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 ...

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) This section provides an overview of Park National Corporation's strong financial performance for Q2 and H1 2024, management's strategic commentary, and the declared dividend [Q2 and H1 2024 Financial Performance Overview](index=1&type=section&id=Q2%20and%20H1%202024%20Financial%20Performance%20Overview) Park National Corporation achieved strong Q2 and H1 2024 financial results, with significant increases in net income and diluted EPS, alongside growth in deposits and loans Key Financial Performance (Q2 2024 vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Net Income | $39.4 million | $31.6 million | 24.6% | | Net Income per Diluted Share| $2.42 | $1.94 | 24.7% | Key Financial Performance (H1 2024 vs. H1 2023) | Metric | H1 2024 | H1 2023 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Net Income | $74.6 million | $65.3 million | 14.2% | | Net Income per Diluted Share| $4.60 | $4.01 | 14.7% | Balance Sheet & Margin Highlights (as of June 30, 2024) | Metric | Value | Change (H1 2024) | Change (12-month) | | :---------------- | :---------- | :--------------- | :---------------- | | Total Assets | $9.9 billion | N/A | N/A | | Total Deposits | N/A | +3.4% | -0.6% | | Net Interest Margin (Q2 2024) | 4.39% | N/A | N/A | | Net Interest Margin (H1 2024) | 4.33% | N/A | N/A | [Management Commentary & Strategic Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Strategic%20Outlook) Management emphasized consistent financial support, resilience, customer service, and strategic focus on expense control and technology as assets approach $10 billion - Park's performance is attributed to its commitment to consistent financial support, resilience, and continuous search for new ways to serve customers, including introducing new tools for more accessible banking services[11](index=11&type=chunk) - Net interest income continues to grow, supported by a year-to-date annualized commercial loan growth of **6.4%**, reflecting a consistent lending approach regardless of economic fluctuations[12](index=12&type=chunk) - The company is pleased with growth in net income and earnings per share, demonstrating a commitment to controlling expenses and leveraging technology in preparation for crossing **$10 billion in assets**[12](index=12&type=chunk) [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) Park National Corporation's board of directors declared a quarterly cash dividend of $1.06 per common share - A quarterly cash dividend of **$1.06 per common share** was declared, payable on September 10, 2024, to shareholders of record as of August 16, 2024[1](index=1&type=chunk) [Risk Factors & Forward-Looking Statements](index=2&type=section&id=Risk%20Factors%20%26%20Forward-Looking%20Statements) This section discusses potential risks and the nature of forward-looking statements [Safe Harbor Statement](index=2&type=section&id=Safe%20Harbor%20Statement) The Safe Harbor Statement clarifies that forward-looking statements are not guarantees and are subject to various risks detailed in SEC filings, with no obligation to update - Forward-looking statements are provided to assist in understanding anticipated future financial performance but are not guarantees and are subject to numerous risks and uncertainties[13](index=13&type=chunk) - Park specifically disclaims any obligation to publicly release revisions to forward-looking statements to reflect events or circumstances after the statement date, except as required by law[37](index=37&type=chunk) - Risks and uncertainties include, but are not limited to, the ability to execute business plans, adverse changes in economic and financial market conditions, real estate values, borrower health, regulatory changes, consumer habits, litigation, credit risk, and technological changes[6](index=6&type=chunk) [Consolidated Financial Highlights](index=3&type=section&id=Consolidated%20Financial%20Highlights) This section provides an overview of the company's key financial results from income