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Park National Corporation Reports Third Quarter Financial Results and Continues $0.94 Cash Dividend

Park National Corporation Reports Third Quarter Financial Results and
Continues $0.94 Cash Dividend

NEWARK, Ohio, Oct. 28, 2013 (GLOBE NEWSWIRE) -- Park National Corporation
(Park) (NYSE MKT:PRK) today reported financial results for the three-month
(third quarter) and nine-month periods ended September 30, 2013. Park's
quarterly net income rose compared to 2012, and loan growth continued in both
the retail and commercial categories. Also, Park's board of directors declared
a $0.94 per common share quarterly cash dividend, payable on December 10, 2013
to common shareholders of record as of November 22, 2013.

Net income for the third quarter of 2013 was $19.0 million, compared to $12.0
million for the same period in 2012. Net income for the nine months ended
September 30, 2013 was $59.8 million. Net income for the same period in 2012
was $62.3 million, which included a gain of $22.2 million ($14.4 million
after-tax) from the sale of substantially all of the performing loans,
operating assets and the liabilities of Vision Bank. That transaction closed
on February 16, 2012.

Excluding the gain from the sale of the Vision Bank business in 2012, net
income for the first nine months of 2012 would have been $47.9 million. Park's
net income in the first nine months of 2013 of $59.8 million was an increase
of $11.9 million, or 24.8 percent, above first nine months of 2012 results
excluding the gain related to this sale.

Net income per diluted common share for the third quarter of 2013 was $1.23,
compared to $0.78 in the same period of 2012. Net income per diluted common
share for the first nine months of 2013 was $3.88. Net income per diluted
common share was $3.82 for the first nine months of 2012. Excluding the gain
on sale of the Vision Bank business, net income per diluted common share would
have been $2.88 for the nine months ended September 30, 2012.

"The economy continues to improve, although slowly. And in spite of
uncertainty at the national level, Park affiliates remain focused and
decisive," said Park Chairman C. Daniel DeLawder. "We are proud of the way our
associates attract and retain new relationships from customers who value our
service-oriented philosophy. We are very pleased with our results in the first
nine months of 2013."

The Park National Bank Results

Park's community-banking subsidiary in Ohio, The Park National Bank, reported
net income of $57.5 million for the first nine months of 2013, compared to net
income of $67.1 million for the same period in 2012. The Park National Bank
had total assets of $6.6 billion at both September 30, 2013 and 2012. This
performance generated an annualized return on average assets of 1.17 percent
and 1.37 percent for the bank through the first nine months of 2013 and 2012,
respectively.

The Park National Bank loan portfolio continued to experience its measured
growth during the third quarter of 2013. Loans outstanding at September 30,
2013 of $4.51 billion represented an increase of $66 million, compared to
$4.44 billion outstanding at June 30, 2013. Further, this represented a twelve
month increase of $197 million, compared to the loans outstanding of $4.31
billion at September 30, 2012.

"Our experienced associates are talented and possess a deep knowledge of all
types of consumer, mortgage and business loans," said Park President David L.
Trautman. "We cannot and do not compel customers and prospects to borrow, but
when they are ready, so are we. And our third-quarter performance indicates
customers were ready."

About Park National Corporation

Headquartered in Newark, Ohio, Park National Corporation had $6.7 billion in
total assets (as of September 30, 2013). Park consists of 11 community bank
divisions, a non-bank subsidiary and two specialty finance companies. Park's
Ohio-based banking operations are conducted through Park subsidiary The Park
National Bank and its divisions which include Fairfield National Bank
Division, Richland Bank Division, Century National Bank Division, First-Knox
National Bank Division, Farmers & Savings Bank Division, United Bank Division,
Second National Bank Division, Security National Bank Division, Unity National
Bank Division, The Park National Bank of Southwest Ohio & Northern Kentucky
Division and Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance). Park also
includes Guardian Financial Services Company (d.b.a. Guardian Finance Company)
and SE Property Holdings, LLC.

