(Source: PrimeNewswire)NEWARK, Ohio, Oct. 10, 2008 (GLOBE NEWSWIRE) -- Through its subsidiary The Park National Bank, Park National Corporation (Park) (AMEX:PRK) today signed definitive agreements with Elan Financial Services (Elan) and Elavon, Inc. (Elavon), both of which are wholly-owned subsidiaries of U.S. Bancorp (NYSE:USB). Under the agreements, Elan will purchase The Park National Bank's unsecured credit card portfolio and Elavon will acquire substantially all of its merchant bankcard processing portfolio (also called merchant servicing portfolio). These portfolios include accounts from each of Park's 12 Ohio-based banking divisions.

Park's local banking professionals will continue to sell and support credit card related services, and cards issued by Elan will bear the local Park affiliate bank name. The transfer of portfolio ownership is expected to lead to more robust choices and features for Park's clients.

"This is an ideal way for us to provide our clients access to new options, like rewards programs, 24/7 service, online account information, and our merchant clients can more easily accept transactions through the Internet," said Park Chairman C. Daniel DeLawder. "Our clients count on us to deliver the resources they need with the attention they deserve. These types of alliances ensure that our relationship with our clients and the dependable, high-touch service they've come to expect from their local bank, will not change."

"Also, our investors will be pleased with the positive impact these relationships will likely have on our earnings and risk management," DeLawder added. As a result of the agreements, Park expects to report approximately $12 million in pre-tax gains in its fourth quarter 2008 financial results. The transition of the accounts is expected to be complete in the first half of 2009.

The credit card portfolio, with a current outstanding balance of approximately $30 million, includes all Park Ohio-based affiliates' regular credit card products, such as VISA(r) Classic, VISA(r) Signature Series, VISA(r) Gold cards, or MasterCard(r). The sale to Elan does not include home equity based VISA(r) cards. The merchant servicing portfolio includes payment processing services for approximately 1,700 merchants.

Through the agreement with Elan, Park expects to be able to expand its overall credit card customer base by offering a more competitive product line to both existing and new markets. The enhanced product menu will include both a cash-back rewards program and cards specifically designed for business clients. The agreement with Elan also provides for strong marketing support.

Through its relationship with Elavon, Park can offer its merchant clients a variety of secure and flexible payment solutions.