NEWARK, Ohio, Jan. 24, 2011 (GLOBE NEWSWIRE) -- Park National Corporation (NYSE Amex:PRK) (Park) today reported financial results for the three months ended December 31, 2010 and the year ended December 31, 2010. Park's Board of Directors also today declared a $0.94 per common share quarterly cash dividend, payable on March 10, 2011 to common shareholders of record on February 25, 2011.
Park's net income was $74.2 million for each of the years ended December 31, 2010 and 2009. Net income for the 2010 fourth quarter was $12.7 million, a slight increase from $12.3 million earned in the same period in 2009.
The issuance of common shares over the last four quarters resulted in a decline in net income per diluted common share compared to last year. Net income per diluted common share for the 2010 year was $4.51, a 6.4 percent decline from the $4.82 reported in 2009. Net income per diluted common share for the 2010 fourth quarter was $0.73, a 1.4 percent decline from $0.74 in the fourth quarter of 2009.
Ohio-Based Operations
Park, excluding Vision Bank (Park's Ohio-based operations), reported net income of $103.5 million for the 2010 year, compared to 2009 net income of $104.3 million. This performance resulted in return on assets of 1.58 percent and 1.61 percent for Park's Ohio-based operations in 2010 and 2009, respectively. Additionally, Park's two Ohio-based subsidiaries, The Park National Bank and Guardian Financial Services Company, generated record earnings in the 2010 year.
Loan growth for Park's Ohio-based operations was $128.7 million, or 3.2 percent, during 2010. Nonperforming loans for Park's Ohio-based operations increased by $32.2 million in 2010, ending the year at $121.0 million, or 2.96 percent of period-end loans. Of the $32.2 million increase in nonperforming loans, $26.7 million was due to loans purchased from Vision Bank subsequent to Park's 2007 acquisition. Without these loan purchases, Park's Ohio-based operations would have experienced a $5.5 million increase in nonperforming loans in 2010.
"We are very pleased with our results in Ohio. Interest rates for 15- and 30-year home loans during 2010, combined with our local servicing, were especially appealing," said Park Chairman C. Daniel DeLawder. "More than 20 percent of the home loans we refinanced in Ohio last year were for clients whose original loan was from another lender. It remains a very attractive time to borrow money. We have it to lend and we continue to welcome opportunities to lend to individuals and businesses alike."
Credit Quality
In 2010, Park continued to proactively increase its allowance for loan losses, providing additional reserves for future losses in the loan portfolio. At December 31, 2010, the allowance for loan losses was $121.4 million, a 4.0 percent increase compared to $116.7 million at December 31, 2009. Nonperforming loans ended the 2010 year at $292.9 million, or 6.19 percent of period-end loans, compared to $248.5 million, or 5.35 percent of period-end loans in 2009.
Park's loan loss provision for the 2010 year was $64.9 million, compared to $68.8 million in 2009. Park's Ohio-based operations had a loan loss provision of $25.7 million in 2010, compared to $24.4 million in 2009. Park subsidiary Vision Bank had a loan loss provision of $39.2 million in 2010, compared to $44.4 million in 2009. Net loan charge-offs at Park for the 2010 year were $60.2 million, or 1.30 percent of average loans outstanding, compared to $52.2 million or 1.14 percent of average loans in 2009.
Capital Raising Activities
Capital-raising activities over the past seven quarters increased common shares outstanding by 1,413,256 or 10.1 percent, generating a net total of approximately $87 million. For the 2010 year, Park issued 509,184 common shares at a weighted average price per share of $67.99, for gross proceeds of $34.6 million. The weighted average price per share of $67.99 represents a multiple of 1.6 times the December 31, 2009 common book value per share of $41.71. After all expenses, Park raised an additional $33.5 million of common equity from the sale of these common shares in 2010.
Other Information
During 2010, Park realized a pre-tax gain of $11.9 million from the sale of investment securities. Park's 2009 results included a pre-tax gain of $7.3 million from the sale of investment securities.
Headquartered in Newark, Ohio, Park National Corporation has $7.3 billion in total assets (as of December 31, 2010). Park consists of 13 community bank divisions 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 and The Park National Bank of Southwest Ohio & Northern Kentucky Division. Park's other banking subsidiary is Vision Bank (headquartered in Panama City, Florida), and its Vision Bank Division (of Gulf Shores, Alabama). Park also includes Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance) and Guardian Financial Services Company (d.b.a. Guardian Finance Company).
