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