NEWARK, Ohio, April 19, 2024 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE:PRK) today reported financial results for the first quarter of 2024. Park's board of directors declared a quarterly cash dividend of $1.06 per common share, payable on June 10, 2024, to common shareholders of record as of May 17, 2024. "Park bankers meet customers when, where and how they wish. In doing so, we remain alert to service opportunities of all types," said Park Chairman and Chief Executive Officer David Trautman. "Our consistent and predictable approach helps build long-lasting relationships that customers tell us they value." Park's net income for the first quarter of 2024 was $35.2 million, a 4.4 percent increase from $33.7 million for the first quarter of 2023. First quarter 2024 net income per diluted common share was $2.17, compared to $2.07 for the first quarter of 2023. Park's total loans increased 0.7 percent (2.6 percent annualized) during the first quarter of 2024 and increased 6.1% for the 12-month period ended March 31, 2024. "We prioritize being readily available for customers and prospects, as highlighted by our loan growth over the most recent 12-month period," said Park President Matthew Miller. "Our bankers find joy in serving others and look for opportunities to make a meaningful impact within each of our communities." Headquartered in Newark, Ohio, Park National Corporation has $9.9 billion in total assets (as of March 31, 2024). Park's banking operations are conducted through its subsidiary, The Park National Bank. Other Park subsidiaries are Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Financial Services Company (d.b.a. Guardian Finance Company) and SE Property Holdings, LLC. Complete financial tables are listed below. Category: Earnings SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Park cautions that any forward-looking statements contained in this news release or made by management of Park are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties, including those described in Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by our filings with the SEC. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation: (1) Park's ability to execute our business plan successfully and within the expected timeframe; (2) adverse changes in future economic and financial market conditions; (3) adverse changes in real estate values and liquidity in our primary market areas; (4) the financial health of our commercial borrowers; (5) adverse changes in federal, state and local governmental law and policy, including the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation, government shutdown, infrastructure spending and social programs; (6) changes in consumer spending, borrowing and saving habits; (7) our litigation and regulatory compliance exposure; (8) increased credit risk and higher credit losses resulting from loan concentrations; (9) competitive pressures among financial services organizations; (10) changes in accounting policies and practices as may be adopted by regulatory agencies; (11) Park's assumptions and estimates used in applying critical accounting policies and modeling which may prove unreliable, inaccurate or not predictive of actual results; (12) Park's ability to anticipate and respond to technological changes and Park's reliance on, and the potential failure of, a number of third-party vendors to perform as expected; (13) failures in or breaches of Park's operational or security systems or infrastructure, or those of our third-party vendors and other service providers; (14) negative impacts on financial markets and the economy of any changes in the credit ratings of the U.S. Treasury obligations and other U.S. government-backed debt, as well as issues surrounding the levels of U.S., European and Asian government debt and concerns regarding the growth rates and financial stability of certain sovereign governments, supranationals and financial institutions in Europe and Asia; (15) effects of a fall in stock market prices on Park's asset and wealth management businesses; (16) continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; (17) the impact on Park's business, personnel, facilities or systems of losses related to acts of fraud, scams and schemes of third parties; (18) the impact of widespread natural and other