Park National Corporation · AMEX:PRK
Park National — Keefe, Bruyette & Woods Community Bank Investor Conference 2015
28 slides from Park National's conference presentation, Jul 27, 2015
Slide 1: KBW Community Bank Investor Conference, July 28-29, 2015
1 July 28 - 29, 2015 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, 2015) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 29 Ohio counties • 116 bank branches • 6 specialty finance offices • 1,828 FTEs
Slide 4: Park Executive Management
Park Executive Management David L. Trautman – President and CEO– Age: 54 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: 43 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 54 32 32 C. Daniel DeLawder Chairman 65 44 44 Brady T. Burt Chief Financial Officer 43 8 14 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 47 2 16 Thomas J. Button SVP – Chief Credit Officer 55 18 29 Thomas M. Cummiskey SVP – Trust 45 15 17 Robert N. Kent, Jr. President – Scope Aircraft Finance 57 12 32 T
Slide 8: Affiliate Leadership
8 Affiliate Leadership Name Position Age Years with PRK/Affiliate Years In Industry John A. Brown President – Richland Bank 46 24 24 Brett A. Baumeister President – Unity National Bank 49 11 25 William C. Fralick President – Security National Bank 60 39 39 David J. Gooch President – Park National Ba
Slide 9: Highlights of the First Six Months of 2015
9 Highlights of the First Six Months of 2015 • Loan growth of $73 million in 2Q 2015 (6.15% annualized) and $79 million year-to-date (3.31% annualized) at Park’s Ohio subsidiary, The Park National Bank. • Credit quality remains strong: Park National Corporation experienced annualized net charge-offs
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 The total return stock performance graph depicts the yearly percentage change in Park’s cumulative total shareholder return over the latest 5-year fiscal periods. Calculations include the reinvestment of dividends and are indexed to the base year
Slide 12: The Park National Bank – The bank of choice
12 The Park National Bank – The bank of choice Source: FDIC, June 30, 2014 Headquarter Counties – Deposits (in thousands) Bank Division Year Joined Park Hdqtr. Co. Deposits as of 6/30/14 Total County Deposits as of 6/30/14 % of 2014 Market Share % of 2013 Market Share 2014 Headquarter County Market
Slide 13: Park National Corporation – Income Statement
13 Park National Corporation – Income Statement Source: Company Filings Note: Prior period results were updated to reflect the January 1, 2015 adoption of Accounting Standards Update (ASU) 2014-01, Accounting for Investments in Qualified Affordable Housing Projects. The adoption of this ASU required
Slide 14: Park National Corporation Statement of Condition
PARK NATIONAL CORPORATION Statement of Condition 14Source: Company Filings (in millions) June 30, 2015 Dec. 31, 2014 Dec. 31, 2013 Investment securities $ 1,550 $ 1,501 $ 1,424 Loans 4,901 4,830 4,621 Allowance for loan losses (57) (54) (59) Other assets 916 724 650 Total assets $ 7,310 $ 7,001 $ 6,
Slide 15: Quarterly Net Income by Operating Segment
Quarterly Net Income by Operating Segment 15Source: Company Filings (In thousands) Q2 2015 Q1 2015 Six months YTD 2015 Six months YTD 2014 2014 2013 PNB $ 21,333 $ 19,159 $ 40,492 $ 41,737 $ 82,907 $ 75,236 GFSC 407 281 688 1,082 1,175 2,888 Park Parent Company 1 (275) (694) (969) (2,149) (5,050) (1
Slide 16: The Park National Bank Income Statement
16Source: Company Filings The Park National Bank Income Statement (In thousands) Q2 2015 Q1 2015 Six months YTD 2015 Six months YTD 2014 2014 2013 Net interest income $ 54,766 $ 53,821 $ 108,587 $ 108,389 $ 218,641 $ 210,781 Provision for (recovery of) loan losses 2,720 2,022 4,742 1,543 3,517 14,03
Slide 17: Park National Bank Statement of Condition
Park National Bank Statement of Condition 17Source: Company Filings (In thousands) June 30, 2015 December 31, 2014 June 30, 2014 % change from 12/31/14 % change from 6/30/14 Loans $ 4,860,342 $ 4,781,761 $ 4,679,944 1.64% 3.85% Allowance for loan losses 55,242 52,000 55,451 6.23% (0.38%) Net loans 4
Slide 18: Park National Bank Loans by Type
18 Park National Bank Loans by Type Source: Company Filings as of June 30, 2015 • 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: Park National Bank Nonperforming Loans by Type
19 Park National Bank Nonperforming Loans by Type At June 30, 2015 (in thousands) Commercial Real Estate - Owner Occupied 10% Commercial Real Estate Non-Owner Occupied 6% Residential Real Estate 51% Construction Real Estate 7% Commercial & Industrial 20% Consumer 4% Farmland 2% Total Nonperforming L
Slide 20: SEPH Nonperforming Loans by Type
20 SEPH Nonperforming Loans by Type At June 30, 2015 (in thousands) Residential Real Estate 78% Construction Real Estate 13% Commercial & Industrial 9% Total Nonperforming Loans = $15,366
Slide 21: Park National Corporation Nonperforming Assets
21 Park National Corporation Nonperforming assets 1 The carrying balance of impaired loans as a percentage of unpaid principal balance at June 30, 2015 was 63.4% and 42.6% for Park National Corporation and SEPH, respectively. Source: BHC Performance Report and Company Filings 2 At June 30, 2015, Vis
Slide 22: Nonperforming Assets – Park National Bank and Guardian
22Source: BHC Performance Report and Company Filings (in thousands) June 30, 2015 Dec. 31, 2014 Dec. 31, 2013 Non-accrual loans $ 80,470 $ 77,477 $ 99,108 Renegotiated loans 16,423 16,157 18,747 Loans past due 90 days or more (still accruing) 1,536 2,641 1,677 Total nonperforming loans $ 98,429 $ 96
Slide 23: Park National Bank Commercial Loan Portfolio Trends
Park National Bank Commercial Loan Portfolio Trends 23 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 24: PRK comparison to peers
24 PRK comparison to peers 1 Calculated for the six months ended June 30, 2015. 2 Annualized based on dividends and stock price through June 30, 2015. 3 Due to unavailability of 2Q 2015 peer median financial metrics, data utilized herein reflects 1Q 2015 peer results. Source: Company Filings and SNL
Slide 25: A Successful History of Disciplined Strategic Growth in Ohio
A Successful History of Disciplined Strategic Growth in Ohio (11 acquisitions; 2 De Novos) 25 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 26: PRK M&A Strategy
26 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 / Mid-Atlantic states • Open de no
Slide 27: 2015 PRK Agenda
2015 PRK Agenda A. Consolidated Net Income => $85 million B. Maintain common dividend at historic rate C. Perform in upper quintile of $3-$10 billion bank holding company peer group D. Reduce SEPH troubled assets to $20 million by 12/31/2015 E. Maintain or improve all regulatory ratings F. Maintain
Slide 28: Community Bank Investor Conference
28 July 28 – 29, 2015 Community Bank Investor Conference
Park National — Keefe, Bruyette & Woods Community Bank Investor Conference 2015 on 6ix