NEWARK, Ohio, July 16, 2007 (PRIME NEWSWIRE) -- Park National Corporation (Park) (AMEX:PRK) today reported net income for the second quarter of 2007 totaled $23.5 million, 1.6 percent less than the $23.9 million reported for the same period in 2006. Diluted earnings per share for the second quarter of 2007 were $1.62, a 4.7 percent decrease from 2006's second quarter diluted earnings per share of $1.70. These second quarter results include the operations of Vision Bank of Gulf Shores, Alabama and Vision Bank of Panama City, Florida, which became subsidiaries of Park on March 9, 2007.
Results from the first half of 2007 reflect a net income of $44.6 million, a 6.5 percent decrease compared to $47.7 million for the first half of 2006. Diluted earnings per share for the first half of 2007 were $3.11, 8.3 percent less than diluted earnings per share of $3.39 for the first six months in 2006. These figures include the Vision Banks' operations from March 9, 2007 through June 30, 2007.
The provision for loan losses was $2.9 million for the second quarter of 2007 and $5.1 million for the first half of 2007 compared to $1.5 million for the second quarter and first half of 2006. The increases in the loan loss provision for the three- and six-month periods ended June 30, 2007 (compared to the same periods in 2006) were due to similar increases in net loan charge-offs for both periods in 2007. Park's net charge-off to loans ratio was 0.26 percent for the six months ended June 30, 2007. This ratio was 0.28 percent for the second quarter of 2007. Both ratios are below Park's past five-year annual average of 0.30 percent.
Park announced the declaration of a regular cash dividend of $.93 per share, which will be paid on September 7, 2007 to shareholders of record on August 21, 2007.
The Park board of directors also authorized management to purchase up to an aggregate of 1 million additional common shares over the three-year period ending July 15, 2010 in open market purchases or through privately negotiated transactions, to be held as treasury shares for general corporate purposes. This authorization is in addition to the previous authorization that continues to be in effect.
On November 21, 2005, the Park board authorized management to purchase up to an aggregate of 1 million common shares for general corporate purposes over the three-year period ending November 20, 2008. Park purchased 807,826 common shares under this authorization and 192,174 common shares remain authorized for repurchase as of July 16, 2007. Park has purchased 470,006 common shares under this authorization in 2007.
Headquartered in Newark, Ohio, Park holds $6.244 billion in assets (based on asset totals as of June 30, 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 151 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.
PARK NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
JUNE 30, 2007
INCOME STATEMENT
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
PERCENT PERCENT
2007 2006 CHANGE 2007 2006 CHANGE
------- ------- ------- -------- -------- --------
NET INTEREST
INCOME $60,410 $53,822 12.24% $115,308 $107,241 7.52%
------- ------- ------- -------- -------- --------
PROVISION FOR
LOAN LOSSES 2,881 1,467 96.39% 5,086 1,467 246.69%
------- ------- ------- -------- -------- --------
OTHER INCOME 18,462 16,328 13.07% 34,636 31,721 9.19%
------- ------- ------- -------- -------- --------
GAIN (LOSS) ON
SALE OF
SECURITIES 0 0 -- 0 0 --
------- ------- ------- -------- -------- --------
OTHER EXPENSE 42,480 34,856 21.87% 81,789 69,868 17.06%
------- ------- ------- -------- -------- --------
INCOME BEFORE
TAXES 33,511 33,827 -0.93% 63,069 67,627 -6.74%
------- ------- ------- -------- -------- --------
NET INCOME 23,510 23,886 -1.57% 44,573 47,693 -6.54%
------- ------- ------- -------- -------- --------
NET INCOME PER
SHARE-BASIC 1.62 1.71 -5.26% 3.11 3.41 -8.80%
------- ------- ------- -------- -------- --------
NET INCOME PER
SHARE-DILUTED 1.62 1.70 -4.71% 3.11 3.39 -8.26%
------- ------- ------- -------- -------- --------
CASH DIVIDENDS
PER SHARE 0.93 0.92 1.09% 1.86 1.84 1.09%
------- ------- ------- -------- -------- --------
RATIOS AND
OTHER
INFORMATION
RETURN ON
AVERAGE
ASSETS 1.51% 1.78% -- 1.51% 1.78% --
------- ------- ------- -------- -------- --------
RETURN ON
AVERAGE
EQUITY 14.73% 17.89% -- 14.66% 17.77% --
------- ------- ------- -------- -------- --------
YIELD ON
EARNING
ASSETS 7.33% 6.76% -- 7.22% 6.67% --