Complete financial tables are listed below…

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995

Park cautions that any forward-looking statements contained in this Current
Report on Form 8-K or made by management of Park 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: Park's ability to execute its business plan successfully
and within the expected timeframe; general economic and financial market
conditions, and the uneven spread of positive impacts of the recovery on the
economy, specifically in the real estate markets and the credit markets,
either nationally or in the states in which Park and its subsidiaries do
business, may be worse or slower than expected which could adversely impact
the demand for loan, deposit and other financial services as well as loan
delinquencies and defaults; changes in interest rates and prices may adversely
impact the value of securities, loans, deposits and other financial
instruments and the interest rate sensitivity of our consolidated balance
sheet; changes in consumer spending, borrowing and saving habits; changes in
unemployment; asset/liability repricing risks and liquidity risks; our
liquidity requirements could be adversely affected by changes to regulations
governing bank capital and liquidity standards as well as by changes in our
assets and liabilities; competitive factors among financial services
organizations could increase significantly, including product and pricing
pressures and our ability to attract, develop and retain qualified bank
professionals; 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, including changes in laws and
regulations concerning taxes, accounting, banking, securities and other
aspects of the financial services industry, specifically the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act"), as
well as future regulations which will be adopted by the relevant regulatory
agencies, including the Consumer Financial Protection Bureau, to implement the
Dodd-Frank Act's provisions, the Budget Control Act of 2011 and the American
Taxpayer Relief Act of 2012; the effect of changes in accounting policies and
practices, as may be adopted by the Financial Accounting Standards Board, the
SEC, the Public Company Accounting Oversight Board and other regulatory
agencies, and the accuracy of our assumptions and estimates used to prepare
our financial statements; the effect of fiscal and governmental policies of
the United States federal government; the adequacy of our risk management
program; a failure in or breach of our operational or security systems or
infrastructure, or those of our third-party vendors and other service
providers, including as a result of cyber attacks; demand for loans in the
respective market areas served by Park and its subsidiaries; the outcome of
future negotiations surrounding the United States debt and budget, which may
be adverse due to its impact on tax increases, governmental spending and
consumer confidence and spending; 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, 2012 and in "Item 1A. Risk Factors" of Part II of
Park's Quarterly Report on Form 10-Q for the quarterly period ended June 30,
2013. Park does not undertake, and specifically disclaims any obligation, to
publicly release the results 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 was made, or reflect the
occurrence of unanticipated events, except to the extent required by law.


PARK NATIONAL CORPORATION
Financial Highlights
Three months ended September 30, 2013, June 30, 2013, and September 30, 2012
                                                                 
                    2013         2013         2012         Percent change vs.
(in thousands,
except share and per 3rd QTR      2nd QTR      3rd QTR      2Q '13    3Q '12
share data)
INCOME STATEMENT:                                                 
Net interest income  $54,960    $54,712    $58,016    0.5%      (5.3)%
Provision for loan   2,498        673          16,655       271.2%    (85.0)%
losses
Other income         17,396       19,298       18,079       (9.9)%    (3.8)%
Total other expense  44,715       46,570       45,683       (4.0)%    (2.1)%
Income before income $25,143    $26,767    $13,757    (6.1)%    82.8%
taxes
Income taxes         6,114        6,733        1,775        (9.2)%    244.5%
Net income           $19,029    $20,034    $11,982    (5.0)%    58.8%
                                                                 
MARKET DATA:                                                      
Earnings per common  $1.23      $1.30      $0.78      (5.4)%    57.7%
share - basic (b)
Earnings per common  1.23         1.3          0.78         (5.4)%    57.7%
share - diluted (b)
Cash dividends per   0.94         0.94         0.94         —%        —%
common share
Common book value
per common share at  41.06        41.48        42.78        (1.0)%    (4.0)%
period end
Stock price per
common share at      79.08        68.79        70.02        15.0%     12.9%
period end
Market
capitalization at    1,218,778    1,060,190    1,078,720    15.0%     13.0%
period end
                                                                 
Weighted average
common shares -      15,411,972   15,411,981   15,405,894   —%        —%
basic (a)
Weighted average
common shares -      15,411,972   15,411,981   15,405,894   —%        —%
diluted (a)
Common shares
outstanding at       15,411,963   15,411,977   15,405,887   —%        —%
period end
                                                                 
PERFORMANCE RATIOS:                                               
(annualized)
Return on average    1.12%        1.20%        0.70%        (6.7)%    60.0%
assets (a)(b)
Return on average    11.84%       12.26%       7.19%        (3.4)%    64.7%
common equity (a)(b)
Yield on loans       4.95%        5.08%        5.31%        (2.6)%    (6.8)%
Yield on investments 2.55%        2.68%        3.04%        (4.9)%    (16.1)%
Yield on money       0.25%        0.25%        0.25%        —%        —%
markets
Yield on earning     4.19%        4.31%        4.56%        (2.8)%    (8.1)%
assets
Cost of interest     0.33%        0.36%        0.46%        (8.3)%    (28.3)%
bearing deposits
Cost of borrowings   2.54%        2.64%        2.79%        (3.8)%    (9.0)%
Cost of paying       0.84%        0.88%        1.00%        (4.5)%    (16.0)%
liabilities
Net interest margin  3.52%        3.61%        3.75%        (2.5)%    (6.1)%
Efficiency ratio (g) 61.57%       62.61%       59.71%       (1.7)%    3.1%
                                                                 
OTHER RATIOS (NON                                                 
GAAP):
Annualized return on
average tangible     1.13%        1.22%        0.71%        (7.4)%    59.2%
assets (a)(b)(e)
Annualized return on
average tangible     13.36%       13.79%       8.07%        (3.1)%    65.6%
common equity
(a)(b)(c)
Tangible common book
value per common     $36.36     $36.77     $38.06     (1.1)%    (4.5)%
share (d)
                                                                 
                                                                 
Note: Explanations (a) -(g) are included at the end of the financial
highlights.
                                                                 
                                                                 
PARK NATIONAL CORPORATION
Financial Highlights
Three months ended September 30, 2013, June 30, 2013, and September 30, 2012
                                                                 
