Park National Corporation · AMEX:PRK
Park National — East Coast Financial Services Conference (Sandler O'Neill & Partners) 2010
39 slides from Park National's conference presentation, Nov 5, 2010
Slide 1: East Coast Financial Services Conference
Exhibit 99.1 PARK NATIONAL CORPORATION East Coast Financial Services Conference Sandler O’Neill & Partners November 11, 2010
Slide 2: Forward-looking Statements
Forward-looking Statements + This presentation contains forward-looking statements that 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 perf
Slide 3: Table of Contents
Table of Contents |. PRK Overview Il. Leadership Team Ill. Selected Financial Data IV. Why invest in Park National Corporation? Appendix: Profiles of PRK Affiliate Banks
Slide 4: PRK Overview: Company Profile
|. PRK Overview Company Profile Park National Corporation (Park) is a $7.1 billion bank holding company headquartered in Newark, Ohio. — Park has two bank subsidiaries and 148 full-service offices: + The Park National Bank (11 bank divisions in Ohio and Kentucky) + Vision Bank (2 bank divisions in F
Slide 5: Our Mission
Our Mission + Maximize long-term return to our shareholders by: Acting at all times with integrity and concern for the well-being of our customers, our community and our associates; Providing financial products and services of such high value that our customers view us as unique; Operating our banks
Slide 6: Company Overview — September 30, 2010
Company Overview — September 30, 2010 + Headquarters: Newark, OH Assets: $7.1 billion = Loans: $4.7 billion = Deposits: $5.1 billion - TC Equity $580 milion — TARP’ $100 milion Market Cap: $980 million + 148 branches between two bank subsidiaries across 4 states — Park National Bank “1 bank division
Slide 7: A Successful History of Disciplined Strategic Growth
A Successful History of Disciplined Strategic Growth in Ohio (11 acquisitions; 2 De Novos) 2008 1908 97 feqson ost “The Park National ‘Acquistion of Firs = Federal Savings ae Ce eo pare cemon csabihed cones cog iS 2 need mers Savings Bk Foti Acustion of samy ‘990 Sees naten aviston ef Fst nor ark Ac
Slide 8: Leadership Team: Park Executive Management
Il. Leadership Team Park Executive Management + C. Daniel DeLawder — Chairman and Chief Executive Officer — Age: 61 - Chairman, Chief Executive Officer (1999) and Board Member of The Park National Bank and Park National Corporation (Corporation or Park) headquartered in Newark, Ohio. He served previ
Slide 9: Park Executive Management (continued)
Park Executive Management (continued) + John W. Kozak — Chief Financial Officer — Age: 55 - Chief Financial Officer of Park (1998); Senior Vice President since January 1999, a Member of the Board of Directors since December 2006, and Vice President from 1991 to 1998, of The Park National Bank; Chief
Slide 10: Experienced Leadership Team
Experienced Leadership Team . Senior leadership consists of executives with proven local market experience . Leadership team averages 26 years of banking experience + Average management tenure at Park National is approximately 23 years Position C. Daniel DeLawder Chairman & CEO 61 39 39 David L. Tra
Slide 11: Leadership Team — continued
Leadership Team — continued * Years Years with In Position Age PRK Industry Brady T. Burt VP — Chief Accounting Officer 38 3 9 Thomas J. Button SVP — Chief Credit Officer 50 13 24 Thomas M. Cummiskey ‘SVP - Trust 41 W 13 Lynn B. Fawcett ‘SVP - Operations 51 20 20 William C. Fralick President — Secur
Slide 12: Park National Bank — The bank of choice
Park National Bank — The bank of choice Year joined Bank Division Name Park Park National 1908 Fairfield National 1985 Richland Bank 1987 Century National 1990 First-Knox National 1997 Second National 2000 Security National 2001 Headquarter Counties of Operation — Depo: Seven largest OH divisions Ot
Slide 13: Customer Proposition Leads to Core Profitability
Customer Proposition Leads to Core Profitability ique local branding strategy makes PRK the re an Eee + Dominant market share + Sector leading margin : nparalleled lity continues + Favorable pricing tl ROAA % Yield on Earning Assets % 5.44 4.99 +45 bps Net interest Margin % Cost of Funds % 4.25 3.14
Slide 14: Park Earnings History