statements, balance sheets, and performance ratios [Income Statement Highlights (Quarterly)](index=3&type=section&id=Income%20Statement%20Highlights%20%28Quarterly%29) Q2 2024 showed significant year-over-year and quarter-over-quarter growth in net interest income, other income, and net income, with managed expenses Income Statement Highlights (Q2 2024 vs. Q1 2024 & Q2 2023) | Metric | Q2 2024 ($ thousand) | Q1 2024 ($ thousand) | Q2 2023 ($ thousand) | % Change (QoQ) | % Change (YoY) | | :-------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Net Interest Income | 97,837 | 95,623 | 91,572 | 2.3% | 6.8% | | Provision for Credit Losses | 3,113 | 2,180 | 2,492 | 42.8% | 24.9% | | Other Income | 28,794 | 26,200 | 25,015 | 9.9% | 15.1% | | Other Expense | 75,189 | 77,228 | 75,885 | (2.6)% | (0.9)% | | Income Before Income Taxes | 48,329 | 42,415 | 38,210 | 13.9% | 26.5% | | Income Taxes | 8,960 | 7,211 | 6,626 | 24.3% | 35.2% | | Net Income | 39,369 | 35,204 | 31,584 | 11.8% | 24.6% | [Income Statement Highlights (Six Months)](index=5&type=section&id=Income%20Statement%20Highlights%20%28Six%20Months%29) For the first half of 2024, the company demonstrated strong growth in net interest income, other income, and net income compared to the first half of 2023, despite a significant increase in provision for credit losses Income Statement Highlights (Six Months Ended June 30, 2024 vs. 2023) | Metric | H1 2024 ($ thousand) | H1 2023 ($ thousand) | % Change | | :-------------------------- | :----------- | :----------- | :--------- | | Net Interest Income | 193,460 | 183,770 | 5.3% | | Provision for Credit Losses | 5,293 | 2,675 | 97.9% | | Other Income | 54,994 | 49,402 | 11.3% | | Other Expense | 152,417 | 152,388 | —% | | Income Before Income Taxes | 90,744 | 78,109 | 16.2% | | Income Taxes | 16,171 | 12,792 | 26.4% | | Net Income | 74,573 | 65,317 | 14.2% | [Balance Sheet Highlights](index=4&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2024, Park National Corporation reported a slight increase in total assets, driven by loan growth, while investment securities and borrowings decreased, and total shareholders' equity saw a notable increase Balance Sheet Highlights (as of June 30, 2024 vs. March 31, 2024 & June 30, 2023) | Metric | June 30, 2024 ($ thousand) | March 31, 2024 ($ thousand) | June 30, 2023 ($ thousand) | % Change (QoQ) | % Change (YoY) | | :-------------------------- | :----------------- | :------------------ | :----------------- | :------------- | :------------- | | Investment Securities | 1,264,858 | 1,339,747 | 1,756,953 | (5.6)% | (28.0)% | | Loans | 7,664,377 | 7,525,005 | 7,208,109 | 1.9% | 6.3% | | Total Assets | 9,919,783 | 9,881,077 | 9,899,551 | 0.4% | 0.2% | | Total Deposits | 8,312,505 | 8,306,032 | 8,358,976 | 0.1% | (0.6)% | | Borrowings | 283,874 | 295,130 | 332,818 | (3.8)% | (14.7)% | | Total Shareholders' Equity | 1,183,257 | 1,161,979 | 1,088,757 | 1.8% | 8.7% | | Total Nonperforming Loans | 72,745 | 71,759 | 58,229 | 1.4% | 24.9% | | Total Nonperforming Assets | 73,955 | 73,433 | 60,496 | 0.7% | 22.2% | [Market Data & Performance Ratios (Quarterly)](index=3&type=section&id=Market%20Data%20%26%20Performance%20Ratios%20%28Quarterly%29) Quarterly performance ratios show improvements in profitability and efficiency, with diluted EPS increasing significantly year-over-year and the efficiency ratio decreasing, indicating better cost management Market Data & Performance Ratios (Q2 2024 vs. Q1 2024 & Q2 2023) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | % Change (QoQ) | % Change (YoY) | | :------------------------------------ | :------ | :------ | :------ | :------------- | :------------- | | Diluted EPS | $2.42 | $2.17 | $1.94 | 11.5% | 24.7% | | Quarterly Cash Dividend per Share | $1.06 | $1.06 | $1.05 | —% | 1.0% | | Book Value per Common Share | $73.27 | $71.95 | $67.40 | 1.8% | 8.7% | | Return on Average Assets (annualized, %) | 1.61% | 1.44% | 1.28% | 11.8% | 25.8% | | Return on Average Shareholders' Equity (%)| 13.52% | 12.23% | 11.61% | 10.5% | 16.5% | | Net Interest Margin (%) | 