NEWARK, Ohio, Jan. 18, 2005 (PRIMEZONE) -- Park National Corporation (Park) (AMEX:PRK) today announced earnings for 2004. Net income for the year totaled $91.507 million, or $6.32 per diluted share, compared to net income of $86.878 million, or $5.97 per diluted share in 2003, representing increases of 5.3 percent in net income and 5.9 percent in net income per diluted share. Park also announced a regular cash dividend of $.90 per share, payable on March 10, 2005 to shareholders on record as of February 22, 2005.
For the fourth quarter of 2004, Park reported net income of $20.897 million, or $1.44 per diluted share, compared to the same period's net income in 2003 of $18.389 million, or $1.26 per diluted share. The fourth quarter showed an increase of 13.6 percent in net income and 14.3 percent in net income per diluted share.
"We are generally pleased with the results in 2004. Hard work and diligence of our associates brought a successful conclusion to a year of improving economic conditions coupled with opportunities to extend our presence in new markets," said Park Chairman C. Daniel DeLawder. "Our focus remains constant -- we will help individuals and businesses take advantage of low loan interest rates, offer flexible and innovative deposit services, and help trust and investment clients benefit from a stronger economic environment.
"We are well prepared for 2005 and eagerly anticipate the future. We are confident in our associates' ability to successfully meet the challenges before us and continue to fulfill our promises to customers in the communities we serve," he added.
On December 31, 2004, Park closed its plan and agreement of merger with First Federal Bancorp, Inc. and merged its subsidiary, First Federal Savings Bank of Eastern Ohio, with Park affiliate Century National Bank, headquartered in Zanesville, Ohio. Park closed the year with approximately $5.4 billion in assets, compared to about $5 billion at year-end 2003.
With the January 3rd closing of Park's acquisition of First Clermont Bank (near Cincinnati), Park's 12 community banks operate 124 full-service banking offices and 132 ATMs in 28 Ohio counties. Park also offers 8 offices of Guardian Finance Company in 7 Ohio counties.
Park National Corporation is an Ohio-based bank holding company headquartered in Newark, Ohio. Its significant subsidiaries include The Park National Bank, Fairfield National Division, The Richland Trust Company, Century National Bank, The First-Knox National Bank, Farmers and Savings Division, United Bank, N.A., Second National Bank, The Security National Bank and Trust Co., Unity National Division, The Citizens National Bank of Urbana, First Clermont Division, Scope Aircraft Finance, and Guardian Finance. For more information, visit www.parknationalcorp.com.
PARK NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
DECEMBER 31, 2004
INCOME STATEMENT
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
PERCENT PERCENT
2004 2003 CHANGE 2004 2003 CHANGE
------- ------- ------- -------- -------- -------
NET
INTEREST
INCOME $53,343 $49,486 7.79% $212,291 $202,637 4.76%
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PROVISION
FOR LOAN
LOSSES 2,485 3,170 -21.61% 8,600 12,595 -31.72%
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OTHER
INCOME 12,714 12,588 1.00% 52,641 61,583 -14.52%
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GAIN (LOSS)
ON SALE OF
SECURITIES (899) (673) (793) (6,060)
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OTHER
EXPENSE 33,378 32,459 2.83% 126,290 122,376 3.20%
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INCOME
BEFORE
TAXES 29,295 25,772 13.67% 129,249 123,189 4.92%
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NET INCOME 20,897 18,389 13.64% 91,507 86,878 5.33%
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NET INCOME
PER SHARE
-BASIC 1.46 1.27 14.96% 6.38 6.01 6.16%
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NET INCOME
PER SHARE
-DILUTED 1.44 1.26 14.29% 6.32 5.97 5.86%
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CASH
DIVIDENDS
PER SHARE 0.90 0.838 7.40% 3.414 3.209 6.39%
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RATIOS AND
OTHER
INFORMATION
RETURN ON
AVERAGE
ASSETS 1.64% 1.54% 1.81% 1.81%
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RETURN ON
AVERAGE
EQUITY 14.99% 13.68% 17.00% 16.69%
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YIELD ON
EARNING
ASSETS 5.88% 5.77% 5.80% 5.98%
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COST OF
PAYING
LIABILITIES 1.65% 1.57% 1.52% 1.68%
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NET INTEREST
MARGIN 4.55% 4.50% 4.56% 4.60%
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EFFICIENCY
RATIO 49.95% 51.56% 47.11% 45.66%
