Park National Corporation · AMEX:PRK
Park National — Keefe, Bruyette & Woods Community Bank Investor Conference 2014
26 slides from Park National's conference presentation, Jul 28, 2014
Slide 1: KBW Community Bank Investor Conference, July 29-30, 2014
1 July 29 – 30, 2014 Keefe, Bruyette & Woods Community Bank Investor Conference
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 (PRK) Profile
3 Park National Corporation (PRK) Profile (as of June 30, 2014) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 29 Ohio & 1 Kentucky counties • 120 bank branches • 7 specialty finance offices • 1,839 FTEs
Slide 4: Park Executive Management
Park Executive Management David L. Trautman – President and CEO– Age: 53 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 Bank, from May
Slide 5: Park Executive Management (continued)
Park Executive Management (continued) Brady T. Burt – Chief Financial Officer – Age: 42 Chief Financial Officer of Park since 2012. Formally served as the Chief Accounting Officer with Park since April 2007. Prior to joining Park, Mr. Burt served Vail Banks, Inc. in various capacities, including E
Slide 6: Experienced Leadership Team
6 Experienced Leadership Team Name Position Age Years with PRK Years In Industry David L. Trautman President & CEO 53 31 31 C. Daniel DeLawder Chairman 64 43 43 Brady T. Burt Chief Financial Officer 42 7 13 Senior leadership consists of executives with proven local market experience Leadership t
Slide 7: Leadership Team – continued
7 Leadership Team – continued Name Position Age Years with PRK Years In Industry Adrienne M. Brokaw SVP – Director of Internal Audit 46 1 15 Thomas J. Button SVP – Chief Credit Officer 54 17 28 Thomas M. Cummiskey SVP – Trust 44 14 16 Robert N. Kent, Jr. President – Scope Aircraft Finance 56 11 31 T
Slide 8: Affiliate Leadership
8 Affiliate Leadership Name Position Age Years with PRK/Affiliate Years In Industry John A. Brown President – Richland Bank 45 23 23 Brett A. Baumeister President – Unity National Bank 48 10 24 William C. Fralick President – Security National Bank 59 38 38 David J. Gooch President – Park National Ba
Slide 9: Highlights of the First Six Months of 2014
9 Highlights of the First Six Months of 2014 • Loan growth of $120 million year to date, or 5.3% annualized, at Park’s Ohio subsidiary, The Park National Bank. • Credit quality remains strong: Park National Corporation experienced annualized net (recoveries) charge-offs for the first six months of (
Slide 10: PRK and PRK excluding SEPH ROA and ROE History
10 PRK and PRK, excluding Vision & Southeast Property Holdings, LLC (SEPH) ROA and ROE History 1 Calculated using average common equity for Park National Corporation. 2 Calculated using average common equity for Park National Corporation, excluding Vision Bank and SE Property Holdings, LLC. 3 Adjust
Slide 11: Total Return Performance Park National Corporation
11 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 12: Bank Division Deposits and Market Share
12 Bank Division Year Joined Park Hdqtr. Co. Deposits Total County Deposits Park % of 2013 Market Share Headquarter County Market Share Rank 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 Natio
Slide 13: Park National Corporation – Income Statement
13 Park National Corporation – Income Statement Source: Company Filings 1 Vision Bank (“Vision”) merged with and into SEPH, a non-bank subsidiary of Park, following the sale of the Vision business to Centennial Bank (“Centennial”) on February 16, 2012. The sale of the Vision business in the first qu
Slide 14: Park National Corporation Statement of Condition
PARK NATIONAL CORPORATION Statement of Condition 14 Source: Company Filings (in millions) June 30, 2014 Dec. 31, 2013 Dec. 31, 2012 Investment securities $ 1,418 $ 1,424 $ 1,582 Loans 4,735 4,621 4,450 Allowance for loan losses (58) (59) (56) Other assets 694 652 667 Total assets $ 6,789 $ 6,638 $ 6
