Park National Corporation · AMEX:PRK
Park National — Shareholder Meeting (April 2011)
37 slides from Park National's shareholder meeting presentation, Apr 18, 2011
Slide 1: Annual Shareholders' Meeting April 18, 2011
PARK NATIONAL CORPORATION ——— Annual Shareholders’ Meeting April 18, 2011
Slide 2: Forward-looking Statements
NATIONAL Forward-looking Statements _ ‘This presentation presents management's discussion and analysis of the financial condition and results of operations for Park National Corporation (Park), This discussion should be considered in conjunction with the consolidated financial statements and related
Slide 3: Farmers Bank
Farmers Bank * 13 Community Banks (2 charters) * 2 Specialty Finance Companies + 29 Ohio, 5 Florida, 1 Alabama & 1 Kentucky counties + 149 Financial Service Centers * 1,948 FTEs (es 015312011)
Slide 4: Relative Size of Operating Units (Loans & Deposits)
z z 5 § FY 3 s = & = i < PARK NATIONAL CORPORATION Relative Size of Operating Units (Loans & Deposits) December 31, 2010 1,400,000 PND SEC FKNB CNB RTC FNB SNB PSW UBB Unity F&S VBA VBF Scope Bank Division Gre
Slide 5: Statement of Condition
PARK NATIONAL CORPORATION Statement of Condition (in millions) March 31, 2011 Investment securities. $ 2,046 Loans 4751 Allowance for loan losses (127) Other assets: 668 Total assets $ 7,338 Non-interest bearing deposits s 955, Interest bearing deposits 4,360 Total deposits 5,315, Total borrowings 1
Slide 6: Earning Assets Composition
Earning Assets Composition + Limited exposure to high risk asset classes = Subprime ($86.9 million exposure) ~ Guardian Finance Company ($43.7 million) and Structured Warehouse Finance ($43.2 million) - Alt-A loans / Option Arms ($0 exposure) = _ Nationally syndicated loans ($0 exposure) = GSE Prefe
Slide 7: Loans by Type
Loans by Type + Commercial lending focus on small, closely-held businesses within our markets + Consumer mortgage and home equity portfolios are originated by Park within our footprint and have been consistently underwritten for decades + Steady growth across all loan categories — No unfavorable mix
Slide 8: Asset and Loan Portfolio Comparison
scomone: Total Assets 7,090,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 Dec. 31, Owe. 31, Dec.31, Dec. 31, 2007' 200820092010 At December 31, 2010, Vision Bank loans represented approximately 13.5% of the total consolidated loans of Park National Corporation ($641 milion of $4.7
Slide 9: Investment Portfolio
Investment Portfolio + As of December 31, 2010, the fair value of our investment portfolio totaled approximately $2.0 billion — $1.30 billion available-for-sale - $0.69 billion held-to-maturity Investment Portfolio Composition Conservative Portfolio Municipals, cauty Mem ogy + Net unrealized gain po
Slide 10: Funding Composition
Funding Composition + 80% core deposits contribute to a stable funding base Funding Mix (as of 12/31/10) Deposit Composition (as of 12/31/10) Other 1% Borrowings 20% Savings 17.8% Time Deposits 387% Deposits 79% Demand Deposits 184% Total funding ($M): $6,471 Total deposit portfolio ($M): $5,095 Not
Slide 11: Federal Funds Rate Adjustments Since December 31, 2007
Since December 31, 2007 Federal Funds Rate Adjustments BRate| Throughout 2009 Throughout 2010
Slide 12: Park National Corporation - Income Statement
{in thousands) Park National Corporation - Income Statement March 34, 2014 Dec. 31, 2009 Net interest income Provision for loan losses Net interest income after provision Non interest income Gain on sale of securities Non interest expense Income before income taxes Income taxes Net income Source: Co
Slide 13: Vision Bank - Income Statement
Vision Bank - Income Statement {in thousands) March 34, 2014 Dec. 31, 2009 Net interest income $ 6,755 $ 25,634 Provision for loan losses 8,000 44,430 Net interest income after provision (1,245) (18,796) OREO devaluations (4,394) (6.138) Other non-interest income 1,217 4,091 Gain on sale of securiti
