Park National Corporation reports 2020 financial results
Park National Corporation (PRK) reported robust financial results for Q4 and FY 2020, marking significant growth with a net income of $45.2 million for Q4, up 88.8% YoY, and $127.9 million for the full year, a 24.6% increase. Diluted EPS rose to $2.75 in Q4 and $7.80 for 2020. The board declared a quarterly dividend of $1.03 and a special dividend of $0.20. The bank highlighted its commitment to community support, aiding over 8,000 families with home loans and preserving 65,000 jobs via the PPP. Assets totaled $9.3 billion as of December 31, 2020.
- Net income for Q4 increased 88.8% to $45.2 million.
- Full year net income grew 24.6% to $127.9 million.
- Quarterly dividend raised to $1.03 per share and a special cash dividend of $0.20 declared.
- Supported over 8,000 families in home purchases or refinancing.
- Helped maintain 65,000 jobs through the Paycheck Protection Program.
- None.
Loan activity generated income growth and supported community outreach
NEWARK, Ohio, Jan. 25, 2021 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the fourth quarter and full year of 2020 (three and twelve months ended December 31, 2020). The board of directors increased Park’s quarterly cash dividend, declaring it as
Park’s net income for the fourth quarter of 2020 was
“Our lending services throughout the year were a main driver in our overall performance. Our bankers mobilized to serve in new ways, delivering prompt advice and service to families and businesses who were struggling due to the pandemic or rushing to take advantage of opportunities,” said Park President Matthew Miller. “We’re proud of our lending teams’ outstanding response to the surge of home loan activity and demand for U.S. PPP loans; and we’re deeply grateful to all our associates who showed extraordinary dedication to caring for customers and each other every day in 2020.”
Park's community-banking subsidiary, The Park National Bank, reported net income of
“Park National bankers’ reliability and flexibility were never more important than in 2020,” Park Chairman and Chief Executive Officer David Trautman said. “In a year filled with odd and often uncomfortable circumstances, we grew relationships with our customers and communities by responding to their needs in consistent, compassionate, and creative ways.”
In 2020, Park National Corporation:
- Donated
$4 million dollars to local organizations like shelters, theaters, support agencies, youth teams, and clubs. - Helped over 8,000 families purchase a new home or refinance their current one to put themselves in a better financial situation.
- Helped small businesses maintain their workforces with the preservation of over 65,000 jobs through the Paycheck Protection Program.
- Rapidly approved vehicle loans for 42,518 families who needed more space or more recreational time with the family.
- Guided local business owners in sustaining their retirement plans that support over 24,000 employees – including many individuals saving for the first time in 2020.
- Offered video chat sessions for senior citizens on topics like fraud awareness, online banking, and ways to stay socially connected from home.
- Donated
$600,000 t o school programs, supporting educators whose response during these challenging times was an inspiration. - Paid over
$3 million to bank employees regardless if they could be at work, and offered bonus pay to Park’s frontline employees.
Headquartered in Newark, Ohio, Park National Corporation has
Complete financial tables are listed below.
Category: Earnings
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Park cautions that any forward-looking statements contained in this Current Report on Form 8-K or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.
