Park National Corporation · AMEX:PRK
Park National — Shareholder Meeting (April 2010)
38 slides from Park National's shareholder meeting presentation, Apr 19, 2010
Slide 1: Annual Shareholders' Meeting
PARK NATIONAL E€ORPORATION ————— Annual Shareholders’ Meeting April 19, 2010
Slide 2: Forward-looking Statements
Forward-looking Statements Lend This presentation presents management's discussion and analysis of the financial condition and results of operations for Park National Corporation (Park). This discussion should be considered in conjunction with sf0 consolidated finenclel statomarts anc rated notes an
Slide 3: Park National Corporation
PARK NATIONAL CORPORATION ¢ 13 Community Banks (2 charters) ¢ 2 Specialty Finance Companies © 28 OH, 6 FL, 1 AL &1KY Counties ° 153 Offices © 2,007 FTES as of s/s12010)
Slide 4: Relative Size of Bank Divisions and Affiliates
PARK NATIONAL CORPORATION Relative Size of Bank Divisions and Affiliates December 31, 2009 (000s) PND, 24.5% PND PRK* $1,776,797 821,694 629,519 620,870 565,453 462,181 403,880 374,110 244,914 167,179 105,273 146,112 38,606 538,788 359,193 $7,040,329 Financials as of 12/31/2009 *PRK does not foot du
Slide 5: Statement of Condition
PARK NATIONAL CORPORATION Statement of Condition (in millions) Dec. 31, 2009 Dec. 31, 2008 Dec. 31, 2007 Investment securities 1,864 $ 2,059 $1,703 Loans 4,640 4,491 4,224 Allowance for loan losses (7) (100) (67) Other assets 653 620 661 Total assets 7,040 $__7,070 $6501 Non-interest bearing deposit
Slide 6: Earning Assets Composition
Earning Assets Composition + Commercial lending focus on small, closely-held businesses within our market Consumer mortgage and home equity portfolios are originated by Park within our footprint and have been consistently underwritten for decades Steady growth across allloen categories Fable mix oF:
Slide 7: Asset and Loan Portfolio Comparison
Asset and Loan Portfolio Comparison 8,000,000 7.000.000 6,000,000 5,000,000 4.000.000 3,000,000 2,000,000 1,000,000 ‘At December 31, 2009, Vision Bank assets represented approximately 12.8% of the total assets of Park National Corporation ($898 milion of $7.04 billion). Dec. 31,2007 Dec. 31, 2008 De
Slide 8: Investment Portfolio
Investment Portfolio + As of December 31, 2009, the fair value of our investment portfolio totaled approximately $1.8 billion = $1.3 billion available-for-sale = $0.5 billion held-to-maturity Investment Portfolio Composition Conservative Portfolio Net unsealized Sain position of $62:9 millon as of A
Slide 9: Statement of Condition
PARK NATIONAL CORPORATION Statement of Condition (in millions) Dec. 31, 2009 Dec. 31, 2008 Dec. 31, 2007 Investment securities 1,864 $ 2,059 $1,703 Loans 4,640 4,491 4,224 Allowance for loan losses (7) (100) (67) Other assets 653 620 661 Total assets 7,040 $__7,070 $6501 Non-interest bearing deposit
Slide 10: Funding Composition
Funding Composition + 80% core deposits contribute to a stable funding base Funding Mix (as of 12/34/09) Deposit Composition (as of 12/31/09) other Demand 2% Deposits 17.3% Other borrowings 15% Deposits 3% Savings 168% Total deposit portfolio (SM): PARKC gousce: company Figs Transaction ‘Accounts 2.
Slide 11: Federal Funds Rate Adjustments
Federal Funds Rate Adjustments Since December 31, 2007
Slide 12: Park National Corporation — Income Statement
Park National Corporation — Income Statement (in thousands) Dec. 31, 2009 Dec. 31, 2008 Dec. 31, 2007 Dec. 31, 2006 Net interest income $273,491 S 255,873 $ 23467 $213,244 Provision for loan losses 68,821 70,487 29,476 3,927 Net interest income after provision 204,670 185,386 205,201 209,317 Non int
Slide 13: Vision Bank — Income Statement
Vision Bank — Income Statement (in thousands) Dec. 31, 2008 Dec. 31, 2008 Dec. 31, 2007 Net interest income S$ 25,634 $ 27,065 S$ 23,756 Provision for loan losses 44,430 46,963 19,425 Net interest income (loss) after provision (18,796) (19,898) 4,331 Non interest income (loss) (2,047) 3,014 3,485 No
Slide 14: Park National Corporation, excluding Vision — Income Statement
Park National Corporation, excluding Vision — Income Statement {in thousands) Dec. 31,2009 Dec. 31, 2008 Dec. 31,2007 _Dec. 31, 2006 Net interest income $247,857 $228,808 S$ 210,921 $213,244 Provision for loan losses 24,301 23,524 10,051 3,927 Net interest income after provision 223,466 205,284 200,
Slide 15: The Park National Bank — The bank of choice
The Park National Bank — The bank of choice jleadquarter Counties of Operation — Deposits (in thousands) Year joined Our bank Total county Park % of market Rank in Bank Di Park deposits sits share market Park National 1908 $ 1,199,404 $ 2,124,888 56.4% 1 Fairfield National 1985 336,748 1,673,954 20.
