Park National Corporation · AMEX:PRK
Park National — Q2 2025 Earnings Presentation
38 slides from Park National's earnings presentation, Aug 4, 2025
Slide 1: Park National Corporation
Park National Corporation P A R K N A T I O N A L C O R P O R A T I O N
Slide 2: Safe Harbor Statement
Safe Harbor Statement P A R K N A T I O N A L C O R P O R A T I O N 2 This presentation contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future eve
Slide 3: Disclaimer: Non-GAAP Financial Measures
Disclaimer Non-GAAP Financial Measures This presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Management believes that the disclosure of these “non-GAAP” financial measures presents a
Slide 4: Snapshot
Snapshot • Park National Corporation (NYSE American: PRK) is a $9.9 billion in asset financial holding company headquartered in Newark, OH, that conducts banking operations through its wholly-owned subsidiary, The Park National Bank. • Long-tenured management team helps to sustain unique culture. Ou
Slide 5: Overview of Park National Corporation
P A R K N A T I O N A L C O R P O R A T I O N Overview of Park National Corporation
Slide 6: Overview of Park National Corporation
Overview of Park National Corporation P A R K N A T I O N A L C O R P O R A T I O N 6 • Park’s bank subsidiary, The Park National Bank, is headquartered in Newark, Ohio and was founded in 1908. • $9.9 billion of total assets and $9.1 billion of assets under management(1) at June 30, 2025. • Park com
Slide 7: Attractive Geographic Footprint
Attractive Geographic Footprint P A R K N A T I O N A L C O R P O R A T I O N 7 Ohio North Carolina South CarolinaKentucky Region Deposits Trust AUM(1) Full-Time(2) Employees Counties Served Offices Western Ohio $1.71B $1.50B 162 6 20 Northern Ohio $1.85B $1.50B 202 7 22 Metro $1.01B $1.27B 202 7 14
Slide 8: Community Banking Regions
• Strong history of operating in Park’s regional bank model. • Park continues to analyze its remaining branch network (geography, demographics, transaction volume, etc.) to identify sensible branch optimization opportunities. • Regional leadership team averages approximately 29 years of banking expe
Slide 9: Preparation to Cross $10 Billion in Assets
Preparation to Cross $10 Billion in Assets • Since Q3 2020, Park has been strategically managing the balance sheet size to stay under $10 billion in assets,(1) using one-way sell deposits and other balance sheet strategies. • In Q3 2022, Park engaged Promontory (third-party professional services fir
Slide 10: Park M&A Strategy
Park M&A Strategy Two-prong strategy guidelines: 1. Traditional M&A • Strong franchise, good reputation and asset quality • Competitive market share • Continuity of management and leadership • Traditional community bank structure • Sticky, low-cost core deposits • Disciplined approach to pricing and
Slide 11: Financial Summary
P A R K N A T I O N A L C O R P O R A T I O N Financial Summary
Slide 12: 2025 Second Quarter Highlights
2025 Second Quarter Highlights P A R K N A T I O N A L C O R P O R A T I O N 12 • Park’s Consolidated Capital Ratios at June 30, 2025: – Total Shareholders’ Equity to Total Assets of 13.01% – Tangible Common Equity to Tangible Assets of 11.57%(1) – Leverage Ratio of 11.80% – Total Risk-Based Capital
Slide 13: Strong Balance Sheet
Strong Balance Sheet P A R K N A T I O N A L C O R P O R A T I O N 13 Total Assets Total Loans (excluding PPP) (1) Total Deposits (includes off balance sheet) (2) Total Shareholders’ Equity (Dollars in millions) (Dollars in millions) (Dollars in millions) (Dollars in millions) (1) Excludes PPP loans
Slide 14: Strong Earnings
Efficiency Ratio & Non-Int. Exp. / Avg. Assets(1) Strong Earnings P A R K N A T I O N A L C O R P O R A T I O N 14 (Dollars in millions) Net Income, ROAA & ROATE(1) Non-Interest Income / Operating Revenue (2) Pre-Tax, Pre-Provision Net Income / Avg. Assets(1) (1) See Reconciliation of Non-GAAP Finan