                                                        Percent change vs.
BALANCE SHEET:       30-Sep-13    30-Jun-13    30-Sep-12    2Q '13    3Q '12
                                                                 
Investment           $1,389,387 $1,345,069 $1,653,381 3.3%      (16.0)%
securities
Loans                4,573,537    4,510,716    4,400,510    1.4%      3.9%
Allowance for loan   57,894       55,111       55,565       5.0%      4.2%
losses
Goodwill and other   72,334       72,446       72,810       (0.2)%    (0.7)%
intangibles
Other real estate    35,412       35,662       35,633       (0.7)%    (0.6)%
owned
Total assets         6,705,891    6,640,473    6,752,938    1.0%      (0.7)%
Total deposits       4,850,692    4,851,314    4,793,077    —%        1.2%
Borrowings           1,162,091    1,086,875    1,187,431    6.9%      (2.1)%
Stockholders' equity 632,745      639,219      659,127      (1.0)%    (4.0)%
Common equity        632,745      639,219      659,127      (1.0)%    (4.0)%
Tangible common      560,411      566,773      586,317      (1.1)%    (4.4)%
equity (d)
Nonperforming loans  162,522      169,313      193,508      (4.0)%    (16.0)%
Nonperforming assets 197,934      204,975      229,141      (3.4)%    (13.6)%
                                                                 
ASSET QUALITY                                                     
RATIOS:
Loans as a % of      68.20%       67.93%       65.16%       0.4%      4.7%
period end assets
Nonperforming loans
as a % of period end 3.55%        3.75%        4.40%        (5.3)%    (19.3)%
loans
Nonperforming assets
/ Period end loans + 4.29%        4.51%        5.16%        (4.9)%    (16.9)%
OREO
Allowance for loan
losses as a % of     1.27%        1.22%        1.26%        4.1%      0.8%
period end loans
Net loan charge-offs $ (285)      $877       $19,786    (132.5)%  (101.4)%
(recoveries)
Annualized net loan
charge-offs          (0.02)%      0.08%        1.79%        (125.0)%  (101.1)%
(recoveries) as a %
of average loans (a)
                                                                 
CAPITAL & LIQUIDITY:                                              
Total equity /       9.44%        9.63%        9.76%        (2.0)%    (3.3)%
Period end assets
Common equity /      9.44%        9.63%        9.76%        (2.0)%    (3.3)%
Period end assets
Tangible common
equity (d) /         8.45%        8.63%        8.78%        (2.1)%    (3.8)%
Tangible assets (f)
Average equity /     9.46%        9.83%        9.80%        (3.8)%    (3.5)%
Average assets (a)
Average equity /     14.04%       14.62%       15.10%       (4.0)%    (7.0)%
Average loans (a)
Average loans /      92.77%       92.52%       90.46%       0.3%      2.6%
Average deposits (a)
                                                                 
N.M. - Not meaningful
Note: Explanations (a) -(g) are included at the end of the financial
highlights.


PARK NATIONAL CORPORATION
Financial Highlights
Nine months ended September 30, 2013 and 2012
                                                             
(in thousands, except share and per share 2013       2012       Percent change
data)                                                           vs. 2012
INCOME STATEMENT:                                             
Net interest income                       $165,125 $178,424 (7.5)%
Provision for loan losses                 3,500      30,231     (88.4)%
Gain on sale of Vision Bank business      —          22,167     N.M.
Other income                              55,499     53,040     4.6%
Total other expense                       137,383    139,957    (1.8)%
Income before income taxes                $79,741  $83,443  (4.4)%
Income taxes                              19,968     21,100     (5.4)%
Net income                                $59,773  $62,343  (4.1)%
Preferred stock dividends and accretion   —          3,425      N.M.
Net income available to common            $59,773  $58,918  1.5%
shareholders
                                                             
MARKET DATA:                                                  
Earnings per common share - basic (b)     $3.88    $3.82    1.6%
Earnings per common share - diluted (b)   3.88       3.82       1.6%
Cash dividends per common share           2.82       2.82       —%
                                                             
Weighted average common shares - basic    15,411,981 15,405,902 —%
(a)
Weighted average common shares - diluted  15,411,981 15,409,186 —%
(a)
                                                             
PERFORMANCE RATIOS: (Annualized)                              
Return on average assets (a)(b)           1.19%      1.16%      2.6%
Return on average common equity (a)(b)    12.32%     11.95%     3.1%
Yield on loans                            5.05%      5.40%      (6.5)%
Yield on investments                      2.72%      3.23%      (15.8)%
Yield on money markets                    0.25%      0.25%      —%
Yield on earning assets                   4.30%      4.69%      (8.3)%
Cost of interest bearing deposits         0.36%      0.51%      (29.4)%
Cost of borrowings                        2.60%      2.77%      (6.1)%
Cost of paying liabilities                0.87%      1.03%      (15.5)%
Net interest margin                       3.61%      3.86%      (6.5)%
Efficiency ratio (g)                      61.98%     54.91%     12.9%
                                                             
