Park National Corporation Reports Year-End 2008 Results

Ohio Banking Divisions Post Record Year Despite U.S. Economic Turbulence


NEWARK, Ohio, Jan. 26, 2009 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE:PRK) today reported results for the fourth quarter 2008 and for the 12 months ended December 31, 2008.

Net income results:

Park's net income for the 12 months ended December 31, 2008 was $13.7 million or $0.97 per common diluted share, compared to $22.7 million or $1.60 per diluted share for the same period in 2007. Park's fourth quarter net income (three months ended December 31, 2008) was $11.0 million or $0.77 per common diluted share. For the same period in 2007, Park reported a net loss of $43.2 million or $3.08 per diluted share.

These data reflect two impairment charges (fourth quarter 2007 and third quarter 2008) that Park recorded to the goodwill value of its subsidiary Vision Bank. Vision Bank operates in the Gulf Shore region of Florida and Alabama and continues to experience severely depressed real estate market values and credit deterioration. An impairment charge is a special accounting entry that does not affect a financial institution's regulatory capital, cash flow or ability to pay dividends. As previously reported, all goodwill value related to Vision Bank was written off.

Without the goodwill impairment charge in the third quarter of 2008, Park's net income available to common shareholders for 2008 was $68.6 million or $4.91 per common diluted share (compared to $76.7 million or $5.40 per diluted share for the 12 months ended December 31, 2007 without the goodwill impairment charge in the fourth quarter of 2007). Without the goodwill impairment charge in the fourth quarter of 2007, Park's net income available to common shareholders for that quarter was $10.9 million or $0.77 per diluted share, compared to $10.8 million or $0.77 per common diluted share in net income in the fourth quarter of 2008.

Park's 12 Ohio-based divisions reported record net income for the 12 months ended December 31, 2008. Net income for this period in 2008 was $94.9 million, a 13.8 percent increase over 2007's year-end net income of $83.4 million for the Ohio-based divisions. As reported on January 9, 2009, Park's loans in Ohio increased by more than $31 million in the past month (November 30, 2008 to December 31, 2008) or ten percent annualized. Park's Ohio-based divisions grew total loans in the year 2008 by more than $215 million, or six percent, compared to 2007.

Loan loss data:

Park's loan loss provisions for the year 2008 totaled $70.5 million compared to $29.5 million for the year 2007. Vision Bank's loan loss provision for 2008 was $47 million (compared to $19.4 million for 2007) and Park's Ohio-based divisions had a loan loss provision of $23.5 million for 2008 (compared to $10.1 million in 2007).

Park's net loan charge-offs for the year ended December 31, 2008 were $57.5 million, or 1.32 percent of total loans. For that same one-year period, Vision Bank had net loan charge-offs of $38.5 million, or 5.69 percent of total loans and Park's Ohio-based divisions had net loan charge-offs of $19.0 million, or 0.52 percent of loans.

Additional information:

On December 23, 2008, Park received $100 million of new equity capital from the U.S. Department of the Treasury's Capital Purchase Program (CPP) established under the Emergency Economic Stabilization Act of 2008. With the additional capital, Park's total equity to assets ratio improved to 9.09 percent at December 31, 2008 compared to a ratio of 7.79 percent at September 30, 2008. Park continues to easily exceed the "well capitalized" regulatory capital guidelines for financial institutions and as a result has a keen interest in continuing to make loans to qualified borrowers.

At its meeting earlier today, the Park board of directors declared a cash dividend for the first quarter of 2009 of $0.94 per share, payable on March 10, 2009 to shareholders of record as of February 26, 2009. This dividend is one cent less than the previous quarter's dividend and is consistent with Park's dividend amount in the quarters prior to October 14, 2008 as required of financial institutions which have received U.S. Treasury investments under the CPP.

Headquartered in Newark, Ohio, Park National Corporation holds $7.1 billion in assets (as of December 31, 2008). Park consists of 14 community bank divisions, a data processing and information technology division, two specialty finance companies and a title company. Park's Ohio-based banking operations are conducted through Park subsidiary The Park National Bank and its divisions which include Fairfield National Bank, Richland Bank, Century National Bank, First-Knox National Bank, Farmers and Savings Bank, United Bank, Second National Bank, Security National Bank, Unity National Bank, Citizens National Bank and The Park National Bank of Southwest Ohio & Northern Kentucky. Park's other banking subsidiary is Vision Bank (headquartered in Panama City, Florida), and its Vision Bank Division (of Gulf Shores, Alabama). Park also includes Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), Guardian Finance Company and Park Title Agency.