4.39% | 4.28% | 4.07% | 2.6% | 7.9% | | Efficiency Ratio (%) | 59.09% | 63.07% | 64.58% | (6.3)% | (8.5)% | [Market Data & Performance Ratios (Six Months)](index=5&type=section&id=Market%20Data%20%26%20Performance%20Ratios%20%28Six%20Months%29) For the first half of 2024, key performance ratios improved, including return on average assets and equity, and net interest margin, while the efficiency ratio decreased, indicating enhanced operational effectiveness Market Data & Performance Ratios (Six Months Ended June 30, 2024 vs. 2023) | Metric | H1 2024 | H1 2023 | % Change | | :------------------------------------ | :------ | :------ | :--------- | | Diluted EPS | $4.60 | $4.01 | 14.7% | | Quarterly Cash Dividend Declared | $2.12 | $2.10 | 1.0% | | Return on Average Assets (annualized, %) | 1.52% | 1.32% | 15.2% | | Return on Average Shareholders' Equity (%)| 12.88% | 12.07% | 6.7% | | Net Interest Margin (%) | 4.33% | 4.07% | 6.4% | | Efficiency Ratio (%) | 61.05% | 64.84% | (5.8)% | | Net Loan Charge-offs as % of Avg Loans (%)| 0.07% | 0.03% | 133.3% | [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) This section provides a comprehensive presentation of the company's income statements and balance sheets, including average balances and detailed expense breakdowns [Consolidated Statements of Income (Quarterly & Six Months)](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20%28Quarterly%20%26%20Six%20Months%29) The consolidated statements of income show a consistent increase in total interest income for both the three and six months ended June 30, 2024, compared to the prior year, driven by higher interest and fees on loans, with interest expense also rising, particularly on time deposits Consolidated Statements of Income (Three Months Ended June 30) | Metric | 2024 ($ thousand) | 2023 ($ thousand) | | :-------------------------- | :-------- | :-------- | | Interest and Fees on Loans | 115,318 | 96,428 | | Total Interest Income | 128,904 | 114,674 | | Interest on Deposits (Demand & Savings) | 20,370 | 18,068 | | Interest on Deposits (Time) | 7,525 | 1,966 | | Total Interest Expense | 31,067 | 23,102 | | Net Interest Income | 97,837 | 91,572 | | Provision for Credit Losses | 3,113 | 2,492 | | Other Income | 28,794 | 25,015 | | Other Expense | 75,189 | 75,885 | | Net Income | 39,369 | 31,584 | Consolidated Statements of Income (Six Months Ended June 30) | Metric | 2024 ($ thousand) | 2023 ($ thousand) | | :-------------------------- | :-------- | :-------- | | Interest and Fees on Loans | 226,529 | 188,042 | | Total Interest Income | 255,544 | 225,575 | | Interest on Deposits (Demand & Savings) | 40,225 | 32,280 | | Interest on Deposits (Time) | 14,863 | 3,313 | | Total Interest Expense | 62,084 | 41,805 | | Net Interest Income | 193,460 | 183,770 | | Provision for Credit Losses | 5,293 | 2,675 | | Other Income | 54,994 | 49,402 | | Other Expense | 152,417 | 152,388 | | Net Income | 74,573 | 65,317 | [Consolidated Statements of Income - Linked Quarters](index=9&type=section&id=Consolidated%20Statements%20of%20Income%20-%20Linked%20Quarters) Quarterly income statements show a positive trend in net income and diluted EPS from Q2 2023 through Q2 2024, with Q2 2024 net income reaching **$39.37 million** and diluted EPS at **$2.42** Consolidated Statements of Income (Linked Quarters, $ thousand except per share data) | Metric | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Total Interest Income | 128,904 | 126,640 | 125,206 | 120,889 | 114,674 | | Total Interest Expense | 31,067 | 31,017 | 30,132 | 26,620 | 23,102 | | Net Interest Income | 97,837 | 95,623 | 95,074 | 94,269 | 91,572 | | Provision for Credit Losses | 3,113 | 2,180 | 1,809 | (1,580) | 2,492 | | Other Income | 28,794 | 26,200 | 15,519 | 27,713 | 25,015 | | Other Expense | 75,189 | 77,228 | 79,043 | 77,808 | 75,885 | | Net Income | 39,369 | 35,204 | 24,500 | 36,917 | 31,584 | | Net Income - Diluted (per share, $) | $2.42 | $2.17 | $1.51 | $2.28 | $1.94 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets increased slightly from December 31, 