ASSET QUALITY RATIOS:                                         
Net loan charge-offs                      $1,143   $43,110  (97.3)%
Annualized net loan charge-offs as a % of 0.03%      1.31%      (97.7)%
average loans (a)
                                                             
CAPITAL & LIQUIDITY:                                          
Average stockholders' equity / Average    9.68%      10.30%     (6.0)%
assets (a)
Average stockholders' equity / Average    14.45%     15.86%     (8.9)%
loans (a)
Average loans / Average deposits (a)      92.28%     90.70%     1.7%
                                                             
OTHER RATIOS (NON GAAP):                                      
Annualized return on average tangible     1.21%      1.17%      3.4%
assets (a)(b)(e)
Annualized return on average tangible     13.88%     13.45%     3.2%
common equity (a)(b)(c)
                                                             
Note: Explanations (a)-(g) are included                       
at the end of the financial highlights.

                                                                  
PARK NATIONAL CORPORATION                                          
Financial Highlights (continued)                                   
                                                              
(a) Averages are for the quarters ended September 30, 2013, June   
30, 2013 and September 30, 2012, as appropriate.
(b) Reported measure uses net income available to common           
shareholders.
(c) Net income available to common shareholders for each period
divided by average tangible common equity during the
period.Average tangible common equity equals average              
stockholders' equity during the applicable period less (i) average
preferred stock during the applicable period and (ii) average
goodwill and other intangibles during the applicable period.
                                                              
RECONCILIATION OF AVERAGE STOCKHOLDERS' EQUITY TO AVERAGE TANGIBLE COMMON
EQUITY:
              THREE MONTHS ENDED                     NINE MONTHS ENDED
               September    June 30,     September    September    September
              30,          2013         30,          30,          30, 2012
               2013                      2012         2013
AVERAGE
STOCKHOLDERS'  $637,529   $655,432   $663,314   $648,446   $699,575
EQUITY
Less:Average
preferred      —            —            —            —            41,244
stock
Less: Average
goodwill and   72,397       72,509       72,888       72,508       73,177
other
intangibles
AVERAGE
TANGIBLE       $565,132   $582,923   $590,426   $575,938   $585,154
COMMON EQUITY
                                                              
(d) Tangible common equity equals ending
stockholders' equity less preferred stock and                     
goodwill and other intangibles, in each case at the
end of the period.
                                                              
RECONCILIATION
OF
STOCKHOLDERS'                                                  
EQUITY TO
TANGIBLE
COMMON EQUITY:
               September    June 30,     September
              30,          2013         30,                      
               2013                      2012
STOCKHOLDERS'  $632,745   $639,219   $659,127               
EQUITY
Less:
Preferred      —            —            —                        
stock
Less: Goodwill
and other      72,334       72,446       72,810                   
intangibles
TANGIBLE       $560,411   $566,773   $586,317               
COMMON EQUITY
                                                              
(e) Net income available to common shareholders for each period divided by
average tangible assets during the period.Average tangible assets equals
average assets less average goodwill and other intangibles, in each case during
the applicable period.
                                                              
RECONCILIATION
OF AVERAGE
ASSETS TO                                                      
AVERAGE
TANGIBLE
ASSETS:
              THREE MONTHS ENDED                     NINE MONTHS ENDED
               September    June 30,     September    September    September
              30,          2013         30,          30,          30, 2012
               2013                      2012         2013
AVERAGE ASSETS $6,739,055 $6,670,829 $6,769,735 $6,701,287 $6,792,822
Less:Average
goodwill and   72,397       72,509       72,888       72,508       73,177
other
intangibles
AVERAGE
TANGIBLE       $6,666,658 $6,598,320 $6,696,847 $6,628,779 $6,719,645
ASSETS
                                                              
(f) Tangible common equity divided by tangible assets. Tangible assets equals
total assets less goodwill and other intangibles, in each case at the end of
the period.
                                                              
RECONCILIATION
OF TOTAL
ASSETS TO                                                      
TANGIBLE
ASSETS:
               September    June 30,     September
              30,          2013         30,                      
               2013                      2012
TOTAL ASSETS   $6,705,891 $6,640,473 $6,752,938             
Less: Goodwill
and other      72,334       72,446       72,810                   
intangibles
TANGIBLE       $6,633,557 $6,568,027 $6,680,128             
ASSETS
                                                              
(g) Efficiency ratio is calculated by taking total other expense divided by the
sum of fully taxable equivalent net interest income and other income. Fully
taxable equivalent net interest income reconciliation is shown below assuming a
35% tax rate. Additionally, net interest margin is calculated on a fully
taxable equivalent basis.
                                                              
RECONCILIATION
OF FULLY
TAXABLE
EQUIVALENT NET                                                 
INTEREST
INCOME TO NET
INTEREST
INCOME
              THREE MONTHS ENDED                     NINE MONTHS ENDED
               September    June 30,     September    September    September
              30,          2013         30,          30,          30,
               2013                      2012         2013         2012
Interest       $65,410    $65,279    $70,618    $196,881   $216,942
income
Fully taxable
equivalent     273          368          408          1,029        1,241
adjustment
Fully taxable
equivalent     $65,683    $65,647    $71,026    $197,910   $218,183
interest
income
Interest       10,450       10,567       12,602       31,756       38,518
expense
Fully taxable
equivalent net $55,233    $55,080    $58,424    $166,154   $179,665
interest
income


