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]

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]

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]

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 ...

Core Viewpoint - Park National Corporation reported strong financial results for the second quarter and first half of 2024, highlighting significant increases in net income and earnings per share, alongside a commitment to enhancing customer service through new banking tools [2][5]. Financial Performance - Net income for Q2 2024 was $39.4 million, a 24.6% increase from $31.6 million in Q2 2023. Earnings per diluted share rose to $2.42 from $1.94 year-over-year [2][5]. - For the first half of 2024, net income reached $74.6 million, up 14.2% from $65.3 million in the same period of 2023, with earnings per diluted share increasing to $4.60 from $4.01 [2][5]. Loan and Deposit Growth - Total loans increased by 2.5% (5.1% annualized) in the first half of 2024 and by 6.3% over the 12 months ending June 30, 2024. In Q2 2024, loans grew by 1.9% (7.4% annualized) [3]. - Total deposits rose by 3.4% (6.7% annualized) in the first half of 2024 but decreased by 0.6% over the 12 months ending June 30, 2024 [4]. Net Interest Margin - The net interest margin for Q2 2024 was 4.39%, compared to 4.28% in Q1 2024 and 4.07% in Q2 2023. For the first half of 2024, the net interest margin was 4.33%, up from 4.07% in the first half of 2023 [4][11]. Asset and Equity Position - As of June 30, 2024, Park National Corporation had total assets of $9.9 billion, with total shareholders' equity of $1.18 billion, reflecting a 1.8% increase from the previous quarter and an 8.7% increase year-over-year [5][12]. - The company reported a tangible book value per common share of $63.14, up 2.2% from the previous quarter and 10.4% year-over-year [11][12]. Dividend Declaration - The board of directors declared a quarterly cash dividend of $1.06 per common share, payable on September 10, 2024, to shareholders of record as of August 16, 2024 [1][16].

Core Insights - Park National Corporation reported a net income of $39,369 thousand for the three months ended June 30, 2024, representing an 11.8% increase compared to $31,584 thousand for the same period in 2023 [7][21] - The company’s net interest income for the same period was $97,837 thousand, up 6.8% from $91,572 thousand in the prior year [7][21] - Total assets increased to $9,919,783 thousand as of June 30, 2024, compared to $9,899,551 thousand a year earlier, reflecting a 0.2% growth [8][23] Financial Performance - For the six months ended June 30, 2024, net income was $74,573 thousand, a 14.2% increase from $65,317 thousand in 2023 [25] - The provision for credit losses for the first half of 2024 was $5,293 thousand, significantly higher than $2,675 thousand in the same period of 2023, indicating a 97.9% increase [25] - Earnings per common share (diluted) rose to $4.60 for the six months ended June 30, 2024, compared to $4.01 in 2023, marking a 14.7% increase [25] Balance Sheet Highlights - Average shareholders' equity increased to $1,183,257 thousand as of June 30, 2024, from $1,088,757 thousand a year prior, reflecting an 8.7% growth [8][23] - Total deposits reached $8,312,505 thousand, slightly up from $8,358,976 thousand in the previous year [8][23] - The company’s tangible equity was reported at $1,019,650 thousand, up from $923,842 thousand in the same period last year, indicating a 10.4% increase [23] Asset Quality - Total nonperforming loans increased to $72,745 thousand as of June 30, 2024, compared to $58,229 thousand a year earlier, reflecting a 24.9% rise [23] - The allowance for credit losses as a percentage of period-end loans was reported at 1.13%, unchanged from the previous quarter [23] - Net loan charge-offs for the first half of 2024 were $2,463 thousand, a 100.1% increase from $1,231 thousand in the same period of 2023 [25] Market Data - The market capitalization at the end of June 2024 was $2,298,723 thousand, up 4.5% from $1,652,818 thousand a year earlier [21] - The quarterly cash dividend declared per common share remained stable at $1.06, compared to $1.05 in the same period last year [21] - The book value per common share at period end was $73.27, reflecting a 1.8% increase from $67.40 a year prior [21]