NEWARK, Ohio, April 16, 2007 (PRIME NEWSWIRE) -- Park National Corporation (Park) (AMEX:PRK) today reported net income of $21.063 million for the first three months of 2007, an 11.5 percent decrease compared to the same period in 2006, when net income of $23.807 million was reported. Diluted earnings per share for the first quarter of this year were $1.49, a decrease of 11.8 percent from 2006's first quarter diluted earnings per share of $1.69.
Park announced the declaration of a regular cash dividend of $.93 per share, an increase of 1.1 percent over the same period a year ago. The dividends are payable on June 8, 2007 to shareholders of record as of May 22, 2007.
Park made a provision to the allowance for loan and lease losses of $2.2 million in the first quarter of 2007. There was no loan loss provision expense during the first quarter of 2006.
As previously announced, Park concluded its merger transaction with Vision Bancshares, Inc. on March 9, 2007. Vision Bank of Gulf Shores, Alabama and Vision Bank of Panama City, Florida are Park's two newest bank subsidiaries and added 22 days of earnings to net income for the first quarter of 2007.
Headquartered in Newark, Ohio, Park holds $6.307 billion in assets (based on asset totals as of March 31, 2007). Park and its subsidiaries consist of 14 community banking divisions, 12 of which are based in Ohio, 1 in Alabama and 1 in Florida, and 2 specialty finance companies. Park operates 153 offices 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, Vision Bank of Gulf Shores, Alabama, Vision Bank of Panama City, Florida, Scope Leasing, Inc., and Guardian Financial Services Company.
Complete financial tables for first quarter 2007 are listed below:
PARK NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
MARCH 31, 2007
INCOME STATEMENT THREE MONTHS ENDED
MARCH 31,
PERCENT
2007 2006 CHANGE
---- ---- ------
NET INTEREST INCOME $54,898 $53,419 2.77%
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PROVISION FOR LOAN LOSSES 2,205 0 100.00%
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OTHER INCOME 16,174 15,393 5.07%
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GAIN (LOSS) ON SALE OF SECURITIES -- --
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OTHER EXPENSE 39,309 35,012 12.27%
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INCOME BEFORE TAXES 29,558 33,800 -12.55%
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NET INCOME 21,063 23,807 -11.53%
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NET INCOME PER SHARE-BASIC 1.49 1.70 -12.35%
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NET INCOME PER SHARE-DILUTED 1.49 1.69 -11.83%
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CASH DIVIDENDS PER SHARE 0.93 0.92 1.09%
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RATIOS AND OTHER INFORMATION
RETURN ON AVERAGE ASSETS 1.51% 1.78%
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RETURN ON AVERAGE EQUITY 14.58% 17.65%
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YIELD ON EARNING ASSETS 7.10% 6.57%
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COST OF PAYING LIABILITIES 3.36% 2.67%
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NET INTEREST MARGIN 4.31% 4.37%
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EFFICIENCY RATIO 54.94% 50.48%
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NET LOAN CHARGE-OFFS (RECOVERIES) $ 2,199 ($1)
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NET CHARGE-OFFS AS A PERCENT OF LOANS 0.25% 0.00%
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BALANCE SHEET
AT MARCH 31, PERCENT
2007 2006 CHANGE
---------- ---------- ------
INVESTMENTS $1,590,948 $1,683,274 -5.48%
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LOANS 4,088,683 3,318,314 23.22%
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LOAN LOSS RESERVE 79,839 69,695 14.55%
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GOODWILL AND OTHER INTANGIBLES 198,228 68,551 189.17%
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TOTAL ASSETS 6,307,455 5,444,445 15.85%
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DEPOSITS 4,552,476 3,833,939 18.74%
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BORROWINGS 1,010,970 989,312 2.19%
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EQUITY 660,890 544,961 21.27%
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BOOK VALUE PER SHARE 45.07 38.90 15.86%
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NONPERFORMING LOANS 37,748 22,454 68.11%
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NONPERFORMING ASSETS 42,346 25,349 67.05%
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PAST DUE 90 DAY LOANS 2,881 5,490 -47.52%
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RATIOS
LOANS/ASSETS 64.82% 60.95%
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NONPERFORMING LOANS/LOANS 0.92% 0.68%
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PAST DUE 90 DAY LOANS/LOANS 0.07% 0.17%
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LOAN LOSS RESERVE/LOANS 1.95% 2.10%
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EQUITY/ASSETS 10.48% 10.01%
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TANGIBLE EQUITY/TANGIBLE ASSETS 7.57% 8.86%
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PARK NATIONAL CORPORATION
Consolidated Statements of Income
(dollars in thousands, except per share data)
Three Months Ended
March 31,
----------------------------
2007 2006
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Interest income:
Interest and fees on loans $ 71,182 $ 59,933
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Interest on:
Obligations of U.S. Government,
its agencies and other securities 18,547 19,564
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Obligations of states and
political subdivisions 813 977
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Other interest income 294 122
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Total interest income 90,836 80,596
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Interest expense:
Interest on deposits:
Demand and savings deposits 8,097 5,004
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Time deposits 17,581 12,316
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Interest on borrowings 10,260 9,857
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Total interest expense 35,938 27,177
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Net interest income 54,898 53,419
