NEWARK, Ohio, Jan. 16, 2007 (PRIME NEWSWIRE) -- Park National Corporation (Park) (AMEX:PRK) today reported a modest increase in net income for 2006, earning $95.347 million, an increase of 0.1 percent over 2005's net income of $95.238 million. Diluted earnings per share for 2006 increased 2.9 percent from $6.64 in 2005 to $6.83 for 2006. Park also announced the declaration of a regular cash dividend of $.93 per share, payable on March 9, 2007 to shareholders of record on February 21, 2007.
For the fourth quarter of 2006, Park reported net income of $23.849 million, or $1.72 in diluted earnings per share, compared to the same period's net income in 2005 of $22.831 million, or $1.61 in diluted earnings per share. The fourth quarter posted an increase of 4.5 percent in net income and 6.8 percent in diluted earnings per share.
On or about January 11, 2007, a prospectus of Park/proxy statement of Vision Bancshares, Inc. ("Vision") was mailed to the shareholders of Vision in connection with the special meeting of shareholders to be held on February 20, 2007. At the special meeting, the Vision shareholders will vote upon the approval of the agreement and plan of merger (the "Merger Agreement") providing for the merger of Vision into Park. The signing of the Merger Agreement had been jointly announced by Park and Vision on September 14, 2006. The merger transaction is subject to the satisfaction of customary closing conditions in the Merger Agreement and the approval of appropriate regulatory authorities and of the shareholders of Vision. Park has filed all necessary regulatory applications and anticipates the transaction will close on or about March 9, 2007, assuming all required approvals have been received and conditions to closing satisfied.
Vision was established in 2000 and has two community bank affiliates, both named Vision Bank. One is headquartered in Gulf Shores, Alabama and the other in Panama City, Florida. These banks operate 15 full-service offices. They will become subsidiaries of Park and retain their name, local leadership and boards of directors. Vision's 185 associates provide full-service community banking and specialize in commercial banking. As of September 30, 2006, Vision had $697 million in assets, $559 million in loans, and $595 million in deposits.
Under the terms of the Merger Agreement, the shareholders of Vision are entitled to elect to receive, in exchange for their shares of Vision common stock, either (a) cash, (b) Park common shares, or (c) a combination of cash and Park common shares, subject to the election and allocation procedures set forth in the Merger Agreement. Park will cause the requests of the Vision shareholders to be allocated on a pro-rata basis so that 50 percent of the shares of Vision common stock outstanding at the effective time of the merger will be exchanged for cash at the rate of $25.00 per share of Vision common stock and the other 50 percent of the outstanding shares of Vision common stock will be exchanged for Park common shares at the exchange rate of 0.2475 Park common shares for each share of Vision common stock. This allocation is subject to adjustment for cash paid in lieu of fractional Park common shares in accordance with the terms of the Merger Agreement.
As of January 8, 2007, 6,114,518 shares of Vision common stock were outstanding and 828,834 shares of Vision common stock were subject to outstanding stock options with a weighted average exercise price of $8.21 per share. Each outstanding stock option (that is not exercised prior to the election deadline specified in the Merger Agreement) granted under one of Vision's equity-based compensation plans will be cancelled and extinguished and converted into the right to receive an amount of cash equal to (1) (a) $25.00 multiplied by (b) the number of shares of Vision common stock subject to the unexercised portion of the stock option minus (2) the aggregate exercise price for the shares of Vision common stock subject to the unexercised portion of the stock option.
Headquartered in Newark, Ohio, Park holds $5.47 billion in assets (based on asset totals as of December 31, 2006). Park and its subisidiaries consist of 12 community banking divisions and two specialty finance companies, all based in Ohio. Park operates 138 offices across 29 Ohio counties and one Kentucky county through the following organizations: The Park National Bank, The Park National Bank of Southwest Ohio & Northern Kentucky Division, Fairfield National Division, The Richland Trust Company, Century National Bank, The First-Knox National Bank of Mount Vernon, 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, Scope Leasing, Inc., and Guardian Financial Services Company.
