Core Insights - Park National Corporation reported a significant increase in net income for the fourth quarter of 2024, reaching $38.6 million, a 57.7% increase from $24.5 million in the same quarter of 2023 [2] - The company declared a quarterly cash dividend of $1.07 per common share, payable on March 10, 2025 [1] - For the full year of 2024, net income was $151.4 million, a 19.5% increase from $126.7 million in 2023 [2] Financial Performance - Net income per diluted common share for Q4 2024 was $2.37, compared to $1.51 for Q4 2023 [2] - 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] - The company's net interest income for Q4 2024 was $103.4 million, up from $95.1 million in Q4 2023, reflecting an 8.8% increase [9] Asset and Equity Metrics - As of December 31, 2024, Park National Corporation had total assets of $9.8 billion [4] - Total shareholders' equity increased to $1.24 billion, up from $1.15 billion in 2023 [12] - The book value per common share at the end of 2024 was $76.98, compared to $71.06 at the end of 2023, marking an 8.3% increase [9] Market Data - The market capitalization of Park National Corporation at the end of 2024 was approximately $2.77 billion, reflecting a 29.4% increase from the previous year [9] - The market price per common share at the end of 2024 was $171.43, up from $132.86 at the end of 2023, indicating a 29.0% increase [9] Operational Highlights - The company emphasized its commitment to customer relationships and community engagement as a key driver of growth [2][4] - Park National Corporation's banking operations are conducted through its subsidiary, The Park National Bank, along with other subsidiaries focused on leasing and financial services [4]

Acquisition Announcement - DFCU Financial intends to acquire Winter Park National Bank, marking its third transaction in Florida, enhancing its commitment to comprehensive financial services in the region [1][2] - The acquisition will allow DFCU Financial to expand its offerings to a broader member base, leveraging WPNB's established reputation for customer service [2][4] Company Background - DFCU Financial, founded in 1950, has over 240,000 members and assets nearing $7 billion, with 28 branches in Michigan and several in Florida [6] - Winter Park National Bank, established in 2017, focuses on commercial banking and serves the Winter Park-Orlando-Kissimmee area with a strong emphasis on personalized banking solutions [7] Leadership and Integration - David Dotherow has been named Central Florida Area President and will retain leadership of the former WPNB operations, ensuring continuity in local leadership [4] - WPNB's branches will be rebranded under the DFCU Financial name, with plans for service integration in 2025 [4] Regulatory and Advisory Details - The acquisition is subject to regulatory approval, with both institutions collaborating to follow necessary processes [5] - DFCU Financial is advised by Donnelly Penman & Partners, Inc. and Honigman LLP, while WPNB is advised by Hovde Group, LLC and Smith Mackinnon, PA [5]

