NEWARK, Ohio, April 17, 2006 (PRIMEZONE) -- Park National Corporation (Park) (AMEX:PRK) today announced earnings for the first quarter of 2006. Net income for the first three months of 2006 totaled $23.807 million, a 2.0 percent increase over 2005's first quarter net income of $23.342 million. Diluted earnings per share for the same time period increased 5.0 percent from $1.61 in 2005 to $1.69 for 2006.
Park also announced a regular cash dividend of $.92 per share, payable on June 9, 2006 to shareholders of record on May 23, 2006.
Park National Corporation is an Ohio-based bank holding company headquartered in Newark, Ohio. It holds more than $5.4 billion in assets. Its 12 community banks and two specialty financing companies consist of 135 offices and 138 ATMs in 29 Ohio counties.
Its significant subsidiaries include The Park National Bank, Fairfield National Division, First Clermont 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, 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)
MARCH 31, 2006
INCOME STATEMENT THREE MONTHS ENDED
MARCH 31,
PERCENT
2006 2005 CHANGE
---- ---- ------
NET INTEREST INCOME $53,419 $54,445 -1.88%
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PROVISION FOR LOAN LOSSES 0 1,082 -100.00%
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OTHER INCOME 15,393 14,112 9.08%
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GAIN (LOSS) ON SALE OF
SECURITIES 0 0 0
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OTHER EXPENSE 35,012 34,404 1.77%
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INCOME BEFORE TAXES 33,800 33,071 2.20%
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NET INCOME 23,807 23,342 1.99%
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NET INCOME PER SHARE-BASIC 1.70 1.63 4.29%
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NET INCOME PER SHARE-
DILUTED 1.69 1.61 4.97%
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CASH DIVIDENDS PER SHARE 0.92 0.90 2.22%
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RATIOS AND OTHER INFORMATION
RETURN ON AVERAGE ASSETS 1.78% 1.70%
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RETURN ON AVERAGE EQUITY 17.65% 16.92%
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YIELD ON EARNING ASSETS 6.57% 5.97%
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COST OF PAYING LIABILITIES 2.67% 1.93%
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NET INTEREST MARGIN 4.37% 4.35%
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EFFICIENCY RATIO 50.48% 49.68%
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NET LOAN CHARGE-OFFS
(RECOVERIES) ($1) $937
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NET CHARGE-OFFS AS A
PERCENT OF LOANS 0.00% 0.12%
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BALANCE SHEET
AT MARCH 31, PERCENT
2006 2005 CHANGE
---- ---- ------
INVESTMENTS $1,683,274 $2,016,859 -16.54%
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LOANS 3,318,314 3,249,914 2.10%
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LOAN LOSS RESERVE 69,695 70,322 -0.89%
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GOODWILL AND OTHER
INTANGIBLES 68,551 71,099 -3.58%
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TOTAL ASSETS 5,444,445 5,676,842 -4.09%
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DEPOSITS 3,833,939 3,838,563 -0.12%
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BORROWINGS 989,312 1,212,477 -18.41%
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EQUITY 544,961 556,303 -2.04%
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BOOK VALUE PER SHARE 38.90 38.79 0.28%
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NONPERFORMING LOANS 22,454 22,672 -0.96%
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NONPERFORMING ASSETS 25,349 25,407 -0.23%
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PAST DUE 90 DAY LOANS 5,490 7,078 -22.44%
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RATIOS
LOANS/ASSETS 60.95% 57.25%
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NONPERFORMING LOANS/LOANS 0.68% 0.70%
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PAST DUE 90 DAY LOANS/LOANS 0.17% 0.22%
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LOAN LOSS RESERVE/LOANS 2.10% 2.16%
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EQUITY/ASSETS 10.01% 9.80%
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PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except share data)
March 31,
------------------------------
2006 2005
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Assets
Cash and due from banks $146,389 $134,917
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Money market instruments 10,052 23,329
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Interest bearing deposits 300 1,598
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Investment securities 1,683,274 2,016,859
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Loans (net of unearned interest) 3,318,314 3,249,914
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Allowance for possible loan losses 69,695 70,322
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Loans, net 3,248,619 3,179,592
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Bank premises and equipment, net 47,149 44,581
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Other assets 308,662 275,966
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Total assets $5,444,445 $5,676,842
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Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing $654,689 $609,064
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Interest-bearing 3,179,250 3,229,499
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Total deposits 3,833,939 3,838,563
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Borrowings 989,312 1,212,477
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Other liabilities 76,233 69,499
