(Source: PrimeNewswire)
NEWARK, Ohio, April 20, 2009 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE Amex:PRK) today announced operating results for the three months ended March 31, 2009. Net income available to common shareholders was $20.0 million, compared to $23.0 million for the same period in 2008. First quarter 2009 net income per diluted common share was $1.43, a 13.3 percent decrease from the first quarter 2008 net income per diluted common share of $1.65.
Net income figures for the first quarter of 2008 included a one-time benefit (reported in the "other income" category) of $3.1 million related to the Visa IPO. Net of taxes, this contributed $2.0 million to net income, or $0.14 to net income per diluted share for the first quarter of 2008.
Park's board of directors also declared a second quarter cash dividend of $0.94 per common share, payable on June 10, 2009 to common shareholders of record as of May 27, 2009.
"We are pleased with our first quarter performance. On March 11, 2009, we projected that net income available to common shareholders would be approximately $18 million for the first quarter and the actual results were $2 million higher," said Park Chairman, C. Daniel DeLawder.
The better-than-expected earnings for Park were largely due to a high volume of fixed rate residential mortgage loans. During the first quarter 2009, Park originated $181.6 million in fixed rate residential mortgage loans, compared to $55.6 million for the first quarter 2008. These loans are sold in the secondary market and Park maintains the servicing on these loans. The pre-tax real estate non-yield loan fee income was $5.0 million for the first quarter 2009, compared to $2.1 million for the first quarter 2008.
The U.S. government and the Federal Reserve System have continued their dedicated effort to facilitate extraordinarily low fixed interest rates for residential mortgage loans, and Park's loan volume has benefited from offering especially low rates on new and refinanced loans since the end of 2008.
According to DeLawder, the increase in home loan refinances is only partly generated by an excellent low interest rate environment. "People like the reliability of local service for their home loan. They want to speak directly with a knowledgeable, responsive lender who can deliver more than great low rates. That's been our lending style for decades and we're eager to help more people take advantage of the opportunity to save money and gain peace of mind," he said.
Park also experienced an increase in commercial and consumer loans during the first quarter. At March 31, 2009, Park had $4,562 million in total loans on its consolidated balance sheet, compared to $4,491 million at year-end 2008 and $4,253 million at March 31, 2008. Total loans increased overall by $70.2 million during the first quarter 2009, representing 6.3 percent annualized growth.
Deposit balances also increased during the first quarter 2009. At March 31, 2009, Park had total deposits of $4,920 million, compared to $4,762 million at year-end 2008 and $4,520 million at March 31, 2008.
Park's first quarter 2009 net loan charge-offs totaled $11.1 million, or an annualized 0.99 percent of loans outstanding. In the same period in 2008, net loan charge-offs were $8.6 million, or an annualized 0.82 percent of loans outstanding. The loan loss provision was $12.3 million in the first quarter 2009, compared to $7.4 million in the first quarter 2008. Park subsidiary Vision Bank (headquartered in Panama City, Fla.) had a loan loss provision of $8.5 million for the first quarter 2009, compared to $4.8 million for that period in 2008. Park's Ohio-based banking divisions had a total loan loss provision of $3.8 million for the first quarter 2009, compared to $2.6 million for the same period in 2008.
First quarter of 2009 net income for Park's Ohio-based banking divisions was $25.4 million. "We continue to be very pleased with the earnings from Park's Ohio-based banking divisions. Last year was a record earnings year for that group with a net income of $94.9 million for year-end 2008," DeLawder said.
Headquartered in Newark, Ohio, Park National Corporation holds $7.1 billion in total assets (as of March 31, 2009). Park consists of 14 community bank divisions and two specialty finance companies. Park's Ohio-based banking operations are conducted through Park subsidiary The Park National Bank and its divisions which include Fairfield National Bank, Richland Bank, Century National Bank, First-Knox National Bank, Farmers and Savings Bank, United Bank, Second National Bank, Security National Bank, Unity National Bank, Citizens National Bank and The Park National Bank of Southwest Ohio & Northern Kentucky. Park's other banking subsidiary is Vision Bank (headquartered in Panama City, Florida), and its Vision Bank Division (of Gulf Shores, Alabama). Park also includes Scope Leasing, Inc. (d.b.a. Scope Aircraft Finance) and Guardian Finance Company.
Complete financial tables are included below.
SAFE HARBOR STATEMENT under the private securities litigation reform act of 1995
This news release contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation: deterioration in the asset value of Park's loan portfolio may be worse than expected; Park's ability to execute its business plan successfully and within the expected timeframe; general economic and financial market conditions, and weakening in the economy, specifically, the real estate market and credit market, either national or in the states in which Park and its subsidiaries do business, are worse than expected; changes in the interest rate environment reduce net interest margins; competitive pressures among financial institutions increase significantly; the nature, timing and effect of changes in banking regulations or other regulatory or legislative requirements affecting the respective businesses of Park and its subsidiaries; demand for loans in the respective market areas served by Park and its subsidiaries, and other risk factors relating to the banking industry as detailed from time to time in Park's reports filed with the Securities and Exchange Commission including those described in "Item 1A. Risk Factors" of Part I of Park's Annual Report on Form 10-K for the fiscal year ended December 31, 2008. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Park does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.
