Park National (PRK) - 2024 Q3 - Quarterly Results

Financial Performance - Park National Corporation's net income for Q3 2024 was $38.2 million, a 3.5$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$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$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$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$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$8,710,068 thousand from $8,862,437 thousand, a reduction of 1.72$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$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$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$2,713,152,000, an increase of 18.0% from Q2 2024 and 78.3% from Q3 2023[10]