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements that 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: deterioration in the asset value of Park's loan portfolio may be worse than expected due to a number of factors, such as adverse changes in economic conditions that impair the ability of borrowers to repay their loans, the underlying value of the collateral could prove less valuable than assumed and cash flows may be worse than expected; 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 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; the effects of the Gulf of Mexico oil spill; changes in market 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; our liquidity requirements could be adversely affected by changes in our assets and liabilities; competitive factors among financial institutions 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 effect of fiscal and governmental policies of the United States federal government; 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, 2009 and in "Item 1A. Risk Factors" of Part II of Park's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. 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 is made, or reflect the occurrence of unanticipated events, except to the extent required by law.
| PARK NATIONAL CORPORATION | |||||
| Financial Highlights | |||||
| Three months ended December 31, 2010, September 30, 2010, and December 31, 2009 | |||||
| 2010 | 2009 | Percent change vs. | |||
| (in thousands, except share and per share data) | 4th QTR | 3rd QTR | 4th QTR | 3Q '10 | 4Q '09 |
| INCOME STATEMENT: | |||||
| Net interest income | $ 68,498 | $ 69,445 | $ 68,802 | -1.4% | -0.4% |
| Provision for loan losses | 20,448 | 14,654 | 25,720 | 39.5% | -20.5% |
| Other income | 14,745 | 17,530 | 16,718 | -15.9% | -11.8% |
| Gain on sale of securities | 45 | -- | -- | N/A | N/A |
| Total other expense | 46,520 | 45,696 | 46,660 | 1.8% | -0.3% |
| Income before income taxes | $ 16,320 | $ 26,625 | $ 13,140 | -38.7% | 24.2% |
| Income taxes | 3,625 | 7,048 | 844 | -48.6% | 329.5% |
| Net income | $ 12,695 | $ 19,577 | $ 12,296 | -35.2% | 3.2% |
| Preferred stock dividends and accretion | 1,452 | 1,452 | 1,441 | 0.0% | 0.8% |
| Net income available to common shareholders | $ 11,243 | $ 18,125 | $ 10,855 | -38.0% | 3.6% |
| MARKET DATA: | |||||
| Earnings per common share - basic (b) | $ 0.73 | $ 1.19 | $ 0.74 | -38.7% | -1.4% |
| Earnings per common share - diluted (b) | 0.73 | 1.19 | 0.74 | -38.7% | -1.4% |
| Cash dividends per common share | 0.94 | 0.94 | 0.94 | 0.0% | 0.0% |
| Common book value per common share at period end | 42.12 | 43.10 | 41.71 | -2.3% | 1.0% |
| Stock price per common share at period end | 72.67 | 64.04 | 58.88 | 13.5% | 23.4% |
| Market capitalization at period end | 1,119,041 | 979,956 | 876,298 | 14.2% | 27.7% |
| Weighted average common shares - basic (a) | 15,340,427 | 15,272,720 | 14,658,601 | 0.4% | 4.7% |
| Weighted average common shares - diluted (a) | 15,352,600 | 15,272,720 | 14,658,601 | 0.5% | 4.7% |
| Common shares outstanding at period end | 15,398,934 | 15,302,244 | 14,882,780 | 0.6% | 3.5% |
| PERFORMANCE RATIOS: | |||||
| Annualized return on average assets (a)(b) | 0.64% | 1.02% | 0.61% | -37.3% | 4.9% |
| Annualized return on average common equity (a)(b) | 6.72% | 10.90% | 6.94% | -38.3% | -3.2% |
| Yield on loans | 5.73% | 5.76% | 5.91% | -0.5% | -3.0% |
| Yield on investments | 3.87% | 4.26% | 4.53% | -9.2% | -14.6% |
| Yield on earning assets | 5.23% | 5.34% | 5.51% | -2.1% | -5.1% |
| Cost of interest bearing deposits | 0.82% | 0.91% | 1.33% | -9.9% | -38.3% |
| Cost of borrowings | 2.76% | 2.91% | 2.68% | -5.2% | 3.0% |
| Cost of paying liabilities | 1.21% | 1.29% | 1.58% | -6.2% | -23.4% |
| Net interest margin (annualized) | 4.25% | 4.28% | 4.20% | -0.7% | 1.2% |
