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Park National Corporation reports financial results for third quarter and first nine months of 2024

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Park National (PRK) reported strong financial results for Q3 2024, with net income reaching $38.2 million, up 3.5% from Q3 2023. The company's earnings per share increased to $2.35 from $2.28 year-over-year. For the first nine months of 2024, net income grew 10.3% to $112.8 million, with EPS of $6.95. Total loans increased by 3.4% during the first nine months of 2024, while deposits grew 2.1%. The net interest margin improved to 4.45% in Q3 2024, compared to 4.12% in Q3 2023. The board declared a quarterly dividend of $1.06 and a special one-time dividend of $0.50 per share.

Park National (PRK) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un reddito netto che ha raggiunto i 38,2 milioni di dollari, in aumento del 3,5% rispetto al terzo trimestre del 2023. Gli utili per azione dell'azienda sono aumentati a 2,35 dollari rispetto a 2,28 dollari rispetto all'anno precedente. Nei primi nove mesi del 2024, il reddito netto è cresciuto del 10,3% a 112,8 milioni di dollari, con un EPS di 6,95 dollari. I prestiti totali sono aumentati del 3,4% durante i primi nove mesi del 2024, mentre i depositi sono cresciuti del 2,1%. Il margine di interesse netto è migliorato al 4,45% nel terzo trimestre del 2024, rispetto al 4,12% nel terzo trimestre del 2023. Il consiglio ha dichiarato un dividendo trimestrale di 1,06 dollari e un dividendo speciale una tantum di 0,50 dollari per azione.

Park National (PRK) informó resultados financieros sólidos para el tercer trimestre de 2024, con un ingreso neto que alcanzó los 38,2 millones de dólares, un aumento del 3,5% en comparación con el tercer trimestre de 2023. Las ganancias por acción de la compañía aumentaron a 2,35 dólares desde 2,28 dólares interanualmente. Durante los primeros nueve meses de 2024, el ingreso neto creció un 10,3% hasta alcanzar los 112,8 millones de dólares, con un EPS de 6,95 dólares. Los préstamos totales aumentaron un 3,4% durante los primeros nueve meses de 2024, mientras que los depósitos crecieron un 2,1%. El margen de interés neto mejoró al 4,45% en el tercer trimestre de 2024, en comparación con el 4,12% del tercer trimestre de 2023. La junta declaró un dividendo trimestral de 1,06 dólares y un dividendo especial único de 0,50 dólares por acción.

파크 내셔널 (PRK)은 2024년 3분기에 강력한 재무 결과를 보고하며, 순이익은 3,820만 달러에 도달하여 2023년 3분기 대비 3.5% 증가하였습니다. 회사의 주당 순이익은 연간 2.28 달러에서 2.35 달러로 증가했습니다. 2024년 첫 9개월 동안 순이익은 10.3% 증가하여 1억 1,280만 달러에 이르며, 주당 순이익은 6.95 달러입니다. 2024년 첫 9개월 동안 총 대출은 3.4% 증가했으며, 예금은 2.1% 성장했습니다. 2024년 3분기 순이자 margin은 2023년 3분기의 4.12% 대비 4.45%로 개선되었습니다. 이사회는 분기 배당금으로 1.06달러와 특별 일회성 배당금 0.50달러를 선언했습니다.

Park National (PRK) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un revenu net atteignant 38,2 millions de dollars, en hausse de 3,5 % par rapport au troisième trimestre 2023. Le bénéfice par action de l'entreprise a augmenté à 2,35 dollars contre 2,28 dollars d'une année sur l'autre. Pour les neuf premiers mois de 2024, le revenu net a augmenté de 10,3 % pour atteindre 112,8 millions de dollars, avec un BPA de 6,95 dollars. Les prêts totaux ont augmenté de 3,4 % au cours des neuf premiers mois de 2024, tandis que les dépôts ont crû de 2,1 %. La marge d'intérêt nette s'est améliorée à 4,45 % au troisième trimestre de 2024, contre 4,12 % au troisième trimestre de 2023. Le conseil a déclaré un dividende trimestriel de 1,06 dollars et un dividende spécial unique de 0,50 dollars par action.

Park National (PRK) berichtete für das 3. Quartal 2024 von starken finanziellen Ergebnissen, wobei der Nettogewinn 38,2 Millionen Dollar erreichte, was einem Anstieg von 3,5 % im Vergleich zum 3. Quartal 2023 entspricht. Der Gewinn pro Aktie des Unternehmens stieg von 2,28 Dollar auf 2,35 Dollar im Jahresvergleich. Im ersten Drittel des Jahres 2024 wuchs der Nettogewinn um 10,3 % auf 112,8 Millionen Dollar, mit einem EPS von 6,95 Dollar. Die Gesamtdarlehen stiegen in den ersten neun Monaten 2024 um 3,4%, während die Einlagen um 2,1% wuchsen. Die Nettozinsmarge verbesserte sich im 3. Quartal 2024 auf 4,45 % im Vergleich zu 4,12 % im 3. Quartal 2023. Der Vorstand erklärte eine vierteljährliche Dividende von 1,06 Dollar sowie eine einmalige Sonderdividende von 0,50 Dollar pro Aktie.

