NEWARK, Ohio, July 17, 2006 (PRIMEZONE) -- Park National Corporation (Park) (AMEX:PRK) today reported net income for the second quarter of 2006. Net income for the three months ended June 30, 2006 totaled $23.886 million, a 3.57 percent decrease from the same period in 2005, when Park earned a net income of $24.770 million. Diluted earnings per share for the second quarter of 2006 were $1.70, 1.16 percent lower than 2005's second quarter diluted earnings per share at $1.72.
Net income for the first half of this year was $47.693 million, a slight decrease (0.87 percent) from the same six months in 2005, when Park reported net income of $48.112 million. Diluted earnings per share for the half-year period in 2006 were $3.39, 1.8 percent higher than the first half of last year, which reported $3.33 in diluted earnings per share.
Park also announced a regular cash dividend of $.92 per share, payable on September 8, 2006 to shareholders of record on August 22, 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 136 offices across Ohio and northern Kentucky.
Its significant subsidiaries include The Park National Bank, The Park National Bank Southwest Ohio & Northern Kentucky Division, 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, 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)
JUNE 30, 2006
INCOME STATEMENT
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
PERCENT PERCENT
2006 2005 CHANGE 2006 2005 CHANGE
---- ---- ------ ---- ---- ------
NET INTEREST
INCOME $53,822 $55,412 -2.87% $107,241 $109,857 -2.38%
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PROVISION
FOR LOAN
LOSSES 1,467 1,325 10.72% 1,467 2,407 -39.05%
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OTHER
INCOME 16,328 15,454 5.66% 31,721 29,566 7.29%
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GAIN (LOSS)
ON SALE OF
SECURITIES 0 96 0 96
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OTHER
EXPENSE 34,856 34,334 1.52% 69,868 68,738 1.64%
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INCOME BEFORE
TAXES 33,827 35,303 -4.18% 67,627 68,374 -1.09%
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NET INCOME 23,886 24,770 -3.57% 47,693 48,112 -0.87%
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NET INCOME
PER SHARE
-BASIC 1.71 1.73 -1.16% 3.41 3.36 1.49%
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NET INCOME
PER SHARE
-DILUTED 1.70 1.72 -1.16% 3.39 3.33 1.80%
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CASH DIVIDENDS
PER SHARE 0.92 0.90 2.22% 1.84 1.80 2.22%
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RATIOS AND
OTHER INFORMATION
RETURN ON
AVERAGE
ASSETS 1.78% 1.75% 1.78% 1.72%
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RETURN ON
AVERAGE
EQUITY 17.89% 17.81% 17.77% 17.37%
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YIELD ON
EARNING
ASSETS 6.76% 6.05% 6.67% 6.01%
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COST OF
PAYING
LIABILITIES 2.89% 2.13% 2.78% 2.03%
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NET INTEREST
MARGIN 4.38% 4.26% 4.38% 4.31%
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EFFICIENCY
RATIO 49.26% 47.98% 49.87% 48.82%
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NET LOAN
CHARGE-OFFS $ 1,464 $ 1,295 $ 1,463 $ 2,232
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NET CHARGE-
OFFS AS A
PERCENT OF
LOANS 0.18% 0.16% 0.09% 0.14%
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BALANCE SHEET
AT JUNE 30, PERCENT
2006 2005 CHANGE
---- ---- ------
INVESTMENTS $1,557,944 $1,904,308 -18.19%
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LOANS 3,368,095 3,280,384 2.67%
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LOAN LOSS RESERVE 69,698 70,352 -0.93%
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GOODWILL AND OTHER INTANGIBLES 67,914 70,462 -3.62%
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TOTAL ASSETS 5,412,447 5,633,319 -3.92%
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DEPOSITS 3,849,076 3,861,328 -0.32%
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BORROWINGS 952,265 1,125,538 -15.39%
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EQUITY 539,479 576,074 -6.35%
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BOOK VALUE PER SHARE 38.72 40.34 -4.02%
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NONPERFORMING LOANS 23,087 19,830 16.42%
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NONPERFORMING ASSETS 26,547 22,082 20.22%
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PAST DUE 90 DAY LOANS 6,011 8,486 -29.17%
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RATIOS
LOANS/ASSETS 62.23% 58.23%
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NONPERFORMING LOANS/LOANS 0.69% 0.60%
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PAST DUE 90 DAY LOANS/LOANS 0.18% 0.26%
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LOAN LOSS RESERVE/LOANS 2.07% 2.14%
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EQUITY/ASSETS 9.97% 10.23%
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PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except share data)
June 30,
-------------------------
2006 2005
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Assets
Cash and due from banks $ 170,603 $ 144,022
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Money market instruments 25,091 48,778
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Interest bearing deposits 1 1,099
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Investment securities 1,557,944 1,904,308
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Loans (net of unearned interest) 3,368,095 3,280,384
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Allowance for possible loan losses 69,698 70,352
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Loans, net 3,298,397 3,210,032
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Bank premises and equipment, net 47,080 47,147
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Other assets 313,331 277,933
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Total assets $5,412,447 $5,633,319
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Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing $ 685,545 $ 643,582
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Interest bearing 3,163,531 3,217,746
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Total deposits 3,849,076 3,861,328
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Borrowings 952,265 1,125,538
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Other liabilities 71,627 70,379
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Total liabilities 4,872,968 5,057,245
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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 15,271,624 in 2005) 208,404 208,369
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Accumulated other comprehensive income,
net of taxes (34,048) 8,684
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Retained earnings 498,834 455,589
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Treasury stock (1,339,709 shares in
2006 and 991,116 shares in 2005) (133,711) (96,568)
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Total stockholders' equity 539,479 576,074
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Total liabilities and
stockholders' equity $5,412,447 $5,633,319
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PARK NATIONAL CORPORATION
Consolidated Statements of Income
(dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2006 2005 2006 2005
--------------------------------------------- ----------------------
Interest income:
Interest and fees
on loans $ 63,215 $ 54,531 $ 123,148 $ 106,771
--------------------------------------------- ----------------------
Interest on:
Obligations of U.S.