------- ------- ------- -------- -------- --------
COST OF
PAYING
LIABILITIES 3.55% 2.89% -- 3.46% 2.78% --
------- ------- ------- -------- -------- --------
NET INTEREST
MARGIN 4.32% 4.38% -- 4.31% 4.38% --
------- ------- ------- -------- -------- --------
EFFICIENCY
RATIO 53.55% 49.26% -- 54.21% 49.87% --
------- ------- ------- -------- -------- --------
NET LOAN
CHARGE-OFFS $ 2,815 $ 1,464 -- $ 5,015 $ 1,463 --
------- ------- ------- -------- -------- --------
NET
CHARGE-OFFS
AS A PERCENT
OF LOANS 0.28% 0.18% -- 0.26% 0.09% --
------- ------- ------- -------- -------- --------
BALANCE SHEET
AT JUNE 30, PERCENT
2007 2006 CHANGE
---------- ---------- -----------
INVESTMENTS $1,497,639 $1,557,944 -3.87%
---------- ---------- -----------
LOANS 4,125,487 3,368,095 22.49%
---------- ---------- -----------
LOAN LOSS
RESERVE 79,905 69,698 14.64%
---------- ---------- -----------
GOODWILL AND
OTHER
INTANGIBLES 198,023 67,914 191.58%
---------- ---------- -----------
TOTAL ASSETS 6,243,566 5,412,447 15.36%
---------- ---------- -----------
DEPOSITS 4,540,448 3,849,076 17.96%
---------- ---------- -----------
BORROWINGS 1,013,120 952,265 6.39%
---------- ---------- -----------
EQUITY 627,391 539,479 16.30%
---------- ---------- -----------
BOOK VALUE
PER SHARE 43.81 38.72 13.15%
---------- ---------- -----------
NONPERFORMING
LOANS 38,754 23,087 67.86%
---------- ---------- -----------
NONPERFORMING
ASSETS 45,935 26,547 73.03%
---------- ---------- -----------
PAST DUE 90
DAY LOANS 4,391 6,011 -26.95%
---------- ---------- -----------
RATIOS
LOANS/ASSETS 66.08% 62.23% --
---------- ---------- -----------
NONPERFORMING
LOANS/LOANS 0.94% 0.69% --
---------- ---------- -----------
PAST DUE 90 DAY
LOANS/LOANS 0.11% 0.18% --
---------- ---------- -----------
LOAN LOSS
RESERVE/LOANS 1.94% 2.07% --
---------- ---------- -----------
EQUITY/ASSETS 10.05% 9.97% --
---------- ---------- -----------
PARK NATIONAL CORPORATION
Consolidated Statements of Income
(dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------- ---------- ---------- ----------
Interest income:
Interest and fees
on loans $ 83,479 $ 63,215 $154,661 $123,148
---------- ---------- ---------- ----------
Interest on:
Obligations of U.S.
Government, its
agencies and
other securities 18,278 19,038 36,825 38,602
---------- ---------- ---------- ----------
Obligations of states
and political
subdivisions 782 945 1,595 1,922
---------- ---------- ---------- ----------
Other interest income 286 100 580 222
---------- ---------- ---------- ----------
Total interest income 102,825 83,298 193,661 163,894
---------- ---------- ---------- ----------
Interest expense:
Interest on deposits:
Demand and savings
deposits 10,530 6,244 18,627 11,248
---------- ---------- ---------- ----------
Time deposits 21,228 13,398 38,809 25,714
---------- ---------- ---------- ----------
Interest on borrowings 10,657 9,834 20,917 19,691
---------- ---------- ---------- ----------
Total interest
expense 42,415 29,476 78,353 56,653
---------- ---------- ---------- ----------
Net interest income 60,410 53,822 115,308 107,241
---------- ---------- ---------- ----------
Provision for loan
losses 2,881 1,467 5,086 1,467
---------- ---------- ---------- ----------
Net interest income
after provision
for loan losses 57,529 52,355 110,222 105,774
---------- ---------- ---------- ----------
Other income 18,462 16,328 34,636 31,721
---------- ---------- ---------- ----------
Gain (loss) on sale of
securities -- -- -- --
---------- ---------- ---------- ----------
Other expense:
Salaries and employee
benefits 24,168 19,520 46,628 39,566
---------- ---------- ---------- ----------
Occupancy expense 2,775 2,182 5,313 4,444
---------- ---------- ---------- ----------
Furniture and
equipment expense 1,524 1,355 2,916 2,691
---------- ---------- ---------- ----------
Other expense 14,013 11,799 26,932 23,167
---------- ---------- ---------- ----------
Total other expense 42,480 34,856 81,789 69,868
---------- ---------- ---------- ----------
Income before
federal income
taxes 33,511 33,827 63,069 67,627
---------- ---------- ---------- ----------
Income taxes 10,001 9,941 18,496 19,934
---------- ---------- ---------- ----------
Net income $ 23,510 $ 23,886 $ 44,573 $ 47,693
---------- ---------- ---------- ----------
Per Share:
Net income -
basic $ 1.62 $ 1.71 $ 3.11 $ 3.41
---------- ---------- ---------- ----------
Net income -
diluted $ 1.62 $ 1.70 $ 3.11 $ 3.39
---------- ---------- ---------- ----------