Slide 14: Income Statement excluding Vision
Income Statement {in thousands) Park National Corporation, excluding Vision March 34, 2014 Dec. 31, 2009 Net interest income Provision for loan losses Net interest income after provision Non interest income Gain on sale of securities Non interest expense Income before income taxes, Income taxes Net
Slide 15: The Park National Bank - The bank of choice
Headquarter Counti Year joined Bank Di Park Park National 1908 Fairfield National 1985 Richland Bank 1987 Century National 1990 First-Knox National 1997 ‘Second National 2000 Security National 2001 Seven largest OH divisions Other OH divisions ~ headquarter counties Total OH divisions — headquarter
Slide 16: Customer Service Leads to Core Profitability
+ Local decision making * Local community focused Customer Service Leads to Core Profitability ique branding strategy makes PRK Affiliates the local bank of chi Sector leading margin Historically superior profitability continues = + Dominant markt share a Eo aa ian = = o = = = i: = =e Efficiency Rat
Slide 17: Results Count
Results Count ROA and ROE History - PRK and PRK, excluding Vision Park ROAA, Park excluding ROAA Vision 2009 0.97% 1.61% 2008 1.02% *** 1.63% 2007 1.24% *** 1.52% 2006 1.75% 1.75% 2005 1.71% 1.71% 2004 1.81% 1.81% 2003 1.81% 1.81% 2002 1.93% 1.93% 2001 1.84% 1.84% 2000 1.65% 1.65% Peer median ROAA 0
Slide 18: Park Earnings History
10.2011 2001 * Adjusted for goodwill impairment charge of $55 million in 2008 and $54 million in 2007. Including the goodwill impairment charges, Park's diluted EPS for 2008 and 2007 was $0.97 and $1.60, respectively. Source: Company Filings ee Park Earnings History Tangible Period Common ‘Common Bo
Slide 19: Park comparison to peers
Park comparison to peers Peer Peer Group Peer Peer Priceto Group Priceto Group Group Priceto Tangible Priceto Dividend Priceto Tangible Priceto Dividend Book % Book % Earnings Yield Book % Book % Earnings Yield 192011 159% 180% 15.25* 57 N/A NA N/A NA 2008 141% 2008 183% 2007 155% 2006 242% 2005 259
Slide 20: Total Return Performance
Total Return Performance Park National Corporation Total Return Performance 160 40 = at 120 Pal 100 FI SS Ser ay s s = 80 2 . ~ a) 40 20 12/31/05 12/3106 12/3107 12/31/08 12/3109 1273110 == Park National Corporation —®— NYSE Amex Composite —*— NASDAQ Bank —®— SNL Bank and Thrit inde| ‘The total retu
Slide 21: Analysis of Total Return
Analysis of Total Return PRK, various indices and other Ohio bank holding companies 15.0%: 10.0%: 5.09% 0.09%: -5.0%- -10.0%: 15.0%: -20.0% PRK Dow Jones S&P500 Nasdaq Bank Russell2000 Huntington Fifth Third KeyCorp 2 Source: Bloomberg fo the period ended Mar Te
Slide 22: PRK - Allowance for loan and lease losses
PRK - Allowance for loan and lease losses (ALLL) and new nonaccrual loans March 31, Dec. 31, (in thousands) 2011 2009 Total ALLL $126,859 $116,717 Specific Reserves 47,287 36,721 General Reserves $79,572 $79,996 Total loans $4,750,975 $4,640,432 Impaired commercial loans 238,959 201,143 Non-impaired
Slide 23: Park National Corporation Non-performing assets
Park National Corporation Non-performing assets March 34, Dec. 31, (in thousands) 2011 2009 Non-acorual loans $278,819 $233,544 Renegotiated loans 260 142 Loans past due 90 days or more (still accruing) 2,228 14,773 Total nonperforming loans $281,307 $248,459 Other real estate owned (OREO) 47,133 41
Slide 24: Vision Bank Non-performing assets
Vision Bank Non-performing assets March 31, Dec. 31, (in thousands) 2011 2009 Non-acerual loans $163,343, $148,347 Renegotiated loans - - Loans past due 90 days or more (still accruing) : 11,277 Total nonperforming loans $163,343 $159,624 Other real estate owned (OREO) 24,341 35,203 Total nonperform
Slide 25: Park National Corporation, excluding Vision
Park National Corporation, excluding Vision Non-performing assets March 34, (in thousands) 2014 2009 Non-accrual loans $115,476" $85,197* Renegotiated loans 260 142 Loans past due 90 days or more (still accruing) 2,228 3,496 Total nonperforming loans $117,964 $88,835, Other real estate owned ~ Park
