Park National Corporation · AMEX:PRK
Park National — Sandler O'Neill East Coast Financial Services Conference 2015
28 slides from Park National's conference presentation, Nov 10, 2015
Slide 1: Sandler O'Neill East Coast Financial Services Conference
November 10-11, 2015 Sandler O’Neill East Coast Financial Services Conference 1
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
Park National Corporation (PRK) Profile (as of September 30, 2015) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 30 Ohio counties • 117 bank branches • 6 specialty finance offices • 1,804 FTEs 3
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
Experienced Leadership Team Name Position Age Years with PRK Years In Industry David L. Trautman President & CEO 54 32 32 C. Daniel DeLawder Chairman 66 44 44 Brady T. Burt Chief Financial Officer 43 8 14 Senior leadership consists of executives with proven local market experience Leadership tea
Slide 7: Leadership Team – continued
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 46 16 18 Robert N. Kent, Jr. President – Scope Aircraft Finance 58 12 32 Tim
Slide 8: Affiliate Leadership
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 61 39 39 David J. Gooch President – Park National Bank
Slide 9: Highlights of the First Nine Months of 2015
Highlights of the First Nine Months of 2015 • Loan growth of $100 million in 3Q 2015 (8.2% annualized) and $179 million year-to-date (5.0% 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
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 Adjusted
Slide 11: Total Return Performance Park National Corporation
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’s
Slide 12: The Park National Bank – The bank of choice
The Park National Bank – The bank of choice Source: SNL, June 30, 2015 Headquarter Counties – Deposits (in thousands) Bank Division Year Joined Park Hdqtr. Co. Deposits Total County Deposits % of 2015 Market Share % of 2014 Market Share 2015 Headquarter County Market Share Rank 2014 Headquarter Coun
Slide 13: Park National Corporation – Income Statement
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 re
Slide 14: Park National Corporation Statement of Condition
PARK NATIONAL CORPORATION Statement of Condition Source: Company Filings (in millions) September 30, 2015 Dec. 31, 2014 Dec. 31, 2013 Investment securities $ 1,469 $ 1,501 $ 1,424 Loans 5,000 4,830 4,621 Allowance for loan losses (58) (54) (59) Other assets 889 724 650 Total assets $ 7,300 $ 7,001 $
Slide 15: Quarterly Net Income by Operating Segment
Quarterly Net Income by Operating Segment Source: Company Filings (In thousands) Q3 2015 Q2 2015 Q1 2015 Nine months YTD 2015 Nine months YTD 2014 2014 2013 PNB $ 20,707 $ 21,333 $ 19,159 $ 61,199 $ 60,940 $ 82,907 $ 75,236 GFSC 394 407 281 1,082 1,498 1,175 2,888 Park Parent Company 1 (685) (275) (
Slide 16: The Park National Bank Income Statement
Source: Company Filings The Park National Bank Income Statement (In thousands) Q3 2015 Q2 2015 Q1 2015 Nine months YTD 2015 Nine months YTD 2014 2014 2013 Net interest income $ 55,972 $ 54,766 $ 53,821 $ 164,559 $ 163,789 $ 218,641 $ 210,781 Provision for (recovery of) loan losses 2,587 2,720 2,022
Slide 17: Park National Bank Statement of Condition
Park National Bank Statement of Condition Source: Company Filings (In thousands) September 30, 2015 December 31, 2014 September 30, 2014 % change from 12/31/14 % change from 9/30/14 Loans $ 4,960,654 $ 4,781,761 $ 4,744,250 3.74% 4.56% Allowance for loan losses 56,403 52,000 55,225 8.47% 2.13% Net l
Slide 18: Park National Bank Loans by Type
Park National Bank Loans by Type Source: Company Filings as of September 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
Slide 19: Park National Bank Nonperforming Loans by Type
Park National Bank Nonperforming Loans by Type At September 30, 2015 (in thousands) Commercial Real Estate - Owner Occupied 12% Commercial Real Estate Non-Owner Occupied 6% Residential Real Estate 52% Construction Real Estate 7% Commercial & Industrial 19% Consumer 3% Farmland 1% Total Nonperforming
Slide 20: SEPH Nonperforming Loans by Type
SEPH Nonperforming Loans by Type At September 30, 2015 (in thousands) Residential Real Estate 77% Construction Real Estate 15% Commercial & Industrial 8% Total Nonperforming Loans = $14,703 20
Slide 21: Park National Corporation Nonperforming assets
Park National Corporation Nonperforming assets 1 The carrying balance of impaired loans as a percentage of unpaid principal balance at September 30, 2015 was 64.0% and 41.6% for Park National Corporation and SEPH, respectively. 2 At September 30, 2015, Vision/SEPH participations included in Park Nat
Slide 22: Nonperforming assets (PNB and Guardian)
Source: BHC Performance Report and Company Filings (in thousands) September 30, 2015 Dec. 31, 2014 Dec. 31, 2013 Non-accrual loans $ 76,387 $ 77,477 $ 99,108 Renegotiated loans 17,036 16,157 18,747 Loans past due 90 days or more (still accruing) 1,512 2,641 1,677 Total nonperforming loans $ 94,935 $
Slide 23: Park National Bank Commercial Loan Portfolio Trends
Park National Bank Commercial Loan Portfolio Trends 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 estate p
Slide 24: PRK comparison to peers
PRK comparison to peers 1 Calculated for the nine months ended September 30, 2015. 2 Annualized based on dividends and stock price through September 30, 2015. 3 Due to unavailability of 3Q 2015 peer median financial metrics, data utilized herein reflects 2Q 2015 peer results. Source: Company Filings
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) 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 Company
Slide 26: 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 / Mid-Atlantic states • Open de novo
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: Sandler O'Neill East Coast Financial Services Conference
November 10-11, 2015 Sandler O’Neill East Coast Financial Services Conference 28
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