PARK NATIONAL CORPORATION
Consolidated Statements of Income
                                                                
                                  Three Months Ended    Nine Months Ended
                                  September 30,         September 30,
(in thousands, except share and    2013       2012       2013       2012
per share data)
                                                                
Interest income:                                                 
Interest and fees on loans         56,337     58,269     168,500    176,967
Interest on:                                                     
Obligations of U.S. Government,                                  
its agencies
and other securities               8,880      12,187     27,795     39,565
Obligations of states and          7          33         40         121
political subdivisions
Other interest income              186        129        546        289
Total interest income              65,410     70,618     196,881    216,942
                                                                
Interest expense:                                                
Interest on deposits:                                            
Demand and savings deposits        422        636        1,391      1,992
Time deposits                      2,729      3,757      8,719      12,517
Interest on borrowings             7,299      8,209      21,646     24,009
Total interest expense             10,450     12,602     31,756     38,518
                                                                
Net interest income                54,960     58,016     165,125    178,424
                                                                
Provision for loan losses          2,498      16,655     3,500      30,231
                                                                
Net interest income after          52,462     41,361     161,625    148,193
provision for loan losses
                                                                
Gain on sale of Vision Bank        —          —          —          22,167
business
Other income                       17,396     18,079     55,499     53,040
                                                                
Total other expense                44,715     45,683     137,383    139,957
                                                                
Income before income taxes         25,143     13,757     79,741     83,443
                                                                
Income taxes                       6,114      1,775      19,968     21,100
                                                                
Net income                         19,029     11,982     59,773     62,343
                                                                
Preferred stock dividends and      —          —          —          3,425
accretion
                                                                
Net income available to common     19,029     11,982     59,773     58,918
shareholders
                                                                
Per Common Share:                                                
Net income- basic                 1.23       0.78       3.88       3.82
Net income- diluted               1.23       0.78       3.88       3.82
                                                                
Weighted average shares - basic    15,411,972 15,405,894 15,411,981 15,405,902
Weighted average shares - diluted  15,411,972 15,405,894 15,411,981 15,409,186
                                                                
Cash Dividends Declared            0.94       0.94       2.82       2.82


PARK NATIONAL CORPORATION
Consolidated Balance Sheets
                                                           
(in thousands, except share data)         September 30, 2013 December 31, 2012
                                                           
Assets                                                      
                                                           
Cash and due from banks                   $135,440         $164,120
Money market instruments                  179,434            37,185
Investment securities                     1,389,387          1,581,751
Loans                                     4,573,537          4,450,322
Allowance for loan losses                 57,894             55,537
Loans, net                                4,515,643          4,394,785
Bank premises and equipment, net          56,116             53,751
Goodwill and other intangibles            72,334             72,671
Other real estate owned                   35,412             35,718
Other assets                              322,125            302,822
Total assets                              $ 6,705,891        $ 6,642,803
                                                           
Liabilities and Stockholders' Equity                        
                                                           
Deposits:                                                   
Noninterest bearing                       $ 1,109,194        $ 1,137,290
Interest bearing                          3,741,498          3,578,742
Total deposits                            4,850,692          4,716,032
Borrowings                                1,162,091          1,206,076
Other liabilities                         60,363             70,329
Total liabilities                         $6,073,146       $5,992,437
                                                           
                                                           
Stockholders' Equity:                                       
Common stock (No par value; 20,000,000
shares authorized in 2013 and
2012;16,150,952 shares issued at         $302,652         $302,654
September 30, 2013 and 16,150,987 shares
issued at December 31, 2012)
Accumulated other comprehensive loss, net (51,449)           (17,518)
of taxes
Retained earnings                         457,917            441,605
Treasury stock (738,989 shares at         (76,375)           (76,375)
September 30, 2013 and December 31, 2012)
Total stockholders' equity                $632,745         $650,366
                                                           
Total liabilities and stockholders'       $6,705,891       $6,642,803
equity


PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
                                                              
                          Three Months Ended        Nine Months Ended
                          September 30,             September 30,
(in thousands)             2013         2012         2013         2012
                                                              
Assets                                                         
                                                              
Cash and due from banks    $108,813   $115,198   $110,847   $122,258
Money market instruments   295,634      208,191      293,511      156,830
Investment securities     1,359,690    1,621,365    1,370,627    1,664,365
Loans                      4,539,685    4,392,067    4,487,756    4,410,042
Allowance for loan losses  55,697       59,686       56,186       63,525
Loans, net                 4,483,988    4,332,381    4,431,570    4,346,517
Bank premises and          56,643       52,671       56,352       55,123
equipment, net
Goodwill and other         72,397       72,888       72,508       73,177
intangibles
Other real estate owned    36,363       36,575       35,446       39,760
Other assets               325,527      330,466      330,426      334,792
Total assets               $6,739,055 $6,769,735 $6,701,287 $6,792,822
                                                              