disasters, pandemics, dislocations, regional or national protests and civil unrest (including any resulting branch closures or damages), military or terrorist activities or international hostilities on the economy and financial markets generally and on us or our counterparties specifically; (19) the potential further deterioration of the U.S. economy due to financial, political, or other shocks; (20) the effect of healthcare laws in the U.S. and potential changes for such laws that may increase our healthcare and other costs and negatively impact our operations and financial results; (21) the impact of larger or similar-sized financial institutions encountering problems that may adversely affect the banking industry; (22) and other risk factors relating to the financial services industry. Park does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement was made, or reflect the occurrence of unanticipated events, except to the extent required by law.   PARK NATIONAL CORPORATION Financial Highlights As of or for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023                   2024     2023     2023     Percent change vs. (in thousands, except common share and per common share data and ratios) 1st QTR 4th QTR 1st QTR   4Q '23 1Q '23 INCOME STATEMENT:             Net interest income $ 95,623   $ 95,074   $ 92,198     0.6 % 3.7 % Provision for credit losses   2,180     1,809     183     20.5 % N.M. Other income   26,200     15,519     24,387     68.8 % 7.4 % Other expense   77,228     79,043     76,503     (2.3 )% 0.9 % Income before income taxes $ 42,415   $ 29,741   $ 39,899     42.6 % 6.3 % Income taxes   7,211     5,241     6,166     37.6 % 16.9 % Net income $ 35,204   $ 24,500   $ 33,733     43.7 % 4.4 %               MARKET DATA:             Earnings per common share - basic (a) $ 2.18   $ 1.52   $ 2.08     43.4 % 4.8 % Earnings per common share - diluted (a)   2.17     1.51     2.07     43.7 % 4.8 % Quarterly cash dividend declared per common share   1.06     1.05     1.05     1.0 % 1.0 % Book value per common share at period end   71.95     71.06     66.91     1.3 % 7.5 % Market price per common share at period end   135.85     132.86     118.57     2.3 % 14.6 % Market capitalization at period end   2,199,556     2,141,235     1,917,759     2.7 % 14.7 %               Weighted average common shares - basic (b)   16,116,842     16,113,215     16,242,353     — % (0.8 )% Weighted average common shares - diluted (b)   16,191,065     16,216,562     16,324,823     (0.2 )% (0.8 )% Common shares outstanding at period end   16,149,523     16,116,479     16,174,067     0.2 % (0.2 )%               PERFORMANCE RATIOS: (annualized)             Return on average assets (a)(b)   1.44 %   0.98 %   1.36 %   46.9 % 5.9 % Return on average shareholders' equity (a)(b)   12.23 %   8.81 %   12.54 %   38.8 % (2.5 )% Yield on loans   5.99 %   5.84 %   5.24 %   2.6 % 14.3 % Yield on investment securities   3.90 %   3.88 %   3.60 %   0.5 % 8.3 % Yield on money market instruments   5.48 %   5.30 %   4.70 %   3.4 % 16.6 % Yield on interest earning assets   5.66 %   5.48 %   4.89 %   3.3 % 15.7 % Cost of interest bearing deposits   1.94 %   1.84 %   1.15 %   5.4 % 68.7 % Cost of borrowings   4.25 %   4.42 %   3.24 %   (3.8 )% 31.2 % Cost of paying interest bearing liabilities   2.08 %   2.01 %   1.29 %   3.5 % 61.2 % Net interest margin (g)   4.28 %   4.17 %   4.08 %   2.6 % 4.9 % Efficiency ratio (g)   63.07 %   70.93 %   65.10 %   (11.1 )% (3.1 )%               OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:             Tangible book value per common share (d) $ 61.80   $ 60.87   $ 56.69     1.5 % 9.0 % Average interest earning assets   9,048,204     9,120,407     9,267,418     (0.8 )% (2.4 )% Pre-tax, pre-provision net income (j)   44,595     31,550     40,082     41.3 % 11.3 %               Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.                             