Positive
  • Net income increased 3.5% YoY to $38.2M in Q3 2024
  • EPS grew to $2.35 from $2.28 YoY in Q3
  • Nine-month net income up 10.3% to $112.8M
  • Loan portfolio grew 3.4% in first nine months
  • Net interest margin improved to 4.45% from 4.12% YoY
  • Special dividend of $0.50 per share declared
Negative
  • Deposits decreased 0.4% over 12-month period

Insights

The Q3 2024 results demonstrate robust financial performance with several positive indicators. Net income reached $38.2 million, up 3.5% year-over-year, while the nine-month performance showed an impressive 10.3% increase to $112.8 million. The bank's loan portfolio grew by 3.4% in the first nine months, with deposits increasing by 2.1%.

Particularly noteworthy is the improvement in net interest margin to 4.45%, up from 4.12% year-over-year, indicating effective management of funding costs amid rising rates. The declaration of both a regular dividend of $1.06 and a special dividend of $0.50 per share reflects strong capital position and commitment to shareholder returns. Total assets of $9.9 billion and consistent loan growth suggest sustainable business momentum.

NEWARK, Ohio, Oct. 28, 2024 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the third quarter and first nine months of 2024. Park's board of directors declared a quarterly cash dividend of $1.06 per common share and a special one-time dividend of $0.50 per common share, both payable on December 10, 2024, to common shareholders of record as of November 15, 2024.

“Our bankers remain unwavering in their desire to serve more and find creative ways to meet the needs of our customers,” said Park Chairman and Chief Executive Officer David Trautman. “Our bankers are diligent, compassionate and resilient. We saw it firsthand this month as Park bankers and customers in the Carolinas and Florida weathered hurricanes Helene and Milton and overcame extreme challenges and devastation. I couldn’t be prouder of our team and how they stepped up to take care of each other and their communities.”

Park’s net income for the third quarter of 2024 was $38.2 million, a 3.5 percent increase from $36.9 million for the third quarter of 2023. Third quarter 2024 net income per diluted common share was $2.35, compared to $2.28 for the third quarter of 2023. Park's net income for the first nine months of 2024 was $112.8 million, a 10.3 percent increase from $102.2 million for the first nine months of 2023. Net income per diluted common share for the first nine months of 2024 was $6.95 compared to $6.29 for the first nine months of 2023.

Park’s total loans increased 3.4 percent (4.6 percent annualized) during the first nine months of 2024 and increased 5.2 percent for the 12-month period ended September 30, 2024.

Park's total deposits increased 2.1 percent (2.9 percent annualized) during the first nine months of 2024 and decreased 0.4 percent for the 12-month period ended September 30, 2024. The combination of solid loan growth and steady deposits resulted in a net interest margin of 4.45 percent for the three months ended September 30, 2024, compared to 4.39 percent for the three months ended June 30, 2024, and 4.12 percent for the three months ended September 30, 2023. For the first nine months of 2024, the net interest margin was 4.37 percent compared to 4.09 percent for the first nine months of 2023.

“We have enjoyed consistent loan growth in 2024, coupled with disciplined control of funding costs and exceptional customer service, resulting in near-record earnings,” said Park President Matthew Miller. “Our performance is driven by our bankers’ commitment to produce exceptional results for our customers, communities and shareholders.”

Headquartered in Newark, Ohio, Park National Corporation has $9.9 billion in total assets (as of September 30, 2024). Park's banking operations are conducted through its subsidiary The Park National Bank. Other Park subsidiaries are Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC.

Complete financial tables are listed below.

Category: Earnings

Media contact: Michelle Hamilton, 740-349-6014, media@parknationalbank.com

Investor contact: Brady Burt, 740-322-6844, investor@parknationalbank.com

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Park cautions that any forward-looking statements contained in this news release or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties, including those described in Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by our filings with the SEC. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.

Risks and uncertainties that could cause actual results to differ materially include, without limitation: (1) Park's ability to execute our business plan successfully and within the expected timeframe; (2) adverse changes in future economic and financial market conditions; (3) adverse changes in real estate values and liquidity in our primary market areas; (4) the financial health of our commercial borrowers; (5) adverse changes in federal, state and local governmental law and policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation, government shutdown, infrastructure spending and social programs; (6) changes in consumer spending, borrowing and saving habits; (7) our litigation and regulatory compliance exposure; (8) increased credit risk and higher credit losses resulting from loan concentrations; (9) competitive pressures among financial services organizations; (10) changes in accounting policies and practices as may be adopted by regulatory agencies; (11) Park's assumptions and estimates used in applying critical accounting policies and modeling which may prove unreliable, inaccurate or not predictive of actual results; (12) Park's ability to anticipate and respond to technological changes and Park's reliance on, and the potential failure of, a number of third-party vendors to perform as expected; (13) failures in or breaches of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers; (14) negative impacts 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; (15) effects of a fall in stock market prices on Park's asset and wealth management businesses; (16) continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; (17) the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties; (18) the impact of widespread natural and other disasters, pandemics, 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; (19) the potential further deterioration of the U.S. economy due to financial, political, or other shocks; (20) the effect of healthcare laws in the U.S. and potential changes for such laws that may increase our healthcare and other costs and negatively impact our operations and financial results; (21) the impact of larger or similar-sized financial institutions encountering problems that may adversely affect the banking industry; and (22) other risk factors relating to the financial services industry.

Park does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.

