Park National Corporation · AMEX:PRK
Park National — Shareholder Meeting (April 2012)
32 slides from Park National's shareholder meeting presentation, Apr 23, 2012
Slide 1: Annual Shareholders' Meeting
PARK NATIONAL CORPORATION Annual Shareholders’ Meeting April 23, 2012
Slide 2: Forward-looking Statements
NATIONAL Forward-looking Statements Tis presentation presents managements dscussio and aaj fhe facial conden and resus of operations for Pak Natonal Cofpraton ands sobachares (Pan or te Corporason’) Thi dscussion shoud be feadn conuncton wih he consoldsted trancal Sttemns and related notes ana he fe
Slide 3: Net income by operating segment
Net income by operating segment (in thousands) 12012 zon 2010 2008 Park National Bank S 21581 S$ 105851 $102,948 1014858 Guardian Finance 806 2721 2,008 1782 PRK Parent Company 49 1.505) (1439) 4,002 ‘Sub total - ongoing operations 22416 107977 103518 104302 Vision Bank = (22526) saa) (0,110) ‘SE Pr
Slide 4: Park National Corporation Income Statement
Park National Corpora’ in (PRK) — Income Statement Dee. 31,2010 (thousands) (eestated) Dee. 31,2009, Netinterest income S 270m $273,401 Provision for loan losses 87,080 03.921 Net terest income after provision 186,964 2048670 Non interestincome 63,016 73.880 Gain on sae of socutios 11,864 7340 Non i
Slide 5: Restatement — December 31, 2010
Restatement — December 31, 2010 Dee. 31.2010 Dee. 31 2010 restated) __(as originally reported Change Net interest income s 2mm s amo § “ ovision for loan losses 87,080 64,902 22,178 Net interest income attr provision 186,964 209,142 2,178) Non interest income 63.016 65,632 616) Gain on sale of secur
Slide 6: Sale of Vision Bank
Sale of Vision Bank + November 16, 2011 — Park entered into a Purchase and Assumption Agreement with Home BancShares and its wholly-owned subsidiary Centennial Bank to sell substantially all of the performing loans, operating assets and liabilities associated with Vision Bank for a purchase price of
Slide 7: Gain on sale of Vision Bank
Gain on sale of Vision Bank Premium paid ‘One-time gains Loss on sale of fixed assets Employment and severance agreements Other one-time charges, including estimates Pre-tax gain Federal income taxes Net gain on sale $ 27,913 298 (2,434) (1,610) (2,000) S$ 22,167 7.758 14,409 S__14,409
Slide 8: Statement of Condition
PARK NATIONAL CORPORATION Statement of Condition (vmitions) March 31,2012 Dee. 31,2010 Investment securities S187 Ss 2040 Loans 4g 470 Allowance for loan losses (@) (co) ‘Assets held forsale ® Other assets : 856 - Total assets seq s__ 7282 ‘Nom-interest bearing deposits Ss 1056 sae Interest bearing
Slide 9: SE Property Holdings, LLC - Retained Vision Bank balance sheet
SE Property Holdings, LLC - Retained Vision Bank balance sheet ( thousands) March 31,2012 __ February 16,2012 Assets cash s 1600S 10,366 Loans 98,449 110,162 OREO 28578 29,480 ter assets 19.417 19,334 Total Assets ss61493_s 160312 Linbies & equity Borrowings Ss 140000 s 30,000 other libites 4623 748
Slide 10: Non-performing assets
Park National Corporation Non-performing assets March 34 Dee. 31 Dee. 3 {in thousands) 2012 2010 2009 Non-aceruat loans 189,227 soso2ss 253.544 Renegotiated loans 34498 : 142 Loans past dve 90 days or more (stil accruing) 2281 3.500 wars Total nonpertorming loans 219944 saezass $248,480 ‘other reale
Slide 11: Vision Bank/SE Properties Holdings Non-performing assets
Vision Bank/SE Properties Holdings Non-performing assets Dee. 31 Dee. 3, {in thousands) 2010 2009 Non-accrua loans si7i4ss $148,347 Renegotiated loans : Loans past dve 90 days or more (stil accruing) 384 nam Total nonpertorming loans si7si7 189.624 ‘other realestate owned (OREO) 33,324 35,208 Total
Slide 12: Park National less Vision Bank/SE Properties - Non-performing assets
Park National Corporation less Vision Bank/SE Properties Holdings - Non-performing assets March 34, {inthousands) 2012 Non accrual loans 102,806 su7sis $86,107 Renegotiated loans 32451 142 Loans past due 90 days r more (stil accruing) 2281 3226 3496 Total nonpertorming loans 137618 si2toat $84.835,
Slide 13: Lessons Learned from Vision Bank
1. Bank Concentration Risks 3. Unequivocal Agreement 5. Worst Case X Multiple 7. Adopt PRK Underwriting 9. Attributes of Seller 11, Seller Size/PRK Leader 13, Reaction to Adversity 15, Heed External Forecasts Lessons Learned from Vi ion Bank 2. Market Concentration Risks 4, Understand Market Culture
Slide 14: Results Count: ROA and ROE History
Results Count ROA and ROE History — PRK and PRK, excluding Vision Pak OR pakRoae [Fer ae Sleds ecitaieyes | gecan ar pansone See one [onto rsa onoe [vas esos Trae | mom tse | oaem | comm ‘nar 150% ame oom = tom | oson | rm 20008 ame ame tom tam | oom | atm aterm 120% zu tam tam | oar | aan aes ean w
Slide 15: PRK Earnings History
PRK Earnings History Tangible Pets common Common Book Dividends End Stock Book Vane Value Per Did EPS Por Shave Price Pershare ‘Share 10202 $195 soo $69.17 ser sus7 2010 as 376 ner sor 3598 2008 ae 376 sae an 62 208 ant a7 175 3015 ae 207 sat an e450 aise ae 206 om 360 seo 098 237 2005 eet 302 10264
