Park National Corporation · AMEX:PRK
Park National — Shareholder Meeting (April 2014)
32 slides from Park National's shareholder meeting presentation, Apr 28, 2014
Slide 1: Annual Shareholders' Meeting, April 28, 2014
1 April 28, 2014 Annual Shareholders’ Meeting
Slide 2: Safe Harbor Statement
Safe Harbor Statement Park cautions that any forward-looking statements contained in this presentation 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
Slide 3: Park National Corporation Profile
3 3 Park National Corporation Profile (as of March 31, 2014) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 28 Ohio & 1 Kentucky counties • 121 bank offices • 7 specialty finance offices • 1,830 FTEs Michigan
Slide 4: Park National Corporation Income Statement
4 Park National Corporation Income Statement Source: Company Filings (1) Excludes the gain on sale of the Vision Bank business for the year ended December 31, 2012. (in thousands) Dec. 31, 2012 Dec. 31, 2013 Mar. 31, 2013 Mar. 31, 2014 Net interest income $235,315 $221,025 $55,453 54,480 Provision f
Slide 5: The Park National Bank Mortgage Origination Trends
5 The Park National Bank Mortgage Origination Trends Source: Company Filings - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 (I n 0 0 0s ) QTD Mortgage Originations YTD Mortgage Originations
Slide 6: The Park National Bank Fiduciary Income and Asset Trends
6 The Park National Bank Fiduciary Income and Asset Trends Source: Company Filings 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 2.50 2.70 2.90 3.10 3.30 3.50 3.70 3.90 4.10 4.30 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 (I n com e in m ill ions ) (A ss ets in b ill ions ) Trus
Slide 7: Net income by operating segment
Net income by operating segment 7 Source: Company Filings (in thousands) Dec. 31, 2012 Dec. 31, 2013 Mar. 31, 2013 Mar. 31, 2014 Park National Bank $87,106 $ 75,594 $ 19,940 $ 19,607 Guardian Financial Services Company 3,550 2,888 740 604 PRK Parent Company 195 (1,397) 132 (904) Ohio-based operation
Slide 8: Park National Corporation Statement of Condition
PARK NATIONAL CORPORATION Statement of Condition 8 Source: Company Filings (in millions) Dec. 31, 2012 Dec. 31, 2013 Mar. 31, 2014 Cash & cash equivalents $ 201 $ 147 $ 329 Investment securities 1,582 1,424 1,417 Loans 4,450 4,621 4624 Allowance for loan losses (56) (59) (60) Other assets 466 505 50
Slide 9: Installment Loan Balances
Installment Loan Balances (in 000s) at December 31 9 $- $200,000 $400,000 $600,000 $800,000 2009 2010 2011 2012 2013 Total Installment Loans Total Indirect Installment Loans Total Direct Installment Loans
Slide 10: Park National Corporation Nonperforming assets
10 Park National Corporation Nonperforming assets Source: BHC Performance Report and Company Filings Peers include all bank holding companies nationwide with total assets between $3.0 and $10.0 billion (in thousands) Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2013 Total nonperforming loans $
Slide 11: Vision Bank/SE Property Holdings, LLC Nonperforming assets
11 Vision Bank/SE Property Holdings, LLC Nonperforming assets Source: Company Filings (in thousands) Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2013 Nonaccrual loans $ 171,453 $ 98,993 $ 55,292 $ 36,108 Accruing TDRs - 2,265 - - Loans past due 90 days or more (still accruing) 364 122 - - Tot
Slide 12: PRK comparison to peers
12 PRK comparison to peers Ratios at December 31 for each year Source: Company Filings and Sandler O’Neill, using SNL data of $3 billion to $10 billion bank holding companies PRK Price to Book % Peer Group Price to Book Value % PRK Price to Tangible Book Value % Peer Group Price to Tangible Book Val
Slide 13: Total Return Performance Park National Corporation
13 Total Return Performance Park National Corporation 50 75 100 125 150 175 200 225 250 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 Ind ex Va lue Total Return Performance Park National Corporation NYSE MKT Composite Index NASDAQ Bank SNL Bank and Thrift Index The total return stock perform
Slide 14: Net Promoter Score
Net Promoter Score • PRK Implemented for all Divisions in 2007 • Loyalty indicator developed by Satmetrix, Bain & Company, and Fred Reichheld • One question survey: “How likely are you to refer [bank] to a friend or colleague?” • Companies scoring over 50 are considered world-class per Satmetrix 14
Slide 15: Net Promoter Score Comparison of Results
Net Promoter Score Comparison of Results 15 17 48 82 Financial Industry Average Community Bank Average PRK Affiliate Average Financial Industry Includes direct banks, credit unions, community banks, regional banks and national banks. Average score for community banks is based on Bain/Research Now US
Slide 16: The Park National Bank – The bank of choice
16 Bank Division Year joined Park Hdqtr. Co. deposits Total county Deposits Park % of market share Position in Market Park National 1908 $ 1,213,870 $ 2,083,268 58.3% 1 Fairfield National 1985 372,869 1,816,712 20.5% 1 Richland Bank 1987 451,558 1,705,766 26.5% 1 Century National 1990 380,177 1,215,
Slide 17: Your bank of the future
Your bank of the future: • Mobile Banking Introduced: May, 2013 • Registered Mobile Banking Users: 45,334 • Mobile users as a percentage of Online Banking Users: 54.8% (Industry average is around 30%) 17 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 Total # of T
Slide 18: Mobile Banking
Mobile Banking 18 17,000 22,000 27,000 32,000 37,000 42,000 47,000 Ju n -1 3 Ju l- 1 3 A u g- 1 3 Se p -1 3 Oct -1 3 N o v- 1 3 D e c- 1 3 Ja n -1 4 Fe b -1 4 M ar -1 4 A p r- 1 4 M ay -1 4 Ju n -1 4 Active Users Totals 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Ju n -1 3 Ju l- 1 3 A u g- 1 3 Se p -1
Slide 19: 2013 Community Support
2013 Community Support • Park National Corporation Affiliate Focus: − Strengthen our communities! − Deliver extraordinary service!