 
 
PARK NATIONAL CORPORATION
Financial Highlights
As of or for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023     
       
  2024  2024  2023  Percent change vs.
(in thousands, except common share and per common share data and ratios)3rd QTR2nd QTR3rd QTR 2Q '243Q '23
INCOME STATEMENT:      
Net interest income$101,114 $97,837 $94,269  3.3%7.3%
Provision for (recovery of) credit losses 5,315  3,113  (1,580) 70.7%N.M.
Other income 36,530  28,794  27,713  26.9%31.8%
Other expense 85,681  75,189  77,808  14.0%10.1%
Income before income taxes$46,648 $48,329 $45,754  (3.5)%2.0%
Income taxes 8,431  8,960  8,837  (5.9)%(4.6)%
Net income$38,217 $39,369 $36,917  (2.9)%3.5%
       
MARKET DATA:      
Earnings per common share - basic (a)$2.37 $2.44 $2.29  (2.9)%3.5%
Earnings per common share - diluted (a) 2.35  2.42  2.28  (2.9)%3.1%
Quarterly cash dividend declared per common share 1.06  1.06  1.05  %1.0%
Book value per common share at period end 76.74  73.27  67.41  4.7%13.8%
Market price per common share at period end 167.98  142.34  94.52  18.0%77.7%
Market capitalization at period end 2,713,152  2,298,723  1,522,096  18.0%78.3%
       
Weighted average common shares - basic (b) 16,151,640  16,149,523  16,133,310  %0.1%
Weighted average common shares - diluted (b) 16,264,393  16,239,617  16,217,880  0.2%0.3%
Common shares outstanding at period end 16,151,640  16,149,523  16,103,425  %0.3%
       
PERFORMANCE RATIOS: (annualized)      
Return on average assets (a)(b) 1.53% 1.61% 1.47% (5.0)%4.1%
Return on average shareholders' equity (a)(b) 12.56% 13.52% 13.28% (7.1)%(5.4)%
Yield on loans 6.24% 6.13% 5.65% 1.8%10.4%
Yield on investment securities 3.74% 3.83% 3.73% (2.3)%0.3%
Yield on money market instruments 5.38% 5.33% 5.34% 0.9%0.7%
Yield on interest earning assets 5.88% 5.78% 5.27% 1.7%11.6%
Cost of interest bearing deposits 2.06% 1.99% 1.63% 3.5%26.4%
Cost of borrowings 3.97% 4.08% 3.92% (2.7)%1.3%
Cost of paying interest bearing liabilities 2.15% 2.10% 1.76% 2.4%22.2%
Net interest margin (g) 4.45% 4.39% 4.12% 1.4%8.0%
Efficiency ratio (g) 61.98% 59.09% 63.25% 4.9%(2.0)%
       
OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:      
Tangible book value per common share (d)$66.62 $63.14 $57.19  5.5%16.5%
Average interest earning assets 9,100,594  9,016,905  9,178,281  0.9%(0.8)%
Pre-tax, pre-provision net income (j) 51,963  51,442  44,174  1.0%17.6%
       
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 September 30, 2024, June 30, 2024 and September 30, 2023     
       
     Percent change vs.
(in thousands, except ratios)September 30, 2024June 30, 2024September 30, 2023 2Q '243Q '23
BALANCE SHEET:      
Investment securities$1,233,297 $1,264,858 $1,708,827  (2.5)%(27.8)%
Loans 7,730,984  7,664,377  7,349,745  0.9%5.2%
Allowance for credit losses 87,237  86,575  84,602  0.8%3.1%
Goodwill and other intangible assets 163,320  163,607  164,581  (0.2)%(0.8)%
Other real estate owned (OREO) 1,119  1,210  1,354  (7.5)%(17.4)%
Total assets 9,903,049  9,919,783  10,000,914  (0.2)%(1.0)%
Total deposits 8,214,671  8,312,505  8,244,724  (1.2)%(0.4)%
Borrowings 306,964  283,874  541,811  8.1%(43.3)%
Total shareholders' equity 1,239,413  1,183,257  1,085,564  4.7%14.2%
Tangible equity (d) 1,076,093  1,019,650  920,983  5.5%16.8%
Total nonperforming loans 71,541  72,745  55,635  (1.7)%28.6%
Total nonperforming assets 72,660  73,955  56,989  (1.8)%27.5%
       
ASSET QUALITY RATIOS:      
Loans as a % of period end total assets 78.07% 77.26% 73.49% 1.0%6.2%
Total nonperforming loans as a % of period end loans 0.93% 0.95% 0.76% (2.1)%22.4%
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets 0.94% 0.96% 0.78% (2.1)%20.5%
Allowance for credit losses as a % of period end loans 1.13% 1.13% 1.15% %(1.7)%
Net loan charge-offs$4,653 $1,622 $1,024  186.9%354.4%
Annualized net loan charge-offs as a % of average loans (b) 0.24% 0.09% 0.06% 166.7%300.0%
       
CAPITAL & LIQUIDITY:      
Total shareholders' equity / Period end total assets 12.52% 11.93% 10.85% 4.9%15.4%
Tangible equity (d) / Tangible assets (f) 11.05% 10.45% 9.36% 5.7%18.1%
Average shareholders' equity / Average assets (b) 12.20% 11.94% 11.07% 2.2%10.2%
Average shareholders' equity / Average loans (b) 15.76% 15.44% 15.17% 2.1%3.9%
Average loans / Average deposits (b) 92.69% 92.53% 86.69% 0.2%6.9%
       
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
Nine months ended September 30, 2024 and September 30, 2023   
     
