Park National Corporation · AMEX:PRK
Park National — Global Financial Services Investor Conference (Deutsche Bank Securities) (June 2011)
38 slides from Park National's conference presentation, Jun 8, 2011
Slide 1: Global Financial Services Investor Conference
NATIONAL CORPORATION Global Financial Services Investor Conference Deutsche Bank Securities June 8, 2011
Slide 2: Forward-looking Statements
Forward-looking Statements pate expect ro pan, “beleve”
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
PRK Overview Company Profile 7.3 billion in Newark, Ohi 148 financial : + The Park National Bank (11 bank divisions in Ohio and Kentucky) + Vision Bank (2 bank divisions in Florida and Alabama) Established in 1908, Our unig local, id with the resources, security and expertise of a major bank = oO in
Slide 5: Our Mission
Our Mission = Acting at all times with i for i our community and our asso: = Provic ial prodi ices of such hig} as unique; - it bank: i in order to protect our depositors and shareholders. - lly, rapidly, honestly and soundly PARK
Slide 6: Company Overview
Company Overview March 31, 2011 Headquarters: Newark, OH = Assets: $73billon = Loans: S48bilion = Deposits: $53 bilion = ICEquiy: $570 milion = TARP: $100 milion = Market Cap: $1,029milion 148 financial service offices between two bank subsidiaries across 4 states Park National Bank ‘bank vont nhl s
Slide 7: A Successful History of Disciplined Strategic Growth
A Successful History of Disciplined Strategic Growth in Ohio (11 acquisitions; 2 De Novos)
Slide 8: Vision Bancshares, Inc. Acquisition
Vision Bancshares, Inc. Acquisition Vision On March 9, 2007, Bancshares, Inc. 792,937 shares of | $83.3 million or $105.00 per share. st income at Vision Bank ‘©Since the time of. (in thousands) Net Income 2010 S (29,297) 2009 (30,110) 2008 * (81,187) 2007 * (60,681) tude goodwill mpaitment charges
Slide 9: History of the Corporation
Park National Corporation History of the Corporation (in thousands) Total Assets Loans Deposits Netincome 2010 $s 7298377 S$ 4732685 $ 51095,420 $7427 Percent of Total Assets 643% 693% 1.0286 2005 5.436048 3,328,112 3,757,757 95,238 Percent of Total Assets 612% 69.1% 17586 2000 3,211,068 2,278,186 2
Slide 10: Leadership Team: Park Executive Management
Il. Leadership Team Park Executive Management (Corporation On Park. : division of Ci from 1985 through 1991. ia ‘graduation. Me a in David L. Trautman - President - Age: 50 Ohio. from May 1997 through Jar it i Me. ith The University Me. ub, i Trustee of
Slide 11: Park Executive Management (continued)
Park Executive Management (continued) f Financial Officer - Age: 56 1991 to 1998, of 19800 Mi 1977. Healso recelved the Pacesetter Award from the College of Business. ‘© Brady T. Burt - Chief Accounting Officer - Age: 39 Chief Accounting Officer of Park since April 2007. Mi Mi 1994, PARK
Slide 12: Experienced Leadership Team
Experienced Leadership Team . 23 years at 20 years In Industry Name Position .Daniel DeLawder Chairman & CEO 6 40 40 David L. Trautman President 50 a a John W. Kozak Chief Financial Officer 56 3 3
Slide 13: Leadership Team - continued
Leadership Team - continued Brady T. Burt ‘Thomas J. Button ‘Thomas M. Cummiskey Lynn B. Fawcett Robert N. Kent Timothy. Lehman Laura. Lewis ‘Matthew R. Miller Chery Snyder Paul. Turner Jeffrey A. Wilson William Wilson VP -Chief Accounting Officer SVP-Chief Credit officer svP—Teust SVP Operations Pr
Slide 14: Affiliate Leadership
PARK Affiliate Leadership Name John A. Brown James A.Care ‘Wiliam €. Fralick Joey W.Ginn David J.Gooch James . Lingenfelter ‘Thomas M.Lyall Patrick. Nash EadlW. Osborne Vickie A. Sant Donald R Stone John €.Swallow Stephen G.Wells Gordon. Yance ears Years vith In Position 9 PRI/Affiliate Industry Pre
Slide 15: Park National Bank