Slide 16: Customer Proposition Leads to Core Profitability
Customer Proposition Leads to Core Profitability Unique branding strategy makes PRK Affiliates the local bank of choice + Dominant market share. Sector leading margin + Historically superior profitability continues i Core ROAA % | | = i 097 (0.18) i ‘on Eaming Assets % { +113 bps t 567 5.25 t i +42
Slide 17: Banking — Assets (M) per Employee
Banking — Assets (M) per Employee $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 so Py NATIONAL Pecos Mer-o6 vun.og Sep.og Peco Maroy —=- Small Banks ‘Small Banks ~ Assots less than $ bilion ‘Souree: FDIC; Company Filings We 2a yi Sess iS es— $ 3 sma = S40 ces -= PRK -s- Large Banks Large B
Slide 18: U.S. Banking — Median Return on Average Assets
(%) U.S. Banking — Median Return on Average Assets (YTI 2.00 0.50 0.25 —*- Small Banks —= Large Banks —* PRK Nat: PRK rum on milion in De 07, eng the goon mparmen, PRK rn on average assets 07%, 0.0% and 20% forthe YTD periods {hded Decenber31, 2007, Septober 32008 and December 3, 2006, spectre, Sour
Slide 19: U.S. Banking — Median Return on Average Common Equity
gz U.S. Banking — Median Return on Average Common Equity (YTD) 20.00 10.00 8.00 2.00 0.00 5 8 Ke 5 3 8 aaeys B 5 8 = 8 PibPTGLEEGLEL GGT —=- Small Banks —= Large Banks —= PRK Ret Source: FDIC; Company Filings 1, 2008, respectively,
Slide 20: U.S. Banking — Median Net Interest Margin
S. Banking — Median Net Interest Margin (YTD) 5.00 & 3.00 ~ 2.75 2.50 2.25 2.00 178 1.50 1.25 1.00 esssessssseses2e8 EEE De ae or Oh GE & -= PRK —# Large Banks —* Small Banks Large Banks ~ Assets of 5 bllon or moce ‘Small Banks ~ Assets loss than $5 bilion Source: FDIC; Company Filings.
Slide 21: Efficiency Ratio Comparison
Efficiency Ratio Comparison Banking — Median Efficiency Rat 20.00 70.00 EE) GG NICO ee aes q © 40.00 2 8 Q 30.00 eeee esses es Fe 8 & Bes ae [awe Se Ff cuca ee a pes we: -=-Large Banks = -*- PRK Large Banks ~Assats of 5 blion or more = Small Banks ‘Small Banks ~ Assets less than $5 billion Note: PRK
Slide 22: Selected Financial Data
lll. Selected Financial Data Results Count - ROA and ROE History - PRK and PRK, excluding Vision Park ROA 2009 0.97%, 2008 1.02% "* 2007 1.24%" 2008 1.75% 2005 171% 2004 1.81% 2003 181% 2002 1.93% 2001 1.84% 2000 1.65% Park ROA, excluding Vision 1.61% 1.63% 1.52% 1.75% 171% 1.81% 1.81% 1.93% 1.84% 1
Slide 23: Park Earnings History
Park Earnings History commen Diuea Dividends Stock value Per Prieto Tangible Price es Pershore Price Share Book® _Boak%s Eamings Cr aE) $09 $a Sai 3851 19% ATI 1182" 209s. 482 $376 $ 5880 SIT! SR 14% 163% ne 2008 aa + an n75 39:15 302 183% 217% 1451 2007 540 * 373 6450 4154 31.8 155% 207% 1198 2006,
Slide 24: Total Return Performance
Total Return Performance Park National Corporation Index Value Total Return Performance ” 140 a a ‘20 one i ae Ne js See - — S| 40 7 Asia ‘aps pine ‘a ‘etn oe Composite —S—SNL Bank and Thnitt index]
Slide 25: PRK Summary — Allowance for loan and lease losses
PRK Summary — Allowance for loan and lease losses Dec. 31, Dec. 31, Dec. 31, Dec. 31, (in thousands) 2008 2008 2007 2008 ALLL - beginning balance $100,088 $87,102 $70,500 $69,694 Charge-offs 59,022 62,916 20,776 10,772 Recoveries 6,830 5415 5,568, 6,853, Provision for loan losses 68,821 70,487 29,47
Slide 26: Park National Corporation — Non-performing assets
Park National Corporation — Non-performing assets Dec. 31, Dec. 31, Dec. 31, Dec. 31, {in thousands) 2009 2008 2007 2006 Non-accrual loans $233,544 $159,512 $101,128, $16,004 Renegotiated loans 142 2,845 2,804 9.113 Loans past due 90 days or more (stl accruing) 14,773 5421 4,545 7,832 Total nonperfo
Slide 27: Vision Bank — Non-performing assets