  2024  2023   
(in thousands, except common share and per common share data and ratios)Nine months ended
September 30
Nine months ended
September 30
 Percent change vs '23
INCOME STATEMENT:    
Net interest income$294,574 $278,039  5.9%
Provision for credit losses 10,608  1,095  N.M.
Other income 91,524  77,115  18.7%
Other expense 238,098  230,196  3.4%
Income before income taxes$137,392 $123,863  10.9%
Income taxes 24,602  21,629  13.7%
Net income$112,790 $102,234  10.3%
     
MARKET DATA:    
Earnings per common share - basic (a)$6.99 $6.32  10.6%
Earnings per common share - diluted (a) 6.95  6.29  10.5%
Quarterly cash dividend declared per common share 3.18  3.15  1.0%
     
Weighted average common shares - basic (b) 16,139,335  16,180,261  (0.3)%
Weighted average common shares - diluted (b) 16,231,766  16,261,109  (0.2)%
     
PERFORMANCE RATIOS: (annualized)    
Return on average assets (a)(b) 1.53% 1.37% 11.7%
Return on average shareholders' equity (a)(b) 12.77% 12.48% 2.3%
Yield on loans 6.12% 5.44% 12.5%
Yield on investment securities 3.83% 3.69% 3.8%
Yield on money market instruments 5.41% 4.94% 9.5%
Yield on interest earning assets 5.77% 5.08% 13.6%
Cost of interest bearing deposits 2.00% 1.42% 40.8%
Cost of borrowings 4.11% 3.56% 15.4%
Cost of paying interest bearing liabilities 2.11% 1.55% 36.1%
Net interest margin (g) 4.37% 4.09% 6.8%
Efficiency ratio (g) 61.38% 64.29% (4.5)%
     
ASSET QUALITY RATIOS:    
Net loan charge-offs$7,116 $2,255  215.6%
Net loan charge-offs as a % of average loans (b) 0.13% 0.04% 225.0%
     
CAPITAL & LIQUIDITY    
Average shareholders' equity / Average Assets (b) 11.96% 10.97% 9.0%
Average shareholders' equity / Average loans (b) 15.56% 15.28% 1.8%
Average loans / Average deposits (b) 92.11% 85.37% 7.9%
     
OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:    
Average interest earning assets 9,055,400  9,189,014  (1.5)%
Pre-tax, pre-provision net income (j) 148,000  124,958  18.4%
     
Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.


 
PARK NATIONAL CORPORATION
Consolidated Statements of Income
         
  Three Months Ended Nine Month Ended
  September 30 September 30
(in thousands, except share and per share data)  2024  2023   2024  2023
         
Interest income:        
Interest and fees on loans $120,203 $103,258  $346,732 $291,300
Interest on debt securities:        
Taxable  10,228  13,321   33,077  39,731
Tax-exempt  1,381  2,900   4,173  8,718
Other interest income  1,996  1,410   5,370  6,715
Total interest income  133,808  120,889   389,352  346,464
         
Interest expense:        
Interest on deposits:        
Demand and savings deposits  22,762  20,029   62,987  52,309
Time deposits  7,073  3,097   21,936  6,410
Interest on borrowings  2,859  3,494   9,855  9,706
Total interest expense  32,694  26,620   94,778  68,425
         
Net interest income  101,114  94,269   294,574  278,039
         
Provision for (recovery of) credit losses  5,315  (1,580)  10,608  1,095
         
Net interest income after provision for (recovery of) credit losses  95,799  95,849   283,966  276,944
         
Other income  36,530  27,713   91,524  77,115
         
Other expense  85,681  77,808   238,098  230,196
         
Income before income taxes  46,648  45,754   137,392  123,863
         
Income taxes  8,431  8,837   24,602  21,629
         
Net income $38,217 $36,917  $112,790 $102,234
         
Per common share:        
Net income - basic $2.37 $2.29  $6.99 $6.32
Net income - diluted $2.35 $2.28  $6.95 $6.29
         
Weighted average common shares - basic  16,151,640  16,133,310   16,139,335  16,180,261
Weighted average common shares - diluted  16,264,393  16,217,880   16,231,766  16,261,109
         
Cash dividends declared:        
Quarterly dividend $1.06 $1.05  $3.18 $3.15
         


PARK NATIONAL CORPORATION 
Consolidated Balance Sheets
   
(in thousands, except share data)September 30, 2024 December 31, 2023 
   
Assets  
   
Cash and due from banks$147,338  $160,477 
Money market instruments 54,345   57,791 
Investment securities 1,233,297   1,429,144 
Loans 7,730,984   7,476,221 
Allowance for credit losses (87,237)  (83,745)
Loans, net 7,643,747   7,392,476 
Bank premises and equipment, net 70,939   74,211 
Goodwill and other intangible assets 163,320   164,247 
Other real estate owned 1,119   983 
Other assets 588,944   557,124 
Total assets$9,903,049  $9,836,453 
   
Liabilities and Shareholders' Equity  
   
Deposits:  
Noninterest bearing$2,516,722  $2,628,234 
Interest bearing 5,697,949   5,414,332 
Total deposits 8,214,671   8,042,566 
Borrowings 306,964   517,329 
Other liabilities 142,001   131,265 
Total liabilities$8,663,636  $8,691,160 
   
   
Shareholders' Equity:  
Preferred shares (200,000 shares authorized; no shares outstanding at September 30, 2024 and December 31, 2023)$  $ 
Common shares (No par value; 20,000,000 shares authorized; 17,623,104 shares issued at September 30, 2024 and December 31, 2023) 462,129   463,280 
Accumulated other comprehensive loss, net of taxes (34,684)  (66,191)
Retained earnings 964,008   903,877 
Treasury shares (1,471,464 shares at September 30, 2024 and 1,506,625 shares at December 31, 2023) (152,040)  (155,673)
Total shareholders' equity$1,239,413  $1,145,293 
Total liabilities and shareholders' equity$9,903,049  $9,836,453 


