NEWARK, Ohio, Oct. 15, 2007 (PRIME NEWSWIRE) -- Park National Corporation (Park) (AMEX:PRK) today reported net income for the third quarter of 2007 totaled $21.3 million, 10.5 percent less than the $23.8 million reported for the same period in 2006. Diluted earnings per share for the third quarter of 2007 were $1.50, a 12.3 percent decrease from 2006's third quarter diluted earnings per share of $1.71. Park's third quarter 2007 earnings include results of operations from Vision Bank, a Florida-based affiliate that joined Park on March 9, 2007.
Operating results from the first three quarters of 2007 (ended September 30, 2007) reflected net income of $65.9 million, a 7.9 percent decrease compared to $71.5 million for the first nine months of 2006. Diluted earnings per share for the first three quarters of 2007 were $4.61, 9.8 percent less than diluted earnings per share of $5.11 for the first nine months in 2006. The figures for 2007 included results from the Vision Bank operations since March 9, 2007.
According to its normal annual schedule, Park's board of directors will meet in November to consider the next quarterly dividend.
The provision for loan losses was $5.8 million for the third quarter of 2007 and $10.9 million for the first nine months of 2007 compared to $935,000 for the third quarter of 2006 and $2.4 million for the first nine months of 2006. Park's annualized net charge-off to loans ratio was 0.56 percent for the third quarter of 2007 and was 0.37 for the nine-month period ended September 30, 2007. Both ratios are above Park's past five-year annual average of 0.30 percent. The increase in charge-offs and the corresponding increase in loan loss provision for both the third quarter and the nine-month period of 2007 were due in large part to the recent difficult real estate market conditions in both Ohio and Florida.
On July 30, 2007, Park announced that it would create a single operating system for its 12 Ohio-based banking subsidiaries and divisions, resulting in a merger of its eight Ohio banking charters into one charter. "Our associates have made steady progress on our initiative to improve efficiency by standardizing and simplifying our operations in Ohio," Park Chairman C. Daniel DeLawder said. A single charter and common operating system will help each bank save valuable resources and concentrate on serving customers. The 12 Ohio banks will operate as divisions of Park subsidiary The Park National Bank. Each community bank will retain its local leadership, local decision-making and unique local identity. Park expects to begin merging its Ohio-based subsidiary banks and converting individual bank systems in the second half of 2008, subject to obtaining all necessary regulatory approvals.
Headquartered in Newark, Ohio, Park holds $6.511 billion in assets (based on asset totals as of September 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 154 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 Panama City, Florida, Vision Bank Division of Gulf Shores, Alabama, Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance), and Guardian Financial Services Company.
PARK NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
INCOME STATEMENT
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
PERCENT PERCENT
2007 2006 CHANGE 2007 2006 CHANGE
-------- -------- ------ -------- -------- ------
NET INTEREST
INCOME $ 59,416 $ 53,562 10.93% $174,724 $160,803 8.66%
-------- -------- ------ -------- -------- ------
PROVISION FOR
LOAN LOSSES 5,793 935 519.57% 10,879 2,402 352.91%
-------- -------- ------ -------- -------- ------
OTHER INCOME 19,060 16,354 16.55% 53,696 48,075 11.69%
-------- -------- ------ -------- -------- ------
GAIN (LOSS)
ON SALE OF
SECURITIES 0 97 0 97
-------- -------- ------ -------- -------- ------
OTHER EXPENSE 42,817 35,489 20.65% 124,606 105,357 18.27%
-------- -------- ------ -------- -------- ------
INCOME BEFORE
TAXES 29,866 33,589 -11.08% 92,935 101,216 -8.18%
-------- -------- ------ -------- -------- ------
NET INCOME 21,304 23,805 -10.51% 65,877 71,498 -7.86%
-------- -------- ------ -------- -------- ------
NET INCOME
PER SHARE
- BASIC 1.50 1.72 -12.79% 4.62 5.12 -9.77%
-------- -------- ------ -------- -------- ------
NET INCOME
PER SHARE
- DILUTED 1.50 1.71 -12.28% 4.61 5.11 -9.78%
-------- -------- ------ -------- -------- ------
CASH DIVIDENDS
PER SHARE 0.93 0.92 1.09% 2.79 2.76 1.09%
-------- -------- ------ -------- -------- ------
RATIOS AND OTHER
INFORMATION
RETURN ON
AVERAGE
ASSETS 1.35% 1.77% 1.46% 1.78%
-------- -------- -------- --------
RETURN ON
AVERAGE
EQUITY 13.69% 17.66% 14.33% 17.73%
-------- -------- -------- --------
RETURN ON
AVERAGE
TANGIBLE
REALIZED
EQUITY (a) 18.89% 19.06% 18.74% 19.35%
-------- -------- -------- --------
YIELD ON
EARNING
ASSETS 7.26% 6.87% 7.23% 6.74%
-------- -------- -------- --------
COST OF
PAYING
LIABILITIES 3.62% 3.10% 3.52% 2.89%