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NET LOAN
CHARGE-OFFS $3,346 $4,504 $7,864 $11,481
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NET CHARGE-
OFFS AS A
PERCENT
OF LOANS 0.46% 0.66% 0.28% 0.43%
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BALANCE SHEET
AT DECEMBER 31, PERCENT
2004 2003 CHANGE
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INVESTMENTS $1,926,782 $1,991,226 -3.24%
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LOANS 3,120,608 2,730,803 14.27%
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LOAN LOSS RESERVE 68,328 63,142 8.21%
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GOODWILL AND OTHER
INTANGIBLES 40,887 12,958 215.53%
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TOTAL ASSETS 5,412,584 5,034,956 7.50%
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DEPOSITS 3,689,861 3,414,249 8.07%
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BORROWINGS 1,074,024 1,002,736 7.11%
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EQUITY 562,561 543,041 3.59%
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BOOK VALUE PER SHARE 39.28 37.57 4.55%
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NONPERFORMING LOANS 19,867 21,373 -7.05%
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NONPERFORMING ASSETS 22,547 23,692 -4.83%
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PAST DUE 90 DAY LOANS 5,439 4,367 24.55%
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RATIOS
LOANS/ASSETS 57.65% 54.24%
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NONPERFORMING LOANS/LOANS 0.63% 0.78%
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PAST DUE 90 DAY LOANS/LOANS 0.17% 0.16%
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LOAN LOSS RESERVE/LOANS 2.19% 2.31%
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EQUITY/ASSETS 10.39% 10.79%
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PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except share data)
December 31,
-------------------------
2004 2003
---------------------------------------------------------------------
Assets
Cash and due from banks $ 155,529 $ 169,782
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Federal funds sold 6,300 0
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Interest bearing deposits 2,096 50
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Investment securities 1,926,782 1,991,226
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Loans (net of unearned interest) 3,120,608 2,730,803
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Allowance for possible loan losses 68,328 63,142
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Loans, net 3,052,280 2,667,661
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Bank premises and equipment, net 43,179 36,746
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Other assets 226,418 169,491
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Total assets $5,412,584 $5,034,956
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Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing $ 630,882 $ 547,793
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Interest bearing 3,058,979 2,866,456
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Total deposits 3,689,861 3,414,249
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Borrowings 1,074,024 1,002,736
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Other liabilities 86,138 74,930
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Total liabilities 4,850,023 4,491,915
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Stockholders' Equity:
Common stock (No par value;
20,000,000 shares authorized in 2004 and
2003; 15,269,707 shares issued in 2004
and 15,269,452 in 2003) 208,251 105,895
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Accumulated other comprehensive income,
net of taxes 12,442 18,954
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Retained earnings 433,260 486,769
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Treasury stock (949,480 shares in 2004 and
814,425 shares in 2003) (91,392) (68,577)
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Total stockholders' equity 562,561 543,041
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Total liabilities and stockholders'
equity $5,412,584 $5,034,956
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PARK NATIONAL CORPORATION
Consolidated Statements of Income
(dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2004 2003 2004 2003
--------------------------------------------- ----------------------
Interest income:
Interest and fees
on loans $ 46,791 $ 44,724 $ 178,853 $ 183,929
--------------------------------------------- ----------------------
Interest on:
Obligations of U.S.