PARK NATIONAL CORPORATION 
Consolidated Average Balance Sheets
      
 Three Months Ended Nine Months Ended
 September 30, September 30,
(in thousands) 2024  2023   2024  2023 
      
Assets     
      
Cash and due from banks$124,825 $146,162  $131,125 $151,735 
Money market instruments 147,708  104,754   132,681  181,793 
Investment securities 1,242,969  1,737,292   1,298,657  1,773,695 
Loans 7,680,657  7,267,476   7,583,833  7,166,863 
Allowance for credit losses (86,623) (88,522)  (85,367) (87,511)
Loans, net 7,594,034  7,178,954   7,498,466  7,079,352 
Bank premises and equipment, net 71,913  78,483   73,386  80,361 
Goodwill and other intangible assets 163,509  164,801   163,820  165,127 
Other real estate owned 1,214  1,870   1,230  1,759 
Other assets 574,461  552,798   565,950  546,434 
Total assets$9,920,633 $9,965,114  $9,865,315 $9,980,256 
      
      
Liabilities and Shareholders' Equity     
      
Deposits:     
Noninterest bearing$2,521,083 $2,748,259  $2,554,232 $2,854,736 
Interest bearing 5,765,082  5,634,621   5,678,898  5,540,680 
Total deposits 8,286,165  8,382,880   8,233,130  8,395,416 
Borrowings 286,763  353,203   320,353  364,384 
Other liabilities 137,140  126,354   131,689  125,532 
Total liabilities$8,710,068 $8,862,437  $8,685,172 $8,885,332 
      
Shareholders' Equity:     
Preferred shares$ $  $ $ 
Common shares 460,524  460,592   461,193  460,672 
Accumulated other comprehensive loss, net of taxes (60,415) (97,029)  (67,130) (94,762)
Retained earnings 962,496  893,124   939,387  877,506 
Treasury shares (152,040) (154,010)  (153,307) (148,492)
Total shareholders' equity$1,210,565 $1,102,677  $1,180,143 $1,094,924 
Total liabilities and shareholders' equity$9,920,633 $9,965,114  $9,865,315 $9,980,256 
      


PARK NATIONAL CORPORATION 
Consolidated Statements of Income - Linked Quarters
      
  2024 2024 2024 2023 2023 
(in thousands, except per share data)3rd QTR2nd QTR1st QTR4th QTR3rd QTR
      
Interest income:     
Interest and fees on loans$120,203$115,318$111,211$108,495$103,258 
Interest on debt securities:     
Taxable 10,228 10,950 11,899 13,055 13,321 
Tax-exempt 1,381 1,382 1,410 2,248 2,900 
Other interest income 1,996 1,254 2,120 1,408 1,410 
Total interest income 133,808 128,904 126,640 125,206 120,889 
      
Interest expense:     
Interest on deposits:     
Demand and savings deposits 22,762 20,370 19,855 19,467 20,029 
Time deposits 7,073 7,525 7,338 6,267 3,097 
Interest on borrowings 2,859 3,172 3,824 4,398 3,494 
Total interest expense 32,694 31,067 31,017 30,132 26,620 
      
Net interest income 101,114 97,837 95,623 95,074 94,269 
      
Provision for (recovery of) credit losses 5,315 3,113 2,180 1,809 (1,580)
      
Net interest income after provision for (recovery of ) credit losses 95,799 94,724 93,443 93,265 95,849 
      
Other income 36,530 28,794 26,200 15,519 27,713 
      
Other expense 85,681 75,189 77,228 79,043 77,808 
      
Income before income taxes 46,648 48,329 42,415 29,741 45,754 
      
Income taxes 8,431 8,960 7,211 5,241 8,837 
      
Net income $38,217$39,369$35,204$24,500$36,917 
      
Per common share:     
Net income - basic$2.37$2.44$2.18$1.52$2.29 
Net income - diluted$2.35$2.42$2.17$1.51$2.28 


 
PARK NATIONAL CORPORATION 
Detail of other income and other expense - Linked Quarters
      
  2024 2024 2024  2023  2023
(in thousands)3rd QTR2nd QTR1st QTR4th QTR3rd QTR
      
Other income:     
Income from fiduciary activities$10,615$10,728$10,024 $8,943 $9,100
Service charges on deposit accounts 2,362 2,214 2,106  2,054  2,109
Other service income 3,036 2,906 2,524  2,349  2,615
Debit card fee income 6,539 6,580 6,243  6,583  6,652
Bank owned life insurance income 2,057 1,565 2,629  1,373  1,448
ATM fees 471 458 496  517  575
Pension settlement gain 5,783      
Loss on sale of debt securities, net   (398) (7,875) 
Gain (loss) on equity securities, net 1,557 358 (687) 353  998
Other components of net periodic benefit income 2,204 2,204 2,204  1,893  1,893
Miscellaneous 1,906 1,781 1,059  (671) 2,323
Total other income$36,530$28,794$26,200 $15,519 $27,713
      