                                                              
Liabilities and                                                
Stockholders' Equity
                                                              
Deposits:                                                      
Noninterest bearing        $1,096,178 $1,026,690 $1,101,929 $1,034,801
Interest bearing           3,797,118    3,828,830    3,761,111    3,827,370
Total deposits             4,893,296    4,855,520    4,863,040    4,862,171
Borrowings                 1,137,877    1,172,379    1,114,113    1,155,900
Other liabilities          70,353       78,522       75,688       75,176
Total liabilities          $6,101,526 $6,106,421 $6,052,841 $6,093,247
                                                              
Stockholders' Equity:                                          
Preferred stock            $ —          $ —          $ —          $41,244
Common stock              302,652      302,655      302,653      301,992
Common stock warrants      —            —            —            1,929
Accumulated other
comprehensive loss, net of (43,255)     (7,009)      (27,825)     (7,874)
taxes
Retained earnings          454,507      444,675      449,993      439,291
Treasury stock            (76,375)     (77,007)     (76,375)     (77,007)
Total stockholders' equity $637,529   $663,314   $648,446   $699,575
                                                              
Total liabilities and      $6,739,055 $6,769,735 $6,701,287 $6,792,822
stockholders' equity


PARK NATIONAL CORPORATION
Consolidated Statements of Income - Linked Quarters
                                                                
                            2013      2013      2013      2012      2012
(in thousands, except per    3rd QTR   2nd QTR   1st QTR   4th QTR   3rd QTR
share data)
                                                                
Interest income:                                                 
Interest and fees on loans  $56,337 $56,388 $55,775 $57,671 $58,269
Interest on:                                                     
Obligations of U.S.
Government, its agencies and 8,880     8,673     10,242    10,984    12,187
other securities
Obligations of states and    7         16        17        19        33
political subdivisions
Other interest income        186       202       158       119       129
Total interest income        65,410    65,279    66,192    68,793    70,618
                                                                
Interest expense:                                                
Interest on deposits:                                            
Demand and savings deposits  422       468       501       491       636
Time deposits                2,729     2,900     3,090     3,404     3,757
Interest on borrowings       7,299     7,199     7,148     8,007     8,209
Total interest expense       10,450    10,567    10,739    11,902    12,602
                                                                
Net interest income          54,960    54,712    55,453    56,891    58,016
                                                                
Provision for loan losses    2,498     673       329       5,188     16,655
                                                                
Net interest income after    52,462    54,039    55,124    51,703    41,361
provision for loan losses
                                                                
Other income                 17,396    19,298    18,805    17,196    18,079
                                                                
Total other expense          44,715    46,570    46,098    48,011    45,683
                                                                
Income before income taxes   25,143    26,767    27,831    20,888    13,757
                                                                
Income taxes                 6,114     6,733     7,121     4,601     1,775
                                                                
Net income                  $19,029 $20,034 $20,710 $16,287 $11,982
                                                                
Preferred stock dividends    —         —         —         —         —
and accretion
                                                                
Net income available to      $19,029 $20,034 $20,710 $16,287 $11,982
common shareholders
                                                                
Per Common Share:                                                
Net income- basic           $1.23   $1.30   $1.34   $1.06   $0.78
Net income- diluted         $1.23   $1.30   $1.34   $1.06   $0.78


PARK NATIONAL CORPORATION
Detail of other income and other expense - Linked Quarters
                                                                
                            2013      2013      2013      2012      2012
(in thousands)               3rd QTR   2nd QTR   1st QTR   4th QTR   3rd QTR
                                                                
Other income:                                                    
Income from fiduciary        $ 4,139   $ 4,328   $ 4,076   $ 4,056   $ 4,019
activities
Service charges on deposits  4,255     4,070     3,822     4,235     4,244
Other service income         3,391     3,352     3,985     3,463     4,017
Checkcard fee income         3,326     3,316     2,983     3,151     3,038
Bank owned life insurance    1,311     1,254     1,202     1,184     1,184
income
ATM fees                     705       677       627       650       565
OREO valuation adjustments   (2,030)   (600)     401       (2,440)   (425)
Gain on the sale of OREO,    895       1,633     224       1,028     138
net
Other                        1,404     1,268     1,485     1,869     1,299
Total other income           $ 17,396  $ 19,298  $ 18,805  $ 17,196  $ 18,079
                                                                
Other expense:                                                   
Salaries and employee        $25,871 $24,679 $24,633 $24,086 $24,255
benefits
Net occupancy expense        2,348     2,444     2,597     2,222     2,303
Furniture and equipment      2,639     2,981     2,607     2,774     2,666
expense
Data processing fees         1,042     1,049     1,019     913       904
Professional fees and        5,601     5,880     5,864     6,846     6,040
services
Amortization of intangibles  112       113       112       139       139
Marketing                    863       953       848       1,002     924
Insurance                    1,174     1,338     1,302     1,482     1,408
Communication                1,268     1,453     1,580     1,482     1,470
Loan put provision           —         —         —         —         346
Other                        3,797     5,680     5,536     7,065     5,228
Total other expense          $44,715 $46,570 $46,098 $48,011 $45,683