2023, primarily due to growth in loans, while investment securities decreased, and total deposits and shareholders' equity also increased Consolidated Balance Sheets (as of June 30, 2024 vs. December 31, 2023) | Metric | June 30, 2024 ($ thousand) | December 31, 2023 ($ thousand) | | :-------------------------- | :----------------- | :--------------------- | | Cash and Due from Banks | 142,593 | 160,477 | | Money Market Instruments | 118,872 | 57,791 | | Investment Securities | 1,264,858 | 1,429,144 | | Loans, Net | 7,577,802 | 7,392,476 | | Total Assets | 9,919,783 | 9,836,453 | | Noninterest Bearing Deposits| 2,542,446 | 2,628,234 | | Interest Bearing Deposits | 5,770,059 | 5,414,332 | | Total Deposits | 8,312,505 | 8,042,566 | | Borrowings | 283,874 | 517,329 | | Total Liabilities | 8,736,526 | 8,691,160 | | Total Shareholders' Equity | 1,183,257 | 1,145,293 | [Consolidated Average Balance Sheets](index=8&type=section&id=Consolidated%20Average%20Balance%20Sheets) Average total assets for the three and six months ended June 30, 2024, decreased slightly compared to the prior year, primarily due to lower average investment securities, despite an increase in average loans Consolidated Average Balance Sheets (Three Months Ended June 30) | Metric | 2024 ($ thousand) | 2023 ($ thousand) | | :-------------------------- | :-------- | :-------- | | Average Investment Securities | 1,285,086 | 1,777,878 | | Average Loans | 7,587,127 | 7,132,025 | | Average Total Assets | 9,811,326 | 9,917,805 | | Average Total Deposits | 8,199,524 | 8,356,943 | | Average Total Shareholders' Equity | 1,171,347 | 1,091,016 | Consolidated Average Balance Sheets (Six Months Ended June 30) | Metric | 2024 ($ thousand) | 2023 ($ thousand) | | :-------------------------- | :-------- | :-------- | | Average Investment Securities | 1,326,807 | 1,792,199 | | Average Loans | 7,534,889 | 7,115,723 | | Average Total Assets | 9,837,352 | 9,987,953 | | Average Total Deposits | 8,206,321 | 8,401,788 | | Average Total Shareholders' Equity | 1,164,765 | 1,090,985 | [Detail of Other Income and Other Expense - Linked Quarters](index=10&type=section&id=Detail%20of%20Other%20Income%20and%20Other%20Expense%20-%20Linked%20Quarters) Other income for Q2 2024 increased quarter-over-quarter and year-over-year, primarily driven by higher income from fiduciary activities, while other expenses decreased quarter-over-quarter due to lower employee benefits and professional fees Detail of Other Income (Linked Quarters, $ thousand) | Metric | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | | Income from Fiduciary Activities | 10,728 | 10,024 | 8,943 | 9,100 | 8,816 | | Service Charges on Deposit Accounts | 2,214 | 2,106 | 2,054 | 2,109 | 2,041 | | Debit Card Fee Income | 6,580 | 6,243 | 6,583 | 6,652 | 6,830 | | Bank Owned Life Insurance Income | 1,565 | 2,629 | 1,373 | 1,448 | 1,332 | | Total Other Income | 28,794 | 26,200 | 15,519 | 27,713 | 25,015 | Detail of Other Expense (Linked Quarters, $ thousand) | Metric | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | | Salaries | 35,954 | 35,733 | 36,192 | 34,525 | 33,649 | | Employee Benefits | 9,873 | 11,560 | 10,088 | 10,822 | 10,538 | | Data Processing Fees | 9,542 | 8,808 | 9,605 | 9,700 | 9,582 | | Professional Fees and Services | 6,022 | 6,817 | 7,015 | 7,572 | 7,365 | | Total Other Expense | 75,189 | 77,228 | 79,043 | 77,808 | 75,885 | [Asset Quality Information](index=11&type=section&id=Asset%20Quality%20Information) This section provides an analysis of the company's asset quality, including allowance for credit losses, nonperforming assets, and individually evaluated commercial loans [Allowance for Credit Losses](index=11&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses increased slightly at the end of Q2 2024 compared to the previous quarter and year-end 2023, reflecting an increase in net charge-offs and provision for credit losses Allowance for Credit Losses (as of June 30, 2024 vs. March 31, 2024 & Year Ended 2023) | Metric | June 30, 2024 ($ thousand) | March 31, 2024 ($ thousand) | Year Ended 2023 ($ thousand) | | :------------------------------------ | :----------------- | :------------------ | :------------------- | | Allowance for Credit Losses, Beginning| 85,084 | 83,745 | 85,379 | | Net Charge-offs | 1,622 | 841 | 4,921 | | Provision for Credit Losses | 3,113 | 2,180 | 2,904 | | Allowance for Credit Losses, End | 86,575 | 85,084 | 83,745 | | Allowance for Credit Losses as % of Loans (%) | 1.13% | 1.13% | 1.12% | [Nonperforming Assets & Ratios](index=11&type=section&id=Nonperforming%20Assets%20%26%20Ratios) Total nonperforming loans and assets increased year-over-year, with nonaccrual loans being the primary component, though the percentage of nonperforming assets to total assets remained relatively stable quarter-over-quarter Nonperforming Assets (as of June 30, 2024 vs. March 31, 2024 & Year Ended 2023) | Metric | June 30, 2024 ($ thousand) | March 31, 2024 ($ thousand) | Year Ended 2023 ($ thousand) | | :-------------------------- | :----------------- | :------------------ | :------------------- | | Nonaccrual Loans | 71,368 | 70,189 | 60,259 | | Loans Past Due 90 Days or More | 1,377 | 1,570 | 859 | | Total Nonperforming Loans | 72,745 | 71,759 | 61,118 | | Other Real Estate Owned | 1,210 | 1,674 | 983 | | Total Nonperforming Assets | 73,955 | 73,433 | 62,101 | | % of Nonperforming Loans to Loans (%) | 0.95% | 0.95% | 0.82% | | % of Nonperforming Assets to Total Assets (%) | 0.75% | 0.74% | 0.63% | [New Nonaccrual Loan Information](index=12&type=section&id=New%20Nonaccrual%20Loan%20Information) New nonaccrual loans for Q2 2024 were **$13.18 million**, a decrease from Q1 2024, with resolved nonaccrual loans also showing a slight increase, leading to a modest rise in end-of-period nonaccrual loans New Nonaccrual Loan Information (Linked Quarters, $ thousand) | Metric | Q2 2024 | Q1 2024 | Year Ended 2023 | | :-------------------------- | :------ | :------ | :-------------- | | Nonaccrual Loans, Beginning | 70,189 | 60,259 | 79,696 | | New Nonaccrual Loans | 13,180 | 19,012 | 48,280 | | Resolved Nonaccrual Loans | 12,001 | 9,082 | 67,717 | | Nonaccrual Loans, End | 71,368 | 70,189 | 60,259 | [Individually Evaluated Commercial Loan Portfolio](index=12&type=section&id=Individually%20Evaluated%20Commercial%20Loan%20Portfolio) The unpaid principal balance of individually evaluated commercial loans remained stable quarter-over-quarter, with specific reserves also showing a slight increase Individually Evaluated Commercial Loan Portfolio (Period End, $ thousand) | Metric | June 30, 2024 | March 31, 2024 | Year Ended 2023 | | :-------------------------- | :------------ | :------------- | :-------------- | | Unpaid Principal Balance | 57,184 | 57,053 | 47,564 | | Remaining Principal Balance | 54,993 | 54,742 | 45,215 | | Specific Reserves | 5,311 | 5,032 | 4,983 | | Book Value, After Specific Reserves | 49,682 | 49,710 | 40,232 | [Financial Reconciliations (Non-GAAP Measures)](index=13&type=section&id=Financial%20Reconciliations%20%28Non-GAAP%20Measures%29) This section provides reconciliations of non-GAAP financial measures, including adjusted performance metrics, tangible assets and equity, and pre-tax, pre-provision net income [Adjusted Financial Performance](index=13&type=section&id=Adjusted%20Financial%20Performance) Adjusted financial metrics for Q2 and H1 2024 show slightly lower net income and diluted EPS compared to reported figures, after accounting for specific adjustments related to acquisitions, debt securities, and strategic initiatives Adjusted Financial Performance (Q2 2024 vs. Q1 2024 & Q2 2023) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :------------------------------------ | :------ | :------ | :------ | | Net Interest Income - Adjusted ($ thousand) | 97,561 | 95,269 | 91,395 | | Provision for Credit Losses - Adjusted ($ thousand) | 3,230 | 3,133 | 2,517 | | Other Income - Adjusted ($ thousand) | 27,982 | 26,625 | 25,015 | | Other Expense - Adjusted ($ thousand) | 74,869 | 76,908 | 75,557 | | Net Income - Adjusted ($ thousand) | 38,670 | 34,760 | 31,684 | | Diluted EPS - Adjusted | $2.38 | $2.15 | $1.95 | Adjusted Financial Performance (Six Months Ended June 30, 2024 vs. 2023) | Metric | H1 2024 | H1 2023 | | :------------------------------------ | :------ | :------ | | Net Interest Income - Adjusted ($ thousand) | 192,830 | 182,819 | | Provision for Credit Losses - Adjusted ($ thousand) | 6,363 | 3,423 | | Other Income - Adjusted ($ thousand) | 54,607 | 49,267 | | Other Expense - Adjusted ($ thousand) | 151,777 | 151,633 | | Net Income - Adjusted ($ thousand) | 73,430 | 64,465 | | Diluted EPS - Adjusted | $4.53 | $3.96 | [Adjusted Performance Ratios](index=13&type=section&id=Adjusted%20Performance%20Ratios) Adjusted performance ratios for Q2 and H1 2024 generally show slightly lower profitability metrics compared to reported figures, reflecting the impact of non-GAAP adjustments, while efficiency ratios remain strong Adjusted Performance Ratios (Q2 2024 vs. Q1 2024 & Q2 2023) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :------------------------------------ | :------ | :------ | :------ | | Annualized Return on Average Assets, Adjusted (%) | 1.59% | 1.42% | 1.28% | | Annualized Return on Average Shareholders' Equity, Adjusted (%) | 13.28% | 12.07% | 11.65% | | Annualized Return on Average Tangible Equity, Adjusted (%) | 15.44% | 14.06% | 13.73% | | Efficiency Ratio, Adjusted (%) | 59.35% | 62.78% | 64.40% | | Annualized Net Interest Margin, Adjusted (%) | 4.38% | 4.26% | 4.06% | Adjusted Performance Ratios (Six Months Ended June 30, 2024 vs. 2023) | Metric | H1 2024 | H1 2023 | | :------------------------------------ | :------ | :------ | | Annualized Return on Average Assets, Adjusted (%) | 1.50% | 1.30% | | Annualized Return on Average Shareholders' Equity, Adjusted (%) | 12.68% | 11.92% | | Annualized Return on Average Tangible Equity, Adjusted (%) | 14.76% | 14.04% | | Efficiency Ratio, Adjusted (%) | 61.04% | 64.82% | | Annualized Net Interest Margin, Adjusted (%) | 4.32% | 4.05% | [Reconciliation of Tangible Assets and Equity](index=14&type=section&id=Reconciliation%20of%20Tangible%20Assets%20and%20Equity) Reconciliations show that tangible assets and equity are derived by subtracting goodwill and other intangible assets from total assets and shareholders' equity, providing a clearer view of the company's physical and financial capital Reconciliation of Average Assets to Average Tangible Assets ($ thousand) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | H1 2024 | H1 2023 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | | Average Assets | 9,811,326 | 9,863,378 | 9,917,805 | 9,837,352 | 9,987,953 | | Less: Average Goodwill & Other Intangible Assets | 163,816 | 164,137 | 165,129 | 163,977 | 165,292 | | Average Tangible Assets | 9,647,510 | 9,699,241 | 9,752,676 | 9,673,375 | 9,822,661 | Reconciliation of Total Assets to Tangible Assets ($ thousand) | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :------------------------------------ | :------------ | :------------- | :------------ | | Total Assets | 9,919,783 | 9,881,077 | 9,899,551 | | Less: Goodwill & Other Intangible Assets | 163,607 | 163,927 | 164,915 | | Tangible Assets | 9,756,176 | 9,717,150 | 9,734,636 | Reconciliation of Total Shareholders' Equity to Tangible Equity ($ thousand) | Metric | June 30, 2024 | March 31, 2024 | June 30, 2023 | | :------------------------------------ | :------------ | :------------- | :------------ | | Total Shareholders' Equity | 1,183,257 | 1,161,979 | 1,088,757 | | Less: Goodwill & Other Intangible Assets | 163,607 | 163,927 | 164,915 | | Tangible Equity | 1,019,650 | 998,052 | 923,842 | [Reconciliation of Pre-Tax, Pre-Provision Net Income](index=15&type=section&id=Reconciliation%20of%20Pre-Tax%2C%20Pre-Provision%20Net%20Income) Pre-tax, pre-provision (PTPP) net income, a key metric for assessing operating performance, increased significantly for both the quarter and six months ended June 30, 2024, compared to the prior year Reconciliation of Pre-Tax, Pre-Provision Net Income ($ thousand) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | H1 2024 | H1 2023 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Net