Park National Corporation Reports Fourth Quarter and Year-End 2013 Financial Results

Park National Corporation Reports Fourth Quarter and Year-End 2013 Financial
Results

Board Continues Quarterly Cash Dividend of $0.94 Per Common Share

NEWARK, Ohio, Jan. 27, 2014 (GLOBE NEWSWIRE) -- Park National Corporation
(Park) (NYSE MKT:PRK) today reported financial results for the three-months
(fourth quarter) and twelve-months (year) ended December 31, 2013. Park's
board of directors declared a quarterly cash dividend of $0.94 per common
share, payable on March 10, 2014 to common shareholders of record as of
February 21, 2014. Park's quarterly and annual earnings per common share rose
compared to 2012, and loan growth continued in both the retail and commercial
categories.

Net income for the fourth quarter of 2013 was $17.5 million, compared to $16.3
million for the same period in 2012. Net income for the year 2013 was $77.2
million, an increase of $13.0 million, or 20.3 percent, above the 2012 results
excluding the gain related to the sale of the Vision Bank business (on
February 16, 2012).

Net income for the 2012 year was $78.6 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.
Excluding the gain from the sale of the Vision Bank business in 2012, net
income for the year 2012 would have been $64.2 million.

Net income per diluted common share for the fourth quarter of 2013 was $1.13,
compared to $1.06 in the same period of 2012. Net income per diluted common
share for the year 2013 was $5.01, an increase from 2012's net income per
diluted common share of $4.88. Excluding the gain on sale of the Vision Bank
business, net income per diluted common share would have been $3.95 for the
2012 year.

"Loan growth and new customer relationships in 2013 exceeded our
expectations," said Park Chairman Dan DeLawder. "Individuals and businesses
rely on our local lenders' experience and dedication to service. That caused
our loan balances to increase more than market conditions suggest might be
possible. The new relationships established during the year will continue to
distinguish Park and our affiliates in the communities we serve."

The Park National Bank Results

Park's community-banking subsidiary in Ohio, The Park National Bank, reported
net income of $75.6 million for the 2013 year, compared to net income of $87.1
million in 2012. The Park National Bank had total assets of $6.5 billion at
both December 31, 2013 and 2012. This performance generated a return on
average assets of 1.15 percent and 1.33 percent for the bank for the years
2013 and 2012, respectively.

The Park National Bank loan portfolio growth continued in the fourth quarter.
At December 31, 2013 the bank reported $4.56 billion in loans outstanding,
which is a $51 million increase over the $4.51 billion outstanding at
September 30, 2013. It also represents a 12-month increase of $190 million,
compared to the loans outstanding of $4.37 billion at December 31, 2012.

About Park National Corporation

Headquartered in Newark, Ohio, Park National Corporation had $6.6 billion in
total assets (as of December 31, 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, and 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 News
Release 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 September
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 December 31, 2013, September 30, 2013, and December 31,
2012
                                                                 
                          2013       2013       2012       Percent change vs.
(in thousands, except      4th QTR    3rd QTR    4th QTR    3Q '13    4Q '12
share and per share data)
INCOME STATEMENT:                                                 
Net interest income        $55,900  $54,960  $56,891  1.7%      (1.7)%
Provision for (recovery    (85)       2,498      5,188      N.M.      N.M.
of) loan losses
Other income               17,778     17,396     17,196     2.2%      3.4%
Total other expense        51,146     44,715     48,011     14.4%     6.5%
Income before income taxes $22,617  $25,143  $20,888  (10.0)%   8.3%
Income taxes               5,163      6,114      4,601      (15.6)%   12.2%
Net income                 $17,454  $19,029  $16,287  (8.3)%    7.2%
                                                                 
MARKET DATA:                                                      
Earnings per common share  $1.13    $1.23    $1.06    (8.1)%    6.6%
- basic (b)
Earnings per common share  1.13       1.23       1.06       (8.1)%    6.6%
- diluted (b)
Cash dividends per common  0.94       0.94       0.94       —%        —%
share
Common book value per      42.29      41.06      42.20      3.0%      0.2%
common share at period end
Stock price per common     85.07      79.08      64.63      7.6%      31.6%
share at period end
Market capitalization at   1,311,095  1,218,778  996,077    7.6%      31.6%
period end
                                                                 