Other expense:     
Salaries$38,370$35,954$35,733 $36,192 $34,525
Employee benefits 10,162 9,873 11,560  10,088  10,822
Occupancy expense 3,731 2,975 3,181  3,344  3,203
Furniture and equipment expense 2,571 2,454 2,583  2,824  3,060
Data processing fees 11,764 9,542 8,808  9,605  9,700
Professional fees and services 7,842 6,022 6,817  7,015  7,572
Marketing 1,464 1,164 1,741  1,716  1,197
Insurance 1,640 1,777 1,718  1,708  2,158
Communication 955 1,002 1,036  993  1,135
State tax expense 1,116 1,129 1,110  1,158  1,125
Amortization of intangible assets 287 320 320  334  334
Foundation contributions 2,000    1,000  
Miscellaneous 3,779 2,977 2,621  3,066  2,977
Total other expense$85,681$75,189$77,228 $79,043 $77,808
      


PARK NATIONAL CORPORATION 
Asset Quality Information
         
    Year ended December 31,
(in thousands, except ratios)September 30, 2024June 30, 2024March 31, 2024 2023  2022  2021  2020  2019 
         
Allowance for credit losses:        
Allowance for credit losses, beginning of period$86,575 $85,084 $83,745 $85,379 $83,197 $85,675 $56,679 $51,512 
Cumulative change in accounting principle; adoption of ASU 2022-02 in 2023 and ASU 2016-13 in 2021       383    6,090     
Charge-offs 6,554  3,097  3,240  10,863  9,133  5,093  10,304  11,177 
Recoveries 1,901  1,475  2,399  5,942  6,758  8,441  27,246  10,173 
Net charge-offs (recoveries) 4,653  1,622  841  4,921  2,375  (3,348) (16,942) 1,004 
Provision for (recovery of) credit losses 5,315  3,113  2,180  2,904  4,557  (11,916) 12,054  6,171 
Allowance for credit losses, end of period$87,237 $86,575 $85,084 $83,745 $85,379 $83,197 $85,675 $56,679 
         
General reserve trends:        
Allowance for credit losses, end of period$87,237 $86,575 $85,084 $83,745 $85,379 $83,197 $85,675 $56,679 
Allowance on accruing purchased credit deteriorated ("PCD") loans (purchased credit impaired ("PCI") loans for years 2020 and prior)             167  268 
Allowance on purchased loans excluded from collectively evaluated loans (for years 2020 and prior) N.A.  N.A.  N.A.  N.A.  N.A.  N.A.  678   
Specific reserves on individually evaluated loans 2,489  5,311  5,032  4,983  3,566  1,616  5,434  5,230 
General reserves on collectively evaluated loans$84,748 $81,264 $80,052 $78,762 $81,813 $81,581 $79,396 $51,181 
         
Total loans$7,730,984 $7,664,377 $7,525,005 $7,476,221 $7,141,891 $6,871,122 $7,177,785 $6,501,404 
Accruing PCD loans (PCI loans for years 2020 and prior) 2,191  2,420  2,454  2,835  4,653  7,149  11,153  14,331 
Purchased loans excluded from collectively evaluated loans (for years 2020 and prior) N.A.  N.A.  N.A.  N.A.  N.A.  N.A.  360,056  548,436 
Individually evaluated loans (k) 53,573  54,993  54,742  45,215  78,341  74,502  108,407  77,459 
Collectively evaluated loans$7,675,220 $7,606,964 $7,467,809 $7,428,171 $7,058,897 $6,789,471 $6,698,169 $5,861,178 
         
Asset Quality Ratios:        
Net charge-offs (recoveries) as a % of average loans 0.24% 0.09% 0.05% 0.07% 0.03%(0.05)%(0.24)% 0.02%
Allowance for credit losses as a % of period end loans 1.13% 1.13% 1.13% 1.12% 1.20% 1.21% 1.19% 0.87%
General reserve as a % of collectively evaluated loans 1.10% 1.07% 1.07% 1.06% 1.16% 1.20% 1.19% 0.87%
         
Nonperforming assets:        
Nonaccrual loans$67,991 $71,368 $70,189 $60,259 $79,696 $72,722 $117,368 $90,080 
Accruing troubled debt restructurings (for years 2022 and prior) (k) N.A.  N.A.  N.A.  N.A.  20,134  28,323  20,788  21,215 
Loans past due 90 days or more 3,550  1,377  1,570  859  1,281  1,607  1,458  2,658 
Total nonperforming loans$71,541 $72,745 $71,759 $61,118 $101,111 $102,652 $139,614 $113,953 
Other real estate owned 1,119  1,210  1,674  983  1,354  775  1,431  4,029 
Other nonperforming assets           2,750  3,164  3,599 
Total nonperforming assets$72,660 $73,955 $73,433 $62,101 $102,465 $106,177 $144,209 $121,581 
Percentage of nonaccrual loans to period end loans 0.88% 0.93% 0.93% 0.81% 1.12% 1.06% 1.64% 1.39%
Percentage of nonperforming loans to period end loans 0.93% 0.95% 0.95% 0.82% 1.42% 1.49% 1.95% 1.75%
Percentage of nonperforming assets to period end loans 0.94% 0.96% 0.98% 0.83% 1.43% 1.55% 2.01% 1.87%
Percentage of nonperforming assets to period end total assets 0.73% 0.75% 0.74% 0.63% 1.04% 1.11% 1.55% 1.42%
         
Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.
         