Slide 15: Stable Net Interest Margin
Stable Net Interest Margin P A R K N A T I O N A L C O R P O R A T I O N 15 Asset Yields, Liability Costs, and Net Interest Margin(1) (1) Net interest margin shown annualized QTD, on a fully taxable equivalent basis assuming a 21% corporate federal income tax rate. See “Reconciliation of Non-GAAP Fi
Slide 16: Diverse Fee Income
Diverse Fee Income P A R K N A T I O N A L C O R P O R A T I O N 16 Overview • The business lines responsible for generating the majority of fee income are wealth management, mortgage banking, and retail banking (interchange fees). • Diversified revenue base with approximately 21.4% non-interest inc
Slide 17: Disciplined Approach to Managing Operating Expenses
Disciplined Approach to Managing Operating Expenses P A R K N A T I O N A L C O R P O R A T I O N 17 Efficiency Ratio & Non-interest Expense Non-interest Expense Composition (YTD) Note: Financial data as of June 30, 2025 unless otherwise noted. (Dollars in millions) • Significant investment in peopl
Slide 18: High Quality Capital Structure
High Quality Capital Structure 99% of Park’s Tier 1 Capital is Common Equity P A R K N A T I O N A L C O R P O R A T I O N 18 Common Equity Tier 1 Trust Preferred Receives full Tier 1 Capital treatment Subordinated Notes and Allowance for Credit Losses Tier 1 Capital $1,177.0 million Tier 2 Capital
Slide 19: Robust Capital Ratios
Robust Capital Ratios P A R K N A T I O N A L C O R P O R A T I O N 19 (1) Adequately capitalized thresholds plus capital conservation buffer of 2.5%. (2) Regional Peer Group was used, as defined in the 2025 proxy. PRK’s 2025 Q2 data above is compared to peer median data as of 2025 Q1. (3) Projected
Slide 20: High-Quality and Diversified Loan Portfolio
High-Quality and Diversified Loan Portfolio P A R K N A T I O N A L C O R P O R A T I O N 20 • Park has a well-secured loan portfolio with geographic and asset class diversity. • Out-of-market portfolio is largely limited to specialty lending, which has conservative underwriting and is subject to in
Slide 21: Healthy Allowance Levels Safeguard Shareholders' Equity
Healthy Allowance Levels Safeguard Shareholders’ Equity P A R K N A T I O N A L C O R P O R A T I O N 21 Allowance / Total LoansOverview • Allowance for credit losses was 1.13% of total loans as of June 30, 2025. • Conservative classification of commercial loans and prudent identification of problem
Slide 22: Stable Asset Quality
Stable Asset Quality P A R K N A T I O N A L C O R P O R A T I O N 22 Net Charge-Offs / Average Loans Classified Loans(2) / Tier 1 Capital + ACL Overview • Conservative underwriting and strong asset quality. • Of the $63.1 million in nonaccrual loans, $45.1 million, or about 71.6%, were current with
Slide 23: Stable, Low-Cost Core Deposits
Stable, Low-Cost Core Deposits P A R K N A T I O N A L C O R P O R A T I O N 23 • With minimal reliance on costly time deposits and a relatively high level of non-interest bearing deposits, Park has cultivated a loyal and low-cost source of funds. • Non-interest bearing deposits represented 32% of t
Slide 24: High Quality Securities Portfolio
High Quality Securities Portfolio P A R K N A T I O N A L C O R P O R A T I O N 24 • Park’s investment securities portfolio is highly rated(1): • 77% are AAA rated or Agency Backed • 21% are AA+, AA, AA- or A- rated • 2% are BBB, BBB- or Not Rated • 21% of the portfolio is floating rate. • All mortg
Slide 25: Appendix
P A R K N A T I O N A L C O R P O R A T I O N Appendix
Slide 26: Senior Management
Senior Management P A R K N A T I O N A L C O R P O R A T I O N 26 David L. Trautman – Chairman of the Board and CEO – Age: 64 (42 years with Park) • Chairman of the Board since May 2019 and CEO since January 2014 of Park and Park National Bank. • President of Park and Park National Bank from Januar
