NEWARK, Ohio, July 18, 2005 (PRIMEZONE) -- The Park National Corporation ("Park") (AMEX:PRK) today announced earnings for the second quarter of 2005. Net income for the second quarter of 2005 totaled $24.770 million or $1.72 per diluted share, compared to net income of $24.085 million or $1.67 per diluted share in the same period of 2004, increases of 2.8 percent in net income and 3.0 percent in earnings per diluted share.
Year-to-date net income is $48.112 million, a 2.2 percent increase over the same six-month period in 2004, which posted a net income of $47.063 million. Earnings per diluted share for the first half of 2005 were $3.33 per diluted share, a 2.8 percent increase over the first half of 2004, which reported $3.24 in earnings per diluted share.
Park's Board of Directors declared a cash dividend of $0.90 per share payable to shareholders of record as of August 26, 2005. The dividend will be paid on September 9, 2005.
Headquartered in Newark, Ohio, Park is a bank holding company with $5.6 billion in consolidated total assets. Its family of 12 community banks and 2 specialty finance companies operates 133 offices throughout 29 Ohio counties. They 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 (Scope Leasing Inc.), and Guardian Financial Services.
For more information visit www.parknationalcorp.com . Financial tables are below.
Safe Harbor Statement
Except for the historical and present factual information contained in this press release, the matters discussed in this press release, including any forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those set forth in the forward-looking statements, including: the impact of competition; changes in economic conditions in Park's market area; changes in policies by regulatory agencies; fluctuations in interest rates; demand for loans in Park's market area; and other risk factors relating to our industry as detailed from time to time in Park's reports filed with the SEC. Park wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Park does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
PARK NATIONAL CORPORATION Consolidated Average Balance Sheets (dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, ---------------------- ---------------------- 2005 2004 2005 2004 --------------------------------------------- ---------------------- Assets Cash and due from banks $ 143,494 $ 142,294 $ 148,800 $ 140,387 --------------------------------------------- ---------------------- Federal funds sold 13,143 12,570 10,585 8,682 --------------------------------------------- ---------------------- Interest bearing deposits 1,210 50 1,485 50 --------------------------------------------- ---------------------- Investment securities 2,007,872 1,928,658 1,950,613 1,936,265 --------------------------------------------- ---------------------- Loans (net of unearned interest) 3,259,676 2,791,973 3,256,545 2,768,048 --------------------------------------------- ---------------------- Allowance for possible loan losses 71,005 64,711 71,089 64,359 --------------------------------------------- ---------------------- Loans, net 3,188,671 2,727,262 3,185,456 2,703,689 --------------------------------------------- ---------------------- Bank premises and equipment, net 46,359 35,973 45,541 36,260 --------------------------------------------- ---------------------- Other assets 288,835 192,204 283,562 185,191 --------------------------------------------- ---------------------- Total assets $5,689,584 $5,039,011 $5,626,042 $5,010,524 --------------------------------------------- ---------------------- Liabilities and Stockholders' Equity Deposits: Noninterest-bearing $ 640,324 $ 567,895 $ 630,320 $ 560,550 --------------------------------------------- ---------------------- Interest-bearing 3,206,866 2,931,331 3,208,381 2,929,244 --------------------------------------------- ---------------------- Total deposits 3,847,190 3,499,226 3,838,701 3,489,794 --------------------------------------------- ---------------------- Borrowings 1,215,222 943,696 1,155,262 917,143 --------------------------------------------- ---------------------- Other liabilities 69,464 66,422 73,539 66,830 --------------------------------------------- ---------------------- Total liabilities 5,131,876 4,509,344 5,067,502 4,473,767 --------------------------------------------- ---------------------- Stockholders' Equity: Common stock 208,363 105,910 208,330 105,902 --------------------------------------------- ---------------------- Accumulated other comprehensive income, net of taxes 1,623 9,469 6,520 16,250 --------------------------------------------- ---------------------- Retained earnings 440,826 495,996 435,489 490,431 --------------------------------------------- ---------------------- Treasury stock (93,104) (81,708) (91,799) (75,826) --------------------------------------------- ---------------------- Total stockholders' equity 557,708 529,667 558,540 536,757 --------------------------------------------- ---------------------- Total liabilities and stockholders' equity $5,689,584 $5,039,011 $5,626,042 $5,010,524 --------------------------------------------- ---------------------- PARK NATIONAL CORPORATION Consolidated Balance Sheets (dollars in thousands, except share data) June 30, -------------------------- 2005 2004 --------------------------------------------------------------------- Assets Cash and due from banks $ 144,022 $ 145,063 --------------------------------------------------------------------- Federal funds sold 48,778 20,000 --------------------------------------------------------------------- Interest bearing deposits 1,099 50 --------------------------------------------------------------------- Investment securities 1,904,308 1,943,150 --------------------------------------------------------------------- Loans (net of unearned interest) 3,280,384 2,803,590 --------------------------------------------------------------------- Allowance for possible loan losses 70,352 64,090 --------------------------------------------------------------------- Loans, net 3,210,032 2,739,500 --------------------------------------------------------------------- Bank premises and equipment, net 47,147 35,695 --------------------------------------------------------------------- Other assets 277,933 191,273 --------------------------------------------------------------------- Total assets $ 5,633,319 $ 5,074,731 --------------------------------------------------------------------- Liabilities and Stockholders' Equity Deposits: Noninterest-bearing $ 643,582 $ 551,072 --------------------------------------------------------------------- Interest-bearing 3,217,746 2,965,481 --------------------------------------------------------------------- Total deposits 3,861,328 3,516,553 --------------------------------------------------------------------- Borrowings 1,125,538 984,406 --------------------------------------------------------------------- Other liabilities 70,379 58,025 --------------------------------------------------------------------- Total liabilities 5,057,245 4,558,984 --------------------------------------------------------------------- Stockholders' Equity: Common stock (No par value; 20,000,000 shares authorized in 2005 and 2004; 15,271,624 shares issued in 2005 and 15,270,795 in 2004) 208,369 105,995 --------------------------------------------------------------------- Accumulated other comprehensive income, net of taxes 8,684 (11,449) --------------------------------------------------------------------- Retained earnings 455,589 509,706 --------------------------------------------------------------------- Treasury stock (991,116 shares in 2005 and 985,989 shares in 2004) (96,568) (88,505) --------------------------------------------------------------------- Total stockholders' equity 576,074 515,747 --------------------------------------------------------------------- Total liabilities and stockholders' equity $ 5,633,319 $ 5,074,731 --------------------------------------------------------------------- PARK NATIONAL CORPORATION Consolidated Statements of Income (dollars in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, ---------------------- ---------------------- 2005 2004 2005 2004 --------------------------------------------- ---------------------- Interest income: Interest and fees on loans $ 54,531 $ 43,319 $ 106,771 $ 86,932 --------------------------------------------- ---------------------- Interest on: Obligations of U.S. Government, its agencies and other securities 23,105 21,717 44,549 43,527 --------------------------------------------- ---------------------- Obligations of states and political sub- divisions 1,180 1,302 2,354 2,649 --------------------------------------------- ---------------------- Other interest income 112 34 213 51 --------------------------------------------- ---------------------- Total interest income 78,928 66,372 153,887 133,159 --------------------------------------------- ---------------------- Interest expense: Interest on deposits: Demand and savings deposits 3,522 1,490 6,490 3,013 --------------------------------------------- ---------------------- Time deposits 10,118 8,068 19,455 16,578 --------------------------------------------- ---------------------- Interest on borrowings 9,876 4,292 18,085 8,430 --------------------------------------------- ---------------------- Total interest expense 23,516 13,850 44,030 28,021 --------------------------------------------- ---------------------- Net interest income 55,412 52,522 109,857 105,138 --------------------------------------------- ---------------------- Provision for loan losses 1,325 1,905 2,407 3,370 --------------------------------------------- ---------------------- Net interest income after provision for loan losses 54,087 50,617 107,450 101,768 --------------------------------------------- ---------------------- Other income 15,454 14,046 29,566 26,918 --------------------------------------------- ---------------------- Gain (loss) on sale of securities 96 -- 96 106 --------------------------------------------- ---------------------- Other expense: Salaries and employee benefits 19,551 17,096 39,552 35,244 --------------------------------------------- ---------------------- Occupancy expense 2,151 1,735 4,431 3,464 --------------------------------------------- ---------------------- Furniture and equipment expense 1,381 1,484 2,749 3,065 --------------------------------------------- ---------------------- Other expense 11,251 9,980 22,006 20,047 --------------------------------------------- ---------------------- Total other expense 34,334 30,295 68,738 61,820 --------------------------------------------- ---------------------- Income before federal income taxes 35,303 34,368 68,374 66,972 --------------------------------------------- ---------------------- Federal income taxes 10,533 10,283 20,262 19,909 --------------------------------------------- ---------------------- Net income $ 24,770 $ 24,085 $ 48,112 $ 47,063 ============================================= ====================== Per Share: Net income - basic $ 1.73 $ 1.68 $ 3.36 $ 3.27 --------------------------------------------- ---------------------- Net income - diluted $ 1.72 $ 1.67 $ 3.33 $ 3.24 --------------------------------------------- ---------------------- Weighted average shares - basic 14,312,032 14,341,123 14,321,647 14,392,510 --------------------------------------------- ---------------------- Weighted average shares - diluted 14,379,463 14,464,537 14,427,549 14,508,778 --------------------------------------------- ---------------------- PARK NATIONAL CORPORATION FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share data) JUNE 30, 2005 INCOME STATEMENT THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------------ -------------------------- PERCENT PERCENT 2005 2004 CHANGE 2005 2004 CHANGE ------- ------- ------ -------- -------- ------ NET INTEREST INCOME $55,412 $52,522 5.50% $109,857 $105,138 4.49% --------------------------------------------------------------------- PROVISION FOR LOAN LOSSES 1,325 1,905 -30.45% 2,407 3,370 -28.58% --------------------------------------------------------------------- OTHER INCOME 15,454 14,046 10.02% 29,566 26,918 9.84% --------------------------------------------------------------------- GAIN (LOSS) ON SALE OF SECURITIES 96 -- 96 106 --------------------------------------------------------------------- OTHER EXPENSE 34,334 30,295 13.33% 68,738 61,820 11.19% --------------------------------------------------------------------- INCOME BEFORE TAXES 35,303 34,368 2.72% 68,374 66,972 2.09% --------------------------------------------------------------------- NET INCOME 24,770 24,085 2.84% 48,112 47,063 2.23% --------------------------------------------------------------------- NET INCOME PER SHARE - BASIC 1.73 1.68 2.98% 3.36 3.27 2.75% --------------------------------------------------------------------- NET INCOME PER SHARE - DILUTED 1.72 1.67 2.99% 3.33 3.24 2.78% --------------------------------------------------------------------- CASH DIVIDENDS PER SHARE 0.90 0.838 7.40% 1.80 1.676 7.40% --------------------------------------------------------------------- RATIOS AND OTHER INFORMATION RETURN ON AVERAGE ASSETS 1.75% 1.92% 1.72% 1.89% --------------------------------------------------------------------- RETURN ON AVERAGE EQUITY 17.81% 18.29% 17.37% 17.63% --------------------------------------------------------------------- YIELD ON EARNING ASSETS 6.05% 5.72% 6.01% 5.78% --------------------------------------------------------------------- COST OF PAYING LIABILITIES 2.13% 1.44% 2.03% 1.47% --------------------------------------------------------------------- NET INTEREST MARGIN 4.26% 4.54% 4.31% 4.58% --------------------------------------------------------------------- EFFICIENCY RATIO 47.98% 44.98% 48.82% 46.26% --------------------------------------------------------------------- NET LOAN CHARGE-OFFS $1,295 $1,749 $2,232 $2,422 --------------------------------------------------------------------- NET CHARGE-OFFS AS A PERCENT OF LOANS 0.16% 0.25% 0.14% 0.18% --------------------------------------------------------------------- BALANCE SHEET AT JUNE 30, PERCENT 2005 2004 CHANGE ---------- ---------- -------- INVESTMENTS $1,904,308 $1,943,150 -2.00% -------------------------------------------------------------------- LOANS 3,280,384 2,803,590 17.01% -------------------------------------------------------------------- LOAN LOSS RESERVE 70,352 64,090 9.77% -------------------------------------------------------------------- GOODWILL AND OTHER INTANGIBLES 70,462 12,219 476.66% -------------------------------------------------------------------- TOTAL ASSETS 5,633,319 5,074,731 11.01% -------------------------------------------------------------------- DEPOSITS 3,861,328 3,516,553 9.80% -------------------------------------------------------------------- BORROWINGS 1,125,538 984,406 14.34% -------------------------------------------------------------------- EQUITY 576,074 515,747 11.70% -------------------------------------------------------------------- BOOK VALUE PER SHARE 40.34 36.10 11.75% -------------------------------------------------------------------- NONPERFORMING LOANS 19,830 18,441 7.53% -------------------------------------------------------------------- NONPERFORMING ASSETS 22,082 21,154 4.39% -------------------------------------------------------------------- PAST DUE 90 DAY LOANS 8,486 5,572 52.30% -------------------------------------------------------------------- RATIOS LOANS/ASSETS 58.23% 55.25% ------------------------------------------------------ NONPERFORMING LOANS/LOANS 0.60% 0.66% ------------------------------------------------------ PAST DUE 90 DAY LOANS/LOANS 0.26% 0.20% ------------------------------------------------------ LOAN LOSS RESERVE/LOANS 2.14% 2.29% ------------------------------------------------------ EQUITY/ASSETS 10.23% 10.16% ------------------------------------------------------