NEWARK, Ohio, Oct. 18, 2010 (GLOBE NEWSWIRE) — Park National Corporation (Park) (NYSE Amex:PRK) today announced financial results for the three month period (third quarter) and nine month period ended September 30, 2010. Park’s Board of Directors also declared a $0.94 per common share quarterly cash dividend, payable on December 10, 2010 to common shareholders of record as of November 24, 2010.
For the three and nine month periods ended September 30, 2010, Park reported net income of $19.6 million and $61.5 million, respectively, compared to $19.2 million and $61.9 million for the same periods in 2009.
The issuance of common shares over the last six quarters resulted in a decline in net income per common share compared to last year. Net income per diluted common share for the third quarter of 2010 was $1.19, a 4.8 percent decline from $1.25 in the third quarter of 2009. Net income per diluted common share for the first nine months of 2010 was $3.79, a 7.6 percent decline from the $4.10 reported for the same period in 2009.
Net income for the third quarter of 2010 for Park’s Ohio-based operations was $24.9 million, a 3.5 percent decrease from $25.8 million in the third quarter of 2009. Net income for Park’s Ohio-based operations was $81.1 million for the first nine months of 2010, a 2.7 percent increase from the $79.0 million reported in the same period of 2009.
Mortgage lending activity continues to be very strong as borrowers take advantage of historically low interest rates. Park originated $193 million in residential mortgages during the third quarter of 2010, a $7 million increase over the $186 million originated in the 2009 third quarter. Park’s loan portfolio grew by $16.5 million during the first nine months of 2010, ending the quarter at $4.66 billion.
“We continue to be an active lender in the communities we serve, evidenced by residential mortgage originations in third quarter 2010 exceeding levels experienced in 2009. Low interest rates and direct access to lenders continues to fuel activity for new and refinanced loans for residential customers,” said Park Chairman C. Daniel DeLawder. “Park affiliates actively seek new relationships for consumers and businesses alike. It’s a great time to borrow money and we stand ready to help our clients meet their financing goals.”
Capital-raising activities over the past six quarters increased common shares outstanding by 1,323,572 or 9.5 percent, generating a net total of $81 million in additional capital.
In 2009, Park sold 904,072 common shares and Series A and Series B Common Share Warrants covering an aggregate of 500,000 common shares at a weighted average price per share of $61.20 for gross proceeds of $55.3 million. After selling expenses and professional fees, Park raised $53.5 million of common equity from these capital-raising activities.
Through the first nine months of 2010, Park issued 419,500 common shares upon the exercise of the Series A and Series B Common Share Warrants at a price of $67.75 per common share. After all expenses, Park raised an additional $27.6 million of common equity from the sale of these common shares.
Headquartered in Newark, Ohio, Park National Corporation has $7.1 billion in total assets (as of September 30, 2010). 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 Division, Richland Bank Division, Century National Bank Division, First-Knox National Bank Division, Farmers & Savings Bank Division, United Bank Division, Second National Bank Division, Security National Bank Division, Unity National Bank Division and The Park National Bank of Southwest Ohio & Northern Kentucky Division. 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 Financial Services Company (d.b.a. Guardian Finance Company).
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 due to a number of factors, such as adverse changes in economic conditions that impair the ability of borrowers to repay their loans, the underlying value of the collateral could prove less valuable than assumed and cash flows 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 nationally 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; the effects of the Gulf of Mexico oil spill; 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; 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 and regulations concerning taxes, accounting, banking, securities and other aspects of the financial services industry, specifically the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; 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, 2009 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, 2010. 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.