PARK NATIONAL CORPORATION 
Asset Quality Information (continued)
         
    Year ended December 31,
(in thousands, except ratios)September 30, 2024June 30, 2024March 31, 2024 2023 2022 2021 2020 2019
         
New nonaccrual loan information:        
Nonaccrual loans, beginning of period$71,368$70,189$60,259$79,696$72,722$117,368$90,080$67,954
New nonaccrual loans 14,171 13,180 19,012 48,280 64,918 38,478 103,386 81,009
Resolved nonaccrual loans 17,548 12,001 9,082 67,717 57,944 83,124 76,098 58,883
Nonaccrual loans, end of period$67,991$71,368$70,189$60,259$79,696$72,722$117,368$90,080
         
Individually evaluated commercial loan portfolio information (period end): (k)
Unpaid principal balance$58,643$57,184$57,053$47,564$80,116$75,126$109,062$78,178
Prior charge-offs 5,070 2,191 2,311 2,349 1,775 624 655 719
Remaining principal balance 53,573 54,993 54,742 45,215 78,341 74,502 108,407 77,459
Specific reserves 2,489 5,311 5,032 4,983 3,566 1,616 5,434 5,230
Book value, after specific reserves$51,084$49,682$49,710$40,232$74,775$72,886$102,973$72,229
         
Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.


    
PARK NATIONAL CORPORATION   
Financial Reconciliations      
NON-GAAP RECONCILIATIONS      
 THREE MONTHS ENDED NINE MONTHS ENDED
(in thousands, except share and per share data)September 30, 2024June 30, 2024September 30, 2023 September 30, 2024September 30, 2023
Net interest income$101,114 $97,837 $94,269  $294,574 $278,039 
less purchase accounting accretion related to NewDominion and Carolina Alliance acquisitions 281  271  145   904  509 
less interest income on former Vision Bank relationships 9  5  9   16  596 
Net interest income - adjusted$100,824 $97,561 $94,115  $293,654 $276,934 
       
Provision for (recovery of) credit losses$5,315 $3,113 $(1,580) $10,608 $1,095 
less recoveries on former Vision Bank relationships (234) (117) (40)  (1,304) (788)
Provision for (recovery of) credit losses - adjusted$5,549 $3,230 $(1,540) $11,912 $1,883 
       
Other income$36,530 $28,794 $27,713  $91,524 $77,115 
less loss on sale of debt securities, net        (398)  
less pension settlement gain 5,783       5,783   
less impact of strategic initiatives   813     658   
less Vision related gain on the sale of OREO, net 1  (7)    115   
less other service income related to former Vision Bank relationships   6     13  135 
Other income - adjusted$30,746 $27,982 $27,713  $85,353 $76,980 
       
Other expense$85,681 $75,189 $77,808  $238,098 $230,196 
less core deposit intangible amortization related to NewDominion and Carolina Alliance acquisitions 287  320  334   927  989 
less Foundation contribution 2,000       2,000   
less one-time incentive 1,700       1,700   
less building demolition costs 349       414   
less direct expenses related to collection of payments on former Vision Bank loan relationships          100 
Other expense - adjusted$81,345 $74,869 $77,474  $233,057 $229,107 
       
Tax effect of adjustments to net income identified above (i)$(414)$(186)$29  $(704)$(197)
       
Net income - reported$38,217 $39,369 $36,917  $112,790 $102,234 
Net income - adjusted (h)$36,659 $38,670 $37,028  $110,140 $101,492 
       
Diluted earnings per common share$2.35 $2.42 $2.28  $6.95 $6.29 
Diluted earnings per common share, adjusted (h)$2.25 $2.38 $2.28  $6.79 $6.24 
       
Annualized return on average assets (a)(b) 1.53% 1.61% 1.47%  1.53% 1.37%
Annualized return on average assets, adjusted (a)(b)(h) 1.47% 1.59% 1.47%  1.49% 1.36%
       
Annualized return on average tangible assets (a)(b)(e) 1.56% 1.64% 1.49%  1.55% 1.39%
Annualized return on average tangible assets, adjusted (a)(b)(e)(h) 1.49% 1.61% 1.50%  1.52% 1.38%
       
Annualized return on average shareholders' equity (a)(b) 12.56% 13.52% 13.28%  12.77% 12.48%
Annualized return on average shareholders' equity, adjusted (a)(b)(h) 12.05% 13.28% 13.32%  12.47% 12.39%
       
Annualized return on average tangible equity (a)(b)(c) 14.52% 15.72% 15.62%  14.82% 14.70%
Annualized return on average tangible equity, adjusted (a)(b)(c)(h) 13.93% 15.44% 15.66%  14.48% 14.59%
       
Efficiency ratio (g) 61.98% 59.09% 63.25%  61.38% 64.29%
Efficiency ratio, adjusted (g)(h) 61.55% 59.35% 63.05%  61.20% 64.21%
       
Annualized net interest margin (g) 4.45% 4.39% 4.12%  4.37% 4.09%
Annualized net interest margin, adjusted (g)(h) 4.43% 4.38% 4.11%  4.36% 4.07%
Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.  


    
PARK NATIONAL CORPORATION   
Financial Reconciliations (continued)      
       
(a) Reported measure uses net income.
(b) Averages are for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, and the nine months ended September 30, 2024 and September 30, 2023, as appropriate.
(c) Net income for each period divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period.
       