Weighted average common    15,413,517 15,411,972 15,410,606 —%        —%
shares - basic (a)
Weighted average common    15,413,517 15,411,972 15,410,606 —%        —%
shares - diluted (a)
Common shares outstanding  15,411,952 15,411,963 15,411,998 —%        —%
at period end
                                                                 
PERFORMANCE RATIOS:                                               
(annualized)
Return on average assets   1.03%      1.12%      0.97%      (8.0)%    6.2%
(a)(b)
Return on average common   10.87%     11.84%     9.81%      (8.2)%    10.8%
equity (a)(b)
Yield on loans             4.95%      4.95%      5.23%      —%        (5.4)%
Yield on investments       2.53%      2.55%      2.88%      (0.8)%    (12.2)%
Yield on money markets     0.21%      0.25%      0.24%      (16.0)%   (12.5)%
Yield on earning assets    4.24%      4.19%      4.49%      1.2%      (5.6)%
Cost of interest bearing   0.31%      0.33%      0.42%      (6.1)%    (26.2)%
deposits
Cost of borrowings         2.50%      2.54%      2.66%      (1.6)%    (6.0)%
Cost of paying liabilities 0.83%      0.84%      0.97%      (1.2)%    (14.4)%
Net interest margin        3.59%      3.52%      3.72%      2.0%      (3.5)%
Efficiency ratio (g)       69.16%     61.57%     64.47%     12.3%     7.3%
                                                                 
OTHER RATIOS (NON GAAP):                                          
Annualized return on
average tangible assets    1.04%      1.13%      0.98%      (8.0)%    6.1%
(a)(b)(e)
Annualized return on
average tangible common    12.27%     13.36%     11.03%     (8.2)%    11.2%
equity (a)(b)(c)
Tangible common book value $37.60   $36.36   $37.48   3.4%      0.3%
per common share (d)
                                                                 
N.M. - Not meaningful                                             
Note: Explanations (a)-(g)
are included at the end of                                        
the financial highlights.

                                                                  
PARK NATIONAL                                                      
CORPORATION
Financial Highlights                                               
Three months ended
December 31, 2013,                                                 
September 30, 2013, and
December 31, 2012
                                                                  
                                                            Percent change
                                                                vs.
BALANCE SHEET:          December 31, September 30, December 31, 3Q '13 4Q '12
                        2013         2013          2012
                                                                  
Investment securities   $1,424,234 $1,389,387  $1,581,751 2.5%   (10.0)%
Loans                   4,620,505    4,573,537     4,450,322    1.0%   3.8%
Allowance for loan      59,468       57,894        55,537       2.7%   7.1%
losses
Goodwill and other      72,334       72,334        72,671       —%     (0.5)%
intangibles
Other real estate owned 34,636       35,412        35,718       (2.2)% (3.0)%
Total assets            6,638,347    6,705,891     6,642,803    (1.0)% (0.1)%
Total deposits          4,789,994    4,850,692     4,716,032    (1.3)% 1.6%
Borrowings              1,132,820    1,162,091     1,206,076    (2.5)% (6.1)%
Stockholders' equity    651,747      632,745       650,366      3.0%   0.2%
Common equity           651,747      632,745       650,366      3.0%   0.2%
Tangible common equity  579,413      560,411       577,695      3.4%   0.3%
(d)
Nonperforming loans     155,640      162,522       188,306      (4.2)% (17.3)%
Nonperforming assets    190,276      197,934       224,024      (3.9)% (15.1)%
                                                                  