Risks and uncertainties that could cause actual results to differ materially include, without limitation:
- the ever-changing effects of the novel coronavirus (COVID-19) pandemic - - the duration, extent and severity of which are impossible to predict, including the possibility of further resurgence in the spread of COVID-19 - - on economies (local, national and international) and markets, and on our customers, counterparties, employees and third-party service providers, as well as the effects of various responses of governmental and nongovernmental authorities to the COVID-19 pandemic, including public health actions directed toward the containment of the COVID-19 pandemic (such as quarantines, shut downs and other restrictions on travel and commercial, social or other activities), the development, availability and effectiveness of vaccines, and the implementation of fiscal stimulus packages;
- the impact of future governmental and regulatory actions upon our participation in and execution of government programs related to the COVID-19 pandemic;
- Park's ability to execute our business plan successfully and within the expected timeframe as well as our ability to manage strategic initiatives in light of the impact of the COVID-19 pandemic and the various responses to the COVID-19 pandemic;
- general economic and financial market conditions, specifically in the real estate markets and the credit markets, either nationally or in the states in which Park and our subsidiaries do business, may experience a weaker recovery than anticipated, in addition to the continuing impact of the COVID-19 pandemic on our customers’ operations and financial condition, either of which may result in adverse impacts on the demand for loan, deposit and other financial services, delinquencies, defaults and counterparties' inability to meet credit and other obligations and the possible impairment of collectability of loans;
- factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions;
- the effect of monetary and other fiscal policies (including the impact of money supply and interest rate policies of the Federal Reserve Board) as well as disruption in the liquidity and functioning of U.S. financial markets, as a result of the COVID-19 pandemic and government policies implemented in response thereto, may adversely impact prepayment penalty income, mortgage banking income, income from fiduciary activities, the value of securities, deposits and other financial instruments, in addition to the loan demand and the performance of our loan portfolio, and the interest rate sensitivity of our consolidated balance sheet as well as reduce interest margins;
- changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions (including as a result of the COVID-19 pandemic and reactions thereto), legislative and regulatory initiatives (including those undertaken in response to the COVID-19 pandemic), or other factors may be different than anticipated;
- changes in unemployment levels in the states in which Park and our subsidiaries do business may be different than anticipated due to the continuing impact of the COVID-19 pandemic;
- changes in customers', suppliers', and other counterparties' performance and creditworthiness may be different than anticipated due to the continuing impact of the COVID-19 pandemic;
- the adequacy of our internal controls and risk management program in the event of changes in the market, economic, operational (including those which may result from more of our associates working remotely), asset/liability repricing, legal, compliance, strategic, cybersecurity, liquidity, credit and interest rate risks associated with Park's business;
- competitive pressures among financial services organizations could increase significantly, including product and pricing pressures (which could in turn impact our credit spreads), changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and our ability to attract, develop and retain qualified banking professionals;
- uncertainty regarding the nature, timing, cost and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and our subsidiaries, including major reform of the regulatory oversight structure of the financial services industry and changes in laws and regulations concerning taxes, FDIC insurance premium levels, pensions, bankruptcy, consumer protection, rent regulation and housing, financial accounting and reporting, environmental protection, insurance, bank products and services, bank and bank holding company capital and liquidity standards, fiduciary standards, securities and other aspects of the financial services industry, specifically the reforms provided for in the Coronavirus Aid, Relief and Economic Security (CARES) Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and the Basel III regulatory capital reforms, as well as regulations already adopted and which may be adopted in the future by the relevant regulatory agencies, including the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board, to implement the provisions of the CARES Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the provisions of the Dodd-Frank Act, and the Basel III regulatory capital reforms;
- the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board (the "FASB"), the SEC, the Public Company Accounting Oversight Board and other regulatory agencies, including the extent to which the new current expected credit loss ("CECL") accounting standard issued by the FASB in June 2016 and in accordance with the CARES Act and the follow-up legislation in the Consolidated Appropriations Act, 2021, the adoption of which can be deferred by Park until the earlier of: (1) the first day of the fiscal year that begins after the date on which the national emergency concerning the COVID-19 outbreak terminates; or (2) January 1, 2022, may adversely affect Park's reported financial condition or results of operations;
- Park's assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, when adopted by Park, which may prove unreliable, inaccurate or not predictive of actual results;
- significant changes in the tax laws, which may adversely affect the fair values of net deferred tax assets and obligations of state and political subdivisions held in Park's investment securities portfolio;
- the impact of Park's ability to anticipate and respond to technological changes on Park's ability to respond to customer needs and meet competitive demands;
- operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Park and our subsidiaries are highly dependent;
- the ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks;
- a failure in or breach of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers, resulting in failures or disruptions in customer account management, general ledger, deposit, loan, or other systems, including as a result of cyber attacks;
- the existence or exacerbation of general geopolitical instability and uncertainty as well as the effect of trade policies (including the impact of potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations and changes in the relationship of the U.S. and its global trading partners);
- uncertainty regarding the impact of changes to the U.S. presidential administration and Congress on the regulatory landscape, capital markets, and the response to and management of the COVID-19 pandemic;
- the impact on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government - backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia and the risk they may face difficulties servicing their sovereign debt;
- the uncertainty surrounding the actions to be taken to implement the referendum by United Kingdom voters to exit the European Union;
- our litigation and regulatory compliance exposure, including the costs and effects of any adverse developments in legal proceedings or other claims and the costs and effects of unfavorable resolution of regulatory and other governmental examinations or other inquiries;
- continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends;
- the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties;
- the impact of widespread natural and other disasters, pandemics (including the COVID-19 pandemic), dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities on the economy and financial markets generally and on us or our counterparties specifically;
- any of the foregoing factors, or other cascading effects of the COVID-19 pandemic that are not currently foreseeable, could materially affect our business, including our customers' willingness to conduct banking transactions and their ability to pay on existing obligations;
- the effect of healthcare laws in the U.S. and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase our healthcare and other costs and negatively impact our operations and financial results;
- risk and uncertainties associated with Park's entry into new geographic markets with our recent acquisitions, including expected revenue synergies and cost savings from recent acquisitions not being fully realized or realized within the expected time frame;
- the discontinuation of the London Inter-Bank Offered Rate (LIBOR) and other reference rates which may result in increased expenses and litigation, and adversely impact the effectiveness of hedging strategies;
- and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the SEC including those described in "Item 1A. Risk Factors" of Part I of Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 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, 2020.
