Park National Corporation · AMEX:PRK
Park National — Sandler O'Neill East Coast Financial Services Conference 2018
31 slides from Park National's conference presentation, Nov 6, 2018
Slide 1: Sandler O'Neill East Coast Financial Services Conference
Sandler O’Neill East Coast Financial Services Conference November 6-8, 2018 1
Slide 2: Forward-looking Statement Disclosure
Forward-looking Statement Disclosure Certain statements contained in this communication which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not alw
Slide 3: Important Information about the Merger
Important Information about the Merger In connection with the proposed merger, Park has filed with the SEC a Registration Statement on Form S-4 that includes a preliminary Proxy Statement of CAB Financial and a preliminary Prospectus of Park, as well as other relevant documents concerning the propos
Slide 4: Corporation (PRK) Profile
Park National Corporation (PRK) Profile (as of September 30, 2018) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 29 Ohio counties • 1 Kentucky county • 2 North Carolina counties • 109 bank branches • 3 loan production offices • 6 specialty finance
Slide 5: Leadership Team: Park Senior Management
Leadership Team Park Senior Management • David L. Trautman – President and CEO – Age: 57 President , CEO and Board Member of The Park National Bank and Park National Corporation (Park) headquartered in Newark, Ohio. He served as President of First-Knox National Bank, a division of The Park National
Slide 6: Senior Management (continued)
Park Senior Management (continued) • Matthew R. Miller – Executive Vice President – Age: 40 Executive Vice President of Park since April 2017. Formerly served as the Chief Accounting Officer of Park from December 2012 to April 2017, and as an Accounting Vice President from April 2009 to December 201
Slide 7: Experienced Leadership Team
Experienced Leadership Team • Senior leadership consists of executives with proven local market experience • Leadership team averages 28 years of banking experience • Average management tenure with Park National is approximately 21 years Years Years with In Name Position Age PRK Industry David L. Tr
Slide 8: Leadership Team – continued
Leadership Team – continued Years Years with In Name Position Age PRK Industry Adrienne M. Brokaw SVP – Director of Internal Audit 50 5 19 Thomas J. Button SVP – Chief Credit Officer 58 21 32 Thomas M. Cummiskey SVP – Trust 49 19 21 Kelly A. Herreman VP – Chief Accounting Officer 36 8 13 Robert N. K
Slide 9: Affiliate Leadership
Affiliate Leadership Years Years with In Name Position Age PRK/Affiliate Industry Scott E. Rasor President – Unity National Bank 59 5 35 John A. Brown President – Security National Bank 49 27 27 President – Park National Bank of David J. Gooch 49 21 27 Southwest Ohio & Northern Kentucky Chris R. Hin
Slide 10: Highlights of the First Nine Months of 2018
Highlights of the First Nine Months of 2018 •Completed acquisition of NewDominion Bank on July 1st. •Announced planned acquisition of CABF (assets of $745.7 million and deposits of $618.5 million as of September 30, 2018) •Credit quality remains strong: PRK and PNB experienced annualized net charge-
Slide 11: ROA and ROE History
ROA and ROE History PRK and PRK, excluding Vision & Southeast Property Holdings, LLC (SEPH) Park ROAA, Peer Park ROAE, Peer Park excluding VB median excluding VB & median ROAA & SEPH ROAA Park ROAE 1 SEPH 2 ROAE 3Q 2018 YTD (annualized) 1.48% 1.44% 1.17%4 14.57% 14.40% 10.33%4 2017 1.09% 1.10% 0.95%
Slide 12: The Park National Bank – The bank of choice
The Park National Bank – The bank of choice Headquarter Counties – Deposits (in thousands) 2018 2017 Headquarter Headquarter County County Year Joined Hdqtr. Co. Total County % of 2018 % of 2017 Market Share Market Share Bank Division Park Deposits Deposits Market Share Market Share Rank Rank Park N
Slide 13: Corporation Consolidated Statements of Income
Park National Corporation Consolidated Statements of Income Nine Nine months months (in thousands) Q3 2018 Q2 2018 Q1 2018 YTD 2018 YTD 2017 2017 2016 Net interest income $ 67,676 $ 64,742 $ 64,850 $ 197,268 $ 180,281 $ 243,759 $ 238,086 Provision for (recovery of) loan losses 2,940 1,386 260 4,586
Slide 14: Corporation Consolidated Balance Sheets
Park National Corporation Consolidated Balance Sheets (in millions) Sep. 30, 2018 Dec. 31, 2017 Dec. 31, 2016 $ Cash & cash equivalents $ 145 $ 169 146 Investment securities 1,439 1,513 1,580 Loans 5,625 5,372 5,272 Allowance for loan losses (50) (50) (51) Other assets 597 534 521 $ Total assets $ 7
Slide 15: Quarterly Net Income (Loss) by Operating Segment
Quarterly Net Income (Loss) by Operating Segment Nine months Nine months (In thousands) Q3 2018 Q2 2018 Q1 2018 YTD 2018 YTD 2017 2017 2016 PNB $27,856 $28,797 $26,745 $83,398 $62,946 $87,315 $84,451 GFSC 254 295 57 606 468 260 (307) Park Parent Company 1 (3,059) (973) 1,465 (2,567) (2,040) (2,457)
