EX-99.1 2 exhibit991earningsrelease1.htm EX-99.1 Document

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April 25, 2025                                            Exhibit 99.1

Park National Corporation reports financial results
for first quarter 2025

NEWARK, Ohio ‒ Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the first quarter of 2025. Park's board of directors declared a quarterly cash dividend of $1.07 per common share, payable on June 10, 2025, to common shareholders of record as of May 16, 2025.

“Our first quarter performance reflects our commitment to providing consistent financial support and a measure of predictability in dynamic market conditions,” said Park Chairman and CEO David Trautman. “In a world buffeted by extremes, our greatest opportunity to serve more is through continuing to build authentic relationships and showing up as a steady, reliable partner.”

Park’s net income for the first quarter of 2025 was $42.2 million, a 19.8 percent increase from $35.2 million for the first quarter of 2024. First quarter 2025 net income per diluted common share was $2.60, compared to $2.17 for the first quarter of 2024. Park’s total loans increased 0.9 percent (3.5 percent annualized) during the first quarter of 2025. Park's reported period end deposits increased 0.7 percent (2.9 percent annualized) during the first quarter of 2025, with an increase of 2.3 percent (9.5 percent annualized), including deposits that Park moved off balance sheet as of March 31, 2025. The combination of solid loan growth and steady deposits continue to contribute to Park's success in 2025.

“Our bankers’ ability to serve others well is reflected in our first quarter results,” said Park President Matthew Miller. “We’re deeply grateful for the trust our communities, customers and neighbors place in us every day. We look forward to growing these and new relationships, consistently delivering on our promises and expanding our impact.”

Headquartered in Newark, Ohio, Park National Corporation has $9.9 billion in total assets (as of March 31, 2025). 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) , Park Investments, Inc. and SE Property Holdings, LLC.

Complete financial tables are listed below.

Category: Earnings
Media contact: Michelle Hamilton, 740.349.6014, media@parknationalbank.com
Investor contact: Brady Burt, 740.322.6844, investor@parknationalbank.com
Park National Corporation, 50 N. Third Street, Newark, Ohio 43055



Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com


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, including those described in Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by our filings with the SEC. 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 include, without limitation: (1) the ability to execute our business plan successfully and manage strategic initiatives; (2) the impact of current and future economic and financial market conditions, including unemployment rates, inflation, interest rates, supply-demand imbalances, and geopolitical matters; (3) factors impacting the performance of our loan portfolio, including real estate values, financial health of borrowers, and loan concentrations; (4) the effects of monetary and fiscal policies, including interest rates, money supply, and inflation; (5) changes in federal, state, or local tax laws; (6) the impact of changes in governmental policy and regulatory requirements on our operations; (7) changes in consumer spending, borrowing, and saving habits; (8) changes in the performance and creditworthiness of customers, suppliers, and counterparties; (9) increased credit risk and higher credit losses due to loan concentrations; (10) volatility in mortgage banking income due to interest rates and demand; (11) adequacy of our internal controls and risk management programs; (12) competitive pressures among financial services organizations; (13) uncertainty regarding changes in banking regulations and other regulatory requirements; (14) our ability to meet heightened supervisory requirements and expectations; (15) the impact of changes in accounting policies and practices on our financial condition; (16) the reliability and accuracy of assumptions and estimates used in applying critical accounting estimates; (17) the potential for higher future credit losses due to changes in economic assumptions; (18) the ability to anticipate and respond to technological changes and our reliance on third-party vendors; (19) operational issues related to and capital spending necessitated by the implementation of information technology systems on which we are highly dependent; (20) the ability to secure confidential information and deliver products and services through computer systems and telecommunications networks; (21) the impact of security breaches or failures in operational systems; (22) the impact of geopolitical instability and trade policies on our operations including the imposition of tariffs and retaliatory tariffs; (23) the impact of changes in credit ratings of government debt and financial stability of sovereign governments; (24) the effect of stock market price fluctuations on our asset and wealth management businesses; (25) litigation and regulatory compliance exposure; (26) availability of earnings and excess capital for dividend declarations; (27) the impact of fraud, scams, and schemes on our business; (28) the impact of natural disasters, pandemics, and other emergencies on our operations; (29) potential deterioration of the economy due to financial, political, or other shocks; (30) impact of healthcare laws and potential changes on our costs and operations; (31) the ability to grow deposits and maintain adequate deposit levels, including by mitigating the effect of unexpected deposit outflows on our financial condition; and (32) other risk factors related to the banking industry.

