Park National Corporation · AMEX:PRK
Park National — KBW Community Banking Investor Conference 2011
38 slides from Park National's conference presentation, Aug 2, 2011
Slide 1: KBW Community Banking Investor Conference
NATIONAL CORPORATION KBW Community Banking Investor Conference August 2, 2011
Slide 2: Forward-looking Statements
Forward-looking Statements perfomance Parone Wehave ed wherever eb oer sh Sterns by using words sc sana vasa, “expec. recast” ‘rojo: std, plan bel ‘although wtnout limitation ably of conditions, Toons, taxes, accounting, banking ‘SEC') inch “tom 1A. Risk Factors of Part of Pa 2010 andin"hem 1A, Risk
Slide 3: Table of Contents
Table of Contents |. PRK Overview Il. Leadership Team Ill. Selected Financial Data IV.Why invest in Park National Corporation? Appendix: Profiles of PRK Affiliate Banks
Slide 4: PRK Overview: Company Profile
I. PRK Overview Company Profile Park National Corporation (Park) is a $7.3 bi headquartered in Newark, Ohio. — Park has two bank subsidiaries and 148 financial service offices: + The Park National Bank (11 bank divisions in Ohio and Kentucky) Vision Bank (2 bank divisions in Florida and Alabama) n b
Slide 5: Our Mission
Our Mission Maximize long-term return to our shareholders by: — Acting at all times with integrity and concer for the well-being of our customers, our community and our associates Providing financial products and services of such high value that our customers nique view us as ul — Operating our bank
Slide 6: Company Overview
Company Overview June 30, 2011 Headquarters: Newark, OH = Assets $7.3bilion = Loans: 7 billion = Deposits: $5.3 billon = TCEquiy $573 milion = TARP: $100 milion = Market Cap: $1,014 millon 148 financial service offices jetween two bank subsidiaries across 4 states Park National Bank = Vision Bank K
Slide 7: A Successful History of Disciplined Strategic Growth in Ohio
A Successful History of Disciplined Strategic Growth in Ohio (11 acquisitions; 2 De Novos)
Slide 8: Vision Bancshares, Inc. Acquisition
Vision Bancshares, Inc. Acquisition ‘On March 9, 2007, Park acquired all the stock and outstanding stock options of Vision Bancshares, Inc. for $87.8 million in cash and 792,937 shares of Park common stock valued at $83.3 million or $105.00 per share. ‘Since the time of acquisition, net income at Vi
Slide 9: History of the Corporation
{in thousands) Park National Corporation History of the Corporation Total Assets Loans Deposits Net Income 2010 $7,298,377 4,732,685 $5,095,420 $ 74217 Percent of Total Assets, 64.8% 69.8% 1.02% 2005 5,436,048 3,928,112 3,787,787 95,238 Percent of Total Assets 61.2% 69.1% 1.75% 2000 3,211,068 2.278.
Slide 10: Park Executive Management
PARK Il. Leadership Team Park Executive Management 6, Danie DeLawder = chal Age: 61 National Seip (Crpoatn or Par) headquartered in Newark, Chi, He sed previous a8 nae of The Park 1d Park, He tational fe served as President of the Fairfield National Bank, a division of T Bank fom 1985 tnough 1001 He
Slide 11: Park Executive Management (continued)
Park Executive Management (continued) John W. Kozak ~ Chief Financial Officer — Age: 56 1999, 4991 to 1998, of The Park 1980 to 1991, and Century National Bank, a division of Park, Mr ty in 1977. He also received the Pacesetter Award from the College of Business. Brady T. Burt Chief Accounting Offic
Slide 12: Experienced Leadership Team
Experienced Leadership Team + Senior leadership consists of executives with proven local market experience + Leadership team averages 23 years of banking experience + Average tenure at Park National is imately 20 years In Position Industry ©. Daniel DeLawder Chairman & CEO et 40 40 David L. Trautman
Slide 13: Leadership Team — continued
Leadership Team — continued Brady T. Burt ‘Thomas J. Button ‘Thomas M. Cummiskey Lynn 8. Faweett Robert N. Kent Timothy J. Lehman Laura B. Lewis Matthew R. Miller Cheryl L. Snyder Paul E. Tumer Jetfrey A. Wilson, PARK Wiliam R. witson Position \VP = Chief Accounting Officer SVP ~ Chief Creat Officer
Slide 14: Affiliate Leadership