Slide 16: PRK comparison to Midwest peers — Dividend history
PRK comparison to Midwest peers — Dividend tory % Change % Change in Dividends Per Share Bank (2006-2011) (2006-2011) Park National Corporation 1.90% Midwest Peer Average 44.1894 nant [UMB Financial Corporation 53. 190% rst Source Corporation 22.655 co | . First Financial Bancorp 21.888 me Independe
Slide 17: PRK comparison to peers
PRK comparison to peers = a, SS om me ~ & Se Soom SS om gS ee ee oe ee ese eee eC beet ee * Ansa ering rough March 2, 202 hae been aein ths caeation.Tiscaladton asm the ony an core name om Ronan ase on doiends and toc pie ougy Marh 3, 232
Slide 18: Total Return Performance
Total Return Performance Park National Corporation Total Return Performance 8 © ——on 1231206 rasta007 ‘912006 ‘2512009 ‘512010 esv20tt (tesa ena tomeees__eDSa__— The total retum sok prformance graph depts the year percentage change nPar’scumustvetotalsorhoer return ve he test ear fis pes Calstons nu
Slide 19: Analysis of Total Return
Analysis of Total Return PRK, various indices and other Ohio bank holding companies 19
Slide 20: PRK short interest position
PRK short interest position Shortinterest «PRK Closing Average Annual ‘Days to Cover Date Position Price Dally Volume _ Short Position. 031302012 11405 458 sear 36,126" 400 ‘r2g02011 1954,008 S 6506 50,130 330 12812010 22074 ser 38,840 27 ‘2731/2009 41927/086 s 58.88 51,950 a7 ‘2re12008 41952,381 s
Slide 21: PRK short interest comparison to peers
PRK short interest comparison to peers Interest ‘Average Daily a%of Shares Short interest Volume in Daysto Total Shares, Entity Outstanding _ Position 2012 Cover _Outstanding PRK 15,405,905 1,405,458, 35,126 400 912% Midwest Peer Median $8,300,000 2,652,880, 270,087 98 455% Miawest Peor Average 76.4
Slide 22: Park National Corporation Profile
Park National Corporation Profile (Gs ofMaren 31,2012) + 11 Community Banks + 2 Specialty Finance Companies + One non-bank workout subsidiary + 29 Ohio & 1 Kentucky counties. + 124 bank branches + 7 specialty finance offices + 1,784 FTES
Slide 23: The Park National Bank — The bank of choice
The Park National Bank — The bank of choice Headquarter Counties ~ Deposits (in thousands) Yearjined Hg. Co. Total county Park %ofmarket Rankin Bank Division Park ‘deposits Deposits share market Park National 1908 $ 1300371 $2,169,768 59.9% 1 Fifield National 1098 art9 174928 219% 1 echland Bank 198
Slide 24: Loans by Type
Loans by Type “+ Commercial lending focus on small, closly:held businesses within our markets + Consumer morgage and home equity portiolos ae originated by Park within out footprint and have been consstenty ‘iE nooner ocuned Pent RAN fae pests ers one ces. I Total loan portfolio (SM): $4,217
Slide 25: The Park National Bank Income Statement
The Park National Bank Income Statement (inthousands) March 34,2012 Dee. 31,2010 Net interest income S556 S$ 2a7281 Provision fr loan losses 4972 23474 Net interest income ar provision 5174 213,807 Non interestincome 16.961 63.048 CGainon sale of securities 1964 Non interest expense Income before in
Slide 26: 2011 PRK Agenda
2011 PRK Agenda A. Maintain dividend at current level Yes B. Increase net income Yes/No C. Improve loan quality; reduce troubled assets Yes D. Complete implementation of “Service Excellence’ initiative Yes E. Continue process and technology improvement initiatives Yes F. Capital funding alternatives
Slide 27: 2012 PRK Agenda
2012 PRK Agenda A. Maintain dividend at current level B. Increase net income C. Improve loan quality; reduce troubled assets D. Continued customer focus through ongoing Service Excellence initiative E. Continue process and technology provement initiatives F. Repay TARP G. Complete Vision Bank sale (
Slide 28: TARP Repayment Plans
TARP Repayment Plans AAs disclosed in a current report on Form 8-K issued on April 20, 2012, Park received approval from the United States Department of Treasury ("UST") to redeem the $100 million in cumulative perpetual preferred shares ("the preferred shares’), which were issued by Park to the UST
Slide 29: Capital Ratios
Capital Ratios Capital Ratios @ December 31,2011 Tier IRisk- (Sinthousands) Leverage Ratio Based Capital Risk-Based Capital Park National Corporation 91% 14.15% 16.65% Park National Bank 658% 952% 11.48% Vision Bank 15.0% 224% 272% Regulatory minimum eapital ratio 4.00% 4.00% 8.00% Regulatory well e
Slide 30: PRK Strategic Plan
PRK Strategic Plan Mission Statement: “"..to maximize long-term return to our shareholders...” First Declaration: To act at all times with integrity and with concern for the well-being of our customers, our community, and all of us who work here. 30
Slide 31: Why invest in Park National Corporation?
Why invest in Park National Corporation? ‘* Unique, localized business model makes us the bank of choice for customers. * History of dividend payments to shareholders and a strong dividend yield. ‘+ Favorably positioned to take advantage of growth opportunities in our markets, largely caused by indu
Slide 32: Annual Shareholders' Meeting
PARK NATIONAL CORPORATION Annual Shareholders’ Meeting April 23, 2012 2