ASSET QUALITY RATIOS:                                              
Loans as a % of period  69.60%       68.20%        66.99%       2.1%   3.9%
end assets
Nonperforming loans as  3.37%        3.55%         4.23%        (5.1)% (20.3)%
a % of period end loans
Nonperforming assets /
Period end loans +      4.09%        4.29%         4.99%        (4.7)% (18.0)%
OREO
Allowance for loan
losses as a % of period 1.29%        1.27%         1.25%        1.6%   3.2%
end loans
Net loan charge-offs    $ (1,659)    $ (285)       $ 5,216      N.M.   N.M.
(recoveries)
Annualized net loan
charge-offs             (0.14)%      (0.02)%       0.47%        N.M.   N.M.
(recoveries) as a % of
average loans (a)
                                                                  
CAPITAL & LIQUIDITY:                                               
Total equity / Period   9.82%        9.44%         9.79%        4.0%   0.3%
end assets
Common equity / Period  9.82%        9.44%         9.79%        4.0%   0.3%
end assets
Tangible common equity
(d) / Tangible assets   8.82%        8.45%         8.79%        4.4%   0.3%
(f)
Average equity /        9.49%        9.46%         9.87%        0.3%   (3.9)%
Average assets (a)
Average equity /        13.86%       14.04%        14.97%       (1.3)% (7.4)%
Average loans (a)
Average loans / Average 94.74%       92.77%        92.78%       2.1%   2.1%
deposits (a)
                                                                  
N.M. - Not meaningful                                              
Note: Explanations
(a)-(g) are included at                                            
the end of the
financial highlights.

                                                         
PARK NATIONAL CORPORATION                                 
Financial Highlights                                      
Years ended December 31, 2013 and                         
2012
                                                         
(in thousands, except share and per   2013       2012       Percent change vs.
share data)                                                 2012
INCOME STATEMENT:                                         
Net interest income                   $221,025 $235,315 (6.1)%
Provision for loan losses             3,415      35,419     (90.4)%
Gain on sale of Vision Bank business  —          22,167     N.M.
Other income                          73,277     70,236     4.3%
Total other expense                   188,529    187,968    0.3%
Income before income taxes            $102,358 $104,331 (1.9)%
Income taxes                          25,131     25,701     (2.2)%
Net income                            $77,227  $78,630  (1.8)%
Preferred stock dividends and         —          3,425      N.M.
accretion
Net income available to common        $77,227  $75,205  2.7%
shareholders
                                                         
MARKET DATA:                                              
Earnings per common share - basic (b) $5.01    $4.88    2.7%
Earnings per common share - diluted   5.01       4.88       2.7%
(b)
Cash dividends per common share       3.76       3.76       —%
                                                         
Weighted average common shares -      15,412,365 15,407,078 —%
basic (a)
Weighted average common shares -      15,412,365 15,408,141 —%
diluted (a)
                                                         
PERFORMANCE RATIOS:                                       
                                                         
Return on average assets (a)(b)       1.15%      1.11%      3.6%
Return on average common equity       11.96%     11.41%     4.8%
(a)(b)
Yield on loans                        5.02%      5.35%      (6.2)%
Yield on investments                  2.67%      3.14%      (15.0)%
Yield on money markets                0.25%      0.25%      —%
Yield on earning assets               4.29%      4.64%      (7.5)%
Cost of interest bearing deposits     0.35%      0.49%      (28.6)%
Cost of borrowings                    2.57%      2.74%      (6.2)%
Cost of paying liabilities            0.86%      1.02%      (15.7)%
Net interest margin                   3.61%      3.83%      (5.7)%
Efficiency ratio (g)                  63.78%     57.07%     11.8%
                                                         
ASSET QUALITY RATIOS:                                     
Net loan charge-offs                  $ (516)    $48,326  (101.1)%
Net loan charge-offs as a % of        (0.01)%    1.10%      (100.9)%
average loans (a)
                                                         
CAPITAL & LIQUIDITY:                                      
Average stockholders' equity /        9.63%      10.19%     (5.5)%
Average assets (a)
Average stockholders' equity /        14.30%     15.64%     (8.6)%
Average loans (a)
Average loans / Average deposits (a)  92.90%     91.22%     1.8%
                                                         
OTHER RATIOS (NON GAAP):                                  
                                                         
Return on average tangible assets     1.16%      1.12%      3.6%
(a)(b)(e)
                                                         