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 as to the expected benefits of the merger transaction such as efficiencies, market profile, product offerings and financial strength, and the competitive ability and position of the combined organizations, and other statements identified by words such as "will," "anticipates," 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 following: the ability to obtain regulatory approvals and Vision shareholder approval of the Merger Agreement on the proposed terms and schedule; the possibility that costs or difficulties related to the integration of the businesses of Vision and Park will be greater than expected or that the cost savings and any revenue synergies of the combined organizations following the merger transaction may be lower or take longer to realize than expected; disruptions from the merger transaction may make it more difficult to maintain relationships with customers, employees or suppliers; the impact of competition; changes in economic conditions in the respective market areas served by Park and its subsidiaries and Vision and its subsidiaries; changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and its subsidiaries and Vision and its subsidiaries; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; fluctuations in interest rates; demand for loans in the respective market areas served by Park and its subsidiaries and Vision and its subsidiaries; and other risk factors relating to our industry as detailed from time to time in each of Park's and Vision's reports filed with the Securities and Exchange Commission (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 on which they are made. 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 events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events except as required by applicable law. All subsequent written and oral forward-looking statements attributable to Park or any person acting on Park's behalf are qualified by these cautionary statements. Further information on other factors which could affect the financial results of Park after the merger transaction are included in Park's filings with the SEC. These documents are available free of charge through the website maintained by the SEC at http://www.sec.gov and/or from Park.
Additional Information and Where to Find it
Park has filed with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 and a prospectus of Park/proxy statement of Vision that was mailed to the shareholders of Vision on or about January 11, 2007, in connection with the merger transaction contemplated by the Merger Agreement. Investors and shareholders of Vision are urged to read the prospectus/proxy statement because it contains important information about Park, Vision and the merger transaction. Investors and shareholders of Vision can obtain a copy of the prospectus/proxy statement, as well as other filings containing information about Park and Vision, free of charge, through the website maintained by the SEC at http://www.sec.gov. Copies of the prospectus/proxy statement, and the filings with the SEC that will be incorporated by reference in the prospectus/proxy statement, can also be obtained, free of charge, by directing a request to Park National Corporation, 50 North Third Street, P.O. Box 3500, Newark, Ohio 43058-3500, Attn: John W. Kozak, Chief Financial Officer (740.349.3792), or to Vision Bancshares, Inc., 2200 Stanford Road, Panama City, Florida 32405, Attn: William E. Blackmon, Chief Financial Officer, (251.968.1001).
Park and Vision and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Vision in respect of the proposed merger transaction. Information about the directors and executive officers of Park is set forth in the proxy statement for Park's 2006 annual meeting of shareholders, as filed with the SEC on March 10, 2006. Information about directors and executive officers of Vision and their ownership of Vision common stock is set forth in the proxy statement for Vision's 2006 annual meeting of shareholders, as filed with the SEC on April 6, 2006. Other information regarding the potential participants in the proxy solicitation and their interests in the solicitation, is set forth in the registration statement on Form S-4 and in the prospectus of Park/proxy statement of Vision filed with the SEC.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification of the securities under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
PARK NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
DECEMBER 31, 2006
INCOME STATEMENT
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
PERCENT PERCENT
2006 2005 CHANGE 2006 2005 CHANGE
---- ---- ------ ---- ---- ------
NET
INTEREST
INCOME $ 54,374 $ 55,156 -1.42% $215,177 $220,564 -2.44%
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PROVISION
FOR LOAN
LOSSES 1,525 1,400 8.93% 3,927 5,407 -27.37%
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OTHER INCOME 16,590 14,889 11.42% 64,665 59,609 8.48%
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GAIN (LOSS)
ON SALE OF
SECURITIES 0 0 97 96
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OTHER
EXPENSE 35,645 36,358 -1.96% 141,002 139,438 1.12%
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INCOME
BEFORE TAXES 33,794 32,287 4.67% 135,010 135,424 -0.31%
---------------------------------------------------------------------
NET INCOME 23,849 22,831 4.46% 95,347 95,238 0.11%
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NET INCOME
PER
SHARE-BASIC 1.72 1.62 6.17% 6.85 6.68 2.54%
---------------------------------------------------------------------
NET INCOME
PER
SHARE-