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
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com


PARK NATIONAL CORPORATION
Financial Highlights
As of or for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024     
       
 202520242024 Percent change vs.
(in thousands, except common share and per common share data and ratios)1st QTR4th QTR1st QTR 4Q '241Q '24
INCOME STATEMENT:     
Net interest income$104,377 $103,445 $95,623  0.9  %9.2  %
Provision for credit losses756 3,935 2,180  (80.8) %(65.3) %
Other income25,746 31,064 26,200  (17.1) %(1.7) %
Other expense78,164 83,241 77,228  (6.1) %1.2  %
Income before income taxes$51,203 $47,333 $42,415  8.2 %20.7  %
Income taxes9,046 8,703 7,211  3.9 %25.4  %
Net income$42,157 $38,630 $35,204  9.1 %19.8  %
     
MARKET DATA:     
Earnings per common share - basic (a)$2.61 $2.39 $2.18  9.2 %19.7 %
Earnings per common share - diluted (a)2.60 2.37 2.17  9.7 %19.8 %
Quarterly cash dividend declared per common share1.07 1.06 1.06  0.9 %0.9 %
Special cash dividend declared per common share— 0.50 — N.M.N.M.
Book value per common share at period end79.00 76.98 71.95  2.6 %9.8 %
Market price per common share at period end151.40 171.43 135.85  (11.7)%11.4 %
Market capitalization at period end2,451,370 2,770,134 2,199,556  (11.5)%11.4 %
    
Weighted average common shares - basic (b)16,159,342 16,156,827 16,116,842  — %0.3 %
Weighted average common shares - diluted (b)16,238,701 16,283,701 16,191,065  (0.3)%0.3 %
Common shares outstanding at period end16,191,347 16,158,982 16,149,523  0.2 %0.3 %
    
PERFORMANCE RATIOS: (annualized)   
Return on average assets (a)(b)1.70 %1.54 %1.44  % 10.4  %18.1  %
Return on average shareholders' equity (a)(b)13.46 %12.32 %12.23  % 9.3  %10.1  %
Yield on loans6.26 %6.21 %5.99  % 0.8  %4.5  %
Yield on investment securities3.25 %3.46 %3.90  % (6.1) %(16.7) %
Yield on money market instruments4.46 %4.75 %5.48  % (6.1) %(18.6) %
Yield on interest earning assets5.85 %5.82 %5.66  % 0.5  %3.4  %
Cost of interest bearing deposits1.76 %1.90 %1.94  % (7.4) %(9.3) %
Cost of borrowings3.94 %3.86 %4.25  % 2.1  %(7.3) %
Cost of paying interest bearing liabilities1.86 %1.99 %2.08  % (6.5) %(10.6) %
Net interest margin (g)4.62 %4.51 %4.28  % 2.4  %7.9  %
Efficiency ratio (g)59.79 %61.60 %63.07  % (2.9) %(5.2) %
    
OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Tangible book value per common share (d)$68.94 $66.89 $61.80 3.1  %11.6  %
Average interest earning assets9,210,385 9,176,540 9,048,204 0.4  %1.8  %
Pre-tax, pre-provision net income (j)51,959 51,268 44,595 1.3  %16.5  %
Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.
      
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com

      
PARK NATIONAL CORPORATION
Financial Highlights (continued)
As of or for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024     
    Percent change vs.
(in thousands, except ratios)March 31, 2025December 31, 2024March 31, 2024 4Q '241Q '24
BALANCE SHEET:    
Investment securities$1,042,163 $1,100,861 $1,339,747  (5.3) %(22.2) %
Loans7,883,735 7,817,128 7,525,005  0.9  %4.8  %
Allowance for credit losses88,130 87,966 85,084  0.2  %3.6  %
Goodwill and other intangible assets162,758 163,032 163,927  (0.2) %(0.7) %
Other real estate owned (OREO)119 938 1,674  (87.3) %(92.9) %
Total assets9,886,612 9,805,350 9,881,077  0.8  %0.1  %
Total deposits8,201,695 8,143,526 8,306,032  0.7  %(1.3) %
Borrowings270,757 280,083 295,130  (3.3) %(8.3) %
Total shareholders' equity1,279,042 1,243,848 1,161,979  2.8  %10.1  %
Tangible equity (d)1,116,284 1,080,816 998,052  3.3  %11.8  %
Total nonperforming loans 63,148 69,932 71,759  (9.7) %(12.0) %
Total nonperforming assets63,267 70,870 73,433  (10.7) %(13.8) %
    