PARK NATIONAL CORPORATION Financial Highlights (continued) As of or for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023                         Percent change vs. (in thousands, except ratios) March 31,2024 December 31,2023 March 31,2023   4Q '23 1Q '23 BALANCE SHEET:             Investment securities $ 1,339,747   $ 1,429,144   $ 1,800,410     (6.3 )% (25.6 )% Loans   7,525,005     7,476,221     7,093,857     0.7 % 6.1 % Allowance for credit losses   85,084     83,745     85,946     1.6 % (1.0 )% Goodwill and other intangible assets   163,927     164,247     165,243     (0.2 )% (0.8 )% Other real estate owned (OREO)   1,674     983     1,468     70.3 % 14.0 % Total assets   9,881,077     9,836,453     9,856,981     0.5 % 0.2 % Total deposits   8,306,032     8,042,566     8,294,444     3.3 % 0.1 % Borrowings   295,130     517,329     360,843     (43.0 )% (18.2 )% Total shareholders' equity   1,161,979     1,145,293     1,082,153     1.5 % 7.4 % Tangible equity (d)   998,052     981,046     916,910     1.7 % 8.8 % Total nonperforming loans   71,759     61,118     74,365     17.4 % (3.5 )% Total nonperforming assets   73,433     62,101     75,833     18.2 % (3.2 )%               ASSET QUALITY RATIOS:             Loans as a % of period end total assets   76.16 %   76.01 %   71.97 %   0.2 % 5.8 % Total nonperforming loans as a % of period end loans   0.95 %   0.82 %   1.05 %   15.9 % (9.5 )% Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets   0.98 %   0.83 %   1.07 %   18.1 % (8.4 )% Allowance for credit losses as a % of period end loans   1.13 %   1.12 %   1.21 %   0.9 % (6.6 )% Net loan charge-offs (recoveries) $ 841   $ 2,666   $ (1 )   (68.5 )% N.M. Annualized net loan charge-offs (recoveries) as a % of average loans (b)   0.05 %   0.14 %   — %   (64.3 )% N.M.               CAPITAL & LIQUIDITY:             Total shareholders' equity / Period end total assets   11.76 %   11.64 %   10.98 %   1.0 % 7.1 % Tangible equity (d) / Tangible assets (f)   10.27 %   10.14 %   9.46 %   1.3 % 8.6 % Average shareholders' equity / Average assets (b)   11.74 %   11.16 %   10.85 %   5.2 % 8.2 % Average shareholders' equity / Average loans (b)   15.48 %   14.94 %   15.37 %   3.6 % 0.7 % Average loans / Average deposits (b)   91.11 %   89.48 %   84.04 %   1.8 % 8.4 %               Note: Explanations for footnotes (a) - (k) are included at the end of the financial tables in the "Financial Reconciliations" section.            PARK NATIONAL CORPORATION Consolidated Statements of Income           Three Months Ended   March 31 (in thousands, except share and per share data)   2024     2023         Interest income:       Interest and fees on loans $ 111,211   $ 91,614 Interest on debt securities:       Taxable   11,899     12,979 Tax-exempt   1,410     2,912 Other interest income   2,120     3,396 Total interest income   126,640     110,901         Interest expense:       Interest on deposits:       Demand and savings deposits   19,855     14,212 Time deposits   7,338     1,347 Interest on borrowings   3,824     3,144 Total interest expense   31,017     18,703         Net interest income   95,623     92,198         Provision for credit losses   2,180     183         Net interest income after provision for credit losses   93,443     92,015         Other income   26,200     24,387         Other expense   77,228     76,503         Income before income taxes   42,415     39,899         Income taxes   7,211     6,166         Net income $ 35,204   $ 33,733         Per common share:       Net income - basic $ 2.18   $ 2.08 Net income - diluted $ 2.17   $ 2.07         Weighted average common shares - basic   16,116,842     16,242,353 Weighted average common shares - diluted   16,191,065     16,324,823         Cash dividends declared:       Quarterly dividend $ 1.06   $ 1.05           PARK NATIONAL CORPORATION  Consolidated Balance Sheets       (in thousands, except share data) March 31, 2024 December 31, 2023       Assets           Cash and due from banks $ 112,117   $ 160,477   Money market instruments   193,964     57,791   Investment securities   1,339,747     1,429,144   Loans   7,525,005     7,476,221   Allowance for credit losses   (85,084 )   (83,745 ) Loans, net   7,439,921     7,392,476   Bank premises and equipment, net   73,818     74,211   Goodwill and other intangible assets   163,927     164,247   Other real estate owned   1,674     983   Other assets   555,909     557,124   Total assets $ 9,881,077   $ 9,836,453         Liabilities and Shareholders' Equity           Deposits:     Noninterest bearing $ 2,587,152   $ 2,628,234   Interest bearing   5,718,880     5,414,332   Total deposits   8,306,032     8,042,566   Borrowings   295,130     517,329   Other liabilities