Park National (US:PRK)2023-08-01 20:16Financial Performance - Net income for the three months ended June 30, 2023, was $31,584 thousand, down from $34,324 thousand in the prior year, reflecting a decrease of approximately 5.1%[18] - Earnings per common share (diluted) decreased to $1.94 for the three months ended June 30, 2023, from $2.10 in the same period of 2022, a decline of about 7.6%[18] - Comprehensive income for the six months ended June 30, 2023, was $70,925,000, compared to a loss of $27,360,000 for the same period in 2022[21] - Basic earnings per common share for the six months ended June 30, 2023, was $4.03, down from $4.51 in 2022, indicating a decline of about 10.6%[144] Asset and Loan Growth - Total assets increased to $9,899,551 thousand as of June 30, 2023, compared to $9,854,993 thousand at December 31, 2022, reflecting a growth of approximately 0.45%[14] - Net loans rose to $7,120,903 thousand, up from $7,056,512 thousand, indicating an increase of about 0.91%[14] - The loan portfolio at June 30, 2023, totaled $7.2 billion, up from $7.1 billion at the end of 2022, reflecting a growth of approximately 1.5%[51] - Total loans as of June 30, 2023, amounted to $48,342,000, with real estate loans at $33,305,000, business assets at $7,262,000, and other loans at $7,775,000[63] Income and Revenue - Net interest income after provision for credit losses was $89,080 thousand for the three months ended June 30, 2023, compared to $80,948 thousand for the same period in 2022, marking an increase of about 10.4%[17] - Total interest and dividend income for the three months ended June 30, 2023, was $114,674 thousand, up from $88,347 thousand in the prior year, indicating an increase of approximately 29.7%[17] - Total other income decreased to $25,015 thousand for the three months ended June 30, 2023, from $31,193 thousand in the same period of 2022, a decline of about 19.8%[18] - The company reported a loss on equity securities of $380,000 for the six months ended June 30, 2023, compared to a gain of $3,062,000 for the same period in 2022[199][201] Credit Losses and Allowance - The allowance for credit losses was $87.2 million as of June 30, 2023, compared to $85.4 million at the end of 2022[51] - The provision for credit losses for the three months ended June 30, 2023, was $2,492 million, reflecting management's assessment of credit risk[100] - The total charge-offs for the six months ended June 30, 2023, were $4,920,000, compared to $3,749,000 for the same period in 2022, showing an increase of 31.0%[104] - The net charge-offs for the three months ended June 30, 2023, amounted to $1.232 million, compared to a net recovery of $404,000 for the same period in 2022[100] Dividends and Share Repurchases - The company declared regular cash dividends of $1.05 per common share for the three months ended June 30, 2023, compared to $1.04 in the same period of 2022, an increase of approximately 0.96%[18] - During the three months ended June 30, 2023, Park repurchased 25,000 common shares, while 149,000 shares were repurchased during the six months, with no repurchases in the same periods of 2022[145] Investment and Securities - As of June 30, 2023, Park National Corporation's debt securities portfolio totaled $1.7 billion, with $1.5 billion in an unrealized loss position, reflecting unrealized losses of $115.8 million[39] - The fair value of mortgage loans held for sale was recorded at $3,486,000 as of June 30, 2023[170] - The carrying amount of mortgage servicing rights (MSRs) decreased from $15.70 million at June 30, 2022 to $15.24 million at June 30, 2023[122] Economic Outlook and Risk Management - Management continues to weigh the "most likely" and "moderate recession" scenarios equally at 50% each due to ongoing economic uncertainties[97] - The "most likely" scenario forecasted Ohio unemployment to range between 4.01% and 4.62% over the next four quarters as of June 30, 2023[97] - Management believes it has adequate tools to mitigate gradual interest rate changes, maintaining a modest overall impact on net income[399]