Return on average tangible common     13.48%     12.84%     5.0%
equity (a)(b)(c)
                                                         
N.M. - Not meaningful                                     
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 December 31,
2013, September 30, 2013 and December 31, 2012 and               
the fiscal years ended December 31, 2013 and
December 31, 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                     TWELVE MONTHS ENDED
             December 31, September    December 13, December 31, December 31,
              2013         30, 2013     2012         2013         2012
AVERAGE
STOCKHOLDERS' $636,886   $637,529   $660,416   $645,533   $689,732
EQUITY
Less:Average
preferred     —            —            —            —            30,877
stock
Less: Average
goodwill and  72,334       72,397       72,748       72,464       73,069
other
intangibles
AVERAGE
TANGIBLE      $564,552   $565,132   $587,668   $573,069   $585,786
COMMON EQUITY
                                                             
(d) Tangible common book value divided by common shares outstanding at period
end. Tangible common equity equals ending stockholders' equity less goodwill
and other intangibles, in each case at the end of the period.
                                                             
RECONCILIATION OF STOCKHOLDERS' EQUITY TO TANGIBLE               
COMMON EQUITY:
             December 31, September    December 13,             
              2013         30, 2013     2012
STOCKHOLDERS' $651,747   $632,745   $650,366               
EQUITY
Less:
Goodwill and  72,334       72,334       72,671                   
other
intangibles
TANGIBLE      $579,413   $560,411   $577,695               
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                     TWELVE MONTHS ENDED
             December 31, September    December 13, December 31, December 31,
              2013         30, 2013     2012         2013         2012
AVERAGE       $6,707,975 $6,739,055 $6,689,321 $6,702,973 $6,766,806
ASSETS
Less:Average
goodwill and  72,334       72,397       72,748       72,464       73,069
other
intangibles
AVERAGE
TANGIBLE      $6,635,641 $6,666,658 $6,616,573 $6,630,509 $6,693,737
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:               
             December 31, September    December 13,             
              2013         30, 2013     2012
TOTAL ASSETS  $6,638,347 $6,705,891 $6,642,803             
Less:
Goodwill and  72,334       72,334       72,671                   
other
intangibles
TANGIBLE      $6,566,013 $6,633,557 $6,570,132             
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                     TWELVE MONTHS ENDED
             December 31, September    December 13, December 31, December 31,
              2013         30, 2013     2012         2013         2012
Interest      $66,066    $65,410    $68,793    $262,947   $285,735
income
Fully taxable
equivalent    273          273          382          1,302        1,623
adjustment
Fully taxable
equivalent    $66,339    $65,683    $69,175    $264,249   $287,358
interest
income
Interest      10,166       10,450       11,902       41,922       50,420
expense
Fully taxable
equivalent    $56,173    $55,233    $57,273    $222,327   $236,938
net interest
income


PARK NATIONAL CORPORATION
Consolidated Statements of Income
                                                                
                                  Three Months Ended    Twelve Months Ended
                                  December 31,          December 31,
(in thousands, except share and    2013       2012       2013       2012
per share data)
                                                                
Interest income:                                                 
Interest and fees on loans         57,038     57,671     225,538    234,638
Interest on:                                                     
Obligations of U.S. Government,                                  
its agencies
and other securities               8,911      10,984     36,686     50,549
Obligations of states and          4          19         45         140
political subdivisions
Other interest income              113        119        678        408
Total interest income              66,066     68,793     262,947    285,735
                                                                
Interest expense:                                                
Interest on deposits:                                            
Demand and savings deposits        382        491        1,773      2,483
Time deposits                      2,516      3,404      11,235     15,921
Interest on borrowings             7,268      8,007      28,914     32,016
Total interest expense             10,166     11,902     41,922     50,420
                                                                
Net interest income                55,900     56,891     221,025    235,315
                                                                
Provision for (recovery of) loan   (85)       5,188      3,415      35,419
losses
                                                                
Net interest income after
provision for (recovery of) loan   55,985     51,703     217,610    199,896
losses
                                                                
Gain on sale of Vision Bank        —          —          —          22,167
business
Other income                       17,778     17,196     73,277     70,236
                                                                