DILUTED 1.72 1.61 6.83% 6.83 6.64 2.86%
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CASH
DIVIDENDS
PER SHARE 0.93 0.92 1.09% 3.69 3.62 1.93%
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RATIOS AND OTHER INFORMATION
RETURN ON
AVERAGE
ASSETS 1.76% 1.66% 1.77% 1.71%
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RETURN ON
AVERAGE
EQUITY 16.81% 16.33% 17.49% 17.03%
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YIELD ON
EARNING
ASSETS 7.01% 6.41% 6.80% 6.17%
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COST OF
PAYING
LIABILITIES 3.20% 2.46% 2.97% 2.19%
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NET INTEREST
MARGIN 4.38% 4.39% 4.37% 4.34%
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EFFICIENCY
RATIO 49.88% 51.48% 50.00% 49.32%
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NET LOAN
CHARGE-OFFS $ 1,522 $ 2,073 $ 3,920 $ 5,890
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NET
CHARGE-OFFS
AS A
PERCENT OF
LOANS 0.18% 0.25% 0.12% 0.18%
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BALANCE SHEET
AT DECEMBER 31, PERCENT
2006 2005 CHANGE
---- ---- ------
INVESTMENTS $1,513,498 $1,663,342 -9.01%
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LOANS 3,480,702 3,328,112 4.58%
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LOAN LOSS RESERVE 70,500 69,694 1.16%
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GOODWILL AND OTHER INTANGIBLES 78,003 69,188 12.74%
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TOTAL ASSETS 5,472,809 5,436,048 0.68%
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DEPOSITS 3,825,534 3,757,757 1.80%
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BORROWINGS 979,913 1,028,858 -4.76%
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EQUITY 571,695 558,430 2.38%
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BOOK VALUE PER SHARE 41.07 39.63 3.63%
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NONPERFORMING LOANS 25,117 22,363 12.31%
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NONPERFORMING ASSETS 28,468 24,731 15.11%
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PAST DUE 90 DAY LOANS 7,832 7,661 2.23%
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RATIOS
LOANS/ASSETS 63.60% 61.22%
---------------------------------------------------------
NONPERFORMING LOANS/LOANS 0.73% 0.67%
---------------------------------------------------------
PAST DUE 90 DAY LOANS/LOANS 0.23% 0.23%
---------------------------------------------------------
LOAN LOSS RESERVE/LOANS 2.03% 2.09%
---------------------------------------------------------
EQUITY/ASSETS 10.45% 10.27%
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PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except share data)
December 31,
------------------------
2006 2005
-------------------------------------------------------------------
Assets
Cash and due from banks $ 177,990 $ 169,690
-------------------------------------------------------------------
Money market instruments 8,266 4,283
-------------------------------------------------------------------
Interest bearing deposits 1 300
-------------------------------------------------------------------
Investment securities 1,513,498 1,663,342
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Loans (net of unearned interest) 3,480,702 3,328,112
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Allowance for possible loan losses 70,500 69,694
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Loans, net 3,410,202 3,258,418
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Bank premises and equipment, net 47,554 47,172
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Other assets 315,298 292,843
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Total assets $5,472,809 $5,436,048
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Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing $ 664,962 $ 667,328
-------------------------------------------------------------------
Interest bearing 3,160,572 3,090,429
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Total deposits 3,825,534 3,757,757
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Borrowings 979,913 1,028,858
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Other liabilities 95,667 91,003
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Total liabilities 4,901,114 4,877,618
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Stockholders' Equity:
Common stock (No par value;
20,000,000 shares authorized in
2006 and 2005; 15,358,323 shares
issued in 2006 and 15,271,574
in 2005) 217,067 208,365
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Accumulated other comprehensive
income (loss), net of taxes (22,820) (10,143)
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Retained earnings 520,819 476,889
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Treasury stock (1,436,794 shares in
2006 and 1,178,948 shares in 2005) (143,371) (116,681)
-------------------------------------------------------------------
Total stockholders' equity 571,695 558,430
-------------------------------------------------------------------
Total liabilities and stockholders'
equity $5,472,809 $5,436,048
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PARK NATIONAL CORPORATION
Consolidated Statements of Income
(dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------ ------------------------
2006 2005 2006 2005
------------------------------------------- ------------------------
Interest income:
Interest and fees
on loans $ 68,065 $ 59,759 $ 257,056 $ 223,868
------------------------------------------- ------------------------
Obligations of U.S.
