NEWARK, Ohio, Oct. 16, 2006 (PRIMEZONE) -- Park National Corporation ("Park") (AMEX:PRK) today reported net income for the third quarter of 2006 of $23.805 million. This amount is a 2.02 percent decrease from the same period in 2005, when Park had net income of $24.295 million. Diluted earnings per share increased slightly for the third quarter of 2006 to $1.71, 1.18 percent higher than 2005's third quarter diluted earnings per share of $1.69.
Net income for the first three quarters of 2006 decreased 1.26 percent to $71.498 million in 2006, compared to $72.407 million for the same period in 2005. Diluted earnings per share for the first nine months of 2006 was $5.11, 1.59 percent higher than the $5.03 recorded for the same period last year.
According to its regular annual schedule, the Park board of directors will meet in November to consider the next quarterly dividend.
Park announced the signing of two separate definitive agreements in the third quarter of 2006. On August 14, 2006, Park entered into a definitive agreement and plan of merger (the "Anderson Merger Agreement") providing for the acquisition of Anderson Bank Company ("Anderson") headquartered in Anderson Township near Cincinnati, Ohio, through the merger of Anderson with and into Park's subsidiary The Park National Bank (the "Anderson Merger Transaction"). Anderson had approximately $70 million in total assets as of June 30, 2006. Under the terms of the Anderson Merger Agreement, Park will pay approximately $9.05 million in cash and 86,137 common shares of Park to the shareholders of Anderson in the Anderson Merger Transaction. As of August 14, 2006, Anderson had 533,550 common shares outstanding and 16,250 Anderson common shares were subject to outstanding stock options. Based on the closing price of the common shares of Park on October 13, 2006, the aggregate merger consideration would be approximately $17.9 million. The Anderson Merger Transaction is anticipated to close in the fourth quarter of 2006, and is subject to the satisfaction of customary conditions in the Anderson Merger Agreement and the approval of appropriate regulatory authorities and of the shareholders of Anderson. Upon completion of the Anderson Merger Transaction, the two offices of Anderson will become part of the division of The Park National Bank known as The Park National Bank of Southwest Ohio & Northern Kentucky.
On September 14, 2006, Park entered into a definitive agreement and plan of merger (the "Vision Merger Agreement") with Vision Bancshares, Inc. (Vision") providing for the merger of Vision into Park (the "Vision Merger Transaction"). Vision had approximately $696 million in total assets as of June 30, 2006. Under the terms of the Vision Merger Agreement, the shareholders of Vision will receive either $25.00 in cash or 0.2475 Park common shares for each share of Vision common stock. The Vision shareholders will have the option of receiving cash or Park common shares for their shares of Vision common stock (or any combination thereof), subject to the election and allocation procedures in the Vision Merger Agreement. However, Park has reserved the right to allocate the Vision shareholder elections on a pro-rata basis so that 50 percent of the total Vision shares of common stock outstanding at the time of the Vision Merger Transaction are paid in cash and 50 percent are paid in Park common shares. As of September 14, 2006, Vision had 6,066,624 shares of common stock outstanding and outstanding stock options covering an aggregate of 884,834 shares of common stock with a weighted average exercise price of $8.09 per share. Each outstanding stock option (that is not exercised) granted under one of Vision's equity-based compensation plans will be cancelled and extinguished and converted into the right to receive an amount of cash equal to the product of (a) $25.00 minus the exercise price of the stock option, multiplied by (b) the number of Vision shares of common stock subject to the unexercised portion of the stock option. Based on the closing price of the common shares of Park on October 13, 2006, the aggregate merger consideration would be approximately $175.4 million assuming that all of the Vision stock options outstanding on September 14, 2006 were exercised and not taking into account the payment of the exercise price which would be received upon the exercise of such Vision stock options. The Vision Merger Transaction is expected to close during the first quarter of 2007, and is subject to the satisfaction of customary conditions in the Vision Merger Agreement and the approval of appropriate regulatory authorities and of the shareholders of Vision. Upon completion of the Vision Merger Transaction, Vision's two community bank subsidiaries -- Vision Bank, an Alabama state banking corporation headquartered in Gulf Shores, Alabama and Vision Bank, a Florida state banking corporation headquartered in Panama City, Florida -- will become wholly-owned subsidiaries of Park.