| Efficiency ratio (g) | 55.52% | 52.21% | 54.24% | 6.3% | 2.4% |
| OTHER RATIOS (NON GAAP): | |||||
| Annualized return on average tangible assets (a)(b)(e) | 0.64% | 1.03% | 0.62% | -37.9% | 3.2% |
| Annualized return on average tangible common equity (a)(b)(c) | 7.63% | 12.39% | 8.00% | -38.4% | -4.6% |
| Tangible common book value per common share (d) | $ 37.03 | $ 37.93 | $ 36.22 | -2.4% | 2.2% |
| PARK NATIONAL CORPORATION | |||||
| Financial Highlights (continued) | |||||
| Three months ended December 31, 2010, September 30, 2010, and December 31, 2009 | |||||
| Percent change vs. | |||||
| BALANCE SHEET: | December 31, 2010 | September 30, 2010 | December 31, 2009 | 3Q '10 | 4Q '09 |
| Investment securities | $ 2,039,791 | $ 1,896,969 | $ 1,863,560 | 7.5% | 9.5% |
| Loans | 4,732,685 | 4,656,902 | 4,640,432 | 1.6% | 2.0% |
| Allowance for loan losses | 121,397 | 117,405 | 116,717 | 3.4% | 4.0% |
| Goodwill and other intangibles | 78,377 | 79,199 | 81,799 | -1.0% | -4.2% |
| Other real estate owned | 44,325 | 52,837 | 41,240 | -16.1% | 7.5% |
| Total assets | 7,298,377 | 7,090,456 | 7,040,329 | 2.9% | 3.7% |
| Total deposits | 5,095,420 | 5,100,030 | 5,188,052 | -0.1% | -1.8% |
| Borrowings | 1,375,652 | 1,003,624 | 1,053,850 | 37.1% | 30.5% |
| Stockholders' equity | 745,824 | 756,627 | 717,264 | -1.4% | 4.0% |
| Common equity | 648,534 | 659,539 | 620,781 | -1.7% | 4.5% |
| Tangible common equity (d) | 570,157 | 580,340 | 538,982 | -1.8% | 5.8% |
| Nonperforming loans | 289,268 | 237,194 | 233,686 | 22.0% | 23.8% |
| Nonperforming assets | 333,593 | 290,031 | 274,926 | 15.0% | 21.3% |
| Past due 90 day loans and still accruing | 3,590 | 10,700 | 14,773 | -66.4% | -75.7% |
| ASSET QUALITY RATIOS: | |||||
| Loans as a % of period end assets | 64.85% | 65.68% | 65.91% | -1.3% | -1.6% |
| Nonperforming loans as a % of period end loans | 6.11% | 5.09% | 5.04% | 20.0% | 21.2% |
| Past due 90 day loans as a % of period end loans | 0.08% | 0.23% | 0.32% | -65.2% | -75.0% |
| Nonperforming assets / Period end loans + OREO | 6.98% | 6.16% | 5.87% | 13.3% | 18.9% |
| Allowance for loan losses as a % of period end loans | 2.57% | 2.52% | 2.52% | 2.0% | 2.0% |
| Net loan charge-offs | $ 16,456 | $ 17,925 | $ 19,044 | -8.2% | -13.6% |
| Annualized net loan charge-offs as a % of average loans (a) | 1.39% | 1.53% | 1.63% | -9.2% | -14.7% |
| CAPITAL & LIQUIDITY: | |||||
| Total equity / Period end assets | 10.22% | 10.67% | 10.19% | -4.2% | 0.3% |
| Common equity / Period end assets | 8.89% | 9.30% | 8.82% | -4.4% | 0.8% |
| Tangible common equity (d) / Tangible assets (f) | 7.90% | 8.28% | 7.75% | -4.6% | 1.9% |
| Average equity / Average assets (a) | 10.84% | 10.73% | 10.14% | 1.0% | 6.9% |
| Average equity / Average loans (a) | 16.20% | 16.27% | 15.49% | -0.4% | 4.6% |
| Average loans / Average deposits (a) | 91.68% | 89.64% | 88.65% | 2.3% | 3.4% |
| PARK NATIONAL CORPORATION | |||
| Financial Highlights (continued) | |||
| Twelve months ended December 31, 2010 and 2009 | |||
| (in thousands, except share and per share data) |
December 31, 2010 |
December 31, 2009 |
Percent change |
| INCOME STATEMENT: | |||
| Net interest income | $ 274,044 | $ 273,491 | 0.2% |
| Provision for loan losses | 64,902 | 68,821 | -5.7% |
| Other income | 65,632 | 73,850 | -11.1% |
| Gain on sale of securities | 11,864 | 7,340 | 61.6% |
| Total other expense | 187,107 | 188,725 | -0.9% |
| Income before income taxes | $ 99,531 | $ 97,135 | 2.5% |
| Income taxes | 25,314 | 22,943 | 10.3% |
| Net income | $ 74,217 | $ 74,192 | 0.0% |
| Preferred stock dividends and accretion | 5,807 | 5,762 | 0.8% |
| Net income available to common shareholders | $ 68,410 | $ 68,430 | 0.0% |
| MARKET DATA: | |||
| Earnings per common share - basic (b) | $ 4.51 | $4.82 | -6.4% |
| Earnings per common share - diluted (b) | 4.51 | 4.82 | -6.4% |
