Park National Corporation reports financial results for third quarter and first nine months of 2024
NEWARK, Ohio, Oct. 28, 2024 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE:PRK) today reported financial results for the third quarter and first nine months of 2024. Park's board of directors declared a quarterly cash dividend of $1.06 per common share and a special one-time dividend of $0.50 per common share, both payable on December 10, 2024, to common shareholders of record as of November 15, 2024.
"Our bankers remain unwavering in their desire to serve more and find creative ways to meet the needs of our customers," said Park Chairman and Chief Executive Officer David Trautman. "Our bankers are diligent, compassionate and resilient. We saw it firsthand this month as Park bankers and customers in the Carolinas and Florida weathered hurricanes Helene and Milton and overcame extreme challenges and devastation. I couldn't be prouder of our team and how they stepped up to take care of each other and their communities."
Park's net income for the third quarter of 2024 was $38.2 million, a 3.5 percent increase from $36.9 million for the third quarter of 2023. Third quarter 2024 net income per diluted common share was $2.35, compared to $2.28 for the third quarter of 2023. Park's net income for the first nine months of 2024 was $112.8 million, a 10.3 percent increase from $102.2 million for the first nine months of 2023. Net income per diluted common share for the first nine months of 2024 was $6.95 compared to $6.29 for the first nine months of 2023.
Park's total loans increased 3.4 percent (4.6 percent annualized) during the first nine months of 2024 and increased 5.2 percent for the 12-month period ended September 30, 2024.
Park's total deposits increased 2.1 percent (2.9 percent annualized) during the first nine months of 2024 and decreased 0.4 percent for the 12-month period ended September 30, 2024. The combination of solid loan growth and steady deposits resulted in a net interest margin of 4.45 percent for the three months ended September 30, 2024, compared to 4.39 percent for the three months ended June 30, 2024, and 4.12 percent for the three months ended September 30, 2023. For the first nine months of 2024, the net interest margin was 4.37 percent compared to 4.09 percent for the first nine months of 2023.
"We have enjoyed consistent loan growth in 2024, coupled with disciplined control of funding costs and exceptional customer service, resulting in near-record earnings," said Park President Matthew Miller. "Our performance is driven by our bankers' commitment to produce exceptional results for our customers, communities and shareholders."
Headquartered in Newark, Ohio, Park National Corporation has $9.9 billion in total assets (as of September 30, 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
Media contact: Michelle Hamilton, 740-349-6014,
Investor contact: Brady Burt, 740-322-6844,
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; and (22) 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 September 30, 2024, June 30, 2024 and September 30, 2023
2024
2024
2023
Percent change vs.
(in thousands, except common share and per common share data and ratios)
3rd QTR
2nd QTR
3rd QTR
2Q '24
3Q '23
INCOME STATEMENT:
Net interest income
$
101,114
$
97,837
$
94,269
3.3
%
7.3
%
Provision for (recovery of) credit losses
5,315
3,113
(1,580
)
70.7
%
N.M.
Other income
36,530
28,794
27,713
26.9
%
31.8
%
Other expense
85,681
75,189
77,808
14.0
%
10.1
%
Income before income taxes
$
46,648
$
48,329
$
45,754
(3.5)%
2.0
%
Income taxes
8,431
8,960
8,837
(5.9)%
(4.6)%
Net income
$
38,217
$
39,369
$
36,917
(2.9)%
3.5
%
MARKET DATA:
Earnings per common share - basic (a)
$
2.37
$
2.44
$
2.29
(2.9)%
3.5
%
Earnings per common share - diluted (a)
2.35
2.42
2.28
(2.9)%
3.1
%
Quarterly cash dividend declared per common share
