Park National (PRK) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for the first quarter of 2025 was $42,157 thousand, up from $35,204 thousand in the first quarter of 2024, representing a year-over-year increase of 19.4%[21]. - Earnings per common share increased to $2.61 for the three months ended March 31, 2025, compared to $2.18 for the same period in 2024, a rise of 19.7%[21]. - Net interest income after provision for credit losses was $103,621 thousand for the three months ended March 31, 2025, compared to $93,443 thousand for the same period in 2024, marking an increase of 10.4%[20]. - Total consolidated revenues rose to $157,946,000 in Q1 2025, compared to $152,840,000 in Q1 2024, marking an increase of 3.3%[183]. - Segment net income improved to $42,157,000 in Q1 2025, up from $35,204,000 in Q1 2024, reflecting a growth of 19.4%[183]. - Pre-tax, pre-provision net income for Q1 2025 was $52.0 million, reflecting a 16.5% increase from $44.6 million in Q1 2024[212]. Asset and Liability Management - Total assets increased to $9,886,612 thousand as of March 31, 2025, up from $9,805,350 thousand at December 31, 2024, representing a growth of 0.83%[17]. - Total liabilities increased to $8,607,570 thousand as of March 31, 2025, from $8,561,502 thousand at December 31, 2024, an increase of 0.54%[18]. - Shareholders' equity rose to $1,279,042 thousand as of March 31, 2025, compared to $1,243,848 thousand at the end of 2024, reflecting an increase of 2.83%[18]. - Cash and cash equivalents at the end of the period were $237,614,000, down from $306,081,000, representing a decline of 22.4%[28]. - Total investment securities as of March 31, 2025, amounted to $938,239,000, down from $996,624,000 at the end of 2024[39]. Loan Performance - Net loans rose to $7,795,605 thousand, compared to $7,729,162 thousand at the end of 2024, reflecting an increase of 0.86%[17]. - Nonperforming loans totaled $63.1 million at March 31, 2025, consisting of $61.9 million in nonaccrual loans and $1.2 million in loans past due 90 days or more[56]. - The total amortized cost of loans at March 31, 2025, was $7,883.7 million, an increase from $7,817.1 million at December 31, 2024[52]. - The net loan originations for portfolio loans were $(65,674,000), an increase in outflows compared to $(49,533,000) in Q1 2024[28]. - The total loans past due 90 days or more and accruing amounted to $1,200,000[62]. Credit Losses and Provisions - Provision for credit losses decreased to $756,000 from $2,180,000, indicating a reduction of 65.3%[27]. - The Allowance for Credit Losses (ACL) at March 31, 2025, was $88.130 million, compared to $85.084 million at December 31, 2024, indicating an increase in provisions[96]. - The total allowance for nonaccrual loans was $1.044 million as of March 31, 2025, compared to $1.299 million at December 31, 2024, indicating a decrease of approximately 19.7%[169]. - The net charge-offs for the three months ended March 31, 2025, were $592, while the net charge-offs for the same period in 2024 were $841[96]. Investment and Other Income - Other comprehensive income for the first quarter of 2025 was $11,516 thousand, compared to a loss of $204 thousand in the first quarter of 2024[23]. - The company recognized tax credits and other benefits from affordable housing investments amounting to $2.8 million for the three months ended March 31, 2025, compared to $2.6 million for the same period in 2024[111]. - The total fair value of financial assets was $8.1 billion as of March 31, 2025, compared to $8.2 billion at December 31, 2024, indicating a decrease of approximately 1.2%[175]. Economic Outlook and Management Commentary - Management emphasized the importance of economic forecasts in determining the allowance for credit losses, which could significantly impact future earnings[205]. - The economic forecast considers various scenarios, with management maintaining a 50% weighting on both the "most likely" and "moderate recession" scenarios as of March 31, 2025[94]. - The adverse scenario analysis suggests a potential increase in the allowance for credit losses (ACL) of $28.3 million if only the adverse scenario is used[207].