ASSET QUALITY RATIOS:   
Loans as a % of period end total assets79.74 %79.72 %76.16 % —  %4.7  %
Total nonperforming loans as a % of period end loans0.80 %0.89 %0.95 % (10.1) %(15.8) %
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets0.80 %0.91 %0.98 % (12.1) %(18.4) %
Allowance for credit losses as a % of period end loans1.12 %1.13 %1.13 % (0.9) %(0.9) %
Net loan charge-offs$592 $3,206 $841  (81.5) %(29.6) %
Annualized net loan charge-offs as a % of average loans (b)0.03  %0.16  %0.05  % (81.3) %(40.0) %
    
CAPITAL & LIQUIDITY:   
Total shareholders' equity / Period end total assets12.94  %12.69  %11.76  % 2.0  %10.0  %
Tangible equity (d) / Tangible assets (f)11.48  %11.21  %10.27  % 2.4  %11.8  %
Average shareholders' equity / Average assets (b)12.64  %12.47  %11.74  % 1.4  %7.7  %
Average shareholders' equity / Average loans (b)16.22  %16.08  %15.48  % 0.9  %4.8  %
Average loans / Average deposits (b)93.56  %93.00  %91.11  % 0.6  %2.7  %
Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.   

Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com


PARK NATIONAL CORPORATION
Consolidated Statements of Income
Three Months Ended
March 31
(in thousands, except share and per share data)20252024
Interest income:
   Interest and fees on loans$120,648 $111,211 
   Interest on debt securities:
Taxable7,130 11,899 
Tax-exempt1,269 1,410 
   Other interest income3,153 2,120 
         Total interest income132,200 126,640 
Interest expense:
   Interest on deposits:
      Demand and savings deposits18,436 19,855 
      Time deposits6,770 7,338 
   Interest on borrowings2,617 3,824 
      Total interest expense27,823 31,017 
         Net interest income104,377 95,623 
Provision for credit losses756 2,180 
         Net interest income after provision for credit losses103,621 93,443 
Other income25,746 26,200 
Other expense78,164 77,228 
         Income before income taxes51,203 42,415 
Income taxes9,046 7,211 
         Net income$42,157 $35,204 
Per common share:
         Net income - basic$2.61 $2.18 
         Net income - diluted$2.60 $2.17 
         Weighted average common shares - basic16,159,342 16,116,842 
         Weighted average common shares - diluted16,238,701 16,191,065 
        Cash dividends declared:
Quarterly dividend$1.07 $1.06 



Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com

 
PARK NATIONAL CORPORATION 
Consolidated Balance Sheets
   
(in thousands, except share data)March 31, 2025December 31, 2024
  
Assets 
  
Cash and due from banks$154,536 $122,363 
Money market instruments83,078 38,203 
Investment securities1,042,163 1,100,861 
Loans7,883,735 7,817,128 
Allowance for credit losses(88,130)(87,966)
Loans, net7,795,605 7,729,162 
Bank premises and equipment, net66,327 69,522 
Goodwill and other intangible assets162,758 163,032 
Other real estate owned119 938 
Other assets582,026 581,269 
Total assets$9,886,612 $9,805,350 
  
Liabilities and Shareholders' Equity 
  
Deposits:
Noninterest bearing$2,637,577 $2,612,708 
Interest bearing5,564,118 5,530,818 
Total deposits8,201,695 8,143,526 
Borrowings270,757 280,083 
Other liabilities135,118 137,893 
Total liabilities$8,607,570 $8,561,502 
  
