Park National Corporation · AMEX:PRK

Park National — Sandler O'Neill East Coast Financial Services Conference 2014

26 slides from Park National's conference presentation, Nov 12, 2014

  1. Slide 1: Sandler O'Neill East Coast Financial Services Conference

    1 November 12-13, 2014 Sandler O’Neill East Coast Financial Services Conference

  2. 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

  3. Slide 3: Park National Corporation (PRK) Profile

    3 Park National Corporation (PRK) Profile (as of September 30, 2014) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 29 Ohio counties • 118 bank branches • 7 specialty finance offices • 1,808 FTEs

  4. Slide 4: Park Executive Management

    Park Executive Management  David L. Trautman – President and CEO– Age: 53 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

  5. Slide 5: Park Executive Management (continued)

    Park Executive Management (continued)  Brady T. Burt – Chief Financial Officer – Age: 42 Chief Financial Officer of Park since 2012. Formally served as the Chief Accounting Officer with Park since April 2007. Prior to joining Park, Mr. Burt served Vail Banks, Inc. in various capacities, including E

  6. Slide 6: Experienced Leadership Team

    6 Experienced Leadership Team Name Position Age Years with PRK Years In Industry David L. Trautman President & CEO 53 31 31 C. Daniel DeLawder Chairman 65 43 43 Brady T. Burt Chief Financial Officer 42 7 13  Senior leadership consists of executives with proven local market experience  Leadership t

  7. Slide 7: Leadership Team – continued

    7 Leadership Team – continued Name Position Age Years with PRK Years In Industry Adrienne M. Brokaw SVP – Director of Internal Audit 46 1 15 Thomas J. Button SVP – Chief Credit Officer 54 17 28 Thomas M. Cummiskey SVP – Trust 45 15 17 Robert N. Kent, Jr. President – Scope Aircraft Finance 57 11 31 T

  8. Slide 8: Affiliate Leadership

    8 Affiliate Leadership Name Position Age Years with PRK/Affiliate Years In Industry John A. Brown President – Richland Bank 45 23 23 Brett A. Baumeister President – Unity National Bank 48 10 24 William C. Fralick President – Security National Bank 60 38 38 David J. Gooch President – Park National Ba

  9. Slide 9: Highlights of the First Nine Months of 2014

    9 Highlights of the First Nine Months of 2014 • Loan growth of $164 million year to date, or 4.8% annualized, at Park’s Ohio subsidiary, The Park National Bank. • Credit quality remains strong: Park National Corporation experienced annualized net charge-offs for the first nine months of 8 basis poin

  10. Slide 10: PRK and PRK excluding SEPH ROA and ROE History

    10 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 Adjust

  11. Slide 11: Total Return Performance Park National Corporation

    11 Total Return Performance Park National Corporation 50 75 100 125 150 175 200 225 250 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 Ind ex Va lue Total Return Performance Park National Corporation NYSE MKT Composite Index NASDAQ Bank SNL Bank and Thrift Index The total return stock perform

  12. Slide 12: The Park National Bank – The bank of choice

    12 The Park National Bank – The bank of choice Headquarter Counties – Deposits (in thousands) Source: FDIC, June 30, 2014 Bank Division Year Joined Park Hdqtr. Co. Deposits Total County Deposits % of 2014 Market Share % of 2013 Market Share 2014 Headquarter County Market Share Rank 2013 Headquarter

  13. Slide 13: Park National Corporation – Income Statement

    (in thousands) Q3 2014 Q2 2014 Q1 2014 Nine months YTD 2014 Nine months YTD 2013 2013 2012 Net interest income $56,709 $56,561 $54,480 $167,750 $165,125 $221,025 $235,315 (Recovery of) provision for loan losses 4,501 (1,260) (2,225) 1,016 3,500 3,415 35,419 Other income 19,396 19,671 16,648 55,715 5

  14. Slide 14: Park National Corporation Statement of Condition

    (in millions) September 30, 2014 Dec. 31, 2013 Dec. 31, 2012 Investment securities $ 1,473 $ 1,424 $ 1,582 Loans 4,770 4,619 4,424 Allowance for loan losses (58) (59) (56) Other assets 828 654 693 Total assets $ 7,013 $ 6,638 $ 6,643 Non-interest bearing deposits $ 1,176 $ 1,194 $ 1,137 Interest bea