Affiliate Leadership Joha A, Broun James A Cart Wiiom ©. rai Joey W. Ginn Davis J Gooch James 8. Lingeneter ‘Thomas M. Lyall Patrick L Nash Eat W. Osbome Vickie A, Sant Donald R. Stone John E.Swaiow Stephen G. Wels Position President ~ Richland Bank President ~ Unity National Bank President ~ Securi
Slide 15: Park National Bank: Deposits by Division
Park National Bank The Bank of Choice Headquarter Counties of Operation - Deposits thousands) Park% of market Rank in ‘share ‘market Bank Division Name Our bank Total county tk National $1,162,031 $ 2053681 556% 1 Feito Nation 362,638 1.987.570 215% 1 Richland Bank 483.402 1.652.048, 27.4% 1 Century
Slide 16: Customer Proposition
Customer Proposition Leads to Core Profitability Unique local branding strategy makes PRK the regional bank of choice . ‘+ Historic unparalleled profitability continues Favorable pricing Yield on Earning Assets % +37 bps 811 484 +47 bps Net interest Margin % ROAE % PRK Cost of Funds % 420 3.78 11.98
Slide 17: Park Net Interest Margin History
Park Net Interest Margin History PRK Net Peer PRK Avg.2YR Avg. 10YR Interest Interest Advantage Treasury Treasury Margin Margin rs Rate Rate 420% 378% 0.42% 063% 3.39% 426% 3.70% 056% 070% 3.21% 422% 357% 0.65% 0.96% 3.26% 416% 350% 057% 2.00% 367% 420% 373% 047% 4.36% 469% 433% 3.5% 0.46% 4.09% 401
Slide 18: Park Earnings History
is voz Ban ae mean moran mor sw moa moon moos ms moots moat moa pac Meee PARK #onss paiment char luted EPS for 2008 and 2007 was $097 and $1.60 espectivay ‘Source: Company Fags Park Earnings History 1935 20 275 200 2985 3703 Priceto Tangible Common ook
Slide 19: Selected Financial Data: ROA and ROE History
Ill. Selected Financial Data Results Count - ROA and ROE History Park ROE, Park excluding | ‘Peer median Park excluding Peer median ROA Vision ROA ROE* = ROE y10 202011 — ‘annualized 07% 100% 070% 1.905 22.65% 657% 2010 097% 150% 02% 059% 1027% 120% 2009 097% 101% 016% 181% 20.80% -2t% 2008 oz 109%
Slide 20: Increase / (decrease) in loans
Increase / (decrease) in loans (in thousands) 500,000 400,000 300,000 200,000 Nee” 152.466 100,000
Slide 21: Income Statement
Income Statement Park National Corporation ‘Six months ended Yes Year ended (in thousands) June 30, 2011 Dec. 31, 2010 Dec. 31, 2009 Net interest income $139,335 $ 274,044 $273,491 Provision for loan losses. 37,400 64,902 68,821 Not interest income after provision 101,935 209,142 204,670 Non interes
Slide 22: Vision Bank Income Statement
Vision Bank Income Statement Six months ended y Year ended (in thousands) June 30, 2014 Dec. 31, 2010 Dee, 3, 2008 Net interest income $13,755 Ss 27867 Ss 25634 Provision for loan losses 26,400 39,229 44,430 Not interest income after sion (12.645) (11,362) (18,798) Non interest income (6250) (3407)
Slide 23: Park excluding Vision Income Statement
Vision Income Statement Prior to our acquisition of Vision Bank in 2007, Park had a history of being a top performing bank holding company. Park National Corporation, excluding PARK Six months ended Yoar ended Year ended (in thousands) June 30,2014 Dee, 31, 2010 Dec. 31, 2009 Not interest income $ 1
Slide 24: Forecasted Income Statement
Park National Corporation Forecasted Income Statement Dec. 31, 2011, Dec. 31, 2010 (in thousands) (forecasted) * (actual) Net interest income $ 273,000 $274,044 Provision for loan losses 61,000 64,902 Net interest income after provision 212,000 209,142 Non interest income 60,000 65,692, Gain on sale
Slide 25: Park National Corporation Balance Sheet
Park National Corporation June 30, 2011 Dec. 31, 2010 $1,961 4am (110) 787 2,040 4733 (2 646 7,298 938 Total liabilities & stockholders’ equity
Slide 26: Earning Assets Composition
Earning Assets Composition ‘* Commercial lending focus on small, closely held businesses within our markets ues ined ‘Average Earning Assets by Type ‘* Consumer mortgage and home equity portfolios YTD through June 30, 2011 are originated by Park largely within our footprint have been consistently un
Slide 27: Investment Portfolio
Investment Portfolio + As of June 30, 2011 the fair value of our investment portfolio totaled approximately $1.91 billion $1.12 billion available-for-sale = $0.79 billion held-to-maturity Investment Portfolio Composition Conservative Portfolio Equty Secures —_ ‘+ Net unrealized gain position of $21.
