Park National Corporation · AMEX:PRK
Park National — Shareholder Meeting (April 2015)
24 slides from Park National's shareholder meeting presentation, Apr 27, 2015
Slide 1: Annual Meeting of Shareholders April 27, 2015
ANNUAL MEETING OF SHAREHOLDERS April 27, 2015 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, 2015) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 29 Ohio counties • 116 bank offices • 6 specialty finance offices • 1,799 FTEs 3
Slide 4: Affiliate Relative Size
Affiliate Relative Size Based on deposits, loans, repos, trust assets under management (as of March 31, 2015) PND 35% FND 7% [CATEGORY NAME] 5% RBD 6% CND 10% FKD 11% FSD 2% UBD 2% SND 6% SED 14% UND 3% 4
Slide 5: Consolidated Statements of Income
Park National Corporation Consolidated Statements of Income Source: Company Filings 5 (in thousands) Dec. 31, 2013 Dec. 31, 2014 Mar. 31, 2014 Mar. 31, 2015 Net interest income $221,025 $225,044 $54,480 $55,535 Provision for (recovery of) loan losses 3,415 (7,333) (2,225) 1,632 Net interest income a
Slide 6: Net Income by Operating Segment
Net Income by Operating Segment Source: Company Filings 6 (in thousands) Dec. 31, 2013 Dec. 31, 2014 Mar. 31, 2014 Mar. 31, 2015 The Park National Bank $ 75,236 $ 82,907 $ 19,565 $19,159 Guardian Financial Services Company 2,888 1,175 604 281 PRK Parent Company (1,397) (5,050) (904) (694) Ohio-based
Slide 7: Consolidated Balance Sheets
Park National Corporation Consolidated Balance Sheets Source: Company Filings 7 (in millions) Dec. 31, 2013 Dec. 31, 2014 Mar. 31, 2015 Cash & cash equivalents $ 147 $ 238 $ 580 Investment securities 1,424 1,501 1,457 Loans 4,620 4,829 4,831 Allowance for loan losses (59) (54) (55) Other assets 506
Slide 8: PRK Comparison to Peers
PRK Comparison to Peers Ratios at December 31 for each year Source: Company Filings and Sandler O’Neill, using SNL data of $3 billion to $10 billion bank holding companies PRK Price to Book % Peer Group Price to Book Value % PRK Price to Tangible Book Value % Peer Group Price to Tangible Book Value
Slide 9: Total Return Performance
Total Return Performance Park National Corporation The total return stock performance graph depicts the yearly percentage change in Park’s cumulative total shareholder return over the latest 5-year fiscal periods. Calculations include the reinvestment of dividends and are indexed to the base year’s
Slide 10: Dividends Paid
Dividends Paid Dividends Paid Bank Division (counties in italics) 2010-2014 (5 years) 2005-2014 (10 years) Park National Bank (Licking & Franklin) $ 36,316,577 $ 88,767,123 First-Knox National Bank (Knox, Holmes & Morrow) 23,330,619 48,307,098 Security National Bank (Clark, Champaign, Fayette, Green
Slide 11: Fiduciary Income and Asset Trends
The Park National Bank Fiduciary Income and Asset Trends Source: Company Filings 11 14.0 15.0 16.0 17.0 18.0 19.0 20.0 3.00 3.50 4.00 4.50 12/31/2011 12/31/2012 12/31/2013 12/31/2014 (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) Fiduciary Income (r
Slide 12: Installment Loan Balances
Installment Loan Balances (in 000s) at December 31 - 200,000 400,000 600,000 800,000 1,000,000 2012 2013 2014 Total Direct Installment Loans Total Indirect Installment Loans Total Installment Loans 12
Slide 13: Real Estate Loan Balances
Real Estate Loan Balances (in 000s) at December 31 1,000,000 1,050,000 1,100,000 1,150,000 1,200,000 1,250,000 2012 2013 2014 Real Estate Loans 13
Slide 14: 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 Note: The Texas Ratio is calculated as total nonperforming assets divided by the sum of tangible comm
Slide 15: Vision Bank/SE Property Holdings Nonperforming Assets
Vision Bank/SE Property Holdings, LLC Nonperforming Assets Source: Company Filings 15 (in thousands) Dec. 31, 2013 Dec. 31, 2014 Mar. 31, 2015 Nonaccrual loans $ 36,108 $ 22,916 $ 18,486 Accruing TDRs - 97 96 Loans past due 90 days or more (still accruing) - - - Total nonperforming loans $ 36,108 $
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Slide 17: Mobile Banking App vs. In-Person Transactions
Transactions Mobile Banking App vs. In-Person Transactions 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Mobile Banking Transactions 17 2,100,000 2,150,000 2,200,000 2,250,000 2,300,000 2,350,000 2,400,000 2Q13 3Q13 4Q13 1Q14
Slide 18: Mobile Banking
Mobile Banking 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Total Active Users 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Total Number of Deposits 18
Slide 19: 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. Average score for community banks is based on Bain/Research Now US Survey, 2013. 17 46 83 0 10 20 30 40 50 60 70 80 90 Financial Industry Average Comm
Slide 20: Net Promoter Score
Net Promoter Score Source: 2014 Satmetrix, Net Promoter Industry Benchmarks PRK data as of 12/31/14 0 10 20 30 40 50 60 70 80 90 Banking: USAA Insurance: State Farm Tech: Apple iPhone Online Services: Amazon Online Services: Zappos Retail Stores: Costco Travel: Southwest Airlines PRK World Class Com
Slide 21: The Park National Bank: Headquarter Counties Deposits
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 as of 6/30/14 Total County Deposits as of 6/30/14 % of 2014 Market Share % of 2013 Market Share 2014 Headquarter County Market Share
Slide 22: 2014 PRK Agenda
2014 PRK Agenda A. Grow consolidated net income; maintain dividend at historic rate B. Produce PRK ROAE in the upper quintile relative to peers C. Continued reduction of SEPH nonperforming assets D. Reduce PNB nonperforming assets E. Grow quality loans; expand relationships with existing customers F
Slide 23: 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 24: Annual Meeting of Shareholders April 27, 2015
ANNUAL MEETING OF SHAREHOLDERS April 27, 2015 24