Total other expense                51,146     48,011     188,529    187,968
                                                                
Income before income taxes         22,617     20,888     102,358    104,331
                                                                
Income taxes                       5,163      4,601      25,131     25,701
                                                                
Net income                         17,454     16,287     77,227     78,630
                                                                
Preferred stock dividends and      —          —          —          3,425
accretion
                                                                
Net income available to common     17,454     16,287     77,227     75,205
shareholders
                                                                
Per Common Share:                                                
Net income- basic                 1.13       1.06       5.01       4.88
Net income- diluted               1.13       1.06       5.01       4.88
                                                                
Weighted average shares - basic    15,413,517 15,410,606 15,412,365 15,407,078
Weighted average shares - diluted  15,413,517 15,410,606 15,412,365 15,408,141
                                                                
Cash Dividends Declared            0.94       0.94       3.76       3.76


PARK NATIONAL CORPORATION
Consolidated Balance Sheets
                                                           
(in thousands, except share data)          December 31, 2013 December 31, 2012
                                                           
Assets                                                      
                                                           
Cash and due from banks                    $129,078        $164,120
Money market instruments                   17,952            37,185
Investment securities                      1,424,234         1,581,751
Loans                                      4,620,505         4,450,322
Allowance for loan losses                  59,468            55,537
Loans, net                                 4,561,037         4,394,785
Bank premises and equipment, net           55,278            53,751
Goodwill and other intangibles             72,334            72,671
Other real estate owned                    34,636            35,718
Other assets                               343,798           302,822
Total assets                               $6,638,347      $6,642,803
                                                           
Liabilities and Stockholders' Equity                        
                                                           
Deposits:                                                   
Noninterest bearing                        $1,193,553      $1,137,290
Interest bearing                           3,596,441         3,578,742
Total deposits                             4,789,994         4,716,032
Borrowings                                 1,132,820         1,206,076
Other liabilities                          63,786            70,329
Total liabilities                          $5,986,600      $5,992,437
                                                           
                                                           
Stockholders' Equity:                                       
Common stock (No par value; 20,000,000
shares authorized in 2013 and
2012;16,150,941 shares issued at December $302,651        $302,654
31, 2013 and 16,150,987 shares issued at
December 31, 2012)
Accumulated other comprehensive loss, net  (35,419)          (17,518)
of taxes
Retained earnings                          460,643           441,605
Treasury stock (738,989 shares at December (76,128)          (76,375)
31, 2013 and December 31, 2012)
Total stockholders' equity                 $651,747        $650,366
                                                           
Total liabilities and stockholders' equity $6,638,347      $6,642,803


PARK NATIONAL CORPORATION
Consolidated Average Balance Sheets
                                                              
                          Three Months Ended        Twelve Months Ended
                          December 31,              December 31,
(in thousands)             2013         2012         2013         2012
                                                              
Assets                                                         
                                                              
Cash and due from banks    $110,644   $110,926   $110,796   $119,410
Money market instruments   211,544      194,582      272,851      166,319
Investment securities     1,361,295    1,540,650    1,368,275    1,633,268
Loans                      4,594,974    4,412,508    4,514,781    4,410,661
Allowance for loan losses  58,862       57,436       56,860       61,995
Loans, net                 4,536,112    4,355,072    4,457,921    4,348,666
Bank premises and          56,156       54,300       56,303       54,917
equipment, net
Goodwill and other         72,334       72,748       72,464       73,069
intangibles
Other real estate owned    34,533       35,848       35,216       38,777
Other assets               325,357      325,195      329,147      332,380
Total assets               $6,707,975 $6,689,321 $6,702,973 $6,766,806
                                                              
                                                              
Liabilities and                                                
Stockholders' Equity
                                                              
Deposits:                                                      
Noninterest bearing        $1,163,227 $1,090,475 $1,117,379 $1,048,796
Interest bearing           3,686,721    3,665,181    3,742,361    3,786,601
Total deposits             4,849,948    4,755,656    4,859,740    4,835,397
Borrowings                 1,151,994    1,197,532    1,123,661    1,166,365
Other liabilities          69,147       75,717       74,039       75,312
Total liabilities          $6,071,089 $6,028,905 $6,057,440 $6,077,074
                                                              
