(Source: PrimeNewswire)
NEWARK, Ohio, July 20, 2009 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE Amex:PRK) today announced operating results for the three months ended June 30, 2009. Net income available to common shareholders was $19.9 million, a 9.2 percent increase from the $18.2 million net income for the same period in 2008. Second quarter 2009 net income per diluted common share was $1.42, a 9.2 percent increase from second quarter 2008 net income per diluted common share of $1.30.
Net income available to common shareholders for the first half of 2009 (six months ended June 30, 2009) was $39.8 million, a 3.3 percent decrease from the first half of 2008 net income of $41.2 million. Earnings per diluted share for the first half of 2009 were $2.85, down 3.4 percent compared to the first half of 2008 earnings per diluted share of $2.95.
On July 20, 2009, the Park Board of Directors declared a $0.94 per share quarterly cash dividend in respect of Park's common shares. The dividend is payable on September 10, 2009 to common shareholders of record as of the close of business on August 26, 2009.
Park Chairman C. Daniel DeLawder stated, "The banking industry is challenged by a number of issues, many of which have existed for over a year. However, Park's Ohio-based banking divisions continue to enjoy solid performance. As a result, our board of directors determined that Park could continue to pay a quarterly cash dividend of $0.94 per common share." DeLawder further indicated that the highest priority for Park's management is to generate sufficient net income to sustain the quarterly dividend at $0.94 per share.
Net income for Park's Ohio-based banking divisions for the first six months of 2009 was $52.4 million. DeLawder continued, "While Park's Ohio-based divisions had a record year in 2008 with net income of $95.3 million, the first six months of 2009 have been even better. The strong earnings generated thus far in 2009 are the result of our bankers' unwavering commitment to the personal style of banking that our friends and neighbors have come to trust."
CONTINUED GROWTH DURING SECOND QUARTER
Park's commercial and consumer loans increased again during the second quarter. At June 30, 2009, Park had $4,620 million in total loans on its consolidated balance sheet, compared to $4,491 million at December 31, 2008, an annualized growth rate of 5.8 percent. Total loans increased by $59 million during the second quarter of 2009. Additionally, Park enjoyed excellent mortgage loan volume through the six months ended June 30, 2009, with originations of $413 million in fixed rate residential mortgages, compared to $107 million for the same period in 2008 and $162 million for the entire 2008 year. These loans are largely sold in the secondary market, where Park maintains the servicing on these loans. As a result of the mortgage loan volume, pre-tax real estate non-yield loan fee income was $10.1 million for the six months ended June 30, 2009, compared to $4.0 million for the same period in 2008.
Deposit balances also increased during the second quarter of 2009. At June 30, 2009, Park had total deposits of $5,053 million, compared to $4,762 million at year-end 2008, or an annualized growth rate of 12.4 percent. Total deposits increased by $133 million during the second quarter of 2009.
ADDITIONAL INFORMATION FROM THE SECOND QUARTER
During the second quarter, the Federal Deposit Insurance Corporation (FDIC) imposed a five basis point special assessment on each insured depository institution's assets minus Tier 1 capital as of June 30, 2009. As a result of this assessment, Park accrued an amount of $3.3 million, payable to the FDIC on September 30, 2009. Additionally, in June 2009, Park completed the sale of $197 million of U.S. Agency mortgage-backed securities, resulting in a pre-tax gain of $7.3 million. Finally, Park continued to proactively address the impact of the current economic environment on its loan portfolio, increasing the allowance for loan losses to $104.8 million at June 30, 2009, up 4.7 percent from $100.1 million at December 31, 2008.
The loan loss provision was $28.1 million for the six months ended June 30, 2009, compared to $22 million for the same period in 2008. Park subsidiary Vision Bank (headquartered in Panama City, Fla.) had a loan loss provision of $18.4 million for the first two quarters of 2009, compared to $16.3 million for the same period in 2008. Park's Ohio-based banking divisions had a total loan loss provision of $9.7 million for the first two quarters of 2009, compared to $5.7 million for the same period in 2008.
Park's At-the-Market (ATM) common share offering, announced on May 27, 2009, has resulted in the sale of 183,200 common shares at an average price of $61.18 through the period ended June 30, 2009. Net of all selling and due diligence expenses, the ATM offering has generated additional capital of $10.5 million.
Headquartered in Newark, Ohio, Park National Corporation holds $7.0 billion in total assets (as of June 30, 2009). Park consists of 13 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 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, may be worse than expected which could decrease the demand for loan, deposit and other financial services and increase loan delinquencies and defaults; changes in market rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our consolidated balance sheet; changes in consumer spending, borrowing and saving habits; our liquidity requirements could be adversely affected by changes in our assets and liabilities; our ability to convert our Ohio-based banking divisions into one operating system; competitive factors among financial institutions increase significantly, including product and pricing pressures and out ability to attract, develop and retain qualified bank professionals; 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, including changes in laws concerning taxes, banking, securities and other aspects of the financial services industry; the effect of fiscal and governmental policies of the United States federal government; 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 and in "Item 1A. Risk Factors" of Part II of Park's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009. 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.