Economic Factors and Risks - Park National Corporation's performance is influenced by various economic factors, including higher unemployment rates, persistent inflation, and elevated interest rates, which may adversely impact loan demand and financial services [9]. - The company faces risks related to the performance of its loan portfolio, particularly due to changes in real estate values and the financial health of commercial borrowers [9]. - The impact of geopolitical instability, such as the Russia-Ukraine conflict, may affect financial markets and the economy, influencing Park's operations [10]. - The adequacy of Park's internal controls and risk management programs is essential in mitigating risks associated with market and operational changes [10]. - The company must navigate potential changes in banking regulations that could affect its capital actions, including dividend payments and stock repurchases [10]. - The company is subject to competitive pressures among financial services organizations, which could affect credit spreads and customer acquisition [10]. - Park's reliance on third-party vendors for core banking systems poses risks to its ability to meet customer needs and competitive demands [10]. Financial Performance - Net income for the three months ended September 30, 2024, was $38,217 thousand, an increase from $36,917 thousand in the same period last year, reflecting a growth of 3.5% [20]. - Earnings per common share (diluted) increased to $2.35 for Q3 2024, compared to $2.28 for Q3 2023, showing a growth of 3.07% [20]. - The company declared regular cash dividends of $1.06 per common share for Q3 2024, up from $1.05 in Q3 2023 [20]. - Total other income for the nine months ended September 30, 2024, was $91,524 thousand, compared to $77,115 thousand for the same period in 2023, indicating a growth of 18.67% [18]. - Comprehensive income for the three months ended September 30, 2024, was $71,987, compared to $17,813 for the same period in 2023, reflecting a significant increase [22]. - The company reported a net decrease in short-term borrowings of $210,740 million, contrasting with an increase of $125,444 million in the previous year, indicating a shift in financing strategy [29]. Loan Portfolio and Credit Quality - The total loan portfolio as of September 30, 2024, was $7.73 billion, up from $7.48 billion at December 31, 2023, indicating a growth of approximately 3.4% [59]. - Nonperforming loans totaled $71.54 million as of September 30, 2024, compared to $61.12 million at December 31, 2023, reflecting an increase of about 16.5% [63][65]. - The allowance for credit losses was $87.24 million as of September 30, 2024, compared to $83.75 million at December 31, 2023, showing a slight increase [59]. - The company has a well-defined grading system for commercial loans, with grades ranging from 1 (low risk) to 8 (loss), ensuring continuous monitoring of credit quality [77]. - The management utilizes past due information as a primary credit quality indicator across the loan portfolio, with specific focus on commercial loans graded from 1 to 8 [77]. Changes in Assets and Liabilities - Total assets increased to $9,903,049 thousand as of September 30, 2024, compared to $9,836,453 thousand at December 31, 2023, reflecting a growth of 0.68% [16]. - Total liabilities decreased slightly to $8,663,636 thousand as of September 30, 2024, from $8,691,160 thousand at December 31, 2023, a decline of 0.32% [16]. - Cash and cash equivalents at the end of the period were $201,683 million, down from $223,618 million, reflecting a decrease in liquidity [29]. Investment and Securities - The unrealized net holding gain on debt securities available-for-sale for the nine months ended September 30, 2024, was $18,046, compared to a loss of $(13,496) for the same period in 2023 [22]. - The company verified that the current credit ratings for non-agency debt securities remain above investment grade, indicating sufficient creditworthiness [44]. - The fair value of collateralized loan obligations was $343,729,000 as of September 30, 2024 [204]. Shareholder Returns and Dividends - Cash dividends paid amounted to $52,288 million, slightly higher than $52,028 million in the prior year, indicating stable shareholder returns [29]. - The company declared dividends on common shares at $1.06 per share for the three months ended September 30, 2024, totaling $17,322 [25]. Pension and Employee Compensation - The company recognized a pension settlement gain of $5,783,000 during the three months ended September 30, 2024, with no such gain recognized in the same period of 2023 [199]. - Share-based compensation expense for the three months ended September 30, 2024, was $1.6 million, compared to $1.3 million in 2023, indicating a 23.1% increase [195]. - The service cost for the pension plan for the three months ended September 30, 2024, was $1,750,000, up from $1,559,000 in 2023, marking a 12.2% increase [198]. Economic Forecast and Credit Losses - The "most likely" scenario forecasted Ohio unemployment rates between 4.05% and 4.66% for the next four quarters as of December 31, 2023, with management maintaining a 50% weighting for both the "most likely" and "moderate recession" scenarios [136]. - The total Allowance for Credit Losses (ACL) as of September 30, 2024, was $87.237 million, with a beginning balance of $86.575 million [140]. - The charge-offs for the nine months ended September 30, 2024, totaled $12.891 million, while recoveries were $5.775 million, resulting in net charge-offs of $7.116 million [141].