  
Shareholders' Equity: 
Preferred shares (200,000 shares authorized; no shares outstanding at March 31, 2025 and December 31, 2024)$— $— 
Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at March 31, 2025 and December 31, 2024)459,529 463,706 
Accumulated other comprehensive loss, net of taxes(34,659)(46,175)
Retained earnings1,002,110 977,599 
Treasury shares (1,431,757 shares at March 31, 2025 and 1,464,122 shares at December 31, 2024)(147,938)(151,282)
Total shareholders' equity$1,279,042 $1,243,848 
Total liabilities and shareholders' equity$9,886,612 $9,805,350 


Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com

 
PARK NATIONAL CORPORATION 
Consolidated Average Balance Sheets
   
 Three Months Ended
 March 31
(in thousands)20252024
   
Assets  
   
Cash and due from banks$127,229 $143,714 
Money market instruments287,016 155,511 
Investment securities 1,069,620 1,368,527 
Loans7,833,234 7,482,650 
Allowance for credit losses(88,825)(84,067)
Loans, net7,744,409 7,398,583 
Bank premises and equipment, net68,992 74,919 
Goodwill and other intangible assets162,938 164,137 
Other real estate owned918 1,088 
Other assets584,485 556,899 
Total assets$10,045,607 $9,863,378 
   
   
Liabilities and Shareholders' Equity  
   
Deposits:
Noninterest bearing$2,578,838 $2,569,030 
Interest bearing5,793,915 5,644,088 
Total deposits8,372,753 8,213,118 
Borrowings269,254 361,703 
Other liabilities133,341 130,373 
Total liabilities$8,775,348 $8,705,194 
   
Shareholders' Equity:  
Preferred shares$— $— 
Common shares464,046 463,518 
Accumulated other comprehensive loss, net of taxes(39,942)(67,343)
Retained earnings997,399 917,645 
Treasury shares(151,244)(155,636)
Total shareholders' equity$1,270,259 $1,158,184 
Total liabilities and shareholders' equity$10,045,607 $9,863,378 



Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com

 
PARK NATIONAL CORPORATION 
Consolidated Statements of Income - Linked Quarters
    
 20252024202420242024
(in thousands, except per share data)1st QTR4th QTR3rd QTR2nd QTR1st QTR
  
Interest income: 
Interest and fees on loans $120,648 $120,870 $120,203 $115,318 $111,211 
Interest on debt securities:
Taxable7,130 8,641 10,228 10,950 11,899 
Tax-exempt1,269 1,351 1,381 1,382 1,410 
Other interest income3,153 2,751 1,996 1,254 2,120 
Total interest income132,200 133,613 133,808 128,904 126,640 
  
Interest expense: 
Interest on deposits:
Demand and savings deposits18,436 19,802 22,762 20,370 19,855 
Time deposits6,770 7,658 7,073 7,525 7,338 
Interest on borrowings2,617 2,708 2,859 3,172 3,824 
Total interest expense27,823 30,168 32,694 31,067 31,017 
  
Net interest income104,377 103,445 101,114 97,837 95,623 
  
Provision for credit losses756 3,935 5,315 3,113 2,180 
  
Net interest income after provision for credit losses103,621 99,510 95,799 94,724 93,443 
  
Other income25,746 31,064 36,530 28,794 26,200 
Other expense78,164 83,241 85,681 75,189 77,228 
  
Income before income taxes51,203 47,333 46,648 48,329 42,415 
  
Income taxes9,046 8,703 8,431 8,960 7,211 
 
Net income $42,157 $38,630 $38,217 $39,369 $35,204 
  
Per common share:
Net income - basic$2.61 $2.39 $2.37 $2.44 $2.18 
Net income - diluted$2.60 $2.37 $2.35 $2.42 $2.17 




Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com

 
PARK NATIONAL CORPORATION 
Detail of other income and other expense - Linked Quarters
    
