Park National (PRK) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this financial services holding company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________________ to __________________________ Commission File Number 1-13006 PARK NATIONAL CORPORATION (Exact name of registrant as specified in its ch ...

Shares of Park National have returned -3.1% over the past month versus the Zacks S&P 500 composite's -4.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Park National performed in the just reported quarter in terms of the ...

Park National (PRK) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.20 per share. This compares to earnings of $2.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.82%. A quarter ago, it was expected that this financial services holding company would post earnings of $2.27 per share when it actually produced earnings of $2.36, delivering a surprise of 3.96%.Over the last four ...

Financial Performance - Park National Corporation reported a net income of $42.2 million for Q1 2025, a 19.8% increase from $35.2 million in Q1 2024[2] - The diluted earnings per common share for Q1 2025 was $2.60, compared to $2.17 in Q1 2024, reflecting a 19.8% increase[2] - Net income for the three months ended March 31, 2025, was $42,157, representing a 19.4% increase from $35,204 in the same period last year[13] - Net income for Q1 2025 reached $42,157,000, up from $38,630,000 in Q4 2024, representing an increase of 4.1%[20] - Net interest income after provision for credit losses was $103,621, up 10.9% from $93,443 in the prior year[13] - Net interest income adjusted for acquisitions was $103,183 thousand for the three months ended March 31, 2025, compared to $95,269 thousand for the same period in 2024, reflecting a year-over-year increase of 8.5%[29] - Total other income decreased to $25,746,000 in Q1 2025 from $31,064,000 in Q4 2024, a decline of 17.2%[22] - Other income adjusted was $26,886 thousand for Q1 2025, slightly up from $26,625 thousand in Q1 2024, showing stability in non-interest income sources[29] Asset and Loan Growth - Total loans increased by 0.9% (3.5% annualized) during Q1 2025, while reported period-end deposits rose by 0.7% (2.9% annualized)[2] - Total loans reached $7,883,735, a 0.9% increase from the previous quarter and a 4.8% increase year-over-year[10] - Total assets reached $9.9 billion as of March 31, 2025[3] - Total assets as of March 31, 2025, were $9,886,612 thousand, a slight increase from $9,881,077 thousand at the end of Q1 2024[34] - Total deposits rose to $8,201,695, reflecting a 0.7% increase from the previous quarter but a 1.3% decrease year-over-year[10] Credit Quality and Losses - The provision for credit losses decreased by 80.8% to $756, compared to $3.9 million in Q4 2024[8] - Provision for credit losses was $756,000 in Q1 2025, significantly lower than $3,935,000 in Q4 2024, indicating improved asset quality[20] - Net charge-offs for the current period were $592,000, a significant decrease from $10,322,000 in the previous year, representing a reduction of 94.25%[24] - Nonperforming loans decreased to $63,148, down 9.7% from the previous quarter and 12.0% year-over-year[10] - The percentage of nonperforming loans to period end loans was 0.80%, down from 0.89% in the previous year, reflecting an improvement of 10.11%[24] - The provision for credit losses was $756,000, a decrease from $14,543,000 in the previous year, representing a reduction of 94.79%[24] Efficiency and Capital - The efficiency ratio improved to 59.79% in Q1 2025, compared to 61.60% in Q4 2024[8] - Tangible equity increased to $1,116,284 thousand as of March 31, 2025, compared to $998,052 thousand in Q1 2024, indicating a stronger capital position[32] - Return on average assets for Q1 2025 was 1.70%, up from 1.54% in Q4 2024[8] - Annualized return on average assets was 1.70% for Q1 2025, up from 1.44% in Q1 2024, indicating improved asset efficiency[29] - Pre-tax, pre-provision net income for Q1 2025 was $51,959 thousand, up from $44,595 thousand in Q1 2024, highlighting robust operational performance[38] Dividends - The quarterly cash dividend declared per common share was $1.07, a 0.9% increase from $1.06 in the previous quarter[8] - The quarterly dividend declared was $1.07, compared to $1.06 in the same quarter last year[13]

NEWARK, Ohio, April 25, 2025 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the first quarter of 2025. Park's board of directors declared a quarterly cash dividend of $1.07 per common share, payable on June 10, 2025, to common shareholders of record as of May 16, 2025. “Our first quarter performance reflects our commitment to providing consistent financial support and a measure of predictability in dynamic market conditions,” said Park Chairman ...