Core Viewpoint - Park National (PRK) reported quarterly earnings of $2.25 per share, missing the Zacks Consensus Estimate of $2.31 per share, representing an earnings surprise of -2.60% [1] - The company posted revenues of $137.64 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 10.38% [2] Financial Performance - Earnings per share (EPS) for the same quarter last year was $2.28, indicating a slight decrease year-over-year [1] - Over the last four quarters, Park National has surpassed consensus EPS estimates three times [2] - The company has also topped consensus revenue estimates three times over the last four quarters [2] Stock Performance - Park National shares have increased approximately 25.4% since the beginning of the year, outperforming the S&P 500's gain of 21.8% [3] - The current consensus EPS estimate for the upcoming quarter is $2.27, with expected revenues of $124.49 million, and for the current fiscal year, the estimate is $9.18 on revenues of $497.26 million [7] Industry Outlook - The Banks - Midwest industry, to which Park National belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Core Insights - Park National Corporation reported a net income of $38.2 million for Q3 2024, a 3.5% increase from $36.9 million in Q3 2023, with diluted earnings per share rising to $2.35 from $2.28 [2][11] - The company declared a quarterly cash dividend of $1.06 and a special one-time dividend of $0.50 per common share, both payable on December 10, 2024 [1] - Total loans increased by 3.4% (4.6% annualized) during the first nine months of 2024, and total deposits rose by 2.1% (2.9% annualized) in the same period [3][4] Financial Performance - Net income for the first nine months of 2024 was $112.8 million, a 10.3% increase from $102.2 million in the same period of 2023 [2][11] - Net interest income for Q3 2024 was $101.1 million, up 7.3% from $94.3 million in Q3 2023 [9][13] - The net interest margin improved to 4.45% in Q3 2024, compared to 4.12% in Q3 2023 [4][10] Asset and Liability Management - Total assets as of September 30, 2024, were $9.9 billion, with total deposits at $8.2 billion [5][15] - The allowance for credit losses increased to $87.2 million, reflecting a proactive approach to risk management [10][15] - Nonperforming loans decreased to 0.93% of total loans, down from 0.76% a year earlier [10][11] Market Data - The market capitalization of Park National Corporation reached approximately $2.71 billion as of September 30, 2024, reflecting an 18% increase from the previous quarter [9][10] - The book value per common share increased to $76.74, a 13.8% rise from $67.41 in Q3 2023 [9][10] - The market price per common share at the end of Q3 2024 was $167.98, up 77.7% from $94.52 a year earlier [9][10]