Slide 16: The Park National Bank Consolidated Statements of Income
The Park National Bank Consolidated Statements of Income Nine months Nine months (In thousands) Q3 2018 Q2 2018 Q1 2018 YTD 2018 YTD 2017 2017 2016 Net interest income $ 66,195 $ 62,683 $ 61,441 $ 190,319 $ 174,717 $ 235,243 $ 227,576 Provision for (recovery of) loan losses 2,935 1,623 (67) 4,491 9,
Slide 17: Bank Balance Sheet Highlights
Park National Bank Balance Sheet Highlights % change % change September 30, December 31, September 30, from from (In thousands) 2018 2017 2017 12/31/17 9/30/17 Loans $ 5,605,925 $ 5,339,255 $ 5,332,308 4.99% 5.13% Allowance for loan losses 47,981 47,607 52,888 0.79% (9.28%) Net loans 5,557,944 5,291
Slide 18: Bank Loans by Type
Park National Bank Loans by Type • Commercial lending focus is 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 9/30/2018 6/30/2018 12/31/2017 9/30/2017
Slide 19: Bank Indirect Loans
Park National Bank Indirect Loans $1,250,000 $1,000,000 $750,000 $500,000 $250,000 Indirect Loans (in thousands) $0 Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Sep. 30, 2018 Other $154,172 $106,872 $86,425 $75,863 Boat/RV $68,096 $138,483 $184,862 $213,146 Auto $541,307 $668,018 $778,711 $804,952 Tota
Slide 20: Corporation Nonperforming Assets
Park National Corporation Nonperforming assets (in thousands) Sep. 30, 2018 Dec. 31, 2017 Dec. 31, 2016 Non-accrual loans 1 $ 66,654 $ 72,056 $ 87,822 Renegotiated loans 1 14,602 20,111 18,175 Loans past due 90 days or more (still accruing) 2,025 1,792 2,086 Total nonperforming loans $ 83,281 $ 93,9
Slide 21: Corporation less Vision Bank/SEPH Nonperforming Assets
Park National Corporation less Vision Bank/SEPH Nonperforming Assets (in thousands) Sep. 30, 2018 Dec. 31, 2017 Dec. 31, 2016 Non-accrual loans $ 65,019 $ 61,753 $ 76,084 Renegotiated loans 14,602 20,111 18,175 Loans past due 90 days or more (still accruing) 2,025 1,792 2,086 Total nonperforming loa
Slide 22: PRK comparison to peers
PRK comparison to peers Peer Peer PRK Group Peer Peer PRK Group Price to Price to PRK Group PRK Group Price to Price to tangible Tangible Price to Price to Dividend Dividend Book % Book % book Book % Earnings Earnings Yield Yield 3Q 2018 205% 163% 1 240% 212% 1 14.6 2 15.9 1 3.9 3 1.9 1 2017 210% 16
Slide 23: Strategic Partnerships and Expansion into North and South Carolina
and Strategic Partnerships and Expansion into North and South Carolina NYSE AMERICAN: PRK | OTCQX: CABF 23
Slide 24: Forward-looking Statement Disclosure
Forward-looking Statement Disclosure Certain statements contained in this communication which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not alw
Slide 25: Important Information about the Merger
Important Information about the Merger In connection with the proposed merger, Park will file with the SEC a Registration Statement on Form S-4 that will include a Proxy Statement of and a Prospectus of Park, as well as other relevant documents concerning the proposed transaction. SHAREHOLDERS OF CA
Slide 26: NewDominion – Selected Highlights
Park National / NewDominion – Selected Highlights NewDominion Financials Pro Forma Branch Map (as of and for the year ended 12/31/17) . Total assets: $338.3 million . Total gross loans: $284.4 million . Total deposits: $282.3 million . Total equity (all tangible): $39.0 million . 2017 efficiency rat
Slide 27: CAB Financial – Transaction Overview
Park National / CAB Financial – Transaction Overview Deal value: $141.8 million1 CABF shareholders to receive 0.1378 shares of PRK common stock and $3.80 in cash Consideration: for each share of CABF common stock, ~80% stock / 20% cash consideration mix Per share price: $19.001 • Regulatory Required
Slide 28: CAB Financial – Selected Highlights
Park National / CAB Financial – Selected Highlights Pro Forma Branch Map Pro Forma Branch Map . Total assets: $730.7 million . Total gross loans: $567.0 million . Total deposits: $599.7 million . Total equity: $78.9 million . Tangible common equity / tangible assets: 10.18% . LTM efficiency ratio: 7
Slide 29: CAB Financial – Strategic Rationale
Park National / CAB Financial – Strategic Rationale . Consistent with Park’s strategy of adding attractive growth markets to its historical markets − CABF’s Asheville, North Carolina and Greenville and Spartanburg, South Carolina markets have superior demographic and employment trends relative to Pa
Slide 30: PRK M&A Strategy
PRK M&A Strategy Two prong strategy guidelines: • Traditional M&A • Strong franchise, good reputation • Good market share • Existing leadership continuity • Traditional community bank structure • Core deposits • Metro Strategy – Attractive markets in the Midwest / Southeast / Mid-Atlantic states • O
Slide 31: Sandler O'Neill East Coast Financial Services Conference
Sandler O’Neill East Coast Financial Services Conference November 6-8, 2018 31
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