Park National (US:PRK)2025-08-04 20:17Financial Performance - Net income for the three months ended June 30, 2025, was $48,119 thousand, up 22.2% from $39,369 thousand in the prior year[22]. - Earnings per common share increased to $2.98 for the three months ended June 30, 2025, compared to $2.44 for the same period in 2024, marking a growth of 22.1%[22]. - Net income for the six months ended June 30, 2025, was $90,276,000, an increase of 21% compared to $74,573,000 for the same period in 2024[28]. - Comprehensive income for the three months ended June 30, 2025, was $51,271 thousand, compared to $37,310 thousand in 2024, indicating a growth of 37.5%[24]. - Segment net income for the three months ended June 30, 2025, was $48,119 thousand, compared to $39,369 thousand in 2024, indicating a growth of 22.2%[193]. Asset and Loan Growth - Total assets increased to $9,949,578 thousand as of June 30, 2025, up from $9,805,350 thousand at December 31, 2024, representing a growth of 1.46%[18]. - Net loans rose to $7,873,436 thousand, an increase of 1.87% from $7,729,162 thousand at the end of 2024[18]. - Total deposits reached $8,237,766 thousand, reflecting a 1.16% increase from $8,143,526 thousand at December 31, 2024[19]. - The total loan portfolio increased to $7,963,221,000 as of June 30, 2025, up from $7,817,128,000 at December 31, 2024, representing a growth of approximately 1.87%[54]. - The total carrying amount of other investment securities at June 30, 2025 was $108.0 million, up from $104.2 million at December 31, 2024[48]. Income and Revenue - Net interest income for the three months ended June 30, 2025, was $108,991 thousand, a 11.3% increase compared to $97,837 thousand for the same period in 2024[21]. - Total consolidated revenues for the six months ended June 30, 2025, reached $326,628 thousand, up from $310,538 thousand in 2024, reflecting a year-over-year increase of 5.2%[194]. - Total other income for the three months ended June 30, 2025, was $32,186 thousand, an increase from $28,794 thousand in 2024, marking a growth of 8.3%[195]. - Income from fiduciary activities for the three months ended June 30, 2025, was $11,622 thousand, compared to $10,128 thousand in 2024, reflecting a growth of 14.8%[195]. Credit Quality and Losses - The allowance for credit losses on loans was $89,785 thousand as of June 30, 2025, slightly up from $87,966 thousand at December 31, 2024[19]. - The provision for credit losses decreased to $3,609,000 in 2025 from $5,293,000 in 2024, indicating improved credit quality[28]. - Nonperforming loans totaled $65,507,000 as of June 30, 2025, down from $69,932,000 at December 31, 2024, reflecting a decrease of approximately 6.9%[58][59]. - The total charge-offs for the six months ended June 30, 2025, were $7,564,000, compared to $6,337,000 for the same period in 2024, representing an increase of approximately 19%[104]. - Net charge-offs for the three months ended June 30, 2025, totaled $1,198,000, compared to $1,622,000 for the same period in 2024, indicating a reduction of about 26%[104]. Shareholder Returns - Regular cash dividends declared per common share increased to $1.07 for the three months ended June 30, 2025, compared to $1.06 in the same period of 2024[22]. - The company repurchased 120,000 common shares to be held as treasury shares, costing $20,134,000[29]. - Cash dividends paid increased slightly to $35,418,000 in 2025 from $35,113,000 in 2024[29]. Economic and Regulatory Environment - The most likely scenario for Ohio unemployment is forecasted to be between 5.02% and 5.35% for the next four quarters as of June 30, 2025, reflecting ongoing economic uncertainties[101]. - ASU 2024-03 requires public business entities to disclose disaggregated income statement expenses, effective for fiscal years beginning after December 15, 2026[39]. - The company has established a one-year reasonable and supportable forecast period with a one-year straight-line reversion to the long-term historical average for credit loss estimates[101]. Investment and Securities - As of June 30, 2025, Park's investment securities totaled $954.5 million, with $795.3 million in an unrealized loss position, resulting in aggregate unrealized losses of $62.0 million[41]. - The amortized cost of debt securities AFS at June 30, 2025 was $1,015.6 million, with a fair value of $954.5 million, indicating a loss of approximately 6%[40]. - Investment securities with a fair value of $682.1 million were pledged as collateral for various financial obligations as of June 30, 2025[46]. Operational Metrics - The company serviced sold mortgage loans amounting to $1.84 billion as of June 30, 2025, a decrease from $1.86 billion at December 31, 2024[121]. - The carrying amounts of foreclosed real estate properties totaled $638,000 as of June 30, 2025, compared to $938,000 at December 31, 2024[120]. - The company reported a total of $6,607 thousand in debit card fee income for the three months ended June 30, 2025, slightly up from $6,580 thousand in 2024, an increase of 0.4%[195].