Slide 27: Senior Management (continued)
Senior Management (continued) P A R K N A T I O N A L C O R P O R A T I O N 27 Brady T. Burt – Chief Financial Officer – Age: 53 (18 years with Park) • Chief Financial Officer of Park and Park National Bank since December 2012. • Chief Accounting Officer of Park and Park National Bank from April 200
Slide 28: Experienced Management Team
Experienced Management Team • Park National Bank’s management team consists of leaders with deep market knowledge. • The management team averages 27 years of banking experience. • The average team tenure with Park National Bank is approximately 20 years. P A R K N A T I O N A L C O R P O R A T I O N
Slide 29: Commercial Loan Repricing
Commercial Loan Repricing P A R K N A T I O N A L C O R P O R A T I O N In Thousands Note: Financial data as of June 30, 2025 29 33% 12% 9% 12% 15% 19% Commercial Loan Repricing or Maturing by Year 2025 2026 2027 2028 2029 2030+ 2025 2026 2027 2028 2029 2030+ ≥3% $87,204,008 $117,042,096 $20,024,418
Slide 30: CRE Loan Repricing
CRE Loan Repricing P A R K N A T I O N A L C O R P O R A T I O N In Thousands Note: Financial data as of June 30, 2025 30 20% 15% 10% 14% 18% 23% CRE Loan Repricing or Maturing by Year 2025 2026 2027 2028 2029 2030+ 2025 2026 2027 2028 2029 2030+ ≥3% $53,212,947 $69,221,225 $12,922,983 $2,422,994 $6
Slide 31: Installment Lending Portfolio
Installment Lending Portfolio P A R K N A T I O N A L C O R P O R A T I O N 31 Note: Financial data as of June 30, 2025 • Park National Bank’s installment portfolio includes $1.7B of indirect loans and $185MM of direct loans. • Balances have steadily increased since first exceeding $1B in 2017. 52.0
Slide 32: Installment Lending Portfolio (continued)
Installment Lending Portfolio (continued) P A R K N A T I O N A L C O R P O R A T I O N 32 Note: Financial data as of June 30, 2025 Pre-2020 2020 2021 2022 2023 2024 2025 Total All Other 5,286,387 1,518,071 2,470,844 2,867,598 6,556,695 12,428,481 8,701,079 39,829,155 Watercraft 10,490,391 10,708,15
Slide 33: Specialty Lending
Specialty Lending • Park has successfully operated in the specialty finance area for many years, specifically focusing on turbo-prop and light jets and structured finance lending to non-bank consumer finance companies. Net charge-offs in specialty lending have not materially impacted Park’s overall
Slide 34: Insured Deposits Trend
Insured Deposits Trend Uninsured deposits were largely unchanged QoQ and continue to represent a reasonable level of exposure to the overall balance sheet relative to available funding capacities. Note: Financial data as of June 30, 2025 unless otherwise noted. 34 84% 83% 83% 83% 82% 82% 82% 0% 10%
Slide 35: Historical Borrowing Position
Historical Borrowing Position Overall borrowings remain historically low, which has been a key driver of our ability to maintain a favorable funding position relative to peers through the current cycle. *Includes FHLB advances, Brokered Deposits and Brokered Repurchase Agreements. Note: Financial da
Slide 36: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures P A R K N A T I O N A L C O R P O R A T I O N 36 Reconciliation of Average Shareholders' Equity to Average Tangible Equity For the Twelve Months Ended For the Three Months Ended For the Six Months Ended 12/31/2021 12/31/2022 12/31/2023 12/31/2024 6/30/20
Slide 37: Reconciliation of Non-GAAP Financial Measures (continued)
Reconciliation of Non-GAAP Financial Measures (continued) P A R K N A T I O N A L C O R P O R A T I O N 37 Reconciliation of Fully Taxable Equivalent Net Interest Income to Net Interest Income For the Twelve Months Ended For the Three Months Ended For the Six Months Ended 12/31/2021 12/31/2022 12/31
Slide 38: Park National Corporation
Park National Corporation P A R K N A T I O N A L C O R P O R A T I O N