Park does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.
| PARK NATIONAL CORPORATION | ||||||||||||||||||
| Financial Highlights | ||||||||||||||||||
| As of or for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019 | ||||||||||||||||||
| 2020 | 2020 | 2019 | Percent change vs. | |||||||||||||||
| (in thousands, except share and per share data) | 4th QTR | 3rd QTR | 4th QTR | 3Q '20 | 4Q '19 | |||||||||||||
| INCOME STATEMENT: | ||||||||||||||||||
| Net interest income | $ | 86,321 | $ | 83,840 | $ | 77,009 | 3.0 | % | 12.1 | % | ||||||||
| (Recovery of) provision for loan losses | (19,159 | ) | 13,836 | (213 | ) | N.M | N.M | |||||||||||
| Other income | 35,656 | 36,558 | 24,224 | (2.5 | ) | % | 47.2 | % | ||||||||||
| Other expense | 85,661 | 69,859 | 71,231 | 22.6 | % | 20.3 | % | |||||||||||
| Income before income taxes | $ | 55,475 | $ | 36,703 | $ | 30,215 | 51.1 | % | 83.6 | % | ||||||||
| Income taxes | 10,275 | 5,857 | 6,279 | 75.4 | % | 63.6 | % | |||||||||||
| Net income | $ | 45,200 | $ | 30,846 | $ | 23,936 | 46.5 | % | 88.8 | % | ||||||||
| MARKET DATA: | ||||||||||||||||||
| Earnings per common share - basic (a) | $ | 2.77 | $ | 1.89 | $ | 1.46 | 46.6 | % | 89.7 | % | ||||||||
| Earnings per common share - diluted (a) | 2.75 | 1.88 | 1.45 | 46.3 | % | 89.7 | % | |||||||||||
| Cash dividends declared per common share | 1.02 | 1.02 | 1.01 | — | % | 1.0 | % | |||||||||||
| Book value per common share at period end | 63.76 | 62.39 | 59.28 | 2.2 | % | 7.6 | % | |||||||||||
| Market price per common share at period end | 105.01 | 81.96 | 102.38 | 28.1 | % | 2.6 | % | |||||||||||
| Market capitalization at period end | 1,713,154 | 1,336,011 | 1,673,549 | 28.2 | % | 2.4 | % | |||||||||||
| Weighted average common shares - basic (b) | 16,310,551 | 16,300,720 | 16,342,485 | 0.1 | % | (0.2 | ) | % | ||||||||||
| Weighted average common shares - diluted (b) | 16,434,812 | 16,393,792 | 16,454,553 | 0.3 | % | (0.1 | ) | % | ||||||||||
| Common shares outstanding at period end | 16,314,197 | 16,300,763 | 16,346,442 | 0.1 | % | (0.2 | ) | % | ||||||||||
| PERFORMANCE RATIOS: (annualized) | ||||||||||||||||||
| Return on average assets (a)(b) | 1.93 | % | 1.28 | % | 1.09 | % | 50.8 | % | 77.1 | % | ||||||||
| Return on average shareholders' equity (a)(b) | 17.37 | % | 12.03 | % | 9.83 | % | 44.4 | % | 76.7 | % | ||||||||
| Yield on loans | 4.69 | % | 4.54 | % | 5.11 | % | 3.3 | % | (8.2 | ) | % | |||||||
| Yield on investment securities | 2.80 | % | 2.35 | % | 2.72 | % | 19.1 | % | 2.9 | % | ||||||||
| Yield on money market instruments | 0.11 | % | 0.11 | % | 1.86 | % | — | % | (94.1 | ) | % | |||||||
| Yield on interest earning assets | 4.33 | % | 4.12 | % | 4.64 | % | 5.1 | % | (6.7 | ) | % | |||||||
| Cost of interest bearing deposits | 0.19 | % | 0.26 | % | 0.95 | % | (26.9 | ) | % | (80.0 | ) | % | ||||||