-------- -------- -------- --------
NET INTEREST
MARGIN 4.17% 4.33% 4.26% 4.36%
-------- -------- -------- --------
EFFICIENCY
RATIO 54.25% 50.39% 54.22% 50.05%
-------- -------- -------- --------
NET LOAN
CHARGE-OFFS $ 5,851 $ 935 $ 10,866 $ 2,398
-------- -------- -------- --------
NET CHARGE-
OFFS AS A
PERCENT OF
LOANS 0.56% 0.11% 0.37% 0.10%
-------- -------- -------- --------
BALANCE SHEET
AT SEPTEMBER 30, PERCENT
2007 2006 CHANGE
---------- ---------- ------
INVESTMENTS $1,735,145 $1,563,706 10.96%
---------- ---------- ------
LOANS 4,174,652 3,390,477 23.13%
---------- ---------- ------
LOAN LOSS RESERVE 79,846 69,698 14.56%
---------- ---------- ------
GOODWILL AND OTHER INTANGIBLES 199,679 67,277 196.80%
---------- ---------- ------
TOTAL ASSETS 6,511,136 5,393,333 20.73%
---------- ---------- ------
TOTAL DEPOSITS 4,535,172 3,889,439 16.60%
---------- ---------- ------
BORROWINGS 1,276,321 871,336 46.48%
---------- ---------- ------
EQUITY 628,338 558,206 12.56%
---------- ---------- ------
BOOK VALUE PER SHARE 44.57 40.37 10.40%
---------- ---------- ------
NONPERFORMING LOANS 61,444 22,262 176.00%
---------- ---------- ------
NONPERFORMING ASSETS 69,509 25,469 172.92%
---------- ---------- ------
PAST DUE 90 DAY LOANS 4,734 6,710 -29.45%
---------- ---------- ------
RATIOS
LOANS/ASSETS 64.12% 62.86%
---------- ------
NONPERFORMING LOANS/LOANS 1.47% 0.66%
---------- ------
PAST DUE 90 DAY LOANS/LOANS 0.11% 0.20%
---------- ------
LOAN LOSS RESERVE/LOANS 1.91% 2.06%
---------- ------
EQUITY/ASSETS 9.65% 10.35%
---------- ------
(a) Net Income for each period divided by average tangible
realized equity during the period. Average tangible realized
equity equals average stockholders' equity during the applicable
period less (i) average goodwill and other intangible assets
during the period and (ii) average accumulated other
comprehensive (loss), net of taxes, during the period.
RECONCILIATION OF AVERAGE STOCKHOLDERS' EQUITY TO
AVERAGE TANGIBLE REALIZED EQUITY:
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2007 2006 2007 2006
------- ------- ------- -------
AVERAGE STOCKHOLDERS' EQUITY 617,483 534,805 614,612 539,102
------- ------- ------- -------
Less Average Goodwill and Other
Intangible Assets 197,776 67,676 168,734 68,309
------- ------- ------- -------
Plus Average Accumulated Other
Comprehensive Loss,
Net of Taxes 27,616 28,471 24,167 23,203
------- ------- ------- -------
AVERAGE TANGIBLE
REALIZED EQUITY 447,323 495,600 470,045 493,996
======= ======= ======= =======
PARK NATIONAL CORPORATION
Consolidated Statements of Income
(dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2007 2006 2007 2006
----------------------- -----------------------
Interest income:
Interest and fees
on loans $ 83,964 $ 65,843 $ 238,625 $ 188,991
----------------------- -----------------------
Interest on:
Obligations of U.S.
Government, its
agencies and
other securities 18,826 18,430 55,651 57,032
----------------------- -----------------------
Obligations of
states and
political sub-
divisions 754 893 2,349 2,815
----------------------- -----------------------
Other interest
income 222 124 802 346
----------------------- -----------------------
Total interest
income 103,766 85,290 297,427 249,184
----------------------- -----------------------
Interest expense:
Interest on deposits:
Demand and savings
deposits 11,309 7,397 29,936 18,645
----------------------- -----------------------
Time deposits 21,440 14,914 60,249 40,628
----------------------- -----------------------
Interest on
borrowings 11,601 9,417 32,518 29,108
----------------------- -----------------------
Total interest
expense 44,350 31,728 122,703 88,381
----------------------- -----------------------
Net interest
income 59,416 53,562 174,724 160,803
----------------------- -----------------------
Provision for loan
losses 5,793 935 10,879 2,402
----------------------- -----------------------
Net interest
income after
provision for
loan losses 53,623 52,627 163,845 158,401
----------------------- -----------------------
Other income 19,060 16,354 53,696 48,075
----------------------- -----------------------
Gain (loss) on sale
of securities -- 97 -- 97
----------------------- -----------------------
Other expense:
Salaries and
employee benefits 24,386 20,268 71,014 59,834
----------------------- -----------------------
Occupancy expense 2,678 2,275 7,991 6,719
----------------------- -----------------------
Furniture and
equipment expense 1,587 1,273 4,503 3,964
----------------------- -----------------------
Other expense 14,166 11,673 41,098 34,840
----------------------- -----------------------
Total other
expense 42,817 35,489 124,606 105,357
----------------------- -----------------------
Income before
income taxes 29,866 33,589 92,935 101,216
----------------------- -----------------------
Income taxes 8,562 9,784 27,058 29,718
----------------------- -----------------------