 20252024202420242024
(in thousands)1st QTR4th QTR3rd QTR2nd QTR1st QTR
 
Other income:
Income from fiduciary activities$10,994 $11,122 $10,615 $10,728 $10,024 
Service charges on deposit accounts2,407 2,319 2,362 2,214 2,106 
Other service income2,936 3,277 3,036 2,906 2,524 
Debit card fee income6,089 6,511 6,539 6,580 6,243 
Bank owned life insurance income1,512 1,519 2,057 1,565 2,629 
ATM fees335 415 471 458 496 
Pension settlement gain— 365 5,783 — — 
(Loss) gain on the sale of OREO, net(229)(74)2 (7)121 
Loss on sale of debt securities, net— (128)— — (398)
(Loss) gain on equity securities, net(862)1,852 1,557 358 (687)
Other components of net periodic benefit income2,344 2,651 2,204 2,204 2,204 
Miscellaneous220 1,235 1,904 1,788 938 
Total other income$25,746 $31,064 $36,530 $28,794 $26,200 
 
Other expense:
Salaries$36,216 $37,254 $38,370 $35,954 $35,733 
Employee benefits10,516 10,129 10,162 9,873 11,560 
Occupancy expense3,519 2,929 3,731 2,975 3,181 
Furniture and equipment expense2,301 2,375 2,571 2,454 2,583 
Data processing fees10,529 10,450 11,764 9,542 8,808 
Professional fees and services7,307 10,465 7,842 6,022 6,817 
Marketing1,528 1,949 1,464 1,164 1,741 
Insurance1,686 1,600 1,640 1,777 1,718 
Communication1,202 1,104 955 1,002 1,036 
State tax expense1,186 1,145 1,116 1,129 1,110 
Amortization of intangible assets274 288 287 320 320 
Foundation contributions— — 2,000 — — 
Miscellaneous1,900 3,553 3,779 2,977 2,621 
Total other expense$78,164 $83,241 $85,681 $75,189 $77,228 



Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com


PARK NATIONAL CORPORATION 
Asset Quality Information
 
 Year ended December 31,
(in thousands, except ratios)March 31, 202520242023202220212020
 
Allowance for credit losses:
Allowance for credit losses, beginning of period$87,966 $83,745 $85,379 $83,197 $85,675 $56,679 
Cumulative change in accounting principle; adoption of ASU 2022-02 in 2023 and ASU 2016-13 in 2021— 383 — 6,090 — 
Charge-offs3,605 18,334 10,863 9,133 5,093 10,304 
Recoveries3,013 8,012 5,942 6,758 8,441 27,246 
Net charge-offs (recoveries) 592 10,322 4,921 2,375 (3,348)(16,942)
Provision for (recovery of) credit losses756 14,543 2,904 4,557 (11,916)12,054 
Allowance for credit losses, end of period$88,130 $87,966 $83,745 $85,379 $83,197 $85,675 
General reserve trends:
Allowance for credit losses, end of period$88,130 $87,966 $83,745 $85,379 $83,197 $85,675 
Allowance on accruing purchased credit deteriorated ("PCD") loans (purchased credit impaired ("PCI") loans for years 2020 and prior)— — — — — 167 
Allowance on purchased loans excluded from collectively evaluated loans (for years 2020 and prior)N.A.N.A.N.A.N.A.N.A.678 
Specific reserves on individually evaluated loans - accrual— — — — 42 44 
Specific reserves on individually evaluated loans - nonaccrual1,044 1,299 4,983 3,566 1,574 5,390 
General reserves on collectively evaluated loans$87,086 $86,667 $78,762 $81,813 $81,581 $79,396 
 
Total loans$7,883,735 $7,817,128 $7,476,221 $7,141,891 $6,871,122 $7,177,785 
Accruing PCD loans (PCI loans for years 2020 and prior)2,139 2,174 2,835 4,653 7,149 11,153 
Purchased loans excluded from collectively evaluated loans (for years 2020 and prior)N.A.N.A.N.A.N.A.N.A.360,056 
Individually evaluated loans - accrual (k)13,935 15,290 — 11,477 17,517 8,756 
Individually evaluated loans - nonaccrual47,718 53,149 45,215 66,864 56,985 99,651 
Collectively evaluated loans$7,819,943 $7,746,515 $7,428,171 $7,058,897 $6,789,471 $6,698,169 
 
Asset Quality Ratios:
Net charge-offs (recoveries) as a % of average loans0.03  %0.14  %0.07  %0.03  %(0.05) %(0.24) %
Allowance for credit losses as a % of period end loans 1.12  %1.13  %1.12  %1.20  %1.21  %1.19  %
General reserve as a % of collectively evaluated loans 1.11  %1.12  %1.06  %1.16  %1.20  %1.19  %
 