Complete Financial Tables are below...

SAFE HARBOR STATEMENT under the private securities litigation reform act of 1995

This news release contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation: deterioration in the asset value of Vision Bank's loan portfolio may be worse than expected; Park's ability to execute its business plan successfully and within the expected timeframe; general economic and financial market conditions, and weakening in the economy, specifically, the real estate market, either national or in the states in which Park and its subsidiaries do business, are worse than expected; changes in the interest rate environment reduce net interest margins; competitive pressures among financial institutions increase significantly; the nature, timing and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and its subsidiaries; demand for loans in the respective market areas served by Park and its subsidiaries, and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the Securities and Exchange Commission including those described in "Item 1A. Risk Factors" of Part I of Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and in our other filings with the Securities and Exchange Commission in "Item 1A. Risk Factors" of Part II of Park's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2008. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Park does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.



 PARK NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except per share data)

 INCOME STATEMENT AND RATIOS

                  THREE MONTHS ENDED          TWELVE MONTHS ENDED
                      DECEMBER 31,                 DECEMBER 31,
                                  PERCENT                      PERCENT
                 2008       2007   CHANGE     2008      2007   CHANGE
                 ----       ----  -------     ----      ----   -------
 NET INTEREST
  INCOME       $ 64,835  $ 59,953    8.14%  $255,873  $234,677    9.03%
 ---------------------------------------------------------------------
 PROVISION
  FOR LOAN
  LOSSES         32,618    18,597   75.39%    70,487    29,476  139.13%
 ---------------------------------------------------------------------
 OTHER INCOME    27,049    17,944   50.74%    83,719    71,640   16.86%
 ---------------------------------------------------------------------
 GAIN ON
  SALE OF
  SECURITIES        219        --              1,115        --
 ---------------------------------------------------------------------
 GOODWILL
  IMPAIRMENT
  CHARGE             --    54,035             54,986    54,035
 ---------------------------------------------------------------------
 OTHER
  EXPENSE        47,312    45,523    3.93%   179,515   170,129    5.52%
 ---------------------------------------------------------------------
 INCOME
  (LOSS)
  BEFORE
  TAXES          12,173   (40,258) 130.24%    35,719    52,677  -32.19%
 ---------------------------------------------------------------------
 NET INCOME
  (LOSS)         10,951   (43,170) 125.37%    13,708    22,707  -39.63%
 ---------------------------------------------------------------------
 NET INCOME
  (LOSS)
  AVAILABLE
  TO COMMON
  SHARE-
  HOLDERS
    (x)          10,809   (43,170) 125.04%    13,566    22,707  -40.26%
 ---------------------------------------------------------------------
 NET INCOME
  (LOSS) PER
  COMMON
  SHARE-BASIC
   (x)             0.77     (3.08) 125.00%      0.97      1.60  -39.38%
 ---------------------------------------------------------------------
 NET INCOME
  (LOSS) PER
  COMMON
  SHARE-
  DILUTED (x)      0.77     (3.08) 125.00%      0.97      1.60  -39.38%
 ---------------------------------------------------------------------
 RETURN ON
  AVERAGE
  ASSETS (x)      0.63%    -2.63%              0.20%     0.37%
 ---------------------------------------------------------------------
 RETURN ON
  AVERAGE
  COMMON
  EQUITY (x)      8.10%   -27.14%              2.40%     3.67%
 ---------------------------------------------------------------------
 CASH
  DIVIDENDS
  DECLARED
  PER SHARE       0.95      0.94     1.06%     3.77       3.73    1.07%
 ---------------------------------------------------------------------

 INCOME STATEMENT
  AND RATIOS
  (NON GAAP)