Park National Bank The Bank of Choice Headquarter Counties of Operation Year joined Bank Division Name Park ParkNational, 1908 Falrfelé National 1985 Richland Bonk 1987 Century National 1990 First Knox National 1997 Second National 2000 Security National 2001 Seven largest OH divisions (ther OH divi
Slide 16: Customer Proposition
Customer Proposition Leads to Core Profitability Unique local branding strategy makes PRK the regional bank of choice . i it © Historic unparalleled profitability continues * Favorable pricing ROAA% Yield on Earning Assets % 0.70 +41 bps 514 4.64 +50bps Net interest Margin % ROAE% Cost of Funds % 42
Slide 17: Park Net Interest Margin History
Park Net Interest Margin History PRK Net Interest Peer Net PRK Advantage Wvg.2 YR Avg. 10 YR Margin Interest Margin Over Peers Treasury Rate Treasury Rate 192011 ane 3.78% 043% 069% 346% 2010 426% 3.70% 0.6% 070% 321% 2009 427% 357% 0.65% 0.96% 326% 2008 416% 3.59% 057% 200% 367% 2007 420% 373% 047%
Slide 18: Park Earnings History
Park Earnings History tuted os ra201 12 2009 am 2008 aor 2007 sao 2005 oon 2003 sor 2002 586 2001 so 2000 ase 17s 07s cry Tangible Common Book Value Pershore 29% ‘Suc: Company Figs uted EPS or 2008 and 2007 was $097 and 5.60, respctvey.
Slide 19: Selected Financial Data: ROA and ROE History
Ill. Selected Financial Data Results Count - ROA and ROE History Park ROA 10: nme’ 10% 2009 oom 2008 ome 2007 ae! 2006 179% 2008 190% 2001 190% ParkROA, P: excluding Pecrmedian | ParkROE excluding Vision _| Peer median Vision ROA * ” ROE 9% 70% nan na osm 1st 10% nai 2090% asi 132% ons aan 799% 945%
Slide 20: Increase / (decrease) in loans
PARK Increase / (decrease) in loa 500,000 400,000 cam 300,000 200,000 100,000 ° 2003 2004 2008 2006 2007 2008 2008 2010 Mar. 3, (100,000) we (200,000) J +s8,082 351,038) ovr: at
Slide 21: Park National Corporation Income Statement
Park National Corporation Income Statement months ended Year ended Year ended (inthousands) arch 31,2017 Dec, 31,2010 Dec. 31,2009 Netinterestincome $ 69313 $ 274088 $2391 Provision forloan losses 13500 4902 63821 Netinterestincome after provision 55813 209,142 204670 Noninterest income Bin 65622 73
Slide 22: Vision Bank Income Statement
Vision Bank Income Statement ‘Three months ended Yearended Year ended {in thousands) ‘March 31, 2011 Net interest income S655 S 27867 $25,634 Provision for loan losses 8,000 39229 44430 Net interest income after provision (1.245) (11,362) (18,796) Non interest income (177) (3407) (2,047) Gain on sal
Slide 23: Park National Corporation, excluding Vision
Park National Corporation, excluding Visio: Income Statement Prior to our acquisition of Vision Bank in 2007, Park had a history of being a top performing bank holding company. Tiree months ended Yearended Year ended (inthousands) ec.31,2010 Dec. 31, 2009 Net interest income $ 62558 $246,177 $ 2a79s
Slide 24: Forecasted Income Statement
Park National Corporation Forecasted Income Statement Dec. 31, 207 Dec.31, 2010 {inthousands) forecasted) * (actual) Net interest income $273,000 $s 274088 Provision for loan losses 52,000 64902 Net interest income after provision 221,000 209,142 Noninterest income 62,000 65,632 Gain on sale of secu
Slide 25: Balance Sheet
Park National Corporation Balance Sheet (inmilions) March31,2011__ee.31,2010 ec. 31,2009 Investment secures $s 2046 $2040 $186 eons 4751 4733 40 Aowancaforlosn losves aan aan am Otherassets es 6 63 Total assets 5738 57288 7040 Non-interest bearing deposits 5955 soe se” Interest bearing deposits 4360
Slide 26: Earning Assets Composition
Earning Assets Composition ‘© Commercial lending focus on small, closely held businesses within our market Average Earning Assets by Type QTD through March 31, 2011 * Consumer mortgage and home equity portfolios, are originated by Park within our ftp fe been consistently underwritten for decades Per
Slide 27: Investment Portfolio