Slide 26: Historical Review of Vision Bank
Source: Historical Review of Vision Bank Commercial Land & Development (CL&D) Loans March 31, (in thousands) 2014 CLAD loans, period end $ 161,140 Performing CL&D loans, period end 79,080 Impaired CL&D loans, period end $ 82,060 Specific reserve on impaired CL&D loans $ 25,543 Cumulative charge-offs
Slide 27: Review of Park's Commercial Loan Portfolio
excluding Vision Bank CL&D loans (in thousands) Review of Park’s Commercial Loan Portfolio, March 31, 2011 Commercial Loans, excluding Vision CL&D loans, period end Performing commercial loans, period end Impaired commercial loans, period end Specific reserve on impaired commercial loans Cumulative
Slide 28: Vision Bank Nonperforming Asset Portfolio Strategy
Vision Bank Nonperforming Asset Portfolio Strategy As of December 31, 2010, Vision’s CL&D loan portfolio was $171.0 million, down from a post-acquisition high of $308.5 million at June 30, 2007, a decline of 44.5%. Performing CL&D loans were $84.5 million at December 31, 2010, down from a post- acqu
Slide 29: Capital Ratios
Capital Ratios Capital Ratios @ December 31, 2010 Tier I Risk- (Sin thousands) Leverage Ratio Based Capital Risk-Based Capital Park National Corporation 9.77% 13.52% 15.98% Park National Bank 6.68% 9.43% 11.38% Vision Bank 14.05% 18.22% 19.55% Regulatory minimum capital ratio 4.00% 4.00% 8.00% Regul
Slide 30: 2010 PRK Agenda
2010 PRK Agenda A. Maintain dividend at current level B. Improve loan quality; reduce troubled assets C. _ Increase net income D. Promote intensified customer focus and shared cultural values —. Continue process and technology improvement initiatives F: Capital funding alternatives (TARP/CPP) 30
Slide 31: 2010 PRK Results
2010 PRK Results A. Maintained dividend at 2009 level; $3.76 per common share. B. Asset quality continued to decline in 2010 as the economy slowly recovers from the “great recession” and the Deepwater Horizon oil spill in the Gulf of Mexico put additional strains on our Vision Bank subsidiary. C. Ma
Slide 32: 2011 PRK Agenda
2011 PRK Agenda A. Maintain dividend at current level B. Increase net income C. — Improve loan quality; reduce troubled assets D. Complete implementation of “Service Excellence” initiative E. Continue process and technology improvement initiatives F. Capital funding alternatives (TARP/CPP) G. M&Aana
Slide 33: PRK Strategic Plan
PRK Strategic Plan Mission Statement: “...to maximize long-term return to our shareholders...” First Declaration: To act at all times with integrity and with concern for the well-being of our customers, our community, and all of us who work here. 33
Slide 34: PRK Business Unit FTEs - March 31, 2011
PRK Business Unit FTEs - March 31, 2011 Park National Bank Fairfield National Bank Richland Bank Century National Bank First-Knox National Bank Farmers & Savings Bank United Bank Second National Bank Security National Bank Unity National Bank Park National Bank, SW OH & N KY Vision Bank Alabama Visi
Slide 35: PRK Charitable Distributions - 2010
PRK Charitable Distributions - 2010 * Park National Bank Fairfield National Bank Richland Bank Century National Bank First-Knox National Bank Farmers & Savings Bank United Bank Second National Bank Security National Bank Unity National Bank Park National Bank, SW OH & N KY ion Bank Guardian Finance
Slide 36: Common share ownership as of December 2010
Common share ownership as of December 2010 (Main office headquarter counties plus Hamilton and Franklin Counties) cash Estimated # % of Shares dividends paid of Shares outstanding Licking County $ 6,625,585 1,762,124 11.4% Franklin County 878,245 233,576 1.5% Fairfield County 186,064 49,485 0.3% Mus
Slide 37: Annual Shareholders' Meeting April 18, 2011
PARK NATIONAL CORPORATION ——— Annual Shareholders’ Meeting April 18, 2011 37