| Cash dividends per common share | 3.76 | 3.76 | 0.0% |
| Weighted average common shares - basic (a) | 15,152,692 | 14,206,335 | 6.7% |
| Weighted average common shares - diluted (a) | 15,155,735 | 14,206,335 | 6.7% |
| PERFORMANCE RATIOS: | |||
| Return on average assets (a)(b) | 0.97% | 0.97% | 0.0% |
| Return on average common equity (a)(b) | 10.53% | 11.81% | -10.8% |
| Yield on loans | 5.80% | 6.03% | -3.8% |
| Yield on investments | 4.25% | 4.81% | -11.6% |
| Yield on earning assets | 5.36% | 5.67% | -5.5% |
| Cost of interest bearing deposits | 0.98% | 1.53% | -35.9% |
| Cost of borrowings | 2.88% | 2.46% | 17.1% |
| Cost of paying liabilities | 1.35% | 1.73% | -22.0% |
| Net interest margin | 4.26% | 4.22% | 0.9% |
| Efficiency ratio (g) | 54.75% | 54.01% | 1.4% |
| ASSET QUALITY RATIOS: | |||
| Net loan charge-offs | $ 60,222 | $ 52,192 | 15.4% |
| Annualized net loan charge-offs as a % of average loans (a) | 1.30% | 1.14% | 14.0% |
| CAPITAL AND LIQUIDITY: | |||
| Average equity / Average assets (a) | 10.60% | 9.60% | 10.4% |
| Average equity / Average loans (a) | 16.08% | 14.70% | 9.4% |
| Average loans / Average deposits (a) | 89.59% | 90.97% | -1.5% |
| OTHER RATIOS (NON GAAP): | |||
| Return on average tangible assets (a)(b)(e) | 0.98% | 0.98% | 0.0% |
| Return on average tangible common equity (a)(b)(c) | 12.01% | 13.81% | -13.0% |
| PARK NATIONAL CORPORATION | |||||
| Financial Highlights (continued) | |||||
| 1a) Averages are for the quarters ended December 31, 2010, September 30, 2010, and December 31, 2009, and the twelve-month periods ended December 31, 2010 and December 31, 2009. | |||||
| (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 | TWELVE MONTHS ENDED | ||||
| December 31, 2010 | September 30, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | |
| AVERAGE STOCKHOLDERS' EQUITY | $ 760,556 | $ 756,939 | $ 717,268 | $ 746,555 | $ 675,314 |
| Less: Average preferred stock | 97,174 | 96,972 | 96,374 | 96,873 | 96,090 |
| Average goodwill and other intangibles | 78,823 | 79,651 | 82,322 | 80,072 | 83,722 |
| AVERAGE TANGIBLE COMMON EQUITY | $ 584,559 | $ 580,316 | $ 538,572 | $ 569,610 | $ 495,502 |
| (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: | |||||
| December 31, 2010 | September 30, 2010 | December 31, 2009 | |||
| STOCKHOLDERS' EQUITY | $ 745,824 | $ 756,627 | $ 717,264 | ||
| Less: Preferred stock | 97,290 | 97,088 | 96,483 | ||
| Goodwill and other intangibles | 78,377 | 79,199 | 81,799 | ||
| TANGIBLE COMMON EQUITY | $ 570,157 | $ 580,340 | $ 538,982 | ||
| (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. | |||||
| RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS: | |||||
| THREE MONTHS ENDED | TWELVE MONTHS ENDED | ||||
| December 31, 2010 | September 30, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | |
| AVERAGE ASSETS | $ 7,013,852 | $ 7,052,789 | $ 7,076,494 | $ 7,042,750 | $ 7,035,531 |
| Less: Average goodwill and other intangibles | 78,823 | 79,651 | 82,322 | 80,072 | 83,722 |
| AVERAGE TANGIBLE ASSETS | $ 6,935,029 | $ 6,973,138 | $ 6,994,172 | $ 6,962,678 | $ 6,951,809 |
| (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: | |||||
| December 31, 2010 | September 30, 2010 | December 31, 2009 | |||
| TOTAL ASSETS | $ 7,298,377 | $ 7,090,456 | $ 7,040,329 | ||
| Less: Goodwill and other intangibles | 78,377 | 79,199 | 81,799 | ||
| TANGIBLE ASSETS | $ 7,220,000 | $ 7,011,257 | $ 6,958,530 | ||
| PARK NATIONAL CORPORATION | |||||
| Financial Highlights (continued) | |||||
| (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. | |||||
| RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME | |||||
| THREE MONTHS ENDED | TWELVE MONTHS ENDED | ||||
| December 31, 2010 | September 30, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | |
| Interest income | $ 84,391 | $ 86,682 | $ 90,365 | $ 345,517 | $ 367,690 |