Park Earnings History YTD 03 2010 1 a2 2010 vipat 2010 2009 2008 2007 2006 2005 204 2003 2002 2001 2000 * Adjusted for goodwill impairment charge of $55 million in 2008 and $54 milion in 2007. charges, Park's diluted EPS for 2008 and 2007 was $0.97 and $1.60, respectively. Common Common Book Tangibl
Slide 15: Park Earnings History
Park Earnings History | siéilutedEPS luted E $7.00 guae $8.86 $876 $6.00 we poe sso" $5.00 43 sez $4.00 az $3.00 $2.00 $1.00 $0.00 Park National Corporation * Adjusted for goodwill impairment charge of $55 million in 2008 and $54 million in 2007. Including the goodwill impairment charges, Park's dil
Slide 16: Results Count - ROA and ROE History
Ill. Selected Financial Data Results Count - ROA and ROE History Park ROA, Park ROE, Park excluding Peer median Park excluding Peer median ROA Vision ROA ROE* Vision * ROE YTD 03 2010 annualized 1.08% 1.66% NA 11.85% 19.26% Na YTD a2 2010 annualized 1.12% 1.78% 0.38% 12.35% 20.21% 2.09% YTD a1 2010
Slide 17: Increase / (decrease) in loans
Increase / (decrease) in loans (in thousands) 500,000 Six year loan growth = $203,568 or $33,928 per year 400,000 354,277 300,000 A x are 199,909 200,000 ri ATA, 784 126,005 99,346 100,000 aa 53,600 60,036 0 2000 2003 2004 2008 +2006 +2007 +2008 +2008 Sept. (100,000) ao: (94,956) 2010 (200,000) (158
Slide 18: Vision Bancshares, Inc. Acquisition
Vision Bancshares, Inc. Acquisition On March 9, 2007, Park acquired all the stock and outstanding stock options of Vision Bancshares, Inc. for $87.8 million in cash and 792,937 shares of Park common stock valued at $83.3 million or $105.00 per share. Goodwill of $109.0 million was recognized upon ac
Slide 19: Asset and Loan Portfolio Comparison
Asset and Loan Portfolio Comparison Total assets 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Dec. 31,Dec. 31,Dec.31, March June Sept. At September 30, 2010, Vision Bank assets represented approximately 11.8% of the total assets of Park National Corporation ($838
Slide 20: Park National Corporation — Income Statement
Park National Corporation — Income Statement Nine months ended (in thousands) September 30, 2010 Dec. 31, 2009 Dec. 31, 2008 Dec. 31, 2007 Net interest income $ 205,546 $ 273,491 § 255,873 S 234,677 Provision for loan losses 44,454 68,821 70,487 29,476 Net interest income after provision 161,092 204
Slide 21: Vision Bank — Income Statement
Vision Bank — Income Statement Nine months ended (in thousands) September 30, 2010 Dec. 31, 2009 Dec. 31,2008 Dec. 31, 2007 Net interest income $ 20,979 S 25,634 S$ 27,065 =§ 23,754 Provision for loan losses 21,129 44,430 46,963 19,425 Net interest income after provision (6,750) (18,796) (19,898) 4,
Slide 22: Park National Corporation, excluding Vision — Income Statement
Park National Corporation, excluding Vision — Income Statement . Prior to our acquisition of Vision Bank in 2007, Park had a history of being a top performing bank holding company. Nine months ended (in thousands) September 30, 2010 Dec. 31, 2009 Dec. 31, 2008 Dec. 31, 2007 Net interest income $ 184
Slide 23: Park National Corporation - Balance Sheet
Park National Corporation - Balance Sheet (in millions) Sept. 30, 2010 Dec. 31,2009 Dec. 31,2008 _Dec. 31, 2007 Investment securities Ss 1,897 S 1,864 S 2,059 $1,703 Loans 4,657 4,640 4491 4,224 Allowance for loan losses (i7) (7) (100) (87) Other assets 653, 653 620 661 Total assets S__7,090 $7,040
Slide 24: Funding Composition
Funding Composition + 80% core deposits contributes to a cost of deposits historically well below peer levels Funding Mix (as of 9/30/10) Deposit Composition (as of 9/30/10) ome Demand other F HE, Deposits - 17.8% Senior Debt 15% Time Deposits 376% Hrransaction Accounts 27.0% Deposits = Savings 20%
Slide 25: Earning Assets Composition
Earning Assets Composition + Commercial lending focus on small, closely held businesses within our market + 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 — Nounfa
Slide 26: Investment Portfolio
Investment Portfolio + As of September 30, 2010 our investment portfolio totaled approximately $1.8 billion — $1.22 billion available-for-sale — $0.61 billion held-to-maturity Investment Portfolio Composition Conservative Portfolio + Net unrealized gain position of $62.6 million as of ae September 3
Slide 27: Park National Corporation — Loans by Type