PARK NATIONAL CORPORATION
Asset Quality Information
                                                                                         
                                                     Year ended December 31,
(in thousands,    September    June 30,     March 31,
except ratios)    30,          2013         2013         2012         2011         2010         2009
                  2013
                                                                                         
Allowance for                                                                             
loan losses:
Allowance for
loan losses,      $55,111    $55,315    $55,537    $68,444    $143,575   $116,717   $100,088
beginning of
period
Transfer of loans —            —            —            —            (219)        —          —
at fair value
Transfer of
allowance to held —            —            —            —            (13,100)     —            —
for sale
Charge-offs (A)   5,288        3,839        6,508        61,268       133,882      66,314       59,022
Recoveries        5,573        2,962        5,957        12,942       8,798        6,092        6,830
Net charge-offs   (285)        877          551          48,326       125,084      60,222       52,192
(recoveries)
Provision for     2,498        673          329          35,419       63,272       87,080       68,821
loan losses
Allowance for
loan losses, end  $57,894    $55,111    $55,315    $55,537    $68,444    $143,575   $116,717
of period
(A) Year ended 2012 includes the full charge-off of the Vision Bank ALLL of $12.1 million to bring the
retained Vision Bank loan portfolio to fair value prior to the merger of Vision Bank (as constituted
following the transaction with Centennial Bank and Home BancShares, Inc.) with and into SEPH, the non-bank
subsidiary of Park, on February 16, 2012.
                                                                                         
General reserve                                                                           
trends:
Allowance for
loan losses, end  $57,894    $55,111    $55,315    $55,537    $68,444    $143,575   $116,717
of period
Specific reserves 9,297        7,466        8,260        8,276        15,935       66,904       36,721
General reserves  $48,597    $47,645    $47,055    $47,261    $52,509    $76,671    $79,996
                                                                                         
Total loans       $4,573,537 $4,510,716 $4,443,523 $4,450,322 $4,317,099 $4,732,685 $4,640,432
Impaired          118,225      126,080      130,270      137,238      187,074      250,933      201,143
commercial loans
Non-impaired      $4,455,312 $4,384,636 $4,313,253 $4,313,084 $4,130,025 $4,481,752 $4,439,289
loans
                                                                                         
                                                                                         
Asset Quality                                                                             
Ratios:
Net charge-offs
(recoveries) as a
% of average      (0.02)%      0.08%        0.05%        1.10%        2.65%        1.30%        1.14%
loans(annualized
for quarterly
periods)
Allowance for
loan losses as a  1.27%        1.22%        1.24%        1.25%        1.59%        3.03%        2.52%
% of period end
loans
General reserves
as a % of         1.09%        1.09%        1.09%        1.10%        1.27%        1.71%        1.80%
non-impaired
loans
                                                                                         
Nonperforming
Assets - Park                                                                             
National
Corporation:
Nonaccrual loans  $136,470   $145,398   $151,539   $155,536   $195,106   $289,268   $233,544
Accruing troubled
debt              24,398       22,413       24,274       29,800       28,607       ----       142
restructuring
Loans past due 90 1,654        1,502        1,350        2,970        3,489        3,590        14,773
days or more
Total
nonperforming     $162,522   $169,313   $177,163   $188,306   $227,202   $292,858   $248,459
loans
Other real estate
owned - Park      13,019       14,273       14,587       14,715       13,240       8,385        6,037
National Bank
Other real estate 22,393       21,389       21,705       21,003       29,032       ----       ----
owned - SEPH
Other real estate
owned - Vision    —            —            ----       ----       ----       33,324       35,203
Bank
Total
nonperforming     $197,934   $204,975   $213,455   $224,024   $269,474   $334,567   $289,699
assets
Percentage of
nonaccrual loans  2.98%        3.22%        3.41%        3.49%        4.52%        6.11%        5.03%
to period end
loans
Percentage of
nonperforming     3.55%        3.75%        3.99%        4.23%        5.26%        6.19%        5.35%
loans to period
end loans
Percentage of
nonperforming     4.33%        4.54%        4.80%        5.03%        6.24%        7.07%        6.24%
assets to period
end loans
Percentage of
nonperforming     2.95%        3.09%        3.16%        3.37%        3.86%        4.59%        4.11%
assets to period
end assets


PARK NATIONAL CORPORATION
Asset Quality Information (continued)
                                                                         
                                           Year ended December 31,
(in           September
thousands,    30,        June 30,   March 31,  2012       2011       2010       2009
except        2013       2013       2013
ratios)
                                                                         