Net income $ 21,304 $ 23,805 $ 65,877 $ 71,498
======================= =======================
Per Share:
Net income
- basic $ 1.50 $ 1.72 $ 4.62 $ 5.12
----------------------- -----------------------
Net income
- diluted $ 1.50 $ 1.71 $ 4.61 $ 5.11
----------------------- -----------------------
Weighted average
shares - basic 14,193,019 13,859,498 14,273,759 13,957,097
----------------------- -----------------------
Weighted average
shares - diluted 14,193,019 13,888,458 14,279,810 13,998,253
----------------------- -----------------------
PARK NATIONAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except share data)
September 30,
--------------------------
2007 2006
---------------------------------------------------------------------
Assets
Cash and due from banks $ 154,472 $ 150,251
----------- -----------
Money market instruments 11,991 5,541
----------- -----------
Interest bearing deposits 1 1
----------- -----------
Investment securities 1,735,145 1,563,706
----------- -----------
Loans (net of unearned income) 4,174,652 3,390,477
----------- -----------
Allowance for loan losses 79,846 69,698
----------- -----------
Loans, net 4,094,806 3,320,779
----------- -----------
Bank premises and equipment, net 66,527 46,672
----------- -----------
Other assets 448,194 306,383
----------- -----------
Total assets $ 6,511,136 $ 5,393,333
----------- -----------
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing $ 692,749 $ 686,501
----------- -----------
Interest bearing 3,842,423 3,202,938
----------- -----------
Total deposits 4,535,172 3,889,439
----------- -----------
Borrowings 1,276,321 871,336
----------- -----------
Other liabilities 71,305 74,352
----------- -----------
Total liabilities 5,882,798 4,835,127
----------- -----------
Stockholders' Equity:
Common stock (No par value; 20,000,000
shares authorized in 2007 and 2006;
16,151,213 shares issued in 2007 and
15,272,258 in 2006) 300,321 208,403
----------- -----------
Accumulated other comprehensive
(loss), net of taxes (19,945) (16,056)
----------- -----------
Retained earnings 545,854 509,917
----------- -----------
Treasury stock (2,053,764 shares in
2007 and 1,443,789 shares in 2006) (197,892) (144,058)
----------- -----------
Total stockholders' equity 628,338 558,206
----------- -----------
Total liabilities and stockholders'
equity $ 6,511,136 $ 5,393,333
----------- -----------
PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
(dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2007 2006 2007 2006
------------------------------------------- -----------------------
Assets
Cash and due
from banks $ 147,393 $ 144,600 $ 151,997 $ 143,822
---------- ---------- ---------- ----------
Money market
instruments 16,800 7,621 20,206 8,031
---------- ---------- ---------- ----------
Interest bearing
deposits 1 1 1 112
---------- ---------- ---------- ----------
Investment
securities 1,531,063 1,533,314 1,527,891 1,595,671
---------- ---------- ---------- ----------
Loans (net of
unearned income) 4,115,617 3,367,532 3,948,942 3,339,023
---------- ---------- ---------- ----------
Allowance for
loan losses 79,862 70,304 77,441 70,453
---------- ---------- ---------- ----------
Loans, net 4,035,755 3,297,228 3,871,501 3,268,570
---------- ---------- ---------- ----------
Bank premises and
equipment, net 64,747 46,989 59,860 46,958
---------- ---------- ---------- ----------
Other assets 458,025 319,819 421,708 316,630
---------- ---------- ---------- ----------
Total assets $6,253,784 $5,349,572 $6,053,164 $5,379,794
---------- ---------- ---------- ----------
Liabilities and
Stockholders' Equity
Deposits:
Noninterest
bearing $ 699,274 $ 673,957 $ 690,323 $ 665,573
---------- ---------- ---------- ----------
Interest bearing 3,837,602 3,200,769 3,678,205 3,162,824
---------- ---------- ---------- ----------
Total deposits 4,536,876 3,874,726 4,368,528 3,828,397
---------- ---------- ---------- ----------
Borrowings 1,019,870 858,131 986,424 930,177
---------- ---------- ---------- ----------
Other liabilities 79,555 81,910 83,600 82,118
---------- ---------- ---------- ----------
Total liabilities 5,636,301 4,814,767 5,438,552 4,840,692
---------- ---------- ---------- ----------
Stockholders' Equity:
Common stock 300,322 208,403 279,285 208,400
---------- ---------- ---------- ----------
Accumulated other
comprehensive
(loss), net
of taxes (27,616) (28,471) (24,167) (23,203)
---------- ---------- ---------- ----------
Retained earnings 534,323 495,813 524,827 485,030
---------- ---------- ---------- ----------
Treasury stock (189,546) (140,940) (165,333) (131,125)
---------- ---------- ---------- ----------
Total stockholders'
equity 617,483 534,805 614,612 539,102
---------- ---------- ---------- ----------
Total liabilities
and stockholders'
equity $6,253,784 $5,349,572 $6,053,164 $5,379,794
---------- ---------- ---------- ----------