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Total liabilities 4,899,484 5,120,539
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Stockholders' Equity:
Common stock (No par value;
20,000,000 shares authorized in
2006 and 2005; 15,272,258 shares
issued in 2006 and 15,271,213 in
2005) 208,405 208,346
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Accumulated other comprehensive
income, net of taxes (25,280) (6,151)
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Retained earnings 487,816 443,700
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Treasury stock (1,263,339
shares in 2006 and 928,421
shares in 2005) (125,980) (89,592)
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Total stockholders' equity 544,961 556,303
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Total liabilities and
stockholders' equity $5,444,445 $5,676,842
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PARK NATIONAL CORPORATION
Consolidated Statements of Income
(dollars in thousands, except per share data)
Three Months Ended
March 31,
------------------------------
2006 2005
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Interest income:
Interest and fees on loans $59,933 $52,240
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Interest on:
Obligations of U.S. Government,
its agencies and other securities 19,564 21,444
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Obligations of states and political
subdivisions 977 1,174
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Other interest income 122 101
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Total interest income 80,596 74,959
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Interest expense:
Interest on deposits:
Demand and savings deposits 5,004 2,968
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Time deposits 12,316 9,337
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Interest on borrowings 9,857 8,209
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Total interest expense 27,177 20,514
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Net interest income 53,419 54,445
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Provision for loan losses -- 1,082
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Net interest income after
provision for loan losses 53,419 53,363
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Other income 15,393 14,112
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Gain (loss) on sale of securities -- --
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Other expense:
Salaries and employee benefits 20,046 20,001
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Occupancy expense 2,262 2,280
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Furniture and equipment expense 1,336 1,368
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Other expense 11,368 10,755
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Total other expense 35,012 34,404
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Income before federal income taxes 33,800 33,071
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Federal income taxes 9,993 9,729
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Net income $23,807 $23,342
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Per Share:
Net income - basic $1.70 $1.63
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Net income - diluted $1.69 $1.61
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Weighted average shares - basic 14,034,360 14,331,261
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Weighted average shares - diluted 14,095,895 14,475,634
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PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
(dollars in thousands)
Three Months Ended
March 31,
------------------------------
2006 2005
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Assets
Cash and due from banks $144,959 $154,164
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Money market instruments 9,067 7,999
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Interest bearing deposits 300 1,763
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Investment securities 1,664,820 1,892,717
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Loans (net of unearned interest) 3,311,576 3,253,379
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Allowance for possible loan losses 70,924 71,174
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Loans, net 3,240,652 3,182,205
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Bank premises and equipment, net 46,999 44,714
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Other assets 308,560 278,232
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Total assets $5,415,357 $5,561,794
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Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing $654,181 $620,212
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Interest-bearing 3,126,606 3,209,914
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Total deposits 3,780,787 3,830,126
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Borrowings 1,000,367 1,094,636
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Other liabilities 87,120 77,651
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Total liabilities 4,868,274 5,002,413
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Stockholders' Equity:
Common stock 208,392 208,297
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Accumulated other comprehensive
income, net of taxes (12,431) 11,477
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Retained earnings 474,114 430,088
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Treasury stock (122,992) (90,481)
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Total stockholders' equity 547,083 559,381
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Total liabilities and
stockholders' equity $5,415,357 $5,561,794
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