Nonperforming
Assets - Park                                                             
National Bank
and Guardian:
Nonaccrual    $97,122  $102,182 $103,246 $100,244 $96,113  $117,815 $85,197
loans
Accruing
troubled debt 24,398     22,413     24,274     29,800     26,342     —          142
restructuring
Loans past
due 90 days   1,654      1,502      1,350      2,970      3,367      3,226      3,496
or more
Total
nonperforming $123,174 $126,097 $128,870 $133,014 $125,822 $121,041 $88,835
loans
Other real
estate owned  13,019     14,273     14,587     14,715     13,240     8,385      6,037
- Park
National Bank
Total
nonperforming $136,193 $140,370 $143,457 $147,729 $139,062 $129,426 $94,872
assets
Percentage of
nonaccrual
loans to      2.14%      2.29%      2.35%      2.28%      2.29%      2.88%      2.15%
period end
loans
Percentage of
nonperforming
loans to      2.72%      2.82%      2.93%      3.03%      3.00%      2.96%      2.24%
period end
loans
Percentage of
nonperforming
assets to     3.01%      3.14%      3.27%      3.36%      3.32%      3.16%      2.39%
period end
loans
Percentage of
nonperforming
assets to     2.06%      2.15%      2.17%      2.27%      2.21%      1.99%      1.53%
period end
assets
                                                                         
                                                                         
Nonperforming Assets - SEPH/Vision Bank (retained portfolio as of September 30, 2013, June
30, 3013, March 31, 2013, December 31, 2012, and December 31, 2011):
Nonaccrual    $39,348  $43,216  $48,293  $55,292  $98,993  $171,453 $148,347
loans
Accruing
troubled debt —          —          —          —          2,265      —          —
restructuring
Loans past
due 90 days   —          —          —          —          122        364        11,277
or more
Total
nonperforming $39,348  $43,216  $48,293  $55,292  $101,380 $171,817 $159,624
loans
Other real
estate owned  —          —          —          —          —          33,324     35,203
- Vision Bank
Other real
estate owned  22,393     21,389     21,705     21,003     29,032     —          —
- SEPH
Total
nonperforming $61,741  $64,605  $69,998  $76,295  $130,412 $205,141 $194,827
assets
Percentage of
nonaccrual
loans to      N.M.       N.M.       N.M.       N.M.       N.M.       26.77%     21.91%
period end
loans
Percentage of
nonperforming
loans to      N.M.       N.M.       N.M.       N.M.       N.M.       26.82%     23.58%
period end
loans
Percentage of
nonperforming
assets to     N.M.       N.M.       N.M.       N.M.       N.M.       32.02%     28.78%
period end
loans
Percentage of
nonperforming
assets to     N.M.       N.M.       N.M.       N.M.       N.M.       25.90%     21.70%
period end
assets
                                                                         
                                                                         
New
nonaccrual
loan                                                                      
information -
Park National
Corporation
Nonaccrual
loans,        $145,398 $151,539 $155,536 $195,106 $289,268 $233,544 $159,512
beginning of
period
New
nonaccrual    12,362     15,404     21,141     83,204     124,158    175,175    184,181
loans
Resolved
nonaccrual    21,290     21,545     25,138     122,774    218,320    119,451    110,149
loans
Nonaccrual
loans, end of $136,470 $145,398 $151,539 $155,536 $195,106 $289,268 $233,544
period
                                                                         
New
nonaccrual
loan                                                                      
information -
Ohio based
operations
Nonaccrual
loans,        $102,182 $103,246 $100,244 $96,113  $117,815 $85,197  $68,306
beginning of
period
New
nonaccrual
loans -       12,362     15,404     21,141     68,960     78,316     85,081     57,641
Ohio-based
operations
Resolved
nonaccrual    17,422     16,468     18,139     64,829     100,018    52,463     40,750
loans
Nonaccrual
loans, end of $97,122  $102,182 $103,246 $100,244 $96,113  $117,815 $85,197
period
                                                                         
New nonaccrual loan information - SEPH/Vision Bank (SEPH as of September 30, 2013, June
30, 2013 and March 31, 2012)
Nonaccrual
loans,        $43,216  $48,293  $55,292  $98,993  $171,453 $148,347 $91,206
beginning of
period
New
nonaccrual
loans -       —          —          —          14,243     45,842     90,094     126,540
SEPH/Vision
Bank
Resolved
nonaccrual    3,868      5,077      6,999      57,944     118,302    66,988     69,399
loans
Nonaccrual
loans, end of $39,348  $43,216  $48,293  $55,292  $98,993  $171,453 $148,347
period
                                                                         
                                                                         
Impaired
Commercial
Loan                                                                      
Portfolio
Information
(period end):
Unpaid
principal     $201,573 $222,871 $233,144 $242,345 $290,908 $304,534 $245,092
balance
Prior         83,348     96,791     102,874    105,107    103,834    53,601     43,949
charge-offs
Remaining
principal     118,225    126,080    130,270    137,238    187,074    250,933    201,143
balance
Specific      9,297      7,466      8,260      8,276      15,935     66,904     36,721
reserves
Book value,
after         $108,928 $118,614 $122,010 $128,962 $171,139 $184,029 $164,422
specific
reserve

CONTACT: Media contact:
         Bethany Lewis, 740.349.0421,
         blewis@parknationalbank.com
        
         Investor contact:
         Brady Burt, 740.322.6844,
         bburt@parknationalbank.com
 
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