Stockholders' Equity:                                          
Preferred stock            $ —        $ —        $ —        $30,877
Common stock              302,651      302,654      302,652      302,159
Common stock warrants      —            —            —            1,444
Accumulated other
comprehensive loss, net of (49,640)     (8,035)      (33,324)     (7,915)
taxes
Retained earnings          459,947      442,378      452,503      440,067
Treasury stock            (76,072)     (76,581)     (76,298)     (76,900)
Total stockholders' equity $636,886   $660,416   $645,533   $689,732
                                                              
Total liabilities and      $6,707,975 $6,689,321 $6,702,973 $6,766,806
stockholders' equity


PARK NATIONAL CORPORATION
Consolidated Statements of Income - Linked Quarters
                                                                
                            2013      2013      2013      2013      2012
(in thousands, except per    4th QTR   3rd QTR   2nd QTR   1st QTR   4th QTR
share data)
                                                                
Interest income:                                                 
Interest and fees on loans  $57,038 $56,337 $56,388 $55,775 $57,671
Interest on:                                                     
Obligations of U.S.
Government, its agencies and 8,911     8,880     8,673     10,242    10,984
other securities
Obligations of states and    4         7         16        17        19
political subdivisions
Other interest income        113       186       202       158       119
Total interest income        66,066    65,410    65,279    66,192    68,793
                                                                
Interest expense:                                                
Interest on deposits:                                            
Demand and savings deposits  382       422       468       501       491
Time deposits                2,516     2,729     2,900     3,090     3,404
Interest on borrowings       7,268     7,299     7,199     7,148     8,007
Total interest expense       10,166    10,450    10,567    10,739    11,902
                                                                
Net interest income          55,900    54,960    54,712    55,453    56,891
                                                                
Provision for (recovery of)  (85)      2,498     673       329       5,188
loan losses
                                                                
Net interest income after
provision for (recovery of)  55,985    52,462    54,039    55,124    51,703
loan losses
                                                                
Other income                 17,778    17,396    19,298    18,805    17,196
                                                                
Total other expense          51,146    44,715    46,570    46,098    48,011
                                                                
Income before income taxes   22,617    25,143    26,767    27,831    20,888
                                                                
Income taxes                 5,163     6,114     6,733     7,121     4,601
                                                                
Net income                  $17,454 $19,029 $20,034 $20,710 $16,287
                                                                
Per Common Share:                                                
Net income- basic           $1.13   $1.23   $1.30   $1.34   $1.06
Net income- diluted         $1.13   $1.23   $1.30   $1.34   $1.06


PARK NATIONAL CORPORATION
Detail of other income and other expense - Linked Quarters
                                                                
                            2013      2013      2013      2013      2012
(in thousands)               4th QTR   3rd QTR   2nd QTR   1st QTR   4th QTR
                                                                
Other income:                                                    
Income from fiduciary        $4,590  $4,139  $4,328  $4,076  $4,056
activities
Service charges on deposits  4,169     4,255     4,070     3,822     4,235
Other service income         2,185     3,391     3,352     3,985     3,463
Checkcard fee income         3,330     3,326     3,316     2,983     3,151
Bank owned life insurance    1,274     1,311     1,254     1,202     1,184
income
ATM fees                     623       705       677       627       650
OREO valuation adjustments   (951)     (2,030)   (600)     401       (2,440)
Gain on the sale of OREO,    358       895       1,633     224       1,028
net
Miscellaneous                2,200     1,404     1,268     1,485     1,869
Total other income           $17,778 $17,396 $19,298 $18,805 $17,196
                                                                