Park National Corporation is an Ohio-based bank holding company headquartered in Newark, Ohio. Park has approximately $5.4 billion in consolidated total assets. Park and its subsidiaries consist of 12 community banks and divisions and two specialty financing companies, all based in Ohio. Park and its subsidiaries operate 136 offices across 29 Ohio counties and one Kentucky county through the following organizations: The Park National Bank, The Park National Bank of Southwest Ohio & Northern Kentucky Division, Fairfield National Division, The Richland Trust Company, Century National Bank, The First-Knox National Bank of Mount Vernon, 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 Leasing, Inc. (Scope Aircraft Finance), and Guardian Financial Services Company. For more information, visit www.parknationalcorp.com.
Financial tables are listed at the end of this news release.
Additional Information about the Anderson Merger Transaction and Where to Find It
Park will file with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 (the "Anderson Form S-4") and will file with the SEC a prospectus/proxy statement that will be mailed to the shareholders of Anderson and other relevant documents concerning the Anderson Merger Transaction. Investors and shareholders of Anderson are urged to read the Anderson Form S-4 and the proposed prospectus/proxy statement when they become available and any other relevant documents filed with the SEC because they will contain important information about Park, The Park National Bank, Anderson and the Anderson Merger Transaction. Investors and shareholders will be able to obtain a copy of the prospectus/proxy statement (when it is available), as well as other documents filed with the SEC by Park, free of charge, through the website maintained by the SEC at http://www.sec.gov. Copies of the prospectus/proxy statement, (when it is available), and the filings of Park with the SEC that will be incorporated by reference in the prospectus/proxy statement, can also be obtained, free of charge, by directing a request to Park National Corporation, 50 North Third Street, P.O. Box 3500, Newark, Ohio 43058-3500, Attention: John W. Kozak, Chief Financial Officer (740-349-3792), or to Anderson Bank Company, 1075 Nimitzview Drive, Cincinnati, Ohio 45230, Attention: James R. Gudmens, President (513-232-9599).
Park and Anderson and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Anderson in respect of the proposed Anderson Merger Transaction. Information about the directors and executive officers of Park is set forth in the proxy statement for Park's 2006 annual meeting of shareholders, as filed with the SEC on March 10, 2006. Information about the directors and executive officers of Anderson and their ownership of Anderson common shares will be included in the Anderson Form S-4 and the prospectus/proxy statement that will be mailed to the shareholders of Anderson in connection with the Anderson Merger Transaction. Other information regarding the participants in the proxy solicitation related to the proposed Anderson Merger Transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the Anderson Form S-4 and the prospectus/proxy statement and other relevant documents to be filed with the SEC when they become available. You may obtain free copies of these documents as described above.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification of the securities under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Additional Information about the Vision Merger Transaction and Where to Find It
Park will file with the SEC a registration statement on Form S-4 (the "Vision Form S-4"), a prospectus/proxy statement that will be mailed to the shareholders of Vision and other relevant documents concerning the Vision Merger Transaction. Investors and shareholders of Vision are urged to read the Vision Form S-4 and the prospectus/proxy statement when they become available and any other relevant document filed with the SEC because they will contain important information about Park, Vision and the Vision Merger Transaction. Investors and shareholders of Vision will be able to obtain a copy of the prospectus/proxy statement (when it is available), as well as other relevant documents filed with the SEC by Park and Vision, free of charge, through the website maintained by the SEC at http://www.sec.gov. Copies of the prospectus/proxy statement, (when it is available), and the filings of Park and Vision with the SEC that will be incorporated by reference in the prospectus/proxy statement, can also be obtained, free of charge, by directing a request to Park National Corporation, 50 North Third Street, P.O. Box 3500, Newark, Ohio 43058-3500, Attention: John W. Kozak, Chief Financial Officer (740-349-3792), or to Vision Bancshares, Inc., 2201 West 1st Street, P.O. Box 4649, Gulf Shores, Alabama 36547, Attention: William E. Blackmon, Chief Financial Officer (251-967-4212).
