Park National Corporation · AMEX:PRK
Park National — Sandler O'Neill East Coast Financial Services Conference 2019
22 slides from Park National's conference presentation, Nov 13, 2019
Slide 1: Sandler O'Neill East Coast Financial Services Conference
Sandler O’Neill East Coast Financial Services Conference November 13-14, 2019 1
Slide 2: Forward-looking Statement Disclosure
Forward-looking Statement Disclosure Certain statements contained in this communication which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not alw
Slide 3: Park National Corporation (PRK) Profile
Park National Corporation (PRK) Profile (as of September 30, 2019) • 12 Community Bank Divisions • 2 Specialty Finance Companies • 38 counties • 8 financial service centers • One non-bank workout subsidiary • 117 bank branches • 1,936 FTEs 3
Slide 4: Leadership Team: Park Senior Management
Leadership Team Park Senior Management • David L. Trautman – Chairman and CEO – Age: 58 Chairman of the Board, CEO and Board Member of The Park National Bank and Park National Corporation (Park) headquartered in Newark, Ohio. He served as President of The Park National Bank from 2005 to 2019. He ser
Slide 5: Senior Management (continued)
Park Senior Management (continued) • Matthew R. Miller – President – Age: 41 President of Park and The Park National Bank since May 2019. Formerly served as the Executive Vice President of The Park National Bank and Park from April 2017 to April 2019, the Chief Accounting Officer of Park and The Par
Slide 6: Experienced Leadership Team
Experienced Leadership Team • Senior leadership consists of executives with proven local market experience • Leadership team averages 29 years of banking experience • Average management tenure with Park National is approximately 21 years Years Years with In Name Position Age PRK Industry Chairman of
Slide 7: Leadership Team – continued
Leadership Team – continued Years Years with In Name Position Age PRK Industry Todd Bogdan SVP – Chief Technology Officer 51 3 31 Adrienne M. Brokaw SVP – Director of Internal Audit 51 6 20 Thomas J. Button SVP – Chief Credit Officer 59 22 33 Thomas M. Cummiskey SVP – Trust 50 20 22 Kelly E. Herrema
Slide 8: Affiliate Leadership
Affiliate Leadership Years Years with In Name Position Age PRK/Affiliate Industry Robert E. Boss President – First-Knox National Bank 63 12 41 John A. Brown President – Security National Bank 50 28 28 President – Park National Bank of David J. Gooch 50 22 28 Southwest Ohio & Northern Kentucky Chris
Slide 9: Highlights of the First Nine Months of 2019
Highlights of the First Nine Months of 2019 •Average interest earning assets for the first nine months of 2019 increased by $693 million, or 9.9%, to $7,681 million, compared to $6,988 million for the first nine months of 2018. The average yield on interest earning assets increased by 31 basis point
Slide 10: ROA and ROE History
ROA and ROE History PRK and PRK, excluding Vision Bank & SE Property Holdings, LLC (SEPH) Park ROAA, Peer Park ROAE, Peer Park excluding VB median excluding VB & median ROAA & SEPH ROAA Park ROAE 1 SEPH 2 ROAE 3Q 2019 YTD (annualized) 1.25% 1.27% 1.18%3 11.61% 11.84% 10.01%3 2018 1.45% 1.39% 1.25% 1
Slide 11: The Bank of Choice: Headquarter Counties Deposits
The Park National Bank – The bank of choice Headquarter Counties – Deposits (in thousands) 2019 2018 Headquarter Headquarter County County Year Joined Hdqtr. Co. Total County % of 2019 % of 2018 Market Share Market Share Bank Division Park Deposits Deposits Market Share Market Share Rank Rank Park N
Slide 12: Consolidated Statements of Income
Park National Corporation Consolidated Statements of Income Nine Nine months months (In thousands) Q3 2019 Q2 2019 Q1 2019 YTD 2019 YTD 2018 2018 2017 Net interest income $ 77,101 $ 75,851 $ 67,776 $ 220,728 $ 197,268 $ 266,898 $ 243,759 Provision for loan losses 1,967 1,919 2,498 6,384 4,586 7,945
Slide 13: Consolidated Balance Sheets
Park National Corporation Consolidated Balance Sheets (In millions) Sep. 30, 2019 Dec. 31, 2018 Dec. 31, 2017 Cash & cash equivalents $ 373 $ 167 $ 169 Investment securities 1,329 1,428 1,513 Loans 6,404 5,692 5,372 Allowance for loan losses (56) (52) (50) Other assets 674 569 534 Total assets 8,724
Slide 14: Quarterly Net Income (Loss) by Operating Segment
Quarterly Net Income (Loss) by Operating Segment Nine months Nine months (In thousands) Q3 2019 Q2 2019 Q1 2019 YTD 2019 YTD 2018 2018 2017 PNB $ 30,948 $ 29,382 $ 26,692 $ 87,022 $ 83,398 $ 109,472 $ 87,315 GFSC 203 163 287 653 606 521 260 All Other (5) (7,382) (1,524) (8,911) 122 394 (3,333) Total
Slide 15: The Park National Bank Consolidated Statements of Income
The Park National Bank Consolidated Statements of Income Nine months Nine months (In thousands) Q3 2019 Q2 2019 Q1 2019 YTD 2019 YTD 2018 2018 2017 Net interest income $ 76,180 $ 74,893 $ 66,282 $ 217,355 $ 190,319 $ 258,547 $ 235,243 Provision for loan losses 2,320 1,803 2,440 6,563 4,491 7,569 9,8
Slide 16: Park National Bank Balance Sheet Highlights
Park National Bank Balance Sheet Highlights % change % change September 30, December 31, September 30, from from (In thousands) 2019 2018 2018 12/31/18 9/30/18 Loans $ 6,382,673 $ 5,671,173 $ 5,605,925 12.55% 13.86% Allowance for loan losses 53,865 49,067 47,981 9.78% 12.26% Net loans 6,328,808 5,62
Slide 17: Park National Bank Loans by Type
Park National Bank Loans by Type • 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 decades 9/30/2019 6/30/2019 12/31/2018 9/30/2018
Slide 18: Park National Bank Indirect Loans
Park National Bank Indirect Loans $1,250,000 $1,000,000 $750,000 $500,000 $250,000 Indirect Loans (in thousands) $0 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 Sep. 30, 2019 Other $106,872 $86,425 $71,814 $64,649 Boat/RV $138,483 $184,862 $214,425 $244,071 Auto $668,018 $778,711 $809,529 $907,941 Tota
Slide 19: Nonperforming Assets
Park National Corporation Nonperforming assets (in thousands) Sep. 30, 2019 Dec. 31, 2018 Dec. 31, 2017 Non-accrual loans 1 $ 89,555 $ 67,954 $ 72,056 Renegotiated loans 18,382 15,173 20,111 Loans past due 90 days or more (still accruing) 3,247 2,243 1,792 Total nonperforming loans $ 111,184 $ 85,37
Slide 20: PRK Comparison to Peers
PRK comparison to peers Peer Peer PRK Group Peer Peer PRK Group Price to Price to PRK Group PRK Group Price to Price to Tangible Tangible Price to Price to Dividend Dividend Book % Book % Book Book % Earnings Earnings Yield Yield 3Q 2019 162% 132% 1 198% 160% 1 14.7 2 12.1 1 4.6 3 2.1 1 2018 160% 12
Slide 21: 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 22: Sandler O'Neill East Coast Financial Services Conference
Sandler O’Neill East Coast Financial Services Conference November 13-14, 2019 22
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