(Source: PrimeNewswire)
NEWARK, Ohio, Oct. 19, 2009 (GLOBE NEWSWIRE) -- Park National Corporation (Park) (NYSE Amex:PRK) today announced operating results for the three and nine month periods ended September 30, 2009, including record earnings for Ohio-based operations for the first three quarters of the year. For the three and nine month periods ended September 30, 2009, Park reported net income of $19.2 million and $61.9 million, respectively. Net income per diluted common share was $1.25 for the third quarter of 2009 and was $4.10 for the nine months ended September 30, 2009.
The third quarter of 2008 included a goodwill impairment charge of $55.0 million at Vision Bank, resulting in a net loss of $38.4 million, or $2.75 per diluted common share. For the first three quarters of 2008, Park reported net income of $2.8 million, or $0.20 per diluted common share. Absent the goodwill impairment charge, Park's net income for the third quarter 2008 would have been $16.6 million, or $1.19 per diluted common share. Net income for the nine months ended September 30, 2008 was $57.7 million, or $4.14 per diluted common share, prior to the impairment charge.
"We are especially pleased with the continued record performance of our Ohio-based operations," said Park Chairman C. Daniel DeLawder. "Our strong earnings are a direct result of consistent and dedicated personal attention delivered by our associates. Current technology, up-to-date deposit services and reliable home loans combined with extraordinary local service are all reasons why people trust us to keep our promises."
Net income for Park's Ohio-based operations for the nine months ended September 30, 2009 was $79.0 million, an increase of $6.0 million from the $73.0 million reported for the same period in 2008.
Park's Board of Directors declared a $0.94 per common share quarterly cash dividend. The dividend is payable on December 10, 2009 to common shareholders of record as of November 25, 2009.
Park's net charge-offs for the third quarter of 2009 totaled $9.7 million or an annualized 0.84 percent of average loans outstanding. This compares to net loan charge-offs of $12.8 million or an annualized 1.15 percent of average loans outstanding for the same period in 2008.
Park's loan loss provision for the third quarter of 2009 was $15.0 million, compared to $15.9 million for the third quarter of 2008. Park subsidiary Vision Bank (headquartered in Panama City, Fla.) had a third quarter 2009 loan loss provision of $10.0 million, compared to $11.5 million for the same period in 2008. The Ohio-based operations had a loan loss provision of $5.0 million for the third quarter of 2009, compared to $4.4 million for the same period in 2008.
Park continues to proactively address the impact of current economic conditions within the loan portfolio through increases in the allowance for loan losses. As of September 30, 2009, the loan loss allowance was $110.0 million, an increase of 9.9 percent over the balance of $100.1 million at December 31, 2008. Non-performing loans were $207.2 million at September 30, 2009, compared to $206.6 million at June 30, 2009 and $162.4 million at December 31, 2008. For the three month period ended September 30, 2009, Park's classified commercial loans, the type that represent the largest risk of potential future loss, declined by 6.0 percent.
Park experienced $123.8 million loan growth (or 3.7 percent annualized) for the nine month period ended September 30, 2009. Park also reported continued deposit growth for the same period, with $353.2 million (or 9.9 percent annualized) growth in deposits.
"We have experienced excellent deposit growth in 2009, which has helped fund solid loan growth throughout the year," DeLawder said. "Additionally, home loan origination and refinance activity have been exceptional throughout 2009." Park originated $531 million in fixed rate residential mortgages through September 30, 2009, compared to $134 million for the same period in 2008.
"Strong financial performance puts us in a unique position to help even more families take advantage of recently lowered home loan rates. It's a great time to borrow money," DeLawder added.
Park continued its disciplined approach within the At-the-Market common stock offering. Through September 30, 2009, it has sold 288,272 common shares at an average price of $60.83. Net of all selling and due diligence expenses, the offering has generated additional capital of $16.7 million.
Headquartered in Newark, Ohio, Park National Corporation holds $7.0 billion in total assets (as of September 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 our 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 June 30, 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.
PARK NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
INCOME SEPTEMBER 30, SEPTEMBER 30,
STATEMENT AND PERCENT PERCENT
RATIOS 2009 2008 CHANGE 2009 2008 CHANGE
------- -------- -------- -------- -------- --------
NET INTEREST
INCOME $68,462 $ 65,228 4.96% $204,689 $191,038 7.15%
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PROVISION FOR
LOAN LOSSES 14,958 15,906 -5.96% 43,101 37,869 13.82%
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OTHER INCOME 18,165 17,088 6.30% 57,132 56,670 0.82%
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GAIN ON SALE
OF SECURITIES -- -- 7,340 896
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GOODWILL
IMPAIRMENT
CHARGE -- 54,986 -100.00% -- 54,986 -100.00%
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OTHER EXPENSE 46,052 44,493 3.50% 142,065 132,203 7.46%
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INCOME BEFORE
TAXES 25,617 (33,069) N.M. 83,995 23,546 N.M.
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NET INCOME
(LOSS) 19,199 (38,412) N.M. 61,896 2,757 N.M.
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NET INCOME
(LOSS) AVAIL-
ABLE TO
COMMON SHARE-
HOLDERS (a) 17,759 (38,412) N.M. 57,575 2,757 N.M.
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NET INCOME
(LOSS) PER
COMMON SHARE-
BASIC (a) 1.25 (2.75) N.M. 4.10 0.20 N.M.
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NET INCOME
(LOSS) PER
COMMON SHARE-
DILUTED (a) 1.25 (2.75) N.M.