 NET INCOME
  AVAILABLE
  TO COMMON
  SHAREHOLDERS
  BEFORE
  IMPAIRMENT
  CHARGE
  (a)(x)         10,809    10,865   -0.52%    68,552    76,742  -10.67%
 ---------------------------------------------------------------------
 NET INCOME
  AVAILABLE
  TO COMMON
  SHAREHOLDERS
  BEFORE
  IMPAIRMENT
  CHARGE PER
  SHARE-
  DILUTED
  (a)(x)           0.77      0.77    0.00%      4.91      5.40   -9.07%
 ---------------------------------------------------------------------
 RETURN ON
  AVERAGE
  TANGIBLE
  ASSETS
  BEFORE
  IMPAIRMENT
  CHARGE
   (e)(x)         0.64%     0.68%               1.04%     1.28%
 ---------------------------------------------------------------------
 RETURN ON
  AVERAGE
  ASSETS
  BEFORE
  IMPAIRMENT
  CHARGE
  (a)(x)          0.63%     0.66%               1.02%     1.24%
 ---------------------------------------------------------------------
 RETURN ON
  AVERAGE
  TANGIBLE
  REALIZED
  COMMON
  EQUITY
  BEFORE
  IMPAIRMENT
  CHARGE
  (b)(x)          9.56%     9.68%              15.66%    16.55%
 ---------------------------------------------------------------------
 RETURN ON
  AVERAGE
  COMMON
  EQUITY
  BEFORE
  IMPAIRMENT
  CHARGE
   (a)(x)         8.10%     6.83%             12.12%    12.40%
 ---------------------------------------------------------------------
 EFFICIENCY
  RATIO
  BEFORE
  IMPAIRMENT
  CHARGE (d)     51.27%    58.10%             52.59%    55.21%
 ---------------------------------------------------------------------

 OTHER RATIOS
 YIELD ON
  EARNING
  ASSETS          5.99%     7.02%              6.35%     7.18%
 ---------------------------------------------------------------------
 COST OF
  PAYING
  LIABILITIES     2.21%     3.47%              2.55%     3.50%
 ---------------------------------------------------------------------
 NET INTEREST
  MARGIN          4.11%     4.04%              4.16%     4.20%
 ---------------------------------------------------------------------
 NET LOAN
  CHARGE-OFFS   $21,725   $11,342            $57,501   $22,208
 ---------------------------------------------------------------------
 NET CHARGE-
  OFFS AS A
  PERCENT OF
  LOANS           1.94%     1.07%              1.32%     0.55%
 ---------------------------------------------------------------------

 BALANCE SHEET                December 31,  September 30,  December 31,
                                      2008          2008          2007
                                      ----          ----          ----
 INVESTMENTS                    $2,059,051    $1,807,464    $1,703,103
 ---------------------------------------------------------------------
 LOANS                           4,491,337     4,466,671     4,224,134
 ---------------------------------------------------------------------
 LOAN LOSS RESERVE                 100,088        89,195        87,102
 ---------------------------------------------------------------------
 GOODWILL AND OTHER
  INTANGIBLES                       85,545        86,551       144,556
 ---------------------------------------------------------------------
 TOTAL ASSETS                    7,070,720     6,799,733     6,501,102
 ---------------------------------------------------------------------
 TOTAL DEPOSITS                  4,761,750     4,774,509     4,439,239
 ---------------------------------------------------------------------
 BORROWINGS                      1,554,754     1,404,746     1,389,727
 ---------------------------------------------------------------------
 EQUITY                            642,663       529,685       580,012
 ---------------------------------------------------------------------
 COMMON EQUITY                     546,942       529,685       580,012
 ---------------------------------------------------------------------
 TANGIBLE COMMON EQUITY            461,397       443,134       435,456
 ---------------------------------------------------------------------
 COMMON BOOK VALUE PER
  SHARE                              39.15         37.93         41.54
 ---------------------------------------------------------------------
 TANGIBLE COMMON BOOK
  VALUE PER SHARE (c)                33.02         31.79         31.18
 ---------------------------------------------------------------------
 NONPERFORMING LOANS               162,357       126,336       103,932
 ---------------------------------------------------------------------
 NONPERFORMING ASSETS              188,205       146,086       117,375
 ---------------------------------------------------------------------
 PAST DUE 90 DAY LOANS               5,421         4,388         4,545
 ---------------------------------------------------------------------