| Fully taxable equivalent adjustment | 540 | 553 | 505 | 2,047 | 2,082 |
| Fully taxable equivalent interest income | $ 84,931 | $ 87,235 | $ 90,870 | $ 347,564 | $ 369,772 |
| Interest expense | 15,893 | 17,237 | 21,563 | 71,473 | 94,199 |
| Fully taxable equivalent net interest income | $ 69,038 | $ 69,998 | $ 69,307 | $ 276,091 | $ 275,573 |
| PARK NATIONAL CORPORATION | ||||
| Consolidated Statements of Income | ||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||
| (in thousands, except share and per share data) | 2010 | 2009 | 2010 | 2009 |
| Interest income: | ||||
| Interest and fees on loans | $ 67,405 | $ 68,676 | $ 267,692 | $ 275,599 |
| Interest on: | ||||
| Obligations of U.S. Government, its agencies and other securities | 16,768 | 21,325 | 76,839 | 90,558 |
| Obligations of states and political subdivisions | 173 | 286 | 786 | 1,417 |
| Other interest income | 45 | 78 | 200 | 116 |
| Total interest income | 84,391 | 90,365 | 345,517 | 367,690 |
| Interest expense: | ||||
| Interest on deposits: | ||||
| Demand and savings deposits | 1,133 | 2,333 | 5,753 | 10,815 |
| Time deposits | 7,512 | 12,269 | 36,212 | 53,805 |
| Interest on borrowings | 7,248 | 6,961 | 29,508 | 29,579 |
| Total interest expense | 15,893 | 21,563 | 71,473 | 94,199 |
| Net interest income | 68,498 | 68,802 | 274,044 | 273,491 |
| Provision for loan losses | 20,448 | 25,720 | 64,902 | 68,821 |
| Net interest income after provision for loan losses | 48,050 | 43,082 | 209,142 | 204,670 |
| Other income | 14,745 | 16,718 | 65,632 | 73,850 |
| Gain on sale of securities | 45 | -- | 11,864 | 7,340 |
| Other expense: | ||||
| Salaries and employee benefits | 24,631 | 24,815 | 98,315 | 101,225 |
| Occupancy expense | 2,760 | 2,740 | 11,510 | 11,552 |
| Furniture and equipment expense | 2,615 | 2,395 | 10,435 | 9,734 |
| Other expense | 16,514 | 16,710 | 66,847 | 66,214 |
| Total other expense | 46,520 | 46,660 | 187,107 | 188,725 |
| Income before income taxes | 16,320 | 13,140 | 99,531 | 97,135 |
| Income taxes | 3,625 | 844 | 25,314 | 22,943 |
| Net income | $ 12,695 | $ 12,296 | $ 74,217 | $ 74,192 |
| Preferred stock dividends and accretion | 1,452 | 1,441 | 5,807 | 5,762 |
| Net income available to common shareholders | $ 11,243 | $ 10,855 | $ 68,410 | $ 68,430 |
| Per Common Share: | ||||
| Net income - basic | $ 0.73 | $ 0.74 | $ 4.51 | $ 4.82 |
| Net income - diluted | $ 0.73 | $ 0.74 | $ 4.51 | $ 4.82 |
| Weighted average shares - basic | 15,340,427 | 14,658,601 | 15,152,692 | 14,206,335 |
| Weighted average shares - diluted | 15,352,600 | 14,658,601 | 15,155,735 | 14,206,335 |
| PARK NATIONAL CORPORATION | ||
| Consolidated Balance Sheets | ||
| (in thousands, except share data) | December 31, 2010 | Dec. 31, 2009 |
| Assets | ||
| Cash and due from banks | $ 109,058 | $ 116,802 |
| Money market instruments | 24,722 | 42,289 |
| Investment securities | 2,039,791 | 1,863,560 |
| Loans | 4,732,685 | 4,640,432 |
| Allowance for loan losses | 121,397 | 116,717 |
| Loans, net | 4,611,288 | 4,523,715 |
| Bank premises and equipment, net | 69,567 | 69,091 |
| Goodwill and other intangibles | 78,377 | 81,799 |
| Other real estate owned | 44,325 | 41,240 |
| Other assets | 321,249 | 301,833 |
| Total assets | $ 7,298,377 | $ 7,040,329 |
| Liabilities and Stockholders' Equity | ||
| Deposits: | ||
| Noninterest bearing | $ 937,719 | $ 897,243 |
| Interest bearing | 4,157,701 | 4,290,809 |
| Total deposits | 5,095,420 | 5,188,052 |
| Borrowings | 1,375,652 | 1,053,850 |
| Other liabilities | 81,481 | 81,163 |
| Total liabilities | $ 6,552,553 | $ 6,323,065 |
| Stockholders' Equity: | ||
|
Preferred Stock (200,000 shares authorized in 2010 and 2009; 100,000 shares issued in 2010 and 2009) |
$ 97,290 | $ 96,483 |
|
Common stock (No par value; 20,000,000 shares authorized in 2010 and 2009; 16,151,062 shares issued at December 31, 2010, and 16,151,112 at December 31, 2009) |