Other expense:                                                   
Salaries and employee        $25,115 $25,871 $24,679 $24,633 $24,086
benefits
Net occupancy expense        2,415     2,348     2,444     2,597     2,222
Furniture and equipment      3,022     2,639     2,981     2,607     2,774
expense
Data processing fees         1,064     1,042     1,049     1,019     913
Professional fees and        10,520    5,601     5,880     5,864     6,846
services
Amortization of intangibles  —         112       113       112       139
Marketing                    1,126     863       953       848       1,002
Insurance                    1,391     1,174     1,338     1,302     1,482
Communication                1,489     1,268     1,453     1,580     1,482
Miscellaneous                5,004     3,797     5,680     5,536     7,065
Total other expense          $51,146 $44,715 $46,570 $46,098 $48,011


PARK NATIONAL CORPORATION
Asset Quality Information

                  Year ended December 31,
(in thousands,     2013        2012        2011        2010        2009
except ratios)
                                                              
Allowance for loan                                             
losses:
Allowance for loan
losses, beginning  $ 55,537    $ 68,444    $ 143,575   $ 116,717   $ 100,088
of period
Transfer of loans  —           —           (219)       —           —
at fair value
Transfer of
allowance to held  —           —           (13,100)    —           —
for sale
Charge-offs (A)    19,153      61,268      133,882     66,314      59,022
Recoveries         19,669      12,942      8,798       6,092       6,830
Net charge-offs    (516)       48,326      125,084     60,222      52,192
(recoveries)
Provision for loan 3,415       35,419      63,272      87,080      68,821
losses
Allowance for loan
losses, end of     $ 59,468    $ 55,537    $ 68,444    $ 143,575   $ 116,717
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 of     $ 59,468    $ 55,537    $ 68,444    $ 143,575   $ 116,717
period
Specific reserves  10,451      8,276       15,935      66,904      36,721
General reserves   $ 49,017    $ 47,261    $ 52,509    $ 76,671    $ 79,996
                                                              
Total loans        $ 4,620,505 $ 4,450,322 $ 4,317,099 $ 4,732,685 $ 4,640,432
Impaired           112,304     137,238     187,074     250,933     201,143
commercial loans
Non-impaired loans $ 4,508,201 $ 4,313,084 $ 4,130,025 $ 4,481,752 $ 4,439,289
                                                              
                                                              
Asset Quality                                                  
Ratios:
                                                              
Net charge-offs
(recoveries) as a  (0.01)%     1.10%       2.65%       1.30%       1.14%
% of average loans
Allowance for loan
losses as a % of   1.29%       1.25%       1.59%       3.03%       2.52%
period end loans
General reserves
as a % of          1.09%       1.10%       1.27%       1.71%       1.80%
non-impaired loans
                                                              
Nonperforming
Assets - Park                                                  
National
Corporation:
Nonaccrual loans   $ 135,216   $ 155,536   $ 195,106   $ 289,268   $ 233,544
Accruing troubled  18,747      29,800      28,607      —           142
debt restructuring
Loans past due 90  1,677       2,970       3,489       3,590       14,773
days or more
Total
nonperforming      $ 155,640   $ 188,306   $ 227,202   $ 292,858   $ 248,459
loans
Other real estate
owned - Park       11,412      14,715      13,240      8,385       6,037
National Bank
Other real estate  23,224      21,003      29,032      —           —
owned - SEPH
Other real estate
owned - Vision     —           —           —           33,324      35,203
Bank
Total
nonperforming      $ 190,276   $ 224,024   $ 269,474   $ 334,567   $ 289,699
assets
Percentage of
nonaccrual loans   2.93%       3.49%       4.52%       6.11%       5.03%
to period end
loans
Percentage of
nonperforming      3.37%       4.23%       5.26%       6.19%       5.35%
loans to period
end loans
Percentage of
nonperforming      4.12%       5.03%       6.24%       7.07%       6.24%
assets to period
end loans
Percentage of
nonperforming      2.87%       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 thousands, except        2013      2012      2011      2010      2009
ratios)
                                                                