Slide 20: Century National Bank
Century National Bank Invested in expansions and community improvements: Zane State College – STEM & Medicine Center; Muskingum Rec Center; Genesis Healthcare System Medical Center. Oil & gas activity continues to provide great opportunities for the bank and our communities.
Slide 21: Fairfield National Bank
Fairfield National Bank Named Chamber of Commerce Large Business of the Year for 2013 accomplishments. 21 $1 million earmarked and funded for Lancaster Downtown Business District revitalization loans! Conducted Financial Confidence program in Lancaster and Pickerington High Schools
Slide 22: Farmers & Savings Bank
Farmers & Savings Bank Hosted popular Girls Night Out event in Loudonville and dressed as “Outlaws” for the Wild West theme. 22
Slide 23: First-Knox National Bank
First-Knox National Bank Rendering of the new Mount Gilead office. First-Knox brings Broadway to the Memorial including The Wizard of Oz and Annie Largest pavilion at Ariel Foundation Park donated by First-Knox.
Slide 24: Park National Bank
Park National Bank Sponsored Sunny 95 Neighborhood Block Parties in 12 Franklin County communities. Awarded the first Difference Maker Award in Johnstown. Awards also given in Heath, Hebron, Licking Valley, Utica and to a Freedom Years member. Donated $25,000 to help fund the turf project at Watkins
Slide 25: Park Southwest
Park Southwest 100% participation in Park Cares Week. 17 projects 428 volunteer hours Record United Way campaign! 100% associate participation, contribution totaled $80,000. 31 associates taught Junior Achievement program in 47 classrooms. Named MVP by Junior Achievement of Greater Cincinnati.
Slide 26: Richland Bank
Richland Bank Introduced the Breakfast Club. Monthly breakfast meeting with senior leaders and associates to share ideas and opportunities. 11 Richland Bankers led the creation of a Young Professionals club to help young professionals thrive, collaborate and connect. Supermarket Sweep event at to be
Slide 27: Second National Bank
Second National Bank Celebrated 130- year anniversary in July. Darke County citizens voted SNB the Best Bank 8 years in a row and, Best Investment Services company 2 years in a row.
Slide 28: Security National Bank
Security National Bank Seven bankers dedicated over 100 hours teaching financial literacy classes in 8 schools through Junior Achievement, ABA, and other programs. Raised $7,200 for the March of Dimes through Blue Jeans for Babies, March of Dimes walk, and cut-out competition fundraiser 100% partici
Slide 29: United Bank
United Bank Great community response when United Bankers carried a large American Flag in the parades at the Marion Popcorn Festival, Bratwurst Festival and Crestline Harvest Festival. United Way pacesetters for Crawford and Marion counties with 100% employee participation.
Slide 30: Unity National Bank
Unity National Bank Organized Unity in the Community - 52 associates spent 240 hours completing 9 projects in Piqua, Tipp City & Troy. Unity was a major contribution to the Orange Out fundraiser that helped a Piqua HS student battling cancer. Donated to help build a new education center for Johnston
Slide 31: 2014 PRK Agenda
31 2014 PRK Agenda A. Grow net income; and maintain dividend at historic rate B. Produce PRK ROAE in the upper quintile relative to peers C. Continued reduction of SEPH nonperforming assets D. Reduce PNB nonperforming assets E. Grow quality loans; expand relationships with existing customers F. Main
Slide 32: April 28, 2014 Annual Shareholders' Meeting
32 April 28, 2014 Annual Shareholders’ Meeting