  15. Slide 15: Quarterly Net Income by Operating Segment

    (In thousands) Q3 2014 Q2 2014 Q1 2014 Nine months Nine months 2013 2012 YTD 2014 YTD 2013 PNB $19,237 $22,189 $19,607 $61,033 $57,511 $75,794 $87,106 GFSC 416 478 604 1,498 2,261 2,888 3,550 Park Parent Company 1 (1,378) (1,245) (904) (3,527) 79 (1,397) 195 Ongoing operations $18,275 $21,422 $19,30

  16. Slide 16: The Park National Bank Income Statement

    (In thousands) Q3 2014 Q2 2014 Q1 2014 Nine months YTD 2014 Nine months YTD 2013 2013 2012 Net interest income $55,400 $55,290 $53,099 $163,789 $156,819 $210,781 $221,758 Provision for (recovery of) loan losses 6,527 1,683 (140) 8,070 11,591 14,039 16,678 Fee income 18,415 18,909 15,703 53,027 53,16

  17. Slide 17: Park National Bank Statement of Condition

    (In thousands) September 30, 2014 December 31, 2013 September 30, 2013 % change from 12/31/13 % change from 9/30/13 Loans $ 4,722,154 $ 4,557,740 $ 4,501,585 3.61% 4.90% Allowance for loan losses 55,225 56,888 55,425 (2.92)% (0.36)% Net loans 4,666,929 4,500,852 4,446,160 3.69% 4.97% Investment secu

  18. Slide 18: Park National Bank Loans by Type

    18 Park National Bank Loans by Type Source: Company Filings as of September 30, 2014 • 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

  19. Slide 19: Nonperforming Loans by Type

    19 Park National Corporation Nonperforming Loans by Type At September 30, 2014 Source: Company Filings as of September 30, 2014 PNB Guardian SE LLC PRK Amount Percentage Amount Percentage Amount Percentage Amount Percentage Commercial Real Estate Owner Occupied $ 10,864 11.67% $ - 0.00% $ 3,992 17.0

  20. Slide 20: Park National Corporation Nonperforming Assets

    (in thousands) September 30, 2014 Dec. 31, 2013 Dec. 31, 2012 Non-accrual loans 1 $ 100,471 $ 135,216 $ 155,536 Renegotiated loans 1 17,135 18,747 29,800 Loans past due 90 days or more (still accruing) 1,787 1,677 2,970 Total nonperforming loans $ 119,393 $ 155,640 $ 188,306 Non-accrual loans held f

  21. Slide 21: PNB and Guardian Nonperforming Assets

    21 1 Vision/SEPH participations included in PNB’s nonperforming assets were approximately $10.9 million at September 30, 2014, $12.3 million at December 31, 2013 and $19.0 million at December 31, 2012. Source: BHC Performance Report and Company Filings (in thousands) September 30, 2014 Dec. 31, 2013

  22. Slide 22: Commercial Loans Held for Sale

    22 Commercial Loans Held for Sale Park National Corporation Sept. 30, 2014 (excluding loans HFS) 1 Sept. 30, 2014 (including loans HFS) Dec. 31, 2013 Dec. 31, 2012 Percentage of nonaccrual loans to period end loans 2.11% 2.55% 2.93% 3.52% Percentage of nonperforming loans to period end loans 2.50% 2

  23. Slide 23: Park National Bank Commercial Loan Portfolio Trends

    Park National Bank Commercial Loan Portfolio Trends 23 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 estat

  24. 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) 24 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 Comp

  25. Slide 25: M&A Opportunities

    M&A Opportunities  PRK successfully completed 11 Ohio- based financial institution mergers from 1985 through 2006.  Each bank operates within PRK in an autonomous fashion; each bank retains its local community bank identity, leadership team, and advisory board of directors. Future Merger Objective

  26. Slide 26: East Coast Financial Services Conference

    26 November 12 – 13, 2014 East Coast Financial Services Conference

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