Investment Portfolio ‘¢ As of March 31, 2011 the fair value 99 billion $1.36 billion available-for-sale = $0.63 billion held-to-maturity Investment Portfolio Composition Conservative Portfolio Equity Securties Agency + Net unrealized gain position of $247 milion as of 04% on ‘March 31, 201 Municipal
Slide 28: Loans by Type
Loans by Type Park National Corporation {inthousands) ‘March 31, 2011 Dec. 31, 2010 Dec. 31, 2009 ‘Commercial and industrial $727,993 $737,902 8751277 Realestate construction ‘Commercial land & development 314,765 328,495 406,753 1-4 family construction 74568 77985 88,765 Total realestate constructi
Slide 29: Allowance for loan and lease losses
PRK - Allowance for loan and lease losses (ALLL) and new nonaccrual loans {in thousands) March 31, 2011 Dec. 31, 2010 Dec.31, 2009 Total ALLL 3126859 3121397 sn67i7 Specific Reserves 47,287 43,459 36721 General Reserves 379572 577.938 379,996 Total loans 34750975, 34732685, $4,640,432 Impaired comme
Slide 30: Nonperforming Assets
Park National Corporation Nonperforming Assets March31, (thousands) Born _bec31,2010__bec.31,2009__bec.31,2008 Nonaccaoans samans saeeze saaste sisasn2 fenegotte toons 20 : 12 ats Loans past du 90 ys or mare accng) 2am 2390 wn sax Total nonprforming tans ‘2307 858 s8as9 si6n778 other alee owned am s
Slide 31: Nonperforming Assets (Vision)
Nonperforming Assets a rch 31, on 5163343 Percentage of nonperforming loans to loans (Vision) Percentage of onperforming assets to assets (Vision) 51683483 107.71% March 31, 2011 Percentage of nonperforming loans to loans (PRK Peer Percentage of nonperforming assets to assets (PRK Peer Group) ‘Sourc
Slide 32: Nonperforming Assets, excluding Vision
Park National Corporation, excluding Nonperforming Assets Ainthousands) March 31,201 12010 "Nonaceral loans snsa7e sni7ais 368,305" Renegotiated fans 260 Loans past due 90 days or more (stil accruing) 2228 3226 am Total nonperforming loans sii7964 sitet 373082 ther rea estate owned Park National Ban
Slide 33: Historical Review of Vision Bank Land & Development Loans
Historical Review of Vi Commercial Land & Development Loans ion Bank March 31, Dec, 31, {inthousands) 2011 2010 L&D loans, period end $161,140 170989 Performing CL&D loans, period end 84498 Impaired CL&D loans, period end. 82,060 86491 ‘Specificreserves on impaired CL&D loans 25583 23,585 Net of spe
Slide 34: Capital Ratios - March 31, 2011
Capital Ratios - March 31, 2011 Ther Risk isk (Sin thousands) ased Capital Capital Park National Corporation 950% 13.60% 16.07% Park National Bank 6.459% ase 11.38% Vision Bank 14.42% 19.44% 2078% ‘Minimum capital ratio 4.00% 400% 8.00% 5.009% 6.00% 10.00% TARP capital 100,000 $100,000 $100,000 PRK,
Slide 35: Capital Raising Activities
Capital Raising Activities 29.2009 183,200common shares net proceeds of $105 milion 30.2009 105,072.common shares net proceeds of $62 million 40.2009 500,000 common shares net proceeds o $29.8 milion 49.2009 292010 324, 3 millon 392010 i 492010 1 milion 49.2010 71,984 common shares: net proceeds of
Slide 36: Tangible Common Equity
Tangible Common Equity PARK TCE Ratio Shares outstanding 192011 785%° 15398923 2010 790%" 15396934 2009 775%" 14882780 2008 561% 13971727 2007 685% 13968576 2006 9.13% 13921529 2005 9.12% 14 092,626 2008 9.71% 14320227 2003 1056% 14 485,027 2002 113% 14481.564 2001 983% 146372841 2000 10.09% 1493095
Slide 37: Why invest in Park National Corporation?
PARK IV. Why invest in Park Na‘ nal Corporation? U i choice for customers. Stable, low cost i it ior lending rat to outstanding profitability. i markets, largely caused by industry dislocation. V ged, with al building shareholder value.
Slide 38: Appendix: Profiles of PRK Affiliate Banks
NATIONAL CORPORATION Appendix: Profiles of PRK Affiliate Banks Please visit www.parknationalcorp.com for a profile of the PRK affiliate banks.