 RATIOS

 LOANS/ASSETS                       63.52%        65.69%        64.98%
 ---------------------------------------------------------------------
 NONPERFORMING LOANS/
  LOANS                              3.61%         2.83%         2.46%
 ---------------------------------------------------------------------
 PAST DUE 90 DAY LOANS/
  LOANS                              0.12%         0.10%         0.11%
 ---------------------------------------------------------------------
 LOAN LOSS RESERVE/LOANS             2.23%         2.00%         2.06%
 ---------------------------------------------------------------------
 TOTAL EQUITY/ASSETS                 9.09%         7.79%         8.92%
 ---------------------------------------------------------------------
 COMMON EQUITY/ASSETS                7.74%         7.79%         8.92%
 ---------------------------------------------------------------------


 (x) Reported measure includes the impact of the preferred equity
     issued as part of the Capital Purchase Program and uses net
     income (loss) available to common shareholders.

 (a) Net income (loss) available to common shareholders for the
     periods presented has been adjusted for the impairment charge
     to goodwill. Net income (loss) available to common shareholders
     before impairment charge equals net income (loss) available to
     common shareholders for the period plus the impairment charge to
     goodwill of $54,986 for 2008 and $54,035 for 2007.


                             THREE MONTHS ENDED    TWELVE MONTHS ENDED
                                DECEMBER 31,           DECEMBER 31,
                               2008       2007       2008        2007
                               ----       ----       ----        ----

 RECONCILIATION OF NET INCOME (LOSS) TO NET INCOME BEFORE
 IMPAIRMENT CHARGE:
 ---------------------------------------------------------------------
 NET INCOME (LOSS)
  AVAILABLE TO COMMON
  SHAREHOLDERS                $10,809   ($43,170)   $13,566    $22,707
 ---------------------------------------------------------------------
 Plus goodwill
  impairment charge                --     54,035     54,986     54,035
 ---------------------------------------------------------------------
 NET INCOME 
  AVAILABLE TO COMMON 
  SHAREHOLDERS BEFORE
  IMPAIRMENT CHARGE           $10,809    $10,865    $68,552    $76,742
                          ============================================

 RECONCILIATION OF NET INCOME (LOSS) PER COMMON SHARE-DILUTED TO NET
 INCOME BEFORE IMPAIRMENT CHARGE PER COMMON SHARE-DILUTED:

 NET INCOME (LOSS) PER
  COMMON SHARE-DILUTED          $0.77     ($3.08)     $0.97      $1.60
 ---------------------------------------------------------------------
 Plus impairment charge
  to goodwill per
  share-diluted                    --       3.85       3.94       3.80
 ---------------------------------------------------------------------
 NET INCOME 
  BEFORE IMPAIRMENT 
  CHARGE PER COMMON
  SHARE-DILUTED            $0.77      $0.77      $4.91      $5.40
                          ============================================


 (b) Net Income (loss) available to common shareholders before
     impairment charge for each period divided by average tangible
     realized common equity during the period. Average tangible
     realized common equity equals average stockholders' equity during
     the applicable period less (i) average goodwill and other
     intangible assets during the period, (ii) average accumulated
     other comprehensive income (loss), net of taxes, during the
     period, and (iii) Preferred stock.

 RECONCILIATION OF AVERAGE STOCKHOLDERS' EQUITY TO AVERAGE
 TANGIBLE REALIZED COMMON EQUITY:

                             THREE MONTHS ENDED    TWELVE MONTHS ENDED
                                DECEMBER 31,           DECEMBER 31,
                               2008       2007       2008       2007
                               ----       ----       ----       ----

 AVERAGE STOCKHOLDERS'
  EQUITY                      540,287    631,061    567,965    618,758
 ---------------------------------------------------------------------
 Less:  Preferred Stock         9,362         --      2,353         --
 ---------------------------------------------------------------------
      Average Goodwill
      and Other
      Intangible Assets        86,118    198,595    128,635    176,262
 ---------------------------------------------------------------------
 Plus: Average
  Accumulated Other
  Comprehensive (Income)
  Loss, Net of Taxes            4,847     12,925        876     21,333
 ---------------------------------------------------------------------

 AVERAGE TANGIBLE
  REALIZED COMMON
  EQUITY                      449,654    445,391    437,853    463,829
                          ============================================


 (c) Tangible common book value per share equals ending equity less
     preferred stock and goodwill and other intangibles at the end of
     the period, divided by actual common shares outstanding at the end of
     the period.