Park and Vision and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Vision in respect of the proposed Vision Merger Transaction. Information about the directors and executive officers of Park is set forth in the proxy statement for Park's 2006 annual meeting of shareholders, as filed with the SEC on March 10, 2006. Information about directors and executive officers of Vision and their ownership of shares of Vision common stock is set forth in the proxy statement for Vision's 2006 annual meeting of shareholders, as filed with the SEC on April 6, 2006. Additional information regarding the participants in the proxy solicitation related to the proposed Vision Merger Transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the Vision Form S-4, in the prospectus/proxy statement, and other relevant documents to be filed with the SEC when they become available. You may obtain free copies of these documents as described above.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification of the securities under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Safe Harbor Statement
Except for the historical and present factual information contained in this press release, the matters discussed in this press release, including statements identified by words such as "will," "is anticipated," "is expected to" and similar expressions are 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 following: the ability to obtain regulatory approvals and Anderson shareholder approval of the Anderson Merger Transaction on the proposed terms and schedule; the ability to obtain regulatory approvals and Vision shareholder approval of the Vision Merger Transaction on the proposed terms and schedule; the possibility that costs or difficulties related to the integration of the respective businesses of Anderson and Vision with our businesses will be greater than expected or that the cost savings and any revenue synergies of the combined organizations following the Anderson Merger Transactions and the Vision Merger Transaction, respectively, may be lower or take longer to realize than expected; disruptions from the Anderson Merger Transaction and/or the Vision Transaction making it more difficult to maintain relationships with customers, employees or suppliers; the impact of competition; changes in economic conditions in the market area served by Park and its subsidiaries; changes in banking regulations or other regulatory or legislative requirements affecting the business of Park and its subsidiaries; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; fluctuations in interest rates; demand for loans in the market area served by Park and its subsidiaries; 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 except as may be required by applicable law.
PARK NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
SEPTEMBER 30, 2006
INCOME STATEMENT
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
PERCENT PERCENT
2006 2005 CHANGE 2006 2005 CHANGE
------- ------- ------ -------- -------- ------
NET INTEREST
INCOME $53,562 $55,551 -3.58% $160,803 $165,408 -2.78%
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PROVISION FOR
LOAN LOSSES 935 1,600 -41.56% 2,402 4,007 -40.05%
---------------------------------------------------------------------
OTHER INCOME 16,354 15,154 7.92% 48,075 44,720 7.50%
---------------------------------------------------------------------
GAIN (LOSS)
ON SALE OF
SECURITIES 97 0 97 96
---------------------------------------------------------------------
OTHER EXPENSE 35,489 34,342 3.34% 105,357 103,080 2.21%
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INCOME BEFORE
TAXES 33,589 34,763 -3.38% 101,216 103,137 -1.86%
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NET INCOME 23,805 24,295 -2.02% 71,498 72,407 -1.26%
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NET INCOME PER
SHARE-BASIC 1.72 1.70 1.18% 5.12 5.06 1.19%
---------------------------------------------------------------------
NET INCOME PER
SHARE-DILUTED 1.71 1.69 1.18% 5.11 5.03 1.59%
---------------------------------------------------------------------
CASH DIVIDENDS
PER SHARE 0.92 0.90 2.22% 2.76 2.70 2.22%
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RATIOS AND
OTHER INFORMATION
RETURN ON
AVERAGE ASSETS 1.77% 1.74% 1.78% 1.73%
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RETURN ON
AVERAGE EQUITY 17.66% 17.08% 17.73% 17.26%
---------------------------------------------------------------------
YIELD ON
EARNING ASSETS 6.87% 6.23% 6.74% 6.08%
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COST OF PAYING
LIABILITIES 3.10% 2.26% 2.89% 2.11%
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NET INTEREST
MARGIN 4.33% 4.36% 4.36% 4.32%
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EFFICIENCY
RATIO 50.39% 48.15% 50.05% 48.60%
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NET LOAN
CHARGE-OFFS $ 935 $ 1,585 $ 2,398 $ 3,817
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NET CHARGE-OFFS
AS A PERCENT
OF LOANS 0.11% 0.19% 0.10% 0.16%
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BALANCE SHEET
AT SEPTEMBER 30, PERCENT
2006 2005 CHANGE
---------- ---------- ------
INVESTMENTS $1,563,706 $1,766,252 -11.47%
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LOANS 3,390,477 3,298,402 2.79%
