENDED
  March 31, 2022 December 31, 2021 March 31, 2021
AVERAGE ASSETS $ 9,825,382 $ 9,829,657 $ 9,612,542
Less: Average goodwill and other intangible assets   166,918   167,332   168,690
AVERAGE TANGIBLE ASSETS $ 9,658,464 $ 9,662,325 $ 9,443,852
       
(f) Tangible equity divided by tangible assets. Tangible assets equal total assets less goodwill and other intangible assets, in each case at the end of the period.
       
RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
  March 31, 2022 December 31, 2021 March 31, 2021
TOTAL ASSETS $ 9,576,352 $ 9,560,254 $ 9,914,069
Less: Goodwill and other intangible assets   166,655   167,057   168,376
TANGIBLE ASSETS $ 9,409,697 $ 9,393,197 $ 9,745,693
       
(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 assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets.
       
RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
  THREE MONTHS ENDED
  March 31, 2022 December 31, 2021 March 31, 2021
Interest income $ 81,146 $ 87,266 $ 85,173
Fully taxable equivalent adjustment   819   762   714
Fully taxable equivalent interest income $ 81,965 $ 88,028 $ 85,887
Interest expense   3,460   3,560   4,439
Fully taxable equivalent net interest income $ 78,505 $ 84,468 $ 81,448
       
(h) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, (recovery of) provision for credit losses, other income and other expense.
(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.
(j) COVID-19 related expenses include calamity pay and special one-time bonuses to certain associates.  
(k) Excludes $37.4 million, $74.4 million and $387.0 million of PPP loans at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

 

Media contact: Ellie Akey, 740-349-5493 or ellie.akey@parknationalbank.com
Investor contact: Brady Burt, 740-322-6844 or brady.burt@parknationalbank.com

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Source: Park National Corporation

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All news about PARK NATIONAL CORPORATION

Sales 2022 454 M

Net income 2022 132 M

Net Debt 2022

P/E ratio 2022 15,4x
Yield 2022 3,36%
Capitalization 2 004 M
2 004 M
Capi. / Sales 2022 4,41x
Capi. / Sales 2023 4,20x
Nbr of Employees 1 653
Free-Float 89,7%

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Income Statement Evolution

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Mean consensus HOLD
Number of Analysts 4
Last Close Price 123,58 $
Average target price 132,50 $
Spread / Average Target 7,22%




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