 RECONCILIATION OF EQUITY TO TANGIBLE COMMON EQUITY:

                             December 31,  September 30, December 31,
                                2008            2008         2007
                                ----            ----         ----

 STOCKHOLDERS' EQUITY          642,663         529,685       580,012
 -------------------------------------------------------------------
 Less: Preferred Stock          95,721              --            --
 -------------------------------------------------------------------
     Goodwill and Other
      Intangible Assets         85,545          86,551       144,556
 -------------------------------------------------------------------
 TANGIBLE COMMON EQUITY        461,397         443,134       435,456
                           =========================================


 (d) Efficiency ratio before impairment charge is calculated by
     reducing non-interest expense by the goodwill impairment charge,
     and dividing by non-interest income and net interest income (on a
     tax equivalent basis).

 RECONCILIATION OF NON-INTEREST EXPENSE TO NON-INTEREST
 EXPENSE BEFORE IMPAIRMENT CHARGE

                              THREE MONTHS ENDED   TWELVE MONTHS ENDED
                                  DECEMBER 31,         DECEMBER 31,
                                2008       2007      2008       2007
                                ----       ----      ----       ----

 NON-INTEREST EXPENSE          47,312     99,558    234,501    224,164
 ---------------------------------------------------------------------
 Less Goodwill
  Impairment Charge                --     54,035     54,986     54,035
 ---------------------------------------------------------------------
 NON-INTEREST EXPENSE
  BEFORE IMPAIRMENT
  CHARGE                       47,312     45,523    179,515    170,129
                          ============================================

 (e) Net income available to common shareholders before impairment
     charge dividend by average tangible assets. Average tangible
     assets equals average assets less goodwill and other intangibles.

 RECONCILIATION OF AVERAGE ASSETS TO TANGIBLE AVERAGE ASSETS

                            THREE MONTHS ENDED    TWELVE MONTHS ENDED
                                DECEMBER 31,          DECEMBER 31,

                              2008       2007        2008       2007
                              ----       ----        ----       ----

 AVERAGE ASSETS             6,789,083  6,513,350  6,708,086  6,169,156
 ---------------------------------------------------------------------
 Less Average Goodwill
  and Other Intangible
  Assets                       86,118    198,595    128,635    176,262
 ---------------------------------------------------------------------

 AVERAGE TANGIBLE
   ASSETS                   6,702,965  6,314,755  6,579,451  5,992,894
                          ============================================



 PARK NATIONAL CORPORATION
 Consolidated Statements of Income
 (dollars in thousands, except per share data)

                         Three Months Ended     Twelve Months Ended
                             December 31,           December 31,
                       ---------------------- -----------------------
                          2008       2007        2008         2007
 -------------------------------------------- -----------------------

 Interest income:
    Interest and fees
     on loans             $72,054     $82,202    $301,163    $320,827
 -------------------------------------------- -----------------------
    Interest on:
     Obligations of
      U.S. Government,
      its agencies and
      other securities     22,173      21,365      87,711      77,016
 -------------------------------------------- -----------------------
     Obligations of
      states and
      political subdi-
      visions                 464         712       2,171       3,061
 -------------------------------------------- -----------------------
    Other interest
     income                    32         118         294         920
 -------------------------------------------- -----------------------
     Total interest
      income               94,723     104,397     391,339     401,824
 -------------------------------------------- -----------------------

 Interest expense:
  Interest on deposits:
   Demand and savings
   deposits                 4,367       9,861      22,633      39,797
 -------------------------------------------- -----------------------
   Time deposits           15,915      20,975      67,259      81,224
 -------------------------------------------- -----------------------
  Interest on
   borrowings               9,606      13,608      45,574      46,126
 -------------------------------------------- -----------------------
   Total interest
    expense                29,888      44,444     135,466     167,147
 -------------------------------------------- -----------------------

     Net interest
      income               64,835      59,953     255,873     234,677
 -------------------------------------------- -----------------------

 Provision for loan
  losses                   32,618      18,597      70,487      29,476
 -------------------------------------------- -----------------------