Vision Bank — Non-performing assets Dec. 31, Dec. 31, {in thousands) 2009 2008 Non-acerual loans $148,347 $91,207 Renegotiated loans . 2,845 Loans past due 90 days or more (still accruing) 11,277 644 Total nonperforming loans $159,624 $94,696 Other real estate owned 36,203 19,699 Total nonperforming
Slide 28: Park National Corporation, excluding Vision — Non-performing assets
Park National Corporation, excluding Vision — Non-performing assets {in thousands) Non-accrual loans Renegotiated loans Loans past due 90 days or more (still accruing) Total nonperforming loans Other real estate owned Total nonperforming assets Percentage of nonperforming loans to loans (PRK, exclud
Slide 29: Historical Review of Vision Bank Commercial Land & Development Loans
Historical Review of Vision Bank Commercial Land & Development Loans {in thousands) Dec. 31,2009 Dec. 31,2008 Dec. 31, 2007 CLAD loans, period end $ 218,205 $251,443 $295,743, Performing CL&D loans, period end 132,788 191,712 260,195, Impaired CLAD loans, period end 85,417 59,731 35,548, ‘Specific r
Slide 30: Review of Park's Commercial Loan Portfolio, excluding Vision Bank CL&D loans
Review of Park’s Commercial Loan Portfolio, excluding Vision Bank CL&D loans (in thousands) Dec. 31,2009 Dec. 31,2008 Dec. 31, 2007 Commercial Loans, excluding Vision CL&D loans, period end S 2570834 $2,440,888 $ 2,215,603 Performing commercial loans, period end 2,455,108 2,367,677 2,159,471 Impaire
Slide 31: Vision Bank CL&D Loan Portfolio
Vision Bank CL&D Loan Portfolio As of December 31, 2009, Vision’s CL&D loan portfolio was $218.2 million, down from a post-acquisition high of $308.5 million at June 30, 2007, a decline of 29.2% Performing CL&D loans were $132.8 million at December 31, 2009, down from a post-acquisition high of $305
Slide 32: Capital Ratios
Capital Ratios Capital Ratios @ December 31, 2009 Tier | Risk- (S in thousands) Leverage Ratio Based Capital _ Risk-Based Capital Park National Corporation 9.04% 12.45% 14.89% Park National Bank 6.27% 881% 10.89% Vision Bank 10.77% 13.15% 14.46% Minimum capital ratio 4.00% 4.00% 8.00% Well capitaliz
Slide 33: 2009 PRK Agenda
Lend 2009 PRK Agenda Improve loan quality Increase net income Technology review Conclude implementation of Project EPS Snider Muffler Shop, Newark (Park 22) Capital funding alternatives (TARP/CPP) Address officer compensation plan M & A analysis; branch office review
Slide 34: 2009 Accomplishments
2009 Accomplishments Raised $53.5 million in equity, net of expenses, through the issuance of common stock, at market prices. Additionally, PRK issued $35.25 million of subordinated notes, bringing the total capital raised in 2009 to $88.8 million. Increased net income to $74.2 million Loan growth o
Slide 35: Income Statement — Three Months Ended March 31, 2010
Park National Corporation — Income Statement for the three months ended March 31, 2010 and 2009 {in thousands) March 31, 2010 March 31, 2009 $ Change % Change Net interest income $67,380 S 68,233 ($853) (1.25%) Provision for loan losses 16,550 12,287 4,263 34.70% Net interest income after provision
Slide 36: Park National Corporation — Non-performing assets
Park National Corporation — Non-performing assets for the three months ended March 31, 2010 March 31, Dee. 31, {in thousands) 2010 2009 Non-accrual loans $230,498 $233,544 Renegotiated loans 60 142 Loans past due 90 days or more (stil accruing) 11,853 14,773 Total nonperforming loans $242,411 $248,4
Slide 37: 2010 PRK Agenda
2010 PRK Agenda . Maintain dividend at current level . Improve loan quality; reduce troubled assets . Increase net income ° Promote intensified customer focus and shared cultural values . Continue process and technology improvement initiatives * Capital funding alternatives (TARP/CPP) ° M &Aanal bra
Slide 38: Annual Shareholders' Meeting
PARK NATIONAL E€ORPORATION ————— Annual Shareholders’ Meeting April 19, 2010