Group 1 - Park National Corporation's stock price has experienced a sharp correction since the last sell rating was adopted [1] - Following the announcement of fourth quarter results, earnings are expected to continue growing this year due to below-average loan growth [1]

Loan Portfolio and Lending Practices - As of December 31, 2024, Park National Bank had $325 million in loans outstanding to non-bank consumer finance companies, indicating a focus on asset-based lending[51]. - The commercial loan portfolio includes loans to various industries, with significant representation in real estate rental and leasing, construction, and finance and insurance sectors[45]. - At December 31, 2024, Park's subsidiaries had approximately $2,613 million in construction and residential real estate loans, representing about 33.4% of total loans outstanding[56]. - Park National Bank's consumer loans totaled $1,910 million, constituting approximately 24.4% of the total loan portfolio, with $1,719 million from indirect lending[53]. - Commercial real estate loans are capped at 85% of the purchase price or appraised value, whichever is lower, to mitigate risk[47]. - The bank's internal loan review program evaluates all commercial loan relationships equal to or greater than $1.0 million annually[49]. - Park National Bank's construction loans may involve higher risks due to potential inaccuracies in property value estimates and construction costs[62]. - As of December 31, 2024, Scope Aircraft Finance had $314 million in loans outstanding, primarily secured by aircraft[52]. Regulatory Environment and Compliance - Park is subject to extensive regulation by federal and state agencies, which may restrict its ability to repurchase common shares or receive dividends from Park National Bank[71]. - The Economic Growth, Regulatory Relief and Consumer Protection Act eased restrictions on bank holding companies with consolidated assets of less than $100 billion, including Park[89]. - The FDIC insures deposits up to $250,000 per separately insured depositor, backed by the full faith and credit of the U.S. government[94]. - The FDIC has established a designated reserve ratio (DRR) of 2.0%, with the DRR reaching 1.35% on September 30, 2018, and remaining below the statutory minimum of 1.35% as of December 31, 2024[97]. - The FDIC may impose special assessments in emergency situations, and the premiums fund the Deposit Insurance Fund (DIF)[96]. - Park became a financial holding company in 2014, allowing it to affiliate with securities firms and insurance companies[81]. - The Federal Reserve Board may require a financial holding company to contribute additional capital to an undercapitalized subsidiary bank[80]. - Park National Bank's total consolidated assets must remain below $10.0 billion to avoid higher FDIC assessment rates[98]. - The minimum common equity tier 1 capital ratio is set at 4.5%, with a total capital ratio requirement of 8.0% under Basel III Capital Rules[104]. - As of December 31, 2024, approximately $133.8 million of total shareholders' equity was available for payment to Park without OCC approval[121]. - The Federal Reserve reduced reserve requirement ratios to zero percent effective March 26, 2020, which remains in effect as of December 31, 2024[125]. - Park National Bank is required to maintain a capital conservation buffer greater than 2.5% to pay dividends[120]. - The bank's management believes it meets the "well-capitalized" requirements, including a common equity tier 1 capital ratio of at least 6.5%[115]. - The Volcker Rule limits trading activities of insured depository institutions to mitigate risks associated with short-term profits[126]. - Park National Bank adopted the CECL model on January 1, 2021, impacting regulatory capital calculations[111]. - The CBLR threshold was temporarily lowered to 8.0% for 2020, increasing to 8.5% for 2021, and returning to 9.0% on January 1, 2022[112]. - The bank's ability to pay dividends is subject to regulatory authority discretion to maintain adequate capital levels[120]. - Park National Bank is subject to the Volcker Rule, which excludes community banks with total consolidated assets of $10.0 billion or less and total trading assets and liabilities of 5.0% or less[127]. Competition and Market Dynamics - Financial technology companies (fintechs) are providing strong competition for Park's borrowers and depositors[67]. - The primary factors in competing for loans include loan terms, interest rates, and overall services provided to borrowers[66]. Community and Social Responsibility - The bank received a "satisfactory" rating in its latest Community Reinvestment Act examination, which assesses its record in meeting the credit needs of the communities it serves[141]. - On October 24, 2023, federal banking agencies issued a final rule to modernize the CRA regulations, with applicability dates set for January 1, 2026, and January 1, 2027[142]. Cybersecurity and Risk Management - The SEC adopted final rules requiring public companies to disclose material cybersecurity incidents within four business days and to report on cybersecurity risk management annually[134]. - Park National Bank has established policies to comply with the Patriot Act, which broadens anti-money laundering laws and imposes new compliance obligations[138]. - The Anti-Money Laundering Act of 2020 modernizes U.S. bank secrecy and anti-money laundering laws, requiring a risk-based approach to compliance[139]. - The bank employs a layered cybersecurity approach, utilizing encryption and multi-factor authentication to protect sensitive data[136]. - Park National Bank is required to notify federal regulators of any computer-security incidents within 36 hours of determination[133]. - The bank's incentive compensation plans are designed to avoid encouraging inappropriate risks, in line with the Dodd-Frank Act[144]. - Park has adopted a clawback policy for incentive compensation to recover payments based on erroneous financial information[149]. Environmental and Regulatory Compliance - Park National Bank's operations may be significantly affected by potential legislative and regulatory changes, which could alter the cost of doing business and competitive dynamics[153]. - Compliance with environmental regulations has not materially impacted Park's capital expenditures or earnings, with no anticipated significant costs for environmental control facilities in the current fiscal year[154]. - Park's subsidiaries mitigate environmental risk by requiring environmental site assessments for loans on commercial real estate with potential environmental concerns[155]. Fair Lending and Consumer Protection - The Fair Housing Act prohibits discrimination in housing-related lending activities, ensuring equitable access to credit[155]. - The Home Mortgage Disclosure Act mandates data collection to assess if financial institutions meet housing credit needs in their communities[155]. - The Real Estate Settlement Procedures Act requires lenders to disclose settlement costs and prohibits abusive practices that increase borrower costs[155]. - The Fair Credit Reporting Act regulates the provision of consumer information to credit agencies, impacting credit reporting practices[155]. - The Fair Debt Collection Practices Act governs the collection of consumer debts, ensuring fair practices by collection agencies[155]. - The Truth in Savings Act mandates disclosure of deposit terms to consumers, promoting transparency in banking[155]. - The Electronic Funds Transfer Act outlines customer rights and liabilities related to electronic banking services, enhancing consumer protection[155].