RECONCILIATION OF AVERAGE SHAREHOLDERS' EQUITY TO AVERAGE TANGIBLE EQUITY:   
 THREE MONTHS ENDED NINE MONTHS ENDED
 September 30, 2024June 30, 2024September 30, 2023 September 30, 2024September 30, 2023
AVERAGE SHAREHOLDERS' EQUITY$1,210,565$1,171,347$1,102,677 $1,180,143$1,094,924
Less: Average goodwill and other intangible assets 163,509 163,816 164,801  163,820 165,127
AVERAGE TANGIBLE EQUITY$1,047,056$1,007,531$937,876 $1,016,323$929,797
       
(d) Tangible equity divided by common shares outstanding at period end. Tangible equity equals total shareholders' equity less goodwill and other intangible assets, in each case at the end of the period.
       
RECONCILIATION OF TOTAL SHAREHOLDERS' EQUITY TO TANGIBLE EQUITY:
 September 30, 2024June 30, 2024September 30, 2023   
TOTAL SHAREHOLDERS' EQUITY$1,239,413$1,183,257$1,085,564   
Less: Goodwill and other intangible assets 163,320 163,607 164,581   
TANGIBLE EQUITY$1,076,093$1,019,650$920,983   
       
(e) Net income for each period divided by average tangible assets during the period. Average tangible assets equal average assets less average goodwill and other intangible assets, in each case during the applicable period.
       
RECONCILIATION OF AVERAGE ASSETS TO AVERAGE TANGIBLE ASSETS   
 THREE MONTHS ENDED NINE MONTHS ENDED
 September 30, 2024June 30, 2024September 30, 2023 September 30, 2024September 30, 2023
AVERAGE ASSETS$9,920,633$9,811,326$9,965,114 $9,865,315$9,980,256
Less: Average goodwill and other intangible assets 163,509 163,816 164,801  163,820 165,127
AVERAGE TANGIBLE ASSETS$9,757,124$9,647,510$9,800,313 $9,701,495$9,815,129
       
(f) Tangible equity divided by tangible assets. Tangible assets equal total assets less goodwill and other intangible assets, in each case at the end of the period.
       
RECONCILIATION OF TOTAL ASSETS TO TANGIBLE ASSETS:
 September 30, 2024June 30, 2024September 30, 2023   
TOTAL ASSETS$9,903,049$9,919,783$10,000,914   
Less: Goodwill and other intangible assets 163,320 163,607 164,581   
TANGIBLE ASSETS$9,739,729$9,756,176$9,836,333   
       
(g) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income reconciliation is shown assuming a 21% corporate federal income tax rate. Additionally, net interest margin is calculated on a fully taxable equivalent basis by dividing fully taxable equivalent net interest income by average interest earning assets, in each case during the applicable period.
       
RECONCILIATION OF FULLY TAXABLE EQUIVALENT NET INTEREST INCOME TO NET INTEREST INCOME
 THREE MONTHS ENDED NINE MONTHS ENDED
 September 30, 2024June 30, 2024September 30, 2023 September 30, 2024September 30, 2023
Interest income$133,808$128,904$120,889 $389,352$346,464
Fully taxable equivalent adjustment 594 605 1,042  1,815 2,888
Fully taxable equivalent interest income$134,402$129,509$121,931 $391,167$349,352
Interest expense 32,694 31,067 26,620  94,778 68,425
Fully taxable equivalent net interest income$101,708$98,442$95,311 $296,389$280,927
       
(h) Adjustments to net income for each period presented are detailed in the non-GAAP reconciliations of net interest income, provision for credit losses, other income, other expense and tax effect of adjustments to net income.
(i) The tax effect of adjustments to net income was calculated assuming a 21% corporate federal income tax rate.
(j) Pre-tax, pre-provision ("PTPP") net income is calculated as net income, plus income taxes, plus the provision for credit losses, in each case during the applicable period. PTPP net income is a common industry metric utilized in capital analysis and review. PTPP is used to assess the operating performance of Park while excluding the impact of the provision for credit losses.
       


RECONCILIATION OF PRE-TAX, PRE-PROVISION NET INCOME
 THREE MONTHS ENDED NINE MONTHS ENDED
 September 30, 2024June 30, 2024September 30, 2023 September 30, 2024September 30, 2023
Net income$38,217$39,369$36,917  $112,790$102,234
Plus: Income taxes 8,431 8,960 8,837   24,602 21,629
Plus: Provision for (recovery of) credit losses 5,315 3,113 (1,580)  10,608 1,095
Pre-tax, pre-provision net income$51,963$51,442$44,174  $148,000$124,958
       
(k) Effective January 1, 2023, Park adopted Accounting Standards Update ("ASU") 2022-02. Among other things, this ASU eliminated the concept of troubled debt restructurings ("TDRs"). As a result of the adoption of this ASU and elimination of the concept of TDRs, total nonperforming loans ("NPLs") and total nonperforming assets ("NPAs") each decreased by $20.1 million effective January 1, 2023. Additionally, as a result of the adoption of this ASU, individually evaluated loans decreased by $11.5 million effective January 1, 2023.

FAQ

What was Park National 's (PRK) Q3 2024 net income?

Park National 's net income for Q3 2024 was $38.2 million, representing a 3.5% increase from $36.9 million in Q3 2023.

What dividends did Park National (PRK) declare for Q3 2024?

Park National declared a quarterly cash dividend of $1.06 per common share and a special one-time dividend of $0.50 per share, both payable on December 10, 2024.

What was Park National's (PRK) loan growth in the first nine months of 2024?

Park National's total loans increased by 3.4% (4.6% annualized) during the first nine months of 2024.

What was Park National's (PRK) net interest margin in Q3 2024?

Park National's net interest margin was 4.45% for Q3 2024, compared to 4.12% for Q3 2023.

Park National Corporation

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