Park National Corporation · AMEX:PRK
Park National — Shareholder Meeting (April 2016)
27 slides from Park National's shareholder meeting presentation, Apr 25, 2016
Slide 1: Annual Meeting of Shareholders April 25, 2016
ANNUAL MEETING OF SHAREHOLDERS April 25, 2016 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 Profile
Park National Corporation Profile (as of March 31, 2016) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 29 Ohio counties • 115 bank offices • 6 specialty finance offices • 1,797 FTEs 3
Slide 4: Affiliate Relative Size
Affiliate Relative Size Based on deposits, loans, repurchase agreements, trust assets under management (as of March 31, 2016) PND 36% FND 7% PSD 5% RBD 7% CND 10% FKD 10% FSD 2% UBD 2% SND 5% SED 13% UND 3% 4
Slide 5: Park National Corporation Consolidated Statements of Income
Park National Corporation Consolidated Statements of Income Source: Company Filings 5 (in thousands) Dec. 31, 2014 Dec. 31, 2015 Mar. 31, 2015 Mar. 31, 2016 Net interest income $ 225,044 $ 227,632 $ 55,535 $ 59,819 Provision for (recovery of) loan losses (7,333) 4,990 1,632 910 Net interest income a
Slide 6: Park National Corporation Consolidated Balance Sheets
Park National Corporation Consolidated Balance Sheets Source: Company Filings 6 (in millions) Dec. 31, 2014 Dec. 31, 2015 Mar. 31, 2016 Cash & cash equivalents $ 238 $ 149 $ 318 Investment securities 1,501 1,644 1,602 Loans 4,829 5,068 5,062 Allowance for loan losses (54) (56) (57) Other assets 487
Slide 7: The Park National Bank Consolidated Statements of Income
The Park National Bank Consolidated Statements of Income Source: Company Filings 7 (in thousands) Dec. 31, 2014 Dec. 31, 2015 Mar. 31, 2015 Mar. 31, 2016 Net interest income $ 218,641 $ 220,879 $ 53,821 $ 57,155 Provision for loan losses 3,517 7,665 2,022 1,533 Net interest income after provision fo
Slide 8: The Park National Bank Consolidated Balance Sheets
The Park National Bank Consolidated Balance Sheets Source: Company Filings 8 (in millions) Dec. 31, 2014 Dec. 31, 2015 Mar. 31, 2016 Cash & cash equivalents $ 237 $ 148 $ 316 Investment securities 1,498 1,642 1,600 Loans 4,782 5,029 5,024 Allowance for loan losses (52) (55) (55) Other assets 445 466
Slide 9: PRK Comparison to Peers
PRK Comparison to Peers Ratios at December 31 for each year Source: SNL data of $3 billion to $10 billion bank holding companies (“Peer Group”) PRK Price to Book Value % Peer Group Price to Book Value % PRK Price to Tangible Book Value % Peer Group Price to Tangible Book Value % PRK Price to Earning
Slide 10: Efficiency Ratio: PRK vs. Peers
10 50 55 60 65 70 75 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 Pe rce n t (% ) Efficiency Ratio PRK Peer Group PRK vs. Peers Source: BHCPR; $3 billion to $10 billion bank holding companies peer group.
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 Fiduciary Income and Asset Trends
The Park National Bank Fiduciary Income and Asset Trends Source: Company Filings 12 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 3.00 3.50 4.00 4.50 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 (I n co m e in m ill io n s) (A sse ts in b ill io n s) Trust Assets (market value) (left Y axis) Fid
Slide 13: The Park National Bank Loan Totals
13 The Park National Bank Loan Totals Source: Company Filings $4,650 $4,700 $4,750 $4,800 $4,850 $4,900 $4,950 $5,000 $5,050 Dec. 31, 2014 Mar. 31, 2015 Jun. 30, 2015 Sept. 30, 2015 Dec. 31, 2015 Mar. 31, 2016 To ta l L o an s (i n mi lli o n s)
Slide 14: Park National Corporation Nonperforming Assets
Park National Corporation Nonperforming Assets Source: BHC Performance Report and Company Filings Peers include all bank holding companies nationwide with total assets between $3.0 and $10.0 billion 14 (in thousands) Dec. 31, 2014 Dec. 31, 2015 Mar. 31, 2016 Total nonperforming loans1 $ 103,034 $ 97
Slide 15: Dividends & Taxes Paid
Dividends & Taxes Paid Note: The table above presents the amount of dividends that have been paid to shareholders known to be residing in the counties in which our divisions operate. 15 Dividends paid by Bank Division (counties in italics) 2011-2015 (5 years) 2006-2015 (10 years) Park National Bank
Slide 16: In-Person Transactions
16 1,800,000 1,900,000 2,000,000 2,100,000 2,200,000 2,300,000 2,400,000 2,500,000 2,600,000 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 In-Person Transactions
Slide 17: Mobile Banking Transactions
0 2,000,000 4,000,000 6,000,000 8,000,000 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 17 Mobile Banking Transactions
Slide 18: reront snes Investments cistomer Service
reront snes Investments cistomer Service NGA
Slide 19: Have you tried Text Banking?
Have you tried Text Banking? Busnes wast timvestnents custome Service instant access: ‘Thanks contacog ut Please complete ‘he frm and chek Stat Chat Ragin Robert Alison ralison@parknationalbank.com Rate on 5 Year CD% x Start Chat
Slide 20: Have you tried Text Banking?
Have you tried Text Banking? ‘rast investments castomer Serve
Slide 21: Building a Community
Personal Busnes ‘Wat vestents BUILDING A ‘stoner Serve Seriously wewceeg COMMUNITY elas ralison@parknationalbank.com Hep compe Have you tried Text Banking? Notata iy Extemey ty
Slide 22: is David Trautman still with the Bank?
is David Trautman still with the Bank? That's good. Thanks. That's all for today!
Slide 23: Net Promoter Score Comparison of Results
Net Promoter Score Comparison of Results Financial Industry Includes direct banks, credit unions, community banks, regional banks and national banks. 35 77 0 10 20 30 40 50 60 70 80 90 Financial Industry Average PRK Affiliate Average World Class Companies 23 Source: 2015 Satmetrix, Net Promoter Indu
Slide 24: Headquarter Counties – Deposits
The Park National Bank The bank of choice Headquarter Counties – Deposits (in thousands) Source: FDIC, June 30, 2015 24 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 Co
Slide 25: 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 26: 2016 PRK Agenda
2016 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 NPA’s to peer levels E. At least maintain => 85% of key risk indicators in green/yellow condition F. Cultiva
Slide 27: Annual Meeting of Shareholders April 25, 2016
ANNUAL MEETING OF SHAREHOLDERS April 25, 2016 27