NEWARK, Ohio, April 18, 2005 (PRIMEZONE) -- The Park National Corporation ("Park") (AMEX:PRK) today announced earnings for the first quarter of 2005. Net income for the first quarter of 2005 totaled $23.342 million or $1.61 per diluted share, compared to net income of $22.978 million or $1.58 per diluted share in the same period of 2004, increases of 1.58 percent in net income and 1.90 percent in earnings per diluted share.
Park's Board of Directors declared a cash dividend of $0.90 per share payable to stockholders of record as of May 24, 2005. The dividend will be paid on June 10, 2005.
The Park National Bank, a Park subsidiary, recently announced three office location changes resulting from growth in customer demand in metropolitan areas. This month, the bank will open a new facility in West Chester (in Butler County, north of Cincinnati) to serve businesses and individuals in the Beckett Ridge Area. Adrian Breen is responsible for the bank's southwest Ohio market. Also, the bank's Dayton office, led by Doug Compton, focuses on the needs of business owners and is moving from a small suite in downtown Dayton to a building near Centerville. In May, the bank's Worthington office (Franklin County), under the leadership of Mike Shannon, will move from a suite on the second floor of an office building into a newly constructed 12,000-square-foot building owned by the bank and featuring drive-through lanes and an ATM.
Headquartered in Newark, Ohio, Park is a bank-holding company with $5.7 billion in consolidated total assets. Its family of 12 community banks and 2 specialty finance companies operate 133 offices throughout 29 Ohio counties. Park's significant subsidiaries include The Park National Bank, Fairfield National Division, The Richland Trust Company, Century National Bank, The First-Knox National Bank, Farmers and Savings Division, United Bank, N.A., Second National Bank, The Security National Bank and Trust Co., Unity National Division, The Citizens National Bank of Urbana, First Clermont Division, Scope Aircraft Finance (Scope Leasing Inc.), and Guardian Financial Services.
For more information visit www.parknationalcorp.com. Financial tables are below.
Safe Harbor Statement
Except for the historical and present factual information contained in this press release, the matters discussed in this press release, including statements identified by words such as "will" and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those set forth in the forward-looking statements, including: the impact of competition; changes in economic conditions in Park's market area; changes in policies by regulatory agencies; fluctuations in interest rates; demand for loans in Park's market area; and other risk factors relating to our industry as detailed from time to time in Park's reports filed with the SEC. Park wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Park does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
PARK NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
MARCH 31, 2005
INCOME STATEMENT THREE MONTHS ENDED
MARCH 31,
PERCENT
2005 2004 CHANGE
------- ------- -------
NET INTEREST INCOME $54,445 $52,616 3.48%
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PROVISION FOR LOAN LOSSES 1,082 1,465 -26.14%
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OTHER INCOME 14,112 12,872 9.63%
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GAIN (LOSS) ON SALE OF SECURITIES 0 106
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OTHER EXPENSE 34,404 31,525 9.13%
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INCOME BEFORE TAXES 33,071 32,604 1.43%
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NET INCOME 23,342 22,978 1.58%
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NET INCOME PER SHARE-BASIC 1.63 1.59 2.52%
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NET INCOME PER SHARE-DILUTED 1.61 1.58 1.90%
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CASH DIVIDENDS PER SHARE 0.90 0.84 7.39%
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RATIOS AND OTHER INFORMATION
RETURN ON AVERAGE ASSETS 1.70% 1.86%
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RETURN ON AVERAGE EQUITY 16.92% 16.99%
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YIELD ON EARNING ASSETS 5.97% 5.84%
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COST OF PAYING LIABILITIES 1.93% 1.49%
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NET INTEREST MARGIN 4.35% 4.61%
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EFFICIENCY RATIO 49.68% 47.55%
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NET LOAN CHARGE-OFFS $ 936 $ 673
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NET CHARGE-OFFS AS A
PERCENT OF LOANS 0.12% 0.10%
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BALANCE SHEET
AT MARCH 31, PERCENT
2005 2004 CHANGE
---------- ---------- -------
INVESTMENTS $2,016,859 $1,921,506 4.96%
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LOANS 3,249,914 2,775,146 17.11%
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LOAN LOSS RESERVE 70,322 63,934 9.99%
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GOODWILL AND OTHER INTANGIBLES 71,099 12,589 464.77%
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TOTAL ASSETS 5,676,842 4,995,957 13.63%
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DEPOSITS 3,838,563 3,523,163 8.95%
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BORROWINGS 1,212,477 865,027 40.17%
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EQUITY 556,303 558,377 -0.37%
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BOOK VALUE PER SHARE 38.79 38.77 0.05%
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NONPERFORMING LOANS 22,672 19,279 17.60%
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NONPERFORMING ASSETS 25,407 21,478 18.29%
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PAST DUE 90 DAY LOANS 7,078 4,877 45.13%
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RATIOS
LOANS/ASSETS 57.25% 55.55%
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NONPERFORMING LOANS/LOANS 0.70% 0.69%
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PAST DUE 90 DAY LOANS/LOANS 0.22% 0.18%
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LOAN LOSS RESERVE/LOANS 2.16% 2.30%
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EQUITY/ASSETS 9.80% 11.18%
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PARK NATIONAL CORPORATION
Consolidated Statements of Income
(dollars in thousands, except per share data)
Three Months Ended
March 31,
-------------------------
2005 2004
-------------------------------------------------------------------
Interest income:
Interest and fees on loans $ 52,240 $ 43,613
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Interest on:
Obligations of U.S. Government,
its agencies and other
securities 21,444 21,810
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Obligations of states and
political subdivisions 1,174 1,347
