Park National Corporation · AMEX:PRK
Park National — Sandler O'Neill East Coast Financial Services Conference 2016
27 slides from Park National's conference presentation, Nov 16, 2016
Slide 1: Sandler O'Neill East Coast Financial Services Conference
November 16-17, 2016 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, 2016) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 29 Ohio counties • 110 bank branches • 6 specialty finance offices • 1,732 FTEs 3
Slide 4: Park Executive Management
Park Executive Management David L. Trautman – President and CEO– Age: 55 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: 44 Chief Financial Officer of Park since 2012. Formerly served as the Chief Accounting Officer with Park from April 2007 to December 2012. Prior to joining Park, Mr. Burt served Vail Banks, Inc. in various capacit
Slide 6: Experienced Leadership Team
Experienced Leadership Team Name Position Age Years with PRK Years In Industry David L. Trautman President & CEO 55 33 33 C. Daniel DeLawder Chairman 67 45 45 Brady T. Burt Chief Financial Officer 44 9 15 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 48 3 17 Thomas J. Button SVP – Chief Credit Officer 56 19 30 Thomas M. Cummiskey SVP – Trust 47 17 19 Robert N. Kent, Jr. President – Scope Aircraft Finance 59 13 33 Tim
Slide 8: Affiliate Leadership
Affiliate Leadership Name Position Age Years with PRK/Affiliate Years In Industry Brett A. Baumeister President – Unity National Bank 50 12 26 John A. Brown President – Security National Bank 47 25 25 David J. Gooch President – Park National Bank of Southwest Ohio & Northern Kentucky 47 19 25 Chris
Slide 9: Highlights of the First Nine Months of 2016
Highlights of the First Nine Months of 2016 • Loan growth of $60.5 million in 3Q 2016 (4.7% annualized) and $119.4 million year-to-date (3.2% annualized) at Park’s Ohio subsidiary, The Park National Bank. • Credit quality remains strong: Park National Corporation experienced annualized net recoverie
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 performance graph depicts the yearly change in Park’s cumulative total shareholder return over the five-year period from December 31, 2010 to December 31, 2015. Calculations include the reinvestment of dividends and are indexed to t
Slide 12: The Park National Bank – The bank of choice
The Park National Bank – The bank of choice Source: SNL, June 30, 2016 Headquarter Counties – Deposits (in thousands) 12 Bank Division Year Joined Park Hdqtr. Co. Deposits Total County Deposits % of 2016 Market Share % of 2015 Market Share 2016 Headquarter County Market Share Rank 2015 Headquarter C
Slide 13: Park National Corporation – Income Statement
Park National Corporation – Income Statement Source: Company Filings (in thousands) Q3 2016 Q2 2016 Q1 2016 Nine months YTD 2016 Nine months YTD 2015 2015 2014 Net interest income $ 58,533 $ 57,485 $ 59,819 $ 175,837 $ 169,765 $ 227,632 $ 225,044 (Recovery of) provision for loan losses (7,366) 2,637
Slide 14: Park National Corporation Statement of Condition
PARK NATIONAL CORPORATION Statement of Condition Source: Company Filings (in millions) Sept. 30, 2016 Dec. 31, 2015 Dec. 31, 2014 Investment securities $ 1,478 $ 1,644 $ 1,501 Loans 5,187 5,068 4,830 Allowance for loan losses (54) (56) (54) Other assets 753 655 724 Total assets $ 7,364 $ 7,311 $ 7,0
Slide 15: Quarterly Net Income by Operating Segment
Quarterly Net Income by Operating Segment Source: Company Filings (In thousands) Q3 2016 Q2 2016 Q1 2016 Nine months YTD 2016 Nine months YTD 2015 2015 2014 PNB $25,491 $21,078 $21,744 $68,313 $61,199 $84,345 $82,907 GFSC 640 626 (1,836) (570) 1,082 1,423 1,175 Park Parent Company 1 (665) (1,069) (1
Slide 16: The Park National Bank Income Statement
Source: Company Filings The Park National Bank Income Statement (In thousands) Q3 2016 Q2 2016 Q1 2016 Nine months YTD 2016 Nine months YTD 2015 2015 2014 Net interest income $ 57,033 $ 56,006 $ 57,155 $ 170,194 $ 164,559 $ 220,879 $ 218,641 (Recovery of) provision for loan losses (3,345) 1,362 1,53
Slide 17: Park National Bank Statement of Condition
Park National Bank Statement of Condition Source: Company Filings (In thousands) September 30, 2016 December 31, 2015 September 30, 2015 % change from 12/31/15 % change from 9/30/15 Loans $ 5,148,482 $ 5,029,072 $ 4,960,654 2.37% 3.79% Allowance for loan losses 51,573 54,453 56,403 (5.29%) (8.56%) N
Slide 18: Park National Bank Loans by Type
Park National Bank Loans by Type Source: Company Filings as of September 30, 2016 • 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 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, 2016 was 73.6% and 53.2% for Park National Corporation and SEPH, respectively. 2 At September 30, 2016, Vision/SEPH participations included in Park Nat
Slide 20: PNB and Guardian Nonperforming Assets and Peer Group Information
Source: BHC Performance Report and Company Filings (in thousands) Sept. 30, 2016 Dec. 31, 2015 Dec. 31, 2014 Non-accrual loans $ 84,045 $ 81,468 $ 77,477 Renegotiated loans 17,350 24,979 16,157 Loans past due 90 days or more (still accruing) 1,682 1,921 2,641 Total nonperforming loans $ 103,077 $ 10
Slide 21: PNB & GFC Nonperforming Loans Supplemental Information
PNB & GFC Nonperforming Loans Supplemental Information 21 7 Year Average NCOs as a % of Average Loans (as of 6/30/16) Loan Category PNB, including Guardian Peer Group Average Peer Group Median Commercial, financial & agricultural 0.52% 0.58% 0.47% Commercial real estate 0.17% 0.42% 0.34% Consumer 0.
Slide 22: 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 23: PRK comparison to peers
PRK comparison to peers 1 Calculated for the nine months ended September 30, 2016. 2 Annualized based on dividends and stock price through September 30, 2016. 3 Due to unavailability of 3Q 2016 peer median financial metrics, data utilized herein reflects 2Q 2016 peer results. Source: Company Filings
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) 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 25: 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 / Southeast / Mid-Atlantic states • O
Slide 26: 2016 PRK Agenda
2016 PRK Agenda 26 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 NPA’s to peer levels E. At least maintain => 85% of key risk indicators in green/yellow condition F. Cult
Slide 27: Sandler O'Neill East Coast Financial Services Conference
November 16-17, 2016 Sandler O’Neill East Coast Financial Services Conference 27
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