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Provision for loan losses 2,205 --
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Net interest income after
provision for loan losses 52,693 53,419
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Other income 16,174 15,393
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Gain (loss) on sale of securities -- --
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Other expense:
Salaries and employee benefits 22,460 20,046
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Occupancy expense 2,538 2,262
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Furniture and equipment expense 1,392 1,336
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Other expense 12,919 11,368
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Total other expense 39,309 35,012
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Income before federal income taxes 29,558 33,800
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Income taxes 8,495 9,993
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Net income $ 21,063 $ 23,807
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Per Share:
Net income - basic $ 1.49 $ 1.70
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Net income - diluted $ 1.49 $ 1.69
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Weighted average shares - basic 14,121,331 14,034,360
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Weighted average shares - diluted 14,138,517 14,095,895
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PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except share data)
March 31,
---------------------------
2007 2006
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Assets
Cash and due from banks $ 169,192 $ 146,389
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Money market instruments 28,938 10,052
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Interest bearing deposits 1 300
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Investment securities 1,590,948 1,683,274
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Loans (net of unearned interest) 4,088,683 3,318,314
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Allowance for possible loan losses 79,839 69,695
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Loans, net 4,008,844 3,248,619
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Bank premises and equipment, net 64,946 47,149
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Goodwill and other intangible assets 198,228 68,551
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Other assets 246,358 240,111
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Total assets $6,307,455 $5,444,445
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Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing $ 718,829 $ 654,689
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Interest-bearing 3,833,647 3,179,250
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Total deposits 4,552,476 3,833,939
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Borrowings 1,010,970 989,312
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Other liabilities 83,119 76,233
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Total liabilities 5,646,565 4,899,484
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Stockholders' Equity:
Common stock (No par value; 20,000,000
shares authorized in 2007 and 2006;
16,151,243 shares issued in 2007 and
15,272,258 in 2006) 300,324 208,405
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Accumulated other comprehensive income,
net of taxes (19,111) (25,280)
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Retained earnings 527,677 487,816
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Treasury stock (1,486,382 shares in 2007
and 1,263,339 shares in 2006) (148,000) (125,980)
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Total stockholders' equity 660,890 544,961
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Total liabilities and stockholders'
equity $6,307,455 $5,444,445
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PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
(dollars in thousands)
Three Months Ended
March 31,
---------------------------
2007 2006
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Assets
Cash and due from banks $ 150,773 $ 144,959
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Money market instruments 23,395 9,067
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Interest bearing deposits 1 300
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Investment securities 1,536,664 1,664,820
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Loans (net of unearned interest) 3,631,168 3,311,576
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Allowance for possible loan losses 73,174 70,924
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Loans, net 3,557,994 3,240,652
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Bank premises and equipment, net 49,988 46,999
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Goodwill and other intangible assets 108,794 68,954
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Other assets 244,437 239,606
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Total assets $5,672,046 $5,415,357
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Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing $ 656,765 $ 654,181
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Interest-bearing 3,376,488 3,126,606
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Total deposits 4,033,253 3,780,787
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Borrowings 963,787 1,000,367
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Other liabilities 89,304 87,120
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Total liabilities 5,086,344 4,868,274
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Stockholders' Equity:
Common stock 236,509 208,392
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Accumulated other comprehensive income,
net of taxes (22,810) (12,431)
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Retained earnings 515,649 474,114
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Treasury stock (143,646) (122,992)
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Total stockholders' equity 585,702 547,083
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Total liabilities and stockholders'
equity $5,672,046 $5,415,357
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