Financial Performance - Park National Corporation's net income for Q3 2024 was $38.2 million, a 3.5% increase from $36.9 million in Q3 2023[2] - Net income per diluted common share for Q3 2024 was $2.35, compared to $2.28 for Q3 2023[2] - For the first nine months of 2024, net income was $112.8 million, a 10.3% increase from $102.2 million in the same period of 2023[2] - Net interest income for Q3 2024 was $101,114,000, an increase of 3.3% from Q2 2024 and 7.3% from Q3 2023[10] - Net income for Q3 2024 decreased to $38,217,000, down 2.9% from Q2 2024 but up 3.5% from Q3 2023[10] - Earnings per common share - diluted for Q3 2024 was $2.35, a decrease of 2.9% from Q2 2024 and an increase of 3.1% from Q3 2023[10] - Net income for the nine months ended September 30, 2024, was $112,790,000, reflecting a 10.3% increase from $102,234,000 in 2023[13] - Earnings per common share - diluted increased to $6.95, a 10.5% rise from $6.29 in the previous year[13] - Adjusted net income for the three months ended September 30, 2024, was $36,659,000, compared to $37,028,000 in the same period last year[25] - Net income for the three months ended September 30, 2024, is $38,217,000, compared to $36,917,000 for the same period in 2023, representing an increase of about 3.5%[36] Asset and Liability Management - Park National Corporation has total assets of $9.9 billion as of September 30, 2024[5] - Total assets as of September 30, 2024, were $9,903,049,000, a slight decrease of 0.2% from Q2 2024 and 1.0% from Q3 2023[11] - Total liabilities decreased to $8,710,068 thousand from $8,862,437 thousand, a reduction of 1.72%[19] - Total shareholders' equity increased to $1,239,413,000, up 4.7% from Q2 2024 and 14.2% from Q3 2023[11] - Total shareholders' equity as of September 30, 2024, is $1,239,413,000, an increase from $1,085,564,000 on September 30, 2023, representing a growth of approximately 14.2%[29] - Average tangible assets for the nine months ended September 30, 2024, are $9,701,495,000, compared to $9,815,129,000 for the same period in 2023, indicating a decrease of approximately 1.2%[31] Loan and Deposit Growth - Total loans increased by 3.4% (4.6% annualized) during the first nine months of 2024, and by 5.2% for the 12-month period ended September 30, 2024[3] - Total deposits increased by 2.1% (2.9% annualized) during the first nine months of 2024, but decreased by 0.4% for the 12-month period ended September 30, 2024[4] - Total loans reached $7,730,984 thousand, up from $7,664,377 thousand in the previous quarter, representing a growth of 0.87%[22] - Total deposits increased to $8,214,671,000 from $8,042,566,000, showing growth in customer deposits[15] - Total deposits decreased to $8,286,165 thousand from $8,382,880 thousand, a decline of 1.15%[19] Credit Quality and Risk Management - Nonperforming loans as a percentage of total loans decreased to 0.93% from 0.95% in Q2 2024, but increased from 0.76% in Q3 2023[11] - The allowance for credit losses was $87,237,000, a slight increase of 0.8% from Q2 2024 and 3.1% from Q3 2023[11] - The net loan charge-offs for Q3 2024 were $4,653,000, a significant increase of 186.9% from Q2 2024 and 354.4% from Q3 2023[11] - Provision for credit losses increased significantly to $10,608,000 from $1,095,000, indicating a notable rise in credit risk[13] - Net loan charge-offs surged to $7,116,000, a 215.6% increase from $2,255,000, highlighting potential asset quality concerns[13] - The company reported a provision for credit losses of $5,315 thousand in Q3 2024, compared to $1,580 thousand in Q3 2023, suggesting a cautious approach to potential credit risks[20] - Loans past due 90 days or more rose to $3,550 thousand from $1,377 thousand in the previous quarter, marking a significant increase of 157.5%[22] Operational Efficiency - The efficiency ratio improved to 61.38%, down from 64.29%, indicating better cost management[13] - The efficiency ratio for the three months ended September 30, 2024, was 61.98%, compared to 59.09% in the previous quarter[25] - The efficiency ratio is calculated by dividing total other expenses by the sum of fully taxable equivalent net interest income and other income, which is a key metric for assessing operational efficiency[34] Dividends and Shareholder Returns - A quarterly cash dividend of $1.06 per common share and a special one-time dividend of $0.50 per common share were declared, payable on December 10, 2024[1] - The quarterly cash dividend declared per common share remained at $1.06, consistent with Q2 2024 and up 1.0% from Q3 2023[10] Market Performance - The market capitalization at the end of Q3 2024 was $2,713,152,000, an increase of 18.0% from Q2 2024 and 78.3% from Q3 2023[10]

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 June 30, 2024 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 cha ...

This quarterly report represents an earnings surprise of 19.60%. A quarter ago, it was expected that this financial services holding company would post earnings of $1.85 per share when it actually produced earnings of $2.15, delivering a surprise of 16.22%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management ...

July 22, 2024 Exhibit 99.1 NEWARK, Ohio ‒ Park National Corporation (Park) (NYSE American: PRK) today reported financial results for the second quarter and first half of 2024. Park's board of directors declared a quarterly cash dividend of $1.06 per common share, payable on September 10, 2024, to common shareholders of record as of August 16, 2024. Park's net income for the second quarter of 2024 was $39.4 million, a 24.6 percent increase from $31.6 million for the second quarter of 2023. Second quarter 202 ...

PARK NATIONAL CORPORATION Financial Reconciliations (continued) (a) Reported measure uses net income (b) Averages are for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023 and the six months ended June 30, 2024 and June 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 ...