Park National Corporation · AMEX:PRK
Park National — Shareholder Meeting (April 2019)
25 slides from Park National's shareholder meeting presentation, Apr 22, 2019
Slide 1: Welcome to the Annual Meeting of Shareholders
Welcome to the Annual Meeting of Shareholders April 22, 2019 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: Safe Harbor Statement (continued)
Safe Harbor Statement administration and uncertainty or speculation pending the enactment of such changes; significant changes in the tax laws, which may adversely affect the fair values of net deferred tax assets and obligations of state and political subdivisions held in Park's investment securiti
Slide 4: Park National Corporation Footprint March 31, 2019
Park National Corporation Footprint March 31, 2019 Park National Corporation Profile (as of March 31, 2019) • 11 Community Bank Divisions • 2 Specialty Finance Companies • One non-bank workout subsidiary • 32 counties • 109 bank offices • 9 financial service centers • 1,790 FTEs 4
Slide 5: Park National Corporation Footprint April 1, 2019
Park National Corporation Footprint April 1, 2019 Welcome, Carolina Alliance! 5
Slide 6: Affiliate Relative Size
Affiliate Relative Size Based on aggregate amount of deposits, loans, repurchase agreements, and trust assets (as of March 31, 2019) ND UND 3% 3% SED 12% PND 35% SND 5% UBD 2% FKD 12% FND CND 8% 9% PSD RBD 5% 6% Note: Effective April 1, 2019, Carolina Alliance merged into Park National Bank. Carolin
Slide 7: Consolidated Statements of Income
Park National Corporation Consolidated Statements of Income (in thousands) Dec. 31, 2017 Dec. 31, 2018 Mar. 31, 2018 Mar. 31, 2019 Net interest income $ 243,759 $ 266,898 $ 64,850 $ 67,776 Provision for loan losses 8,557 7,945 260 2,498 Net interest income after provision for loan losses $ 235,202 $
Slide 8: Consolidated Balance Sheet Summary
Park National Corporation Consolidated Statements of Income (in millions) Dec. 31, 2017 Dec. 31, 2018 Mar. 31, 2019 Cash & cash equivalents $ 169 $ 167 $ 188 Investment securities 1,513 1,411 1,382 Loans 5,372 5,692 5,740 Allowance for loan losses (50) (52) (53) Other assets 534 586 595 Total assets
Slide 9: PRK vs. Peers Efficiency Ratio
PRK vs. Peers Efficiency Ratio 75 70 68.00 64.98 65 64.03 62.21 61.22 62.980 62.96 62.77 61.73 Percent (%) Percent 60 61.68 60.62 59.09 58.95 59.03 59.25 57.56 56.42 55 50 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 3/31/2019 PRK Peer Group PNB Source: BHC Performance Report; Peers includ
Slide 10: Nonperforming Assets
Park National Corporation Nonperforming Assets (in thousands) Dec. 31, 2017 Dec. 31, 2018 Mar. 31, 2019 Total nonperforming loans1 $ 73,848 $ 70,197 $ 70,714 Other real estate owned 14,190 4,303 4,629 Total nonperforming assets2 $ 88,038 $ 74,500 $ 75,343 Percentage of nonperforming loans to loans (
Slide 11: The Park National Bank Fiduciary Income and Asset Trends
The Park National Bank Fiduciary Income and Asset Trends 6.00 28.0 26.0 5.50 24.0 5.00 22.0 4.50 20.0 (Assets (Assets in billions) 4.00 (Revenue in millions)(Revenue 18.0 3.50 16.0 3.00 14.0 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 3/31/2019 Trust Assets (market value) (left Y axis) Fi
Slide 12: The Park National Bank: Headquarter Counties Deposits
The Park National Bank The bank of choice Headquarter Counties – Deposits (in thousands) 2018 2017 Headquarter Headquarter Hdqtr. Co. Total County % of 2018 % of 2017 County Market County Market Bank Division Year Joined Park Deposits Deposits Market Share Market Share Share Rank Share Rank Park Nat
Slide 13: Net Promoter Score
Net Promoter Score Would you recommend our bank to a friend or colleague? Comparison of Results 90 77.00 78.61 79.86 81.85 80 70 60 World Class 50 Companies 40 30 21 20 10 0 Financial Industry 2015 PRK Average 2016 PRK Average 2017 PRK Average 2018 PRK Average Average Financial Industry Includes dir
Slide 14: Results: Behaviors and Mindset
Results Behaviors determine results. Behaviors Mindset affects which behaviors we choose and the effectiveness of those behaviors. Mindset 14
Slide 15: Presented Calls
Presented Calls Mar-19 56530 Feb-19 61115 Jan-19 62741 Dec-18 62597 50000 55000 60000 65000 70000 Calls Presented: All calls entering the Customer Care Center Queue 15
Slide 16: Abandoned Calls
Abandoned Calls Mar-19 2.25% Feb-19 8.42% Jan-19 10.87% Dec-18 15.20% 0% 5% 10% 15% 20% Abandoned Rate: 5% or fewer calls abandoned (Where the customer hangs up before reaching an associate.) on average per month 16
Slide 17: Calls Waiting Minutes or More
Calls Waiting 4 Minutes or More Mar-19 305 Feb-19 1843 Jan-19 3719 Dec-18 5432 100 1100 2100 3100 4100 5100 # Calls waiting 4 minutes or more (total calls- answered and abandoned) 17
Slide 18: Service Level Achievement
Service Level Achievement Mar-19 85.77% Feb-19 63.78% Jan-19 58.96% Dec-18 43.91% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Service Level: 85%+ of calls answered (handled) in 15 seconds or less on average per month 18
Slide 19: Three Goals
Three Goals 1. Increase EPS each year 2. Improve our efficiency ratio 3. Generate a superior return on equity 19
Slide 20: Organic Growth
Organic Growth • Increased focus on contact management • Welcome calls to new customers • Thank you calls to existing customers • Sponsorships and community presentations • Customer/prospect research • Bank school initiative • Trust/wealth management • Project 990 20
Slide 21: Continuous Improvement/Expense Control
Continuous Improvement/Expense Control • Combine CAB leased space with NewDominion • Finding value in charged off notes • Teller scheduling software • Closing office; extending hours at next closest • Simplifying numerous maintenance contracts • Renewed effort to improve execution excellence • Surve
Slide 22: Physical Locations/Technology
Physical Locations/Technology • Louisville • Online mortgage applications • Customer Care Center: voice-activated direct dial option 22
Slide 23: Boutique Businesses
Boutique Businesses • Scope Aircraft Finance • Retirement Plan Services • Structured Warehouse Lending 23
Slide 24: Mergers/Acquisitions
Mergers/Acquisitions • +/- 50 contacts • Self-evident fit • Lessons (cultural, credit, conversion) 24
Slide 25: Thank you for attending your Annual Shareholders Meeting
Thank you for attending your Annual Shareholders Meeting. May we help you in another way? Do you know anyone who might enjoy being part of the Park family? It would be our privilege to speak with him/her. 25