Nonperforming Assets - Park                                      
National Bank and Guardian:
Nonaccrual loans             $ 99,108  $ 100,244 $ 96,113  $ 117,815 $ 85,197
Accruing troubled debt       18,747    29,800    26,342    —         142
restructuring
Loans past due 90 days or    1,677     2,970     3,367     3,226     3,496
more
Total nonperforming loans    $ 119,532 $ 133,014 $ 125,822 $ 121,041 $ 88,835
Other real estate owned -    11,412    14,715    13,240    8,385     6,037
Park National Bank
Total nonperforming assets   $ 130,944 $ 147,729 $ 139,062 $ 129,426 $ 94,872
Percentage of nonaccrual     2.16%     2.28%     2.29%     2.88%     2.15%
loans to period end loans
Percentage of nonperforming  2.61%     3.03%     3.00%     2.96%     2.24%
loans to period end loans
Percentage of nonperforming  2.86%     3.36%     3.32%     3.16%     2.39%
assets to period end loans
Percentage of nonperforming  2.00%     2.27%     2.21%     1.99%     1.53%
assets to period end assets
                                                                
                                                                
Nonperforming Assets -
SEPH/Vision Bank (retained                                       
portfolio as of December 31,
2013, 2012, and 2011):
Nonaccrual loans             $ 36,108  $ 55,292  $ 98,993  $ 171,453 $ 148,347
Accruing troubled debt       —         —         2,265     —         —
restructuring
Loans past due 90 days or    —         —         122       364       11,277
more
Total nonperforming loans    $ 36,108  $ 55,292  $ 101,380 $ 171,817 $ 159,624
Other real estate owned -    —         —         —         33,324    35,203
Vision Bank
Other real estate owned -    23,224    21,003    29,032    —         —
SEPH
Total nonperforming assets   $ 59,332  $ 76,295  $ 130,412 $ 205,141 $ 194,827
Percentage of nonaccrual     N.M.      N.M.      N.M.      26.77%    21.91%
loans to period end loans
Percentage of nonperforming  N.M.      N.M.      N.M.      26.82%    23.58%
loans to period end loans
Percentage of nonperforming  N.M.      N.M.      N.M.      32.02%    28.78%
assets to period end loans
Percentage of nonperforming  N.M.      N.M.      N.M.      25.90%    21.70%
assets to period end assets
                                                                
                                                                
New nonaccrual loan
information - Park National                                      
Corporation
Nonaccrual loans, beginning  $ 155,536 $ 195,106 $ 289,268 $ 233,544 $ 159,512
of period
New nonaccrual loans         67,398    83,204    124,158   175,175   184,181
Resolved nonaccrual loans    87,718    122,774   218,320   119,451   110,149
Nonaccrual loans, end of     $ 135,216 $ 155,536 $ 195,106 $ 289,268 $ 233,544
period
                                                                
New nonaccrual loan
information - Ohio based                                         
operations
Nonaccrual loans, beginning  $ 100,244 $ 96,113  $ 117,815 $ 85,197  $ 68,306
of period
New nonaccrual loans -       66,197    68,960    78,316    85,081    57,641
Ohio-based operations
Resolved nonaccrual loans    67,333    64,829    100,018   52,463    40,750
Nonaccrual loans, end of     $ 99,108  $ 100,244 $ 96,113  $ 117,815 $ 85,197
period
                                                                
New nonaccrual loan
information - SEPH/Vision                                        
Bank
Nonaccrual loans, beginning  $ 55,292  $ 98,993  $ 171,453 $ 148,347 $ 91,206
of period
New nonaccrual loans -       1,201     14,243    45,842    90,094    126,540
SEPH/Vision Bank
Resolved nonaccrual loans    20,385    57,944    118,302   66,988    69,399
Nonaccrual loans, end of     $ 36,108  $ 55,292  $ 98,993  $ 171,453 $ 148,347
period
                                                                
Impaired Commercial Loan
Portfolio Information                                            
(period end):
Unpaid principal balance     $ 175,576 $ 242,345 $ 290,908 $ 304,534 $ 245,092
Prior charge-offs            63,272    105,107   103,834   53,601    43,949
Remaining principal balance  112,304   137,238   187,074   250,933   201,143
Specific reserves            10,451    8,276     15,935    66,904    36,721
Book value, after specific   $ 101,853 $ 128,962 $ 171,139 $ 184,029 $ 164,422
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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