301,205 | 301,208 |
| Common stock warrants | 4,472 | 5,361 |
| Accumulated other comprehensive income, net of taxes | (1,868) | 15,661 |
| Retained earnings | 422,458 | 423,872 |
|
Treasury stock (752,128 shares at December 31, 2010, and 1,268,332 at December 31, 2009) |
(77,733) | (125,321) |
| Total stockholders' equity | $ 745,824 | $ 717,264 |
| Total liabilities and stockholders' equity | $ 7,298,377 | $ 7,040,329 |
| PARK NATIONAL CORPORATION | ||||
| Consolidated Average Balance Sheets | ||||
|
Three Months Ended December 30, |
Twelve Months Ended December 30, |
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| (in thousands) | 2010 | 2009 | 2010 | 2009 |
| Assets | ||||
| Cash and due from banks | $ 119,982 | $ 105,000 | $ 116,961 | $ 110,227 |
| Money market instruments | 84,379 | 132,479 | 93,009 | 52,518 |
| Investment securities | 1,707,321 | 1,848,142 | 1,792,786 | 1,930,151 |
| Loans | 4,695,257 | 4,631,230 | 4,642,478 | 4,594,436 |
| Allowance for loan losses | 118,101 | 109,211 | 119,639 | 103,683 |
| Loans, net | 4,577,156 | 4,522,019 | 4,522,839 | 4,490,753 |
| Bank premises and equipment, net | 70,299 | 68,234 | 69,839 | 67,944 |
| Goodwill and other intangibles | 78,823 | 82,322 | 80,072 | 83,722 |
| Other real estate owned | 53,424 | 44,420 | 47,407 | 38,523 |
| Other assets | 322,468 | 273,878 | 319,837 | 261,693 |
| Total assets | $ 7,013,852 | $ 7,076,494 | $ 7,042,750 | $ 7,035,531 |
| Liabilities and Stockholders' Equity | ||||
| Deposits: | ||||
| Noninterest bearing | $ 959,685 | $ 856,093 | $ 907,514 | $818,243 |
| Interest bearing | 4,161,547 | 4,368,336 | 4,274,501 | 4,232,391 |
| Total deposits | 5,121,232 | 5,224,429 | 5,182,015 | 5,050,634 |
| Borrowings | 1,041,920 | 1,029,529 | 1,026,295 | 1,200,168 |
| Other liabilities | 90,144 | 105,268 | 87,885 | 109,415 |
| Total liabilities | $ 6,253,296 | $ 6,359,226 | $ 6,296,195 | $ 6,360,217 |
| Stockholders' Equity: | ||||
| Preferred stock | $ 97,174 | $ 96,374 | $ 96,873 | $ 96,090 |
| Common stock | 301,317 | 301,208 | 301,244 | 301,208 |
| Common stock warrants | 4,405 | 5,037 | 4,822 | 4,484 |
| Accumulated other comprehensive income, net of taxes | 11,169 | 21,786 | 15,478 | 13,534 |
| Retained earnings | 430,578 | 438,367 | 429,023 | 446,326 |
| Treasury stock | (84,087) | (145,504) | (100,885) | (186,328) |
| Total stockholders' equity | $ 760,556 | $ 717,268 | $ 746,555 | $ 675,314 |
| Total liabilities and stockholders' equity | $ 7,013,852 | $ 7,076,494 | $ 7,042,750 | $ 7,035,531 |
| PARK NATIONAL CORPORATION | |||||
| Consolidated Statements of Income - Linked Quarters | |||||
| 2010 | 2010 | 2010 | 2010 | 2009 | |
| (in thousands, except per share data) | 4th QTR | 3rd QTR | 2nd QTR | 1st QTR | 4th QTR |
| Interest income: | |||||
| Interest and fees on loans | $ 67,405 | $ 67,123 | $ 66,723 | $ 66,441 | $ 68,676 |
| Interest on: | |||||
| Obligations of U.S. Government, its agencies and other securities | 16,768 | 19,333 | 20,263 | 20,475 | 21,325 |
| Obligations of states and political subdivisions | 173 | 192 | 204 | 217 | 286 |
| Other interest income | 45 | 34 | 52 | 69 | 78 |
| Total interest income | 84,391 | 86,682 | 87,242 | 87,202 | 90,365 |
| Interest expense: | |||||
| Interest on deposits: | |||||
| Demand and savings deposits | 1,133 | 1,263 | 1,582 | 1,775 | 2,333 |
| Time deposits | 7,512 | 8,532 | 9,518 | 10,650 | 12,269 |
| Interest on borrowings | 7,248 | 7,442 | 7,421 | 7,397 | 6,961 |
| Total interest expense | 15,893 | 17,237 | 18,521 | 19,822 | 21,563 |
| Net interest income | 68,498 | 69,445 | 68,721 | 67,380 | 68,802 |
| Provision for loan losses | 20,448 | 14,654 | 13,250 | 16,550 | 25,720 |
| Net interest income after provision for loan losses | 48,050 | 54,791 | 55,471 | 50,830 | 43,082 |