Income | 39,369 | 35,204 | 31,584 | 74,573 | 65,317 | | Plus: Income Taxes | 8,960 | 7,211 | 6,626 | 16,171 | 12,792 | | Plus: Provision for Credit Losses | 3,113 | 2,180 | 2,492 | 5,293 | 2,675 | | Pre-tax, Pre-provision Net Income | 51,442 | 44,595 | 40,702 | 96,037 | 80,784 | - PTPP net income is a common industry metric used to assess operating performance by excluding the impact of the provision for credit losses[63](index=63&type=chunk) [Reconciliation of Fully Taxable Equivalent Net Interest Income](index=15&type=section&id=Reconciliation%20of%20Fully%20Taxable%20Equivalent%20Net%20Interest%20Income) The fully taxable equivalent (FTE) net interest income, which adjusts for the tax-exempt status of certain interest income, shows a higher net interest income compared to the reported figures, indicating the benefit of tax-exempt investments Reconciliation of Fully Taxable Equivalent Net Interest Income ($ thousand) | Metric | Q2 2024 | Q1 2024 | Q2 2023 | H1 2024 | H1 2023 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | | Interest Income | 128,904 | 126,640 | 114,674 | 255,544 | 225,575 | | Fully Taxable Equivalent Adjustment | 605 | 616 | 920 | 1,221 | 1,846 | | Fully Taxable Equivalent Interest Income | 129,509 | 127,256 | 115,594 | 256,765 | 227,421 | | Interest Expense | 31,067 | 31,017 | 23,102 | 62,084 | 41,805 | | Fully Taxable Equivalent Net Interest Income | 98,442 | 96,239 | 92,492 | 194,681 | 185,616 | - The efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income, using a **21% corporate federal income tax rate** for FTE adjustments[63](index=63&type=chunk) [Footnote Explanations](index=14&type=section&id=Footnote%20Explanations) This section provides detailed explanations for the footnotes (a) through (k) referenced throughout the financial tables, clarifying the methodologies and definitions used for various financial metrics and adjustments, including the adoption of ASU 2022-02 - Footnotes (a) through (k) provide explanations for reported measures, average calculations, tangible equity/assets definitions, efficiency ratio calculation, adjusted net income methodology, tax effect assumptions, and the definition of pre-tax, pre-provision net income[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[63](index=63&type=chunk) - Effective January 1, 2023, Park adopted ASU 2022-02, which eliminated the concept of troubled debt restructurings (TDRs), resulting in a decrease in total nonperforming loans and assets by **$20.1 million** and individually evaluated loans by **$11.5 million**[64](index=64&type=chunk)

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]

Park National (PRK) shares rallied 4.6% in the last trading session to close at $161.56. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.1% gain over the past four weeks. Shares of Park National rallied for the seventh straight trading session and hit a 52-week high of $161.93. Encouraging inflation numbers and a rising unemployment rate are giving confidence to the Federal Reserve that prices will eventua ...

Core Points - Park National Corporation's board of directors has elected Karen Morrison and Kelly Gratz as new directors effective July 1, 2024, expanding the board to 16 members [1][2] - Both Morrison and Gratz will also join the board of The Park National Bank, Park's banking subsidiary, on the same date [1] - Gratz is the CEO of G2O with over 35 years of experience in technology, healthcare, and pharmaceuticals [2] - Morrison serves as president of the OhioHealth Foundation and has over 30 years of experience with OhioHealth [4][5] - Both directors will serve on the board's Risk Committee, with Morrison's term expiring in 2026 and Gratz's in 2027 [7] Company Overview - Park National Corporation is headquartered in Newark, Ohio, and has total assets of $9.9 billion as of March 31, 2024 [8] - The company's banking operations are conducted through its subsidiary, The Park National Bank, along with other subsidiaries including Scope Leasing, Guardian Financial Services, and SE Property Holdings [8]