Weighted average
shares - basic 14,506,926 13,977,432 14,314,129 14,005,896
---------- ---------- ---------- ----------
Weighted average
shares - diluted 14,507,895 14,010,407 14,323,206 14,053,151
---------- ---------- ---------- ----------
PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except share data)
June 30,
--------------------------
2007 2006
---------- ----------
Assets
Cash and due from banks $167,755 $170,603
---------- ----------
Money market instruments 16,010 25,091
---------- ----------
Interest bearing deposits 1 1
---------- ----------
Investment securities 1,497,639 1,557,944
---------- ----------
Loans (net of unearned interest) 4,125,487 3,368,095
---------- ----------
Allowance for possible loan losses 79,905 69,698
---------- ----------
Loans, net 4,045,582 3,298,397
---------- ----------
Bank premises and equipment, net 64,352 47,080
---------- ----------
Other assets 452,227 313,331
---------- ----------
Total assets $6,243,566 $5,412,447
---------- ----------
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing $705,802 $685,545
---------- ----------
Interest bearing 3,834,646 3,163,531
---------- ----------
Total deposits 4,540,448 3,849,076
---------- ----------
Borrowings 1,013,120 952,265
---------- ----------
Other liabilities 62,607 71,627
---------- ----------
Total liabilities 5,616,175 4,872,968
---------- ----------
Stockholders' Equity:
Common stock (No par value;
20,000,000 shares authorized
in 2007 and 2006; 16,151,230
shares issued in 2007 and
15,272,258 in 2006) 300,322 208,404
---------- ----------
Accumulated other comprehensive
income (loss), net of taxes (31,933) (34,048)
---------- ----------
Retained earnings 537,653 498,834
---------- ----------
Treasury stock (1,831,164 shares
in 2007 and 1,339,709 shares
in 2006) (178,651) (133,711)
---------- ----------
Total stockholders' equity 627,391 539,479
---------- ----------
Total liabilities and
stockholders' equity $6,243,566 $5,412,447
---------- ----------
PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
(dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------- ---------- ---------- ----------
Assets
Cash and due from
banks $ 157,861 $ 141,915 $ 154,337 $ 143,427
---------- ---------- ---------- ----------
Money market
instruments 20,497 7,419 21,938 8,239
---------- ---------- ---------- ----------
Interest bearing
deposits 1 39 1 169
---------- ---------- ---------- ----------
Investment securities 1,516,007 1,590,384 1,526,279 1,627,365
---------- ---------- ---------- ----------
Loans (net of
unearned interest) 4,094,718 3,337,351 3,864,223 3,324,534
---------- ---------- ---------- ----------
Allowance for
possible loan losses 79,213 70,137 76,210 70,528
---------- ---------- ---------- ----------
Loans, net 4,015,505 3,267,214 3,788,013 3,254,006
---------- ---------- ---------- ----------
Bank premises and
equipment, net 64,683 46,886 57,376 46,942
---------- ---------- ---------- ----------
Other assets 452,715 321,386 403,247 315,008
---------- ---------- ---------- ----------
Total assets $6,227,269 $5,375,243 $5,951,191 $5,395,156
---------- ---------- ---------- ----------
Liabilities and
Stockholders' Equity
Deposits:
Noninterest bearing $ 714,462 $ 668,365 $ 685,772 $ 661,312
---------- ---------- ---------- ----------
Interest bearing 3,815,458 3,160,283 3,597,186 3,143,537
---------- ---------- ---------- ----------
Total deposits 4,529,920 3,828,648 4,282,958 3,804,849
---------- ---------- ---------- ----------
Borrowings 975,001 933,596 969,424 966,797
---------- ---------- ---------- ----------
Other liabilities 82,046 77,383 85,656 82,224
---------- ---------- ---------- ----------
Total liabilities 5,586,967 4,839,627 5,338,038 4,853,870
---------- ---------- ---------- ----------
Stockholders' Equity:
Common stock 300,323 208,404 268,592 208,398
---------- ---------- ---------- ----------
Accumulated other
comprehensive
income (loss),
net of taxes (22,023) (28,531) (22,414) (20,526)
---------- ---------- ---------- ----------
Retained earnings 524,305 484,987 520,001 479,549
---------- ---------- ---------- ----------
Treasury stock (162,303) (129,244) (153,026) (126,135)
---------- ---------- ---------- ----------
Total stockholders'
equity 640,302 535,616 613,153 541,286
---------- ---------- ---------- ----------
Total liabilities
and stockholders'
equity $6,227,269 $5,375,243 $5,951,191 $5,395,156
---------- ---------- ---------- ----------