     Net interest
      income after
      provision for
      loan losses          32,217      41,356     185,386     205,201
 -------------------------------------------- -----------------------

 Other income              27,049      17,944      83,719      71,640
 --------------------------------------------- -----------------------

 Gain (loss) on sale of
  securities                  219          --       1,115          --
 -------------------------------------------- -----------------------

 Other expense:
    Salaries and
     employee benefits     24,756      24,936      99,018      97,712
 -------------------------------------------- -----------------------
    Occupancy expense       2,776       2,663      11,534      10,717
 -------------------------------------------- -----------------------
    Furniture and
     equipment expense      2,451       2,295       9,756       9,259
 -------------------------------------------- -----------------------
    Goodwill Impairment
     Charge                    --      54,035      54,986      54,035
 -------------------------------------------- -----------------------
    Other expense          17,329      15,629      59,207      52,441
 -------------------------------------------- -----------------------
   Total other expense     47,312      99,558     234,501     224,164
 -------------------------------------------- -----------------------

     Income (loss)
      before income
      taxes                12,173     (40,258)     35,719      52,677
 -------------------------------------------- -----------------------

 Income taxes               1,222       2,912      22,011      29,970
 -------------------------------------------- -----------------------

     Net income
      (loss)              $10,951    ($43,170)    $13,708     $22,707
 -------------------------------------------- -----------------------

 Preferred Stock
  dividends                   142          --         142          --
 -------------------------------------------- -----------------------

     Income (loss)
      available to
      common share-
      holders             $10,809    ($43,170)    $13,566     $22,707
 ============================================ =======================

 Per Common Share:

     Net income (loss)
      - basic               $0.77      ($3.08)      $0.97       $1.60
 -------------------------------------------- -----------------------
     Net income (loss)
      - diluted             $0.77      ($3.08)      $0.97       $1.60
 -------------------------------------------- -----------------------

     Weighted average
      shares - basic   13,967,194  14,029,944  13,965,219  14,212,805
 -------------------------------------------- -----------------------
     Weighted average
      shares -
      diluted          13,967,650  14,030,499  13,965,333  14,217,483
 -------------------------------------------- -----------------------


 PARK NATIONAL CORPORATION
 Consolidated Balance Sheets
 (dollars in thousands, except share data)

                                                   December 31,
                                         -----------------------------
                                              2008            2007
 ---------------------------------------------------------------------

 Assets

    Cash and due from banks                   $150,298        $183,165
 ---------------------------------------------------------------------
    Money market instruments                    20,963          10,232
 ---------------------------------------------------------------------
    Interest bearing deposits                        1               1
 ---------------------------------------------------------------------
    Investment securities                    2,059,051       1,703,103
 ---------------------------------------------------------------------

    Loans                                    4,491,337       4,224,134
 ---------------------------------------------------------------------
    Allowance for loan losses                  100,088          87,102
 ---------------------------------------------------------------------
       Loans, net                            4,391,249       4,137,032
 ---------------------------------------------------------------------

    Bank premises and equipment,
     net                                        68,553          66,634
 ---------------------------------------------------------------------
    Goodwill                                    72,334         127,320
 ---------------------------------------------------------------------
    Other intangibles                           13,211          17,236
 ---------------------------------------------------------------------
    Other assets                               295,060         256,379
 ---------------------------------------------------------------------

             Total assets                   $7,070,720      $6,501,102
 ---------------------------------------------------------------------


 Liabilities and Stockholders' Equity

    Deposits:
       Noninterest bearing                    $782,625        $695,466
 ---------------------------------------------------------------------
       Interest bearing                      3,979,125       3,743,773
 ---------------------------------------------------------------------
          Total deposits                     4,761,750       4,439,239
 ---------------------------------------------------------------------
    Borrowings                               1,554,754       1,389,727
 ---------------------------------------------------------------------
    Other liabilities                          111,553          92,124
 ---------------------------------------------------------------------
          Total liabilities                  6,428,057       5,921,090
 ---------------------------------------------------------------------

    Stockholders' Equity:

       Preferred Stock (200,000
        shares authorized in 2008
        and -0- in 2007; 100,000
        shares issued in 2008 and
        -0- in 2007)                            95,721              --
 ---------------------------------------------------------------------
       Common stock (No par value;
        20,000,000 shares
        authorized in 2008 and 2007;
        16,151,151 shares issued
        in 2008 and 16,151,200 in
        2007)                                  301,210         301,213
 ---------------------------------------------------------------------
       Common Stock Warrants                     4,297              --
 ---------------------------------------------------------------------
       Accumulated other
        comprehensive income
        (loss), net of taxes                    10,596          (2,608)
 ---------------------------------------------------------------------
       Retained earnings                       438,504         489,511
 ---------------------------------------------------------------------
       Treasury stock (2,179,424
        shares in 2008 and
        2,186,624 shares in 2007)             (207,665)       (208,104)
 ---------------------------------------------------------------------
          Total stockholders' equity           642,663         580,012
 ---------------------------------------------------------------------

             Total liabilities and
              stockholders' equity          $7,070,720      $6,501,102
 ---------------------------------------------------------------------


 PARK NATIONAL CORPORATION
 Consolidated Average Balance Sheets
 (dollars in thousands)

                         Three Months Ended     Twelve Months Ended
                            December 31,           December 31,
                       ---------------------- -----------------------
                          2008       2007        2008        2007
 -------------------------------------------- -----------------------

 Assets

   Cash and due from
    banks                $138,004    $148,912    $143,151    $151,219
 -------------------------------------------- -----------------------
   Money market
    instruments            19,695      10,806      15,501      17,837
 -------------------------------------------- -----------------------
   Interest bearing
    deposits                    1           1           1           1
 -------------------------------------------- -----------------------
   Investment
    securities          1,815,033   1,710,357   1,806,317   1,573,882
 -------------------------------------------- -----------------------

   Loans (net of
    unearned income)    4,465,655   4,196,367   4,354,520   4,011,307
 -------------------------------------------- -----------------------
   Allowance for loan
    losses                 88,567      80,673      86,485      78,255
 -------------------------------------------- -----------------------
      Loans, net        4,377,088   4,115,694   4,268,035   3,933,052
 -------------------------------------------- -----------------------

   Bank premises and
    equipment, net         69,375      66,782      69,278      61,604
 -------------------------------------------- -----------------------
   Other assets           369,887     460,798     405,803     431,561
 -------------------------------------------- -----------------------

         Total assets  $6,789,083  $6,513,350  $6,708,086  $6,169,156
 -------------------------------------------- -----------------------


 Liabilities and
  Stockholders' Equity

   Deposits:
     Noninterest
      bearing            $770,364    $717,778    $739,994    $697,247
 -------------------------------------------- -----------------------
     Interest bearing   4,039,670   3,789,396   3,862,780   3,706,231
 -------------------------------------------- -----------------------
       Total deposits   4,810,034   4,507,174   4,602,774   4,403,478
 -------------------------------------------- -----------------------
   Borrowings           1,350,520   1,289,179   1,444,741   1,062,735
 -------------------------------------------- -----------------------
   Other liabilities       88,242      85,936      92,606      84,185
 -------------------------------------------- -----------------------
       Total liabili-
        ties            6,248,796   5,882,289   6,140,121   5,550,398
 -------------------------------------------- -----------------------


  Stockholders' Equity:

     Preferred stock        9,362          --       2,353          --
 -------------------------------------------- -----------------------
     Common stock         301,211     300,476     301,211     284,626
 -------------------------------------------- -----------------------
     Common Stock
      Warrants                420          --         106          --
 -------------------------------------------- -----------------------
     Accumulated other
      comprehensive
      (loss), net of
      taxes                (4,847)    (12,925)       (876)    (21,333)
 -------------------------------------------- -----------------------
     Retained earnings    442,092     546,636     473,236     530,324
 -------------------------------------------- -----------------------
     Treasury stock      (207,951)   (203,126)   (208,065)   (174,859)
 -------------------------------------------- -----------------------
       Total stockhold-
        ers' equity       540,287     631,061     567,965     618,758
 -------------------------------------------- -----------------------

        Total liabili-
         ties and
         stockholders'
         equity        $6,789,083  $6,513,350  $6,708,086  $6,169,156
 -------------------------------------------- -----------------------


            

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