| Cost of borrowings | 2.01 | % | 1.63 | % | 2.18 | % | 23.3 | % | (7.8 | ) | % | |||||||
| Cost of paying interest bearing liabilities | 0.40 | % | 0.39 | % | 1.04 | % | 2.6 | % | (61.5 | ) | % | |||||||
| Net interest margin (g) | 4.07 | % | 3.85 | % | 3.90 | % | 5.7 | % | 4.4 | % | ||||||||
| Efficiency ratio (g) | 69.82 | % | 57.69 | % | 69.86 | % | 21.0 | % | (0.1 | ) | % | |||||||
| OTHER RATIOS (NON-GAAP): | ||||||||||||||||||
| Tangible book value per share (d) | $ | 53.41 | $ | 52.00 | $ | 48.81 | 2.7 | % | 9.4 | % | ||||||||
| Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section. | ||||||||||||||||||
| PARK NATIONAL CORPORATION | ||||||||||||||||||
| Financial Highlights (continued) | ||||||||||||||||||
| As of or for the three months ended December 31, 2020, September 30, 2020, and December 31, 2019 | ||||||||||||||||||
| Percent change vs. | ||||||||||||||||||
| (in thousands, except ratios) | December 31, 2020 | September 30, 2020 | December 31, 2019 | 3Q '20 | 4Q '19 | |||||||||||||
| BALANCE SHEET: | ||||||||||||||||||
| Investment securities | $ | 1,124,806 | $ | 1,097,598 | $ | 1,279,507 | 2.5 | % | (12.1 | ) | % | |||||||
| Loans | 7,177,785 | 7,278,546 | 6,501,404 | (1.4 | ) | % | 10.4 | % | ||||||||||
| Allowance for loan losses | 85,675 | 87,038 | 56,679 | (1.6 | ) | % | 51.2 | % | ||||||||||
| Goodwill and other intangible assets | 168,855 | 169,380 | 171,118 | (0.3 | ) | % | (1.3 | ) | % | |||||||||
| Other real estate owned (OREO) | 1,431 | 836 | 4,029 | 71.2 | % | (64.5 | ) | % | ||||||||||
| Total assets | 9,279,021 | 9,240,006 | 8,558,377 | 0.4 | % | 8.4 | % | |||||||||||
| Total deposits | 7,572,358 |
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FAQ
What were Park National Corporation's Q4 2020 earnings results?
Park National Corporation reported a net income of $45.2 million for Q4 2020, an increase of 88.8% from Q4 2019.
What was the full-year net income for Park National Corporation in 2020?
The full-year net income for Park National Corporation in 2020 was $127.9 million, a 24.6% increase from 2019.
What dividends did Park National Corporation declare in January 2021?
Park National Corporation declared a quarterly cash dividend of $1.03 per share and a special cash dividend of $0.20 per share.
How did Park National Corporation support the community in 2020?
In 2020, Park National Corporation donated $4 million to local organizations and helped over 8,000 families purchase homes.
What is the stock symbol for Park National Corporation?
The stock symbol for Park National Corporation is PRK.
Park National Corporation
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PRK Stock Data
3.23B
15.74M
2.61%
54.92%
3.59%
Banks - Regional
National Commercial Banks
United States of America
NEWARK
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