Nonperforming assets:
Nonaccrual loans$61,929 $68,178 $60,259 $79,696 $72,722 $117,368 
Accruing troubled debt restructurings (for years 2022 and prior) (k)N.A.N.A.N.A.20,134 28,323 20,788 
Loans past due 90 days or more1,219 1,754 859 1,281 1,607 1,458 
Total nonperforming loans$63,148 $69,932 $61,118 $101,111 $102,652 $139,614 
Other real estate owned 119 938 983 1,354 775 1,431 
Other nonperforming assets — — — — 2,750 3,164 
Total nonperforming assets$63,267 $70,870 $62,101 $102,465 $106,177 $144,209 
Percentage of nonaccrual loans to period end loans0.79  %0.87  %0.81  %1.12  %1.06  %1.64  %
Percentage of nonperforming loans to period end loans0.80  %0.89  %0.82  %1.42  %1.49  %1.95  %
Percentage of nonperforming assets to period end loans0.80  %0.91  %0.83  %1.43  %1.55  %2.01  %
Percentage of nonperforming assets to period end total assets0.64  %0.72  %0.63  %1.04  %1.11  %1.55  %
Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com

PARK NATIONAL CORPORATION 
Asset Quality Information (continued)
 
 Year ended December 31,
(in thousands, except ratios)March 31, 202520242023202220212020
 
New nonaccrual loan information:
Nonaccrual loans, beginning of period$68,178 $60,259 $79,696 $72,722 $117,368 $90,080 
New nonaccrual loans14,767 65,535 48,280 64,918 38,478 103,386 
Resolved nonaccrual loans21,016 57,616 67,717 57,944 83,124 76,098 
Nonaccrual loans, end of period$61,929 $68,178 $60,259 $79,696 $72,722 $117,368 
 
Individually evaluated nonaccrual commercial loan portfolio information (period end):
Unpaid principal balance$51,134 $58,158 $47,564 $68,639 $57,609 $100,306 
Prior charge-offs3,416 5,009 2,349 1,775 624 655 
Remaining principal balance47,718 53,149 45,215 66,864 56,985 99,651 
Specific reserves1,044 1,299 4,983 3,566 1,574 5,390 
Book value, after specific reserves$46,674 $51,850 $40,232 $63,298 $55,411 $94,261 
Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.

Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com


PARK NATIONAL CORPORATION
Financial Reconciliations
NON-GAAP RECONCILIATIONS
THREE MONTHS ENDED
(in thousands, except share and per share data)March 31, 2025December 31, 2024March 31, 2024
Net interest income$104,377 $103,445 $95,623 
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions175 250 352 
less interest income on former Vision Bank relationships1,019 38 2 
Net interest income - adjusted$103,183 $103,157 $95,269 
Provision for credit losses$756 $3,935 $2,180 
less recoveries on former Vision Bank relationships(1,097)— (953)
Provision for credit losses - adjusted$1,853 $3,935 $3,133 
Other income$25,746 $31,064 $26,200 
less loss on sale of debt securities, net— (128)(398)
less pension settlement gain— 365 — 
less impact of strategic initiatives(914)117 (155)
less Vision related (loss) gain on the sale of OREO, net(229)— 121 
less other service income related to former Vision Bank relationships3 299 7 
Other income - adjusted$26,886 $30,411 $26,625 
Other expense$78,164 $83,241 $77,228 
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions274 288 320 
less building demolition costs— 44 65 
less direct expenses related to collection of payments on former Vision Bank loan relationships276 215 — 
Other expense - adjusted$77,614 $82,694 $76,843 
Tax effect of adjustments to net income identified above (i)$(126)$(83)$(104)
Net income - reported$42,157 $38,630 $35,204 
Net income - adjusted (h)$41,682 $38,319 $34,811 
Diluted earnings per common share$2.60 $2.37 $2.17 
Diluted earnings per common share, adjusted (h)$2.57 $2.35 $2.15 
Annualized return on average assets (a)(b)1.70 %1.54 %1.44 %
Annualized return on average assets, adjusted (a)(b)(h)
1.68 %1.52 %1.42 %
Annualized return on average tangible assets (a)(b)(e)1.73 %1.56 %1.46 %
Annualized return on average tangible assets, adjusted (a)(b)(e)(h)1.71 %1.55 %1.44 %
Annualized return on average shareholders' equity (a)(b)13.46 %12.32 %12.23 %
Annualized return on average shareholders' equity, adjusted (a)(b)(h)13.31 %12.22 %12.09 %
Annualized return on average tangible equity (a)(b)(c)15.44 %14.17 %14.24 %
Annualized return on average tangible equity, adjusted (a)(b)(c)(h)15.27 %14.06 %14.08 %
Efficiency ratio (g)59.79 %61.60 %63.07 %
Efficiency ratio, adjusted (g)(h)59.39 %61.63 %62.72 %
Annualized net interest margin (g)4.62 %4.51 %4.28 %
Annualized net interest margin, adjusted (g)(h)4.57 %4.50 %4.26 %
Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com