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LOAN LOSS RESERVE 69,698 70,367 -0.95%
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GOODWILL AND OTHER INTANGIBLES 67,277 69,825 -3.65%
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TOTAL ASSETS 5,393,333 5,518,173 -2.26%
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DEPOSITS 3,889,439 3,821,312 1.78%
---------------------------------------------------------------------
BORROWINGS 871,336 1,065,821 -18.25%
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EQUITY 558,206 563,436 -0.93%
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BOOK VALUE PER SHARE 40.37 39.71 1.66%
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NONPERFORMING LOANS 22,262 21,536 3.37%
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NONPERFORMING ASSETS 25,469 23,696 7.48%
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PAST DUE 90 DAY LOANS 6,689 7,536 -11.24%
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RATIOS
LOANS/ASSETS 62.86% 59.77%
----------------------------------------------------------
NONPERFORMING LOANS/LOANS 0.66% 0.65%
----------------------------------------------------------
PAST DUE 90 DAY LOANS/LOANS 0.20% 0.23%
----------------------------------------------------------
LOAN LOSS RESERVE/LOANS 2.06% 2.13%
----------------------------------------------------------
EQUITY/ASSETS 10.35% 10.21%
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PARK NATIONAL CORPORATION
Consolidated Statements of Income
(dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2006 2005 2006 2005
------------------------------------------- -----------------------
Interest income:
Interest and fees
on loans $ 65,843 $ 57,338 $ 188,991 $ 164,109
------------------------------------------- -----------------------
Interest on:
Obligations of
U.S. Government,
its agencies and
other securities 18,430 21,229 57,032 65,778
------------------------------------------- -----------------------
Obligations of
states and
political
subdivisions 893 1,095 2,815 3,449
------------------------------------------- -----------------------
Other interest
income 124 106 346 319
------------------------------------------- -----------------------
Total interest
income 85,290 79,768 249,184 233,655
------------------------------------------- -----------------------
Interest expense:
Interest on deposits:
Demand and savings
deposits 7,397 4,111 18,645 10,601
------------------------------------------- -----------------------
Time deposits 14,914 10,851 40,628 30,306
------------------------------------------- -----------------------
Interest on borrowings 9,417 9,255 29,108 27,340
------------------------------------------- -----------------------
Total interest
expense 31,728 24,217 88,381 68,247
------------------------------------------- -----------------------
Net interest
income 53,562 55,551 160,803 165,408
------------------------------------------- -----------------------
Provision for
loan losses 935 1,600 2,402 4,007
------------------------------------------- -----------------------
Net interest income
after provision
for loan losses 52,627 53,951 158,401 161,401
------------------------------------------- -----------------------
Other income 16,354 15,154 48,075 44,720
------------------------------------------- -----------------------
Gain (loss) on sale
of securities 97 -- 97 96
------------------------------------------- -----------------------
Other expense:
Salaries and employee
benefits 20,268 19,812 59,834 59,364
------------------------------------------- -----------------------
Occupancy expense 2,275 2,113 6,719 6,544
------------------------------------------- -----------------------
Furniture and
equipment expense 1,273 1,242 3,964 3,991
------------------------------------------- -----------------------
Other expense 11,673 11,175 34,840 33,181
------------------------------------------- -----------------------
Total other expense 35,489 34,342 105,357 103,080
------------------------------------------- -----------------------
Income before
federal income
taxes 33,589 34,763 101,216 103,137
------------------------------------------- -----------------------
Federal income taxes 9,784 10,468 29,718 30,730
------------------------------------------- -----------------------
Net income $ 23,805 $ 24,295 $ 71,498 $ 72,407
=========================================== =======================
Per Share:
Net income
- basic $ 1.72 $ 1.70 $ 5.12 $ 5.06
------------------------------------------- -----------------------
Net income
- diluted $ 1.71 $ 1.69 $ 5.11 $ 5.03
------------------------------------------- -----------------------
Weighted average
shares - basic 13,859,498 14,256,723 13,957,097 14,300,005
------------------------------------------- -----------------------
Weighted average
shares - diluted 13,888,458 14,338,418 13,998,253 14,397,838
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PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except share data)
September 30,
--------------------------
2006 2005
---------------------------------------------------------------------
Assets
Cash and due from banks $ 150,251 $ 157,321
---------------------------------------------------------------------
Money market instruments 5,541 42,143
---------------------------------------------------------------------
Interest bearing deposits 1 500
