Park National Corporation · AMEX:PRK
Park National — Shareholder Meeting (April 2013)
37 slides from Park National's shareholder meeting presentation, Apr 22, 2013
Slide 1: April 22, 2013 Annual Shareholders' Meeting
1 April 22, 2013 Annual Shareholders’ Meeting
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation summarizes the financial condition and results of operations for Park National Corporation and its subsidiaries ("Park" or the "Corporation"). This presentation should be considered in conjunction with the consolidated financial statements and related notes an
Slide 3: Park National Corporation Profile (as of March 31, 2013)
3 3 Park National Corporation Profile (as of March 31, 2013) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 28 Ohio & 1 Kentucky counties • 123 bank branches • 7 specialty finance offices • 1,821 FTEs
Slide 4: Net income by operating segment
Net income by operating segment 4 Source: Company Filings (in thousands) Mar. 31, 2013 Mar. 31, 2012 Dec. 31, 2012 Dec. 31, 2011 Park National Bank $ 19,940 $ 21,561 $ 87,106 $ 106,851 Guardian Financial Services Company 740 806 3,550 2,721 PRK Parent Company 132 49 195 (1,595) Ohio-based operations
Slide 5: Park National Corporation Income Statement
5 Park National Corporation Income Statement Source: Company Filings (1) Excludes the gain on sale of the Vision Bank business for the year ended December 31, 2012 and the gain on sale of securities for the year ended December 31, 2011. (in thousands) Mar. 31, 2013 Mar. 31, 2012 Dec. 31, 2012 Dec. 3
Slide 6: Statement of Condition
PARK NATIONAL CORPORATION Statement of Condition 6 Source: Company Filings (in millions) Mar. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Cash & cash equivalents $ 521 $ 201 $ 157 Investment securities 1,352 1,582 1,708 Loans 4,444 4,450 4,317 Allowance for loan losses (55) (56) (68) Assets held for sale -
Slide 7: Nonperforming assets
7 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 (in thousands) Mar. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010 Nonaccrual loans $ 151,539 $
Slide 8: Vision Bank/SE Property Holdings, LLC Nonperforming assets
8 Vision Bank/SE Property Holdings, LLC Nonperforming assets Source: Company Filings (in thousands) March 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010 Nonaccrual loans $ 48,293 $ 55,292 $ 98,993 $ 171,453 Accruing TDRs - - 2,265 - Loans past due 90 days or more (still accruing) - - 122 364 Tot
Slide 9: Nonperforming assets excluding Vision Bank/SEPH
9 Source: BHC Performance Report and Company Filings Note: The Texas Ratio is calculated as total nonperforming assets divided by the sum of tangible common equity plus the allowance for loan losses. (in thousands) Mar. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010 Nonaccrual loans $ 103,246 $
Slide 10: ROAA and ROAE History – PRK and PRK excluding Vision/SEPH
10 ROAA and ROAE History – PRK and PRK excluding Vision/SEPH Results Count * Calculated using average common equity for Park National Corporation. ** Calculated using average common equity for Park National Corporation, excluding Vision Bank and SE Property Holdings, LLC. *** Adjusted for goodwill i
Slide 11: PRK Earnings History
11 PRK Earnings History * Adjusted for goodwill impairment charge of $55 million in 2008 and $54 million in 2007. Including the goodwill impairment charges, Park’s diluted EPS for 2008 and 2007 was $0.97 and $1.60, respectively. Diluted EPS Dividends Per Common Share Period End Stock Price Common Bo
Slide 12: PRK comparison to peers
12 PRK comparison to peers * Annualized earnings through March 31, 2013 have been utilized in this calculation. ** Annualized based on dividends and stock price through March 31, 2013. Source: Company Filings and Sandler O’Neill, using SNL data of $3 billion to $10 billion bank holding companies PRK
Slide 13: Total Return Performance Park National Corporation
13 Total Return Performance Park National Corporation 0 25 50 75 100 125 150 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 Ind ex Va lue Total Return Performance Park National Corporation NYSE MKT Composite NASDAQ Bank SNL Financial Bank and Thrift Index The total return stock pe
Slide 14: PRK short interest comparison to peers
PRK short interest comparison to peers 14 Entity Shares Outstanding Short Interest Position Average Daily Volume * Days to Cover Short Interest as a % of Total Shares Outstanding PRK – 3/31/13 15,411,984 1,275,898 23,564 54.1 8.28% PRK – 12/31/12 15,411,998 1,212,786 32,053 37.8 7.87% Midwest Peer M
Slide 15: Good Advice
Good Advice “Create a setting that stimulates, nurtures, and challenges instead of one that inspects, audits and controls.” From Stop Paddling and Start Rocking the Boat by Lou Pritchett 15
Slide 16: More Good Advice
More Good Advice “Your premium brand better be delivering something special, or it’s not going to get the business.” - Warren Buffett 16
Slide 17: Service Excellence