| Other income | 14,745 | 17,530 | 16,647 | 16,710 | 16,718 |
| Gain on sale of securities | 45 | -- | 3,515 | 8,304 | -- |
| Other expense: | |||||
| Salaries and employee benefits | 24,631 | 24,500 | 24,013 | 25,171 | 24,815 |
| Occupancy expense | 2,760 | 2,840 | 2,793 | 3,117 | 2,740 |
| Furniture and equipment expense | 2,615 | 2,624 | 2,564 | 2,632 | 2,395 |
| Other expense | 16,514 | 15,732 | 17,631 | 16,970 | 16,710 |
| Total other expense | 46,520 | 45,696 | 47,001 | 47,890 | 46,660 |
| Income before income taxes | 16,320 | 26,625 | 28,632 | 27,954 | 13,140 |
| Income taxes | 3,625 | 7,048 | 7,466 | 7,175 | 844 |
| Net income | $ 12,695 | $ 19,577 | $ 21,166 | $ 20,779 | $ 12,296 |
| Preferred stock dividends and accretion | 1,452 | 1,452 | 1,451 | 1,452 | 1,441 |
| Net income available to common shareholders | $ 11,243 | $ 18,125 | $ 19,715 | $ 19,327 | $ 10,855 |
| Per Common Share: | |||||
| Net income - basic | $ 0.73 | $ 1.19 | $ 1.30 | $ 1.30 | $ 0.74 |
| Net income - diluted | $ 0.73 | $ 1.19 | $ 1.30 | $ 1.30 | $ 0.74 |
| PARK NATIONAL CORPORATION | |||||
| Detail of other income and other expense - Linked Quarters | |||||
| 2010 | 2010 | 2010 | 2010 | 2009 | |
| (in thousands) | 4th QTR | 3rd QTR | 2nd QTR | 1st QTR | 4th QTR |
| Other income: | |||||
| Income from fiduciary activities | $ 3,609 | $ 3,314 | $ 3,528 | $ 3,422 | $ 3,397 |
| Service charges on deposits | 4,853 | 5,026 | 5,092 | 4,746 | 5,604 |
| Other service income | 3,449 | 3,909 | 3,476 | 2,982 | 3,588 |
| Checkcard fee income | 3,068 | 2,900 | 2,765 | 2,444 | 2,488 |
| Bank owned life insurance income | 1,195 | 1,313 | 1,254 | 1,216 | 1,329 |
| Other | (1,429) | 1,068 | 532 | 1,900 | 312 |
| Total other income | $ 14,745 | $ 17,530 | $ 16,647 | $ 16,710 | $ 16,718 |
| Other expense: | |||||
| Salaries and employee benefits | $ 24,631 | $ 24,500 | $ 24,013 | $ 25,171 | $ 24,815 |
| Net occupancy expense | 2,760 | 2,840 | 2,793 | 3,117 | 2,740 |
| Furniture and equipment expense | 2,615 | 2,624 | 2,564 | 2,632 | 2,395 |
| Data processing fees | 1,339 | 1,403 | 1,394 | 1,593 | 1,544 |
| Professional fees and services | 5,341 | 4,477 | 5,299 | 4,856 | 5,385 |
| Amortization of intangibles | 822 | 822 | 842 | 936 | 937 |
| Marketing | 968 | 840 | 946 | 902 | 943 |
| Insurance | 2,136 | 2,316 | 2,333 | 2,198 | 2,376 |
| Communication | 1,536 | 1,696 | 1,647 | 1,769 | 1,720 |
| State taxes | 622 | 865 | 838 | 845 | 424 |
| Other | 3,750 | 3,313 | 4,332 | 3,871 | 3,381 |
| Total other expense | $ 46,520 | $ 45,696 | $ 47,001 | $ 47,890 | $ 46,660 |
| PARK NATIONAL CORPORATION | ||||
| Asset Quality Information | ||||
| Year ended December 31, | ||||
| (in thousands, except ratios) | 2010 | 2009 | 2008 | 2007 |
| Allowance for loan losses: | ||||
| Allowance for loan losses, beginning of period | $ 116,717 | $ 100,088 | $ 87,102 | $ 70,500 |
| Charge-offs | 66,314 | 59,022 | 62,916 | 27,776 |
| Recoveries | 6,092 | 6,830 | 5,415 | 5,568 |
| Net charge-offs | 60,222 | 52,192 | 57,501 | 22,208 |
| Provision for loan losses | 64,902 | 68,821 | 70,487 | 29,476 |
| Allowance for loan losses of acquired bank | -- | -- | -- | 9,334 |
| Allowance for loan losses, end of period | $ 121,397 | $ 116,717 | $ 100,088 | $ 87,102 |
| General reserve trends: | ||||
| Allowance for loan losses, end of period | $ 121,397 | $ 116,717 | $ 100,088 | $ 87,102 |
| Specific reserves | 43,459 | 36,721 | 8,875 | 3,492 |
| General reserves | $ 77,938 | $ 79,996 | $ 91,213 | $ 83,610 |
| Total loans | $ 4,732,685 | $ 4,640,432 | $ 4,491,337 | $ 4,224,134 |
| Impaired commercial loans | 250,933 | 201,143 | 141,343 | 90,081 |
| Non-impaired loans | $ 4,481,752 | $ 4,439,289 | $ 4,349,994 | $ 4,134,053 |
| Asset Quality Ratios: | ||||
| Net charge-offs as a % of average loans | 1.30% | 1.14% | 1.32% | 0.55% |
| Allowance for loan losses as a % of period end loans | 2.57% | 2.52% | 2.23% | 2.06% |