---------------------------------------------------------------------
Investment securities 1,563,706 1,766,252
---------------------------------------------------------------------
Loans (net of unearned interest) 3,390,477 3,298,402
---------------------------------------------------------------------
Allowance for loan losses 69,698 70,367
---------------------------------------------------------------------
Loans, net 3,320,779 3,228,035
---------------------------------------------------------------------
Bank premises and equipment, net 46,672 47,222
---------------------------------------------------------------------
Other assets 306,383 276,700
---------------------------------------------------------------------
Total assets $ 5,393,333 $ 5,518,173
---------------------------------------------------------------------
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing $ 686,501 $ 649,897
---------------------------------------------------------------------
Interest bearing 3,202,938 3,171,415
---------------------------------------------------------------------
Total deposits 3,889,439 3,821,312
---------------------------------------------------------------------
Borrowings 871,336 1,065,821
---------------------------------------------------------------------
Other liabilities 74,352 67,604
---------------------------------------------------------------------
Total liabilities 4,835,127 4,954,737
---------------------------------------------------------------------
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) 208,403 208,368
---------------------------------------------------------------------
Accumulated other comprehensive
income (loss), net of taxes (16,056) (5,519)
---------------------------------------------------------------------
Retained earnings 509,917 467,057
---------------------------------------------------------------------
Treasury stock (1,443,789 shares in
2006 and 1,082,636 shares in 2005) (144,058) (106,470)
---------------------------------------------------------------------
Total stockholders' equity 558,206 563,436
---------------------------------------------------------------------
Total liabilities and
stockholders' equity $ 5,393,333 $ 5,518,173
---------------------------------------------------------------------
PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
(dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2006 2005 2006 2005
------------------------------------------- -----------------------
Assets
Cash and due
from banks $ 144,600 $ 147,063 $ 143,822 $ 148,214
------------------------------------------- -----------------------
Money market
instruments 7,621 11,182 8,031 10,786
------------------------------------------- -----------------------
Interest bearing
deposits 1 684 112 1,215
------------------------------------------- -----------------------
Investment
securities 1,533,314 1,821,149 1,595,671 1,907,051
------------------------------------------- -----------------------
Loans (net of
unearned interest) 3,367,532 3,286,412 3,339,023 3,266,610
------------------------------------------- -----------------------
Allowance for
loan losses 70,304 70,979 70,453 71,052
------------------------------------------- -----------------------
Loans, net 3,297,228 3,215,433 3,268,570 3,195,558
------------------------------------------- -----------------------
Bank premises and
equipment, net 46,989 47,231 46,958 46,110
------------------------------------------- -----------------------
Other assets 319,819 292,495 316,630 286,574
------------------------------------------- -----------------------
Total assets $5,349,572 $5,535,237 $5,379,794 $5,595,508
------------------------------------------- -----------------------
Liabilities and
Stockholders' Equity
Deposits:
Noninterest
bearing $ 673,957 $ 645,916 $ 665,573 $ 635,576
------------------------------------------- -----------------------
Interest bearing 3,200,769 3,196,983 3,162,824 3,204,540
------------------------------------------- -----------------------
Total deposits 3,874,726 3,842,899 3,828,397 3,840,116
------------------------------------------- -----------------------
Borrowings 858,131 1,049,351 930,177 1,119,570
------------------------------------------- -----------------------
Other liabilities 81,910 78,102 82,118 75,077
------------------------------------------- -----------------------
Total
liabilities 4,814,767 4,970,352 4,840,692 5,034,763
------------------------------------------- -----------------------
Stockholders' Equity:
Common stock 208,403 208,368 208,400 208,343
------------------------------------------- -----------------------
Accumulated other
comprehensive
income (loss), net
of taxes (28,471) 2,672 (23,203) 5,224
------------------------------------------- -----------------------
Retained earnings 495,813 452,977 485,030 441,449
------------------------------------------- -----------------------
Treasury stock (140,940) (99,132) (131,125) (94,271)
------------------------------------------- -----------------------
Total stockholders'
equity 534,805 564,885 539,102 560,745
------------------------------------------- -----------------------
Total liabilities
and stockholders'
equity $5,349,572 $5,535,237 $5,379,794 $5,595,508
------------------------------------------- -----------------------