Government, its
agencies and
other securities 18,268 19,886 75,300 85,664
------------------------------------------- ------------------------
Obligations of
states and
political
subdivisions 852 1,037 3,667 4,486
------------------------------------------- ------------------------
Other interest
income 123 122 469 441
------------------------------------------- ------------------------
Total interest
income 87,308 80,804 336,492 314,459
------------------------------------------- ------------------------
Interest expense:
Interest on deposits:
Demand and savings
deposits 7,225 4,490 25,870 15,091
------------------------------------------- ------------------------
Time deposits 15,774 11,502 56,402 41,808
------------------------------------------- ------------------------
Interest on
borrowings 9,935 9,656 39,043 36,996
------------------------------------------- ------------------------
Total interest
expense 32,934 25,648 121,315 93,895
------------------------------------------- ------------------------
Net interest income 54,374 55,156 215,177 220,564
------------------------------------------- ------------------------
Provision for loan
losses 1,525 1,400 3,927 5,407
------------------------------------------- ------------------------
Net interest income
after provision
for loan losses 52,849 53,756 211,250 215,157
------------------------------------------- ------------------------
Other income 16,590 14,889 64,665 59,609
------------------------------------------- ------------------------
Gain (loss) on sale
of securities -- -- 97 96
------------------------------------------- ------------------------
Other expense:
Salaries and
employee benefits 20,393 19,134 80,227 78,498
------------------------------------------- ------------------------
Occupancy expense 2,347 2,097 9,066 8,641
------------------------------------------- ------------------------
Furniture and
equipment expense 1,202 1,287 5,166 5,278
------------------------------------------- ------------------------
Other expense 11,703 13,840 46,543 47,021
------------------------------------------- ------------------------
Total other expense 35,645 36,358 141,002 139,438
------------------------------------------- ------------------------
Income before
federal income
taxes 33,794 32,287 135,010 135,424
------------------------------------------- ------------------------
Federal income taxes 9,945 9,456 39,663 40,186
------------------------------------------- ------------------------
Net income $ 23,849 $ 22,831 $ 95,347 $ 95,238
=========================================== ========================
Per Share:
Net income -
basic $ 1.72 $ 1.62 $ 6.85 $ 6.68
------------------------------------------- ------------------------
Net income -
diluted $ 1.72 $ 1.61 $ 6.83 $ 6.64
------------------------------------------- ------------------------
Weighted average
shares - basic 13,845,071 14,134,058 13,929,090 14,258,519
------------------------------------------- ------------------------
Weighted average
shares - diluted 13,872,586 14,199,455 13,966,836 14,348,243
------------------------------------------- ------------------------
PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
(dollars in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ----------------------
2006 2005 2006 2005
------------------------------------------- ----------------------
Assets
Cash and due from
banks $ 139,743 $ 148,566 $ 142,794 $ 148,303
Money market
instruments 10,445 12,713 8,639 11,272
-------------------------------------------- ---------------------
Interest bearing
deposits 1 305 84 986
-------------------------------------------- ---------------------
Investment
securities 1,526,529 1,694,688 1,578,243 1,853,524
-------------------------------------------- ----------------------
Loans (net of
unearned interest) 3,411,449 3,312,164 3,357,278 3,278,092
-------------------------------------------- ----------------------
Allowance for
possible loan
losses 70,188 71,050 70,386 71,052
-------------------------------------------- ----------------------
Loans, net 3,341,261 3,241,114 3,286,892 3,207,040
-------------------------------------------- ----------------------
Bank premises and
equipment, net 46,704 47,331 46,894 46,418
-------------------------------------------- ----------------------
Other assets 318,420 302,330 317,082 290,545
-------------------------------------------- ----------------------
Total assets $5,383,103 $5,447,047 $5,380,628 $5,558,088
-------------------------------------------- ----------------------
Liabilities and
Stockholders' Equity
Deposits:
Noninterest bearing $ 651,753 $ 665,426 $ 662,077 $ 643,032
-------------------------------------------- ----------------------
Interest bearing 3,162,943 3,135,084 3,162,867 3,187,033
-------------------------------------------- ----------------------
Total deposits 3,814,696 3,800,510 3,824,944 3,830,065
-------------------------------------------- ----------------------
Borrowings 924,479 1,009,117 927,789 1,091,730
-------------------------------------------- ----------------------
Other liabilities 81,120 82,760 82,818 77,082
-------------------------------------------- ----------------------
Total liabilities 4,820,295 4,892,387 4,835,551 4,998,877
-------------------------------------------- ----------------------
Stockholders' Equity:
Common stock 209,721 208,367 208,733 208,349
-------------------------------------------- ----------------------
Accumulated other
comprehensive
income (loss), net
of taxes (14,798) (10,310) (21,085) 1,309
-------------------------------------------- ----------------------
Retained earnings 511,597 468,847 491,726 448,354
-------------------------------------------- ----------------------
Treasury stock (143,712) (112,244) (134,297) (98,801)
-------------------------------------------- ----------------------
Total stockholders'
equity 562,808 554,660 545,077 559,211
-------------------------------------------- ----------------------
Total liabilities
and stockholders'
equity $5,383,103 $5,447,047 $5,380,628 $5,558,088
-------------------------------------------- ----------------------