1.06
1.06
1.05
—
%
1.0
%
Book value per common share at period end
76.74
73.27
67.41
4.7
%
13.8
%
Market price per common share at period end
167.98
142.34
94.52
18.0
%
77.7
%
Market capitalization at period end
2,713,152
2,298,723
1,522,096
18.0
%
78.3
%
Weighted average common shares - basic (b)
16,151,640
16,149,523
16,133,310
—
%
0.1
%
Weighted average common shares - diluted (b)
16,264,393
16,239,617
16,217,880
0.2
%
0.3
%
Common shares outstanding at period end
16,151,640
16,149,523
16,103,425
—
%
0.3
%
PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)
1.53
%
1.61
%
1.47
%
(5.0)%
4.1
%
Return on average shareholders' equity (a)(b)
12.56
%
13.52
%
13.28
%
(7.1)%
(5.4)%
Yield on loans
6.24
%
6.13
%
5.65
%
1.8
%
10.4
%
Yield on investment securities
3.74
%
3.83
%
3.73
%
(2.3)%
0.3
%
Yield on money market instruments
5.38
%
5.33
%
5.34
%
0.9
%
0.7
%
Yield on interest earning assets
5.88
%
5.78
%
5.27
%
1.7
%
11.6
%
Cost of interest bearing deposits
2.06
%
1.99
%
1.63
%
3.5
%
26.4
%
Cost of borrowings
3.97
%
4.08
%
3.92
%
(2.7)%
1.3
%
Cost of paying interest bearing liabilities
2.15
%
2.10
%
1.76
%
2.4
%
22.2
%
Net interest margin (g)
4.45
%
4.39
%
4.12
%
1.4
%
8.0
%
Efficiency ratio (g)
61.98
%
59.09
%
63.25
%
4.9
%
(2.0)%
OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Tangible book value per common share (d)
$
66.62
$
63.14
$
57.19
5.5
%
16.5
%
Average interest earning assets
9,100,594
9,016,905
9,178,281
0.9
%
(0.8)%
Pre-tax, pre-provision net income (j)
51,963
51,442
44,174
1.0
%
17.6
%
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 September 30, 2024, June 30, 2024 and September 30, 2023
Percent change vs.
(in thousands, except ratios)
September 30, 2024
June 30, 2024
September 30, 2023
2Q '24
3Q '23
BALANCE SHEET:
Investment securities
$
1,233,297
$
1,264,858
$
1,708,827
(2.5)%
(27.8)%
Loans
7,730,984
7,664,377
7,349,745
0.9
%
5.2
%
Allowance for credit losses
87,237
86,575
84,602
0.8
%
3.1
%
Goodwill and other intangible assets
163,320
163,607
164,581
(0.2)%
(0.8)%
Other real estate owned (OREO)
1,119
1,210
1,354
(7.5)%
(17.4)%
Total assets
9,903,049
9,919,783
10,000,914
(0.2)%
(1.0)%
Total deposits
8,214,671
8,312,505
8,244,724
(1.2)%
(0.4)%
Borrowings
306,964
283,874
541,811
8.1
%
(43.3)%
Total shareholders' equity
1,239,413
1,183,257
1,085,564
4.7
%
14.2
%
Tangible equity (d)
1,076,093
1,019,650
920,983
5.5
%
16.8
%
Total nonperforming loans
71,541
72,745
55,635
(1.7)%
28.6
%
Total nonperforming assets
72,660
73,955
56,989
(1.8)%
27.5
%
ASSET QUALITY RATIOS:
Loans as a % of period end total assets
78.07
%
77.26
%
73.49
%
1.0
%
6.2
%
Total nonperforming loans as a % of period end loans
0.93
%
0.95
%
0.76
%
(2.1)%
22.4
%
Total nonperforming assets as a % of period end loans + OREO + other nonperforming assets
0.94
%
0.96
%
0.78
%
(2.1)%
20.5
%
Allowance for credit losses as a % of period end loans
1.13
%
1.13
%
1.15
%
—
%
(1.7)%
Net loan charge-offs
$
4,653
$
1,622
$
1,024
186.9
%
354.4
%
Annualized net loan charge-offs as a % of average loans (b)
0.24
%
0.09
%
0.06
%
166.7
%
300.0
%
CAPITAL & LIQUIDITY:
Total shareholders' equity / Period end total assets
12.52
%
11.93
%
10.85
%
4.9
%
15.4
%
Tangible equity (d) / Tangible assets (f)
11.05
%
10.45
%
9.36
%
5.7
%
18.1
%
Average shareholders' equity / Average assets (b)
12.20
%
11.94
%
11.07
%
2.2
%
10.2
%
Average shareholders' equity / Average loans (b)
15.76
%
15.44
%
15.17
%
2.1
%
3.9
%
Average loans / Average deposits (b)
92.69
%
92.53
%
86.69
%
0.2
%
6.9
%
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
Nine months ended September 30, 2024 and September 30, 2023
2024
2023
(in thousands, except common share and per common share data and ratios)
Nine months ended September 30
Nine months ended September 30
Percent change vs '23
INCOME STATEMENT:
Net interest income
$
294,574
$
278,039
5.9
%
Provision for credit losses
10,608
1,095
N.M.