Government, its
agencies and other
securities 19,038 23,105 38,602 44,549
--------------------------------------------- ----------------------
Obligations of states
and political
subdivisions 945 1,180 1,922 2,354
--------------------------------------------- ----------------------
Other interest income 100 112 222 213
--------------------------------------------- ----------------------
Total interest income 83,298 78,928 163,894 153,887
--------------------------------------------- ----------------------
Interest expense:
Interest on deposits:
Demand and savings
deposits 6,244 3,522 11,248 6,490
--------------------------------------------- ----------------------
Time deposits 13,398 10,118 25,714 19,455
--------------------------------------------- ----------------------
Interest on borrowings 9,834 9,876 19,691 18,085
--------------------------------------------- ----------------------
Total interest
expense 29,476 23,516 56,653 44,030
--------------------------------------------- ----------------------
Net interest income 53,822 55,412 107,241 109,857
--------------------------------------------- ----------------------
Provision for loan
losses 1,467 1,325 1,467 2,407
--------------------------------------------- ----------------------
Net interest income
after provision
for loan losses 52,355 54,087 105,774 107,450
--------------------------------------------- ----------------------
Other income 16,328 15,454 31,721 29,566
--------------------------------------------- ----------------------
Gain (loss) on sale
of securities -- 96 -- 96
--------------------------------------------- ----------------------
Other expense:
Salaries and employee
benefits 19,520 19,551 39,566 39,552
--------------------------------------------- ----------------------
Occupancy expense 2,182 2,151 4,444 4,431
--------------------------------------------- ----------------------
Furniture and
equipment expense 1,355 1,381 2,691 2,749
--------------------------------------------- ----------------------
Other expense 11,799 11,251 23,167 22,006
--------------------------------------------- ----------------------
Total other expense 34,856 34,334 69,868 68,738
--------------------------------------------- ----------------------
Income before
federal income
taxes 33,827 35,303 67,627 68,374
--------------------------------------------- ----------------------
Federal income taxes 9,941 10,533 19,934 20,262
--------------------------------------------- ----------------------
Net income $ 23,886 $ 24,770 $ 47,693 $ 48,112
============================================= ======================
Per Share:
Net income
- basic $ 1.71 $ 1.73 $ 3.41 $ 3.36
--------------------------------------------- ----------------------
Net income
- diluted $ 1.70 $ 1.72 $ 3.39 $ 3.33
--------------------------------------------- ----------------------
Weighted average
shares - basic 13,977,432 14,312,032 14,005,896 14,321,647
--------------------------------------------- ----------------------
Weighted average
shares - diluted 14,010,407 14,379,463 14,053,151 14,427,549
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PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
(dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2006 2005 2006 2005
--------------------------------------------- ----------------------
Assets
Cash and due
from banks $ 141,915 $ 143,494 $ 143,427 $ 148,800
--------------------------------------------- ----------------------
Money market
instruments 7,419 13,143 8,239 10,585
--------------------------------------------- ----------------------
Interest bearing
deposits 39 1,210 169 1,485
--------------------------------------------- ----------------------
Investment securities 1,590,384 2,007,872 1,627,365 1,950,613
--------------------------------------------- ----------------------
Loans (net of
unearned interest) 3,337,351 3,259,676 3,324,534 3,256,545
--------------------------------------------- ----------------------
Allowance for possible
loan losses 70,137 71,005 70,528 71,089
--------------------------------------------- ----------------------
Loans, net 3,267,214 3,188,671 3,254,006 3,185,456
--------------------------------------------- ----------------------
Bank premises and
equipment, net 46,886 46,359 46,942 45,541
--------------------------------------------- ----------------------
Other assets 321,386 288,835 315,008 283,562
--------------------------------------------- ----------------------
Total assets $5,375,243 $5,689,584 $5,395,156 $5,626,042
--------------------------------------------- ----------------------
Liabilities and
Stockholders' Equity
Deposits:
Noninterest bearing $ 668,365 $ 640,324 $ 661,312 $ 630,320
--------------------------------------------- ----------------------
Interest bearing 3,160,283 3,206,866 3,143,537 3,208,381
--------------------------------------------- ----------------------
Total deposits 3,828,648 3,847,190 3,804,849 3,838,701
--------------------------------------------- ----------------------
Borrowings 933,596 1,215,222 966,797 1,155,262
--------------------------------------------- ----------------------
Other liabilities 77,383 69,464 82,224 73,539
--------------------------------------------- ----------------------
Total liabilities 4,839,627 5,131,876 4,853,870 5,067,502
--------------------------------------------- ----------------------
Stockholders' Equity:
Common stock 208,404 208,363 208,398 208,330
--------------------------------------------- ----------------------
Accumulated other
comprehensive income,
net of taxes (28,531) 1,623 (20,526) 6,520
--------------------------------------------- ----------------------
Retained earnings 484,987 440,826 479,549 435,489
--------------------------------------------- ----------------------
Treasury stock (129,244) (93,104) (126,135) (91,799)
--------------------------------------------- ----------------------
Total stockholders'
equity 535,616 557,708 541,286 558,540
--------------------------------------------- ----------------------
Total liabilities
and stockholders'
equity $5,375,243 $5,689,584 $5,395,156 $5,626,042
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