Group 1 - Park National reported quarterly earnings of $2.36 per share, exceeding the Zacks Consensus Estimate of $2.27 per share, and up from $2 per share a year ago, representing an earnings surprise of 3.96% [1] - The company posted revenues of $134.51 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 8.05%, compared to year-ago revenues of $110.59 million [2] - Park National has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times in the same period [2] Group 2 - The stock has underperformed the market, losing about 2.2% since the beginning of the year, while the S&P 500 gained 3.7% [3] - The current consensus EPS estimate for the coming quarter is $2.20 on revenues of $123.33 million, and for the current fiscal year, it is $8.82 on revenues of $498.82 million [7] - The Zacks Industry Rank for Banks - Midwest is currently in the top 16% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Park National Corporation reported a net income of $38.6 million for Q4 2024, a 57.7% increase from $24.5 million in Q4 2023[2] - For the full year 2024, net income was $151.4 million, reflecting a 19.5% increase from $126.7 million in 2023[2] - The diluted earnings per common share for Q4 2024 was $2.37, compared to $1.51 for Q4 2023, marking a 57.0% increase[2] - Net income for the year ended December 31, 2024, was $151,420,000, reflecting a 19.5% increase from $126,734,000 in 2023[14] - Earnings per common share (basic) rose by 19.6% to $9.38 in 2024, compared to $7.84 in 2023[14] - Adjusted net income for the twelve months ended December 31, 2024, was $148,459 thousand, representing a 10.6% increase from $134,222 thousand in 2023[33] - Net income for the three months ended December 31, 2024, was $38.63 million, an increase from $24.5 million for the same period in 2023, representing a year-over-year growth of 57.5%[43] Asset and Loan Growth - Total loans increased by 4.6% during 2024, while total deposits rose by 1.3%, with off-balance sheet deposits increasing by 2.7%[3] - Net loans increased to $7,729,162, up from $7,392,476, reflecting a growth of about 4.6% year-over-year[19] - Total loans increased to $7,817,128,000 in 2024 from $7,476,221,000 in 2023, representing a growth of 4.6%[28] - Total assets reached $9.8 billion as of December 31, 2024[5] - Total assets decreased slightly to $9,805,350, down from $9,836,453, representing a decline of approximately 0.3% year-over-year[19] Income and Efficiency Metrics - The company reported a net interest income of $103.4 million for Q4 2024, an 8.8% increase from $95.1 million in Q4 2023[10] - Net interest income for the year ended December 31, 2024, increased by 6.7% to $398,019,000 compared to $373,113,000 in 2023[14] - The efficiency ratio improved to 61.60% in Q4 2024, down from 70.93% in Q4 2023, indicating better operational efficiency[10] - The efficiency ratio improved to 61.44% in 2024 from 65.87% in 2023, indicating better cost management[14] - The annualized net interest margin for the three months ended December 31, 2024, was 4.51%, compared to 4.17% for the same period in 2023[40] Dividends and Shareholder Equity - Park National Corporation declared a quarterly cash dividend of $1.07 per common share, payable on March 10, 2025[1] - Total shareholders' equity as of December 31, 2024, was $1,243,848 thousand, up from $1,145,293 thousand a year earlier[37] - Total shareholders' equity as a percentage of total assets increased to 12.69% as of December 31, 2024, from 12.52% in the previous quarter[12] Credit Losses and Nonperforming Loans - Provision for credit losses surged by 400.8% to $14,543,000 in 2024 from $2,904,000 in 2023[14] - Net loan charge-offs for the year increased by 109.8% to $10,322,000 from $4,921,000 in 2023[14] - Nonperforming loans at the end of 2024 are $69,932,000, up from $61,118,000 in 2023, which is a rise of 14.8%[28] - The percentage of nonperforming assets to period end total assets is 0.72% in 2024, compared to 0.63% in 2023, showing an increase of 14.3%[28] - The provision for credit losses for the three months ended December 31, 2024, was $3.94 million, compared to $1.81 million for the same period in 2023, reflecting a significant increase of 117.7%[43] Other Income - Other income rose by 32.3% to $122,588,000 in 2024, up from $92,634,000 in 2023[14] - Other income for Q4 2024 totaled $31,064, compared to $15,519 in Q4 2023, reflecting a growth of about 100.5%[26]