January and February Net Income On Target and Loan Growth Momentum Continues
NEWARK, Ohio, March 11, 2009 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE Alternext US:PRK) today reported operating results for the first two months of 2009, including $13.8 million in net income available to common shareholders and a loan loss provision of $4.8 million. Park also continues to benefit from very strong loan growth, increasing total loans by $95 million or 2.1 percent during the first two months of 2009 to $4.6 billion.
"Significant turmoil in the stock market prompted us to take the unprecedented action of describing our progress in the first two months of this year," said Park Chairman, C. Daniel DeLawder.
Projected Earnings for the First Quarter of 2009
Park's management expects that net income available to common shareholders will be approximately $18 million for the first quarter (three months ended March 31, 2009). The loan loss provision is expected to be $12 million for the first quarter of 2009. First quarter net income per common share is expected to be approximately $1.28. The expected results for the first quarter of 2009 are in line with the guidance Park provided in the financial review section of its 2008 annual report to shareholders that was included in its 10-K filed with the Securities and Exchange Commission on February 25, 2009.
DeLawder said, "While several large banking companies have announced significant reductions in their dividend payments, Park has not." Park's board of directors has reviewed the projected results for the first quarter and has indicated it expects to declare a second quarter cash dividend of $0.94 per share at the next board meeting (scheduled for April 20, 2009). This dividend is consistent with Park's regular dividend amount.
Continued Strong Loan Growth
Park experienced growth in commercial loans, residential real estate loans and consumer loans. Especially low interest rates on fixed rate mortgages helped fuel Park's origination of $111 million of fixed rate residential mortgage loans during the first two months of 2009. By comparison, Park originated $161 million of fixed rate residential mortgage loans in all of 2008.
"New clients are discovering the value of our dependable strength and extraordinary service, and long-time clients confidently rely on us to help them be secure and successful despite the difficult economy," DeLawder said. "We welcome those opportunities and our skilled loan specialists are eager to help qualified borrowers in every community we serve."
Headquartered in Newark, Ohio, Park National Corporation holds $7.1 billion in assets (as of December 31, 2008). Park consists of 14 community bank divisions and two specialty finance companies.