Government, its
agencies and other
securities 21,092 17,428 86,806 73,753
--------------------------------------------- ----------------------
Obligations of
states and
political sub-
divisions 1,211 1,462 5,115 6,168
--------------------------------------------- ----------------------
Other interest
income 136 130 219 779
--------------------------------------------- ----------------------
Total interest
income 69,230 63,744 270,993 264,629
--------------------------------------------- ----------------------
Interest expense:
Interest on deposits:
Demand and savings
deposits 2,061 1,623 6,895 8,026
--------------------------------------------- ----------------------
Time deposits 8,344 9,090 33,103 40,574
--------------------------------------------- ----------------------
Interest on
borrowings 5,482 3,545 18,704 13,392
--------------------------------------------- ----------------------
Total interest
expense 15,887 14,258 58,702 61,992
--------------------------------------------- ----------------------
Net interest
income 53,343 49,486 212,291 202,637
--------------------------------------------- ----------------------
Provision for loan
losses 2,485 3,170 8,600 12,595
--------------------------------------------- ----------------------
Net interest income
after provision
for loan losses 50,858 46,316 203,691 190,042
--------------------------------------------- ----------------------
Other income 12,714 12,588 52,641 61,583
--------------------------------------------- ----------------------
Gain (loss) on sale
of securities (899) (673) (793) (6,060)
--------------------------------------------- ----------------------
Other expense:
Salaries and
employee benefits 18,382 17,474 71,464 68,093
--------------------------------------------- ----------------------
Occupancy expense 1,757 1,739 7,024 6,917
--------------------------------------------- ----------------------
Furniture and
equipment expense 1,351 1,597 5,749 6,434
--------------------------------------------- ----------------------
Other expense 11,888 11,649 42,053 40,932
--------------------------------------------- ----------------------
Total other
expense 33,378 32,459 126,290 122,376
--------------------------------------------- ----------------------
Income before
federal income
taxes 29,295 25,772 129,249 123,189
--------------------------------------------- ----------------------
Federal income taxes 8,398 7,383 37,742 36,311
--------------------------------------------- ----------------------
Net income $ 20,897 $ 18,389 $ 91,507 $ 86,878
============================================= ======================
Per Share:
Net income
- basic $ 1.46 $ 1.27 $ 6.38 $ 6.01
--------------------------------------------- ----------------------
Net income
- diluted $ 1.44 $ 1.26 $ 6.32 $ 5.97
--------------------------------------------- ----------------------
Weighted average
shares - basic 14,305,004 14,463,954 14,344,771 14,458,899
--------------------------------------------- ----------------------
Weighted average
shares - diluted 14,499,782 14,581,080 14,486,327 14,550,874
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PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
(dollars in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- ----------------------
2004 2003 2004 2003
--------------------------------------------- ----------------------
Assets
Cash and due from
banks $ 142,385 $ 123,700 $ 142,102 $ 133,157
-------------------------------------------- ----------------------
Federal funds sold 15,003 48,002 9,328 35,718
-------------------------------------------- ----------------------
Interest bearing
deposits 23 50 38 50
-------------------------------------------- ----------------------
Investment
securities 1,859,889 1,705,187 1,918,444 1,788,661
-------------------------------------------- ----------------------
Loans (net of
unearned interest) 2,878,862 2,721,808 2,813,069 2,695,830
-------------------------------------------- ----------------------
Allowance for
possible loan
losses 65,220 64,632 64,676 64,735
-------------------------------------------- ----------------------
Loans, net 2,813,642 2,657,176 2,748,393 2,631,095
-------------------------------------------- ----------------------
Bank premises and
equipment, net 37,436 37,282 36,540 38,077
-------------------------------------------- ----------------------
Other assets 207,089 173,401 194,236 176,505
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Total assets $5,075,467 $4,744,798 $5,049,081 $4,803,263
-------------------------------------------- ----------------------
Liabilities and
Stockholders' Equity
Deposits:
Noninterest bearing $ 605,863 $ 547,391 $ 574,561 $ 522,456
-------------------------------------------- ----------------------
Interest bearing 2,944,791 2,884,186 2,946,360 2,901,834
-------------------------------------------- ----------------------
Total deposits 3,550,654 3,431,577 3,520,921 3,424,290
-------------------------------------------- ----------------------
Borrowings 896,193 723,727 921,278 796,927
-------------------------------------------- ----------------------
Other liabilities 73,934 56,090 68,607 61,655
-------------------------------------------- ----------------------
Total
liabilities 4,520,781 4,211,394 4,510,806 4,282,872
-------------------------------------------- ----------------------
Stockholders' Equity:
Common stock 124,922 105,897 110,711 105,860
-------------------------------------------- ----------------------
Accumulated other
comprehensive
income, net of
taxes 13,511 14,878 11,293 18,862
-------------------------------------------- ----------------------
Retained earnings 503,987 480,385 498,192 463,556
-------------------------------------------- ----------------------
Treasury stock (87,734) (67,756) (81,921) (67,887)
-------------------------------------------- ----------------------
Total stockholders'
equity 554,686 533,404 538,275 520,391
-------------------------------------------- ----------------------
Total liabilities
and stockholders'
equity $5,075,467 $4,744,798 $5,049,081 $4,803,263
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