Slide 28: Loans by Type
Park National Corporation Loans by Type (in thousands) June 30, 2011 Dec. 31, 2010 Dec. 31, 2009 ‘Commercial and industrial $755,793 $737,902 $751,277 Real estate construction Commercial land & development 257,442 328,495 406,753 1-4 family construction 72,890 77.985 88,765 Total real estate constru
Slide 29: Allowance for Loan and Lease Losses and New Nonaccrual Loans
PRK - Allowance for loan and lease losse (ALLL) and new nonaccrual loans (in thousands) June 30, 2011 Dec. 31, 2010 Dec. 31, 2009 Total ALLL $110,187 $121,397 s116717 ‘Specific Reserves 32,810" 43,459 36,724 General Reserves $77,377 $77,938 $79,996 Total loans $4,710,513 $4,792,685 $4,640,432 Impair
Slide 30: Nonperforming Assets
Park National Corporation Nonperforming Assets Dec. 31, Dec. 31, Dec. 34, (in thousands) 2010 2008 Nonaccrual loans $238,690 $289.268, $233,544 $159,512 Renegatiated loans 3 : 1a 2.845 Loans past due 90 days or more (sill accruing) 3142 3,590 1473 $424 ‘Total nonperforming loans $241,865 $292,858, $
Slide 31: Vision Bank Nonperforming Assets
Vision Bank Nonperforming Assete (in thousands) ‘Nonaccrual loans $117,862 Renegotiated loans Loans past due 90 days or more (stil acervng) 980 Total nonperforming loans. $118.542, Other real estate owned 5,050 ‘Total nonperforming assets $123,592 Loans past due 30-69 days (sil acouing) 1314 Percent
Slide 32: Nonperforming Assets excluding Vision
(inthousands) June 30,2014 Dec. 31,2010 Dee. 31, 2008, Dee. 31, 2008 ‘Nonacerval ane | $121,128" s17818* $85,197" '$68,205° Renogotated loans 2 : wa . Loans past due 90 days or mor stil accring) 2.162 3.226 3.496 4mm ‘otal nonperforming loans $123,323 sizioat $88,835 873082 (ther eal estate cane ~ P
Slide 33: Historical Review of Vision Bank
Historical Review of Vision Bank Commercial Land & Development Loans June 30, Dec, 31, {in thousands) 2011 2010 CL&D loans, period end $111,054 $170,989 Performing CL&D loans, period end 64,207 84,498 Impaired CL&D loans, period end 46847 86,491 ‘Specific reserves on impaired CL&D loans 11,763 23,58
Slide 34: Capital Ratios — June 30, 2011
Capital Ratios — June 30, 2011 Tior | Risk Risk Based (Sin thousands) Leverage Ratio _ Based Capital Capital Park National Corporation 9.54% 18.72% 16.18% Park National Bank 6.56% 9.63% 11.57% Vision Bank 15.29% 21.05% 22.37% ‘Minimum capital ratio 4.00% 4.00% 8.00% Well capitalized requirement 5.00
Slide 35: Capital Raising Activities
Capital Raising Activities 2Q2009 183,200 common shares; net proceeds of $10.5 milion 3Q2008 105,072 common shares; net proceeds of $6.2 milion 40.2008 500,000 common shares; net proceeds of $28.8 milion 402008 1 to the PRK Defined Pr of $7 milion 202010 324, 3 milion 30.2010 42.2010 17,700 common s
Slide 36: Tangible Common Equity
Tangible Common Equity TCE Ratio Shares outstanding 7.90% 15,398,913 790% * 15,398,904 178%" 14,382,780 es1% 13971727 6.05% 13,964,576 9.19% 13,921,520 9.12% 14,092,626 971% 14320227 10.56% 14,455,027 11.19% 14,481,564 9.83% 14,997,841 10.09% 14,890,953
Slide 37: Why invest in Park National Corporation?
IV. Why invest in Park National Corporation? ‘+ Unique, localized business model makes us the bank of choice for customers. Stable, low cost deposit funding, coupled with superior lending rates, contributes to ‘outstanding profitability. Favorably positioned to take advantage of excellent growth opp
Slide 38: Appendix: Profiles of PRK Affiliate Banks
NATIONAL CORPORATION Appendix: Profiles of PRK Affiliate Banks Please visit www.parknationalcorp.com for a profile of the PRK affiliate banks.
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