| General reserves as a % of non-impaired loans | 1.74% | 1.80% | 2.10% | 2.02% |
| Nonperforming Assets - Park National Corporation: | ||||
| Nonaccrual loans | $ 289,268 | $ 233,544 | $ 159,512 | $ 101,128 |
| Renegotiated loans | -- | 142 | 2,845 | 2,804 |
| Loans past due 90 days or more | 3,590 | 14,773 | 5,421 | 4,545 |
| Total nonperforming loans | $ 292,858 | $ 248,459 | $ 167,778 | $ 108,477 |
| Other real estate owned - Ohio-based operations | 8,385 | 6,037 | 6,149 | 6,369 |
| Other real estate owned - Vision Bank | 35,940 | 35,203 | 19,699 | 7,074 |
| Total nonperforming assets | $ 337,183 | $ 289,699 | $ 193,626 | $ 121,920 |
| Percentage of nonperforming loans to period end loans | 6.19% | 5.35% | 3.74% | 2.57% |
| Percentage of nonperforming assets to period end loans | 7.12% | 6.24% | 4.31% | 2.89% |
| Percentage of nonperforming assets to period end assets | 4.62% | 4.11% | 2.74% | 1.88% |
| Nonperforming Assets - Ohio-based operations: | ||||
| Nonaccrual loans | $ 117,815 | $ 85,197 | $ 68,306 | $ 38,113 |
| Renegotiated loans | -- | 142 | -- | 2,804 |
| Loans past due 90 days or more | 3,226 | 3,496 | 4,777 | 4,088 |
| Total nonperforming loans | $ 121,041 | $ 88,835 | $ 73,083 | $ 45,005 |
| Other real estate owned | 8,385 | 6,037 | 6,149 | 6,369 |
| Total nonperforming assets | $ 129,426 | $ 94,872 | $ 79,232 | $ 51,374 |
| Percentage of nonperforming loans to period end loans | 2.96% | 2.24% | 1.92% | 1.26% |
| Percentage of nonperforming assets to period end loans | 3.16% | 2.39% | 2.08% | 1.43% |
| Percentage of nonperforming assets to period end assets | 1.99% | 1.54% | 1.29% | 0.91% |
| Nonperforming Assets - Vision Bank: | ||||
| Nonaccrual loans | $ 171,453 | $ 148,347 | $ 91,206 | $ 63,015 |
| Renegotiated loans | -- | -- | 2,845 | -- |
| Loans past due 90 days or more | 364 | 11,277 | 644 | 457 |
| Total nonperforming loans | $ 171,817 | $ 159,624 | $ 94,695 | $ 63,472 |
| Other real estate owned | 35,940 | 35,203 | 19,699 | 7,074 |
| Total nonperforming assets | $ 207,757 | $ 194,827 | $ 114,394 | $ 70,546 |
| Percentage of nonperforming loans to period end loans | 26.82% | 23.58% | 13.71% | 9.93% |
| Percentage of nonperforming assets to period end loans | 32.43% | 28.78% | 16.57% | 11.04% |
| Percentage of nonperforming assets to period end assets | 25.71% | 21.70% | 12.47% | 8.24% |
| New nonaccrual loan information: | ||||
| Nonaccrual loans, beginning of period | $ 233,544 | $ 159,512 | $ 101,128 | $ 16,004 |
| New nonaccrual loans - Ohio-based operations | 85,081 | 57,641 | 58,161 | 44,620 |
| New nonaccrual loans - Vision Bank | 90,094 | 126,540 | 83,588 | 69,100 |
| Resolved nonaccrual loans | 119,451 | 110,149 | 83,365 | 28,596 |
| Nonaccrual loans, end of period | $ 289,268 | $ 233,544 | $ 159,512 | $ 101,128 |
| Impaired Commercial Loan Portfolio Information (period end): | ||||
| Unpaid principal balance | $ 304,534 | $ 245,092 | $ 171,310 | $ 100,307 |
| Prior charge-offs | 53,601 | 43,949 | 29,967 | 10,226 |
| Remaining principal balance | 250,933 | 201,143 | 141,343 | 90,081 |
| Specific reserves | 43,459 | 36,721 | 8,875 | 3,492 |
| Book value, after specific reserve | $ 207,474 | $ 164,422 | $ 132,468 | $ 86,589 |
| Vision Bank Commercial Land & Development (CL&D) Loan Portfolio Information: | ||||
| CL&D loans, period end | $ 170,989 | $ 218,205 | $ 251,443 | $ 295,743 |
| Performing CL&D loans, period end | 84,498 | 132,788 | 191,712 | 260,195 |
| Impaired CL&D loans, period end | 86,491 | 85,417 | 59,731 | 35,548 |
| Specific reserve on impaired CL&D loans | 23,585 | 21,706 | 3,134 | 1,184 |
| Book value of impaired CL&D loans, after specific reserve | $ 62,906 | $ 63,711 | $ 56,597 | $ 34,364 |
| Cumulative prior charge-offs on impaired Vision Bank CL&D loans, period end | $ 28,652 | $ 24,931 | $ 18,839 | $ 7,399 |