Slide 15: Quarterly Net Income by Operating Segment
Quarterly Net Income by Operating Segment 15 Source: Company Filings (In thousands) Q2 2014 Q1 2014 Six months YTD 2014 Six months YTD 2013 2013 2012 PNB $ 22,189 $ 19,607 $ 41,796 $ 40,262 $ 75,794 $ 87,106 GFSC 478 604 1,082 1,530 2,888 3,550 Park Parent Company 1 (1,245) (904) (2,149) 323 (1,397)
Slide 16: The Park National Bank Income Statement
16 Source: Company Filings The Park National Bank Income Statement (In thousands) Q2 2014 Q1 2014 Six months YTD 2014 Six months YTD 2013 2013 2012 Net interest income $ 55,290 $ 53,099 $ 108,389 $ 104,471 $ 210,781 $ 221,758 Provision for (recovery of) loan losses 1,683 (140) 1,543 5,252 14,039 16,
Slide 17: Park National Bank Statement of Condition
Park National Bank Statement of Condition 17 Source: Company Filings (In thousands) June 30, 2014 December 31, 2013 June 30, 2013 % change from 12/31/13 % change from 6/30/13 Loans $ 4,679,944 $ 4,559,406 $ 4,441,617 2.64% 5.37% Allowance for loan losses 55,451 56,888 52,694 (2.53)% 5.23% Net loans
Slide 18: Park National Bank Loans by Type
18 Park National Bank Loans by Type Source: Company Filings as of June 30, 2014 • 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 d
Slide 19: Nonperforming Loans by Type
19 Park National Corporation Nonperforming Loans by Type At June 30, 2014 Source: Company Filings as of June 30, 2014 PNB Guardian SEPH LLC PRK Amount Percentage Amount Percentage Amount Percentage Amount Percentage Commercial Real Estate Owner Occupied $ 18,515 16.76% $ - 0.00% $ 3,937 13.23% $ 22,
Slide 20: Park National Corporation Nonperforming Assets
20 Park National Corporation Nonperforming assets 1 The carrying balance of impaired loans as a percentage of unpaid principal balance at June 30, 2014 was 58.1% and 51.6% for Park National Corporation and SEPH, respectively. Source: BHC Performance Report and Company Filings 2 At June 30, 2014, Vis
Slide 21: PNB and Guardian Nonperforming Assets and Peer Group Information
21 Source: BHC Performance Report and Company Filings (in thousands) June 30, 2014 Dec. 31, 2013 Dec. 31, 2012 Non-accrual loans $ 89,231 $ 99,108 $ 100,244 Renegotiated loans 17,417 18,747 29,800 Loans past due 90 days or more (still accruing) 6,493 1,677 2,970 Total nonperforming loans $ 113,141 $
Slide 22: Park National Bank Commercial Loan Portfolio Trends
Park National Bank Commercial Loan Portfolio Trends 22 1 Commercial loans include: (1) Commercial, financial and agricultural loans, (2) Commercial real estate loans, (3) Commercial related loans in the construction real estate portfolio and (4) Commercial related loans in the residential real estat
Slide 23: PRK comparison to peers
23 PRK comparison to peers 1 Calculated for the six months ended June 30, 2014. 2 Annualized based on dividends and stock price through June 30, 2014. 3 Due to unavailability of 2Q 2014 peer median financial metrics, data utilized herein reflects 1Q 2014 peer results. Source: Company Filings and SNL
Slide 24: A Successful History of Disciplined Strategic Growth in Ohio
A Successful History of Disciplined Strategic Growth in Ohio (11 acquisitions; 2 De Novos) 24 1908 1908 The Park National Bank is established 1985 1985 Acquisition of Fairfield National Bank 1987 1987 Park National Corporation holding company is established Acquisition of Richland Trust Comp
Slide 25: M&A Opportunities
M&A Opportunities PRK successfully completed 11 Ohio- based financial institution mergers from 1985 through 2006. Each bank operates within PRK in an autonomous fashion; each bank retains its local community bank identity, leadership team, and advisory board of directors. Future Merger Objective
Slide 26: Community Bank Investor Conference
26 July 29 – 30, 2014 Community Bank Investor Conference
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