Park National Corporation — Loans by Type {in thousands) Sept. 30, 2010 Dec. 31, 2009 Dec. 31, 2008 Commercial and industrial $733,913 $ 751,277 $ 714,296 Real estate construction Commercial land & development 356,636 406,753 418,421 1-4 family construction 80,039 88,765, 115,367 Total real estate c
Slide 28: Park National Corporation — Loans by Type
Park National Corporation — Loans by Type Total Loans = $4.657 B Farmland 1.9% Comm. & Ind. 15.8% Comm. Real Estate 24.1% Consumer 14.7% RealEstate Construction 9.4% Res. Real Estate 34.2% ‘Source: SHC Performance Reports and Company Filings, Real Estate Construction = $436,675 ‘41am Commercial Real
Slide 29: Credit Quality Snapshot
Credit Quality Snapshot Total nonperforming assets 300,000 250,000 200,000 150,000 100,000 50,000 (+) Dec. 31, Dec. 31, Dec. 31, Sept. 30, 2007 2008 2009 2010 BPRK, excluding Vision * OVision * Includes Park National Bank loan participations with Vision Bank of $21.1 million, $14.1 million and $9.1
Slide 30: Allowance for loan and lease losses and new nonaccrual loans
PRK — Allowance for loan and lease losses (ALLL) and new nonaccrual loans Sept. 30, Dec. 31, Dec. 31, (in thousands) 2010 2009 2008 Total ALLL $117,405 S116,717 $100,088 Specific Reserves 35,293, 36,721 8,727 General Reserves $82,112 $79,996 $91,361 Total loans $4,656,902 $4,640,432 $4,491,337 Impai
Slide 31: Park National Corporation — Nonperforming assets
Park National Corporation — Nonperforming assets Sept.30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31, (in thousands) 2010 2010 2010 2009 2008 2007 Nonacenual loans, $737,194 $237,840 $730,498 $733,544 $159,512 $101,178 Renegotiated loans - 214 60 142 2,845 2,804 Loans past due 90 days or more (sti
Slide 32: Vision Bank — Nonperforming assets
Vision Bank — Nonperforming assets Sept. 30, June 30, March31, Dec. 31, Dec. 31, Dec. 31, (in thousands) 2010 2010 2010 2009 2008 2007 Nonaccrual loans $132,808 $152,697 $145,013 $148,347 $91,207 $63,015 Renegotiated loans - - 4 - 2,845 - Loans past due 90 days or more (still accruing) 5,962 9.616 9
Slide 33: Park National Corporation, excluding Vision — Nonperforming assets
Park National Corporation, excluding Vision — Nonperforming assets Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31, (in thousands) 2010 2010 2010 2009 2008 2007 Nonaccrual loans $104,388 * $84,943" $85,485" $85,197" $68,305* $38,113, Renegotiated loans - 214 56 142 - 2,804 Loans past due 90 d
Slide 34: Historical Review of Vision Bank Commercial Land & Development Loans
Historical Review of Vision Bank Commercial Land & Development Loans September Dec. 31, Dec. 31, Dec. 31, (in thousands) 30, 2010 2009 2008 2007 CL&D loans, period end $175,988 $ 218,205 § 251,443, $ 295,743 Performing CL&D loans, period end 93,361 132,788 191,712 260,195 Impaired CL&D loans, period
Slide 35: Capital Ratios - September 30, 2010
Capital Ratios - September 30, 2010 ($ in thousands) Park National Corporation Park National Bank Vision Bank Minimum capital ratio Well capitalized requirement TARP capital PRK, excluding TARP ‘Source: Company Filings Tier | Risk Risk Based Leverage Ratio _ Based Capital Capital 9.67% 13.51% 15.98%
Slide 36: Capital Raising Activities
Capital Raising Activities 2Q 2009 183,200 common shares; net proceeds of $10.5 million 3Q 2009 105,072 common shares; net proceeds of $6.2 million 4Q 2009 500,000 common shares; net proceeds of $29.8 million 4Q 2009 115,800 common shares, to the PRK Defined Benefit Pension Plan; proceeds of $7 mill
Slide 37: Tangible Common Equity
Tangible Common Equity TCE Ratio Shares outstanding Q3 2010 8.28% * 15,302,244 2009 115%" 14,882,780 2008 6.61% 13,971,727 2007 6.85% 13,964,576 2006 9.13% 13,921,529 2005 9.12% 14,092,626 2004 971% 14,320,227 2003 10.56% 14,455,027 2002 11.13% 14,481,564 2001 9.83% 14,637,841 2000 10.09% 14,830,953
Slide 38: Why invest in Park National Corporation?
IV. Why invest in Park National Corporation? + Unique, localized business model makes us the bank of choice for customers + — Stable, low cost deposit funding, coupled with superior lending rates, contributes to outstanding profitability + Favorably positioned to take advantage of excellent growth o
Slide 39: Appendix: Profiles of PRK Affiliate Banks
Appendix: Profiles of PRK Affiliate Banks Please visit profile of the PRK affiliate banks fora 39
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