Service Excellence • Launched Fall 2010 • Articulated 15 Service Standards • Define and reinforce excellent customer service and what it means to be a Park Affiliate Banker • 100% of PRK Affiliate associates trained • Service 360: Daily 6-minute meeting of all associates to discuss a PRK Service Sta
Slide 18: Net Promoter Score
Net Promoter Score • Implemented 2007 • Loyalty indicator developed by Satmetrix, Bain & Company, and Fred Reichheld • One question survey: “How likely are you to refer [bank] to a friend or colleague?” • Companies scoring over 50 are considered world-class per Satmetrix • Average score for banks, p
Slide 19: Engagement Survey
Engagement Survey • All PRK Affiliate associates invited to participate in October 2012. • 1663 associates, or 84%, participated – one of the highest participation rates ever reported by the survey company, Towers Watson. • Very positive results – across the company, at all levels. • All 13 categori
Slide 20: Engagement Survey
Engagement Survey • Compared very favorably to two national benchmarks: U.S. Financial Services Companies and U.S. High Performing Companies. • PRK’s engagement score….loosely translated as associates who are fully committed to the organization…was 87%...another EXCELLENT score! This is 3-6 percenta
Slide 21: The Park National Bank – The bank of choice
21 Bank Division Year joined Park Hdqtr. Co. deposits Total county Deposits Park % of market share Rank in market Park National 1908 $ 1,180,276 $ 2,042,415 57.8% 1 Fairfield National 1985 379,484 1,743,570 21.8% 1 Richland Bank 1987 473,075 1,742,412 27.2% 1 Century National 1990 393,123 1,213,689
Slide 22: 2012 Community Support
2012 Community Support • Park National Corporation Affiliate Focus: − Strengthen our communities! 22
Slide 23: Century National Bank
Century National Bank 5-year pledge toward Muskingum Rec Center being built at Ohio University-Zanesville CNB’s donation to Operation Feed accounted for over a third of the total raised during the Muskingum County campaign. 23
Slide 24: Fairfield National Bank
Fairfield National Bank Organized a one-day event to stuff a U-Haul truck full of supplies to deliver to Hurricane Sandy victims in NYC. FNB made dreams & wishes come true for a handful of Facebook fans. 24
Slide 25: Farmers & Savings Bank
Farmers & Savings Bank Helping out the Loudonville Lions Club at the Loudonville Fair 100% participation in the Mohican Area Community Fund/United Way annual campaign for the 9th consecutive year 25
Slide 26: First-Knox National Bank
First-Knox National Bank Millersburg office accepts Business of the Year award from Holmes County Chamber of Commerce. Donated billboard space to highlight community organizations with special announcements, events or milestones 26
Slide 27: Park National Bank
Park National Bank Volunteering with A Call To College to help high school students learn budgeting basics. Over 50 PNBers completed the Couch to 5k training program sponsored by PNB & Licking Memorial Health Systems. Hosted luncheon for community business leaders featuring Sandy Pianalto, President
Slide 28: Park Southwest
Park Southwest More than 80 associates served 12 United Way agencies during PNB Cares, including Clermont Senior Services, Fairhaven Rescue Mission and CASA for Clermont Kids. 28
Slide 29: Richland Bank
Richland Bank Rascal the Raccoon joined Kroger’s mascot, Pepe, for the grand reopening of the Lexington Avenue Kroger Marketplace. 29 Donated $20 to the local National Guard units for each checking account opened with direct deposit, online banking & an eStatement in May 2012.
Slide 30: Second National Bank
Second National Bank Check presentation and family photo from March of Dimes event 30
Slide 31: Security National Bank
Security National Bank Security Sluggers Softball Team Recognized as a Top Workplace in Miami Valley by the Dayton Daily News & Springfield News-Sun. 31
Slide 32: United Bank
United Bank United Way Wing Eating Contest: 68 in 5 minutes! Wounded Warrior Nick Vogt 5K raised over $35,000 for the Vogt family. Race sponsored by United Bank -- many bankers ran or volunteered. 32
Slide 33: Unity National Bank
Unity National Bank Salvation Army Puttin’ For A Purpose Chamber of Commerce Business After Hours at Unity 33
Slide 34: Scope Aircraft Finance / Guardian Finance Company
en Scope Aircraft Finance GUARDIAN FINANCE COMPANY
Slide 35: 2013 PRK Agenda
35 2013 PRK Agenda A. Grow sustainable net income B. Produce PRK ROAE in the upper quintile relative to peers C. Continued reduction of SEPH nonperforming assets D. Grow quality loans; expand relationships with existing customers E. Implement continued improvements to PRK technology platform F. Impr
Slide 36: Why invest in Park National Corporation?
Why invest in Park National Corporation? Unique, localized business model makes PNB Affiliates the bank of choice for customers. History of consistent dividend payments to shareholders and a strong dividend yield. Favorably positioned to take advantage of growth opportunities in our markets, l
Slide 37: April 22, 2013 Annual Shareholders' Meeting
37 April 22, 2013 Annual Shareholders’ Meeting