Other income
91,524
77,115
18.7
%
Other expense
238,098
230,196
3.4
%
Income before income taxes
$
137,392
$
123,863
10.9
%
Income taxes
24,602
21,629
13.7
%
Net income
$
112,790
$
102,234
10.3
%
MARKET DATA:
Earnings per common share - basic (a)
$
6.99
$
6.32
10.6
%
Earnings per common share - diluted (a)
6.95
6.29
10.5
%
Quarterly cash dividend declared per common share
3.18
3.15
1.0
%
Weighted average common shares - basic (b)
16,139,335
16,180,261
(0.3)%
Weighted average common shares - diluted (b)
16,231,766
16,261,109
(0.2)%
PERFORMANCE RATIOS: (annualized)
Return on average assets (a)(b)
1.53
%
1.37
%
11.7
%
Return on average shareholders' equity (a)(b)
12.77
%
12.48
%
2.3
%
Yield on loans
6.12
%
5.44
%
12.5
%
Yield on investment securities
3.83
%
3.69
%
3.8
%
Yield on money market instruments
5.41
%
4.94
%
9.5
%
Yield on interest earning assets
5.77
%
5.08
%
13.6
%
Cost of interest bearing deposits
2.00
%
1.42
%
40.8
%
Cost of borrowings
4.11
%
3.56
%
15.4
%
Cost of paying interest bearing liabilities
2.11
%
1.55
%
36.1
%
Net interest margin (g)
4.37
%
4.09
%
6.8
%
Efficiency ratio (g)
61.38
%
64.29
%
(4.5)%
ASSET QUALITY RATIOS:
Net loan charge-offs
$
7,116
$
2,255
215.6
%
Net loan charge-offs as a % of average loans (b)
0.13
%
0.04
%
225.0
%
CAPITAL & LIQUIDITY
Average shareholders' equity / Average Assets (b)
11.96
%
10.97
%
9.0
%
Average shareholders' equity / Average loans (b)
15.56
%
15.28
%
1.8
%
Average loans / Average deposits (b)
92.11
%
85.37
%
7.9
%
OTHER DATA (NON-GAAP) AND BALANCE SHEET INFORMATION:
Average interest earning assets
9,055,400
9,189,014
(1.5)%
Pre-tax, pre-provision net income (j)
148,000
124,958
18.4
%
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
Nine Month Ended
September 30
September 30
(in thousands, except share and per share data)
2024
2023
2024
2023
Interest income:
Interest and fees on loans
$
120,203
$
103,258
$
346,732
$
291,300
Interest on debt securities:
Taxable
10,228
13,321
33,077
39,731
Tax-exempt
1,381
2,900
4,173
8,718
Other interest income
1,996
1,410
5,370
6,715
Total interest income
133,808
120,889
389,352
346,464
Interest expense:
Interest on deposits:
Demand and savings deposits
22,762
20,029
62,987
52,309
Time deposits
7,073
3,097
21,936
6,410
Interest on borrowings
2,859
3,494
9,855
9,706
Total interest expense
32,694
26,620
94,778
68,425
Net interest income
101,114
94,269
294,574
278,039
Provision for (recovery of) credit losses
5,315
(1,580
)
10,608
1,095
Net interest income after provision for (recovery of) credit losses
95,799
95,849
283,966
276,944
Other income
36,530
27,713
91,524
77,115
Other expense
85,681
77,808
238,098
230,196
Income before income taxes
46,648
45,754
137,392
123,863
Income taxes
8,431
8,837
24,602
21,629
Net income
$
38,217
$
36,917
$
112,790
$
102,234
Per common share:
Net income - basic
$
2.37
$
2.29
$
6.99
$
6.32
Net income - diluted
$
2.35
$
2.28
$
6.95
$
6.29
Weighted average common shares - basic
16,151,640
16,133,310
16,139,335
16,180,261
Weighted average common shares - diluted
16,264,393
16,217,880
16,231,766
16,261,109
Cash dividends declared:
Quarterly dividend
$
1.06
$
1.05
$
3.18
$
3.15
PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(in thousands, except share data)
September 30, 2024
December 31, 2023