PARK NATIONAL CORPORATION
Financial Reconciliations (continued)
(a) Reported measure uses net income
(b) Averages are for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, 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, 2025December 31, 2024March 31, 2024
AVERAGE SHAREHOLDERS' EQUITY$1,270,259 $1,247,680 $1,158,184 
Less: Average goodwill and other intangible assets162,938 163,221 164,137 
AVERAGE TANGIBLE EQUITY$1,107,321 $1,084,459 $994,047 
(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, 2025December 31, 2024March 31, 2024
TOTAL SHAREHOLDERS' EQUITY$1,279,042 $1,243,848 $1,161,979 
Less: Goodwill and other intangible assets162,758 163,032 163,927 
TANGIBLE EQUITY$1,116,284 $1,080,816 $998,052 
    
(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, 2025December 31, 2024March 31, 2024
AVERAGE ASSETS$10,045,607 $10,008,328 $9,863,378 
Less: Average goodwill and other intangible assets162,938 163,221 164,137 
AVERAGE TANGIBLE ASSETS$9,882,669 $9,845,107 $9,699,241 
(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, 2025December 31, 2024March 31, 2024
TOTAL ASSETS$9,886,612 $9,805,350 $9,881,077 
Less: Goodwill and other intangible assets162,758 163,032 163,927 
TANGIBLE ASSETS$9,723,854 $9,642,318 $9,717,150 
    
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com

PARK NATIONAL CORPORATION
Financial Reconciliations (continued)
(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, in each case during the applicable period.
RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
 THREE MONTHS ENDED
 March 31, 2025December 31, 2024March 31, 2024
Interest income$132,200 $133,613 $126,640 
Fully taxable equivalent adjustment607 617 616 
Fully taxable equivalent interest income$132,807 $134,230 $127,256 
Interest expense27,823 30,168 31,017 
Fully taxable equivalent net interest income$104,984 $104,062 $96,239 
(h) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for credit losses, other income, other expense and tax effect of adjustments to net income.
(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.
(j) Pre-tax, pre-provision ("PTPP") net income is calculated as net income, plus income taxes, plus the provision for credit losses, in each case during the applicable period. PTPP net income is a common industry metric utilized in capital analysis and review. PTPP is used to assess the operating performance of Park while excluding the impact of the provision for credit losses.
RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME
THREE MONTHS ENDED
March 31, 2025December 31, 2024March 31, 2024
Net income$42,157 $38,630 $35,204 
Plus: Income taxes9,046 8,703 7,211 
Plus: Provision for credit losses756 3,935 2,180 
Pre-tax, pre-provision net income$51,959 $51,268 $44,595 
(k) Effective January 1, 2023, Park adopted Accounting Standards Update ("ASU") 2022-02. Among other things, this ASU eliminated the concept of troubled debt restructurings ("TDRs"). As a result of the adoption of this ASU and elimination of the concept of TDRs, total nonperforming loans ("NPLs") and total nonperforming assets ("NPAs") each decreased by $20.1 million effective January 1, 2023. Additionally, as a result of the adoption of this ASU, accruing individually evaluated loans decreased by $11.5 million effective January 1, 2023.
Park National Corporation
50 N. Third Street, Newark, Ohio 43055
www.parknationalcorp.com