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Other interest income 101 17
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Total interest income 74,959 66,787
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Interest expense:
Interest on deposits:
Demand and savings deposits 2,968 1,523
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Time deposits 9,337 8,510
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Interest on borrowings 8,209 4,138
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Total interest expense 20,514 14,171
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Net interest income 54,445 52,616
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Provision for loan losses 1,082 1,465
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Net interest income after provision
for loan losses 53,363 51,151
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Other income 14,112 12,872
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Gain (loss) on sale of securities -- 106
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Other expense:
Salaries and employee benefits 20,001 18,148
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Occupancy expense 2,280 1,729
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Furniture and equipment expense 1,368 1,581
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Other expense 10,755 10,067
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Total other expense 34,404 31,525
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Income before federal income taxes 33,071 32,604
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Federal income taxes 9,729 9,626
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Net income $ 23,342 $ 22,978
===================================================================
Per Share:
Net income - basic $ 1.63 $ 1.59
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Net income - diluted $ 1.61 $ 1.58
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Weighted average shares - basic 14,331,261 14,443,898
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Weighted average shares - diluted 14,475,634 14,553,019
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PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except share data)
March 31,
-------------------------
2005 2004
-----------------------------------------------------------------
Assets
Cash and due from banks $134,917 $146,398
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Federal funds sold 23,329 11,800
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Interest bearing deposits 1,598 50
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Investment securities 2,016,859 1,921,506
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Loans (net of unearned
interest) 3,249,914 2,775,146
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Allowance for possible loan
losses 70,322 63,934
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Loans, net 3,179,592 2,711,212
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Bank premises and equipment,
net 44,581 36,033
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Other assets 275,966 168,958
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Total assets $5,676,842 $4,995,957
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Liabilities and Stockholders'
Equity
Deposits:
Noninterest-bearing $609,064 $575,541
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Interest-bearing 3,229,499 2,947,622
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Total deposits 3,838,563 3,523,163
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Borrowings 1,212,477 865,027
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Other liabilities 69,499 49,390
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Total liabilities 5,120,539 4,437,580
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Stockholders' Equity:
Common stock (No par value;
20,000,000 shares
authorized in 2005 and
2004; 15,271,213 shares
issued in 2005 and
15,269,452 in 2004) 208,346 105,895
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Accumulated other
comprehensive income, net
of taxes (6,151) 29,572
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Retained earnings 443,700 497,633
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Treasury stock (928,421
shares in 2005 and 868,147
shares in 2004) (89,592) (74,723)
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Total stockholders' equity 556,303 558,377
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Total liabilities and
stockholders' equity $5,676,842 $4,995,957
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PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
(dollars in thousands)
Three Months Ended
March 31,
--------------------------
2005 2004
-----------------------------------------------------------------
Assets
Cash and due from banks $ 154,164 $ 138,473
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Federal funds sold 7,999 4,793
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Interest bearing deposits 1,763 50
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Investment securities 1,892,717 1,943,873
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Loans (net of unearned interest) 3,253,379 2,744,130
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Allowance for possible loan losses 71,174 64,008
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Loans, net 3,182,205 2,680,122
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Bank premises and equipment, net 44,714 36,547
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Other assets 278,232 178,178
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Total assets $ 5,561,794 $ 4,982,036
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Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing $ 620,212 $ 553,206
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Interest-bearing 3,209,914 2,927,157
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Total deposits 3,830,126 3,480,363
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Borrowings 1,094,636 890,590
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Other liabilities 77,651 67,236
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Total liabilities 5,002,413 4,438,189
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Stockholders' Equity:
Common stock 208,297 105,895
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Accumulated other comprehensive
income, net of taxes 11,477 23,030
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Retained earnings 430,088 484,865
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Treasury stock (90,481) (69,943)
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Total stockholders' equity 559,381 543,847
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Total liabilities and
stockholders' equity $ 5,561,794 $ 4,982,036
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